Wednesday, May 28, 2008

$1.4 B carbon capture project has no C02 buyer

Thanks to $240 million from the federal government, and $758 million from crown corporation Sask Power, a carbon capture project is going ahead in Estevan. However, there's a problem: the $1.4 billion total cost for the project has a $400 million gap to be filled by "industry." Without a company to invest those dollars to make use of the one million tonnes of captured C02 each year, the dollars just don't add up. So far, there's no takers.

This project, which will reduce output from 140MW to 100MW in two stages, makes sense in at least one way. Unit 3 of Boundary Power Dam in Estevan was built in 1960 and due for retirement in 2013. If the retrofit goes ahead, it can last an extra 20-30 years.

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