FAPESP – BG BRASIL RESEARCH CENTRE FOR GAS INNOVATION

CALL FOR RESEARCH PROPOSALS 2013  

1. Introduction

One of the challenges in advancing knowledge is the complexity of current scientific and technological problems. Tackling these problems often requires longer term and more substantial support than that usually offered by FAPESP through its Regular Research Grants (or Thematic Projects). Longer term financing and (in many cases) interdisciplinary approaches permits more complex problems to be addressed, and very often more successfully.

In many cases, the identification of the most potentially rewarding technology challenges can stem from an association with business or government entities, which are directly connected to market or societal needs. In this context, FAPESP has built on its successful CEPID programme and has adapted it to facilitate partnership with committed co-funding industrial partners, who are motivated to deploy the research results.

The core mission of the CEPID initiative is to establish a long-term world class Research Centre with effective mechanisms for education and dissemination of knowledge, and technology transfer. These programmes require not only long-term financing but also a reasonably high degree of delegated authority in the application of the funding. They also require a strong institutional connection to the co-funding partner, and a regular and rigorous assessment of the centre’s performance.

BG Group is a medium sized international oil and gas exploration and production company with headquarters in the UK. It has recently implemented a technology strategy focused on R&D opportunities in Brazil, in the context of the investment obligations arising from pre-salt hydrocarbon production in the Santos Basin. A BG Global Technology Centre has been established in Rio de Janeiro from which a range of projects will be managed, spanning BG´s areas of operation and interests globally. BG Brasil is the BG Group subsidiary in Brazil.

BG has a particular interest in R&D in the field of natural gas innovation and technology in order to:

(i) Improve the energy efficiency of its own operations, reduce its own greenhouse gas emissions, understand and influence the demand for gas in its target markets;

(ii) Underpin the positioning of natural gas as a premium fuel in low carbon energy systems of the future.

With the large volumes of associated gas to be produced from the Santos Basin, BG has a particular interest in the development of the natural gas market in Brazil.

In partnership with FAPESP, BG wishes to establish a Brazilian Research Centre for Gas Innovation. The focus of the centre at a strategic level will be to undertake R&D into:

(i) New applications for natural gas (including the use of gas in an energy efficient manner);

(ii) The synergies between gas and other emerging technologies;

(iii) Studies that look at the potential for reducing the carbon intensity of natural gas and the associated cost and environmental benefits.

The centre will also address the current technology challenges that Brazil faces in maximising the penetration of natural gas.

The centre will be the first of its kind to be located in a tropical region and will aim to become the world’s leading research centre for gas innovation and its role in future energy systems. It should be noted that implementation and field trials will require close support through an ‘innovation incubator’ facility, and this will require resourcing to take projects through to full implementation. Working with other industrial partners will also be critical in this regard.

It is also envisaged that in future the centre may also sponsor the development of further education courses (Bachelor and Masters Level) and vocational training for new entrants and employees in the natural gas industry in Brazil.

BG recognises the CEPID programme as a suitable vehicle to promote a long-term research programme in this field with Sao Paulo research institutions and universities. In 2012, FAPESP and BG promoted an International Workshop on Science, Technology and Natural Gas Applications in Sao Paulo. With contributions from a wide range of Brazilian and international delegates, the workshop identified the most significant scientific challenges and opportunities in this field in the next 5 to 10 years. The discussions also allowed the identification of priority research themes for potential development, including advanced natural gas combustion, low-carbon power generation using natural gas, energy efficiency, fuel substitution, new applications for gas, and work on policy and gas infrastructure.

This initiative expands the aims of the FAPESP CEPID program, adding  a component of research collaboration with industry since the inception of the proposals, thus bringing in the approach of FAPESP's Research Partnership for Technological Innovation (PITE) program. The Research Centre for Gas Innovation in Sao Paulo to be selected by FAPESP and BG Brasil will perform world-class research in "natural gas" that advances the comprehension of the theme in the fields of Engineering, Physical Chemistry and Energy Policy and Economics, combining the best of both program's practices.

2. Definitions

a. Principal Investigator (PI): the senior academic faculty member responsible for the Centre Proposal and for the scientific and administrative coordination of the Centre. The PI will be an international leader in a technical field related to the focus of the Centre and will have the explicit endorsement of the Host Institution and other partner institutions, where appropriate. The PI will assume the role of the Centre Director.

b. Co-Principal Investigator (Co-PI): is a Research Programme Leader, proposed by the PI and approved by FAPESP and BG Brasil. All Co-PIs must have an excellent research background in a related field; their participation must be clearly specified in the Research Centre Plan and this will be essential to the development of the projects to be carried out. Each of the three research programmes (see Section 4) will be technically coordinated by a Co-PI as a Research Programme Leader, who will be based at the appropriate institution.

c. Associate Investigator (AI): team researchers, assigned by the Co-PIs and approved by FAPESP and BG Brasil, responsible for contributing to well-defined elements of the Research Centre projects.

d. Education and Dissemination of Knowledge Coordinator (EDC): appointed by the Host Institution to manage educational and communicational interfaces to disseminate output from the Centre to the academic community and other stakeholders.

e. Technology Transfer Coordinator (TTC): appointed by the Host Institution to develop and manage the institutional and business relationships and interfaces to translate output from the Centre into practical applications.

f. Host Institution: the institution hosting the Research Centre and to which the PI is connected. This connection may not necessarily be through employment, but it must be formal in nature and appropriate to the responsibilities and commitments of the PI and the Host Institution. The Host Institution will provide institutional and administrative support for the Research Centre, including storing and accessing material and equipment for the project researchers.

g. ANP: Brazilian National Agency of Petroleum, Natural Gas and Biofuels.

Further details on the requirements for the personnel assigned to the Centre are provided in Annex I.

3. Research Centre structure

The Research Centre will be responsible for the management of three discipline-based research programmes (see Figure 1 and Section 4). It is envisaged that although a single institution will host the Centre, there may be the need for other institutions to be involved in the delivery of the programmes. Therefore, proposals from leading consortia of institutions are encouraged, where a Host Institution is nominated along with partner institutions, which collectively have internationally leading academic capabilities that span the three research programmes and supporting areas. All participating institutions must be located in the State of Sao Paulo.

The Host Institution will provide the Research Centre Executive Committee (EC) and the necessary administration and support staff necessary to achieve the appropriate level of direction and coordination of activities across the three research programmes. Each of the programmes will deliver internationally competitive research in the topics detailed in Annex IV, and the coordination of the Centre activities will maximise the synergies between the different research programmes.

The Centre should expect to interact extensively with BG Brasil, BG Group and an international Sustainable Gas Institute (SGI) currently being established by BG Group. These interactions will include but will not be limited to the following:

· Knowledge exchange activities e.g. sharing of progress information, research findings, forward plans between the Research Centre and SGI groups;

· Where appropriate, temporary exchange of staff, students or other resources;

· More general networking and collaborative activities required with the SGI and other groups through periodic seminars, workshops and conferences, among others.

The SGI will have access to BG Group contacts in the wider international scientific communities in relevant activities, and the Research Centre will be encouraged to take advantage of these in the interests of developing and executing its research programmes.

Figure 1: Research Centre Structure

In broader terms, the goals of the Research Centre must be:

a. To perform world-class science and engineering research at the leading edge of either fundamental or applied knowledge, seeking economic and social impacts through innovation.

b. To transfer knowledge to BG Brasil (and its affiliates) and to society, including corporate and/or non-governmental and/or public sectors, e.g. by carrying out projects in partnership with companies, governmental agencies or NGO’s responsible for public policies, or through establishing small businesses using research developed by the Centre. These projects may benefit from other FAPESP programmes such as PITE (Partnership for Technological Innovation), PPP (Public Policies Research Programme) or PIPE (Innovative Research in Small Business Programme).

c. To interact with the educational system, especially at the primary and secondary levels, (for example through the FAPESP Public Education Research Programme).

d. To undertake international collaboration with leading universities from other countries that provide opportunities for international training of PhD students and post-doctoral researchers, facilitating the transfer of technical knowledge and enhancing the Brazilian academic base.

