Wall signs carbon capture pact with three states

Premier Brad Wall signed an agreement with three states this week during his time at the Western Governors’ Association meeting in Arizona.

The premier signed a memorandum of understanding (MOU) with representatives from Montana, North Dakota and Wyoming related to carbon capture technology.

Each of the four governments involved in the MOU, according to a government press release, express “a mutual desire to reduce greenhouse gas emissions while aiming to improve strategic and diverse energy production.”

It also says that the three states and Saskatchewan will collaborate on carbon capture, utilization and storage (CCUS) related to sharing of capacity, as well as regulatory expertise in the fields of carbon dioxide capture, transportation, storage and enhanced oil recovery.

“Our four energy-producing jurisdictions are committed to sharing knowledge on this important technology so that we can manage greenhouse gases responsibly while ensuring our economies continue to grow,” Wall said in a statement.

“As a world leader in the advancement of CCUS technology, Saskatchewan has much to contribute. SaskPower’s groundbreaking Boundary Dam 3 project is the world’s first commercial power plant with a fully integrated post-combustion carbon capture system, and an excellent example of what is possible if we embrace CCUS.”

SaskPower’s Boundary Dam 3 near Estevan has captured 1.75 million tonnes of CO2 since it started in 2014, but has faced significant criticism for delays, its $1.5-billion price tag and need for regular repairs.

While there remains international interest in the science behind carbon capture technology, SaskPower continues to delay its decision on whether it will invest further in the technology.

Earlier this year, delegates from 14 different countries gathered in Regina to attend a CCS conference, where much of the talk focused on the need to expand the technology worldwide.

At that time, SaskPower president and CEO Mike Marsh said the plant near Estevan was continuing to improve each and every day, but that there continued to be problems with a chemical (amine) solution used to operate the facility, as well as higher than expected operating costs.

He said then that SaskPower will likely be deferring its decision until at least the spring, which is well after Wall steps down and is replaced at the end of January. (The provincial cabinet that forms after Wall’s retirement will have final say on any decision made).

“The decision that we have to make on the next carbon capture facility is a very, very important one for SaskPower, it’s a very important one for the province,” said Marsh.

“We have to look at the state of the art today in terms of what capital costs would be and what our operating profile would be, and what the alternative would be.”