27 February 2008 — The provincial government in Saskatchewan, Canada, said it will proceed with plans for a seven-year, $1.4 billion ($1.41 billion US) reconstruction and repowering of SaskPower’s coal-fired power generation unit at Boundary Dam.
The Canadian federal government also earmarked $240 million to Saskatchewan for a clean-coal demonstration project.
The province said the proposed retrofit project would ultimately produce 100 MW while reducing SaskPower’s greenhouse gas emissions by about one million tons a year. The carbon dioxide captured by the project would be used in enhanced oil recovery.
The prospect of a coal-burning plant with minimal greenhouse gas emissions reportedly has appeal given the province’s large coal reserves and its per-capita greenhouse gas emissions that lead the country. The Saskatchewan Party government has committed to keep the greenhouse gas reduction targets adopted by the NDP administration last year, which include a 32 percent cut by 2020.
The former government last year shelved a SaskPower plan for a new clean-coal plant near Estevan, in part because its projected costs grew from $1.5 billion to $3.8 billion.