Electric supply key to boosting quality of life.

Fuelling the world is all about providing access to energy. Many of the world's poorest countries require improved access to energy, specifically electricity, to increase their economic growth and quality of life. Coal, as the most important fuel for electricity generation and a vital input into steel production, will have a major role to play in meeting future world energy needs.

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Currently supplying almost 40 per cent of the world's electricity, coal is the world's most abundant and widely distributed fossil fuel. Current proven world coal reserves, enough for more then 160 years at current consumption rates, are estimated to be in excess of 950 billion tonnes distributed over more than 50 countries.

The abundance, affordability and geographical and political diversity of coal are crucial to long-term energy security. Many other energy sources are clustered in areas of unrest or are more susceptible to supply and transportation disruptions.

Environmental impacts associated with our energy consumption must also be addressed. The coal industry is actively involved in improving environmental performance through the use and continued development of clean coal technologies. Two of these technologies have the potential to provide alternative pathways to the near-zero emissions systems of the future, plus they provide the means of improving energy conversion efficiency by combined production of multiple products.

Coal gasification technology can yield hydrogen for use as feedstock for refineries and upgraders, carbon dioxide for enhanced oil recovery and syngas for power generation. Coal liquefaction produces gasoline and diesel, and provides a viable substitute for oil when prices are high. This technology can reduce a country's dependence on imported oil by using indigenous coal resources, as has been done in South Africa and is being adopted increasingly in China.

Constructive partnerships between energy producers, consumers and governments will be essential to meeting global energy demand, achieving energy security and improved environmental performances in the 21st century. An example of this is SaskPower's $1.4-billion government/industry partnership to rebuild and re-power a major coal-fueled power generation unit at Boundary Dam power station near Estevan.

The demonstration project will reduce SaskPower's greenhouse gas emissions by about one million tonnes per year, and carbon dioxide captured by the project will be used in enhanced oil recovery in the adjacent oil fields. The proposed demonstration of carbon capture technology is one of several projects being implemented around the world to develop solutions to reduce carbon dioxide emissions. Additionally, the energy security benefits of coal-fired power generation will continue to be realized.

On the local level, Saskatchewan coal sales in 2007 totaled in excess of 11 million tonnes with more than 95 per cent dedicated for use in power generation. Small industry and domestic markets grew, as lower-cost energy sources are a priority for consumers.

Significant developments in other industrial mineral areas also occurred during 2007. Whitemud Resources continued development of their Gollier Creek kaolin project. The deposit, located southeast of Assiniboia, is being developed to produce high reactivity cement-grade metakaolin that enhances the performance of cement used in construction and oil and gas wells. Construction began in late 2006 and production started earlier this year.

The sole remaining producer of sodium sulphate in the province, Saskatchewan Minerals at Chaplin, expects their 2008 production to be similar to 2007 levels in spite of a continued decline in the demand for powdered detergent in North America.

The next decade will see adoption of several new technologies with the purpose of improving energy efficiency and reducing emissions. The ability to adapt to these changes will continue to be a prerequisite for a healthy industrial minerals sector in Saskatchewan.