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 BUT NOW … Methane Venting Reduction Projects: • H2L Bleed Conversions Project Aggregator • Gas-Driven Pump Replacements • Non-venting Well Site GENERATE OFFSETS $$ Solutions 2 February 10, 2016
Challenges Associated with Offset Projects 1. Organizational Barriers • Different groups with different agendas or 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 offsets • Offset project development can cost between 50k to 100k without data aggregation 3 February 10, 2016
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 Data Results SUCCESS! 4 February 10, 2016
2010 CCEMC Call for Proposals: Energy Efficiency 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) = $14MM!!! 5 February 10, 2016
CCEMC Project - Expectations Expected Expected GHG Annual GHG Reductions over a 20 Number of Reductions year project life GHG Reduction Technology/Initiative Projects (tonnes/yr) (tonnes) Cost ($/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: $13.80 Expected GHG reductions equivalent to removing approx. 10,700 passenger cars Is this even achievable? driven for one year from the road!!! 6 February 10, 2016
CCEMC Project – Results (GHG Reduction Starting-point) Expected Expected GHG Annual GHG Reductions over a 20 Number of Reductions year project life GHG Reduction Technology/Initiative Projects (tonnes/yr) (tonnes) Cost ($/tonne) Waste Heat Recovery 7 $21.50 2,157 43,140 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 Mission Accomplished!!! removing approx. 21,350 passenger cars (DOUBLED project expectations) driven for one year from the road!!! 7 February 10, 2016
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! 8 February 10, 2016
Alberta Climate Leadership Plan End User Tax $30/t in 2018 Elimination of Coal Fired Plants by 2030 Methane emissions 45% reduction by 2025 Oil Sands Emission Performance Standard and Emissions Limit (100Mt/yr) 9 February 10, 2016
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 – offsets, technology fund • Work and analysis required to set the performance standards 10 February 10, 2016
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 11 February 10, 2016
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 operations will be levied starting 2023 • Tax revenue to be allocated between supporting emission reduction efforts and supporting Albertans to adjust ($3 billion/yr) 12 February 10, 2016
Challenge "Our industry developed the technology to get the oil out 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? 13 February 10, 2016
PANEL DISCUSSIONS 14 February 10, 2016
Recommend
More recommend
