SaskPower’s announcement on Monday to retire Units 4 and 5 at the Boundary Dam Power Station within the next few years, rather than to retrofit them with carbon capture and storage technology, has drawn a lot of reaction.
Estevan MLA Lori Carr said she supports the government’s decision, but she recognizes the strain it will put on the constituency.
She said she has regularly reminded the government of the economic downturn that would happen locally in this area if coal were to be phased out.
“If coal were not used at all for the production of power going forward, it would affect Estevan so drastically, because between coal mining and power production, that would take probably 1,000 people out of the workforce, and not only that, but think of all of the spinoff businesses that contract out there that rely on coal for their survival.”
While natural gas prices are low at this time, eventually the price is going to come up, and then CCS will be more feasible. So she believes coal needs to remain part of the mix.
Carr wishes the economies of CCS were different, so it could have been more affordable.
“When I look at everybody else’s power bill across the province that would go up if we decided to change these two units to carbon capture and sequestration, is that fair to every ratepayer across Saskatchewan?” said Carr.
Mayor Roy Ludwig said he is concerned with the decision not only because he is mayor, but he also works at the Westmoreland Coal Company’s Estevan mines.
“We knew that there was some uncertainty around those units, but of course we always remain optimistic that we can keep moving ahead with the clean coal technology,” said Ludwig.
During a meeting with SaskPower on Monday morning, Ludwig was notified that Units 4 and 5 would be retired. When he asked about the coal mining issue, they weren’t given an answer.
“We’ll continue to lobby the provincial government and the federal government to try to keep moving forward on clean coal technology,” said Ludwig.
The negative impacts from retiring Units 4 and 5 could be mitigated if the government agrees to retrofit the Shand Power Station and Unit 6 at Boundary Dam.
Ludwig hasn’t been able to speak with co-workers at the mines about the decision, but he said a lot of them are concerned about the future following the visit of a task force last month regarding a transition for those who work in coal mining.
Jackie Wall, the executive director of the Estevan Chamber of Commerce, said she is concerned with the impact that the loss of Units 4 and 5 could have on the community.
She noted that when Dustin Duncan, the minister responsible for SaskPower, was in Estevan for a luncheon last month, he said many of the same things as what he said on Monday while making the announcement.
“The chamber has had large concerns about this for many, many months, more than a year, actually, when we read the GHG (greenhouse gas) legislation, and had a meeting with SaskPower that was several months ago,” said Wall.
She was hoping to hear some details on a new equivalency agreement with the federal government by now, but it appears the agreement will be finished by the end of the month.
Wall believes the equivalency agreement will play a big role in the future of Unit 6 and Shand.
For now, the chamber is forced to play the waiting game on the future of coal power.
“We’ve been taking a look at diversification in the community through the economic development committee. We are also looking into the possibility as well. We’re looking at several different options, and a lot of that is going to come down to meeting with the stakeholders in the community and choosing a course of action.”
