CCEMC-FPP-Guidelines-Final-with-cover1 by huanghengdong


									        Climate Change and Emissions Management
        Climate Changes and Emissions Management
                              (CCEMC) Corporation
                              (CCEMC) Corporation

                         2011 Call for Proposals:
   Cleaner Energy Production and Carbon Capture

                        Full Project Proposal Guidelines
                                     September 27, 2011
                      Online Submission:
Deadline for submission: December 9, 2011 – 4:30 pm MST

    CCEMC is a TM of Climate Change and Emissions Management (CCEMC) Corporation.
Table of Contents

GENERAL INSTRUCTIONS .............................................................................................................................. 3
Section 2: PROJECT OVERVIEW .................................................................................................................. 10
   Part A: Online Application ...................................................................................................................... 10
   Part B: ProGrid Application & Evaluation.............................................................................................. 15
   Part C: GHG Validation Report ............................................................................................................... 27
Appendix A: List of Required Documents for CCEMC Financial Risk Assessment ...................................... 28
Appendix B: Requirements for Validation and Verification of Greenhouse Gas Assertions ...................... 30

2 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
2011 Call for Proposals: Full Project Proposal (FPP)

IMPORTANT: Read ALL the following information, the instructions, and the ProGrid criteria
descriptions BEFORE completing this online application. You will be required to confirm
that you have read the terms, conditions and information in Section 1 before you can
proceed to subsequent sections.


To ensure the consistent evaluation of proposals, the required information must be
presented in the prescribed format. The application consists of three parts:

   1. Online data entry, in which you will enter:
         a. a summary of your project, including expected GHG reductions; and
         b. an overview of the budget for your project

   2. A ProGrid application and self-assessment, which you will fill out off-line and upload
      to your online application as a Pdf document. The ProGrid form will be provided to
      you as a Word document. Your completed and uploaded Pdf document must
      adhere to the following requirements:
          a. it must be no longer than 30 pages
          b. page size must be standard letter size (8-1/2 x 11)
          c. you must use Times-Roman 12 point font
      Failure to adhere to the submission requirements will be detrimental to the
      evaluation of your proposal

   3. A validation report prepared by a third party which validates your GHG emission
      reduction assertion. Please consult the CCEMC Validation Guidance document

You will use the Project ID number previously assigned to your Expression of Interest.

                   2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 3
The Climate Change and Emissions Management Fund (the “Fund”) was established under
the Climate Change and Emissions Management Act (the “Act”). Persons responsible for
facilities regulated under the Act must report annually on their compliance with the Act
and with the supporting Specified Gas Emitters Regulation.

There are three options for addressing a regulated facility’s compliance requirements:
   1. A reduction in the release of greenhouse gases;
   2. The application of emissions offsets in the Alberta-based offset system; or
   3. Payment of specified amounts to the Fund.

The CCEMC has been delegated with the powers, duties and functions of the Alberta
Minister of Environment with respect to the Fund pursuant to the Climate Change and
Emissions Management Fund Administration Regulation. The CCEMC is granted monies to
be used for the purposes of the Fund set forth in the Act.

The CCEMC is an independent, arm’s-length, not-for-profit organization whose mission is to

achieve actual and sustainable reductions in greenhouse gas (“GHG”) emissions, and
facilitate climate change adaptation, through the discovery, development and deployment
of clean technology.

Projects (“Projects”) selected under the FPP process will be required to report on their
CCEMC Project Monitoring

performance in relation to the CCEMC’s overall goals, as well as on Project-specific
indicators established as a part of individual Projects’ contribution agreement
(“Contribution Agreement”) with the CCEMC.

This Call for Proposals applies only to the Cleaner Energy Production and Carbon Capture
Strategic Investment Area – 2011 Call for Proposals

aspects of CCEMC’s mandate. Cleaner Energy Production is defined as “... transforming the
way we currently produce energy from more traditional energy sources like coal, oil, gas
and oilsands including such things as recovery of conventional and unconventional gas,
upgrading and refining, chemical processing, transportation, coal processing and
underground coal gasification. ” Carbon Capture covers methods for the removal of carbon
dioxide (CO2), either before or after combustion.

