As of September 30, 2016, the Carbon Capture and Sequestration Technologies program at MIT has closed. The website is being kept online as a reference but will not be updated.
Canada CCS Financing Overview
Canada has invested substantially in CCS technologies and sees them as a means by which the country can increase its oil production to meet the population needs but also to reduce emissions from that production. Canada's CCS Technology Road map of 2006 lists the importance of CCS as three fold:
Fossil fuels are of national importance to the country as Canada is endowed with a wealth of fossil fuel resources and has a well built industrial sector around harvesting and distributing that resource. Canada's National Energy Board expects fossil fuel usage to continue to dominate energy demand for at least the next 100 years. To make a full break away from fossil fuels would require enormous government subsidies to drive the market, which Canada feels is unlikely to work in the long run.
By using captured CO2 it would allow Canada to increase its current reserves through EOR. Canada is also geologically well situated to store what is not needed for enhanced oil recovery (EOR).
Canada's climate change plan concludes that CCS one was of the potential technologies that could help the country to meet its emissions goals.
In 2007 the Alberta and Federal Governments established a Task Force on Carbon Capture and Storage. Its mission was to provide methods by which government and industry can collaborate to further CCS opportunities in Canada. In its 2008 report, the CCS Task Force presented out three immediate actions to be taken to allow Canada to progress down the path of full CCS deployment. These actions are outlined below (in bold italics) as well comments on Canada's advancement in that area.
The Federal and Provincial governments should allocate $2 billion in new public funding to leverage funding for first CCS projects.
This action is outlined as funding the first set of three to five CCS projects will result in five MT of annual CO2 reductions from CCS. It will initiate the process for getting Canada on the pathway towards a made-in-Canada solution for reducing emissions and towards global leadership in CCS. The funding will be distributed through a competition and all projects should be on-line by 2015.
Canada’s Economic Action Plan invests $1 billion for clean energy research and demonstration projects, including $650 million for large-scale carbon capture and storage projects. CCS projects can obtain funding through the ecoENERGY fund, the Clean Energy Fund program and State Governments.
The Government is investing $140 of the $230 million ecoENERGY Technology Initiative on projects to advance carbon capture and storage technologies. A number of CCS demonstration projects have been selected from numerous proposals to receive government funding. The funding share is in brackets.
Heartland Area Redwater Project (HARP) (ecoEnergy fund $4M)
Alberta Carbon Trunk Line (ecoEnergy fund $33M)
Transalta Pioneer Project (ecoEnergy fund $27M) Cancelled
The Clean Energy Fund is providing nearly $795 million over five years to support research, development and demonstration projects to advance Canadian leadership in clean energy technologies. In Fall 2009, three carbon capture and storage projects were announced in Alberta, totalling $466 million from the fund. The funding share is in brackets.
The Government of Alberta has awarded funding for 2 large scale projects from its $1.3 billion CCS fund and signed letters of Intent. The funding share is in brackets.
Previous projects which were considered for the project were:
Swan Hills Synfuels (Gov. Alberta $290) Suspended until gas prices increase- It will keep the award money
TransAlta Pioneer Project (Gov. Alberta $436M) Cancelled
November 2, 2010. The Government of Alberta, Canada, released The Carbon Capture and Storage Statutes Amendment Act, 2010 (Bill 24) which guides how large scale CCS projects will continue. Bill 24 stipulates that the Alberta government would accept long-term liability for injected carbon dioxide once the operator provides data showing that the stored CO2 is contained. It would also establish a fund financed by CCS operators for ongoing monitoring costs and any required re mediation.
The Government of Alberta's 2011-12 budget released in February 2011, revealed cuts to the environmental department causing a delay for financing of CCS projects. However the budget for EOR projects increased by 21%.
The Government of Saskatchewan has approved a $1.24 billion project. Backed with $240million from the federal government, SaskPower will rebuild the aging Unit 3 of the Boundary Dam Power Station with post-combustion carbon capture.
Authorities need to clarify pore space ownership and disposition rights. Additionally, there must be long-term liability transfer from industry to government.
In October 2010, the Government of Alberta passed The Carbon Capture and Storage Status Amendment Act (2010) or bill 24. This Bill clarifies pore space ownership, long-term liability and creates a post-closure stewardship fund which will cover ongoing monitoring remedial work. Link to the Government of Alberta CCS Legislation page.
Governments, Federal and Provincial, should aim to craft policies that create potential commercial value for CCS activities.
The Task Force indicated that public support for CCS was highly with 64 percent of the public in 2005 being open to the idea of government financial support for CCS. Canada, unlike many other countries, appears to have the necessary public support to allow these projects to move forward.
In September 2008 the Canadian Carbon Capture and Storage (CCS) Network was created under the direction of the Council of Energy Ministers. It is a federal/provincial/territorial government-based network whereby government officials work collaborative to address key CCS issues of common interest across Canada.
Canada seeks to collaborate internationally and in July 2009 joined the Global Carbon Capture and Storage Institute (GCCSI).