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Unconventional Natural Gas: An LCA With a Conventional Answer James Littlefield – Booz Allen Hamilton Joe Marriott, PhD. – Booz Allen Hamilton Timothy J. Skone, P.E. – National Energy Technology Laboratory 2012 University Turbine Systems Research Workshop October 3, 2012

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Unconventional Natural Gas: An LCA With a Conventional Answer James Littlefield – Booz Allen Hamilton Joe Marriott, PhD. – Booz Allen Hamilton Timothy J. Skone, P.E. – National Energy Technology Laboratory 2012 University Turbine Systems Research Workshop October 3, 2012

2 2

Agenda

• Resource Profile of Natural Gas • Life Cycle Analysis (LCA) • NETL’s LCA of Natural Gas • Role of Policy and Voluntary

Actions • Role of Power Plants

3 3

In what ways is the resource profile of domestic natural gas changing?

4 4

Unconventional sources of natural gas are changing the resource profile of natural gas production

• Total U.S. demand for natural gas was 24.1 Tcf in 2010 and is projected to grow to 26.5 Tcf by 2035 (EIA, 2012a)

• Unconventional sources of natural gas are a growing share of U.S. production

Source: EIA, 2012a

Alaska CBM

Offshore

Onshore Conventional

Associated

Tight

Shale

0

5

10

15

20

25

30

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Annu

al P

rodu

ctio

n (T

CF)

5 5

Natural gas is extracted from several types of geological formations

Source: EIA, Today in Energy, February 14, 2011; Modified USGS Figure from Fact Sheet 0113-01; www.eia.doe.gov/todayinenergy/detail.cfm?id=110 Last Accessed May 5, 2011.

6 6

Natural gas extraction locations are also changing

Source: EIA, Natural Gas Maps, http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/maps/maps.htm Last Accessed May 5, 2011.

7 7

What is LCA?

8 8

LCA Defined

• Compilation and evaluation of inputs, outputs, and potential environmental impacts of a product or service throughout its life cycle, from raw material acquisition to final disposal

• Used to identify hot spots or opportunities for improving environmental performance of products or systems

• NETL uses LCA to inform policy

9 9

• Greenhouse Gases – CO2, CH4, N2O, SF6

• Criteria Air Pollutants – NOX, SOX, CO, PM10, Pb

• Air Emissions Species of Interest – Hg, NH3, radionuclides

• Solid Waste • Raw Materials

– Energy Return on Investment • Water Use

– Withdrawn water, consumption, water returned to source – Water Quality

• Land Use – Acres transformed, greenhouse gases

NETL uses a comprehensive set of life cycle metrics

Converted to Global Warming Potential using IPCC 2007 100-year CO2 equivalents

CO2 = 1

CH4 = 25 N2O = 298

SF6 = 22,800

10 10

NETL has also defined life cycle stages for energy systems

LC Stage #1 Raw Material Acquisition

(RMA)

LC Stage #2 Raw Material

Transport (RMT)

LC Stage #3 Energy

Conversion Facility (ECF)

LC Stage #4 Product

Transport (PT)

LC Stage #5 End Use

Upstream Emissions Downstream Emissions

• The ability to compare different technologies depends on the functional unit (denominator) - Power LCAs: 1 MWh of electricity delivered to the end

user - Fuel LCAs: 1 MJ of delivered fuel

11 11

How does NETL’s LCA model of natural gas work and what does it tell us?

12 12

NETL has developed a detailed LCA model that allows modeling of all types of natural gas sources

Raw Material Acquisition

Raw Material Processing Raw Material Extraction

Energy Conversion Facility Product

Transport

Raw Material Transport

Pipeline Operation (Energy &

Combustion Emissions)

Plant Operation

Plant Construction

Pipeline Construction

Trunkline Operation

Switchyard and Trunkline Construction

Transmission & Distribution

CCUS Operation

CCUS Construction

Gas Centrifugal Compressor

Valve Fugitive Emissions

Dehydration

Acid Gas Removal

Reciprocating Compressor

Electric Centrifugal Compressor

Liquids Unloading Venting/Flaring

Workovers Venting/Flaring

Other Point Source Emissions Venting/Flaring

Other Fugitive Emissions

Venting/Flaring

Venting/Flaring

Well Construction

Well Completion Venting/Flaring

Other Point Source Emissions Venting/Flaring

Other Fugitive Emissions

Valve Fugitive Emissions

Venting/Flaring

Venting/Flaring

Diesel

Steel

Concrete

Surface Water for Hydrofracking

(Marcellus Only)

