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Oil and Gas Research Program
North Dakota
Industrial Commission
Application
Project Title: Center for Gas Utilization
Applicant: University of North Dakota Institute
for Energy Studies
Principal Investigator: Steven A. Benson, PhD
Date of Application: August 14, 2012
Amount of Request: $700,000
Total Amount of Proposed Project: $3,000,000
Duration of Project: 9/1/2012-8/31/2015
(3 years)
Point of Contact (POC): Steve Benson
POC Telephone: 701-777-5177
POC E-Mail Address:
POC Address:
366V Upson II 243 Centennial Drive Stop 8153 Grand Forks, ND 58202-8153
TABLE OF CONTENTS
Please use this table to fill in the correct corresponding page number.
Transmittal and Commitment Letter 0
Abstract 1
Project Description 2
Standards of Success 8
Background/Qualifications 8
Management 11
Timetable 12
Budget 12
Confidential Information 13
Patents/Rights to Technical Data 13
Statement of status on Other Project Funding 13
Affidavit of Tax Liability 13
Letter of Support A-1
Budget Summary (narrative) A-2
ABSTRACT
Shale oil booms, especially the Williston Basin, have significantly increased domestic oil production and
are projected to continue producing oil for at least the next 20-30 years. In the Williston Basin, over 200
million cubic feet of gas is flared off each day which represents 30% of the natural gas recovered. The
flared gas not only represents an unused fuel source, but also accounts for over 4 million tons of CO2
emissions on an annual basis.
Objectives: In order to utilize flared gas and reduce emissions, the University of North Dakota, through
the Institute for Energy Studies’ Center for Gas Utilization, proposes to identify, design, construct, test,
and deploy small scale modular equipment to convert natural gas to methanol and electricity. This work
will be conducted through a strategic alliance between UND’s Institute for Energy Studies and Blaise
Energy. The proposed effort to develop a small scale polygeneration system to produce methanol and
electricity from produced gas involves the following steps:
Identify the optimum scalable polygeneration technologies through a detailed engineering
analysis of the technical and economic feasibility of several technology options,
Design, construct, and test a polygeneration prototype at a Blaise Energy generation site,
Determine performance impacts due to changes in gas flow and properties (composition and
liquid component type and abundance),
Overall system efficiency and cost of production of electricity and methanol,
Key operational and design parameters to provide accurate cost information for a full-scale
commercial system.
Educate the next generation of energy experts by having graduate and undergraduate students
work with IES faculty and engineering staff in all aspects of the program.
Expected Results:
The proposed efforts provide key technical and economic information on a working polygeneration
prototype system that is capable of converting up to 2 million cubic feet of gas per day into methanol and
electricity along with separated liquids and carbon dioxide. These results will be summarized in quarterly
reports and a final report that will provide detailed explanation design and performance of the
polygeneration system. The report will also identify specific strategies to utilize flare gas and convert the
gas into an economically beneficial products (methanol and electricity) while minimizing emissions.
Further, the quarterly reports and the final report will be provided for comments and revision.
Duration: 3 years (9/1/2012-8/31/2015)
Total Project Cost:
$700,000 – Requested from North Dakota Oil and Gas Council
$300,000 – Provided by the North Dakota Department of Commerce Center of Research Excellence
$2,000,000 – Provided by Blaise Energy
$3,000,000 – Total Project Cost
Participants:
North Dakota Industrial Commission, North Dakota Department of Commerce Center of Excellence
Program, Blaise Energy, and The University of North Dakota Institute for Energy Studies.
PROJECT DESCRIPTION
Objectives:
The proposed effort will demonstrate the feasibility of a scalable polygeneration system that
utilizes flare gas to produce electricity and methanol. A portion of the proposed effort is support Blaise
Energy and the ND Department of Commerce Center of Research Center of Excellence Program (CORE).
This proposal requests additional support of the NDIC Oil and Gas Program.
The key objectives of the work are:
1. To design and construct a small scale polygeneration system that will be used to convert up to
2,000,000 cubic feet per day of natural gas to electricity and methanol.
