Carbon Capture and Storage Initiatives

E X SASKPOWER
E C U T I V E S T R ACCSTEGICB OU NDAR Y DAM CCS PR OJECTPLANNING SESSION@SaskPowerCCS

FUTURE IS HERE VIDEO
GOES HERESASKATCHEWAN’S PRINCIPLE

POWER PROVIDERSASKPOWER’SENERGY MIX

511,000
CUSTOMERS
151,000 KM OF
TRANSMISSION LINE4,181 MW AVAILABLE
GENERATING CAPACITY©
© SASKATCHEWAN
SASKATCHEWAN POWER
POWER CORPORATION.
CORPORATION. ALL
ALL RIGHTSRIGHTS RESERVED.
RESERVED.

44

Carbon Capture and Storage Initiatives

EXECUTIVE STRATEGICPLANNING SESSIONBOUNDARY DAM

CCS PROJECTSASKPOWER DECISION FACTORS• SaskPower: Crown Corporation – obligation is tocustomers• Lowest electricity costs over long term while
meeting high standards for reliability,
environmental performance and affordability• Conventional coal no longer an option• Diverse power generation fleet has been aproven strength• External economic considerations

FIRST OF A KIND BUSINESS CASE
• Unique project characteristics– High capital cost
– Government financial support– Non-electricity revenue– Additional engineering/hardware to minimize newtechnology risk
– Older unit requiring SOx/NOx emissions control• Baseload generation – cost competitive
alternative was Natural Gas Combined Cycle• Significant economic benefits outside ofSaskPower8

CCS FACILITYCCS PROJECTCO2 AND SO2ABSORBERS

BOUNDARY DAMCCS PROJECTCO2 STRIPPER

BOUNDARY DAMBOUNDARY DAM
SO2 STRIPPER

CCS PROJECTACID PLANT

CO2 PIPELINEBUSINESS CASE AT A GLANCE• Figure 13

REGULATIONSWHY IS CCS IMPORTANT TOSASKPOWER?
• Deliver affordable electricity• Sustainability– Refurbishing aging Infrastructure– Environmental obligations• Portfolio diversification• Unpredictable natural gas prices

ENVIRONMENTAL OBJECTIVES
Performance

Pre-CCS

Post-CCS

ChangeCO21,139K

112K

90%

SO27K

0100%

NO

2.4K

1.05K

56%

PM10190

1592%

PM2.565770%

COMPARING COSTS
Baseload Natural Gas
Cost of Electricity

BD3 Carbon Capture
Cost of Electricity

Capital Investment
Fuel Expense
O&M© SASKATCHEWAN POWER CORPORATION. ALL RIGHTS RESERVED.

19

THE EQUIVALENT OF:
TAKING ALL THE CARS OFF THE
ROAD IN REGINA, SK (POP. 220K)+ CAPTURING ALL CO2 FROMHEATING/COOLING OF EVERY HOME+ KEEPING THE LIGHTS ON IN
HALF OF THE CITY.

400,000 TONNES

OF CO2 CAPTURED SINCE START-UP – OCT 1, 2014CAPABLE OF 90% CO2 CAPTURE
AT FULL EFFICIENCY120 MWh NET TO GRIDESTIMATED 110 MWh

99.9%

CO2 PURITY WE’RE EXPERIENCINGCOSTS TO DATEOVERALL PROJECT TOTAL……………………………………..……...$1,467M
CANADIAN FEDERAL GOVERNMENT PAID AMOUNT……..……..$239.6M
NEST COST TO SASKPOWER……………………………………..…....$1,227M*Approx. an 18% increase
CCS FACILITYCONSTRUCTION COSTS$905M

POWER PLANTREFURBISHMENT$562M*Most of cost increase was in power plant rebuild
IE: “Brown field” work
As with any major infrastructure project, we are still finalizing
outstanding financial arrangements with some vendors.

GENERATION COSTS
$150
$130
$110
$90
$70
$50
$30

$US
/MWhCoal

Coal with Natural Gas Nuclear
CCSBiomass

Wind

Data Source: 2010 Electrical Power Research Institute, Program on Technology Innovation: Integrated Generation Technology Options©
© SASKATCHEWAN
SASKATCHEWAN POWER
POWER CORPORATION.
CORPORATION. ALL
ALL RIGHTSRIGHTS RESERVED.
RESERVED.

2323

MANAGING THE DETAILS•••••••••

Construction Management
Change Management
Safety Management
Risk Management
Permitting
Knowledge Building
Onboarding and Training
Unfamiliar Processes and Equipment
Transition to Operation

THE LEARNINGSBE FOCUSEDPriority #1
Stable, Cost-effective Power Supply
Priority #2
Carbon Capture and By-Products

BE BOLD

Choose a technology sufficiently close
to commercial viability to be successful

BE ENERGIZED BY CHALLENGES

The team navigated many changes
such as equipment choices, corporate
policy changes, construction hurdles,
third-party review

BE COMMITTED

Overworked but determined
to deliver as promised

BE SAFE

During the 4.5 million person hours ofconstruction time there wereno lost-time injuries

