Developing Ccs Projects in Alberta
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DEVELOPING CCS PROJECTS IN ALBERTA JUNE 23, 2021 WELCOME AND AGENDA CHRISTINA STAIB SENIOR CLIENT ENGAGEMENT LEAD GLOBAL CCS INSTITUTE (GCCSI) AGENDA: DEVELOPING CCS PROJECTS IN ALBERTA Time (MDT) Topic 1:00 – Welcome and Agenda 1:05pm . Christina Staib, Senior Client Engagement Lead, GCCSI 1:05 – A Vision for CCS in a Low Carbon Economy 1:15pm . Cory Channon, International Director of Climate Change Policy Solutions, International Brotherhood of Boilermakers 1:15 – Policies Impacting CCS in Canada and Alberta 2:00pm . Drew Leyburne, Assistant Deputy Minister for Energy Technology, NRCan, Government of Canada . Justin Wheler, Executive Director Climate Implementation and Compliance, Alberta Environment and Parks, Government of Alberta 2:00 – CCS Projects: Experiences to Date 2:30pm . Jeff Pearson, President – Wolf Carbon Business Unit, Wolf Midstream . Stephen Velthuizen, Corporate Relations – Downstream Lead, Shell Canada BREAK (5 minutes) 2:35 – CCS Plans and Possibilities 3:25pm . Iain Macdonald, Principal Carbon Relations Advisor – Oil & Gas Climate Initiative, Shell . Candice Paton, M.Sc., P.Eng., Director, Regulatory Affairs & External Regulations, Enhance Energy . Brett Henkel, VP Strategic Accounts, Svante . Joy Romero, VP Technology & Innovation, Canadian Natural 3:25 – Takeaways and Closing 3:30pm . Jeff Erikson, General Manager – Client Engagement, GCCSI | 3 THE GLOBAL CCS INSTITUTE Backed by governments, businesses and NGOs International Non-Profit Mission: To accelerate the Climate Change Think Tank global deployment of CCS 7 locations Advocacy Intelligence Connections 100+ MEMBERS www.globalccsinstitute.com | 4 CCS IS NEEDED AT SCALE . Current CO2 capture and storage rate is ~40 million tonnes per annum (Mtpa) . Total CO2 capture and storage needed by 2100 is 350 to 1200 billion tonnes (total) . Annual rate of capture and storage needs to increase 100X by 2050 CO2 CAPTURE CAPACITY IN 2020 AND 2050 BY FUEL AND SECTOR IN THE IEA SUSTAINABLE DEVELOPMENT SCENARIO Source: Global CCS Institute | 5 CCS PROJECTS AROUND THE WORLD | 6 A VISION FOR CCS IN A LOW CARBON ECONOMY CORY CHANNON INTERNATIONAL DIRECTOR OF CLIMATE CHANGE POLICY SOLUTIONS INTERNATIONAL BROTHERHOOD OF BOILERMAKERS CORY CHANNON INTERNATIONAL DIRECTOR OF CLIMATE CHANGE POLICY SOLUTIONS INTERNATIONAL BROTHERHOOD OF BOILERMAKERS [email protected] 1-780-886-4717 POLICIES IMPACTING CCS IN CANADA AND ALBERTA DREW LEYBURNE ASSISTANT DEPUTY MINISTER FOR ENERGY TECHNOLOGY NRCAN, GOVERNMENT OF CANADA JUSTIN WHELER EXECUTIVE DIRECTOR CLIMATE IMPLEMENTATION AND COMPLIANCE ALBERTA ENVIRONMENT AND PARKS, GOVERNMENT OF ALBERTA MATT BRIGHT (MODERATOR) SENIOR ADVISER – ADVOCACY AND COMMUNICATIONS GCCSI Centres & Pilot Projects Canada: A CCUS Snapshot CanmetENERGY-Devon – NRCan Genesee Carbon Conversion Centre (GC3) - Capital Power (under development) AB Carbon Conversion Technology Centre – Capital Power, ENMAX, InnoTech Alberta Operating Commercial Scale Projects Carbon Engineering’s Innovation Centre Quest – blue hydrogen production at bitumen (under development) and Air to Fuels Pilot upgrader (CNRL, Chevron, Shell) Project CO2MENT – Svante, Lafarge, Total Alberta Carbon Trunk Line – CCUS hub (Wolf, Enhance, NWR & Nutrien) CMC Carbon Capture & Conversion Institute Weyburn-Midale – CO2 injection, monitoring, VeloxoTherm CO2 Capture Demonstration - EOR & storage (Whitecap, Cardinal) Husky, Svante Boundary Dam – CO2 capture at coal-fired power station (SaskPower) CMC CaMI Field Research Station International CCS Knowledge Centre PTRC Aquistore Project Shand Carbon Capture Test Facility CO2 Capture Unit Resolute Forest Product St-Félicien pulp mill – Saipem Canada CanmetENERGY-Varennes – NRCan Award-Winning Canadian CCUS Companies NRCan’s Funding Partners CCU demonstration platform – Énergie et COSIA-NRG Carbon 2021 Global Chimie Verte (under development) XPRIZE Cleantech Top 100 CanmetENERGY-Ottawa – NRCan Grand Prize Winner CanmetMATERIALS-Hamilton – NRCan X-Factor Winner NRC Advanced Materials Research Facility Finalist Canada: A CCUS Snapshot Federal enabling policies Priorities going forward • Carbon pricing systems (or provincial equivalents) • Budget 2021 proposed: • Federal carbon price to rise to $170/tonne in 2030 • an investment tax credit for CCUS projects, starting in 2022 (90-day consultation on design open until September 7) • Clean Fuel Regulations (currently being consulted) • $320M for CCUS RD&D • To incent adoption of clean technologies in oil & gas and industrial sectors – final Regulations expected to be published • The development of a comprehensive CCUS strategy late 2021 • NRCan is currently developing this strategy in collaboration with