4 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
Terms of Funding

      Projects must meet the following funding criteria:
         i. Maximum Contribution: The maximum contribution the CCEMC will make
             to any one project is $10 million over the life of the project. For purposes of
             this Call for Proposals, projects must be no more than three years in
        ii. Cost-sharing: The CCEMC will match private-sector cash contributions to the
             project on a 1:1 basis, up to the maximum contribution of $10 million. The
             CCEMC will not match funds contributed by other government agencies
             (federal or provincial), nor will it match in-kind contributions.
       iii. Project financing: The CCEMC will finance approved projects based on
             satisfactory completion of milestones, tasks, and related deliverables on a
             cost-recovery basis. The CCEMC will hold back 20% of its contribution to the
             project on each invoice received, to be paid upon receipt and acceptance by
             the CCEMC of the project’s FINAL technical and financial reports.

        i. The project must be consistent with CCEMC Cost Guidelines. If the project is
           eligible for offset credits, the value of the credits cannot be used for matching
           purposes or for financing the project.
       ii. Project Initiation: CCEMC’s contributions to the project will begin only after
           the project and project funding has been formally approved by the CCEMC
           and a contribution agreement between the proponent and the CCEMC has
           been fully executed. CCEMC will not reimburse the project or the proponent
           for funds expended until the agreement is signed.

Financial Information and Financial Risk Assessment

The CCEMC will perform a financial risk assessment on all proponents submitting a full
proposal. Financial assessments will also be performed on all project partners (except
government agencies) shown as making a significant contribution to the project.

Appendix A provides a list of the information that must be submitted for this assessment.
CCEMC realizes that some of the required information may not be available by the FPP
deadline; in such cases the CCEMC will request information from the proponent during the
evaluation period.

Note: Financial information is not entered into the online system, but is to be sent
      separately to the CCEMC’s financial service provider. The service provider will
      contact you to confirm coordinates.

                 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 5
SUBMISSION: Proposals are by invitation only; the CCEMC does not accept full proposals
Full Project Proposal Process

from those not invited to submit one following the Expression of Interest stage.

PROJECT ADVISOR: A CCEMC Project Advisor is assigned to each proposal in order to
provide a point of contact between the CCEMC and the proponent. You will be notified of
this person’s name and contact information. The project advisor’s role is to assist you
during the preparation and evaluation process. He or she can provide advice on the
development and presentation of the full project proposal, as well as any other assistance
you may require.

SCHEDULE: Full project proposals must be submitted via the online system, no later than
4:30 PM on Friday, December 9, 2011. Incomplete proposals, or proposals received after
the deadline, will not be evaluated. Decisions will be announced by Wednesday, February
29, 2012.

CONTRIBUTION AGREEMENT: Successful proponents will have six (6) months to enter into
a contribution agreement with the CCEMC. The contribution agreement will address,
without limitation, the following terms: the project’s work scope, payment schedule,
targets and metrics, reporting requirements, milestones, deliverables, budget and schedule,
as well as any other appropriate aspects of the project and otherwise on the terms and
conditions required by the CCEMC in its sole discretion.

Applications must conform to the requirements of the FPP as set out above.

The application is in three parts.

Part A consists of the following information, which is to be entered into the online system.

   ♦ Project title
   ♦ Lead contacts for the project (both a technical contact and a communications
     contact should be given)
   ♦ A brief summary of the project, suitable for publication
   ♦ Linkages to other projects
   ♦ Expected benefits of the project
   ♦ Key words
   ♦ Estimated GHG reductions (annually, and for the shorter of the project’s expected
     life, or 10 years)
   ♦ Project costs by category
   ♦ Project costs by task
   ♦ Capital cost details
   ♦ In-kind contributions

6 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
   ♦ Amount of funding requested from CCEMC
   ♦ Other agencies by which funding has been or will be provided.

Part B consists of the ProGrid document, which is to be uploaded to the online
information system as a Pdf document.

Pact C consists of an independent GHG validation report prepared by an independent third-
party validator, uploaded as a Pdf document to the online system.

Those proposals which have submitted an acceptable validation report will be assessed
using the ProGrid methodology, a proposal evaluation process which has been used
extensively by major funding agencies over the past twenty years. Proposals will be
assessed in terms of the extent to which they will contribute to the subject of the current
Call for Proposals, relative to other submitted projects. This will take into account:
    ♦ the potential magnitude of the project’s contribution to the subject area;
    ♦ the potential GHG emission reduction of the project;
    ♦ the project’s stage of implementation;
    ♦ the ease with which the project can be implemented;
    ♦ the risks (both financial and technical) associated with the project; and
    ♦ the uniqueness and innovation of the project.

