Modelling study on advanced IGCC power plant with Co2 capture

Trade Agreement: Agreement on Internal Trade (AIT) Tendering Procedures: Generally only one firm has been invited to bid Attachment: None Non-Competitive Procurement Strategy: Government Objectives Representing Best Interests/Value to Govt Comprehensive Land Claim Agreement: No Vendor Name and Address: THE UNIVERSITY OF WATERLOO uwEILAB Depart. of Earth and Environmental Sciences University of Waterloo Waterloo Ontario Canada N2L3G1 Nature of Requirements: Modelling study on advanced IGCC power plant with Co2 capture

Advance Contract Award Notice (ACAN)

An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.

1. Requirement The Department of Natural Ressources Canada has a requirement for services to perform a comprehensive modelling study on advanced Integrated Gasification Combined Cycle (IGCC) power plants integrated with CO2 capture to identify and evaluate the potential benefits of advanced sensors & controls on IGCC power plant availability and performance and to establish the required technical and financial characteristics of sensors and controls that have the potential to substantially reduce the cost of power production. The deliverables under this projects are: A process model (technical report) for the coal beneficiation and the short reseidentime gasifier included in the IGCC power plant with CO2 capture; A process model (technical report) for the sulfur unit, the C02 capture unit and the steam turbine included in the IGCC power plant with CO2 capture; A process integration (technical report) of the advanced IGCC power plant with CO2 capture; and

Basic control structures for the IGCC power plant with CO2 capture.

Quarterly project status and progress report for each year.

2. Criteria for assessment of the Statement of Capabilities (Minimum Essential Requirements)

Any interested supplier must demonstrate by way of a statement of capabilities that it meets the following requirements:

The Contractor must have the experience and knowledge of CO2 capture systems, IGCC plant operation, process integration and optimization, control structures and systems, and modelling analysis under uncertainty to perform this project work in the time frame given.

1. The Contractor must have one or more qualified individuals with a minimum of 10 years of combined experience (the combined experience of the proposed individuals) developing comprehensive mechanistic process models for CO2 capture systems; and 2. The Contractor must have at least one individual with a minimum of 5 years experience developing comprehensive mechanistic dynamic process models for CO2 capture systems; and 3. The Contractor must have one or more qualified individuals with a minimum of 10 years of combined experience (the combined experience of the proposed individuals) developing suitable control systems that can be implemented to ensure the optimal operation of large-scale plants in the presence of sudden or unpredictable changes in the system; and 4. The Contractor must have one or more qualified individuals with a minimum of 10 years of combined (the combined experience of the proposed individuals) experience proposing model-based control schemes that can be used to evaluate plant availability and performance in the presence of disturbances. 5. The Contractor must have one or more qualified individuals with process systems engineering a minimum of 10 years of combined experience (the combined experience of the proposed individuals) in robust optimization, multivariate statistics, integration of process design and control, control systems theory, modeling analysis under uncertainty. 6. The Contractor must possess a valid UniSim license to perform the required work.

3. Applicability of the trade agreement(s) to the procurement

This procurement is subject to the Agreement on Internal Trade (AIT).

This procurement consists of Research and Development services which are excluded from the application of the NAFTA as per Annex 1001.1b-2, Class A Research and Development and not listed under the WTO-AGP.

The Comprehensive Land Claims Agreements (CLCAs) are not applicable to this procurement, as Work will not be delivered to, nor conducted within CLCA areas.

4. Justification for the Pre-Identified Supplier

The group of researchers in the CO2 capture group in the Chem. Eng. Department at the University of Waterloo is the only known group in Canada that has been developing comprehensive mechanistic process models for various CO2 capture systems since 2000 and has been developing comprehensive mechanistic dynamic process models for various CO2 capture systems since 2008 and filed an IP on their process and project. The CO2 capture group at the University of Waterloo is the only known group in Canada that has published studies that involve the dynamic modeling and control of CO2 capture systems. As in the case of CO2 capture systems, an Integrated Gasification Combined Cycle (IGCC) plant is a highly integrated process that cannot be dynamically solved in a direct (straightforward) fashion. The group has gained the required expertise in the development of simulation strategies that has enabled them to obtain the transient (dynamic) behavior of complex integrated systems such as the CO2 capture and IGCC processes. While most of the groups or organizations in Canada have developed steady-state models for CO2 capture and IGCC systems, these models cannot be used to describe the transient behavior of these systems, which is key to determine suitable control schemes and optimal process operating policies, e.g., shut-down or start-up procedures. Also, insight from the process dynamics are essential to determine optimal sensor location for plant-wide control and optimal sizing of the process units in the presence of dynamic-path constraints, which are two key aspects that are relevant for the project for which a contract is required by Natural Resources Canada. The group at University of Waterloo is moving this emerging research forward by proposing model-based control schemes that can be used to evaluate plant availability and performance in the presence of disturbances, e.g., equipment failure or changes in power demands, or changes in the systems operating conditions. Also, this CO2 group is currently developing comprehensive mechanistic models that are aimed to predict the dynamic behaviour of a large (commercial)-scale CO2 capture plants for coal-fired and oxy-coal-fired power plants. The group possesses the following minimum required experience, technology and expertise to develop suitable control systems that can be implemented to ensure the optimal operation of large-scale plants in the presence of sudden or unpredictable changes in the system, e.g., changes in power demands.

