Challenges and Opportunities for Reducing GHG Emissions from Canadian Oil Sands Derived Crudes Opportunity Crudes Conference 2010 Eddy Isaacs, CEO Energy & Environment Solutions (EES) 11/2/2010
Energy & Environment Solutions (EES) – Building on Success
Who we are?
What we do?
One of four new corporations launched in January 2010 under the Alberta Innovates label
Position Alberta for the future in energy and environment Identify, evaluate, select technologies and partners
Technology arm of the Alberta Government in energy and environment
Invest in research & technology with industry & international collaborators
To
From
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EES Strategic Focus STRATEGIC AREAS
PROGRAMS • Bitumen Upgrading • Clean Carbon/Coal • Improved Recovery • CO2 & Emissions • Water Use • Enhanced Ecology • Sustainability Index
• Renewables • Alternative fuels 11/2/2010
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Achieving Clean Energy Goals – Example Oil Sands Technology Framework • New wave - efficient oil sands production technologies • Next generation upgrading technologies (integration with gasification and CCS) • Carbon capture & storage • Conventional oil (includes CO2 EOR) • Gasification of pet coke, asphaltenes, coal, biomass • Combustion of liquid/solid fuels • Unconventional natural gas • Nuclear outlook • Comparative Life Cycle Analysis
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¾Research & technology
adaptation costs ¾Large scale deployment ¾Time horizon ¾Capacity – human,
infrastructure
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Impact of Low Carbon Fuel Standards (LCFS)? • A general movement towards lower GHG intensity for all fuels – Dilution with, for example, biofuels to achieve reduction
• How do oil sands derived products fare in an LCFS world? • LCA used to measure the carbon content of fuels – Generally incomplete and unreliable information – Simplified, generic model representations - lack of differentiation on crude production and refinery configuration – Error bar in LCA estimates often larger than the target reduction
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Well-to-Wheel Direct Emissions LCA – Separating Production, Refining and Vehicle Use Production
Refining
Vehicle Use (carbon-in-fuel)
upgrading or diluent addition
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2009 Canadian Crude Oil Exports to the U.S.
*Volumes represent NEB estimates derived from monthly export
reports **The Western Canadian Select (WCS) sales stream is classified as
Conventional Heavy, and may contain some volumes of synthetic crude 11/2/2010 7 oil and blended bitumen
Comparison of the Oil Sands Pathways Total GHG Emissions, gCO2e/MJ of gasoline
120
2018
100 80 1
2
3
4
5
6
Refining
60
Production Carbon in fuel
*53% (5) + 40% (4) + 5% (2) + 2% (1) Data from Jacobs Study (2009) 11/2/2010
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Comparison of Total GHG Emissions - US Domestic and Imported Crudes Total GHG Emissions, gCO2e/MJ of gasoline
120
100
Refining Production
80
Carbon in fuel
60
Data from Jacobs Study (2009)
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Oil Sands – Room to Improve LCA Emissions • Thermal recovery and mining efficiency improvements* • Energy intensity of water treatment for steam* • Upgrading/refining efficiency improvement* • Next wave of efficient oil sands production technologies • New generation of upgrading technologies with gasification and CCS (HUDP) * – Partial upgrading
• Integration of renewables and nuclear
*Working with Jacobs Consultancy 11/2/2010
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SAGD GHG Mitigation Roadmap Example
Areas of blocks correspond to the total cost or savings for CO2 mitigation
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EES and Jacobs Study: • Assess Impact of ÆZLD on energy use
Energy (GHG)
Impact of Increased Water Recycle on GHG Emissions
High TDS
o Capital & operating costs
Low TDS
90
• New technology opportunity
92
94
96
98
100
Produced Water Recycle Rate (%)
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Significant Opportunities for Upgrading/Refining Efficiency Improvement and Emissions Reduction Power Recovery
Flare Gas Hydrogen Recovery System Operating Factor CO2 Capture (SMR)
Process Unit LPG Recovery Taxed Energy
Energy Efficiency
Cogeneration
Courtesy: Jacobs Consultancy 11/2/2010
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Reduced Energy Recovery Processes ¾ Solvent Processes ¾ VAPEX ¾ Thermal Solvent Processes ¾ Steam Solvent Processes ¾ SAP ¾ ES-SAGD ¾ LASER Challenges: Depth, Reservoir Quality, Solvent Losses, Cost & Availability
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Future Electrical Processes ¾ Electrical Processes ¾ Transfer of Electrons Between Wells In Situ ¾ EM Field Development, Energy Transfer and Viscosity Reduction ¾ Oil Displacement & Gravity Drainage to Production Well ¾ ET-DSP ¾ ETI/ECP (GE Tech) ¾ Siemens ¾ Harris
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Challenges: Electricity Source & Cost, Land Disturbance, Process Efficiency
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Total GHG, g CO2e/MJ gasoline
Impact of Technology Advances on Direct Emissions (Estimate) 120
120
115
LCA Studies – SAGD Bitumen Best-in-class SAGD
110
110
105
Steam-solvent Next wave technology
100
100 4
3
2
1
0
Eq. steam-oil ratio
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Government Programs and Initiatives Program/Initiative
Description
Commercial- Scale Carbon Capture and Storage
$2 billion fund 4 projects approved – 5 MT/y of CO2 stored by 2015
Climate Change & Emissions Management Corporation
~ $70 M/y compliance fund targeted to energy efficiency, ‘greening’ fossil fuels, renewables and carbon sinks. 16 projects approved in Round #1
Alberta ecoTrust
One time $157 M targeted to GHG reductions and emissions of concern. Several projects approved.