3.1 Composition of the research and management team

A key determining factor for the success of the Research Centre will be the existence of a balanced research and management team led by the PI, and supported by high quality administrative and management services. The latter may also include representative(s) of BG Brasil. The Centre should be able to demonstrate world-class expertise, and be underpinned by the scale, depth and duration of the proposed research activities. To deliver the research programmes efficiently and effectively will require continuous interaction between team members to achieve the scientific and technological goals, and the transfer and diffusion of knowledge. The dimensions, structure, and operation of the Centre should be determined based on the agreed research programmes.

The Research Centre will be directed by the Executive Committee (EC) comprising the Centre Director (PI), a Deputy Centre Director (appointed by BG Brasil), an Education and Dissemination of Knowledge Coordinator (EDC), and a Technology Transfer Coordinator (TTC). The EC should be supported by a professional staff to undertake and supervise the management and administrative tasks necessary for the operation of the Centre (to be hired by the Host Institution).

The Research Centre shall have a clearly defined scientific and technological focus that articulates the research activities to be developed. It must be understood that this is not an institutional support programme and, therefore, research divisions, departments, units and institutions will not be supported as such. Funding of Centre activities will be long term (but limited to 5 years), and with ongoing support conditional on regular progress and quality assessments throughout this period. The funds allocated may be used with a reasonably high degree of delegated authority, and FAPESP and BG Brasil will supervise expenditures through the periodic assessments of the Centre’s activities.

3.2 Participation of BG Brasil and the Sustainable Gas Institute

The participation of representatives from BG Brasil, its affiliates and the SGI in the activities of the Research Centre (including participating scientists or technicians), is considered essential and will be discussed with the PI and the Host Institution after the review process. The appointment of a BG Brasil representative as the Deputy Director of the Centre will facilitate a high level of interaction between the Centre, BG Brasil and its affiliates, and the SGI.

3.3 FAPESP-BG Brasil Joint Steering Committee (JSC)

A FAPESP-BG Brasil Joint Steering Committee (JSC) will be established to provide overall direction to the Research Centre. The JSC will include representatives from FAPESP and BG Brasil and will meet twice per year (every 6 months) to review the progress of the Centre, including the review and approval of the annual research plan. The JSC will ensure continued alignment of the Centre with the science and technology, education and technology transfer requirements of both FAPESP and BG Brasil. This will include a particular focus on identifying development and deployment opportunities for the research outputs of the Centre to be developed by BG Brasil and its affiliates.

3.4 International Advisory Board (IAB)

FAPESP and BG Brasil will establish an International Advisory Board (IAB) of renowned scientists in appropriate research fields to provide independent advice on the establishment and operation of the Research Centre. The IAB will include at least two foreign scientists who are active at the leading edge of research in their respective areas of knowledge. The IAB’s main role will be to advise on:

a. The selection of the best proposal for the Centre, from those considered the most internationally competitive.

b. The operation of the Centre, guiding the team regarding the direction and execution of ongoing research programmes, new opportunities for research, and strategies to increase its international competitiveness.

With respect to proposal selection, the input of the International Panel is supplementary to the established FAPESP evaluation processes, which will be implemented jointly by FAPESP and BG Brasil.

3.5 Involvement of international universities

Participation of international universities in projects should be proposed where such collaboration can provide unique and leading capabilities that enhances the technical outputs of the projects. Such international involvement could include, for example, periods spent by a São Paulo based PhD student or post-doctoral researcher at the university abroad.

4. Research Centre scope

The Centre will encompass three focused but complementary research programmes on the topics of interest below and with further details provided in Annex IV. Centre proposals must contain research plans for all three programmes, supported by details of proposed academic contributions and statements of capabilities in each area. A summary of the three research programmes is provided below:

a) Research Programme: Engineering based - scientific and technological research focused on engineering to promote new applications and low-carbon power generation, including:

· Small scale natural gas generators: to develop small scale natural gas generators to compete with alternative power sources e.g. small scale diesel generators, exploiting cost and environmental advantages;

· Natural gas/hydrogen fuels for shipping: to address i) the technical questions around production and handling of blended fuels and ii) the development of codes and standards;

· Associated developments to optimise use of natural gas in shipping: to increase and optimise the usage of natural gas based fuels in the marine transport system two main developments are required, i) development and optimisation of natural gas and hybrid powertrains and ii) development of innovative, lightweight storage systems.

· Opportunities to detect measure and minimise methane emissions/losses from gas supply and utilisation systems.

b) Research Programme: Physical Chemistry based - scientific and technological research focused on physical chemistry to promote low-carbon power generation, fuel substitution and transport and new applications for gas, including:

· Advanced and cleaner natural gas combustion: to develop the ability to reduce the environmental impact of natural gas combustion, reduce emissions of unburned methane when combusted and promoting more competition with hydro power in Brazil;

· Fuel Cell Developments: research to help position Brazil within a global Centre of Excellence in fuel cell developments;

· Conversion of natural gas to chemicals (e.g. H2, CO & NH3): the two main objectives are i) to generate added-value products from methane for the Brazilian (and global) markets, and ii) to provide in-situ manufacture of chemicals which carry a significant transport hazard.

c) Research Programme: Energy Policy and Economics based - promotion of infrastructure and policies to encourage gas utilisation, including:

· Policies for the development of gas in energy systems: to develop information sources which will provide credible and authoritative information for the development of gas as a key energy source and to demonstrate how gas can be integrated into emerging energy systems in the Brazilian context;

· Development of supply chains for natural gas for remote areas: to promote the use of natural gas in remote areas and in areas where it is not currently viable and to reduce CO2 emissions by replacing other fossil fuels with natural gas.

5. Research Centre - minimum requirements

Proposals will include the following minimum requirements:

a. Research Centre Plan: including details of the proposed management structure for the Centre, including the key roles (with individuals identified where possible) and details of the objectives, scope, budgets and delivery mechanisms for the research, education, and knowledge dissemination and technology transfer programmes.

b. Research Programme Plans: detailed content and execution plans for the three research programmes, indicating the delivery of internationally leading research.

c. Participating Institutions: confirmation that the Centre will be hosted in an higher education and research institutions, or research institutions, which are public or non-for-profit private entities, in the State of São Paulo and associated with graduate programmes recognised by CAPES (preferably graded 5, 6 or 7), and which are committed to the long-term success of the proposed Centre. Where institutional collaboration is proposed, a formal relationship may be required by FAPESP and BG Brasil to be established.

d. Host Institution(s): a detailed description of the institutional contribution and schedules for disbursement and/or hiring of personnel are required, in particular:

a. Physical space and infrastructure: the physical area set aside for the Centre should provide for the satisfactory execution of research, innovation and diffusion activities and the on-going interaction between researchers. Where infrastructure needs to be built to achieve this, the proposal must include confirmation of the commitment to do so and the construction timeline. The infrastructure plan should also cater for management and administrative staff (including the BG Brasil representative noted in para. 3.1).

b. The technical, administration and management personnel to support the Centre.

e. Confirmation of the proposed EC. Minimum requirements for EC roles are listed in Annex 1.

f. Confirmation of the research team(s), in terms of structure, personnel, qualifications and experience. Well-qualified and experienced researchers from other states in Brazil or overseas may be nominated. The budget proposed may provide funds for such researchers, within FAPESP guidelines for visiting research awards.

g. Details of agreements, joint projects or collaborations established or under negotiation with internationally recognised foreign centres, departments or research institutes with a research focus in relevant areas. These are not mandatory but can enhance the strength of a proposal. If not already established, proposals should consider putting in place such collaborations within the first two years of the Centre’s operation, where these will add additional value to the research programmes. Where such collaborations are proposed, a formal relationship may be required to be established by FAPESP and BG Brasil.

