1 Energy and the Environmental Challenge Annual General Meeting & Symposium Vancouver, June 2011 Eddy Isaacs, FCAE CEO, Energy & Environment Solutions.

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Energy and the Environmental Energy and the Environmental ChallengeChallenge

Annual General Meeting & SymposiumVancouver, June 2011

Eddy Isaacs, FCAECEO, Energy & Environment Solutions

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OutlineOutline• Trends in global CO2 emissions

• Introduce Alberta Innovates - Energy and Environment Solutions (EES) Climate Change & Emissions Management Corporation

(CCEMC)

• Oil Sands – GHG reduction strategy• Potential for renewable energy (Alberta case)

Waste biomass conversion

• Energy Modelling• Final Comment

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IEA Sounding the Alarm on Global GHG IEA Sounding the Alarm on Global GHG EmissionsEmissions• IEA Estimates* (May 29th 2011, Guardian Article)

2008: 29.3 gigatonnes of CO2

2009: 29.0 “ 2010: 30.6 “ (highest ever)

• Small effect of the recession on emissions• 80% of current power stations will still be in use in

2020 locking in 11.2 Gt • Gap in scaling back on nuclear cannot be filled by

renewables increase reliance on fossil fuels • Continued shift to unconventional resources

*Upcoming World Energy Outlook (2011)

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The Unconventional RealityThe Unconventional Reality

Conventional 0il & Gas

Oil Shale

Bitumen

Tight Gas

CBM

Shale Gas

Gas Hydrate

Gas-to-liquids

Heavy Oil

Deep GasBiofuels

CostsEnergy IntensityGHG Emissions

Tight Oil

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The Global Energy The Global Energy Intensity of Intensity of Producing and Producing and Refining Crude Oil Refining Crude Oil will Continue to will Continue to IncreaseIncrease

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• Resource between 10 to 20 BB 2010 Prod. ~ 400 kBbl/d

• Resource estimates likely low

• Prospective plays could add more resource Tuscaloosa - central

Louisiana and southern Mississippi may hold resource of 7 BB

Significant Tight Oil ResourcesSignificant Tight Oil Resources

Unconventional Oil Sub-Group, National Petroleum Council –Dec. 2010 Draft

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Energy & Environment Solutions (EES)Energy & Environment Solutions (EES)

Who we are? Who we are?

Technology arm of the Alberta Government in energy and

environment

Technology arm of the Alberta Government in energy and

environment

One of four new corporations launched in January 2010 under

the Alberta Innovates banner

What we do?What we do?Position Alberta for the future in

energy and environmentPosition Alberta for the future in

energy and environment

Identify, evaluate, select technologies and partnersIdentify, evaluate, select

technologies and partners

Invest in research & technology with industry & international

collaborators

Invest in research & technology with industry & international

collaborators

From To

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EES Strategic Priorities – Expanded Mandate and EES Strategic Priorities – Expanded Mandate and More Balanced ProgramsMore Balanced Programs

Energy Technologies• Recovery & Processing• Clean Carbon• UnconventionalGas

Renewable & Emerging Resources

• Renewable Energy• Alternate fuels

Environmental Management

• Oil Sands tailings• Enhanced Ecology• Carbon Capture & Storage

Water Resources

• Water - People, Nature & Economy

• Research & Knowledge Transfer

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EES Technical Arm of CCEMC*EES Technical Arm of CCEMC*A new approach for advancing transformative technology•16 projects approved in Round #1 and #2

Energy Efficiency : 12 projects - $33 M

Renewables: 5 projects - $38 M

Cleaner Energy Production and CCS: 5 projects - $28 M

•Round 3 – announcement shortly•Round 4 - underway

*Climate Change & EmissionsManagement Corporation

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EES’ Oil Sands Technology Framework - Room to EES’ Oil Sands Technology Framework - Room to Improve LCA* Emissions Improve LCA* Emissions

• Efficiency improvements – thermal recovery, mining, upgrading Energy intensity of water treatment for

steam

• New wave - efficient oil sands production technologies

• Next generation upgrading technologies - integration with gasification and CCS Partial upgrading

• Integration of renewables and nuclear

Research & technology adaptation costsLarge scale deploymentTime horizonCapacity – human, infrastructure

