The government of Saskatchewan has approved SaskPower's construction of the $1.24 billion Boundary Dam Integrated Carbon Capture Storage Demonstration Project. The project will involve the refurbishment of a coal power generating unit at the six unit Boundary Dam Power Station near Estevan in southeastern Saskatchewan.

Carbon dioxide emitted from the 110 megawatt unit will be captured and sold to oil and gas producers seeking to use the product for enhanced oil recovery in mature reservoirs. As well, sulphur dioxide will be scrubbed from the flue gas to produce sulphuric acid.

SNC Lavalin and Cansolv, a Shell Global Solutions subsidiary, have been contracted to build the project with an expected completion date in 2014. When fully operational, the unit will yield approximately one million tonnes of carbon dioxide per year.

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