-1-Praxair Canada Inc. – Calgary, Alberta, Canada
July 16, 2009July 16, 2009
HydrogenReliabilitySalt Cavern Case Study
HydrogenReliabilitySalt Cavern Case Study
Oil Sands & HeavyOil Technologies
Oil Sands & HeavyOil Technologies
-2-Praxair Canada Inc. – Calgary, Alberta, Canada
About PraxairAbout Praxair
Largest Industrial Gas Company in North andSouth America, one of the largest worldwide– 27,000 employees
– 2008 sales: $10.8 Billion USD
– Global Fortune 300 company listed on NYSE (PX)
– Holds almost 3,000 patents
Praxair's primary products are:– atmospheric gases (oxygen, nitrogen, argon and rare gases)
– process & specialty gases (carbon dioxide, helium, hydrogen,semiconductor process gases, acetylene)
www.praxair.com
-3-Praxair Canada Inc. – Calgary, Alberta, Canada
Presentation OverviewPresentation Overview
Gulf Coast hydrogen infrastructure– 310 mile pipeline
Praxair H2 storage cavern– Overview
– Benefits
Alberta Cavern Development– Heartland hydrogen demand
– Cavern Potential
– Cavern supply model
– Integration to existing Praxair network
-4-Praxair Canada Inc. – Calgary, Alberta, Canada
HYDROGEN SOURCES
CAVERN STORAGE
Gulf Coast Hydrogen InfrastructureGulf Coast Hydrogen Infrastructure
Cavern and Pipeline system connected to 11 out of 14 refineriesCavern and Pipeline system connected to 11 out of 14 refineries
-5-Praxair Canada Inc. – Calgary, Alberta, Canada
Praxair’s H2 Cavern OverviewPraxair’s H2 Cavern Overview
H2 from PX
H2 to Customers
SaltDome
Cap Rock
H2 from PX
H2
Storage
Design BasisStorage Capacity 2.5 Billion CFWorking Capacity 1.4 Billion CFMax Storage Pressure 2200 psigWorking Pressure 800 - 2200 psigFill Rate ~ 75 MMCFDWithdrawal Rate pressure
dependentCommissioned Q4 2007
Cavern Consists of:– Injection compressor with
ancillary equipment
– Hydrogen product dryer
– Associated metering andcontrol equipment
-6-Praxair Canada Inc. – Calgary, Alberta, Canada
Cavern Commercialization GoalsCavern Commercialization Goals
Safe injection / withdrawal of hydrogen
“Real-time” operation– add value for supply-system optimization and peak demand
Establish operational procedures– informed, timely decision making around sales, withdrawals and
injections
Key value creation streams:– Reliability sales (sales within firm volume)
– Operational and sourcing optimization
– Spot sales (sales outside of firm volume)
Added flexibility for both Praxair and refiners!Added flexibility for both Praxair and refiners!
-7-Praxair Canada Inc. – Calgary, Alberta, Canada
Cavern Support InfrastructureCavern Support Infrastructure
More than just a hole in the ground…More than just a hole in the ground…
-8-Praxair Canada Inc. – Calgary, Alberta, Canada
Cavern BenefitsCavern Benefits
Instant Sales Capability– Planned customer turnaround
– Unplanned customer outage
– 3rd party supply interruptions
Superior System Reliability– Praxair facility turnaround
– Praxair equipment outages
– Feedstock / Utility interruptions
Operational Considerations– Enable steady state operations
– Provide low demand “sink”
– Improved pipeline operability
Time
MM
SC
FD
Peak Demand - WITHDRAW
Excess Supply – FILL Cavern
-9-Praxair Canada Inc. – Calgary, Alberta, Canada
Crude Unit
Crude
LPG
Light Naphtha
NaphthaReformer
Alky
LPG
Alkylate
Fm FCC
Vacuumunit
Cokerunit
Lubesunit
KeroHDS
DieselHDS
G.O.HT
FCC Gasoline
PP
Kero/Jet
Gasoline blend
Coke
Diesel
50 mmscfd H2
Daily PurchaseX mmscfd H2
OUTAGE
Cavern Supply
Cavern Supply Can Help Avoid Cutback of Profitable UnitsCavern Supply Can Help Avoid Cutback of Profitable Units
Example: Customer BackupExample: Customer Backup
