When electrification or low-carbon fuels are unable to offer technically or economically viable low-carbon solutions, carbon capture, utilization, and storage (CCUS) provide an important road to emissions reductions for energy and industrial activities.
The government will spend $319 million over seven years on research, development, and demonstrations to increase the commercial viability of CCUS technologies as part of Budget 2021. On the road to net-zero emissions by 2050, these grants will aid organizations in business, education, non-profits, government, and federal laboratories. OERD issued a request for proposals in 2021–2022 with a maximum of $50 million in funding for FEED studies for substantial CCUS facilities.
The three primary focal areas covered by the CCUS RD&D call will all be earlier-stage RD&D initiatives. Each target area will have a unique intake procedure, as shown in the timetables below. On the opening date of the expression of interest phase, separate and comprehensive instructions will be offered for each emphasis area.
Seeking RD&D Proposals for CO2 Capture
The majority of the current conventional capture technologies are suitable for larger-emission sources, and carbon capture systems have been deployed and proved at a large scale at several sites in Canada. These technologies also contribute significantly to the cost of establishing CCUS.
In comparison to commercially available, amine-based CO2 capture technologies, the CCUS RD&D Capture focus area seeks to support the RD&D of next-generation CO2 capture technologies and processes that have the potential to significantly lower capital and/or operating costs of capturing CO2 and increase applicability to different emission sources, sizes, and CO2 concentrations.
R&D projects that request between $500,000 and $2,500,000 (comprising up to 75 percent of total project costs) and demonstration projects that request between $1,000,000 and $5,000,000 (comprising up to 50 percent of total project costs), both over a period of up to five years, are both eligible to apply for funding under the CCUS RD&D Capture focus area.
Both kinds of projects can get non-repayable contributions through the EIP. The Innovation and Clean Growth Programs Terms and Conditions contain more information regarding financing and permissible expenses.
The RD&D Capture emphasis area of the CCUS is open to:
- Legal entities legitimately incorporated or registered in Canada, including companies, industry associations, research associations, standards organizations, for-profit and not-for-profit organizations such as electricity and gas utilities, energy system operators, transmissions owners and operators
- indigenous groups and organizations
- Local organizations
- academic institutes in Canada
- Governments in the relevant provinces, territories, regions, and municipalities, as well as their departments and agencies
The predominant owner of any assets that are bought with money provided by NRCan is anticipated to be the organization that enters into a contribution agreement with NRCan.
Focus Areas & Timelines
- To reduce the cost and improve the efficiency of capturing technologies for various emission sources.
Expression of interest: July 7, 2022
Application deadline: October 3, 2022
- Storage/Sequestration: To identify and create secure, long-term subsurface carbon dioxide storage to aid in the development of affordable storage alternatives across Canada.
Expressions of interest: Fall 2022 opening
- Utilization: To increase CO2’s strategic uses while fostering the creation of energy and cost-effective utilization pathways.
EOI: Will open in the winter of 2023
What Are the Eligible Projects Under This Program?
Projects that enhance negative emissions technologies using solvents, sorbents, minerals, membranes, oxy-combustion, cryogenic separation, chemical looping, or other innovative concepts are eligible for funding under the CCUS RD&D Capture target area. The following qualified projects may apply to the CCUS RD&D Capture emphasis area:
- development of CO2 capture processes (including novel cryogenic and hybrid processes)
- Development of materials and CO2 capture chemistry (e.g. advanced solvents, adsorbents, metal-organic frameworks, covalent organic frameworks, membrane materials, hybrids)
- Technologies for separation based on membranes
- CO2 treatment and purification (including compression for purification)
- Applications of AI, ML, or other computational techniques for the development of CO2 capture-related materials and processes
- Design enhancement to boost operability and input flexibility (e.g., range of flue gas compositions) (e.g., quicker start-ups, better energy integration)
Projects must be advancing early-stage and pre-commercial technologies between Technology Readiness Level (TRL) 2 and 7, with the potential for significant improvement in system cost and performance, rendering them ready for technology transfer, scale-up, and commercialization. TRL definitions can be found in Appendix B.
Projects that replicate operating commercial CCUS facilities and technologies or techniques that remove air contaminants (particulate matter, SOx, NOx, metals, etc.) from flue gas are ineligible.
What Are the Eligible Activities Under This Program?
- Creation, evaluation, testing, and integration of fresh and inventive tools, programmes, and procedures, such as:
Proof of concept technologies, such as field trials, bench-scale testing, pilot plants, and prototypes, where there is a high technical risk
Tools for analysis and modelling software
Pre-demonstration field trials are short-term studies with limited expectations for a long-term operation that are aimed at uncovering additional R&D requirements before the technology can move on to a pre-commercialization demonstration.
- Building capacity and educating (where applicable)
- assessments or characterization studies where there is a large information gap in the natural resources sectors, including data collections and syntheses
For any questions regarding the CCUS RD&D Capture focus area or the CCUS RD&D call more broadly, please contact NRCan at: [email protected]. During regular operations, NRCan will strive to respond within two business days.
Deadline: October 3, 2022