CO2 Capture & EOR Potential For: Wyoming Pipeline Authority July 25, 2006 By: PLASMA, Inc. Rich Schuller PLASMA, Inc. 58 West Quartz Butte, MT 59701 406-782-7756 Presentation PLASMA CO2 Capture Technology ready for Commercial Application: • Ultra High Sulfur & Nitrogen recovery from solid sulfurous fuels – Air Fired Emissive Plant. • Captures high quality CO2 from existing power plant and new power plants – Non-Emissive or No GHG. California Governator & Legislature proposing CO2 reduction. BP announces IGCC to make a H2-fired Cogen and CO2 sequestration. PLASMA has formed a Consortium proposing a CO2 Capture Retrofit Project for a Power Station & near-by Sequestration for Enhanced Oil Recovery (EOR) for SoCal. Giant CO2 Geological Sequestration potential in Northern Rocky Mountains (Wyoming, Colorado & Montana). Wyoming CO2 Capture & Sequestration Potential. London CO2 Carbon Credit trading exchanges. Conclusion PLASMA Emissive Technology Superior Sulfur Removal superior any other techniques @ 99.9% sulfur removal. High NOx removal 70 to 85%. Emissions equal or lower than coal Gasification. Emissions equal or lower than gas fired GTCC. Sulfur & NOx removal has over 5,000 hours of operating experience at 25 & 50 MWt scale. Oxy-firing operating experience at 40 to 50% O2 for over 5,000 hours. Significant part of PLASMA’s CO2 Capture Technology or Zero Emission (no GHG). Non-Emissive CO2 Capture Technology Reactions Coal/Coke,S,N2 + O2/CO2 + K2CO3 CO2 + H20 +K2SO4+KNO3 CO2 Recycle H 2O Coal Fuel + K2 > 98% O2 PC Boiler CO2 Captured No Stack gas Steam to EOR Steam to Power Solids(K2SO4 & KNO3 & Ash) Captured CO2 – ultra low SOx <10 ppm & very low NOx Geological CO2 Sequestration with an Economic Incentive Enhance Oil Recovery (EOR): Permian Basin commercial operation. Wyoming & Colorado commercial operation. Weyburn Saskatchewan commercial operation. US DOE said Huge EOR Potential in 10 oil Basins in USA with 89 billion barrels increase in reserves. Wyoming huge EOR Potential. Coal Bed Methane (CBM) the only field study @ Burlington Resources in San Basin Basin: CO2 enhances Methane production – 3 volumes CO2 produces 1 volume methane. N2 enhances Methane production – 4 volumes N2 produces 1 volume methane. Wyoming huge Enhanced CBM potential (has any field work been completed, since last year?) California Proposing to Limit CO2 Emissions In April 06 the California Governator proposed and Legislature began the development of a legislative package to limit and control the CO2 emissions in the State. They are proposing a “Cap and Trade” and the proposed cap levels for power generation is shown in the Table below: California Proposed Legislation - CO2 Reduction Goals CO2 million tonnes/Year 2010 2020 CEC – Total Municipal Utilities 4.8 18.9 CAPUC – Total Investor Owned Utilities 7.1 25.2 11.9 44.1 Totals Muni & IO Utilities Sources: http://www.climatechange.ca.gov/ CAPUC & CACEC DOE CO2 EOR Study for SoCal Major Oil Basins & Potential Power Plants for CO2 Capture Idle PG&E Kern Plant Morro Bay DOE states the fields needing The largest CO2 volumes are: • OXY’s Elk Hills • Coalinga • AERA’s Ventura Ave Field • San Miguelito • San Fe Springs • Dominquez CO2 Pipelines Mandalay Ormand Breach Alamitos BP Carson IGCC Huntington Beach California needs at least 4.5Bcf/Day of CO2 for EOR shown above. 65% of CO2 is needed in between Ventura to Santa Maria & Southern SJV. LA Basin has a 35% CO2 requirement. California Oil Companies are moving on CO2 Capture & CO2 Sequestration BP announces in February 2006 that is plans to spend a $1 billion to make H2 and Capture CO2 from coke gasification at their Carson refinery. BP will build a Integrated Gasifier Combined Cycle (IGCC) producing electric power. ~300 MMscf/d H2 will be made and combusted in gas turbine combined cycle ~500 MWe gross power. CO2 is recovered from water-shift reactor. 4 million tonnes CO2 will be captured and sequestered at a 90% recovery rate from coke. Occidental Petroleum is conducting CO2 sequestration for EOR study for BP. PLASMA formed a consortium with two Major Oil Companies and currently has not made a public announcement of CO2 Capture Retrofit Project and expected to be announced soon. Comparison of Two CO2 Capture Technologies IGCC Block Flow Claus & Tail gas Unit H2S Water Acid Syn-gas H2S, CO & H2 Steam Coke CO2 (90%) H2S Amine Unit Partial Oxidation Gasifier 800 to 1200 psig O2 Compressor Water Shift Reactor O2 ASU Steam CO2 10% Where is It?? Steam Gen & Duct-firing Hydrogen (H2) Flue Gas H2O & N2 Air Gas Turbine/ Generator Ash Capture CO2 Hydrogen (H2) CO & H2 Syn-gas Oxygen Air Sulfur (S) H2O & N2 Steam Turbine/ Generator Steam Power Power Nitrogen (N2) CO2 