WIN WIN - Wind-powered water injection – Industry innovation and the development of an «impossible» idea 1st of March 2017 Johan Slätte, Senior Engineer Ungraded 1 DNV GL © 2014 04 November 2015 SAFER, SMARTER, GREENER Presentation outline • Introduction to DNV GL • Background to the WIN WIN JIP • Brief introduction to Floating Wind • The innovation project and it’s different phases • Summary and conclusions • Q&A Ungraded 2 DNV GL © 2014 04 November 2015 Industry consolidation 3 DNV GL © 2016 15 June 2016 Our vision: global impact for a safe and sustainable future MARITIME OIL & GAS ENERGY BUSINESS SOFTWARE ASSURANCE RESEARCH & INNOVATION 4 DNV GL © 2016 15 June 2016 Leveraging on experience - Offshore wind industry DNV + GL + KEMA + Nobel Denton + Garrad Hassan = DNV GL Energy The world’s largest certification and advisory firm in renewable energy 5 DNV GL © 2016 15 June 2016 A number of facts… 6 DNV GL © 2016 15 June 2016 WIN WIN - Wind-powered water injection Assessing a new concept for water injection, utilizing wind power WIN WIN is a concept for a new generation of oil recovery technology currently being assessed. It comprises a floating wind turbine which supplies power to a water injection process. The concept is a fully stand-alone system that includes pumps and basic water treatment. Our ambition is that WIN WIN will reduce costs, increase flexibility, and reduce emissions. WIN WIN phase 1 main conclusions 1. Commercially competitive alternative in a range of cases 2. No technical showstoppers identified 3. Technically feasible 7 DNV GL © 2016 15 June 2016 Background - Inspiration for the WIN WIN project Successful operation and deveopments The development of EOR technology / of floating wind technology Tyrihans Raw Seawater injection for EOR Image: Statoil Image: OTC 20078 Winter April 2014 February 2015 May 2016 -> 2013/2014 Phase 2, pilot Concept first presented Partnership formed Project results testing and Idea developed at OTC with call for a and project started presented at OTC commercial project internally joint industry project 8 DNV GL © 2016 15 June 2016 WIN WIN (Phase 1) - A joint industry project 9 DNV GL © 2016 15 June 2016 Phase 1 - A recognized industry effort 10 DNV GL © 2016 15 June 2016 Renewable and O&G integration In 2015/2016 assessment • Statoils Hywind demonstrator, a floating wind turbine located offshore Stavanger, Norway, has been operating since 2009. In the record year of 2011 it produced 10.1 GWh. • The potential for moving the test unit to the Valemon platform has been assessed by statoil. • Valemon is today supported by power from the Kvitebjørn platform, 10 km away • From being able to shut down one of the two gas tubines, a reduction of 11000 tons of CO2 could be a achieved, with associated costs. 11 DNV GL © 2016 15 June 2016 A brief introduction to floating wind 12 DNV GL © 2016 15 June 2016 Floating wind turbines – Three key philosophies SPAR Semisubmersible TLP NREL DNV GL © 2016 15 June 2016 13 Key milestones for floating wind technology 14 DNV GL © 2016 15 June 2016 Key milestones for floating wind technology . 2009: Hywind demo – 1st spar buoy 15 DNV GL © 2016 15 June 2016 Key milestones for floating wind technology . 2009: Hywind demo – 1st spar buoy . 2011: WindFloat demo – 1st semi-sub 16 DNV GL © 2016 15 June 2016 Key milestones for floating wind technology . 2009: Hywind demo – 1st spar buoy . 2011: WindFloat demo – 1st semi-sub . 2012: Kabashima/Goto Spar – 1st concrete/steel 17 DNV GL © 2016 15 June 2016 Key milestones for floating wind technology . 2009: Hywind demo – 1st spar buoy . 2011: WindFloat demo – 1st semi-sub . 2012: Kabashima/Goto Spar – 1st concrete/steel . 2012: VolturnUS – 1st concrete semi-sub 18 DNV GL © 2016 15 June 2016 Key milestones for floating wind technology . 2009: Hywind demo – 1st spar buoy . 2011: WindFloat demo – 1st semi-sub . 2012: Kabashima/Goto Spar – 1st concrete/steel . 2012: VolturnUS – 1st concrete semi-sub . 2013: Compact Semi – 1st turbine connected to: 19 DNV GL © 2016 15 June 2016 Key milestones for floating wind technology . 2009: Hywind demo – 1st spar buoy . 2011: WindFloat demo – 1st semi-sub . 2012: Kabashima/Goto Spar – 1st concrete/steel . 2012: VolturnUS – 1st concrete semi-sub . 2013: Compact Semi – 1st of the Fukushima demonstration unit . 2013: Fukushima floating substation – 1st floating substation 20 DNV GL © 2016 15 June 2016 …and then, in 2015 Source: Windpower Monthly 21 DNV GL © 2016 15 June 2016 Looking forward, the first small projects are soon here WindFloat Atlantic Hywind Scotland . 27.5 MW off Portugal’s coast . 30 MW off Peterhead in Scotland . 