Dr. Darren J. MollotDirector Office of Clean Energy SystemDirector, Office of Clean Energy System

FOSSIL.ENERGY.GOVFOSSIL.ENERGY.GOV

“This country needs an all-out, all-of-the-above strategy that develops

every available source of American y fenergy. A strategy that’s cleaner, cheaper,

and full of new jobs.”

President Barack ObamaState of the Union Address

Photo courtesy of the White House, Pete Souza

January 24, 2012

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Then Now

P di Oil @ Hi h Hi hNo carbon legislation

Oil @ $100/bbl

Low cost natural gas from shale

CO2 capture costs must be driven

to business

Pending carbon

legislation

Oil @ $50 - $60 per barrel

High natural

gas prices

High cost of CO2

capture

Pending carbon

legislation

Oil @ $50 - $60 per barrel

High natural

gas prices

High cost of CO2

capture

No carbon legislation

Oil @ $100/bbl

Low cost natural gas from shale

CO2capture

costs must be driven

to business to business case

economics

CC S i b i d i h CO d

case economics

CCUS is a business-driven path to promote CO2 capture and storage

Strong incentive to pursue carbon capture and storage

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Benefits of CO EORBenefits of CO2-EOR• Improves Balance of Trade

$3.5 trillion over 60 yearsDomestic Oil Supplies and CO2 Demand (Storage)

Volumes enabled by CCUS Technology

• Promotes Energy SecurityReduces imports by 2 MMbpd1

• Increases Domestic Activity 3.5

4.0

er D

ay

Goal for reduced crude oil imports set forth by President Obama

$60 Billion/year (wages, royalties, taxes, profits)1

• Creates Jobs622 000 j b 1

2.5

3.0

usan

ds o

f Bar

rels

p

Potential for next generation CO2 EOR, 60 Bbbls over 60 years due to CO2 availability from CCUS and 1

CO2 EOR production trend

622,000 new jobs1

1 Source : NETL Report, “Improving Domestic Energy Security and Lowering CO2 Emissions with

1.5

2.0

oduc

tion

Rat

e, T

ho

Business-as-usual projection for

2 yexpanded geographic locations

0 10.20.3

0.40.5

0.60.70.8

0.9

Mill

ion

bpd

2

“Next Generation” CO2 EOR,” June 2011

0.5

1.0

CO2

EOR

Pro Business as usual projection for

CO2 EOR, 17 Bbbls over 60 years;limited by available CO2

volumes and limited geographic locations

0

0.1

1990 2000 2010 2020 2030

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-

1980 2000 2020 2040

60

50

mtC

O2/

yr 49

30

40 Doe Canyon

Jackson Dome

Sheep MountainRate

, MM

m

25

7

20

Sheep Mountain

Bravo Dome

McElmo Domeoduc

tion

R 25

90

10McElmo Dome

Pr

1

2

3

45

6

82000 2010

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Source: DiPietro, Balash, and Wallace. 2012

Hydrogen Energy CaliforniaIGCC with EOR

$408 Million - DOE$4 0 Billion - Total$4.0 Billion Total

Southern Company ServicesIGCC-Transport Gasifier

(CO2 to pipeline)$270 Million - DOE$2.67 Billion - Total

CCPI Round II

Summit Texas Clean EnergyIGCC with EOR

$450 Million - DOE$1.7 Billion - Total

CCPI Round III

ICCS (Area I)NRG EnergyPost Combustion with CO2

LeucadiaCO C t f M th lCapture and EOR

$167 Million – DOE$339 Million - Total

Air ProductsCO2 Capture from Steam

Methane Reformers with EOR$284 Million - DOE $431 Million - Total

CO2 Capture from Methanol with EOR

$261 Million - DOE $436 Million - Total

CO2 Pipelines

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$431 Million - Total

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RCSP Formation Type10

12

Big Sky Saline

MGSC Oil-bearing Saline Coal seam

2

5

6

43

1

1

BSCSPBSCSP

WESTCARBWESTCARB

PCORPCORMGSCMGSC MRCSPMRCSP

12

7

9

5

Coal seam

MRCSP Saline Oil-bearing

PCOR Oil-bearing

6

9

811

11

7

10

1

SWPSWP SECARBSECARB18

16

15526

Coal seam

SECARB Oil-bearing Saline Coal seam

12

14

1615

420

83

1317

19

14 SWP Oil-bearing Coal seam

WESTCARB Saline

19

20

13 17 18

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Fossil Energy’s CCS Program can effectively proceed, bridging the mid-term, by Using CO2

