Dr. Darren J. Mollot Director, Office of Clean Energy System

Transcription

1 Dr. Darren J. Mollot Director, Office of Clean Energy System

2 This country needs an all-out, all-of-the-above strategy that develops every available source of American energy. A strategy that s cleaner, cheaper, and full of new jobs. President Barack Obama State of the Union Address January 24, 2012 Photo courtesy of the White House, Pete Souza

3 Then Now Pending carbon legislation No Pending carbon Low High cost CO High 2 capture cost High High cost No carbon Low cost legislation carbon natural $100/bbl $50 of CO - $60 2 legislation natural gas $100/bbl costs of natural COmust 2 gas gas prices capture from shale legislation per barrel from gas prices shale be capture driven to business case economics $50 - $60 per barrel CO 2 capture costs must be driven to business case economics CCUS is a business-driven di path to promote CO 2 capture and storage Strong incentive to pursue carbon capture and storage

4 Benefits of CO 2 -EOR Improves Balance of Trade $3.5 trillion over 60 years Promotes Energy Security Reduces imports by 2 MMbpd 1 Increases Domestic Activity $60 Billion/year (wages, royalties, taxes, profits) 1 Creates Jobs 1 622,000 new jobs 1 1 Source : NETL Report, Improving Domestic Energy Security and Lowering CO 2 Emissions with Next Generation CO 2 EOR, June 2011 Million bpd CO 2 EOR production trend Domestic Oil Supplies and CO 2 Demand (Storage) Volumes enabled by CCUS Technology er Day usands of Barrels p CO2 EOR Pro oduction Rate, Tho Goal for reduced crude oil imports set forth by President Obama Potential for next generation CO 2 EOR, 60 Bbbls over 60 years due to CO 2 availability from CCUS and expanded geographic locations Business-as-usual usual projection for 1.0 CO 2 EOR, 17 Bbbls over 60 years; limited by available CO volumes and limited geographic locations

5 Pr oduction Rate, MMm mtco2/yr Doe Canyon Jackson Dome Sheep Mountain 20 Bravo Dome 10 McElmo Dome Source: DiPietro, Balash, and Wallace. 2012

6 Hydrogen Energy California IGCC with EOR $408 Million - DOE $4.0 Billion - Total Southern Company Services IGCC-Transport Gasifier (CO 2 to pipeline) $270 Million - DOE $2.67 Billion - Total Summit Texas Clean Energy IGCC with EOR $450 Million - DOE $1.7 Billion - Total CCPI Round II CCPI Round III NRG Energy Post Combustion with CO 2 Capture and EOR $167 Million DOE $339 Million - Total Air Products CO 2 Capture from Steam Methane Reformers with EOR $284 Million - DOE $431 Million - Total Leucadia CO 2 Capture from Methanol with EOR $261 Million - DOE $436 Million - Total ICCS (Area I) CO 2 Pipelines

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8 10 RCSP Formation Type Big Sky Saline 1 1 WESTCARB BSCSP SWP PCOR 19 MGSC MRCSP SECARB MGSC MRCSP PCOR SECARB Oil-bearing Saline Coal seam Saline 7 Oil-bearing Oil-bearing Coal seam Oil-bearing Saline Coal seam SWP Oil-bearing Coal seam WESTCARB Saline 20

9 Matrix of Market and Policy Scenarios EOR Revenues Needed for Coal to Compete? Fossil Energy s CCS Program can effectively proceed, bridging the mid-term, by Using CO 2 commercially (CCUS) t? n-based Cos n Emissions? Regulation for Carbon No Yes Yes 2 nd -Gen CCUS needs 20% COE reduction and ~$40/tonne CO 2 revenue No Transformational CCS needs 38% COE reduction and no CO 2 revenue The commercial opportunity for anthropogenic CO 2, used for EOR, is expanding rapidly, offering significant, ifi parallel l capacity for attaining i the President s Energy Security Goal CO 2 EOR revenues in the range of $32-46/tonne will enable 2 nd -Gen coal with CCUS to have COE parity with NGCC without CCUS. For all scenarios, 2 nd -Gen coal with CCUS has a lower COE than NGCC with CCUS at any given CO 2 EOR price. COE reductions are required to compete with other baseload options in the future electricity market (e.g., NGCC and nuclear). Percent reductions are relative to today s IGCC with CCS.

10 Supplement existing oil and gas next generation EOR projects Continue next generation EOR R&D and new geologic discovery Initiate CO 2 EOR class-based demonstration Investigate CO 2 conversion to other value-added products Accelerate path to 2 nd generation CO 2 capture technology CCUS commercialization post- 2020

11 The The Environment Or Environment AND The Economy The Economy The Power of AND not Or

12 RITE DOE s Office of Fossil Energy (FE) National Energy Technology Laboratory (NETL) and Japan s Research Institute of Innovative Technology for the Earth (RITE) signed a Cooperative Research and Development Agreement (CRADA) in May 2012 to test and jointly develop new carbon dioxide (CO 2 ) sorbents. Have also partnered with 2 SECARB for microseismicity JCOAL NETL and Japan Coal Energy Center (JCOAL) are developing a CRADA to research oxy-fuel topics including chemical looping combustion and high-temperature materials corrosion issues.