All proponents will be invited to make a presentation to the CCEMC review committee.
Dates and locations of presentations will be forwarded to the project proponents by the
project advisor.

Only high-quality projects will be considered for funding. Although CCEMC has set aside a
maximum of $60 million for this Call for Proposals, funds will only be awarded to the extent
that there are proposals that meet a sufficient quality standard. Quality includes both the
quality of the proposal (e.g. clarity, addressing all the criteria, etc.), and the quality of the
project, in terms of the evaluation criteria.

Intellectual property (“IP”) will be addressed through the contribution agreement made
Intellectual Property

with each successful proponent, and will reflect the individual circumstances of the project.
Proponents should note that project technology developed during the course of the project
will normally be owned by the proponent, who will have an obligation to protect this
technology within a period to be specified in the contribution agreement. If the project
technology is not protected within the specified time, the CCEMC may make it available to
other Alberta users.

                   2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 7
The CCEMC is subject to the Freedom of Information and Protection of Privacy Act, RSA

2000, c.F-25 in the course of performing duties and functions and exercising powers
delegated to it. All data and records in the custody or under the control of the CCEMC that
are required in the performance of duties or functions or the exercise of powers delegated
to the CCEMC are subject to the Records Management Regulation, Alta Reg.244/2001.

Subject to the requirements described above, the CCEMC is governed by a comprehensive
Privacy, Data Security and Confidentiality Policy (the “Policy”). The Policy requires that any
and all information concerning the business affairs of the CCEMC and its directors, officers,
employees and Proponents is to be kept private, secure and confidential. Confidential
Information that is collected, used or disclosed by the CCEMC will be handled in a manner
that recognizes both the right of the individual to have his or her Confidential Information
protected and the need of the CCEMC to collect, use and disclose such information for
purposes that are reasonable.

To read the entire policy, go to Legal-governance .

8 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
By clicking “I Agree” on the online system, you confirm that you have read, understand and
Legal Notice

accept the information contained in Section 1 of the FPP process and, you, the Proponent
and its Project Partners, also agree as follows:
   a) The CCEMC may at any time withdraw, amend or alter any portion of this FPP Stage
      or cancel this FPP Stage in its entirety.
   b) No act of the CCEMC, or its directors, officers, consultants, Project Advisors, agents
      and their respective successors and assigns (collectively the “CCEMC Parties”) other
      than a notice in writing signed by the CCEMC, will constitute an acceptance of an
   c) Proposals that do not comply with the requirements described in the FPP Stage may
      be rejected or not considered.
   d) As between the parties, the FPP Stage and all intellectual property in it are the
      property of the CCEMC.
   e) You, the Proponent and the Project Partners will keep the FPP Stage confidential
      and will not use, reproduce or distribute it, any portion of it, or any data,
      information, drawings, or specifications included in or provided with it except as
      necessary to preparing a Proposal in response to it.
   f) You, the Proponent and the Project Partners will not make a claim against the
      CCEMC or the CCEMC Parties for any reason relating to the 2010 Call for Proposals,
      and you waive and hereby release the CCEMC and the CCEMC Parties from any claim
      or recovery for costs, expenses, or damages incurred by either or both of us in
      connection with the FPP Stage or any FPP prepared in response to it.
   g) Neither the CCEMC nor any of the CCEMC Parties will have any liability whatsoever
      to you, the Proponent and its Project Partners, or any of them, in connection with
      the FPP Stage or any FPP prepared in response to it.

                  2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 9

Part A: Online Application

Confidentiality: The project title, non-confidential short description, proponent’s name,
including the names of project partner(s), and the amount of funding, if awarded, will be
public information.

Word/character count: Each online section can accommodate a maximum number of
characters, including spaces and punctuation marks. You will not be able to exceed the
maximum number of characters in any section.

Note: There are differences in the word/character counting applications in other
      software applications (e.g. MS Word). As a result, proponents must ensure that
      their responses comply with the character count of the online system.

1: Project Information


characters) (Information supplied on this page may be used in public summaries and
abstracts of CCEMC’s sponsored activities. Do not provide confidential information here.)

This short description should be concise, and should contain the following information:

    The proposed technology (i.e., the discovery, invention, new knowledge, etc.) on which
    the project is based

    The current state of development on the innovation chain
    The problem the technology seeks to solve or the opportunity it seeks to develop

    The project’s objectives and deliverables

    The expected GHG reductions to be achieved over the life of the project

    The advantages that will be valued by the user

    The expected commercial applications

    The capacity of the commercializing organization to successfully commercialize the


•   Principal contact person’s name, email address and telephone number.

