CARBON SEQUESTRATION: CHALLENGES AND UNANSWERED QUESTIONS

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CARBON SEQUESTRATION CHALLENGES AND UNANSWERED
QUESTIONS

• By
• Theresa Pugh
• Director, Environmental Services
• American Public Power Association
• Presented to
• Engineering Operations Technical Conference
• April 17, 2007
• Atlanta, GA

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WHAT IS APPA?

• 2000 Municipal, State Utilities Which Are
  Community Owned
• Payment In Lieu Of Taxes Returned To General City
  Revenue For Fire, Police, Library, Schools
• Money Must Be Spent Wisely Low Risk Tolerance
  For Failure
• Results Must Satisfy Mayors, City Council And
  Utility General Managers

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APPA PERSPECTIVE ON CO2 CONTROL

• APPA Supports Voluntary CO2-Mitigating Steps
• Signatory on the Presidents Climate Vision
  Memorandum of Understanding to Reduce
• GHG emissions intensity by 18 by 2018
• Power sector GHG by 3-5 below 02-03 baseline
• APPA Tree PowerTM Program
• Provide shade, improve photosynthesis, reduce CO2
• Golden Tree Award one tree per customer served

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APPA MEMBERS ACTIVE IN IGCC

• At Least Two New Public Power IGCC Plants In
  Progress
• Orlando Utilities Commission/Southern Company
• Energy Northwest
• Key Concern Will Scheduled Outages Be More
  Frequent?
• Many public power communities small
• 6 weeks per year problematic costly to buy on
  market
• Energy Northwest target 92-96 w/spare gasifier

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APPA RECOGNIZES IGCC OFFERS ENVIRONMENTAL
ADVANTAGES

• Control of Criteria Pollutants
• SO2 to 99
• NOx to lt 0.05 lbs/MBtu
• Particulate Matter lt 0.010 lbs/MBtu
• Thermal Efficiency
• Present capability 38-40
• Future potential to gt50
• Combustion Byproducts 1/100th of Conventional by
  Volume

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IGCC vs. ADVANCED PC COST1

• Basis Cost of Generating Electricity (Amortized
  Capital and Production)
• CO2 Control NOT REQUIRED
• IGCC gt Advanced PC by up to 20
• CO2 Control REQUIRED
• IGCC lt Advanced PC by 10-20
• Alternative What is /MWh Premium for CO2
  Control?
• Advanced PC CO2 control 70 premium
• IGCC CO2 control 25-35 premium
• Includes conveyance cost of 2800 psig pipeline

1. Source Coal-Fired Generation At The
Crossroads, EPRI Journal, Summer, 2005
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IGCC GENERALIZATION

• IGCC Must Be Applicable to All Coals
• Current demo mix limited to narrow range
• Multi-fuel designs being explored (Energy
  Northwest)
• EPRI Matrix of Gasifier Designs Required
• 3 types of entrained-flow
• 2-3 transport-flow
• 8 SOA Designs Needed (Coalfleet For Tomorrow)
• APPA Members Have Experienced Limited Coal
  Choices in Recent Years
• Transportation, costs, labor, force majeur, other
• Will IGCC make captive rail better or worse for
  utilities?

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IGCC RELIABILITY

• Most Reliable Demo Wabash River 79
• Do Public Power Towns Have To Build Two-Gasifier
  Designs, Or Two Separate Units?
• Provisions of the National Energy Policy Act of
  2005 Testify to Evolving Technology Status
• 1.8 B Clean Coal Power Initiative 70 to IGCC
• APPA supports DOE funding for RD and pilots
• 800 M investment tax credits for IGCC but not
  eligible for APPA members since not tradable

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SEQUESTRATION UNKNOWNS

• Carbon Dioxide Capture and Storage1 (Battelle)
• ..CO2 injection can be considered an
  established technology.
• .large-scale deployment of CCS
  systems.requires the continued development and
  field demonstration of more advanced drilling and
  CO2 injection schemes.
• IPCC Report2 (2005)
• there must be hundreds, and perhaps thousands,
  of large scale geologic storage projects..
• thirteen key questions (page 204) discussed and
  addressed

• Carbon Dioxide Capture and Geologic Storage,
  Global Energy Technology Strategy Program Phase
  2, April, 2006.
• Carbon Dioxide Capture and Storage,
  Intergovernmental Panel On Climate Change, Final
  Report, Cambridge University Press, 2005.

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SEQUESTRATION WHATS INVOLVED?

