The International Seminar: Perspective for Near-tern CCS Deployment in Brazil

Porto Alegre, BrazilOctober 18, 2007

The International Seminar: Perspective for Near-tern CCS Deployment in Brazil

Porto Alegre, BrazilOctober 18, 2007

Basin Electric Power Cooperative’s Approach to

CO2 Capture, Transport and Sequestration Technologies

Fred Stern – DGC Executive Business/Technology Advisor

Basin Electric Power Cooperative’s Approach to

CO2 Capture, Transport and Sequestration Technologies

Fred Stern – DGC Executive Business/Technology Advisor

BASIN ELECTRICPOWER COOPERATIVE

A Touchstone Energy® Cooperative

Climate ChangeClimate Change

Coal is ‘King’ of Electrical GenerationCoal is ‘King’ of Electrical Generation

• Coal-fired plants account for 50% of US production now

• Projected coal demand increase of 4% per year

• Projected electrical demand increase of 39% by 2030

• By 2030, coal will fuel 57% of US electrical production

• Coal-fired plants account for 50% of US production now

• Projected coal demand increase of 4% per year

• Projected electrical demand increase of 39% by 2030

• By 2030, coal will fuel 57% of US electrical production

BEPC Member System Energy Requirements by ClassBEPC Member System Energy Requirements by Class19

71

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

LossesOther SalesIrrigationOil PipelineBio-DieselEthanolCBMCoalOilLarge CommercialSmall CommercialResidential

ProjectedActual

MillionMWh

Coal’s ImageCoal’s Image

• Viewed as ‘dirty’ in the past

• Now viewed as the # 1 contributor to GHG and global warming

• Regardless of our beliefs, the debate is largely over –the public and policy makers demanding action

• BEPC believes CO2 regulations are imminent

• BEPC believes carbon management techniques are necessary to continue use of coal

• Viewed as ‘dirty’ in the past

• Now viewed as the # 1 contributor to GHG and global warming

• Regardless of our beliefs, the debate is largely over –the public and policy makers demanding action

• BEPC believes CO2 regulations are imminent

• BEPC believes carbon management techniques are necessary to continue use of coal

What is BEPC doing with CO2?What is BEPC doing with CO2?

• BEPC’s subsidiary, Dakota Gasification, began capturing and sequestering CO2 in 2000

• To date, captured 10 million tons and transported for EOR recovery process at Weyburn and Midale Oil Fields in Saskatchewan, Canada

• DGC expects to capture in excess of 3 million tons CO2 per year

• BEPC’s next step – Pursue a demonstration project to capture CO2 at the Antelope Valley Station and sequester the CO2 by leveraging DGC’s pipeline and knowledge

• BEPC’s subsidiary, Dakota Gasification, began capturing and sequestering CO2 in 2000

• To date, captured 10 million tons and transported for EOR recovery process at Weyburn and Midale Oil Fields in Saskatchewan, Canada

• DGC expects to capture in excess of 3 million tons CO2 per year

• BEPC’s next step – Pursue a demonstration project to capture CO2 at the Antelope Valley Station and sequester the CO2 by leveraging DGC’s pipeline and knowledge

CO2 Capture and Sequestrationat

Dakota Gasification Company

CO2 Capture and Sequestrationat

Dakota Gasification Company

49% Reduction in CO2

Emissions Since 1999!

HOW?

49% Reduction in CO2

Emissions Since 1999!

HOW?

CO2 Emissions Reductionat DGC’s Synfuels Plant

CO2 Emissions Reductionat DGC’s Synfuels Plant

2000 20072000 2007

150,000 cars=

49% reduction in CO2 emissions

MIXED GAS CONDENSEDPROCESS

WATER TOWATER

TREATMENT BOILERFEED

WATER

WASTE HEATRECOVERY

HIGH PRESSURESTEAM TO PLANTSTEAM SYSTEM

CO2COMPRESSION

STEAMTO PLANT

STEAMSYSTEM

COWASTE

GAS2

BOILERFEED

WATER

FGD SCRUBBER

WATER TOCOOLING TOWER

TAR OIL

OXYGENPLANT

RAW GAS

SYNTHESIS GAS

COOLEDRAW GAS

NAPHTHA

OXYGEN GRAVITYSEPARATION

CONDENSEDPROCESS

WATER

RAWGAS

LIQUOR

KRYPTON/XENON

LIQUIDNITROGEN

BYPRODUCTPURIFICATION

PHENOL

AMMONIUMSULFATE

CRESYLIC ACID

STACK

AMMONIA

Great Plains Synfuels Plant Process Flow

Great Plains Synfuels Plant Great Plains Synfuels Plant Process FlowProcess Flow

CO2 CompressorsCO2 Compressors

• Manufactured by GHH BORSIG (now MAN Turbomaschinen AG).

