Canadian R&D Activities on CO 2 Capture and Sequestration Presentation to Tsinghua University Beijing, PRC 4 Dec 20

1. Canadian R&D Activities on CO2 Capture and SequestrationPresentation to Tsinghua UniversityBeijing, PRC4 Dec 2001Dr. Kelly Thambimuthu CANMET Energy Technology CenterNatural Resources Canada

2. CO2 Capture and Sequestration

3. Canada’s Kyoto Challenge

4. Importance of CO2 C&S in Canada • Identified as key part of Canada’s Kyoto response • Electricity Table, Oil & Gas Sub-table, Technology Table • Especially important in Western Canada where impacts of Kyoto could otherwise be severe • But significant potential in Central and Eastern Canada • Key to sustainable development of Canada’s coal reserves • Large point sources exist in proximity to storage/ sequestration sites • Some storage sites offer value-added utilization of CO2 (EOR, ECBM) • Some technology aspects fairly well developed but costs are high and uncertainties remain

5. Comparison of Emission Reduction Sources by 2010 (AMG Results)* * (Path “2”, Scenario “Canada alone”, $58 per tonne)

6. Current S&T Projects in Canada CO2 Sources Capture Transpor- tation Storage/ Use Solvent based capture (ITC) Enhanced Oil Recovery (Weyburn) Source Inventories Pipeline (Weyburn) Oxy-fuel Combustion (CETC) Enhanced Coal-Bed Methane Recovery (ARC) CO2 Storage (AGS/GSC) Flue gas capture demo (CCPC)

7. International Projects • Zero Emission Coal Alliance (ZECA) • Sleipner West Field CO2 Injection Project • Deep Ocean Disposal Project (IEA-CTI)

8. Source Inventories (large point sources) • Acid gas reinjection • Already common practice • Existing “pure” CO2 streams ~ 10 Mt/a • Alberta only • From ammonia plants, hydrogen production, natural gas processing, ethylene and ethane production • Flue gases from electricity generation ~ 110 Mt/a • In 1997, coal-fired electricity generation accounted for 18% of Canada’s CO2 emissions (~ 95 Mt/a) • Majority in Alberta (~50%) and Saskatchewan (~15%) • Other large point sources ~ ? • Oils sands, cement, fertilizer plants, etc.

9. Primary Region of Interest for CO2 C&S Alberta & Saskatchewan which form a large part of the western Sedimentary basin

10. Geological Sinks Inventory • Rough estimates of CO2 storage capacity • Western sedimentary basin only • Aquifers - 105 - 106 Mt • Enhanced coal bed methane - 104 - 105 Mt • Depleted natural gas - 103 - 104 Mt reservoirs • Enhanced oil recovery - 102 - 103 Mt

11. R&D in CO2 Capture Technologies • Post combustion CO2 capture with solvents • International Test Center (University of Regina/Boundary Dam) • Oxy-fuel combustion for CO2 enrichment & capture • CANMET Energy Technology Centre (& University of Waterloo) • Coal-fired utility plant demos with CO2 capture • Canadian Clean Power Coalition (Utilities, Coal Producers, Govt)

12. International Test Centre - CO2 Capture with Solvents • Goal: To refine solvent based capture technologies and reduce the energy penalty & cost of capturing CO2 from flue gases. • MEA (base solvent) and MEA alternatives • Optimizing column internals • Process integration • Partners: University of Regina, governments of Canada, Saskatchewan, Alberta and US, international utilities and industry • Two locations: • University of Regina - lab and small pilot scale • Boundary Dam - field pilot on power plant slip stream • Status: • Boundary Dam refit well underway • Sponsored University program just beginning

13. CO2 Capture with Solvents – ITC Facilities Boundary Dam Semi-commercial testing (20-m H18 in. ID) Commercial unit (30-m H 3-6 m ID) U of R Technology development (10-m H12 in. ID) U of R Technology screening (3-m H1 in. ID) U of R Technical feasibility (3-m H4 in. ID)

14. CO2 Capture with Solvents – Column Packings Structured Packing Random Packing 16-mm Pall Rings IMTP#15 Mini Rings Gempak 4A

15. Boundary Dam Unit on Power Plant Slip Stream

16. CETC - Oxy-fuel Combustion Technology Oxy-Fuel Combustion Research - burner development - integrated emissions control research - novel mercury control prospects Stack Gas CO2 Recovery Process Development - software development - system energy optimization for retrofit case study Cooling Flue Gas CO2 Product Compression Cooling CANMET CO2 Consortium - phase 6 program started with new work in advanced cycles - legal framework established with steering committee Partners TransAlta McDermott Tech. EPCOR US DOE Sask Power Alberta Government Ontario Power N.S. Power

