Page 1 of 10 APEC PROJECT PROPOSAL Facesheet Name of Committee/Working Group: Energy Working Group / Expert Group on Clean Fossil Energy Title of Project: Implementation of CO2 Emission Reduction Technologies and Methods for Fossil Fuel Installations Proposing APEC Economy: 1) USA Co-sponsoring APEC Economies: 2) Australia; 3) Canada; 4) Japan; 5) Korea Project number: EWG 03/2009 Date received by Secretariat: (To be filled in by Secretariat) (To be filled in by Secretariat) (Tick one) [ ] Project seeking APEC funding [ ] Progress Report [ ] Evaluation Report (Tick one if applicable) [ ] Operational Account [ ] TILF Special Account [ ] APEC Support Fund (Tick if applicable) [ ] QAF attached Financial Total cost of proposal (US$): Amount being sought from APEC funding Information 160,000 152,800 (US$): 79,000 71,800 Type of Project:  seminar/symposium [ ] short-term training course [ ] survey or analysis and research [ ] database/website [ ] others (Please specify) Project start date: 2009 Project end date: 2010 Brief Description of Project -- its purpose and the principal activities (including when and where): The objective of this project proposal is to organize and hold, jointly with the International Energy Agency (IEA), an International Conference on Implementation of CO2 Emission Reduction Technologies and Methods for Fossil Fuel Installations. This event, which will be held during 2009, will bring together the results from several APEC projects on various aspects of power plant best practices, including renovation and modernization and efficiency improvement — all which result in increased and more reliable electricity generation, lower emissions of pollutants and carbon dioxide (CO2), and reduced operations and maintenance (O&M) costs leading to lower electricity tariff for consumers at all levels — from both existing and new coal-fired power plants in APEC economies. It will focus on dissemination of information on reducing the contribution of fossil fuel power generation to greenhouse gas emissions, with the aim of helping APEC developing economies improve the efficiency of power generation and reduce their emissions of CO 2 and other pollutants. Given the highly complementary nature of the work being undertaken by APEC and the IEA, and the timetable for implementation of the anticipated G8 recommendations on efficiency improvement, it will be highly beneficial to both APEC and the IEA and their members, to jointly organize a conference on these issues. The EGCFE Chair has discussed this joint event with responsible program officials at the IEA, who have indicated very strong interest in cooperating with the EGCFE. A high-profile joint event of this type would also be consistent with the broad objective of increasing IEA/APEC coordination and cooperation that has been expressed by Energy Ministers of the two organizations. The Declaration by APEC Energy Ministers meeting in Darwin in 2007 encouraged the development and implementation of APEC–IEA collaboration, and directed the EWG to further advance collaboration with the IEA and other international energy fora. Project Overseer: Name, Title and Organization (M/F) Scott M. Smouse, Chair, APEC Expert Group on Clean Fossil Energy Postal address: Tel: +1-412-386-5725 U.S. Department of Energy, National Energy Fax: +1-412-386-4561 Technology Laboratory, P.O. Box 10940, E-mail: email@example.com Pittsburgh, PA 15236-0940, USA Signature of Project Overseer: (Separate written confirmation acceptable for email submission) Date: 25 August 2008 Page 2 of 10 Signature of Committee Chair/WG Lead Shepherd: (Not applicable to Progress Report and Evaluation Report) (Separate written confirmation acceptable for email submission) Date: 2 September 2008 Page 3 of 10 Details of the Project Proposal Please provide your answers in point form or as succinctly as possible below each paragraph heading. A. Project Design Project Objectives 1) Describe briefly how this project directly responds to the priorities set by APEC Leaders and Ministers and/or the vision of the host economy. Please make reference to the relevant parts of APEC documents. APEC Economic Leaders, meeting in Sydney in September 2007, addressed as Key ECOTECH Priorities the challenges of climate change, energy security, and clean development, outlining their resolve on this issue in their Declaration on Climate Change, Energy Security and Clean Development, which included the following statements: We, the APEC Economic Leaders, agree that economic growth, energy security and climate change are fundamental and interlinked challenges for the APEC region. Our success has relied in part on secure supplies of energy, the use of which has also contributed to air quality problems and greenhouse gas emissions. We are committed, through wide-ranging and ambitious actions, to ensuring the energy needs of the economies of the region while addressing the issue of environmental quality and contributing to the reduction of greenhouse gas emissions. Fossil fuels will continue to play a major role in our regional and global energy needs, Co- operation, including