Quebec to purchase 800 MW of wind energy for $2 billion CAD by utility project development, competitive RFP and First Nations set-aside

The provincial government in Quebec have announced plans to buy another 800 MW of wind energy in four separate blocks that combine utility project development, competitive requests for proposals (RFP) and a First Nations set-aside. "The government believes in the future of wind energy in Quebec. This block will generate nearly $2 billion investment. It will also maintain hundreds of manufacturing jobs in the Gaspésie-Îles-de-la-Madeleine and Bas-Saint-Laurent, and for several years,” Premier Pauline Marois says.

See http://www.canwea.ca/media/release/release_e.php?newsId=179 for more information.

Also link to a CanWEA news release reacting to the plan, and an announcement from Innergex and Mi'gmaq that their 150 MW project will be part of the purchases.

Germany vs. Saskatchewan

Germany has a total area half the size of the Province of Saskatchewan, has 80 times the population and has a realistic plan to generate up to 80 percent of all electricty in the country from renewable sources by 2050.

Milestone on Canada-India Nuclear Cooperation Agreement announced in a speech today at Cameco

In a speech today at Cameco Corporation headquarters in Saskatoon, Saskatchewan the Honourable Joe Oliver, Canada's Minister of Natural Resources, announced that the Appropriate Arrangement pursuant to the Canada-India Nuclear Cooperation Agreement has now been signed by both sides and will take effect as soon as the Nuclear Cooperation Agreement is brought into force by the two countries.

"This is an important step towards full implementation of the Nuclear Cooperation Agreement between Canada and India which will create new opportunities for the Canadian nuclear industry," said Minister Oliver. "By opening the doors of trade, we will keep Canada at the forefront of the global economy for years to come."

When brought into force, the Agreement will allow Canadian nuclear companies to export controlled nuclear materials, equipment and technology to India, for peaceful uses, in accordance with Canada's nuclear non-proliferation policy and under the safeguards applied by the International Atomic Energy Agency. Canada's nuclear regulator, the Canadian Nuclear Safety Commission will oversee the implementation of the Agreement via the Appropriate Arrangement which was recently signed.

India is currently the fourth-largest energy consumer in the world and is expected to more than triple its electricity supply within the next 25 years. This agreement is one example of the Government of Canada's efforts to reach new markets for Canadian energy and to strengthen our trading partnership with the Asia-Pacific region.

The Government of Canada is actively addressing important issues for the nuclear sector, including: ensuring a strong regulator, updating our legislative framework, responsibly managing legacy wastes, restructuring Atomic Energy of Canada Limited (AECL) and enabling the supply of medical isotopes.

In Canada, the nuclear power generation sector produces about $5 billion in annual revenues and supports 17,000 direct jobs while uranium mining accounts for over $1billion per year in exports and supports 5,000 direct jobs.

The media backgrounder is available at http://www.nrcan.gc.ca/media-room/home/1784

Source: Press Release: Natural Resources Canada

First Nations Power Authority of Saskatchewan and SaskPower launch innovative new program for renewable energy projects

On February 28, 2013 the First Nations Power Authority (FNPA) announced the signing of their new Master Agreement with the crown utility, SaskPower in Saskatchewan. The Master Agreement defines a process for establishing a number of independent power generation opportunities for First Nations in Saskatchewan with SaskPower.

FNPA is a not-for-profit entity with a mandate to facilitate the development of First Nations-led power generation projects with SaskPower created through a Memorandum of Understanding with SaskPower in 2011. Funding for the creation and development of FNPA was provided by Aboriginal Affairs and Northern Development Canada (AANDC) in the amount of $1.39 million. The FNPA has recently launched its official call for members, inviting all First Nations and industry to participate.

Highlights of the Master Agreement include:

1. An initial 10 MW set aside from SaskPower for renewable energy projects;
2. additional future generation opportunities for FNPA members; and
3. a defined process for evaluating unsolicited First Nation power project proposals.

In addition to the Master Agreement, SaskPower and the FNPA are in discussion to explore additional projects and agreements that could result in further economic development opportunities for First Nations over the life of the agreement, such as the Meadow Lake Bioenergy Centre – a $150 million 36 MW biomass facility in Meadow Lake, Saskatchewan which has secured a 25 year PPA from SaskPower.

FNPA and SaskPower have also signed a three-year Funding Agreement under which SaskPower will provide $100,000 per year to FNPA with the option to renew for another two years by mutual agreement.

The presentation will outline the development of this innovative organization and detail the opportunities for developers and suppliers under the terms of the Master Agreement.

SaskPower and Black Lake First Nation reach tentative agreement on 50 MW run-of-river hydro project in Northern Saskatchewan

SaskPower and Black Lake First Nation have reached an agreement in principle for the construction and operation of the planned Elizabeth Falls run-of-river hydroelectric project in Northern Saskatchewan. The proposed Elizabeth Falls hydroelectric project, if approved by regulators, would be the first power production facility primarily built on First Nations land in Saskatchewan.

SaskPower and Black Lake First Nation expect to finalize the agreement in 2013. Under the tentative agreement, SaskPower will provide 70% of the project financing, but exact terms of the agreement have yet to be finalized.

Black Lake First Nation Chief Rick Robillard said this agreement means a lot of things to the band. “We will be the proud owners of a profitable long-term business, and the profits from this business, we believe, will make a big difference to the lives in people in our community and surrounding region.”

“This project will provide contracting opportunities for the band and other communities of the Athabasca region, particularly during the construction phase,” he said.

Black Lake First Nation, the Elizabeth Falls Hydro Development Corp. and SaskPower are in discussions with other training facilities, “to come up with some training programs up in the North prior to the project, in terms of construction, the trades and the construction field, the heavy-equipment operations and all sorts of different types of trades that come with the whole project itself,” Robillard said.

The band owns the Elizabeth Falls Hydro Development partnership, said Ted de Jong, its corporate executive officer. The corporation is the business entity set up to develop the project on the band’s behalf.

“Many of the companies that would be involved in the construction are owned by the First Nations in the region,” de Jong said. He said the hope is that all those companies will take part in the construction phase.

Hydroelectric projects have a consistent cash flow, de Jong said, “which the community could be assured will be there for many generations to come.”

The Black Lake community became interested in developing this project 20 years ago, he said. “They’ve spent two decades bringing it to this point. In the past three years, they have undertaken a very detailed aquatic study and an environmental study related to potential impacts on the lake, on the river on the fish, on the wildlife, on everything.”

The site of the project would be near the Fond du Lac River, and the design for the facility does include a dam on the river as it is a true run-of-river project.

He said they are still discussing the size of the band’s ownership stake in the project with SaskPower. “We recognize, from the Black Lake perspective, that we don’t have the financial ability to be a, you know, 50-50 owner.”

Robillard said the project could be a new “stepping stone” towards First Nations partnerships with governments, and it will help meet the growing demand for hydroelectric power in the North, particularly due to increased uranium mining activity in the Athabasca basin.

SaskPower’s vice-president of business development, Grant Ring, said relations with the Black Lake First Nation are very good and they’ve been working closely on negotiations for the past year.

“We expect it [relations] to be good and continue through, basically from now on,” Ring said.

“What we’re excited about at SaskPower is that this is probably the best site in the province right now to develop a hydro project that doesn’t require a dam, it’s basically run of river, it’s very environmentally friendly and that’s important that the community endorsed the project.”

The Elizabeth Falls project has a planned capacity of 50 MW. Project costs are estimated to be between $300-$350 million CAD. The expected lifetime of the project is 90 to 100 years. The plant is expected to run at 90 percent capacity. Subject to regulatory approval, construction of the project could begin in the latter half of 2014 with completion and operation slated for 2017.

Sources: Newstalk 650 CKOM, HydroWorld.com

Canada appeals WTO ruling on renewable energy feed-in-tariffs in Ontario: Canada argues GATT government procurement exclusion and "no actual market" in Ontario

Canada has appealed a recent World Trade Organization (WTO) dispute panel finding that local content requirements for renewable energy generation in Ontario violate international trade rules. Despite the favourable outcome, the EU and Japan - who had tabled the WTO challenge - responded last week with cross-appeals of their own, aimed at other aspects of the panel report with which they disagree.

The province’s feed-in tariff (FIT) scheme aims to support renewable energy by guaranteeing electricity generators above-market rates on certain renewable sources of energy, such as wind and solar. The global trade arbiter on December 19, 2012 announced that the local content requirement of the scheme - obliging participants to source up to 60 percent of their equipment from Ontario - was a trade barrier that discriminated against foreign companies.

Canada focuses on procurement argument

In its appeal, Canada insists that the Ontario scheme qualifies for an exemption from certain trade rules relating to government procurement under the General Agreement on Tariffs and Trade (GATT).

Under the government procurement exclusion, a country can exempt itself from GATT requirements if the regulation or program involves a government making purchases for its own needs and not for commercial resale.

The panel had found that the program does involve government procurement, but that because the Government of Ontario buys and then sells the electricity in the consumer market, it was “with a view to commercial resale.” This means that the program is not exempt from the other trade rules at issue.

Canada argues that the resale of electricity through the FIT program is not commercial in nature, challenging the panel’s characterisation of the electricity market and its program. According to the panel, however, Ontario purchased electricity that was fed into the grid and sold on the market in competition with private sector retailers of electricity. This effectively means Canada is not purchasing electricity solely for government purposes, even if Ontario is not profiting directly from the resale of the electricity.

One argument that Canada is relying on is that Ontario’s electricity system should not be thought of as an open competitive market where supply and demand freely meet. Instead, a functioning and stable electricity market in Ontario relies on government subsidies and regulations. Thus, Ottawa argues, there is no commercial resale because there is no actual market in the Ontario electricity system.

Canada also insists that electricity purchased through the FIT programme is not resold because it is directly injected by way of renewable energy generators into the grid and pooled with other sources of electricity. It has asked the WTO’s Appellate Body to reconsider this argument, which was rejected in the initial panel report.

Japan, EU cross-appeal

The panel found that the FIT program also violated the Trade Related Investment Measures (TRIMs) Agreement and that Ontario did not qualify for the government procurement exception.  However, the EU’s cross-appeal contends that the government procurement exception should never apply to the TRIMs Agreement, and that regardless of whether the programme qualifies as government procurement, Canada is responsible for bringing the program into alignment with the TRIMs Agreement by eliminating the local content requirement.

