1. Energy and the Environmental Challenge
Annual General Meeting & Symposium
Vancouver, June 2011
Eddy Isaacs, FCAE
CEO, Energy & Environment Solutions

2. Outline Trends in global CO2 emissions
Introduce Alberta Innovates - Energy and Environment Solutions (EES)
Climate Change & Emissions Management Corporation (CCEMC)
Oil Sands – GHG reduction strategy
Potential for renewable energy (Alberta case)
Waste biomass conversion
Energy Modelling
Final Comment

3. IEA Sounding the Alarm on Global GHG Emissions
IEA Estimates* (May 29th 2011, Guardian Article)
2008: gigatonnes of CO2
2009: “
2010: “ (highest ever)
Small effect of the recession on emissions
80% of current power stations will still be in use in 2020 locking in 11.2 Gt
Gap in scaling back on nuclear cannot be filled by renewables  increase reliance on fossil fuels
Continued shift to unconventional resources
*Upcoming World Energy Outlook (2011)

4. The Unconventional Reality
Conventional 0il & Gas
Heavy Oil
Tight Gas
Costs
Energy Intensity
GHG Emissions
Bitumen
CBM
Biofuels
Deep Gas
Tight Oil
Shale Gas
Gas-to-liquids
Gas Hydrate
Oil Shale

5. The Global Energy Intensity of Producing and Refining Crude Oil will Continue to Increase

6. Significant Tight Oil Resources
Resource between 10 to 20 BB
2010 Prod. ~ 400 kBbl/d
Resource estimates likely low
Prospective plays could add more resource
Tuscaloosa - central Louisiana and southern Mississippi may hold resource of 7 BB
Unconventional Oil Sub-Group, National Petroleum Council –Dec Draft

7. Outline Trends in global CO2 emissions
Introduce Alberta Innovates - Energy and Environment Solutions (EES)
Climate Change & Emissions Management Corporation (CCEMC)
Oil Sands – GHG reduction strategy
Potential for renewable energy (Alberta case)
Waste biomass conversion
Energy Modelling
Final Comment

8. Energy & Environment Solutions (EES)8
Energy & Environment Solutions (EES)
Who we are?
Technology arm of the Alberta Government in energy and environment
One of four new corporations launched in January 2010 under the Alberta Innovates banner
What we do?
Position Alberta for the future in energy and environment
Identify, evaluate, select technologies and partners
Invest in research & technology with industry & international collaborators
From To

9. EES Strategic Priorities – Expanded Mandate and More Balanced Programs

10. EES Technical Arm of CCEMC*
A new approach for advancing transformative technology
16 projects approved in Round #1 and #2
Energy Efficiency : 12 projects - $33 M
Renewables: 5 projects - $38 M
Cleaner Energy Production and CCS: 5 projects - $28 M
Round 3 – announcement shortly
Round 4 - underway
*Climate Change & Emissions
Management Corporation

11. Outline Trends in global CO2 emissions
Introduce Alberta Innovates - Energy and Environment Solutions (EES)
Climate Change & Emissions Management Corporation (CCEMC)
Oil Sands – GHG reduction strategy
Potential for renewable energy (Alberta case)
Waste biomass conversion
Energy Modelling
Final Comment

12. EES’ Oil Sands Technology Framework - Room to Improve LCA* Emissions
Research & technology adaptation costs
Large scale deployment
Time horizon
Capacity – human, infrastructure
Efficiency improvements – thermal recovery, mining, upgrading
Energy intensity of water treatment for steam
New wave - efficient oil sands production technologies
Next generation upgrading technologies - integration with gasification and CCS
Partial upgrading
Integration of renewables and nuclear
*Life Cycle Analysis

13. Impact of Increased Water Recycle on GHG Emissions
*zero liquid discharge
EES Study:
Assess Impact of ZLD* on energy use
Capital & operating costs
New technology opportunities
9 Companies , ADOE, AENV, ERCB

14. Our Focus - Advanced Technologies to Decrease GHG Emissions and Water Use
Decrease Fresh water Use
Decreasing GHG Emissions
SAGD, CSS
Best-in-class SAGD
Energy Efficiency
Steam-solvent
Electrical heating
Combustion
Non-aqueous
Extraction
Surface Minning
refining, mining
Current
years
years
CCS
In situ and Mining

