NB Power's plan to salvage its Coleson Cove generating station by burning a dirty blend of petroleum coke and heavy oil is drawing fire from New Brunswick environmentalists.

On Monday, NB Power applied to the provincial Environment Department for permission to test-burn the oil refinery byproduct at its Saint John power plant as a cheaper alternative to Orimulsion and heavy oil.

The utility invested hundreds of millions of dollars into Coleson Cove several years ago so it could burn Orimulsion, a tar-like fuel imported from Venezuela, but the supply deal fell through and the company lost millions in the debacle. It is now burning heavy fuel oil.

NB Power is now hoping to make back some of its money by burning petroleum coke, a much cheaper option, but a huge polluter. The company projects savings of approximately $30 million per year on fuel costs, compared with burning fuel oil.

The company has two applications with the province. One is to test a blend of 20 per cent petroleum coke and 80 per cent fuel oil mixture at one unit for a year. The second application is to convert all three units to burn the mixture permanently beginning in late 2008.

'Terrible decision': Couture 

Toby Couture represents the New Brunswick Conservation Council, a provincewide environmental research and lobby group, and says burning the blend at Coleson Cove would be a big mistake.

"I think it's really up to the government to put a stop to this," he told CBC News on Tuesday. "Environmentally, it's a terrible decision, and [for] NB Power … It really is an act of desperation to try and get themselves back on their feet."

Coleson Cove is the largest fossil fuel burning power plant east of Ontario, and when it's running at full capacity emits more greenhouse gases than any single plant in Nova Scotia, Prince Edward Island, Newfoundland and Labrador or Quebec.

That pollution stands to get even worse if the plant is allowed to burn petroleum coke, which emits about 25 per cent more greenhouse gases than either coal or oil, according to NB Power's application to the Environment Department.

Petroleum coke is already being burned, along with coal, at NB Power's plant in Belledune, a city north of Bathurst.

'Electricity at lowest possible cost': NB Power

New Brunswick's per capita greenhouse gas emissions for industry are already double the Canadian average, and 60 per cent of that total is generated by NB Power.

In 2005, New Brunswick released 12.6 million tonnes of greenhouse gases, or 16.8 tonnes per capita. The power plant in Belledune was the single biggest source at 3.2 million tonnes. If Coleson Cove burns petroleum coke, its emissions will exceed five million tonnes per year.

The company wants to test the fuel at Coleson Cove for up to a year, so managers can study its environmental, technical and financial impact. If the tests are favourable, the utility could convert up to three units to burn the fuel in 2008.

"NB Power is committed to providing New Brunswickers with electricity at the lowest possible cost," said Darrell Bishop, NB Power's vice-president of generation. "Testing this innovative solution brings us closer to securing a feasible lower-cost fuel that will benefit New Brunswickers."

But Couture says the damage it could cause to the environment isn't worth the money that might be saved. "This is a bottom of the barrel solution, a way to get NB Power back on its financial feet. It's really scraping the bottom of the options. This is the cheapest fuel available, the dirtiest fuel available."