On Friday 18th the Leader Post published an editorial congratulating Premier Wall on the $1.5-billion invested at Boundary Dam and criticising wind energy. On 20 September we posted our 800-word response and also sent it to the Leader Post asking that they publish it as an op-ed.
On 21 September the Star Phoenix reprinted that editorial.
Since the Leader Post has still not published our 20 September response, this evening we sent a 200 word letter (see below) to the Star Phoenix. Also included is an infographic which summarises the cash flows associated with the Boundary Dam carbon capture project. Additional details, for the data hounds out there, are contained in our March report on Boundary Dam.
On September 21 you published an editorial ('Wall Correct on Fossil Fuels') in which you praised the decision of the Premier to invest $1.5-billion of public funds in the Carbon Capture scheme at Boundary Dam.
Of this total amount $550-million is paying for the new power station at Boundary Dam while the remaining $917-million is the cost of the carbon capture unit. Those carbon capture operations will generate a 30-year operating loss of $125-million after consideration of revenue from sales of carbon dioxide and expenses associated with facility Operations and Maintenance. In other words Boundary Dam will result in a loss to Saskatchewan electricity users of just over $1-billion during its 30-year life.
Your editorial criticised wind power as not being 'baseload'. So what? Iowa generates 54 percent of its electricity using coal (versus 44 percent in Saskatchewan) and 30 percent from wind (versus 2.7 percent in Saskatchewan).
Had wind energy been used in place of coal with carbon capture at Boundary Dam, then wind would be generating 6 percent of Saskatchewan's total electricity. This is less than 17 US states already achieve today. Saskatchewan electricity users would also have saved $1-billion.
Far from being 'correct', the $1.5-billion invested in Boundary Dam looks increasingly like a shocking waste of public funds.
James Glennie MBA CFA
President and Founder - SaskWind