 KEY WORDS: (maximum 150 characters)

10 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
ADDRESS THE FOLLOWING POINTS: (maximum 3,500 characters)

    Indicate whether this Proposal has been submitted to other funding organizations. If
    yes, please list their names and contact information. In the interest of a consistent

    funding approach, CCEMC may contact the other funders listed. If you do not want
    CCEMC to contact these other organizations, please include your reasoning in this

    Is this a continuation of a project funded by provincial, federal or other funding
    entities? If yes, please explain.

    Please indicate all past and present research or development work that you have
    completed, or that is in progress, that relates to this Proposal.

2: Project Team


In bullet point format, describe how the proposed project will lead to direct reductions in
3: Estimated GHG reductions (maximum 1,500 characters)

GHG emissions. Include estimated GHG reductions and time frame to achieve this reduction
(use box provided below).Attach a copy of your Validation Report in Part C “Validation



Year 1
Year 2

                   2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 11
4: Project Costs by Expense

         EXPENSE               FUNDS           TOTAL      YEAR     YEAR 2   YEAR
        CATEGORY                                            1                 3

     Salaries and        CCEMC Funds



     Materials and       CCEMC Funds



     Travel              CCEMC Funds


     Capital             CCEMC Funds


     Sub-contracts       CCEMC Funds


     Admin/Overhead CCEMC Funds


     Other (please       CCEMC Funds



     Total CCEMC

     Total Project

12 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
5: Project Costs by Task

      TASK                    ESTIMATED COST             START DATE            END DATE
Task 1
Task 2
Task ...

6: Sources of Cash Funding

    SOURCE             NAME OF       PLEASE CHECK ONE        TOTAL   YEAR 1   YEAR 2   YEAR 3
                                    APPLIED FOR   CONFIRME

(Federal and
Provincial, please
give agency
Project Partners
and Other
(please list)
requested from

7: Eligible Capital Cost Detail

ITEM                 COST              ESTIMATED
DESCRIPTION                            USEFUL LIFE

Item 1

Item 2



                     2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 13
8: In-Kind Contributions (will not be counted towards cost-sharing criterion)

                         ORGANIZATION DESCRIPTION   1    2    3
(please list)
Total Value

14 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
Part B: ProGrid Application & Evaluation

This Call for Proposals is intended for projects which will result in cleaner energy
production and carbon capture in Alberta.

1: Overview and Instructions
A key feature of the ProGrid evaluation system is the Language Ladder™ (the “Language
Ladder”) which establishes performance levels in each cell of this matrix. The Language
Ladder assists reviewers in reaching a consensus on the merits of a Proposal in comparison
to other Proposals being considered for funding support. The Proponent is asked to assess
the proposed Project against these performance criteria using the Language Ladders
provided, and to justify why a particular performance level was chosen.


                                                                     SUSTAINABLE GHG
     PROJECT MERITS                       ENABLERS

Technology Opportunity           GHG Validation                  Facility GHG Reduction

                                 Plan for monitoring,
Project Economics                                                GHG Reduction Reach
                                 Verification and Reporting

Financial Strength               Risk Mitigation                 Non-GHG Impacts

Quality of the Project Plan

Excellence of Project Team

♦ Review the definition and the A to D statements for each performance criterion. Level A

   represents the minimum and level D the maximum level attainable.
♦ Starting with level A, determine if your FPP meets all the aspects of that level. If it does,
   then review level B, and so on until you reach a level where not all the aspects of that
   statement can be met.
♦ The level that applies to your FPP is the highest level where all aspects of the Language
   Ladder are met. For example, if all aspects of a C statement have not been met, then
   select the B statement.
♦ Please record your assessment in the small box below the A to D statements. Note that
   an A rating does not mean automatic rejection, nor does a D rating mean automatic
♦ After you have completed your assessment, describe why you have selected that
   assessment rating and include relevant FPP information that addresses that criterion.
   Use the larger text box to provide this justification.
♦ Assess each performance criterion independently.
                     2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 15
Detailed Project Proposal

1: Technology Opportunity
    ♦ How will your project contribute to cleaner energy production, or improved methods
      of carbon capture?
    ♦ How innovative is the proposed technology or application of technology?
    ♦ How lasting do you consider that this new technology or application will be, once
      adopted by industry?

