Transcript Corporate Overview - Energy Roundtable

Managing the Environmental
Considerations of Power Generation
Canada Europe Round Table for
Business
Brussels
September 20, 2004
Frederick W. Firlotte
Europe & North America – Similarities
 Developed, energy intensive economies
 Expectation of safe and reliable power
supply, meeting all demands
 Private and public sector involvement
 Following market deregulation
independent power producers seeking
expanded market share
Europe & North America – Differences

Availability of natural resources

Energy prices lower in North America
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Energy mix trends in Europe tend to be more
focused on renewable generation.
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Stronger acceptance of global warming
science in Europe
Meeting Kyoto commitments have become
issues of national commitment and pride in
Europe
Environmental resistance to fossil fuel power
generation greater in Europe
Power conservation is entrenched in the
European lifestyle
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North American Power Market
Trends in US
 The US electricity-generating capacity is
becoming more reliant on natural gas
 Plans to build power plants are being
deferred due to overbuilding 1999-2002
 By mid-decade there will be inadequate
power in certain regions
 Existing plants are and will be available
for acquisition
 Planned transmission investment at
$50-$100 Billion
Trends in Canada
 A 42% increase in generating
capacity is predicted in the next 25
years
 Some jurisdictions are moving
cautiously towards privatization
 Canadian energy companies keen
in acquiring assets in U.S.
 The Kyoto Effect - every company
wants to own a wind farm
Address Full Power Cycle
 Many issues are “environmental”
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Fuel source
Emission control technologies
Waste generation and management
Plant decommissioning
Impact of climate change
 Environmental issues influence
acceptability of power source
 Environmental issues influence costs
and schedule
 Siting
 Time to obtain permits
 Emission limits
Nuclear Fuel Cycle – Key Issues

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Fuel source
 Mine development
 Mining operations
 Mine tailings
Environmental control technologies
 Radioactive releases strictly controlled
 Once-through cooling water systems
being questioned
Waste generation and management
 Absence of waste management
solutions
 Hazards of high level waste
 Need for demonstrated solutions
Plant decommissioning
 High cost
Coal Fuel Cycle – Key Issues

Fuel source
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Environmental control technologies
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In recent years - the American coal industry has
supported research into "clean coal" technology
Recent developments in FGD technology have
significantly reduced sulphur emissions
In US new generation may be substantial
because of high price of gas and success of FGD
technologies
Waste generation and management

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Virtually unlimited coal supplies are in western
Canada and US
The low cost and abundance has led to the
dominance of coal fired generation in the US and
western Canada
Ash management has become a priority
throughout North America
Plant decommissioning

As many plants reaching the end of their life cycle
- the environmental remediation of old coal fired
power plants is becoming a significant business
Gas Fuel Cycle – Key Issues

Fuel source

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Environmental control technologies
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Emissions associated with natural gas fired
facilities are generally acceptable within most
areas
Emission control technologies developed so
plants can operate under very restrictive
environmental conditions
Waste generation and management

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Primary risk is future supply of natural gas to the
North American market
Cooling water discharges may be a concern
Plant decommissioning
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Plant decommissioning is uncommon
Recent technology - primary boom in
construction commencing late 1980s
Many plants are modular and may be relocated
as market conditions dictate
Hydroelectric – Key Issues
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Fuel source
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Environmental control technologies
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Generally perceived as zero emission generation.
Aquatic and terrestrial environmental impacts
associated with reservoir management are
significant issue
Waste generation and management
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The sites currently available for large scale hydro
are limited, significant opportunities available for
facility expansion and small scale hydro
Currently undergoing renaissance in Canada perceived as "green power" alternative
Older hydro facilities represent downstream human
health and environmental risks if not properly
maintained
Plant decommissioning
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Facility decommissioning can be costly for larger
facilities - maintenance and management is often
preferred
Pressure to restore natural river regimes
Wind Fuel Cycle – Key Issues
 Energy source
 Wind supplies in many areas of North
America are unlimited
 Environmental control technologies
 Zero emissions is the primary selling
feature of wind technology
 Visual impacts, noise and bird impacts
are often public concerns
 Access to remote areas
Opportunities for European Investment in
Canadian Power Market
 Emerging green power markets in Canada
provide excellent investment opportunities for
European companies with a strong
background in these technologies.
 Canada and the US are behind Europe in
application of these technologies (biomass,
wind power, small hydropower) - European
expertise is well regarded in Canada
 Deregulated markets in British Columbia,
Alberta and Ontario offer several opportunities
 Oil and gas companies in western Canada
have a keen interest in renewable energy open to joint venture opportunities to develop
green power