13 CSLF Japan and the US and are members of the CSLF, an international initiative to develop affordable CCUS technologies. Japan and US jointly involved in three recognized projects: IEA GHG Weyburn-Midale CO2 Monitoring and Storage Project, and the Regional Carbon Sequestration Partnerships Project. I2CNER International Institute for Carbon-Neutral Energy Research is working with the DOE and other organizations and governments in an effort to: Characterize reservoir seal properties p and the condition of supercritical CO 2 and displaced brine through understanding the integrated geochemical/geomechanical processes that result from CO 2 injection Develop models with predictive capabilities of site integrity over extended periods of ftime. Provide the public with sound scientific data on CCS

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15 Hot Compressed Air Syngas Optimization APCI Oxygen Membrane 25% O 2 plant capital cost reduction 2% decrease in COE Oxygen Raw Fuel Gas RTI Warm Gas Cleaning in combination with H 2 Membrane 2.6 % pt efficiency increase 12% COE decrease Feed Systems Feedstock Clean Fuel Gas Water Gas Shift Steam reduction Hydrogen Rich Stream PWR Coal Feed Pump 1.0% COE reduction CO 2 Gasifier Optimization & Plant Supporting Systems Improve RAM Refractory durability Slag model development Dynamic simulator Reduce syngas cooler fouling CFD gasifier modeling

16 Awarded 4 Projects (FY2011) 1 year scoping studies GE Dry Feed Pump CO 2 Slurry Feed (Electric Power Research Institute, Inc.) CO 2 Capture Integrated with Water Gas Shift (TDA Research; testing 2 partner NCCC) Sour PSA to Remove CO 2 and Sulfur (Air Products and Chemicals, Inc.; testing partner EERC) Systems Analyses (ongoing) Cost and Performance Baseline for TRIG PRB and ND Lignite Air Blown IGCC Texas Lignite Air and Oxygen Blown IGCC; Co-feeding of biomass to meet 90% equivalent CCUS Dry feed gasifier systems: GE (PRB), Shell (high pressure), PWR and Optimization (quench syngas cooler)

17 Awarded 4 Projects (FY2011) 1 year scoping studies GE Dry Feed Pump CO 2 Slurry Feed (Electric Power Research Institute, Inc.) CO 2 Capture Integrated with Water Gas Shift (TDA Research; testing 2 partner NCCC) Sour PSA to Remove CO 2 and Sulfur (Air Products and Chemicals, Inc.; testing partner EERC) Systems Analyses (ongoing) Cost and Performance Baseline for TRIG PRB and ND Lignite Air Blown IGCC Texas Lignite Air and Oxygen Blown IGCC; Co-feeding of biomass to meet 90% equivalent CCUS Dry feed gasifier systems: GE (PRB), Shell (high pressure), PWR and Optimization (quench syngas cooler)

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19 Advance fundamental science to enable the technological breakthroughs that will facilitate the transition to a hydrogen-powered society with efficient CO 2 capture and storage or its conversion to a useful product Hydrogen Production Energy Analysis Optimum and Intelligent Material Transformations Thermophysical Properties H 2, CO 2 CO 2 Separation and Concentration Hydrogen Storage Materials H 2 Hydrogen-Compatible Structural Materials Next Generation Fuel Cells Sub-seabed CO 2 Sequestration CO 2 Plume CO 2 Plume CO 2 Geological Storage

20 Negotiated a large network of US, European and Asian affiliate European, faculty in first year New research environment through chalk-talk chalk talk engagement, videoconferencing, etc. Coordination with U.S. DOE's Hydrogen and Fuel Cells Program

21 Roadblocks -Poorly understood chemomechanical interactions of CO 2 with fluids, e.g. brine, and porous and fractured rock in relation to the frame of actual deployment - containment of supercritical CO 2, capillary trapping, and dissolution in reservoir brine -Relationship of actual field data and statistical approaches to reservoir property p model inputs T. Yanagi KChi K.Christensen K. Shitashima Goals -Characterize reservoir seal properties p and the condition of supercritical CO 2 and displaced brine through understanding the integrated geochemical/geomechanical processes that result from CO 2 injection -Develop models with predictive capabilities of site integrity over extended periods of time. -Provide the public with sound scientific data on CCS Technical approach -Geology of Japan and time scales involved will feed back to define basic research requirements -Constitutive models for chemistry and fracture of porous rock will be developed to capture the coupling between CO 2 reaction, transport, and mechanics in order to inform models with predictive capabilities of site integrity -Develop monitoring system of CO 2 concentration and ph in the deep ocean/ground T. Tsuji K. Kitamura Laboratory interrogation of fluid motion within complex pore structures typically inaccessible to monitoring Experiments will provide data on CO 2 migration and trapping in porous structures to aid numerical simulations Underwater Vehicle for Virtual Mooring