University of Alberta-Mexico Energy Partnership (with

CONACYT-SENER)

MEXICO ENERGY REFORM

• December, 2013 Mexican Government opened up the country’s

hydrocarbon sector to private investment through constitutional

reforms

• Reforms largely driven by the need to address country’s

declining oil production. Oil revenues account for 18% of gov’t

revenues

• Mexican Energy Reform goals:

• Increase production through new exploration and

development

• Increase and attract private investment

• Strengthen oil and gas sector through promotion of

technological innovation

• Mexican investment in the sector will create 135,000 direct jobs

requiring specialization in energy.

UALBERTA RESEARCH STRENGTH IN ENERGY AND ENVIRONMENT• Basic and applied research generate close to $500 million in

sponsored research funding annually (strengths: Energy and

Environment, Health and Life Sciences, Food and Agriculture)

• 200 senior faculty members and 1000 researchers (including

graduate students) focused on energy research

• Ranked #6 in the world for Energy Research Publications

• Major energy partnerships : Helmholtz-Alberta Initiative & China’s

Tshingua University

• UAlberta awarded $75 million from Canada First Research

Excellence Fund (CFREF) for new research initiative: Future

Energy Systems

UALBERTA TRAINING AND CAPACITY DEVELOPMENT IN ENERGY AND ENVIRONMENT

• New division International Capacity Development Partnership and

Projects (ICDPP) at University of Alberta International with strong

focus on Energy and Environment.

• UAlberta managing $5 million Global Affairs Canada project that will

provide scholarships to public sector professionals related to the

extractive sector in the four Pacific Alliance countries.

CHRONOLOGY OF UALBERTA-MEXICO PARTNERSHIP • November, 2015: Hosted Mexican delegation of 25 on UAlberta campus.

Ensured key UAlberta energy experts/infrastructure was on display.

• December, 2015: a Letter of Intent that was signed by the Ministry of Energy

(SENER) and the University of Alberta in the presence of Secretary Joaquin.

• December, 2016- January 30, 2017: CONACYT-SENER Hydrocarbon Fund

call for proposals is launched.

• March 1, 2017: Results announced

• March 8-10, 2017: President Turpin visits Mexico City and hosted by Secretary Joaquin and President of UNAM (Dr. Enrique Graue Weichers)

• April 2017 to present: budget adjustment and formalization process with CONACYT

KNOWLEDGE NETWORKS

Three networks were awarded funding by CONACYT-SENER for a

total of Mx $ 212 million pesos over five years:

1. Reservoir and Oilfield Geomechanics for Mature Fields and

Unconventional Reservoirs: Research and graduate training

2. Industrial Transformation and Heavy Oil Refining: Research and

graduate training

3. Capacity Building and Talent Formation for the Oil and Gas

Sector: Capacity building, curriculum development, short courses

MAIN ELEMENTS OF UALBERTA-SENER PARTNERSHIP

• Proposals to the CONACYT-SENER Hydrocarbon Fund are officially known

as “Knowledge Networks”. Networks typically consist of more than one

project.

• Knowledge networks are for five years.

• UAlberta experts must partner with a counterpart from Mexico. Mexican

partner is officially the “lead institution”.

• Knowledge networks have close alignment to industry needs. Industry participation in the “knowledge network” strongly encouraged.

• PEMEX supporting the three UAlberta knowledge networks.

• The Mexican Institute of Petroleum (IMP) is the lead

partner for the research networks

• National Autonomous University of Mexico (UNAM)

is the lead partner for capacity development network

• Capacity development network is also carried out in

collaboration with the Alberta Energy Regulator

(AER)

• Active support from Government of Alberta

MAIN ELEMENTS OF UALBERTA-SENER PARTNERSHIP

RATIONALE OF UALBERTA-

SENER PARTNERSHIP

• Changing Alberta economy to more diversified and knowledge

based profile

• Building on UAlberta brand in energy and environment,

expanding into low carbon renewables and smart grids

• Mexico is a country of strategic interest to our Federal and

Provincial governments

• Canadian Energy Industry has growing interests in the Mexican

Market (Syncrude, TransCanada, ATCO)

• Partnership had possibility of significant funding (research and

education)

