Cenovus and SaskPower's reach captured CO2 deal
Cenovus will purchase the full volume, approximately one million tonnes per year, of the CO2 captured at SaskPowerÂ’s facility and use it for enhanced oil recovery at a project operated by Cenovus on behalf of its partners near Weyburn, Saskatchewan. SaskPowerÂ’s facility is the worldÂ’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 SaskPowerÂ’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 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.
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