The technology, process or practice is:
       A. Is not new OR will not contribute significantly to cleaner energy production or
          improved carbon capture.
       B. Is new but not likely to be used over the longer term, or will have limited
       C. Is innovative, scientifically sound and has the potential for wide adoption or
       D. ... AND is transformative, representing a breakthrough that will become a
          benchmark for cleaner energy production or carbon capture.

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

16 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
2. Project Economics

This criterion requires that you describe the project’s economic viability.

   ♦ What is the acceptable rate of return on investment in your organization?
   ♦ What is the rate of return anticipated for this project without CCEMC support? With
     CCEMC support?
   ♦ What assumptions have you made regarding the project’s economic potential (eg. cost
     of feedstock, capital costs, operating costs, and so on)? Have you performed any
     sensitivity analyses? If so, what were the results?

The project’s economic basis is:

            Not given, OR the project is likely to need on-going external support
            Outlined but information is missing

            Clearly explained

            ….AND shows that the project has the potential to be commercially viable within

            five years.

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

                   2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 17
3: Financial Strength of the Project
This criterion requires you to demonstrate that all financial contributions to the project meet
eligibility guidelines, and that you have the financial strength to support your contribution to
the project.

    ♦ Provide a project budget that shows any contributions from other organizations, and
      clearly identifies any non-cash contributions
    ♦ Evidence of support from your organization’s senior management must be given.
    ♦ Indicate whether the project will apply for offset credits under Alberta’s offset system.
      (Note that offset credits cannot be applied to the project financing).

The financial terms and conditions of the project:
    A. Are unclear and/or evidence of commitment from senior management and other
       contributing entities is lacking
    B. Are reasonably well-addressed but some key elements are missing
    C. Are fully addressed and approved by senior management and other contributing
    D. ….AND there is firm and credible evidence that there will be no financial delays that
       could adversely affect the project’s start and completion.

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

18 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
4: Quality of the Project Plan

This criterion requires that you describe the plan for undertaking the project.

   ♦ Describe the tasks to be undertaken and their relationship to the proposed budget,
     deliverables and milestones.
   ♦ Using CCEMC guidelines, show the costs of the project (personnel, key vendors,
     equipment, supplies and materials).
   ♦ Provide a detailed project management structure and schedule, including key
     milestones and accountabilities.
   ♦ Provide evidence of appropriate operational, regulatory and environmental

        Addressed in a cursory manner
The requirements of this criterion have been:

        Reasonably well-developed but there are some gaps

        Fully and clearly addressed;

        …AND the project plan and management structure allow a high degree of confidence

        that the project will be completed within specifications, on budget, on time and

        results appropriately monitored and reported.

        Record the letter that you selected in the small box to the left. Use the space below
        to justify your choice.

                   2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 19
5: Excellence of the Project Team
This criterion assesses the project team’s suitability for carrying out the project.

    ♦ Describe the technical credentials (knowledge, expertise, and experience) of the
      project leader and the team members
    ♦ Give the expected time that each team member will devote to the project (as a
      percentage of their total work time)
    ♦ Describe the expertise and commitment of any contractors or technical networks
      involved in the project.

The project team described in this proposal:
    A. Are missing many of the key elements required to carry out the project
    B. Have the capacity to successfully complete the project, but there are expertise gaps
       and/or gaps in time available for the project
    C. Have the organizational leadership capability and the appropriate level of
       experience and knowledge to handle all aspects of the proposed project;
    D. …AND all the key people are in place and committed to the project and they have
       experience in projects of similar size and scope.

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

20 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
6.      GHG Validation

The CCEMC requires all proponents to submit a Validation Report. Refer to the CCEMC’s
complete Validation and Verification policy as well as the information found in Appendix B of
these guidelines.

        ♦ You must upload a validation report, prepared by a qualified professional, to the
          online system at the time you submit your full application
        ♦ The report should confirm that the methodologies and assumptions employed and
          estimates of GHG reductions are reasonable.
        ♦ The report must also contain the data and methodologies used to prepare the
        ♦ The CCEMC will review all validation reports for consistency with its guidelines

The requirements for validation:

     A. Have not been met: the report is incomplete, or contains erroneous information,
        affecting the reliability of the conclusions drawn from the work performed.
     B. The validation report was prepared in a manner materially different from the
        CCEMC’s guidance and the application of the CCEMC’s validation policies
     C. The validation report was prepared in a manner materially consistent with the
        CCEMC’s guidance and the application of the CCEMC’s validation policies.
     D. ... AND the validation report is unqualified.

