Overview of Energy-Water Program Areas

1. Overview of Energy-Water Program Areas Recommendations of the Energy-Water SWOT May 2006 National Energy Technology Laboratory

2. Energy-Water Issues and Current Program Activities

3. Water-Energy Issues:Thermoelectric Power Generation • Thermoelectric power generation withdrew 39% of all freshwater withdrawn in the US in 2000, according to USGS report. • Thermoelectric power generation consumed only 3% of freshwater consumed in 1995 (the most recent year water consumption data is available). • Other impacts of thermoelectric power generation: • Thermal pollution • Intake structure entrainment • Air pollution becomes water pollution

4. New Restrictions on Once-Through Cooling Considered • California State Lands Commission proposal, dated February 9, 2006, calls for elimination of once-through cooling at existing coastal power plants in 2020. • California has 21 coastal power plants that use once-through cooling. • Located on bays and estuaries where sensitive fish nurseries are located. • Authorized to withdraw and discharge 16.7 billion gallons of ocean water daily. • California State Water Resources Control Board recommended assessment of alternatives before adoption of the resolution.

5. Water-Energy Issues: Coal Production • Acid Mine Drainage (AMD) from both active and abandoned mines is a concern. • 2002 EPA report estimates that 10% of pollution-impaired rivers and streams in the US is a result of natural resource extraction operations. • Coal washing also impacts water quality and quantity. (DOE, 2005)

6. Water-Energy Issues:Natural Gas and Oil Production • Approximately 10 barrels of produced water are pumped to the surface for each barrel of oil produced in the US. • Coalbed methane produced waters are a major concern in Wyoming and Montana. • Produced water is considered a waste product and may contain: volatile compounds, organics, ammonia, solids, and hydrogen sulfide. • Currently most common disposal methods are surface discharge or re-injection for disposal or enhanced production. • EPA is considering further discharge regulations on produced water quality. Oil and Gas Producing States (API, 2005)

7. Water-Energy Issues:Electricity for Water • The connection between energy and water works both ways: • Water is needed for fossil fuel extraction, processing, and electricity generation. • Electricity is necessary for water treatment and water pumping. • Water and wastewater systems consume 3% of the annual U.S. electricity consumption according to a 1999 Electric Power Research Institute report. • In California, an estimated 7% of all electricity consumed is used for pumping water.

8. Water-Energy Issues:Regulations and Legislation • Clean Water Act and its Amendments provide for the regulation of discharges to the Nation’s surface waters • Safe Drinking Water Act requires actions to protect the Nation’s public drinking water supply. • Additional state and regional regulations apply and vary with location. • Energy Policy Act of 2005 instructs the Secretary of the DOE to address issues related to adequate water supplies, optimal management, efficient use of water, and efficient use of energy.

9. Current NETL Energy-Water R&D- Strategic Center for Coal - • In 2002, NETL initiated R&D activities under its Innovations for Existing Plants (IEP) program specifically directed toward developing cost-effective approaches to better manage freshwater use and water quality impacts associated with coal-fired power plant operations. • The program goal is to reduce power plant water withdrawals and consumption by 5-10 percent by 2015 and to minimize potential impacts on water quality.

10. IEP Water Activities • IEP energy-water R&D expenditures averaged approximately $1 million per fiscal year for 2002-2005. • Non-Traditional Sources of Process and Cooling Water • Innovative Water Reuse and Recovery • Advanced Cooling Technology • Advanced Water Treatment and Detection Technology

11. New IEP Projects for FY 2006-07 • The IEP program selected seven additional projects in November 2005 with a total value of more than $5 million. • Development and demonstration of mine water usage to cool thermoelectric power plants • Investigation of the use of condensing heat exchangers to recover water from boiler flue gas • Evaluation of condensing technology applied to wet evaporative cooling towers • Development of membrane separation and scale-inhibitor technologies to enable power plant use of impaired waters • Pilot-scale demonstration of use of a variety of impaired waters for cooling • Demonstration of regenerative heat exchange to reduce fresh water use in plants with wet flue gas desulfurization • Development of scale-prevention technologies and novel filtration methods

12. Current NETL Energy-Water R&D- Strategic Center for Natural Gas and Oil - • The Oil and Gas Environmental Program addresses water-related issues including the injection of water for oil recovery, produced water and its effects on the environment, treatment of process waters, and the availability of water in arid lands. • Individual projects fall into two general categories. • Water management approaches and analyses. • Produced water management technology and beneficial use.

