AERA & SHELL

WESTCARB Annual Meeting Portland, OR October 2004

Ventura Green Electricity, H2 and CO2 EOR

Scott L. Wellington, PhD

Research Advisor

Shell International E&P

Representing AERA and SHELL

AERA & SHELL

Presentation Outline:

• Vision

• Ventura Phase II Project Outline

• Key Elements

• Scope, Scaling and Cost

• Stakeholder Participation

• Future Technology Improvements

• Discussion

AERA & SHELL

Vision Clean Efficient and Responsible Fossil Fuel Usage

Capture, Reuse and/or Sequester CO2 and other Contaminants

Increase Efficiency and the use of Renewable Energy Sources

Bio, Wind and Wave .......

Include All Stakeholders

Success Depends on Public and Private Support

Develop a Real, Transparent and Measurable Plan

“Staircase” the Project to communicate timing and goals

Get Going Today on Making the Plan into Reality

Phase II Should Demonstrate a Significant Step Toward the Vision

AERA & SHELL

Green power for localuse and to grid

H2

CO2

Oil topipeline

Gas

HydrogenUnit

SeparatorCom-

pressor

Ventura Oil Reservoir

GasTurbine

Hydrogen to highway

CO2 EOR / storage

Green Power, HGreen Power, H22 and Oil minus CO and Oil minus CO22

AERA & SHELL

Scope, Scaling, Cost and Opportunity:

• Demonstrate the Integrated Clean Power System

• Use “Catalogue-Ready”Components

• The Project Scale must be Credible

• Large Enough to Confidently Scale Expansions

• Small Enough that it is Manageable in Phase II

• Publish (Share) the Project Data

• Future Technology Improvements to Cut Costs

• Expand and Apply in US and Beyond

AERA & SHELL

Green power for localuse and to grid

H2

CO2

Oil topipeline

Gas

HydrogenUnit

SeparatorCom-

pressor

Ventura Oil Reservoir

GasTurbine

Hydrogen to highway

CO2 to Storage

Power plus HPower plus H22 and Oil minus CO and Oil minus CO22

AERA & SHELL

Scaling Discussion:

Fuel Composition & Volume

H2 Purity & Volume

H2 Manufacturing

Technology

Oil Recovery Volume

CO2 Purity & Volume

Power Gen. Capacity

H2 Turbine Availability

AERA & SHELL

H2 Volume to CO2 Volume Relationship

The Majority of H2 is Produced by Steam Methane Reforming

CH4 + 2H2O = CO2 + 4H2

The method Ideally produces 4 H2 for every CO2

Relative Demand Example:

~ 6 Mscf CO2 / bbl of Light Oil Recovered

On a Recovered Oil Basis one obtains:

24 (= 6 X 4) times as much H2 as CO2

AERA & SHELL

CO2 Oil Recovery Scaling Example:

• Assume Oil Production = 15,000 bbl/day

1% CO2 EOR Increase is Too Small

10% is Probably Acceptable

> 10% more like 30% is Desirable

• Assume 6 Mscf CO2 / bbl of Oil

10% Increase ( 1,500 bbl/d ) Requires 9,000 Mscf / day of CO2 injection

AERA & SHELL

Steam Reforming the 5.3 MMscfd of Associated Gas (74% methane, 8% ethane, 8% propane, …)

Yields 17 MMscf/d of Hydrogen

23,000 kWe of “Green” Power

6,600 Mscf/d CO2 and 1,100 bbl/d Oil

HMU with CO2 Capture ~ $10 million

H2 Turbine ~ $10 million

CO2 Compressor Cost ~ $15 million

HMU = Hydrogen Manufacturing Unit

AERA & SHELL

Future Improvements Post Phase II:

The Ventura Project could be Expandedin the Future using New Technologies:

Less Expensive H2/CO2 Manufacture and Separation –

• Membrane Air Separation?

• Hydrogen/CO2 Membrane Separation?

Less Expensive Compression – “Thermal Compression”?

More Efficient Electrical Generation – Fuels Cells?

Gasification of Bio-Sourced HCs to Produce H2 and CO2?

AERA & SHELL

Green power for localuse and to grid

H2

CO2

Oil topipeline

Gas

HydrogenUnit

SeparatorCom-

pressor

Ventura Oil Reservoir

GasTurbine

Hydrogen to highway

CO2 EOR / storage

Green Power, HGreen Power, H22 and Oil minus CO and Oil minus CO22

AERA & SHELL

Ventura Phase II Green Power & CO2 EOR Do we Agree to Proceed?

Refine Equipment List, Cost and Timing

Add Field Implementation Requirements

Share Results with all Stakeholders – Proceed?

Appoint Project Manager and Team

Prepare Project Grant/Funding Request

Develop Detailed Project Plan – Proceed?

Execute Build Plan with Report Schedule

Operate Project including Periodic Documentation

Complete with Final Reports and Recommendations

AERA & SHELL

Challenges and Opportunities:

• Technical

Scope and Scale

Complete Detailed Equipment and Field Engineering Cost Analysis

• WESTCARB Decision on Phase II Project

Project Leader and Team to Develop Plan

Alignment with DoE

Stakeholder Acceptance

Permitting

Timing