Transport of Water by Truck

(Marcellus Only)

Flowback Water Treated at a WWTP

(Marcellus Only)

Diethanolamine

Steel

Concrete

Electricity

Cast Iron

Steel

Concrete

Electricity

Pipeline Operation

(Fugitive Methane) Flowback Water

Treated by Crystallization

(Marcellus Only)

Diesel

Electricity

Water Withdrawal & Discharge During Well Operation

Aluminum

Diesel

End Use

End Use (Assume 100%

Efficient)

13 13

A detailed list of parameters allows modeling of natural gas from various extraction sources

• 3 types of episodic emissions: completion, workover, liquids unloading • Routine emissions include valve emissions, other fugitives, and other point sources • Valve emissions & other fugitives are not recoverable; other point sources are recovered and flared • NETL’s model uses a similar parameterization approach for other stages, including gas processing and

transport

Property (Units) Onshore Associated Offshore Tight Gas Barnett Shale

Marcellus Shale CBM

Natural Gas Source Contribution to 2010 U.S. Domestic Supply 22% 6.6% 12% 27% 21% 2.5% 9.4%

Average Production Rate (Mcf /day) low 46 85 1,960 77 192 201 73

expected 66 121 2,800 110 274 297 105 high 86 157 3,641 143 356 450 136

Expected EUR (Estimated Ultimate Recovery) (BCF) 0.72 1.32 30.7 1.20 3.00 3.25 1.15

Natural Gas Extraction Well Flaring Rate (%) 51% (41 - 61%) 15% (12 - 18%) Well Completion (Mcf natural gas/episode) 47 3,670 9,175 9,175 49.6

Well Workover (Mcf natural gas/episode) 3.1 3,670 9,175 9,175 49.6

Lifetime Well Workovers (Episodes/well) 1.1 3.5 Liquids Unloading (Mcf natural gas/episode) 23.5 n/a 23.5 n/a n/a n/a n/a Lifetime Liquid Unloadings (Episodes/well) 930 n/a 930 n/a n/a n/a n/a Valve Emissions, Fugitive (lb CH₄/Mcf natural gas) 0.11 0.0001 0.11 Other Sources, Point Source (lb CH₄/Mcf natural gas) 0.003 0.002 0.003 Other Sources, Fugitive (lb CH₄/Mcf natural gas) 0.043 0.01 0.043

14 14

89% of natural gas extracted from the ground is delivered to the power plant or city gate

Of the 11% reduction: - 57% is used to power various processing and transport equipment - 28% is point source emissions that can be captured and flared - 15% is fugitive emissions (spatially separated emissions difficult to capture or control)

Onshore, 22%

Transport, 89.4%

Associated, 7%

Offshore, 12%

Tight, 27%

Shale, 23%

CBM, 9%

Processing, 90.7%

Extraction, 98.5%

Fugitive, 1.6% Point Source, 3.0% Flare and Use, 6.0%

15 15

GHG results show variability among natural gas types

• Variability driven by differences in production rates and episodic emission factors

• Offshore natural gas has lowest GHGs of any source; it has a high production rate and offshore wells are motivated to control methane emissions for safety and risk-mitigation reasons

• Imported gas (LNG) has highest GHG emissions; liquefaction and regasification is energy intensive

12.9

6.1

7.6

12.2

7.8

12.4 12.2

18.3

0

4

8

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16

20

Onshore Offshore Associated Tight Gas CBM Barnett Shale Marcellus Shale Imported LNG

Conventional Unconventional

GH

G E

mis

sion

s, 2

007

IPCC

100

-yr G

WP

(g C

O₂e

/MJ)

Raw Material Acquisition Raw Material Transport

Domestic Average, 10.9

16 16

Drilling down into the results shows the activities that contribute the most to the upstream GHG profiles

• Liquid unloading is a key episodic emission for onshore conventional natural gas; completion and workovers are key episodic emissions for unconventional natural gas

• Compressors (processing and pipeline) are a significant source of CO2

• Hydrofracking water delivery and treatment is 2.1% of upstream GHG from Marcellus Shale natural gas

Onshore Natural Gas Extraction and Transport Marcellus Shale Natural Gas Extraction and Transport

