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| The Carbon Conundrum |
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Dakota Gasification Company, a subsidiary of Basin Electric Power Cooperative, is ahead of the rest of the world in the capture and transport of carbon dioxide for sequestration. Because technology is not yet commercially viable for capturing CO2 from large baseload, coal-fired power plants, Basin Electric is deeply concerned about pending legislation relative to its coal-based electric generation fleet.
We are not opposed to reasonable climate legislation, but we are opposed to any legislation that sets unrealistic goals and timetables that may dramatically increase costs to consumers. With reasonable timetables and investments in technology, our energy industries can solve the problem without unreasonable costs to Americans.
Basin Electric is diversifying its power supply to include wind, gas and waste heat. We are also building America's first cooperative-owned wind farm, as well as engaging in several conservation and efficiency programs at the generation and transmission (G&T) level and with our member cooperatives. These efforts help limit the amount of carbon dioxide released into the air.
Experts say that our nation’s growing electricity needs will soon go well beyond what renewable energy, conservation and efficiency can provide.
Coal currently provides 50 percent of America’s electrical energy and 80 percent of power to Minnesota, Montana, North Dakota and South Dakota.
The technical potential exists for the U.S. electricity sector to significantly reduce its CO2 emissions over the next several decades, but no one technology will be a silver bullet – a portfolio of technologies will be needed. Much of the needed technology isn’t available yet – substantial research and development and demonstration is required. A low-cost, low-carbon portfolio of electricity technologies can significantly reduce the costs of climate policy.
New technology is still in development
Basin Electric is the parent company to the largest carbon capture project in the world - Dakota Gasification Company's Great Plains Synfuels Plant near Beulah, ND, and we are moving forward with one of the most aggressive new energy technology programs anywhere in the world.
Basin Electric and its subsidiaries believe that through the development of new technology, we can keep our energy supply clean and reliable, we can have a strong economy and we can solve the issue of climate change.
Basin Electric believes that some form of carbon dioxide (CO2) management or constraints will be developed by the U.S. Congress. However, such legislation must maintain a viable path for future coal use to protect consumers and to maintain domestic energy security. Coal continues to produce 50 percent of electricity used in the United States. Coal is domestic, abundant, and relatively inexpensive; we need to develop the technologies that allow us to use coal more efficiently with the ability to capture carbon dioxide emissions.
Basin Electric is working to develop carbon capture and sequestration (CCS) technologies for coal-based power plants. We have been a leader in carbon dioxide sequestration, participating in the largest CCS project in the world. We are currently planning to test pioneering carbon dioxide capture technologies at the Antelope Valley Station, near Beulah, ND. These efforts will take time and a huge financial commitment.
We support the Electric Power Research Institute (EPRI) model. It proposes reducing carbon dioxide emissions on a longer timeframe, but results in dramatically less painful increases in energy costs. It would require Congress to focus on technology to reduce carbon dioxide emissions and make the timing of reductions more in line with technology developments.
View the PowerPoint show, "Electric Technologies in a Carbon-Constrained World" presented by Bryan Hannegan, Vice president, Environment, EPRI, at Rural Electric Statewide Managers Association Meeting in January 2008.
EPRI’s plan would allow emissions to increase slightly in the near term, level out from 2010 to 2020 and then begin making reductions. On the electricity supply side, this would allow for the demonstration and commercialization of CCS, expansion of new nuclear plants, improvements in new coal and gas generation and increases in the efficiency of renewable energy options to lower costs. On the demand-side, it includes the adoption of plug-in hybrid electric vehicles and the acceleration of end-use efficiencies.
If EPRI’s model were adopted - focusing on research and development and getting the timing correct - the U.S. economy would save $1 trillion. If climate change legislation is done correctly, the impact to the consumer can be substantially reduced. If not, the result will be a disrupted economy and a painful transition that results in reduced household spending power.
Climate change cost to consumers
“With reasonable timetables and
investments in technology, we can solve the problem without
unreasonable costs to Americans."
– Ron Harper, Basin Electric
general manager and CEO and Dakota Gasification Company CEO