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1 | Office of Fossil Energy www.energy.gov/fe
Office of Fossil Energy
Douglas Hollett
Principal Deputy Assistant Secretary
Office of Fossil Energy
AIChE 2016 Natural Gas Workshop11/2/2016
Technology, R&D and Policy In A Rapidly Evolving Energy
Landscape
Doug HollettPrincipal Deputy Assistant Secretary
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energy.gov/fe
Accelerate a Commercial Pathway to CCS
• Advanced Carbon Technologies R&D• Domestic and international partnerships• Reduce deployment barriers
Advance Safe and Environmentally Prudent Oil & Gas Resource Production and Transport
• Low Carbon Pathways• R&D on water and air quality, induced seismicity• Emissions mitigation and quantification• Methane hydrates
Modernizing the Strategic Petroleum Reserves Program
Natural Gas Trade Regulation
Department of Energy RD&D Crosscuts
• Intra-agency efforts to address common science and engineering challenges across the energy spectrum• Subsurface Technology and Engineering (SubTER)• Supercritical CO2• Energy Water• Advanced Materials• Grid Modernization
Fossil Energy Key Goals and Priorities
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energy.gov/fe
The Department of Energy R&D Landscape
Fossil Energy
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energy.gov/fe
RESIDENTIAL & COMMERCIAL
11%
TRANSPORTATION
27%
POWER
40%
INDUSTRIAL
22%
RENEWABLE 10%
NUCLEAR 9%
COAL
16%
OIL
36%
NATURAL GAS
29%
91% Fossil Energy
89% Fossil Energy
95% Fossil Energy
65% Fossil Energy
EIA, Annual Energy Outlook 2015, Reference Case.
Fossil Energy Critical in All U.S. Domestic Sectors
81% Fossil Energy
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energy.gov/fefossil.energy.gov4/ Office of Fossil Energy
Natural gas generation exceeds coal generation in 2016
Source: U.S. Energy Information Administration, Monthly Energy Review, and Short-Term Energy Outlook (March 2016)
Fossil energy reduces its world share of
demand from 82% to 75% by 2035, offset by a surge in renewable
energy (IEA 2013)
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Financing / business case (cost recovery) is the main issue for widespread CCS deployment
fossil.energy.gov5/ Office of Fossil Energy
CCS for coal and gas will be needed even with substantial efficiency
US Power Gen: Mixed Scenario US Power Gen: Low-Demand Scenario
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fossil.energy.gov8/ Office of Fossil Energy
Technological Carbon Management Options
Pathways to reduce CO2 Emissions
ImproveEfficiency
SequesterCarbon
Renewables
Nuclear
Fuel Switching
Demand Side
Supply Side
Enhance Natural Sinks
Capture, Store, Use
Reduce CarbonIntensity
All options needed to:
Provide energy security
Affordably meet energy demand
Address environmental objectives
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energy.gov/fefossil.energy.gov9/ Office of Fossil Energy
Carbon capture, utilization and storage (CCUS): limit global warming to “well below 2oC”
Advanced CO2 capture technologies: many pathways to success
Novel solvents
Transformational concepts and advanced compression
Solid sorbents
Advanced membranes
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energy.gov/fe
2015 2020 2025 2030
2nd Gen R&D Bench • Solvents/sorbent• Fully Integrated• TRL 4-5
Commercial Carbon Capture Systems• Flue Gas• Commercially financed
Demonstrations• At Scale• Fully Integrated• TRL 7 - 8
Small Pilot Tests• 0.5 - 5.0 MWe• Flue Gas – NCCC, other• TRL 5 - 6
Large Pilot Tests• 10 - 25 MWe• Flue Gas – TCM, other• TRL 6 - 7
Transformational Lab and Bench • Solvents/sorbent• Fully integrated• TRL 4-5 Small Pilot Tests
• 0.5 - 5.0 MWe• Flue gas – NC3, other• TRL 5-6
Large Pilot Tests• 10 - 25 MWe• Flue Gas – TCM, other• TRL 6 - 7
Demonstrations• At Scale• Fully Integrated• TRL 7 - 8
Challenge: Accelerated Materials and Novel Process Development
Carbon Capture Simulation Initiative
CCSI
DOCCSS*
2000
*Discovery of Carbon Capture Substances and Systems
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DOE Technology Development Schedule
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fossil.energy.gov7/ Office of Fossil Energy
Industrial sources could become early movers for CCUS
Chemical and refinery
Metals and mineral
Other (including ag and waste management) Source: National Carbon Sequestration Database and Geographic Information System (NATCARB)
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energy.gov/fe
• Existing Market Mechanisms: Enhanced Oil Recovery (EOR)• 65 million tons/yr of CO2 to produce nearly 300,000
barrels of oil/day
• Regulatory Framework (Evolving)
• Financing (Tax Credits and Loan Guarantees)
• Research and Development
• Pilots, Demos (integration and learning)
Domestic Oil Supplies and CO2 Demand (Storage) Volumes from “Next Generation” CO2-EOR Technology**
TECHNOLOGY PUSH MARKET PULL
CCUS Technology Development and Market Mechanisms
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energy.gov/fe
Gas Utilization Pathways: Critical Connections
• Clean Energy Perspective, integration with renewables/rest of energy system
• Integration with CCS vital
• Modularization and remote/stranded applications
• Methane emissions
• Importance of infrastructure
• Global implications for 5 Tcf of gas flared annually
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energy.gov/fe
Government Role?
• Consistency with top-line strategy and objectives
• Proper government role, national interest
• Not compete with industry and avoid overlaps
• Think long term … but consider short term impacts (wins)
• Big enough challenge; impact; inclusive approach; “hard”
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energy.gov/fe
Methane Routes to fuels and chemicals
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energy.gov/fe
Economies Of Scale: Is Bigger Always Better?
[9] PJA Tijm. Gas to liquids, Fischer-Tropsch, advanced energy technology, future's pathway. Feb 2010.
Pearl
Escravos
GTL Cost vs. Capacity[9]
m =-0.50
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2012 2016 2020 2025 2030+
Co
st o
f C
O2
Cap
ture 2nd Generation
Transformational
$80-100/Tonne
~ $60/Tonne
DOE RDD&D: CCUS Program Goals
~ $30 / Tonne
< $20 / Tonne
~ >$40 / Tonne
~ $15 / Tonne
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energy.gov/fe
Falling Costs for Other Clean Energy Technologies
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Indexed Cost reductions since 2008
Each of these technologies has dropped 40-90% in cost since 2008Indicates the opportunity pathway for advanced fossil technologies
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energy.gov/fe
Fossil Energy Benefits
Advanced Energy Systems
Carbon Capture & Storage
Oil & Gas
• Air separation units• Gasification modules• Syngas conversion• Power gensets
• Air separation units• Post-combustion carbon capture• Compressor modules
• Compressor modules• Produced water clean-up• Syngas conversion• Stranded gas/methane conversion
Program Cross-Cutting Areas for Modular Process Solutions
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energy.gov/fe
What Might It Take?
• Workshops to ID R&D gaps. More Modular, deployable, plug-and-play solutions
• Open collaboration, standardization, more aggressive dashboardingand multi-year planning. More players = faster innovation.
• Intensification, additive manufacturing, automation, at the same time lower complexity and focus on integration
• New business models, niche applications, combined with proper policy tools
• Climate/environment context
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fossil.energy.gov22/ Office of Fossil Energy
Office of Fossil Energy