Carbon Market Review
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Northcarbon America’s premier carbon publication North America’s premier publication Inaugural Issue 2016
SaskPower leads by example $20 million up for grabs for breakthroughs in C02 Integrated Test Center breaks ground in Wyoming
THE QUEST Energy improves and enriches our lives in countless ways. In many places around the world, energy keeps people alive. But that simple relationship between energy and our way of life is changing. In this century, we have to figure out how to produce more energy with less carbon. Lower carbon forms of energy will continue to play a greater role in our lives. But as long as hydrocarbons are demanded for energy we have a responsibility to learn how to reduce the CO2 generated by hydrocarbons. This is why we believe in the potential of carbon capture and storage to help address climate change. With our co-venturers Chevron and Marathon and the support of the Governments of Alberta and Canada, we have just started up the first carbon capture and storage facility in the oil sands. We call this project Quest. Quest will safely capture and store more than one million tonnes of CO2 underground each year. This is equivalent to the annual emissions of about 250,000 cars. We know this is just the beginning but it’s part of a growing global number of carbon capture and storage projects. There is a long and challenging road ahead of all of us. But we are committed to the Quest. www.shell.ca/quest
Carbon Market Review North America’s premier carbon publication
is published by DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 www.delcommunications.com President
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Contents 4 Message from the editor, Shayna Wiwierski 5 Message from the Minister of the Economy; Minister Responsible for SaskPower, the Honourable Bill Boyd
8 Message from Alberta Energy Minister Margaret McCuaig-Boyd
9 Carbon capture world:
Opening up on many fronts
12 SaskPower leads by example:
Boundary Dam CCS project a first
14 The role of CCS in the quest for cleaner energy
18 Captured CO to produce ‘green’ crude 2
from depleted Alberta reservoirs
20 Company offers pilot and test facilities for low carbon technologies
22 Canadian expertise: Leaders in CCS technology
24 Prairie Climate Centre maps our changing landscape
5 Innovation in Canada’s oil sands production 2 26 Reimagining carbon dioxide: XPRIZE offers $20 million for breakthroughs in CO2 conversion
28 Integrated test center construction kicks off In Wyoming
30 CO2 Solutions Inc.:
Nature’s power for carbon capture
32 Turning carbon into a solution for the cement and concrete industry
34 Skyonic’s CO capture technology: 2
Reducing emissions while generating revenues Carbon Market review • Inaugural 2016
3
editor’s message SHAYNA WIWIERSKI
P
rime Minister Justin Trudeau made history in more ways than one when he was sworn in as Canada’s 23rd prime minister. At the end of 2015, he appointed Catherine McKenna as the Minister of Environment and Climate
Change, showing both Canada and the world how important climate change in the environment is to the federal government. Climate change and the reduction of CO2 in both our nation and around the world is a huge priority for everyone. In fact, it’s so huge that virtually every major nation around the globe signed onto the Paris Agreement on climate change. We here in Canada are making headway, with the introduction of many carbon capture and storage (CCS) technologies, including those at the Boundary Dam Power Station in Saskatchewan and Shell Canada’s Quest project in Alberta. CCS is so important that there is even a contest offering up $20 million (yes, you read that correctly) to those who can create a breakthrough in CO2 conversion. So, with that being said, I would like to introduce you to the inaugural issue of the Carbon Market Review magazine. In these pages, you will find stories on carbon capture from around Canada and the United States. We look at innovative projects going on around the continent, as well as how carbon dioxide is being transferred into reusable energy to create a better world. I truly hope you enjoy this issue, and if you have any questions, concerns, or story ideas, please send them my way. Shayna Wiwierski Shayna@delcommunications.com @DELCommInc
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Carbon Market review • Inaugural 2016
Climate change and the
reduction of CO2 in both our nation and
around the world is a huge priority for everyone. In fact, it’s that virtually
so huge
every major nation around the globe signed onto the
Paris Agreement on climate change.
The Boundary Dam Power Station near Estevan, Sask., which is designed to capture one-million tonnes of CO2 a year.
MESSAGE FROM THE MINISTER OF THE ECONOMY; MINISTER RESPONSIBLE FOR SASKPOWER
THE HONOURABLE BILL BOYD
S
askatchewan’s population is at its highest level in history – more than 1.1 million people and growing. Tens of thousands of people are moving here and businesses are
investing billions. These exciting and challenging times also bring an increasing demand for power
in the province. SaskPower, our province’s primary electricity provider, is making historic investments – over $10 billion from now to 2024 – to maintain and improve our electricity system to ensure it meets the growing demand for power. All of this investment is needed as infrastructure ages and demand climbs. SaskPower added over 8,000 new customers in 2015, and new records for consumption continue to be set – another new peak was reached on Jan. 11, 2016. SaskPower is working to meet demand. At the same time, the company is developing clean electricity options to ensure Saskatchewan can continue to grow while meeting its environmental responsibilities. In October 2014, SaskPower broke new ground when it launched the Boundary Dam Integrated Carbon Capture and Storage Project at the Boundary Dam Power Station near Carbon Market review • Inaugural 2016
5
Estevan, Saskatchewan. The BD 3 project is the first commercial
All sources of power have pros and cons, and the goal is a
power plant in the world to operate with a fully integrated
diversified portfolio of options that balances reliability, cost
carbon capture unit. Boundary Dam is designed to capture
and environmental impact.
one-million tonnes of CO2 a year. As with all new technology applications, especially at commercial scale, it has taken time to reach full design performance. However, performance continues to improve and SaskPower is on track to capture approximately
This will be done in a way that works for the people of our province, balancing the priority of reaching this target with making sure residents continue to have the around-the-clock
800,000 tonnes of CO2 in 2016. Regular performance updates are
power they need.
available on saskpower.com.
As the first step to achieving this target, the plan to expand
Today, about 25 per cent of SaskPower’s generation capacity
wind power will help SaskPower add more renewable
today comes from renewable sources, including hydro and
electricity to the system, while making the best use of
wind. SaskPower has about 220 megawatts (MW) of wind
Saskatchewan’s world-class wind resource. Wind power has become much more
PHOTOS COURTESY OF SaskPower.
economic as technology has developed. SaskPower has been able to understand how wind operates on the grid so it can be added in a way that balances the priorities of maintaining a sustainable and diversified generation mix with the delivery of reliable and cost-effective power to customers. The longer-term goal is to have 30 per cent wind power capacity by 2030. Future wind generation will be developed through competitive procurement by independent power producers. Solar power is also being explored. The International Energy capacity, or enough to power nearly 100,000 homes and
Agency has said the sun could be the world’s largest source
businesses already, and about 400 homes and businesses in
of electricity by 2050. Right now, SaskPower has about four
Saskatchewan use solar power as a secondary power supply
megawatts of solar power on the system from smaller-scale
source.
customer generation programs.
This is a good start, but we are looking to do more.
SaskPower is interested in looking at utility-scale solar
Over the last year, SaskPower has worked hard to create a plan
projects for Saskatchewan as the cost of solar technology
to significantly increase the amount of renewable electricity in
comes down. The goal is to have 60 MW installed by 2021, and
Saskatchewan’s generation mix – from 25 per cent today to as
100-300 MW installed by 2030. Utility-scale solar generation
much as 50 per cent by 2030. By meeting this target, SaskPower
will be developed through competitive procurement through
will reduce greenhouse gas emissions by approximately 40 per
IPPs, potential partnerships with the First Nations Power
cent from 2005 levels.
Authority, and community-driven projects.
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Carbon Market review • Inaugural 2016
PHOTOS COURTESY OF SaskPower.
In addition, SaskPower is also looking at the potential for more hydro projects and hydro imports from other provinces. SaskPower currently purchases 25 MW of electricity capacity from Manitoba Hydro to meet a growing demand for electricity in the province’s far north. There is also an agreement with Manitoba Hydro for 100 MW of hydro power from that province beginning in 2020. As well, SaskPower has joined with Natural Resources Canada to support Saskatoonbased geothermal company Deep Earth Energy Production (DEEP) in its feasibility study of geothermal in southern Saskatchewan. DEEP is now working to further evaluate the viability of geothermal as a renewable electricity source for our province. The cost of adding more renewable power is expected to be manageable. SaskPower forecasts the impact to customers in the first year will be less than $1 per month. However, the total cost will be spread out over a period of 15 years, as the new
facilities and infrastructure and comply with new and emerging
renewable generation facilities are constructed and put into
emissions regulations.
service.