13. Oil and Gas Environmental Program- Water Management Approaches and Analyses - • Effluent limitation guidelines for CBM produced water. • Impacts to underground freshwater sources from hydraulic fracturing of CBM wells. • Evaluation of water and waste issues that could effect the gas and oil industry. • Hydrology, geochemistry, microbiology, geology, and ecosystem dynamics of the Osage-Skiatook Petroleum Reserve sites. • Phytoremediation and salinity reduction of CBM produced waters. • Produced water management practices to extend productive life of oil and gas wells. • Produced water quality and infrastructure GIS database for New Mexico.

14. Oil and Gas Environmental Program- Produced Water Management Technology and Beneficial Use- • Use of ionic liquids for produced water treatment. • Use of infiltration ponds for CBM produced water treatment. • Life cycle assessment of produced water and waste management practices. • Analysis of state programs related to the security, reliability and growth of the nation’s domestic production relating to the use of groundwater. • Hydrophobic aerogel technology to remove organic compounds from drilling and produced waters. • Reverse osmosis through molecular sieve zeolite membranes to treat CBM produced waters. • Computational tool to predict water-soluble organic content in brines from deep-well off-shore oil production. • Validation of toxicity tests to evaluate the potential for beneficial use of produced water.

15. Current NETL Energy-Water R&D- Geosciences Division (OSER) - • Research directed at water issues related to the cradle-to-grave use of fossil energy. • Better understanding of hydrological and geological systems that are impacted by the extraction and use of fossil fuels. • Remote sensing systems and advanced technologies that simplify and reduce the cost and complexity of AMD treatment operations and make use of the beneficial properties of mine water.

16. Geosciences Division (OSER) • Airborne Geophysical Mapping • Application of airborne sensing and geophysical analysis tools for assessment of watershed-scale areas. • Modeling and Laboratory Simulations • Study flow in fractured rock on a microscopic scale. • Core flow laboratory that allows NETL researchers to measure rock properties and permeability at various pressure and temperature conditions • Mine Pool Treatment and Beneficial Use • Construction and evaluation of a water-powered treatment system at an abandoned anthracite mine. • Demonstration of a semi-passive water treatment system, consisting of an overshot water-wheel powered lime feeder installed at a standard aerobic wetland.

17. Current NETL Energy-Water Efforts- Office of Systems, Analyses & Planning- • Analysis and quantification of key effects of potential future climate change on the U.S. electricity sector. • Use of the Energy Information Administration’s 2004 Annual Energy Outlook reference case forecast of electricity generating capacity to estimate future freshwater requirements for both total and coal-based thermoelectric generation. • Study of power plant water consumption focusing on Integrated Gasification Combined Cycle (IGCC) power systems.

18. Recommended Program Areas • Water and Energy Reduction and Recovery from Fossil Fuel Production • Advances in Water Use for Power Plant Cooling • Innovative Water Reuse and Recovery for Power Plants • Technology Development for Use of Non-Traditional Waters • Development and Application of Analyses and Technology Concepts

19. Water and Energy Reduction and Recovery from Fossil Fuel Production • Oil and Gas • Approximately 10 barrels (420 gallons) of produced water are pumped to the surface for each barrel of oil produced in the United States. • Coal Bed Methane • Coal bed methane produced waters are a major issue in Wyoming and Montana. • Coal • Coal mining also impacts freshwater, with the greatest impact due to acid mine drainage.

20. Program Element Description • Water and Energy Reduction and Recovery from Fossil Fuel Production • Produced water is a concern to oil, gas, and CBM producers. Acid mine drainage is a problem faced by coal producers • Current NETL research focuses on produced water and examines treatment and beneficial uses of the water • Proposed program element would continue and expand research on reduction and recovery of energy and of water resources during fossil fuel production.

21. Produced Water Forecast

22. Note: 1 barrel of water equals 42 gallons. Water Production Associated With Coal Bed Methane Extraction

23. Water and Energy Reduction and Recovery from Fossil Fuel Production • Research areas would include: • Produced water management • Approaches to revolutionize water treatment and turn waste by-product into a resource. • Application of various airborne and ground-based geophysical techniques for the mapping of expanding mine pools and as tools for predicting and reducing hydrological impacts for future mining operations. • Engineering post-mining water use for both abandoned and active mining operations. • In-situ water treatment and water handling schemes that would permit energy recovery options.