12.9 g CO₂e/MJ 17.8%

3.6% 0.1%

18.3% 0.0%

0.2% 2.3% 0.1% 4.9%

7.8% 0.2% 3.0%

0.0% 40.1%

0.1% 1.6%

0 4 8 12 16 20

Cradle-to-Gate Pipeline Fugitive Emissions

Pipeline Compressors Pipeline Construction

Compressors Valve Fugitive Emissions

Other Point Source Emissions Other Fugitive Emissions

Dehydration Acid Gas Removal

Valve Fugitive Emissions Other Point Source Emissions

Other Fugitive Emissions Workovers

Liquid Unloading Well Completion

Well Construction

Proc

essin

g Ex

trac

tion

RMT

RMA

GHG Emissions, 2007 IPCC 100-yr GWP

(g CO₂e/MJ)

CO₂ CH₄ N₂O

12.2 g CO₂e/MJ 18.9% 3.8% 0.1%

19.4% 0.0% 0.2%

2.5% 0.1% 5.1% 1.2% 0.9%

8.3% 0.3% 3.2%

27.4% 7.7%

1.1%

0 4 8 12 16 20

Cradle-to-Gate Pipeline Fugitive Emissions

Pipeline Compressors Pipeline Construction

Compressors Valve Fugitive Emissions

Other Point Source Emissions Other Fugitive Emissions

Dehydration Acid Gas Removal Water Treatment

Water Delivery Valve Fugitive Emissions

Other Point Source Emissions Other Fugitive Emissions

Workovers Well Completion

Well Construction

Proc

essin

g Ex

trac

tion

RMT

RMA

GHG Emissions in 2007 IPCC 100-yr GWP (g CO₂e/MJ)

CO₂ CH₄ N₂O

17 17

1.1%

-1.2%

2.5%

-5.1%

7.7%

8.3%

23.8%

27.4%

27.4%

-35.9%

-60% -40% -20% 0% 20% 40% 60%

Well Depth

Processing Flare Rate

Other Fugitives, Processing

Extraction Flare Rate

Completion Vent Rate

Pneum. Vent Rate, Extraction

Pipeline Distance

Workover Vent Rate

Workover Frequency

Production Rate

Production rate is the top driver of GHG sensitivity, followed by episodic emissions and pipeline distance

• Production rate is a key factor in apportionment of environmental burdens

• Emission factors for episodic emissions are a greater driver of GHG emissions than emission factors for routine operations

• Market forces may prevent a reduction in average pipeline distances, but it is possible to reduce pipeline emissions

These graphs show all sensitivities relative to a 100% increase in the input parameter. A positive percent change indicates a direct relationship. A negative percent change indicates an inverse relationship.

For example, a 100% increase in completion vent rate causes a 7.7% increase in upstream GHG emissions for Marcellus Shale natural gas.

Onshore Natural Gas Extraction and Transport Marcellus Shale Natural Gas Extraction and Transport

-1.2%

1.6%

2.4%

3.1%

7.8%

22.5%

-30.5%

40.2%

40.2%

-41.4%

-60% -40% -20% 0% 20% 40% 60%

Processing Flare Rate

Well Depth

Other Fugitives, Processing

Other Fugitives, Extraction

Pneum. Vent Rate, Extraction

Pipeline Distance

Extraction Flare Rate

Liquid Unloading Frequency

Liquid Unloading Vent Rate

Production Rate

18 18

Production rates for onshore conventional wells are variable, while Marcellus performance is uncertain

• What’s a typical well for onshore conv. production? – 479,000 conventional onshore wells in the U.S. – With respect to well count, the average well produces

70 Mcf/day – With respect to contribution to total production, the

average well produces ~500 Mcf/day • There’s no historical data for Marcellus production

– Current data support estimated ultimate recoveries of 3.2 BCF/well life

– Recent USGS data suggest that ultimate recoveries could be closer to 2.0 BCF/well life

19 19

All natural gas types show an inverse relationship between production rate and upstream GHG emissions

• The retirement of older wells will improve the overall GHG profile of conventional onshore natural gas • Lower-than-expected production from Marcellus Shale will increase the GHG profile of Marcellus Shale

natural gas

12.9 g CO2e/MJ 12.2 g CO2e/MJ

0

2

4

6

8

10

12

14

16

18

0 50 100 150 200 250 300 350

GH

G E

mis

sion

s in

IPC

C 2

007

100-

yr G

WP

(g

CO

2e/M

J)

Single Well Production Rate (Mcf/day)

Onshore Conventional Marcellus Shale

20 20

How will new regulations and voluntary emission reductions change the

environmental profile of natural gas?