joint research, development, deployment and transfer of low and zero emission technologies for their cleaner use, particularly coal, will be essential. Improving energy efficiency is a cost-effective way to enhance energy security and address greenhouse gas emissions while promoting economic growth and development. This project directly responds to these ECOTECH Priorities of APEC Economic Leaders, its overall objective being to contribute to greenhouse gas mitigation by disseminating the most up- to-date information on CO2 emission reduction through efficiency improvements for existing fossil power generation, and facilitating clean and efficient coal technology uptake for new fossil generating plants. The Declaration by APEC Energy Ministers meeting in Darwin in 2007 states that improving energy efficiency is a cost-effective way to enhance energy security and mitigate greenhouse gas emissions, and Ministers encouraged the development of cleaner and more efficient power generation technologies. This project responds to the Energy Ministers’ energy efficiency goals. 2) Describe the key objectives of the project The overall objective is to disseminate widely the most up-to-date information on CO2 emission reduction technologies and methods for fossil fuel installations, particularly coal-fired power generating plants. This will be achieved by holding, jointly with the International Energy Agency (IEA), an International Conference on Implementation of CO2 Emission Reduction Technologies and Methods for Fossil Fuel Installations. This event, which will be held during 2009 or early 2010, will bring together the results from several APEC projects on various aspects of power 1 plant best practices, including renovation and modernization and efficiency improvement — all of which result in increased and more reliable electricity generation, lower emissions of pollutants and CO2, and reduced operations and maintenance (O&M) costs leading to lower electricity tariffs for consumers - from both existing and new coal-fired power plants in APEC economies. It will focus on dissemination of information on reducing the contribution of fossil 1 Reducing Trade, Regulatory, and Financing Barriers to Accelerate the Uptake of Clean Coal Technologies by Developing Economies in the Asia Pacific Region [EWG 01-2008T] How Can Environmental Regulations Promote Clean Coal Technology Adoption in APEC Developing Economies? [EWG05-2006] Environmental Monitoring for Coal-Fired Power Plants in Asian Developing APEC Economies [EWG06/2007] Technology Status and Project Development Risks of Advanced Coal-Fired Power Generation Technologies in APEC Developing Economies [EWG06-2007A ] Lessons Learned in Upgrading and Refurbishing Older Coal-Fired Power Plants - A Best Practice Guide for Developing APEC Economies [EWG05-2007] Page 4 of 10 fuel power generation to greenhouse gas emissions, with the aim of helping APEC developing economies improve the efficiency of power generation and reduce their emissions of CO 2 and other pollutants. 3) Assessment. With reference to each objective in paragraph 2), provide the current status and expected end-of-project target, so that the success of the project can be measured over the short and medium term. The targets should be quantitative but if this is not possible then a precise description of the change aimed at should be given. Where appropriate, sex- disaggregated data should be used for assessment in order to detect any differential impact of the project on men and women. The current status is that a number of APEC projects over the past few years that address CO2 emission reduction technologies and methods for fossil fuel installations have either reached completion or are well progressed. The time is appropriate to bring together the results to date in an international conference aimed at the policy level in government and industry. At the same time, the International Energy Agency has been active in work requested by the G8 Leaders, addressing coal-fired power plant efficiency improvement in developing economies. Holding this event jointly with the IEA will increase the visibility of both international organizations’ work in the field, and respond in a timely fashion to the APEC Leaders’ ECOTECH climate change, energy security and clean development priorities. The end-of-project target will be the proceedings from the joint international conference. These proceedings will provide policy-level guidance, especially to developing APEC economies, on technology choices and methods to achieve effective mitigation of the contribution of their coal- fired power generation sector to climate change. Feedback from government and private sector participants at the joint international conference will be an indicator of success in the short term. The long-term measure of success will be increased implementation of CO2 reduction technologies and methods in both new and existing generating plants. A survey will invite conference participants to provide their views on the content and utility of the event and on the benefits that they expect to derive from it. The survey would ask recipients to judge: Appropriateness of the conference structure and programme; Clarity of the conference presentations; Applicability of the results to clean coal technology decision-making in developing APEC economies; Degree to which the conference provided new and relevant insights; and Degree to which discussions in the conference are likely to be persuasive in supporting decisions to use state-of-the-art, high-efficiency, clean coal technologies for new coal-fired power generation projects, or to implement efficiency-improvement projects for existing plants, in developing APEC economies. These items will be rated on a scale of 1 (poor) to 5 (excellent), plus ―Not known.