While the panel found that the local content requirement violated certain WTO rules, it separately found that the FIT programme was a subsidy under the Subsidies and Countervailing Measures (SCM) Agreement, but that it did not violate the agreement because Japan and the EU failed to establish that the program conferred a benefit to electricity producers.

In order to determine whether a subsidy is illegal, the recipient of the subsidy must be measurably better off than without the subsidy. This measurement requires a benchmark to establish the position of the recipient without the subsidy.

The panel did not accept the heavily subsidised and regulated Ontario electricity market as an appropriate benchmark because it is not an open, competitive market. However, Japan and the EU both argue that without the subsidy, these FIT generators would not exist, and that this should count as a measureable benefit under the SCM Agreement.

The legal status of Ontario’s FIT program will remain unclear until the Appellate Body issues its ruling. The Appellate Body will be able to revise aspects of law - such as legal interpretation - but may not revisit the facts of the case.

Source: International Centre for Trade and Sustainable Development, Bridges Weekly Trade News Digest - Volume 17 - Number 6 - February 20, 2013

Finnish Fennovoima selects Toshiba as sole proponent to build 1600 MW nuclear reactor - tough loss for Areva

Finnish nuclear consortium Fennovoima said on Monday it had selected Toshiba as sole candidate to build a large nuclear reactor, dropping Areva.

Hours later, the Czech competition regulator ruled that utility CEZ had not broken public procurement law by excluding Areva from a contract last year.

That decision leaves Toshiba’s U.S. unit Westinghouse vying with a consortium led by Russia’s Atomstroyexport, and Areva with another key European contract slipping through its fingers.

Earlier this month Teollisuuden Voima – another Finnish utility, for which Areva is building its first European Pressurized Reactor (EPR) – announced further construction delays. The many delays and cost overruns have led to open conflict between Areva and Teollisuuden Voima.

Even where Areva is not the main contractor, the EPR has had bad press.

From a cash flow perspective, these disappointments are not life-threatening for Areva, a diversified group which owns uranium mines (here in Saskatchewan), enriches uranium, builds and maintains nuclear reactors and manages nuclear waste.

Reactor sales and services generated sales of 3.45 billion in 2012, just over a third of its 9.34 billion euro total revenue, and most of the division’s sales come from maintenance to its installed base of more than 100 reactors, nearly a quarter of the world’s total.

Between 2009 and 2011 nuclear newbuild revenue ranged between 741 and 876 million euros per year.

But if Areva wants to maintain its lucrative reactor maintenance business, it needs to sell reactors, and it has not sold a new one since 2007, when it sold two EPRs to China Guangdong Nuclear Power Corporation in Taishan. Areva also hopes for a share of a mega contract in Saudi Arabia, which is considering building the equivalent of 10 EPR reactors. The French government is lobbying intensively on Areva’s behalf.

But the parliamentary faction of France’s green party – part of President Francois Hollande’s socialist-green coalition government – said on Monday it will demand the creation of a parliament committee to investigate the troubles with the EPR.

“The failure of the EPR on export markets is patently obvious: the United States, Great Britain, the Emirates, and now Finland,” said green party MP Denis Baupin.

Source: Reuters

Wind power expert proposes turbines for City of Saskatoon

James Glennie, MBA CFA, a renowned wind power expert says the Saskatoon area is the right place to built a $43 million CAD wind farm he says could be funded by individuals without costing city taxpayers.

"I've known for a number of years that there is enormous wind resource stretching from Texas all the way up to Saskatchewan," said James Glennie, the founder of Saskatoon Community Wind.

"When I arrived here a lot of people were talking about energy and people ask me why can't we get more power from renewables?"

Glennie's idea is to set up a 10 turbine wind farm roughly 15 to 30 kilometers outside the city and sell the electricity the farm generates back to the city of Saskatoon. The multimillion-dollar project would be entirely funded by interested individuals in Saskatoon who not only want to see more renewable resources, but also want to see a good return on their investment, he says.

"The wind industry is a relatively mature business and it's very low risk and it's a good reliable resource. I know that $43 million sounds like a lot, but when you put it in the context of $2,000 each from between 20,000 people, it's not that much," Glennie said.

Glennie moved to Saskatoon last summer. Before moving to Canada, he headed up large-scale wind power non-profits and lobby groups in New Zealand, the United States and United Kingdom.

He also previously worked for the Wind Energy Institute of Canada and says Saskatoon's wind power resources are undeveloped.

Glennie estimates the project could create clean electricity for 16,000 people and the greenhouse gas reductions would be the equivalent of taking 10,000 cars off the road.

Saskatoon has had a troubled history with wind turbines. The wind turbine proposed atop the Saskatoon landfill died after the city's administration said it will cost too much. The landfill wind project also raised the ire of many area residents, who said the turbine would be too loud and would pose health risks.

Glennie said his community initiative would avoid many of those pitfalls. It would be built outside of the city, away from any residential development, and because it would be financed by community members, there would be more accountability when it comes to environmental concerns.
 
Glennie says the idea is still in its infancy and he is in the process of gauging public support, but as a trained financial analyst he believes the economics of the project are sound.

"Wind energy is growing really rapidly around the world today and it's doing that because it works. I am very confident that it can work here," he said.

Glennie said that if they get a good response from the community, they’ll start wind testing and applying for permits.

Sources: Charles Hamilton, The StarPhoenix, February 23, 2013, CTV News

Full article: http://www.thestarphoenix.com/technology/Wind+power+expert+touts+turbines+area/8005950/story.html#ixzz2Lw7pxYYC

Is Ethiopia the new geothermal energy hotspot?

The World Bank recently granted $40 million USD to Ethiopia in order to spur renewable energy projects. For geothermal projects now under way, that money is being used mainly for exploration -- if it shows promise, private investors will be invited to develop geothermal facilities. Success could lead to more grants from the World Bank.

Only about 20 percent of the population of Ethiopia has access to electricity.
 
It’s not that Ethiopia is particularly low on energy -- in fact, the country is an energy exporter thanks to its smart investments in hydroelectric power over the past several years. The real challenge involves expanding infrastructure so that the spoils of Ethiopia’s rapidly growing economy can reach the far-flung regions that were left behind while urban areas -- especially the capital, Addis Ababa -- have thrived.

Ethiopia is situated along the East African Rift, a zone of high tectonic activity where the African Plate is in the slow process of splitting into two. The long East African Rift Valley, which runs from Jordan down to Mozambique, is visible evidence of this split. So are the numerous volcanoes in the region, including the famous Mount Kilimanjaro -- technically a dormant volcano -- in northern Tanzania.

The region is a prime location for massive geothermal energy -- and Ethiopia has a precedent right next door. Kenya has found great success with its own geothermal projects -- it is the biggest geothermal producer on the continent with an installed capacity of more than 212 megawatts, according to Bloomberg.

Ethiopia will follow suit with help from the World Bank and the African Development Bank, which are working together to boost geothermal research and production all across the East African Rift Valley.
 
Renewable energy in particular is an arena where sub-Saharan African countries have a chance to shine. Widespread underdevelopment gives the region a paradoxical advantage, since alternative energy initiatives can start from scratch in many cases, skipping the retrofitting that industrialized states will have to undergo in order to modernize.

Sources: International Business Times, Bloomberg, World Bank

EDF's 350 MW wind project in Canada gets approval: REpower to supply 175 two MW turbines

Canada’s largest wind project to date is moving forward after the Quebec provincial government issued a decree authorizing the construction and operation of EDF EN Canada’s 350 MW Rivière-du-Moulin wind project.

Suzlon Group’s subsidiary REpower Systems SE has signed a contract with EDF EN Canada Inc., a subsidiary of EDF Energies Nouvelles, for the delivery of 175 2 MW wind turbines of the REpower MM82 and MM92 type for a project in Quebec, Canada. With a total rated output of 350 MW the Rivière-du-Moulin wind farm will be the biggest project in the history of REpower.

The project, located in the unorganised territories (UT) of Lac Pikauba and of Lac-Ministuk, north of the City of Quebec, will be developed in two phases: Construction of the first 150 MW starts in 2013, commissioning is set for December 2014. The second phase of 200 MW is scheduled for commissioning in December 2015.

The contract is part of the framework agreement of up to 954 MW signed between EDF EN and REpower in 2009. In less than one year, REpower delivered, installed and commissioned a record of 190 REpower MM82 and MM92 turbines aggregating 380 MW in a special cold climate version for three EDF EN Canada wind farms: Massif du Sud, Phase 1 of Lac Alfred and Saint-Robert-Bellarmin. Two of them – Massif du Sud and Phase 1 of Lac Alfred – just recently went into commercial operation.

Sources: CANWea, EDF and REpower Press Releases

Global hydropower growth slows: Canada continues to add significant new generation

The Worldwatch Institute released a report today authored by Evan Musolino examining global consumption and installed capacity of hydropower and geothermal energy sources.

Highlights of the Report follow below:

• In 2011, global installed capacity of hydropower reached 970 gigawatts (GW), a 1.6 percent increase from the previous year, while geothermal cumulative capacity reached 11.2 GW, slowing to below 1 percent for the first time since 2002.
• Hydroelectricity accounted for almost 6 percent of primary energy consumption among members of the Organisation for Economic Co-operation and Development (OECD).
• On a regional basis, South America and Central America are most dependent on hydroelectricity relative to total energy use. 
• Although hydropower plays the least important role in the Middle East, the region experienced the greatest growth in hydroelectricity consumption in 2011, at almost 22 percent. North America was next, with an increase slightly under 14 percent. In contrast, usage fell by almost 9 percent in Europe and Eurasia and by 0.6 percent in the Asia Pacific region.
• Although some 150 countries produce hydropower, half of the global capacity was concentrated in just five nations at the end of 2011. China remains the leader, with 212 GW installed, followed by Brazil (82.2 GW), the United States (79 GW), Canada (76.4 GW), and Russia (46 GW).
• Hydropower continues to be one of the most cost-effective renewable energy generation sources. Typical costs are in the range of 2-13 U.S. cents per kilowatt-hour for existing grid-connected hydropower plants and 5-10 cents per kilowatt-hour for new plants. Micro-hydropower installations (0.1 kilowatt to 1 megawatt), which are typically used in rural communities not connected to the national grid, generate at 5-40 cents per kilowatt-hour.
• Global consumption of hydropower continued to increase in 2011, reaching 3,498 terawatt-hours.
• A total of 25 GW of new hydropower capacity was added in 2011, less than in previous years, with China, Vietnam, Brazil, India, and Canada responsible for 75 percent of the added capacity.

