Moose Jaw gas plant will pay carbon tax on its emissions, minister confirms
Carbon tax will cost additional $350M on operations, says Minister Responsible for SaskPower Dustin Duncan
The wheels are moving again on the plans for a 350-megawatt natural gas plant near Moose Jaw, Sask. The plant will be generating power for Belle Plaine, Moose Jaw and Regina as well as some surrounding communities.
According to the Minister Responsible for SaskPower Dustin Duncan, that corridor is in need of load capacity for power and it looks like it will stay that way in the future.
Talks for the plant began in 2017 but the project had to undergo a review before plans were finalized. Federal regulations changed after initial plans for the project were put forward.
Duncan said the carbon tax will be applied to every emission from the gas plant by 2030 because of the federal regulations.
"This is about a $350 million cost on the operations of that plant between 2024 and 2030 so it is a significant additional cost that we weren't expecting," he said.
The Chinook power plant in Swift Current is exempt from these federal regulations. Anything coming online after January 1, 2021 will be subject to the carbon tax.
"When this facility is complete in 2024 it will generate enough baseload power for a city the size of Saskatoon," said Mike Marsh, SaskPower president and chief executive officer in a news release.
"Construction and operation of the plant will also provide economic opportunity in the Moose Jaw area and we look forward to continued cooperation with the City of Moose Jaw in the coming years."
The plant is expected to cost around $800 million.