From Research to Application Best Practices

1. From Research to ApplicationBest 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 CO2 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. Basic Research Proof of concept / Invention Early-stage technology development Product development Production / marketing Research and Development Spectrum • 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 CO2 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, CO2 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 CO2 capture • Development of national policies and regulations for noxious and GHG gas emission levels for large emitters using fossil fuel combustion (CO2, NOx, SO2, Hg, particulates) • Hi

9. Project – Oxy-fuel Combustion and CO2 Cleanup and Compression • Second generation oxy-fuel combustion • produces CO2 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 CO2 capture and compression unit, capable of separating trace contaminants (NOx, SOx) • 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 CO2 Storage • CO2 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 CO2 injection in Weyburn/Midale oil fields - largest full-scale study of CO2 storage in deep geological formations, over $60 million over 10 years • economic /environmental benefits (increased oil production, CO2 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, CO2 migration models • Predict CO2 storage capacity of Western Canadian, US oil fields • Best Practices Manual - protocols for design and implementation of CO2 storage in oilfields • Support for gov’t regulations for EOR using CO2 • Hi

11. Project – Supercritical CO2Brayton 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-CO2 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-CO2 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 CO2 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 CO2 than natural gas • CCCS is one of many initiatives- building pipeline to transport CO2 from heavy emitters, including coal fired stations to oil fields for injection, EOR and long term storage