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Proposed government–provided incentives to promote the capture and use of CO2 for EOR: Options for incentivising large–scale CCS/CCUS projects in budget constrained times
Webinar – 26 June 2013, 0600 AEST
Judi Greenwald
Judi Greenwald is the Vice President for Technology and Innovation at the Center for Climate and Energy Solutions. She oversees the analysis and promotion of innovation in the major sectors that contribute to climate change, including transportation, electric power, buildings, and industry. Ms. Greenwald focuses on technology, business, state, regional, and federal innovation. She is a member of the Advisory Council of the Electric Power Research Institute and served on several National Academy of Sciences panels studying vehicles and fuels. She also served on the Resource Panel for the northeast Greenhouse Gas Initiative and the California Market Advisory Committee, and as a policy advisor to the Western Climate Initiative and the Midwest Greenhouse Gas Accord Advisory Group. She was previously the Vice President for Innovative Solutions at the Pew Center on Global Climate Change, C2ES’s predecessor organization.
Ms. Greenwald has over 30 years of experience working on energy and environmental policy. Prior to coming to the Pew Center, she worked as a consultant, focusing on innovative approaches to solving environmental problems, including climate change. She also served as a senior advisor on the White House Climate Change Task Force. As a member of the professional staff of the U.S. Congress Energy and Commerce Committee, she worked on the 1990 Clean Air Act Amendments, the 1992 Energy Policy Act, and a number of other energy and environmental statutes. She was also a Congressional Fellow with then-Senate Majority Leader Robert C. Byrd, an environmental scientist with the U.S. Nuclear Regulatory Commission, and an environmental engineer and policy analyst at the Environmental Protection Agency.
Ms. Greenwald has a Bachelor of Science in Engineering, cum laude, from Princeton University, and an M.A. in Science, Technology and Public Policy from George Washington University.
Patrick Falwell
Patrick Falwell is a Solutions Fellow for the Center for Climate and Energy Solutions, where he reports to the Vice President for Technology and Innovation. Mr. Falwell analyzes clean energy and climate change policy at the state and federal level. He also monitors nationwide clean energy market developments and identifies opportunities to support clean energy growth.
Mr. Falwell holds a Masters of Arts in International Economics and Energy, Resources, and the Environment from the Johns Hopkins School of Advanced International Studies and an undergraduate degree from Georgetown University. He previously worked as a research analyst for the U.S. Bureau of Labor Statistics (BLS) and the Consumer Price Index (CPI), where he conducted analysis of consumer expenditure behavior and national inflation data.
Ben Yamagata
Ben Yamagata is a Partner at the Van Ness Feldman Law Firm and the Executive Director of the Coal Utilization Research Council – a coalition of industry and educational institutions with an interest in promoting clean coal technology.
Mr. Yamagata’s practice encompasses federal and state legislative and administrative issues in the areas of energy, environment, natural resources, international trade (technology transfer and independent power project development), and transportation-related matters.
Mr. Yamagata represents clients before the Departments of Energy, Commerce, Transportation, Defense and State, as well as the Office of Management and Budget and the Environmental Protection Agency, on both project-specific and programmatic issues that relate particularly to technology research, development, demonstration, and deployment relating to the use of coal and other fossil and renewable energy resources. Mr. Yamagata has advised clients on energy and environmental technology projects as well as provided counsel and representation in the structuring and advocacy for government programs such as the Department of Energy’s clean coal technology development and demonstration programs and financial incentive programs (e.g., loan guarantees and clean coal tax credits) that were authorized as part of the Energy Policy Act of 2005.
Mr. Yamagata is a graduate of Harvard College and the George Washington University National Law Center University.
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A Diverse Coalition Recommends Incentives to Accelerate Commercial Deployment of EOR Using Captured CO2
Webinar for the Global Carbon Capture and Storage Institute
June 25, 2013
Presenter:Judi Greenwald, Vice President for Technology & Innovation Center for
Climate and Energy Solutions
Overview of presentation
• What is CO2-EOR?
• What is NEORI?
• What does NEORI recommend?
How does CO2-EOR work?
Commercial CO2 use in enhanced oil recovery is happening now, and it’s bigger than most people realize.
Background on CO2-EOR
• The CO2-EOR industry has 40 years of commercial operational experience (beginning at significant scale in West Texas in 1972).
• Today, CO2-EOR produces nearly 300,000 barrels of oil per day (100 million barrels annually), or about 6 percent of U.S. domestic production. Source: Melzer, 2012
10
Map of Current U.S. CO2-EOR Activity
Why is CO2-EOR so important?