INTERNATIONAL STUDENT GROWTH:

UALBERTA (5/2017)

Students from Mexico

2016

Applications

2017

Applications

% Change in

Applications

2016

Admissions

2017

Admissions

% Change in

Admissions

Undergraduate 19 32 +68% 0 2 +200%

Graduate 20 66 +230% 1 16 +1500%

VISION

• Position Alberta as Mexico’s key partner for solving technological,

efficiency and environmental challenges of its hydrocarbon sector

• Expand Alberta energy brand in Mexico beyond hydrocarbon sector

to profile Alberta as a knowledge leader in sustainable energy

• Systematically partner with other Alberta stakeholders, especially

AER, ATCO and other post-secondary institutions

• North American Cooperation on Energy and Climate Change: Work

with US, Canadian and Mexican universities to align with trilateral

efforts at government level

• Broaden the horizon beyond energy and beyond Mexico City

CONACYT-SENER-ENERGY SECTORIALFUNDS

ENERGY COLLABORATIONS BETWEENMEXICO AND CANADA

JULY 17TH, 2017

MR. NÉSTOR DÍAZ, M. SC.

14

15

Exploration Extraction

Industrial Transformati

on

Petro chemistry

Energy Efficiency

Renewable Energy

Clean technologies

Energy portfolio

diversification

HYDROCARBONS FUND ENERGY SUSTAINABILITY FUND

ENERGY SECTORIAL FUNDS

Since 2008, Mexican Government supports Energy Sector´s skills and R&D

requirements thru two Sectorial Funds.

By law, both Funds receive resources every year as a percentage of the Oil Income

Budget approved by Congress.

Each fund supports relevant issues for their respective areas of interest:

16

Finance scientific research. Technological Development. Innovation. National or International Registration of intellectual property. Talent Development. Create and/or strengthen research groups, academic bodies or investigationprofessionals. Scientific, technological and innovation dissemination, and also theinfrastructure required for the energy sector.

ENERGY SECTORIAL FUNDS’ TARGETS

RECIPIENTS:• HIGHER EDUCATION INSTITUTIONS.• RESEARCH CENTRES.• PUBLIC AND PRIVATE COMPANIES.• INDIVIDUALS.

RESOURCE ALLOCATION:• CALLS.

17

2013• Wind• Solar• Geothermic

2015 • Ocean• Bio

2016• Smart Grids.

HIGHER EDUCATION

INSTITUTIONS

The CEMIEs will seek to achieve the integration and synergy of the following

elements:

FSE

CEMIE

INVESTIGATION CENTERS

COMPANIES

MEXICAN INNOVATION CENTERS FOR CLEAN ENERGY (CEMIES)

Current total Investment of > 193 million USD

18

CONACYT currently has collaborationagreement with 22 AmericanUniversities and 15 CanadianUniversities (including CALDO) .

CHALENGES FROM THE

ENERGY REFORM

More technicians than professionals

135,000 experts by 2018

80% technical staff

20% upper level and graduate

70,000 graduate on average, each year.

StrategySENER, PEMEX, CFE, SEP, CONACYT and SER have designed the Strategic Program forHuman Resources Training on Energy wichhas the main objective to allow Mexico to take and enhance the talent developmentto support the development of a energysector more attractive, dynamic and competitive.

22,000 scholarships will be awarded by2018 through Sustainability and Hydrocarbons Funds.

TALENT DEVELOPMENT

19

No. Main Countries Scholarships

1 UK 320

2 USA 139

3 Australia 49

4 Spain 45

5 Germany 42

6 Netherlands 41

7 Canda 32

8 France 28

THE ENERGY STRATEGIC PROGRAM FOR HUMAN RESOURCES TRAINING HAS THE

OBJECTIVE OF GRANTING SCHOLARSHIPS IN THE ENERGY SECTOR´S AREAS OF INTEREST.