2. To test the system at a Blaise Energy site for up to 18 months. The tests will address the key issues:
What is the impact of changing gas flow rates on the production of electricity and methanol?
What is the impact of changing gas composition on the system performance?
What is the impact of other components in gas, such as abundance of liquids in gas supplies,
on the ability to produce products?
What is the impact of low H2S concentrations in the gas polishing system and to catalyst life?
What is the appropriate sizing of the electricity generator and methanol system to optimize
the production of product streams to meet changing market needs and to maximize profit?
3. To determine overall system efficiency and cost of production of electricity and methanol.
4. To determine key operational and design parameters to provide accurate cost information for a
commercial system.
5. To maintain contact with potential commercial sponsors, reporting progress and opportunities for the
polygeneration system in their applications. This effort will be continued throughout the duration of
the project.
6. To educate the next generation of energy experts by having graduate and undergraduate student
participate in the demonstration and commercialization efforts.
Methodology:
UND proposes to work with project sponsors to demonstrate and commercialize a polygeneration
system that integrates several technologies and has the potential to produce four product streams that
include electricity, methanol, carbon dioxide (enhanced methanol production and enhanced oil recovery
(EOR)), and C-3+ liquids. The overall system is illustrated in Figure 1. The Phase I effort will focus on
identifying an optimum methanol production technology and integrating with the electricity generation
system, followed by a field test of the integrated system. UND and partner, Blaise Energy, will work
together to demonstrate and commercialize the system. Blaise Energy is currently utilizing gas to produce
electricity using a combustion system. Blaise Energy is also working on a system to separate the liquids
from the gas to improve the operability of the combustion system. A gas to liquids system will be used to
convert the methane rich produced gas to methanol and possibly other liquids. A Blaise Energy
Partner/Investor is interested in installing the integrated system at numerous sites within the Williston
Basin.
In order to complete the objectives and above methodology, the following tasks are proposed.
Task 1: Project Management and Planning
The purpose of this task is coordination and planning of the project with the NDIC Oil and Gas Program
and project participants. This task will be performed over the course of the project.
Figure 1. Overall concept of the polygeneration system to produce electricity, methanol, CO2 and C-3+
Liquids.
Task 2: Integrated Concept Design
The integrated concept design of the polygeneration technology will be developed through discussion
with project sponsors, review of technical literature, and commercial application of technology
components. Sponsor input will provide information on following:
Optimum size of the system based on the quantity of produced gas to be converted,
Composition range of the produced gas (range and a design fuel composition),
Scalability of the system
Range of operating conditions – power generation capacity and methanol generation capacity,
Identification of the gas to liquid vendor systems to be analyzed (catalytic, partial oxidation,
combined) in Task 3.
Emissions control requirements
Task 3: Initial Technology and Economic Feasibility analysis
The overall goal of this task is to conduct a technology and economic feasibility study of the Phase I
polygeneration concept as defined in Task 2. The proposed polygeneration concept is anticipated to be
comprised of a gas liquid separator, gas-fired combustion generator, steam generator, methane to
methanol system, and auxiliary equipment (storage tanks, gas cleanup, emission controls). Process flow
diagrams for the polygeneration process will be developed and major heat and material balances will be
generated using ASPEN Plus simulation software. A qualified A&E firm will be identified and hired to
support UND and Blaise Energy in the feasibility analysis. The A&E firm will utilize and refine process
flow diagrams and heat and material balance streams from UND to reflect the additional details and
adjustments required to accurately represent a full range of operating conditions. The outputs of the
refined study will be:
General process flow diagram identifying all major process equipment for the combined
electricity and methanol generation system.
Material and energy balances around the combined power and methanol generation system
and around all major pieces of equipment (heating/cooling duties and power requirements).
Equipment definition list with associated vendor and/or in-house fabrication quotations.
Estimation of plant performance based on a developed auxiliary load list obtained from
equipment quotations or through an in-house database.
A conceptual site plan detailing the arrangement of the polygeneration system in an existing
Blaise Energy Investor facility.
Development of feasibility level capital cost estimates for the Phase I polygeneration system.
