Innoventures Canada “I-Can”

1. Innoventures Canada “I-Can” I-CAN Centre for Conversion of Carbon Dioxide Chemrawn XVII & ICCDU IX Conference on Greenhouse Gas Mitigation & Uses July 11, 2007

2. FP Innovations NorCat New Brunswick Research and Productivity Centre What is I-CAN? • Canada’s national applied research and technology commercialization organization • Market based, business-like, public interest • $300 million per annum - 80% industry • 2100 staff • 4500+ customers • Currently operates in 7 provinces and 15 communities across Canada Innoventures Canada

3. I-CAN members have an 80 year history of success • Market oriented • Strong business-oriented leadership • Governed by independent Boards of Directors with strong business experience • Connected to RTOs around the world • Services for development, testing, prototyping, and commercialization • Business-like • Able to fund strategically, Canadian priorities • Flexible, lean, unencumbered by bureaucracy • Diligent results-based business practices • Leading edge approach to commercialization • Public Interest • Create billions of dollars in economic impacts • Triple bottom line - Social, environmental and economic • Focused on critical proof-of-concept and demonstration stage • Science based input to guide policy decisions • Cross-sector and multi-disciplinary Innoventures Canada

4. Background • The world is a natural greenhouse – CO2 is the basis for the organic life cycle. Plant life sequesters carbon, releasing oxygen that supports animal life. GHG also limit global heat loss and provide the environment in which life can be sustained. • In the past century, GHG in the atmosphere rose more rapidly than ever before in recorded history. In the last few decades, global average temperatures began to rise quickly. Public consensus attributes the rise in temperature to GHG. • GHG concentrations and global average temperatures have cycled over geologic time. • Fossil fuel production and use emit large quantities of GHG into the atmospheric. • The largest and most concentrated individual sources of CO2 are coal fired power stations; oil sands projects; gas processing, refining and upgrading; petrochemicals; pulp and paper; cement/lime production and pipeline compressors. • As the major source of Canadian hydrocarbon production, BC, Alberta, Manitoba and Saskatchewan collectively generate nearly half of Canada’s GHG and are the obvious focus for any action to limit Canadian emissions. However, the installed capital in Western Canada is an enormous wealth generator for Canada, an investment whose value must be protected. Innoventures Canada

5. Carbon Cycle Photo- synthesis Atmosphere exchange through ocean surface Living organic matter rivers and ice to oceans Living org. matter WOW DOW Burning of organic matter CO2 for weathering Photosynthesis respiration Fresh Water Land Biota polar POM DOM Rivers into continental basins Oceans Weathering erosion CO2 for weathering and deposition upwelling dead organic matter CaCO2 - rain dead org. matter POM Fossil fuel sediments Inorganic matter segementation Meta morphesis Fossil fuel burning uplift sediments igneous Volcanic gases intrusion Basaltic Oceanic crust Continental crust Rocks Seafloor spreading erosion pluming subduction mantle

6. Potential CO2 Hubs Innoventures Canada

7. GHG Technology Goal “create, develop, adopt and adapt transformational technologies that will break hydrocarbon energy’s linkage with GHG emissions and change the way we look at sustaining fossil energy in a carbon constrained world.”

8. Six major categories of technology opportunity • CO2 capture • Syngas production from bitumen, coke or coal with CO2 capture • CO2 sequestration • EOR • CBM and enhanced CBM • Cleaner sources of steam and power for oil sands development • Nuclear • Electric drive trucks • Process operational efficiency • Reduced energy intensity associated with in-situ hydrocarbon production - chemical (Vapex), biological • CO2 conversion • “Carbonate” products • Genetics for enhanced rates of carbon uptake • Forest management • Biomass based energy production • Bio-fuels • Waste to energy Innoventures Canada

9. I-CAN: Creates Value Weyburn/Midale CO2 Project • Major international project. Provinces, universities and industry are also partners • Phase 1 - long-term underground storage of CO2 is safe and secure • Final Phase – resolve technical issues and provide knowledge for CO2 storage guidelines • Net benefits realized in the order of $500 million Innoventures Canada

