Canadian government approves $1.24 billion carbon capture project

Saskatoon, Saskatchewan, Canada, April 26, 2011 The Government of Saskatchewan has approved construction of the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project among the first commercial-scale carbon capture and storage facilities in the world.

The $1.24 billion project will transform an aging generating unit at Boundary Dam Power Station near Estevan into a producer of reliable, clean electricity while reducing greenhouse gas emissions by about one million tons per year the equivalent of taking more than 250,000 vehicles off Saskatchewan roads each year in addition to capturing carbon dioxide for enhanced oil recovery.

The Boundary Dam project demonstrates SaskPower's commitment to the deployment of green technology as the company reinvests in infrastructure and expands its power production capacity.

The Boundary Dam Integrated Carbon Capture and Storage Demonstration Project will provide a major economic stimulus for the Estevan area, in addition to benefits for the rest of the province.

SaskPower has chosen SNC Lavalin, one of the leading engineering and construction companies in the world, to oversee detailed engineering, procurement and construction activities at the Boundary Dam project.

Cansolv, a wholly owned subsidiary of Shell Global Solutions, will supply the carbon capture process. Hitachi will supply a steam turbine designed to fully integrate a coal-fired power plant with carbon capture technology.

Construction on the project will begin immediately, with operations commencing in 2014. The new generating unit at Boundary Dam will have the capacity to generate 110 MW of electricity.

In addition to capturing carbon dioxide for enhanced oil recovery operations, the Boundary Dam project will also capture sulfur dioxide to be used in the production of sulphuric acid.

Boundary Dam Power Station is SaskPower's largest generating facility, with six units and a combined generating capacity of 824 MW.

The company's three coal-fired power plants account for about 50 percent of its generating capacity of 3,513 MW. SaskPower has a total available generating capacity of 3,982 when the production of independent power producers is taken into account.

The Boundary Dam Integrated Carbon Capture and Storage Demonstration Project is part of a capital program that will see billions of dollars invested in SaskPower's power production and transmission and distribution systems over the next decade.

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