REGIONAL EVALUATION OF THE COMPLETE CCUS VALUE CHAIN CSLF Technical Group Meeting Abu Dhabi, United Arab Emirates John Harju, Vice President for Strategic Partnerships December 4, 2017 2017 University of North Dakota Energy & Environmental Research Center.
PRESENTATION OUTLINE North Dakota Where Are We Going? Project Team Connecting North Dakota s Economic Pillars: Lignite, Agriculture, and Petroleum 2
A STATE OF ENERGY & COMMODITY PRODUCTION A leader in U.S. energy production : 2nd in oil 6th in coal #1 producer of 11 agricutural commodities CCUS is key for continuing to provide energy in a clean, affordable, reliable manner. Image Credit Steve Shook 1
WHERE IS NORTH DAKOTA? 4
WHERE HAVE EERC AND NORTH DAKOTA BEEN? PCOR Partnership regional characterization Geology CO 2 sources Storage reservoirs (saline and oil) PCO 2 C capture experience Next Generation Power technology development Extensive CCUS field experience Completed and ongoing CO 2 storage projects (outline shows PCOR Partnership region)
CONVENTIONAL ENHANCED OIL RECOVERY POTENTIAL 6
WHERE DO WE NEED TO GO? A quantitative evaluation of the technical and economic impacts of the CARBON VALUE CHAIN in North Dakota. Upstream Lignite Mining and Power Generation Transportation Downstream CO 2 EOR and Associated CO 2 Storage Local industry, with federal and state government support, is helping us get there. 7
PROJECT TEAM Energy & Environmental Research Center NDSU (subcontractor) University of Wyoming - EORI (subcontractor) ALLETE Clean Energy BNI Coal Eagle Operating Minnkota Power Cooperative Lignite Energy Council North Dakota Petroleum Council North Dakota Department of Commerce U.S. Department of Energy (DOE) National Energy Technology Laboratory INDUSTRIAL COMMISSION OF NORTH DAKOTA LIGNITE RESEARCH COUNCIL 8
HIGH-LEVEL REGIONAL IMPACTS OF CCUS Economic impacts of CCUS can have substantial positive effects on regional economies and state and local tax revenue. Loss of coal-fired power stations in North Dakota will result in negative impacts to local economy/ tax revenue. Lack of affordable CO 2 leaves recoverable bbls of oil in the ground, reducing economic activity / taxes. 9
NORTH DAKOTA LIGNITE INDUSTRY Stable, well-established with consistent annual growth. ~$3.5 billon total economic contribution to the state (2015). 2 Employed 15,482 people in 2015 (direct and indirect). 2 800 year supply of lignite at present mining rates Image Credit ndstudies.gov 10
NORTH DAKOTA PETROLEUM INDUSTRY ~$33.7 billon total economic contribution to the state in 2015 (includes in-state infrastructure expenditures). 3 Employed 72,353 people in 2015 (direct and indirect). 3 11
IDEAL OPPORTUNITIES Image Credit Basin Electric Power Cooperative Image Credit NACCO Industries 12
HOW DO WE CONNECT THEM? Develop potential business models Factor in prices and demand for: Coal Electricity Oil Incentives State (production/extraction tax incentives, loan guarantees, employment credits) Federal (PTC, ITC, 45Q, etc) Where does energy from renewables factor in? Captured CO 2 Centralized CO 2 Distribution and Recycling Facility Oil Field Example hub-and-spoke scenario Oil Field Oil Field
WHAT ABOUT THE BAKKEN? ONLY A SMALL FRACTION OF BAKKEN OIL IS RECOVERABLE TODAY! Understanding the techno-economic impacts of linking North Dakota lignite with CO 2 -EOR will help support enhanced recovery in the Bakken.
Thank You! 15
ACKNOWLEDGMENT This material is based upon work supported by the U.S. Department of Energy National Energy Technology Laboratory under Award No. DE-FE0024233. Disclaimer This presentation was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government, nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.
REFERENCES 1. Used with permission from Steven Shook; https://www.flickr.com/photos/shookphotos/8011517546 2. Coon, R.C., Bangsund, D.A., and Hodur, N.M., 2017, North Dakota lignite energy industry s contribution to the state economy in 2015: Agribusiness and Applied Economics Report No. 761, Fargo, North Dakota, North Dakota State University Department of Agribusiness and Applied Economics and Center for Social Research, 11 p. 3. Bangsund, D.A., and Hodur, N.M., 2017, Petroleum industry s economic contribution to North Dakota in 2015: Agribusiness and Applied Economics Report No. 766, Fargo, North Dakota, North Dakota State University Department of Agribusiness and Applied Economics, 73 p. 17
CONTACT INFORMATION Energy & Environmental Research Center University of North Dakota 15 North 23rd Street, Stop 9018 Grand Forks, ND 58202-9018 www.undeerc.org 701.777.5157 (phone) 701.777.5181 (fax) John Harju Vice President for Strategic Partnerships jharju@undeerc.org 18