1. Managing the Environmental Considerations of Power Generation Canada Europe Round Table for Business Brussels September 20, 2004 Frederick W. Firlotte

2. Europe & North America – Similarities  Developed, energy intensive economies  Expectation of safe and reliable power supply, meeting all demands  Private and public sector involvement  Following market deregulation independent power producers seeking expanded market share

3. Europe & North America – Differences  Availability of natural resources  Energy prices lower in North America  Energy mix trends in Europe tend to be more focused on renewable generation.  Stronger acceptance of global warming science in Europe  Meeting Kyoto commitments have become issues of national commitment and pride in Europe  Environmental resistance to fossil fuel power generation greater in Europe  Power conservation is entrenched in the European lifestyle

4. North American Power Market

5. Trends in US  The US electricity-generating capacity is becoming more reliant on natural gas  Plans to build power plants are being deferred due to overbuilding 1999-2002  By mid-decade there will be inadequate power in certain regions  Existing plants are and will be available for acquisition  Planned transmission investment at $50-$100 Billion

6.  A 42% increase in generating capacity is predicted in the next 25 years  Some jurisdictions are moving cautiously towards privatization  Canadian energy companies keen in acquiring assets in U.S.  The Kyoto Effect - every company wants to own a wind farm Trends in Canada

7. Address Full Power Cycle  Many issues are “environmental”  Fuel source  Emission control technologies  Waste generation and management  Plant decommissioning  Impact of climate change  Environmental issues influence acceptability of power source  Environmental issues influence costs and schedule  Siting  Time to obtain permits  Emission limits

8. Nuclear Fuel Cycle – Key Issues  Fuel source  Mine development  Mining operations  Mine tailings  Environmental control technologies  Radioactive releases strictly controlled  Once-through cooling water systems being questioned  Waste generation and management  Absence of waste management solutions  Hazards of high level waste  Need for demonstrated solutions  Plant decommissioning  High cost

9. Coal Fuel Cycle – Key Issues  Fuel source  Virtually unlimited coal supplies are in western Canada and US  The low cost and abundance has led to the dominance of coal fired generation in the US and western Canada  Environmental control technologies  In recent years - the American coal industry has supported research into "clean coal" technology  Recent developments in FGD technology have significantly reduced sulphur emissions  In US new generation may be substantial because of high price of gas and success of FGD technologies  Waste generation and management  Ash management has become a priority throughout North America  Plant decommissioning  As many plants reaching the end of their life cycle - the environmental remediation of old coal fired power plants is becoming a significant business

10. Gas Fuel Cycle – Key Issues  Fuel source  Primary risk is future supply of natural gas to the North American market  Environmental control technologies  Emissions associated with natural gas fired facilities are generally acceptable within most areas  Emission control technologies developed so plants can operate under very restrictive environmental conditions  Waste generation and management  Cooling water discharges may be a concern  Plant decommissioning  Plant decommissioning is uncommon  Recent technology - primary boom in construction commencing late 1980s  Many plants are modular and may be relocated as market conditions dictate

11.  Fuel source  The sites currently available for large scale hydro are limited, significant opportunities available for facility expansion and small scale hydro  Currently undergoing renaissance in Canada - perceived as "green power" alternative  Environmental control technologies  Generally perceived as zero emission generation.  Aquatic and terrestrial environmental impacts associated with reservoir management are significant issue  Waste generation and management  Older hydro facilities represent downstream human health and environmental risks if not properly maintained  Plant decommissioning  Facility decommissioning can be costly for larger facilities - maintenance and management is often preferred  Pressure to restore natural river regimes Hydroelectric – Key Issues

12. Wind Fuel Cycle – Key Issues  Energy source  Wind supplies in many areas of North America are unlimited  Environmental control technologies  Zero emissions is the primary selling feature of wind technology  Visual impacts, noise and bird impacts are often public concerns  Access to remote areas

13. Opportunities for European Investment in Canadian Power Market  Emerging green power markets in Canada provide excellent investment opportunities for European companies with a strong background in these technologies.  Canada and the US are behind Europe in application of these technologies (biomass, wind power, small hydropower) - European expertise is well regarded in Canada  Deregulated markets in British Columbia, Alberta and Ontario offer several opportunities  Oil and gas companies in western Canada have a keen interest in renewable energy - open to joint venture opportunities to develop green power