AESWapiti plans at a standstill

First, here's Gordon Campbell talking about carbon sequestration and AES and Compliance, the two companies with coal-fired generation proposals in BC, the day after the Throne Speech.

Gordon Campbell
CKNW
14-Feb-2007

"One of the plants that was being proposed is looking at the potential for that and putting that in place and recognizing it'll be a frontrunner in that. The other plant that people talked about is looking at 100 percent biomass."
link

Now, here's AES's Tom Kunde on the same subject. Are they telling the same story? You be the judge.

AESWapiti plans at a standstill

John King
Daily News
Dawson Creek
20-Feb-2007

B.C. Premier Gordon Campbell's plan to reduce greenhouse gases in B.C. by at least 33 per cent in the next decade isn't sitting well with one global power company.

The AESWapiti project, a joint venture between American-based AES and B.C. coal producer Hillsborough Resource, was to see the construction of a coal-mining and power-generation complex in the Tumbler Ridge area.

AESWapiti was proposed to begin operation sometime in 2010 with plans to break ground and start the construction phase in November 2007.

But their plans are all up in the air since last week's provincial Throne Speech, which kicked off the third session of the 38th parliament.

In the speech, delivered on Feb. 13 by B.C.'s Lieutenant Governor Iona Campagnolo, the Campbell government outlined that effective immediately, B.C. will become the first jurisdiction in North America to require 100 per cent carbon sequestration for any coal-fired project.

"Right now, we're at a full stop." AES business development director Tom Kunde said Monday, speaking from his Oregon-based office.

As the company's North America-West director, Kunde admitted the power company was somewhat taken back when listening to the throne speech.

"Bottom line, yes it surprised us," he said. "In our view, the project was configured on the idea to use CO2 offsets.... Eventually the implementation of Kyoto would bring regulations relative to CO2. The throne speech goes beyone [this] and does not allow any CO2 emissions."

Kunde said AES is assuming most of what was outlined in the throne speech will become policy.

"As of now, the process is on hold," he said.

While looking to consult with B.C. Hydro and the provincial government, Kunde said the Tumbler Ridge project does not meet the regulations outlined in the throne speech.

Kunde also said that he does not believe any sort of CO2 capture technologiy is a practical solution at this point - as has been suggested in some media reports.

"Some comments in the press said we'd employ CO2 capture [technology]. In our view, this technology is not proven or viable." Kunde said.

After wrapping up a legislature sitting on Monday, Peace River South MLA Blair Lekstrom said CO2 capture technology, or sequestration, is going ahead.

Still he remains optimistic about the AESWapiti project.

"The people of the northeast began talking about supporting the best technology available in the world," Lekstrom said, adding constituents are proud of the fact his government brought forwaqrd alternatives while not opposing coal-fired power plants.

"But if we do use coal, we should be world leaders in the technology used," Lekstrom said.

Inviting industry to invest in B.C. and implementing tougher environmental regulations can go hand-in-hand, the MLA explained.

"The government is working towards balance," he said, adding it's not all about opening the door to business at any cost.

"That doesn't fly, nor does business expect it. For the most part, the environment is a key issue here and around the world. It's time to take it to the next step and go even further.... The two can work in co-operation together."