Carbon capture and storage to Canada

(Last updated: 17 Jun 2009)

Trends and opportunities

The market

Carbon capture and storage (CCS) activities in Canada range from R&D; commercialisation; engineering and economic analyses; regulatory, policy and program initiatives; technologies and processes offered by Canadian companies; to public outreach activities. Involved organisations include these activities and encompass individual companies, research performers, key government agencies, organising structures, coordination mechanisms and funding programs. Canada is also involved internationally in its CCS development efforts.

The government of Canada, the province of Alberta and industry have in recent years formed an effective triple helix of expertise in moving elements of CCS from concept to technical and economic viability at the pilot/testing stage. Key players in this research and implementation matrix include industry consortia (including the recently announced Alberta Saline Aquifer Project, a 19-member industry group, and ICO2N, a 15-member industry group) and key government research and funding agencies charged with moving CCS into the forefront of solutions to the carbon problem. Through the triple helix, Canada has developed expertise over the year in solvent-based, cryogenic separation and membrane filtration.

New regulation supporting CCS in Canada will enforce oil sands developers to implement CCS strategies and ban the construction of new ‘dirty’ coal plants effective 2012. New requirements are said to reduce green house gas emissions by 90 mega tonnes. The rules and regulations are expected to be finalised by 2009 and go into effect by 1 January 2010.

Opportunities

Canada’s challenge (and potentially Australia’s opportunity) includes the need to investigate a labyrinth of CCT technology developments for retrofit and new installations, assess the merits of CCT for electricity generation against other options, identify CCT technology needs for Canada and a strategy for their development and implementation. (Source: Canadian Centre for Energy Information). Canada is continually encouraging the commercialisation and advancement of CCS through new government funding, collaboration in R&D and encouraging industry involvement.

Government funding and initiatives at the federal and provincial level may present opportunities for Australian companies. Some of them are:

• The 2009 Stimulus Plan for Canada, the Canadian Federal Government announced that CDN$2.4 billion over five years will be devoted to clean energy and efficiency projects. The majority of those funds have been reserved for large projects which have the ability to demonstrate the viability of CCS technology.
• Provincial government of Alberta will be investing CDN$2 billion. CCS initiatives by Alberta are aimed to reduce emissions by five million tonnes annually.
• Provincial government of Saskatchewan will invest approximately CDN$.75 billion to CCS development.
• The Canadian Government is also prepared to provide accelerated tax write-offs for companies that invest in CCS-demonstration projects.

Potential areas of opportunity for Australian companies could include:

• Investment and participation in demonstration projects 

• Research and development collaboration with universities, research institutes, government organisations and private companies 
• Partnerships with private firms
• Supply to companies operating CCS projects

Tariffs, regulations and customs

The Canadian Customs Tariff is based on the World Customs Organization's Harmonized Commodity Description and Coding System (HS). It is suggested that companies visit the Canada Border Service Agency (CBSA) website in greater detail to identify any import duties that may apply to their products.

It’s also recommended that companies seek a final ruling from CBSA prior to shipping any product.
CBSA can be contacted at http://cbsa-asfc.gc.ca/contact/general-generaux-eng.html.

General Canada import requirements are also available at the Government of Canada website.

Marketing your products and services

Market entry

Canada is a very open economy that is receptive to new ideas due in part to a strong import culture and deep history of working with other nations. There are; however, a few points to consider:

• Treat Canada as a highly competitive, mature and demanding market that has similar expectations in terms of readiness, competitiveness, and communication when compared to the USA and EU markets.
• Don’t automatically assume that Canada is the perfect ‘springboard’ into the US market. It can be, but many companies find that Canada is a high performing market on its own that can be very rewarding.
• Be humble in your approach and do your research first – as much as Canadians enjoy dealing with Australia the ideas and solutions presented must make sense for the market, be competitive, and show clear ROI.
• Understand that Canadians prefer to establish rapport and that relationships are key.
• Prompt response and easy communication is expected.
• Although Canada and Australia share almost the same legal systems it is proactive to have a legal and taxation contact that can assist quickly when needed.

There are several focused and broad tradeshows and conferences in Canada. These events are a good medium to obtain an understanding of the market and to showcase products/ technologies:

• GLOBE 2010: Vancouver, 24-26 March 2010 – North America’s largest Energy & Environment tradeshow and conference.  
• World Energy Congress: Montreal, 12-16 September 2010

Links and industry contacts

Carbon capture and storage-related resources

Canadian CO₂ Capture and Storage Technology Network – www.co2network.gc.ca 
Integrated CO₂ Network – www.ico2n.com 

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au