21 21

EPA New Source Performance Standards (NSPS) regulate VOC emissions from the oil and gas sector

• Final NSPS rule established August 16, 2012 • Methane is key VOC from natural gas extraction and processing • NSPS regulates emissions from:

– Well completions and workovers – Centrifugal compressors – Reciprocating compressors – Storage tanks – Pneumatic controllers

• NSPS does not regulate emissions from: – Liquid unloading from conventional wells – Compressors used for pipeline transmission

22 22

NETL’s parameterized modeling approach can estimate the GHG changes caused by NSPS

• Reduced emission completions (RECs) for unconventional wells – Can reduce unconventional completion emissions by 95% (NSPS, 2012) – New completion and workover emission factor = 9,175*(100% - 95%) = 459 Mcf natural gas/episode – A higher extraction flaring rate is also expected for RECs, so increase unconventional flaring rate from 15%

to 51%

• Replacement of compressor wet seals with dry seals – Can reduce centrifugal compressor CH4 emissions 95% (NSPS, 2012) – New emission factor for centrifugal compressors (at processing site) = 0.0069 kg CH4/kg natural gas compressed * (100% - 95%) = 0.00035 kg CH4/kg natural gas compressed

• Routine replacement of compressor rod packings – Can reduce reciprocating compressor CH4 emissions 95% (NSPS, 2012) – New emission factor for reciprocating compressors (at processing site) = 0.0306 kg CH4/kg natural gas combusted * (100% - 95%) = 0.00153 kg CH4/kg natural gas combusted

• Replacement of pneumatic controllers – High bleed controllers have leak rates of 6 - 42 scf/hr (EPA, 2006b) – Low bleed controllers have leak rates less than 6 scf/hr and are used by offshore gas wells (EPA, 2006b) – New emission factor for onshore conventional and unconventional valves = existing emission factor for

offshore valves = 0.0001 lb CH4/Mcf

23 23

12.9 11.4

6.1 5.7

7.6 6.1

12.2

6.3 7.8

6.3

12.3

6.4

12.2

6.5

10.9

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S +

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ntar

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S

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S +

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ntar

y

Onshore Offshore Associated Tight Gas CBM Barnett Shale Marcellus Shale

Conventional Unconventional Domestic Mix (2010)

GHG

Em

issi

ons

in 2

007

IPCC

100

-yr G

WP

(g

CO

₂e/M

J)

NG Acquistion Pipeline Transmission

NSPS can reduce emissions from all natural gas sources, but brings greatest improvements to unconventional sources

• NSPS reduces GHG emissions of the domestic mix by 33 percent • Greatest reductions are driven by reduced emission completions (RECs) • NSPS overlooks the opportunity for liquid unloading emission reductions and does not

address pipeline emissions

12.9

6.1 7.6

12.2

7.8

12.3 12.2 10.9

0

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S

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S +

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ntar

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ent

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S

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S +

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ntar

y

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ent

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S

NSP

S +

Volu

ntar

y

Onshore Offshore Associated Tight Gas CBM Barnett Shale Marcellus Shale

Conventional Unconventional Domestic Mix (2010)

GHG

Em

issi

ons

in 2

007

IPCC

100

-yr G

WP

(g

CO

₂e/M

J)

NG Acquistion Pipeline Transmission

24 24

Some important emission sources are not addressed by NSPS or are outside the scope of NSPS

• NSPS does not propose reductions in emission factors for liquids unloading from conventional wells

– New options for liquid unloading can reduce NG emissions at least 500 Mcf/yr per well (EPA, 2011b)

– New liquid unloading emission factor = 23.5 Mcf/episode - (500 Mcf/yr)/(31 episodes/yr) = 7.4 Mcf natural gas/episode

• NSPS boundaries stop after the gas processing plant and do not include natural gas pipeline transmission

– Natural gas transmission pipelines could replace centrifugal compressor wet seals with dry seals

– Centrifugal compressors are 19 percent of transmission pipeline compressors – New pipeline emission factor = 5.37E-06 kg CH4/kg-km * ((100% - 95%) * 19% + 81%) = 4.40E-06 kg CH4/kg-km