This capital cost estimate will indicate the all-in costs for the facility including infrastructure
from the site fence line, interconnection to existing facilities, equipment costs, construction
costs, construction indirects, and owner’s costs.
A definition of consumable quantities and costs inclusive of waste streams to estimate the
operating and maintenance costs (both fixed and variable).
Estimate of the cost methanol and electricity produced using the economic criteria provided
by sponsors for all cases.
A quantification and definition of the air and water emissions and solid wastes produced by
the polygeneration system including offsite disposal options.
A definition of toxicological effects of substances used in the process and associated
regulatory requirements.
An evaluation of the ability to reduce or mitigate the production of potentially hazardous
materials.
Identification of precautions for safe handling of fuels produced and associated waste
streams.
The above information will be used to determine process and cost advantages of the proposed
technology as well as the key success drivers and risk factors. This will provide items to focus and
address for the remainder of the project.
Task 4: Prototype Process Design
The purpose of this task is to design a prototype polygeneration system. The system will be built
using design parameters generated in Tasks 2 and 3.
Subtask 4.1 - Design of Gas Separation and Electrical Generation System: The design of the
gas separation and electrical generation system will be conducted by Blaise Energy and designed
to provide gas, electricity, and steam to the gas to liquids train. The system will be designed to
accept up to 2,000,000 cubic feet per day (CFD) of produced gas from a Blaise Energy Investor
gas gathering location. If necessary, reductions in the levels of H2S will be conducted using a
ZnO sulfur capture system to meet catalyst specifications. The resulting cleaned gas will be piped
to both the generator and gas to liquids unit.
Subtask 4.2 - Design of Gas-to-Liquids System: The GTL system will be based on results of
Task 3. A system will be selected and the design will be based on the vendor. It is anticipated that
the unit will be mounted on a 40ft flatbed trailer. The system will be designed to allow for easy
integration with the gas separation and electrical generation system. Storage tanks for products
will be sized and piping and associated equipment will be designed for transfer to a tanker truck
for delivery to market. The system will be designed to include the ability to sample liquid and gas
phase material within the system during operation.
Subtask 4.3 – Design of On-line Gas and Liquids Sampling and Analysis System: State of
the art analytical systems will be installed to provide real time analysis of process streams in the
system. These systems will include laser gas analyzers, gas chromatographs, and process mass
spectrometers. Analyzers will also be used to monitor any emissions, if present, from the overall
system.
Task 5: Prototype Process Procurement and Construction
Subtask 5.1 - Construction of polygeneration system: This sub-task will involve sourcing
materials to construct the gas separation and electricity generator, gas to liquids system, and
associated piping and equipment. Tie-ins to the produced gas will also be included in this period.
Other equipment to be included in the installation include flue gas monitors (CO2 and SO2),
temperature sensors, pressure gauges, and mass flow meters for use to monitor system
performance. The unit will be constructed by Blaise Energy, GTL equipment vendor, and UND
Institute for Energy Studies engineers.
Subtask 5.2 - Installation and integration of system: Installation at the Blaise Energy Investor
site will be performed by a site contractor with supervision from UND. Instrumentation will be
installed to monitor process conditions of the unit and also simultaneously obtain information on
well production.
Subtask 5.3 -Shakedown testing: This sub-task will involve system start-up and shakedown
testing. The shake-down testing will be conducted in three separate phases.
1. Phase 1 will be geared toward testing the gas and liquid sampling system. The system will be
subjected to varying levels of gas flow rates, electrical generation rates and methanol
production rates. Apart from getting baseline operating data, this will allow the operators to
get trained in using the system.
2. Phase 2 will be geared toward testing the gas separation and clean up component of the
system. Operators will be trained on the system. The capability to recycle gas cleanup sorbent
to the adsorber will be tested and ability to measure/deduce recycle flow rates developed.
3. Phase 3 will target shakedown of the integrated electrical and steam generation system with
the gas to liquids unit. This is one of critical steps for the project. The generator will be tested
for operation under different operating conditions. The gas and liquid feed system will also be
tested to ensure that it can be fed to and removed from the system in a reliable and
measurable manner.
