According to the Toronto Star, Canada’s largest generator of what the paper terms “dirty power” has launched an AU $1.7 billion hostile bid for the country’s leading developer of clean and renewable energy, including the two largest wind farms in Ontario.
TransAlta Corp.’s attempt to acquire Canadian Hydro Developers Inc. could be the first of many such acquisitions by big polluters. The energy sector in Canada will need to add some green to their operations quickly to help limit their exposure to carbon-emission penalties when a carbon cap-and-trade system is introduced to the country.solar farms
So why acquire solar farms and wind farms? What happened to retrofitting current coal fired power generation stations for “clean coal” solutions the industry had been pinning so much of its hopes on?
That technology appears to still be a long way off from being commercially viable and action to dramatically reduce emissions is needed now – both from an economic and environmental point of view. At this point in time, there are only 5 demonstration clean coal plants in the world.
Clean coal also seems to be becoming more expensive as time goes on and more studies are performed on the economics of the technology required.
According to a transcript of an interview with Dr. Chris Spero on the Australian Coal Association’s NewGenCoal web site, “the expectation is that the cost increase for clean coal technology will be in the order of 50 to 75% of current power generation costs”.
However, it may be even more expensive over the short to medium term.
A Wall Street Journal article published a few days ago states that the first generation of clean coal plants may be able to capture 90% of their carbon emissions, but it will be at a cost of between US$100 and $150 a ton. This would translate to an added cost of between US 8 and 12 cents per kilowatt hour – the national average electricity price is currently around US 9 cents per kilowatt hour.
With clean coal’s sticker shock starting to sink in, it’s little wonder then that utilities are looking more towards renewable energy solutions such as various forms of solar power and wind farms – they aren’t just greener than even clean coal; they will be cheaper too.
