Carbon Capture Kickstart Introduction
In 2022, the Government of Alberta, through Emissions Reduction Alberta (ERA), launched the Carbon Capture Kickstart (CCK) program – a CAD $40 million investment supporting Front-End Engineering Design (FEED) studies for 11 large-scale carbon capture projects across the province.
In our Lessons Learned from 11 Industrial CCS FEED Studies report, developed in partnership with ERA, we share key findings from the CCK program. To help you navigate the report, this blog series will walk through each of the key technical and operational insights from the FEED studies.
Part 1: How investing in FEED studies speeds up carbon capture projects
Starting in the spring of 2022, 11 industrial scale carbon capture and transportation projects in Alberta began their FEED studies under the Carbon Capture Kickstart (CCK) program, with funding from the Government of Alberta, through Emissions Reduction Alberta.
The goal? To accelerate Alberta’s implementation of carbon capture and storage (CCS) projects by reducing the technical and financial uncertainty that often delays these large-scale investments.
The program builds on Alberta’s global leadership in this space, identifying key knowledge gaps, driving partnerships and innovation, and accelerating project financing and deployment in Alberta.
FEED Study: Crucial step in CCS development
A FEED study develops a project’s scope, defines technical requirements, and determines if a CCS project is economically feasible. Ultimately, these studies help organizations make an informed Final Investment Decision (FID) prior to development. Although these studies take a significant amount of time and money (up to 5% of a project’s value), it is money well spent given that CCS projects can cost upwards of several billion dollars upon finalization.
And the investment doesn’t stop there.
At the start of the program, it was estimated that if these projects (collectively) were to reach a successful FID, they would have the potential to generate over CAD $20 billion in capital expenditures, create thousands of jobs, and reduce approximately 24 million tonnes of emissions annually. This reduction is equivalent to nearly 10% of Alberta’s annual industrial emissions.
Each CCK FEED study examined essential areas for building a CCS facility and determining a project’s feasibility, including:
- Site considerations
- Capture technology selection
- Flue gas characterization
- Energy requirements
- Cooling technology
- Water requirements
- Solid and liquid waste
- Secondary emissions
- CO2 transportation and storage
- Execution considerations
In this blog series, we will highlight lessons learned from each of the areas above, including invaluable insights on how to overcome the technical, operational and economic challenges associated with implementing CCS technologies. We’ll also cover preliminary outcomes, such as the Levelized Cost of Capture, which is a critical metric for evaluating capture projects today.
CCK Program Goals
- Inform investment decisions by improving the understanding of current costs associated with large-scale adoption of carbon capture
- Provide industry and government with an increased line of sight into the feasibility and integration requirements for large-scale CCS projects in Alberta
- Improve the national deployment of funding programs for CCS research and development through collaboration with Natural Resources Canada
- De-risk initiation of industrial-scale carbon capture projects and accelerate follow-up on investments for projects that have favorable study findings
- Enhance Alberta’s position as a leader in the industry by building capabilities and developing a qualified workforce familiar with carbon capture technologies
- Coordinate with the Government of Alberta’s carbon sequestration hub approach
Types of Projects and Capture Technology
The CCK program included projects at large emitter sites across Alberta (spanning 27 different facilities) across various sectors including oil sands, power generation and material production (including cement, fertilizer, forest products and petrochemicals). These projects were selected through ERA’s competitive review process, analyzed by experts in science, engineering, business development, commercialization, financing, and greenhouse gas quantification.
The program supported feasibility or FEED studies on projects that were evaluating relatively well-developed CCS technologies and had the ability to implement large-scale projects onto their existing sites.
The CCK program included projects evaluating pre- and post-combustion capture methods, which are two very distinct approaches to reducing CO2 emissions. Each come with their pros and cons, and the choice depends on factors such as existing infrastructure, economic feasibility, and the specific emissions sources being targeted.
FEED Studies Foster Knowledge
FEED studies can have far-reaching benefits beyond informing FIDs. Even if a FEED study doesn’t end in a positive FID, it generates knowledge and lessons learned that have transferrable learnings for future project improvement and innovation.
Participants in the CCK program committed to several knowledge sharing requirements including participating in knowledge-sharing roundtables, collaborating on whitepapers, and sharing final outcomes in a report that is publicly available for the broader benefit of the CCS ecosystem.
By embracing a culture of continuous learning and knowledge exchange, these studies help ensure that future projects benefit from the collective learnings gained throughout the entire project lifecycle.
The CCK program is a significant investment in Canada’s climate and economic ambitions. The investment has – and continues to – inspire shared learnings about the economic and emissions reduction potential of CCS, positioning Alberta and Canada as leaders when developing CCS technologies the world needs.
Stay tuned for upcoming parts in this series, where we’ll unpack key technical and operational insights from each study area, and explore what they mean for the next generation of carbon capture projects.
Note: The lessons learned are as of July 2024. While the studies were initially intended to be complete by end of 2024, the majority will now be completed by end of 2025. At the time of completion, all projects will publish final public reports summarizing FEED outcomes. Final metrics, including costs and emissions reductions, will be collected, analyzed, and disseminated.
Funded by Emissions Reduction Alberta which receives its funding from the Government of Alberta through the Technology Innovation Emissions Reduction (TIER) Fund.