17. A Vision for Oxy-fuel Combustion Steam Reforming or Gasification Direct Combustion Oxygen Zero Emissions and Increasing Efficiency CO2 Retrofit Applications New Cycles & Infrastructure Hydrogen or H2 Carriers Electricity and/or Heat

18. Boiler Island Boiler Island Oxy-fuel Combustion with Coal N2 to atmosphere Retrofit Case Coal CO2 (80%) 95% O2 ASU CO2 Capture 3% air infiltration CO2 (98% @ 150 bar) Recycled flue gas N2 to atmosphere New Plant Case Coal CO2 (>80%) +99% O2 ASU CO2 Capture Higher volume% O2 in Feed CO2 (98% @ 150 bar) Recycled flue gas

19. CETC Research Activities 1995 1996 1997 1998 1999 2000 2001 2002 Phase 1 - Commissioning Phase 2 - O2 / synthetic recycle Phase 3 - O2 / real recycle - CFD modeling Phase 4 - O2 / CO2 for retrofits - emissions and TE surveys Phase 5 - improved CFD simulations (kinetics, NOx) - integrated emissions work (ESP and CHX) - process modeling (boiler and plant) Phase 6 - O2 / CO2 burner concept and scale-up - enhanced HG removal in CHX - advanced power cycles (pressurised)

20. CETC Vertical Combustor Pilot Plant

21. Oxy-Fuel Combustion Research Obtain experimental results using a variety of oxygen enhanced firing techniques and fuels Investigate the role of kinetics and pollutant formation mechanisms in high O2 and CO2 environments Validate Computational Fluid Dynamic (CFD) model GOAL: novel O2/CO2 burner concept and combustor/boiler operating conditions

22. Pilot-scale Validation of CFD Models T O2 NO CANMET vertical combustor 0.3 MWt, 8.3 m x 0.61 m ID

23. Integrated Emissions Control Investigate NOx, SOx, fine particulates and trace element capture mechanisms in a condensing environment Develop chemistry that addresses more than one pollutant at a time GOAL: novel multi-pollutant control process

24. Condensing Heat Exchanger (CHX®)

25. Advanced Power Cycles Pressurized (Syngas/CH4)/O2/CO2 combustion……… Syngas/CH4 burned at pressure with O2 in recycled CO2 Advantages: CO2 rich product stream available at pressure Disadvantages: higher capital cost for pressurized combustion

26. Gas Turbine Combined Cycles Semi Closed Gas Turbine cycle…. Advantages: CO2 rich product stream available efficient in combined cycle mode Disadvantages: development time for turbomachinery

27. Gas Turbine Combined Cycle

28. Fuel Cell - Gas Turbine Cycle Fuel Cell - Gas Turbine cycle…. Syngas or CH4 reformed for use in pressurised fuel cell which exhausts to turbine Advantages: CO2 rich product stream available efficient in combined cycle mode Disadvantages: limited size of current fuel cells

29. Recent Program Achievements • Second generation oxy-fuel burner installed and tested, excellent CFD code validation • New ESP and Condensing Heat Exchanger (CHX) installed, excellent scrubbing of SO2, strong possibilities for integrated treatment of mercury • HYSYS Extensions developed for boiler performance prediction in O2/CO2 environments • Comparative economics developed for 400 MWe PC fired power plant retrofit (O2/CO2 vs. MEA) • Successful Consortium Meeting (June 2001)

30. CETC Program - Near Term Initiatives • Investigate the fine particulate and mercury removal prospects of the CHX® ( Q4:2001 ) • Third generation O2/CO2 burner design, testing and scale-up studies ( Q1:2002 ) • Development of field demonstration opportunity for O2/CO2 combustion (Q2:2002 )

31. Canadian Clean Power Coalition • Goal: Full-scale demonstration of coal-fired power plant with capture of CO2 and virtual elimination of other emissions • Retrofit ~ 2006 • Greenfields ~ 2010 • Partners: Utilities, coal producers, federal and provincial governments • Location: lead performers and plants not yet defined • Status: • Discussions among sponsors completed • Currently letting contracts on Phase 1: Engineering feasibility assessment of technology options

32. Schedule for Demonstration Plants 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Feasibility Studies End-Result : Proven retrofit technology which meets all emission control needs Retrofit Technology Development Feasibility studies completed and technology design selected Retrofit completed and plant is operating End-result:Advanced technology for coal power plant demonstrated. New Coal Demonstration Plant Technology selected New technologies developed through R&D Plant built and operating

