Federal & Provincial

The Atlantic Accord, originally focused on oil and gas activities, was amended in 2018 to regulate air emissions in offshore areas. These amendments provide a legal basis for CCS projects but do not yet fully address the specific requirements for CO2 injection and long-term storage.

• Importance for CCS: Without explicit provisions for CCS, project proponents face regulatory uncertainty. Detailed amendments must specify CO2 storage as an allowable activity, clarify the regulatory framework for such operations, and harmonize federal and provincial responsibilities.

• Action Plan: Propose further amendments to the Accord to integrate CCS-specific provisions. These should outline criteria for site licensing, environmental impact assessments, and operator liability. Cooperation between federal and provincial governments will be crucial to finalize these amendments, ensuring they align with international best practices and policies under agreements like the Paris Accord.

Developed by CNLOPB

The Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) is the regulatory body for offshore oil and gas activities, and it needs an expanded mandate to regulate CCS storage and injection. This expansion would cover CO2 injection into geological formations and long-term storage to ensure environmental safety and compliance.

• Components of Regulation:
  
  •  Site Characterization: Regulations should include comprehensive geological surveys to identify suitable storage formations.

  
  •  Injection and Monitoring Standards: Develop operational standards for CO2 injection, plume tracking, and pressure management to mitigate risks.

  •  Risk Management and Emergency Protocols: Include requirements for risk assessments, contingency planning, and emergency response mechanisms in case of CO2 leakage or other incidents.

  •  Environmental Compliance: Establish stringent monitoring, measurement, and verification (MMV) requirements to ensure that CO2 remains securely stored.

• Implementation: CNLOPB can collaborate with industry experts and global CCS leaders to draft these regulations. Piloting regulatory processes on smaller-scale projects will help refine the framework before widespread adoption.

Board led call for information, Call for bids, Land issuance

A structured licensing process is needed to facilitate private sector participation and investment in CCS. This would mirror existing oil and gas licensing systems, involving a call for information, bid submissions, and land issuance for potential CO2 storage sites.

• Steps in Licensing:
  
  •  Call for Expressions of Interest: CNLOPB invites stakeholders to provide data on potential CCS opportunities and areas of interest.

  
  •  Site Evaluations: Conduct geological and environmental assessments to identify suitable storage areas with high CO2 containment potential and low environmental risk. 

  •  Bid Solicitation: Open competitive bidding for licenses to explore, develop, and operate CCS sites.

  •  Land Issuance: Award licenses for CCS operations, with conditions tied to performance, environmental compliance, and ongoing monitoring.

• Long-Term Benefits: This approach ensures a transparent, competitive process that attracts industry expertise and capital. Additionally, it aligns with CNLOPB’s mandate to manage resources responsibly and optimize economic and environmental outcomes.

Project application submission

Before CCS projects can proceed, they must undergo a formal regulatory review to assess environmental, technical, and geological suitability.

• Process:
  •  Environmental & Geological Assessments: Evaluate site integrity, CO₂ containment security, and potential risks to marine ecosystems and groundwater.
  
  •  Public & Indigenous Consultation: Gather stakeholder input to address concerns and incorporate local knowledge.

  •  Regulatory Submission: Project proponents submit applications detailing site assessments, risk management, and compliance measures.

Projects meeting initial criteria advance to the decision stage for formal approval or rejection.

Review project submission, go or no-go spaces in offshore NL

Following regulatory review, authorities determine whether CCS projects can proceed based on environmental and technical feasibility.

• Process:
  •  Regulatory Review: Agencies evaluate compliance, potential risks, and mitigation strategies.

  •  Stakeholder Considerations: Indigenous, community, and industry feedback inform final decisions.

  •  Final Determination: Sites are either approved, conditionally approved (requiring additional safeguards), or deemed unsuitable for storage.

Approved projects move to detailed engineering and permitting, while no-go areas are ruled out for future development.