Guidance on presentation requirements for proposals is provided in Annex II.

6. Support offered by FAPESP and BG Brasil

a. Funding will be awarded initially for a maximum of 3 (three) years and may be renewed at the discretion of the JSC. Renewal may be for up to 2 (two) further years. FAPESP and BG Brasil will not have any commitment to maintain the Centre beyond 5 (five) years, although may choose to do so and to provide additional funding by joint agreement.

b. The investments from FAPESP and BG Brasil are not expected to be the sole source of funding and exclusive support for the Centre. Proposals should provide details of the required budget and proposed sources and application of funds. Planned external financing will add value to proposals in evaluation.

c. External funding will require the advance approval of the JSC.

d. The Centre will also be encouraged to secure industrial funding (in Brazil and internationally) to support the translation of output from the Centre into products, equipment, services which may be commercialised or developed to benefit gas consumers, the development of the industry in Brazil, or the achievement of BG Brasil´s business objectives.

e. The Centre funding structure will be regulated by a separate agreement between FAPESP, BG Brasil and the Host Institution, which will provide that: (i) the funds to be granted by FAPESP shall be disbursed directly to the PI and (ii) the funds to be granted by BG Brasil shall be disbursed directly to the Host Institution.

6.1 FAPESP funding

FAPESP is forbidden by law to support administrative activities. For this reason, support from the Host Institution for all administrative activities will be required for the operational performance of the Centre.

Items that may be funded by FAPESP are:

a. Fellowships (at scientific initiation, technical training, master, doctorate, post-doctoral levels) and visiting researcher programmes;

b. Organisation of work meetings;

c. Research equipment;

d. Consumables;

e. Third-party services;

f. Per diem allowances for travel, transportation, living expenses for visiting researchers;

g. Civil construction of research infrastructure through the modification of existing facilities and structures (within the existing footprint);

h. International collaboration and/or training costs for PhD students and researchers.

Further information on Fundable Items is available at Annex III.

FAPESP funding may not be used for:

a. Administrative activities;

b. Additional salary payments of any nature;

c. The construction neither of new buildings nor of annexes to existing buildings (beyond the existing footprint).

6.2 BG Brasil funding

Items that may be funded by BG Brasil are those allowed by ANP Resolution number 33/2005, available at http://www.anp.gov.br/?pg=9217&m=&t1=&t2=&t3=&t4=&ar=&ps=&cachebust=1343744898338 , i.e.:

a. Research equipment associated with the project (to be owned by the Host Institution on completion of the project);

b. Funds invested in PhD, interchange doctoral or post-doctorate fellowships at levels at least equal to the equivalent grants from FAPESP for these arrangements;

c. Provision for funds to be used to support training and collaborative activities with international partners where appropriate;

d. Acquisition of consumables, travel and third-party technical services when directly associated with the project;

e. Funds invested in infrastructure associated with the project (to be owned by the Host Institution after the completion of the project);

f. Funds to supplement the salaries of researchers employed by participating institutions; these will paid in accordance with the rules of the relevant institution, and in such a manner that does not imply employment by BG Brasil.

6.3 Host Institution support

Because of the legal requirements on the application of FAPESP funds, the Host Institution is required to provide support for all administrative activities (procurement, management, secretarial services, and others) and the payment of research support personnel. Moreover, the Host Institution (or partner Institution) must provide for:

a. Personnel and services for Centre and programme management, including as a minimum the Centre EC and a Research Programme Leader for each of the three programmes;

b. Personnel and support for procurement, scheduling, accounting and all other administrative tasks required to ensure the effective functioning of the proposed Centre;

c. All other technical personnel, support and facilities needed to operationalize and maintain the research programme and related activities;

d. The recruitment of new researchers/professors (this is not a mandatory requirement, but can add significant value to the proposal).

All institutional contributions must be described and quantified, physically and financially. This will include details of salaries for researchers and support personnel, facilities (layout of the area to be occupied by the Centre), and the equipment and infrastructure to which the Centre will have access (e.g. communication, computer network, support workshops, administrative resources). The level of the institutional support considered necessary will be an important factor in the assessment of the proposals.

6.4 Research Centre supervision

The activities of the Centre will be assessed annually by meanos of progress reports. At the end of the third year, a wide-ranging assessment will be carried out which may include visits and interviews with the Centre staff and researchers. The results of this assessment will be fundamental to any decision by FAPESP and BG Brasil with respect to continued support beyond the third year. In the event that funding is not continued the Centre will be granted six months of reduced support whilst it closes down operations.

6.5 Programme funding schedule

The financial support from FAPESP and BG Brasil to each of the programmes will be limited to the annual percentages of the total amount (the equivalent in Reais (R$) of US$ 10,000,000.00 in total provided by each party) described in the table below. The values ascribed for overheads for direct infrastructure costs (see Section 2 of Annex III) and the overheads for any awarded fellowships are included in the total values indicated:

Financial support from FAPESP (%)

Research Programmes

1st year

2nd year

3rd year

4th year

5th year

Total

Engineering

8

8

8

8

8

40

Physical Chemistry

6

6

6

6

6

30

Energy Policy and Economics

6

6

6

6

6

30

Total

20

20

20

20

20

100

Financial support from BG Brasil (%)

Research Programmes

1st year

2nd year

3rd year

4th year

5th year

Total

Engineering

20

15,5

6,5

6,5

6,5

55

Physical Chemistry

15

13,5

5,5

5,5

5,5

45

Energy Policy and Economics

0

0

0

0

0

0

Total

35

29

12

12

12

100

Guidance: Institutions should note that as far as the BG Brasil financial support is concerned, there is flexibility on phasing between programmes and across years, except that the 1st year funding total ($3.5m) should be regarded as a fixed total ceiling for that year. Institutions may propose variations to the BG funding allocation with respect to:

(a) alternative funding distributions across the three programmes within the year, and

(b) a different total funding profile across the 5 years.

This flexibility is to ensure that institutions are able to optimize their proposals with respect to investment phasing between programmes and across years. It applies only to the BG financial support, and institutions should also ensure that proposals are compliant with the guidance provided in this document on the constraints on the application of financial support by both FAPESP and BG Brasil.

Please note that for the moment the Energy Policy and Economics programme will be funded with financial support from FAPESP only.

7. Presentation of proposals

All proposals will be internationally peer reviewed; hence, they must be presented in ENGLISH.

Proposals must adequately describe the arrangements for both the academic organisation and management systems to be adopted by the Centre, and these should clearly demonstrate the feasibility of delivering the required scientific objectives.

The proposal must be submitted by the PI, with the endorsement of the appropriate institutional directors (for example, at a State University there should be an endorsement from the Unit Director, the Dean of Research, and the University President), and the Co-PIs. During the review process, the reviewers may consult the Lattes CVs of the PI, Co-PIs and other members of the scientific team; therefore, these must be kept updated.

More detailed guidance on required proposal content and formatting is provided in Annex II.

8. Review of proposals

Proposals will undergo a competitive and international review process, considering the degree to which the proposal complies with the conditions of this Call for Research Proposals.

Proposals will be submitted to FAPESP and be distributed to reviewers appointed jointly by FAPESP and BG with expertise relating to each of the three research programme areas. Each reviewer will analyse and report on the programme(s) relevant to his/her area(s) of expertise for each proposal received.

