Addressing Canada s CO 2. Emissions Challenge

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Addressing Canada s Emissions Challenge

Project Pioneer represents a major step toward advancing the capture of greenhouse gas emissions. The project entails the construction of a large-scale carbon dioxide ( ) capture and storage (CCS) facility at one of TransAlta s coal-fired generating stations west of Edmonton, Alberta. Through a partnership with Alstom Canada, TransAlta will pilot Alstom s proprietary Chilled Ammonia Process, a process TransAlta considers to be one of the more promising and potentially lowest cost solutions for safe and reliable capture of CO2 emissions. Further partnerships with the oil, natural gas and oil sands sectors will provide expertise and knowledge of their process plant operations and additional insight into the full potential CO2 storage has for enhanced oil recovery. Once complete, Project Pioneer will be one of the largest CCS facilities in the world and the first to have an integrated underground storage system. Through Project Pioneer, TransAlta expects to reduce current emissions by one megatonne (Mt) per year. Viewed as the most promising and lowest cost approach to CCS, the chilled ammonia process uses: Less power Less steam Lower operating costs...than other proposed alternatives.

Why CCS? Much of the world, including Canada, is fortunate to have huge reserves and a reliable supply of low cost coal more coal than oil, in fact. To simply say no to coal without first exploring every avenue possible to cost effectively eliminate its emissions could deny everyone the right to affordable and dependable electricity. emissions challenge If the world is to make significant emissions reductions, then we must find technologies to retrofit as much of the world s existing and emitting infrastructure as possible. That s why hundreds of billions of dollars are being spent around the world to find answers that will allow countries and companies to use and retrofit these facilities so they are emission free. Canada can play a critical role in commercializing CCS. Doing so will benefit Canadians and people around the world. CCS could bolster Canada s energy security and greatly enhance the economic value and marketability of Canada s extraordinary coal, natural gas and oil reserves, including Alberta s oil sands. A powerful case What makes the case for CCS so powerful is that it can be retrofitted on existing coal-fired power plants and other fossil energy infrastructure. In 20 years, most of Canada s industrial emissions will still come from facilities in operation today. By retrofitting coal fleets across the country, CCS has the potential to make coal a carbon-neutral fuel. And, if heavy oil upgrading facilities were built with CCS capability, we could capture and store up to 90 per cent of the these facilities emit. TransAlta s coal-fired Keephills plant, west of Edmonton Canada has huge reserves of coal more coal than oil, in fact. Alberta has 33 billion tonnes of proven coal reserves 70 per cent of Canada s total reserves.

We can do it safely Project Pioneer will use CCS technology that is proven and safe capture and storage is not new. On a smaller scale, it is used in other industrial processes and has been injected into oil reserves to increase oil recovery for more than 30 years. Over the past 20 years, considerable research and development efforts have been devoted to the long-term, geological storage of. The same geological formations that kept gases and fluids in place will also safely secure the captured by Project Pioneer Once injected, will be trapped in tiny pores within the storage rock far below the earth s surface and it will be separated from usable groundwater by thick, impermeable barriers of dense rock. Geological storage projects have already stored millions of tonnes of for many years, without detectable leakage Projects in Saskatchewan and Norway have safely stored 15 Mt of in depleted oil fields and deep, underwater, saline formations without leakage. Transporting is nothing new Just like natural gas is today, can be transported long distances at low-cost. Extensive pipeline networks have been safely in use in the United States for more than 25 years. CCS How it works CCS captures from large, industrial facilities and stores it deeply and safely underground where it cannot contribute to climate change. Legend Energy input (coal) Energy input (oil/gas) returned Illustration Alberta Geological Survey

CCS What is it? a greenhouse gas can be separated from the exhaust of industrial facilities like a coal-fired electricity plant compressed and injected back underground to be permanently stored in the very geological formations where it was held for millions of years. The Canada-Alberta Task Force on CCS determined that by 2050, CCS has the potential to eliminate 600 Mt of greenhouse gas emissions per year, or roughly 40 per cent of Canada s projected emissions. That s equivalent to removing more than all of Canada s current industrial emissions - without losing critical economic services and value. Successfully implementing CCS is crucial if Canada and the world are to address the emissions challenge. Once proven, CCS has the potential to eliminate 45 Mt of annually almost a third of the province s 2050 target if applied to all Alberta-based coal-fired electricity plants. TransAlta has already begun the initial engineering and design work and will complete this stage by mid-2009. However, TransAlta and its industry partners require financial support from the Government of Alberta to build this facility. With the right leadership and commitment, the facility will be operational in 2015. TransAlta is known for its responsible approach to the local environment. CCS will extend that care on a global scale and make Alberta a world-leader in emissions control.

Key dates April 2008 TransAlta partners with Alstom Canada to develop CCS project in Alberta, Canada TransAlta begins engineering and design work with an investment of $12-million July 2008 Alberta government announces $2-billion commitment to CCS technology, saying CCS is vital if Canada is to achieve its goal of reducing carbon emissions by 20 per cent from current levels by 2020 2009 Federal and provincial funding awarded 2014 Construction slated for completion 2015 Project Pioneer delivers 20 per cent of the Government of Alberta s target a 5 Mt reduction in annual emissions Dates are as at September 2009 For more information, visit www.projectpioneer.ca