• Serial Numbers 1 & 2.

• Three 19,500 hp motors• 55 million scf per day each• 2700 psig discharge pressure

CO2 CompressorsCO2 Compressors

Compression ChallengesCompression Challenges

• Mechanical integrity and balancing

• Materials of construction for seals

• Control system

• Interstage cooling

• Contaminants in gas stream

• Mechanical integrity and balancing

• Materials of construction for seals

• Control system

• Interstage cooling

• Contaminants in gas stream

CO2 PipelineCO2 Pipeline

• 205 miles

• 14” and 12” carbon steel pipe

• MAOP 2700 psig& 2964 psig

• Strategically routed through Williston Basin oil fields

Carbon Dioxide - 153 mmscfdCarbon Dioxide - 153 mmscfd

Used in enhanced oil recovery

Transport ChallengesTransport Challenges

• Permits for pipeline• Selection of lubricants and gaskets• Safety requirements of CO2 transport• Importance of proper routing and pipeline

design

• Permits for pipeline• Selection of lubricants and gaskets• Safety requirements of CO2 transport• Importance of proper routing and pipeline

design

CO2

Stack to StorageIndustrial Emissions to Value Creation

CO2

AVS CO2 Capture Demonstration Project Concept

AVS CO2 Capture Demonstration Project Concept

• Capture about 55 mmscfd of CO2 post combustion

• Treat CO2 at AVS to pipeline quality

• Compress CO2 at AVS or DGC

• Use existing DGC pipeline and operation to transport CO2

• Issued Request for Proposals in June 2007

• Capture about 55 mmscfd of CO2 post combustion

• Treat CO2 at AVS to pipeline quality

• Compress CO2 at AVS or DGC

• Use existing DGC pipeline and operation to transport CO2

• Issued Request for Proposals in June 2007

Capture Technology is Major Hurdle

Capture Technology is Major Hurdle

• Proven capture technology not yet available commercially

• Several companies in various R&D phases

• BEPC seeking to develop partnership or alliance with a promising technology vendor

• Proven capture technology not yet available commercially

• Several companies in various R&D phases

• BEPC seeking to develop partnership or alliance with a promising technology vendor

Technologies to ConsiderTechnologies to Consider

• MEA (amine) absorption

• Chilled ammonia absorption

• Membrane separation

• Oxy-fuel combustion

• Physical adsorption

• Cryogenics

• At this time, MEA and chilled ammonia are only viable choices

• MEA (amine) absorption

• Chilled ammonia absorption

• Membrane separation

• Oxy-fuel combustion

• Physical adsorption

• Cryogenics

• At this time, MEA and chilled ammonia are only viable choices

Transport ChallengesTransport Challenges

• Permits for pipeline• Selection of lubricants and gaskets• Safety requirements regarding to CO2 • Importance of proper routing and pipeline

design• DOT requires monitoring of pipeline

integrity every 5 years (smart pig)

• Permits for pipeline• Selection of lubricants and gaskets• Safety requirements regarding to CO2 • Importance of proper routing and pipeline

design• DOT requires monitoring of pipeline

integrity every 5 years (smart pig)

Vendors Responding to RFPVendors Responding to RFP

• Alstom Environmental – chilled ammonia and amine based

• PowerSpan Corp. – chilled ammonia

• HTC Purenergy – amine based

• CanSolv Techologies – amine based

• Mitsubishi Heavy Ind. – amine based

• Fluor – amine based

• Alstom Environmental – chilled ammonia and amine based

• PowerSpan Corp. – chilled ammonia

• HTC Purenergy – amine based

• CanSolv Techologies – amine based

• Mitsubishi Heavy Ind. – amine based

• Fluor – amine based

ChallengesChallenges

• Additional Sox removal may be required• Process cooling and heating will be very parasitic• Water balance issues• Solvent replacement• Materials of construction• High capital and operating costs• Estimated cost of capture range from $20 to $60

per ton

• Additional Sox removal may be required• Process cooling and heating will be very parasitic• Water balance issues• Solvent replacement• Materials of construction• High capital and operating costs• Estimated cost of capture range from $20 to $60

per ton

Cost and Risk ReductionCost and Risk Reduction

• With DGC pipeline location, ability to sell additional CO2 for EOR to new customers or existing customers is very good