After project approval, detailed engineering focuses on finalizing the design, technical specifications, and construction plans for the CCS facility.

• Process:
  •  Site-Specific Engineering: Develops injection well designs, CO₂ transport infrastructure, and storage monitoring systems.

  •  Process Optimization: Finalizes capture technologies, compression systems, and CO₂ handling methods to maximize efficiency.

  •  Risk & Safety Analysis: Conducts hazard assessments and integrates emergency response plans.

  •  Cost & Procurement Planning: Defines materials, equipment, and construction schedules to align with regulatory and budgetary constraints.

Engineering plans are completed, enabling procurement, fabrication, and site preparation for CCS deployment.

With engineering designs finalized, this phase focuses on constructing the offshore CCS hub, including CO₂ injection platforms, pipelines, and supporting infrastructure.

• Process:
  • Modular Fabrication: Key components such as injection wells, compression units, and pipeline systems are prefabricated in onshore facilities for efficient offshore assembly.

  
  • Integration & Testing: Equipment is tested for operational reliability, ensuring compliance with safety and environmental standards.

  • Offshore Installation: Deployment of subsea infrastructure and surface platforms, followed by connection to capture and storage systems.

  • Regulatory & Safety Compliance: Adherence to offshore construction protocols and government approvals before commissioning.

A fully assembled offshore CCS hub, ready for commissioning, testing, and operational handover.

Following fabrication, the offshore CCS hub undergoes installation, system integration, and final testing to ensure operational readiness.

• Process:
  • Installation & Assembly: Offshore transport and placement of injection wells, pipelines, and processing units, followed by system integration.

  
  • Commissioning & Testing: System validation, including pressure testing, leak detection, and control system calibration to ensure safe CO₂ injection and storage.

  • Regulatory Approvals: Final inspections by authorities to confirm compliance with environmental, safety, and operational standards.

  • Operational Readiness: Training for personnel, emergency response drills, and final verification before full-scale CO₂ injection begins.

The CCS hub is fully operational, marking the transition from development to active CO₂ capture, transportation, and storage.

Securing Project Investment

A final investment decision (FID) ensures that financial, technical, and regulatory risks are addressed before committing capital.

Process:

• Economic Modeling: Evaluating project costs, revenue potential, and return on investment.
• Funding Secured: Government incentives, private sector commitments, and stakeholder agreements finalized.
• Risk Assessment: Review of long-term cost drivers, credit market stability, and regulatory compliance.

Outcome: A structured credit system that supports CCS investment and aligns with emissions reduction targets.

Manufacturing CCS Equipment

Fabrication of post-combustion carbon capture modules is critical for offshore deployment. These systems remove CO₂ from turbine exhaust before emissions are released.

Process:

• Engineering & Procurement: Selection of technology, materials, and fabrication partners.
• Manufacturing & Testing: Assembly of compact, offshore-compatible CCS units with performance validation.
• Logistics Planning: Coordination for module transportation to offshore facilities.

Outcome: Fully built and tested CCS modules, ready for installation on offshore platforms.

Offshore Platform Adaptation

Modifying offshore platform topsides to accommodate carbon capture modules and integrate them with existing power generation and exhaust systems.

Process:

• Structural Reinforcement: Ensuring platform stability and weight-bearing capacity.

• System Integration: Connecting CCS units to turbine exhaust and CO₂ transport infrastructure.

• Safety & Compliance: Meeting offshore regulatory and operational standards.

Outcome: Platforms are retrofitted and ready for CCS operations without disrupting oil production.

CCS System Activation

The final phase involves testing, regulatory approval, and the start of carbon capture operations.

Process:

• Performance Testing: Verifying CO₂ capture efficiency and system functionality.

• Regulatory Approvals: Final inspections and compliance checks.

• Operational Training: Preparing offshore personnel for CCS system management.

Outcome: The offshore CCS system becomes fully operational, capturing emissions and reducing the carbon footprint of oil production.