Carbon Capture and Storage in Alberta – Projects and Outreach

November 10, 2011

Sandra LockeExecutive Director, CCS Development

Alberta Energy

2

200Mt• 2050 -- 200Mt

reduction or 50%below projectedbusiness as usualand 14% below 2005 levels

Source: Alberta 2008 Climate Change Strategy

Alberta’s Reduction CommitmentsConservation & Energy Efficiency 24Mt

Carbon Capture & Storage 139Mt

Greening Energy Production 37Mt

Total Reductions 200Mt

Net Emissions * Modified slightly from:Alberta’s Climate Change Strategy 2008

Objectives of Alberta’s CCS Program

• Demonstration at a large scale

• Build confidence.

• Contribute to the global effort.

• Reduce Alberta’s carbon emissions.

• Develop a world class regulatory framework .

CCS Funding Program

• $2 billion (CDN) announced in July 2008

• Purpose is to sequester 5Mt annually from 3-5 commercial scale projects starting in 2015.

• 3 of 4 agreements signed to date

Alberta CCS Projects

Edmonton

Calgary

Alberta Carbon Trunk Line

• Enhance Energy, Northwest Upgrading

• 1.6 Mt, EOR

• Funding

• $495 M – Alberta Gov’t

• $63.3 M – Federal Gov’t

Quest

• Shell Canada, Chevron, Marathon

• 1.2 Mt, Deep saline formation (potential for future EOR)

• Funding

• $745 M – Alberta Gov’t

• $120 M – Federal Gov’t

Swan Hills Synfuels

• Swan Hills Synfuels

• 1.3 Mt, EOR

• Funding

• $285 M - Alberta

Pioneer

• TransAlta, Capital Power, Enbridge

• 1.0 Mt, Deep saline formations and EOR

• Funding• $436 M - Alberta

• $343 M - Federal

Regulatory Framework Assessment (RFA) -Objectives

• To develop a world-class regulatory framework for CCS that meets the needs of large scale CCS projects: – Review the regulatory regime in Alberta and existing

CCS frameworks in other jurisdictions.– Develop recommendations to refine and guide

legislation, regulations and regulatory processes.

• Ensure that the regulatory process is efficient, transparent and comprehensive.

Regulatory Framework Assessment - Scope

• The RFA is looking at a number of issues relating to CCS in Alberta, including:

o Closure criteria.

o Methodology and rate for the Post Closure Stewardship Fund.

o Clear roles and responsibilities for Alberta regulators.

o How stakeholder engagement will take place.

• A number of recommendations go to the Alberta Government in late-2012.

Regulatory Framework Assessment –Organizational Structure

Working

Groups

Minister of Energy

Steering Committee

Regulatory MMV Geo/Tech Environmental

Expert PanelAlberta Energy:

RFA Section

Outreach Campaign - Objectives

• Increase Albertans’ knowledge about CCS and why we are pursuing this technology

• Foster confidence that CCS projects are being managed in a safe and responsible way

Outreach Campaign – Tools & Tactics

Outreach Campaign – Tools &Tactics

www.solutionsstarthere.ca/

Consultation on the Regulatory Framework Assessment

• Objectives: Dialogue and Educate

• Overall Plan:

– Targeted stakeholder groups

– Community meetings

– Web based questionnaire

– Polling

• Stakeholder groups:

– Municipalities

– Academics

– NGO’s

– Surface rights groups

– Industry associations

– First Nations

Knowledge Transfer Objectives

• Advance CCS technologies,

• Bring down CCS costs, and

• Support step changes in efficiencies, integration and public assurance

Principles of Knowledge Sharing

• Mandatory

• Standard reporting

• Standard template

• Widely disseminated

Thank you

Sandra LockeExecutive Director, CCS Development

Alberta Energy