Energy is Important to Utah Utah is Important to Energy

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1 Energy is Important to Utah Utah is Important to Energy 29 th Oil Shale Symposium Governor s Office of Economic Development Utah Science Technology and Research 1

2 Governor s Office of Economic Development Economic Clusters Aerospace and Aviation Defense and Homeland Security Energy and Natural Resources Financial Services Life Sciences Software Development and Information Technology Outdoor Products and Recreation Competitive Accelerators 2

3 Utah Science Technology and Research Innovation Focus Areas Attract leading researchers to Utah Based on existing University strengths Vast commercialization opportunities and large, strategic global markets Leverage Utah industry strengths Grow revenue and lower costs Build infrastructure Improve healthcare Export technology Personalized Healthcare Energy Biomedical Technology Brain Medicine Imaging Technologies Nanotechnology Digital Media 3

4 Utah Governor Huntsman 28 th Oil Shale Symposium Utah is open for business as it relates to oil shale development Utah calls on the U. S. Interior Department to move forward with commercial oil shale leasing regulations 4

5 Utah Governor Herbert Gary R. Herbert inaugurated Utah s 17 th Governor on August 11, 2009 Priorities for Utah Economic Development Education Energy Infrastructure 5

6 U.S. Energy Consumption 6 Source: DOE EIA

7 Unconventional Strategic Fuels Program Section 369 of the Energy Policy Act of 2005 directs the Department of Energy (DOE) to develop an Unconventional Strategic Fuels Program. In 2006, the Secretary of Energy convened a Task Force on Strategic Unconventional Fuels The Task Force developed a plan for Unconventional Fuels Development within the Western Energy Corridor supported by the Office of Naval Petroleum & Oil Shale Reserves The Western Energy Corridor contains overlapping world class energy resources Utah is committed to responsible development of unconventional fuels from its natural resources 7

8 Western Energy Corridor Conventional Oil & Gas Fields Coal Resources Source: Southwest Regional Partnership 8

9 Western Energy Corridor Unconventional Source: Idaho National Laboratory 9

10 Western Energy Corridor Renewable Concentrating Solar Resource Wind Resource (50 m) Source: National Renewable Energy Laboratory 10

11 Western Energy Corridor Renewable (continued) Geothermal Resource Biomass Resource Source: National Renewable Energy Laboratory 11

12 Western Energy Corridor Carbon Sequestration Saline Formations Enhanced Oil Recovery Source: Southwest Regional Partnership 12

13 Unconventional Fuels Hybrid Energy Systems Source: Idaho National Laboratory On Oct. 13, 2009, INL and USU announce collaboration to develop hybrid energy systems 13

14 Why Energy Development in Utah Energy development is Governor Herbert s top three Existing, renewable, conservation, and hybrid/advanced Connection to higher education, research, development Incentive programs Community support Government initiatives Economic development strategies Friendly regulatory environment Land management Low energy costs Reliable, updated infrastructure Skilled work force 14

15 Utah Oil Shale Vernal Source: Michael VandenBerg, Utah Geological Survey billion barrels of recoverable oil Active Projects Ambre Energy Combustion Resources Enshale Mountain West Energy Oil Shale Exploration Co. RedLeaf Resources Syntec Inc. Western Energy Partners

16 Utah Oil Sands 12 to 20 billion barrels recoverable SLC Price Vernal Active projects American Resource Petroleum Corp. Green River Resources Nevtah Capital Korea Technology Industry America Temple Mountain Energy 16

17 Utah Heavy Oil Utah black wax difficult to produce Heavy oil recovery requires thermal energy input Active Projects Institute for Clean and Secure Energy Utah Heavy Oil Program Petroleum Research Center 17

18 Utah Natural Gas and Oil Utah # 8 in U.S. natural gas production Natural gas reserves 6,391 billion cu ft # 13 in U.S. oil production Oil reserves of 355 million barrels Utah Division of Oil, Gas, and Mining epermit program has reduced application for permit to drill to 6-9 months. All forms can now be filled on-line. BLM canceled legal oil and gas leases in Utah Reviewing Resource Management Plan developed over 7 years. Rural Utah counties fighting for local control of resources Source: DOE EIA, Utah DOGM 18

19 Utah Coal Coal reserves of 212 million short tons at producing mines 2% of U.S. coal production 83% of Utah s electricity generation Kaiparowits Plateau declared wilderness Grand Staircase Escalante National Monument 15 billion tons off-limits Low-sulfur, high quality Potential for underground coal gasification. Source: Jack Hamilton, U of U TCO 19

20 DOE Clean Coal Power Initiative Deseret Power and Sargas Round 3 proposal submitted 120 MW pressurized fluidized bed reactor Integrated carbon capture for EOR Southern California Edison and Energy Geosciences Institute Round 3 proposal submitted 1,000 MW clean hydrogen turbine from coal gasification Integrated carbon capture for geologic sequestration 20

21 Utah CO2 Sequestration Energy & Geosciences Institute Southwest Regional Partnership for CO 2 Sequestration Energy and Geosciences Institute at U of U Dr. BJ McPherson and Associates $88mm federal grant, $30mm to be spent in rural UT Carbon capture and storage (CSS) part of the Green Economy Formations of interest for permanent, geologic, storage of carbon dioxide in Utah, near CO2 sources. 21

22 USTAR, U of U Traditional Energy Team EGI Director SENIOR USTAR FACULTY Chair Chemical Engineering Dr. Ray Levey Dr. Brian McPherson Dr. John McLennan Dr. Joanne Lighty Dr. Joe Moore Dr. Milind Deo Dr. Phil Smith Prof. William Keach 22

23 Beneficial Use of CO 2 USTAR, USU Biofuels Start Finish Developing algae growth for beneficial capture of CO 2 Subcontractor to General Atomics on DARPA algae fuel project Algae strain growth testing (shown above) Algae can be co-pyrolyzed with oil shale 23

24 USTAR, USU Biofuels Team 34 Team Members Undergrads Leadership Team Research and support staff Grad students 24 PhD Candidates

25 Utah Green Economy Renewable Energy Development Incentive (REDI) Utah Generated Renewable Energy Electricity Network Authority (UGREEN) Utah Renewable Energy Zones Task Force (UREZ) Building the Clean Energy Economy Report Utah Building Energy Efficient Strategy (UBES) Utah Renewable Energy Industry Profile 25

26 Utah Renewable Energy Projects Wasatch Wind - Spanish Fork - 10 MW Wind First Wind - Milford MW Wind Raser Technologies - Beaver - 10 MW Geothermal Blue Castle Holdings - Green River - 1,600 MW Nuclear 26

27 Concluding Thoughts Overlapping energy resources Hybrid energy systems development Experienced university researchers Supportive Federal, State, and Local government Utah is committed to commercial unconventional fuels development Energy Developers Welcome in Utah 27

28 Discussion/Q & A Thank You! Presented by Alan J. Walker USTAR Director Eastern Utah (801) alanjwalker@utah.gov alanjwalker@egi.utah.edu 28