Weyburn-Midale CCS Project - Expert Group on Clean Fossil ...

Overview of CanadianPolicy and <strong>Project</strong> Activities inCarbon Capture and Storage (<strong>CCS</strong>)2009 APEC Clean Fossil Energy Technical and Policy Seminar12-14 October 2009, Incheon, Republic of KoreaDr. Frank Mourits, Natural Resources Canada (NRCan)

2Presentation Overview Background Importance of <strong>CCS</strong> Opportunities and Challenges Overview of <strong>CCS</strong> Initiatives in Canada R&D Demonstration <strong>Project</strong>s Collaboration with industrial, provincial andinternational partners Policies and Regulation Conclusion

3<strong>CCS</strong> will help Canada meet itsenergy and environmental needs Energy production is one of the cornerstones of theCanadian economy, but leads to GHG emissions Challenge: reconciling an economically important energysector with climate change objectives <strong>CCS</strong> could help balance Canada’s energy,environmental and economic goals“Carbon capture and storagetechnology holds enormouspotential to reduce ourgreenhouse gas emissions as weuse our energy resources to powerour economy.”Prime Minister Stephen Harper, Feb. 2009$100billionTotal ExportsTotal exportsCanada’s primaryenergy exports (oil,gas and electricity)as proportion ofTotal Exports (2008)

4Canada has aggressive goalsfor reducing GHG emissions• Committed to reduce its GHG emissions 20%below 2006 levels by 2020 and 60-70% by 2050290 Mt20%Business as usual emissionsCanada’s GHG Goals*Based on most recent data - does not account for recent economic downturn

5Great potential for <strong>CCS</strong> to reduce GHGemissions in key industrial sectorsMt of CO 2 Equivalent1200100080060040020001990Canada’s Business As Usual (BAU)GHG Emissions to 203019952000200520102015202020252030OilsandsOil & GasElectricityIndustrialAgricultureTransportationCommercialResidentialOtherEnvironment Canada (July 2008)*Based on most recent data - does not account for recent economic downturnThese 4 sectorsaccount for almost50% of Canada’sBAU Emissions<strong>CCS</strong> could lead tosignificant GHGreductions in thesesectors<strong>CCS</strong> in the oilsands:a unique Canadianchallenge

6<strong>CCS</strong> is an integrated system oftechnologies . . .Capture Transport StorageVariouspossibletechnologiesand costsfor eachstep• Post-combustion• Pre-combustion• Oxy-fuel• Pipelines• Road• Rail• Ship(Notpreferred)Most expensive: Up to ~~$100-150+ per $25/tonne CO 2tonne CO 2 (pipelines)• Enhanced oilrecovery• Depleted oil and gasreservoirs• Saline aquifers• Unmineable coalseams~ $5/tonne CO 2Capital costs for most large-scale <strong>CCS</strong>demonstrations range from $500M - $1B+

7. . . which are each at differentstages of development.TransportPipelinesCapturetechnologiesrequire themostdevelopmentMarket MaturityCaptureUnmineablecoal seamsOxy-fuelStorageDepleted oil andgas reservoirs,saline aquifersPost-combustionPre-combustionR&D Demonstration CommercializationEnhanced oilrecoveryMaturetechnologyTechnology Maturity

8Canada has a natural <strong>CCS</strong>advantage…SourcesSinksMany large point sources are located near potential storage sites

9...and has already considerableexperience with CO 2 injection and storageCommercial Enhanced OilRecovery (EOR) – injecting CO 2Commercial acid gas injectionfrom natural gas processing –50+ operations, 1 Mt/yr of CO 2totalPilot EOR – injecting CO 2Deep Saline FormationStorage projects – early stages;some initial test wellsPilot Enhanced CoalbedMethane (ECBM) –completed<strong>Weyburn</strong>-<strong>Midale</strong> – 2.8 Mt/yr;also site of IEA CO 2Monitoringand Storage <strong>Project</strong>Major research underway toevaluate CO 2storage offshore inEastern Canada (Nova Scotia).

