Feasibility studies into two multibillion-dollar alternative energy projects, including one that that would make fertilizer from petroleum coke or coal, could be in jeopardy after reports that Ottawa may not kick in its half of the $40 million cost.
The federal government is reviewing all agreements made by the previous Liberal government, including one made last November with the Saskatchewan government to split the cost of feasibility studies for two projects that could reduce greenhouse gas emissions.
The projects include a clean-coal power plant and a polygeneration plant that would use the byproducts of a feedstock such as petroleum coke to benefit several industries. The total cost of both plants is estimated at $4.5 billion and plans were to have them operating by 2011.
Read Also
Huge Black Sea flax crop to provide stiff competition
Russia and Kazakhstan harvested huge flax crops and will be providing stiff competition in China and the EU.
“There has been no notification to us that these agreements would be off the table,” industry minister Eric Cline said May 26.
“From our point of view we want to work with the federal government and industry to move these projects ahead.”
Cline said the projects directly relate to what the federal government has said it wants to do: take specific action using new technology to reduce greenhouse gas and deal with climate change.
The $3 billion polygeneration plant, proposed for Belle Plaine, Sask., would gasify petroleum coke or coal and use the material for various industries. It would be one of the first of its kind in the world.
Petroleum coke is a byproduct from the heavy oil upgrading process. When it or coal is gasified, the components are separated, collected and used, resulting in near-zero emissions.
The process produces hydrogen, nitrogen, steam and carbon dioxide, which can be used to make fertilizer, electricity and heat. The carbon dioxide could be piped to the oil fields of southeastern Saskatchewan to enhance oil extraction.
If located at Belle Plaine, the plant could benefit the adjacent Saskferco nitrogen fertilizer plant and Mosaic potash mine. Both use large quantities of costly natural gas.
Cline said the private sector would initiate the polygen plant, while SaskPower would own the clean-coal project.
That project would be built in southern Saskatchewan and produce 300 megawatts of electricity at near-zero emissions compared to coal-fired thermal power plants.
Cline said he doesn’t have money in his budget to kick in Ottawa’s share if it decides to pull out.
