Clean Energy Opportunities

1. Economic Developers Alberta Annual Conference April 12, 2012 Clean Energy Opportunities Marc Godin Portfire Associates

2. Energy Flow in Canada Bruneau, A., D. Connor, et al. (2006). Powerful Connections. Natural Resources Canada. Ottawa, Ontario.

3. EnergyLosses Useful Energy

4. CDM (Efficiency and Solar DHW ) Soft Green Scenario Deployment of Technologies (Electricity Generated in TWh) CDM (Fuel Switching) Demand response, TOU Pricing & Conservation 200.00 CDM Renewables (Onsite Wind & Hydro) Self Generation (CDM Cogen, Microturbines & Fuel 180.00 Cells) Solar (Rooftop) Biomass & Landfill Gas (< 50 MW) 160.00 Waste Heat Recycling Substation Peaker & CHeP 140.00 Industrial Gas Cogeneration (<50 MW) Solar (Greenfield) 120.00 Wind Farms Interconnection 100.00 Storage Hydro 80.00 Biomass & Landfill Gas (> 50 MW) Gas Simple Cycle (Peaking) 60.00 Industrial Gas Cogeneration (> 50 MW) Gas Combined Cycle (CCGT) 40.00 Oil/Gas Coal Gasification 20.00 Coal ST Nuclear - New 0.00 Nuclear - Refurbished 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Nuclear - Existing Ontario Power System Example

7. Renewable Energy • Hydro • Dams • Run-of-the river • Wind • Solar • PV, thin solar, organic solar • Solar farms; rooftop solar • Geothermal • Others

8. Alternative Energy • Low carbon fossil fuels • Energy efficiency and improved production • Natural gas • Carbon capture and storage • Co-generation • Nuclear • Waste heat utilization • Energy storage • Conservation and demand management • Efficient energy conversion

9. Co-generation • Co-production of electrical and useful thermal energy • Energy efficiency doubles from ~30% to ~60% • Technologies: • Gas fired turbines • Gas fired internal combustion engines • Micro-turbines • Stirling engines • Challenge is matching the cycles of electrical and thermal demand

10. Co-Generation –Brayton Cycle Technologies • Gas Turbines (5 – 500 MW) • Micro-turbines (30 kW – 250 kW)

11. Co-Generation –Engine Technologies • Gas fired internal combustion engines (11kW – 4.9 MW) • Stirling engines (Developmental 5 – 55 kW)

12. Waste Heat Recovery • Waste heat is useful energy derived from: • Exhaust heat from any industrial process or power generation; • Industrial tail gas that would otherwise be flared, incinerated or vented; • Pressure drop in any gas • Recovering waste heat is analogous to recycling energy

13. Usages for Waste Heat • Thermal energy input: • to district energy systems and industrial plants • for agricultural applications such as greenhouses and specialized crops • Local power generation SaskPower’s Shand Greenhouse

14. Waste Heat Recovery Example Organic Rankine Cycle • Four units (% MW each) using Organic Rankine Cycle technology (Alliance Pipeline and SaskPower)

15. Geothermal Systems • Hot Dry Rock: Water injected into deep, very hot rock to produce steam • Dry Steam Resources: Naturally occurring steam in porous rock formations; best resources but not common. • Hot Water Resources: Geological water above 180° C which flashes to wet steam capable of driving a steam turbine. • Warm Water Resources: Geological water between 50° C and 180° C; used for heating; or electricity can be produced with a binary plant. • Low Temperature: For ground heat pumps at shallow depths

16. Decentralized Energy • Power production close to the load • Small scale (100 W – 100 kW) • Natural gas combined heat and power (internal combustion engines and microturbines) • Turboexpanders • Stirling Engines (Developmental) • Photovoltaics and thin solar • Wind • Thermoelectric generators • Fuel cells

17. Conclusion • Many opportunities exist for improved utilization of energy • Challenges are costs, logistics, regulations and technology

18. Additional Slides

19. Calgary Case Study • Economic analysis of distributed generation done in 2006 • Electricity demand increases from 8,286 GWh per year to 12,973 GWh in year 20 (2025) on the basis of an annual growth rate of 2.3% per year • Peak capacity in 2025 is calculated to be 2,710 MW based on a peak growth rate of 2.6% per year • Using 100% CG: 1,392 MW of new generation capacity is required • Using 100% DE: 1,302 MW of new capacity is needed

20. Alberta Internal Load

21. Transmission and Distribution • Transmission losses: 5% • Transmission costs: • New line between Edmonton and Calgary: $488/kW • New line between Alberta and Montana: $400/kW • IEA/WADE average for U.S. and Canada: $384/kW • Average used in the study: $436/kW • Distribution losses: 3% • Distribution costs: • Average of ENMAX 2005 and 2006 capital expenditures for new distribution: $1,885/kW

23. Power Generation from Waste Heat • Depends on Source and Quality of Waste Heat Supply Available • Heat Recovery Steam Generator (Unfired or Fired) • Combined waste heat and gas fired • Organic Rankine Cycle • Kalina Cycle (Developmental – 3.2 MW plant at Canoga Park, CA; two component fluid; mostly for geothermal)

24. Waste Heat Recovery ExampleEnhanced Combined Cycle Source: Epcor Power

25. Sources of Waste Heat • Upgraders, refineries and chemical plants • Natural gas compressor stations • Pressure drop at gas delivery points • Natural gas and biomass fired plants next to thermal energy users to recycle heat

26. Western Canada Sedimentary Basin • The Geological Survey of Canada considers that the WCSB is the largest accessible warm water resource in the country. • The heat energy present in the WCSB was estimated to be 3 orders of magnitude larger than the energy contained in Canada’s conventional oil and gas reserves. • If only 1% of this energy could be recovered because of economic and practical limitations, the warm water energy resource of the WCSB would still be larger than the energy contained in Canadian conventional oil and gas reserves.

27. Warm Water Geothermal • The WCSB is perforated by a very large number of producing or abandoned wells that could bring to the surface substantial quantities of water with temperatures ranging from 30°C to 100°C. • The opportunity to utilize the existing well infrastructure avoids a significant fraction of costs incurred by typical geothermal installations. • Moderate temperature geothermal that leverages existing infrastructure may be an enabling energy source for low impact recovery technologies

28. Alberta Oil Pools with Geothermal Potential

29. U.S. Gulf Coast • The states of Texas, Louisiana, Mississippi, Alabama and Arkansas have thousands of wells reaching depth where formation temperatures range from 120 to 200°C. • A flow rate of 30,000 barrels per day of produced water at 150°C would generate 1.5 megawatts of electricity using a conventional isopentane binary plant. • If produced water temperature is down to 100° C, only 0.5 megawatts are produced.

30. Recovery Approaches • Binary plants (Organic Rankine Cycle) with propane could produce renewable electricity from field with high water cuts. • Mechanical energy could be produced for oil field pumping. • For example, the Natural Energy Engine: warm water expands CO2 in a piston which actuates an oil pump jack.

31. Decentralized Energy 20% lower investment need; CO2 emissions remain at 2000 level Source: OED Investment in Reference (BAU) and Alternative Policy Scenarios, 2001-2030; International Energy Agency, 2003

32. Annual World Survey of DE 2006 Source: World Alliance for Decentralized Energy

33. DE in Denmark

35. PTAC DE Project for Oil and Gas • For 2010 implementation • Electricity supply/demand in oil and gas • Identification of distributed generation opportunities based on commercial technologies and local fuel (e.g. produced gas) • Technology demonstration project