‖ The target will be an average of 4 or greater, and acceptability will be 3 or greater. 4) Explain who the intended beneficiaries of this project are. The intended beneficiaries are energy and environmental policymakers and power generation decision-makers in APEC developing economies, coal-fired power plant owners and operators, power engineering and technology supply companies, and the public. The ways in which each will benefit are described in the following section. 5) Describe precisely the expected project outputs. Describe how these outputs will benefit the targeted beneficiaries. The main project output will be the detailed proceedings of the joint international conference. These proceedings will be available on the APEC website for downloading on an individual presentation basis. The target beneficiaries will benefit in a number of ways: Page 5 of 10 Energy and environmental policy makers and power generation decision-makers in APEC developing economies will understand better the costs, risks and other issues associated with decisions on technologies to be used in new coal-fired power generation facilities, and on technologies and methods for upgrading and refurbishing older coal- fired plants, Developed economies and private sector companies will be better placed to identify opportunities for involvement in such projects. The power generation sector will benefit from capacity-building through improved knowledge and access to information. The power engineering and technology supply sectors will be better placed to identify opportunities in developing APEC economies. Finally, the public will benefit through a cleaner environment locally and regionally, and slower growth in greenhouse gas emissions globally, compared to a situation where new coal-fired power plants are built using less efficient and more polluting technologies, and older coal-fired power plants continue to operate at lower efficiency and reliability, emitting greater amounts of pollutants. 6) For applications under the TILF Special Account: Describe briefly how this project will contribute to the APEC Trade and Investment Liberalization and Facilitation (e.g. relevance to specific parts of the Osaka Action Agenda). Not applicable Linkages 7) Which other APEC fora have been consulted about this project and what were the results? The Energy Working Group’s Expert Group on Clean Fossil Energy (EGCFE) initiated this Proposal. It was examined by the Energy Working Group at the EWG35 Meeting in March 2008 th and endorsed to be forwarded to the BMC for its consideration and approval. It was ranked 5 out of 22 projects in its category (Operational and Support Fund) by the EWG members. 8) Active Participation. Describe how the intended beneficiaries among APEC stakeholders –APEC fora, governments, private sector and civil society, men/women- will participate in the planning, implementation and evaluation of the project. The project will be overseen by a joint Project Steering Committee made up of EGCFE members, who are government representatives from APEC economies, of IEA representatives, and representatives of industry bodies related to APEC and the IEA. This Committee will participate in the planning, conference program design, selection of speakers and panel members. A consultant experienced in organizing major international conferences will be in charge of the logistics. Members of the Steering Committee will also be part of the final project evaluation group. Industrial and private sector experts in all aspects of coal technology and electric power generation have responded enthusiastically to the invitation to participate in past projects. The private sector is the source of a substantial amount of the technical information on these topics. The views of private sector companies, including members of the EBN, will be sought on the topics they would suggest should be part of the conference program. 