Transcript Vent Options talk for PTAC 2002 Env Forum

Co-Gen and Waste Heat Power Generation
Potential in the Upstream Oil & Gas Industry
53rd Canadian Chemical Engineering Conf.
October 29, 2003
Bruce Peachey, P.Eng.
New Paradigm Engineering Ltd., Edmonton
Oil & Gas Sector Energy Use
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Estimated sector energy use 1300 PJ/yr
Energy value = $5 billion/yr assuming $4/GJ
Vents, Flares and Fugitives value = $0.5 b/yr
Most producer energy use is “off-the-books”
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Loss in potential revenue, not a direct cost
Many energy streams (fuel, vents and flares)
are not adequately measured, monitored or
assessed
First Prize - Increase Efficiency
Potential Economic Energy and Emission
Reductions
 Over $ 1 Billion per year for the oil & gas industry
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• 15% reduction in energy use = $ 780 million/yr
• 45% reduction in other emissions = $220 million/yr**
GHG emissions reductions = 29 MtCO2e/yr
 Excludes potential energy revenue or savings from
cogeneration and other sources in the industry
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* Sources: NRCan, Clearstone Engineering, AEUB
** Alberta only
Prepared by PTAC - Petroleum Technology Alliance Canada www.ptac.org
Cogeneration After Deregulation
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Husky Lloydminster (TransAlta) - 220 MW (1999)
Dow Ft Saskatchewan (TransAlta) - 118 MW (1999)
Syncrude Mildred Lake - 80 MW (2000)
Nova Chem Joffre (EpCor/Atco) - 416 MW (2001)
Suncor Poplar Creek (TransAlta) - 356 MW (2001)
Imperial Oil Cold Lake - 170 MW (2002)
TransCanada Power Alberta - 392 MW
• Cancarb - 27 MW; Bear Creek - 80 MW; Carseland - 80 MW;
MacKay River - 165 MW; Redwater - 40 MW
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Over 1750 MWe - All made possible by deregulation of
generation
Co-Generation Basics
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Usually use exhaust of power generator to heat
a process stream.
Just requires addition of heat exchange
Brings power generation up to efficiency of
steam generation.
CoGen Potential for Oil and Gas?
?
Oilsands Mining
Petrochemicals
Thermal Heavy Oil Gas Transmission
Gas Plants
Oil and Gas
Production
Share of Energy Consumption (%)
Upstream O&G Energy Use Distribution
70
Electrical Power
NG + Products
60
50
40
30
20
10
0
Conventional
Production
OilSands
Pipelines
Gas Transportation Energy Distribution
Que
10%
B.C.
14%
Alberta
22%
Ont
32%
Man
15%
Ref: CAPP Pub #1999-0009
Sask
7%
Second Prize - Co-Generation

May, 1991 CAPP Study - “CO2 Reduction Through Energy
Conservation” - Co-Gen Potential
•
•
•
•
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Main sources considered - 34 Major Sour Gas Plants
Cogeneration potential - 12% of industry energy use
Power from Cogen - 1100 MW
Almost 20% of Alberta’s Current Power Use
Actions taken back then:
• Little or none mainly due to regulated power
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So this prize is still there!
Why No Co-Gen in Gas Plants?
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Most plants are older (1950-1980)
• A few have cogen for own power needs due to necessity
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Few new large gas plants being built
Extremely difficult to economically and efficiently retrofit
cogen into an old plant
• Has to be intimately integrated into the process
• Construction while a sour plant is in operation is hazardous
to workers
• Months of downtime would not be acceptable
Why no Co-Gen in Oil and Gas Production?
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Thousands of facilities that are small and often isolated
from power lines
Heat loads and power loads don’t match and are
geographically dispersed
• Often power loads goes up over time while heating loads
drop

Power companies not interested in dealing with multiple
small sources
• Often a safety issue, but also a lot more hassle
Third Prize - ORC Power from Waste Heat
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Organic Rankine Cycle
(ORC) Power Generation
• Used in Geothermal
Applications (e.g.
Birdsville Australia)
• Propane, Butane or
Pentane power fluid
• Adapt to use heat from
any waste heat source >
60 oC
Gold Creek ORMAT Energy Converter - 6 MW
Photo from www.ormat.com
Gold Creek, Alberta
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6.5 MW ORC installed on a gas turbine exhaust
Air cooled process
Operational since 1999
Fully automatic, self regulating
Unattended (2 hr/day check by operator of station)
Availability in excess of 95%
Avoids 40,000 tons/yr of CO2 emissions
$1/MW total for Operations and Maintenance
Taken from ORMAT Presentationby H.M. Leibowitz
PTAC Climate Change and GHG Workshop May 2002
Benefits of ORC Power Generation
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Power with minimal incremental fuel or emissions
Uses energy that is currently lost
Proven for many years in Geothermal applications
around the world
Can use low quality energy streams like hot water or
exhaust gases
Potential for use in compressor stations, gas plants, oil
production or thermal heavy oil
E.g. Thermal Heavy Oil
Combine Cogen & ORC to
Displace Power from Coal
Payzone Heating
30%
Steam Generator
Stack
15%
Treater Stack and
Aerial Cooling
5%
Vent Gas Flare
5%
Produced Water
5%
Reservoir Losses
10%
Wellbore Heat Loss
15%
Power
15%
E.g. “Geothermal Energy” - Swan Hills, Ab
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Heat energy in Produced Water between 80 to 60 oC =
38.5 MW(h)
• Over 40,000m3/d produced water at 80 oC produced with
the oil
» (NB - Over 1 million m3/d of produced water in Alberta)
• Could produce 2-6 MW(e) of power with a propane ORC
system (more in winter)
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Combine with picking up waste heat from gas plant, oil
battery and compressors
• Gas Plant already has a propane refrigeration process
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Displace part of the 12 MWe of purchased power. Prize =
$3-6+ million/yr at this site. (over $100M/yr in Alberta?)
What’s Hindering CoGen/Waste Heat?
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Efficiency isn’t a major business focus
• Shareholders don’t see the energy losses
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Many losses are not measured
• You can’t manage what you don’t measure
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Power Deregulation and GHG Rules Still Fuzzy
• How do you decide if you want to be in the power game?
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Everyone is overworked
• Producers don’t have time to understand the potential
• Aren’t any vendors for low cost systems
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Systems can’t be seen to hurt oil and gas production
What is changing?
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Power prices higher and volatile
• Producers want to get off the grid
• Feeding the grid more attractive now
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Gas prices higher and will continue to go up
• Increasing demand, decreasing supply
• Energy efficiency needed to stay profitable
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Shareholders and Markets forcing “off-the-books”
costs into the open
Focus on GHG reductions
What is Needed?
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Research - More people working on understanding ORC
systems and looking for ways to reduce costs
• Modeling of ORC systems
• Process studies
• Good work for graduates which would attract NSERC and
Kyoto funding
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Motivation - Continued pressure on producers to
become more energy efficient
Innovation - Combining the research and motivation into
profitable applications
Summary
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There is enormous potential for Co-Gen and Waste Heat
Power Generation in the Upstream Oil and Gas Industry
Co-Gen for large centralized heat intensive operations
Waste Heat for smaller distributed generation
In Canada, systems will need to be flexible, easy to
retrofit, and economic
Now we need people to get interested in it!
Contact Information
New Paradigm Engineering Ltd.
10444 - 20th Avenue
Edmonton, Alberta
Canada T6J 5A2
tel: 780.448.9195
fax: 780.462.7297
email: [email protected]
web: www.newparadigm.ab.ca