Task 6: Initial Operation of Prototype in Laboratory
A laboratory at UND will be developed to allow for continuous monitoring of the operation of the
prototype system in the field. The laboratory will be equipped with the ability to have access to and
ability to control selected system control features. Samples of gas and liquids will be characterized at
UND.
Task 7: Field testing of Prototype
The testing will consist of longer term testing of the integration of the operation of the gas
separation, electrical and steam generation, and the gas to liquid system under vary conditions for
electricity and methanol generation. It is anticipated that this testing will be conducted over an 18 month
time period to also examine the effects of seasonal temperature changes.
Task 8: Final Process Assessment (Technical and Economic Feasibility) and Recommendation
The technology and economic feasibility study conducted in task 3 will be updated. From the
work performed in Tasks 5, 6, and 7, we will incorporate the data into a detailed and evaluation of the
technical and economic feasibility of the integrated process. This effort will be on-going throughout the
project and a recommendation will be made relative to the installation of additional systems at other well
sites. As part of the final report for the project an updated technology and economic feasibility study will
be conducted and a final report will be issued that details the proposed polygeneration system.
Anticipated Results:
The proposed work will produce many results including a working polygeneration pilot-scale
system capable of converting up to 2 million cubic feet of gas a day into methanol. The system will also
generate electricity that can be used to help power the system as well as supplemental power for the well
site. The polygeneration will provide the following results:
Reduce natural gas flaring in North Dakota
Improve local air quality through the reduction of gas flaring
Create new jobs in North Dakota
Advance North Dakota as a leader in green well completion technologies
Other results of the project will be quarterly reports and a final report that will include a detailed
explanation and supporting experimental, and pilot-scale testing results of the polygeneration system. The
report will also identify specific strategies to utilize flare gas and convers the gas into an economically
beneficial product with emission and environmental benefits. Further, the quarterly reports and the final
report will be provided for comments and revision.
Facilities and Resources:
The pilot system will be a skid-mounted mobile system capable of being transported to different
locations. The system will contain all necessary components to take the flare gas and convert it to
methanol and electricity.
The initial lab-scale testing will be conducted at UND. UND has placed great emphasis on
research and development programs. During the past several decades UND has made a strong
commitment toward acquiring the resources and tools to conduct basic and applied research in a wide
variety of disciplines. At the same time, UND has also been working to improve curricula, promote best
practices, advance knowledge and professional development in fields of specialization, and encourage
scholarly interaction and accessibility among faculty and students. The continued growth in research and
development has resulted in a classification of UND as a high research activity university
The UND department of Chemical Engineering has a 19kW pilot scale entrained flow
combustion system capable of firing coal and biomass, a 5 kW natural gas fired combustor, and a 10 kW
gasification system. The combustion systems can be integrated with a baghouse for particulate control
and a wet scrubber system for sulfur control. The flue gas from these systems can be used to study CO2
capture. UND currently uses a 1 kg fixed bed reactor system to capture CO2 using solid sorbents. The
reactor system is equipped with a steam generator for sorbent regeneration. This reactor system has been
used to test the adsorption and regeneration behavior of several solid sorbents. These conversion systems
are all equipped with the following flue gas analyzers that can continuously sample flue gas:
Non-dispersive Infrared Absorption Spectroscopy for SO2 and CO/CO2 analysis using the Teledyne
Analytical Instrument-IR 7000 and the Liston Scientific Enviromax respectively.
Paramagnetic type O2 Analyzer - using the Teledyne analytical instrument-3000M series.
A Datatest Model DT 5000 NOx analyzer that utilizes chemiluminescence technology for precise
continuous measurement of the NOx.
Two Horriba five gas analyzers capable of measuring NOx, SOx, CO, O2 and CO2.
UND Chemical Engineering also has a simultaneous thermogravimetric/differential scanning
calorimeter (TGA/DSC). Simultaneous measures of weight loss or gain and exothermic and endothermic
reactions/transformations associated with decomposition and adsorption processes can made as a function
of temperature and atmosphere. The UND Engineering Department also has access to Aspen Plus process
modeling software which will be used in the proposed research.
