June 18, 2009

Saskatchewan, Montana Join Government Forces on CCS Project

Saskatchewan Premier Brad Wall signed an MOU with Montana Governor Brian Schweitzer to develop one of the world's largest international CCS demo projects. The US and Canadian federal governments have recognized CCS as one of the key technologies in future international efforts to address climate change.

"We are formalizing a new era of cooperation between our province and the State of Montana and building a clean energy future for our two countries," Wall said. "We are taking the lead in the development of new technologies that capture and store carbon from coal-and gas-fired

power generation deep underground. It will help Saskatchewan to meet the federal government's target to reduce GHG emissions by 20 percent below 2006 levels by 2020."

"CO2 is a global concern, and it is time to work together to address this pressing issue," Schweitzer said. "Montana has 30 percent of the coal in America, and in order to use our coal we need a solution to CO2. I am honored to be a part of this important project."

The development phase will be completed by Aug. 31, 2009, with a full project plan, engineering design, business plan and detailed budget/construction timeline. With the financial support of the US/Canadian governments, plant construction could begin as early as Sept. 2009, and it could be operational as early as the summer of 2011. The reference plant will test a range of technologies in the capture of up to 1 million metric tons of CO2 over a four-year period.

The C$270 million partnership will build the plant at a coal-fired power station in Saskatchewan that would have the flexibility to test a range of post-combustion carbon-capture technologies. It will build a North American CO2-storage facility in eastern Montana with injection infrastructure to possibly use CO2 for EOR.

A CO2 pipeline will be built from the reference plant to the storage facility. It will also develop of a North American training facility to meet the needs of a growing CCS industry and regulators, based primarily at the University of Regina and Montana State University.

Canada will spend $150 million to design and build the plant, related CO2 pipeline infrastructure and a North American training facility for CCS technicians. Saskatchewan will provide up to $50 million through Crown Investments Corp. and requested funding of $100 million from the federal government through its Clean Energy Fund. Montana requested $100 million from the US DOE to build a US CO2 pipeline and to develop underground CO2 storage and research in the infrastructure in Montana.

"Our countries rely on coal as a low-cost fuel for the majority of our power generation, but burning coal comes at a significant cost to our environment," Wall said. "This project will help us to meet our needs for power while developing new clean-energy technologies."

They agreed the project will also help address national policy priorities including the development of near-zero, sustainable energy technologies; continental energy security, and economic stimulus to support the North American economy.

A steering committee including Crown Investments Corp. President Ron Styles, SaskPower President Pat Youzwa and University of Regina President Vianne Timmons has been formed to oversee the Canadian component of the project.

-Zeus Syngas Refining Report