In July 2008 SaskPower issued a request-for-proposals for carbon capture technology for the demonstration project, inviting companies from across Canada and around the world to submit proposals for consideration.
Three companies have been shortlisted to proceed to the next stage for further evaluation – Powerspan Corp., Cansolv Technologies Inc. and Fluor Canada Ltd.
“We had an independent consultant evaluate the proposals based on performance, cost of capture, capital costs, operating costs and associated risks,” said Mike Monea, vice-president, Integrated Carbon Capture and Sequestration.
“The technologies that were selected present the lowest cost and risk for CO2 capture and are best suited to our demonstration project.”
The Federal Government has contributed $240 million toward the project, which has an estimated value of approximately $1.4 billion.
The companies will now move forward to the next stage of the process, which involves the preparation of detailed project designs, cost estimates and risk profiles.
Due to the rapidly evolving nature of the carbon capture industry, SaskPower will also continue to monitor and evaluate emerging carbon capture technologies and trends in the industry.
The final selection of a carbon capture technology will take place by the end of 2009.
The Boundary Dam Integrated Carbon Capture and Sequestration Demonstration Project will transform the aging Unit 3 at Boundary Dam Power Station into a reliable, long-term producer of clean base load electricity, while enhancing provincial oil production and reducing greenhouse gas emissions.
The project is also good for the economy – it will result in capital investment, increased royalty revenues (from coal and petroleum production) and innovative employment opportunities by extending the life of the unit for another 30 years.
To ensure long-term support for the province’s economic growth, SaskPower will also continue with the development of other supply options.
Building on the already-diverse mix in the current generation fleet, future options under consideration include polygeneration, demand-side management, cogeneration, natural gas, imports, purchased power, nuclear, large and small hydro and renewables – like biomass and wind.