ENERGY RESEARCH AND DEVELOPMENT IN ATLANTIC CANADA Andrew Noseworthy Senior Advisor to the President (Energy) Atlantic Canada Opportunities Agency May 26, 2010
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Overview • ACOA, Energy and ACE • Atlantic Canada’s Energy R&D Potential • Challenges and Opportunities for the Future
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ACOA’s Role in Energy ‣ Driven by economic importance of sector ‣ Long‐standing role in supplier development , SME support ‣ Role in R&D facilitation & commercialization via AIF ‣ Role as advocate, facilitator in industry development 3
Some Recent AIF Investments ‣ ‣ ‣ ‣
Atlantic Hydrogen (Fredericton) ‐ technology that efficiently produces hydrogen and carbon from natural gas ($2M) Ocean Nutrition Canada (Dartmouth) ‐ algae‐based biofuel production system ($3M) PanGeo Subsea (St. John’s) ‐ real‐time, 3D imaging technology for oil and gas wells in production ($3M) St. Francis Xavier U (Antigonish) ‐ long term development capacity for geo‐thermal and wind energy ($1.8M)
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AMEC Americas Limited (St. John’s) ‐ forecasting service that will provide real‐time forecasts of the actual power supplied by a wind farm to the local energy grid ($1.3M)
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Atlantic Canada Energy Office (ACE) ‣ Announced by the former Minister of Natural Resources Canada in St. John’s in June, 2008 as “mechanism for the Government of Canada to coordinate and manage its energy related activities in the {Atlantic} region” ‣ ACOA/NRCan partnership – co‐location of staff, joint workplan ‣ Focus federal activities in support of industry development ‣ Key strategic components of ACE workplan: ◦ ◦ ◦ ◦
Investment attraction Trade/Supplier development R&D facilitation, coordination Policy/Advocacy
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Why Is Energy Important to ACOA?
‣ Because energy is a dominant sector that has helped region weather economic storm: ◦ ◦ ◦
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12% nominal GDP for region; 36% in NL 18,000 direct jobs 63% of merchandise exports
Because the petroleum resources of our region have important potential to facilitate further economic growth, development and prosperity ◦ ◦
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NL is largest producer of conventional light crude in Canada Offshore resource potential of Maritimes Basin could be 39 TCF; “rivals potential of Beaufort/Mackenzie Delta” Speculation that region has shale gas potential of over 67 TCF 6
Why Is Energy Important to ACOA? ‣ Atlantic Canada has vast potential in renewable energy resources: ◦ ◦ ◦ ◦
One of best wind energy profiles in North America Strong potential from tidal, wave energy across region One of largest remaining undeveloped hydro projects in North America Significant potential from biofuels; wood waste, agricultural products, municipal waste, algae
‣ Because energy is an R&D/Technology Intensive sector that can spur innovation and enhance our competitiveness ◦
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Pioneering projects and experience in ice/harsh environmental conditions Projects underway in areas like tidal energy, biofuels are at the threshold in seeing new energy technologies develop and become broadly available
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R&D is an Industry Driver 2006 National Advisory Panel in Energy Science and Technology: – “innovations to reduce the cost of energy production and increase energy efficiency could greatly improve the competitiveness of the economy...” – “without a stronger emphasis on energy innovation… we will increasingly rely on technologies developed by others to access our own resources…” – “Canada’s energy sector faces growing concerns about the environmental effects of energy production and use. These concerns must be addressed…”
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Atlantic Canada’s Energy R&D Opportunity ‣ R&D is critical to the further development of Atlantic Canada’s vast petroleum resources ◦ R&D is critical to further understanding and unlocking the potential of gas resources of the Scotian Shelf ◦ New technology and capability is needed as we venture further into new and deeper waters and harsh environments ◦ Responsible exploitation and development of new hydrocarbon resources (shale gas, gas hydrates, etc.) require new approaches and new solutions
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Atlantic Canada’s Energy R&D Opportunity ‣ There is already good collaboration between industry, government and academia on major engineering, geoscience and marine environmental impact projects via: ◦ Petroleum Research Atlantic Canada (PRAC) ◦ Offshore Energy Technical Research (OETR) ◦ Offshore Energy Environmental Research (OEER)
‣ Through the Atlantic Energy Roundtable (2005) and PRAC, there is already a broad consensus that R&D in sector be driven by two priorities: ◦ Improving prospectivity ◦ Reducing Exploration and Production Costs
‣ Building from this work, the AER and PRAC’s Research Advisory Committee (RAC) has helped to develop and further define these priorities
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AER R&D Priorities Development of Marginal Fields Gas Development and Transportation
Deep Water Development
Asset Integrity
Ice Design for Fixed and Floating Systems
Improve Prospectivity
Ice Management
Offshore Pipeline Technology and Protection
Reduce Exploration & Production Costs
Subsea Production System Protection
Flow Assurance
Offshore Safety
Environment
Understanding of Metocean Environment
Reservoir Engineering, Geology & Geophysics Focused Petroleum Related R&D to
CREATE VALUE IN ATLANTIC CANADA
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Atlantic Canada’s Energy R&D Opportunity ‣
Despite our vast clean energy potential, new and continuing work is needed to responsibly develop and commercialize these resources
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Policy and regulatory environment encourages energy R&D and adoption of clean and renewable energy technologies:
◦ Commitment to R&D activities as part of overall benefits plans was a key element of the Atlantic and NS offshore accords ◦ Specific R&D commitments have been agreed to for specific offshore projects ◦ NS renewable electricity plan ◦ Renewable Portfolio Standards, feed‐in tariffs
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We have impressive – and world class – energy R&D capacity, across Atlantic Canada and especially here in Nova Scotia
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Obstacles and Opportunities •
This is a rapidly evolving area and international competition is intense and growing: But we have world class R&D facilities and capabilities
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The local supply sector is mainly focused on
basic materials supply and service support, not R&D: But we have highly innovative companies
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Strengthening our R&D capacity and addressing industry’s needs is not an easy task: But with effective communications and frank exchange, it can be done
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Obstacles and Opportunities •
This is a rapidly evolving area and international competition is intense and growing: But we have world class R&D facilities and capabilities
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The local supply sector is mainly focused on basic materials supply and service support, not R&D: But we have highly innovative companies
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Strengthening our R&D capacity and addressing industry’s needs is not an easy task: But with effective communications and frank exchange, it can be done
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Energy R&D demands major resources But there is recognition by government and industry that relevant projects must be supported 14
The Five Year Challenge • Continued focus on energy R&D by industry, governments and the academic community To assist in new, continued and responsible exploitation of the region’s energy resources To build innovative and world class solutions/products which respond to both local and international demand To create economic wealth and opportunity for Nova Scotians and for Canada To build upon our R&D capacity and understanding where we need to learn from others
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The Five Year Challenge •
A strengthened R&D community focused on industry priorities Coordination and collaboration is key to moving technology along the innovation chain Which recognizes the bridges between basic research/innovation and applied research/technology solutions
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A meaningful network among governments, the academic community and all elements of the industry on the way forward Seamless communications on industry needs and local research capacity between all players needed Early engagement of decision makers and investors and timely dissemination and communication of results
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The Key: Communications and Coordination
Academic Community
Government
Industry
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The Bottom Line • We have world class energy resources • We have world class energy R&D capacity • We have the potential to further use energy R&D as a regional strength and critical building block in the development of our economy • Collaboration and cooperation key
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