-10-Praxair Canada Inc. – Calgary, Alberta, Canada
Cavern Benefit ExamplesCavern Benefit Examples
Praxair H2 Product Availability– 11 Praxair sources on the network
– Backup supply mitigates risk of H2 production unit outage
Hydrogen back up on instantaneous basis– Unexpected outages at customer sites
– On purpose H2 production units / byproduct sources / third party
Operational Flexibility– Startup / shutdown of world scale SMRs can be avoided
– Coverage of SMR type demand for short 24 hour type periods withoutcalling on an SMR for start up
» Example: waiting for demand of large user to stabilize before cycling aworld scale reformer for start up
– Sink for excess H2
-11-Praxair Canada Inc. – Calgary, Alberta, Canada
85.00%86.00%87.00%88.00%89.00%90.00%91.00%92.00%93.00%94.00%95.00%96.00%97.00%98.00%99.00%
100.00%
1/1/
2005
7/1/
2005
1/1/
2006
7/1/
2006
1/1/
2007
7/1/
2007
1/1/
2008
7/1/
2008
1/1/
2009
Praxair H2 System AvailabilityPraxair H2 System Availability
Hurricane RitaCavern
Commercialized
US Gulf Coast Pipeline (BAPOC) 2005-present
HurricanesIke and Gustav
Cavern provides ability to ramp up production unitsCavern provides ability to ramp up production units
-12-Praxair Canada Inc. – Calgary, Alberta, Canada
What About Alberta?What About Alberta?
Dynamic H2 Market– Existing large demand
– Need for reliable supply
– New upgrading / refiningprojects proposed
Existing Infrastructure– Salt Cavern storage of
hydrocarbons
– Multiple Praxair facilities
– Praxair H2 Pipeline
Similar to US Gulf CoastSimilar to US Gulf Coast
Praxair Infrastructure:
ASU Complex
CO2 / Dry Ice Facility
PDI Cylinder Depot
Hydrogen Pipeline
Nitrogen Pipeline
NORTHERNLIGHTS -TOTAL
AGRIUM
NORTH WESTUPGRADING
FORT HILLS(PETRO
CANADA)
DEGUSSA
SHELLSCOTFORD
KINDERMORGAN
BAENERGY
STATOILHYDRO
ATCO
TOTAL
DOW EXISTINGPRAXAIR H2
PIPELINEAGRIUM
SHERRITT
TRANSCANADA
SUNCOR
GULFCHEM.
SUNCOR
TEXACO
CPRAIL
CPRAIL
ENBRIDGE
CNRAIL
KEYERA
GEMINI
STATOILHYDRO
AUXSABLE
SUNWESTENERGY
IMPERIALPIPELINE
CNRAIL
PROVIDENTENERGY
ACCESSPIPELINE
CP RAIL
CP RAIL
CP RAIL
STURGEON COUNTY
STRATHCONA COUNTY
FORTSASKATCHEWAN
PETROCANADA
ALCAN
ENBRIDGEPIPELINES
GIBSONENERGY
ALBERTAENVIROFUELS
KINDERMORGAN
PEMBINAPIPELINESIMPERIAL
OIL
PDI
EDMONTON
21 KM
Drawing not to scale– representation only
-13-Praxair Canada Inc. – Calgary, Alberta, Canada
H2 Demand Profile
-135270405540675810945
1,0801,2151,3501,4851,6201,7551,8902,0252,160
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
MM
SC
FD
H2 Demand – Industrial Heartland & Edmonton AreaH2 Demand – Industrial Heartland & Edmonton Area
Petrochemical volumes not included in abovePetrochemical volumes not included in above
Proposed Projects(new project demand)
Existing Hydrogen Demand
Figures above based on existing demand and Project Applications
-14-Praxair Canada Inc. – Calgary, Alberta, Canada
By-product Hydrogen (non-SMR) is reliability-challenged and baseassumption in creation of reliability model
Reliability model developed to assess impact of different modes ofoperation on the facility when operating ‘non-ideally’
Unit #1
Upgrader / RefineryProduction
Time
Unit #2 HydrogenProduction
Flow
Ideal Upgrader / Refinery OperationIdeal Upgrader / Refinery Operation
Ideal but unrealisticIdeal but unrealistic
-15-Praxair Canada Inc. – Calgary, Alberta, Canada
2917 60 0 60 120.0 116 4 3352918 60 0 60 120.0 116 4 3402919 60 0 60 120.0 116 4 3442920 0 60 60 90.0 116 -26 318
1890 60 60 0 120.0 116 4 453
1891 60 60 0 120.0 116 4 4581892 0 60 60 90.0 116 -26 4321893 0 0 60 30.0 116 -86 346
Input Data Only Into Cells Highlighted in Yellow!!