TOTAL INVESTMENT OF 93.53 MILLION USD

0 100 200 300 400 500 600 700 800

National Diplomat

Foreign Speciality

National Speciality

Foreign Master

National Master

Foreign Doctorate

National Doctorate

CONACYT-SENER Scholarships

Hydrocarbons Sector Energy Sustainability Fund

CONACYT-SENER-ENERGY SECTORIALFUNDS

EXAMPLES OF CURRENTINTERNATIONAL COLLABORATION

20

COOPERATION WITH CANADA

21

Cooperation with the University of Calgary and the University of Alberta

The largest Scientific-Technologic collaboration that Mexico has engaged. Focused on having the best engineers and scientist in the hydrocarbons sector. 7 main knowledge grids:

Talent Observatory and Supply Chain Development Solutions for Mature Fields and Non Conventional Fields Solutions for heavy and extra-heavy oils. Cero incidents in the Pipeline Network. Geomechanics in Oilfields for Mature Fields and Non Conventional Fields. Capacity building and Talent building Industrial transformation and Heavy Oil Refining.

COOPERATION WITH USA

22

UNIVERSITY OF CALIFORNIAUniversities of Mexico will Collaborate with Institutions from the UC System in Energy Efficiency Projects within five themes: Public Policies Demonstrative projects Retrofits Urban Services Data Bases

North American Renewable Integration Study (NARIS) The Energy Sustainability Fund is currently working in a study for the incorporation of

Renewable Energies into the Mexican electric System for a future interconnection between Canada, USA and Mexico. NARIS is expected to begin operations this year and it is being worked by the DoE and the NRCan in the American and Canadian counterparts, respectively.

COOPERATION WITH EUROPE

The Energy Sustainability Fund is nowadays deploying 4 initiatives with European Institutions.

• European Union –GeMex (Super Hot Geothermal Systems)Co-leadered by Mexico and Germany. The Project is focused on Research and Modeling of Non Conventional Environments for Geothermal Resources.

• Barcelona Supercomputing Center - Supercomputing LabIt will develop a National Supercomputing Center for energetic topics.Currently, the specific topics are being developed.

• Newton Fund – INNOVATE UKIncrease national competency (UK and Mexico) through technology transfer, R&D+i, new Public Policy identification and research mobility.

• Newton Fund - INSTITUTIONAL LINKSIt will create bilateral groups between Mexico & UK for the development of projects of research and development within 4 main topics:

Electric Energy Storage, Energy Efficiency and Epidemiology, Clean Energies Materials, Clean Energy Generation Technologies Off Shore. 23

24

Thank you

CONTACT INFORMATION

Nestor Lorenzo Díaz Ramírez, MSc. E-mail: ndiaz@conacyt.mx

Phone: (+52) 55 53 22 77 00 ext. 5900

Global Research Initiative in Energy - Mexico

25

Dr. Dru MarshallProvost and Vice-President (Academic)

Mexico Collaboration

Mexican institutions/ University of Calgary collaborations in Energy from SENER/CONACYT

Hydrocarbon Sector Fund

26February 17, 2017

$46.5MCAD

$646.9MPesos

Industry Partnerships

Eco System: University of Calgary

27

MEXICO

Key Factors: Mexico

Energy reform

Innovative granting program that selected international institutions for partnerships

Supportive Ambassador and Consul

28

Key Factor: Relationship Building

29

Western

Canada

+

Global Research Initiative in Energy

International Strategy

Energy Innovations for Today and Tomorrow

Energy Innovations for Today and Tomorrow

RESEARCH CAPACITY

3

2

Scholars by Faculty

Postdoctoral ScholarsPer calendar year

Energy Innovations for Today and Tomorrow

RESEARCH CAPACITY

Energy Innovations for Today and Tomorrow

KNOWLEDGE TRANSLATION

Industry Partnerships Patents & Disclosures

Energy Innovations for Today and Tomorrow

RESEARCH IMPACT & COLLABORATION

Publications & Citations

Collaborations on PublicationsTop 100 scholars by h-index

Publications per YearTop 100 scholars by h-index

RESULT: Energy Research Collaboration

Submitted and received funding for 21 Projects under 4 knowledge networks

36

100% success rate

$46.5MCAD

$646.9MPesos

Zero Incidents in Mexico’s Pipeline

Network

Infrastructure for the Development and

Implementation of a Talent Observatory

and Value Chain of the Hydrocarbons

Subsector

Solutions for Heavy and Extra-Heavy Oil

Solutions for Mature Oil Fields

and Unconventional Oil Fields

Partners in Energy Research Collaboration