SaskPower Boundary Dam CCS: Financial Report & Analysis
26-Mar-2015. The $1.467-billion Boundary Dam Carbon Capture and Sequestration (CCS) facility is the world’s first industrial-scale, post-combustion, CCS project. It is located outside Estevan, Saskatchewan and commenced operations in October 2014.
To date there has been no publicly-available analysis of the revenues, expenses and profitability of this project. That information is urgently needed as decision-makers in Saskatchewan and around the word, consider the relative merits of CCS for mitigating carbon dioxide emissions.
SELECT MEDIA COVERAGE
Jeremy Van Loon: Bloomberg. 26-Mar-2015 'Saskatchewan Should Repay CO2 Project Costs, Wind Group Says'.
David Roberts: Grist. 31-Mar-2015 'Turns out the World's First "Clean Coal" plant is a backdoor subsidy to oil'
Today's report, by Saskatchewan Community Wind, addresses that information deficit and is the first which considers the cash and, to a lesser extent, carbon flows associated with the $1.467-billion Boundary Dam Carbon Capture and Enhanced Oil Recovery Project. This report does not concern itself with the technical viability of CCS.
Our report finds that the project generates losses in excess of $1-billion for electricity consumers of Saskatchewan: they will be paying for those losses through higher electricity prices for many years to come.
That this CCS project was nonetheless built may be related to the nature of the principal beneficiary: The oil industry will substantially profit from a below-cost source of carbon dioxide which it will use to increase oil production from the aging Weyburn Oil Field in Saskatchewan.