carbon market review inaugural 2016

SaskPower leads by example

$20 million up for grabs for breakthroughs in C02

Integrated Test Center breaks ground in Wyoming

CarbonMarketNorth America’s premier carbon publication

ReviewPU

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North America’s premier carbon publication Inaugural Issue 2016

THE QUESTEnergy 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

R07XXX-Quest MoveUp Magazine Ad AWv1.indd 1 22/03/2016 20:28

Carbon Market review • inaugural 2016 3

is published by

Del Communications inc.

Suite 300, 6 roslyn road

winnipeg, Manitoba r3l 0g5

www.delcommunications.com

President

David langstaff

PubliSher

Jason Stefanik

Managing eDitor

Shayna wiwierski

[email protected]

Contributing writerS

Paul bunje | Michael Crothers

Marcius extavou | Melanie Franner

David howell | leonard Melman

thomas Schuler | tammy Schuster

aDvertiSing SaleS Manager

Dayna oulion

toll Free: 1.866.424.6398

aDvertiSing SaleS

Colin James | Mic Paterson | gary Seamans

ProDuCtion ServiCeS ProviDeD by:

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© Copyright 2016. all rights reserved. the contents of this publication may not be

reproduced by any means, in whole or in part, without the

prior written consent of the publisher.

while every effort has been made to ensure the accuracy of the information contained herein and

the reliability of the source, the publisher in no way guarantees nor warrants the information and is not

responsible for errors, omissions or statements made by advertisers. opinions and recommendations made

by contributors or advertisers are not necessarily those of the publisher, its directors, officers or

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PrinteD in CanaDa 05/16

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 CO2 to produce ‘green’ crude 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

25 Innovation in Canada’s oil sands production

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 CO2 capture technology: Reducing emissions while generating revenues

ContentsCarbonMarketNorth America’s premier carbon publication

Review

4 Carbon Market review • inaugural 2016

editor’smessageSHAYNA WIWIERSKI

Prime 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

[email protected]

@DelComminc

Climate change and the

reduction of CO2

in both our nation and

around the worldis a huge priorityfor everyone.

In fact, it’s so hugethat virtually

every major nationaround the globe

signed onto the

Paris Agreement on climate change.


saskatchewan’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

MESSAGE FROM THE MINISTER OF THE ECONOMY;MINISTER RESPONSIBLE FOR SASKPOWERTHE HONOURABLE BILL BOYD

The Boundary Dam Power Station near Estevan, Sask., which is designed to capture one-million tonnes of CO2 a year.


estevan, Saskatchewan. the bD 3 project is the first commercial

power plant in the world to operate with a fully integrated

carbon capture unit. boundary Dam is designed to capture

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

800,000 tonnes of CO2 in 2016. regular performance updates are

available on saskpower.com.

today, about 25 per cent of SaskPower’s generation capacity

today comes from renewable sources, including hydro and

wind. SaskPower has about 220 megawatts (Mw) of wind

capacity, or enough to power nearly 100,000 homes and

businesses already, and about 400 homes and businesses in

Saskatchewan use solar power as a secondary power supply

source.

this is a good start, but we are looking to do more.

over the last year, SaskPower has worked hard to create a plan

to significantly increase the amount of renewable electricity in

Saskatchewan’s generation mix – from 25 per cent today to as

much as 50 per cent by 2030. by meeting this target, SaskPower

will reduce greenhouse gas emissions by approximately 40 per

cent from 2005 levels.

all sources of power have pros and cons, and the goal is a

diversified portfolio of options that balances reliability, cost

and environmental impact.

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

power they need.

as the first step to achieving this target, the plan to expand

wind power will help SaskPower add more renewable

electricity to the system, while making the best use of

Saskatchewan’s world-class wind resource.

agency has said the sun could be the world’s largest source

of electricity by 2050. right now, SaskPower has about four

megawatts of solar power on the system from smaller-scale

customer generation programs.

SaskPower is interested in looking at utility-scale solar

projects for Saskatchewan as the cost of solar technology

comes down. the goal is to have 60 Mw installed by 2021, and

100-300 Mw installed by 2030. utility-scale solar generation

will be developed through competitive procurement through

iPPs, potential partnerships with the First nations Power

authority, and community-driven projects.

wind power has become much more

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

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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 Saskatoon-

based 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

renewable generation facilities are constructed and put into

service.

after 15 years, the difference in customer bills will be

approximately five per cent more than it would have otherwise

been. the overall premium of the increased target for renewables

will depend on many factors, including generation technologies,

emissions regulations, future natural gas prices, and system

integration costs. as technology improves, we anticipate that

the costs of renewable energy will continue to fall.

these are exciting and challenging times ahead as we

continue to work to meet increasing demand, renew our aging

facilities and infrastructure and comply with new and emerging

emissions regulations.

we’re prepared to meet these challenges by investing

in SaskPower’s system, evaluating all options to replace

conventional coal and working with private power producers,

communities and First nations to add more clean power.

our ultimate goal is to continue to produce and deliver

reliable, sustainable, cost-effective power to the people of

Saskatchewan.

