Canadian Energy Research Institute Emission Abatement Potential for the Alberta Oil Sands Industry and Carbon Capture and Storage (CCS) Applicability to Coal-Fired Electricity Generation and Oil Sands Zoey Walden Study No. 126 October 2011 Relevant • Independent • Objective EMISSION ABATEMENT POTENTIAL FOR THE ALBERTA OIL SANDS INDUSTRY AND CARBON CAPTURE AND STORAGE (CCS) APPLICABILITY TO COAL-FIRED ELECTRICITY GENERATION AND OIL SANDS Emission Abatement Potential for the Alberta Oil Sands Industry and Carbon Capture and Storage (CCS) Applicability to Coal-Fired Electricity Generation and Oil Sands Copyright © Canadian Energy Research Institute, 2011 Sections of this study may be reproduced in magazines and newspapers with acknowledgement to the Canadian Energy Research Institute ISBN 1-927037-03-4 Author: Zoey Walden Acknowledgements: The author of this report would like to extend thanks and gratitude to everyone involved in the production and editing of the material, including, but not limited to Carlos Murillo, Afshin Honarvar, Dinara Millington, Jon Rozhon, Thorn Walden, Peter Howard and most notably Megan Murphy. CANADIAN ENERGY RESEARCH INSTITUTE 150, 3512 – 33 Street NW Calgary, Alberta T2L 2A6 Canada www.ceri.ca October 2011 Printed in Canada Emission Abatement Potential for the Alberta Oil Sands Industry and Carbon Capture iii and Storage (CCS) Applicability to Coal-Fired Electricity Generation and Oil Sands Table of Contents LIST OF FIGURES .............................................................................................................................. v LIST OF TABLES ................................................................................................................................ vii LIST OF ABBREVIATIONS ................................................................................................. ix EXECUTIVE SUMMARY .................................................................................................................... xi CHAPTER 1 INTRODUCTION ....................................................................................................... 1 Oil Sands ...................................................................................................................................... 1 Electricity Generation ..................................................................................................................... 2 CHAPTER 2 GREENHOUSE GASES, ABATEMENT TECHNOLOGIES AND OPPORTUNITIES IN THE OIL SANDS INDUSTRY ........................................................ 5 Introduction.................................................................................................................................... 5 Thermal Operations, Steam Requirements and Challenges ........................................................... 9 Geology: The Carbonate versus Sandstone Story ......................................................................... 17 Applicability of Oil Sands Technologies .......................................................................................... 21 Methodology .................................................................................................................................. 24 CHAPTER 3 CARBON CAPTURE AND STORAGE ........................................................................... 31 Introduction.................................................................................................................................... 31 Capture Processes .......................................................................................................................... 32 Advantages and Disadvantages of the Carbon Capture Process .................................................... 36 Compression and Transportation ................................................................................................... 38 Storage ...................................................................................................................................... 39 Oil Sands CCS Potential .................................................................................................................. 39 Electricity Generation in Alberta .................................................................................................... 40 Coal-Fired Generation .................................................................................................................... 44 Electricity Generation and Brief Overview of Coal in Saskatchewan ............................................. 46 Gasification ..................................................................................................................................... 46 In Situ Coal Gasification vs. Integrated Gasification Combined Cycle ............................................ 48 Gasification of Coke and the Oil Sands ........................................................................................... 49 Methodology .................................................................................................................................. 50 Power Requirements for Carbon Capture as Calculated for Electricity Generation by Coal.......... 51 Capital Costs Associated with CCS and Other Electricity Generating Technologies ....................... 54 Concluding Remarks ....................................................................................................................... 54 CHAPTER 4 EMISSION ABATEMENT POTENTIALS ....................................................................... 55 Reference Case for Oil Sands.......................................................................................................... 55 Electricity Generation ..................................................................................................................... 59 CHAPTER 5 CONCLUDING REMARKS .......................................................................................... 61 APPENDIX A TECHNICAL COMPONENTS OF EQUATIONS OF PROCESSES AND METHODOLOGIES ......................................................................... 63 GLOSSARY ................................................................................................................. 69 REFERENCES ................................................................................................................. 71 October 2011 iv Canadian Energy Research Institute October 2011 Emission Abatement Potential for the Alberta Oil Sands Industry and Carbon Capture v and Storage (CCS) Applicability to Coal-Fired Electricity Generation and Oil Sands List of Figures Figure E.1 Reference Case Projection of Emissions from the Oil Sands............................................ xi Figure 1.1 Alberta Oil Sands Areas .................................................................................................... 2 Figure 1.2 Capacity Breakdown of Electricity.................................................................................... 3 Figure 2.1 Canada’s Overall Emissions .............................................................................................. 5 Figure 2.2 Alberta, Electricity Generation and Oil Sands Emissions ................................................. 6 Figure 2.3 Percentage Change of Emissions and Production Since 1990 Levels for Mining, Extracting and Upgrading of the Oil Sands ......................................................... 7 Figure 2.4 Bitumen Viscosity versus Temperature ........................................................................... 10 Figure 2.5 In Situ Recovery Methods ................................................................................................ 11 Figure 2.6 Oil Sands Projects and Different Formations in the Athabasca Region ........................... 18 Figure 2.7 The Athabasca-Wabiskaw Formation .............................................................................. 19 Figure 2.8 Major Formations ............................................................................................................ 20 Figure 2.9 Natural Gas Requirements for Varying Boiler Feed Water and Steam-to-Oil Requirements ............................................................................................. 27 Figure 2.10 Natural Gas Requirements for Varying Pressure and Steam-to-Oil Requirements ......... 28 Figure 3.1 Block Representations of the Different Processes ........................................................... 32 Figure 3.2 Partial Pressure CO2 Concentrations from Various Industrial Sources ............................ 36 Figure 3.3 Project Additions Between 1998-2015 as Provided by AESO .......................................... 41 Figure 3.4 Summation of Proposed Project Additions Each Year Between 1998-2015 .................... 42 Figure 3.5 AESO’s 2009-2029 Long-Term Energy Outlook Generation Mix for 2010 and 2020 ....... 42 Figure 3.6 Forecasted Electricity Demand Between 2009-2029 ....................................................... 43 Figure 3.7 IGCC Plant ........................................................................................................................ 48 Figure 4.1 Realistic Scenario of CERI Production on a Total Raw Bitumen Produced Basis, 2008-2035 .............................................................................................. 55 Figure 4.2 Reference Case Projection of Emissions from the Oil Sands, 2008-2035 ........................ 56 October 2011 vi Canadian Energy Research Institute October 2011