Matrix of Market and Policy Scenarios

EOR Revenues Needed commercially (CCUS)

The commercial opportunity for anthropogenic CO2, used for EOR, is expanding rapidly, offering i ifi t ll l it f tt i i th

for Coal to Compete?

t ? 2nd-Gen CCUS

Yes No

significant, parallel capacity for attaining the President’s Energy Security Goal

CO2 EOR revenues in the range of $32-46/tonnewill enable 2nd-Gen coal with CCUS to have COEn-

Base

d Co

sn

Emis

sion

s? 2 Gen CCUSneeds 20% COE reduction and ~$40/tonneCO2 revenue

No

will enable 2 Gen coal with CCUS to have COE parity with NGCC without CCUS.

For all scenarios, 2nd-Gen coal with CCUS has a lower COE than NGCC with CCUS at any given CO2

Regu

lati

onfo

r Car

bon

Transformational CCS needs 38% COE reduction

and no CO2

revenue

Yes

2

EOR price.

COE reductions are required to compete with other baseload options in the future electricity market (e.g., NGCC and nuclear). Percent

reductions are relative to today’s IGCC with CCS.

revenue

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y

Supplement existing oil and gas Supplement existing oil and gas next generation EOR projects

Continue next generation EOR R&D d l i diR&D and new geologic discovery

Initiate CO2 EOR class-based demonstration

Investigate CO2 conversion to other value-added products

A l t th t 2nd ti Accelerate path to 2nd generation CO2 capture technology

CCUS commercialization post-2020

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TheThe TheTheOO

The Environment The Environment

EnvironmentEnvironment EconomyEconomyOrOrAND AND The EconomyThe EconomyThe EconomyThe Economy

The Power of AND The Power of AND –– notnot OrOr

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RITERITEDOE’s Office of Fossil Energy (FE) National Energy Technology Laboratory (NETL) and Japan’s Research Institute of Innovative Technology for the Earth (RITE) signed a Cooperative Research and Development Agreement (CRADA) in May 2012 to test and jointly develop new carbon dioxide (CO2) sorbents. Have also partnered with 2SECARB for microseismicity

JCOALJCOAL NETL and Japan Coal Energy Center (JCOAL) are developing a CRADA to research oxy-fuel topics including chemical looping combustion and high-temperature materials corrosion issues.

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CSLFCSLF Japan and the US and are members of the CSLF, an international initiative to develop affordable CCUS technologies. Japan and US jointly involved in three recognized projects: IEA GHG Weyburn-Midale CO2 Monitoring and Storage Project, and the Regional Carbon Sequestration Partnerships Project.

I2CNERI2CNERInternational Institute for Carbon-Neutral Energy Research is working with the

DOE and other organizations and governments in an effort to: Characterize reservoir seal properties and the condition of supercritical CO2p p p 2

and displaced brine through understanding the integrated geochemical/geomechanical processes that result from CO2 injection

Develop models with predictive capabilities of site integrity over extended i d f tiperiods of time.

Provide the public with sound scientific data on CCS

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Hot Compressed Air Syngas Optimization

RTI Warm Gas Cleaning

Oxygen Raw FuelGas

APCI Oxygen Membrane25% O2 plant capital cost reduction

gin combination with

H2 Membrane 2.6 % pt efficiency increase

12% COE d

Hydrogen Rich

S

Clean Fuel Gas

Feed Systems

2 p p 2% decrease in COE 12% COE decrease

CO

Stream

Feedstock

Feed Systems

PWR Coal Feed Pump

Water Gas Shift Steam reduction

CO2

Gasifier Optimization & Plant Supporting Systems

PWR Coal Feed Pump 1.0% COE reduction

Improve RAM Refractory durability Slag model development Reduce syngas cooler fouling