What are the top 10 wind power capacity countries in the world?

In a report released today by the Global Wind Energy Council, there were 44,700 megawatts of wind power capacity added around the world in 2012, putting the total at 282,500 MW. That is almost a tenfold increase over the past decade.

The top 10 wind countries at the end of 2012:

1. China 75,600 MW
2. U.S. 60,000 MW
3. Germany 31,300 MW
4. Spain 22,800 MW
5. India 18,400 MW
6. U.K. 8,400 MW
7. Italy 8,100 MW
8. France 7,200 MW
9. Canada 6,200 MW
10. Portugal 4,500 MW

Out of 243 countries, Canada ranks 228 in terms of population density - one of the lowest population densities in the developed world. Many of the 8 countries exceeding Canada in wind power capacity are near the top of the list in terms of population density.

EDF commissions 300 MW of wind projects in Quebec

EDF EN Canada Inc., a subsidiary of EDF Energies Nouvelles, announced the commercial operation of the Massif du Sud Wind Project (150 MW) and the first phase of the Lac Alfred Wind Project (150 MW) both located in Quebec.

Massif du Sud and Lac Alfred represent two of the seven wind energy projects in total awarded to the company in 2008 and 2010 through Hydro-Quebec Distribution calls for tenders. By the end of 2015, EDF EN Canada will have developed and built a total of 1,003.2 MW in the province.

The Lac Alfred Phase 1 project is located in the municipalities of Saint-Cléophas, Sainte-Irène, Saint-Zénon-du-Lac-Humqui and the unorganized territory (UT) of Lac Alfred in the MRC de La Matapédia and in the municipality of La Rédemption and UT Lac-à-la-Croix in the MRC de La Mitis. Massif du Sud is located in the municipalities of Saint-Luc-de-Bellechasse and Saint-Magloire in the MRC des Etchemins and in the municipalities of Notre-Dame-Auxiliatrice-de-Buckland and Saint-Philémon in the MRC de Bellechasse. Both projects are comprised of 75 wind turbines each supplied by REpower and made with regionally manufactured blades, towers and converters.

With a combined investment (Massif du Sud and Lac Alfred Phase 1) of close to $700 million, the projects together created more than 600 jobs during the construction phase, and will provide 20-30 permanent operations and maintenance jobs. Enbridge Inc. participates in both Massif du Sud and Lac Alfred (phase 1 and phase 2) as a co-owner through a 50 percent investment.

EDF EN Canada Inc.'s operation and maintenance affiliate, EDF Renewable Services Canada Inc., will provide long-term operations and maintenance (O&M) services. Hydro-Quebec will buy the power under 20-year power purchase agreements (PPA).
 
“We are happy about the ongoing excellent cooperation with EDF EN Canada and the team effort displayed in the projects we have realized together so far. Our common projects resulted in a record of Canadian installations in 2012 and the wind turbines of the MM82 and MM92 type in a special cold climate version were delivered, installed and commissioned within less than one year. As the business in Quebec and other provinces grows, so does our dedicated and highly skilled team of local employees,” said Helmut Herold, Managing Director of REpower’s Canadian subsidiary, REpower Systems Inc.

EDF EN Canada commissioned its first wind project, Saint-Robert-Bellarmin (80 MW), in October 2012 and is currently constructing Lac Alfred Phase 2 (150 MW) with an expected operational date of December 2013. In total, the Company has placed into service 380 MW in the last four months in Quebec which created employment opportunities for nearly 750 people in the development and construction phase.

Source: EDF Press Release

5 places that were colder than Saskatchewan yesterday – electricity demand in province peaks at highest ever

Yesterday, temperatures across Saskatchewan were in the -30s (Celsius for my friends South of the border). Here are five notable temperatures, at around the same time yesterday, noted elsewhere:

1. Alert, Nunavut, Canada: -41
2. The North Pole: -39
3. Dzalinda, Russia (in Siberia): -51
4. Vostak Station, Antarctica: -36
5. Mars: -55

The cold weather has led to record energy consumption in Saskatchewan. The province's electric utility, SaskPower, said usage peaked Wednesday night, around the supper hour. That's when 3,379 MW of energy were running into homes and businesses. SaskPower fortunately has the capacity to generate 4,100 MW at peak.

Not only the cold weather, but the rapidly growing population and large industrial projects in the province are seeing significant increases in electricity demand. SaskPower is committed to meeting the demands of a growing (and cold…) province by investing in considerable new generation in the future.

Vestas inks Tower Supply Agreement with undisclosed party to supply towers for North American wind power projects

This week Vestas announced signature of a Tower Supply Agreement to supply towers for a number of non-Vestas wind power projects over the next two years. The name of the developer or manufacturer which signed the Tower Supply Agreement with Vestas was not released.

The Tower Supply Agreement will see Vestas ramp up at its tower factory in Pueblo, Colorado, USA. Vestas soon will begin manufacturing the first phase of the Tower Supply Agreement that could use up to 25 percent of the production capacity. The agreement will create more than 100 jobs by the end of the first quarter of 2013. The Vestas facility can produce almost 1,500 towers a year, Vestas Chief Operating Officer Jean-Marc Lechene said this week.

Vestas is branching into tower manufacturing for external customers to boost revenue after overcapacity among turbine producers wiped out profit at the Danish company. Vestas and its competitors have cut jobs and withdrawn from weaker markets to reduce costs as wind-industry growth slows.

The Tower Supply Agreement, announced yesterday, marks the first time Aarhus, Denmark-based Vestas has sold the support structures to a competitor. The deal is with a single client, an American company with multiple projects, Lechene said, declining to identify the client or disclose financial terms. Vestas has also secured smaller deals for metal-cast components with non-wind customers, he said.

“Vestas is continuously evaluating its manufacturing footprint and opportunities to utilise the current production capacity better. Producing components for third parties is part of this strategy, and although we have had other smaller orders, this new agreement is the first major step in realising this plan,” Lechene said.

“Our tower factory employees are very excited about this new order,” said Tony Knopp, Vice President of Vestas Towers America, Inc., in Pueblo. “The extension of the Production Tax Credit (PTC) at the beginning of the year also was an important factor in securing this contract, and we are now in the process of evaluating our ramp-up plan.”

Sources: Bloomberg, Reuters, Vestas Press Release

University of Saskatchewan professor wins national award for solar energy research

Ronald Steer a professor at the University of Saskatchewan in Saskatoon has been awarded the annual Canadian Society for Chemistry’s John C. Polanyi Award for his research which is leading to new insights in the field of solar energy.

Steer and his team are attempting to make organic photovoltaics, also known as dye-sensitized solar cells (DSCs), a more efficient source of electricity.

Typically organic solar cells are around 10 per cent efficient and Steer says they are making great strides towards increases the amount of sunlight that is absorbed and converted into usable power.

“We have the proof of principle and soon we’ll be at the stage of having working devices,” said Steer.

“If we can achieve even the slightest increase, even one or two per cent efficiency of these cells, it could be beneficial to everyone.”

The team is also working on incorporating tougher materials such as carbon nanotubes to create a more durable, longer-lasting cell.

Not only was Steer awarded an Earned Doctor of Science at the University of Saskatchewan he has also been in their Department of Chemistry in Saskatoon since 1969.

Congratulations Professor Steer! Keep up the good work.

Source: Global News

How many wind turbines does the Nordic region require in the next 27 years to meet stated GHG reduction goals?

The International Energy Agency (IEA) has proposed that the Nordic countries add more than 13,000 new wind turbines in order to achieve ambitious emissions-reduction schemes in the next three decades.

The proposal, part of a report presented on Tuesday, focused on wind power as a key to making the Nordics - Iceland, Finland and the Scandinavian countries - climate neutral by 2050.

The authors suggest that such an investment, along with upgrades to the grid, would cost 0.7 percent of the region's annual GDP - about $460 billion USD in total over the next 27 years, according to a calculation by Sveriges Radio (SR).

"In the global 2°C Scenario, energy-related CO2 emissions in the Nordic region must be reduced by 70 percent by 2050 compared to 1990," the report authors summarized.

The report suggested the use of fossil fuels be halved and account for only 20 percent of total electricity generation in the future.

In order to do so, relying on extensive wind generation "needs to grow particularly quickly and alone accounts for 25 percent of electricity generation in 2050."

Such a move, however, would place demands on refurbishing parts of the distribution network.

"This will increase the need for flexible generation capacity, grid interconnections, demand response and storage," the report authors wrote.

They highlighted that the region's access to hydropower and ambitious domestic targets were in the Nordic countries' favour in achieving climate neutrality.

Yet, Swedish industry association Svensk Energi noted in a response that wind turbines are still not completely accepted in Sweden.

Chair Kjell Jansson told SR there needed to be more focus on the technology from the politicians' side.

"I think with today's attitude it would be difficult to put this in place," he said.

"One has to accept new things, for example turbines in places where people now resist them, if we are to meet our climate target."

Sources: IEA, The Local.se

Ikea to double its spending on renewable energy to $4 billion USD: part of Ikea's plan to get all the energy used at its stores and by subcontractors from renewable sources by 2020

Ikea Group, the world's biggest furniture retailer, will double its investment in renewable energy to $4 billion USD by 2020 as part of a drive to reduce costs as cash-strapped consumers become more price sensitive.

The additional spending on projects such as wind farms and solar parks will be needed to keep expenses down as the company maintains its pace of expansion, Chief Executive Mikael Ohlsson said in an interview in Malmo, Sweden.

"I foresee we'll continue to increase our investments in renewable energy," said Ohlsson, who plans to step down this year after 3 1/2 years at the helm. "Looking at how quickly we're expanding and our value chain, we will most likely have to double the investments once more after 2015."

