Issues and Challenges for Transportation Fuels. Mike Hightower Sandia National Laboratories

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1 Issues and Challenges for Transportation Fuels Mike Hightower Sandia National Laboratories

2 Energy and Water are Interdependent Water for Energy and Energy for Water Energy and power production require water: Thermoelectric cooling Hydropower Energy minerals extraction/mining Fuel Production (fossil fuels, H 2, biofuels) Emission control Water production, processing, distribution, and end-use require energy: Pumping Conveyance and Transport Treatment Use conditioning Surface and Ground water

3 Global Increase in Energy Consumption Means more competition for water IEA projects 5,000 Mtoe increase between 2007 and 2030, Continuing the trend of the past 30 years

4 Water Supplies are Already Stressed Impacting Energy Development

5 Growing Limitations on U.S. Fresh Surface and Ground Water Availability Little increase in surface water storage capacity since 1980 Concerns over climate impacts on surface water supplies ( Based on USGS WSP and Alley 2007) Many major ground water aquifers seeing reductions in water quality and yield (Shannon 2007)

6 Assessment of Regional Water Stress in North America

7 State Water Managers Expecting Shortages in The Next Decade Under Average Conditions g WA AK MT ND ME OR ID WY SD MN WI MI MI NY VT NH MA CTRI CA NV UT CO NE KS IA MO IL IN KY OH WV PA NJ MDDE VA HI HI HI HI HI AK AZ NM TX OK AR LA MS TN AL GA NC SC FL shortage Statewide Regional Local None No response or uncertain Source: GAO 2003

8 The Transportation Fuel Supply Challenge Source: NPC 2007 Report The Hard Truths - One Year Later Global Liquids Supply Millions B/D Existing Production Capacity MBOE/D MBOE/D Unconventional, biofuels, and substitution Conventional non OPEC Conventional OPEC

9 Alternative Fuel Supply Dilemma Can biofuels/unconventional fuels meet 2030 production goals of million barrels/day OE North America could provide ~ 6 million bbls/day Canadian oil sands at 4 M bbl/day OE US biofuels at 2-3 M bbl/day OE But water supply availability and quality issues will impact both What can other regions contribute with current water supply stresses Alternative/substitution options also have water problems Transportation electrification, hydrogen fuels, natural gas-based fuels, oil shales

10 Canadian Oil Sands Production

11 EISA 2007 Renewable Fuels Standard 36-Billion Gallons EISA Renewable of Biofuel Fuel Standard by Technology-neutral Advanced Biofuel: maximum =? billion gallons per year Biomass-based Diesel: maximum =? Biofuel from Cellulose: 16 bgy, Corn Ethanol: maximum 15 bgy U.S. will miss cellulosic fuel target in 2010 and 2011 by ~ 250 Mgal

12 Alternative Transportation Fuels and Water Use Impacts are Often Regional Oil Shale Cellulosic Biomass

13 Emerging International Interest in Energy and Water Issues and Challenges Increased media interest NATURE, National Geographic, Scientific American Growing awareness in the business community World Economic Forum report World Business Council World Energy Council ECONOMIST, Journal of Energy Security Growing international concerns and challenges Europe Australia Asia South Africa Canada

14 Natural Resources Discussions Currently Not System Focused Hydrogen Car Example: CH 4 + 2H 2 O + heat 4H 2 + CO 2

15 Water Consumption for Future Fuel Sources Could Exceed Conventional Fuels

16 Water Availability Is Already Impacting New Energy Development Recent energy facility permitting issues due to water availability

17 Summary of Major U.S. Needs and Issues Identified in Regional Workshops Improved water and energy use efficiency Improved water efficiency in thermoelectric power generation Improved biofuels/biomass water use efficiency Reduced water intensity for emerging energy resources Development of alternative water resources and supplies Non-traditional and oil and gas produced water use and reuse Improved energy efficiency for non-traditional water treatment and use Better resources planning and management Improved water supply and demand characterization, monitoring, and modeling Integrated regional energy and water resource planning and decision support tools Framework for incorporating infrastructure, regulatory, and policy considerations for improved energy/water efficiency planning

18 Suggested Water Research Program for Alternative Fuels Sector Reduce water use for cooling in biofuels and alternative fuels production Reduce water use in processing Develop low fresh water use technologies such as algal biodiesel Assess non-traditional water use for fuels applications Assess hydrologic and water quality impacts of large biofuels scale-up, and oil shale, etc.

19 Biobased Transportation Fuels System-Level Issues and Challenges Gallons of Oil per Acre per Year Corn 18 Soybeans 48 Safflower 83 Sunflower 102 Rapeseed 127 Oil Palm 635 Micro Algae Algae may have potential advantages over corn, cellulosic materials, and other crops but has nutrient and water issues as well Land Needed for Biofuel to Replace 50% of Current Petroleum/Diesel using oil from: Corn Soybean Algae

20 Approaches use Non-traditional Water Resources could be Sustainable Saline Aquifers Oil and Gas Produced Water

21 Sustainable Fuels through Co-utilization and Co-location Infrastructure Options Waste water for biofuels Low water use Renewables for electric vehicles

22 Water Use and Consumption for Electric Transportation Alternatives is and Issue Plant-type Fossil/ biomass steam turbine Nuclear steam turbine Natural Gas Combined- Cycle Cooling Process Water Use Intensity (l/mwh e ) Steam Condensing Other Uses Withdrawal Consumption Consumption Open-loop 80, ,000 ~ Closed-loop Open-loop 100, ,000 ~1600 Closed-loop Open-loop 30,000 80, Closed-loop Integrated Gasification Closed-loop Combined-Cycle Carbon sequestration for ~65% increase in water withdrawal and consumption fossil energy generation Geothermal Steam Closed-loop Concentrating Solar Closed-loop Wind and Solar Photovoltaic ~120 ~120 N/A