More information on SaskPower’s renewable

energy plans can be found at www.saskpower.com/

our-power-future/renewables-roadmap. r

PH

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MESSAGE FROM ALBERTA ENERGY MINISTER

MARGARET McCUAIG-BOYD

On 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


CarbonCaptureworldopening up onmany fronts

by leonard Melman

Few 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.


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, pre-

combustion 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 post-

combustion 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

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.

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.


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

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

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.


Coal-fired generation

represents some 40

per cent of electricity

production globally.

within Saskatchewan, it accounts

for 44 per cent of the province’s total

generation – and produces 70 per cent

of SaskPower’s greenhouse gas (ghg)

emissions. but change is underway,

thanks to innovative leadership

from SaskPower that has resulted in

extending the life of one of the coal

units at the boundary Dam Power

Station, while dramatically reducing

the release of sulphur dioxide (So2) and

carbon dioxide (CO2) emissions.

RE-INvENTION AT ITS FINEST

the boundary Dam Power Station was

initially built in the late 1950s. approval

for a retrofit to integrate carbon capture

and storage (CCS) technology into the

facility was granted in late 2010. work

commenced in the spring of 2011 and

was completed in the fall of 2014.

the result is the ability to produce

at least 110 Mw of power (enough to

power 100,000 Saskatchewan homes),

while significantly reducing the impact

on the environment. So2 emissions from

the coal process will be reduced by 100

per cent once that part of the process

is fully commissioned, and the facility

is designed to capture up to 90 per

cent of the CO2 produced by the coal

unit. For now, SaskPower operates the

facility at various levels in order to meet

its federal emission regulations and its

commitment to its CO2 offtaker. in 2016,

SaskPower plans on capturing 800,000

tonnes, or the equivalent of taking

200,000 cars off the road.

“if any progress at all is to be made in

reducing ghg emissions with a view

to reducing humankind’s influence

on climate change, then managing

emissions from the electricity sector

of the global economy is essential,”

states ian yeates, SaskPower’s director

SaskPowerleads by example by Melanie Franner

Boundary Dam CCS project a first


of supply development (carbon capture

and storage). “the problem is the

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

Petroleum technology research

Centre’s aquistore Project.

“aquistore currently has a license for

300,000 tonnes of sequestered CO2,”

explains yeates. “this, however, will be

adjusted upwards as necessary.”

yeates is quick to add that CO2 has

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.

“SaskPower has indeed led the way

with the first commercial investment in

carbon capture for the electricity world,”

says yeates. “but while SaskPower

has been the first, there are others

embarking on the same journey.”

yeates is quick to cite a couple

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

with bhP billiton, has initiated a CCS

knowledge Centre in regina, designed

to help accelerate the development

and application of CCS technology

worldwide.” r

FIRST COMMERCIAL-SCALE

CCS PROjECT

the SaskPower boundary Dam project

is the first commercial-scale CCS

project of its kind in the world.

facility came at a cost of approximately

$900 million and the power plant

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

captured CO2 from the boundary Dam

project is being sold and transported

by pipeline to the nearby oilfields,

where it is being used for enhanced oil

recovery. the remainder is being stored

via the injection well – permanently

and safely 3.4 kilometres underground.

it is monitored continuously by the

Carboniq provides comprehensive solutions to modern carbon challenges.

• Provision of technical services for all aspects of carbon management, from strategic planning to technological evaluation and project management.

• Support in emissions measurement, inventory and reporting.

• Provision of outsourced solutions, from innovative technological development to emissions compensation structures.

• Development of standalone projects in biofuels and bio-derived products.

to reconcile energy and the environmentwww.carboniq.com Phone : 514-781-1797 [email protected]


In 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.

by Michael Crothers

ThE rOlE Of CCS in the quest for

Cleaner energy

Quest, located near Edmonton, will capture and store more than one-

million tonnes of CO2 each year.


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

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.

Quest is a model for industry, community, and government partnership to develop new technology to combat climate change.


Michael Crothers is the president ofShell Canada and country chair.

temperature increase that scientists tell us we must not

exceed.

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

planned or operational in norway, australia, and Canada.

