The $1.2 billion clean coal project at Boundary Dam is progressing on schedule and within budget, according to Mike Monea, president of SaskPower's Clean Coal Initiatives team.
"Currently there are 140 people on the construction site and the project is 13 per cent completed," Monea told The Mercury during a Nov. 10 interview. "That's on the clean coal side of the project. The rebuild on the generator at Unit 3 comes later on in 2013," he added.
So far the delay in the onslaught of winter has allowed construction crews, directed by project leaders SNC Lavalin, to keep pouring concrete which means that most of the time lost at the outset of the project this spring, has been recuperated.
Monea said 80 per cent of the contracts associated with the clean coal initiative have been awarded and all have fallen within budget. That means the target of a start-up in early 2014 still holds.
"I haven't heard of any issues regarding labour at this stage. Even with the oil industry waking up in Alberta, which could provide competition for labour, it seems Lavalin has been getting the people they need when they need them. They work within high standards and that includes safety," said Monea. "The only question right now, is when will it start to get really cold? That will affect construction pace I expect."
Monea has been working diligently toward signing up potential off-takers of the carbon dioxide that will be sequestered as part of the clean coal process. It can, and will, be used as an agent for enhanced oil recovery in the nearby oil patch.
The trick in this case is that Monea would like to see the CO2 being sent in just one direction, rather than have the off-takers splayed out in three directions which would require more delivery infrastructure.
As for environmental concerns, Monea said the announcements regarding Canada's requirements are now a matter of public record and the public and private companies have had opportunities to respond, so everyone knows now what the next step will be.
"BD3 is going ahead and it will be well ahead of any federal government requirements," Monea assured.
The project is also being designed to work within SaskPower's current and future rate structure for consumers so it won't come in at a cost that would exceed the production of electrical power using any other traditional process.
Having recently attended environmental congresses around the globe, the most recent in Durban, Â鶹´«Ã½AV Africa, Monea said that Canada has arrived with a message that they can include coal in their future ... clean coal at a competitive price. He said that by the time BD3 arrives at the 67 per cent completion level, SaskPower will have a good take on cost estimates for all concerned parties.
So far the project and its proponents have been able to make a great business case, he said, especially when one figures in the potential sale of carbon dioxide.
"Estevan is the envy of the world right now. You're right on top of all that needs to come together. You have the power generation, the coal, the oil patch right there."
Monea said that the 139 megawatt power generating Unit No. 3 will be a fine test since it will be the world's first large commercial scale pilot project and coal has proven, over the decades, to be a fuel of choice due to its stable pricing regime and the fact that there is a 300 year supply immediately available doesn't hurt.
"It's pretty exciting. We've seen other world projects drop off the map, but good old Saskatchewan moves ahead. SaskPower, you know builds stuff on time and within budget and they have the vision to do this ... this first real capture of CO2. Ever since the announcement was made on April 26, SaskPower was ready. May 1 the construction started after two engineers provided their final study on the site."
"SaskPower will answer the question once and for all ... can you still use coal to power the future?"
Monea said he believed ongoing research money, coming from other sources, will drive the costs down while advancing new research and technology for the future. The bonus is the utilization of the gas for oil recovery.
"We've been recognized by the carbon sequestration leadership forum that is being driven by the United States and China at the ministerial levels. Their last meeting was in Beijing in October and there were a lot of technical groups there, knowledgeable groups. They deal with technical issues, policy issues and full membership issues and all were impressed by our province's move.
Of course once we got the political level involved it was a bit different. Everyone at that table kept saying over and over 'gee, too bad nobody is doing this,' so I had to keep pushing my button and using the translators to keep telling them that someone was doing it, that we were doing it and it was going on in Saskatchewan. I think the world's politicians are slowly picking up on it now. Finally the word is getting out. I really thought that the recognition factor had been covered, but obviously it hadn't been," Monea said.
"When you're at a forum with politicians and technical people representing one-fifth of the world's population, it's important to get the message out."
Monea sees the day is coming when international workshops and tours that will be relevant for decades to come will be conducted in Saskatchewan. He's off to Norway soon for another conference and has an unprecedented half-day set aside for his presentation on clean coal and BD3. Next spring Monea is scheduled for another conference hosted by Australia.
"We have a limited time to tell the story. Norway are world leaders in carbon capture and sequestration. Australia was a leader, but they're losing ground. China wants to partner up as do Japan and the United States. They want to work on these projects."
Of course membership in this still elite club could cost them something more than a $5 membership fee, Monea said with a laugh.
"Pay up and participate, see the model and apply your own factors from your own jurisdictions, put the money into research. They're willing. Saudi Arabia and the folks in Abu Dhabi are interested in the CO2 end of it, the potential is impressive," said Monea in conclusion.