• Energy SecurityoCan at least double U.S. reserves (20 billion barrels)o27 to 62 billion barrels with existing technology, 67 to 137
billion barrels with next generation techniques
• Economic Opportunityo Job creation, increased tax revenues, reduced U.S. trade
deficit (cumulatively) by $600 billion by 2030
• Environmental ProtectionoReduce U.S. GHG emissions by 10-20 billion tonsoDrive innovation in carbon capture and storage technologyoProduce oil with less environmental impact
Project Participants & Observers
Coal and Coal-Based Generation• Arch Coal• Basin Electric Power Cooperative• Summit Power Group• Tenaska Energy
Industrial Suppliers of CO2/Technology Vendors• Air Products• Alstom• Archer Daniels Midland• C12• GE Energy• Jupiter Oxygen• Linde• Praxair
Project Developers• Leucadia Energy
Environmental NGOs• Clean Air Task Force• Natural Resources Defense Council• Ohio Environmental Council• Wyoming Outdoor Council
Labor• AFL-CIO• United Transportation Union
State Officials• Illinois, Indiana, Michigan, Mississippi, Montana, New Mexico, Texas
and West Virginia
Academic Institutions• Enhanced Oil Recovery Institute (University of WY)
Observers• Oil and Gas
– Chaparral Energy– Core Energy– Tellus Operating Group
• Associations– Interstate Oil and Gas Compact Commission
1. Recommend and advocate for incentives and other policies to support commercial CO2-EOR deployment that are self-financing through revenues from additional incremental oil production.
2. Prepare key analyses to inform and support incentive policies for anthropogenic CO2-EOR
And…
NEORI’s Three-Part Agenda
3. Increase policy-maker, media, and public awareness of CO2-EOR, its benefits and the need for deployment incentives.
NEORI’s Three-Part Agenda
“We have endorsed, for example, the National Enhanced Oil Recovery Initiative’s recommendation that Congress create a production tax credit for power companies that capture CO2 from power plants and send it to oil companies to use to free trapped crude from underground rock formations.”
- October 17, 2012
Consensus recommendations released February 2012
• Incentives to use captured CO2 in EORo Federal
• Reform of existing Section 45Q tax credit
• Expanded 45Q program with added provisions
o State• Model state incentives
NEORI report available at: neori.org
– A bipartisan group of Members of Congress welcomed NEORI’s recommendations
– This translated into the Conrad (D-ND)-Enzi (R-WY)-Rockefeller (D-WV) bill incorporating NEORI’s 45Q reform recommendations
– Proposed improving functionality and transparency of existing program; helpful for obtaining private financing
– Renewed bipartisan interest in the new Congress
Conrad-Enzi-Rockefeller bill (S. 3581) introduced September 2012 on 45Q Reform
NEORI recommends an expansion of the 45Q program with new provisions
• Bridge the cost gap between what CO2-EOR operators are willing to pay and the cost of capture
• Credit goes to those who capture, but only once the CO2 is used for EOR
• More than pays for itself because: – CO2 captured with incentive incremental oil production
new sales revenue new tax revenue (under existing tax treatment)
• No change in existing tax treatment for oil
• Combine federal incentive with CO2 market price
Proposed 45Q expansion provisions
• Credits allocated for 10 years per project• $/ton of CO2 used in EOR • Two design objectives
– Minimize costs– Drive innovation
• Competitive bidding/reverse auction• Divided into tranches and sub-tranches for different CO2
sources• Provision to adjust annual tax credit value based on
changes in the price of oil
Tranche structure of 45Q expansion
• Tranches and sub-tranches– Pioneer (first mover)
• Power• Industrial
– Power– Industrial
• Low cost industrial• High cost industrial
20
More anthropogenic CO2 can become available at higher prices . . .(Illustration with EIA 2011 data)
Power plant CO2 supply potentially larger
21
More anthropogenic CO2 can become available at higher prices . . .(Illustration with EIA 2011 data)
Power plant CO2 supply potentially larger
22
Incentives are needed to cover the “cost gap” between EOR operator willingness to pay and the cost to capture and transport CO2, especially for the larger man-made sources of CO2 . . .