24. Water and Energy Reduction and Recovery from Fossil Fuel Production

25. Advances in Water Use for Power Plant Cooling • Innovative Water Reuse and Recovery for Power Plants • The United States Geological Survey estimated that in 2000, U.S. thermoelectric generation used approximately 136,000 million gallons of freshwater per day, accounting for approximately 39% of freshwater used in the country. • Technology Development for Use of Non-Traditional Waters • Water quality requirements for many energy applications can be less restrictive than for other applications such as drinking water supplies or agricultural applications.

26. Program Element Description • Advances in Water Use for Power Plant Cooling: Innovative Water Reuse and Recovery for Power Plants • Thermoelectric power generation withdrew an estimated 39% of all freshwater withdrawn in 2000 • Current NETL research involves technologies to reuse power plant cooling water and associated waste heat to recover water from coal and power plant flue gas • Proposed program element would continue and expand current research. Program expansion would involve development of system analysis tools and procedures for systematic power plant management.

27. Freshwater Withdrawal by Sector in 2000 Source: USGS. Estimated Use of Water in the United States in 2000, USGS Circular 1268. March 2004.

28. Innovative Water Reuse and Recovery for Power Plants • Research areas would include: • Cost-effective alternatives to the use of freshwater in power plants via advances in dry cooling through development of better heat transfer materials. • Other improvements in cooling technology that would require less water or involve less consumptive loss. • Recovery of water from high moisture content low rank western coals.

29. Advances in Water Use for Power Plant Cooling: Innovative Water Reuse and Recovery for Power Plants

30. Program Element Description • Advances in Water Use for Power Plant Cooling: Technology Development for Use of Non-Traditional Waters • Water quality requirements for energy applications can be less restrictive than other applications • Current NETL research developments cost-effective approaches to using non-traditional sources of water to supplement power plant needs. • Proposed program element would continue and expand current research. Expansion would involve use of non-traditional waters by all sectors of the power industry.

31. Example of Mine Pool Utilization • Benefits to mine pool water utilization: • Provide cooling makeup water for adjacent and downstream power plants • Provide water to river during low flow to benefit in-stream use and biological systems. • Dilute unregulated point and non-point pollution discharges • Control mine flooding • Improve quality of mine pool/CBM produced waters Source: DOE/NETL. Electric Utilities and Water: Emerging Issues and R&D Needs. Presentation. April 2003.

32. Technology Development for Use of Non-Traditional Waters • Research areas would include: • Non-traditional waters for energy projects located in arid or water challenged areas. • Examination of existing infrastructure issues. • Application of storm water energy recovery approaches. • Use of non-traditional waters by all sectors of the power industry.

33. Advances in Water Use for Power Plant Cooling: Technology Development for Use of Non-Traditional Waters

34. Development and Application of Analyses and Technology Concepts • A broader understanding of issues related to water and energy is necessary to achieve lasting success in their reduction, reuse, and recovery. • Development of analysis and planning tools is integral to the success of the other recommended program areas. • Development of tools, sensors, data, and geographical information systems that enhance understanding of energy- water issues and aid in the development of novel concepts for their mitigation.

35. Program Element Description • Development and Application of Analyses and Technology Concepts • Broader understanding of water and energy issues is needed to achieve lasting success in their reduction, reuse, and recovery • Current NETL efforts include OSAP studies and assessments of complex, large systems and interactions among those systems • Proposed program element would continue and expand current systems analysis. Expansion would involve development of analysis tools, applications, and assessments related to water-energy issues.

36. Development and Application of Analyses and Technology Concepts • Development of tools and sensors to conduct: • Geographical information system (GIS) analysis. • Investigation of the hydrogeology of watershed-scale areas. • Analysis of the cost of water treatment processes. • Assessment of policy and regulatory issues. • Areas of analysis would include: • Reduction of the long-term costs of acid mine drainage. • Water resource needs for longer-term future energy scenarios. • Long-term research requirements.

37. Development and Application of Analyses and Technology Concepts

38. Development and Application of Analyses and Technology Concepts (Continued)

39. Development and Application of Analyses and Technology Concepts (Continued)