10...but there are numerouschallenges Costs Not yet commercially viable as an integratedsystem Few large-scale demonstrations exist Lack of pipeline infrastructure Regulatory frameworks not yet in place Public acceptance Time pressures: new builds and capital stock turnover

11<strong>CCS</strong> policy in Canada:an overviewA suite of interdependent initiatives to create theenvironment for implementing <strong>CCS</strong>Research andDevelopment(R&D)Demonstration<strong>Project</strong>sCollaboration withprovincial,industry, andglobal partnersLegislation andRegulation

12Federal Funding for <strong>CCS</strong>Research & Development Federal funding for <strong>CCS</strong> R&D - $55M Funding sources: Program of Energy Research andDevelopment (PERD); ecoENERGY Technology Initiative(ecoETI, 2007) <strong>CCS</strong> research at NRCan CanmetENERGY labs IEA GHG <strong>Weyburn</strong>-<strong>Midale</strong> CO 2 Monitoring and Storage<strong>Project</strong> (2000-2011) North American Carbon Storage Atlas <strong>Project</strong> (Canada,U.S. and Mexico, 2012)Clean Energy Fund (2009): $150M for R&D a portion will likely go to <strong>CCS</strong> (yet to be announced)

13Federal funding forlarge-scale demonstrations Significant federal funding for large-scale demos ecoENERGY Technology Initiative (ecoETI, 2007) $151M for cofunding small-scale field trials and essentialpre-demonstration engineering work (FEED studies),which will lead to large-scale demonstrations Budget 2008 $240M for Boundary Dam <strong>Project</strong> (amine capture from100 MW rebuilt coal-fired boiler, followed by EOR) $1.3 billion government-industry partnership one of the world’s first and largest integrated <strong>CCS</strong> projectsat a coal-fired power plant (1 Mt/yr by 2015) Clean Energy Fund (2009) $650M for clean energy demos, primarily large-scale <strong>CCS</strong>

14Locations of <strong>CCS</strong> projects fundedby ecoETI programFort Nelson Exploratory <strong>Project</strong>(Spectra Energy Transmission)Alberta Saline Aquifer <strong>Project</strong>(Enbridge)Pioneer <strong>Project</strong>(TransAlta)• Genesee Post-CombustionDemo Plant• IGCC power plant (CapitolPower, formerly EPCOR)Heartland Area Redwater <strong>Project</strong>(ARC Resources)Integrated Carbon Capture and EnhancedOil Recovery (Enhance Energy)CO 2Injection in Heavy Oil Reservoirs(Husky Energy Inc.)Belle Plaine IntegratedPolygeneration <strong>CCS</strong><strong>Project</strong> (TransCanada)Saline AquiferEnhance Oil RecoveryIEA <strong>Weyburn</strong>-<strong>Midale</strong>Monitoring and Storage<strong>Project</strong>

15Clean Energy FundAnnounced in Budget 2009 ($1 billion over 5 years)Co-funding (public-private) initiative; focus on collaboration3 Components: Large Scale <strong>CCS</strong> Demonstration <strong>Project</strong>s ($650M)- to support 2-3 projects that are at/near full commercial scale- Announced last week: Shell Canada $1.35 billion Quest<strong>Project</strong> (Scotford oilsands upgrader near Edmonton, Alberta).Federal Gvt: $120 million; Alberta: $745 million Research and Development ($150M)- Four targeted areas, incl. <strong>CCS</strong>. Details to be announced Demonstration projects in renewable energy and cleanenergy systems ($200M)

Provincial Funding of <strong>CCS</strong> Research,Development and Demonstration Alberta $2 billion fund to encourage construction oflarge-scale <strong>CCS</strong> projects to reduce emissionsfrom coal-fired electricity plants, oilsandsextraction sites and upgraders by up to 5 milliontonnes annually by 2015 $159M for ……… Saskatchewan $7M towards $12M ??? Centre at University ofRegina Saskatchewan-Montana <strong>Project</strong>

17Federal collaboration withprovinces and industryCanada-Alberta ecoENERGY <strong>CCS</strong> Task Force January 2008 report includes recommendations for industrygovernmentcollaboration on <strong>CCS</strong> (e.g., $2B)Alberta <strong>CCS</strong> Development Council Appointed in April 2008; developed a <strong>CCS</strong> implementation planfor Alberta; final report released in July 2009Council of Energy Ministers (CEM) Established Canadian <strong>CCS</strong> government-based Network (June2009) to coordinate and accelerate <strong>CCS</strong> in Canada SaskPower (Boundary Dam <strong>Project</strong>) - $240M (2008) Nova Scotia Geological Research - $5M (2008) University of Calgary <strong>CCS</strong> Research - $5M (2008)

