It was a statement that created all sorts of fear for local residents last week.
SaskPower president and CEO Mike Marsh, in a meeting with the CBC, reportedly claimed it was “highly unlikely” that the Crown corporation would look at retrofitting Units 4 and 5 at the Boundary Dam Power Station with carbon capture and storage (CCS) technology. Instead, it appears SaskPower will be recommending natural gas for the future of baseload power production.
When SaskPower ventured down the CCS path and retrofitted Unit 3 at the Boundary Dam Power Station, there was never a guarantee that it would extend CCS to Units 4, 5 and 6 at Boundary Dam. Nor was there a guarantee it would retrofit the Shand Power Station or the Poplar River Power Station near Coronach.
But many expected that the common sense decision would be to proceed with CCS for Units 4 and 5 at Boundary Dam, and eventually Unit 6 as well. (For what it’s worth, Unit 6 is by far the most powerful coal-fired unit in the province).
After all, why would the government shell out well over a billion dollars to retrofit one unit at Boundary Dam if it wasn’t going to do some, or preferably all, of the remaining units?
The provincial government has also spent a lot of money promoting the CCS project, and has welcomed hundreds of delegates from around the world to tour the facility. Those visitors have given the CCS project rave reviews.
While conventional or compliant coal technology is nearing its end in Canadian power generation, CCS is an option for keeping coal in the power production mix. It’s in our best interest to have coal in the mix, because it’s a low-cost and cost-consistent source. We just need a way to make it more environmentally friendly.
Compare that with natural gas, which can be volatile. Natural gas prices are currently low, but that doesn’t mean they’ll be low in five or 10 years. Put too much emphasis on natural gas, and Saskatchewan residents will be susceptible to price fluctuations.
The price associated with CCS might not have declined like the provincial government had hoped, but it’s still the best bet for Saskatchewan’s baseload power needs moving forward.
While Marsh’s comments might be alarming for local residents, there are a few things that should be noted. Marsh seemed to later backtrack, claiming a decision has yet to be made. He also touted the accomplishments for the CCS facility, such as capturing more than 1.7 million tonnes of carbon dioxide since the facility opened in 2014.
The provincial government could also decide to forge ahead with retrofitting Units 4 and 5, even if SaskPower does believe natural gas is the better option. But that scenario would be unlikely.
Finally, it should be noted that SaskPower has not made a decision about Unit 6 at Boundary Dam, or the Shand Power Station. There’s still a lot that could happen before the government determines what will be in their future.
The possibility of not retrofitting Units 4 and 5 doesn’t necessarily mean the demise of CCS, Boundary Dam or coal-fired generation in Saskatchewan. But it would be sad news if Units 4 and 5 aren't retrofitted.
