Thunder Bay Conversion Fact Sheet May 2012 - Ontario Power ...

Thunder Bay Generating Station Conversion Project
FACT SHEET 2 MAY 2012
Ontario Power Generation is Converting Thermal Stations to Cleaner Fuels
Ontario Power Generation (OPG) is a provincially owned electricity generating company that produces about 60 per cent of Ontario’s electricity from its
hydroelectric, nuclear and thermal generating stations. OPG is phasing out the use of coal to produce electricity at its thermal generating stations by the
end of 2014. This includes the Thunder Bay Generating Station (GS), located next to the Lakehead Region Conservation Authority’s Mission Island Marsh,
on Mission Island, in the City of Thunder Bay, Ontario.
The station’s two operating coal-fuelled generators, which were constructed in the early 1980s, produce up to 306 megawatts (MW) of electricity, using
low-sulphur coal. Thunder Bay GS currently employs about 130 people, contributes more than $4 million (2011) to the community in taxes, spending and
support for community organizations. The station is certified to the ISO 14001 environmental management standard and is also certified by the Wildlife
Habitat Council.
Thunder Bay GS Conversion Project
Ontario’s Long-Term Energy Plan (LTEP) includes converting
Thunder Bay GS to natural gas fuel. In August 2011 the Minister
of Energy directed the Ontario Power Authority (OPA) to
negotiate a power purchase agreement with OPG for electricity
produced by Thunder Bay GS after converting to natural gas.
• OPG is seeking approval to convert the station’s two
operating 153 MW coal-fuelled generating units to burn
natural gas fuel.
• The project design will accommodate capability for the
station to burn biomass in the future.
• The amount of electricity produced by the converted plant
will depend on demand, availability of other sources of
electricity supply and the power purchase agreement with
the Ontario Power Authority.
• Natural gas conversion is recognized as the lowest cost
option for Thunder Bay GS at this time. The cost of natural
gas is projected to stay relatively low for the foreseeable
future.
• Units converted to natural gas will have the same production
capability as on coal.
• A phased approach to conversion where one unit will be
ready for 2014.
Looking Ahead
OPG’s Thunder Bay GS Conversion Project currently has a number of activities
underway. In order for the project to proceed, it will need:
• A power purchase agreement between Ontario Power Generation and
the Ontario Power Authority;
• Environmental approvals from the Ministry of the Environment;
• OPG Board of Directors’ approval of the project business case; and
• Contracts for station modifications and fuel supply.
OPG will continue to use fuel price, cost of modifications and power purchase
negotiations with the OPA to build a business case for conversion of the station.
Engineering for station modifications is underway and environmental studies
have been completed.
Natural Gas Pipeline
Union Gas is responsible for technical studies and public consultation leading to the identification of the route, environmental approval to construct and construction
of a pipeline to Thunder Bay GS.

Project Areas of Interest and Response Summary
The public communication and outreach program ensures that local Aboriginal communities and the Thunder Bay area stakeholders and interested
individuals are aware of the Project, have the opportunity to provide their input, and ensure issues and concerns are identified and effectively addressed
in the project development phase. Project related areas of interest identified through the outreach program to date and OPG’s responses
are summarized in the following table.
Natural Gas
Areas of Interest
Emissions to Air
Emissions to Water
Traffic Impacts
OPG Response
n Compared to coal, the fuel pathway results in reduced airborne emissions including nitrogen oxides,
sulphur dioxide and metals, and reduced greenhouse gas emissions by about 45 per cent compared to
coal per unit of energy produced
n Noise: minimal because of expected low levels of operation, distance from receptors and no use of coal
handling facilities
n Runoff (precipitation) from coal pile will be eliminated with conversion to gas
n No traffic impacts for operation on natural gas
Impact on the Price of Electricity n Price of electricity in Ontario is determined by the Ontario Energy Board and the electricity market
n The cost of electricity from Thunder Bay GS is determined by cost of fuel, plant modifications and
operating expenses which will be part of the power purchase agreement with the Ontario Power
Authority
n Cost of coal and natural gas are competitive
Continued OPG economic
contribution to the
community-local economic
benefit
Impact on Natural Gas
Resources and Price
Biomass
Climate Change
Benefits/Renewable Fuel
OPG Fuel Specifications
Odour
Traffic Impacts
Emissions to Air
Emissions to Water
n Up to 100 person-years of construction work for station modifications
n Conversion will maintain jobs and economic benefits in the region and ensure power for future economic
growth
n Gas supply is forecast to be substantial and gas prices low for the foreseeable future
OPG commissioned the Pembina Institute to conduct a sustainability analysis of the supply of up to two
million tonnes per year of wood pellets from Ontario. The study found:
n The supply of biomass fuel given the study assumptions, does not result in systemic decline in forest
carbon - it meets the United Nations Framework Convention on Climate Change (UNFCCC) definition of
renewable
n The biomass fuel pathway is a modest source of carbon
n OPG requires biomass fuel to meet the UNFCCC definition of renewable
n Wood must be sourced from suppliers that have third party certification that forest management
practices are sustainable
n Biomass will be stored under cover therefore no odours are anticipated
n Existing roadworks capacity and infrastructure are currently capable of handling significantly higher truck/
traffic volumes. Construction traffic can be accommodated
n Compared to coal, the fuel pathway results in reduced airborne emissions including nitrogen oxides,
sulphur dioxide and metals, and reduced greenhouse gas emissions
n Noise: Reduced because of expected low levels of operation, distance from receptors
n pH (acidity/alkalinity) of effluent will be maintained within regulatory limit
For more information on the Thunder Bay Generating Station Conversion Project, visit www.opg.com; email conversion@opg.com or call
Chris Fralick, Plant Manager, Northwest Thermal at 807-625-6400.
Ontario Power Generation Inc. May 2012
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