Saskpower continues to weigh carbon capture

REGINA Saskpower says it “continues to analyze” whether carbon capture and storage (CCS) capabilities should be placed on its remaining fleet of coal-fired plants.

As it stands now, the province’s Shand Power station near Estevan could become a “stranded asset” by 2030.

Built to last until 2042, the federal government’s regulations dictate coalfired power plants must be closed by 2030 unless they are outfitted with CCS technology.

A statement sent Wednesday from Saskpower said the Crown is waiting for a more detailed report from Regina-based CCS Knowledge Centre on the future of the technology and the possibility of it being installed at Shand.

“We will also consider capital costs, technology risk and other market conditions like the cost of natural gas and potential for CO2 sales to assess the viability of the CCS business case relative to other generation options,” it said. “For a CCS plant to be operational by the end of 2029, a final decision to proceed with construction would be required no later than 2024-25.”

A U.k.-based study done last year determined retrofitting Shand with CCS technology would be cheaper than previous projects, but would still cost somewhere around $1 billion.

Already the province has said it won’t install CCS capabilities on other, soon-tobe-retired coal plants.

Under a new, tentative coal equivalency agreement between the province and the federal government, Saskpower must reduce its greenhouse gas emissions by 40 per cent below 2005 levels by 2030.

The commitments under that agreement are similar to previously announced commitments Saskpower has made to increase its renewable energy capacity and lowering its emissions.

Although subject to always changing regulatory, market and technological conditions, the province is expecting to significantly increase its wind generation and other renewable generating capacities between now and 2030.

In 2018, 72 per cent of Saskpower’s generating capacity came from either conventional coal or natural gas.

Five per cent came from wind, 20 per cent came from hydroelectricity and the remainder came from a mix of CCS and other emerging technologies.

In 2030, Saskpower projects 50 per cent of its generating capacity to come from non-renewable resources, but have 30 per cent wind generation, 15 per cent wind generation and five per cent from other technologies (such as geothermal power generation).

Of Saskatchewan’s GHG emissions, 19 per cent come from coal-fired electricity compared with 32 per cent from oil production and 24 per cent from agriculture.