United States Department of Energy
United States Energy Association
Promoting Domestic and International Consensus on Fossil Energy Technologies (CONSENSUS)

REQUEST FOR PROPOSALS

INDUSTRIAL CARBON CAPTURE AND UTILIZATION REGIONAL WORKSHOPS AND DEVELOPMENT OF PRO-FORMA BUSINESS PLANS:  APPALACHIA

Questions Due: December 15, 2017

Proposals Due: January 19, 2017

Background
The technology components of Carbon Capture, Utilization and Storage (CCUS) are proven and in use across a variety of industries and applications.  In some instances, individual industrial facilities can capture millions of tons of carbon dioxide (CO₂) each year for use in other industrial applications, such as enhanced oil recovery.  In many industries, such as steel, cement and chemicals, CCUS is capable of breaking the link between industrial production and the emissions of greenhouse gases.

However, smaller scale industrial applications of CCUS often lack the scale of capture achieved by power generation facilities.  This argues for a new business model for Industrial Carbon Capture, Utilization and Storage (ICCUS) specific to regions hosting relatively small carbon emitting industries.  Regions that use ICCUS to establish themselves as ‘low carbon industrial zones’ could see significant advantages in the race to attract employment and investment, while reducing greenhouse gas emissions.

Scope of Work
The United States Energy Association (USEA), in cooperation with the U.S. Department of Energy Office of Fossil Energy (DOE), seeks proposals for a consultant to organize three sub-regional ICCUS workshops in Appalachia (Northern, Central and Southern) and a region-wide Appalachia workshop expected to result in the identification of at least one ICCUS project in each sub-region.  The workshops will result in the development of a pro-forma business plan that identifies industrial hosts and off-taker(s) linked via a CO₂ pipeline or other suitable transportation modes. 

In doing so the Consultant will perform the following tasks:

1. Organize three ICCUS workshops, one to be conducted in each of Northern, Central and Southern Appalachia:

• Recommend a host city characterized by a sufficient concentration of potential industrial hosts and off-takers of CO₂ required to support commercially viable ICCUS project(s)
• Identify and meet with the following stakeholders for pre-workshop discussions to identify potential ICCUS projects:
  
  • Potential producers and off-takers of CO₂
  • Federal, state, and municipal government officials
  • Members of the financial services industry
  • Members of industrial labor unions
  • Regional, state and local economic development organizations
  • Non-government environmental organizations
• Prepare a brief concept paper recommending potential  discussion topics, including potential ICCUS projects, at each workshop
• Prepare letters of invitation to selected workshop participants
• Working in close cooperation with USEA to ensure it is actively involved in developing and approving workshop materials and building a network of regional contacts, develop an agenda and facilitate discussions among workshop participants leading to consensus on the following:
  
  • Recommendations for potential ICCUS projects supporting economic development, increased employment and the reduction of CO₂ emissions
  • Pro-forma business models for sub-regional ICCUS pilot projects
  • Federal, state and municipal policy and regulatory challenges to sub-regional ICCUS projects and recommendations to alleviate them
  • Incentives required to support ICCUS pilot projects
  • Next Steps
• Working in close cooperation with USEA, prepare a summary report detailing workshop proceedings containing a list of participants, complete with contact information

2. Emerging from each workshop prepare a pro-forma business plan containing recommendations for an ICCUS project(s) that identifies hosts; off-takers; transportation links; commercial, financial, regulatory technological, and environmental risks and recommends incentives to alleviate them; a financial model used to analyze the recommended ICCUS project and a financial analysis of the recommended ICCUS project.
3. Organize and conduct an Appalachia-wide regional workshop to disseminate the findings of each sub-regional workshop, share lessons learned and present the pro-forma business plans.  The Consultant will:
   • Identify a host city
   • Develop an agenda
   • Invite selected speakers
   • Serve as moderator to facilitate consensus among workshop participants on next steps required to advance the recommended ICCUS projects
   • Prepare a MS PowerPoint presentation summarizing the results of the three sub-regional workshops and presenting the pro-forma business plan
   • Prepare a report summarizing the workshop proceedings with recommendations for next steps and complete with the contact information for each of the participants

Proposal Preparation
Interested parties are requested to submit a cost proposal and a brief technical proposal of 4-5 pages, including the following:

• Qualifications Statement demonstrating experience in ICCUS; and a proven network of relevant stakeholders in Appalachia; and experience developing business plans and performing financial modeling
• Technical Understanding of the Subject Matter
• Technical Approach to organizing the sub-regional and regional workshops detailing:
  
  • Number and length of trips necessary to organize and conduct the sub-regional and regional  workshops;
  • Process to be used to identify the workshop participants and develop agendas with an emphasis on interacting with USEA
  • Approach to developing the pro-forma business plan and financial modeling

USEA’s estimate for this assignment is one person year of effort. The sub-agreement between USEA and the winning offer will be structured as a fixed sub-agreement for labor, fringe benefits and overhead.  USEA will fund other direct costs, including travel (transportation, lodging and a U.S. Government approved daily meals and incidental allowance) directly.  USEA will also fund directly all costs necessary to conduct the workshops. The cost proposal should include an estimate of the number of trips required to organize and conduct each of the sub-regional workshops and the regional workshop.  Labor costs should include a level of effort for each person proposed to work on this assignment, their daily loaded rate, and the total estimated charge for each individual proposed.

Selection Criteria
The following criteria will be used to evaluate proposals:

40% -- Proven experience in, and knowledge of, ICCUS project development including an understanding of the technology and the financial, commercial,  environmental, regulatory and technological risks associated with it.

40% -- Familiarity with the industrial economy of Appalachia and a proven network of contacts in the industrial, governmental, and non-governmental sectors.

20% -- Price

Schedule
Interested parties are requested to register their interest prior to December 15, 2017 via email to the following mailbox: [email protected]. Registering interest will ensure you receive all questions submitted by interested parties and the corresponding responses from USEA. 

Questions on the terms of this request for proposals must be submitted prior to December 15, 2107 by email to the following mailbox: [email protected].

All questions received and their corresponding responses will be distributed to all parties registering interest in this request for proposals.

Final proposals must be submitted by email by the close of business on January 19, 2017 to the following mailbox [email protected].

END OF RFP