Saskpower/Boundary Dam Integrated CCS Demonstration Project

Facts:

The Boundary Dam Integrated Carbon Capture and Storage Demonstration Project, in Estevan, Saskatchewan, Canada. The project will transform Unit 3 at Boundary Dam Power Station into a reliable, long-term producer of 115 – 120 megawatts (MW) of clean base-load electricity, reducing greenhouse gas emissions by capturing one million tonnes of carbon dioxide per year. Fully integrate and retrofit a coal-fired generation unit with carbon capture and an enhanced oil recovery operation, resulting in low-emission electricity and carbon dioxide (CO2) for oil extraction. 

Financing

The $1.4 billion government-industry partnership between the Government of Canada, Government of Saskatchewan, SaskPower and private industry. SaskPower’s share of the project would be approximately $758 million. 

The 2008 federal budget includes $240 million in new federal funding for a major carbon capture project in Saskatchewan. 

History

SaskPower has issued a Request for Proposals (RFP) for carbon capture technology for the Boundary Dam Integrated Carbon Capture and Sequestration Demonstration Project. Ten companies from across Canada and around the world have been invited to submit proposals for consideration. A shortlist will be compiled by the end of the year, with a carbon capture system to be be selected later in 2009.

SaskPower cancelled in 2007 the plans for construction of a 300 MW near-zero emissions pulverized coal unit because the estimated project cost of $3.8 billion made the project economically unviable.

Saskpower announced in early September 2007 their plans to put the Clean Coal project on hold for now. They are opting for cheaper natural gas fired generation, wind power and renewables to meet needs until 2014. The near- zero 300 MW thermal generating station couldn’t be built in time. By 2010, there will be a need to have new generation on line and the Clean Coal plant wouldn’t be ready. The option will still be generously pursued, as will cogeneration. The next supply decision is expected by 2009. The plant was estimated to cost $1.5 billion dollars when the project was designed, but costs increased substantially in the last few months due to recalculation. Saskpower will spend $225 million to install 400 megawatts of natural-gas turbines over the next 5 years. 

Previously Saskpower will focus further engineering efforts for its Clean Coal Project on expansion of the Shand Power Station near Estevan. Plans to proceed at the Shand site are pending successful negotiations with key stakeholders in the Estevan area. The Poplar River Power Station near Coronach will be reconsidered if problems occur with development of the Estevan site. Saskpower, Babcock & Wilcox Canada (B&W) and Air Liquide will jointly develop an oxyfuel separation technology as the core process for this project.

More information and Press Release

• New federal funding opens door to major carbon capture demonstration project in SaskatchewanNew federal funding opens door to major carbon capture demonstration project in Saskatchewan, Feb. 2008
• SaskPower issues Request for Proposals for carbon capture technology, Aug 2008
• Clean coal information sheet