Managing the Environmental Considerations of Power Generation Canada Europe Round Table for Business Brussels September 20, 2004 Frederick W. Firlotte.

Managing the Environmental Considerations of Power Generation

Canada Europe Round Table for Business

BrusselsSeptember 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

Energy mix trends in Europe tend to be more focused on renewable generation.

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

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

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

Trends in Canada

Address Full Power Cycle Many issues are “environmental”

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

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

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

Environmental control technologies 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 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 Primary risk is future supply of natural gas to the

North American market Environmental control technologies

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 Cooling water discharges may be a concern

Plant decommissioning 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

Fuel source 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

Environmental control technologies Generally perceived as zero emission generation. Aquatic and terrestrial environmental impacts associated

with reservoir management are significant issue Waste generation and management

Older hydro facilities represent downstream human health and environmental risks if not properly maintained

Plant decommissioning Facility decommissioning can be costly for larger facilities

- maintenance and management is often preferred Pressure to restore natural river regimes

Hydroelectric – Key Issues

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