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MESSAGE FROM THE PRESIDENT AND CEO
To be an environmental leader.
I’m proud to release our 7th Annual Environmental Performance Report. This report highlights our accomplishments, our ongoing commitment to the environment, our focus on our environmental efforts and opportunities for future improvement.
Through our Environmental Performance Reports, Hydro demonstrates not only the commitment within the Hydro Group to environmentally-sound practices and good stewardship of our natural resources, but also our commitment to ensure that we report on our environmental activities to stakeholders.
Throughout 2006, we spent considerable time on our corporate planning process which focused the company around eight long-term corporate goals. While many of those goals focus on specific aspects of our business, one goal intersects and impacts our entire organization: To Be an Environmental Leader.
A key measure of Hydro’s impact on the environment is our sulphur dioxide emissions from thermal generation. In 2006, Hydro took a number of steps to reduce sulphur emissions from our operations, including: switching to a lower-sulphur fuel at the Holyrood Thermal Generating Station; pursuing wind generation opportunities to help reduce the amount of fuel burned at the Holyrood plant; investigating environmentally-friendly energy solutions for our isolated diesel systems; aggressively promoting energy efficiency and conservation; and advancing the Lower Churchill Project.
In 2006, we outperformed our target for reducing sulphur emissions at the Holyrood Thermal Generating Station, achieving almost a 60 per cent reduction in emissions compared to 2005. This achievement was possible for a number of reasons: increased hydro generation due to increased water in our reservoirs; lower energy demand; and the change to a cleaner, lower-sulphur fuel. The move to a 1 per cent sulphur fuel from 2 per cent at the Holyrood plant will reduce our sulphur emission rate by 50 per cent and particulate emission rate by up to 60 per cent.
During the year, Hydro took significant steps toward the integration of wind generation into our electricity systems and awarded two contracts for over 50 megawatts of wind power on the island. Together, these projects, when on stream in 2009, will displace 300,000 barrels of oil annually at the Holyrood plant, reduce sulphur dioxide emissions by over 900 tonnes, carbon dioxide by over 140,000 tonnes, and generate green energy for thousands of homes. Hydro also started monitoring the wind potential in Labrador. In addition, the company secured approval and funding for a research and development project to integrate hydrogen with wind power and diesel generation.
The Lower Churchill resource is one of the highest value, undeveloped hydro resources in Canada. Hydro is moving ahead with the necessary activities to achieve sanction of the Lower Churchill Project in 2009 and deliver first power in 2015. The Project has the potential to generate a long-term supply of reliable, clean, renewable energy to power approximately 1.5 million homes and displace 16 megatonnes of carbon dioxide emissions annually from comparable coal thermal production.
We strengthened our focus on energy conservation in 2006 and are taking a leadership role in providing conservation programming in the province. Our new energy conservation manager is working with partners including Newfoundland Power, the provincial government and other stakeholders to develop a coordinated approach for conservation education and awareness initiatives. Through HYDROWISE, our energy conservation program, we launched a new energy efficiency website and provided incentives and financing for home insulation upgrades.
I would like to commend our dedicated team of employees for their ongoing commitment to their work, the environment and our organization. Protection of our environment goes hand-in-hand with our mandate to provide our customers with safe, reliable, least-cost electricity. I encourage you to read this year’s report and as always, I welcome your feedback.
Ed Martin
President and CEO
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