Strategic approach to climate change

Diversifying Fuel Mix

A variety of power plants, using coal, natural gas, hydro and wind, means we do not rely on one source of fuel. This approach, called fuel diversification, improves the reliability and security of our electricity supply. Also, the more energy that we can put into the grid that comes from less carbon-intensive sources, the less GHGs we emit per unit of production.

Our company is committed to achieving long-term fuel diversification — that is, to achieve one third coal, one third gas and one third hydro and renewables.

The portion of our fuel mix that comes from natural gas and renewable energy sources is growing steadily. Last year, we had the first full year of operation from our gas plants in Campeche and Chihuahua, Mexico. We also commissioned the Summerview wind farm, a 68-MW wind project near Pincher Creek, Alberta.

In 2004, the percentage contribution from coal plants to our fuel mix increased only slightly, from 57 per cent in 2003 to 58 per cent. This contribution is expected to decrease in the future, with the continued decommissioning of the Wabamun plant, our oldest coal plant. In late 2004, we shut down Wabamun units 1 and 2, which together produced 119 MW of power. These closures will result in a projected yearly reduction of 1.2 million tonnes of CO2 equivalent and are part of our long-term plan, prompted by economic and environmental factors, to phase out all four units of the 537-MW coal plant. A 139-MW unit was retired in 2002. The remaining unit, which produces 279-MW of power, will operate until 2010 when its licence expires.