        Record the letter that you selected in the small box to the left. Use the space below
        to justify your choice.

                   2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 21
7.        Plan for Monitoring, Verification and Reporting (MVR)

This criterion requires you to submit an acceptable plan for reporting potential (for projects
which will enable future reductions) or actual GHG reductions resulting from the project, and
for the expected life of the technology. An acceptable MVR plan will include:

     ♦ A description of the methods and tools that will be used;
     ♦ A description of all sources and sinks to be monitored, measured, and calculated, for
       both the project and the baseline; and
     ♦ A description of the data management procedures and systems to be used to ensure
       completeness and accuracy.

          No MVR plan was provided
          An MVR plan is provided, but it lacks some of the required information

          An MVR plan is clearly outlined

          … AND is appropriate for on-going MVR activities for the lifetime of the proposed


          Record the letter that you selected in the small box to the left. Use the space below
          to justify your choice.

22 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
8: Risk Mitigation
This criterion deals with the risk elements for the project that have the potential to adversely
affect its achievability.

   ♦ Clearly describe all risks and mitigation strategies.
   ♦ Possible risk elements to consider include:
         technology gaps,
         project plan and timeline uncertainties,
         cost uncertainties,
         funding risks,
         project management risks,
         leadership and commitment risks, and
         technology adoption risks.

The project risks:
   A. Are not fully identified
   B. Are identified but there are some gaps in the identification and mitigation strategies
   C. Are fully and clearly identified and include achievable mitigation strategies to
      overcome them;
   D. …AND the strategies described have a very high probability of success.

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

                     2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 23
9: Potential for Facility GHG Reductions (or GHG Benefits)
This is a key criterion, and is given twice the weight of the other criteria. It must provide the
project’s potential impact on actual and sustainable GHG emissions reductions in Alberta in
quantitative terms.

    ♦ Provide an estimate, on a facility basis, of the potential for annual GHG reductions or
      GHG benefits that will result from the full implementation of this proposed project
    ♦ Estimate the timeframe for the GHG reduction/benefits - the shorter of the first 10
      years of deployment, or the lifetime of the technology, practice or process
    ♦ Provide an estimate of the cost per tonne on a project life and total cost basis (for
      direct emissions).
    ♦ Indicate all the assumptions you have used in making these estimates, including a
      description of the baseline case you have used.

The potential impact of this project on GHG emissions reductions/benefits is:
    A. Qualitative, or unlikely to be achieved
    B. Quantified, but the GHG reduction/benefits are relatively modest, or will be mainly
    C. Quantified, robust and the potential/direct GHG reduction/benefits will have a
       significant impact on Alberta’s GHG emissions within 10 years
    D. …AND the cost on a per tonne basis is less than $50 when applied at a commercial
       scale, AND can be achieved within five years.

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

24 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
10: GHG Reduction (or GHG Benefits) Reach
This is also a key criterion. You must provide evidence that the proposed process or
technology has the potential to be widely adopted, in Alberta and outside the province.

Fully describe the potential market and commercial opportunities for adapting the
technology or process, either within a particular sector or industry, or to other uses or other
industries. Please estimate the market size and penetration, showing all the assumptions that
you have made. Existing barriers to adoption of the technology or process should be identified.

The potential for widespread adoption of the proposed technology or process is:
   A. Not provided or minor
   B. Reasonable, but not well-justified.
   C. Significant and well-justified on the basis of market size, market penetration and
      overcoming significant barriers to adoption
   D. …AND can be achieved in the next five years.

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

                  2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 25
11: Non-GHG Impacts
This criterion is intended to determine any ancillary economic, environmental and social
impacts linked directly to your project.

 Economic impacts include enhancement of existing industries, and new and secondary
industry development. Environmental impacts include all environmental media including air,
land, water and biodiversity. Social impacts include the enhancement of communities and an
increase in the quality of life and capacity-building through the training of highly skilled
personnel who are likely to seek a career in science, research, technical operations and
management activities in Alberta in the next three to five years.

The ancillary impacts from this project are expected to be:
   A. Detrimental or neutral
   B. Beneficial but minor
   C. Significant, beneficial, and quantifiable
   D...AND these positive impacts will continue even after the conclusion of the proposed

       Record the letter that you selected in the small box to the left. Use the space below
       to justify your choice.

