OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS

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OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
OPPORTUNITIES IN CCS: FINDING
GOVERNMENT FUNDING AND
BUSINESS PARTNERS
PRESENTERS:
MARTIJN VAN DE SANDE, CCUS ADVISOR, NETHERLANDS ENTERPRISE AGENCY
DREW LEYBURNE, ASSISTANT DEPUTY MINISTER – ENERGY TECHNOLOGY SECTOR, NATURAL RESOURCES CANADA
LYNN BRICKETT, CARBON CAPTURE PROGRAM MANAGER, U.S. DEPARTMENT OF ENERGY |FOSSIL ENERGY

MODERATED BY:
PATRICIA LORIA, SENIOR CLIENT ENGAGEMENT LEAD – NORTH AMERICA, GLOBAL CCS INSTITUTE.
OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
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OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
THE GLOBAL CCS INSTITUTE

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                                       governments,
                                   businesses and NGOs

         International                                   Mission: To accelerate
           think tank                                     deployment of CCS

                         MEMBERS       6 locations
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OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
PRESENTATION

            MARTIJN VAN DE SANDE
CCUS ADVISOR, NETHERLANDS ENTERPRISE AGENCY

                                              |   4
OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
CCS deployment
                            support in the
                            Netherlands

                            ›   Scheme and results in short

Source:    Porthos
Bron: P orthos

                            ›   Martijn van de Sande
                            ›   martijn.vandesande@rvo.nl     5
            23 March 2021
OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
SDE scheme for CCS
›   From 2020, the SDE++ designated to fund CCS, but with
    limitations

›   The SDE++ is a yearly competitive tender for support of CO2
    reduction through a large set of technologies

›   The scheme funds the difference between costs and ‘revenue’

                                                                  6
23 March 2021
OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
Results from 2020

                                                            CCS: EUR 2,1 bln for 2,5Mtpa

• Among the CCS applicants are 4 emitters looking to connect to Porthos.
• New rounds will follow this and upcoming years.
• Several storage opportunities are being developed to accommodate industry
  demand.
                                                                                    7
 23 March 2021
OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
Thank you for your attention!

›   More information available at https://english.rvo.nl/subsidies-
    programmes/sde

›   If any questions remain, please let me know now,
›   or at martijn.vandesande@rvo.nl

                                                                      8
23 March 2021
OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
PRESENTATION

               DREW LEYBURNE
ASSISTANT DEPUTY MINISTER – ENERGY TECHNOLOGY
      SECTOR, NATURAL RESOURCES CANADA

                                                |   9
OPPORTUNITIES IN CCS: FINDING GOVERNMENT FUNDING AND BUSINESS PARTNERS
Canada: A CCUS Snapshot
          Centres and Pilot Projects
                                                                                                             Commercial Scale Facilities
CanmetENERGY-Devon – NRCan
                                                                                                       Quest – Athabasca Oil Sands
Lehigh CCS Feasibility Project (under                                                                  Project (CNRL, Chevron, Shell)
development)
Genesee Carbon Conversion Centre (GC3) -                                                               Alberta Carbon Trunk Line – Wolf,
Capital Power (under development)                                                                      Enhance, NWR & Nutrien

AB Carbon Conversion Technology Centre –                                                               Weyburn-Midale (Whitecap, Cardinal)
Capital Power, ENMAXp, InnoTech Alberta
                                                                                                       Boundary Dam – SaskPower
Carbon Engineering’s Innovation Centre
(under development) and Air to Fuels Pilot
Project CO2MENT – Svante, Lafarge, Total                                                                  Recent NRCan Programming Support
                                                                                                             for CCUS Projects / Innovators
CMC Carbon Capture & Conversion Institute
                                                                                                      •     Energy Innovation Program
VeloxoTherm CO2 Capture Demonstration -                                                               •     Breakthrough Energy Solutions Canada
Husky, Svante                                                                                         •     Sky’s the Limit Challenge
CMC CaMI Field Research Station                                                                       •     Clean Growth Program
                                                                                                      •     Oil & Gas Clean Tech Program
International CCS Knowledge Centre