Core Scenario + Transp. Costs
CO2 Market Price (*Starting 2013,
Willingness To Pay)
Representative EOR Incentive (for
illustration purpose) (A) (B) (A-B)
Power Plant Tranche ($/tonne) ($/tonne) ($/tonne)
Pioneer - First of a Kind Projects $70 $33 $37
Projects #2-#5 $60 $33 $27
Nth of a Kind (Projects #6-onward) $55 $33 $22
Industrial - Low Cost Tranche ($/tonne) ($/tonne) ($/tonne)
Pioneer- First of a Kind Projects $38 $33 $5
Projects #2-#5 $38 $33 $5
Nth of a Kind (Projects #6-onward) $38 $33 $5
Industrial - High Cost Tranche ($/tonne) ($/tonne) ($/tonne)
Pioneer- First of a Kind Projects $65 $33 $32
Projects #2-#5 $55 $33 $22
Nth of a Kind (Projects #6-onward) $45 $33 $12
Analytical Study
• “Cost gap” analysis– Determine difference between willingness to pay by EOR
operators and cost of carbon capture, storage and transportation• “Revenue neutrality” analysis
– Compare cost of new CO2-EOR incentives with new federal revenues directly resulting from incremental new CO2-EOR production in the form of royalties on Federal lands plus severance and corporate income taxes.
Analysis suggests “revenue neutrality” within 10-year window and significant net positive revenues over long term
Program revenues greatly exceed costs over time…
State-level Recommendations
Model complementary policies to federal incentives• Severance tax reduction and/or extension of existing severance tax
reduction for oil produced with CO2 from anthropogenic sources. • Cost recovery approval for regulated entities. • Off-take agreements. • Tax credits, exemptions, or abatements for CO2 capture
• State-level bonding of CO2 pipeline projects and/or capture and compression facilities.
• Inclusion of CCS with EOR in electricity portfolio standards.
See full report to see examples from specific states
Adjusting annual tax credit values based on oil price changes
• NEORI recently adopted a mechanism to adjust annual tax credit values based on oil price changes
• When oil prices rise, the tax credit value falls– Reduces the federal support when market conditions are more favorable
• When oil prices fall, the tax credit value rises– Ensures that a project developer receives a sufficient incentive when CO2
sales revenue falls
• If legislative scorekeepers assume oil prices will rise over time, this provision could help with scoring
Adjusting annual tax credit values based on oil price changes
• The 113th Congress could consider 45Q expansion in the context of tax reform
• Many states can act
• You can help
Prognosis
CONTACTS:
Judi Greenwald, C2ES(703) 516-4146
Brad Crabtree, GPI(701) 647-2041
www.neori.org
BACK-UP SLIDES
U.S. Department of Energy (2011), Improving Domestic Energy Security and Lowering CO2 Emissions with “Next Generation” CO2-Enhanced Oil Recovery (CO2-EOR), DOE/NETL-2011/1504, citing Advanced Resources International (2011). 31
Source Type (Location) CO2 Supply (Mt/year) Natural Anthropogenic
Colorado, New Mexico (Geologic) 33 - Texas (Gas Processing) - 6.4 Wyoming (Gas Processing) - 6.6 Mississippi (Geologic) 22 - Oklahoma (Fertilizer Plant) - 0.7 Michigan (Gas Processing) - 0.3 North Dakota (Coal Gasification) - 3
Total 55 17
Current CO2 Supply for EOR
• Some CO2 for EOR already comes from industrial sources
• Today, the U.S. EOR industry uses 72 million tonnes of CO2 per year — profitably and without serious reported injuries, accidents or environmental harm.
CO2-EOR production doubles within 20 years…
NEORI Analysis suggests significant oil production and revenues over time…
Time Phase
Cumulative Incremental CO2-EOR
Oil Production (Barrels)
Cumulative Net Present Value ($)
CumulativeCO2 Storage
(tonnes)
2013-2022 400 million $2 billion
~4 billion2023-2032 2.5 billion $31 billion
2033-2042 6 billion $73 billion
2043-2052 9 billion $100 billion
Oil production potential from CO2-EOR is vast…
Source: U.S. Department of Energy (2011), Improving Domestic Energy Security and Lowering CO2 Emissions with “Next Generation” CO2-Enhanced Oil Recovery (CO2-EOR), DOE/NETL-2011/1504.
34
Incremental Technically Recoverable Oil
(Billion Barrels)
Incremental Economically Recoverable Oil
(Billion Barrels)
Best Practices Next Generation Best Practices Next Generation
Lower 48 Onshore 55.7 104.4 24.3 60.3
Total 61.5 136.6 29.6 67.2
Projected CO2-EOR Resources:
• An additional 26-61 billion barrels of oil could economically be recovered with today’s EOR technologies, potentially more than doubling current U.S. proven reserves.