Conditions monitoring Dynamic simulator CFD gasifier modeling

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y g g g g

Awarded 4 Projects (FY2011) – 1 year scoping studies– GE Dry Feed Pump– CO2 Slurry Feed (Electric Power Research Institute, Inc.)– CO2 Capture Integrated with Water Gas Shift (TDA Research; testing 2

partner NCCC)– Sour PSA to Remove CO2 and Sulfur (Air Products and Chemicals,

Inc.; testing partner EERC); g p )

Systems Analyses (ongoing)– Cost and Performance Baseline for TRIG™

PRB and ND Lignite Air Blown IGCC Texas Lignite Air and Oxygen Blown IGCC; Co-feeding of biomass

to meet 90% equivalent CCUSq– Dry feed gasifier systems: GE (PRB), Shell (high pressure), PWR and

Optimization (quench syngas cooler)

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Awarded 4 Projects (FY2011) – 1 year scoping studies– GE Dry Feed Pump– CO2 Slurry Feed (Electric Power Research Institute, Inc.)– CO2 Capture Integrated with Water Gas Shift (TDA Research; testing 2

partner NCCC)– Sour PSA to Remove CO2 and Sulfur (Air Products and Chemicals,

Inc.; testing partner EERC); g p )

Systems Analyses (ongoing)– Cost and Performance Baseline for TRIG™

PRB and ND Lignite Air Blown IGCC Texas Lignite Air and Oxygen Blown IGCC; Co-feeding of biomass

to meet 90% equivalent CCUSq– Dry feed gasifier systems: GE (PRB), Shell (high pressure), PWR and

Optimization (quench syngas cooler)

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Advance fundamental science to enable the technological breakthroughs that will facilitate the

transition to a hydrogen-powered society with efficienttransition to a hydrogen powered society with efficient CO2 capture and storage or its conversion to a useful

product

CO2 Separation and CO2 Separation and

Energy Analysis

Optimum and Intelligent

Hydrogen ProductionHydrogen Production

Hydrogen Storage Materials

Hydrogen Storage Materials

2 pConcentration2 pConcentration

ThermophysicalProperties H CO

ThermophysicalProperties H CO

Optimum and Intelligent Material Transformations

H2

Properties — H2, CO2Properties — H2, CO2

Sub-seabed CO SequestrationSub-seabed CO Sequestration

Next Generation Fuel Cells

Next Generation Fuel Cells

Hydrogen-Compatible Structural Materials

FOSSIL.ENERGY.GOVCO2 Geological StorageCO2 Geological StorageCO2 PlumeCO2 Plume

Sub-seabed CO2 SequestrationSub-seabed CO2 Sequestration

Negotiated a large network of US, European and Asian affiliateEuropean, and Asian affiliate faculty in first year

New research environment through “chalk-talk” engagement,through chalk talk engagement, videoconferencing, etc.

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Coordination with U.S. DOE's Hydrogen and Fuel Cells Program

R dbl kRoadblocks-Poorly understood chemomechanical interactions of CO2 with fluids, e.g. brine, and porous and fractured rock in relation to the frame of actual deployment

T Y i K Ch i K Shi hip y

- containment of supercritical CO2, capillary trapping, and dissolution in reservoir brine-Relationship of actual field data and statistical approaches to reservoir property model inputs

T. Yanagi K.Christensen K. Shitashima

Goals

p p y p

• Laboratory interrogation of fluid motion within complex-Characterize reservoir seal properties and the condition of supercritical

T. Tsuji K. Kitamura

within complex pore structures typically inaccessible to monitoring

p p pCO2 and displaced brine through understanding the integrated geochemical/geomechanical processes that result from CO2 injection -Develop models with predictive capabilities of site integrity over extended periods of time.

Technical approach

• Experiments will provide data on CO2migration and trapping in

p-Provide the public with sound scientific data on CCS

-Geology of Japan and time scales involved will feed back to define basic research

requirements-Constitutive models for chemistry and fracture of porous rock will be developed to capture the coupling between CO2 reaction, transport, and mechanics in order to

pp gporous structures to aid numerical simulations

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p p g 2 , p ,inform models with predictive capabilities of site integrity-Develop monitoring system of CO2 concentration and pH in the deep ocean/ground

Underwater Vehicle for Virtual Mooring