THECAPTUREANDSTORAGEOFCARBONDIOXIDEEMISSIONSAsignificantopportunitytohelpCanadameetitsKyototargetsTHECAPTUREANDSTORAGEOFCARBONDIOXIDEEMISSIONSAsignificantopportunitytohelpCanadameetitsKyototargetsPreparedfor:OfficeofEnergyResearchandDevelopmentNaturalResourcesCanadaOttawa,OntarioK1A0E4October2000Preparedby:Dr.D.A.ReeveSeniorAssociateGlobalChangeStrategiesInternationalInc.150IsabellaStreet,Suite#305Ottawa,Ontario,CanadaK1S1V7Phone:(613)232-7979Fax:(613)232-3993Email:info@gcsi.caScientificAuthority:GillesMercierOfficeofEnergyResearchandDevelopmentNaturalResourcesCanada580BoothStreet,14thFloorOttawa,Ontario,CanadaK1A0E4CitationD.A.Reeve,GlobalChangeStrategiesInternationalInc.,TheCaptureandStorageofCarbonDioxideEmissions–AsignificantopportunitytohelpCanadameetsitsKyototargets.PreparedunderNRCanContractFileNo.NRCan-00-0195.OfficeofEnergyResearchandDevelopment,NaturalResourcesCanada,Ottawa,Ontario,Canada,2000,(20pages).Copiesofthisreportmaybeobtainedatthefollowingaddress:OfficeofEnergyResearchandDevelopmentNaturalResourcesCanada580BoothStreet,14thFloorOttawa,Ontario,CanadaK1A0E4(613)947-3481DisclaimerThisreportisdistributedforinformationalpurposesonlyanddoesnotnecessarilyreflecttheviewsoftheGovernmentofCanadanorconstituteanendorsementofanycommercialproductorperson.NeitherCanadanoritsministers,officers,employeesoragentsmakeanywarrantyinrespecttothisreportorassumeanyliabilityarisingoutofthisreport. HerMajestytheQueeninRightofCanada,2001CatalogueNo.:M92-211/2001EISBN:0-662-65586-9TheCaptureandStorageofCarbonEmissionsiExecutiveSummaryThisreportwaspreparedtosupportthecarbondioxide(CO2)captureandstorageoptionwhichtheOctober2000jointmeetinginQuébecCityofMinistersofEnergyandtheEnvironmentconsideredaspartofCanada’sNationalImplementationStrategyonClimateChangeandthefirstNationalBusinessPlan.ThereportreviewsthecurrentstatusofCO2captureandstoragetechnologydevelopmentinCanadaandthecontributionthatthesetechnologiescouldmaketogreenhousegas(GHG)mitigationCO2captureandstoragerepresentsafurtheroptiontodecreasingnationalGHGemissions.Otheroptionsincludereducingenergyconsumption,increasingenergyefficiency,adoptinglowerorzerocarbonfuelsandreducingGHGsfromnon-energysources.ThetechnologyinvolvesremovingCO2fromlargesingle-pointsourcessuchaspowerstationstacks,makinguseoftheCO2whereapplicable,andstoringitundergroundingeologicalreservoirs.IthasparticularapplicationinwesternCanadawherelargefossilfuelusersarelocatedclosetosuitableundergroundreservoirs.SimilarcircumstancesmayalsoapplyinAtlanticCanadaandtheadjacentoffshore.ItisanattractiveoptionbecauseitallowscontinueduseofCanada’sfossilfuelresources,whileatthesametimecontributingtoGHGmitigationandprovidingthetimerequiredforthetransitiontolowercarbon-intensivetechnologies.Criticalstepsinthetechnology,especiallyCO2capturefromdiluteexhaustgasstreams,muststillbedemonstratedonalargescaleandcostsaregenerallyhighatthecurrentstageoftechnologydevelopment.ThesecostscanbeoffsetwhenthecapturedCO2hasaneconomicvalue,e.g.toincreaserecoveryfromexistingoilreservoirs.Ifcapturecostscanbereducedto$20pertonnefromthecurrentlevelof$35-50orhigher,thereispotentialtodeploythetechnologywidelysuchthatvolumesofCO2couldbestoredinCanadatoreducetheprojected2010emissionsovertheKyototarget.ThepotentialforthiscontributionhasalreadybeenrecognizedinCanada’sNationalImplementationStrategyforClimateChangeandisincludedasanactionplaninthefirstNationalBusinessPlanonClimateChange.CO2removalfromcoal-firedpowerplantsisalsoacentre-pieceofthe10-year$1billionR,D&Dplanproposedbytherecently-formedCanadianCleanPowerCoalition.ActivitieswithinternationalexposureareunderwayinCanada,includingmonitoringoftheCO2budgetinanenhancedoilrecovery(EOR)projectandpilot-scaleCO2captureprojects.TheadhocnationalcoordinatingcommitteeonCO2captureandstoragehasdevelopedanenhancedR,D&Dplanwhichoutlinespreliminaryprojectsandworkplansforfurtherdevelopmentofthetechnology.FurtherconsultationsarerequiredtoconfirmS&TprioritiesandtofinalizethenationalR,D&Dprogramdesignedtoleadtolarge-scaletechnologydemonstrationprojectsandfirstcommercialplants.Theplanthenneedstobeimplementedthroughpartnershipsbetweentheprivatesector,thefederalgovernment,theprovincesandacademia.TheCaptureandStorageofCarbonEmissionsTableofContentsBackground……………………………………………………………………………………..1WhatdoesCO2captureandstorageinclude?……………………………………………………2WhydoesCO2captureandstoragerepresentasignificantopportunitytohelpCanadameetitsKyototargets?………………………………………………………….4DeploymentofCO2CaptureandStorageTechnologies–StrategicConsiderations……………5CurrentCO2CaptureandStorageActivitiesinCanada…………………………………………7InternationalCO2CaptureandStorageActivitiesofInteresttoCanada……………………….11APathForwardforCanada……………………………………………………………………..13OtherActionsNeededforTechnologyDeployment…………………………………………....17NextSteps………………………………………………………………………………………18Bibliography…………………………………………………………………………………….19TheCaptureandStorageofCarbonEmissions1BackgroundCanadasignedtheKyotoProtocolinDecember1997,committingthecountrytoworktowardtheratificationofabindi