Polygeneration project will light up about 300,000 Sask. homes

A $6 billion polygeneration plant near Belle Plaine will increase Saskatchewan electric power production by about five per cent when it comes on stream in 2013.
"That's enough to provide electricity to about 300,000 Saskatchewan homes," said John Jenkins, project manager for the owner Trans-Canada Energy of Calgary. He spoke at an open house in Belle Plaine Tuesday.
The plant will produce electricity for the Saskatchewan power grid, hydrogen for use by the adjacent Saskferco fertilizer plant, and steam heat for the solution mining process at Mosaic.
Carbon dioxide gas produced by the plant will be compressed and sold to the oil industry.
"We take a low grade carbon-based fuel - in this case petroleum coke out of the heavy oil upgrading process in Alberta - and we convert it into a number of usable chemicals and energy products," said Jenkins.
The coke is turned into synthetic gas under heat. Impurities removed include the different products.
Three of the byproducts are reused by industry and removed from greenhouse gas emissions, he said.
"What makes it so unique is two industries - Mosaic and Saskferco side by side - can take significant amounts of by-products."
Enhanced oil recovery technology - a proven method in Saskatchewan - will use carbon dioxide, by pumping it into oil-bearing rocks to increase pressure. The method extracts previously trapped oil and "stores the carbon dioxide underground permanently," said Jenkins.
"This is very important from an environmental perspective (to reduce emissions).
"The site in Belle Plaine is perfect for this application" because of markets for byproducts from the main power generation operations.
When first proposed in 2005, the estimated cost was $3 billion.
"The way it looks now, over $4 billion is our best estimate." General Electric will supply the technology.
The Saskatchewan government provided $26 million in the evaluation phase but the money will be repaid with interest if the project goes ahead, said Jenkins.
Employment will be between 125 to 150 full-time on site on "a 24-hour-seven-days basis." Construction jobs will peak at 2,000 to 2,500 during the four years of building.
Economic impact studies have not been done, but he expects huge benefits to the province and government.
Open houses, including one in Moose Jaw today at the Heritage Inn from 5 to 8 p.m., are introducing the project. Another set is planned in the fall to complete the environmental impact study, he said.
Trans-Canada Energy, a division of pipeline owner Trans-Canada Corporation, owns or controls 7,700 megawatts of power capacity fuelled by hydro, coal, natural gas, nuclear energy and wind.

Ron Walter can be reached at 691-1264.