air & waste management association september 13, 2012
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U.S. Environmental Policy Issues and the Natural Gas Solution. Air & Waste Management Association September 13, 2012. The Cahaba Lilies Photo by Danny Smith. The First Issue: Climate Change Policy. A Menu of Options and Issues Associated with GHG Regulation. Carbon Offsets?. - PowerPoint PPT PresentationTRANSCRIPT
Air & Waste Management AssociationSeptember 13, 2012The Cahaba Lilies
Photo by Danny Smith
U.S. Environmental Policy U.S. Environmental Policy Issues and the Natural Gas Issues and the Natural Gas
SolutionSolution
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The First Issue: Climate Change Policy
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Carbon Tax?
Energy Efficiency Requirements?
GHG Cap & Trade Program?
Who do you regulate?
Renewable Portfolio Standards?Who are the Winners & Losers?
GHG Emission Limits?
Would a Federal Program Preempt Existing State Programs?
Carbon Offsets?
Carbon Sequestration?
A Menu of Options and Issues Associated with GHG Regulation
Full Fuel Cycles?
State Government Regulation of
GHG Emissions
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EPA’s Mandatory GHG Emission Reporting Rule
On September 22, 2009 EPA issued the Mandatory Reporting of Greenhouse Gases Rule. The rule requires reporting of annual GHG emissions from the following:
• Suppliers of fossil fuels and industrial greenhouse gases (GHGs)
• Manufacturers of vehicles and engines outside of the light duty sector
• Facilities that emit 25,000 metric tons or more of GHGs per year to submit annual reports to EPA.
The rule is intended to collect accurate and timely emissions data to guide future policy decisions on climate change.
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EPA’s Proposed New Electric Power Plant CO2 Standard
• Would limit CO2 emissions from new electric power plants to 1,000 pounds per megawatt-hour
• Would apply to new fossil fuel-fired power plants greater than 25 megawatts in size
• The end result will be that new fossil fuel-fired power plants will more than likely be fueled with natural gas rather than coal or utilize Carbon Sequestration technologies
• These proposed new rules were published on March 27, 2012 for 60 days public comment that was extended to June 25
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CO2 Capture and Sequestrationas a Climate Change Strategy
7Campfire Photo by Danny Smith
CO2 Geologic Storage
Injection Rock (Target Formation)
Cap Rock (Confining Formation)Sandstone with porositySandstone with porosityShale with no porosityShale with no porosity
Slide Source: Southern Company
Large CO2 geologic storage capacity is available
Deep Saline Sandstone Formations 100 – 10,000 GtC
Depleted Oil and Gas Reservoirs 100 – 1,000 GtC
Coal Seams 10 – 1,000 GtC
Mississippi-Alabama-Florida Sandstone Saline Formations
300 - 400 GtC
EOR utilization currently <0.1 GtC/yr
Sequestration Option
Capacity
(order of magnitude est.)
NOTE: “GtC” = Gigatonnes Carbon Slide Source: Southern Company
Enhanced Oil Recovery (EOR)
• Primary oil production uses reservoir pressure or pumping toget 10‐20% of OOIP.
• Secondary production, using water flooding gets another10‐20%.
• Injecting CO2 reduces the oil viscosity and, with water can drive the mixture to production wells with another 10‐20%.
•Some of the CO2 comes up with the oil and is recycled.
Source: USDOE/NETL
Slide Source: Southern Company
CO2Injection
CO2Injection
CO2 SourceCO2 SourceOil to MarketOil to Market
Production WellProduction Well
CO2Recycled
CO2Recycled
Oil BankOil Bank
Oil BankOil Bank
Swept AreaSwept Area
Saline ReservoirSaline Reservoir
Integrating CO2-EOR and Geologic Storage
1 ton CO2 = 1-3 bbl oil
Slide Source: Southern Company
The Cahaba Lilies in Alabama - Photo by Danny Smith
Natural Gas as a Climate Change Strategy
CLEAN ABUNDANT EFFICIENT
Natural Gas is a CleanerGenerating Choice
Approximately 23% of the electricity in the United States is generated from natural gas
Source: American Gas Association
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The Full Fuel Cycle is the Basis for Sustainable Energy Choices
U.S. natural gas reserves are growing with more new gas discovered every year. Analysts believe enough future supply exists to meet America’s diverse energy needsfor 100 years.
