1. Ian J. Potter Ph.D Director, Sustainable Energy Futures MAKING THE CIRCLE STRONGER APEGGA ANNUAL CONFERENCE APRIL 22 - 24, 2004 EDMONTON, ALBERTA Overview of Greenhouse Gas Opportunities

2. Most of the demand will be met by oil, natural gas and coal Situational Analysis Ref: IEA, World Energy Outlook:2002

3. Atmosphere GHG = POP GDP POP BTU GDP GHG BTU - GHG x xx Population Standard of Living Energy Intensity GHG Intensity GHG Sequestered GHG Management (after Kaya 1989)

4. Mitigation Responses Improve energy efficiency Fuel switching Decarbonization of fossil fuels Removal, recovery and disposal of CO 2 Utilization of CO 2 Use of non-fossil energy sources Reforestation Utilization of biomass energy Geoengineering

5. Improve Energy Efficiency Primary Energy Transformation Transportation Distribution Secondary Energy Utilization Device or System Final Useful Energy Losses Coal Crude Oil Natural Gas Nuclear Hydro Biomass Etc. Power Station Refinery Coke Oven Coal Gasification Coal Liquefaction Electricity Oil Products Natural Gas Coke Etc. Burner Electrical Motor Automobile Etc. Space Heat Process Heat Mech. Energy Etc.

6. Improve Energy Efficiency Technology Improvement –Operation and control –Materials –Economics –Government Policy –Application flexibility –R&D Investment –Market Pull System Present  Achievable  Theoretical  Coal Steam Boiler7080100 Gasification, Combined Cycle 426070 Molten Carbonate Fuel Cell 455594

7. Improve Energy Efficiency Residential and Commercial Sector –Space Heating – building design –Water heating – heat pump, efficient burners Industry Sector –Waste heat recuperation –Process flow optimization Transportation –District transport –Advanced conversion systems – hybrid engines Electricity Generation from Fossil Fuel –Fuel cells –Cogeneration

8. Conventional vs Cogeneration Electrical Power 40 Units Heat 40.2 Units Input Energy = 100 Units Thermal Efficiency = 40% Efficiency of Waste Heat Recovery = 67% Thermal Efficiency = 38% Boiler Efficiency = 82% Input Energy = 49 Units Input Energy = 105.3 Units Cogen (Diesel) Boiler Power Station Conventional System Total Energy Input = 154.3 Units Cogeneration System Total Energy Input = 100 Units

9. Fuel Switching Substitution of a lower carbon fuel –Natural gas for coal Availability of energy resources –Energy costs –Technology receptors –Resource Industry impact by switching

10. What Might Reshape Our Energy Future? A sustainable energy system based on –Hydrogen that is affordable, domestically produced from diverse sources, and safely stored, dispensed and used

11. Fuel Cells Are Like Batteries That You Supply Fuel To As Needed Electricity Pure Water A fuel cell converts the chemical energy in hydrogen to electricity and water Hydrogen Oxygen from air

12. Potential for Hydrogen? Courtesy Eddy Isaacs Potential for Hydrogen?

13. Coal Fired Power

14. Decarbonization of Fossil Fuels In strictest sense: –The removal of carbon from fossil fuels prior to combustion But really, the use of fossil fuels with the avoidance of CO 2 emissions to the atmosphere: –Process the fossil fuel prior to combustion, removing carbon, leave hydrogen –Convert the fossil fuel to a hydrogen rich fuel while producing, recovering and sequestering CO 2 prior to combustion. –Also, the capture, recovery and sequestering of CO 2 after combustion.