• Moreover, “next generation” EOR technology could yield substantially greater gains, potentially increasing recoverable domestic oil from EOR to 67-137 billion barrels, and storing 20-45 billion metric tons of CO2 that would otherwise be released into the atmosphere in the long term.
Enhancements to 45Q Tax Credit
To avoid stalling important commercial CO2 capture projects under development, there is an urgent need to improve the functionality and financial certainty of the 45Q federal incentive. Key Elements:
• Designate the owner of the CO2 capture facility as the primary taxpayer; • Establish a registration, credit allocation, and certification process; • Change the recapture provision to ensure that any regulations issued
after the disposal or use of CO2 shall not enable the federal government to recapture credits that were awarded based on regulations that existed at that time; and
• Authorize limited transferability of the credit within the CO2 chain of custody, from the primary taxpayer to the entity responsible for disposing of the CO2
Existing state-level policies to support CO2-EOR/CCS
Proposed Government-Provided Incentives to Promote the Capture and Use of CO2 for EOR
GCCS Institute Webinar - June 25, 2013
Ben YamagataCoal Utilization Research Council
(CURC)
ADA-Environmental SolutionsAir Products and ChemicalsAlpha Natural ResourcesAlstom Power, Inc.American Coal Council American Coalition for Clean Coal ElectricityAmerican Electric Power**Anglo American Thermal CoalArch Coal, Inc.*The Babcock & Wilcox CompanyBattelle/Pacific Northwest National Laboratory Caterpillar Global MiningCenter for Coal Technology Research Cloud Peak Energy**CONSOL Energy, Inc.Duke Energy ServicesEdison Electric Institute (EEI)Electric Power Research Institute (EPRI)Energy Industries of OhioFutureGen Industrial AllianceGlobal CCS InstituteGeneral Electric CompanyThe Greater Pittsburgh Chamber of CommerceIllinois Coal AssociationIllinois Department of Commerce and Economic OpportunityKentucky Coal AssociationKentucky Office of Energy Policy
LG&E Energy
Mitsubishi Heavy Industries AmericaLehigh UniversityThe Linde GroupNational Rural Electric Cooperative AssociationOhio State UniversityPeabody EnergyPennsylvania Coal AlliancePenn State UniversityPraxair, Inc.Pratt & Whitney RocketdyneSchlumberger Carbon ServicesSouthern Company*Southern Illinois UniversityState of Ohio, Air Quality Development AuthorityTenaska, Inc.Tri-State Generation & Transmission AssociationUnited Mine Workers of AmericaUniversity of KentuckyUniversity of North Dakota’s Energy & Environmental Research CenterUniversity of Texas @ AustinUniversity of UtahUniversity of WyomingWest Virginia Coal AssociationWest Virginia UniversityWestern Research InstituteWyoming Mining Association
Who Are CURC’s Members?
Companies in red indicate 2013 Steering Committee Members* CURC 2013 Co-chairs ** CURC 2013 Vice-Chairs
Over time the electricity mix shifts toward natural gas and renewables, but coal remains the largest fuel source
Realities --• Coal provides reliable, affordable power to the US population and economy• Abundant and inexpensive natural gas, stringent and expensive
environmental regulations, and projected tepid growth in demand is resulting in retirements/idling of coal and replacement, if any, with natural gas
• A requirement to reduce CO2 emissions from existing units may mean more retirements
Why the 3-Part Program --Coal – a primary energy resource -- is essential to the US economy. This proposal defines the application of technology as the way to insure the use of coal
Based on DOE/EIA AEO 2013er
CU
RC
’s T
hre
e P
art
Tech
nolo
gy P
rogra
m
Address efficiency, reliability, flexibility of the existing coal
fleet; improve/apply CO2 & other criteria pollutant mitigation measures
Near term program –
Existing coal fleet
Financial incentives program to encourage coal-fueled facilities (CTL, SNG, chemicals, electricity) to capture and use CO2 to recover crude oil
Through accelerated permitting and regulatory clarification incentivize the construction of advanced coal power plants that will install CCS when commercially available
RD&D program to improve today’s coal-use technologies (“evolutionary” technologies)
Initiate R&D programs for transformational technologies (“revolutionary” technologies)
