The Western Energy Corridor & Utah: Ensuring North American - - PowerPoint PPT Presentation

The Western Energy Corridor & Utah:

Ensuring North American Energy Security and Regional Sustainable Economic Development in the 21st Century

Michael Hagood

Director, Program Development Energy &

Environment S&T Idaho National Laboratory Executive Director Eastern Utah Secure Energy Program

• Dr. Robert Behunin Vice President, Utah State University

Commercialization & Regional Development

• Dr. Jeremy Boak

Director, Center for Oil Shale Technology & Research, Colorado School of Mines

Western Energy Corridor: Contains fossil energy resources strategic to U.S. energy security

High- medium quality Oil sands Tight gas sands Gas shales Natural gas from coal Heavy oil Gas hydrates Oil shales Resource Triangle Conventional resources Small volumes that are easy to develop Unconventional resources Large volumes that are difficult to develop Increased operating challenges Increased infrastructure 1950-1995 2002 2006 Increased approvals Improved technology Increased cost

Source of image: Canadian Society for Unconventional Gas Submission to Council of Energy Ministers, September 2003

“The Nation is substantially at risk from an economic and security perspective, to warrant development

• f an unconventional fuels program

with attendant policies and government actions to promote and accelerate industry development”

Today: High Carbon Intensity Foreign Dependent Trillions $ to foreign economies Low Carbon Intensity Domestic Dependent Trillions $ to U.S. economy

Fossil

Renewables

Nuclear

The energy corridor contains a unique and rich base of carbon, hydrogen and primary energy sources to create fuels, electricity and other products

Unlocking the vast energy resources within the Western Energy Corridor will require integrating, optimizing and stewarding a diverse set of domestic (and N. American) energy resources, interconnected by a dependable delivery infrastructure, and developed in an environmentally progressive manner.

Result

Drive down carbon footprint—Leverage existing energy distribution systems—Energy where you need it / when you need it—Get more renewables to the consumer, faster

Nuclear Island

• Present or future generation
• Process heat and/or electricity

Renewable-Electric Integration

• Electrolysis or co-electrolysis driver
• Additional electricity to grid

Hydrogen Generation Plant

• Upgrade of fossil and bio feedstocks
• Catalytic feedstock for coal to liquids

Liquid Fuels & Chemicals Plant

• Coal and biomass to liquids
• Process chemicals

Carbon Feedstock

• Coal
• Biomass
• Recycled carbon

5

The Energy Corridor Forms a Rich Foundation for Establishing Hybrid Energy System Approaches at Multiple Scales

The Eastern Utah Secure Energy Program and Partnership

EUSEP2 has been established to create greater focus

• n responsible development and utilization of energy

resources within eastern Utah and environs. It is designed in particular to (1) help identify and achieve energy production goals, (2) help create a long- term sustainable economy within rural eastern Utah and (3) provide educational opportunities for Utah citizens. The program would provide a solid framework for conducting applied energy research and development taking advantage of collaborations between research institutes within the State of Utah as well as with other regional universities, national laboratories, government agencies and industry. The program intends to address a spectrum of challenges related to developing regional energy resources, focusing on policy, RDD&D, environmental impacts, investment, economic development, and education.

EUSEP2 is hosted at the Bingham Research Center, located in Vernal, Utah

The Eastern Utah Secure Energy Program and Partnership (EUSEP2)

INL scientists conducting oil shale retort experiment.

Selected Program Element: Research, Development, Demonstration, & Deployment

With its partners, EUSEP2 is conducting solutions-

• riented applied energy research to create a bridge

between basic research and commercialization. The program will focus on conducting larger-scale demonstrations (including in the field) to reduce risk associated with innovative technology deployment. RDD&D directions will be defined by program goals EUSEP2 will become the “go-to place” for in-depth understanding of energy development processes applied within the region as well as for understanding the real and potential environmental impacts. Existing and emerging activities:

• EUSEP2 partners have contracts in place (or

pending) with industry to assess various above- ground and in-situ oil shale and gas production processes.

Governor Herbert has introduced for consideration “Utah’s 10-Year Strategic Energy Plan,” which includes development of Utah’s fossil energy resources.

