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Keynote Address Part 3

Mon, 8 Sep 2008|

Dr. Eddy Isaacs, Executive Director, Alberty Energy Research Institute, gives the second of three keynote speeches at the Oil Sands Heavy Oil Technologies Conference, July 2008.



I. Okay. Doctor Eddy Isaacs as executive director of the Alberta energy research institute. He has responsibility for Alberta strategic directions and investments in areas of energy innovation including conventional and unconventional oil and gas. Coal petrochemicals. Renewable energy in carbon and water management. He goes without saying that I'm gonna say it anyway doctor Isaacs has a lot and in an intellectual ground to cover. As you can read his bio he has the background cover. Ladies and gentlemen. Doctor Eddy -- Good morning everybody. First of all like to thank the conference organizers especially about -- -- -- Four -- inviting me here. And I'm honored to be here. First to talk a little bit about carbon emissions management. It is becoming increasingly urgent. Given the policy instruments that are being applied globally. Especially in the US the European Union and in Canada that things like carbon offsets. Cap and trade. Carbon tax. Low car fuel standards. And standards for new coal and oil sands plant in relation to carbon capture and storage. So I wanted to address this. In view the constraints error carbon constraints that are placed. Will be placed on the industry. And what are the tech -- technology and potential solutions. Works thank -- Just quick note about the Alberta energy research institute. It is the strategic technology -- the Alberta government mission to develop clean energy resources. And to position -- and for the future in energy and our approach is one of partnership and international cooperation. Looking at the oil sands in the growth of oilsands production this is a figure from the ER CB. You concede that there is a 125 million barrels a -- That's being exported in 2006. That's an 18%. Growth over 2005. And if we projected 2016 and project this kind of -- 2016. We're really looking at 75% of Canadian production coming from the -- sense that's a very large number. When I started out. As a researcher in oilsands. That number was 4%. So in the last. Won't tell you along about ones but. In the last number of years the growth has been. Quite significant. With that growth of course comes. The energy that's needed to extract. Whether it's in surface mining operations upgrading and -- -- you. And that most of that energy is provided by natural gas. And so this slide. Looks at the requirements in oilsands on a per barrel basis. -- -- -- projects today that you steam assisted gravity drainage and cyclic steam stimulation. Do use our large natural gas consumers. And also. Upgrading is is is use is a large natural gas consumer and as you. Improve the quality of the oil because you need more hydrogen. To do that of course you're. In consumption. Goes up. So if we look at. The reported. Alberta THG emissions by facilities type this doesn't include residential or transportation. You can see that the oil -- do represent a good chunk the emissions. They're led by colds. About half. What we the emissions from coal fire plants but the -- certainly are quite significant and asked the production growth so will be -- -- on the business as usual. Type of scenario. The the the truth is is that -- are very few. Concentrated sources so -- 890%. Of the sources. CO2. From the oilsands is an example and also here. -- -- plants are below 15%. So. The most of the emissions that we're looking at -- from low concentrated streams and now of course that has an application. For the kinds of technologies that one could use. So what are wanted to do is actually look at some of the technology auctions where -- each year reduction of focus on the oilsands. The philosophy being is that no solution. Is gonna work well. For. For everybody everywhere so we're we're gonna have to look at a number of options. Those are increasing efficiency of operation. Reduction in energy intensity of existing processes switching to new generation processes -- talk about these. Fuel switching. And of course carbon capture storage and I'll start with carbon capture and storage business is very much. Large part golfers plan as Lan has indicated just before. So look at carbon capture storage. The good news is that we've got many places to put the -- -- -- the western Canadian sedimentary basin is an excellent. Storage there's excellent storage place for see you choose instead of emitting it into the year were putting back into the ground from. Where it came from. -- so there are large capacities for storage and a lot of high -- screen has been done to look at. Places where they can be stored of course we have the sources U -- well which can be yet which can be captured. Can store. And what's happening right now. Some of the projects that are our organization involved live. Is now starting to delineate. The reservoirs. That we're at this storage can happen and this is an example of saline information. In addition to that girls looking at you are potential as well and what we're doing here is to delineate. And the reservoirs and also to analyze the subjectivity into these reservoirs see you -- These are as I mentioned saline for mention -- a number of complementary initiatives that are taking place. They involve. Where do we place a pipeline. What are the -- -- formation and you are operations that -- that that can be maximized. In placement of a pipeline. Looking at open knock aquifers. Looking at reef systems. And also looking. Diesel sand so a lot of work is going on on the geological storage. And alleviating the -- -- -- What about the capture side. CO2 capture and separation. He is an important aspect of this it is a large part of the cost. Associated with it and and fortunately these costs are quite significant. And need to come down quite a bit before. We can under -- -- scale. Commercial operations this chart shows the cost reduction versus time to commercialization. Of a number of technologies. Listed here this comes from US -- files recent report. And you can see that whereas. We've current technology. The costs are high as we move to newer newer technology and the emphasis should be. On putting a lot of focus on. More cost efficient technology that -- will take time to commercialization. But that's the reality. The situation as we move forward on her capture and storage. Just to take an example. Of post combustion of -- to capture. Using I mean scrubbing as an example it is really one of the only options we have for legacy lines. And facilities that use process heaters and industrial. Boilers and see that the good news is that you can achieve very high. Capture. The bad news is that there is a significant energy penalty to -- eight there's a high cost especially for -- systems as well. And just to take to this further -- is to show. The cost of power this is again for -- US Department of Energy study. Looking -- cost of power without and with CO2 capture for higher rank -- Looking -- integrated gasification combined cycle natural gas combined cycle. Pulverized schools up critical part of our schools super critical. -- as the kind of -- yet of course this is all very much site specific but for this. Situation in commercial level -- -- cost of electricity. If you add to that carbon capture. -- really looking at power costs and increase quite substantially. And they're quite substantially higher because of the energy penalty she paid. Primarily for the captures side. So lot of work needs to be done on. -- side of the equation. In the oilsands. We need a lot more site specific studies -- taken an example from the work we're doing we've. We've Optiem alone long -- project seemed to capture study. Up Kenexa and in the long lake project. Are using pacification. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And that makes it easier for the capture side. We've been doing. We -- with -- team is looking at a phased approach for capturing first from. From the retrofit for their current. Face and there. Planning to expand in three phases of the current phase. But looking at two integration with the next phase if you haven't if you two to build a capture ready facility. And eventually this will go into a much more detail. Engineering design study. So. The message here is that we really do need a number of very much site specific studies. To take us to the point where we can. Get. Good costs. For for the cost of -- -- storage. I'm shifting gears a little bit talking about fuel switching and why we need to switch to different fuels. 41 reason is that not in -- in addition to the carbon -- associated with natural gas use. There's also -- high cost we're seeing today so hires cost. For natural gas in North America. We're also witnessing declining supply shipment graph below for at least for conventional. Natural gas. We are also losing value by using natural gas to produced pitchman. And -- -- mention the carbon emissions of course are quite significant so natural gas is becoming in my view disadvantaged. For a number of reasons. -- Okay. Okay.

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