Companies such as sportswear maker Puma and drinks producer PepsiCo Inc. are expanding efforts to cut their use of scarce resources as they jostle for customers. Prices for wind turbines sank 23% in the three years that ended in June, while solar panels have tumbled by more than half in two years, making projects cost-effective, according to Bloomberg New Energy Finance.

Ikea plans to get 100% of the energy consumed at its stores and by subcontractors from renewable sources by 2020. The Swedish company owns 250,000 solar panels, mainly in the U.S., and invested in 126 wind turbines in northern Europe to cover 34% of its energy consumption.

Ohlsson said the retailer will have opportunities for "strong growth" in Europe for "many years to come" because many customers still do not have an Ikea store near them.

Sales in 2012 rose 9.5% to 27.6 billion EUR ($36.7 billion USD), the company said in a release, while net income increased 8% to 3.2 billion EUR.
   
In October, Ikea said it planned to more than double spending on wind farms and solar parks to as much as $2 billion USD to have the company cover more than 70% of its energy consumption by renewable sources in 2015 and protect it from volatile fossil-fuel prices.

The retailer is expanding its product range for customers to live more sustainable lives themselves, focusing on waste handling and cutting energy and water use.

"For now, we're mainly focusing on the big parts of resource use at home," Ohlsson said, adding that Ikea is testing some solar solutions for customers in Britain.

Source: Bloomberg

City of Saskatoon approves Power Purchase Agreement with SaskPower for $7.7 million CAD landfill gas project

City Council in Saskatoon has approved the final step towards a $7.7 million CAD project to collect methane gas from Saskatoon's landfill and convert that into electricity. The city of Saskatoon has been working since 2008 to develop a landfill gas collection system. The city of Saskatoon is expected to recover the cost of the landfill gas project after 9 years. "Because the numbers do make sense it's a good thing for us," said Troy Davies, Ward 4 city councillor.
 
Kevin Hudson, manager of metering and sustainable electricity with Saskatoon Light & Power, says the project is one way to reduce harmful greenhouse gases. "With the gas that we're capturing, it's equivalent to reducing our emissions by about 45 thousand tons annually," Hudson explained. "That's like removing about nine thousand vehicles from our roadways." According to Hudson, in many jurisdictions in North America, landfills are required to manage landfill gas so it is not released into the atmosphere.

Saskatoon city council has approved the sale of the electricity generated by the landfill gas project to SaskPower pursuant to a 20 year Power Purchase Agreement. In 20 years, according to the city, the overall project will have made a return to Saskatoon of $8.4 million CAD after taking into account the cost of building the system.

The city of Saskatoon estimates it will sell about $1 million CAD worth of electricity in its first full year of production, which is expected in 2014. Construction on the project is approximately 50% complete.

Additional information about this exciting project and the Green Energy Park in Saskatoon is available here: http://www.saskatoon.ca/DEPARTMENTS/Utility%20Services/Saskatoon%20Light%20and%20Power/powergenerationinitiatives/Pages/LandfillGas.aspx

SaskPower and Black Lake First Nation submit Federal EA determination request for Elizabeth Falls Hydroelectric Project in Northern Saskatchewan

As part of the amended Canadian Environmental Assessment Act, 2012 (CEAA 2012) put in place to support the government's responsible resource development initiative, the Canadian Environmental Assessment Agency must determine whether a federal environmental assessment is required for the proposed Elizabeth Falls Hydroelectric Project located in northern Saskatchewan. To assist it in making its decision, the Agency is seeking comments from the public on the project and its potential effects on the environment.

Black Lake First Nation and Saskatchewan Power Corporation are proposing the construction and operation of a 42 to 50 megawatt water diversion type electrical generating station at Elizabeth Falls. The proposed project would be located adjacent to the Fond du Lac River between Black Lake and Middle Lake, on Black Lake First Nation Reserve lands in northern Saskatchewan. The proposed project would involve the construction and operation of a water intake tunnel, a powerhouse, a switching station, a tail race, a construction camp, a bridge, access roads, and a transmission line.

A link to the summary of the Elizabeth Falls Hydroelectric Project is below:

http://www.ceaa.gc.ca/050/documents/p80031/84322E.pdf

The Agency will post a decision on its website stating whether a federal environmental assessment is required for the Elizabeth Falls Hydroelectric Project. If it is determined that a federal environmental assessment is required, the public will have three more opportunities to comment on this project, consistent with the transparency and public engagement elements of CEAA 2012.

CanBio Community Heat & Power and Bioeconomy mission to Finland for Wood Energy Solutions 2013 - February 11-15, 2013

Qualifying Canadian participants will receive travel grants of about $1,200 CAD for companies (1 grant per company), and up to 50% of eligible expenses for non-profit organizations (2 grants per organization) through DFAIT's GOA (Global Opportunities for Associations) program.

Click here to view the draft program for the mission

CanBio will bring a delegation to the Wood Energy Solutions Conference and Tour February 11-15, 2013 to learn the latest in Finnish community biomass energy and supply chain enhancements in a conference setting, and then see installations firsthand.  We will find out what’s new in the European bioeconomy, meet with potential European partners in Canadian bioeconomy development, and. The mission will include:

• A 2-day conference in Koli National Park, where delegates will network with key European bioeconomy companies and stakeholders. The conference program will focus on key issues, including community energy, biorefining, biomass sustainability and trade, and more;
• 2.5 days of tours, including visits to district energy installations of various size, a micro-scale CHP installation (30 kWe), Fortum’s pyrolysis oil plant (integrated with large-scale CHP), a Ponsse manufacturing facility, several supply chain demonstrations, a pellet and raw biomass research centre, and more (including more bioeconomy-related visits). There is also the possibility of visiting a Gasek installation;
• A ½ day course on the dos and don'ts of district energy projects by Dr. Arto Nuorkivi, leading expert in CHP, district heating, and energy efficiency.

Registration includes a conference dinner featuring Karelian cuisine as well as a post-conference Finnish winter experience and the obligatory sauna!

Why integrate renewable energy generation with your mining operation?

A synergy is created when renewable energy systems are integrated into existing and planned mining operations. This is of particular interest to remote or otherwise off-grid operations that are faced with expensive logistical challenges and environmental hurdles associated with transporting fuel over large distances to be used for on-site thermal generation or constructing expensive transmission infrastructure to bring on-grid power to their operations. Wasted energy is also an unnecessary cost.  Having a comprehensive energy strategy is key to cost effective mining operations.

Mining operators need an uninterrupted, cost-effective means of supplying energy to power their operations. Developers and operators may need to rely on higher cost coal-fired, oil and diesel generation can offset their carbon footprint and the risk of price escalation and security of hydrocarbon fuel supplies by integrating renewable energy schemes into their mine plans. Some of the plentiful and lasting potential benefits of renewable energy include the following:

• Creation of a legacy resource, which will carry the mine through operations and may be shared with or co-managed with neighboring communities, fostering enduring relationships and good will (this is particularly beneficial for projects located in developing nations where clean power generation is rare or too costly for communities to develop on their own)
• Opportunity for mining operations to distinguish themselves as sustainable ventures that are favorable to shareholders, community stakeholders, government regulators and environmental NGOs
• Reduced dependence on volatile fuel prices and insecure supplies
• Reduced carbon footprints
• Opportunity to offset greenhouse gas emissions and to take part in the emerging carbon economy

Source: (in part) Knight Piésold Consulting

Greengate Power plans to start construction of Canada’s largest wind farm

Greengate Power, the Calgary-based developer expects to break ground in the spring on the 300MW Blackspring Ridge 1 project in Alberta, Greengate president and CEO Dan Balaban told reNews.

“We’re in the process of finalizing the engineering and the financing of the project,” said Balaban. “We expect to be under construction later this year and be fully operational in the first part of 2014.”

Alberta regulators last week approved a switch in turbines to the Vestas V100 1.8MW machine from the V90 model. The Danish manufacturer is expected to begin delivery of 166 turbines in the third quarter, said Balaban. Mortenson was named general contractor.

Blackspring Ridge 1, located about 165 kilometers southeast of Calgary, will tie into an existing 240kV transmission line via a six- to eight-mile wire that runs almost entirely through the project site. The Alberta Utilities Commission is reviewing an interconnection application by transmission facility operator AltaLink.

“We expect approval of that permit imminently,” said Balaban.

Blackspring Ridge is Greengate’s second wind farm. Capital Power in 2011 bought the 150MW Halkirk project, which achieved commercial operation in December.

Greengate won 20-year deals with Pacific Gas & Electric of California for renewable energy credits from the Blackspring Ridge and Halkirk wind projects.

Source: reNews

VTT of Finland commercializing process for cogeneration of bio-oil and heat

A technique that enables the cost-effective cogeneration of heating energy and bio-oil in the same power plant has been developed by VTT Technical Research Centre of Finland, along with the Finnish energy company Fortum, Finnish engineering company Metso and Finnish forest products producer UPM. VTT’s technique is based on combining pyrolysis and fluidized bed technology.

VTT feels the new technique will contribute to an increase in bio-oil production volumes in the next few decades. VTT received an innovation award for the new technology from the European Association for Research and Technology Organisations EARTO.
 
The new technique patented by VTT enables a considerable cut in the production cost of bio-oil.

Fast pyrolysis involves heating biomass such as forest industry waste to a high temperature to form gas. When the gas is cooled, it condenses into liquid known as bio-oil. Combining the pyrolysis process with traditional fluidised bed boilers used in power plants brings a range of efficiency gains, VTT explains. Producing bio-oil with the new technique is cheaper than in a separate pyrolysis process.

Bio-oil plants that are integrated into power plants are extremely energy-efficient, because the energy contained in the by-products of the pyrolysis process can be recovered in fluidized bed boilers. This is a significant improvement, because the by-products can contain as much as 40% of the original biomass’s energy. In turn, lost heat from the power plant can be used in the bio-oil production process.

The technique is due to enter commercial production towards the end of 2013 when the energy company Fortum opens its new integrated bio-oil and heating plant in the city of Joensuu in Finland. The plant is designed to produce 50,000 tonnes of bio-oil per year.

According to VTT, there are currently around 200 power plants in Europe and North America (including many in Canada) that could be converted to include a bio-oil plant.