25 25

12.9 11.4

6.1 5.7

7.6 6.1

12.2

6.3 7.8

6.3

12.3

6.4

12.2

6.5

10.9

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S +

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ntar

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ent

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S

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S +

Volu

ntar

y

Onshore Offshore Associated Tight Gas CBM Barnett Shale Marcellus Shale

Conventional Unconventional Domestic Mix (2010)

GHG

Em

issi

ons

in 2

007

IPCC

100

-yr G

WP

(g

CO

₂e/M

J)

NG Acquistion Pipeline Transmission

Voluntary emission reductions, in addition to NSPS regulations, could further reduce upstream emissions

• Voluntary actions lead to an additional 16% reduction in the upstream GHG emissions of domestic natural gas (from 7.3 to 6.1 CO2e/MJ)

• Total GHG emission reductions from NSPS and voluntary action are 43% (from 10.9 to 6.1 CO2e/MJ)

12.9

6.1 7.6

12.2

7.8

12.3 12.2 10.9

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S +

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ntar

y

Onshore Offshore Associated Tight Gas CBM Barnett Shale Marcellus Shale

Conventional Unconventional Domestic Mix (2010)

GHG

Em

issi

ons

in 2

007

IPCC

100

-yr G

WP

(g

CO

₂e/M

J)

NG Acquistion Pipeline Transmission

12.9 11.4

7.4 6.1 5.7 5.2

7.6 6.1 5.7

12.2

6.3 5.9

7.8 6.3 5.9

12.3

6.4 6.0

12.2

6.5 6.1

10.9

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S +

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Onshore Offshore Associated Tight Gas CBM Barnett Shale Marcellus Shale

Conventional Unconventional Domestic Mix (2010)

GHG

Em

issi

ons

in 2

007

IPCC

100

-yr G

WP

(g

CO

₂e/M

J)

NG Acquistion Pipeline Transmission

26 26

Conclusions

• LCA is a valuable tool for identifying opportunities for improvement in a supply chain

• Methane emissions from natural gas acquisition and delivery can be reduced with existing, cost-effective technologies

• Greatest opportunities for upstream GHG emission reductions are the development of productive wells, capture of episodic emissions, and prevention of pipeline emissions

• Some emission reductions will be achieved through regulations, while others will be voluntary

• If new wells are not developed and methane capture technologies are not implemented, the average GHG profile of natural gas will increase

27 27

What about the rest of the life cycle?

28 28

There are opportunities for improving the upstream profile of natural gas, but combustion dominates the GHG profile

• NSPS reductions to fleet baseload power: - 12 kg CO2e/MWh when using conventional natural gas (2% reduction) - 54 kg CO2e/MWh when using unconventional natural gas (10% reduction) - 37 kg CO2e/MWh when using domestic mix of natural gas (7% reduction)

506 521 515 489

750

163

494 467 478 459

703

128

-2% -10% -7% -6%

-6%

-22%

0

100

200

300

400

500

600

700

800

900

Fleet Baseload

Fleet Baseload

Fleet Baseload

NGCC GTSC NGCC with CCS

Fleet Baseload

Fleet Baseload

Fleet Baseload

NGCC GTSC NGCC with CCS

Conv. UnConv. Average Conv. UnConv. Average

Before NSPS After NSPS

GHG

Em

issi

ons,

200

7 IP

CC 1

00-y

r GW

P (k

g CO

₂e/M

Wh)

Fuel Acquisition Fuel Transport Power Plant T&D

29 29

On a life cycle basis for electricity, the power plant generates more GHG emissions than fuel acquisition and transport

• On a 100-yr IPCC GWP basis, natural gas power has a lower impact than coal power • Because of their similar roles, the fairest comparison is the domestic mix of coal through an average

baseload coal power plant vs. the domestic mix of natural gas run through an average baseload natural gas plant (1,123 vs. 514 kg CO2e/MWh)

• Fuel acquisition and transport is 22% of life cycle GHG emissions from average NG fleet baseload – it is only 5.2% of life cycle GHG emissions from average coal fleet baseload

1,123 1,131

958 965

505 520 514 488

748

230 277 162

0

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1,000

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Fleet Baseload

EXPC IGCC SCPC Fleet Baseload

Fleet Baseload

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NGCC GTSC IGCC SCPC NGCC

Average Illinois No. 6 Conv. UnConv. Average With Carbon Capture

Coal Natural Gas

GHG

Em

issi

ons,

200

7 IP

CC 1

00-y

r GW

P (k

g CO

₂e/M

Wh)