33. R&D in CO2 Storage and Use • Enhanced Coal Bed Methane Recovery (ECBM) • Alberta Research Council and Supporting Consortium • CO2 Storage Capacity • Alberta Geological Survey and Canadian Geological Survey • Enhanced Oil Recovery (EOR) - Weyburn • Petroleum Technology Research Center and Consortium

34. Enhanced Recovery of Coal-Bed Methane • Goal: Injection of CO2 into deep coal beds to sequester CO2 and to enhance coal-bed methane recovery • Partners: Alberta Research Council, Governments of Canada, Alberta, U.S., U.K., Australia, Netherlands, industry (oil & gas, utilities) • Location: at the Fenn Big Valley Field, Alberta. • Status: • Phase 3A is underway

35. 1. Rocky mountain foothills region 2. Plains region 200 Tcf 68 Tcf Remaining Established Conventional Gas Reserves in 1995 CBM Resources In-Place (CGPC 1997) CBM Resources of Western Canada

36. Coal-bed Methane Recovery in Canada • At the present time, no large-scale commercial recovery projects • In general, Alberta coals have very low permeability compared to San Juan Basin coals • Gas production rates are low • Needs enhanced coalbed methane (ECBM) recovery technology to improve to economical recovery rates

37. Adsorptive Capacity – San Juan Basin Coal

38. MATRIX CH4 CH4 H2O + N2+ CH4 N2 Reduce Methane Partial Pressure in Cleats CH4 CH4 CH4 N2 - Enhanced CBM Recovery Mechanism • Inject Nitrogen in Cleats • Keep Total Cleat Pressure High • Reduce Partial Pressure of Methane • Methane Desorbs from Matrix and Diffuses to Cleats • Methane and Nitrogen & Water Flow to Wellbore

39. CO2 - Enhanced CBM Recovery Mechanism • Inject Carbon Dioxide in Cleats • Keep Total Cleat Pressure High • Reduce Partial Pressure of Methane • Carbon Dioxide Diffuses into Matrix and Adsorbs onto Coal • Methane Desorbs from Matrix and Diffuses to Cleats • Methane & Water Flow to Wellbore MATRIX CO2 CO2 CH4 CH4 H2O + CH4 Reduce Methane Partial Pressure in Cleats CO2 CH4 CO2 CH4 CO2 CH4

40. P P I P P Forecast 5-Spot Pattern CBM Production

41. Forecast 5-Spot Pattern CBM Production Product Gas Composition

42. Forecast 5-Spot Pattern Cumulative CBM Production

43. Flue Gas CO2 N2 N2 Separation CH4 to Sales Injection Coal Green Power Plant Deep Coalbed CO2 CH4 CH4 CH4 Open Cycle Concept for ARC ECBM Recovery with CO2 Sequestration • Enhanced coalbed methane (ECBM) recovery • Sequestration of CO2

44. CO2 Closed Cycle Concept for ARC ECBM Recovery with CO2 Sequestration Flue Gas N2 CO2 N2 Separation Injection Unmineable Coal bed CH4 CH4 CH4

45. ARC ECBM RecoveryProject Measure Resource Properties of Alberta CBM Reservoirs Measure Flue Gas Composition versus Reservoir Response Improve Predictive Capability of ECBM Reservoir Simulators Model to Calculate Costs of Flue Gas/CO2 Source Economic Evaluation of CO2-ECBM Reservoirs in Alberta

46. ARC ECBM RecoveryProject PHASES YEAR 1997 Proof of Concept for Alberta I 1998 Single Well CO2 Micro-Pilot II In Deep Coals >1000 meters 1999 Single Well Flue Gas Micro-Pilot III-A Drill Shallow Coals <500 meters 2001 III-A 2002 5-Spot Enhanced CBM Production III-B 2003 CO2 Sources III-B Targeting of Best CBM Reservoirs 2003 1998--

47. Outcome of ARC Single Well Micro-pilot Tests with N2, Flue Gas & CO2 • All single well micro-pilot tests were successful • Coal characterization completed • CO2 sequestration in coalbed is feasible • High quality data base available for numerical model validation • Injection & production rates • Composition vs. time • Bottom-hole pressure & temperature

48. A Cost Challenge for ECBM with CO2 Flue Gas $ 0.7 – 4/t Per 100 km Compression Pipelining Separation $ 8 - 10/t $ 30 - 50/t Injection $ 2 - 8/t $20/t ? Geological Formations

49. CO2 Storage Capacity of Canadian Coal Seams • Goal: To understand the adsorptive capacity for CO2 of representative coal samples from coal seams in Canada. • Partners: GSC, NRCan, Alberta Geological Survey • Location: Alberta. • Status: Underway

50. Coal Bearing Regions of Canada