Source: VTT, Pulp and Paper Canada

A new twist on anti-wind litigation: the Canadian Charter of Rights and Freedoms

Interesting article by Diane Saxe on anti-wind litigation at http://envirolaw.com/twist-antiwind-litigation-charter/.

Because of the social, environmental, and political importance of reducing carbon emissions and switching to renewable sources of energy, the Environmental Protection Act  in the Canadian province of Ontario requires wind opponents to show that a renewable energy project will cause serious harm to human health, or serious and irreversible harm to plant life, animal life or the natural environment. Every case to date in Ontario has failed to meet this threshold and one can sense desperation by anti-wind groups.

Accordingly, the latest anti-wind tactic is to claim that the threshold itself is unconstitutional, i.e. that anti-wind proponents have a right, under the Canadian Charter of Rights and Freedoms, to stop all wind turbines within 2 km of their home, without having to prove the probability of harm. Diane Saxe, on her blog has provided a link to a Statement of Claim Filed November 14. 2012 between Drennan and K2 Wind - http://envirolaw.com/wp-content/uploads/Statement-of-Claim-Nov-14.-2012.pdf.

In the claim, Shawn and Trisha Drennan have requested $4 million CAD in damages plus an injunction to prevent K2 Wind Ontario Inc. from obtaining a renewable energy approval from the Ontario Ministry of the Environment for its proposed wind farm in the Township of Ashfield-Colborne-Wawanosh, Ontario. 90 local landowners have leased their land for the project. Mr. and Mrs. Drennan claim that constructing a wind farm within 2 km of their home will create a nuisance, make them ill, and reduce their property values.

An interlocutory injunction is scheduled to be heard on February 6, 2013 in Goderich, Ontario. Meanwhile, the province of Ontario is seeking summary judgment to dismiss the action.

Source: Diane Saxe, envirolaw.com

AMG aims to recycle wastewater from oil drilling using new process

Apex Management Group LLC (AMG) a San Antonio-based oil-field services management company is rolling out an oil-field technology aimed at recycling contaminated wastewater generated during production.

This process could remove toxic chemicals from the wastewater so it could be reused in the drilling process, eliminating the need for using fresh water for each well, said David Akin, CEO and president of . However, the company hasn’t yet filed permission with the state agency that governs the oil and gas industry.

The new process is used in northwestern Oklahoma in the Mississippi Lime rock formation, Akin said. This area has seen a boom in oil drilling, particularly by SandRidge Energy, Chesapeake Energy and Devon Energy. Akin declined to state which large independent company was contracting his services, due to a non-disclosure agreement.

In that area, exploration and production companies must use millions of gallons of fresh water during part of the drilling process known as hydraulic fracturing, or fracking. A company typically pumps about 4 million to 6 million gallons of water per well, as well as thousands of pounds of sand and tens of thousands of gallons of chemicals deep into underground rock formations. Fracking, combined with horizontal drilling, is credited with the current boom, and taps oil and gas resources that were previously regarded as unobtainable.

The Mississippi Lime formation also has lots of highly salty water with the oil and gas. Producers must dispose of millions of gallons of saltwater mixed with flow-back water that flows back up to the surface from a frack job. There is so much contaminated water produced in the area, SandRidge is drilling one disposal well for every eight petroleum wells and Devon is drilling one disposal well for every 10 petroleum wells.

With so much contaminated water, companies are looking for a way to turn that waste product into a resource. Akin said his process is more efficient than existing technology using centrifuges or filters to clean flow-back water.

Akin said the process uses methane gas that would otherwise be flared into the atmosphere to power natural gas turbines. The turbines are similar to helicopter engines that are frequently used in hospitals and in universities. The turbines superheat the contaminated water, similar to a distilling process. Though the end product isn’t drinkable, Akin said, it is clean enough to be used in fracking jobs.

He declined to state exactly how much his company spent to develop the process, but said that it was in the millions of dollars. Apex spent about three years developing and refining the recycling process, and has been operating a beta test of sorts with one company for about a year and a half.

In recent years, the Oklahoma Corporation Commission has modified and created new rules for companies developing processes for recycling water used in drilling operations. Last year, the agency had at least three cases looking at the process of commercial soil farming.

The process of soil farming combines waste mud laced with petroleum chemicals used in drilling with fertilizer and crushed gypsum rock and spreads it on farmland. The drilling mud in question must be tested to ensure that it doesn’t contain high levels of salts, heavy metals or petroleum products. Akin said residual material recovered from the recycling process is superheated to remove chemicals and could be used in soil farming operations.

Matt Skinner, spokesman from the OCC, said Apex’s technology would likely be covered under existing rules for recycling flow-back water. If the residual material removed from the water process meets acceptable levels, it could be used in commercial soil farming operations. The agency hasn’t yet received any applications from the company.

Sources: Dolan Media Newswires, Lexis Nexis, WaterWorld.com

Gamesa wins order for 54 MW wind farm from TuuliWatti in Finland

Bloomberg has just reported a few moments ago that Gamesa Corp. Tecnologica SA, Spain’s largest wind turbine maker, won a 54 MW order from Finland’s TuuliWatti Oy, expanding its presence in a market it entered last year.

The order for 12 of Gamesa’s G128 4.5-megawatt machines forms part of a 117 MW framework agreement signed in October, the Zamudio-based company said today in an e-mailed statement. The machines are specially designed to operate in low temperatures, it said.

“Finland is considered one of the most promising growth markets in the European wind energy business in coming years,” Gamesa said in the statement.

Finland is targeting 2,500 megawatts of installed wind capacity in 2020, up from about 200 megawatts now, according to Gamesa. Gamesa on October 25 said it’s concentrating on new markets, especially in Latin America, as it adjusts to a global market this year that it forecasts will include a 12 percent drop in installations.

All except one of the turbines announced in today’s deal will be installed this year, with the last in 2014, Gamesa said. The order follows an 18-megawatt deal with the same client on October 11 that isn’t included in the 117 MW framework agreement.

The deal includes a 10-year operation and maintenance contract, with an option to extend it by five years, according to the statement. TuuliWatti is a venture between Finland’s St1 Oy and S-Group.

Source: Bloomberg

Finland's largest wind farm to be built in Pori

The town of Pori on the Western coast of Finland will soon be home to Finland’s largest wind farm.

Finnish developer, Tulliwatti will construct a 54 MW wind power facility just to the north of the town of Pori. Commercial operation is expected by the end of summer 2015. The project is a joint venture between Finnish utilities St1 and S-Voima who are investing a combined total of 75 million EUR to build the project.

A total of twelve 4.5 MW wind turbines will be built on the site. The wind turbine supplier has not yet been announced.

The Pori region of western Finland is of prime significance for Tuuliwatti. Tuuliwatti began wind power production in the area with a 3 MW facility back in 2010. Tuuliwatti is also constructing wind power plants in other parts of the region.

Source: Yle

Electricity sector planning and supply scenarios for Saskatchewan, Canada

Lisa White, P. Eng., M.Sc. and Ph.D. Candidate at the School of Environment and Sustainability at the University of Saskatchewan in Saskatoon recently published "Strategic environmental assessment in the electricity sector: An application to electricity supply planning, Saskatchewan, Canada" in the Journal of Impact Assessment and Project Appraisal which can be accessed with the following link:

http://www.tandfonline.com/eprint/d6KJPgHdGj5aDeYwwGUD/full

In the article a strategic environmental assessment (SEA) framework for electricity sector planning is developed and applied to evaluate electricity supply scenarios for Saskatchewan, Canada. The overall goal of the SEA application was to identify a preferred future electricity production path, demonstrate the application of a quantitative SEA process that operationalizes sustainability principles through the use of assessment criteria, and examine the methodological implications resulting from the application of a structured SEA framework.

Results of the application identified a renewables-focused electricity supply preference, but with several implications for electricity sector investment and sustainability, including increased infrastructure requirements and increased cost of electricity.

Results also demonstrate a practical approach to the operationalization of sustainability through the application of assessment criteria that are linked to higher level principles. The use of structure in the SEA process provided for replicability, transparency and the ability to quantify issues of uncertainty in Plan, program and policy (PPP) decision-making, while at the same time maintaining flexibility to tailor the SEA framework to the electricity sector context.

Quanta Services/Valard Construction awarded SaskPower contract to build 300 km Island Falls to Key Lake transmission line in Northern Saskatchewan

Quanta Services, Inc. announced by way of a Press Release yesterday that SaskPower has selected Valard Construction, a Quanta Services company, to install transmission infrastructure for the Island Falls to Key Lake Transmission Line Project. Under the terms of the contract, Valard will build approximately 300 kilometers of 230-kilovolt transmission line in northern Saskatchewan. The project scope includes foundation construction, installation of approximately 900 transmission towers, wire stringing and related project management.

"Growing economic development in northern Saskatchewan has created an increased need for power. SaskPower is investing in its electricity system to ensure it meets the power needs for our region, today and in the future," said Robert Watson, president and chief executive officer of SaskPower.

To minimize environmental impact, the route of the new transmission line will parallel an existing SaskPower transmission line. Valard has initiated engineering activities and the project is expected to be complete in the spring of 2015. Once in service, the new transmission line should increase reliability and provide infrastructure to meet the growing demand for power in northern Saskatchewan.

"Valard opened a corporate office in Saskatoon, Saskatchewan last year as part of our ongoing commitment to Saskatchewan," said Adam Budzinski, president of Valard. "We look forward to constructing the Island Falls to Key Lake project and participating in the exciting growth of the province."

Source: Quanta Services, Inc. and SaskPower Press Release

SaskPower and Cenovus sign 10-year CO2 Supply Agreement

SaskPower has signed a 10 year agreement with Cenovus Energy for the purchase of carbon dioxide (CO2) from SaskPower’s $1.24 billion CAD carbon capture and storage (CCS) facility under construction at Boundary Dam Power Station, near Estevan, Saskatchewan.

The Regina Leader Post reports that under the terms of the agreement, Cenovus will purchase the full volume of the CO2 captured at SaskPower’s facility - approximately one million tonnes per year - and use it for the enhanced oil recovery (EOR) project operated by Cenovus near Weyburn, Saskatchewan. SaskPower’s facility is considered the world’s first and largest commercial-scale, coal-fired integrated CCS project.