Techniques to Be Used, Their Availability and Capability:
The electricity generators will utilize existing and “off the shelf” equipment from vendors already
in the industry. The gas cleaning and condition equipment will utilize proven methods and systems such
as membranes and filters. These methods will ensure that the constructed system is able to be skid
mounted and integrated into the overall pilot system design. The components are readily available since
they are “off the shelf” equipment.
The specific methanol technology to be used will be identified during the course of the project.
The technologies being considered are all technically sound and proven at large scale commercial scales.
The technologies are readily available and capable of being integrated into a skid mounted small-scale
systems.
Environmental and Economic Impacts while Project is Underway:
If successful, the project will have positive environmental and economic impacts during and beyond the
project timeline. The proposed work will reduce flare gas emissions which will reduce local CO2
emissions and improve local air quality through the reduction in emissions associated with flaring. In
addition, the project will produce a methanol commodity that can be sold to a wide variety of industrial
companies that utilize methanol.
Ultimate Technological and Economic Impacts:
The proposed project will identify a technology solution to help reduce flare emissions in the Bakken
region while at the same time providing an increased revenue supply. As of April 2012, approximately
221 million cubic feet of gas are flared each day which corresponds to 6.6 billion cubic feet per month. If
this wasted fuel supply is converted to methanol, this represents a potential methanol market of $105
million a month at a methanol price of $1.32 per gallon. The electricity produced will help reduce
associated power costs at the well site, and is also classified as a “recycled” energy in North Dakota. It is
also anticipated that long term deployment and commercialization of the polygeneration system will lead
to additional jobs in North Dakota through the design, fabrication, and operation of commercial systems.
Why the Project is Needed:
Annually, 150 billion cubic meters of natural gas is flared or vented on a global level, releasing
400 million tons of carbon dioxide emissions. Approximately 5.5 Billion cubic feet, or almost one third of
the gas produced in North Dakota, is flared each month because of the lack of infrastructure to capture the
gas or otherwise monetize it. This represents an estimated 1900 wells flaring in North Dakota alone, with
over $11 million in lost revenue (at $2/MCF) each month. Compounding the effects of lost revenue is the
waste of natural resources emitting as much CO2 into the atmosphere as approximately 350,000 cars and
an estimated 167,000 tons of CO2 each month. Compounding the emissions, the additional electrical load
to service the new wells is putting a strain on the local electrical grid. In some areas, rural electrical
utilities are running out of capacity to keep up with the load and are struggling to add “peaking” plants
and high capacity lines to bring in additional power from coal plants. Several local coops are also
hundreds of wells behind for grid connection. The 200+ additional new wells being drilled each month
are outpacing gas and electric infrastructure and creating increased demand for site and grid power.
STANDARDS OF SUCCESS
Project success will be demonstrated through a successful feasibility, design, construction, and
demonstration of the polygeneration system. The polygeneration system will be deemed successful upon
demonstrated production of electricity and methanol from natural gas at a well site. The completion of the
project report and presentation of the results will also serve as key standards for the proposed project.
The key industries in North Dakota that will benefit for the results of this project are the oil and gas
industry as well as North Dakota itself, and the local communities in the Williston Basin. The
development and implementation of the polygeneration system will turn a waste source into a valuable
product that can be sold for profit. The polygeneration system also will help the oil and gas companies
meet pending flare reduction policies and adopt greener well site completion practices. North Dakota and
local communities will benefit from the increase in jobs associated with the design, construction,
installation, and operation/maintenance of the polygeneration systems as well as benefit from improved
air quality due to the decrease in flare gas emissions.
BACKGROUND/QUALIFICIATIONS
The Center of Excellence for Gas Utilization at UND is aimed at developing commercial technologies to
improve the utilization gases produced from industrial sources. These sources include gas produced from
petroleum wells and from combustion and gasification sources. The technologies include gas cleanup
(removal of impurities), gas separation, and gas conversion. Currently funded programs within the Center
for Gas Utilization (CGU) include: $3.7 million effort to separate carbon dioxide from combustion flue
gas streams funded by the U.S. Department of Energy and Industry (NDIC, ALLETE, BNI, and
SaskPower), $860,000 effort to remove mercury from flue gas from taconite production plants funded by
the U.S. Environmental Protection Agency, Minnesota Department of Natural Resources, and Taconite
industry; and $462,000 effort to evaluate syngas production using underground lignite gasification
approved for funding from the North Dakota Industrial Commission and Industry (Great Northern
Properties).