74% 66% 55% 0% Reliability 1 Reliability 2 Reliability 3 Reliability 4
Days Train 1 Train 2 Train 3 Train 4 Total Sales Storage 90.0% 90.0% 90.0% 80.0% Reliability
1 60 60 0 120.0 116 4 323 9 8 7 8 Shutdowns/year2 60 60 0 120.0 116 4 327 40.6 45.6 52.1 45.6 Cycle length3 60 60 0 120.0 116 4 331 36.0 41.0 46.0 36.0 Days On-Line4 60 60 0 120.0 116 4 336 4.0 4.0 6.0 9.0 Days Off-line
5 60 60 0 120.0 116 4 340 360 360 364 360
6 60 60 0 120.0 116 4 344 Train 1 Train 2 Train 3 Train 4
7 60 60 0 120.0 116 4 349 90% 90% 90% 80% Reliability (%)
8 60 60 0 120.0 116 4 353 9 8 7 8 Shutdowns per year9 60 60 0 120.0 116 4 357 0 0 0 0 Initial Delay (Days)
10 60 60 0 120.0 116 4 362 60 60 60 60 Capacity (MMscfd)
11 60 60 0 120.0 116 4 366
12 60 60 0 120.0 116 4 370 Initial Cavern Volume (MMscf) No. of Trains Longest Run length Delay Gasifier 1 Start13 60 60 0 120.0 116 4 375 318 3 46.0 No
14 60 60 0 120.0 116 4 379 Insert Yes or No to stagger start-up of Gasifier 1
15 60 60 0 120.0 116 4 383 Avg Daily Sales
16 60 60 0 120.0 116 4 388 115.7 MMscfd Spare Operation
17 60 60 0 120.0 116 4 392 Yes
18 60 60 0 120.0 116 4 396 Simulation LengthSwitch H2 Loss (% of
gasifier output)
2nd Day Upgrader Impact (%
of 1st day)
Insert Yes or No to allow4th Train Standby Option
19 60 60 0 120.0 116 4 401 2920 Days 50 0
20 60 60 0 120.0 116 4 405 2920 Maximum (increments of 10) (increments of 10)
21 60 60 0 120.0 116 4 409 Cavern Max Vol 666 1st Yr Availability22 60 60 0 120.0 116 4 413 Cavern Min Vol 293 97.0%
23 60 60 0 120.0 116 4 418 Working Vol 373 2nd Yr Availability24 60 60 0 120.0 116 4 422 Cavern Size 666 96.3%
25 60 60 0 120.0 116 4 426 Max Cavern Inflow 4 Cavern - 2.5 bscf size 8 Yr Availability Avg26 60 60 0 120.0 116 4 431 Max Cavern Outflow (116) 96.4%
27 60 60 0 120.0 116 4 43528 60 60 0 120.0 116 4 43929 60 60 0 120.0 116 4 44430 60 60 0 120.0 116 4 44831 60 60 0 120.0 116 4 45232 60 60 0 120.0 116 4 45733 60 60 0 120.0 116 4 46134 60 60 0 120.0 116 4 46535 60 60 0 120.0 116 4 47036 60 60 0 120.0 116 4 47437 0 60 60 90.0 116 -26 448
Working Cavern
Vol
Vol (MMscfd)
N+1 Gasifier Reliability
Multi-Train Gasifier Volumes
0.0
50.0
100.0
150.0
1 31 61 91 121 151 181 211 241 271 301 331 361
Days
Vo
lM
MS
CF
D
Incl. Switching Losses
• time-series probability model
• scenario analysis
• time-series probability model
• scenario analysis
2917 60 0 60 120.0 116 4 3352918 60 0 60 120.0 116 4 3402919 60 0 60 120.0 116 4 3442920 0 60 60 90.0 116 -26 318
1890 60 60 0 120.0 116 4 453
1891 60 60 0 120.0 116 4 4581892 0 60 60 90.0 116 -26 4321893 0 0 60 30.0 116 -86 346
Input Data Only Into Cells Highlighted in Yellow!!