Shell’s Quest project in alberta is a key element of Shell’s

portfolio. in november 2015, we celebrated Quest’s official

start-up alongside dignitaries from more than a dozen

countries.

Quest is located at our Scotford upgrader, near edmonton,

where bitumen from our oil sands operations is processed

into refinery-ready feedstock. Quest will capture and

store more than one-million tonnes of CO2 each year. that

represents one-third of the upgrader’s total emissions and is

equivalent to the emissions from about 250,000 cars.

what’s more, Quest provides a blueprint to encourage global

adoption of CCS. as part of the funding agreement with the

government of alberta, Shell is openly sharing details on

Quest’s design, construction and operation to benefit future

CCS projects worldwide. Quest is a model for industry,

community and government partnership to develop new

technology to combat climate change.

Quest’s genesis dates back to the turn of the millennium

when Shell first began evaluating options to capture CO2

from the athabasca oil Sands Project, which involves Shell

Canada energy (operator and 60 per cent owner), Chevron

Canada limited (20 per cent), and Marathon oil Canada

Corporation (20 per cent). From the outset, the project

was designed to reduce emissions, with its own gas-fired

cogeneration for electricity and extensive energy efficiency

measures. CCS was identified as a potential carbon

reduction opportunity, but at the time there were few global

projects and many challenges to overcome.

early demonstration projects are not for the faint-of-heart

and public dollars are critical to enable early projects, as

we have seen with solar and wind power. Shell was able to

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.

while CCS technology has been used for many years, two

existing challenges limit widespread adoption. the first is

the current high cost of building CCS projects, which leads

some to argue that industry and government should allocate

funds to developing renewable energy sources instead.

other low carbon technology including renewables benefits

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.

the world is in an energy transition. in the coming years,

renewables will become a larger part of the energy system

and we will continue to see the shift to more gas, less coal

and less carbon-intensive oil – for example, this will happen

in the oil sands as more low-carbon initiatives come on

stream. and while technologies develop, hydrocarbons

can help address current shortcomings for renewables in

cost, volume, availability, intermittency, storage, and energy

density.

the reality is that we will continue to rely on fossil

fuels to some degree for the foreseeable future through

the transition to a lower-carbon economy. that reality

underscores the critical need for CCS as it is the only

technology that tackles the absolute level of CO2 stock

in the atmosphere, and it can be deployed quickly. other

technologies improve efficiency and help to slow down the

rate of CO2 increase, but do not reduce the total volume of

CO2 in the atmosphere.

the international Panel on Climate Change (iPCC) in its fifth

assessment report says that without any CCS projects the

cost of achieving the warming target of 2°C increases by as

much as 138 per cent. Meanwhile, the cost of implementing

CCS could come down as new commercial facilities come

online, resulting in optimized designs and greater cost

efficiencies.

unfortunately we have yet to reach a tipping point on CCS

adoption. as worldwide commercial-scale deployment of

CCS is still in early days, government and public support

for project development are essential to encourage early

demonstration projects. these are necessary to achieve

lower costs and greater efficiencies through economy of

scale.

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

the necessary foundation to support the development

of a global carbon emissions market. a robust price on

CO2 would encourage countries to adopt CO2 reduction

technologies like CCS. the technology can be deployed


across a range of sectors, including the coal, steel, chemical

and cement industries, making its broader deployment

critical.

of course, governments are beholden to their citizens when

it comes to the use of public funds. to that end, government

and industry need to demonstrate that CCS is a cost-effective

way to achieve climate change goals. Projects like Quest will

be helpful in this regard as they contribute to knowledge on

costs associated with various ghg reductions.

the second challenge to widespread CCS adoption is the

need for more collaboration on CCS technology, public

acceptance and regulation frameworks. although CCS

technology is not new, there is strong rationale for industry,

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.

garnering public support in particular will be essential to

future development. as companies around the world look to

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

and workshops to provide project information and respond to

questions. based on stakeholder input, we made more than 30

alterations to Quest’s pipeline route, and showed community

members that we took their interests to heart.

in 2012, we established a community advisory panel to

maintain public engagement through Quest’s development

stage. the panel consisted of a cross-section of stakeholders,

including landowners, regulatory bodies and representatives

from the academic, business, and public service sectors. the

panel served primarily to provide input on the measurement,

monitoring and verification program to assure safe storage of

CO2. they were able to provide insight into public concerns

around the project and served as valuable liaisons between

Shell and the community.

a key concern heard throughout our consultative process was

around safety and potential for local environmental impacts

from the project. Speaking with the public about the CCS

process and its safety record is an important step towards

gaining local stakeholder acceptance. Just as developers

of wind and solar projects around the world have found,

environmental benefits must be reconciled with the concerns

of locally impacted stakeholders.