9) Project influence: Describe how this project might contribute to any current or completed projects or activities in APEC or elsewhere. Why is APEC the most appropriate institution to fund the project? The project builds on the results of a multi-year APEC program on CO2 reduction and clean coal technology deployment in APEC developing economies as well as related activities in the International Energy Agency, providing an opportunity to synthesise the information developed over the past few years in both organisations, and to influence decisions at the policy level. It is anticipated that the outcome of the conference will contribute to defining future work needed in the field. The APEC clean fossil energy activities which the conference will bring together include substantial experience in technologies and methods for reduction of CO2 emissions from coal- fired generating plants (both new and existing); in CCT development and demonstration in Page 6 of 10 industrialized economies, and in recent/ongoing CCT projects. Because a considerable fraction of new coal-fired generating plants built over the coming decades will be in developing APEC economies, the project will add APEC value by facilitating application to developing economies and identifying issues needing attention. For these reasons, APEC is the most appropriate institution to fund and carry out this project. The conference will also add value to APEC store of knowledge through the cooperation with the IEA, which will present the results of work requested by the G8 Leaders, addressing coal-fired power plant efficiency improvement in developing economies. The project has a potential to lead to future inward investment in projects in the power generation sector in developing APEC economies. The earlier deployment of clean coal technologies for new power plants will also interface with the ongoing APEC project on carbon capture and sequestration (CCS), because plants using these technologies can be built so that they are capable of adding CCS in the future if necessary. Methodology 10) Describe the project’s methodology. Break down the project implementation into discrete functional steps over time with the associated outputs clearly specified. Identify the principal risks involved in each step if any, and explain how they will be managed. Risks may include major delays and failures, expected cooperation not materializing, etc. The project will be overseen by a Project Steering Committee of EGCFE and IEA experts with input from industry representatives. This team will work with a consultant with broad experience in clean coal technologies and coal-fired power generation. The consultant and the Project Steering Committee will be responsible for developing the conference program, identifying and securing appropriate speakers, and preparing the proceedings. A conference organizer may also be retained to handle the logistics associated with holding the conference. Members of the Steering Committee will also constitute the small group responsible for the project final evaluation. While the detailed structure of the international conference will be in the hands of the steering committee and the consultant, a preliminary outline for the purpose of this proposal might be the following. The scene could be set by a number of keynote presentations, for example: State of the art regarding uptake of clean coal technologies for new coal-fired power plants in APEC developing economies; International Energy Agency activities in coal-fired power plant efficiency improvement technologies and methods; Experience in upgrading and refurbishment of older coal-fired power plants in APEC developing economies; The role of emission requirements and emission monitoring regulations; Current status and prospects for development of carbon capture and storage (CCS) technology for coal-fired power plants, following the July 2008 G8 recommendations regarding full-scale CCS demonstration projects. These issues could then be explored in greater detail in the conference sessions following the keynote session, including one or more panel sessions. The event is likely to be organized early in 2010. The exact timing and location of the conference and other organizational questions are the subject of ongoing discussions between the Chair of the Expert Group on Clean Fossil Energy and IEA representatives. Among risks faced by the Project may include: Identification and selection of the most appropriate consultant; Obtaining up-to-date information on projects that may still be in progress; Difficulties in obtaining the best possible conference speakers/panelists to cover the chosen topics; Page 7 of 10 Problems faced by experts from developing economies in obtaining financial support for participating in the workshop; Timely project completion and publication of the conference proceedings. The EGCFE has developed a set of criteria and scoring methodology for assessment of responses to RFPs and consultant selection. Use of this process facilitates objective assessment by a team of EGCFE experts and achievement of consensus on the appropriate choice among RFP responders. Following selection, the Project Steering Committee and the consultant selected to carry out the project will be aware of the potential risks, as well as others that may be identified in the process, and will work together to avoid or minimize them. Appropriate follow-up will be discussed in the EGCFE and in its periodic Clean Fossil Energy Technical and Policy Seminars. 