SaskPower has announced it will go ahead with a $1.24 billion carbon capture and storage facility near Estevan, Sask.
It will be the first commercial-scale facility in the world.
The crown corporation said the clean coal project would transform an aging generator at the Boundary Dam power station into a producer of clean electricity.
It will reduce greenhouse gas emissions by one million tonnes per year, or the equivalent of removing 250,000 vehicles from the road annually.
The project will also capture carbon dioxide for enhanced oil recovery.