the age of deployment: commercial ccs for eor · 12/4/2014 · hydrogen energy california . igcc...
TRANSCRIPT
Dr. S. Julio Friedmann
Deputy Assistant Secretary Office of Clean Coal and Carbon Management
The Age of Deployment: Commercial CCS for EOR
CO2 conference (20th anniversary) Dec. 11th, 2014, Midland, TX
This is a time of fossil energy abundance
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Once in a generation opportunity to build
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US Energy Picture: Abundant Coal, Gas, and Oil
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Coal Use Growing Overall and Important in Many Economies
EIA Energy Outlook 2013
Continued recent growth •China •Europe •India, Japan
Increased trade and exports
Increased CO2 emissions
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Nuclear 8% Power generation efficiency 3% Renewables 21% End-use fuel switching 12% CCS 14% End-use fuel & elec. efficiency 42%
CCS
“All of the above” required
Because of abundant fossil energy, clean coal technology remains a critical option
CCS/CCUS is the key technology for this era of fossil energy abundance
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Large Scale Integrated Projects World Wide
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Num
ber o
f Pro
ject
s Volum
e CO
2 (mtpa)
Data from Global CCS Institute
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Boundary Dam, : 1.1M tons/y CO2 Saskpower, Saskatchewan
Operational last week
DOE’s top CCS priorities
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Success of US eight commercial demonstration projects • Bring into operation 2013-2019 • A deep and rich set of public learning
Reimagining the coal and CCS RD&D portfolio
International Partnerships • China • Japan • Other key partnerships
A $6B climate mitigation program at DOEx
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DOE CCUS Demonstration Projects
CCPI
FutureGen
ICCS (Area I)
Hydrogen Energy California IGCC with EOR
$408 Million - DOE $4.0 Billion - Total
Summit Texas Clean Energy IGCC with EOR
$450 Million - DOE $1.7 Billion - Total
NRG Energy Post Combustion with CO2
Capture with EOR $167 Million – DOE $339 Million - Total
Air Products CO2 Capture from Steam
Methane Reformers with EOR $284 Million - DOE $431 Million - Total
Leucadia CO2 Capture from Methanol
with EOR $261 Million - DOE $436 Million - Total
Archer Daniels Midland CO2 Capture from Ethanol w/ saline storage
$141 Million - DOE $208 Million - Total
FutureGen 2.0 Oxy-combustion with CO2 capture
and saline storage $1.0 Billion - DOE
$1.3 Billion - Total
Southern Company Services IGCC-Transport Gasifier w/CO2 pipeline
$270 Million - DOE $2.67 Billion - Total
Projects are sources of innovation: Technology, business, and policy
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Kemper County, MS Southern Co., 2010
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Kemper County, MS Southern Co., 2013
(Anticipated start late 2014 or early 2015)
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Port Arthur, TX Air Products, 2013
VSA Vessels VSA Vessels
Co-Gen Unit
Blowers
CO2 Compressor &
TEG Unit CO2 Surge
Tanks
Existing SMR
One million tons injected as of April, 2014
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W.A. Parrish, TX NRG/PetraNova project
Broke Ground Last Week!!
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Decatur, IL ADM 2013
300,000 tons/y today; Over 900,000 tons to date
1 M tons/y shortly
CO2 Pipe to Injection Well
Final class VI permit
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Skyonic “Skymine” project, San Antonio, TX Operational !!
75,000 tons/y CO2 captured - >200,000 tons avoided
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Clean Coal deployment: most urgent and important
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Not just about cost • Costs are higher than uncontrolled coal plants • Costs are lower than many clean energy alternatives
Not just about technology • Many technologies are well demonstrated • Improvement potential is very large
Could finance many ways • Rate recovery; feed-in tariffs; direct grants • Clean energy portfolios; tax-free debt financing; others
Financing is the priority action
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Cost, policy, and parity
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EOR: Critical to CCUS deployment
• Many 10’s of billions bbls US • 100’s of billions bbls worldwide • Provide revenues: break even for
capital retrofit costs in 7-8 years!
>25B tons CO2 storage potential with EOR = ½ the US coal fleet for ~20 years
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New study shows huge potential for ROZ
Partition 1
Partition 2
Partition 3
Partition 5
Central Basin Platform
Seminole W. Seminole
Adair TLOC
Cedar Lake
GMK & GMK So.
Robertson
Hanford ODC Russell So.
Havemeyer
N
Seminole E
S
Carm-Ann
Jenkins
Black Watch
Homann
Lower San Andres Shelf Margin
Partition 4
• 121 wells in 4 counties
• 109 Billion OOIP (!)
• 20-30% est. recovery
• 60-100B t CO2 storage potential
NEW WORK! “Establishing the CO2 Storage Potential and Oil Recovery Potential of the Permian Basin's Residual Oil Zone Fairways”
-- Booz-Allen Hamilton and ARI
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Advanced CO2 capture technologies Many pathways to success
Novel Solvents New concepts
Solid sorbents Advanced membranes
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Must go farther and faster
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International partnerships required Many platforms (APEC; G7; Boao; UNFCCC; WEC) CSLF: Multinational platform
– 22 countries + E.C. – 11 years in practice – Productive technical and policy
working groups Partnerships in Commerce
– Joint ventures – International investment – “Showcase” projects
Accelerated deployment – Data sharing – International Science Projects
11th CSLF Ministerial Nov. 2013
Minister’s visit to Kemper project Nov. 2013
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Changing International Landscape US-China Accord
– Includes large CCS project – Includes enhanced water
recovery projects
New EU accord – Policy Parity for CCUS and
nuclear (UNECE) – Innovation funds
Surprise stars – UK: White Rose + – KSA and UAE: EOR + coal – Mexico: growing interest
China is the main event: for technology testing and project development
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• Coal use immense – 67.5% of primary energy – near 4B tons/y today – ~6B tons CO2 from coal use – Continued growth
• Substantial govt. interest – Pollution helps drive outcomes – Chiefly interested in CO2 utilization – Active under CCWG – New investment in CCS & EOR
• Going for the gold – On technology, finance, construction
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Counterfacing projects under CCWG/S&ED
Projects involve UKY, WVU, UWYO Other recent developments:
• New projects: Sinopec, CNPC, & Yanchang • Pending CO2 pipeline deals
• Central govt. invitations to US independents
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Opportunities for partnership are large and varied
Companies • Private and state-owned • Technology & investment
Provinces • State joint efforts • Projects and companies
Investors • Shanghai-Pudong • Private/equity • Banks and companies
Universities and Institutes • Enormous role in policy • Openers and enablers
Clean Energy Workshop 2014 Shanxi-West Virginia
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Key unit of innovation – global engines of discovery
White Rose Peterhead (UK)
Uthmaniyah (KSA)
Lula (BRA)
Quest (CAN)
ESI (UAE) Gorgon (AUS)
GreenGen (PRC) Shenli
Yanchang
The next decade of projects = policy infrastructure
Technology leads and informs policy
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Must build and deploy large projects • Learning opportunity in CCS and clean fossil • Information sharing: partnership as product • Financing is the key challenge; many paths to success
Must develop 2nd and 3rd generation technology
Must partner with many • Friends in the US • Friends around the world
Once in a generation opportunity to build