1 Advancing a Low Carbon and Sustainable Water Economy Water in a World of 7 Billion Session 4: Getting at the Water-Energy Nexus May 8-12, 2012 Eddy Isaacs, CEO Alberta Innovates - Energy & Environment Solutions (AI-EES)

2 AI-EES Strategic Priorities Energy Technologies Environmental Management Renewable & Emerging Resources STRATEGIC AREASPROGRAMS Water Resources HC Recovery & Processing Clean Carbon & Coal Unconventional Gas HC Recovery & Processing Clean Carbon & Coal Unconventional Gas Renewable Energy Alternative Fuels Renewable Energy Alternative Fuels Carbon Capture & Storage Oil Sands Tailings Enhanced Ecology Carbon Capture & Storage Oil Sands Tailings Enhanced Ecology Water Security - Risk and Safety Watershed & Ecosystem Efficiency of Water Use Water Security - Risk and Safety Watershed & Ecosystem Efficiency of Water Use

3 Regional water quantity & quality issues in the oil sands region Development of standards for return of water to the environment Wetlands as a feature of reclamation activities Regional water management & sharing opportunities Alternate uses of produced water, integration with new economic opportunities Water use & opportunities related to renewable energy & emerging fuels Cross-Cutting Water Initiatives in AI-EES...

4 Energy and Water Nexus in the Alberta Context Water for Energy  How much water consumption is for electricity?  How much water consumption is for fuels?  What reductions are possible? Energy for Water  How much energy consumption is for water treatment?  What reductions are possible?

5 Water Consumption for Electricity Plant Type Cooling Process Water Consumption, gal/MWh Natural Gas – Steam Turbine Open-loop Closed-loop Coal/ biomass – Steam Turbine Open-loop Closed-loop Nuclear Open-loop Closed-loop Concentrated Solar Thermal Closed-loop Wind0 Sources: EPRI, USDOE and Argonne National Lab Open-loop Closed-loop

6 What about Carbon Capture 40 – 80% increase in water consumption Example, high rank coals Source: USDOE/NETL Report, “Cost & Performance Baseline for Fossil Energy Plants, May 2007” Levelized Cost of Electricity (mills/kWh) IGCCNGCCPC-SubPC-Super No Capture IGCCNGCCPC-SubPC-Super No CaptureWith Capture

7 Water Consumption for Fuel Fuel or Feedstock Net Fresh Water Consumed, gal per gal of fuel Notes Gasoline (US Conventional) 3.4 – 6.6PADD II, III, and V combined Gasoline (Saudi Conventional) 2.8 – 5.8Dependent on age of well Gasoline (Oil Sands)2.6 – 6.2 Includes thermal recovery, upgrading and refining Corn Ethanol Variation caused by irrigation requirements Switchgrass ethanol2 – 9.8 Dependent on production technology Source: Argonne National Lab, 2011

8 Water Consumption per unit Energy and Water Use for Fuel Extraction & processing Source: Report to Congress on the Interdependency of Energy & Water, USDOE, 2006

9 Advanced Oil Sands Technologies to Decrease GHG Emissions and Water Use Decrease Fresh water Use Decreasing GHG Emissions SAGD, CSS Best-in-class SAGD Energy Efficiency SAGD, CSS Steam-solvent Electrical heating Combustion Non-aqueous Extraction Surface Minning Energy Efficiency refining, mining Current years years CCS

10 Examples of Reduced Energy and Reduced Water Recovery Processes Solvent Processes  VAPEX  Thermal Solvent Processes Steam Solvent Processes  SAP  ES-SAGD  LASER Challenges: Depth, Reservoir Quality, Solvent Losses, Cost & Availability

11 Future Electrical Processes Electrical Processes  Transfer of electrons between wells in situ  EM field development, energy transfer and viscosity reduction  Oil displacement & gravity drainage to production well ET-DSP ETI/ECP (GE Tech) Siemens Harris Challenges: Electricity source & cost, land disturbance, process efficiency

12 Energy and Water Nexus in the Alberta Context Water for Energy  How much water consumption is for electricity?  How much water consumption is for fuels?  What reductions are possible? Energy for Water  How much energy consumption is for water treatment?  What reductions are possible?

13 Report – To Be Released May 16, 2012

14 Impact of Increased Water Recycle on GHG Emissions *zero liquid discharge AI-EES Study: Assess impact of water recycling on energy use, waste generation Find “sweet” spots between water recycling & energy New technology opportunities AI-EES Study: Assess impact of water recycling on energy use, waste generation Find “sweet” spots between water recycling & energy New technology opportunities 9 companies, ADOE, AENV, ERCB

15 Commercially Proven Methods to Treat Produced Water from a Thermal in-situ Production Facility Produced Water Evaporation Warm Lime Softening

16 Minimize Water Use: Water Recycling Reduce fresh water use Use saline water as make-up Trade-off between energy and water: need new technologies

17 What About Membranes? ParameterCurrentWithin 10 years Power use, kWh/kgal~ $ 10~$ 7 Productivity, gal/day/membrane 6,500 – 12,50015, 000 – 25, 000 Useful life5 – 7 years10 – 12 years Key Issue: Deoiling efficiency

18 Positioning Alberta for the Future in Energy and Environment Annual Report

19 Technology Deployment Roadmap & Action Plan for “End-To-End” Solutions for Oil Sands Tailings Supports Alberta Environment Tailings Management Framework Industry partners: Syncrude, Suncor, Shell, CNRL, IOL, Total and Teck Accelerate technology deployment Information sharing