Natural Gas is Abundant in the USA
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U.S. Natural Gas Production, 1990-2035 (trillion cubic feet)
0
5
10
15
20
25
30
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035
History 2010 Projections
Shale gas
Non-associated onshore
Non-associated offshore
Coalbed methane
Tight gasAlaska
Associated with oil
23%
26%
9%
10%
9%
49%
21%
7%
7%1%
7%9%
2%
21%0
5
10
15
20
25
30
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035
History 2010 Projections
Shale gas
Non-associated onshore
Non-associated offshore
Coalbed methane
Tight gasAlaska
Associated with oil
23%
26%
9%
10%
9%
49%
21%
7%
7%1%
7%9%
2%
21%
2012 Annual Energy Outlook Early Release, Energy Information Administration.
U.S. and Canada Shale Basins
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Source: National Energy Board, Understanding Canadian Shale Gas, 2009.
Global Shale Resources
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Source: EIA Annual Energy Outlook 2011
Shale Gas ProductionTechnologies such as directional (horizontal) drilling and hydraulic fracturing have unlocked the potential for gas development from shale rocks
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The Second Issue: New EPA Hazardous Air
Emission Standards for Electric Power Plants
EPA’s New Mercury and Air Toxic (Utility MACT) Standards for
Electric Power PlantsIssued February 16, 2012
• These Standards will reduce mercury and various other air toxic emissions from new and existing coal- and oil-fired power plants
• Emissions-control technology options include:• Scrubbers• Electrostatic Precipitators• Fabric Filters• Activated Carbon Injection / Dry Sorbent Injection• Blending or Switching Fuels (i.e. natural gas!)
• Compliance time up to 4 years• Natural Gas Fired Power Plants are not Effected by these Standards!
In the U.S., Power Plants Emit:
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60% of the SO2
20% of the chromium13% of the NOx
organics, dioxins/furans, and others
50% of the mercury
over 50% of many acid gases
30% ofthe nickel
60% of the arsenic
Sources: NEI Trends Data (2009) and IPM (2010) (SO2, NOX); Proposed toxics rule modeling platform, based on inventory used for 2005 NATA (Hg);Inventory used for 2005 NATA (other toxics)
Source: EPA
23Source: National Electric Energy Data System (NEEDS 4.10) (EPA, December 2010) Source: EPA
The New Standards Affect 1,350 Coal and Oil-Fired Units at 525 Power Plants
Natural Gas Power Plants are not affected by these new standards
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The Third Issue: Proposed EPA Regulation of
Coal Ash
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Proposed EPA Regulation of Coal Combustion Residuals (Coal Ash)
Source: Tennessee Department of Health
December 22, 2008TVA Kingston Power PlantFailure of a Fly Ash Pond DamApproximately 5.4 Million cubic yards of fly ash sludge was released into a branch of the Emory River
Coal Combustion Ash
Bottom Ash: Falls to the bottom of the furnace
Fly Ash: Collected by electrostatic precipitators
Source: Georgia Power Company
Typical Coal Ash Handling Facilities
Ash Landfill Ash Pond
Source: Georgia Power Company
Proposed EPA Options for Regulating Coal Combustion Residuals (Coal Ash)
Option #1: Treat it as Hazardous Waste (Expensive!!)
Option #2: Treat it as non-hazardous waste and impose new pond design requirements
NOTE: Coal combustion Residuals are currently exempt from federal regulation and are only subject to state and local requirements
The Conclusion –
Natural Gas Wins
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Questions?
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The Cahaba Lilies in Alabama Photo by Danny Smith