11) Which APEC member economies will participate in each component of this project and what contribution are they expected to make? The EGCFE representatives of most of its member economies have participated actively in previous conferences and workshops. For this project the steering committee will be put together at the outset and will participate actively throughout the project, from consultant selection to conference organization and publication of the proceedings (see item 10 above). Specific economies may be identified by the consultant and Project Steering Committee and invited to suggest appropriate speakers for the conference. Dissemination of Project Output 12) Please include a plan for the publication and dissemination of the results of the project, including: a. the nature of the target audience; Key government officials involved in decision-making with regard to coal-fired power generation, including energy and environmental ministries/agencies; Technical and financial decision-makers in the power generation sector; Power technology supply industry decision-makers; Technical experts; Other electric utility and related industry sector representatives; and Research and policy research organizations. b. the form and content; The final conference proceedings will meet accepted standards, and any hard copies, CDs or internet uploads will comply with the APEC Publications Guidelines and copyrights. The proceedings will be posted on the APEC, EGCFE and EWG web sites for immediate viewing and downloading, either as a whole or as individual presentations. c. format (e.g. hard copies, floppy discs, internet uploading); Copies of the presentations and other papers will be provided to the conference participants. Also, an electronic version of the proceedings in PDF format will be posted on the APEC, EGCFE and EWG website for viewing or downloading. d. number of copies for the publication; Estimate 200 copies of the preprinted available presentations for distribution to conference participants. e. a publicity plan for: i) briefing the general or specialist media about key components of the project; Appropriate media releases will be prepared, and conference announcements published in energy, environment, and trade journals. The conference proceedings will be available on the EGCFE and EWG web site. ii) the promotion of sales or other dissemination of the final product; and Promotion will be through the dissemination plan listed above. Announcements of the proceedings release will be made through various media, primarily through the Internet. Page 8 of 10 f. a budget for publication and dissemination, to form part of the itemized budget. $500. Gender Concerns 13) Many projects have the potential to affect men and women differently because of their different roles and positions in many societies. What steps does this project take to ensure that it benefits both groups and in particular does not disadvantage women? The EGCFE always encourages participation of women from all APEC members in all its committees, projects, and activities. While the official representative of each economy to the EGCFE changes occasionally, several economies are presently represented by women. The preparation of the international conference will be managed by the Project Steering Committee. While each economy is responsible for designating its own representatives, active participation by women in the Project Steering Committee will be encouraged. To ensure that the women’s perspectives are adequately represented, active participation of and input by women into the project will be sought through the members of the Project Steering Committee. Cooperation in this endeavor by representatives of the IEA will also be sought. The project itself will be carried out by a consultant in response to a tender. In its evaluation of submitted bids, specific attention will be given to qualified women proposed by the bidder to work on the project. The Project Steering Committee members involved will ensure that the winning submission adheres to the priorities of the Framework for the Integration of Women in APEC (―Accelerate the progress of integrating women in the mainstream of APEC processes and activities‖ and ―Promote and encourage the involvement of women in all APEC fora‖). The APEC Framework, as well as the Gender Analysis Guide and other relevant documents, will be made available to those involved in the project; their application will be monitored throughout the project. 