provinces/territories, key stakeholders, and partners • Canada’s Strengthened Climate Plan (SCP) • Vision and recommended federal actions to enable CCUS sector to • Previous allocation of $3B to the Net Zero Accelerator as part of realize its GHG reduction and commercial potential in Canada $15 billion directed at strategic climate investments • The SCP also included a Hydrogen Strategy and $1.5B Fuels Fund • Aim for a CCUS sector that supports: • Decarbonization of industrial sectors (e.g. oil and gas, cement, iron & • Power Regulations steel, chemicals, power), • Regulation on coal-fired power generation (phase-out of • Enabling clean hydrogen, unabated coal by 2030) • CO2 based fuels / products, and • Negative emissions (e.g. DAC, BECCS) © Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019 NRCan’s CCUS Inbox: [email protected] ALBERTA POLICIES Incenting CCS/CCUS Incentives, Regulation, Offsets Justin Wheler, Executive Director, Climate Implementation and Compliance, Alberta Environment and Parks June 23, 2021 Classification: Protected A Large CO2 Sources in Canada (2019) Classification: Protected A 13 CCS Business Needs - Demonstrated Physical Attributes and Infrastructure . Geology . CO2 Pipeline (14.3 Mt/y capacity), many other pipelines . High Purity CO2 sources, . Existing Commercial EOR and CCS projects Technical Expertise and Know How . Significant Operations, EPC and Fabrication Experience . Technical experts and highly skilled, highly trained workforce available 14 Classification: Protected A Alberta: Demonstrated CCS Readiness Regulatory Systems . Carbon pricing since 2007 ($15 -> $40 now) . GHG Reporting and Reductions - TIER System . Canada’s Clean Fuel Regulations coming in 2022 Business Essentials . Pore Space Ownership (Tenure Lease Agreements) . Carbon Offset System – CCS and EOR protocols, Credit Registry . Technology funding for CCS/CCUS . Significant historic Government funding for First of Kind Projects 15 Classification: Protected A TIER Regulation and Offset System • Large Emitters/Opt-ins report and reduce GHG emissions – TIER credit for on-site geological sequestration of CO2 – TIER credit for CO2 from raw gas sent to acid gas injection – TIER facility reports CO2 exported, Offset Project Credit for storage of CO2 in deep saline aquifers or EOR projects • Offset System and Registry – EOR and CCS Quantification Protocols for storage of CO2 Offset Credits = injection of New CO2 – project emissions – Registry tracks serialized credits and all project documents • All reports are 3rd Party Verified 16 Classification: Protected A Future: Clean Hydrogen & NG Strategy Alberta has large Natural Gas reserves, a strong renewable sector & CCS - a major source for clean Hydrogen, with global potential Hydrogen Roadmap to be released later in 2021 . Recently consulted with industry, academics, municipalities, Indigenous representatives, and ENGOs Alberta is committed to enabling our industries to meet their ESG and Net Zero Goals 17 Classification: Protected A Alberta is open for CCS Business 18 Classification: Protected A Alberta Links: • Alberta Energy & CCS Knowledge Sharing https://www.alberta.ca/carbon-capture-and-storage.aspx • TIER Compliance Forms and Guidance https://www.alberta.ca/technology-innovation-and-emissions-reduction-regulation.aspx • Offset Protocols and Guidance https://www.alberta.ca/alberta-emission-offset-system.aspx • Natural Gas Vision and Strategy https://open.alberta.ca/publications/getting-alberta-back-to-work-natural-gas-vision-and- strategy • Invest Alberta Corporation: https://investalberta.ca/ • Investment and Growth Strategy https://www.alberta.ca/investment-and-growth-strategy.aspx 19 Classification: Protected A CCS PROJECTS: EXPERIENCES TO DATE JEFF PEARSON PRESIDENT – WOLF CARBON BUSINESS UNIT WOLF MIDSTREAM STEPHEN VELTHUIZEN CORPORATE RELATIONS – DOWNSTREAM LEAD SHELL CANADA JEFF ERIKSON (MODERATOR) GENERAL MANAGER – CLIENT ENGAGEMENT GCCSI Overview of the Alberta Carbon Trunk Line CO2 Supply/Capture CO2 Supply/Capture • Two sources totalling ~4,400 tonne/d Edmonton Compression Compression and Transport and Transport • Wolf conditions and compresses CO2 • 14.6 MTPA dedicated CO2 pipeline Alberta Permanent Storage/Utilization Edmonton • CO2 injection generates GHG Offset Utilization • Credits Red Deer • Calgary 21 Quest CCS CO2 capture: One million tonnes CO2 per year from 3 hydrogen manufacturing units at Scotford Upgrader (Athabasca Oil Sands Project – CNRL 70%, Chevron 20%, Shell 10%) Permanent storage: 2 km underground in the Basal Cambrian Sands Performance: Quest has captured, transported, and safely stored over 6 million tonnes of CO2 Reliability, cost, and storage performance are all better than projected. 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