10. Selecting an Agenda • Capture, storage, efficiency and alternative energy approaches are well in hand • Canadian research leads the world in many areas, including carbon dioxide in geological storage and energy resource recovery. • Industry is actively working to reduce energy intensity and increase efficiency • Bio-mass energy technology is well-proven • CO2 conversion is the major outstanding opportunity with great potential Innoventures Canada

11. Choosing a platform CO2 + light + chlorophyll = O2 + nCxx • CO2 sequestration in plant and tree biomass has been widely studied. These applications are poorly suited for direct utilization of CO2 from concentrated industrial sources. • Fixation of CO2 through photosynthetic algae shows promise for producing renewable bio-fuels and biomaterials in temperate regions. • Micro-algal mass cultivation has the potential to convert concentrated streams (flue gases) directly into micro-algal biomass that can be processed and fractionated to produce value-added chemical compounds. • Algal biomass is 46% carbon • Goal is to convert upwards of 100 million tpy Innoventures Canada

12. Integrated bio-reactor and bio-gas generator CO2 Fertilizer N, P, H2O Hydrogen Methane Fertilizers Animal feeds Biopolymers Bio-fuels Bio-prods Carbonates Natural Health Prods Chemicals Innoventures Canada

13. Critical Cost Targets • Algae production $10/tonne • Bioconversion $10/tonne • H, CH4, bio-fuels • Average product price $25/tonne Innoventures Canada

14. Technology Issues • Algal genetics and productivity • Strains, separation, growth requirements • Pond design and operation • Light transmission, CO2 distribution and containment • Harvesting and Bio-flocculation • Conversion to biofuels and other products • Bacteria selection, extraction, conversion Innoventures Canada

15. Research Partners • ARC • Algae characterization and genetics, bio-processing, bacterial digestion • CO2 Solutions • carbonate enzymes • CRIQ • recycling, CO2 capture, heavy metals, hydrogeology • ITC • design, controls, etc • SRC • bio-reactors, Kaolin processing, fermentation, algae characterization and genetics Innoventures Canada

16. Hawaii Algae Production Innoventures Canada

17. Microalgae Biofixation References • 1. Bio-fixation of CO2 and GHG gas abatement with micro-algae – US DOE, January 2003 2. Application of Algal photo-bioreactors for CO2 sequestration - NRCan, May 2006 • Micro-algae grow suspended in water and convert water, CO2 and sunlight into O2 and biomass. Studied for over 50 years for food and feed production, wastewater treatment, generation of bio-fuels, nutritional supplements and recently for CO2 capture from flue gases. • Algae advantages include direct use of CO2, high productivity (currently well above 100 tonnes per ha per year), high nutrient contents and ability to grow in brackish, saline, clay, salty and other conditions. • Capital costs estimated at about $100,000 per hectare. Innoventures Canada

18. Cost and Schedule • $50 million over 5 years to develop technology to deployable level • $12 to 20 million federal • $12 to 20 million provincial • $12 to 20 million industry • $400,000 for developing research and business plan – completion fall 2007 • Pilot plant operational by 2009 • Commercial scale (5 million plus tpy) demonstration project – timing TBD Innoventures Canada

19. Funding Partners/Supporters • Industry • Committed - Shell, Epcor, Graymont, Nexen, Suncor, • Potential - Transalta, NB Power, Sask Power, Sask Energy, 3M, CNRL, EnCana, XTrata, North American Oil Sands • Provincial Governments • Committed - Alberta (AERI, LSI), Quebec • In Discussion - Saskatchewan • Federal Government • Committed - NRCan • In Progress - TEAM, Industry Canada, SDTC • Other potentials • US DOE, IEA, Energy INet, GE Ecomagination, CO2 Solutions • Supporters and Interested Parties • CAPP, ACR, Conrad, CGA Innoventures Canada

20. The benefits • Leadership • establish Canada as the international leader in bio-conversion and utilization of carbon dioxide • High Impact • deploy at least one process involving chemical and/or biological conversion of CO2 to value-added products by the end of 2010 • potentially reduce CO2 emissions by 100 million tonnes per annum by 2012. • Timely and cost effective • Takes advantage of existing capacity and infrastructure • Reduces duplication and overlap • Builds a new Canadian industry Innoventures Canada

21. Thank you