confidential · grand forks, north dakota 58202-9018 701.777.5181 (fax) charles gorecki ceo...
TRANSCRIPT
CONFIDENTIAL
Research in Support of
Integrated Carbon Capture and Storage for
North Dakota Ethanol Production
North Dakota Industrial Commission
Renewable Energy Council Meeting
Bismarck, North Dakota
May 20, 2020
Charles Gorecki, CEO, EERC
Kerryanne Leroux, Principal Engineer, EERC, and Project Manager
Gerald Bachmeier, CEO, Red Trail Energy (RTE)
Dustin Willett, COO, RTE, and Project Manager
Agenda
• Background
• Phase III Outcomes
• Stratigraphic Test Well
• Research Proposal
3
Image Credit: Red Trail Energy
3
RTE CCS Project:Partners and Progress
4
EERC, $3,030,000
RTE (in-kind),
$1,145,000
Trimeric, $130,000
Schlumberger,
$15,000
Summarized Budget
EERC, $3,030,000
RTE (in-kind), $1,145,000
Trimeric, $130,000
Schlumberger, $15,000
Summarized Budget
EERC, $3,055,000
RTE (in-kind), $1,145,000
Trimeric, $130,000
Schlumberger, $15,000
Budget Breakdown
5
Research Funding
HistoryFunding
Partner
State
Funding
Nonstate Cost
Share Total
NDIC $1,335,000 – $1,335,000
DOE – $800,000 $800,000
RTE – $2,185,000 $2,185,000
Total $1,335,000 $2,985,000 $4,320,000
Cost Share 31% 69% 100%
Project Budget
Phase I – Preliminary Assessment $980,000
Phase II – Detailed Pathway $690,000
Phase III – Engineering Designs $2,650,000
Total $4,320,000
RTE CCS Timeline
6 6
Image Credit: Energy & Environmental Research Center
ND Class VI
Primacy
Granted
Contract &
Order
Equipment
Section 45Q
Tax Credit
Passed
Determined
Techno-Economic
Viability
Attain Formal
CO2 Capture
Quotes
Initiate Monitoring
&
Characterization
Addressed
Knowledge Gaps;
Outreach Plan
Drill
Stratigraphic
Test Well
Phase IV: ConstructionPhase III: DesignPhase II: FeasibilityPhase I: Prefeasibility
201920182016 2017 20212020
Permitting
&
Outreach
Finalize
Geologic
Characterization
Start
CCS
Operations!
Phase III Outcomes
Phase III ScopeDecember 2018 – May 2020
1. Develop CO2 Capture Process Design
Package (PDP)
2. Initiate Monitoring and Characterization Plans
– Near-Surface Monitoring
– Reservoir Characterization
3. Prepare CCS Permit Application Package
4. Evaluate Economic Viability
5. Execute Public Outreach Plan
8
Image Credit: Energy &
Environmental Research Center
Vendor bids (3) received for the
RTE CCS site.
Average Estimated Capital Cost
(700 tonnes/day CO2)
CO2 Capture PDP
– D1, completed November 29, 2019
Item Cost
Purchased Equipment $10,700,000
Equipment Installation $6,300,000
Freight $200,000
Storage Tanks (installed) $2,600,000
Total Installed Equipment $19,800,000
Accomplishments\
• CO2 liquefaction system
Process flow diagrams
Heat and material balances
Piping and instrumentation diagrams
Utilities diagrams
CO2 Capture Process
Designs Completed
99
Products
Accomplishments Products
Periodic compositional analyses
– Existing water wells (435–1800 ft)
– Soil gas (3.5 ft)
Near-surface environments defined
– Natural, seasonal variability
– Site-specific baseline data
Key indicator baseline ranges for long-
term monitoring
Procedures and findings in final report
Near-Surface Monitoring Outcomes
10
Image Credit: Energy & Environmental Research Center
Accomplishments Products
Conducted ~8-mi2 seismic survey near
Richardton, ND, in March 2019.
