1. From Research to Application Best Practices George Teather and Suzanne Lafortune Performance Management Network Inc. george.teather@pmn.net suzanne.lafortune@pmn.net

2. Challenge Canada is relatively strong in conducting basic research, and weak in transforming scientific knowledge into products and processes that are commercially successful Well known “valley of death”, gap between early stage research (gov’t funded) and development of commercial applications (industry funded) Innovation system includes many factors – Hi percentage of R&D performed in universities, focused on basic research – Industry funding and carrying out research low (OECD) – Financial system, tax credits, innovation support system, Policies and support for translation of R&D to application have not produced desired impacts

3. Linking Research and Application Through Partnerships – A Case Study Natural Resources Canada’s Clean Electrical Power Generation Program (CPEG) – objective to reduce environmental impact of Canada’s electrical power generation – Clean Coal and Carbon Capture and Storage (CCCCS) subprogram objective to increase efficiency of fossil-fuelled power generation, primarily coal Canada has over 100 year supply of coal, in several Western provinces coal fired power generation is a major source of electrical power Electrical power generation is capital intensive, stations are very expensive to construct, with 40 year lifetime, long lead times, regulatory oversight CCCCS is leading development of innovative technologies associated with improving generation efficiency, capturing CO 2 from emissions and storage in deep geological formations CCCCS carrying out a combination of early, mid and late stage R&D with a wide range of partners

4. Research and Development Spectrum Basic Research Proof of concept / Invention Early-stage technology development Product development Production / marketing CCCCS carries out research projects in this area of the R&D spectrum: - Private sector firms need this type of research as a precursor to creation of a commercial product - The risk for this type of research is high and private sector firms are often unwilling to invest in these types of projects without additional support - This type of research carried out in partnership is more likely to benefit a range of private sector firms who can adopt / adapt the results for further product development and commercialization

5. CCCCS Characteristics Late stage R&D to develop and test technology before actual implementation by industry Use pilot plants to test technological innovations and measure performance Research program is supported by co-funding from federal gov’t and 16 member consortium (public and private electrical generators, petroleum companies, power equipment manufacturers and gov’t departments) CCCCS proposes research to consortium who choose which projects to fund

6. CEPG Reach Public Partners – other research agencies, US DOE, Norway Research Council, universities Private Sector Partners – engineering firms (design and construction) – manufacturers (power plant and related equipment) – utilities using fossil fuel power generation – oil and gas producers Stakeholders – Government (policy makers, regulators) – International Energy Association

7. Project – Gasification of Coal and Other Fossil Fuels Integrated Gasification Combined Cycle (IGCC) power generation systems provide reduced CO 2 emissions, however problems with excessive downtime for maintenance CCCS pilot plant used to test gasification system performance under range of conditions, coals Partners - public and private sector – Electrical utilities, gasification system product developers, coal producers, federal regulator, US DOE Outcomes – Combustion system – improved components – Market uptake results used in engineering design study for 270MW coal gasification demonstration plant results and test facilities used by firms in development of gasification technology

8. Project – Coal Gasification Integrated Gasification Combined Cycle Power Plant (IGCC) – Improved efficiency, separation, removal of pollutants, CO 2 capture – Higher capital cost, excessive downtime Project Partners – Universities, US DOE, IGCC equipment producers, Western utility, coal producer, gov’t regulatory agency Results – Pilot plant facility for testing – Improved models, technology to reduce downtime – Data on performance of Western coal, pollutants Application – Several IGCC pilot and demonstration projects – Design of Western Canadian 270MW IGCC demonstration facility with CO 2 capture – Development of national policies and regulations for noxious and GHG gas emission levels for large emitters using fossil fuel combustion (CO 2, NO x, SO 2, Hg, particulates) Hi

9. Project – Oxy-fuel Combustion and CO 2 Cleanup and Compression Second generation oxy-fuel combustion – produces CO 2 rich flue gas, easily captured for storage – reduced size and cost compared to air-based system – design of improved burners, combustor Design, construction of pilot mobile CO 2 capture and compression unit, capable of separating trace contaminants (NO x, SO x ) Partners – Consortium of 18 public, private electrical power organizations, US DOE – Combustion equipment manufacturers, gas liquifaction companies Results – Facilities NRCan pilot combustor and compression systems incorporating new technology – Take up technology transfer, non-disclosure agreements to utilize technology commercially use of technology in 20 MW oxy-fuel demonstration plant in Spain Hi

10. Project – Long Term CO 2 Storage CO 2 produced from fossil fuel fired electrical power generation is a major contributor to GHG emissions, factor in global warming Project involves multi-year study of CO 2 injection in Weyburn/Midale oil fields - largest full-scale study of CO 2 storage in deep geological formations, over $60 million over 10 years – economic /environmental benefits (increased oil production, CO 2 storage) Partners – Oil field owner, provincial and federal governments – International Energy Agency, US DOE, EU, Japan, oil producers, utilities, many research organizations Results – Geological, reservoir, CO 2 migration models – Predict CO 2 storage capacity of Western Canadian, US oil fields – Best Practices Manual - protocols for design and implementation of CO 2 storage in oilfields – Support for gov’t regulations for EOR using CO 2 Hi

11. Project – Supercritical CO 2 Brayton Cycle System Design Next generation alternative to conventional steam power generation – higher efficiency – reduced size and cost – suitable for both fossil fuel and nuclear power plants Research – develop a proof-of-concept design for 100MW zero emission fossil fuel unit, and construct and test key components Partners – Carleton University, Sandia National Laboratory (DOE), SaskPower, Saskatchewan provincial gov/t, consortium of 18 public, private electrical power organizations, equipment manufacturers Results – Developed model for 100MW S-CO 2 system, used to simulate performance – Test rig constructed to examine performance of supercritical CO2 in innovative heat exchanger Take up – Strong interest from Saskatchewan gov’t and SaskPower to test technology – Discussions with US DOE to cofund a pilot demonstration unit marrying S-CO 2 cycle with NRCan Generation 2 Clean Coal Technology at SaskPower generation station

12. Summary – Best Practices Long term commitment and funding by federal department research Strong partnerships with both public and private sector organizations – Research, co-developers, power plant designers, technology manufacturers, power plant operators, government Range of projects, from next generation technologies to incremental improvement of existing approaches Participation in identifying priorities and selecting projects and co- funding by public and private sector partners Facilities enable demonstration of performance of new technologies under range of operating conditions, reducing risk for users

13. Outcomes / Results Political pressure from environmentalists, public about CO 2 and global warming is driving gov’ts and sector to respond After many years of R&D and testing, have some technologies ready to move to advanced pilot plant / demonstration stage, or utilization in existing power plants In setting regulations, governments needed to know what can be achieved in next generation power plants Sector (private and public) is beginning to respond and utilize new technologies developed under the program Canada has just set new regulations for coal fired electrical power generation stations – no more CO 2 than natural gas CCCS is one of many initiatives- building pipeline to transport CO 2 from heavy emitters, including coal fired stations to oil fields for injection, EOR and long term storage