CEOS PRESENTATION TO THE ETHANOL EMERGING ISSUES FORUM IN OMAHA, NEBRASKA Scott Hornafius President, Elk Petroleum 9 April 2014
CO2 EOR AND CORN ETHANOL Presentation Outline CO2-EOR in the United States CO2 Sequestration and EOR Carbon Negative Oil Iowa to Wyoming CO2 Pipeline Concept Carbon Value Chain California LCFS Credits Possible Ethanol Oil…
ESTABLISHED AND EXPANDING CO2 INFRASTRUCTURE Weyburn CO2 to Canada Great Plains Coal Gasification Plant Antrim Gas Plant LaBarge McElmo Sheep Dome Mountain Bravo Ammonia Dome Plant Jackson Dome Potential…
WHAT IS CO2 EOR EOR (Enhanced Oil Recovery) delivers almost as much production as Primary and Secondary Recovery (1) (1) Recovery of original oil in place based on history at Little Creek Field. 4
CARBON DIOXIDE ENHANCED OIL RECOVER (CO2-EOR) Source: Advanced Resources International
CO2 EOR PROVEN TECHNOLOGY Growth of CO2 EOR Production in the US. A proven technology delivering growth in oil production and recovery. 6
CORN ETHANOL CO-PRODUCT CARBON CONTENT Corn (one bushel) 9.6kg C Ethanol CO2 DDGS 4.36kg C 2.18kg C 3.06kg C Source: Katherine Hornafius (2013) 7
CORN FOR GRAIN 2012 Production by County in the United States Source: US Department of Agriculture, National Agricultural Statistics Service 8
CARBON NEGATIVE OIL 4 to 6 barrels of CO2 produces one barrel of oil in a CO2-EOR project. Burning one barrel of oil creates less CO2 than is sequestered. CO2 CO2 CO2 OIL CO2 CO2 Source: Katherine Hornafius (2013)…
CO2 FERMENTATION EMISSIONS Annual CO2 Fermentation Emissions for Iowa and Nebraska Ethanol Plants in MtCO2/year 5,194,258 Nebraska 10,528,592 Iowa Source: Katherine Hornafius (2013) 12
CURRENT CO2 PIPELINE INFRASTRUCTURE & OIL FIELDS FAVOURABE TO CO2-EOR Oil fields favourable to CO2EOR CO2 Pipeline 13
POSSIBLE CO2 PIPELINE Relative Ethanol Plant Capacities MINNESOTA SOUTH DAKOTA WISCONSIN POWDER RIVER BASIN NEBRASKA WYOMING IOWA ILLINOIS MISSOURI DENVER-JULESBURG BASIN COLORADO KANSAS Ethanol…
CO2 PIPELINE CONSTRUCTION 1+ million/mile One year to construct 50 year life Source: Global CCS Institute 15
INDUSTRY RISK ASSESSMENT Nebraska Corn Ethanol CO2 Price for EOR vs. California LCFS Credit Price + RISK ASSUMED BY OIL INDUSTRY LCFS Credit Price per Barrel of Oil Oil company gets n all LCFS credits & a tio pays for CO2 l…
CO2 EOR AND CORN ETHANOL Conclusions Produces carbon negative oil, or reduces ethanol carbon intensity Potential additional revenue to ethanol producers from CO2 sales, or additional carbon credits for ethanol Potentially helps…