COLLABORATION• The key to SaskPower’s success– past, present and future• The way you can learn from SaskPowerCAPTUREU of R
STORAGE
Mongstad
Aquistore
Canmet ENERGYIEAGHG WeyburnCCPCMidale
ECRF
UKCCS
UK CCSSASKPOWER CCSCONSORTIUM

OFF-TAKERS
Sulphuric Acid
Fly AshCARBONCAPTURE TESTFACILITY
Mitsubishi Hitachi
Power Systems

AQUISTOREGEOLOGICAL STORAGE• Pure CO2 storage with SaskPower’s CarbonStorage and Research Centre’s host project,Aquistore.
• Independent monitoring project that identifies
feasibility of injecting CO2 into a deep saline
reservoir in an effort to reduce GHG emissions.
• Aquistore will receive approximately 350,000
tonnes of CO2 over its life. Storage is regulatedby the Ministry of Environment.
• Will be measured, monitored, verified andaudited.
• Saskatchewan has experience with storage
due to the Weyburn Midale project.
Approximately 25 million tonnes of CO2 storedand monitored.

Deep Saline Aquifer StorageCARBON CAPTURETEST FACILITY

PARTNERSHIPBOUNDARY DAM

UNITS 4 & 5

OPPORTUNITIES FOR
FUTURE PROJECTSUnit

InitialInvestment

FinalInvestment

In ServiceBD 4/52016

2019*2025*

BD 6202220242028*

PR 12024

2026

2030*

PR 22026

2026

2030*

Shand 12037

2039

2043*

New Build

New costs more than rebuild today* Fixed by regulation

OPPORTUNITIES FOR
FUTURE PROJECTS• Federal government requirements set theschedule for unit retirement or CCS retrofit• Over capture not necessary – hit 420 mark• Must be competitive with natural gas and wind
• Still depends upon enhanced oil recovery (EOR)
market – diversified customer base likely
neededOPPORTUNITIES FOR
FUTURE PROJECTS• Configurations under consideration, reflect uponsavings from….
– Two generating units or one for capture– Equivalence needed by larger units• Capital cost reduction Initiatives– Capture at 420; not 140 kg/MWh– Economies of scale– Lower integration costs – risks known– Numerous BD3 technical learnings– Increased modularization• Avoid natural gas price volatility

MUST BE COST COMPETITIVE WITH
ACCEPTABLE ALTERNATIVESNATURAL GAS PRICESSAMPLE GLOBAL NATURALGAS PRICES

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

OPPORTUNITIES FOR FUTURE PROJECTSREGULATORY EQUIVALENCY• Federal-Provincial discussions on coal fired CO2equivalency• Requirement to eliminate coal fired CO2 emissions
would be unchanged, however could allow forcapture from alternative units if meets same overallrequirement• Could allow SaskPower to capture from one 300 MW
unit rather than BD4/5• Significant savings in power plant refurbishmentcostsBD3 CCS ECONOMICS

O&M
Fuel$/MWhCapital

2015

Federal Grant
Net Cost

BD4+5 NET

BD4+5NGCC

BD3 NET

BD3 REVENUE
BD3 COSTS

NGCC

BD3 NET

BD3 REVENUE

2010

BD4+5 REVENUE

Additional MW

BD3 COSTS

0CO2 & ByproductBD 4+5INFLUENTIAL

VISITORS

30 COUNTRIES AND COUNTINGVISITORS HAVE TRAVELLED FROM MORE THAN 30 COUNTRIES TO SEE
WHAT WE’VE DONE. AS THE WORLD COMES WITH QUESTIONS, WE’LL HAVE THE ANSWERS.

WHAT THE WORLD IS SAYING“Boundary Dam is one of 10
Energy Breakthroughs in 2014
That Could Change Your Life.”
WENDY KOCH, NATIONALGEOGRAPHIC“CCS on coal-fired power plants
provide us the largest opportunity
for application, and Boundary Damshows how it can be done. Unless
we do CCS, we’re never going tomeet long-term climate changegoals. This project provides us anopportunity to learn how we candirectly apply CCS in China.”
ASHOK BHARGAVA, ASIAN
DEVELOPMENT BANK (ADB)“The level of fossil fuel consumption inthe world is going to stay with us all
the way through 2050. If we want totake the emissions out, we must have
CCS in our armory in order toachieve that objective.”
DR. GRAEME SWEENEY,ZERO EMISSION FOSSIL FUELSPOWER PLANTS (ZEP)“As long as fossil fuels and carbonintensive industries play dominantroles in our economies, carbon
capture and storage (CCS) willremain a critical greenhouse gas
reduction solution.”
MARIA VAN DER HOEVEN,
INTERNATIONAL ENERGY AGENCY(IEA)

WHAT THE WORLD IS
SAYING VIDEO HERE

COMING SOONPeterhead

KemperPetra Nova

White Rose

TOURSTAKE THEE X EVIRTUALC U T I V E S TTOURRATEGIC
Carbon Capture and Storage Initiatives

PLANNING SESSION
www.SaskPowerCCS.com/TourCarbon Capture and Storage Initiatives

E X SASKPOWER
E C U T I V E S T R ACCSTEGIC
CCS Session
PLANNING SESSION@SaskPowerCCS