David Mohler
Deputy Assistant Secretary U.S. Department of Energy, Office of Clean Coal and Carbon Management
February 2016
Carbon Management in the United States: Advanced Technology, CCS, CCUS, and EOR
Abundant low-cost gas is changing the world
New EIA-ARI Study: • 6,622 Tcf recoverable shale • 22,600 Tcf recoverable natural gas
Global shale adds 40%!
Source:IEA2013WorldEnergyOutlook
Source:EIA2014AnnualEnergyOutlook
FutureofFossilEnergyDemandandGenera5on
• Fossilenergyreducesitsworldshareofdemandfrom82%to75%by2035,evenwithasurgeinrenewableenergysource(IEA2013)
• Naturalgasandrenewablesoutpacegrowthanddemandofallothersourcesworldwide
• NaturalgasisprimarysourceofelectricitygeneraGoninUnitedStatesaJer2035(EIA2014)
• FossilEnergyremainsdominantshare(68%)ofUnitedStateselectricitygeneraGonin2040
Hydrocarbon fuels and climate change ContribuGonstoreducGonsinIEAscenarios:
20
25
30
35
40
45
50
2009 2015 2020 2025 2030 2035
GtC
02
Nuclear9%PowergeneraGonefficiencyandfuelswitching3%Renewables28%End-usefuelswitching9%CCS22%End-usefuelandelectricityefficiency31%
AddiGonal6DSemissions
Scenarios:energymixin2035
Source:IEAWorldEnergyOutlook2011
BAU>800ppmby2100
450ppm20C
NewPolicies~600ppmby2100
CCUS needed even with substanLal efficiency
Financing (cost recovery) is the main issue Draft – Not Final
Pathway #1: A Mixed Portfolio
17
! Assumes large increases in the deployment of all low-carbon sources
! Electricity demand increases through increased electrification in all end-use sectors
Electricity Production
0
1000
2000
3000
4000
5000
6000
7000
8000
199
0
200
0
201
0
202
0
203
0
204
0
205
0
[Bill
ion
kW
h/y
r]
Geothermal
Solar
Wind
Hydro
Nuclear
Biomass w/ CCS
Biomass w/o CCS
Coal w/ CCS
Coal w/o CCS
Gas w/ CCS
Gas w/o CCS
Oil w/ CCS
Oil w/o CCS
Draft – Not Final
Pathway #2: A Mixed Portfolio with Lower Demand
19
Electricity Production
! 25% electricity reductions from the mixed scenario by 2050, calculated ex-post
0
1000
2000
3000
4000
5000
6000
7000
8000
1990
2000
2010
2020
2030
2040
2050
[Bill
ion k
Wh
/yr]
Geothermal
Solar
Wind
Hydro
Nuclear
Biomass w/ CCS
Biomass w/o CCS
Coal w/ CCS
Coal w/o CCS
Gas w/ CCS
Gas w/o CCS
Oil w/ CCS
Oil w/o CCS
USPowerGen:MixedScenario USPowerGen:Low-DemandScenario
6
Cost, policy, and parity
CCS AcLviLes in the U.S. – Technology Development and Market Mechanisms
ExisGngMarketMechanisms:EnhancedOilRecovery(EOR)
65milliontonsperyearofCO2toproducenearly300,000barrelsofoilperday.
RegulatoryFramework(Evolving)
Financing(TaxCreditsandLoanGuarantees)
R&D:cost(capture_andconfidence(storage)Demos(integraGonandlearning)
Domes5cOilSuppliesandCO2Demand(Storage)Volumesfrom“NextGenera5on”CO2-EORTechnology**
TechnologyPush MarketPull
AtechnologypipelineforaffordableCCS
CO2CaptureCO2StorageAdvancedEnergySystemsCrosscuMngResearch
Cost-effective capture for new and existing plants
Safe, permanent storage of CO2 from power and industry
Gasification, advanced turbines, advanced combustion, and fuel cells
Crosscutting technology development
SnapshotofCurrentProgramStatus–Numberofprojects,technologytype,scale
ProgramArea KeyTechnology NumberofR&DProjects Total
TRL2-4Lab/Bench
TRL5-6SmallPilot
TRL7+LargePilot
Post-CombusAonCapture
Solvents 17 6 6* 29
Sorbents 13 3 1* 17
Membranes 10 3 - 13
Pre-CombusAonCapture
Solvents 1 - - 1
Sorbents 1 2 - 3
Membranes 7 - - 7
Compression Compression - - 1 1
Totals 49 14 8 71
Pre-combus5onCaptureCenter
PilotSolventTestUnit(PSTU)
0.5Mwe(10tpdCO2)
GoalDeveloptechnologiesunderrealisGccondiGonsthatwillreducethecostofadvancedcoal-fueledpowerplantswithCO2capture
Advantages• NaGonalresourceforindustryand
academiatovalidateperformanceandoperaGonsofadvancedcapture
