confidential · grand forks, north dakota 58202-9018 701.777.5181 (fax) charles gorecki ceo...

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Page 1: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

CONFIDENTIAL

Page 2: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 3: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

Agenda

• Background

• Phase III Outcomes

• Stratigraphic Test Well

• Research Proposal

3

Image Credit: Red Trail Energy

3

Page 4: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

RTE CCS Project:Partners and Progress

4

Page 5: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 6: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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!

Page 7: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

Phase III Outcomes

Page 8: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 9: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 10: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 11: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 12: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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).

Page 13: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 14: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 15: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 16: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

Stratigraphic Test Well

Page 17: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

Drilling Completed – April 2020

17

Images Credit: Energy & Environmental Research Center

Page 18: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 19: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

Research Proposal

Page 20: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

Proposed Scope

1. Geologic Characterization and Evaluation

2. Modeling and Simulation

3. Business Case Analysis

4. Carbon Storage Permitting

5. CCS Community Outreach

20

Page 21: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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)

Page 22: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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)

Page 23: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 24: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 25: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

Page 26: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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.

Page 27: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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!

Page 28: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

Questions?

Image Credit: Energy & Environmental Research Center

Page 29: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

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

[email protected]

Kerryanne Leroux

Principal Engineer, CCUS Systems Lead

701.777.5013

[email protected]

John Harju

Vice President for Strategic Partnerships

701.777.5157

[email protected]

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

[email protected]

Dustin Willett

Chief Operating Officer

701.974.3308 ext. 111

[email protected]

Contact Information

Page 30: CONFIDENTIAL · Grand Forks, North Dakota 58202-9018 701.777.5181 (fax) Charles Gorecki CEO 701.777.5355 cgorecki@undeerc.org Kerryanne Leroux Principal Engineer, CCUS Systems Lead

CONFIDENTIAL

Thank You!

Image Credit: Energy & Environmental Research Center