– Third-party contract by RTE as cost share
– Vibroseis trucks, array of surface receivers
Data processing and evaluation.
Identified two formations as potential CO2
storage targets.
– Broom Creek: 6400-ft depth, ~295 ft
thickness
– Inyan Kara: 4800-ft depth, ~410 ft thick
Recommended locations (two) for RTE
CCS stratigraphic test well.
Procedures and findings in final report.
Seismic Survey Completed
11
Image Credit: Energy & Environmental Research Center
Accomplishments Products
Permit to Drill application for Class
VI-compliant stratigraphic test well.
– Geological, drilling prognoses
– Proposed casing, cement
– Logging and coring program
NDIC preferences, clarifications.
North Dakota CO2 Geologic Storage
Permits Template
– D2 completed April 30, 2020
ND Permits Template Completed
12
NDIC-Stated Coring Preference: Include
the collection and analysis of geologic core
through the CO2 storage injection zone and
a minimum of 50 ft from the overlying and
underlying confining zones. This is not a
requirement but rather a recommendation
from NDIC (Connors and others, 2020).
Accomplishments Products
Several meetings with LCF program officials regarding ethanol‒CCS.
– California LCF Standard (LCFS)
– Oregon Clean Fuels Program (CFP)
Up-to-date status on Section 45Q* IRS guidance.
– Beginning of construction
– Revenue procedure on partnerships
Up-to-date status on potential LCF programs in development.
– State level: Washington, Colorado
– Federal level: Canada, Brazil
LCFS-approved Design-Based Pathway
for ethanol‒CCS
Findings in final report
Identifying Requirements/Progress Completed
13
*Enhancement of Carbon Dioxide Sequestration Credit
Image Credit: Energy & Environmental Research Center
Accomplishments Products
Project packets for Stark County and
Richardton City Commission meetings
Open houses in Richardton, ND
– March 2019
– December 2019
Landowner results packets
– Geophysical Survey Report (fact
sheet format)
– Sampling results (May, Aug, Nov)
Posters, presentations, fact sheets, letter
templates, updated webpage, etc.
Public Outreach Package for CCS in
North Dakota
– D3 completed February 28, 2020
Planned Outreach Activities Completed
14
Phase III Deliverables
• Deliverables Submitted
1. CO2 capture PDP (Nov 29)
2. North Dakota CO2 Geologic Storage Permits Template (Apr 30)
3. Public Outreach Package for CCS in North Dakota (Feb 28)
• Final Report: Coming Soon (May 31):
– Summaries of deliverables
– Baseline monitoring and characterization results
– Up-to-date CO2 markets/incentives
Informative packages for implementation of first commercial CCS project in ND.
15
Image Credit: Energy & Environmental Research Center
15
Stratigraphic Test Well
Drilling Completed – April 2020
17
Images Credit: Energy & Environmental Research Center
Core and Fluid Collection Logging and Testing
• ~931-ft total core (98% recovery)
• Cap + underlying rock = ND Class VI-
compliant
• Formation zone fluid samples collected
• Six wireline logs (ND Class VI-
compliant)
• Successfully induced mini-fracture tests
in cap rocks and target formations
Geologic Sampling/Testing Completed:Inyan Kara and Broom Creek
18Image Credit: Energy & Environmental Research Center Images Credit: Energy & Environmental Research Center
Research Proposal
Proposed Scope
1. Geologic Characterization and Evaluation
2. Modeling and Simulation
3. Business Case Analysis
4. Carbon Storage Permitting
5. CCS Community Outreach
20
Finalizing Reservoir Characterization
• Laboratory analyses
– Core (e.g., petrophysical, geomechanical, etc.)
– Reservoir fluid (e.g., chemistry, salinity, etc.)