The jointly appointed IAB will also review the proposals, and taking into account the reviewers reports, the Board will deliver a written recommendation on each proposal and a ranking based on the technical analysis to the JSC. The JSC will issue a final recommendation to the FAPESP Scientific Director, who will confirm the final selection decision.

The review process may include (at the discretion of the JSC) an interview with the proposing PI, the research team, and directors of the Host Institution, as well as visits to participating institution(s).

At the end of the review, FAPESP and BG Brasil may recommend the merging of proposals.

FAPESP and BG Brasil are not bound to accept any of the proposals.

8.1 Review and selection criteria

The criteria used for ranking and selecting proposals will be as follows;

a. SCIENTIFIC MERIT. This will be based on the originality and degree of innovation of the proposal, benchmarked by an analysis of the international state of the art for the area. The project should be strategic and present reachable and measurable objectives to be met over the duration of the programme. It is essential that realistic and detailed timelines be made for the first three years of the programme. The Research Plan should promote the potential for the Centre to become a world-class reference in the area, and one of the important elements of the plan will be the strategy for effective international cooperation.

b. FOCUS. One common scientific/technological focus that articulates research activities to be developed is mandatory.

c. JUSTIFICATION FOR CREATION OF THE CENTRE. The proposal must explain the need to create a Centre. The CEPID Programme is focused on contributing to the establishment of world-class multidisciplinary Centres capable of creating cutting edge science and transferring and diffusing knowledge.

d. QUALIFICATIONS OF THE CENTRE RESEARCH AND MANAGEMENT TEAM. The requirements for the qualifications, skills and experience of the research and management team are detailed in Annex I.

e. ADEQUACY OF THE SCIENTIFIC TEAM. Criteria will be based on the qualification, size, recent academic background of the scientific team, the balance between senior and junior team members, the participation of emerging leaders, and the level of involvement of post-doctoral researchers in recent grant funded research done by the Co-PIs. The team is expected to have a balanced composition of Co-PIs, AIs, visiting researchers, post-doctoral researchers, graduate and undergraduate students, and technical support personnel, supported by top quality administrative and management services.

f. INSTITUTIONAL COMMITMENTS TO THE CREATION OF THE CENTRE. The quality and quantity of the institutional contribution, including physical space to be used by the Centre and administrative and management support, needs to be compatible with the scale and scope of the proposal objectives.

g. EDUCATION AND KNOWLEDGE DISSEMINATION PROPOSAL. Criteria will be based on the mechanisms proposed for diffusion and education that may either consolidate existing processes, or propose innovations, with the potential for improving teaching and the perception of science by society.

h. TECHNOLOGY TRANSFER PROPOSAL. The degree of planned technology transfer to the industry, the public sector or third parties, may vary depending on the project focus, but is expected to lead to stronger bonds between research institutions and the external environment and to contribute to bringing new challenges in research to the institutions, thereby guaranteeing that societal benefits created by the research are maximised.

i. TOTAL ESTIMATED BUDGET ADEQUACY. Criteria will include;

i. Sources and uses of funds

ii. Balance between personnel and equipment costs

iii. Adequacy of funding in relation to research objectives

iv. Effective and appropriate use of existing infrastructure

v. Access to other (confirmed or prospective) funding sources

vi. Access to institutional support

j. MANAGEMENT PLAN. Criteria will include;

i. Skills, experience and evidence of strategic management and business development capabilities within management team

ii. Programme management proposals, including progress and performance tracking arrangements, programme governance framework, budget controls, internal audit

iii. Internal and external communications plan

iv. Stakeholder management plan

v. Risk management plan

vi. Evidence of compliance with BG Group Ethical Conduct policy and standards

vii. Evidence of compliance with BG Group Health, Safety, Security and Environment requirements

9. Timeline

Deadline for proposal submission

March, 10th, 2014

Announcement of selected proposal(s)

September, 12th, 2014

10. For further information

Email: chamada_bgbrasil@fapesp.br

11. Implementation of the approved proposal

The cooperation between FAPESP, BG Brasil, and the participating institutions will be regulated by a separate agreement that will define:

a. The schedule of disbursements and financial reports;

b. The definition and timing of expected results at each stage of the project;

c. Clauses on Intellectual Property, commercial exploitation and confidentiality;

d. Term;

e. Legal venue.

Annex I: Research and management team requirements

1. Requirements for the PI and the CoPIs

Experiences from similar research centres in other countries have shown that the success in implementation is highly dependent on the appropriate choice of the Research Centre Director (PI) and the team of researchers. In addition to having an excellent academic and research track record, the Director should possess strong leadership skills and strategic management capabilities, and be able to engage positively with a wide range of internal and external stakeholders, including those at all levels within the FAPESP, BG Group and SGI organisations. He/she will have the ability to lead a multidisciplinary team to develop the business of the Centre and to deliver results to required quality, cost and schedule parameters.

The research team must reflect the interdisciplinary nature of the Centre, and is expected to include some young researchers with a strong track record and proven potential for development. The Research Programme Leaders must be experienced researchers who have produced scientific work of international impact and have demonstrated competence in delivering complex and cooperative research programmes.

Specific requirements for the PI and Co-PIs are:

a. A PhD degree or equivalent qualification;

b. A formal connection with a research institution in the State of São Paulo: when this is not through employment, documentary evidence of a formal linkage will be required;

c. Proven and substantial scientific or technological production and leadership in large and ambitious research projects;

d. Proven experience and competence in one or more of the areas in which the Research Centre is to be involved, demonstrated by:

i. Evidence of high quality, regular and high impact scientific and technological output;ii. Training of researchers at graduate level;

Experience in the execution of research projects through scientific exchange and in collaboration with researchers from institutions in Brazil and/or in other countries;

The ability to form research groups and generate results recognised by the scientific community.

The PI and Co-PIs must demonstrate a substantial time and dedication to the Centre’s activities. They are expected to dedicate a minimum of 20 hours per week to activities in the Centre.

2. Requirements for other EC members

The Host Institution will resource and appoint an Education and Knowledge Dissemination Coordinator (EDC) and a Technology Transfer Coordinator (TTC) to the EC for the Centre.

The EDC should be experienced in developing projects in this area and in designing and delivering educational programmes, courses and seminars. The EDC will be skilled in communicating outputs to relevant internal and external Centre stakeholders and gathering feedback to help shape the future direction of the research programmes. He/she will have strong relationship building, networking and communications skills, and will be able to work within the Centre EC team in an integrated and effective manner. The EDC has to be supported by other staff as required.

The TTC will be a researcher experienced in technology programme management and delivery, and with a track record of successful implementation of research output and technology developments. He/she will be able to build relationships with other academic institutions, private companies, government agencies and other Centre stakeholder organisations. The TTC will play a particularly critical role in liaising with SGI personnel to ensure the effective translation of Centre outputs to address BG Group business needs.

Annex II: Presentation requirements for proposals

1. Cover sheet

PI, name of the Centre, name of Host Institution and associated institutions, names and connections of proposed EDC and TTC.

2. Abstract (30 lines)

The abstract of the proposal.

3. Summary (up to 2 pages)

a. Focus of research programmes and their multidisciplinary focus;

b. Description of Education and Dissemination of Knowledge and Technology Transfer plans;

c. Description of justification for creation of the Centre;

d. Brief description of the institutional contribution.

4. Justification for the Research Centre (up to 3 pages)

The existence of the Centre must be justified based on the nature, importance, and feasibility of the activities to be developed. It should be based on the following criteria:

a. The complexity of the scientific and technological challenges;

b. The scale and duration of the research activities to be carried out;

c. The multidisciplinary character of the planned research;

d. The need for continual interaction between team members.

