Estevan mercury 20161130

Page 1

DRUG BUST

AFFINITY ICE UPDATE

PEEWEES ON A ROLL

Thirteen arrested, facing 44 charges

Progress being made on ice-making infrastructure A7

Storm win home tournament B1

A3

FINANCIAL

Reynold Bert Certified Financial Planner 403B 9TH AVENUE, ESTEVAN, SK S4A 2V4 PH: (306)634-7979 · TOLL FREE: (877)779-0948 INFO@SPECTRAFINANCIAL.CA

www.estevanmercury.ca

Wed., November 30, 2016

Issue 30

SERVING THE ENERGY CITY FOR 113 YEARS

Mailing No. 10769 | Publication No. 40069240

Feds say yes to BD3 SASKPOWER PRESIDENT RESPONDS TO LATEST GOVERNMENT MOVES

By Norm Park

Equivalency agreement

normpark@estevanmercury.ca

The time line hasn’t changed for making decisions regarding CO2 capture programs at the Boundary Dam Power Station. But the federal government’s announcement concerning an accelerated deadline date for removal of coal-fueled electrical power plants has accelerated the decision-making for the Shand Power Station, also located near Estevan. It also affects future decisions on the Poplar River Power Station near Coronach which is a coal-fired plant too. Mike Marsh, president and CEO for SaskPower spoke with the Mercury on Nov. 25, following the announcement. “The decision on whether to add Units 4 and 5 to the carbon capture program will probably be made in the latter part of 2017 or early 2018,” he said, referring to the current post-combustion carbon capture capabilities at Unit 3 at Boundary Dam. “Shand though … decisions there would have been made by 2042. Now it’s accelerated to 2030,” he said “And that’s not a small item. We will pursue all avenues to work with government to formulate some type of equivalency

Boundary Dam Power Station’s carbon capture program gets federal nod of approval. More local reaction on A2. File photo agreement,” referring to the fact that federal Environment Minister Catherine McKenna suggested that technology implemented at BD3 might be used as a mitigation measure when the issue of carbon capture and storage surfaces again. That avenue of mitigation was confirmed on Nov. 28 with the announcement that an equivalency agreement in principle was now in place between the federal and Saskatchewan governments. This would now include the BD3 technology as a viable and official method to deploy for the reduction of carbon dioxide. There is an optimistic attitude surrounding the BD3

Mike Marsh, SaskPower president and CEO.

project since it has advanced well past the experimentation and fledgling stages to become one of effective performance in the capture of carbon dioxide, having already removed more than 800,000 tonnes of CO2 from the atmosphere in the first full-year cycle of operation. “We could reduce the cost of the next generation of carbon capture significantly and that’s important to note because it would keep the cost of fossil energy, including natural gas below or even with the cost of alternative power production sources,” Marsh said. On the positive front, the technology used for carbon capture on coal-fired plants will translate very effectively to natural gas fueled plants as well. The option of hooking up to Manitoba’s renewable hydro-electric system to meet Saskatchewan’s growing demands, has also been explored, the SaskPower president said. In fact Saskatchewan has contracted with Manitoba for spot needs in the past and options continue to be explored. If that path were to be followed, Marsh said he expected federal government assistance might come into play since an increase in transmission grids would come with a substantial additional cost. “Regional transmission is expensive,” he said. But no options are being dismissed. When it comes to renewable sources for power production, Marsh said wind and solar continue as serious options

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and players heading toward 2030 and the provincial target of having at least 50 per cent of electrical power production coming from renewable sources. Looking to the private sector to provide these alternative power sources, is certainly on the table and since some manufacturers have expressed interest in setting up shop in Saskatchewan, that enhances the opportunities, he said. Long-term partnerships with wind and solar electrical suppliers is gaining momentum as those industries mature and bring in their innovations that make them very viable. The prospects provided by geothermal energy sources will also be explored as it also matures, said Marsh. “It too has potential on the practical and economic sides.” Going back to the topic of BD3 and the carbon capture system in place, Marsh said, “when we look at BD3 we are seeing operating costs now that are the same as renewable energy costs like solar and wind. Coal and gas as fuel, are cheaper for now, but that doesn’t mean that will always be the case, that’s why we look at all options.” Marsh said the carbon capture plant continues to gain traction around the globe as the word gets out about its capabilities on a commercial scale. He said there is particular interest in Asia where there are several thousand coalfueled electrical power plants in operation with several thousand more being built.

The Governments of Canada and Saskatchewan have reached an agreement in principle to finalize an equivalency agreement for Canada’s existing coal-fire regulation. The agreement will now include an equivalency clause that recognizes the current and future opportunities for carbon capture and storage (CCS) to trap carbon dioxide and store it. That process has already been deployed at SaskPower’s Boundary Dam Power Station on the refurbished 115 megawatt Unit 3 that includes a carbon dioxide carbon capture island. On Nov. 21, the federal government announced regulatory action that will accelerate the transition from traditional coal power to clean energy by 2030. Traditional coal-fired electricity does not use carbon capture and storage technology. Once finalized, the federal/provincial equivalency agreement on coal-fired power generation regulations will provide Saskatchewan with more flexibility in transitioning to more renewable energy including evaluating future opportunities for carbon capture and storage. “This agreement is good news for Saskatchewan’s environment and provincial economy,” Environment Minister Scott Moe said. “We can proceed with our aggressive plan to move to 50 per cent renewable energy generation capacity by 2030, cutting emissions by 40 per cent over 2005 levels. Saskatchewan can continue to use coal in a responsible manner beyond 2030 as long as equivalent emission reduction outcomes are achieved.” Federal Minister of Environment and Climate Change, Catherine McKenna, who had toured the Boundary Dam Unit 3 site earlier this year, said, “I’m pleased to work with the province toward an equivalency agreement that makes sense for them and that considers the innovative steps they’re taking toward renewable electricity and lower emissions electricity sources. I look forward to continuing to collaborate with all provinces and territories to find ambitious solutions to climate change as we set ourselves on a sustainable and prosperous path for the future.” Through the agreement, the province would be allowed to meet or improve upon federal emission requirements on the electricity system-wide bases as opposed to regulation of every coal-fired plant. The agreement recognizes that Saskatchewan will meet emissions outcomes of the federal government’s coal-fired electricity regulation and proposes to take provincial emissions into account as of July 1, 2015, in establishing the equivalency agreement. The agreement acknowledges the province has introduced CCS “in advance of, and beyond regulatory requirements” and has a significant public commitment to renewable energy.

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