Selected Program Elements - Policy

A solid understanding of energy policy will be critical in advancing energy production within Eastern Utah. A myriad of regulations needs to be addressed at multiple levels (e.g., Federal, State, and County jurisdictions). Existing and emerging activities:

• EUSEP2 is currently engaged with regional

stakeholders (i.e., BLM, DEQ, EPA, and local government) to initiate a viable air resource management strategy that will result in air quality policy to encourage and enhance responsible resource development.

• EUSEP2 members are sitting on key energy

policy task forces, associated with Governor Herbert’s 10 Year Energy Plan Task Force, to help establish innovative approaches to resource development.

Further unlocking the energy and mineral resources in Eastern Utah will require assessing and mitigating potential environmental impacts.

Selected Program Element – Environmental Characterization, Monitoring, and Modeling

EUSEP2 will create a center for regional environmental characterization, monitoring and modeling to assess impacts from energy development. EUSEP2 is also engaged in developing and demonstrating various technological innovations associated with characterization, monitoring and mitigation. Existing & emerging activities:

• USU has developed and spun out an emissions/

effluent treatment process applied to oil and gas fields (Purestream).

• Bingham Research Center is creating an environ-

mental analytical laboratory and modeling capability.

• EUSEP2 partners recently collaborated on a DOE

proposal associated with unconventional fossil energy development, addressing environmental assessment.

• EDL is exploring use of algae for addressing produc-

ed water cleanup (from oil and gas fields) and benefi- cial use of CO2 derived from energy production plants.

Selected Program Elements – Regional Economic Development

The oil and gas industry brings increased standard of living, attracts capital, creates jobs, heightens in- vestment in businesses and boosts taxes/royalties. Innovation will also emerge, creating additional economic benefits to the region. EUSEP2 views also an opportunity to use this “energy platform” to potentially develop a value-added in- dustrial base and sustainable economic prosperity in the region. This additional dimension can attract significant national and international investment. Existing and emerging activities:

• Hon. Murray Smith of Alberta is investigating situa-

tion in Uintah Basin, exploring the creation of a sus- tainable innovation program and investment potential.

• EUSEP2 is securing a visit with China National

Petroleum Company, which has interests in investment and collaborations.

• EUSEP2 members are sitting on a key Utah State

energy policy task force addressing economic development.

EUSEP2 is creating educational

• pportunities for Utah citizens

Selected Program Elements – Education

EUSEP2 is creating opportunities for Utah students within the energy and environment area through classroom instruction and a diverse set of university engagements. These efforts will be complemented and enriched by engagement with vocational technology schools (e.g., Uintah Basin Applied Technology College) that train skilled workers needed in today’s and tomorrow’s work force. In the longer-term, the R&D focus established through EUSEP2 can result in world-class expertise that can be exported internationally. Existing and emerging activities:

• Currently building greater educational opportunities

through the Bingham Research Center.

• Faculty-staff exchanges and joint appointments

already established between USU, INL and USTAR

• Exploring opportunities with Colorado School of

Mines.

The University of

Montana

Selected Western Energy Corridor Research Institutes

Partnerships

EUSEP2 will build upon collaborations among regional universities, national laboratories, government agencies and industry to help achieve its goals. EUSEP2 will also provide infrastructure to help regional stakeholders demonstrate their innovations in a more “applied” environment. Research Institutes: INL and USU have formed the initial core of EUSEP2 USTAR staff resident in Bingham Research Center Colorado School of Mines has expressed interest in joining Potential to serve Utah Energy Research Triangle Exploring key relationships in Alberta/Saskatchewan § Government: § There are opportunities to engage with federal (DOE, DOI, EPA, DoD), state, county, city, and tribal governments. § Industry: § To meet EUSEP2 goals, it is critical to engage with industry, in particular to understand and address their priority challenges.

