Government Partners With Industry

OTTAWA -- - New technologies that promise to reduce harmful emissions from coal are getting a boost.

The Government of Canada is partnering with electric power generators and producers to investigate the feasibility of building a plant that will eliminate virtually all airborne pollutants and carbon dioxide from the coal-burning process.

The Government of Canada, through Natural Resources Canada, is investing $1.66 million in the initial stages of the project. The project is led by the Canadian Clean Power Coalition (CCPC), a coalition of companies that account for more than 90 per cent of Canada's capacity for coal-fired electricity generation. The CCPC and other partners, including the governments of Alberta and Saskatchewan, are contributing to the approximately $5-million cost of this phase, scheduled for completion by the end of the year.

"Cutting-edge technology to burn coal cleanly is an important step in decreasing greenhouse gas emissions, as outlined in our Climate Change Plan for Canada," said the Honourable Herb Dhaliwal, Minister of Natural Resources Canada. "By finding a cleaner way to use an economical and abundant source of energy, we are contributing to a better quality of life for all Canadians through healthier communities and greater economic prosperity."

"By working together with the Government of Canada, the Canadian Clean Power Coalition is one step closer to making the first generation of clean coal technology a reality," said Jim Dinning, CCPC Chair. "Coal is our country's most abundant fossil fuel resource and an essential part of Canada's clean energy future."

"Coal will continue to be an important part of our energy mix for decades to come, provided that we learn to use this energy source in a climate-friendly and clean way," said the Honourable David Anderson, Minister of the Environment. "It's exciting to see some of Canada's biggest energy companies working together to develop and demonstrate that this is possible."

The first phase of the project consists of studies to determine which of three technologies is most cost-effective in capturing carbon dioxide (CO2) and removing other pollutants. The options include oxyfuel combustion; chemically stripping the pollutants from flue gases; and gasification technologies that can convert coal into cleaner fuel forms.

The CCPC plans to retrofit an existing coal-burning power plant by 2007 to produce at least 50 percent fewer CO2 emissions. The full-scale demonstration facility will be used to test the technical, environmental and economic viability of new clean coal-burning technology. By 2010, the coalition hopes to develop a new plant, capable of reducing emissions by up to 90 percent, that will serve as a prototype for future plant construction.

Coal plays a vital role in Canada's energy mix, accounting for about 20 to 25 per cent of our total electrical supply. This project is also of considerable interest internationally, because coal is a major source of electricity in the United States, India, China and east European countries.

The Canadian companies involved in the CCPC are ATCO Power, EPCOR, Luscar Ltd., Nova Scotia Power Inc., Ontario Power Generation, SaskPower and TransAlta Corporation. Other partners include the governments of Alberta and Saskatchewan, the Electric Power Research Institute in the United States, and the International Energy Agency's Greenhouse Gas R&D Programme and Clean Coal Centre.

This initiative builds on the Government of Canada's commitment to ensuring the quality of life in our communities, a healthy environment and continued economic prosperity - for the Canada we want, for ourselves and for future generations. Funding for this project was provided for in the December 2001 budget and is therefore built into the existing fiscal framework.