SaskPower president and CEO Robert Watson said the CCS project at Boundary Dam’s Unit 3 was predicated on being able to sell the captured CO2 to oil companies for EOR projects, which would made the economics of clean coal comparable to that of combined-cycle natural gas power plants.
 
The value of the CO2 Supply Agreement is not being disclosed.

The Regina Leader Post further report that SaskPower anticipates more CO2 sales in future as additional capacity comes on stream from Boundary Dam and SaskPower’s $60 million CAD carbon capture test facility at its Shand Power Station. SaskPower will decide in 2016 or 2017 whether to convert Units 4 and 5 at Boundary Dam to clean coal facilities, which can reduce CO2 emissions by 90 percent.

Cenovus and its partners have been using CO2 from the Dakota Gasification Corp. (DGC) plant in Beulah, North Dakota, USA for 10 years in their Weyburn EOR field.

Cenovus expects to be ready to accept the CO2 when SaskPower’s integrated carbon capture and storage facility goes into commercial operation in April 1, 2014. Cenovus will likely start building the pipeline required for the CO2 immediately. Jessica Wilkinson, a spokesperson for Cenovus, said the company will start talking to landowners and stakeholders in the area prior to construction of the 70 km pipeline from Estevan to Weyburn. “The agreement includes the construction of an additional line that would go from SaskPower’s Boundary Dam facility to our Weyburn (EOR) facility. Cenovus would build and operate that pipeline."

Cenovus currently receives 5,500 tonnes of CO2 per day from DGC, which it injects into the reservoir, some of which is recycled. “To date, we’ve injected just over 18 million tonnes of CO2 in the reservoir,” Wilkinson said. “In 2011, we injected 4.2 million tonnes of CO2." The SaskPower contract would supply about one quarter of that amount annually.

Cenovus currently produces 27,000 barrels of oil per day from the Weyburn EOR project, of which 19,000 barrels a day is incremental production from CO2 injection and 8,000 barrels a day is from conventional production.

Source: Regina Leader Post

World Trade Organization sides with the EU and Japan and rules against Ontario’s feed-in-tariff local content requirements

The EU and Japan filed complaints against the province of Ontario with the World Trade Organization (WTO), taking the position that the province’s feed-in-tariff (FIT) program breached international trade law by unfairly pressuring generators of renewable energy to purchase equipment and services from companies located in the province of Ontario. WTO judges rejected the EU and Japanese argument that the FIT program provisions constitute an illegal subsidy.

WTO press officer Joseph Bosch confirmed yesterday that the decision was sent to the concerned parties last Friday but that it must remain confidential until all the WTO members receive it “and that could be within the next month."

Ontario Premier Dalton McGuinty declined to comment on the WTO ruling, but he defended a policy that he says is central to creating jobs and boosting manufacturing in a province hit hard by the recent economic downturn. “We have secured some $27 billion worth of investment,” Mr. McGuinty told reporters on Tuesday. “We have the Koreans in here, the Americans in here, the Chinese in here, I think the French and the Germans as well, and that’s not stopping them.”

EU exports to Canada in wind power and photovoltaic power generation equipment are “significant,” according to the Brussels-based European Commission, ranging from 300 million EUR to 600 million EUR between 2007 and 2009.

Aaron Atcheson, an energy lawyer at Miller Thompson in Toronto, said companies in Ontario’s renewable energy sector will not likely be too concerned until the lengthy appeal process is completed. In the meantime he said, there is more risk to the sector from a possible change in government in the province. In the last Ontario election campaign, the opposition Conservative party said it would dismantle the Green Energy Act. There is even a risk to the sector from the upcoming Liberal leadership campaign, Mr. Atcheson said, because some of the candidates will have a different approach to the green energy file from Mr. McGuinty, the outgoing premier. He also said there are so many problems and delays with Ontario’s current green energy program that those practical issues are more pressing for companies than the WTO ruling.

This matter stokes a broader debate over plans by countries including Canada, the United States and China to reserve public works as well as energy and environmental projects worth billions of dollars for local companies. The United States, China, India, and Europe are immersed in a number of increasingly contentious trade disputes over subsidies for wind energy and photovoltaic energy that are likewise alleged to skew the renewable energy playing field. China announced on November 5, 2012 that it was initiating WTO dispute proceedings to challenge what it claims are discriminatory measures in renewable energy programs adopted by certain EU member states such as Italy and Greece. Germany’s law on renewable energy also limits FIT payments for energy originating from installations located in Germany

Source: Globe and Mail, Bloomberg, International Business Times

Saudi Arabia reveals plans to be power country entirely by renewable energy

Saudi Arabia, the world's biggest oil producer, has plans to become 100% powered by renewable and low-carbon forms of energy, according to an influential member of the royal family.

Saudi Arabia's energy use is almost entirely from fossil fuels at present, with about two-thirds coming from oil and the remainder from gas. The state produces close to 12m barrels of oil a day, representing more than 12% of world crude production, and has about one-fifth of the world's oil reserves, according to the US government's Energy Information Administration. Energy use per person within the kingdom is also high by world standards, because energy prices are kept so low.

As Prince Turki noted, however, the kingdom has vast potential for using solar power. "The cost of solar energy is now 15% of what it was 20 years ago," he noted. Saudi Arabia has also signed memoranda of understanding – though no final deal as yet – with Argentina over nuclear energy.
But despite his commitment to advancing renewable energy in the Middle East, Prince Turki – who served as director of Saudi Arabia's intelligence services for more than 20 years and has also been an ambassador to the UK and the US – was also clear that the rest of the world was likely to continue to rely on fossil fuels for many years to come. "No country can ban itself from any one form of energy," he said.

One of the other potentially important technologies for Saudi Arabia is carbon capture and storage, as depleted oil fields could be used as storage for compressed carbon dioxide, but it has so far made little progress. The prince said the development of carbon capture and storage (CCS) technology should be seen as an international effort rather than the responsibility of single countries.

Nebjsa Nakicenovic, deputy chief of the International Institute for Applied Systems Analysis, said CCS was likely to be a vital technology around the world. Though he acknowledged there could be problems, as the technology is still unproven, he warned: "Do not discount CCS."

On renewables, Nakicenovic said the world should aim to generate 30% of energy from sustainable renewable sources by 2030. That would represent more than a doubling of current renewable energy usage, because although on paper about 15% of energy now comes from renewable sources, this includes a large amount of biomass – mostly wood, dung and other waste – burned in developing countries. Much of this is unsustainable, and requires a significant use of resources in foraging for firewood. "So [the target] is very ambitious, but doable," he said.

Source: The Guardian

SaskPower CEO says solar not a feasible option yet, but wind could be an option

The CEO of SaskPower says despite comments by Robert F. Kennedy Jr., the technology just isn't there yet to make solar power a part of their fleet.

Kennedy told a Federation of Saskatchewan Indian Nations conference that Saskatchewan should be focusing more on wind and solar power and less on coal power.

Robert Watson says SaskPower is investigating solar technology, but says there are technical problems. He says Saskatchewan is too far north on the curvature of the earth for solar technology to be effective. He also says in the winter time, it's too dark for too long for solar energy to be useful.

Watson says wind power will become a major player in their fleet down the road. "By the time we finish adding our 177 megawatt wind farm down near Swift Current, we will have about 8 1/2 per cent of our spinning reserve wind, which is almost higher than anybody in Canada."

SaskPower does plan on reducing coal from their fleet. Watson says over the next 10 to 15 years, coal will eventually account for 35 per cent of SaskPower's output. Kennedy suggested Saskatchewan relies too much on coal-burning power plants and needs to move toward cleaner energy. "The issue is the illusion that you have cheap coal here," he said. "Coal is heavily subsidized and it's imposing far greater costs on the people of Saskatchewan. If you took the whole community costs, it would be much cheaper to power this province on wind and solar."

Kennedy, nephew of former U.S. president John F. Kennedy, is currently serving as a senior attorney for the Natural Resources Defense Council in America.

Source: Canadian Press

First Nations wind project moves forward

The Assembly of Nova Scotia Mi'kmaq Chiefs, via Kwilmu'kw Maw-klusuaqn Negotiations Office, received approval today, September 18, 2012, for a wind project under the Community Feed-in Tariff (COMFIT) Program. Benefits will be shared within the local community and Mi'kmaq communities throughout Nova Scotia.

"This project approval means that the KMK and Wind4All can generate renewable electricity that will stay right here in the Amherst area,” Said Brian Skabar, MLA for Cumberland North. “Clean, green electricity is already successfully powering homes and businesses in the Amherst area, and this project will increase those benefits for the community."

The 6.0 MW project will be developed by the Kwilmu'kw Maw-klusuaqn (KMK) Mi'kmaq in partnership with Wind4all Communities.

"This COMFIT approval from the Department of Energy not only speaks to the quality of our Amherst Project but, more importantly, it speaks to the value and significance of our partnership with the KMK and Mi'kmaq," said Austen Hughes, general manager, Wind4All Communities.

"Through the Amherst project, the Mi'kmaq will become long-term and knowledgeable partners in the renewable energy sector," said Chief Gerard Julian, co-chair of the Assembly of Nova Scotia Mi'kmaq Chiefs. "As project owners, we will be expanding our ability to continue to preserve Nova Scotian resources and protect the environment for generations to come."

The Province has supported the Mi'kmaq renewal energy project development by providing $200,000 to create a Mi'kmaq Renewable Energy Strategy and $2 million for a Mi'kmaq Major Resource and Energy Fund. Nova Scotia Mi'kmaq and the province will also hold a renewable energy seminar November 21, 2012. For more information on the seminar contact the Office of Aboriginal Affairs at 424-4174.

The 2010 Renewable Electricity Plan introduced the COMFIT concept to help provide a secure supply of clean energy at stable prices, build community support for renewable energy projects and create jobs.

"COMFIT offers Nova Scotia an opportunity to become a leader in renewable energy," said Energy Minister Charlie Parker. "In addition, renewable energy projects such as this will help the province move away from dirty fossil fuels and towards our legislated goal of 40 per cent renewable energy by 2020."