• Geophysical logging and formation testing (e.g.,
dipole sonic, pulsed-neutron, etc.) analyses
• Results processing and evaluation
Task 1 Geologic Characterization and Evaluation
21
D1. CO2 Storage Characterization Methodologies Report
Site-specific geologic evaluation steps
Objective: Secure CO2 injection and storage permitsSubsurface terms regarding ND
permit requirements (Connors
and others, 2020)
Finalizing Storage Facility Area
• Update geologic interpretations of the target CO2
storage reservoir and seal(s)
• Refine injection designs and CO2 plume
predictions
• Develop required images and figures for permit
application
Task 2 Modeling and Simulation
22
D1. CO2 Storage Characterization Methodologies Report
Modeling/simulation activity necessary to finalize CCS
designs and permitting
Objective: Secure CO2 injection and storage permitsSurface terms (modified from DMR)
regarding ND permit requirements
(Connors and others, 2020)
Detailing Integration Requirements
• Continued assessment of LCF
programs and other CCS
incentives (e.g., Section 45Q)
• Business cases implementing
requirements from LCF/incentive
programs into ND storage permits
Task 3 Business Case Analysis
23
D2. CCS Business Crosswalk
Contrasts–comparisons of Pacific Coast and
federal incentives with ND Class VI Program
Potential business strategies (e.g., California
LCFS CCS Protocol, Section 45Q, etc.)
Objective: Economic viability
Image Credit: Red Trail Energy
Finalizing Permit Application Requirements
• Documentation to satisfy a ND CO2 Storage
Facility Permit
• DMR review such that RTE may submit for
approval
Task 4 Carbon Storage Permitting
24
D3. CO2 Storage Facility Permitting Guidance Document
ND Class VI Program interpretations
Summary of site assessment/data needs
Permitting documentation needs
Objective: Regulatory compliance
Informing Regional Communities/Officials
• Support local public acceptance of ND CCS
– Landowners
– Richardton and adjacent communities
– City/county commissions
– Regional educators
• Stakeholder engagement activities in
support of research and fieldwork
• Production and dissemination of
informational materials
Task 5 CCS Community Outreach
25
D4. CCS Outreach Tool Kit
Community engagement
Information dissemination
Impact assessment
Objective: Public awareness and acceptance
NDIC Cash,
$500,000
RTE Cash*,
$700,000
Funding ProfileImages Credit: Energy & Environmental Research Center
Proposed Budget and Schedule
26
• Total Budget = $1,200,000
• Project Duration = 18 months
*Does not include the significant contribution
of completed drilling, coring, testing, etc.,
necessary for project execution.
Proposed Deliverables
1. CO2 Storage Characterization Methodologies Report Objective: Secure CO2 injection and
storage permits
2. CCS Business Crosswalk Objective: Economic viability
3. CO2 Storage Facility Permitting Guidance Document Objective: Regulatory compliance
4. CCS Outreach Tool Kit Objective: Public awareness and
acceptance
5. Final Report Objective: Go/no-go decision on
construction contracts
27
Image Credit: Energy & Environmental Research Center
27
The first ND CO2 Storage Facility Permit Application!
Questions?
Image Credit: Energy & Environmental Research Center
Energy & Environmental Research CenterUniversity of North Dakota15 North 23rd Street, Stop 9018Grand Forks, North Dakota 58202-9018
701.777.5181 (fax)
www.undeerc.org
Charles Gorecki
CEO
701.777.5355
Kerryanne Leroux
Principal Engineer, CCUS Systems Lead
701.777.5013
John Harju
Vice President for Strategic Partnerships
701.777.5157
Red Trail Energy, LLC
3682 Hwy 8 South
PO Box 11
Richardton, North Dakota 58652
701.974.3309 (fax)
www.redtrailenergyllc.com
Gerald Bachmeier
Chief Executive Officer
701.974.3308
Dustin Willett
Chief Operating Officer
701.974.3308 ext. 111
Contact Information
CONFIDENTIAL
Thank You!
Image Credit: Energy & Environmental Research Center