31
Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation of report commissioned by NRCan (Proposal 500018271) Sept. 2016 Scott Stanners Craig Louie Chris Norman 9 November 2016 1 Commercial Confidential Sysene Consulting Inc.

Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

  • Upload
    hanhu

  • View
    219

  • Download
    2

Embed Size (px)

Citation preview

Page 1: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat

and Power (RNG/CHP) for Oil Sands

Summary presentation of report commissioned by NRCan (Proposal 500018271)

Sept. 2016

Scott Stanners

Craig Louie

Chris Norman

9 November 2016 1Commercial Confidential Sysene Consulting Inc.

Page 2: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Agenda

9 November 2016 2

SysEne Company Background

Alberta Context

NRCan Project

Objective 1 – Woody Biomass to RNG

Objective 2 – Woody Biomass for CHP in the Oil Sands

Alternatives

Conclusions

(Link to Full Report )

Page 3: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Company Background

9 November 2016 3

Engineering and Management Consulting for Energy, Transportation, Resource, and High Tech

Systems Approach to Technology, Process, and People

Flyn McCarthy

Chris Norman

Scott Stanners

CraigLouie

Ophir Kendler

Michael Eiche

Page 4: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Projects in the Bioenergy Sector

9 November 2016 4

FortisBC Glenmore Landfill to RNG Community Fuels Biodiesel Plant (Calif.)

Microsoft Data Center Wyoming Landfill to Fuel Cell

Chip, Pellet and Dust Handling System Upgrades

Page 5: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Alberta Context

9 November 2016 5

Coal phase out

Strategic interest

Social license

Page 6: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Oil Sands SAGD requirements

Suncor Fort McKay

9 November 2016 6

• 12 MW electricity• 345 MW steam

Page 7: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Conventional CHP pathway at SAGD site

•Fort MacKay •172 MWe Natural Gas

Gas Turbine with Steam Bottoming Cycle•77% of steam in 2013•Excess electricity sold to

grid•Operating since 2004

9 November 2016 7

Page 8: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

NRCan Study - Evaluation of 2 Pathways

9 November 2016 8

Woody biomass

Renewable Natural Gas

Combined Heat and Power

Gasification

Page 9: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

RNG Cost with Current Technology

9 November 2016 9$ CAD

Natural Gas Wholesale Alberta ~ $2/GJ

Page 10: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Woody biomass characteristics vary and are difficult to convert

9 November 2016 10

Page 11: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Worldwide woody biomass RNG plants

9 November 2016 11

• FICFB = Fast Internally Circulating Fluidized Bed• MILENA = ECN brand name for their indirect gasifier technology• WoodRoll = Cortus Energy brand name for their biomass-to-syngas technology

Page 12: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Fuel feeding system

9 November 2016 12

Page 13: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Current technology is complex with many reactors

9 November 2016 13

Page 14: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Technology maturity is still low

9 November 2016 14

Well-funded, large scale (20 MW) demo projects have often experienced many problems and low availability.

Page 15: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

There are many technology challenges

9 November 2016 15

The “Achilles Heel” of biomass gasification

Page 16: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

GoBiGas cost breakdown ($USD)

9 November 2016 16

Page 17: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Pilot and prefeasibility example

9 November 2016 17

Page 18: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Bio-RNG Pipeline interconnect costs

9 November 2016 18

Page 19: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Preferred options for Alberta conditions

9 November 2016 19

Valmet• Full scale 10-200

MW• Capable company• Successful projects

Cortus Energy• Promising technology• Modular plant design• Reasonable momentum

ECN• Promising technology• High efficiency• Reasonable momentum

New Technology companies

Established large suppliers

Page 20: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Mapping Alberta Biomass to Oil Sands

9 November 2016 20

Page 21: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Supply challenges

9 November 2016 21Idaho National Laboratory 2015

Page 22: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Wood chip costs

Unsubsidized

Operation Cost per green ton, $USD

Harvesting $81

Chipping $18

Transportation $15

Total $114

9 November 2016 22

Subsidized

Operation Cost per green ton, $USD

Harvesting $0

Chipping $18

Transportation $15

Total $33

$114/ton = $20/GJ RNG for fuel

Page 23: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Example: depot strategy

9 November 2016 23

Page 24: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Current supply chain

9 November 2016 24

• High risk• High costs• Uncertain future• Difficult to make high capital

plant investment decisions

Page 25: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

A preferred future

9 November 2016 25

Page 26: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Nexterra business case in UK

9 November 2016 26

• 10 MWe• $100 million• “Free” wood

• Renewable Obligation Certificates

• 25 cents/kWh

Page 27: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Biomass co-firing: partial gasifier (140 MW), partial coal (560 MW)

9 November 2016 27

Page 28: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Case study: Lachenaie Landfill, Montreal

9 November 2016 28

Progressive Wastes

104 MW RNG Landfill to pipeline injection

Commissioned 2015

Project cost $44 million

$6/GJ RNG production cost

Page 29: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Alternate pathway biomass combustion to heat

9 November 2016 29

Valmet CYMIC Boiler

Page 30: Alberta Woody Biomass Syngas to Renewable Natural Gas ... · Alberta Woody Biomass Syngas to Renewable Natural Gas/Combined Heat and Power (RNG/CHP) for Oil Sands Summary presentation

Conclusions

1. Biomass combustion to heat (steam)

2. Biomass co-firing (but coal)

3. Waste-to-RNG

4. Supply chain modernization

5. Government strategy/policy adjustments

9 November 2016 30