Long term program–
Technologies for the future
A 3-Part Technology Program to take Coal from 2013 to 2050 & Beyond
2013 2025 2050
Mid term program –
Encourage new coal builds using state-of-the-art technologies
CU
RC
’s T
hre
e P
art
Tech
nolo
gy P
rogra
m
Address efficiency, reliability, flexibility of the existing coal
fleet; improve/apply CO2 & other criteria pollutant mitigation measures
Near term program –
Existing coal fleet
Financial incentives program to encourage coal-fueled facilities (CTL, SNG, chemicals, electricity) to capture and use CO2 to recover crude oil
Through accelerated permitting and regulatory clarification incentivize the construction of advanced coal power plants that will install CCS when commercially available
RD&D program to improve today’s coal-use technologies (“evolutionary” technologies)
Initiate R&D programs for transformational technologies (“revolutionary” technologies)
Long term program–
Technologies for the future
The Mid-term Program for CO2 recovery
2013 2025 2050
Mid term program –
Encourage new coal builds using state-of-the-art technologies
The CO2 Benefit from Improved Plant Efficiency
43
Each one percent Improvement yields two percent less CO2 emitted
Note: the “supercritical” units at 39% to 40% net efficiency up to 42% are also often defined as “ultra supercritical” units; A-USC are “advanced ultra supercritical”
Source of chart: Babcock Power
10 GW ultra supercritical program
10 GW Advanced Coal Power Plant Projects with Subsequent CO2 Capture Installation
Key Objectives of the Advanced Coal Power Plant Program:
• Facilitate the early construction and operation of advanced coal plants that achieve ultra supercritical temperature & pressure conditions (40+% conversion efficiency)
• Equip with advanced pollution controls to achieve near zero emissions (fitted with advanced clean coal technologies)
• Committed to installing carbon capture systems when such technology is deemed commercially available
Mechanisms that could be authorized to provide incentives for the construction of ultra supercritical power plants:• “safe harbor” for qualifying advanced
coal plants so that once constructed they are not subject to additional regulatory requirements
• accelerated permitting and mechanisms to minimize regulatory delays
• tax incentives granted if carbon capture system is installed on the new unit at time of initial construction
How Does the Program Work?
The tax receipts and other royalty revenues received by the federal government for the crude oil recovered by use of coal-derived CO2 is sufficient to help offset the financial incentive that would be provided to the CO2 capture entity participating in this program.
The CURC Accelerated CO2/EOR Program
What is the CO2-EOR Program? It is a coal-based demonstration program (5-10 GW(e)) that provides financial assistance for carbon dioxide capture from existing or new coal fueled facilities for sale and use in domestic enhanced oil recovery (EOR) operations.
Today – Capture Costs Greatly Exceed the Price Oil Producers Can Pay
46
Source: DOE/NETL CO2 Capture and Storage RD&D Roadmap, December 2010.
PROBLEM: $20-40/ton payment for CO2 by EOR producer does not cover $70-100 capture cost
Key Features of the Accelerated CO2/EOR Program
• 10 years and 5 to 10 GW(e) of facilities using coal
• Can be used to support on-going CCS demonstrations, next set of plants using current CCS technology & new technology from the CURC/ERPI Roadmap
• Focused only on new & existing coal (and pet coke) projects that capture CO2 for EOR
• Qualifying projects receive assistance for 15 years
• Limited to the CO2 capture system-only for retrofit or greenfield projects
• Injection wells classified as Class II EOR wells for purposes of a UIC permit under the SDWA
• Tax receipts/revenues and royalties identified to support (“pay for”) the CO2 subsidy – no added taxes o Cumulative federal taxes and royalties received
will “pay back” incentives provided in about 10 years for retrofit and 5-6 years for greenfield cases (initial federal funding required)
o Cumulative federal revenues are 3-5 times the cumulative subsidy in nominal dollars after 30 years
Captured CO2 Sold for EOR for Energy and Jobs
Domestic Oil Supplies and CO2 Demand (Storage) Volumes from “Next Generation” CO2-EOR Technology