Potential Hybrid Energy Systems Testing Locations

Selected Partnerships – Idaho National Laboratory (INL)

INL is one of ten multi-program national laboratories

• wned by the U.S. Department of Energy. For the

nation, INL has lead responsibilities in nuclear energy research but also engages in research associated with development of fossil energy, renewable energy, integrated energy systems and critical energy infrastructure protection. INL is engaged in applied research and demonstration, helping to reduce the risks associated with deployment of innovative energy technology. INL is the architect of the Western Energy Corridor concept and is dedicated to collaborating regionally. INL’s principle foci within EUSEP2:

• Unconventional fossil energy development (oil shale

and unconventional gas) – modeling and experimentation.

• Hybrid Energy Systems approaches.
• Assessing and mitigation of environmental impacts.
• Bio-energy, including algae.

EDL is a nonprofit research corporation owned by Utah State University as a part of the USU Research Foundation. EDL seeks to bridge the gap between academia and industry through modeling, prototyping, testing, deploying and eventually commercializing advanced energy systems. EDL’s principle focus relative to EUSEP2:

• Next Generation Fossil Energy
• Air quality measurements associated with oil/gas

producers, including remote sensing techniques and mobile air quality research laboratory

• Algae cultivation for turning energy development and

production waste streams into fuel

EDL algae cultivation raceway Mobile Aglite lidar for aerosol calibration laboratory

Selected Partnerships – USU Energy Dynamics Laboratory (EDL)

The Bingham Research Center has now been

• completed. Staff are being hired and analytical

laboratories are being established.

Selected Partnerships: Role of Bingham Research Center

To be the honest independent broker of information on energy development, a solutions oriented center, with the goal of realizing responsible development of regional energy resources. Providing in-house technical expertise to address the grand challenges associated with energy development within the region, hosting research institutes, government agencies and industry. Providing assessments of potential environmental impacts. Providing operational infrastructure for conducting technology demonstrations within Bingham Research Center and “in the field.” Providing context/focus for education and training through classroom instruction, internships, joint appointments, graduate work, and with ties to vocational training. Promoting innovation, entrepreneurship and technology deployment. Identifying and assessing future regional energy development opportunities.

§

Alberta and Saskatchewan are strategic partners in developing innovation related to unconventional fossil energy resources (and minerals).

§

Because of its experience in oil sands development, Alberta is of particular interest to EUSEP2 as a source

• f technology innovation, lessons learned, but also

research collaborations and investments.

§

Alberta began investment in oil sands development innovation programs decades ago. Today, oil sands are producing at approximately 1.4 mbd.

§

Today, with 80% of world oil reserves held by national

• il companies, international oil companies and

international investment are seeking to obtain leases within the Alberta oil sands to secure guaranteed reserves.

§

Oil shale development in U.S. is in infancy stage and in different “environment” than Alberta but has similar potential.

§

EUSEP2, through INL, has developed extensive relationships in Alberta and Saskatchewan that will be extended to EUSEP2.

Ted Morton, Alberta Minister of Finance & Enterprise (middle), and Premier Ed Stelmach (far right)

International Partnerships: A Focus on Canada

• Regional energy development decisions will be

made in an increasingly more complex environment requiring more sophisticated, science-based decision making tools and applied RDD&D to reduce risks of deployment.

• Development of world class fossil energy

resources within the Western Energy Corridor, including the Uintah Basin, comes with grand technical challenges worthy of greater investment.

• EUSEP2 with its partners, are creating a regional

construct designed to support responsible development of these resources, working with governmental, research, industry and NGOs.

• Within Utah, EUSEP2 will initially focus on Uintah

Basin area, but also is exploring opportunities in the rest of Eastern Utah.

• EUSEP2 will also engage in cross border

collaborations with Canada where there are similar resources and challenges.

Our View: Transnational Regional Context and Focus

• Helping unlock energy resources in

a responsible manner, while stewarding natural resources.

• Helping build value-added economic
• pportunities in the region.
• Helping create educational
• pportunities for Utah citizens.
• Helping develop an international

leadership position for Utah, eventually exporting regionally- based innovation .

• Expanding to the rest of Eastern

Utah, offering operational infrastructure and expertise to demonstrate innovative technology and approaches.

Clean and Efficient Industrial Enterprises Stewarded wildlife, waters, air, natural/ energy resources

EUSEP2 will play a role in Eastern Utah’s future