Cenovus and SaskPower's reach captured CO2 deal

Cenovus-SaskPower CO2 Agreement secures about one million tonnes per year of captured carbon for enhanced oil recovery near Weyburn, supporting carbon capture and storage, coal-fired power emissions reduction, and long-term CCS commercialization in Saskatchewan.

SaskPower recently announced that it has reached an agreement with Cenovus Energy for the purchase of carbon dioxide CO2 from SaskPower's world-leading carbon capture and storage facility now under construction at Boundary Dam Power Station, near Estevan, Saskatchewan.

Cenovus will purchase the full volume, approximately one million tonnes per year, of the CO2 captured at SaskPower’s facility and use it for enhanced oil recovery at a project operated by Cenovus on behalf of its partners near Weyburn, Saskatchewan. SaskPower’s facility is the world’s first and largest coal-fired integrated carbon capture and storage project.

“This agreement is a major step toward increasing commercialization of carbon capture and storage,” said SaskPower President and CEO Robert Watson. “This is confirmation that SaskPower is on the right track, and that carbon capture and storage is a viable option for the continued use of coal for power generation.”

The long-term contract with Cenovus was signed at the completion of an extensive sales process. Cenovus expects to be ready to accept the CO2 when SaskPower’s integrated carbon capture and storage facility goes into commercial operation on or about April 1, 2014.

“Ensuring we have a consistent and adequate supply of CO2 is critical to maintaining and expanding our enhanced oil recovery project near Weyburn,” said John Brannan, Cenovus Executive Vice-President & Chief Operating Officer. “Cenovus’s agreement with SaskPower under its clean coal project framework provides us with a second reliable supply source of CO2 for our Saskatchewan operations. We look forward to working together.”

Powering Saskatchewan since 1929, SaskPower is proud to support continued growth across the province, and provide safe, reliable and sustainable power to our 482,000 customers through facilities like the Cory Cogen Station across Saskatchewan.

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