Transcript SaskPower: Climate Change Initiatives

SaskPower: Climate Change Initiatives
Presented at:
Saskatchewan Agriculture and Food
Agriculture and Greenhouse Gas/Climate
Change Workshop
Saskatoon
December 11, 2000
Llewellyn Matthews and Cynthia Edwards
Outline
•Why is it an issue for SaskPower?
•SaskPower’s options
•SaskPower’s Climate Change Action Plan
•Offset projects
•A role for agriculture
Canada’s Emissions
Other
15%
17%
Electricity
Industry
15%
10% Agriculture
& Forestry
Oil & Gas
18%
25%
Transportation
Saskatchewan’s Emissions
7%
Other
24%
Industry
Oil & Gas
14%
16%
Electricity
20% Agriculture
& Forestry
19%
Transportation
% SaskPower Generation
SaskPower’s Emissions
100%
90%
80%
70%
95%
71%
60%
50%
40%
Fuel Source
GHG Emitted
30%
20%
22%
10%
0%
0%
Coal
Hydro
7% 5%
Gas
SaskPower’s Perspective
•It is a real issue.
•We have a responsibility to do our part.
•Electricity will be a targeted sector.
–A strategic business issue.
•Other sectors must do their part.
•We will need to show leadership.
Long Term Solutions
•Technology Change
–Renewable energy sources
–Better carbon based technology
–Hydrogen based energy
•Energy efficiency
–Infrastructure changes
•Adaptation
–We are only affecting the rate of change
Kyoto Perspective
•Canada a signatory but not yet ratified.
•No implementation plan or rules yet.
•The electricity industry is a likely target.
•Kyoto is only a first step and not a long term
solution.
SPC Emissions since 1990
17.5
Million tonnes CO2e
16.0
14.5
13.0
11.5
10.0
8.5
7.0
5.5
4.0
1990
1992
1994
1996
Emissions
1998
2000
year
2002
2004
Kyoto Target
2006
2008
2010
2012
•1990 emissions = 10.6 M
tonnes
•Kyoto target = 10 M tonnes
•Projected 2008 to 2012
emissions = 16 M tonnes per
year
•Kyoto Gap = 6 M tonnes per
year
SaskPower’s Challenge
•How to reduce net emissions
while keeping the cost of
electricity reasonable and
competitive?
•Reducing service is not an
option!
•Demand will continue to
increase.
Options - Don’t burn coal
•Retire 65% existing coalfired plants and replace with
combined-cycle gas turbines
OR
•Convert 100% of existing
coal-fired generation to burn
natural gas
•Cost is substantial
•Disrupts economy (Estevan
& Coronach)
Options - Renewable Energy
•Hydropower
•Wind
•Solar
•Landfill gas
•Biomass
•Other (e.g. fuel cells)
Options - Offsets
•Reduce emissions
elsewhere
•Enhance natural sinks
•Sequestration
•Emissions (carbon
credit) trading
Options - Reduce Demand
•Demand side
management or energy
efficiency.
•Cost to replace existing
capital equipment.
•Can slow down but not
reduce demand.
SaskPower’s Climate Change
Strategy
•Long Term
–Replace coal plants at the end of their life cycle with
new clean technology.
•Near Term
–Internal initiatives
–Customer initiatives
–Offsets
Internal Initiatives
•Increase efficiency of
current operations.
•Co-generation
–Meridian (Husky
Upgrader)
–Cory Potash
•Research new
technology
–CO2 capture
–Clean coal
Customer Initiatives
•Energy Solutions
–Large customers
•Green Power
–9 MW of wind power
•Public Education
–Self-audits
–Action By Canadians
program
Action By Canadians
Water
Heating
6%
Home
Heating
17%
Garbage in
Landfills
8%
Lights &
Appliance
s
26%
Auto
Use
43%
•28% of GHG are
attributable to personal
actions.
•Individuals can make a
difference!
•Public understanding &
support is critical.
SaskPower Offset Strategy
•Uncertainty of Regulation
–Focus on projects that are beneficial in absence of GHG
limitations
•Sink enhancement
•Use of renewable fuels
•Importance of Investing in Saskatchewan
–For every $1 spent on mitigation: beneficial to spend that
$1 mitigating within customer base
–Promote sustainability while allowing low-emitting
technology to evolve
SaskPower’s Existing Projects
•SERM: forest sinks and carbon reserves
•GEMCo:
–Iowa Farm
–Norseman landfill
•Research:
–Prairie Soil Carbon Balance Project
–Prairie Farm Rehabilitation Administration
–University of Saskatchewan
–Ducks Unlimited
Existing Projects: SERM
•Restocking of Not Sufficiently Restocked
(NSR) lands in Northern Saskatchewan
•Protection of existing carbon reserves that
otherwise would have been harvested
•Currently undergoing review by the
Greenhouse Emissions Reduction Trading
(GERT) Technical Committee
Existing Projects:
GEMCo Iowa Farm
•GEMCo contract is with IGF Insurance
•Creditable Actions:
–Shifting from intensive to low/no tillage practices
–Extending rotations
–Capturing methane from animal waste for energy
production
–Producing ethanol from agricultural products
Existing Projects: Research in
Agriculture
•Prairie Soil Carbon Balance Project
•PFRA
•University of Saskatchewan
•Ducks Unlimited
Sinks in the Marketplace
•Sink Potential
–Maximum potential = 8 to 12% of Canada’s Kyoto gap
•The creation of a market that includes the
trading of GHG emission reductions in no
way obligates landowners to participate in
such a market
GHG in Agriculture
•Agriculture is a significant emissions
generating sector
–10% of Canada’s total emissions
–20% of Saskatchewan’s total emissions
•Expansion of livestock industry in jeopardy
•Adaptation to changing climate
•Opportunities in Canadian Agriculture Sector
Opportunities to Mitigate GHG
in Agriculture
•Enhancement of soil sinks
•Improved manure management
•Ethanol production
•Agroforestry
•Shelterbelts and wetland restoration
GHG in Agriculture: Risks
•Biological system: inherently risky
•Agriculture is an energy-price taker
•Agriculture not as mobile as other industries
•Baseline Protection is important for
agriculture
•Agriculture must make use of available
market instruments in order to avoid an
energy TAX
Conclusions
•Climate change is a serious issue in
Saskatchewan for both the agriculture and
electricity sectors:
– Electricity: SaskPower has been actively involved
in the issue through involvement in GEMCo and
submissions to the Voluntary Challenge and Registry
– Agriculture: Actively researching ways to monitor
and verify changes in soil carbon, and improved manure
management techniques
This evening’s
session sponsored
by SaskPower
the power of the environment
www.saskpower.com