SaskPower has announced that it will proceed with the reconstruction of one 110-MW unit at its Boundary Dam generating station near Estevan, Saskatchewan.

The project will cost $1.24 billion, and will include the construction of $800 million worth of carbon capture and storage (CCS) technology which will capture one million tonnes per year of CO2 emissions from the unit. When completed in 2014, it will be the world's largest CCS project. SaskPower says that the captured CO2 will be sold to oil producers in the region for enhanced oil recovery projects. The CCS technology will also capture SO2, which will be used to produce sulphuric acid.

The Government of Canada has contributed $240 million to the project. The CCS technology will be supplied by SNC-Lavalin and Cansolv.