PTRC Aquistore Project                         COSIA-NRG Carbon   Canadian CCUS Companies                         Funding Partners
                                               XPRIZE Finalists          in the 2021 Global
Shand Carbon Capture Test Facility                                       Cleantech Top 100
CCU demonstration platform – Énergie et
Chimie Verte (under development)
CanmetENERGY-Ottawa – NRCan
NRC Advanced Materials Research Facility
                                                                                              Clean Growth Hub: https://www.ic.gc.ca/eic/site/099.nsf/eng/home
Please reach out with any further questions and comments at the following email:

                                                              NRCan’s CCUS Inbox
                                                        nrcan.ccus-cusc.rncan@canada.ca

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2019
PRESENTATION

                  LYNN BRICKETT
CARBON CAPTURE PROGRAM MANAGER, U.S. DEPARTMENT OF
              ENERGY |FOSSIL ENERGY

                                                     |   12
Office of
                                                                        Fossil Energy

                               GCCSI Webinar   March 23, 2021
                                               Lynn Brickett
                                               Carbon Capture Program Manager
                                               Office of Fossil Energy

13 | Office of Fossil Energy                                                        fossil.energy.gov
AUTHORIZATION VERSUS APPROPRIATION - EXPLAINED

➢ Appropriations – Annual
➢ Authorizations - Multi-year or Annual
➢ An authorization must exist for an appropriation
➢ Demo vs. R&D
       ➢ Integrated
       ➢ Separate
       ➢ Multi-year versus Annual

                                            14            energy.gov/fe
CCS DEMONSTRATION PROJECTS

            Air Products Facility (Port Arthur, TX) - 2013
            •   Built and operated by Air Products and Chemicals Inc. and located at Valero Oil Refinery
                in Port Arthur, TX
            •   State-of-the-art system to capture the CO 2 emitted from two large steam methane
                reformers
            •   6.7 million metric tons of CO2 captured and transported via pipeline to oil fields in
                eastern Texas for enhanced oil recovery (EOR) since March 2013

                Petra Nova CCS (Thompsons, TX) - 2017
            •   Joint venture by NRG Energy, Inc. and JX Nippon Oil and Gas Exploration
            •   Demonstrate the Mitsubishi Heavy Industries CO 2 capture technology ability to capture
                90% of the CO2 emitted from a 240-megawatt flue gas stream. (designed to capture/store
                1.4 million tonnes of CO2 per year)
            •   Nearly 3.4 million metric tons of CO 2 used for EOR in West Ranch Oil Field.
            •   Successfully completed DOE project objectives. Oil prices resulting in indefinite
                suspension of operations.
                ADM Ethanol Facility (Decatur, IL) - 2017
            •   Built and operated by Archer Daniels Midland (ADM) at its existing biofuel plant
            •   CO2 from ethanol biofuels production captured and stored in deep saline reservoir
            •   First-ever CCS project to use new U.S. Environmental Protection Agency (EPA)
                Underground Injection Class VI well permit, specifically for CO2 storage
            •   2.1 million metric tons of CO2 stored, since April 2017

                                            15                                                             energy.gov/fe
AUTHORIZATION – DEMO PROGRAM

 ➢ The Secretary shall establish a demonstration program under which the Secretary, through a competitive, merit-
   reviewed process, shall enter into cooperative agreements by not later than September 30, 2025, for demonstration
   projects to demonstrate the construction and operation of 6 facilities to capture carbon dioxide from coal electric
   generation facilities, natural gas electric generation facilities, and industrial facilities

 ➢ Funding - Demos: $500,000,000 for each of fiscal years 2021 though 2024; and $600,000,000 for fiscal year 2025; and
   for activities under the front-end engineering and design program described in subsection (b)(2)(D), $50,000,000 for
   each of fiscal years 2021 through 2024.