Eligible groups receive an established price per kilowatt hour for projects producing electricity from certain renewable resources. Projects can include wind, biomass, in-stream tidal and run-of-the-river hydroelectric developments. Eligible groups include municipalities, First Nations, co-operatives, universities and not-for-profit groups.

More than 25 community-based groups have submitted over 100 locally based renewable energy development proposals for this unique, made-in-Nova Scotia initiative. The province expects 100 megawatts to be produced through COMFIT.

Source: Government of Nova Scotia Press Release

Miller Thomson LLP, Penningtons Solicitors LLP and Polsinelli Shughart PC work together on a series of international deals for BRITA GmbH, one of the world’s leading companies in the drinking water optimisation sector

The Multilaw firms were all acting for BRITA in the purchase of an equal stake in Vivreau’s North American sister companies, Vivreau USA, LP and Vivreau USA GP, LLC in the USA and Vivreau Canada, Inc in Canada.

The BRITA Group, which achieved total sales of 320.7 million EUR in the 2011 fiscal year, is based in Taunusstein near Wiesbaden in Germany. It is represented by 15 national and international subsidiaries, and distribution and industrial partners in over 60 countries on all five continents, with production facilities in Germany, Great Britain, Switzerland and India. Since inventing the water filter jug over 40 years ago, it has developed into one of the lead players in the global water filter market.

Soros Fund Invests in Mozambique Ethanol Project

Billionaire investor and philanthropist George Soros's nonprofit group has invested $6 million USD in an ethanol project in Mozambique that will offer families in the Southern African country an alternative to charcoal.

The Soros Economic Development Fund released information today that its investment will give it a 19% stake in the $20 million USD project, started by food-and-energy company CleanStar Mozambique. Executives say the investment is in line with the fund's aim of backing businesses that provide a return on capital and spur broader economic development.

CleanStar launched its Mozambique project a year ago to introduce a new cooking model for households in the country. Like much of Africa, Mozambican households tend to cook with charcoal, which produces smoke that when inhaled carries health risks. The company, based out of New York and Mozambican capital Maputo, has designed a low-cost stove that runs on cleaner ethanol, produced from cassava grown by farmers that the company has signed up. Since its launch, CleanStar has sold 3,000 stoves and plans to sell thousands more from November.

The project has also received a $3 million USD investment from the Denmark-backed Industrialization Fund for Developing Countries, while Danish industrial enzymes company Novozymes A/S has provided $1 million USD and a number of loans. Bank of America Merrill Lynch is also assisting with the selling of carbon credits.

With the new funding, the company plans to ramp up its production of both cassava and stoves and have its model in 20% of Maputo's households by 2015, said Novozymes executive vice president Thomas Nagy.

The investors want to roll the project out in another 45 cities across Africa, in what they say is a unique business model. The goal is to sell 100,000 stoves in the next two to three years in Mozambique, according to the Soros fund's Africa director, Cedric de Beer. "If that can happen, then the opportunity to sell in large cities across the continent is dramatic," Mr. de Beer said.

The fund also has investments in Liberia, Sierra Leone, Kenya, Zimbabwe and South Africa. Profits derived from its investments are redeployed to new projects. Stewart Paperin, president of the fund, said most of its investments in Africa are still in the early stages.

Source: The Wall Street Journal

Chinese-owned corporation files law suit against US government for barring wind farm transaction (Ralls Corp. v. Committee on Foreign Investment in the U.S., 1:12-cv-01513, U.S. District Court, District of Columbia)

A US company owned by executives of China-based Sany Group Co. accused a US treasury-led national security panel in Washington in a lawsuit of barring it from windfarm projects without explanation or proper legal process.

Ralls Corp., a holding company that controls wind farm assets, alleged the multi-agency Committee on Foreign Investment in the US, known as CFIUS, exceeded its authority when it ordered Ralls Corp. to cease operations and keep out of windfarm development sites it purchased, according to a lawsuit filed September 12,2 012 in federal court in Washington.

CFIUS is an interagency committee headed by Treasury Secretary Timothy Geithner that reviews the national security implications of transactions that could lead to a non-U.S. citizen controlling a U.S. business. The heads of the departments of Justice, Homeland Security, Commerce, Defense, State, and Energy, among others, sit on the committee. The panel’s recommendations can be enforced only by the president under the law.

“Ralls has been cooperating and will continue to cooperate with CFIUS, although Ralls felt strongly it had been treated unfairly and selectively,” Tim Tingkang Xia, a lawyer for Ralls, said in an e-mail. Natalie Wyeth Earnest, a spokeswoman with the U.S. Treasury Department, declined to comment on the suit, saying information filed with CFIUS by law may not be publicly disclosed.

Security Risks

CFIUS issued an order on July 25, 2012 citing “national security risks” raised by the sale of the windfarm assets to Ralls Corp., according to the filing.

An amended order on August 2, 2012 added more prohibitions, including the sale or transfer of the assets to any third party for the “use or installation at the properties of any items made or otherwise produced by the Sany Group.”

Closely held Sany Group is the owner of China’s biggest machinery maker. Dawei Duan, Sany’s chief financial officer and Jialiang Wu, a vice president of the group and general manager of Sany Electric Co., a group unit, are the owners of Ralls Corp., according to the complaint.

Ralls Corp. is seeking to develop wind energy projects in the US, where Sany Electric’s wind turbine generators can be used, according to the filing.

Ralls Corp. is seeking a temporary restraining order and preliminary injunction that would permit the company to resume construction of the wind farms by September 20, 2012. If the wind farms are not in service by December 31, 2012 then the company won't be able to obtain $25 million USD in federal investment tax incentives, according to a court filing yesterday.

Ralls Corp. said that shortly after it acquired land for a wind- farm in Oregon earlier this year, the U.S. Navy voiced concerns about the location of one of the projects. The Navy said it wanted to “reduce air-space conflicts” between the wind turbines and “low-level military aircraft training,” and asked the company to move the planned wind farm. Ralls complied, according to the complaint.

Ralls said it submitted a voluntary notice to CFIUS disclosing the acquisition on June 28, 2012. The next month, the company was told the deal posed national security risks and it must shut operations, according to the lawsuit. CFIUS offered no “evidence or explanation for its determination” that there were national security concerns and didn’t say why the transaction was even subject to review by the committee, Ralls Corp. alleged.

Development Rights

“Draconian obligations” were imposed in connection with Ralls’s purchase of “four small Oregon companies whose assets consisted solely of wind-farm development rights,” according to the complaint.

The company accused CFIUS of violating the Administrative Procedure Act by making an arbitrary and capricious decision and asked the court to find the panel lacked authority to block the deal. Companies, which typically file information with CFIUS voluntarily to address any early issues, submitted 313 notices for review with the committee from 2008 to 2010, according to the panel’s most recent annual report to Congress.

Withdrawn Applications

In 42 cases, companies withdrew applications during or after CFIUS review, according to the report. None went to the president.

Acquisitions by other Chinese companies have been blocked by CFIUS. Chinese telephone-equipment maker Huawei Technologies Co. and Bain Capital Partners LLC dropped a bid to buy computer- equipment maker 3Com Corp. in 2008 after U.S. officials opposed the transaction. Last year, Huawei unwound the purchase of patents from a computer-services company, 3Leaf Systems Inc., after U.S. objections.

Executives from Huawei and another telephone-equipment maker, ZTE Corp. (000063), were questioned by lawmakers in Washington yesterday about their efforts to expand in the U.S.

The case is Ralls Corp. v. Committee on Foreign Investment in the U.S., 1:12-cv-01513, U.S. District Court, District of Columbia (Washington).

Source: Bloomberg

Saskatchewan coal-fired power plants fuel pollution

Interesting article by Peter Prebble in The Leader-Post today:

When federal Environment Minister Peter Kent came to Saskatchewan earlier this month to announce Canada's new greenhouse gas emission regulations for coal-fired power plants, the results were disappointing for anyone concerned about the well-being of our environment.

The new regulations are a significant weakening of what was originally presented to the public in draft form 13 months ago. Over the next 18 years, they will result in greenhouse gas pollution at Canada's coal-fired generating stations being cut by less than half the amount originally proposed by Ottawa.

That announcement might have been satisfactory for SaskPower and the operators of Alberta's coal-fired power plants, but it is not in the larger public interest. Greenhouse gas pollutants from coal-fired power plants are the single most important reason why climate change on our planet is accelerating.

At a time when we have record sea-ice melt in the Arctic, devastating drought in more than 60 per cent of U.S. crop lands and record extreme weather events around the globe, it should be clear to policy makers that the heat-trapping greenhouse gas pollutants from burning coal need to be strictly regulated.

Unfortunately, it appears Ottawa's new regulations are heavily focused on accommodating the desire of governments in Saskatchewan and Alberta to keep burning coal. Meanwhile, in the rest of Canada, coal-fired power plants are steadily being shut down.

Two interesting examples are Ontario and Nova Scotia. In Ontario, the government has closed six of its 15 coal-fired power units over the past two years to curb pollution. It has done this by increasing electricity generation from natural gas, tripling wind power since 2008, building several solar power plants, and introducing conservation measures aimed at cutting electricity use during peak periods of the day.

Nova Scotia historically has been even more coal dependent than Saskatchewan. However, it has now cut its use of coal from 80 per cent of electricity production in 2006 to 57 per cent today. More large reductions are planned. To accomplish this, Nova Scotia is requiring that 40 per cent of its electricity come from renewable energy sources by 2020, up from 17 per cent in 2011. Its government has put in place generous financial incentives to encourage small-scale, community-owned renewable energy production. It has also established Efficiency Nova Scotia to promote electricity conservation.

Ontario and Nova Scotia's work means they are already doing much better than the new federal regulations on coal-fired power plants will require.

In contrast, for our population size, Saskatchewan is dedicating fewer resources to electricity efficiency and renewable energy development. Saskatchewan's greenhouse gas pollution from electricity production is unchanged from 2006. Coal accounts for 58 per cent of the electricity we consume, while wind accounts for only three per cent.

To date, the Saskatchewan plan is to keep using coal and to rely heavily on carbon capture and storage (CCS) as the way to reduce greenhouse gas emissions. That approach might work, but there is uncertainty, as CCS technology at a commercial scale is in its infancy. Moreover, at $1.2 billion for the first unit, CCS installation is very expensive, thus slowing down the pace of pollution reduction.