5. Research Programme Plan and description of its scientific relevance (up to 20 pages, including bibliographic references, for each Research Program)

The Research Programme Plan is the technical core of the Centre proposal. It should describe the scientific and technological challenges to be addressed, and the means, methods, and materials to be deployed in the research programmes. It should refer to the state of the art in the relevant area(s) in connection with the activities proposed.

A bold and distinctive Research Programme Plan is expected, highly competitive both nationally and internationally. How the chosen strategy will influence the area of research in a significant manner should be shown. The Research Programme Plan should articulate the vision for the programme, outlining the scientific macro-challenges that will be faced and/or the scientific discoveries to be pursued. Specifically the plan needs to justify the special support that is offered and the potential funding period of 5 years, in terms of complexity of problems and/or scale and potential of the scientific relevance.

The scientific objectives of the Centre and the research activities should be described in a sufficiently detailed manner to allow for scientific assessment of their merit as well as of the need for an integrated programme to carry them out. The Research Programme Plan should also show how the integration of the Education and Dissemination of Knowledge and Technology Transfer functions will contribute to advancing research and innovation, and deploying developments to the benefit of stakeholders in the Centre. The Research Programme Plan should also include some specific examples of lines of research with enough detail to allow for analysis and audit.

6. Action plan for Education and Knowledge Dissemination (up to 5 pages, including bibliographical references)

The activities of the Centre will include training of human resources at every level and the education and dissemination of knowledge. In addition to developing undergraduate and graduate level science research programmes, the Centres will also be responsible for developing and implementing basic education extension activities, such as secondary education student and teacher activities, teacher training, science diffusion courses, and continuing education programmes. The experience of participants in this type of activity should be briefly described, emphasising documented results.

Proposals are expected to contribute to the education and dissemination of knowledge and to improving the teaching of sciences at every level, through routes such as research programmes for faculty and students, projects in partnership with schools, other education and dissemination initiatives, etc.

7. Action plan for Technology Transfer (up to 5 pages, including bibliographic references)

Research activities at the Centre should have significant potential for exchange with other research and knowledge transfer institutions in the industrial and governmental sectors. The Technology Transfer proposal should describe how the Centre will develop and implement these activities. Prior experience of participants with this type of activity should be briefly described, emphasising documented results (projects, co-authored publications, licensed or co-licensed patents, absorption of graduate students by collaborator companies, etc.).

The plan must be described and the viability of technology transfer activities must be shown via projects to be done in partnership, incubation of companies, continuing education programmes, and other activities.

8. Plan and organisation structure for Centre operations

8.1 Organisation plan and structure (up to 3 pages)

The Centre must have an organisational structure and plan adequate to deliver complex and diverse scientific objectives. The organisation chart must include the coordinators for the Education and Diffusion of Knowledge and Technology Transfer activities, in addition to other coordinators that the proposers consider necessary.

The plan should also show how the Centre will be located within the Host Institution, and how research programmes located within other institutions will be integrated.

The plan should also detail the management model for activities, and the planned mechanisms of collaboration. At least one annual meeting should be included, in which the results and/or projects and/or plans for the coming period will be presented and discussed, held in addition to regular team meetings. At the annual meeting, the attendance of the International Advisory Board and all of the Centre’s researchers is required. FAPESP, BG Brasil and SGI observers must be invited with reasonable notice given.

The management plan shall also include information on how the Centre will manage health, safety, security and environmental risks, and it should contain a management of change strategy statement.

8.2 Executive Committee (1 page)

As a minimum, this will comprise the membership outlined in Section 3.1. This may be expanded if deemed appropriate by the proposers. The EC will supervise all day-today operations at the Centre and will be assisted by an appropriately sized support team provided by the Host Institution.

8.3 Proposal for composition of the International Advisory Board (up to 2 pages)

The proposal should include suggested names and justification for their nomination. Members of the IAB should be researchers who are very highly regarded for their international excellence and people to whom the Centre Director and EC Coordinators will have relatively easy access. The proposal should also suggest the modus operandi of the IAB.

FAPESP and BG Brasil may want to nominate members to the IAB. In that case, the appointed names will be discussed with the PI and the Host Institution after the review process.

8.4 Project team (up to 5 pages)

List of team members: researchers (including post-doctorate members with fellowships), technicians, administrative support personnel and students. A description of the responsibilities of the PI and each of the Co-PIs should be included in the Research Plan. The Centre is expected to have a team with a balanced distribution between the PI, Co-PIs, AIs, visiting researchers, post-doctorate researchers, students and the corresponding technical and administrative support. For each member of the scientific team (PI, EDC, TTC and CoPIs) the proposal must include individual résumés (using the form available at www.fapesp.br/bg/forms). These team members should also fill out the researcher registration, also available on the FAPESP website. A description of the most important achievements already made through the collaboration between the PI and Co-PIs should also be included (one page maximum).

9. Estimate of total annual Centre budget (using appropriate form)

This should include all sources of funds the Centre will have access to, listing uses (see sources and uses spreadsheet) of funds in terms of scientific personnel, technical personnel, administrative personnel, students, permanent equipment and material, consumables, and third-party services.

10. Budget request for FAPESP and BG Brasil (using appropriate form plus justification sheets)

The detailed budget request should include justification (based on the objectives of the Research Plan, and the Education and Dissemination of Knowledge and Technology Transfer plans) for all of the items valued at more than R$ 25,000 (national or imported), referenced to the relevant activity in the Research Plan. This budget request should be prepared for the first three years of the Centre’s operation in detail, and for the other years based on reasonable and justifiable estimates. The budget should include details of the support requested separately from FAPESP and BG Brasil for each of the research programmes, and the supporting Education and Dissemination of Knowledge and Technology Transfer programmes.

11. Details of institutional support to be provided and costs (up to 5 pages)

Description of the institutional support offered by the Host Institution(s), including detailed information on the costs of each item.

12. Details on other current and expected support (up to 2 pages)

Details of other support a) currently contracted and b) planned or expected, over the possible 5 year term for the Centre.

Important: all appropriate forms to the submission of the proposal can be found at www.fapesp.br/bg/forms.

Annex III: Items fundableby FAPESP and BG Brasil

The research project budget presented to FAPESP must be detailed and each item must be specifically justified in terms of objectives of the proposed plans (see the Accountability Manual at www.fapesp.br/5835).

Items that may not be financed are salaries of any nature, third-party services of a non-technical and sporadic nature, civil construction, acquisition of publications, travel (except for field research and to present work at scientific conferences), administrative services and materials.

Items that may be financed include the following:

1. Research project costs

a. Permanent materials acquired in Brazil or imported;

b. Consumables acquired in Brazil or imported;

c. Third party services acquired in Brazil or abroad;

d. Transportation and per diem expenses for activities connected directly with carrying out the proposed research, including for visits from Visiting Researchers;

e. Fellowships: Fellowships may be requested as a budget item (BCO) within the following programmes and in accordance with FAPESP standards: Post-Doctorate (PD), Doctorate (DR), Honors Doctorate (DD), Masters (MS), Scientific Initiation (IC), and Technical Training (TT). Note that the advisor/supervisor for each person awarded a fellowship must be the PI or one of the Centr’se Co-PIs.

Notes on Fellowships

For each requested fellowship, a plan of activities must be presented with the initial proposal containing up to two pages, including the Fellowship Project Title, Summary, and Plan Description. The plan for each fellowship needs to be consistent with the research proposal and should be referenced within the research proposal in a manner that makes it possible to see the connection with, and the importance to the research project proposed.

The name of the fellowship candidate should not be indicated on the proposal. If the fellowship is approved, the researcher responsible for the grant will hold an open and competitive process to select fellowship candidates based on academic merit.

Rules for awarding Fellowships as a budget item (BCO) are available atwww.fapesp.br/2615 .