 ➢ Appropriation for Demos 2021: $0

                                                             16                                            energy.gov/fe
CAPTURE R&D AREAS
• Power Sector Capture

• Industrial Sector Capture

•   Negative Emission Technologies:
     • Bioenergy with Carbon Capture and Sequestration (BECCS)
     • Direct Air Capture (DAC)
     • Carbon Mineralization of CO2
     • Sequestration of Supercritical CO2 in Deep Sedimentary Geological Formations

                                                17                                    energy.gov/fe
AUTHORIZATIONS VERSUS APPROPRIATIONS- R&D PROGRAM

         Authorization for CCUS                                  Annual CCUS Appropriations
                                                                         2016-2021
                                                                $ millions
                                                                                                               225.3
                                                                                                       217.8
     ➢ R&D: $230,000,000 for each of fiscal years               207.0                                           23.0
                                                                 10.0   196.3 198.7 198.7               21.0
     2021 and 2022; and $150,000,000 for each of fiscal years             10.0    12.0      12.0

     2023 through 2025;
                                                                                                                79.0
                                                                                                        79.0
     ➢ Large-scale pilot projects: $225,000,000 for each         96.0
                                                                          85.3    86.0      86.0
     of fiscal years 2021 and 2022; $200,000,000 for
     each of fiscal years 2023 and 2024; and $150,000,000 for
     fiscal year 2025
                                                                                                       117.8    123.3
                                                                101.0    101.0    100.7     100.7

     ➢ 2021 Appropriations: $225 M
     ➢ Large Pilot $0                                            FY
                                                                2016
                                                                          FY
                                                                         2017
                                                                                  FY
                                                                                 2018
                                                                                          F Y2 0 1 9    FY
                                                                                                       2020
                                                                                                                 FY
                                                                                                                2021
                                                                        Carbon Capture         Carbon Storage

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FOR MORE INFORMATION
     www.energy.gov/fe

             https://www.netl.doe.gov

     • Business page: https://netl.doe.gov/business/solicitations
     • Tips & Tricks
        • Prior FOAs
        • Dunns Number
        • FOA Q&As
     • FedConnect (Cooperative Agreements/Contracts)

Lynn Brickett, Carbon Capture Program Manager, Division of CCUS R&D:
                       lynn.brickett@hq.doe.gov                        19
                                  19              fossil.energy.gov     energy.gov/fe
FEDCONNECT INFORMATION

                         20   energy.gov/fe
INSTITUTE RESOURCES

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THANK YOU!
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                         Annual Report
                                21 JuneResults
                                          | 23|
                                        2018
Back up slides

                 24
23 March 2021
Tender system

  €5 bln

                       27 €/tCO2               76 €/tCO2           90 €/tCO2

           65 €/tCO2               85 €/tCO2               180 €/tCO2          300 €/tCO2

                                                                                        25
SDE++ subsidy: unprofitable component only
›   Base amount: cost price for
    the reduction of CO2
    – Fixed for entire subsidy period

›   Correction amount: product
    price (energy, ETS, hydrogen)
    – Based on real, annual prices

›   Floor price: 2/3 of long-term
    product price

                                             26
Embedding CCUS: SDE++
a)   Base amount: technology cost (€/ton CO2 captured)
b)   Correction price/amount: 2020 average CO2 price (€/ton CO2 captured)
c)   Long term term price: 2020-2034 average CO2 price (€/ton CO2 captured)
d)   Base/Bottom price: 2/3 of long term price (€/ton CO2 captured)
e)   Financial gap / unprofitable top: subsidy (€/ton CO2 captured)
f)   Subsidy intensity: in order to rank technologies with different relevant units with different emission
     factors (€/ton CO2 reduced)
                                                                    f   a   d   b

                        Source: PBL Eindadvies basisbedragen 2020

27
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Correction price / base price

     2020 provisional correction                                            Average CO2 price 2020-2034: €
     amount: € 23,3 / ton CO2                                               37,9 / ton CO2. 2/3 = 25,3 / €
                                                                            ton CO2
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                 https://www.pbl.nl/sites/default/files/downloads/pbl-2020-eindadvies-basisbedragen-sde-plus-plus-2020_3526_27-02-2020.pdf
Cost breakdown for 2 CCS categories

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