Benefits of CO2-EOR
• Improves Balance of Trade$3.5 trillion over 60 years
• Promotes Energy SecurityReduces imports by 2 MMbpd1
• Increases Domestic Activity $60 Billion/year (wages, royalties, taxes, profits)1
• Creates Jobs622,000 new jobs1
1 Source : NETL Report, “Improving Domestic Energy Security and Lowering CO2 Emissions with “Next Generation” CO2 EOR,” June 2011
Alternative to a Fixed Subsidy or Tax related incentive: A Variable Subsidy
CO2 prices are linked contractually to oil prices
Uncertainty in future oil prices (and, thus, CO2 revenue) affects financing, increasing cost of capital for these capital-intensive projects
Fixed subsidy could over- or under-subsidize project depending on future oil prices
Variable subsidy reduces CO2 price risk and facilitates project financing, thus reducing capture cost and required subsidy
Potential for direct payment to government in addition to “income tax and royalty” revenue
CURC Accelerated CO2/EOR Program jointly developed by CURC and CONSOL Energy (Dr. Frank Burke)
Structure of Bid
Applicant bids on a subsidy for CO2 capture for EOR
Bid consists of two elements which are known to the project developer
• CO2 strike price based on the project’s revenue requirement for CO2 capture
• Rate (CO2 price as a function of oil price) used to calculate a CO2 market price based on a publicly available oil price index (e.g., West Texas Intermediate (WTI) crude)
CURC Accelerated CO2/EOR Program jointly developed by CURC and CONSOL Energy (Dr. Frank Burke)
Subsidy/Repayment Mechanism
At a calculated market CO2 price below the strike price, the project receives a subsidy based on the difference between the strike price and the market price
At a calculated market CO2 price above the strike price, the project pays the government an amount based on the difference between the market price and the strike price
Subsidy/repayment would be reconciled over some period (annually?) CURC Accelerated CO2/EOR Program jointly developed by CURC and CONSOL Energy (Dr. Frank Burke)
Conclude discussions within the CURC membership about the form and substance of the legislative provisions that could be considered to effectuate the 3 Part Program
Continue discussions with interested Members of Congress and staff to determine potential support for some, or all, of the
3 Part Program
Next Steps for the CURC 3 Part Program & the CO2/EOR programs
Thank you
Contact information:Ben Yamagata202-298-1800www.coal.org
Examples of how the Variable Subsidy would work
Attachments
Example: Case 1CO2 Strike Price Bid, $/tonne $60
CO2/Oil Price Rate Bid*, % 2.00%
Oil Price Index, $/bbl
Calculated CO2
market price, $/tonne
Subsidy / Repayment, $/tonne CO2
60 $23 $37
80 $30 $30
100 $38 $22
120 $45 $15
140 $53 $7
160 $61 ($1)
180 $68 ($8)
* In the CO2/Oil price ratio, the CO2 price is in units of $/MCF and the oil price is in units of $/bbl. If oil is $100/bbl, for example, the CO2 price in this example is $2/MCF, or $38/tonne.
CURC Accelerated CO2/EOR Program jointly developed by CURC and CONSOL Energy (Dr. Frank Burke)
Example: Case 2
CO2 Strike Price Bid, $/tonne $50 CO2/Oil Price Rate Bid, % 2.5%
Oil Price Index, $/bbl
Calculated CO2
market price, $/tonne
Subsidy / Repayment, $/tonne CO2
60 $28 $22
80 $38 $12
100 $47 $3
120 $57 ($7)
140 $66 ($16)
160 $76 ($26)
180 $85 ($35)
CURC Accelerated CO2/EOR Program jointly developed by CURC and CONSOL Energy (Dr. Frank Burke)
Example: Case 3
CO2 Strike Price Bid, $/tonne $60
CO2/Oil Price Rate Bid, % $0.5 + 2.5%
Oil Price Index, $/bbl
Calculated CO2 market price,
$/tonne
Subsidy / Repayment, $/tonne CO2
60 $38 $22
80 $47 $13
100 $57 $3
120 $66 ($6)
140 $76 ($16)
160 $85 ($25)
180 $95 ($35)
CURC Accelerated CO2/EOR Program jointly developed by CURC and CONSOL Energy (Dr. Frank Burke)
Comparison of Bids
Case 1 2 3CO2 Strike Price Bid, $/tonne $60 $50 $60
CO2/Oil Price Rate Bid, % 2.00% 2.50% $0.5 + 2.50%
Oil Price Index, $/bbl Subsidy / Repayment, $/tonne CO2
60 $37.27 $21.59 $22.12
80 $29.70 $12.12 $12.65
100 $22.12 $2.65 $3.18
120 $14.55 ($6.82) ($6.29)
140 $6.97 ($16.29) ($15.76)
160 ($0.61) ($25.76) ($25.23)
180 ($8.18) ($35.23) ($34.70)
CURC Accelerated CO2/EOR Program jointly developed by CURC and CONSOL Energy (Dr. Frank Burke)
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