MELBOURNE, Sept 10 (Reuters) - BHP Billiton Ltd BHP.AX
BLT.L plans to spend millions of dollars in a venture with a
Canadian power company to promote carbon capture technology to
help shore up coal demand.
BHP, the top global miner and biggest exporter of coal used
in steel plants, and Canada's Saskatchewan Power SSPOW.UL said
on Thursday they planned to set up a centre to support research
and cut the costs and risks facing new carbon capture and
storage (CCS) projects worldwide.
BHP declined to reveal the exact amount to be invested in
the venture, saying terms have yet to be agreed.
"To achieve the type of goals that we're looking to achieve,
it would be a multimillion dollar contribution over several
years," said Graham Winkelman, a senior manager for environment
at BHP.
SaskPower opened the first large-scale CCS project at a
coal-fired plant a year ago, aiming to capture 90 percent of the
carbon emissions from the Boundary Dam plant after a C$1.35
billion ($1 billion) overhaul.
CCS technology is seen as essential to the future of fossil
fuel-fired power plants amid the global push to limit emissions
of greenhouse gases to curb climate change. ID:nL6N0SS0B8
"SaskPower have said given their experience on Boundary Dam,
their next CCS project is likely to be 20 or 30 pct cheaper than
the first version," Winkelman told Reuters.
The partnership with SaskPower is part of a twin strategy by
BHP to promote the cleaner burning of fossil fuels, while at the
same time promoting renewable energy technologies such as
battery storage.
Both angles will promote demand for the metals, coal, oil
and natural gas that BHP produces.
The central Canadian province of Saskatchewan is also where
BHP is developing a multibillion dollar potash project.
($1 = 1.3214 Canadian dollars)