The commitment to coal-based power in southern Saskatchewan took another step forward on June 18 during the official launch of SaskPower's carbon capture test facility (CCTF) at the Shand Power Station.
"Renewable energy is important, but the reality is, the world will rely on fossil fuel energy, on oil, natural gas and coal for some time to come," said Premier Brad Wall in a video message to the various guests who attended the CCTF's official launch.
The $70 million test facility, built in partnership with Mitsubishi Hitachi Power Systems Ltd., serves as a high-tech laboratory that uses a small amount of exhaust (flue) gas from the neighbouring Shand Power Station. It allows companies, like Mitsubishi Hitachi, to rent out the facility and test equipment, perform chemical innovations or engineer designs in a highly controlled environment that is monitored by about four or five people, including technicians from the companies testing their product.
Mitsubishi senior executive vice president, Mr. Yasuo Fujitani, told everyone in attendance that it was an “honour” to be a part of this project and that it would not have been possible without the government’s co-operation.
According to SaskPower’s media relations, the federal government contributed $1.3 million toward the design of the facility through the Natural Resources Canada’s ecoENERGY Technology Initiative. SaskPower financed the remainder of the project.
The test facility is also an important part in addressing the "international challenge" that is climate change, according to Wall. He noted Asia has a rapidly growing population and that China produces one coal-based power plant every 10 days.
"By 2035, coal will be the most significant fuel source in global power generation," Wall said. "So, how do we dramatically reduce greenhouse gas emissions without bringing our economies to a halt. That's the question before us."
However, according to the National Energy Board's Energy Supply and Demand Projections to 2035, which was last updated in April 2015, the overall use of coal in Canada is going to decrease. Close to 9,000 MW of coal-fired capacity are expected to be retired between 2013 and 2035, noted the report, and will largely be replaced by natural gas and various renewable energy sources.
SaskPower CEO Mike Marsh told reporters after the official launch of the test facility that SaskPower is looking to expand its use of wind, solar and biomass.
"Carbon capture technology is just one tool in our tool belt," Marsh said.
At the Canadian Wind Energy Association's Western Forum in Vancouver on April 27, SaskPower's manager of sustainable supply development, Brian Mohr, announced that their company is planning to increase the province's wind capacity to 10 per cent by 2020, and 30 per cent by 2030.
Capacity means electricity generated by wind turbines operating at full power. Quite often, wind turbines do not operate at full capacity, and therefore the actual electricity produced is less than the turbines’ maximum capacity. SaskPower’s 2014 annual report states that electricity generation from wind made up only 2.7 per cent of the province’s total generation. According to the U.S. Energy Information Administration, the state of Iowa produces 28 per cent of its total electricity from wind generation, and its maximum capacity is 34 per cent.
In an interview with the Mercury, Guy Bruce, SaskPower vice president of resource planning, said wind is the most obvious renewable source that Saskatchewan should try to expand, followed by solar, which he said continues to become a cheaper energy source every time it’s analyzed as a potential option for power generation.
The commitment to carbon capture, however, which comes with a price tag of about $1.6 billion when combining the retrofitted Boundary Dam Unit 3, Aquistore storage project and the CCTF at Shand, is a greater reflection of the provincial government's dedication to fossil fuels over renewables. As a result, coal will continue to be a focal point for SaskPower and the province of Saskatchewan's energy generation for the foreseeable future.
Marsh told reporters he's looking forward to the CCTF operating for at least a year, and at the same time, analyzing Boundary Dam Units 4 and 5 to see if they can be retrofitted with carbon capture technology, too.
He added it will be important to build a "solid" business case during that time, as well.
"Everything is still predicated on a solid business case," Marsh said.
CCS worth exploring, not worth committing to, expert says
Director of environmental policy for the Environmental Society of Saskatchewan, Peter Prebble, said carbon capture technology is worth exploring, but advised against plans to retrofit additional units at Boundary Dam.
"We mustn't make the mistake of doing it again," Prebble said. "We would be putting too many eggs in the carbon capture basket."
He noted the recent announcement at the G7 summit in Germany, where a commitment to phase out fossil fuels by 2100 was made, and said despite the fact that it's a long-term goal, steps should be taken now to reduce greenhouse gas emissions quickly.
"G7 leaders are clearly signaling that countries must reduce their greenhouse gas footprint," he said. "They have to go down, not up, and in Saskatchewan, our emissions have steadily been going up each year."
On a per capita basis, Saskatchewan has the highest greenhouse gas emissions in the country, according to Statistics Canada. The global average is 7 tonnes per person and the Canadian average is just under 20. Saskatchewan's average is 67.
"We have a very high greenhouse gas footprint for our economy," he said.
SaskPower and the provincial government have stressed numerous times that the carbon capture facility removes 1 million tonnes of carbon from the atmosphere annually, but Prebble said that total is a fraction of the province's total emissions, which is 75 million tones of carbon dioxide emissions each year.
"We can't afford to spend a billion dollars every time we reduce emissions by one million tonnes," he said.
When it comes to the effects of climate change, Prebble said Saskatchewan, particularly southern Saskatchewan, has been directly affected by it twice within the last five years in the form of extreme flooding in 2011 and in 2014. Extreme weather conditions are one of the most common effects of climate change, and Prebble attributes those events to the effects of pollution on the environment.
Prebble, who also served as Saskatchewan's Public Safety Minister, said provincial disaster assistance funding in the province has "skyrocketed" since 2002.
According to a March report found in the Canadian Centre for Policy Alternatives, which Prebble contributed to, provincial spending on disaster assistance has risen from $1.5 million in the fiscal year ending March 31, 2002 and $1.67 million in the fiscal year ending March 31, 2003 to about $157 million in the fiscal year ending March 31, 2012. The estimated spending on PDAP for the fiscal year ending March 31, 2015 is $150 million.
"Climate scientists have warned us for some time that a warmer atmosphere will hold more water vapour and that climate change is thus more likely to cause an increase in intensive rainfall events and flooding," Prebble said.
**Graph below shows increase (in dollars) in disaster assistance funding over the years.