We’re prepared to meet these challenges by investing
After 15 years, the difference in customer bills will be
in SaskPower’s system, evaluating all options to replace
approximately five per cent more than it would have otherwise
conventional coal and working with private power producers,
been. The overall premium of the increased target for renewables
communities and First Nations to add more clean power.
will depend on many factors, including generation technologies,
Our ultimate goal is to continue to produce and deliver
emissions regulations, future natural gas prices, and system
reliable, sustainable, cost-effective power to the people of
integration costs. As technology improves, we anticipate that
Saskatchewan.
the costs of renewable energy will continue to fall.
More information on SaskPower’s renewable
These are exciting and challenging times ahead as we
energy plans can be found at www.saskpower.com/
continue to work to meet increasing demand, renew our aging
our-power-future/renewables-roadmap. r Carbon Market review • Inaugural 2016
7
MESSAGE FROM ALBERTA ENERGY MINISTER
MARGARET McCUAIG-BOYD
O
n behalf of the Government of Alberta, I would like to congratulate the editors of Carbon Market Review magazine on the publication of their inaugural issue. Timely information on advances in carbon
reduction technologies play an important role in the future of lower-
carbon energy – not only in Alberta, but around the world. The last few months have presented a real shift for Alberta, both in terms of our commitment and actions on climate change, and in how we are perceived in Canada and around the world. For too long, our province was thought to be lagging behind the rest of the world in environmental policy. Many people had accepted the myth that energy-producing jurisdictions cannot be environmental leaders. But Alberta has shown the world that we can, and we’ve shown that the right environmental policies can gain support from industry and environmental groups alike, while at the same time encouraging significant emissions reductions. By implementing our Climate Leadership Plan, which includes carbon pricing, ending coal pollution, capping oil sands emissions, and reducing methane emissions, Alberta is showing the world a firm commitment to addressing climate change in a way that invests in our economy and protects our environment. Congratulations once again on the launch of Carbon Market Review. I look forward to the contributions this magazine will make to Alberta’s climate leadership efforts. r
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Carbon Market review • Inaugural 2016
Carbon capture
world
opening up on
many fronts
By Leonard Melman
F
ew subjects have captured the global imagination in recent decades as has the general category of global warming (GM), or more recently, climate change (CC). Despite some prominent objectors, a general worldwide consensus has developed that the future of the world is truly at risk due to these phenomena. For example, President Barack Obama recently declared that, “…today, there is no greater threat to our planet than climate change”.
Thanks to the efforts of public personalities, such as former American vice-president Al Gore and noted Canadian environmentalist David Suzuki, and building on the impact of studies such as the United Nations’ Intergovernmental Panel on Climate Change (IPCC), concern about both GW and CC has grown to the point that as of April 2016 virtually every major nation on Earth has signed onto the Paris Agreement on climate change.
Central to virtually all important discussions regarding these ominous threats, one great concern has dominated, namely dramatically reducing carbon emissions on a truly international scale – and this goal is spawning a potentially major new industry called carbon capture. Given the ever-expanding global force behind climate change initiatives, potential growth for this new industry appears to be virtually unlimited.
Carbon Market review • Inaugural 2016
9
In essence, carbon capture can be described as preventing carbon dioxide (CO2), released by burning fossil fuels for energy generation or through industrial usage, from entering the atmosphere. Scientists have discovered three basic methods of accomplishing this goal; pre-combustion, post-combustion, and oxyfuel combustion. According to the Carbon Capture & Storage Association (CCSA) website, precombustion involves converting solid, liquid, or gaseous fuel into a mixture of hydrogen and carbon dioxide, and then burning the highly flammable hydrogen for energy generation or clean motor energy fuel, while diverting the carbon dioxide into either storage or other utilization. The CCSA described postcombustion as capturing carbon dioxide in a suitable fluid after initial combustion and oxyfuel combustion involves burning the carbon-loaded fossil fuels in pure oxygen rather than normal air, a process which produces a more concentrated CO2 stream for easier purification. Once the carbon has been captured, there are two distinctly different approaches toward its disposition. These are carbon capture and storage (CCS) and the other is carbon capture and utilization (CCU). Each method involves substantially different concepts. In terms of storage, since the potential amount of recoverable CO2 is infinitely greater than the demand represented by present applications, virtually all the
Once the carbon has been captured, there are two distinctly different approaches toward its disposition. These are carbon capture and storage (CCS) and the other is carbon capture and utilization (CCU). Each method involves substantially different concepts.
excess CO2 involved would be considered to be waste material, which then must be permanently removed to secure storage facilities. One method of storage is the injection of CO2 into underground geologic formations, particularly including vast areas which have been left empty due to prior extraction of petroleum or mineral resources. Another is the injection of CO2 into deep underground natural gas formations, which would be designed to maximize recovery of the natural gas, while simultaneously providing storage for the left-behind CO2. It has been estimated that there are less than two-dozen CCS facilities presently in operation, under construction, or in the planning stage, and all are relatively small in comparison to the potentially vast recoveries involved. The largest of these CCS operations involves the total capture to date of only 27 million tons of carbon, while the American Department of Energy (DOE) suggests the total future volume of carbon available for storage in the USA alone will ultimately total between 1.8 and 20 trillion tons. Countries with the most-advanced current or planned operations include such resource-rich nations as Canada, Saudi Arabia, America, and Australia. CCU is the other important area of activity within the carbon capture field and many observers believe it may have greater possibilities than CO2 storage. A recent paper from the Center for Low Carbon Futures (CLCF) identified several promising areas of future significant utilization applications including bio-oils, chemicals, fertilizers, and alternative fuels – all of which appear capable of reducing fossil fuel usage.
10
Carbon Market review • Inaugural 2016
Specific research projects appear to hold particular promise. Examples of these research areas include the use of captured CO2 in combination with mineral and industrial waste products to form construction compounds; applying CO2 to cure concrete, which would also allow for the permanent storage of otherwise waste CO2 within the concrete; reduction of alkalinity in aluminum mining slurry; enhancing conversion of algae into protein foods; development of alternative fertilizer products and conversion of CO2 in combination with hydrogen to produce methanol. Another promising area of ongoing development is the concept of using captured CO2 for desalinization, which could help alleviate growing clean drinking water shortages. One of the more esoteric developments in the CCU field is the application of recovered carbon to the promising field of graphene product development. Nobel prize winning research showed that graphene itself is an ultra-thin material with strong bonding characteristics which might spawn entire new industries and captured carbon could become an essential contributor to that, promising new areas of industry and commerce. Both CCS and CCU face similar problems since an enormous amount of scientific investigation must take place before economic processes can be discovered and incorporated in order to handle the staggering volumes of CO2 which might result from successful carbon capture operations. Infrastructure problems, such as transporting captured CO2 to either storage or final utilization alone, must be overcome. One ideal solution would be to use pipelines, but America’s congress recently noted that, “…There are important unanswered questions about pipeline network requirements, economic regulation, utility cost recovery, regulatory
While some believe that deep underground storage would be secure into the almost infinite future, tragedies have occurred in the past, such as a 1986 leakage of CO2 from natural storage in Cameroon, which killed 1,700 people.
classification of CO2 itself, and pipeline safety.” Other problems involved in CCS could be particularly daunting, particularly the matter of possible future leakage of stored CO2. While some believe that deep underground storage would be secure into the almost infinite future, tragedies have occurred in the past, such as a 1986 leakage of CO2 from natural storage in Cameroon, which killed 1,700 people. In order to resolve the question of how research and developments related to carbon storage and utilization are to be financed, governments are being petitioned to impose various taxation measures to raise these required funds, and the Canadian government is taking a leading role in developing sources of revenues. Some ideas in that direction include the imposition of carbon taxes, and also creating a regulatory framework which would discourage fossil fuel usage by making it more expensive to emit CO2 than to capture it. When the U.S. DOE figures noted earlier are considered, it becomes apparent that the entire subject of carbon capture could truly become one of the most important areas of action scientists, industrialists, governments, regulators, and the general public may face in coming years. It could also become one of the most important sources of both scientific achieve ments and environmental advancement we may ever witness in our lifetimes. r
Carbon Market review • Inaugural 2016
11
SaskPower
leads by example
By Melanie Franner
Boundary Dam CCS project a first
C
Re-invention at its finest
is designed to capture up to 90 per
The Boundary Dam Power Station was
cent of the CO2 produced by the coal
initially built in the late 1950s. Approval
unit. For now, SaskPower operates the
for a retrofit to integrate carbon capture
facility at various levels in order to meet
Within Saskatchewan, it accounts
and storage (CCS) technology into the
its federal emission regulations and its
for 44 per cent of the province’s total
facility was granted in late 2010. Work
commitment to its CO2 offtaker. In 2016,
generation – and produces 70 per cent
commenced in the spring of 2011 and
SaskPower plans on capturing 800,000
of SaskPower’s greenhouse gas (GHG)
was completed in the fall of 2014.