*Life Cycle Analysis

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Impact of Increased Water Recycle on GHG Emissions Impact of Increased Water Recycle on GHG Emissions

90 92 94 96 98 100

Ener

gy (G

HG

)

Produced Water Recycle Rate (%)

High TDS

Low TDS

*zero liquid discharge

EES Study:• Assess Impact of ZLD* on energy

use

o Capital & operating costs

• New technology opportunities

• 9 Companies , ADOE, AENV, ERCB

EES Study:• Assess Impact of ZLD* on energy

use

o Capital & operating costs

• New technology opportunities

• 9 Companies , ADOE, AENV, ERCB

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Our Focus - Advanced Technologies to Decrease GHG Our Focus - Advanced Technologies to Decrease GHG Emissions and Water UseEmissions and Water Use

Decrease Fresh water Use

Dec

reas

ing

GH

G E

mis

sion

s

SAGD, CSS

Best-in-class SAGD

Energy EfficiencySAGD, CSS

Steam-solvent

Electrical heating

Combustion

Non-aqueousExtraction

Surface Minning

Energy Efficiencyrefining, mining

Current

5 - 10 years

10 - 20 years

CCS

In situ and Mining

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Potential for Oil Sands to be as GHG Clean Potential for Oil Sands to be as GHG Clean as Conventional?as Conventional?

#3 in 2018

432

range of conventional oil range of conventional oil

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Alberta’s Renewable Energy ResourcesAlberta’s Renewable Energy Resources

Bioenergy:

In 2009, Alberta produced 40+ million tonnes of grain and biomass from crops. The forest industry harvested 24 million cubic meters of wood.

Geothermal:

Solar:

Alberta sunny enough?

Wind:600 MW + current10,000 MW proposed

Harvest heat from 400,000+oil & gas wells

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Bioenergy Drivers and ChallengesBioenergy Drivers and Challenges

Drivers• Large resource for decentralized power and heat

generation• C-Neutral Fuel status• Incentives for a wide variety

of bioenergy products Renewable Fuel Standards Biofuels Credit Program Greening Energy production CCEMC*

Drivers• Large resource for decentralized power and heat

generation• C-Neutral Fuel status• Incentives for a wide variety

of bioenergy products Renewable Fuel Standards Biofuels Credit Program Greening Energy production CCEMC*

Challenges• Sustainable supply• Low energy density• Energy efficiency• Cost• Life Cycle Analysis

challenges C-Neutral designation

Challenges• Sustainable supply• Low energy density• Energy efficiency• Cost• Life Cycle Analysis

challenges C-Neutral designation

* Climate Change and Emission Management Corporation

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Edmonton Waste Management Centre with MSW Edmonton Waste Management Centre with MSW Biofuels FacilityBiofuels Facility

BiofuelsFacilityBiofuelsFacility

AdvancedEnergy ResearchFacility

AdvancedEnergy ResearchFacility

Courtesy: City of Edmonton

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MSW 100 million t/yr

Ethanol 35 million litres/year

Biofuel Plant

• 90% reduction of landfill • GHG reduction of more than • 3 t of CO2 per tonne of waste

Eliminates methane emissions from land sites Replacement of fossil fuel/coal CO2 removal and recovery

• Meets renewable fuel mandates

Advantages of Biofuel Plant Advantages of Biofuel Plant

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Advanced Energy Research Facility (AERF) Advanced Energy Research Facility (AERF) December, 2010 December, 2010

Research Building Pilot Plant

AERF Management StructureJoint EES/City Steering Comm. • Technical CommitteeSchedule• Commissioning July 2011• Issue prospectus • Invite expressions of interest from process developers and R&D organizations

AERF Management StructureJoint EES/City Steering Comm. • Technical CommitteeSchedule• Commissioning July 2011• Issue prospectus • Invite expressions of interest from process developers and R&D organizations

Courtesy: City of Edmonton

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Advanced Gasification & Syngas Plug-and-Play Advanced Gasification & Syngas Plug-and-Play Pilot & Bench Scale R&D Facility Pilot & Bench Scale R&D Facility

• R&D for Biofuels Industry, universities & other initiatives• Test biofuels, coal, coke and fossil-biomass blends• Evaluate advanced membrane processes- O2, CO2, H2 • R&D on advanced syngas conversion processes• Unique facilities can attract global players

