From: Michael Monea [mailto:MMonea@saskpower.com]

Sent: Tuesday, February 02, 2016 5:49 PM

To: Hutson, Nick <Hutson.Nick@epa.gov>

Cc: Sandra Beingessner <SBeingessner@saskpower.com> Subject: RE: follow up conversation on BD3

Nick, here are a few points, very general, I will k eep digging...
Mike

Thank you for your interest in our carbon capture a nd storage (CCS) project in Saskatchewan, Canada.

Here at SaskPower, our mission is to provide reliab le, cost-effective and sustainable power for our province. Coal has long been a reliable and afforda ble part of our fleet, and CCS has been a way for SaskPower to also make it a more sustainable option

.

The CCS project at our Boundary Dam Power Station i s the world’s first such project that is fully integrated to a coal-fired power plant using post-c ombustion technology. As such, we had anticipated challenges in our first year of operation, and inde ed we’ve addressed many. We captured more than 400,000 metric tonnes of carbon dioxide in the firs t year of operation.

In fall 2015, we brought the system down to address several important technical and mechanical issues, and brought it back online in early November. The f acility has operated well since. We captured more i n November than in any previous month of operation, a nd beat that total again in January 2016, capturing 85,000 tonnes. We also recently completed nameplate testing, where we successfully tested the capture limits of our facility. This means that 3,240 tonne s were captured per day for three consecutive days, representing 90% of CO2 emissions. So far, we’ve ca ptured 540,000 tonnes of carbon dioxide since
October 2014.

We are now operating the facility in a way that mee ts Canadian federal emission regulations, and
satisfies the volume needs of our carbon dioxide bu yer, which involves capturing approximately 2,700 tonnes per day. The designed and demonstrated maxim um capacity of the process can reduce carbon dioxide by 90%, or one million tonnes a year. We wi ll operate at various levels to be mindful of costs and long-term system performance, and plan on capturing 800,000 tonnes of carbon dioxide in 2016.

The captured carbon dioxide is either sold for enha nced oil recovery in nearby oilfields or sent to SaskPower’s Carbon Storage Research Centre. This fa cility hosts the Aquistore project’s deep injection
well. This is where carbon dioxide can be stored sa fely, miles below the earth in a saline aquifer and sealed in permanently. Aquistore is administered an d monitored continuously by the Petroleum Technology Research Centre at the University of Reg ina. We have used it to successfully and safely sto re more than 10,000 tonnes of carbon dioxide at this p oint.

We have received much interest at home and abroad a bout the performance of our CCS process. We have begun posting performance updates on our websi te at saskpower.com for the public to keep appraised of our progress. We plan on continuing th ese updates throughout the year.

Last summer, we were also very pleased to launch ou r carbon capture test facility. It is a unique faci lity in that it is connected to an active coal-fired pow er plant, allowing technology developers and vendor sto use actual flue gas to test the next generation of CCS technologies. Mitsubishi-Hitachi Power Syste ms

are currently using the facility until 2017, when w e will make it available for another vendor.

Thank you for your continued interest and support o f SaskPower’s carbon capture and storage
initiatives. Saskatchewan has demonstrated a commit ment to the environment and to its residents by investing and innovating in this technology. As you know, this investment has the potential to benefit not just Saskatchewan, but numerous jurisdictions t hat will continue to burn coal as a source of power
for the foreseeable future.

It would be an honour to host representatives for a visit of the facility in Estevan, Saskatchewan, Canada, if you would ever like to witness the proje ct first-hand.

Sincerely,

Mike Monea
President SaskPower Carbon Capture and Storage Initiatives



## Michael J. Monea, P.Eng., P.Geo., ICD.D
SaskPower | President, Carbon Capture & Storage Initiatives p. 306-566-3132 | email ( mmonea@saskpower.com ) | saskpowerccs.com twitter.com/saskpowerccs | youtube.com/saskpowerccs Head Office, 12C, 2025 Victoria Avenue Regina, SK S4P 0S1