Recycle PLASMA Technology Block Flow Coal or Coke Air Flue Gas CO2 & K2SO4 CO2 Baghouse or ESP Radiant Section & Boiler 15 psig Oxygen New Equipment Capture CO2 O2 ASU K2CO3 Existing Equipment Like in Mandalay Retrofit Nitrogen (N2) K2SO4 & Ash Steam Steam Turbine/ Generator Power Target Generation Station – SoCal Initially Unit #1 CO2 Capture Retrofit CO2 Captured and Sequestrated in Oil Reservoir CO2 Captured for EOR CO2 Capture/Day : Unit # 1 - 95 MMcf/d Unit # 2 - 119 MMcf/d including MHD CO2 Capture/Yr: Unit #1 – 1.6 MM mt/y Unit #2 – 2.0 MM mt/y Total - 3.6 MM mt/y PLASMA’s CO2 Capture Retrofit Project Progress PLASMA has formed a CO2 Capture Project Consortium with 2 Major Oil Companies. MOU’s for both Power Output & Captured CO2. CO2 will be compressed to liquid and supplied via new pipeline to oil production fields. Have secured a Major Bank as project advisor. Starting “Lease with Purchase option” discussions with current owner. Strong support from CA Energy Commission (CEC). Will inspect and run performance tests at the target plant in August/September. SoCal CO2 Capture from Existing Power Generation Stations Target Power Generation Station MW’s CO2 Captured MMscf/D CO2 Captured MM T/Yr Gas Credit Not Used Bcf/Yr Potential (*) AES – Alamitos 1,830 870 14.1 135 217,000 AES - Huntington Beach – 820 390 6.3 60 97,000 1,000 475 7.6 74 118,000 430 210 3.5 32 54,000 Reliant – Ormand Beach – 1,500 710 11.5 110 179,000 Totals for CA CO2 Capture Potential 5,580 2,655 43.0 411 665,000 LS Power - Morro Bay Reliant – Mandalay Assumes: 4,000 cf CO2/Bbl oil recovery New EOR Oil Bbls/D Major Power Plants with ~ MMSCF/D CO2 Potential Williston Basin EOR Target Colstrip (931) Cedar Creek Anticline EOR Potential Anadarko CO2 Pipeline Wyodak (142) CO2 Source Jim Bridger (898) Gas Cleanup Off-gas Neil Simpson (55) Dave Johnson (323) Laramie (724) Naughton (296) Rawhide (128) Bonanza (170) Intermountain (697) Huntington (380) Hunter (560) Carbon (77) Arapahoe (98) Craig (570) Hayden (196) Cherokee (302) Source: Dag Nummendal DOE 10 Basin Study CO2 for EOR – Feb. 06 Study conducted by Advanced Resources International – Houston, TX Summary of DOE’s CO2 EOR Study USA Total – Feb 06 Basin/Region CO2 EOR Technically Recoverable Potential for 10 Regions Technically Recoverable (Billion Bbls) CO2 (*) CO2 (*) Power (*) Needed Captured Capacity MM scf/D MM tonnes/Yr MW’s California 5.2 2,530 43.1 5,060 Alaska 12.4 6,040 102.9 12,080 Mid-Continent 11.8 5,750 97.9 11,500 Illinois & Michigan 1.5 730 12.4 1,460 Louisiana Offshore 5.9 2,870 49.0 5,750 Permian Basin (**) 20.8 10,130 172.7 20,260 4.2 2,050 34.8 4,090 Texas: Central & East 17.3 8,430 143.5 16,850 US Gulf Coast (Texas) 6.9 3,360 57.3 6,720 Williston Basin 2.7 1,310 22.4 2,630 88.7 43,200 736.0 86,400 Rocky Mountains (WY included) Total 10 Regions Notes: (*) PLASMA calculated 4,000 cf/Bbl CO2 & respective power plant capacities. (**) Permian current CO2 is from natural geological sources. How much oil can be produced from CO2?? DOE says at least 89 billion barrels of increased reserves up to as much 430 billion Bbls. Assuming CO2 Capture happens instantly – assuming a 25 year recovery rate on 89 billion Bbl then the new additional daily production would be 10.8 million Bbls/Day. For a 30 year recovery rate would be then be 9 million Bbls/Day. USA currently imports about 9 million Bbls/Day. Now this is Real ENERGY INDEPENDENCE !! Furthermore, it reduces the CO2 GHG emissions, as it has been linked to global warming. First 16 months of London PointCarbon Exchange Price Data 1st Year Reality adjustment Suggestions for Wyoming Last year and repeated again today! Unitization of fields would simplify the credit issue for those who sign up for CO2 to be used for EOR. Finance like a “Limited Improvement District”. Where every one does not have to sign up at once, but there is a rebate to the early signors for others capital costs paid by early signors. Do CO2 field pilot floods studies for Coal Bed Methane for major coal basins with CBM potential. Do N2 field pilot flood studies for pressure displacement of normal natural fields and CBM coal structures. Extend WY Pipeline Authority to Williston Basin in Montana & North Dakota. (New) Why propose IGCC for CO2 Capture Technology for WY Infrastructure Authority RFP? Feds have similar funds available for other technologies! Conclusion Message to Wyoming’s favored son VP Dick - “Time to reduce CO2 Emissions… to produce more domestic oil” Message to Al Gore – “We got the message… It is time to reduce CO2 emissions” CO2 Capture & Geological Sequestration has substantial economic value while reducing greenhouse gas (GHG). Good for Wyoming & USA!!