North America

Canada

Canada continues a robust large-scale CCS demonstration program (Figure 12), which includes:

  • the Great Plains/Weyburn–Midale project, which continues to inject around 3 Mtpa of CO2 for EOR;
  • three LSIPs that are in construction (Execute stage), Sask. Power’s Boundary Dam project, Enhance Energy’s Alberta Carbon Trunk Line (ACTL) with Agrium and Shell’s Quest; and
  • two projects (Enhance Energy’s ACTL with Northwest Sturgeon Refinery and Swan Hills Synfuels) that may be in a position to progress to a FID in 2012-13.

Following the formal approval issued by the ERCB regarding Shell’s Quest project in July 2012, Shell Canada announced on 5 September 2012 that it would go ahead with the project. The project is scheduled to come online in 2015 and will capture more than 1 Mtpa of CO2 for injection into an onshore deep saline formation. Meanwhile, in April 2012, Trans. Alta announced the cancellation of its Project Pioneer, noting that while costs and technology performance were as expected, the potential revenue from CO2 sales and offset credits were insufficient to justify the project at the current time.

At the pilot scale, Husky Energy Incannounced in May 2012 that it had started operations at its ethanol plant in Lloydminster, Alberta. Around 90,000 tpa of CO2 will be captured at the plant and transported by truck to enhance recovery in Husky’s heavy oil projects.

FIGURE 12 North America map of LSIPs

In April 2012 the formation of the Canadian Oil Sands Innovation Alliance was announced. This group of 12 major oil sands developers has the objective of mitigating the environmental impact of oil sands projects and has identified GHG emission reductions as one of the four main areas of focus for the Alliance, with CCS expected to play an important role. In Alberta, the Regulatory Framework Assessment project, which aims to develop world class regulations for all elements of CCS, is expected to report its recommendations to the Alberta Minister of Energy by the end of 2012.

United States

The US continues to be the country with the largest number of LSIPs, with 24 active and planned projects (Figure 12). The US also has the largest number of active projects, with four projects in operation and four in construction (Execute stage). In addition, the US has the most advanced portfolio of projects. All of the 16 US projects in planning are either at the Evaluate or Define stage, and their continued progress over past years is largely driven by domestic demand for CO2 for use in EOR. One LSIP, the Good Spring IGCC project in Pennsylvania (Identify stage) was removed from the Institute’s LSIP listings in June 2012 after its proponent, Ember. Clear Corporation, announced the project was restructured from a coal-based IGCC to a natural gas-based combined cycle plant (NGCC) without CCS.

The US DOE is providing financial assistance to five power and three industrial LSIPs (see section 3.3). This includes funding to three of the projects which are under construction. The Air Products Steam Methane Reformer EOR Project; the Illinois-ICCS project; and the Kemper County IGCC Project are expected to begin operations in 2012, 2013, and 2014 respectively.

In addition, the DOE is continuing to support nine large-volume (≥1 Mt) CO2 injection tests under seven Regional Carbon Sequestration Partnerships. The Southeast Regional Carbon Sequestration Partnership (SECARB) began injection in Mississippi in 2009, and the Midwest Geologic Sequestration Consortium (MGSC) began injection in Illinois in November 2011. The majority of current US LSIPs include the planned use of the captured CO2 for EOR, which is reflective of the improved economics of utilisation coupled with storage. The DOE’s integrated coal program technology roadmap is based on continuous technology development, designed to reduce the cost of capture and establish the safety and efficacy of CO2 storage.