• R&D for Biofuels Industry, universities & other initiatives• Test biofuels, coal, coke and fossil-biomass blends• Evaluate advanced membrane processes- O2, CO2, H2 • R&D on advanced syngas conversion processes• Unique facilities can attract global players

Gasifier

FeedSystem

SyngasCleanup

Syngas Reformer

Acid gasremoval

CO2

RecoveryMethanolSynthesis

Bench-scaleResearch Facility

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Models to Develop and Evaluate Energy and GHG Models to Develop and Evaluate Energy and GHG EmissionEmission

• The objective is to critically understand the energy, GHG emission and water flows

• To assess the impacts of potential policy measures or targets related to GHG mitigation, water management and energy demand and supply

• Forecasting tool

• Overall aim is to develop a substantive modeling capacity

Dr. Amit Kumar – University of Alberta

Energy Demand

Energy Transformation

Energy Resources

Environmental Database(EDB)

The model was the “Long-Range Energy Alternatives Planning (LEAP) System”

LEAP MODULES

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Long-Range Energy Alternatives Planning (LEAP) SystemLong-Range Energy Alternatives Planning (LEAP) System

• Evaluation tool for integrated resource planning and assessing GHG mitigation impact based on set assessments/scenarios

Demand

House hold

Commercial

Industrial

Agricultural

Single detached

Single attached

Apartment

Mobile home

construction

Smelting and Refining

Petroleum refining

Cement

Chemical

Iron and Steel

Other Manufacturing

Forestry

Mining

Paper and pulp

Space heating

Water heating

Lighting-Electricity

Space cooling

Appliances

Space heating

Water heating

Lighting

Space cooling

Appliances

RefrigeratorFreezerDishwasherWasherDryerRangeothers

Transportation

Passenger

Freight

Pipeline

Demand

House hold

Commercial

Industrial

Agricultural

Single detached

Single attached

Apartment

Mobile home

construction

Smelting and Refining

Petroleum refining

Cement

Chemical

Iron and Steel

Other Manufacturing

Forestry

Mining

Paper and pulp

Space heating

Water heating

Lighting-Electricity

Space cooling

Appliances

Space heating

Water heating

Lighting

Space cooling

Appliances


Transportation

Passenger

Freight

Pipeline

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Example – Household SectorExample – Household Sector

Space heatingWater heatingLightingAppliances

Electric furnaceNG furnaceHeating oil furnaceOthersWood furnace


Electricity

ElectricityNG

House hold

Single Detached

Single attached

Apartment

Mobile


Space heatingWater heatingLighting-ElectricitySpace cooling-Electricity

Appliances

Space heatingWater heatingLighting

Appliances RefrigeratorFreezerDishwasherWasherDryerRangeothers

Electric furnaceNG furnaceHeating oil furnaceOthersWood furnaceSteam

Electricity

Electricity

ElectricityNG





Electricity

ElectricityNG




Electricity

ElectricityNG





Electricity

ElectricityNG

Electricity

ElectricityNG

House holdHouse hold

Single Detached

Single attached

Apartment

Mobile




Appliances


Appliances


Appliances


Appliances RefrigeratorFreezerDishwasherWasherDryerRangeothers


Electricity

Electricity

ElectricityNG



Electricity


Electricity

Electricity

ElectricityNG

Electricity

ElectricityNG





Electricity

ElectricityNG



Electricity

ElectricityNG

ElectricityElectricity

ElectricityNGElectricityNG

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Final CommentFinal Comment• Canada has the resources and the capacity to become

a “Sustainable Energy Superpower”• Persistent visionary leadership is vital

Innovation and technology development - a key part of the strategy

• Cost barriers remain a major challenge technology is key

• Balanced portfolio to focus on the key technical, environmental and economic challenges Significant technology advances are being made through

Industry-Government partnerships

1 Energy and the Environmental Challenge Annual General Meeting & Symposium Vancouver, June 2011 Eddy Isaacs, FCAE CEO, Energy & Environment Solutions.

Documents

global energy intensity

mining slide

cleaner energy production

ercb slide

draft slide

crude oil

upcoming world energy

oil gas wells