tonnes, or the equivalent of taking
oal-fired generation represents some 40 per cent of electricity production globally.
emissions. But change is underway, thanks to innovative leadership
The result is the ability to produce
200,000 cars off the road.
at least 110 MW of power (enough to
“If any progress at all is to be made in
from SaskPower that has resulted in
power 100,000 Saskatchewan homes),
reducing GHG emissions with a view
extending the life of one of the coal
while significantly reducing the impact
to reducing humankind’s influence
units at the Boundary Dam Power
on the environment. SO2 emissions from
on climate change, then managing
Station, while dramatically reducing
the coal process will be reduced by 100
emissions from the electricity sector
the release of sulphur dioxide (SO2) and
per cent once that part of the process
of the global economy is essential,”
carbon dioxide (CO2) emissions.
is fully commissioned, and the facility
states Ian Yeates, SaskPower’s director
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Carbon Market review • Inaugural 2016
of supply development (carbon capture
Petroleum Technology Research
“SaskPower has indeed led the way
and storage). “The problem is the
Centre’s Aquistore Project.
with the first commercial investment in
“Aquistore currently has a license for
carbon capture for the electricity world,”
300,000 tonnes of sequestered CO2,”
says Yeates. “But while SaskPower
explains Yeates. “This, however, will be
has been the first, there are others
adjusted upwards as necessary.”
embarking on the same journey.”
Yeates is quick to add that CO2 has
Yeates is quick to cite a couple
expense associated with carbon capture is not insignificant. However, the expense associated with the reduction of any emissions – such as NOx, SO2, particulates, Hg, etc. – is also significant, but has been borne in the past. GHGs need to be similarly managed and built into the cost of production on a global basis.” According to Yeates, the carbon capture
been successfully stored underground in Saskatchewan for more than 15 years. The province’s own Weyburn-Midale project is a prime example. It began storing CO2 underground in 2000.
American examples, as well as the Shell Quest project in Alberta that takes CO2 from an oil sands facility near Edmonton and simply sequesters it. With others slowly following in the wings, SaskPower is dedicated to continuing to grow the widespread use and acceptance of CCS technology. “Already, our CCS project has hosted groups from Japan, the U.K., Australia, Europe, and from other places around the world,” concludes Yeates. “SaskPower, in partnership
facility came at a cost of approximately
First commercial-scale
with BHP Billiton, has initiated a CCS
$900 million and the power plant
CCS project
Knowledge Centre in Regina, designed
The SaskPower Boundary Dam project
to help accelerate the development
is the first commercial-scale CCS
and application of CCS technology
project of its kind in the world.
worldwide.” r
refurbishment at about $600 million. But the planned lifespan of the facility has been extended by decades – until 2044. Future refurbishments and refits are possible to prolong its life even further. Key to the success of the Boundary Dam project is the ability to store the captured CO2 indefinitely. To do so, SaskPower has made use of a nearby, deep-underground injection well, called the SaskPower Carbon Storage and Research Centre. A portion of the
Carboniq provides comprehensive solutions to modern carbon challenges.
captured CO2 from the Boundary Dam
• Provision of technical services for all aspects of carbon management, from strategic planning to technological evaluation and project management.
project is being sold and transported
• Support in emissions measurement, inventory and reporting.
by pipeline to the nearby oilfields, where it is being used for enhanced oil
• Provision of outsourced solutions, from innovative technological development to emissions compensation structures.
recovery. The remainder is being stored
• Development of standalone projects in biofuels and bio-derived products.
via the injection well – permanently and safely 3.4 kilometres underground. It is monitored continuously by the
to reconcile energy and the environment www.carboniq.com Phone : 514-781-1797 info@carboniq.com Carbon Market review • Inaugural 2016
13
The role of
CCS in the quest for
cleaner energy
Quest, located near Edmonton, will capture and store more than onemillion tonnes of CO2 each year.
By Michael Crothers
I
n late 2015, 195 nations agreed to an historic global climate change deal, now known as the Paris Agreement. While
the agreement provides a way forward for governments and society to drive low-carbon opportunities, meeting its ambitious targets will require significant effort. Visionary
solutions will be needed to reduce greenhouse gas (GHG) emissions. At Shell, we are investing in one of these solutions.
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Carbon Market review • Inaugural 2016
The International Energy Agency has said that the cost of tackling climate change would be 40 per cent higher without having CCS. They have also said that CCS alone has the potential to deliver 17 per cent of the world’s required CO2 mitigation by 2050, and 50 per cent by 2100. Carbon capture and storage (CCS) is one of the best options available for mitigating global GHG emissions. It is one of the only known technologies that can significantly reduce carbon emissions from industrial sectors of the economy, including power generation, cement, chemicals and refining, iron and steel, and upgraders. The financial cost of not having CCS in the energy mix is substantial. The International Energy Agency has said that the cost of tackling climate change would be 40 per cent higher without having CCS. They have also said that CCS alone has the potential to deliver 17 per cent of the world’s required CO2 mitigation by 2050, and 50 per cent by 2100. The Paris Agreement also reinforces the need for CCS in its call for stretch targets. Currently, there are some 15 large-scale CCS projects in operation globally with seven under construction. The combination of more CCS projects worldwide, further development of renewables, and improved energy efficiency are critical if the world is to stay below the 2°C global
Quest is a model for industry, community, and government partnership to develop new technology to combat climate change. Carbon Market review • Inaugural 2016
15
temperature increase that scientists tell us we must not
funds to developing renewable energy sources instead.
exceed.
Other low carbon technology including renewables benefits
Shell has been a leader in CCS development for over a decade as part of our overall commitment to curtail carbon emissions. Our CCS portfolio includes projects either
from public funding, and this is important to drive down the cost. With continued development, CCS will be competitive in dollars per tonne of CO2 removal.
planned or operational in Norway, Australia, and Canada.
The world is in an energy transition. In the coming years,
Shell’s Quest project in Alberta is a key element of Shell’s
renewables will become a larger part of the energy system
portfolio. In November 2015, we celebrated Quest’s official
and we will continue to see the shift to more gas, less coal
start-up alongside dignitaries from more than a dozen
and less carbon-intensive oil – for example, this will happen
countries.
in the oil sands as more low-carbon initiatives come on
Quest is located at our Scotford Upgrader, near Edmonton,
stream. And while technologies develop, hydrocarbons
where bitumen from our oil sands operations is processed
can help address current shortcomings for renewables in
into refinery-ready feedstock. Quest will capture and
cost, volume, availability, intermittency, storage, and energy
store more than one-million tonnes of CO2 each year. That
density.
represents one-third of the upgrader’s total emissions and is
The reality is that we will continue to rely on fossil
equivalent to the emissions from about 250,000 cars.
fuels to some degree for the foreseeable future through
What’s more, Quest provides a blueprint to encourage global
the transition to a lower-carbon economy. That reality
adoption of CCS. As part of the funding agreement with the
underscores the critical need for CCS as it is the only
government of Alberta, Shell is openly sharing details on
technology that tackles the absolute level of CO2 stock
Quest’s design, construction and operation to benefit future
in the atmosphere, and it can be deployed quickly. Other
CCS projects worldwide. Quest is a model for industry,
technologies improve efficiency and help to slow down the
community and government partnership to develop new
rate of CO2 increase, but do not reduce the total volume of
technology to combat climate change.
CO2 in the atmosphere.
Quest’s genesis dates back to the turn of the millennium
The International Panel on Climate Change (IPCC) in its fifth
when Shell first began evaluating options to capture CO2
assessment report says that without any CCS projects the
from the Athabasca Oil Sands Project, which involves Shell
cost of achieving the warming target of 2°C increases by as
Canada Energy (operator and 60 per cent owner), Chevron
much as 138 per cent. Meanwhile, the cost of implementing
Canada Limited (20 per cent), and Marathon Oil Canada
CCS could come down as new commercial facilities come
Corporation (20 per cent). From the outset, the project
online, resulting in optimized designs and greater cost
was designed to reduce emissions, with its own gas-fired
efficiencies.
cogeneration for electricity and extensive energy efficiency
Unfortunately we have yet to reach a tipping point on CCS
measures. CCS was identified as a potential carbon
adoption. As worldwide commercial-scale deployment of
reduction opportunity, but at the time there were few global
CCS is still in early days, government and public support
projects and many challenges to overcome.
for project development are essential to encourage early
Early demonstration projects are not for the faint-of-heart
demonstration projects. These are necessary to achieve
and public dollars are critical to enable early projects, as
lower costs and greater efficiencies through economy of
we have seen with solar and wind power. Shell was able to
scale.
make Quest a reality with funding support of C$865 million from the governments of Alberta and Canada on top of the company’s own investment, and cooperation to develop the policies to enable carbon sequestration in Alberta.