Fuel Acquisition Fuel Transport Power Plant T&D

30 30

GHG results are more sensitive for natural gas than for coal when changing from 100- to 20-year GWPs

1,123 1,207

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NGCC GTSC IGCC SCPC NGCC

Average Illinois No. 6 Conv. UnConv. Average With Carbon Capture

Coal Natural Gas

GHG

Em

issi

ons,

200

7 IP

CC G

WP

(kg

CO₂e

/MW

h)

31 31

Bottom Line: Combustion Emissions Still Matter Most

• Upstream emission reductions are a near term opportunity, but CO₂ from combustion remains the largest contributor to the GHG emissions from natural gas power

– Best case regulatory approaches reduce life cycle GHG emissions of baseload natural gas power by only 7%

– Difficult to improve upon efficiency of combined cycle power plants

– After upstream GHG reductions have been made, CO2 capture, utilization and storage (CCUS) will be the next step toward reductions in the life cycle GHGs from natural gas power

32 32

References Baker-Hughes. (2012). North America Rotary Rig Counts: Baker Hughes Incorporated.

Dennis, S. M. (2005). Improved Estimates of Ton-Miles. Journal of Transportation and Statistics, Volume 8, Number 1. U.S. Department of Transportation, Research and Innovative Technology Administration, Bureau of Transportation Statistics.

EIA. (2010). United States Distribution of Wells by Production. U.S. Energy Information Administration Retrieved July 19, 2011, from http://www.eia.gov/pub/oil_gas/petrosystem/us_table.html

EIA. (2011). Natural Gas Gross Withdrawals and Production. U.S. Energy Information Administration Retrieved April 5, 2011, from http://www.eia.doe.gov/dnav/ng/ng_prod_sum_a_EPG0_VRN_mmcf_a.htm

EIA. (2012a). AEO2012 Early Release Overview. (DOE/EIA-0383ER(2012)). Washington, DC: U.S. Energy Information Administration Retrieved April 17, 2012, from http://www.eia.gov/forecasts/aeo/er/early_intensity.cfmEIA. (2011d). Weekly Natural Gas Storage Report: U.S. Department of Energy, Energy Information Administration.

Engelder, T. (2009, August). Marcellus 2008: Report Card on the Breakout Year for Gas Production in the Appalachian Basin. Fort Worth Basin Oil and Gas Magazine, 18-22.

EPA. (1995). Compilation of Air Pollutant Emission Factors, Volume I: Stationary Point and Area Sources. (AP-42). Research Triangle Park, NC: U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards Retrieved May 18, 2010, from http://www.epa.gov/ttnchie1/ap42

EPA. (2006b). Options for Reducing Methane Emissions from Pneumatic Devices in the Natural Gas Industry. U.S. Environmental Protection Agency. Washington, D.C. Retrieved August 22, 2012 from http://www.epa.gov/gasstar/documents/ll_pneumatics.pdf

EPA. (2006c). Convert Gas Pneumatic Controls To Instrument Air. U.S. Environmental Protection Agency. Washington, D.C. Retrieved August 17, 2012 from http://www.epa.gov/gasstar/documents/ll_instrument_air.pdf

EPA. (2006b). Convert Gas Pneumatic Controls To Instrument Air. U.S. Environmental Protection Agency. Washington, D.C. Retrieved August 17, 2012 from http://www.epa.gov/gasstar/documents/ll_instrument_air.pdf

EPA. (2010). Emissions & Generation Resource Integrated Database (eGrid). from United States Environmental Protection Agency http://www.epa.gov/cleanenergy/energy-resources/egrid/

EPA. (2011). Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2009. (EPA 430-R-11-005). Washington, D.C. Environmental Protection Agency, Retrieved August 23, 2011, from http://epa.gov/climatechange/emissions/usinventoryreport.html

EPA. (2011b). Reduced Emissions Completions for Hydraulically Fractured Natural Gas Wells. U.S. Environmental Protection Agency. Washington, D.C. Retrieved August 17, 2012 from http://www.epa.gov/gasstar/documents/reduced_emissions_completions.pdf

EPA. (2011c). Options for Removing Accumulated Fluid and Improving Flow in Gas Wells . U.S. Environmental Protection Agency. Washington, D.C. Retrieved August 17, 2012 from http://www.epa.gov/gasstar/documents/ll_options.pdf