• Reference 1 GW Generates 30,000 tons CO2/d
• Inject as Supercritical Fluid (Acts Like Both a
  Liquid and Gas)
• To 1/2 Mile or Deeper to Minimize Volume
• CO2 Once Injected is
• less dense than encased fluids, and under
  pressure
• Will migrate both laterally and up
• Can diffuse, adsorb, mineralize, and solubilize
• Can we predict the ultimate fate?
• 1 GW Plume Spreads to 100 km2 (100 m Thick)

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CANDIDATE CO2 RESERVOIRS
Reservoir Features Trapping Global/US Capacity,GT
Deep Saline Formations Sandstone, carbonate w/voids Hydrodynamic, dissolution, mineralization 9,500/ 3,630
Depleted natural gas Similar to above 700/35
Depleted oil Pores from extracted oil 120/12
Deep unmineable coal seams CH4 attached to coal Chemisorption displacing CH4 140/30
Deep saline-filled basalt formations Porous zones rich in Fe Hydrodynamic, dissolution, mineralization Unknown/240
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RISKS FROM GEOLOGIC CARBON SEQUESTRATION
CO2 RISKS
Global
Local
Release of CO2 to the atmosphere

• CO2 in Atmosphere or
• Shallow Subsurface
• -suffocation of
• humans or animals
• ecosystem impacts
• (tree roots, burrowing animals)

• CO2 Dissolved in
• Subsurfaces
• -mobilization of metals,
• other contaminants
• Contamination of potable water
• Interference with deep
• subsurface ecosystems

• Quantity-Based
• -ground heave induced seismicity
• Contamination of drinking water by
• displaced brines
• Damage to hydrocarbon production

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CARBON SEQUESTRATION SEND IN THE LAWYERS
Proposal Summary
FutureGen Final Request for Proposal (3/2006) The offerer agrees to take title to the injected CO2 and indemnify the FutureGen Industrial Alliance and its members from any potential liability associated with CO2. Adequate indemnification?
Texas House Bill 149 (5/2006) Texas Railroad Commission shall acquire title to CO2 captured by a FutureGen project. Does this cover utilities and property damage claims?
Failed Costello amendment to HR 5656 (6/2006) U.S. Department of Energy indemnifies FutureGen consortium and companies for any legal liability arising out of, or resulting from, the storage, or intentional release, of sequestered emissions, up to 500 M per incident. Citizen suits?
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LIABILITIES SITING
Issue Responsibility Precedent
Create large, legal single units or fields State legislature, courts state oil and gas offices TX All parties must agree to unitization.
Characterize geophysics of field State oil and gas office TX Rich precedent from which to draw. CA None.
Long-term risks Unsure TX, CA Uncertainty in determining responsible party.
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LIABILITIES OPERATIONAL
Issue Responsibility Precedent
Damage to human health, environment OSHA, EPA state underground injection controls TX, CA Strong precedent for consumer, health protection.
Damage to groundwater EPA, state underground injection controls TX, CA Responsibilities unclear.
Geologic hazards OSHA, EPA state underground injection controls TX, CA Have regulated injection pressures no defining case law.
Damage to hydrocarbons State oil and gas office Mineral owners compensated in CA but not TX.
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LEARN FROM THE PAST?

• Per Battelle1 and IPCC2, Catastrophic Failure and
  Damages Unlikely However
• Lake Nyos, Nigeria Fatal Release of CO2
  Resulting in 1700 Deaths (1987)
• Mammoth Mountain CO2 Leaks of 1200 Tons/d Varied
  with Seismic Activity (1990-1995), Damaged Trees
• Other Unintended Consequences Underground
  Storage Tanks, MTBE
• DOD Injections Of Wastes In Colorado In 1970s And
  Seismic Activities

• Carbon Dioxide Capture and Geologic Storage,
• Global Energy Technology Strategy Program Phase
  2, April, 2006.
• Carbon Dioxide Capture and Storage,
  Intergovernmental Panel
• On Climate Change, Final Report, Cambridge
  University Press, 2005.

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SUMMARY

• APPA Supports Demo of IGCC, Sequestration Broad
  Technology Array Required
• Taxpayers Money Always Requires Caution
• Sequestration at EOR Not Same As Utility
• Sequestration at Utility Sites is Highly
  Uncertain Caution Should Be Exercised
• Unknown consequences severe?
• Long time constants advise slow and steady
• Learn From The Past ?CERCLA NRDA
• APPA Supports IGCC Where Units Provide Collateral
  Environmental, Economic Benefits

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Theresa PughDirector, Environmental
ServicesAPPA202/467-2942tpugh_at_appanet.org