24/11/2005
- The Governments of Canada and Saskatchewan today announced
they will provide up to $40 million for initial feasibility
work on two projects that will help Saskatchewan reduce
greenhouse gas emissions.
The announcement was made today by federal Environment Minister
Stéphane Dion, Saskatchewan Industry and Resources
Minister Eric Cline, federal Natural Resources Minister
John McCallum and federal Finance Minister Ralph Goodale.
The funding is the highlight of a new five-year Memorandum
of Understanding on climate change between the Governments
of Canada and Saskatchewan. The funding is supported through
the Partnership Fund, part of the Government of Canada’s
Climate Change Plan 2005.
The funding announced today supports initial work on two
potential projects: a near-zero emissions clean coal plant
to be built by SaskPower in southern Saskatchewan and an
industrial gasification and poly-generation facility near
Belle Plaine. The projects also involve proposals for carbon
dioxide pipelines for enhanced oil recovery and retirement
of some existing SaskPower generating units in need of replacement
or refurbishment.
Canada and Saskatchewan will provide up to $10 million each
toward initial work on the potential clean coal project.
It is anticipated that the clean coal project could involve
the construction of an advanced 300 megawatt facility capable
of near-zero emissions of greenhouse gases and pollutants
normally associated with coal fired thermal power plants.
The second project involves support by Canada and a Saskatchewan
government- industry consortium, and provides for up to
$10 million each for technical and economic studies to determine
the commercial feasibility of a Saskatchewan poly-generation
plant. The project would deploy advanced technology to virtually
eliminate emissions while producing hydrogen, nitrogen,
steam and carbon dioxide to produce fertilizer, electricity
and other commodities.
Total cost of the proposed clean coal and poly-generation
projects is estimated at $4.5 billion, with both facilities
proposed to be operational by 2011. Today’s funding is for
front-end engineering, design and feasibility work, and
involves a continuing commitment from the federal government
should that design work prove positive. The funding also
supports design work needed to permit the use of captured
carbon dioxide in enhanced oil recovery operations in Saskatchewan
oil fields.
The new Memorandum of Understanding will see the two governments
collaborate on initiatives around energy conservation, development
of alternative and renewable energy sources, maximization
of agricultural soil and forest sinks, and development of
new energy and carbon management technology, including clean
coal and carbon dioxide separation and sequestration.
“Both of these projects promise long
term benefits for Canada in reducing greenhouse gas emissions
and also for technological development,” said Environment
Minister Stéphane Dion. “Today’s announcement is
a major step forwards fulfilling implementation goals
contained in our updated plan, Moving Forward on Climate
Change: A Plan for Honouring our Kyoto Commitment.”
“Through this announcement and MOU, we’re moving forward
on both climate change issues and our vision of a green,
prosperous and sustainable economy,” Minister Cline said.
“These two projects will help secure our electrical energy
supply if they proceed, and with future funding from the
federal government and continuing participation from industry,
will create new jobs and economic spin-offs, and apply
leading-edge technology for the benefit of Saskatchewan
people.”
“Clean coal and carbon dioxide capture and storage technologies
have the potential to help us reduce emissions and create
new economic opportunities internationally,” said Minister
McCallum. “Coal is widely used around the world, and we
need to develop and demonstrate technologies that allow
us to use it in a way that more environmentally friendly.”
“I am pleased to see that early projects from the Partnership
Fund that I announced in last February’s budget are here
in Saskatchewan,” said Minister Goodale. “The new opportunities
offered by clean coal technologies and carbon capture
and storage are good for reducing greenhouse gas emissions
and good for our economic competitiveness.”
Federal funding for the Saskatchewan projects is provided
for through Canada’s $250M Partnership Fund. The Government
of Canada’s funding commitment under this Fund could grow
to 2 to 3 billion dollars over the next few years as more
and more projects are brought forward that will bring
reductions in the Kyoto period and beyond. With the leveraged
investments, it would create with provinces, territories
and the private sector, Partnership projects aim to reduce
emissions by 55-85 megatonnes by 2012.
The Partnership Fund is a major initiative of the updated
climate change plan, Moving Forward on Climate Change:
A Plan for Honouring our Kyoto Commitment. The plan is
an initiative of Project Green, a set of federal policies
and programs aimed at supporting a sustainable environment,
healthy population and competitive economy. Project Green
addresses environmental and competitiveness issues for
the 21st century including measures to reduce greenhouse
gas emissions, to increase fuel and energy efficiency
and to increase Canadian and foreign markets for environment
technologies can drive our economy and protect our environment
and health.
More information on Canada’s updated climate change plan,
Moving Forward on Climate Change: A Plan for Honouring
our Kyoto Commitment, can be found at: http://www.climatechange.gc.ca |