• ConsistenttesGngproceduresanddatacollecGonallowcomparison
• Stellarsafetyandenvironmentalrecord
Status• Over30technologiestestedfrom
laboratorytosmallscalepilot• Hundredsoftechnologiesscreened• OpportuniGestotesttechnologiesusingNG
ProgressisbeingMade,butMustGoFartherandFasterAdvancedCO2capturetechnologies:Manypathwaystosuccess
Novel SolventsTransformational concepts and
Advanced CompressionSolid sorbentsAdvanced membranes
TotalGlobalEmissions:15.4GtCO2eq
Global CO2 Emissions By Industrial Sector
Source: IPCC Working Group III 5th Assessment Report
http://mitigation2014.org/report/publication/
• CO2isalreadybeingcapturedinsomeindustries(e.g.,SelexolTMandRecGsol®)• CO2concentraGonintreatedstreammaybehighornearlypure
• Industrialsources~21%ofGHGs,potenGalforCO2captureissubstanGal
CO2 Capture from Industrial Sources Low Hanging Fruit
HansonPermanenteCementKiln,LosAltos,CA,2008SelexolDual-stageFlowDiagram,NETL2009
ICCS DemonstraLon Project Summary
AirProductsIndustrialCapture;EOR• PortArthur,TX(HydrogenplantatValeroRefinery)• 90%+CO2capture(VacuumSwingAdsorpGon);~925,000tonnesCO2/year
• EOR:DenburyWestHasGngsoilfiled• TotalProject:$431million;DOEshare:$284million• OperaGons:December2012(Projectexecutedunderbudget)• 1,598,963tonnesdeliveredasof12/16/14
ArcherDanielsMidland(ADM)Biofuel;GeologicStorage• Decatur,IL• CO2>99%purityfromfermentaGonreactors(dehydraGon&compression)
• ~900,000tonnesCO2/year• GeologicStorage:MtSimonsalinereservoir• OperaGons:2015• TotalProject:$208million;DOEshare:$141million
Air Products Industrial Capture to EOR
Archer Daniels Midland
Port Arthur, TX: : 1.1 M tons/y CO2 Air Products, 2013
VSAVessels
Co-GenUnit
Blowers
CO2Compressor&TEGUnit CO2Surge
Tanks
Exis5ngSMR
Operational! 1.6M tons stored so far
Decatur, IL ADM 2013 333,000 tons/y for 3 years 1 M tons injected total 1 M tons/y shortly
CO2PipetoInjec5onWell
FinalclassVIpermit
CompressionFacility
ADehydraGon/compressionfacilitylocaGonBPipelinerouteCInjecGonwellsiteDVerificaGonwellsiteEGeophonewell
Skyonic “Skymine” project, San Antonio, TX OperaLonal !!
75,000tons/yCO2captured->200,000tonsavoided
18
BIGSKY
WESTCARB
SWP
PCOR
MGSC
SECARB
MRCSP
Regional Carbon SequestraLon Partnerships Developing the Infrastructure for Wide Scale Deployment SevenRegionalPartnerships
400+disDnctorganizaDons,43states,4CanadianProvinces
• Engageregional,state,andlocalgovernments• DetermineregionalsequestraGonbenefits• Baselineregionforsourcesandsinks• EstablishmonitoringandverificaGonprotocols• ValidatesequestraGontechnologyandinfrastructure
DevelopmentPhase(2008-2018+)
8largescaleinjecGons(over1milliontonseach)
CommercialscaleunderstandingandvalidaGon
Valida5onPhase(2005-2011)
20injecGontestsinsalineformaGons,depletedoil,unmineablecoalseams,andbasalt
Characteriza5onPhase(2003-2005)
SearchofpotenGalstoragelocaGonsandCO2sources
FoundpotenGalfor100sofyearsofstorage
There are many low-cost opLons in the US for industrial CCUS today
There are many low-cost opLons near pipelines
Totalsources:~14Mtons/yLargestsource:2Mtons/y
HighPuritySourcesofCO2within100milesofaCO2Pipeline
There are many low-cost opLons near saline formaLons
Totalsources:~43Mtons/yLargestsource:4Mtons/y
HighPuritySourcesofCO2within100milesofapoten5alsalineforma5on
There are many low-cost opLons near oilfields
Totalsources:~32Mtons/yLargestsource:2Mtons/y
HighPuritySourcesofCO2within100milesofanoilfield
CO2 for EOR Today
• Over130CO2OERprojects,producing300,000bpd• ByinjecGng3.5billioncubicfeetperdayofCO2
• 0.7BCFDthatcomesfromindustrialsources• Affordable,reliablesuppliesofCO2isaconstraint
CurrentCO2-EOROpera5onsandCO2Sources(2014)
Sources:AdvancedResourcesInternaGonal,MidlandCO2Conference2015;Oil&GasJournalandotherindustrydata,2014.