26 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
Part C: GHG Validation Report

Please attach your GHG Validation Report in accordance with the CCEMC Validation
Guidance document.

Note that the maximum size of Validation Report is 8 MB.

                 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 27
Appendix A: List of Required Documents for CCEMC Financial Risk Assessment

1. Corporate organizational structure including commentary on any parent, subsidiaries
Corporate Financial Strength

   or related parties.

2. Annual reports and audited (if applicable) financial statements (including balance
   sheet, income statement, cash flow statement, notes, management discussion &
   analysis) for most recent quarter and the past 3 years.
   a. Comment on any significant balance sheet or income statement items during this
       period as well as any significant changes in balances from the prior period.
       Examples include:
       i. Significant refinancing undertaken or required in the short term.
      ii. Material unusual charges or revenue during the period.
     iii. Unusual trends identified.
     iv.    Use of estimates.

3. Letter of credit, bank reference letter from the relevant financial institution, or parent
   company guarantees relating to the Proponent’s or Partners’ credit (if no public credit
   ratings are available).

4. Comment on and provide documentation to support any contingencies and
   commitments (include $ amounts, where possible), including but not limited to the
   a. Off-balance sheet arrangements.
   b. Outstanding litigation or claims which may have a material adverse impact on the
   c. Purchase or other financial commitments out of the normal course of business.
   d. Other projects the Proponent is committed to or contemplating.

5. Items #2–4 listed above for Parent company of the Proponent (if Parent company is
   providing support).

6. Financing or commitment letters from Proponent, Parent company and Project Partners.
Project Financing

7. Detailed project budget, including:
   a. Description of how the budget was developed.

28 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
  b. Descriptions of all cost estimates and significant assumptions made. Assumptions
     should address items such as, but not limited to: rates used for personnel and
     contractors, description of travel and allocation of overhead. Sufficient detail should be
     provided so that the reviewer can determine the reasonableness of the Proponent’s
  c. If costs include fixed assets/capital items, an itemized listing that includes the cost and
     estimated useful life of each asset.

Note: Eligible project costs, as defined in the CCEMC’s ‘Eligible Expenses and Cost
Instructions – June 2010’, should be broken out from ineligible costs. In-kind contributions
can be included in the total project cost, but in a separate line item.

8. Comment on and provide documentation on the following:
   a. The availability of financial resources for the remaining project budget not anticipated
      to be financed by the CCEMC. Separately discuss the Industry and Government
      participants and the likelihood the funds will be made available. If funding from
      Project Partners is not yet confirmed, the Proponent should indicate the likelihood of
      the funds being available as well as when a decision is expected.
   b. Any restrictions placed on funding provided by Project Partners.
   c. Any project refinancing issues that may arise or be applicable for the long-term
      financing of the project (i.e., cash shortfalls, debt maturity).
   d. Any contingency or alternative financing that has been considered in the event that a
      funding source is not obtained or unexpected cost overruns occur.
   e. Cost mitigation strategies to reduce the risk of cost overruns.

                  2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 29
Appendix B: Requirements for Validation and Verification of Greenhouse Gas

Validation is a process that determines whether the predicted greenhouse gas emission
reductions or removal enhancements that occur from the implementation of a project
rather than what normally would occur are reasonable. Validation is one tool that the
CCEMC uses to ensure integrity in the emission reductions created through the course of
funding projects or initiatives. Other tools the CCEMC uses include monitoring and
verification as the project is being implemented or completed.

The key distinction between Validation and Verification is:

Validation is the process of systematic assessment to form an opinion on whether
statements about future greenhouse gas reduction performance are reasonable. It is
focused on assumptions, risks, methodologies, justifications, plans and procedures.
Verification is the process of systematic assessment to form an opinion on whether a
statement about actual circumstances or past performance is true and correct. Only
statements about actual performance, events or circumstances can be verified.