14) Show how the objectives of the project provide benefits for women. APEC Ministers have indicated (Framework for the Integration of Women in APEC) that benefits might include: increasing the involvement of women in the economy and economic institutions; integrating women into the global economy; strengthening small and medium sized enterprises; and reducing gender inequalities, including through education and training. The primary objective of the project is information transfer related to the environmentally sustainable use of coal for energy development in the APEC region. The quality of life of women is significantly improved through availability of adequate supplies of energy and protection of the environment. Having an adequate, dependable, and efficient supply of energy in APEC developing economies, especially in rural areas, benefits women by freeing them from the daily time-consuming efforts to secure and use adequate energy supplies for the household in difficult conditions; protects them from harmful health impacts due to exposure to pollution from uncontrolled combustion at the household level; and helps to integrate them into the economy. The project is expected to contribute to mitigation of global climate change due to CO2 emissions by means of improving the information available on technologies and methods for reducing these emissions from fossil power plants in the APEC region, and thereby enhancing the uptake of these technologies and methods. Global climate change is expected to impact agricultural production and the availability of water, and to cause sea levels to rise. These and other negative impacts of climate change more significantly impact the poor and disadvantaged, including often women. These sectors of human society are less able to afford to adapt to their changing surroundings. Budget 15) Please attach an itemized budget for the project in the format at Annex A. Where appropriate, provide details of the project’s budget that are allocated to activities that address the specific needs of women. The budget should illustrate the assumptions adopted (e.g. unit costs) for the computations. The APEC share of workshop budget is estimated at $79,000 (Annex A below), which is justified based on the anticipated effort to review previous related relevant work; to prepare background Page 9 of 10 documentation for the conference; to identify appropriate speakers/panelists, organize and hold the conference; and to prepare the proceedings for publication. The consultant will have an important set of responsibilities in this complex project, and a substantial workload, as laid out in Section 10 above. This justifies the number of hours of consultant time in the budget estimate. 16) A timetable for the drawdown of APEC funding requested for the project, including details of any advance payment or installment payment requested and justifications for such requests. 25% of the consultant costs upon award to cover expenses related to conference planning and organization 50% following the conference 25% on finalization and submission of the PDF files of the conference proceedings for publication on the APEC EWG and EGCFE websites. 17) Details of any request for waiver or exception from the normal APEC financial rules with justifications. (Examples are from tendering requirements; for advance payment; for government officials to receive funding; for active participants from travel-eligible economies to receive per diems) Approval to sponsor travel for private sector and government delegates and speakers from all APEC economies is requested to ensure a successful workshop. 18) NOT required for projects for consideration at BMC II (July/August meeting) or for ASF projects but required for all others. Give reasons for the urgency of the project. (These projects should relate to previous APEC Ministers’ or Leaders’ Declarations or current host economy’s priorities. Reasons may include the project output as contributing to one of the major deliverables for the year) Not applicable for this round of funding Page 10 of 10 Annex A APEC Project * Itemized Budget for Financial Year 2009 (Please tick .) This project is: a seminar, symposium or short-term training course a survey or analysis and research project neither the above but involves the provision of equipment APEC Self Unit Items No. of Units Funding Financing Rate (USD) (USD) Direct Labour Speaker’s Honorarium (no. of speakers) (government officials ineligible) - Translator’s Fees (no. of pages) - Short-term clerical and (no. of hours) secretarial staff remuneration - Consultant (including (no. of hours) $80/hour $36,000 $30,000 Researcher) Fees 825 (no. of hours) - Consultant’s Secretary Cost $20/hour $2,000 $1,500 175 Travel (Speakers/Experts/ Researchers) 4 days x 15 6 people - Per Diem (incl. accommodation $12,000 each by APEC and $200/day $16,000 and ―additional payment‖) 4,800 member economies 15 person-trips each - Airfare funded by APEC and $1500 $22,500 $30,000 member economies Travel (Active participants/ participants/trainees) (only from travel-eligible economies) - Per Diem (incl. accommodation (no. of persons and and ―additional payment‖) (active days) participants) (no. of persons and - Airfare trips) Other items Publication of report (including (no. of copies) distribution) Equipment / Materials (describe (no. and type of briefly what is required and why) equipment) (no. of days for rental) Est. 200 preprints of Photocopying conference $1,000 $2,500 presentations Communications (Phone/ Fax/ $500 Mail/Courier) Hosting (pl. briefly describe, e.g., conference room rental, 3 days room rental $5,000 $1,000 stationery) Total $79,000 $81,000 71,800 * If project will continue for more than one year, please indicate the amount of funds required for each of the two financial years in question.