Scientific Initiation Fellowship candidates should have already concluded a sufficient number of relevant classes in order to carry out the research project and obtain maximum academic benefit.

Candidates for DR, DD and MS level Fellowships should have been accepted into the project Host Institution’s graduate programme.

In the case of PD Fellowships awarded as a budget item of the project, the selection process must necessarily be international and must be documented at the time that each Fellowship is awarded. If documentary evidence of a public and international selection process is not presented, the Fellowship will not be granted by FAPESP.

SI, MS, DD, DR and PD Fellowships may also be requested separately, as Complementary Requests, in accordance with item 4 below.

2. Overhead (Technical Reserve)

FAPESP rules for Technical Reserve in Thematic Projects apply, with certain modifications with respect to the schedule. The Technical Reserve is composed of three parts:

a. Additional benefits;

b. Overhead for direct expenses with research infrastructure;

c. Overhead for institutional expenses with research infrastructure.

The detailed rules for use of the Technical Reserve are available at http://www.fapesp.br/rt .

3. Research Infrastructure Grant

In the initial request, or when reports are presented, the PI may request funds for minor infrastructure modifications where these are necessary to develop the project. New construction is not funded by FAPESP. This request should be justified in detail and be associated with relevant funding contributed by the Host Institution.

4. Complementary requests

All items needed to develop the project are expected to be accounted for in the proposal; however, exceptionally, FAPESP may consider additional (“complementary”) requests associated with the proposal. These are requests associated with modifications to the objectives of the research programme(s) after the initial proposal selection. Such items may include requests for assistance for Visiting Researchers, requests for assistance with publications.

Complementary requests must be related to activities within the approved project duration. For awards for Fellowships and Visiting Researchers, the schedule must be compatible with the Research Plan and executed in a manner that will allow fully effective contributions to be made to the research programme(s).

The PI must endorse all complementary requests.

Requests declined by FAPESP as complementary requests may be submitted as independent and non-connected requests.

Complementary requests for assistance for Visiting Researchers, requests for assistance with publications may be waived from external analysis and analysed by the Area or Supervising Panel.

Complementary Requests for MS, DR, DD and PD Fellowships will receive priority in evaluation, if they meet the required conditions. With respect to complementary requests for PD Fellowships, there is differential treatment with respect to duration (see www.fapesp.br/270).

Complementary requests must be made individually using the appropriate forms and accompanied with relevant documentation, as described in the respective manual. Furthermore, they must be accompanied by the CEPID project summary. These requests will be regarded by FAPESP as separate to the CEPID proposal and funds awarded will not be subtracted from the project budget.

5. Note on use of BG Brasil funding

The application of BG Brasil funding will be limited to expenditures allowed by Brazilian National Agency of Petroleum, Natural Gas and Biofuels (ANP) Resolution 33/2005 (see http://www.anp.gov.br/?pg=9217&m=&t1=&t2=&t3=&t4=&ar=&ps=&cachebust=1343744898338 ). It is expected that this includes the hiring of researchers and technical support staff needed for the project, and to supplement salaries of faculty or researchers employed by the institutions participating in the project. The funds contributed by the BG Brasil will be disbursed to the Host Institution, provided the Host Institution is accredited by ANP.

Items that may be financed include the following:

Cost of the research project

a. Permanent materials acquired in Brazil or imported;

b. Consumables acquired in Brazil or imported;

c. Third party services acquired in Brazil or abroad;

d. Fellowships: Fellowships may be requested as a budget item (BCO) within the following programmes and in accordance with FAPESP standards: Post-Doctorate (PD), Doctorate (DR), Honors Doctorate (DD), Masters (MS), Scientific Initiation (IC), and Technical Training (TT). Note that the advisor/supervisor for each fellowship must be the Centre’s PI or one of the Co-PIs.

e. Salary supplementation for faculty or researchers employed by the institutions participating in the project.

A summarized table of items supported by FAPESP and BG Brazil can be found below:

Expense to be funded

FAPESP

BG Brasil

Supplement wages of faculty or researchers

 

X

Research equipment

X

X

Consumables

X

X

Third-party technical services

X

X

Per diem allowances

X

 

Transportation

X

 

Living expenses for visiting researchers

X

 

Civil construction through modification of existing facilities

X

X

Fellowships

X

X


Annex IV: Detailed description of the topics of interest

FAPESP and BG Brasil promoted in 2012 an International Workshop on Science Technology and Natural Gas Applications in Sao Paulo. The workshop enabled FAPESP and BG Brasil to recognize and agree with the attendees on the most significant challenges and opportunities in the field of gas innovation in the next 5-10 years. BG Brasil has subsequently reviewed these based on future business challenges in order to identify its priority research themes for potential development.

These have been structured into three discipline based research programmes - Engineering, Physical Chemistry and Social Sciences & Economics. Under these three focus areas there are in total eight sub-topics covering different aspects of the science, technology and applications for natural gas. The objective of each of these sub-topics and the scope of work envisaged is detailed in this Annex and is provided as additional background information.

In terms of the value of the expected research output, proposals will be ranked with respect to the degree to which they focus specifically on the oil and gas industry applications of strategic interest to BG Group. These applications will be described in more detail at a call clarification workshop to be held by FAPESP and BG Group for interested parties, shortly after the issue of this Call for Research Proposals.

RESEARCH PROGRAMME: ENGINEERING

Theme 1: Compact “Low Carbon” Natural Gas Power Generation

Objective : the development of novel, compact natural gas power generators to compete with, or displace, alternative power sources used in the oil and gas sector, in particular diesel generators, e.g. gas engines and gas turbines. These generators are considered to have potential for cost, efficiency and environmental advantages.

Oil & gas industry applications : these include remote, widely distributed users, such as not normally manned installations such as remote well sites, among others.

Scope : Initially a Feasibility Study on:

a. Market potential analysis;

b. Technology comparison and cost benefit analysis;

c. Review of in-country supplier/manufacturer capabilities;

d. Consider a demonstration project in conjunction with a local developer.

Theme 2: Natural Gas/Hydrogen Fuels for Shipping

Objective: this theme should address three areas, a) the technical questions around production and handling of blended fuels, b) the associated economics and c) the development of codes and standards

Oil & gas industry applications: these include LNG ships, shuttle tankers and offshore support vessels.

Scope:

1. Preliminary review

At the outset the Centre will be required to carry out a preliminary review of the current state of the art in this area as a great deal of work has been done by the industry in recent years, and much is on-going. The Centre should present back to FAPESP and BG Group the findings from this work, the impact on the original work plan and any proposed modifications. This will form the basis for a decision on how to proceed with this theme.

2. Economics

a. It is considered that, in advance of any technical work in this area, a full economic assessment should be done covering:

i. How the efficiency of these types of blended products compare with the alternatives already available in the market;

ii. The production/storage/distribution systems required for these blended fuels.

3. Optimising fuel

a. It is considered that blends of CH4/H2 could provide valuable alternative fuels for marine transport. It was recognised that there are a number of technical issues to be overcome and that before starting any technical developments of components of the systems, a full technical analysis should be done 'well-to-wheel'. Some of the key technical issues to be addressed will include:

i. Purity of the H2 prior to blending;

ii. Determination, measurement and control of the optimum blend(s);

iii. Matching of blend types with engine/vessel types;

iv. A review of the materials of construction of each component of the production/storage processes relative to the blend being produced/stored.

4. Codes and standards

a. As this is a new type of fuel potentially to be made available to the open market, in parallel with technical and economic considerations a new set of codes and standards to cover the full production-to-end-use process needs to be developed.