We also know that society will struggle to achieve its climate goals without countries each implementing a meaningful global price for carbon. A promising outcome of COP21 is that Article 6 of the Paris Agreement introduces
While CCS technology has been used for many years, two
the necessary foundation to support the development
existing challenges limit widespread adoption. The first is
of a global carbon emissions market. A robust price on
the current high cost of building CCS projects, which leads
CO2 would encourage countries to adopt CO2 reduction
some to argue that industry and government should allocate
technologies like CCS. The technology can be deployed
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Carbon Market review • Inaugural 2016
across a range of sectors, including the coal, steel, chemical
panel served primarily to provide input on the measurement,
and cement industries, making its broader deployment
monitoring and verification program to assure safe storage of
critical.
CO2. They were able to provide insight into public concerns
Of course, governments are beholden to their citizens when
around the project and served as valuable liaisons between
it comes to the use of public funds. To that end, government
Shell and the community.
and industry need to demonstrate that CCS is a cost-effective
A key concern heard throughout our consultative process was
way to achieve climate change goals. Projects like Quest will
around safety and potential for local environmental impacts
be helpful in this regard as they contribute to knowledge on
from the project. Speaking with the public about the CCS
costs associated with various GHG reductions.
process and its safety record is an important step towards
The second challenge to widespread CCS adoption is the
gaining local stakeholder acceptance. Just as developers
need for more collaboration on CCS technology, public
of wind and solar projects around the world have found,
acceptance and regulation frameworks. Although CCS
environmental benefits must be reconciled with the concerns
technology is not new, there is strong rationale for industry,
of locally impacted stakeholders.
government and other sectors to work together so that new CCS projects build upon the knowledge gained from previous ones in order to reduce front-end project costs for follow on projects.
With Quest, Shell worked hard to help the public understand that CCS is not an intrusive or risky process; it simply captures CO2 emissions and stores them permanently underground. CCS has been in use without incident for over
Garnering public support in particular will be essential to
40 years. Developing a robust measurement, monitoring
future development. As companies around the world look to
and verification program that was externally verified by
develop CCS projects, they can look to Quest as an example of how to earn social acceptance. For the Quest project, Shell started speaking with a wide variety of stakeholders in the area very early on in project planning stages. Those first face-to-face conversations were critical to provide information, build trust and understand initial reactions. We also sought the input of external experts who could help us credibly build understanding about a technology that was familiar to us, but rather foreign to most people who know little about subsurface geology. Starting in 2008, we began a series of meetings, open houses
international risk management firm DNV also helped quell concerns. These takeaways will be valuable to other countries exploring how to advance CCS more rapidly. We want CCS to reach its full potential, which is why we are taking an active role in sharing knowledge gained through projects like Quest. As an example of this commitment, Shell Canada and the U.S. Department of Energy have announced plans to collaborate on field tests to validate advanced technologies for underground storage of CO2.
and workshops to provide project information and respond to
As the world grapples with combatting climate change, CCS
questions. Based on stakeholder input, we made more than 30
needs to be part of a global mitigation strategy, along with
alterations to Quest’s pipeline route, and showed community
the development of renewable sources, improved energy
members that we took their interests to heart.
efficiency, and an eventual shift in how we power our lives.
In 2012, we established a community advisory panel to
Shell believes CCS, in combination with other GHG reduction
maintain public engagement through Quest’s development
opportunities, is critical to achieving carbon reduction targets
stage. The panel consisted of a cross-section of stakeholders,
in a cost-effective way. And if leaders need a roadmap for
including landowners, regulatory bodies and representatives
developing and deploying CCS, they can find one in Canada’s
from the academic, business, and public service sectors. The
Quest project. r
Michael Crothers is the president of Shell Canada and country chair.
Carbon Market review • Inaugural 2016
17
Captured CO2 to produce
‘green’ crude
from depleted Alberta reservoirs
By David Howell
P
icture a barrel of Alberta oil
“We think we’ve got as low a carbon
sequestered more than one kilometre
that emits less CO2 when it is
(fossil-fuel) energy as there is.”
underground.
The ACTL is a 240-kilometre pipeline
“These are mature reservoirs that in
that will transport high-purity
many cases have been around for 40
compressed CO2, captured from
or 50 years,” Jabusch says. “In many
industrial emitters in the Industrial
of them, 30 to 50 per cent of the oil has
That’s part of the important green-oil
Heartland region northeast of Edmonton,
been recovered, but there’s a lot of oil
story Alberta-based Enhance Energy Inc.
to an oilfield at Clive, in central Alberta,
left. CO2 is a feedstock that will help us
is telling with its Alberta Carbon Trunk
where it will be used in enhanced oil
Line (ACTL).
recovery.
“We sequester more CO2 for every barrel
The CO2 will be injected into depleted
of oil that we produce than that barrel
reservoirs, producing oil that can’t be
will generate when it’s fully combusted,”
reached by conventional methods.
says Kevin Jabusch, company president.
All the CO2 will remain permanently
refined and consumed than the amount of CO2 stored safely
underground during the same barrel’s production.
get another 10 to 20 per cent of the oil out of the ground. “As a result of that, we’ve got an oil revenue stream that we use to help offset the cost of carbon capture. What we’ve created here is a cost-effective carbon capture system.” The ACTL has been designed with the ultimate capacity to capture and safely store up to 40,000 tonnes of CO2 per day, or 14.6 million tonnes per year. That’s equivalent to removing 2.6 million cars from Alberta’s roads. In the project’s first phase, expected to be complete by the end of 2017, the ACTL will transport 5,000 tonnes per day (or 1.7 million tonnes per year) of CO2 captured from an Agrium Inc. fertilizer facility at Redwater and the nearby Sturgeon Refinery, currently being built by the North West Redwater Partnership. CO2 volumes from those two suppliers will allow Enhance to produce 15,000 to 20,000 barrels per day of light crude oil within the project’s first seven to eight years. That would equate to 150 million barrels of oil over the next 30 years. But the company has aims to become
18
Carbon Market review • Inaugural 2016
The ACTL project has received funding support from both the Alberta Government and the Government of Canada to build the backbone a major oil producer, so they will look
infrastructure for immediate emission
to add more sources of CO2 to the
reductions and future CO2 management.
pipeline network as they become
“I’ve spent 35 years in oil and gas,
available. Jabusch says the hope is that
and have been involved in enhanced
in future, facilities along the route will
oil recovery, in gas processing, in
be designed to capture CO2 that can be
midstream,” Jabusch says. “The ACTL
supplied to the system.
is an opportunity to take what I’ve done
At full capacity, the ACTL would
— and what I know, and what I like to
provide access to reservoirs capable
do in oil and gas — and do it just a bit
of producing an additional one-billion
better. We have the chance to make
barrels of high-quality light crude oil,
a real and significant difference, and
generating provincial royalties in the
there is no better place to do it than in
order of $15 billion.
Alberta.” r
Enhance Energy makes CCS happen. Enhance Energy specializes in using industrial CO2 for Enhanced Oil Recovery, the most economic form of Carbon Capture and Storage. Contact a member of our team to help you explore the most economic and environmentally responsible solutions for your CO2.
Contact 403.984.0202 or info@enhanceenergy.com or visit www.enhanceenergy.com
Carbon Market review • Inaugural 2016
19
A
s more companies focus attention on reducing greenhouse gas emissions in industrial processes,
there is an increasing need for facilities
Company offers
pilot and test facilities for
low carbon
technologies Pilot testing facility for carbon capture and conversion technologies.
where low carbon technologies can be developed and tested. CMC Research Institutes (CMC) accelerates low carbon technology development by providing field and pilot testing facilities for capture, conversion, and storage equipment. CMC is currently building two research institutes – one targeted at technologies that ensure the secure underground storage of carbon, while the second is for capture and conversion technologies. The Containment and Monitoring Institute (CaMI) is headquartered in Calgary, Alberta and focuses on the safe storage of underground fluids, including CO2. The jewel in the crown of this institute is a unique field research station located two hours southwest of Calgary. When complete in the summer of 2016, a small plume of CO2 will be sequestered at a depth of 300 metres for observation purposes. Infrastructure at the site includes two observation wells for monitoring technologies (such as fibre optic and downhole seismic sensors) and three ground water monitoring wells. For a fee, researchers and technology developers can test and calibrate all ranges of monitoring technologies in order to quantify the detection threshold of CO2 in shallow to intermediate depths.