Saskatchewan will no doubt be able to meet Ottawa's weak greenhouse gas emission regulations, but our province would be wise to aim higher. A more proven course of action would be to invest heavily in renewable energy and electricity conservation, as a complement to our CCS initiative.

With a greenhouse gas pollution footprint more than three times the Canadian average (per million people), Saskatchewan can no longer delay the task of reducing our dependence on coal.
 
Peter Prebble is director of environmental policy for the Saskatchewan Environmental Society. He has authored and co-authored publications on climate change and renewable energy potential in Saskatchewan.

Source: The Regina Leader-Post, september 17, 2012 edition

Jilin New Energy of China to Invest 130 million EUR in Estonia

Jilin New Energy Investment Co. Ltd. plans to invest 130 million euros ($168 million USD) in renewable energy projects in Estonia, the biggest Chinese investment in the Baltic country to date.

Investments will be made mainly in the production of wooden pellets and wind energy equipment, Tallinn-based EAS said in an e-mailed statement today, citing an agreement signed between the parties on September 7, 2012. Financing for the projects will come from China Development Bank, it added.

Jilin New Energy will also set up its European headquarters in Estonia, citing its favorable geographic location, strong renewable energy industry and political stability, EAS said.

Source: Bloomberg

3000 MW of new power generation to come online in Ontario in the next 18 months - 4800 MW of wind and solar PV by February 2014

Ontario's power grid operator issued a statement today that generators will add more than 3000 MW of capacity to the system over the next 18 months, including about 1500 MW of nuclear and 1500 MW of renewable generation.

The Independent Electricity System Operator (IESO) said in a statement that total wind and solar PV generation connected to the grid will reach about 4800 MW by February 2014.

Bruce Power is restoring two 750 MW reactors at the giant 6300 MW Bruce nuclear power station. At least one (and possibly both) of those units was on track to enter service in 2012.

Bruce Power is a partnership owned by Alberta-based energy company TransCanada Corp, Saskatchewan-based uranium miner Cameco Corp, Ontario Municipal Employees Retirement System (OMERS), the Power Workers' Union and the Society of Energy Professionals.

The IESO said the new generation resources and transmission projects have been brought into service to ensure Ontario can meet future supply needs and to support the government's planned removal of the province's remaining 3300 MW of coal-fired capacity by the end of 2014.

The IESO said once the refurbished Bruce nuclear units and other new generation and transmission projects enter service, Ontario will be in a good position to continue eliminating coal-fired generation from the system.

Sources: IESO, Reuters

Valard secures first greenfield wind farm construction project of Gesner Wind Farm for Saturn Power

Valard has secured its first greenfield wind farm project, having been awarded the complete construction of the Gesner Wind Farm by project owner Saturn Power. Located near Muirkirk, Ontario, construction began in June 2012. Approximately 15 employees are currently on site building foundations for each of the five 100-metre turbines comprising this project.

“We are thrilled to be constructing the Gesner Wind Farm in Ontario,” says Vicki Marks, Valard Vice President of Ontario and Eastern Canada operations. “Valard believes in the viability and longevity of the wind sector, and we’re looking to build our capacity and capabilities in it.”

Within the next month, Valard will begin installing the turbines in parallel with constructing the 34.5 kV collector system, accepting delivery of the e-house, constructing the substation and completing the interconnection to the provincial distribution grid.

The Gesner Wind Farm is expected to be in service by December 2012. When complete, it will produce 10 megawatts of power. Each turbine will have a two-megawatt output capable of providing power for up to 3,500 homes.

Valard offers a full menu of services for wind projects including design, equipment specification, procurement, foundations and civil works, installations, substations, transmission and distribution interconnects, commissioning and operations and maintenance. Clients can choose a single service or a full engineering, procurement and construction (EPC) solution. The company also offers competitive financing to qualifying projects.

Valard is a construction company based in Edmonton, Alberta.

Source: Valard Press Release

Canada releases final regulations to curtail greenhouse gas emissions from the coal-fired electricity sector - Saskatchewan seeks separate arrangement with Federal government

"If we want to make headway at reducing emissions we have to take a hard look at coal-fired plants and that's exactly what we have been doing, what we are doing, and what we will do," the Canadian Environment Minister Peter Kent told a press conference in Saskatoon, Saskatchewan recently.

The federal government is proposing new coal plants only be allowed if they can emit less than 375 tonnes of carbon dioxide per gigawatt hour of electricity generated. In the final version, that standard is 420 tonnes. The draft regulations proposed that old coal-fired units would have to meet the targets at 45 years old, which has been moved to 50.
 
Guy Bruce, vice-president of planning, environment and regulatory affairs for SaskPower, the crown utility in the province of Saskatchewan said the announced regulations are a "good balance." The move to 50 years allows SaskPower time to determine if carbon capture is feasible, Bruce said.
 
The Saskatchewan government is seeking a separate deal with Ottawa to handle coal in its own way, while meeting the same end goals set by the federal government. The deal is expected to account for the Boundary Dam plant, where Unit 3 is undergoing a $1.24 billion CAD conversion for carbon capture and storage by 2014. It's expected to be the first commercial scale power plant with a fully integrated carbon capture system, which should help it meet tougher emission rules.

The federal government is taking a sector-by-sector approach to reducing greenhouse gases. Instead of imposing a tax on carbon emissions, or developing a cap-and-trade market that would reward clean energy over high emissions, Ottawa is gradually imposing rules and restrictions on emissions in each polluting sector of the economy. So far, it has rolled out limits for the auto sector and renewable fuels. Coal has been the trickiest sector so far.

But the remaining sectors, especially oil and gas, are expected to be even more thorny, with Alberta's oilpatch already resisting federal attempts to regulate. Draft regulations pertaining to oil and gas are expected next year, possibly in the spring.

Canada has committed to reducing its emissions by 607 megatonnes by 2020, and Kent frequently touts his sector-by-sector approach as the main way for Canada to meet that goal.

Sources: The Star Phoenix, Canadian Press

Shell to proceed with carbon capture and storage (CCS) project in Alberta oilsands: likely to rely on Saskatchewan experience with CCS at the SaskPower Boundary Dam Project

Shell announced this morning that it will go ahead with the world's first carbon capture and storage (CCS) project for an oil sands operation in Canada. The Quest project will be built on behalf of the Athabasca Oil Sands Project joint venture owners (Shell, Chevron and Marathon Oil) and with support from the Governments of Canada and Alberta.

The Athabasca Oil Sands project produces bitumen, which is piped to Shell's Scotford Upgrader near Edmonton, Alberta. Quest will capture and store deep underground more than one million tonnes a year of CO2 produced in bitumen processing. Quest will reduce direct emissions from the Scotford Upgrader by up to 35%.

Both the Canadian federal and Albertan provincial governments have identified CCS as an important technology in their strategies to reduce CO2 emissions. The Alberta government will invest $745 million CAD in Quest from a $2 billion CAD fund to support CCS, while the Government of Canada will invest $120 million CAD through its Clean Energy Fund.

"Today's announcement reaffirms Alberta's position as a global leader in carbon capture and storage," said Energy Minister Ken Hughes. "Technologies like CCS will play an instrumental role in helping to lower greenhouse gas intensity from the oil sands and demonstrate to the world Alberta's commitment to responsible energy development."

There was some question as to Alberta's commitment to CCS technology, when other CCS projects in Alberta were delayed earlier this year.

Construction is currently underway on the SaskPower Boundary Dam Integrated Carbon Capture and Storage Demonstration Project in Saskatchewan. The Boundary Dam Project will transform Unit 3 at Boundary Dam Power Station into a reliable, long-term producer of 100 MW of clean base-load electricity, while enhancing oil production in Saskatchewan and reducing greenhouse gas emissions by capturing 1 million tonnes of CO2 per year. SaskPower has been developing CCS technology and projects for several decades. The Government of Saskatchewan approved the Boundary Dam project in April, 2011.

SNC Lavalin is undertaking engineering, procurement and construction at the Boundary Dam project and Hitachi is providing the turbine. Cansolv, a wholly owned subsidiary of Shell, will supply the carbon capture process. It is expected that Shell will rely on their experience in Saskatchewan to build the Quest project in Alberta.

The $1.24 billion CAD SaskPower Boundary Dam project in Saskatchewan is expected to reach commercial operation in late 2013. The $865 million CAD Quest project in Alberta is expected to reach commercial operation in late 2015.  

Sources: Shell Canada Press Release, SaskPower, Government of Saskatchewan, Government of Alberta

RFP Opportunity - Engineering, Procurement and Construction Management (EPCM) Services for Queen Elizabeth Power Station - Saskatoon, Saskatchewan, Canada

The RFP is intended to obtain the resources of an established, multi-discipline engineering, project management, construction management, and commissioning management firm with a proven record of success in carrying out the functions of a Balance of Plant (BOP) Engineering, Procurement and Construction Management (EPCM) contract (the "Engineer").

Associated with this project, SaskPower is responsible for the procurement and delivery to the Site of the following equipment:

• Three Hitachi H25 Gas Turbines (GTG) complete with Generators, and Static Excitation;
• Two 138-13.8 KV step-up transformers (GSUT);
• Six Once through Steam Generators (OTSG);
• One 95MW to 105MW induction condensing steam turbine (STG) complete with generator, static exciter system, control system, gland seal system, oil conditioning system and instrumentation.

Collectively, the above equipment is named “SaskPower Equipment”.

The Engineer will be required to review and provide comments to drawings, manuals and project related documents received from the above SaskPower Equipment suppliers to coordinate interface design. The Engineer will be responsible for the design of all interfaces required to integrate the Balance of Plant (BOP) Equipment with the SaskPower Equipment. The Engineer will be responsible for the performance of all designs and equipment selected to meet the interface conditions provided by the SaskPower Equipment suppliers.

The Engineer will be responsible for the sizing, specification preparation, tendering, bid evaluation, recommendation for purchase, quality control, delivery and warranty of the BOP Equipment (“Engineer Supplied Equipment”). This service will include the provision of OEM technical advisors (TA) to interface with SaskPower’s Works Contractors during installation and the Engineer’s commissioning team during commissioning.

The RFP closes September 28, 2012.