FERC. (2010). Federal Energy Regulatory Commission: Form 2/2A - Major and Non-major Natural Gas Pipeline Annual Report: Data (Current and Historical) Retrieved August 23, 2011, from http://www.ferc.gov/docs-filing/forms/form-2/data.asp

Hedman, B. (2008). Waste Energy Recovery Opportunities for Interstate Natural Gas Pipelines. Interstate Natural Gas Association of America Retrieved July 25, 2011, from http://www.ingaa.org/File.aspx?id=6210

NETL. (2010a). Cost and Performance Baseline for Fossil Energy Plants, Volume 1: Bituminous Coal and Natural Gas to Electricity (Revision 2 ed.): U.S. Department of Energy, National Energy Technology Laboratory.

Pierce, B., Colman, J., & Demas, A. (2011). USGS Releases New Assessment of Gas Resources in the Marcellus Shale, Appalachian Basin. USGS. Retrieved May 18, 2012, from http://www.usgs.gov/newsroom/article.asp?ID=2893

33 33

Contact Information

Timothy J. Skone, P.E. Senior Environmental Engineer Office of Strategic Energy Analysis and Planning (412) 386-4495 [email protected]

Robert James, Ph.D. General Engineer Office of Strategic Energy Analysis and Planning (304) 285-4309 [email protected]

Joe Marriott, Ph.D. Lead Associate Booz Allen Hamilton (412) 386-7557 [email protected]

James Littlefield Associate Booz Allen Hamilton (412) 386-7560 [email protected]

NETL www.netl.doe.gov

Office of Fossil Energy www.fe.doe.gov

34 34

Supporting Material: Life Cycle Analysis Approach

International Organization for Standardization (ISO) for LCA

• ISO 14040:2006 Environmental Management – Life Cycle Assessment – Principles and Framework

• ISO 14044 Environmental Management – Life Cycle Assessment – Requirements and Guidelines

• ISO/TR 14047:2003 Environmental Management – Life Cycle Impact Assessment – Examples of Applications of ISO 14042

• ISO/TS 14048:2002 Environmental Management – Life Cycle Assessment – Data Documentation Format

Goal & Scope Definition

Impact Assessment (LCIA)

Inventory Analysis (LCI)

Interpretation (LCA)

Source: ISO 14040:2006, Figure 1 – Stages of an LCA (reproduced)

35 35

A Deeper Look at Unconventional Natural Gas Extraction via Horizontal Well, Hydraulic Fracturing

(the Barnett Shale Model)

Source: NETL, Shale Gas: Applying Technology to Solve America’s Energy Challenge, January 2011

36 36

Supporting Material: NETL’s model also parameterizes NG processing

• Unit processes for acid gas removal, dehydration, and other emissions are parameterized with respect to gas properties, but current data do no allow differentiation among natural gas sources

• Co-product allocation is used to account for the two products (natural gas and NMVOC) of acid gas removal

• Offshore platforms require centrifugal compressors, but reciprocating compressors are most likely technology for other sources of natural gas

• Barnett shale uses electrically-powered, centrifugal compressors when extraction and processing is near a city

Property (Units) Onshore Associated Offshore Tight Gas Barnett Shale Marcellus

Shale CBM

Acid Gas Removal (AGR) and CO2 Removal Unit Flaring Rate (%) 100% CH₄ Absorbed (lb CH₄/Mcf natural gas) 0.04 CO₂ Absorbed (lb CO₂/Mcf natural gas) 0.56 H₂S Absorbed (lb H₂S/Mcf natural gas) 0.21 NMVOC Absorbed (lb NMVOC/Mcf natural gas) 6.59 Glycol Dehydrator Unit Flaring Rate (%) 100% Water Removed (lb H₂O/Mcf natural gas) 0.045 CH₄ Emission Rate (lb CH₄/Mcf natural gas) 0.0003 Valves & Other Sources of Emissions Flaring Rate (%) 100% Valve Emissions, Fugitive (lb CH₄/Mcf natural gas) 0.0003 Other Sources, Point Source (lb CH₄/Mcf natural gas) 0.02 Other Sources, Fugitive (lb CH₄/Mcf natural gas) 0.03 Natural Gas Compression at Gas Plant

Compressor, Gas-powered Reciprocating (%) 100% 100% 100% 75% 100% 100%

Compressor, Gas-powered Centrifugal (%) 100%

Compressor, Electrical, Centrifugal (%) 25%

37 37

Supporting Detail: Onshore conventional wells exhibit the most variability in production rates

