Pioneering the Forefront of Energy Innovation, Discovery, and Collaboration

Transcription

1 Pioneering the Forefront of Energy Innovation, Discovery, and Collaboration

2 CO 2 Update: The Carbon Market Wyoming EOR CO2 Conference Casper, Wyoming Thursday, July 16, 2015 Kipp Coddington, Director The Carbon Management UW

3 Overview Developments That Will Impact CO 2 -EOR Challenges, Opportunities & Risk Mitigation for Companies Involved in the CO 2 -EOR Value Chain The Carbon Management UW Generating Early Insight Q&A

4 INTERNATIONAL: Climate Treaty Forthcoming U.S. Status Kyoto Protocol (1997) OUT (1992) Tiny Chance of Carbon Market Paris Agreement (Dec. 2015) IN * * Subject to litigation likely to be brought by one or more U.S. Senators.

5 INTERNATIONAL: World s First ISO Standard for CO 2 Storage Associated with EOR Under Development Next Draft: Mid August 2015 Next Meeting: Sept. 7-11, 2015 (Oslo, Norway) Deadline: April 2018

6 U.S./FEDERAL: Existing Legal Structure for Regulated CO 2 Injected for EOR For the a-co 2 Source: Clean Air Act Prevention of Significant Deterioration (PSD)/Title V Permitting BE ADVISED: CO 2 -EOR HAS ALREADY BEEN DEEMED A BEST AVAILABLE CONTROL TECHNOLOGY FOR CO2 OFFTAKE FROM A NATURAL GAS SEPARATION PLANT EPA Greenhouse Gas Reporting Program Resource Conservation & Recovery Act (RCRA) Hazardous Waste Generator Obligations? Section 45Q CCS Tax Credit

7 U.S./FEDERAL: Existing Legal Structure for Regulated CO 2 Injected for EOR For the a-co 2 Pipeline Existing PHMSA & Related Requirements RCRA Hazardous Waste Transporter Obligations? What Happens When Regulated a-co 2 is Commingled with Unregulated CO 2?

8 U.S./FEDERAL: Existing Legal Structure for Regulated CO 2 Injected for EOR For the a-co 2 -EOR Owner/Operator Underground Injection Control (UIC) Program Transitioning from Class II to VI Regulation (40 CFR ), Draft Transition Guidance, Recent EPA Comfort Letter (April 24, 2015) EPA Greenhouse Gas Reporting Program Subpart UU versus Subpart RR (with federally approved MRV) The role of MRV remains a significant unknown

9 U.S./FEDERAL: Pending Legal Structure for Regulated CO 2 Injected for EOR Proposed New Source Performance Standards for New Fossil-Fuel Fired Power Plants (section 111(b) rule) Class II (unless transition to Class VI is otherwise triggered) Must opt into Subpart RR (MRV) Proposed Clean Power Plan Requirements for Existing Fossil-Fuel Fired Power Plants (section 111(d) rule) CCUS allowed but not anticipated to play a significant role Tiny chance of nascent carbon market here, too Oil & Gas should be concerned about the section 111(b) rule as it will set a precedent for comparable controls for additional source categories (refineries, LNG export terminals, etc.).

10 U.S.:REGIONAL/STATE/OTHER California Cap-and-Trade State Certification Laws (Montana, Texas, Wyoming) American Carbon Registry Voluntary Standard (April 27, 2015) Proposed Clean Power Plan Requirements for Existing Fossil-Fuel Fired Power Delegation of the UIC Class VI Rule (including the transition determination) to the States Future Legislation (45Q, etc.)

11 Challenges, Opportunities & Risk Mitigation for Companies Involved in the CO 2 -EOR Value Chain Or

12 The Carbon Management UW: Generating Foresight and Quantifying Impacts on Energy Applied CCUS research to (i) advance the state-of-knowledge, (ii) minimize regulatory uncertainty, and (iii) support projects Cutting-edge applied knowledge and know-how on wide-ranging sub-surface aspects of CCUS, including CO 2 -EOR Strong competencies in geology, geophysics, petrology, hydrogeology, reservoir engineering and economics, including integration across classical technical boundaries International bandwidth -- substantial experience in China (Ordos Basin) Campus-wide collaboration (petroleum engineering, chemical engineering, other) Support of UW s land-grant mission and Wyoming s mineral & natural resources International leadership on over-the-horizon energy issues (ISO, other) Techno-economic assessments Policy monitoring & analyses Student and public education

13 Q&A For More Information: Kipp Coddington Director, Carbon Management Institute School of Energy Resources University of Wyoming Ph: (307) Mail: Energy Innovation Center Dept E. University Ave. Physical Location: 1020 E. Lewis St.