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

40 years. Developing a robust measurement, monitoring

and verification program that was externally verified by

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.

as the world grapples with combatting climate change, CCS

needs to be part of a global mitigation strategy, along with

the development of renewable sources, improved energy

efficiency, and an eventual shift in how we power our lives.

Shell believes CCS, in combination with other ghg reduction

opportunities, is critical to achieving carbon reduction targets

in a cost-effective way. and if leaders need a roadmap for

developing and deploying CCS, they can find one in Canada’s

Quest project. r

Michael Crothers is the president ofShell Canada and country chair.


Picture a barrel of alberta oil

that emits less CO2 when it is

refined and consumed than the

amount of CO2 stored safely

underground during the same barrel’s

production.

that’s part of the important green-oil

story alberta-based enhance energy inc.

is telling with its alberta Carbon trunk

line (aCtl).

“we sequester more CO2 for every barrel

of oil that we produce than that barrel

will generate when it’s fully combusted,”

says kevin Jabusch, company president.

“we think we’ve got as low a carbon

(fossil-fuel) energy as there is.”

the aCtl is a 240-kilometre pipeline

that will transport high-purity

compressed CO2, captured from

industrial emitters in the industrial

heartland region northeast of edmonton,

to an oilfield at Clive, in central alberta,

where it will be used in enhanced oil

recovery.

the CO2 will be injected into depleted

reservoirs, producing oil that can’t be

reached by conventional methods.

all the CO2 will remain permanently

sequestered more than one kilometre

underground.

“these are mature reservoirs that in

many cases have been around for 40

or 50 years,” Jabusch says. “in many

of them, 30 to 50 per cent of the oil has

been recovered, but there’s a lot of oil

left. CO2 is a feedstock that will help us

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

Captured CO2 tO prOduCe

‘green’ crude frOm depleted alberta reservOirsby David howell


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 [email protected] or visit www.enhanceenergy.com

a major oil producer, so they will look

to add more sources of CO2 to the

pipeline network as they become

available. Jabusch says the hope is that

in future, facilities along the route will

be designed to capture CO2 that can be

supplied to the system.

at full capacity, the aCtl would

provide access to reservoirs capable

of producing an additional one-billion

barrels of high-quality light crude oil,

generating provincial royalties in the

order of $15 billion.

the aCtl project has received

funding support from both the alberta

government and the government

of Canada to build the backbone

infrastructure for immediate emission

reductions and future CO2 management.

“i’ve spent 35 years in oil and gas,

and have been involved in enhanced

oil recovery, in gas processing, in

midstream,” Jabusch says. “the aCtl

is an opportunity to take what i’ve done

— and what i know, and what i like to

do in oil and gas — and do it just a bit

better. we have the chance to make

a real and significant difference, and

there is no better place to do it than in

alberta.” r


As more companies focus

attention on reducing

greenhouse gas emissions

in industrial processes,

there is an increasing need for facilities

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.

Company offerspilot and test facilities for low carbon technologies

Pilot testing facility for carbon capture and conversion technologies.


CMC offers field-testing & pilot facilities for:• Monitoring technologies for underground storage of fluids, including CO2

• Solvent systems, membranes & sorbents for CO2 capture technologies

• Chemical & electrochemical CO2 conversion systems

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

REDUCING INDUSTRIALGREENHOUSE GAS EMISSIONS

cmcghg.com | [email protected] | 403.210.9784

INSTITUTESRESEARCHCMC

technologies developed and refined

at the site can also be applied to

other sectors, such as the steam-

driven, 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

geochemistry laboratory. the

laboratory’s state-of-the-art equipment

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

the Carbon Capture and Conversion

institute. this institute will help

clients scale-up and pilot technologies

that reduce the cost of capture, and

also those that use captured CO2 to

produce valuable, revenue-generating

products.

as part of the capture and conversion

institute, bC research is constructing

a pilot plant facility in richmond,

field research Station Phase 1 layout.

b.C. when operational in 2017, the

technology Commercialization and

innovation Centre will house equipment

to allow clients to build pilot plants

to test solvent systems, membranes

and sorbents for CO2 capture, as well

as chemical and electrochemical CO2

conversion systems. engineers and

business development experts will be

available onsite to offer advice and

support.

to learn more about CMC and its

services, email [email protected],

or call 403-210-9784. r


Post-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-

by Melanie Franner

CANADIAN EXPERTISE

leaders inCCS technology

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.

combustion CCS technologies. we believe that there are

commercially viable post-combustion technologies available

right now and that there are companies in Canada and

around the world that have that technology well in hand.”

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.

