The Highvale coal mining operation in western Canada will close by the end of 2021. (TransAlta Corp.)

Power producer to close coal mine as part of switch to natural gas

TransAlta Corp. will stop extracting coal from its Highvale coal mine in western Canada by Dec. 31, 2021 as part of its plan to change all of its coal-fired plants to natural gas. Burning coal emits the greenhouse gas, carbon which contributes to climate change.

“TransAlta aligns its corporate goals with the UN Sustainable Development Goals and has  been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on climate Change Management,” reads a statement from the company.

Canada’s tax on carbon emissions has encouraged power generators to switch from burning coal to green power sources like wind energy. (iStock)

Carbon tax a motivator

Mitigating climate change may be one motive for converting its coal plants, but in a conference call, the company’s CEO Dawn Farrell said the change was “really related to…the economics of producing power…on coal with the carbon tax.” She noted that the corporation currently faces a tax of $30 per tonne, which would increase to $40 next year and $50 the year after. “Coal plants get less economic and they’re less flexible in a merchant market,” she said. 

In October 2018, the Canadian government announced it would impose a carbon tax on those provinces and territories that did not already have one. “Starting next year, it will no longer be free to pollute anywhere in Canada,” said Prime Minister Justin Trudeau at the time. The tax provoked much controversy but the TransAlta move suggests it is having the intended effect of nudging corporations to change their operations to reduce emissions.

TransAlta produce wind, hydro power

TransAlta has enhanced its efforts by becoming one of Canada’s largest producers of wind power and, in the western province of Alberta, it is the largest producer of hydro-electric power.

TransAlta owns, operates electrical power generation assets in Canada, the U.S. and Australia.

With files from Canadian Press.

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