30 m€ in funding from NER300 . Financed by ROCs . Operation aimed for 2018 . In operation from 2017 Image: http://www.macartney.com/ Image: Statoil 22 DNV GL © 2016 15 June 2016 Summary – Floating wind . Floating wind offers a potential to reach the high energy yield sites . Technology is developing . Leveraging on the knowledge and competence from O&G . Costs are coming down – The first arrays (several units) are to be commissioned in 2017-2019 . Potential to support O&G / other applications – Business cases . Leading to the WIN WIN JIP Image: Knut Ronold, DNV GL 23 DNV GL © 2016 15 June 2016 WIN WIN – Integration of floating wind with O&G 24 DNV GL © 2016 15 June 2016 Technical Functional Commercial Is oil recovery affected by variable Can WIN WIN inject the required injection rates? volumes of water? How much does it cost? Will the wind-powered system Is it competitive with conventional function in an off-grid environment? technology? 25 DNV GL © 2016 15 June 2016 Concept options and functions I. Stand-alone system with II.Stand-alone system III. Connected to platform topside equipment with subsea equipment I. Standalone system with key equipment (pump, water treatment system) integrated with the floating structure (‘Topside’) II. Standalone system with key equipment subsea (pump, water treatment system) III. Concept option I or II with power cable to production platform (i.e. system is not standalone) 26 DNV GL © 2016 15 June 2016 Use case and system specifications Geographic location: North Sea Water depth [m]: 200 Distance from production host [km]: 30 Reservoir conditions: 1 template, 2 injection wells, normal injectivity with specified injectivity index Target injection rate [bbl/d]: 44 000 Maximum injection rate [bbl/day]: 81 000 Maximum pump discharge pressure [bar]: 130 Water treatment requirements: Water filtration / chemical injection 27 DNV GL © 2016 15 June 2016 Different alternatives: Conventional vs. WIN WIN Conventional Gas Turbine System 3 MW gas turbine located on platform . Subsea flowline between platform and injection well . 16.500 tonnes annual CO2 emission per well . Average 44.000 barrels of water injected per day Wind powered water injection (WIN WIN) . 6 MW wind turbines and 2x2 MW pump . Autonomous system, injection through riser . Zero CO2 emission . Average 44.000 barrels of water injected per day 28 DNV GL © 2016 15 June 2016 The system 29 DNV GL © 2016 15 June 2016 The base case configuration and its functionality 1. A standard wind turbine is mounted to a floating foundation. This foundation also serves as a platform for the water injection system. 2. An electrical micro grid enables controlled start-up and shut-down of the system, and ensures that power demand matches power supply during operation. A battery bank ensures power to critical safety and communication functions during periods of no wind. 3. Communication with the host platform is enabled through satellite communication. A conventional control umbilical can also be used. 4. The system uses sea water, which is pumped topside using lift pumps. 5. The sea water is filtered down to 50 micron using a vertical disc filter with backwashing capability. 6. The water is treated with chemicals. Chemicals are stored on board in vessels, and refilled during other maintenance activities on the platform. 7. Water is injected into the reservoir by injection pumps. 30 DNV GL © 2016 15 June 2016 Performance of WIN WIN . The WIN WIN concept has shown that it can meet the demands in relation to set requirements . Key performance issues addressed in the project include delivering required injection volumes, understanding overall availability as well as investigating start-stop cycles and downtime. For the use case considered and others, WIN WIN exceeds target injection rates over time. Injection volumes over time have been simulated based on realistic wind-data for the use case, showing that volumes exceed target rate, despite some periods of low wind. 31 DNV GL © 2016 15 June 2016 Commercial - CAPEX . Total CAPEX for the use case configuration with process equipment located topside comes to around 75 MEUR. The wind structure and marine operations and logistics are the two main CAPEX drivers, together contributing to more than 50% of CAPEX costs. The pump system and development costs are also significant in the overall investment. 32 DNV GL © 2016 15 June 2016 Commercial - OPEX . To achieve a realistic estimate of the O&M cost and performance, DNV GL has modelled the system taking into account failure rates, repair times and wind and wave data. The resulting annual average operation and maintenance costs are on the order of 4,7 MEUR. Key drivers include parts, chemicals, and vessel costs. Increased reliability of the system would positively influence maintenance frequency and scope, in particular for unscheduled maintenance, reducing operational expenditures. 33 DNV GL © 2016 15 June 2016 WIN WIN is cost-competitive for suitable fields . The use case costs have been compared with a conventional alternative where water injection is accomplished with a flowline from the host. While WIN WIN has higher operational expenditures compared to a conventional alternative, the significantly lower capital expenditure means that it comes out comparable in 20 year life-cycle comparison.