-- The Government of Saskatchewan is contributing $333,000 to the Canadian Clean Power Coalition (CCPC), an association of coal and coal-fired electricity producers. The funding will be used toward the first phase of the planned development and construction of Canada's first 'clean coal' power plant.

The government's contribution, combined with CCPC founding member SaskPower's funding of $238,000, represents a $571,000 commitment from Saskatchewan to this phase of the initiative. The total national investment by industry and government is expected to be $5 million for the feasibility study phase of the project. The long-term goal of the private and public sector initiative will be to develop technology that will virtually eliminate air emissions of concern, including carbon dioxide, from coal burning power plants.

The new funding comes from Industry and Resources' Strategic Investment Fund, which supports projects and infrastructure that will lead to the development of innovative products, processes and technologies resulting in a significant economic impact.

"The Government of Saskatchewan is committed to addressing the pressing air quality issues facing our province and our country," Industry and Resources Minister Eldon Lautermilch said. "If this technology proves viable, we will be able to reduce CO2 emissions below current goals for the Saskatchewan electricity sector. Further, we will be able to assure that Saskatchewan's most abundant fuel resource, coal, will be a safe, reliable and cost-effective source of energy well into the future.

"Stability of electricity supply is also a significant factor in economic investment, " Lautermilch said. "This project could very well lead to the next generation of coal power technology, which will be key to keeping Saskatchewan's economy growing."

The first phase of the project will be completed in 2004. This phase involves detailed research and conceptual engineering studies leading to the selection of the technology to be used in the plant. By 2007, the CCPC plans to retrofit an existing coal-fueled power plant, and operate it as a full-scale demonstration facility to test the technical, environmental and economic viability of new clean coal technology. This work is expected to result in a new, or 'greenfield' plant, being designed, built and in operation by 2010 and serve as the prototype for future plant construction.

"Our provincial partners are an important key to making this initiative a success," CCPC spokesperson and SaskPower's Vice-President of Planning, Environment and Regulatory Affairs Rick Patrick said. "Simply put, our aim is to find ways to better use this plentiful resource. Through this clean coal initiative, the industry partners are working to research, evaluate and apply emerging technologies in order to address the significant environmental concerns around this low-cost and reliable fuel."

"SaskPower, like our industry partners, recognizes that the research and development of this technology is a long-term investment," Patrick said. "SaskPower is currently taking additional steps to reduce greenhouse gas emissions in the short term, as outlined in our Climate Change Action Plan 2001."

The Canadian Clean Power Coalition is an association of responsible, leading Canadian coal and coal-fired electricity producers whose aim is to develop clean coal electricity generation technology that will be an important element in a multi-fuelled, affordable and reliable energy supply for Canadians.