Carbon Capture and Storage Initiatives

E X E C U T I V E S T R A T E G I C P L A N N I N G S E S S I O N

SASKPOWER CCS

@SaskPowerCCS

GHGT-12 M I K E M O N E A , P R E S I D E N T , C C S I N I T I A T I VE S

SASKPOWER’S C C S S T O R Y .

Why We Did It The Business Case

Construction (Learning Starts Here) Government Approval

SASKPOWER’S ENERGY MIX.

• 490,000 customers

• 151,000KM of

transmission line

• 3,513 MW generating capacity

COAL 50%

GAS 25%

HYDRO 20%

W I N D 3 %

O T H E R 2 %

D IVERS IF I ED POWER GENERAT ION.

5

• In 2013, invested $2B in our electrical system including a record $1.3B internally and $700M through a partnership with Northland Power.

• Forecasting to invest $1B annually for the foreseeable future.

• 3 key elements to SaskPower’s ongoing capital spending program:

1. Forecasted system growth; 2. Sustainment investments; and 3. Financial Impact.

CAPITAL SPENDING DRIVERS

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CCS T IMEL INE .

Pre 2000 Canadian Clean Power Coalition Studies

2001 Coal-fired Generation Option Study

Today Commercial Operation

2006 Shand 1 Study

2007 “Clean Coal Project”

2007 Shand 2

2008 Retrofit Options

2009 Pre-Commitment Engineering Unit 3

2011 Detailed Engineering

2010 Go Decision: Refurbishment of Power Plant

7 © SASKATCHEWAN POWER CORPORATION. ALL RIGHTS RESERVED.

COMPARING COSTS .

BD3 Carbon Capture Cost of Electricity

Baseload Natural Gas Cost of Electricity

Capital Investment

Fuel Expense

O & M Figures from 2009 - 2010

8 © SASKATCHEWAN POWER CORPORATION. ALL RIGHTS RESERVED.

C O M P A R I N G R E G U L A T I O N S .

• USA – 1,100 lb/MWh gross *Approx 0.712 tonnes /MWh net factoring in 30% parasitic load for CCS equipment • Canada – 0.420 tonnes /

MWh

• USA – 1,000 lb/MWh gross *Approx 0.504 tonnes / MWh net • Canada – 0.420 tonnes /

MWh

Carbon Capture and Storage Initiatives

E X E C U T I V E S T R A T E G I C P L A N N I N G S E S S I O N

BOUNDARY DAM CCS PROJECT

BOUNDARY DAM UNIT 3 Emission Change Pre-CCS Post-CCS Reduction

CO2 1094 120 90% SO2 11 0 100% NO 1.5 1.1 27% PM10 .2 .02 90% PM2.5 .1 .03 70%

• Regina Saskatchewan- 210,000 people • One million tonnes of captured CO2 from coal:

• Removes CO2 emissions from all Regina cars • Also captures all the CO2 from home heating • Plus..keeps 50% of the lights on in Regina

• Or 250,000 cars off the road each year….

12 © SASKATCHEWAN POWER CORPORATION. ALL RIGHTS RESERVED. 12 © SASKATCHEWAN POWER CORPORATION. ALL RIGHTS RESERVED.

GENERAT ION COSTS .

$US /MWh

Data Source: 2010 Electrical Power Research Institute, Program on Technology Innovation: Integrated Generation Technology Options

$30

$50

$70

$90

$110

$130

$150

Coal Coal with CCS

Natural Gas

Nuclear Biomass Wind

Figures from 2009 - 2010

BOUNDARY DAM CCS PROJECT

CCS FACIL I TY .

BOUNDARY DAM CCS PROJECT

CO

2 AN

D SO

2 A

BSORBERS

BOUNDARY DAM CCS PROJECT

CO

2 STRIPPER

BOUNDARY DAM CCS PROJECT

SO2 A

BSO

RB

ER

AC

ID PLA

NT

CO 2 P IPEL INE .

BOUNDARY DAM CCS PROJECT

UNI T 3 TURB INE .

CCUS.

FULL SPECTRUM

SECURING OFF-TAKERS.

• Sale of flyash for concrete production 100%.

• Sale of sulphuric acid, used primarily for industrial purposes including fertilizer.

• Sale of CO2 to oil company for EOR.

E N H A N C E D O I L R E C O V E R Y .

0

5

10

15

20

25

30

35

1955 1961 1967 1973 1979 1985 1991 1997 2003

40

45

50

55

2009 2015

• Around 30,000 bl/day: a 35-year high

• 20,000 bl/day are due to the CO2 flood

Primary & Waterflood Vertical Infills

Pre CO2 Hz Infills

Current production at 35 year high CO2 EOR

Waterflood Improvement

bl/day

STORAGE. • Pure CO2 storage with SaskPower’s Carbon

Storage 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 regulated by the Ministry of Environment.

• Will be measured, monitored, verified and audited. • Saskatchewan has experience with storage due to the Weyburn Midale project. Approximately 20 million tonnes of CO2 stored and monitored.

MAKING THE NEW REALITY.

Complex Commissioning Unprecedented Simulator Training

Vendor Contract Negotiations Detailed SOP

BOUNDARY DAM CCS PROJECT

WHERE WE ARE GOING

WHERE ARE WE GOING.

Boundary Dam 4+5

Amine Chemistry Lab

CCTF

University Collaboration

BOUNDARY DAM CCS PROJECT

TOURS

Carbon Capture and Storage Initiatives

E X E C U T I V E S T R A T E G I C P L A N N I N G S E S S I O N

SASKPOWER CCS

@SaskPowerCCS

GHGT-12 M I K E M O N E A , P R E S I D E N T , C C S I N I T I A T I VE S