74% 66% 55% 0% Reliability 1 Reliability 2 Reliability 3 Reliability 4
Days Train 1 Train 2 Train 3 Train 4 Total Sales Storage 90.0% 90.0% 90.0% 80.0% Reliability
1 60 60 0 120.0 116 4 323 9 8 7 8 Shutdowns/year2 60 60 0 120.0 116 4 327 40.6 45.6 52.1 45.6 Cycle length3 60 60 0 120.0 116 4 331 36.0 41.0 46.0 36.0 Days On-Line4 60 60 0 120.0 116 4 336 4.0 4.0 6.0 9.0 Days Off-line
5 60 60 0 120.0 116 4 340 360 360 364 360
6 60 60 0 120.0 116 4 344 Train 1 Train 2 Train 3 Train 4
7 60 60 0 120.0 116 4 349 90% 90% 90% 80% Reliability (%)
8 60 60 0 120.0 116 4 353 9 8 7 8 Shutdowns per year9 60 60 0 120.0 116 4 357 0 0 0 0 Initial Delay (Days)
10 60 60 0 120.0 116 4 362 60 60 60 60 Capacity (MMscfd)
11 60 60 0 120.0 116 4 366
12 60 60 0 120.0 116 4 370 Initial Cavern Volume (MMscf) No. of Trains Longest Run length Delay Gasifier 1 Start13 60 60 0 120.0 116 4 375 318 3 46.0 No
14 60 60 0 120.0 116 4 379 Insert Yes or No to stagger start-up of Gasifier 1
15 60 60 0 120.0 116 4 383 Avg Daily Sales
16 60 60 0 120.0 116 4 388 115.7 MMscfd Spare Operation
17 60 60 0 120.0 116 4 392 Yes
18 60 60 0 120.0 116 4 396 Simulation LengthSwitch H2 Loss (% of
gasifier output)
2nd Day Upgrader Impact (%
of 1st day)
Insert Yes or No to allow4th Train Standby Option
19 60 60 0 120.0 116 4 401 2920 Days 50 0
20 60 60 0 120.0 116 4 405 2920 Maximum (increments of 10) (increments of 10)
21 60 60 0 120.0 116 4 409 Cavern Max Vol 666 1st Yr Availability22 60 60 0 120.0 116 4 413 Cavern Min Vol 293 97.0%
23 60 60 0 120.0 116 4 418 Working Vol 373 2nd Yr Availability24 60 60 0 120.0 116 4 422 Cavern Size 666 96.3%
25 60 60 0 120.0 116 4 426 Max Cavern Inflow 4 Cavern - 2.5 bscf size 8 Yr Availability Avg26 60 60 0 120.0 116 4 431 Max Cavern Outflow (116) 96.4%
27 60 60 0 120.0 116 4 43528 60 60 0 120.0 116 4 43929 60 60 0 120.0 116 4 44430 60 60 0 120.0 116 4 44831 60 60 0 120.0 116 4 45232 60 60 0 120.0 116 4 45733 60 60 0 120.0 116 4 46134 60 60 0 120.0 116 4 46535 60 60 0 120.0 116 4 47036 60 60 0 120.0 116 4 47437 0 60 60 90.0 116 -26 448
Working Cavern
Vol
Vol (MMscfd)
N+1 Gasifier Reliability
Multi-Train Gasifier Volumes
0.0
50.0
100.0
150.0
1 31 61 91 121 151 181 211 241 271 301 331 361
Days
Vo
lM
MS
CF
D
Incl. Switching Losses
• time-series probability model
• scenario analysis
• time-series probability model
• scenario analysis
Reliability ModelReliability Model
-16-Praxair Canada Inc. – Calgary, Alberta, Canada
Facility Lags HydrogenFacility Lags Hydrogen
-17-Praxair Canada Inc. – Calgary, Alberta, Canada
H2 fromNetwork
Production LevelsMaintained
Upgrader / RefineryProduction
Time
Flow
Unit #2
Unit #1
HydrogenSupply
Cavern / Pipeline Supply
Cavern/pipeline backup adds flexibility, smoothes H2 supply