20
Carbon Market review • Inaugural 2016
Field Research Station Phase 1 layout.
Technologies developed and refined at the site can also be applied to other sectors, such as the steamdriven, in-situ oil sands industry to ensure underground steam chamber containment, the shale gas industry to monitor hydraulic fracturing (including fugitive methane migration and potential methane contamination of groundwater), and in other applications, such as subsurface disposal of process water and acid gas. The Containment and Monitoring Institute is also able to offer clients rapid, field-based gas and water testing through its mobile
B.C. When operational in 2017, the
conversion systems. Engineers and
geochemistry laboratory. The
Technology Commercialization and
business development experts will be
laboratory’s state-of-the-art equipment
Innovation Centre will house equipment
available onsite to offer advice and
to allow clients to build pilot plants
support.
to test solvent systems, membranes
To learn more about CMC and its
and sorbents for CO2 capture, as well
services, email admin@cmcghg.com,
as chemical and electrochemical CO2
or call 403-210-9784. r
will detect and analyze atmospheric, casing and soil gases, including CH4, CO2, H2S, N2 and O2. Other capabilities include groundwater, surface water and produced fluid sampling and analysis, as well as isotope fingerprinting. In Vancouver, B.C. CMC is partnering with the University of British Columbia and BC Research Inc. to develop
REDUCING INDUSTRIAL
GREENHOUSE GAS EMISSIONS
CMC RESEARCH INSTITUTES
the Carbon Capture and Conversion Institute. This institute will help clients scale-up and pilot technologies
CMC offers field-testing & pilot facilities for:
that reduce the cost of capture, and
• Monitoring technologies for underground storage of fluids, including CO2
also those that use captured CO2 to
• Solvent systems, membranes & sorbents for CO2 capture technologies
produce valuable, revenue-generating
• Chemical & electrochemical CO2 conversion systems
products. As part of the capture and conversion institute, BC Research is constructing a pilot plant facility in Richmond,
Mobile Geochemistry Laboratory for rapid field-based analysis: • Soil & atmospheric gas collection & analysis (eg. CH4, CO2, H2S, N2, O2) • Groundwater, surface water & produced fluid sampling & analysis • Isotope fingerprinting capabilities cmcghg.com | cmcinfo@cmcghg.com | 403.210.9784 Carbon Market review • Inaugural 2016
21
Canadian expertise
Leaders in CCS technology By Melanie Franner
P
ost-combustion carbon capture and storage (CCS) technology for coal-fired generation facilities has been in development for decades. It is now commercially viable – and SaskPower’s
Boundary Dam CCS project represents a fine example of this. But, according to CanmetENERGY, this is but one type of CCS technology and there are many more still in the making. Take-charge attitude As a federal government laboratory in Natural Resources Canada, CanmetENERGY explores ways to lessen the environmental impact of fossil-fuel combustion technologies. The organization has been working on CCS technology as far back as the 1990s. “The technology has certainly come a long way over the years,” says Dean Haslip, director general of CanmetENERGY’s Ottawa laboratory. “Our role is to try to stay on the leading edge. For example, we are no longer working on the research and development of post-
The 15-bar oxy-fire direct contact steam pilot facility. Lessons learned from research using this plant is advancing the high-pressure oxy-fire research under development at CanmetENERGY-Ottawa.
22
Carbon Market review • Inaugural 2016
combustion CCS technologies. We believe that there are
“We are working with companies now that are
commercially viable post-combustion technologies available
building or planning to build pilot plants of between
right now and that there are companies in Canada and
five and 50MW scale,” he says. “That’s typically the
around the world that have that technology well in hand.”
demonstration stage, with commercial development usually
Haslip anticipates that more post-combustion CCS technologies will become available in the near term, as well as improvements in existing technologies. CanmetENERGY’s current focus, he adds, is on oxy-fuel technologies.
just around the corner.” Forward thinking Another technology that has caught the eye of CanmetENERGY, although still in its infancy, is “chemicallooping” technology. The agency is working on this in
“We believe that oxy-fuel technology will be the next major advancement in CCS,” explains Haslip, who adds that the benefits of it include reducing the amount of energy used and lowering capital costs. “Specifically, we’re looking at high-pressure oxy-fuel technology.”
collaboration with the U.S. Department of Energy. “This technology can be looked at as an oxy-fuel technology in the sense that it is not trying to remove CO2 from mixed flue gas,” explains Haslip. “The process, however, does not require a pure oxygen stream. It uses an oxygen carrier, like
According to CanmetENERGY, high-pressure oxy-fuel
the mineral ilmenite, to bring oxygen from the outside world
combustion using oxygen to combust fuels at elevated
to react with the fuel. Chemical looping may prove to be a
pressure represents a class of technologies that will typically
more energy-efficient and lower-cost CCS technology than
result in higher energy output through more efficient
high-pressure oxy-fuel technology. We’re still in the relatively
chemical reactions and fewer processing steps to produce a
early stage at this point.”
pure, concentrated CO2 stream ready for geological storage
CanmetENERGY may be focused on emerging CCS
or utilization. However, active R&D and demonstrations are still required to make these technologies commercially available.
technologies, but it is also broadening its outlook to look at other CCS applications. It is also investigating carbon capture and utilization (CCU) for applications where storage
CanmetENERGY identifies the advantages of high-pressure oxy-fuel technology as including the opportunity to generate competitively priced power using a wide range of fuels, while reducing the negative environmental impacts associated with conventional power generation. Additionally, the cost of electricity associated with CO2 capture for airfired combustion with amine scrubbing or ambient pressure oxy-fuel are more than 60 per cent higher than without capturing CO2. However, it estimates that these costs are only about 25 per cent for high-pressure oxy-fuel systems. Their goal is to drive the incremental costs to zero in the future through further R&D.
is a less-attractive option. “Our emphasis has historically been on CCS for coal-fired plants,” concludes Haslip. “With Canada reducing the number of coal-fired plants, we need to look at opportunities for these technologies in other areas, like power, steam, and heat in the oil and gas industry for example. We also need to increase our application of carbon capture utilization and storage (CCUS) in other parts of the industrial sector. Right now, CCUS technologies have been used primarily on the power-generation side. But we will eventually need to expand that focus to include industry. It may be a few years away yet, but it is coming.” r
Haslip is quick to add that the high-pressure oxy-fuel technology may be available in as little as three to five years.
Dean Haslip, director general of CanmetENERGY’s Ottawa laboratory.
Prairie Climate Centre maps our changing landscape
T
he reality of climate change is increasingly evident
nature of climate changes that are expected to occur. Users can
in the Prairie provinces and Canada as a whole, and
see how hot their town or farm will be in the coming decades,
climate models clearly indicate that very substantial,
and over the next few years will include interviews with
if not dramatic changes will occur in the coming
stakeholders across the region exploring their perspectives
decades. That is true even if collectively we reduce global
on forthcoming change. Indeed, the changes anticipated for
carbon emissions.
the prairie region – which will be released soon – command
In fact, the prairie region may be particularly susceptible to
attention.
the negative impacts of climate change – including droughts,
“Perhaps the most startling information presented on the
floods, heat waves, and other extreme events —and so it is
website is just how hot the prairie summers are expected to
imperative that potential stakeholders be aware of and be
get in the coming decades, especially if global greenhouse gas
prepared for the anticipated changes. Unfortunately, adaptation
emissions are not reduced dramatically,” says Dr. Danny Blair, a
planning and implementation has been limited to date,
University of Winnipeg climatologist and the scientific director
increasing the vulnerability of our economy, infrastructure,
for the Prairie Climate Centre. “Many people expect very cold
social systems and natural
weather to become uncommon, but
environments to the
they don’t realize that we may get
adverse consequences
summers as hot as those in
of a changing climate.
the southern plains of
This situation is largely
the United States.”
the result of a lack
Just as importantly,
of resources and
a team of researchers
expertise available
and networked partners
to citizens, planners,
affiliated with the centre
and policymakers.
are available to offer advice
The Prairie Climate
and policy guidance to
Centre (PCC) has
governments, businesses,
launched a new interactive
and community members.
website to address this gap.