• Seek DOE funding

• Seek support or participation from State of ND and other area lignite users and producers

• Seek to have the project recognized as a PCOR– Phase III project

• With DGC pipeline location, ability to sell additional CO2 for EOR to new customers or existing customers is very good

• Seek DOE funding

• Seek support or participation from State of ND and other area lignite users and producers

• Seek to have the project recognized as a PCOR– Phase III project

Regional Carbon Regional Carbon Sequestration PartnershipsSequestration Partnerships

Plains Carbon Dioxide Reduction (PCOR) Phase III Project

Plains Carbon Dioxide Reduction (PCOR) Phase III Project

• Implementation of large volume sequestration tests to demonstrate the safe, effective, and permanent storage of CO2 in different geological formations in North America that could offset 50% of current CO2 emissions in each region for the next 100 years.

• DOE funded

• Funding of up to $67 million for each region

• Implementation of large volume sequestration tests to demonstrate the safe, effective, and permanent storage of CO2 in different geological formations in North America that could offset 50% of current CO2 emissions in each region for the next 100 years.

• DOE funded

• Funding of up to $67 million for each region

Coal Fields

Evaluated Wyodak–Anderson, Ardley, and Harmon-Hanson coals.

CO2 sequestration capacity estimated to date: >8 billion tons

17 Tcf of methane potential from ECBM in these seams.

Don’t need supercritical CO2, and purity of stream isn’t an issue (significant N may be good).

ND

Estimates based on data provided by states, provinces, and USGS.

Ardley estimates by Bachu, EUB.

Other estimates by Nelson, EERC.

SKAB

BC

MB

MT

SD

NE

MO

MN

WI

Ardley Coal

Harmon-Hanson Coal

Wyodak-Anderson Coal IA

Beaver Lodge, North DakotaBeaver Lodge, North DakotaBeaver Lodge, North Dakota

• CO2 in a deep oil reservoir – CO2 will be injected into an oil-bearing zone at great depth in the Beaver Lodge oil field.

• Minimum of 3000 tons of CO2 will be injected during demo period.

• CO2 in an unminable lignite seam –CO2 will be injected for both CO2sequestration and enhanced coalbed methane production.

• State of North Dakota is providing surface and mineral rights access; drilling scheduled spring 2007.

Lignite for CO2 Sequestration and ECBMLignite for COLignite for CO22 Sequestration and ECBMSequestration and ECBM

Phase III Target FormationsPhase III Target FormationsPhase III Target Formations

• Saline formations are primary target• Oil, gas, and coal are secondary− Must be

regionally significant• Representative of the region’s geology−

Capacity and availability must be high• Competent seals are a must• Structure must be conducive to trapping

• Saline formations are primary target• Oil, gas, and coal are secondary− Must be

regionally significant• Representative of the region’s geology−

Capacity and availability must be high• Competent seals are a must• Structure must be conducive to trapping

Next Steps forAVS CO2 Capture Project

Next Steps forNext Steps forAVS CO2 Capture ProjectAVS CO2 Capture Project

• Complete Review of Six Proposals• Make a ‘Go’ or ‘No Go’ Decision Based

on Economic and Technical Issues• If Project is a ‘Go’, Select Project Partner

in December and Conduct Feasibility and FEED Studies

• Project Could be On-Line in 2011

• Complete Review of Six Proposals• Make a ‘Go’ or ‘No Go’ Decision Based

on Economic and Technical Issues• If Project is a ‘Go’, Select Project Partner

in December and Conduct Feasibility and FEED Studies

• Project Could be On-Line in 2011

SummarySummarySummary

• The CO2 capture train has already left the station

• BEPC believes it is only a matter of time until CO2 regulations are enacted

• CO2 capture and sequestering will be costly and proven capture technology is not available

• BEPC is seeking to demonstrate capture technology in an economic manner

• CO2 capture – not a question of who and what, but rather when and how?

• The CO2 capture train has already left the station

• BEPC believes it is only a matter of time until CO2 regulations are enacted

• CO2 capture and sequestering will be costly and proven capture technology is not available

• BEPC is seeking to demonstrate capture technology in an economic manner

• CO2 capture – not a question of who and what, but rather when and how?

Thank you for your kind attention!

Questions ????

Thank you for your kind attention!

Questions ????