– self supporting – store hydrogen during periods of max production
– allows capture of hydrogen during periods of surplus
– allows for import of 3rd party hydrogen (and sale of surplus H2)
Hydrogen BackupHydrogen Backup
Cavern / pipeline integration maximizes reliabilityCavern / pipeline integration maximizes reliability
-18-Praxair Canada Inc. – Calgary, Alberta, Canada
Upgrading Impact – Gasifier Example
0.0
100.0
200.0
300.0
1 31 61 91 121151181211241271301331361391421451481511541571601631661691721
Days
Vo
lM
MS
CF
D H2 Supply
-
20,000
40,000
60,000
80,000
100,000
0 100 200 300 400 500 600 700
Time (Days)
Up
gra
din
g(b
bl/
da
y)
No Cavern Support
Cavern Supported
Upgrader Throughput
Days
6% loss in capacity without cavern backup2% loss in capacity if self-supported via cavern
0% loss in capacity with 3rd party back-up plus cavern
6% loss in capacity without cavern backup2% loss in capacity if self-supported via cavern
0% loss in capacity with 3rd party back-up plus cavern
-19-Praxair Canada Inc. – Calgary, Alberta, Canada
Alberta Cavern DevelopmentAlberta Cavern Development
Complements Praxair’sexisting network
Complements Praxair’sexisting network
Pre-feasibility completed– Desktop study
– Preliminary location identified
– Working with ATCO Energy Solutionson Cavern development
– Non-invasive testing performed
Lead-time ~3 yrs for 1st cavern– Additional year for 2nd cavern
Financial options– Tolling fee / Dedicated volume
– Joint venture
CAVERNSITE
-20-Praxair Canada Inc. – Calgary, Alberta, Canada
Praxair - Oilsands CapabilitiesPraxair - Oilsands Capabilities
Upgrading / RefiningUpgrading / Refining
H2
O2
ASUASU
CO2
CylindersCylinders
Utility Nitrogen /Oxygen
Utility Nitrogen /Oxygen
Vessel &Pipeline Purging
Vessel &Pipeline Purging
GasifierGasifier
Mine / SAGDMine / SAGD
ASU - OxyfuelASU - Oxyfuel
Photo: http://news.bbc.co.uk
Steam
SMRSMR
CO2
Compression
CO2
CompressionCO2
Capture
CO2
Capture
ReliabilityReliability
Purging, Cylinders, N2, O2…Purging, Cylinders, N2, O2…
EOR /Sequestration
EOR /Sequestration
Upstream, downstream and in between…Praxair is your full service Industrial Gas Supplier!
H2
H2 CavernH2 Cavern
H2 PipelineH2 Pipeline
Energy StudiesEnergy Studies
-21-Praxair Canada Inc. – Calgary, Alberta, Canada
Praxair Alberta Value PropositionPraxair Alberta Value Proposition
Jim McKayJim McKayOilsands Business Development
Calgary, Alberta
(O) 403(O) 403--385385--23482348
(C) 403(C) 403--462462--57685768
- Air Separation Unit
- Bulk Industrial Gases
- CO2 Capture and Compression
- Cylinders, Welding Supplies
& Related Equipment
- Energy Studies
- High Performance Coatings
- Hydrogen Supply
- Leak Detection
- Oxyfuel Burners
- Sulphur Recovery Unit Oxygen
- Vessel and Pipeline Purging Services