18 International CollaborationEndorsed G8 commitment to launch 20 <strong>CCS</strong>demonstration project worldwide by 2010 Canada hosts G8 in 2010Clean Energy Dialogue (CED) with U.S. February 2009 agreement to work collaboratively on clean energytechnology research, development and deployment, including <strong>CCS</strong>Legal member of the Global Carbon Capture and StorageInstitute (G<strong>CCS</strong>I) in Australia Global centre of expertise for accelerating deployment of <strong>CCS</strong>demonstration projects worldwide ($100M per annum)Participates in International Fora International Energy Agency (IEA); Carbon Sequestration LeadershipForum (CSLF); Asia Pacific Partnership (APP); Asia Pacific EconomicCooperation (APEC)

19Federal GHG reductionregulations Canada committed to reduce its GHG emissions 20%below 2006 levels by 2020 and 60-70% by 2050Also driven by commitment to achieve 90% of electricityfrom non-GHG emitting sources by 2020Significant regulatory work underway by EnvironmentCanada, leading up to COP15 (Copenhagen, Dec. 2009)Policy framework being developed will focus onproviding incentives for technologies like <strong>CCS</strong>A Technology Fund will likely be created as acompliance option

20 Conclusion <strong>CCS</strong> is of great strategic importance to Canada There are a number of challenges associated with<strong>CCS</strong> implementation Total of $3.3 billion currently being allocated inpublic funding from federal and Albertagovernments for large demonstration projects The federal and provincial governments areworking to address these challenges through:R&DCollaborationDemonstrationsPolicies and Regulations

Thank you for your attention!Questions?Frank MouritsNatural Resources Canadafmourits@nrcan.gc.ca

APPENDIXDetails of <strong>Project</strong>s Funded byecoENERGY Technology Initiative(ETI)

23ecoETI projects:saline aquifer storageARC Resources Heartland Area Redwater <strong>Project</strong> (HARP)CO 2 capture from one or multiple industrial sources in Alberta’sIndustrial Heartland, NE of Edmonton, and injection into thecarbonate Redwater Leduc reef (several million tonnes per year)TransAlta Pioneer / Wabamum Area Sequestration <strong>Project</strong>(WSAP)post-combustion (chilled ammonia) capture of 1 Mt/y CO 2 from theKeephills coal-fired power plant in the Wabamun Lake area SE ofEdmonton, and injection into Nisku Formation carbonates as well asCO 2 -EORCapital Power Genesee <strong>Project</strong> and Enbridge Alberta SalineAquifer <strong>Project</strong> (ASAP)post-combustion CO 2 capture from a new IGCC coal-fired powerplant (1 Mt/y) and injection into Nisku Formation carbonate aquiferSE of Edmonton

24ecoETI projects:saline aquifer storage (cont’d)Spectra Energy Fort Nelson projectcapture of 1.2 to 2 Mt CO 2 with H 2 S from Spectra’sFort Nelson gas plant in NE B.C., and injection intoKeg River Formation carbonate aquifer--------------------------------------------------------------------The following project is not funded by ecoETI, but receives federal fundsfrom Sustainable Development Technology Canada:Aquistore projectcapture of CO 2 from the COOP refinery in Regina,Saskatchewan, and injection into a deep aquifer inthe Williston basin (aquifer storage)

25ecoETI projects: CO 2 -EOREnhance Energy / Northwest projectcapture of CO 2 from bitumen upgrader(s) and fertilizer plants inAlberta’s Industrial Heartland NE of Edmonton, and storage in CO 2 -EOR operations, including construction of a CO2 pipeline (~2 Mt/yincreasing to 15 Mt/y)Husky Lloydminster projectcapture of CO 2 from Husky’s heavy-oil upgrader and ethanol plant andstorage into heavy oil reservoirs in the Lloydminster area (300 kt/y)TransCanada Polygeneration projectengineering and design work for a polygeneration plant in BellePlaine, Saskatchewan, which will gasify petcoke to produce electricity,hydrogen, steam and sulphur. Captured CO 2 to be used for CO 2 -EORor stored in saline aquifers