Canada: Ontario Power Generations steps up to the biomass challenge, continues with nuclear refurbishment

Ontario Power Generation (OPG) has a task that few power utilities would relish. The provincial government has regulated that it must cease using coal completely by 2014, a tall order given that it has a generating capacity of 21GW, featuring 11 coal-fired units at four power stations.

The utility is currently on track to switch its 230MW Atikokan plant to 100 per cent wood pellet burning by 2012 and three or four units at Nanticoke may well follow in 2013. There are also ongoing studies for the Lambton and Thunder bay plants. According to a study by the University of Toronto and commissioned by OPG, the cost of biomass-fired power generation will be around CAD12/KWh, roughly double that of natural gas, but still competitive with renewables and nuclear power.

Speaking of nuclear, OPG has recently announced a two part investment strategy for its nuclear power plants in the Durham region. According to a press release, it will proceed with the planning of a refurbishment of the Darlington plant, with construction expected to start in 2016. It also intends to spend CAD$300m “to ensure the continued safe and reliable performance of its Pickering B station for approximately 10 years. Following this, OPG will begin the longer term decommissioning process as refurbishment for Pickering B station will not be pursued.”