15. range of conventional oil
Potential for Oil Sands to be as GHG Clean as Conventional?
#3 in 2018 4 3 2
range of conventional oil

16. Outline Trends in global CO2 emissions
Introduce Alberta Innovates - Energy and Environment Solutions (EES)
Climate Change & Emissions Management Corporation (CCEMC)
Oil Sands – GHG reduction strategy
Potential for renewable energy (Alberta case)
Waste biomass conversion
Energy Modelling
Final Comment

17. Alberta’s Renewable Energy Resources
Bioenergy:
In 2009, Alberta produced 40+ million tonnes of grain and biomass from crops. The forest industry harvested 24 million cubic meters of wood.
Geothermal:
Solar:
Alberta sunny
enough?
Wind:
Harvest heat
from 400,000+
oil & gas wells
600 MW + current
10,000 MW proposed

18. Bioenergy Drivers and Challenges
Large resource for
decentralized power and heat generation
C-Neutral Fuel status
Incentives for a wide variety of bioenergy products
Renewable Fuel Standards
Biofuels Credit Program
Greening Energy production
CCEMC*
Challenges
Sustainable supply
Low energy density
Energy efficiency
Cost
Life Cycle Analysis challenges C-Neutral designation
* Climate Change and Emission Management Corporation

19. Edmonton Waste Management Centre with MSW Biofuels Facility
Advanced
Energy Research
Facility
Biofuels
Facility
Courtesy: City of Edmonton

20. Advantages of Biofuel Plant
MSW 100 million t/yr
90% reduction of landfill
GHG reduction of more than
3 t of CO2 per tonne of waste
Eliminates methane emissions from land sites
Replacement of fossil fuel/coal
CO2 removal and recovery
Meets renewable fuel mandates
Biofuel Plant
Ethanol 35 million
litres/year

21. Advanced Energy Research Facility (AERF) December, 2010
Pilot Plant
Research Building
AERF Management Structure
Joint EES/City Steering Comm.
Technical Committee
Schedule
Commissioning July 2011
Issue prospectus
Invite expressions of interest
from process developers and
R&D organizations
Courtesy: City of Edmonton

22. Advanced Gasification & Syngas Plug-and-Play Pilot & Bench Scale R&D Facility
Gasifier
Syngas
Cleanup
Acid gas
removal
CO2
Recovery
Syngas
Reformer
Methanol
Synthesis
Feed
System
Bench-scale
Research
Facility
R&D for Biofuels Industry, universities & other initiatives
Test biofuels, coal, coke and fossil-biomass blends
Evaluate advanced membrane processes- O2, CO2, H2
R&D on advanced syngas conversion processes
Unique facilities can attract global players

23. Outline Trends in global CO2 emissions
Introduce Alberta Innovates - Energy and Environment Solutions (EES)
Climate Change & Emissions Management Corporation (CCEMC)
Oil Sands – GHG reduction strategy
Potential for renewable energy (Alberta case)
Waste biomass conversion
Energy Modelling
Final Comment

24. Models to Develop and Evaluate Energy and GHG Emission24
Models to Develop and Evaluate Energy and GHG Emission
The model was the “Long-Range Energy Alternatives Planning (LEAP) System”
LEAP MODULES
The objective is to critically understand the energy, GHG emission and water flows
To assess the impacts of potential policy measures or targets related to GHG mitigation, water management and energy demand and supply
Forecasting tool
Overall aim is to develop a substantive modeling capacity
Dr. Amit Kumar – University of Alberta

25. Long-Range Energy Alternatives Planning (LEAP) System25
Long-Range Energy Alternatives Planning (LEAP) System
Evaluation tool for integrated resource planning and assessing GHG mitigation impact based on set assessments/scenarios

26. Example – Household Sector

27. Final Comment
Canada has the resources and the capacity to become a “Sustainable Energy Superpower”
Persistent visionary leadership is vital
Innovation and technology development - a key part of the strategy
Cost barriers remain a major challenge  technology is key
Balanced portfolio to focus on the key technical, environmental and economic challenges
Significant technology advances are being made through Industry-Government partnerships