“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.”

according to Canmetenergy, high-pressure oxy-fuel

combustion using oxygen to combust fuels at elevated

pressure represents a class of technologies that will typically

result in higher energy output through more efficient

chemical reactions and fewer processing steps to produce a

pure, concentrated CO2 stream ready for geological storage

or utilization. however, active r&D and demonstrations

are still required to make these technologies commercially

available.

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 air-

fired 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.

haslip is quick to add that the high-pressure oxy-fuel

technology may be available in as little as three

to five years.

“we are working with companies now that are

building or planning to build pilot plants of between

five and 50Mw scale,” he says. “that’s typically the

demonstration stage, with commercial development usually

just around the corner.”

FORWARd THINKING

another technology that has caught the eye of

Canmetenergy, although still in its infancy, is “chemical-

looping” technology. the agency is working on this in

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

the mineral ilmenite, to bring oxygen from the outside world

to react with the fuel. Chemical looping may prove to be a

more energy-efficient and lower-cost CCS technology than

high-pressure oxy-fuel technology. we’re still in the relatively

early stage at this point.”

Canmetenergy may be focused on emerging CCS

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

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

Dean haslip, director general of CanmetENErGY’s Ottawa laboratory.


the reality of climate change is increasingly evident

in the Prairie provinces and Canada as a whole, and

climate models clearly indicate that very substantial,

if not dramatic changes will occur in the coming

decades. that is true even if collectively we reduce global

carbon emissions.

in fact, the prairie region may be particularly susceptible to

the negative impacts of climate change – including droughts,

floods, heat waves, and other extreme events —and so it is

imperative that potential stakeholders be aware of and be

prepared for the anticipated changes. unfortunately, adaptation

planning and implementation has been limited to date,

increasing the vulnerability of our economy, infrastructure,

social systems and natural

environments to the

adverse consequences

of a changing climate.

this situation is largely

the result of a lack

of resources and

expertise available

to citizens, planners,

and policymakers.

the Prairie Climate

Centre (PCC) has

launched a new interactive

website to address this gap.

the university of winnipeg

and the international institute for

Sustainable Development (iiSD) are the founding partners in

this joint initiative.

“the Prairie Climate Centre offers cutting-edge research,

outreach and planning initiatives that move our region

from risk to resilience,” says Dr. ian Mauro, a university of

winnipeg researcher and outreach director at the PCC. “our

holistic approach, linking climate data with human and

ecological systems, is combined with an inclusive and multi-

media communication strategy that is designed to increase

awareness and sustainability.”

the PCC’s Climate atlas website provides stakeholders in

Manitoba, Saskatchewan and alberta with up-to-date high-

quality data, maps, videos, and toolkits depicting the

nature of climate changes that are expected to occur. users can

see how hot their town or farm will be in the coming decades,

and over the next few years will include interviews with

stakeholders across the region exploring their perspectives

on forthcoming change. indeed, the changes anticipated for

the prairie region – which will be released soon – command

attention.

“Perhaps the most startling information presented on the

website is just how hot the prairie summers are expected to

get in the coming decades, especially if global greenhouse gas

emissions are not reduced dramatically,” says Dr. Danny blair, a

university of winnipeg climatologist and the scientific director

for the Prairie Climate Centre. “Many people expect very cold

weather to become uncommon, but

they don’t realize that we may get

summers as hot as those in

the southern plains of

the united States.”

Just as importantly,

a team of researchers

and networked partners

affiliated with the centre

are available to offer advice

and policy guidance to

governments, businesses,

and community members.

the focus of the centre is to

collaborate with Manitobans

and Canadians who will be

affected by climate change so they might position themselves

to take advantage of new opportunities, identify and rank

risks, build capacity, and enhance community, economic and

environmental resilience.

earlier this year, great west life generously donated $250,000.

the government of Manitoba committed $400,000 to enable

applied research, mobilize knowledge, seek additional partners

from across the region, and build the team of experts that will

develop informed planning and policy advice to those who

need it. the Prairie Climate Centre is hosted by the richardson

College for the environment at the university of winnipeg.

visit the Prairie Climate Centre’s Climate atlas at

www.climateatlas.ca. r

PRAIRIE ClImAtE CENtREmaps our changing landscape


Partnerships and collaborations

can make the difference in

decreasing the environmental

impact in Canada’s oil sands.

Cultivating such partnerships is

Canada’s oil Sands innovation alliance

(CoSia), a hub wherein organizations

and institutions can collaborate,

innovate, and implement technologies

in order to reduce energy use and

associated greenhouse gas emissions in

the oil sands operations.

