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Partnership for SaskPower's Clean Coal Project Announced

Posted on: Monday, 30 October 2006, 12:00 CST

REGINA, Oct. 30 /PRNewswire/ -- SaskPower, Babcock & Wilcox Canada (B&W) and Air Liquide have come to an agreement to jointly develop carbon dioxide (CO2) separation technology as the core process for SaskPower's Clean Coal Project.

The technology, called Oxyfuel, nearly eliminates emissions of combustion by-products, including greenhouse gas emissions.

"The type of innovation displayed by all partners in this project is key to building a green and prosperous future for our province," Premier Lorne Calvert said. "This project will enhance the quality of life for all Saskatchewan residents. The environmental and economic implications of the project extend beyond our borders, to the national and international stages."

SaskPower is currently examining the feasibility of designing and implementing a 300-megawatt clean coal plant that would capture about 8,000 tonnes of CO2 a day. "This may be the world's first near zero emissions pulverized coal unit," Minister responsible for SaskPower John Nilson said. "This unit would help meet emerging regulatory requirements while adding much needed baseload generating capacity while effectively using our 300-year supply of low-cost lignite coal."

"Developing partnerships will be key to the success of our Clean Coal Project," SaskPower president and CEO Pat Youzwa said. "The agreements with B&W and Air Liquide build on the design supply partnership with B&W announced earlier, and with Marubeni Canada and Hitachi for the turbine generator set - which are considered the basic building blocks for a thermal generating station."

"We are very pleased to be working on this SaskPower-led coalition, in which collaboration, cooperation and commitment are the guiding principles," Babcock & Wilcox Company vice president and chief technology officer Don Langley said.

"Addressing climate change means preventing the release of CO2 emissions into the atmosphere by coal-fired power plants," Air Liquide Group executive vice president Pierre Dufour said. "SaskPower is to be commended for having the vision and will to show the way."

B&W serves North American electric utility and industrial markets and the global nuclear utility market, with manufacturing facilities in Mellville and Cambridge, Ontario. More information on the Babcock & Wilcox Company is available at http://www.babcock.com/.

Present in 72 countries, Air Liquide is the world leader in industrial and medical gases and related services. The Group offers innovative solutions based on constantly enhanced technologies.

SaskPower is the principal supplier of electricity in Saskatchewan, serving more than 441,000 customers. The Corporation operates with a total available capacity of approximately 3,655 megawatts, supplying customers through more than 154,000 kilometres of transmission and distribution lines. The focus of recent additions to our system is on environmentally sustainable and renewable energy sources.

Media Fact Sheet ------------------------------------------------------------------------- Clean Coal Project Technology Announcement - During the next 20 to 30 years, SaskPower will be making major decisions concerning the refurbishment or replacement of virtually its entire generating fleet. In addition to clean coal, a variety of options are being reviewed, including: demand side management; polygeneration; renewables; purchased power; imports; cogeneration and nuclear power. - Saskatchewan's 300-year supply of mineable lignite coal remains the most cost-efficient and stable-priced fuel for base load generation requirements. However, there are environmental concerns surrounding coal combustion. - SaskPower is leading a pre-commitment engineering study (referred to as SaskPower's Clean Coal Project) to establish a design schedule, cost assessment and project execution plan for what may become the worlds first near zero-emissions clean coal unit. - The approximately $1.5-billion, 300-megawatt clean coal plant would capture 90 per cent of carbon dioxide (CO(2)) emissions. Approximately 8,000 tonnes of CO(2) a day would be sequestered in underground deep saline aquifers or sold to oil companies for use in enhanced oil recovery. - SaskPower, Babcock & Wilcox Canada (B&W) and Air Liquide have come to an agreement to jointly develop CO2 separation technology as the key process for the SaskPower Clean Coal Project. - The technology called Oxyfuel involves removing nitrogen from all of the combustion air in order to operate the boiler in the absence of nitrogen. - With this process, gasses leaving the boiler are relatively easy to purify, compress and deliver for enhanced oil recovery with ultimate geological sequestration. The technology nearly eliminates emissions of combustion by-products, including greenhouse gas emissions. - This agreement builds upon the design supply partnership for the boiler with B&W announced earlier, and with Marubeni Canada and Hitachi for the turbine generator set. The boiler and turbine are considered the basic building blocks for a thermal generating station. - As well as Air Liquide and B&W, SaskPower is assisted by Regina engineering company Neill and Gunter, Marubeni Canada, and Hitachi in the design of the unit. - B&W serves North American electric utility and industrial markets and the global nuclear utility market, with manufacturing facilities in Cambridge, Ontario; and Melville, Saskatchewan. - Air Liquide is a world leader in the design, construction and operation of air separation units with over (euro)10 billion in sales annually. - If successful, the advanced clean coal power plant will be the first of its kind in a utility scale application. This project has the potential to strategically position SaskPower in global markets where coal is a major fuel source. A decision on whether to proceed with the project will be made in mid-2007, with an in service date of 2011.

SaskPower

CONTACT: Larry Christie, SaskPower, Regina, Phone: (306) 566-3167, Cell:(306) 536-2886

Source: PRNewswire

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