Field GHG Reduction Projects GHGs Project Summary Whats Next? - - PowerPoint PPT Presentation

Field GHG Reduction Projects GHG’s Project Summary What’s Next?

February 10, 2016 1

Energy Efficiency Offset Projects

• 1. Air Fuel Ratio Controller

and Vent Gas Capture

• 2. Waste Heat Recovery

Projects

• 3. Instrument Gas to

Instrument Air

February 10, 2016

2

BUT NOW…

Methane Venting Reduction Projects:

• H2L Bleed Conversions
• Gas-Driven Pump

Replacements

• Non-venting Well Site

Solutions

GENERATE OFFSETS $$

Project Aggregator

Challenges Associated with Offset Projects

1.

Organizational Barriers

• Different groups with different agendas
• r metrics of success
• No appetite for risks associated with

projects that are not core to the business

2.

Lack of Protocols

3.

Costs

• Comparing an offset project to drilling a

new well

• Companies have different ways of valuing
• ffsets
• Offset project development can cost

between 50k to 100k without data aggregation

February 10, 2016

3

Keys to Success:

1.

Complete team buy in – from management to the field

2.

Data aggregation and the tools to properly implement data collection and data transfer

3.

A good project plan, and working with experienced industry partners

February 10, 2016

4

Data Results SUCCESS!

2010 CCEMC Call for Proposals: Energy Efficiency

February 10, 2016

5

CPC’s Application Details:

Project Title: Company-wide rollout of a systematic Energy Efficiency Program leading to significant GHG reductions in Alberta’s Upstream Oil and Gas (UOG) Industry Project Details:

• Project Length: 2011 to 2013 2015 (project extension requested)
• 10 Different EE Technologies/Initiatives
• Focus on new technologies which are potentially viable, but not yet widely used
• Company-wide implementation
• GHG reduction of >50,000 tonnes CO2e per year (>1,000,000 tonnes CO2e over 20 yr project life)
• Knowledge Sharing Workshop
• Partnership with CETAC-West (industry experts)
• Project Cost: $7MM (CCEMC) + $7MM (CPC) = $14MM!!!

CCEMC Project - Expectations

February 10, 2016

6

Technology/Initiative Number of Projects Expected Annual GHG Reductions (tonnes/yr) Expected GHG Reductions over a 20 year project life (tonnes) GHG Reduction Cost ($/tonne)

Waste Heat Recovery 14 11,079 221,581 $19.62 Engine Fuel Management Systems (REMVue AFRC) 20 10,526 210,512 $15.58 Vent Gas to Engine Air Intake (SlipStream) 11 7,811 156,229 $4.98 High-to-low/no Bleed Instrument Conversions 200 5,300 105,993 $5.66 Solar-powered Chemical Injection Pumps 50 6,183 123,659 $6.07 Gas Pneumatic Pump Vent Gas Capture/Utilization 100 4,416 88,328 $1.70 Dehy Optimization 5 1,343 26,852 $16.76 Waste Heat to Electricity 1 2,135 42,692 $26.35 Pressure Drop to Electricity 1 1,123 22,469 $27.82 Gas Plant Optimization 2 1,000 20,000 $10.00 Totals: 404 50,916 1,018,315 Average: $13.80

Is this even achievable?

Expected GHG reductions equivalent to removing approx. 10,700 passenger cars driven for one year from the road!!!

CCEMC Project – Results (GHG Reduction Starting-point)

February 10, 2016

7

Technology/Initiative Number of Projects Expected Annual GHG Reductions (tonnes/yr) Expected GHG Reductions over a 20 year project life (tonnes) GHG Reduction Cost ($/tonne)

Waste Heat Recovery 7 2,157 43,140 $21.50 Engine Fuel Management Systems (REMVue AFRC) 25 17,550 351,000 $15.67 Vent Gas to Engine Air Intake (SlipStream) 5 7,954 159,080 $7.99 High-to-low/no Bleed Instrument Conversions 1,062 53,100 1,062,000 $2.09 Solar-powered Chemical Injection Pumps 86 12,040 240,800 $4.78 Gas Pneumatic Pump Vent Gas Capture/Utilization 15 675 13,500 $4.96 Dehy Optimization 13 4,905 98,100 $5.13 Waste Heat to Electricity 1 558 11,160 $159.68 Pressure Drop to Electricity 1* 924* 18,480* $70.35* Gas Plant Optimization 2* 9,200* 184,000*

• Totals:

1214 98,939 1,978,780 Average: $6.79

Resulted GHG reductions equivalent to removing approx. 21,350 passenger cars driven for one year from the road!!!

Mission Accomplished!!! (DOUBLED project expectations)

Innovation, Collaboration, Openness

The CPC/CCEMC Energy Efficiency Project is a prime example of how innovation, collaboration & openness between government, industry, product developers can lead to GHG reduction success!

February 10, 2016

8

Alberta Climate Leadership Plan

February 10, 2016

9

End User Tax $30/t in 2018 Elimination of Coal Fired Plants by 2030 Oil Sands Emission Performance Standard and Emissions Limit (100Mt/yr) Methane emissions 45% reduction by 2025

Emission Performance Standard

• Large emitters regulation –

Specified Gas Emitters Regulation (>100kt/y)

• Covers approx. 20 gas plants in Alberta
• Change from historical facility baselines

to industry performance standard

• We don’t know the details, but we

think:

• Current price and stringency

requirements stand ($20 and 15% in 2016; $30 and 20% in 2017) – transition to new framework to be developed

• Full compliance flexibility remains –
• ffsets, technology fund
• Work and analysis required to set the

performance standards

February 10, 2016

10

Methane Reduction Plan

• Methane reduction target

announced: 45% reduction by 2025

• Emission design standards for new

facilities

• 5 year voluntary Joint Initiative on

Methane Reduction and Verification

• Includes: Industry, eNGOs and indigenous

communities

• Take action on venting and fugitive

emissions from existing facilities

• Enhanced measurement and reporting

requirements for new and existing facilities

• Few details at this time to understand this

initiative

• Aligned with the US targets on

methane reduction

February 10, 2016

11

Carbon Pricing

• Economy wide tax
• Applied on transportation and

heating fuels

• $20/tonne 2017
• $30/tonne 2018
• Increase in real terms each year
• Combustion of fuels in

conventional oil and gas

• perations will be levied starting

2023

• Tax revenue to be allocated

between supporting emission reduction efforts and supporting Albertans to adjust ($3 billion/yr)

February 10, 2016

12

Challenge

"Our industry developed the technology to get the oil

• ut of the sand, and we will develop the technology to

take carbon out of the barrel. We know we can do more and we will do more."

Tim McMillan, CAPP President and CEO

Are you willing and ready?

February 10, 2016

13

February 10, 2016

14

PANEL DISCUSSIONS