On December 2, 2021, the Alberta government issued a request for full project proposals for carbon sequestration hubs (RFPP). The Province recently requested Expressions of Interest (EOI) from companies interested in developing and operating a carbon sequestration hub in Alberta.
These voluntary submissions have helped to inform the Request for Full Project Proposals (RFPP). The government has received many EOI submissions that illustrate a range of proponents (large and small), emissions sources, and storage scenarios across Alberta.
To meet the large interest that has been expressed and move forward in a manageable manner, Requests for Full Project Proposals (RFPP) will be conducted in phases based on geographical regions of the province. The Province recognizes the need for timely development of sequestration hubs and allocation of sequestration pore space.
Phase One of The Alberta Government's Request for CCUS Full Project Proposals
In the first phase, the Province is Requesting Full Project Proposals (RFPP) from companies interested in building, owning, and operating a carbon sequestration hub for emissions from Alberta’s industrial heartland region as identified in the following figure:
This figure can be found in page 4 of the Alberta Government's request for CCUS full project proposals for carbon sequestration hubs here.
The next phase will be issued in the spring of 2022. It will include the selection of successful proponents for the first phase targeted for the end of March 2022.
The Province is interested in advancing a strategic hub concept through a competitive process (this “process”) in which a carbon sequestration hub will be an area of pore space (“Location”) overseen by a private company that can effectively plan, enable, and undertake carbon sequestration of captured carbon dioxide from various emissions sources as a service to industrial clients.
Successful proponents, meeting the RFPP criteria, will be invited to enter into an agreement with the province. They will be expected to have the technical, financial, and operational capacity to manage such an important aspect of Alberta’s energy system. It is also important to mention that the province can select more than one proposal and carbon sequestration hub to service each region.
How Full Project Proposals Will be Evaluated by the Alberta Government
Full project proposals (FPP) will be evaluated by the Province, and proponents who best meet the RFPP criteria will first be invited to enter into an agreement with the Province to further evaluate the identified area of interest (i.e., evaluation permit, as supported by a Monitoring, Measurement and Verification (MMV) Plan). This process will ultimately facilitate the granting of a carbon sequestration agreement (“Agreement”) to the successful proponent(s), establish the boundaries of the Location, and facilitate the hub manager role.
It is important to consider that an evaluation permit is intended to afford the successful proponent the right to conduct evaluations and testing into deep subsurface reservoirs within the location of the permit to evaluate the geological or geophysical properties in order to determine its suitability for the sequestration of captured carbon dioxide. However, the issuance of a permit alone does not guarantee that a proponent will be guaranteed an Agreement.
The guidelines will also require a level of evaluation information to be included in a RFPP. This might pose challenges for proponents that have conducted any evaluation work to date and are planning on conducting it under an evaluation permit.
These are some of the eligibility and exclusions for participating in the process:
- The process is open to proposals that will service and enable the sequestration of carbon dioxide emissions from multiple facilities
- This process is only intended to provide access to subsurface formations (i.e., pore space) to undertake and enable carbon sequestration as defined in Part 9 of the Mines and Mineral Act and the Carbon Sequestration Tenure Regulation.
- Carbon dioxide must be captured from facilities located within Alberta.
- Projects that inject carbon dioxide as part of enhanced oil recovery (i.e., carbon dioxide EOR), or formation acid gas injection, will continue to operate under current mineral rights tenure systems – such rights will not be granted through this process.
Submission of Full Project Proposals
Full project proposals will have to be presented in the form established by the Guidelines. This will require details of a proposed project's business model, configuration and execution, the location and the proponent's operational capacity.
In accordance with the requirements of the Guidelines, full proposals will have to be submitted and accepted electronically from January 4, 2022 until February 1, 2022 at 11:59 MST.
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