ROZasanewandemergingendeavor
Op5miza5onofEORforCO2storage
Associated CO2 Storage via EOR and ROZs
For Accelerating Technology Development
Na5onalLabs Academia Industry
Iden5fypromisingconcepts
Reducethe5mefordesign&
troubleshoo5ng
Quan5fythetechnicalrisk,toenablereachinglarger
scales,earlier
Stabilizethecostduringcommercialdeployment
CapturingandSharingKnowledge
BestPrac5cesManual Version1(P--II)
Version2(P--III)
FinalVersion(Post-
Injec5on)
Monitoring,VerificaGonandAccounGng
2012 2016 2020
PublicOutreachandEducaGon 2009 2016 2020
SiteCharacterizaGon 2010 2016 2020
GeologicStorageFormaGonClassificaGon 2010 2016 2020
SimulaGonandRiskAssessment 2010 2016 2020
CarbonStorageSystemsandWellManagement
AcGviGes2011 2016 2020
Financing: US policies and proposals
27
Administra5on• 48a,48b,and45qtaxcredits• ITCandSTCtaxcreditproposals(2016)• CPP:111(b)–CCUSasBSERforcoal(1400lbs/MW-hr)• CCP:111(d)–CCUSascomplianceopGonforstates
Draqlegisla5on• Hoeven/Conaway&Jenkins:45Qexpansion($20/$30/$40uncapped)• Heitkamp&Manchin:Mixofmechanisms• Whitehouse-Booker:NewproposalforITC/STCmix
Proposedpolicies• Cleanenergyporwoliostandards• Tax-freedebtfinancing;bonusdepreciaGon
Momentum in the States
“GovernorspledgetoworkwithChinaoncleanenergy”
ResoluDon15.091
28
Insert picture here from PUC trip if possible
Post-Kyoto Landscape
US-ChinaAccord– IncludeslargeCCSproject– Includesenhancedwater
recoveryprojectsNewEUaccord
– PolicyParityforCCUSandnuclear(alsoUNECE)
– Innova5onfunds
FromLimatoParis– 70na5onsmakecommitments– Self-determina5on-based
progress
Mission InnovaLon and CCS Country CSLF
Member CCSinINDCs LargeScaleCCSProjects
(Source:GlobalCCSIns5tute) Australia ✔ 3LargeScaleProjects Brazil ✔ 1LargeScaleProject Canada ✔ ✔ 6LargeScaleProjects Chile China ✔ ✔ 9LargeScaleProjects
Denmark FormerMember France ✔ PilotScaleProjects
Germany ✔ India ✔
Indonesia PotenGalMember PlannedPilotScaleProject Italy ✔ PilotScaleProjects Japan ✔ PilotScaleProjects Mexico ✔ Norway ✔ ✔ 2LargeScaleProjects
RepublicofKorea ✔ 2LargeScaleProjects SaudiArabia ✔ ✔ 1LargeScaleProject Sweden
UnitedArabEmirates ✔ ✔ 1LargeScaleProject UnitedKingdom ✔ 4LargeScaleProjects
Proposingacceleratedeffort:Capture2025
Newtechnologythrusts
• Systemintegra5on• Func5onaliza5onofmaterials• Modular/containerizedsystems• Technicalsupportcenter• HPC(materialdiscovery;reactordesign)• Sitecharacteriza5on
200MW+Demonstra5onProjects
10-50MWPilotProjects
SystemIntegra5onandSuppor5ngR&D:Use-inspiredPhysicsandChemistry,Cross-cuzngIniGaGves,EngineeringandSimulaGon
2016 2020 2025 20302020:SolicitaGonfornewdemonstraGonprojects
Rare Earth Supply and Demand
China, 84.4%
Australia, 3.1%
U.S., 6.2%*
Vietnam, 0.2%
Thailand, 1.0%
Russia, 2.2%
Malaysia, 0.2%
India, 2.7%
Share of global rare Earth mine production, 2014 (USGS data)
*Note: the sole U.S. production operation went bankrupt in 2015
Upsides • Establishment of additional
REE production capacity expansion of the REE reserve base
• Additional sources of revenue and high tech manufacturing in coal-producing regions
DOE has developed new tools • New processing techniques for geophysical well logs • New analytical equipment (field and laboratory)
DOE has analyzed 400 samples, several hundred additional by commercial labs
The search for ores
DOE initiatives: • RFP for sampling and analysis capabilities (to broaden
the search for REE ores throughout the U.S.) • FOA for sensor technology (for prospecting and use in
production) • Increase collaboration with industrial and academic
partners
• Ultimate goal – installation of a pilot production plant
Next Steps
