Project Collaboration and Funding Support in 2011/12

The Global CCS Institute works collaboratively to build and share the expertise necessary to ensure that carbon capture and storage (CCS) can make a significant impact on reducing the world’s greenhouse gas emissions.

One of the ways that it does this is through providing limited funding support to CCS projects around the world in return for knowledge sharing reports that the Institute disseminates for the benefit of the broader CCS community.

In the financial year 2011/12, the Institute is pursuing a targeted and focused approach to maintaining its strong relationship with CCS projects, and to gaining further knowledge and information on CCS. This new program of support will see:

• Requests for quotations sent out before the end of February 2012 to projects that the Institute sees as well positioned to provide Targeted Reports focusing on important aspects for CCS deployment. A list of the Targeted Reports for the current financial year is provided below.
• Direct engagement with suitable projects in key strategic regions of the world with a view to negotiating and concluding a small number of Funding Agreements. The targeted regions for this financial year 2011/12 have been identified with a focus on filling strategic gaps in the Institute’s current portfolio of project support activities and comprise a particular focus on China and the Middle East and North Africa.

The Institute will apply a standardised evaluation process and predefined set of criteria for the selection of suppliers of reports and funded projects. The set of criteria is described below. However, please note that the Institute reserves the right to amend the evaluation criteria, where in its discretion, it is deemed appropriate and that any such amendments will be communicated both on this website and via direct communication with parties requested to submit a quotation (but prior to the receipt of any quotations).

The Institute will treat applications and any supporting documentation as ‘commercial-in-confidence’ and will adhere strictly to its probity policy.

The overall budget for project support activities and acquisition of knowledge sharing reports for the benefit of the broader CCS community in this financial year amounts to AU$10 million.

Any queries or expressions of interest in relation to the Institute’s CCS project engagement and support activities should be directed to klaas.vanalphen@globalccsinstitute.com. However, please note that the Institute will be directly making contact with identified projects and parties considered appropriate to deliver Targeted Reports or enter into Funding Agreements.

Targeted Reports Overview

1: Analysis of capture technology components

A literature review at capture technology component level is proposed to establish trends in capital cost and energy reduction potential. The data gathering focus on R&D activity is initially limited to funded or OEM technologies (pre\-vetted concepts with real prospect) and will act as a pilot for a technology R&D status review.

2: Relative permeability guideline

Relative permeability curves of brine-CO₂ are important parameters to model plume development in storage reservoirs.

1. Phase 1 will provide a guideline for comparison of current methods and provide a library of existing curves suited to different reservoirs, thus complementing the Storage Compendium.
2. Phase 2 will address data gaps identified in Phase 1 by analysing selected reservoir samples.

3: Making the business case for CCS projects: more insights

Building a viable business case for a CCS projects is a complex process that requires both the project economics and the risks to be understood. It is proposed to review and compare projects’:

• overall business plan and project economics;
• risks to private sector investment, including project financing;
• risk management frameworks;
• financing and commercial structures; and/or
• role of government.

4: CO₂ networks and hubs: participants, roles & commercial structures

The concept of CO₂ networks is a strong driver for CCS developments in Europe, MENA and Australia. A basic business model providing financing options and commercial structures is proposed to be developed, enabling over time each component involved in the CCS chain/network to be monetised.

5: CO₂ transportation – shipping

In Europe and Australasia, where a great part of the potential storage is offshore, growing attention is being paid to ship transport. To further underpin its importance, it is proposed to provide more detail to existing ship transportation concepts in terms of their performance, cost and safety issues.

6: Community communication on key risks of CCS projects

Social science literature provides an understanding how people evaluate project risks but more work is required in this area to capture learnings from early CCS projects on what constitutes effective communication of risks and benefits of CCS projects to local communities.

7: Mitigating unexpected CO₂ migration

There are many ways to remediate situations where CO₂ is not migrating as expected in the subsurface. This document will provide an overview of methods used to mitigate unwanted CO₂ movement and will be of use to regulators and proponents.

8: Balancing key contracts for CCS projects

One or more case studies on how CCS proponents have managed/reached a package of supply and off-take agreements, performance guarantees, warranties, IP and non-disclosure, etc.

9: CCS public funding programs – Lessons Learnt

Review CCS funding programs around the world to:

1. create an overview of their workings and requirements; and
2. document lessons learnt in relation to their effectiveness / implementation, drawing on interviews with funding program managers and project managers.

Evaluation Criteria – Funding Agreements

Eligibility Criteria

In order to be considered for Global CCS Institute funding agreements, applicants must clearly show that their proposed project meets the following qualifying criteria. Applicants must:

• be a Member of the Global CCS Institute;
• be involved in the development of a mid/large-scale CCS facility that seeks to integrate capture, transportation and storage; and
• hold government support (tacit and/or financial) for the development of the CCS project.

Assessment Criteria

All applicants must address the following assessment criteria in their funding proposals:

• understanding of the Institute’s business objectives and strategic focus areas;
• alignment of proposal with the targeted ‘strategic gaps’ identified by the Institute (e.g. in terms of sector/region);
• maturity and viability of the project (preference for projects in the define, execute and operate phases of the project lifecycle);
• quality of the proposed work plan and the level of alignment of individual reports with identified knowledge gaps;
• acceptance of the Institute’s legal term sheet;
• proven ability to act as a strategic partner and trusted adviser for the Institute;
• overall quality of proposal and methodology; and
• price (‘value for money’).

Evaluation Criteria – Targeted Reports

Eligibility Criteria

Nil

Assessment Criteria

All applicants must address the following assessment criteria in their quotations for providing a Targeted Report:

• understanding of the Institute’s business objectives and strategic focus areas;
• alignment of proposal with a targeted knowledge gap;
• alignment of proposal with other ‘strategic gaps’ identified by the Institute (e.g. in terms of sector/region);
• quality of proposed resources to undertake the report and relevance of experience;
• acceptance of the Institute’s legal term sheet;
• proven ability to act as a strategic partner and trusted adviser;
• overall quality of proposal and methodology; and
• price (‘value for money’).

Note: Assessment criteria in bold are different between funding agreements and targeted reports.