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.

it is an independent organization that

has committed to developing innovative

technologies where gaps currently exist

in four areas: water, land, tailings, and

greenhouse gases.

“the end result of this collaboration is

to emit fewer greenhouse gases, use

less water, disturb less land, and speed

reclamation,” says Dr. Dan wicklum,

chief executive, CoSia.

Currently, CoSia has approximately 245

environmental improvement projects

active with the aim of filling defined

innovation gaps. “the projects develop

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.

INNOvaTION IN Canada’s oil sands production

“water use is a very big thing for

us because of how it’s related to

greenhouse gases,” says wicklum. “the

more water used, the more water has

to be recycled, and it becomes more

energy intensive, so decreasing water

use by 36 per cent is very meaningful

progress in a short amount of time.”

wicklum says essentially when one

company working inside of CoSia

develops a new technology, that

company gives the royalty-free

use rights of that technology to the

other CoSia companies to use in

the oil sands. they do so with the

understanding that those companies

will develop a novel technology and

share those patent use rights with

them. “essentially, a company shares

one technology, and receives 12 back in

return,” he says.

Since CoSia’s conception in

2012, companies have shared

819 technologies that have cost

approximately $1.3 billion to develop. “if

they were to license those technologies

to each other, that dollar amount would

certainly be much higher.”

while the concept of collaboration

may still need to be fostered and

emphasized, wicklum says at the

four-year mark all companies have

reconfirmed their commitment to

CoSia. in doing that, they have

reconfirmed their commitment to

improving environmental performance

in oil sands operations.

CoSia also has over 40 third-party and

associate organizations that help bridge

communication and foster relationships

within innovation communities across

the globe. wicklum says there are more

partnerships to be made and one of

the organization’s goals for 2016 is to

continue to develop this functional

network of innovators.

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.

by tammy Schuster


Convert carbon dioxide into useful products,

take home $20 million.

this is the challenge put forth by the

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.

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-half-

year global competition open to any team that can

demonstrate the conversion of post-combustion CO2 -

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.

Reimaginingcarbondioxide

by Paul bunje and Marcius extavour

XPRIZE offers $20 million for breakthroughs in CO2 conversion


teams enter the competition by registering

before July 15, 2016. in round one, teams

submit an electronic document package and

are evaluated on their technology concept,

as well as their business and operations plan.

the most promising teams will advance to

round two, during which teams will have one

year to demonstrate an operating process that

consumes 200 kg of CO2 per day at a facility of

their choosing.

CREATING LASTING HuBS OF

CARBON INNOvATION

in round three, up to 10 teams will

demonstrate their technologies at

approximately two ton/day scale at one of

two new test facilities built specifically for

the competition. teams will have the choice

to demonstrate either at the integrated test

Center, co-located with the Dry Fork Station

coal-fired power station in wyoming, uSa, or

at a similar facility co-located with a natural

gas power station in western Canada (site to

be announced).

both test facilities are expected to have long-

term positive impact for the CO2 conversion,

removal, and mitigation communities in north

america and abroad. Set to open during round

three of the XPriZe in early 2018, this pair of

facilities will be among a very small number

of such facilities anywhere in the world that

are equipped to test, develop, and refine

CO2 conversion technologies at pilot and

demonstration scales. the initial two ton/day

to five ton/day CO2 capacity of these facilities

places them at the sweet-spot for technology

commercialization, between grams-per-day

early stage projects and megaton-per-year

industry-ready facilities. this testing and

evaluation infrastructure could prove to be as

valuable and impactful in the long-term as the

core technology innovation inspired by the

XPriZe competitors.

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.

the Carbon XPriZe will accelerate

development of breakthrough technologies

that turn CO2 emissions into valuable

products, proving to the world that innovation

can enable solutions to climate change.

ultimately, we intend that this competition

will stimulate new markets for CO2 mitigation

technologies, attract new investment, and

inspire other industries, governments, and

educational institutions to take concrete

positive actions to combat climate change. at

the same time, we hope to help shift public

attitudes to be more optimistic about the

future of energy and how we tackle climate

change.

at XPriZe we believe a new type of energy

system is possible: one that is sustainable,

accessible, reliable, and abundant. even

with the existing sunk costs of energy

infrastructure, it is only a matter of time

before more efficient, more dynamic, and

more sustainable approaches to energy

come to the fore. but climate change doesn’t

wait for action. to act on climate now, we

must embrace today’s tools that accelerate

innovation, de-risk opportunities, and leverage

diverse investment.

Dr. Paul Bunje is principal and senior scientist

at XPRIZE Foundation, where he leads energy

& environment prizes. Bunje is a global

thought leader in bringing innovation to

solve environmental grand challenges. This

work includes leading the US $20M NRG

COSIA Carbon XPRIZE and XPRIZE’s Ocean

Initiative.

