CHAT News File Photo

By Chris Brown

At power generation plant

City taking proposals for carbon capture design and cost projection

Feb 9, 2022 | 10:45 AM

MEDICINE HAT, AB – The city is accepting bids this month for carbon capture at its power generation plant, a project it hopes will offset carbon emissions and trickle down into savings for Medicine Hat utility customers.

Federal carbon taxes are expected to rise from $50 per tonne to $170 per tonne by 2030.

“As we move forward we expect that that carbon tax impact will become quite significant as it pertains to not only our earnings from our power plant operations but also in terms of the bills the impact on the bills that the average ratepayer or consumer will actually see in the city,” explains Brad Maynes, managing director, Energy and Infrastructure with the City of Medicine Hat.

“So this is an opportunity not only to meet the decarbonization goals but also in that interim or transition period to do what we can to minimize that impact on our consumers and residents.”

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The city doesn’t pay the federal carbon tax directly on its power generation but instead is charged through the Alberta TIER system to earn offsets for its carbon footprint. The TIER system is equivalent to the federal program.

“For the City of Medicine Hat, we have a significant history of power generation, primarily thermal-based with a carbon footprint. The carbon capture project will allow us to offset some of those carbon emissions therefore resulting in less tax,” Maynes says.

As well, he says a carbon capture facility in place could attract businesses that are also looking to have a reduced greenhouse footprint.

The entire plan is projected for a timeline of up to seven years.

Maynes says decarbonization will be a big part of the environmental framework plan introduced at council this week.

Companies are asked to submit ideas for the design, scope and cost of a carbon capture utilization and storage project and Maynes says there’s already been significant interest from firms.

More information about the bid opportunity can be found on the city’s website.