Innovative Energy Technology Program
$200 M based on royalty credit targeted to oil and gas pilot projects; over 30 pilots approved
Bitumen Royalty In-Kind
Bitumen made available for high valued upgrading/refining; NWU project term-sheet approved
EES Industry Programs
~20 M/y technology development in 3 strategic areas – Energy Technologies, Environmental Technologies, Renewable and 11/2/2010 17 Emerging Resources 17
Research and Technology Development Activities (Partnership with industry & other government programs)
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Production Mined Oil Sands: Reduce water for extraction
•
– Dense phase processes – Solvent-Water processes
•
•
– Consolidated tailings process: Currently practiced – Improved thickening - better flocculants, – Dry tailings – filter belts, – Evaporative/Chemical Drying – Paste technology – CO2 for Consolidated Tailings processes
In situ extraction: Reduce Water, Natural Gas and Diluent Requirements – – – – –
Enhancements to SAGD Thermal-solvent processes Heated solvent Combustion Electrical heating
Upgrade Bitumen to higher value products – Advanced Upgrading and Gasification Technologies:
•
Unconventional natural gas
•
Coal
– Develop economic recovery technologies for Coal Bed Methane, Tight Gas and Shale Gas
– Clean Power Generation: IGCC with CO2 capture – Underground Coal Gasification
Environment Water recovery from tailings ponds: Reduce use of tailing ponds
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Carbon Capture and Storage (CCS) – Pre- post combustion capture technologies – Integrated Coal Gasification Combined Cycle (IGCC) with CO2 capture – CO2 Enhanced Oil Recovery – End-to-end Demonstration Plants ($2 B government investment) 18 18
Hydrocarbon Upgrading Demonstration Program (HUDP) • HUDP focus on ‘breakthrough’ technologies to reduce the cost and environmental footprint of upgrading bitumen to high value products (SCO and beyond) • 2006: Screening study with industry group - considered 100 process/technologies. Selected technologies • 2007: Requested expressions of interest Æ proposals from selected companies • 2007 to date: Stage-gated industry-government engineering and piloting studies of selected technologies. • Broadened scope to partial upgrading technologies. 11/2/2010
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HUDP Projects Update Piloting at NCUT ETX Cross-flow Coking: Lower coke yield Higher and better quality products
UOP –Statoil Slurry Phase Hydrocracking: Canmet process Advanced secondary upgrading process. 90% + conversion
Nova Chemicals: Converts bitumen-derived heavy gas oils into paraffinic petrochemical feedstocks.
Ultra-Lift Solvent Deasphalting: Novel heavy solvent de-asphalting concept. Planned pilot at NCUT
Piloting at US Facilities Pratt & Whitney Rocketdyne: Advanced compact dry feed gasifier Lower capital & operating costs
Great Point Energy: Single stage catalytic gasification of coke to SNG
MEG Energy: Partial upgrading process. Includes advanced solvent deasphalting. Piloted at US labs followed by field demonstration in Alberta 11/2/2010
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EES -PWR Evaluation and EES-PWR Demonstration Project
Design 400 tpd demonstration plant at Alberta site
(Supported by ExxonMobil) Risk Reduction Tests (2004-2008)
Pilot Plant at GTI (2009 startup)
Demonstration Plant
Proof of Concept Test (1975-1980)
System Validation in a Commercial Environment
Rapid-spray Rapid-spray Quench Quench
Chamber Chamber Injector Injector
Liner Coolant Liner Coolant
Feed System Test Facility at EERC (2007 startup)
04CP-1118-027 04CP-1118-027
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In 2009 EES-PWR project started testing Alberta coals and coke in 18 tpd pilot and in high pressure feed system
Courtesy PWR
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Partial Upgrading Technologies • Ivanhoe: – – – –
Circulating fluid bed thermal cracker Ca based absorbent Sour bottomless SCO C3 and C4’s for fuel and steam*
• UOP CCU Technology – e-cat fluid bed – Sour SCO blended with bitumen – C3 and C4’s for fuel and steam*
• Mobis – Slurry phase hydrocracker (partial or full conversion) – Sour bottomless SCO – SMR for hydrogen
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Summary • Alberta will play an increasing role in meeting world energy demand growth: – size of resource, secure supply, strategic location in NA, future access to Asian markets
• A wide range of GHG emissions for crude oils in North American refineries – Oil sands derived products well positioned with changing fuel demands • The incremental GHG burden is manageable
• Existing government strategies to improve competitiveness and environmental footprint of oil sands operations
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Summary (continued) • Employing today’s technology: Energy efficiency focus will narrow the emission gap for bitumen • New technology: for bitumen production and upgrading will further improve the GHG emissions • EES strategic programs on energy, environment and renewables: – – – – – –
Pilots to advance next wave of lower GHG bitumen recovery Investigating partial upgrading for bitumen Bitumen separations and processability studies Identifying the benefits of cogeneration Studying gasification with CCS Working with Industry to accelerate GHG reductions options
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OPPORTUNITY CRUDES CONFERENCE 2010 OCTOBER 25-26, 2010 | WESTIN OAKS HOTEL | HOUSTON, TX (USA)
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