Dr. Marcius Extavour is the director of

technical operations for the US $20M

NRG COSIA Carbon XPRIZE with XPRIZE

Foundation’s Energy & Environment group. r

ImpactThe 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


Integratedtest Centerconstruction kicksoff in Wyoming

low-carbon energy innovation took a big step forward

last month with the groundbreaking of the wyoming

integrated test Center (itC) – a cutting-edge carbon

research facility being constructed alongside a coal-

based power plant in wyoming.

wyoming governor Matt Mead, along with representatives

of project partners basin electric Power Cooperative, tri-

State generation and transmission association, the national

rural electric Cooperative association, and the nrg CoSia

Carbon XPriZe, led the official groundbreaking ceremony

on wednesday, april 27, 2016 at the Dry Fork Power Station,

owned by basin electric Power Cooperative and the wyoming

Municipal Power agency.

the ceremony marked an exciting next phase for the itC,

a public-private partnership designed to foster the next

generation of energy technology. in 2014, the wyoming State

legislature allocated $15 million in funding for the design,

construction and operation of an integrated test centre

to study the capture, sequestration, and management of

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

is providing the host site, as well as many additional in-

kind contributions, including engineering and construction

management services.

the itC will provide space for researchers to test carbon

capture, utilization and sequestration (CCuS) technologies

using actual coal-based flue gas – making it one of a handful of

Cutting-edge carbon research facility driven by public-private partnership breaks ground


such facilities around the world and only the second one in the

united States.

historically, researchers have found it impossible to replicate

the conditions of a working power plant to test these

technologies, or to surmount the prohibitive cost of transferring

emissions from the plant to the lab. the itC will provide a vital,

straight-shot solution to this problem.

CCuS represents the future of smart energy usage where

researchers investigate ways to not only reduce the emission

of carbon dioxide, but to monetize it as a valuable commodity.

the bubbles in your soda, the cement in a new building’s

foundation – these are all carbon-based products. CCuS allows

us to ask, what would happen if one of the drivers of climate

change could be converted to a viable product?

the nrg CoSia Carbon XPriZe is the first tenant of the

facility. XPriZe teams will use the integrated test Center as

their proving site in the final round of competition. the winners

of this $20 million prize will be those that convert the most

carbon dioxide into products with the highest net value. teams

are also challenged to demonstrate CO2 conversion while

minimizing environmental footprint of their process, specifically

energy, land, and water use.

Pre-construction engineering and design work for the itC

started in 2015. in March of 2016, when the Dry Fork Station

went into routine maintenance mode, a large steel damper

was installed into the flue system that will help direct gas

to researchers at the test centre. the itC is scheduled to be

completed in the summer of 2017.

to track progress on the project or to learn more, visit

www.wyomingitc.org. r

Groundbreaking at the Integrated Test Center at theDry fork Station coal-fired power station in Wyoming. U.S.a.

As 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

CO2 sOlutiOns inC.


• 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

Nature’s Power for Carbon Capture

[email protected]

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

the use of hot water instead of steam for

solvent regeneration, no waste products,

and the production of high purity (99

per cent+) CO2 suitable for a wide range

of uses. based on the demonstration,

core process costs were projected at

$28/tonne-CO2 at a commercial scale

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

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

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-

added products such as biofuels and

renewable chemicals, enabled by

CSi’s technology. this strong support

is evidence of the robustness of the

technology and its ability to make

meaningful contributions to emissions

reductions in these provinces and

beyond.

with 70 per cent of global energy

demand currently met through the

burning of carbon-based fuels, and

demand predicted to double by 2035,

the world faces a growing challenge:

reducing climate change-causing CO2

emissions, while not damaging a global

economy dependent on fossil fuels.

in this context, CSi’s breakthrough

technology positions carbon capture,

utilization, and sequestration as a

viable carbon mitigation tool, enabling

emissions-intensive industries to

successfully compete in an increasingly

carbon-constrained economy.

Further information on CO2

Solutions can be found at

www.co2solutions.com. r


solidia technologies® is a cement and concrete

technology company that has developed patented

processes that produce a sustainable cement and

concrete that is cured with carbon dioxide. as the

cement industry pivots towards the carbon economy, our

processes offer a cost-effective and competitive solution.

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

applications around the world. the production of cement is

responsible for three to five per cent of total global carbon

emissions, making it the world’s second-largest CO2 emitter.

the industry knows this is a challenge they must address,

and they have set goals to dramatically reduce their carbon

footprint. our technology addresses an urgent business and

societal need, while profitably supporting an industry

seeking to improve production methods that haven’t

changed significantly in nearly 200 years.