The focus of the centre is to
The University of Winnipeg
collaborate with Manitobans
and the International Institute for
and Canadians who will be
Sustainable Development (IISD) are the founding partners in
affected by climate change so they might position themselves
this joint initiative.
to take advantage of new opportunities, identify and rank
“The Prairie Climate Centre offers cutting-edge research, outreach and planning initiatives that move our region
risks, build capacity, and enhance community, economic and environmental resilience.
from risk to resilience,” says Dr. Ian Mauro, a University of
Earlier this year, Great West Life generously donated $250,000.
Winnipeg researcher and outreach director at the PCC. “Our
The government of Manitoba committed $400,000 to enable
holistic approach, linking climate data with human and
applied research, mobilize knowledge, seek additional partners
ecological systems, is combined with an inclusive and multi-
from across the region, and build the team of experts that will
media communication strategy that is designed to increase
develop informed planning and policy advice to those who
awareness and sustainability.”
need it. The Prairie Climate Centre is hosted by the Richardson
The PCC’s Climate Atlas website provides stakeholders in Manitoba, Saskatchewan and Alberta with up-to-date highquality data, maps, videos, and toolkits depicting the 24
Carbon Market review • Inaugural 2016
College for the Environment at The University of Winnipeg. Visit the Prairie Climate Centre’s Climate Atlas at www.climateatlas.ca. r
Innovation in
By Tammy Schuster
Canada’s oil sands production
P
artnerships and collaborations
“Water use is a very big thing for
reconfirmed their commitment to
can make the difference in
us because of how it’s related to
COSIA. In doing that, they have
decreasing the environmental
greenhouse gases,” says Wicklum. “The
reconfirmed their commitment to
impact in Canada’s oil sands.
more water used, the more water has
improving environmental performance
to be recycled, and it becomes more
in oil sands operations.
Cultivating such partnerships is Canada’s Oil Sands Innovation Alliance (COSIA), a hub wherein organizations and institutions can collaborate,
energy intensive, so decreasing water use by 36 per cent is very meaningful progress in a short amount of time.”
COSIA also has over 40 third-party and associate organizations that help bridge communication and foster relationships
innovate, and implement technologies
Wicklum says essentially when one
within innovation communities across
in order to reduce energy use and
company working inside of COSIA
the globe. Wicklum says there are more
associated greenhouse gas emissions in
develops a new technology, that
partnerships to be made and one of
the oil sands operations.
company gives the royalty-free
the organization’s goals for 2016 is to
use rights of that technology to the
continue to develop this functional
other COSIA companies to use in
network of innovators.
Based out of Calgary, Alberta, COSIA is an alliance of 13 oil sands companies that accounts for over 90 per cent of the daily production in the Canadian oil sands.
the oil sands. They do so with the understanding that those companies will develop a novel technology and share those patent use rights with
It is an independent organization that
them. “Essentially, a company shares
has committed to developing innovative
one technology, and receives 12 back in
technologies where gaps currently exist
return,” he says.
in four areas: water, land, tailings, and greenhouse gases.
Since COSIA’s conception in 2012, companies have shared
“The end result of this collaboration is
819 technologies that have cost
to emit fewer greenhouse gases, use
approximately $1.3 billion to develop. “If
less water, disturb less land, and speed
they were to license those technologies
reclamation,” says Dr. Dan Wicklum,
to each other, that dollar amount would
chief executive, COSIA.
certainly be much higher.”
Currently, COSIA has approximately 245
While the concept of collaboration
environmental improvement projects
may still need to be fostered and
active with the aim of filling defined
emphasized, Wicklum says at the
innovation gaps. “The projects develop
four-year mark all companies have
Since 2012, companies have made approximately 347 implementation decisions based on the technology they had access to inside of COSIA. “Not only is it the sharing of information and technologies, it’s the implementation of these technologies, which is translating into less environmental impact.” Learn more about Canada’s Oil Sands Innovation Alliance at cosia.ca. r
Dr. Dan Wicklum, chief executive, COSIA.
knowledge, practices, and technologies needed to accelerate performance improvement,” says Wicklum. Between 2012 and 2014, technologies developed and implemented through the organization have shown oil sands companies decreased fresh water usage by 36 per cent in situ operations. And water withdrawal from the Athabasca River has been reduced by 30 per cent in mining operations. Carbon Market review • Inaugural 2016
25
Reimagining C
onvert carbon dioxide into useful products, take home $20 million. This is the challenge put forth by the
carbon
dioxide
organizers of the NRG COSIA Carbon
XPRIZE. California-based XPRIZE has been creating and managing global incentive prize competitions for over 20 years. Prizes catalyze exponential solutions to grand challenges by identifying an audacious target for anyone to try and meet, and then paying the innovators that can solve that challenge. Capitalizing on the power of the crowd and models that reduce risk will help accelerate de-carbonization of the global economy. By harnessing genius of the crowd, we can rapidly identify energy breakthroughs because we exponentially increase both the number of innovators and the diversity of problem-solving approaches.
XPRIZE offers $20 million for breakthroughs in CO2 conversion
Open innovation – crowdsourcing, challenge grants, hackathons, and others – gives innovators everywhere more shots on goal. And all we need is one shot to go in. About the NRG COSIA Carbon XPRIZE The NRG COSIA Carbon XPRIZE is a four-and-halfyear global competition open to any team that can demonstrate the conversion of post-combustion CO2 -
By Paul Bunje and Marcius Extavour
from either a coal-fired or natural-gas -fired power plant into valuable products. The winning team will convert the largest quantity of CO2 into one or more products with the highest net value.
26
Carbon Market review • Inaugural 2016
Teams enter the competition by registering
and investor communities that can scale
before July 15, 2016. In round one, teams
these ideas to ultimately reduce the cost
submit an electronic document package and
of CO2 conversion, mitigation and removal.
are evaluated on their technology concept,
XPRIZE has found that teams who enter
as well as their business and operations plan.
the competition benefit tremendously from
The most promising teams will advance to
the focused support of investors, media,
round two, during which teams will have one
technology communities, and the public
year to demonstrate an operating process that
momentum gained with every XPRIZE.
consumes 200 kg of CO2 per day at a facility of their choosing.
The Carbon XPRIZE will accelerate development of breakthrough technologies
Creating lasting hubs of
that turn CO2 emissions into valuable
carbon innovation
products, proving to the world that innovation
In round three, up to 10 teams will
can enable solutions to climate change.
demonstrate their technologies at
Ultimately, we intend that this competition
approximately two ton/day scale at one of
will stimulate new markets for CO2 mitigation
two new test facilities built specifically for
technologies, attract new investment, and
the competition. Teams will have the choice
inspire other industries, governments, and
to demonstrate either at the Integrated Test
educational institutions to take concrete
Center, co-located with the Dry Fork Station
positive actions to combat climate change. At
coal-fired power station in Wyoming, USA, or
the same time, we hope to help shift public
at a similar facility co-located with a natural
attitudes to be more optimistic about the
gas power station in Western Canada (site to
future of energy and how we tackle climate
be announced).
change.
Both test facilities are expected to have long-
At XPRIZE we believe a new type of energy
term positive impact for the CO2 conversion,
system is possible: one that is sustainable,
removal, and mitigation communities in North
accessible, reliable, and abundant. Even
America and abroad. Set to open during round
with the existing sunk costs of energy
three of the XPRIZE in early 2018, this pair of
infrastructure, it is only a matter of time
facilities will be among a very small number
before more efficient, more dynamic, and
of such facilities anywhere in the world that
more sustainable approaches to energy
are equipped to test, develop, and refine
come to the fore. But climate change doesn’t
CO2 conversion technologies at pilot and
wait for action. To act on climate now, we
demonstration scales. The initial two ton/day
must embrace today’s tools that accelerate
to five ton/day CO2 capacity of these facilities
innovation, de-risk opportunities, and leverage
places them at the sweet-spot for technology
diverse investment.
commercialization, between grams-per-day
Dr. Paul Bunje is principal and senior scientist
early stage projects and megaton-per-year
at XPRIZE Foundation, where he leads energy
industry-ready facilities. This testing and
& environment prizes. Bunje is a global
evaluation infrastructure could prove to be as
thought leader in bringing innovation to
valuable and impactful in the long-term as the
solve environmental grand challenges. This
core technology innovation inspired by the
work includes leading the US $20M NRG
XPRIZE competitors.
COSIA Carbon XPRIZE and XPRIZE’s Ocean
Impact
Initiative.
