SaskPower, Hitachi to develop carbon capture test facility

Saskatoon, Saskatchewan, Canada, March 20, 2012 — SaskPower and Hitachi Ltd. are partnering to construct a $60 million carbon capture test facility at SaskPower's Shand Power Station in southeastern Saskatchewan.

The carbon capture facility will allow international developers to fully evaluate performance of their systems to capture carbon dioxide emissions from coal-fired thermal power plants.

SaskPower and Hitachi will each contribute about $30 million to the facility, with SaskPower acting as owner/operator. Construction will begin in late 2012 or early 2013, with a scheduled completion date of summer 2014. Hitachi will supply their skilled process development team, as well as core process equipment from their Saskatoon manufacturing facility.

Hitachi's proprietary amine technology will be the first technology tested at the facility. SaskPower expects to evaluate a number of current and emerging carbon capture technologies over the life of the facility. The facility has been built to accommodate a wide range of test configurations, ensuring it remain a viable facility for many years.

In addition to the facility, SaskPower will be among the first electric utilities in the world to operate a commercial-scale power plant with a fully-integrated carbon capture and storage operating system.

The $1.24 billion project to rebuild a coal-fired unit at the Boundary Dam Power Station and equip it with a fully-integrated carbon capture system will allow for the generation of low-emission electricity and the capture of carbon dioxide for oil extraction.

SaskPower serves almost 482,000 customers and manages $6.3 billion in assets. We operate three coal-fired power stations, seven hydroelectric stations, six natural gas stations and two wind facilities with an aggregate generating capacity of 3,513 MW.

Power purchase agreements bring total available generating capacity to 4,094 MW. SaskPower maintains more than 152,000 kilometers of power lines, 55 high voltage switching stations and 186 distribution substations.

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