To be eligible for funding, all projects that make it to the full proposal stage will be required
to submit third-party validation of assertions made regarding GHG emissions reduction.
This information will be used to assist in the evaluation and selection of the successful

In addition, during and after the term of the project, proponents will be required to
monitor and verify the GHG reductions arising from the CCEMC-sponsored project. The
detailed requirements for ongoing monitoring and verification will be outlined and
finalized in the Contribution Agreement after the project has been successfully awarded
funding. However, the principles, rules and approach outlined in the CCEMC’s guidance for
undertaking validation engagements will generally apply to verification engagements as

The Third-Party Validator and Verifier (lead verifier and verification team) is defined as a
Qualifications of the Third-Party Validators and Verifiers

qualified person or persons that make up a validation/verification body that
validates/verifies and provides assurance on a greenhouse gas inventory and reduction

The CCEMC’s policy on who is qualified to validate or verify greenhouse gas assertions is
intended to be consistent with Alberta Government policy. Alberta Environment requires
that the lead validator/verifier must be an accountant registered under the Alberta

30 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
Regulated Accounting Profession Act, or professional engineer in good standing and be
trained in one of the three acceptable standards identified below.

Third Party Validators/Verifiers must use one of the following standards and must be able
Validation and Verification Standards

to demonstrate how they meet the qualification criteria for the standard being used:
   ♦ ISO 14064-3 – Greenhouse Gases: Specification with guidance for the validation and
     verification of greenhouse gas assertions
   ♦ Standards for Assurance Engagements, Canadian Institute of Chartered Accountants
     (CICA) Handbook – Assurance Section 5025
   ♦ International Standard on Assurance Engagements (ISAE) 3000 – Assurance
     Engagements Other Than Audits or Reviews of Historical Financial Information

Additionally, the validation/verification team should have technical expertise and
competencies in the following areas:

   ♦ Data audit practices, data verification standards and inventory techniques
   ♦ Validation/verification criteria and their appropriate application within the defined
     scope of the work undertaken

Relevant expertise in:
   ♦ The specific industry, GHG activity and/or technology being reviewed
   ♦ Greenhouse gas inventory techniques including the identification and selection of
     GHG sources, sinks, and reservoirs
   ♦ The relevant quantification methods
   ♦ Situations that may affect the materiality of the GHG assertion, including typical and
     atypical operating conditions

The team lead must sign and submit the Statement of Qualification, Statement of
Validation/Verification, and Conflict of Interest.

As an overarching principle, Validation/Verification Bodies should seek consistency with
the principles defined in ISO 14064-3, which are:

   To ensure the credibility of the emissions data reported to the Registry, it is crucial that
   the process is free from bias and conflicts of interest. Validation/Verification Bodies
   must maintain objectivity throughout the process to ensure that findings and
   conclusions will be based on objective evidence.

                   2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 31
   Validation/Verification Bodies must demonstrate ethical conduct through trust,
   integrity, confidentiality, and discretion throughout the process.

   Validation/Verification Bodies must reflect truthfully and accurately the results of the
   activities conducted.

   Alberta Environment expects Validation/Verification Bodies to exercise due
   professional care and judgment in accordance with the importance of the task
   performed and the confidence placed by clients and intended users. In addition,
   Validation/Verification Bodies must have the necessary skills and competencies when
   executing the work activities.

The project greenhouse gas assertion should describe the extent to which the proposed
Key Elements of the Greenhouse Gas Assertion

project will result in significant and direct reductions in GHG. Information should be
accurate and complete and of sufficient clarity that it could be used by an independent
third-party validator/verifier as a basis for assessing the project condition against the
baseline, and assessing the project’s emission reductions. Generally speaking, the proposal
should include descriptions of:
    ♦ Baseline condition. The baseline condition is a reasonable representation of
      conditions that would likely have occurred, had the project not been implemented.
      In other words, the baseline represents “business as usual” and the project
      represents a change from this practice. Greenhouse gas emission reductions
      achieved by the project are measured by comparing the project conditions against
      the project baseline to quantify the difference in emissions between the two
    ♦ Project condition. The project condition is a specific action or intervention targeted
      at reducing greenhouse gas emissions and may consist of one or more related
      activities. The project condition may include modification of existing production,
      process, consumption, service, delivery or management systems, or introduction of
      new systems.
    ♦ How the GHG reductions (in tonnes CO2e) were calculated, including clearly
      identifying all assumptions, risks, inputs, emission factors, equations and methods.
    ♦ What GHG monitoring methodologies will be employed throughout the course of the
    ♦ How the project data will be managed.

32 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture
This information is only intended to provide a general overview of the validation
requirements. More detailed guidance on how to undertake third-party validation can be
found in the CCEMC CCEMC Validation Guidance Document.

                 2011 Call For Proposals: Cleaner Energy Production And Carbon Capture 33

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