Post on 18-Dec-2015
Co-Gen and Waste Heat Power Generation Co-Gen and Waste Heat Power Generation
Potential in the Upstream Oil & Gas IndustryPotential in the Upstream Oil & Gas Industry
53rd Canadian Chemical Engineering Conf.53rd Canadian Chemical Engineering Conf.October 29, 2003October 29, 2003
Bruce Peachey, P.Eng.Bruce Peachey, P.Eng.New Paradigm Engineering Ltd., EdmontonNew Paradigm Engineering Ltd., Edmonton
Oil & Gas Sector Energy Use
Estimated sector energy use 1300 PJ/yr Energy value = $5 billion/yr assuming $4/GJ Vents, Flares and Fugitives value = $0.5 b/yr Most producer energy use is “off-the-books”
Loss in potential revenue, not a direct cost Many energy streams (fuel, vents and flares)
are not adequately measured, monitored or assessed
First Prize - Increase Efficiency
Potential Economic Energy and Emission Reductions
Over $ 1 Billion per year for the oil & gas industry• 15% reduction in energy use = $ 780 million/yr • 45% reduction in other emissions = $220 million/yr**
GHG emissions reductions = 29 MtCO2e/yr Excludes potential energy revenue or savings from
cogeneration and other sources in the industry
* Sources: NRCan, Clearstone Engineering, AEUB ** Alberta onlyPrepared by PTAC - Petroleum Technology Alliance Canada www.ptac.org
Cogeneration After Deregulation
Husky Lloydminster (TransAlta) - 220 MW (1999) Dow Ft Saskatchewan (TransAlta) - 118 MW (1999) Syncrude Mildred Lake - 80 MW (2000) Nova Chem Joffre (EpCor/Atco) - 416 MW (2001) Suncor Poplar Creek (TransAlta) - 356 MW (2001) Imperial Oil Cold Lake - 170 MW (2002) TransCanada Power Alberta - 392 MW
• Cancarb - 27 MW; Bear Creek - 80 MW; Carseland - 80 MW; MacKay River - 165 MW; Redwater - 40 MW
Over 1750 MWe - All made possible by deregulation of generation
Co-Generation Basics
Usually use exhaust of power generator to heat a process stream.
Just requires addition of heat exchange Brings power generation up to efficiency of
steam generation.
CoGen Potential for Oil and Gas?
Oilsands Mining
Gas Plants
Thermal Heavy Oil
Petrochemicals
?
Gas Transmission
Oil and Gas Production
Upstream O&G Energy Use Distribution
0
10
20
30
40
50
60
70
ConventionalProduction
OilSands PipelinesSh
are
of
En
erg
y C
on
sum
pti
on
(%
)
Electrical Power
NG + Products
Gas Transportation Energy Distribution
Ont32%
Man15%
Sask7%
Que10%
B.C.14%
Alberta22%
Ref: CAPP Pub #1999-0009
Second Prize - Co-Generation
May, 1991 CAPP Study - “CO2 Reduction Through Energy Conservation” - Co-Gen Potential
• Main sources considered - 34 Major Sour Gas Plants• Cogeneration potential - 12% of industry energy use• Power from Cogen - 1100 MW• Almost 20% of Alberta’s Current Power Use
Actions taken back then:• Little or none mainly due to regulated power
So this prize is still there!
Why No Co-Gen in Gas Plants?
Most plants are older (1950-1980)• A few have cogen for own power needs due to necessity
Few new large gas plants being built Extremely difficult to economically and efficiently retrofit
cogen into an old plant• Has to be intimately integrated into the process• Construction while a sour plant is in operation is hazardous
to workers• Months of downtime would not be acceptable
Why no Co-Gen in Oil and Gas Production?
Thousands of facilities that are small and often isolated from power lines
Heat loads and power loads don’t match and are geographically dispersed
• Often power loads goes up over time while heating loads drop
Power companies not interested in dealing with multiple small sources
• Often a safety issue, but also a lot more hassle
Third Prize - ORC Power from Waste Heat
Organic Rankine Cycle (ORC) Power Generation
• Used in Geothermal Applications (e.g. Birdsville Australia)
• Propane, Butane or Pentane power fluid
• Adapt to use heat from any waste heat source > 60 oC
Gold Creek, Alberta
6.5 MW ORC installed on a gas turbine exhaust Air cooled process Operational since 1999 Fully automatic, self regulating Unattended (2 hr/day check by operator of station) Availability in excess of 95% Avoids 40,000 tons/yr of CO2 emissions $1/MW total for Operations and Maintenance
Taken from ORMAT Presentationby H.M. LeibowitzPTAC Climate Change and GHG Workshop May 2002
Benefits of ORC Power Generation
Power with minimal incremental fuel or emissions Uses energy that is currently lost Proven for many years in Geothermal applications
around the world Can use low quality energy streams like hot water or
exhaust gases Potential for use in compressor stations, gas plants, oil
production or thermal heavy oil
Reservoir Losses10%
Wellbore Heat Loss15%
Power15%
Produced Water5%
Vent Gas Flare5%
Treater Stack and Aerial Cooling
5%
Steam Generator Stack15%
Payzone Heating30%
E.g. Thermal Heavy Oil
Combine Cogen & ORC to Displace Power from Coal
E.g. “Geothermal Energy” - Swan Hills, Ab
Heat energy in Produced Water between 80 to 60 oC = 38.5 MW(h)
• Over 40,000m3/d produced water at 80 oC produced with the oil
» (NB - Over 1 million m3/d of produced water in Alberta)
• Could produce 2-6 MW(e) of power with a propane ORC system (more in winter)
Combine with picking up waste heat from gas plant, oil battery and compressors
• Gas Plant already has a propane refrigeration process Displace part of the 12 MWe of purchased power. Prize =
$3-6+ million/yr at this site. (over $100M/yr in Alberta?)
What’s Hindering CoGen/Waste Heat?
Efficiency isn’t a major business focus• Shareholders don’t see the energy losses
Many losses are not measured• You can’t manage what you don’t measure
Power Deregulation and GHG Rules Still Fuzzy• How do you decide if you want to be in the power game?
Everyone is overworked• Producers don’t have time to understand the potential• Aren’t any vendors for low cost systems
Systems can’t be seen to hurt oil and gas production
What is changing?
Power prices higher and volatile• Producers want to get off the grid• Feeding the grid more attractive now
Gas prices higher and will continue to go up• Increasing demand, decreasing supply• Energy efficiency needed to stay profitable
Shareholders and Markets forcing “off-the-books” costs into the open
Focus on GHG reductions
What is Needed?
Research - More people working on understanding ORC systems and looking for ways to reduce costs
• Modeling of ORC systems• Process studies• Good work for graduates which would attract NSERC and
Kyoto funding Motivation - Continued pressure on producers to
become more energy efficient Innovation - Combining the research and motivation into
profitable applications
Summary
There is enormous potential for Co-Gen and Waste Heat Power Generation in the Upstream Oil and Gas Industry
Co-Gen for large centralized heat intensive operations Waste Heat for smaller distributed generation In Canada, systems will need to be flexible, easy to
retrofit, and economic Now we need people to get interested in it!