15. Integrated Gasification Combined Cycle Power Generation Oxygen Best potential for commercial production of clean power With near zero emissions within the next 5 to 10 years Coal Slurry Slag Sour Shift Acid Gas Removal Combined Cycle Plant Gas Steam Turbine Electricity Steam H2H2 Gasifier Sulphur CO 2 Fuel Cells Electricity Heat

16. Combustion/ Gasification CO 2 for EOR, CBM Separation/ Conversion Methanol Plant Hydrogen Plant Clean Power Fuel Cells Ammonia Plant Methane Plant Olefins Petrochemicals Clean Gasoline Hydrogen Synthetic Natural Gas Fertilizers Electricity clean gas Low cost feedstocks Coal Heavy Coke Resid Biomass FT Synthesis Liquid Fuels Alberta Energy Research Institute (AERI) Vision: Add Value to Alberta’s Hydrocarbon Resources

17. Removal, Recovery, Disposal of CO 2 Carbon dioxide control points: –The atmosphere –The surface waters of the oceans –Stacks of fossil fuel conversion plants Source of relatively high CO 2 Control PointMinimum Separation Energy (kWh/lb CO 2 ) Atmosphere0.057 Ocean0.057 Fossil Fuel Combustion Equipment 0.0259 - 0.0179

18. Removal of CO 2 ProcessCO 2 Removal Efficiency (%) kWh e /lb CO 2 Recovered Amine Absorption/ Stripping Integrated900.11 Oxygen/Coal Fired Plant1000.15 Amine Absorption/ Stripping Non- Integrated 900.27 Potassium Carbon Absorption/ Stripping900.32 Molecular Sieves900.40 Refrigeration900.40 Seawater absorption900.80 Membrane900.36

19. Removal of CO 2 Other factors: –Cost –Equipment size –Integration –Environment Separation of CO 2 is still the largest technology and economic hurdle in utilizing clean energy from fossil fuels

20. Disposal of CO 2 No indirect benefit: –Ocean disposal –Depleted gas wells –Salt domes –Aquifers –Natural materials Indirect benefit: –Enhanced Coalbed Methane –CO 2 Enhanced Oil Recovery –Natural materials Courtesy: Stefan Bachu, AGS

21. Enhanced Coalbed Methane CO 2 CH 4

22. Use of Non-Fossil Energy Sources Nuclear Solar ?

23. Use of Non-Fossil Energy Sources Wave Power

24. Use of Non-Fossil Energy Sources Offshore Wave Energy –Hose Pump –Archimedes Wave Swing (AWS)

25. Use of Non-Fossil Energy Sources Tidal Energy Installation europa.eu.int/comm/energy_transport/atlas/htmlu/tidal.html

26. Utilization of Biomass Energy Wood and Wood Wastes Municipal solid waste: –Combustion –Landfill gas Herbaceous biomass and agricultural residues Aquatic biomass Industrial solid wastes Sewage methane Manure methane

27. Nutrient recovery/ treatment Aerobic digester/ nutrient enrichment Biogas utilization Reusable water Organic fertilizer Energy Manure Anaerobic Digester Liquids Solids Biogas Solid/liquid Separation Integrated Manure Utilization System Growing Power

28. Can we break the link? Present: Energy Use Environmental Impacts Future: Innovation + Investment = Energy + Technology Recent activity focused on incremental technology development to improve energy production methods and systems  Sustainability

29. Sustainable Development 1987- World Commission on Environment and Development, the Brundtland Commission –“ development that meets the needs of the present without compromising the ability of future generations to meet their own needs. ”

30. Sustainable Philosophy Air Pollution Greenhouse Gases Energy Management Solid Waste Management Effluent/ Water Management Economic and Social

31. Emissions Philosophy It’s not just climate change!! Air Emissions –NOx, SOx, Particulate Matter, Ozone, Mercury, Unburnt hydrocarbons, greenhouse gases Water Emissions –Quality and Quantity Assurance Solid Waste Management –MSW, Ash, Slag, Tailings Thermal Management –maximizing energy utilization Noise Management

32. The Core Challenge Research turns money into knowledge Knowledge Research Innovation It takes innovation to turn knowledge into money

33. Summary Concern over possible global warming & climate change Stimulated research - Action is taking place Sustainability not just climate change –Innovation and investment are critical –Technology provides the solutions, but rarely in the short term Partnerships are essential Governments, Industry and Public open discussion

34. Take home message Solutions to reduce greenhouse and other emissions will come through technology, and require a fundamental shift in how we live, work and do business