NRCan announces competitions for funding under EcoEnergy Technology Initiative

Targeting coal and oil sands production

The federal government has issued calls for proposals to deal with two of the dirtiest sources of energy production as part of its $230-million EcoEnergy Technology Initiative (ETI). Up for grabs is $125 million for technology projects addressing clean coal and oil sands carbon sequestration and storage (CCS), while $15 million is being devoted to projects that reduce the environmental impact of oil sands production.

For the CCS fund, per project funding is expected to range between $5 million and $30 million. The program runs until the end of FY10-11 and targets small-scale field trials and pre-demonstration engineering work leading to large-scale CCS operations.

Announced in January/07 as part of the Conservative government's EcoAction agenda, the full amount of the ETI has now been allocated. Administered by the Office of Energy R&D at Natural Resources Canada (NRCan), the funds will provide between 33% to 50% of total project costs depending on the applicant. Projects conducted entirely by the private sector are eligible for up to 50% of projects costs while those involving public sector organizations are eligible for up to 33%. Total government assistance from all sources cannot exceed 75%.

"There's rich ground to develop and advance energy technologies further," says Graham Campbell, DG of NRCan's Office of Energy Research and Development. "We already do a lot of work in these areas through programs like PERD (Program of Energy Research and Development)."

Applicants have until May 2nd to submit expressions of interest which will be reviewed by applicable interdepartmental committees over the next month. Those invited to submit full applications will be given another month for their submissions. Due diligence is expected to take 6-8 weeks, with all proposals requiring a $1 million or more in ETI funding required to be scrutinized by the ADM Panel on Energy Science and Technology for review and final approval.

"It takes a while to roll out programs of this type," says Campbell. "There are higher-level objectives of the environment, air quality, greenhouse gas emissions which are part of the government's agenda."

early award

Prior to the call for proposals, the ETI contributed $11 million towards a $33-million project for a coal gasification project at EPCOR Utilities Inc's Genesee Generating Station near Edmonton. The project covers the front-end engineering and design of the project which, if the technology is adequately validated, could lead to a full-scale plant which will convert coal into synthesis gas and capture and store CO2. Also contributing $11 million each to the project are EPCOR (a builder, developer and operator of power plants, electrical transmission and distribution networks, water and wastewater treatment facilities) and the Alberta Energy Research Institute.

It's estimated that Canadian coal-powered power plants will emit 126 megatonnes of CO2 annually, while the oil and gas sector will emit a projected 180 megatonnes unless mitigation measures are implemented.

Oil sands and in-situ production are projected to increase five-fold by 2030, with tailing ponds accounting for the single largest source of greenhouse Gas and volatile organic compound (VOC) emissions. The $15-million oil sands fund is seeking projects related to dry stackable tailings and VOC mitigation as well as technologies to detect, quantify, locate and monitor VOCs.

The programs are not open to government scientists or laboratories although some funding may be made available for projects that require expertise resident within government R&D operations.

FMI: http://www2.nrcan.gc.ca/ES/ OERD/english/View.asp?x=1603

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