The NRG COSIA Carbon XPRIZE aims not
Dr. Marcius Extavour is the director of
only to support technology game-changers
technical operations for the US $20M
carbon mitigation and CO2 conversion
NRG COSIA Carbon XPRIZE with XPRIZE
specifically, but to catalyze the markets
Foundation’s Energy & Environment group. r
Impact The NRG COSIA Carbon XPRIZE aims not only to support technology game-changers carbon mitigation and CO2 conversion specifically, but to catalyze the markets and investor communities that can scale these ideas to ultimately reduce the cost of CO2 conversion, mitigation and removal. XPRIZE has found that teams who enter the competition benefit tremendously from the focused support of investors, media, technology communities, and the public momentum gained with every XPRIZE.
CO2
Carbon Market review • Inaugural 2016
27
Integrated Test Center
construction kicks off in Wyoming Cutting-edge carbon research facility driven by public-private partnership breaks ground
L
ow-carbon energy innovation took a big step forward
generation of energy technology. In 2014, the Wyoming State
last month with the groundbreaking of the Wyoming
Legislature allocated $15 million in funding for the design,
Integrated Test Center (ITC) – a cutting-edge carbon
construction and operation of an integrated test centre
research facility being constructed alongside a coal-
to study the capture, sequestration, and management of
based power plant in Wyoming. Wyoming Governor Matt Mead, along with representatives of project partners Basin Electric Power Cooperative, TriState Generation and Transmission Association, the National Rural Electric Cooperative Association, and the NRG COSIA
carbon emissions from a Wyoming coal-based power plant. An additional $5 million commitment from private industry was required under the appropriation, which has since been secured from the Tri-State Generation and Transmission Association, in addition to $1 million pledged from the National Rural Electric Cooperative Association. Basin Electric
Carbon XPRIZE, led the official groundbreaking ceremony
is providing the host site, as well as many additional in-
on Wednesday, April 27, 2016 at the Dry Fork Power Station,
kind contributions, including engineering and construction
owned by Basin Electric Power Cooperative and the Wyoming
management services.
Municipal Power Agency.
The ITC will provide space for researchers to test carbon
The ceremony marked an exciting next phase for the ITC,
capture, utilization and sequestration (CCUS) technologies
a public-private partnership designed to foster the next
using actual coal-based flue gas – making it one of a handful of
28
Carbon Market review • Inaugural 2016
Groundbreaking at the Integrated Test Center at the Dry Fork Station coal-fired power station in Wyoming. U.S.A.
such facilities around the world and only the second one in the
facility. XPRIZE teams will use the Integrated Test Center as
United States.
their proving site in the final round of competition. The winners
Historically, researchers have found it impossible to replicate
of this $20 million prize will be those that convert the most
the conditions of a working power plant to test these
carbon dioxide into products with the highest net value. Teams
technologies, or to surmount the prohibitive cost of transferring
are also challenged to demonstrate CO2 conversion while
emissions from the plant to the lab. The ITC will provide a vital,
minimizing environmental footprint of their process, specifically
straight-shot solution to this problem.
energy, land, and water use.
CCUS represents the future of smart energy usage where
Pre-construction engineering and design work for the ITC
researchers investigate ways to not only reduce the emission
started in 2015. In March of 2016, when the Dry Fork Station
of carbon dioxide, but to monetize it as a valuable commodity.
went into routine maintenance mode, a large steel damper
The bubbles in your soda, the cement in a new building’s
was installed into the flue system that will help direct gas
foundation – these are all carbon-based products. CCUS allows
to researchers at the test centre. The ITC is scheduled to be
us to ask, What would happen if one of the drivers of climate
completed in the summer of 2017.
change could be converted to a viable product? The NRG COSIA Carbon XPRIZE is the first tenant of the
To track progress on the project or to learn more, visit www.wyomingitc.org. r
Carbon Market review • Inaugural 2016
29
CO2 Solutions Inc.
A
s concluded by Canadian and international delegates at the recent COP-21 climate change conference leading to the Paris Agreement, carbon capture is an essential
component of a global effort to reduce greenhouse gas emissions to combat climate change. However, conventional carbon capture processes based on the use of amines suffer from high costs and toxicity, which make them impractical for broad deployment. At a price of more than $60/tonne-CO2, largely owing to the large steam requirement, the cost is far above the current value of carbon taxes, and credits meant incentivize large-scale GHG reductions. Additionally, amine solvents have significant operational and environmental issues, including degradation, toxic aerosol emissions, and the creation of other liquid and solid waste products. CO2 Solutions Inc. (CSI) has developed an innovative approach to solving these challenges with a process that is positioned to unlock the true potential of carbon capture in Canada and abroad. CSI’s technology is essentially an ‘industrial lung’ which is built around the use of the extremely powerful enzyme catalyst, carbonic anhydrase (CA), which efficiently manages carbon dioxide during respiration in humans and all other living organisms. Using bioengineered variants developed by CSI, the CA is employed in a simple aqueous carbonate salt solution (similar to sea water) for CO2 capture in the solution. The physical and chemical properties of the solution allow for the use of low-grade (~80-95°C), nil-value heat from the industrial effluent source plant to subsequently strip the solution and produce pure CO2 for sequestration or reuse. This provides significant operating costs savings vis-à-vis amine processes which require high temperature, valuable steam. At the same time, by virtue of the salt solvent employed, the process is environmentally
benign with no toxic aerosols or waste products, and provides for a simplified equipment architecture. The process is protected by 48 issued patents in key industrialized markets. In the fall of 2015, CSI completed a 2,500+ hour field demonstration of the process near Montreal where CO2 was captured from the flue gases of a natural gas fired boiler. The demonstration validated the key value propositions of the technology, namely low costs through
added products such as biofuels and
reducing climate change-causing CO2
the use of hot water instead of steam for
renewable chemicals, enabled by
emissions, while not damaging a global
solvent regeneration, no waste products,
CSI’s technology. This strong support
economy dependent on fossil fuels.
and the production of high purity (99
is evidence of the robustness of the
In this context, CSI’s breakthrough
per cent+) CO2 suitable for a wide range
technology and its ability to make
technology positions carbon capture,
of uses. Based on the demonstration,
meaningful contributions to emissions
utilization, and sequestration as a
core process costs were projected at
reductions in these provinces and
viable carbon mitigation tool, enabling
$28/tonne-CO2 at a commercial scale
beyond.
emissions-intensive industries to
of 1,250 tonnes/day, or approximately the size of a typical steam generation operation for oil sands production in Western Canada. This projected cost represents an approximate 50 per cent savings vs. conventional amines, and
successfully compete in an increasingly
With 70 per cent of global energy
carbon-constrained economy.
demand currently met through the burning of carbon-based fuels, and
Further information on CO2
demand predicted to double by 2035,
Solutions can be found at
the world faces a growing challenge:
www.co2solutions.com. r
is below Alberta’s recently announced $30/tonne carbon levy. With this demonstration of the technology completed, CSI is now moving towards the first commercial
Nature’s Power for Carbon Capture
deployments in Canada and internationally. Supporting this work are grants totalling $17.4 million from the Climate Change and Emissions Management Corporation (CCEMC) and Sustainable Development Technology Canada (SDTC) for larger-scale industrial demonstration in Alberta and Quebec. In addition, CSI has received a commitment for a further $15 million over three years from the Government of Quebec (Green Fund) to commercialize methods of converting CO2 into value-
• Low cost, environmentally friendly enzymatic CO2 capture process • Provides high purity (99%+) CO2 for industrial and food and beverage use • Enzyme-accelerated carbonate solvent with no toxic aerosol emissions or waste products • Technology protected by 48 issued patents
905-320-6260 jonathan.carley@co2solutions.com www.co2solutions.com Carbon Market review • Inaugural 2016
31
Turning carbon into a solution
for the cement and concrete industry
S
By Thomas Schuler, President and CEO, Solidia Technologies, Inc.
olidia Technologies® is a cement and concrete
applications around the world. The production of cement is
technology company that has developed patented
responsible for three to five per cent of total global carbon
processes that produce a sustainable cement and
emissions, making it the world’s second-largest CO2 emitter.
concrete that is cured with carbon dioxide. As the
The industry knows this is a challenge they must address,
cement industry pivots towards the carbon economy, our
and they have set goals to dramatically reduce their carbon
processes offer a cost-effective and competitive solution.
footprint. Our technology addresses an urgent business and
Concrete is the most widely used material in the world after water. Cement is used to bind concrete together, giving it the strength and durability needed for a wide variety of
32
Carbon Market review • Inaugural 2016
societal need, while profitably supporting an industry seeking to improve production methods that haven’t changed significantly in nearly 200 years.
