Boundary Dam Integrated Carbon Capture Demonstration · PDF fileBoundary Dam Integrated Carbon Capture Demonstration Project 1 ... Near Term Base Load Generating Need •Natural gas

Boundary Dam Integrated Carbon Capture

Demonstration Project

1

Status of Carbon Capture Programs and TechnologyAugust 26, 2010

Presented by

Michael J. Monea, Vice President,

Integrated Carbon Capture & Sequestration

Projects for Saskatchewan Power

Corporation

2

SaskPower Mandate

•Crown Corporation

– Owned by Government of Saskatchewan

•Mandate is to Customers

– SaskPower's mission is to provide safe, reliable and

sustainable power to the people of Saskatchewan.

– Providing customers with power at the lowest

possible cost.

Lignite4

•451,713 customers.

•155,818 km of T&D lines

•3668 MW generation

•6.5% Peak Load Growth-2008

300

MW

150

MW

100

MW

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2005 2010 2020 2025 2030

MW

SaskPower Capacity Position

2015

Forecast Demand

Committed

Capacity

4

Near Term Base

Load Generating

Need

•Natural gas (+wind?)

•Clean coal

•Polygeneration

•DSM

•Biomass

•Imports

•Hydro

•Nuclear

Drops Due to Coal

Retirements?

5

Greenhouse Gas Air Emission

Regulations

• Greenhouse Gas (GHG) Regulations

GHG Requirements (discussed to date):

• 17% below 2005 levels by 2020• Performance standard applies to new coal in 2015 and old coal

beyond 45 year end of life

• Federal Policy– to be determined in 2010

– regulations potentially set in 2015

• Saskatchewan in alignment with Federal government on environmental regulations

Na

t G

as

Co

mb

ine

d

Cyc

le

New

Co

al

Refu

rbis

h

CO2

Sold

CO2

Not

Sold

Refu

rbis

h &

Cle

an

er

Refu

rbis

h

& C

ap

ture

Refu

rbis

h,

Cap

ture

& S

ell

Cost of Electricity

baseline is cost of new

natural gas generation

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7

BD ICCS Demonstration

Why BD3?

1) Valuable Existing Assets

–lowers capital costs = lower cost of electricity

2) Right Size

–1 million tonnes of CO2per year matches enhanced oil recovery

(EOR) market

3) BD3 reaches major decision in 2013

–If no action – default is retirement – 0 MWs

4) Applicable to other aging coal fired units

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SaskPower Clean Coal Objectives

•To develop environmentally sustainable

electricity supply options that utilize

Saskatchewan’s coal resource.

•To ensure that the cost of electricity (COE) from

clean coal is lower than the cost from other

options.

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BD ICCS Demonstration

Five Key Deliverables:

1) Life Extension - Refurbish Unit 3 to allow an additional 30 years

of reliable, safe operation

2) Performance Upgrades - Upgrade Unit 3 criteria emissions

control (SOx, NOx) as well as improve efficiency

3) CO2 Capture Technology – incorporate technology that best

meets our overall Corporate objectives – both near and long term

4) Competitive COE – all of the above to be accomplished with a

COE at or below that of the next lowest supply option – likely Nat.

Gas CC. Likely require a CO2 sale for EOR to achieve

5) In-Service 2013

Project Economics

• Cost of Electricity (COE)= lifetime costs – lifetime non-electricity revenues

• Costs:

– capital cost of the designing, procuring and erecting the plant

– lifetime expenses to operate and maintain the plant

– lifetime cost of fuel

• Revenues:

– revenue from the sale of CO2

– avoided green house gas emissions credit

– subsidy funding from government for first of a kind project

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Unit #3

21

22

CO2 Capture Plant

Construction Forces

• Estimated 1,100 person-years of work;

• Work will begin almost immediately after

project approval, late 2010;

• Peak construction period: mid-2011

through mid-2013 average in range of

300 to 400 people, peaking at

approximately 600 people.

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Boundary Dam Project

Capital Cost Breakdown

30%

43%

27%

CO2 Capture

Refurbishment

Emissions Controls

Efficiency Upgrades

Saskatchewan Experience in CO2 Storage

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Weyburn-Midale

CO2 Monitoring

and Storage

Project

0

5

10

15

20

25

30

35

40

45

50

Jan-55 Jan-61 Jan-67 Jan-73 Jan-79 Jan-85 Jan-91 Jan-97 Jan-03 Jan-09 Jan-15

Primary & Waterflood

Pre CO2

Hz Infills

Vertical InfillsCO2

EOR

Current production at 35 year high

Waterf lo o d

Impro vement

Mb

bls

/d (

Gro

ss)

Total Oil Production at Weyburn

• Around 30,000 bbl/day: a 35-year high

• 20,000 bbl/d are due to the CO2 flood

CO2 stored equivalent to removing more than 8 million cars off the road for a year

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2008 2009 2010 2011 2014 20152012 2013

Existing Power PlantTurbine Commitment x

Balance of Plant Repair Planning and Mobilization Procure, Construct

Turbine Install and BOP repairs Shut down

Process EquipmentSelect CO2 System (vendor & technology) x

Detailed CO2 system design x

Award Process Equipment Supply Contracts x

Detailed design, construction contracts ready x

Construct phase 1 (.5 Mtpy)

Commission phase 1 Start Up

Procure/Construct/comm'n phase 2

EPC Capture Train #1

EIA, Water License Env Approval

EOR - Phase 1SaskPower/E&R/Oil Co#1 agreement x

Oil Co # 1 - detailed modelling

Site Design Install Pilot Facilities

Oil Co #1 - Pilot testing

Final Geo Modelling

Finalize CO2 sale agreement #1 x

Engineer, Procure, Construct

Environmental Approval - surface/EOR

EOR Pilot

Model

Eng

Env Approval EPC

Model

Major Commitment - release for construction

EOR - Phase 2Carbon Capture Train #2 EPC Capture Plant Train #2

Planning, Piloting EPC, Start Up EOR side

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Specify, Design, Award

Process Design, Condition Design•SaskPower

Engineering &

Procurement

Authorization

•CO2 Capture

Proposals Requested

•SaskPower mobilization

plan – on schedule

•Shortlist CO2 Capture

Systems - Complete

•Turbine Contract Awarded

•Public Consultation

•CO2 System Selected

•Environmental/regulatory

issues resolved

•CO2 sale or partnership

complete

•Major equipment contracts

in place

•Decision to Construct

In Service 2013

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