1. Wyoming’s Energy Future: Creating Options Mark A. Northam, Director UW School of Energy Resources September 25, 2008

2. Outline Wyoming’s Energy Resources Energy Options School of Energy Resources - Program Strategy Three Focus Areas Research Centers and Directions Energy Sector Research Summary

3. Wyoming’s Energy Resources Statistics Wyoming is among the leading energy producing states in the US 1 st in Coal (by production; 3 rd in reserves) 1 st in Uranium (by production and reserves) 2 nd in Natural Gas (by production and reserves) Top 3 in CBM (by production) 7 th in Petroleum (by production; 3 rd in reserves onshore) 15 th in Wind Energy Wyoming derives a larger portion of its state revenue from energy than any other state

4. Wyoming’s Energy Resources Boom and Bust Most of the state’s energy resources are sold into commodity markets Very little value-added industry in the energy sector Revenue can fluctuate widely due to commodity pricing Boom periods create prosperity, but Bust cycles create havoc for state and communities “Dig-and-ship” does not provide for economic stability over time

5. Wyoming’s Energy Resources Energy Security Large portion of US transportation fuels foreign-derived 30% of US electricity generated from Wyoming coal Electricity demand growth forecast to exceed supply growth Climate change legislation coming; uncertainty delaying action Demand for “Clean Fuels”; resource reserves getting “dirtier” One important solution: develop technologies to utilize coal cleanly Carbon capture Carbon sequestration Coal transformation technologies including gasification and liquefaction

6. Carbon Management Sequestration EOR FT IGCC WGS H2 Synthesis Gas Gasification Crushed Gasification Crushed Coal Multiple Purposes CO 2 Transmission Liquid Methane CO 2 Capture CO 2 Flue Gas Pulverized Coal

7. Oil Unconventional Oil Unconventional Oil & Gas Carbon Management CO 2 EOR Transportation & Chemical Feed Stock Transportation & Chemical Feed Stock Transmission Heating, Chemicals Transportation Heating, Chemicals Transportation Sequestration EOR CO 2

8. Transmission Wind Energy Renewable Photovoltaic

9. Coal Gas & Oil Renewable Transmission Carbon Management Chemicals & Fuels

10. School of Energy Resources Strategy Initial focus of SER faculty hires, research center creation, and knowledge transfer has been in four areas to add value by: Maximizing the value and flexibility of coal Maximizing the recovery of discovered resources Developing appropriate alternative energy resources Managing carbon emissions and storage

11. Three Focus Ares of SER 1.Academics is the first priority (workforce development). Provide a unique interdisciplinary approach to education in energy- related disciplines, especially those integral to Wyoming’s economy. 2.Research is needed to shape the energy future (technical innovation). Advance state-of-the art energy-related science, technology, and economic research, focused on Wyoming’s resource base. 3.Outreach is essential (knowledge transfer). Disseminate scientific, engineering, and economic knowledge to Wyoming’s public and private sector energy stakeholders.

12. SER Research Centers 1.Centers fully operational : Enhanced Oil Recovery Institute Wind Energy Research Center Coal Bed Natural Gas Center Arid Lands Restoration & Ecology Center Renewable Energy Resources Center Carbon Management Center 2. Centers under development this year: Clean Coal Technologies Center Porous Media Flow Center 3. Centers to be developed following SER hires: Reservoir Characterization and Simulation Center Centers will evolve over time. All are interdisciplinary.

13. SER Research Directions Coal – maintain PRB coal as clean energy resource High Plains Gasification Advanced Technology Center (HPGATC) Wyoming/GE 50:50 Partnership ~$100 M Facility as currently envisioned Focus on dry-feed gasification of PRB Coal Future coal-to-liquids, syngas clean-up and decarbonization research Clean Coal Technology Fund >$6 M in matching funds provided by state legislature Entire range of clean coal technologies on the table Underground Coal Gasification Enormous reserves expansion if UCG can be made viable

14. SER Research Directions Coal-Bed Natural Gas Reservoir imaging, characterization and simulation for improved recovery Flow modeling Water management and monetization Assessment of CO 2 and microbes for stimulation

15. SER Research Directions Natural Gas Focus on optimum recovery from tight reservoirs and unmineable coal beds Optimum field design to decrease surface footprint Site reclamation Petroleum Carbon Dioxide Enhanced Oil Recovery Beyond CO 2 Verify EOR for carbon sequestration

16. SER Research Directions Wind Turbine design for higher efficiency and lower cost Resource and site assessment Energy storage Power transmission Solar and Geothermal Where do they fit in Wyoming’s mix? New technologies for energy conversion Uranium Streamline the permitting process Improve recovery at reduced cost Protect and reclaim groundwater

17. SER Research Directions Carbon Capture Novel methods to reduce cost Economics of green field and bolt-on applications Carbon Storage – Mixed Gas Streams Enhanced Oil Recovery – monitoring and verification Saline aquifer demonstration Reservoir and trap characterization and simulation Short-term/long-term fluid flow and diffusion models Reactive transport experimentation and modeling Measurement, modeling, and verification

18. Summary Wyoming is a leading US producer of energy resources Revenue from the resources support the state. SER will leverage UW’s strengths to facilitate teaching and research to help shape the state’s energy future. UW’s energy research directions will lead the state in: Climbing the value chain Keeping coal in the clean energy mix Maximizing recovery of energy resources Exploiting alternative energy solutions Building for the future

19. The School of Energy Resources at the University of Wyoming Building a sustainable energy future for Wyoming, the region, and the nation.