HOUSTON, Jan. 10 — BC Hydro, Vancouver, BC, has begun soliciting proposals to offset 5.5 million tonnes of greenhouse gas emissions from two proposed gas-fired electric generating plants on Vancouver Island.
Canada’s third largest electric utility, BC Hydro has committed to offsetting 50% of the increase in greenhouse gas emissions at the plants through 2010. A greenhouse gas offset is a reduction in greenhouse gas emissions at one source that compensates for greenhouse gas emissions at another source. Offsets are recognized in the Kyoto Protocol, an international agreement to reduce greenhouse gas emissions.
State-owned BC Hydro Thursday said it is seeking proposals for greenhouse gas offset projects located anywhere in the world, including landfill gas, renewable energy, energy efficiency, fuel switching, industrial process improvements, agricultural waste management, and other types.
The company said growing population, increasing demand for electricity, and aging submarine electricity transmission cables are driving the need for new energy supply on Vancouver Island. After evaluating alternatives, BC Hydro decided to proceed with the 240 Mw Island Cogeneration and the 265 Mw Vancouver Island Generation projects.
BC Hydro will buy power from the Island Cogeneration project, which is expected to generate an estimated 600,000 tonnes/year of greenhouse gas. The company will own and operate the Vancouver Island Generation project in partnership with Calpine Canada Power Holdings Ltd., a unit of Calpine Corp., San Jose, Calif. While the plant hasn’t been sited, it is expected to generate 700,000 tonnes/year of emissions.
The company is looking to acquire offsets occurring between 2002 and 2020. The minimum project size is 100,000 tonnes over the contract term. Short proposals are due to BC Hydro by May 1, 2002. BC Hydro said it will then initiate negotiations with the most promising opportunities with the aim of signing contracts by late 2002 or early 2003.