Other Observations:

a. This is potentially a large and important area for development to improve the conversion of marine transport to natural gas based products, both for the Brazilian market and more widely. Note that the work identified during the workshop and highlighted above only touches on a few of the requirements to establish a business opportunity;

b. A number of key collaborators were identified in Brazil: the Centre should consider entering into a collaboration with a recognised Classification Society in Brazil for elements of this programme where appropriate.

Theme 3: Associated Developments to Optimise Use of Natural Gas in Shipping

Objective: in order to increase and optimise the usage of natural gas based fuels in the marine transport system, two main developments are required: a) development and optimisation of natural gas and hybrid powertrains; and b) development of innovative, lightweight storage systems.

Oil & gas industry applications: these include LNG ships, shuttle tankers and offshore support vessels.

Scope:

1. Natural Gas and hybrid powertrains

a. Initial analysis: it is considered that, in advance of any detailed technical work in this area, there are a few areas where initial analyses should be done:

i. What is the optimum mix for combustion/performance of the vessel? (this is linked to Theme 2 above)

ii. What is the optimum design for the powertrain for the various fuel mixes, including power outputs, type and levels of emissions & durability of units?

b. Modelling: as part of the pre-analysis it is considered that there is a significant amount required, with respect to:

i. Engineering modelling of the systems; and

ii. Techno-economic modelling of the various facets of the system.

c. In parallel, there will be a need to develop standards;

d. A key phase of this work will be the development of prototypes to demonstrate the potential of the various proposed powertrains.

2. Lightweight storage systems

The focus of this work will be on ANG (absorbed natural gas), CNG (compressed natural gas) and LNG (liquefied natural gas) as marine fuels. This work should consider fuel storage and transfer, as well as the on-board storage. It is an equally critical part of the drive to get natural gas and associated products accepted for the marine transport industry. A number of technology development areas were identified;

a. Tank design and materials of construction;

b. For ANG, what are the design criteria for the porous media?

c. Can self-sealing properties/technologies be used in these types of tanks?

d. Operational and safety issues associated with the loading and unloading processes, which will be different for ANG, CNG & LNG;

e. Full HSE analyses for the different types of storage systems;

f. Full economic analyses done for the different fuel types.

Other Observations: for both parts of this theme (powertrain developments & storage systems), it is considered that:

a. The key skills base for these projects are likely to be in other sectors, such as the motor and materials manufacturing industries and so perhaps they should drive this work;

b. There are potentially many global and Brazilian collaborators for this activities - some of these were identified;

c. These projects are likely to be very large and costly, especially those associated with the development of powertrains.L

Theme 4: Techniques to Measure, Evaluate and Reduce Methane Loss from Gas Systems

Objective : to evaluate and develop new techniques for the measurement and minimisation of natural gas releases to air and reduce greenhouse gas emissions associated with such methane loss across the gas supply chain.

Oil and gas industry applications : oil and gas processing, transportation and utilisation systems – focusing on the minimisation of methane emissions associated with unburned hydrocarbon from flaring, venting and fugitive releases.

Scope:

1. Enhanced measurement techniques

a. Review, development and field-testing of emerging techniques to enhance the accuracy of detection and quantification of methane emissions leading to improved control and emission reduction.

b. Evaluation of ways to enhance sampling efficiency and optimise cost of monitoring for facilities and systems.

2. Reduction techniques

a. Characterisation of methane emissions across gas supply chains to end user.

b. Cost benefit appraisal to identify targeted responses to methane loss reduction.

c. Investigation into new techniques to minimise losses associated with pressure relief systems, unburned hydrocarbons in flaring, low level venting and fugitive emission sources.

3. Integrated monitoring and emission reduction response

a. Development of new approaches to integrated emission detection, sampling protocol development and equipment level reduction responses.

RESEARCH PROGRAMME: PHYSICAL CHEMISTRY

Theme 1: Advanced Cleaner Natural Gas Combustion

Objective: to develop the ability to reduce the environmental impact of natural gas combustion to allow it to compete with the performance of hydropower generation within the Brazilian market.

Oil & gas industry applications: these include power generation on offshore production facilities and gas turbine-driven refrigeration compressors for LNG liquefaction.

Scope:

1. Technical developments based on existing combustion technologies

a. Various techniques such as:

i. Use of membranes & impregnated resins at pre- & post-combustion stages;

ii. Pre-combustion methods by mixing other components into the gas e.g. H2. This carries associated issues such as impact on equipment and more cost efficient H2 generation;

iii. Change the pre-combustion air parameters such as temperature & pressure;

iv. Oxygas combustion techniques;

v. Post-combustion methods of flue gas clean up;

vi. Techniques to maximise complete fuel oxidation to reduce emissions of unburned methane and other hydrocarbons.

2. Alternative generating strategies

a. Generating natural gas from renewable sources. For this there would be a need to establish where and how it could be done cost effectively in Brazil with in-country know-how;

b. Can carbon be removed from natural gas as a solid prior to combustion?

Other Observations:

a. Feasibility studies are likely to be the preferred route to initially explore a number of the above options;

b. For some of the techniques within scope item 1, significant global effort and expertise already exists so collaboration will be essential;

c. Many of the above options will result in the generation of CO2 as a waste product - parallel development of a CCS capability will be required.

Theme 2: Fuel Cell Developments

Objective: to establish Brazil as part of a global Centre of Excellence in fuel cell developments.

Oil & gas industry applications: these include remote, widely distributed users, such as not normally manned well sites, offshore-unmanned wellhead platforms, offshore production facilities and subsea production facilities. Both intermittent (back-up/standby) and continuous (base load) uses are envisaged. Scales will vary from <10kW to >10MW, depending on the specific application.

Scope:

1. Fuel Cell market potential

a. Determine the current Brazilian market requirement for fuel cells including type of cells, capabilities and end users and any market segmentation;

b. Assessment of the future market demand and its stimulation;

c. Establish a value case for fuel cells across the different applications;

d. Review of in-country supplier/manufacturer capabilities.

2. Technical developments

a. Expertise in assessment of performance of current cells and areas for improvement;

b. Refilling/recharging/replacing cells in remote locations;

c. Underpinning science to progress developments of current cells e.g. catalysts & bipolar plates;

d. Establish basic science capability to collaborate on the next generation fuel cells.

Other Observations: there is very broad global activity in this area leading to significant potential for collaboration, especially with Japan & UK.

Theme 3: Conversion of Natural Gas to Chemicals e.g. H2, CO & NH3

Objective: the two main objectives of this theme are a) to generate added-value products from methane for the Brazilian (and global) markets, and b) to provide in-situ manufacture of chemicals which carry a significant transport hazard.

Oil & gas industry applications: small-scale (local) and large-scale (centralised) alternatives to steam reforming.

Scope:

1. Market assessment

a. A techno-economic assessment of both the distributed chemicals production and demand in Brazil is required to determine the size and value of this market;

b. A broader review of the existing global technologies and applications using natural gas to make ammonia/methanol/syngas/H2/CO and identify gaps, if any;

c. Review opportunities for substitution of natural gas as a feedstock for processes that currently use crude oil or coal-derived feedstock.

2. H2 and CO production

a. Technology exists to produce H2 and CO commercially but it is considered that there is significant scope to:

i. Improve the cost effectiveness of small scale H2 and CO production technologies and to be able to optimise the individual component outputs, depending on the final mix requirements;

ii. Undertake background research into alternative technologies and technical upgrades to improve H2 purification capabilities;

iii. Adaption for the Brazilian environment the DRI & MIDREX processes to exploit the use of natural gas for iron ore reduction.

3. Production of other chemicals

a. Three other chemical production processes were considered worth exploring for the Brazilian market:

i. Methanol production from natural gas - explore process improvements;

ii. Process improvements in the NH3 based fertilizer market to encourage natural gas use;

iii. Improvements in the methane and ethane conversion processes to produce other chemicals for the Brazilian petrochemical industry.