Turning carbon inTo a soluTion for The cemenT andconcreTe indusTry

by thomas Schuler,President and Ceo,

Solidia technologies, inc.


Changing the industry requires a change with minimum

cost, maximum impact, and added value. Solidia’s patented

processes start with sustainable cement, cure concrete with

CO2 instead of water, reduce carbon emissions of cement and

concrete combined up to 70 per cent, and recycle 60 to 100

per cent of the water used in production. Produced with a

non-hydraulic, lower-energy and lower-emission chemistry,

Solidia Cement™ is more sustainable than traditional, ordinary

Portland cement (oPC). Solidia Concrete™ cures with CO2

instead of water. when one tonne of Solidia cement is used in

a concrete product, it permanently captures and stores 250 to

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

traditional concretes, and typically

cures in 24 hours versus the traditional

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

save approximately two-trillion litres of

water per year.

For over 50 years, scientists have tried

to cure concrete with CO2 knowing the

resulting product would be stronger

and more durable; Solidia is the first to become commercially

viable. an array of partners from the public and private

sectors and academia are helping shift the discovery from

theory to application, with assistance in applied research,

materials testing and characterization, manufacturing

logistics, general marketing and funding. r&D collaborators

include lafargeholcim, CDS group, Dot’s Federal highway

administration, Doe’s national energy technology laboratory,

the ePa, rutgers university – where the original generation

of the technology was invented – Purdue university, ohio

university, and the university of South Florida.

rapid urbanization and infrastructure development are two of

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

iP portfolio comprises four u.S. patents and more than 100

patent applications worldwide.

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

hope to offer a model for how to commercialize a sustainable

innovation and inspire others to seek solutions within the very

problems they face. r

far left: Solidia ConcreteTM pavers coming off the press.

above right: Solidia ConcreteTM pavers being measured.

Top: Solidia ConcreteTM

pavers ready for curing.


From 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

Skyonic’Sco2 captureTechnology

Reducing emissions

while generatingrevenues


aggregates Cement Plant, a coal-fired

cement manufacturing facility in San

antonio, texas, uSa. a single pipe

connects the two plants, which directs

the CO2 from the cement plant to Capitol

SkyMine. it is designed to directly

capture 75,000 tonnes of CO2 per year,

which is approximately 15 per cent

of the cement plant’s exhaust stream,

and offset an additional 225,000 tonnes

per year by displacing chemicals that

would be manufactured in a traditionally

carbon-intensive method. the plant was

engineered so that when it is operating

as designed with specific parts of the

chlor-alkali unit being run at a lower

than typical energy rate, the process

will be carbon negative. this is based

upon comprehensive lifecycle analyses

using international energy agency (iea)

calculations to assess the energy penalty

of the full process. and as of early 2016,

we have been granted over 30 patents

issued around the world, verifying our

innovative processes.

we are one of the u.S. Department of

energy’s recent success stories. Skyonic

received two grants totaling $28M for

carbon capture and beneficial reuse

through the american recovery &

reinvestment act (2009-2011) to help

us develop this first-of-its-kind chlor-

carbonate plant. Dr. Julio Friedmann,

former principal deputy assistant

secretary for fossil energy at the Doe,

visited the plant in november and noted

that “carbon utilization is going to help

america reduce its carbon footprint

while creating jobs in the market.

Skyonic is the emblem for good projects

and good companies in the field of

carbon utilization.” while the business

model of the plant is to generate profits

and function without any government

subsidies or assistance, the arra grant

helped Skyonic develop and complete

our first commercial-scale project. over

250 direct jobs were created during

design and construction, and another

200+ permanent positions were added

into the general u.S. economy.

besides providing emission reduction

solutions, the SkyMine® process is

scalable, can be built next to existing or

newly constructed industrial emitting

sources, such as oil and natural gas

refineries, steel mills and power plants,

and the production ratio of chlor-alkali

chemicals can shift to reflect specific

supply and demand market conditions.

to meet increasingly stringent sulfur

reduction standards, it is an ideal

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

gas production, steel manufacturing,

cleaning agents, swimming pool

chemicals, and municipal water

systems. we are currently selling all four

chemicals meeting the required specs of

our customers.

Skyonic is a privately funded corporation

with headquarters in austin, texas. visit

us online at www.skyonic.com. r

Index to advertisersCarboniq ........................................................13

CMC research institutes .............................21

CO2 Solutions ................................................31

enhance energy inc. ....................................19

Shell Canada ..................................... iFC, obC

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.

carbon market review inaugural 2016

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