Carbon Capture & Storage in Canada

“Carbon capture and sequestration technology holds enormous

potential to reduce our greenhouse gas emissions as we use

our own energy resources to power our economy.”

Prime Minister Stephen Harper

February 19, 2009

Claude Gauvin, Director of Energy Technology Policy

Office of Energy Research and Development, Natural Resources Canada

January 19, 2012

Overview

• CCS is critical for reconciling an economically

important energy sector with climate change

objectives

• Canada is taking action to address challenges and

advance CCS

• Significant investments in demonstration projects

are proceeding

• Domestic and international engagement

Energy – Important to Canada’s economic

prosperity

• Energy means more to Canada

than any other industrialized

country

• only OECD country with

sustained oil production growth

• Stable and secure energy

supplier

• Major consumer

• $84B in exports in 2009,

primarily oil and gas

• 23.4% of total exports

• In 2009, energy represented

6.7% of GDP, with direct

employment of about 263,000

people

1.8%

6.7%

20.6%

23.4%

0%

5%

10%

15%

20%

25%

Investment Exports GDP Employment

Energy as a Percentage of Canadian Total (2009)

Canada’s Approach to CCS

• Recognizes the potential for CCS to enable continued production and use of fossil fuels in a way that:

• Protects the environment by reducing GHG emissions;

• Enhances energy security by enabling continued development of Canada’s vast resources;

• Enables Canada to benefit from its natural advantage in CCS by promoting innovation in Canada’s clean energy technology sector.

• Targets investments and actions to facilitate the adoption of CCS in the medium to long term

• Builds on several years of domestic and international work:

• Canada’s Clean Coal and CO2 Capture and Storage Technology Roadmaps;

• Canada-Alberta ecoENERGY CCS Task Force (2008);

• G8 Gleneagles (2005) and Toyako-Hokkaido (2008) Summits;

• U.S.-Canada Clean Energy Dialogue (2009).

– 5 – – 5 – – 5 –

Opportunities for CCS in Canada

Western Canadian

Sedimentary Basin

2009 Facility GHG Emissions (Mt CO2 Eq) Amounts of 2 Mt or less are not shown

St. Lawrence River Basins

Hudson Bay Basins

Labrador Basins

Atlantic Basins

Baffin Basin

Canadian Arctic Island Basin

Southwestern Ontario Basins

IntramontaneBasins

Beaufort- Mackenzie

Basin

AB 117

SK 22 ON

49

QC 20

NS 11

BC 13

NB 10

Gulf of St. Lawrence

Basins

NL 4

Canada has Experience in CO2 Injection & Storage

Enhanced Oil Recovery using CO2

Acid gas operations

Deep Saline Formation Storage projects

Gas pipeline infrastructure

CO2 pipeline infrastructure

Role of CCS in GHG Emissions Reduction Strategy

CCS market penetration will require incentives to reduce CO2 emissions

Source: NRTEE ‘Achieving 2050: A Carbon Pricing Policy for Canada’, 2009

260 Mt

Canada’s commitment:

17% reduction by 2020

CCS Challenges

• Economic gap – between costs and incentives

• Technical risks – new technologies

• Regulatory frameworks not yet fully in place

• Public acceptance

• Time pressures: technology lock-in

EOR can assist the economics

CCS – In-Situ

Oil Sands

CCS – Chemicals /

Fertilizers /

Upgraders (CFU)

CCS – Coal Power

Generation

Wind

Power

Vehicle

Efficiency

Nuclear

CO2-EOR

CO2-

EOR CO2-

EOR

Canada is Taking Action to Advance CCS

• Research and development

• Demonstration projects

• Domestic and international engagement

• Legal and regulatory frameworks

• Public outreach

TransAlta - Pioneer Project: Coal-fired electricity

Capacity: 1 Mt/yr

Public $: $342.8M fed + 436M prov

Shell - Quest Project: Oil sands

Capacity: 1.2 Mt/yr

Public $: $120M fed + $745M prov

Enhance - Alberta Carbon Trunk Line

Project: Oil sands & pipelines

Capacity: 14 Mt/yr

Public $: $63.2M fed + $495M prov

Weyburn-Midale CCS Project Project: Gasification, MMV

Capacity: 2.8 Mt/yr

Public $: $15.2M fed + $3.8M SK +

$1.05M AB

SaskPower - Boundary Dam Project: Coal-fired electricity

Capacity: 1 Mt/yr

Public $: $240M fed

Canada’s Investments in Demonstration Projects

$3 billion in public funding, $7 billion total investment

Swan Hills Project: In-situ coal gasification

Capacity: 1.3 Mt/yr

Public $: $285M prov (no fed $)

Spectra - Fort Nelson Project: Natural gas processing

Capacity: 1-2 Mt/yr

Public $: $7.4M fed + $3.4M prov

Summary

• The energy sector is a critical component of the

Canadian economy

• Fossil fuels will remain important for the next few

decades .

• CCS is one component of Canada’s approach to

reducing GHG emissions.

• Canada supports R&D, demonstration, regulatory

development and public engagement in CCS

• Canada is engaged domestically and internationally

Carbon Capture & Storage

in Canada

Thank You