Other Observations:

a. Given that steam reforming and related processes already exist, items 2) and 3) above may include research to improve to existing processes, such as nano-catalysis, or more novel processes such as bioconversion. Much of this theme could be around developing prototype equipment and process demonstrations

b. Although developments are targeted at the Brazilian market, there is clear global applicability.

RESEARCH PROGRAMME: ENERGY POLICY AND ECONOMICS

Theme 1: Policies for the Development of Gas in Energy Systems

Objective: the overall objective of this work is to develop information sources that will provide credible and authoritative information for: a) the development of gas as a key energy source; and b) to demonstrate how gas can be integrated into emerging energy systems.

Undertaking these tasks first will provide a backdrop for and input to all the other project options discussed above. This work is primarily desk-based and could quickly be initiated through academia/consultancies.

Scope:

1. Gas technology & policy assessment - an evidence base for policy makers

The main drivers for this piece of work are to produce accessible, credible and authoritative reports addressing the key issues and controversies surrounding use of gas as an energy source and as an input to development of the gas industry in Brazil. To achieve this, components required are:

a. Build a network for supporting policy makers on developing and improving technical standards and policies on gas;

b. Develop case studies and provide technical evidence for developing the policies;

c. Undertake comparative institutional analyses of the legal and regulatory frameworks applied to the natural gas sector, and assess variance in outcomes across different natural gas sector regimes and country contexts;

d. Produce benchmark studies about regulation in the natural gas industry.

2. Integration of gas into emerging energy systems

Having established the case for gas above, this part of the proposed work extends the evidence to demonstrate how gas can be integrated with other existing and emerging energy sources to produce an overall energy policy both at state and at national levels. Additional work should:

a. Develop new strategic planning tools for energy system integration management;

b. Develop methodologies/tools for gas infrastructure planning;

c. Demonstrate integration of renewable gas sources into the natural gas infrastructure;

d. Undertake an econometric demand projection for gas;

e. Develop district cooling/heating networks integrated with electrical power grid.

Other Observations: because of the nature of this work, it is considered that it would best be done by a group led by academia with input widely captured from across the academic and commercial spheres.

Theme 2: Development a Supply Chain for Natural Gas for Remote Areas

Objective: the objective of this work is to: a) promote the use of natural gas in central & remote areas and in areas where it is not currently viable; and b) reduce CO2 emissions by replacing other fossil fuels with natural gas. An integral part of this will be to ensure that there is sufficient scientific expertise available to drive this work.

Scope:

1. Fixed/mobile storage with virtual pipelines to remote areas

Components of this work are considered to include:

a. Development of a science base to undertake this work;

b. Development of light materials and new geometries for vessels for storage and transport of CNG;

c. Development of adsorption systems for natural gas;

d. Development of micro-scale LNG plants;

e. Develop replaceable tanks for vehicles and other applications.

Annex V: Compliance with Laws, Ethics and Business Principles

1 No Breach of Applicable Laws: FAPESP, BG and all interested parties (Parties) agree and declare that, with regard to the activities contemplated herein, neither the Parties themselves nor any of their associated companies or shareholders, or their respective administrators, officers, attorneys-in-fact, representatives and employees will:

(i) Offer, promise to do or give, do or give any advantage, payment or gift or transfer any valuable item, directly or indirectly, to any public official of any government or governmental body or any political party, employee or candidate of any political party with the purpose of influencing acts or omissions of the public official, political party or candidate;

(ii) Favor any person with the intention of inducing him/her to violate the duties inherent to a position or the duty to act in good faith and impartially; or

(iii) Practice any other act that may lead to the breach of any applicable laws related to bribery, corruption or similar activities, including, but not limited to:

(a) The laws of the Federative Republic of Brazil;

(b) The laws to which the Parties and its controllers are subject to and the laws of any other country in which the Parties are registered or maintain their business;

(c) The principles described in the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, signed in Paris, on December 17, 1997, and which entered into force on February 15, 1999, and the Comments of the Convention;

(d) The United States Foreign Corrupt Practices Act or the principles of the referred act; and

(e) The 2010 United Kingdom Bribery Act or the principles of the referred act.

2 Business Activities: The Parties agree and undertake to, on their own behalf and on behalf of any affiliate or shareholder and their respective officers, representatives and employees, not to pay or promise to pay any fees or commissions or grant any discounts to any BG employee, administrator, officer, attorney-in-fact, subcontractor or representative or any of its associated companies or shareholders, or give or cause to give to any of them gifts or entertainment of significant cost or value in relation to this Agreement or with the purpose of influencing or inducing any acts or omissions related to the Parties’ business activities in accordance with this Call for Research Proposals.

3 The Parties shall include the obligations provided in items 1, 2 and 8 in all covenants, agreements, service or purchase orders entered into with its contractors related with this Call for Research Proposals.

4 Records: The Parties shall maintain exact and complete records of all activities or occurrences related to the potential offer or delivery of any advantage or valuable item to any public official, political party, employee or candidate of a political party, to the payment of any fees or commissions or grant of any discounts to any public official, or employees, administrators, officers, attorneys-in-fact or representatives of any BG member or from any of its associated companies or shareholders, to the delivery of gifts or entertainment of significant cost or value in relation to this Agreement or to any other transactions or operations which must be recorded to confirm compliance with items 1, 2 and 8.

5 Representations and Warranties: The Parties represent and warrant, on this date, that they have not practiced any acts or omissions, which if committed after this date, would conflict with obligations assumed under items 1, 2 and 8.

6 The Parties represent and warrant that it, its associated companies or shareholders and its respective officers, administrators, representatives, attorneys-in-fact and employees: (i) did not use or will use the services of forwarders, agents or intermediaries; (ii) did not make and did not offer to make, and commit not making any payment or transfer of any movable asset or real estate property or right, directly or indirectly, to any agent or intermediary, in connection to the Call for Research Proposals; and that (iii) do not hold a public office, by means of which, among others, officially represent any government or governmental entity or are related or connected to people who hold the referred public offices.

7 The Parties must immediately notify each other after receiving notice or otherwise becoming aware of any breach of this item seven in relation to this Call for Research Proposals. The Parties must fully cooperate with each other in any investigation that a Party intends to conduct in respect of any violation, effective or potential, of this item seven, whether reported or not.

8 Business Principles: The Parties shall act consistently with the BG Business Principles established below:

(i) CONDUCT

  • We act with integrity, fairness and transparency.
  • We comply with legal, regulatory and license requirements.
  • We do not tolerate corruption in any form, whether direct or indirect.

· Our investment criteria take account of economic returns, environmental impacts, social consequences and human rights.

· High standards of corporate governance are integral to the way we manage our business.

(ii) OUR PEOPLE

  • We treat people with fairness, respect and decency.
  • We help employees develop their potential.
  • We believe that all injuries are preventable.
  • We provide healthy, safe and secure work environments.

(iii) SOCIETY

· We work to ensure that neighboring communities benefit from our presence on an enduring basis.

· We listen to neighboring communities and take account of their interests.

  • We support human rights within our areas of influence.

(iv) ENVIRONMENT

  • We make a positive contribution to the protection of the environment.

· We go beyond compliance with local environmental regulation to meet internationally accepted best practice.

· We reduce to the minimum practicable any adverse effects of our operations on the environment.

8.1 The Parties shall observe the policy and will be able to use the BG instrument to report concerns related to the Business Principles named, respectively, Speak Up Policy and Speak Up. The Speak Up Policy, which require BG employees to report and encourages third parties to report any situation in which there are grounds for suspecting a violation of the Business Principles. The Speak Up provides the channels to report concerns over the telephone or via internet (accessed through the BG website or via www.bg-speakup.com) to communicate any concern on a confidential basis.