Changing the industry requires a change with minimum
and more durable; Solidia is the first to become commercially
cost, maximum impact, and added value. Solidia’s patented
viable. An array of partners from the public and private
processes start with sustainable cement, cure concrete with
sectors and academia are helping shift the discovery from
CO2 instead of water, reduce carbon emissions of cement and
theory to application, with assistance in applied research,
concrete combined up to 70 per cent, and recycle 60 to 100
materials testing and characterization, manufacturing
per cent of the water used in production. Produced with a
logistics, general marketing and funding. R&D collaborators
non-hydraulic, lower-energy and lower-emission chemistry,
include LafargeHolcim, CDS Group, DOT’s Federal Highway
Solidia Cement™ is more sustainable than traditional, ordinary
Administration, DOE’s National Energy Technology Laboratory,
Portland cement (OPC). Solidia Concrete™ cures with CO2
the EPA, Rutgers University – where the original generation
instead of water. When one tonne of Solidia cement is used in
of the technology was invented – Purdue University, Ohio
a concrete product, it permanently captures and stores 250 to
University, and the University of South Florida.
300 kilograms of CO2. About 30 per cent of the cement weight is captured CO2. Driven by our philosophy, “It can’t just be green, it has to be better”, we have overcome the biggest obstacles to disruptive innovation: ease and cost of adoption. Our processes are easy to adopt anywhere in the world using the industry’s existing infrastructure, raw materials, formulations, production methods and specifications, while enhancing product performance and saving time, energy, water, and money. Solidia concrete performs better, is more durable and cost-effective than
many trends driving demand for cement and concrete across the globe. Industry players require regional raw material sources and more efficient technologies to compete. Cement manufacturers and small-scale CO2 emitters will also welcome the technology as a means of mitigating the carbon tax. Targeting the estimated US$1 trillion concrete and US$300 billion cement markets, our initial technology focus was on unreinforced precast applications, including pavers and blocks. Today we are developing commercial processes for reinforced applications, including aerated concrete, railroad ties, architectural panels, and hollow core extrusions. Solidia’s
traditional concretes, and typically
IP portfolio comprises four U.S. patents and more than 100
cures in 24 hours versus the traditional
patent applications worldwide.
28 days. Offering a turn-key solution, we are lining up the needed cement, CO2, and equipment partners. The Cement Sustainability Initiative of the World Business Council for Sustainable Development set 2050 CO2 reduction targets for the global cement industry. If the global industry were to adopt Solidia’s technologies today, it would achieve those 2050 goals quickly, and Far left: Solidia ConcreteTM pavers coming off the press. Above right: Solidia ConcreteTM pavers being measured. Top: Solidia ConcreteTM pavers ready for curing.
Rapid urbanization and infrastructure development are two of
save approximately two-trillion litres of water per year.
Honors include Global Cleantech 100, R&D Top 100, CCEMC Grand Challenge First Round finalist, Katerva Award finalist, MIT’s Climate CoLab shortlist, NJBiz Business of the Year and a Best Place to Work in NJ. Our investors include KPCB, Bright Capital, BASF, BP, LafargeHolcim, Total, Bill Joy, and other private investors. The cement and concrete industry is re-inventing itself through new and efficient processes and partnerships with innovative startups to not only reverse its environmental impact, but make improvements to the whole supply chain of building development. Our job isn’t only to develop sustainable technologies; it’s to make it possible for industry to adopt them. Attracting investors for green technology is not easy. Persuading industries to change is even harder. Trying to do both as a start-up can be daunting, but at Solidia, we’re doing it. Our technology effectively commoditizes one of the world’s most noxious pollutants. Alongside our early adopters, we
For over 50 years, scientists have tried
hope to offer a model for how to commercialize a sustainable
to cure concrete with CO2 knowing the
innovation and inspire others to seek solutions within the very
resulting product would be stronger
problems they face. r Carbon Market review • Inaugural 2016
33
Skyonic’s
CO2 Capture Technology
Reducing emissions while generating revenues
F
rom Powerpoint presentation to plant; trash to treasure; from harmful emissions to
environmentally responsible chemical production. Skyonic has developed technology solutions for the capture and permanent sequestration of carbon dioxide in mineral form (carbonates). And it has recently made the leap from a new venture technology start-up to a revenue generating, economically viable, carbon capture and chemical manufacturing business. So, what does Skyonic do? Simply put, we capture CO2 emissions, clean the flue gas, and turn it into baking soda (sodium bicarbonate). The full process is paired with existing chlor-alkali technology, which also produces hydrochloric acid, caustic soda and bleach. In addition to reducing CO2 emissions, the SkyMine® process removes acid gases such as sulfur oxides (SOx), nitrogen oxides (NOx), mercury and particulates. Our unique approach to relatively simple chemistry and science is now showcased in our first fully constructed commercial-scale plant, Capitol SkyMine. Capitol SkyMine is located adjacent to Zachry Corporation’s Capitol
34
Carbon Market review • Inaugural 2016
Aggregates Cement Plant, a coal-fired
received two grants totaling $28M for
newly constructed industrial emitting
cement manufacturing facility in San
carbon capture and beneficial reuse
sources, such as oil and natural gas
Antonio, Texas, USA. A single pipe
through the American Recovery &
refineries, steel mills and power plants,
connects the two plants, which directs
Reinvestment Act (2009-2011) to help
and the production ratio of chlor-alkali
the CO2 from the cement plant to Capitol
us develop this first-of-its-kind chlor-
chemicals can shift to reflect specific
SkyMine. It is designed to directly
carbonate plant. Dr. Julio Friedmann,
supply and demand market conditions.
capture 75,000 tonnes of CO2 per year,
former principal deputy assistant
To meet increasingly stringent sulfur
which is approximately 15 per cent
secretary for fossil energy at the DOE,
reduction standards, it is an ideal
of the cement plant’s exhaust stream,
visited the plant in November and noted
and offset an additional 225,000 tonnes
that “carbon utilization is going to help
per year by displacing chemicals that
America reduce its carbon footprint
would be manufactured in a traditionally
while creating jobs in the market.
carbon-intensive method. The plant was
Skyonic is the emblem for good projects
engineered so that when it is operating
and good companies in the field of
as designed with specific parts of the
carbon utilization.” While the business
chlor-alkali unit being run at a lower
model of the plant is to generate profits
than typical energy rate, the process
and function without any government
will be carbon negative. This is based
subsidies or assistance, the ARRA grant
upon comprehensive lifecycle analyses
helped Skyonic develop and complete
gas production, steel manufacturing,
using International Energy Agency (IEA)
our first commercial-scale project. Over
cleaning agents, swimming pool
calculations to assess the energy penalty
250 direct jobs were created during
chemicals, and municipal water
of the full process. And as of early 2016,
design and construction, and another
systems. We are currently selling all four
we have been granted over 30 patents
200+ permanent positions were added
chemicals meeting the required specs of
issued around the world, verifying our
into the general U.S. economy.
our customers.
Besides providing emission reduction
Skyonic is a privately funded corporation
We are one of the U.S. Department of
solutions, the SkyMine® process is
with headquarters in Austin, Texas. Visit
Energy’s recent success stories. Skyonic
scalable, can be built next to existing or
us online at www.skyonic.com. r
innovative processes.
source of sodium bicarbonate for dry sorbent injection installations. Based on preliminary calculations, one SkyMine® plant can produce enough sodium bicarbonate to scrub SOx emissions for three-times 500MW plants using DSI technology. Our products can be used in multiple markets including animal feed, food and pharmaceuticals, oil and
Index to advertisers Carboniq.........................................................13 CMC Research Institutes..............................21 CO2 Solutions.................................................31 Enhance Energy Inc......................................19 Shell Canada......................................IFC, OBC
Carbon Market review • Inaugural 2016
35
UP HERE, TOO MUCH CO2 IS A PROBLEM
DEEP DOWN THERE, WE HAVE A SOLUTION
THE QUEST FOR LESS CO2 One answer to rising CO2 emissions could be an innovative technology called Carbon Capture and Storage. CCS captures CO2 from industrial facilities and stores it deep underground, safely and permanently. The Quest CCS Project will take more than one million tonnes of CO2 a year from the Scotford Upgrader and store it 2 km underground, helping reduce the carbon footprint of the Athabasca Oil Sands Project. And it’s contributing to global CCS knowledge, as we all work towards a lower carbon future. Learn more at: www.shell.ca/quest
CARBON CAPTURE AND STORAGE. PUTTING CO2 IN ITS PLACE.