Wyoming’s Energy Future: Creating Options

Mark A. Northam, Director

UW School of Energy Resources

September 25, 2008

Outline• Wyoming’s Energy Resources• Energy Options• School of Energy Resources - Program

Strategy• Three Focus Areas• Research Centers and Directions• Energy Sector Research• Summary

Wyoming’s Energy Resources Statistics•Wyoming is among the leading energy producing states in the US

1st in Coal (by production; 3rd in reserves)

1st in Uranium (by production and reserves)

2nd in Natural Gas (by production and reserves)

Top 3 in CBM (by production)

7th in Petroleum (by production; 3rd in reserves onshore)

15th in Wind Energy

•Wyoming derives a larger portion of its state revenue from energy than any other state

Wyoming’s Energy Resources Boom and Bust•Most of the state’s energy resources are sold into commodity markets

Very little value-added industry in the energy sector

Revenue can fluctuate widely due to commodity pricing

Boom periods create prosperity, but

Bust cycles create havoc for state and communities

“Dig-and-ship” does not provide for economic stability over time

Wyoming’s Energy Resources Energy Security

•Large portion of US transportation fuels foreign-derived

•30% of US electricity generated from Wyoming coal

•Electricity demand growth forecast to exceed supply growth

•Climate change legislation coming; uncertainty delaying action

•Demand for “Clean Fuels”; resource reserves getting “dirtier”

•One important solution: develop technologies to utilize coal cleanly

Carbon capture

Carbon sequestration

Coal transformation technologies including gasification and liquefaction

Sequestration

EOR

Synthesis Gas

Gasification

Crushed

Gasification

Crushed

Coal

Multiple PurposesMultiple Purposes

CO 2

CO2 Capture

CO2 Capture

CO2

Flue Gas Pulverized

Coal

Oil

Unconventional

Oil

Unconventional

Oil & GasOil & Gas

CO2

Transportation

& Chemical Feed Stock

Transportation

& Chemical Feed Stock

Heating , Chemicals

Transportation

Heating , Chemicals

Transportation

Sequestration

EOR

CO2

RenewableRenewable

Coal

Gas & Oil

Renewable

Transmission

Carbon Management

Chemicals & Fuels

School of Energy Resources

Strategy

•Initial focus of SER faculty hires, research center creation, and knowledge transfer has been in four areas to add value by:

Maximizing the value and flexibility of coal

Maximizing the recovery of discovered resources

Developing appropriate alternative energy resources

Managing carbon emissions and storage

Three Focus Ares of SER

1. Academics is the first priority (workforce development).

• Provide a unique interdisciplinary approach to education in energy-related disciplines, especially those integral to Wyoming’s economy.

2. Research is needed to shape the energy future (technical innovation).

• Advance state-of-the art energy-related science, technology, and economic research, focused on Wyoming’s resource base.

3. Outreach is essential (knowledge transfer) .

• Disseminate scientific, engineering, and economic knowledge to Wyoming’s public and private sector energy stakeholders.

SER Research Centers1. Centers fully operational:• Enhanced Oil Recovery Institute

• Wind Energy Research Center

• Coal Bed Natural Gas Center

• Arid Lands Restoration & Ecology Center

• Renewable Energy Resources Center

• Carbon Management Center

2. Centers under development this year:• Clean Coal Technologies Center

• Porous Media Flow Center

3. Centers to be developed following SER hires:• Reservoir Characterization and Simulation Center

Centers will evolve over time. All are interdisciplinary.

SER Research DirectionsCoal – maintain PRB coal as clean energy resource

• High Plains Gasification Advanced Technology Center (HPGATC)

Wyoming/GE 50:50 Partnership

~$100 M Facility as currently envisioned

Focus on dry-feed gasification of PRB Coal

Future coal-to-liquids, syngas clean-up and decarbonization research

• Clean Coal Technology Fund

>$6 M in matching funds provided by state legislature

Entire range of clean coal technologies on the table

• Underground Coal Gasification

Enormous reserves expansion if UCG can be made viable

SER Research Directions

Coal-Bed Natural Gas• Reservoir imaging, characterization and simulation for

improved recovery• Flow modeling• Water management and monetization

• Assessment of CO2 and microbes for stimulation

SER Research DirectionsNatural Gas• Focus on optimum recovery from tight reservoirs and unmineable

coal beds

• Optimum field design to decrease surface footprint

• Site reclamation

Petroleum• Carbon Dioxide Enhanced Oil Recovery

• Beyond CO2

• Verify EOR for carbon sequestration

SER Research DirectionsWind• Turbine design for higher efficiency and lower cost

• Resource and site assessment

• Energy storage

• Power transmission

Solar and Geothermal• Where do they fit in Wyoming’s mix?

• New technologies for energy conversion

Uranium• Streamline the permitting process

• Improve recovery at reduced cost

• Protect and reclaim groundwater

SER Research DirectionsCarbon Capture• Novel methods to reduce cost

• Economics of green field and bolt-on applications

Carbon Storage – Mixed Gas Streams• Enhanced Oil Recovery – monitoring and verification

• Saline aquifer demonstration Reservoir and trap characterization and simulation Short-term/long-term fluid flow and diffusion models Reactive transport experimentation and modeling Measurement, modeling, and verification

Summary• Wyoming is a leading US producer of energy resources

• Revenue from the resources support the state.

• SER will leverage UW’s strengths to facilitate teaching and research to help shape the state’s energy future.

• UW’s energy research directions will lead the state in:

Climbing the value chain

Keeping coal in the clean energy mix

Maximizing recovery of energy resources

Exploiting alternative energy solutions

Building for the future

The School of Energy Resources at the University of Wyoming

Building a sustainable energy future for Wyoming, the region, and the nation.