1. The Contractor has one or more qualified individuals with a minimum of 10 years of combined experience (the combined experience of the proposed individuals) developing comprehensive mechanistic process models for CO2 capture systems; and 2. The Contractor has one individual with a minimum of 5 years experience developing comprehensive mechanistic dynamic process models for CO2 capture systems; and 3. The Contractor has one or more qualified individuals with a minimum of 10 years of combined experience (the combined experience of the proposed individuals) developing suitable control systems that can be implemented to ensure the optimal operation of large-scale plants in the presence of sudden or unpredictable changes in the system; and 4. The Contractor has one or more qualified individuals with a minimum of 10 years of combined (the combined experience of the proposed individuals) experience proposing model-based control schemes that can be used to evaluate plant availability and performance in the presence of disturbances. 5. The Contractor has one or more qualified individuals with process systems engineering a minimum of 10 years of combined experience in robust optimization, multivariate statistics, integration of process design and control, control systems theory, modeling analysis under uncertainty. 6. The Contractor possesses a valid UniSim license to perform the required work.

5. Government Contracts Regulations Exception(s)

The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 6(d) - "only one person is capable of performing the work.

6. Limited Tendering Reasons

The following exclusion(s) and/or limited tendering reasons are invoked under the (section of the trade agreement(s) specified):

Agreement on Internal Trade (AIT) Article(s) 506, 12b where there is absence of competition for tehcnical reasons and the goods and services can only be supplied by a particualr supplier and no alternative of subsitute exists.

7. Ownership of Intellectual Property

Canada intends to retain ownership of any Foreground Intellectual Property arising out of the proposed contract on the basis that the main purpose of the contract is to generate knowledge and information for public dissemination.

8. Period of the proposed contract or delivery date

The proposed contract is for a period of four (4) years from Contract Award date including quartely deliverables.

9. Cost estimate of the proposed contract

The estimated value of the contract is $123,840.00(GST/HSTextra, as applicable).

10. Name and address of the pre-identified supplier

University of Waterloo 200 University Ave. West Waterloo, Ontario N2L 3G1

11. Suppliers' right to submit a statement of capabilities

Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

12. Closing date for a submission of a statement of capabilities

The closing date and time for accepting statements of capabilities is October 17,2013 at 2:00p.m. EST).

13. Inquiries and submission of statements of capabilities

Inquiries and statements of capabilities are to be directed to

Natalie Cayer Supply Specialist Life and Earth Sciences Division Science Procurement Directorate Services and Specialized Acquisitions Management Sector Acquisitions Branch Public Works and Government Services Canada 11 Laurier Street, Portage III, 11C1, Gatineau QC K1A 0S5 natalie.cayer@pwgsc-tpsgc.gc.ca Telephone: 819-956-7897

Delivery Date: Above-mentioned

You are hereby notified that the government intends to negotiate with one firm only as identified above. Should you have any questions concerning this requirement, contact the contracting officer identified above.

An Advance Contract Award Notice (ACAN) allows departments and agencies to post a notice, for no less than fifteen (15) calendar days, indicating to the supplier community that it intends to award a good, service or construction contract to a pre-identified contractor. If no other supplier submits, on or before the closing date, a Statement of Capabilities that meets the requirements set out in the ACAN, the contracting authority may then proceed with the award. However, should a Statement of Capabilities be found to meet the requirements set out in the ACAN, then the contracting authority will proceed to a full tendering process.

Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a statement of capabilities in writing to the contact person identified in this Notice on or before the closing date of this Notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements.

The PWGSC file number, the contracting officer's name and the closing date of the ACAN must appear on the outside of the envelope in block letters or, in the case of a facsimile transmission, on the covering page.

The Crown retains the right to negotiate with suppliers on any procurement.

Documents may be submitted in either official language of Canada.