0%

2%

4%

6%

8%

10%

12%

14%

16%

0-1 1-2 2-4 4-6 6-8 8-10 10-12 12-15 15 - 20 20 - 25 25 - 30 30 - 40 40 - 50 50 - 100 100 - 200

200 - 400

400 - 800

800 - 1600

1600 - 3200

3200 - 6400

6400 - 12800

> 12800

Con

trib

utio

n to

Tot

al

U.S

. Ons

hore

Pro

duct

ion

Production Rate Bracket (BOE/day)

The 25-30 BOE bracket is representative of an

average onshore conventional well

The 100-200 BOE bracket is representative

of an average unit of onshore conventional

natural gas

• Low production rate brackets have a high well count; high production rate brackets have a low well count • As old wells are retired, the average production rate will be more representative of the higher production

rate brackets

• Historical data not available for Marcellus Shale • Current estimated ultimate recoveries (EUR) for Marcellus Shale wells are 3.2 BCF, but could be closer to

2 BCF (Pierce et al., 2012)

Source: EIA, 2010 (United States Distribution of Wells by Production)

38

Supporting Material: In contrast to the unit processes for extraction and

processing, pipeline transport is based on national data • National methane emissions from natural gas pipeline transmission

(EPA, 2011) – Emethane = 2.12 billion kg CH4/yr

• National natural gas consumption (EIA, 2011) – NGconsumption = 21.8 MMBtu/yr

• Methane emission factor from pipeline operations – National ton-miles of natural gas transmission (Dennis, 2005 and EPA, 2011) – Fuel consumed by pipeline companies (FERC, 2010) – Methane emission factor for natural gas combustion in reciprocating compressors and gas

turbines used by centrifugal compressors (EPA, 1995) – Percent split between pipeline compressor types (Hedman, 2008) – EFmethane = 9.97E-05 kg CH4/MMBtu-km

39 39

Supporting Material: Natural Gas Power Performance

• Performance of NGCC power plants (with and without CCS) is detailed in NETL’s bituminous baseline (NETL, 2010a)

• GTSC performance is adapted from baseline by considering energy & material flows pertinent to gas turbine only

• Characteristic of U.S. natural gas (and coal) average baseload are based on eGRID (EPA, 2010) data

Power Plant Characteristic NGCC NGCC/ccs GTSC Fleet Baseload

Net Power, MWe 555 474 360 N/A

Net Plant Efficiency (HHV), % 50.2% 42.8% 30.0% 47.1%

Net Plant Heat Rate (HHV), MJ/MWh 7,172 8,406 11,983 7,643

Consumables

Natural Gas Feed Flow, kg/hr 75,901 75,901 75,901 N/A

Raw Water Consumption, m3/min 6.9 11.3 4.4 N/A

Air Emissions, kg/MWh

Carbon Dioxide 362 46.3 560 379

Methane 7.40E-06 8.61E-06 N/A N/A

Nitrous Oxide 2.06E-06 2.39E-06 N/A N/A

Carbon Monoxide 2.70E-04 3.14E-04 4.59E-01 N/A

Nitrogen Oxides 2.80E-02 3.25E-02 4.24E-02 N/A

Sulfur Dioxide 1.93E-06 2.24E-06 N/A N/A

Weighted Mean: 10,889

MJ/MWh (33.1%

efficiency) Weighted

Mean: 7,643

MJ/MWh (47.1 %

efficiency)

5,000

7,000

9,000

11,000

13,000

Coal Natural Gas

Heat

Rat

e (M

J/M

Wh)

median w. mean

40 40

Supporting Detail: Converting inventory of GHGs to 20-year GWP emphasizes the importance of CH4 losses to upstream

GHG results

10.9

25.9

12.9

30.7

6.1

12.2

7.6

16.9

12.2

29.9

7.8

17.1

12.4

30.0

12.2

29.3

18.3

28.1

0

10

20

30

40

100-yr 20-yr 100-yr 20-yr 100-yr 20-yr 100-yr 20-yr 100-yr 20-yr 100-yr 20-yr 100-yr 20-yr 100-yr 20-yr 100-yr 20-yr

Avg. Gas Onshore Offshore Associated Tight CBM Barnett Shale Marcellus Shale

LNG

Conventional Unconventional

GHG

Em

issi

ons,

200

7 IP

CC G

WP

(g C

O₂e

/MJ)