The CGU proposes to expand its efforts to demonstrate and commercialize an integrated system that will
convert natural gas currently being flared to methanol, electricity, and other liquid fuels. Annually, 150
billion cubic meters of natural gas is flared or vented on a global level, releasing 400 million tons of
carbon dioxide emissions. Approximately 5.5 Billion cubic feet, or almost one third of the gas produced
in North Dakota, is flared each month because of the lack of infrastructure to capture the gas or otherwise
monetize it. This represents an estimated 1900 wells flaring in North Dakota alone, with over $11 million
in lost revenue (at $2/MCF) each month. Compounding the effects of lost revenue is the waste of natural
resources emitting as much CO2 into the atmosphere as approximately 350,000 cars and an estimated
167,000 tons of CO2 each month. Compounding the emissions, the additional electrical load to service the
new wells is putting a strain on the local electrical grid. In some areas, rural electrical utilities are running
out of capacity to keep up with the load and are struggling to add “peaking” plants and high capacity lines
to bring in additional power from coal plants. Several local coops are also hundreds of wells behind for
grid connection. The 200+ additional new wells being drilled each month are outpacing gas and electric
infrastructure and creating increased demand for site and grid power.
There are several technologies that are emerging as having potential to convert natural gas to methanol
economically at the scale appropriate for small scale stranded gas sites. The technologies include
catalytic, non-catalytic partial oxidation, or combined partial oxidation-catalytic processes (Aasberg-
Petersen and others, 2011, Pawlak and others, 2012, and Wender, 1996). Some of the processes involve
stream reforming natural gas to a synthesis gas (H2 and CO) followed by a catalytic process to produce
methanol. Converting synthesis gas to methanol has been used extensively in converted coal gasification
derived syngas to methanol and other fuels and chemicals (Benson and Sondreal, 2010). The reaction is
exothermic, and the heat of reaction can be used to heat the process. The conditions used to produce
methanol are about 5 MPa (50 atmospheres) and a temperature of 270°C (518°F). The selectivity of the
synthesis is very high with a >99.5% conversion to methanol from syngas possible. The processes
involved in converting synthesis gas to methanol and other chemicals and fuels are illustrated in Figure 2.
Methanol is currently being used to produce gasoline in a methanol-to-gasoline complex in New Zealand
as well as other locations in the world. Methanol is converted to gasoline by the Mobil process, where the
methanol is first dehydrated and converted to produce DME:
2CH3OH → CH3OCH3 + H2O
A zeolite catalyst, ZSM-5, is then used to give a gasoline with 80% C5 + hydrocarbon products.
Figure 2. Synthesis pathways for the production of selected fuels from syngas (MTBE = methyl tertiary-
butyl ether, BTX = benzene, toluene, xylene) (Wender, 1996).
References
Aasberg-Petersen,K., I. Dybkjær, C.V. Ovesen, N.C. Schjødt, J. Sehested, S.G. Thomsen, Natural gas to
synthesis gas - Catalysts and catalytic processes, Journal of Natural Gas Science and Engineering 3
(2011) 423-459.
Benson, S.A., and E.A. Sondreal, Gasification of Lignites of North America, Lignite Energy Council,
2010.
Pawlak, N., V. I. Vedeneev, and A.L. Tots, Gas Technologies LLC, US Patent 8,202,916, June 19, 2012.
Wender, I., Reactions of Synthesis gas, Fuel Processing Technology 48 (I 996) 189-297.
Qualifications
A qualified team has been put together to manage and conduct the proposed work. Blaise Energy
has had extensive experience with converting flare gas into electricity and has received NDIC support on
previous and current projects. Below are short resumes of the key participants in the proposed project.
Project Manager – Dr. Steven A. Benson
Dr. Steve Benson, Chair of Petroleum Engineering, Director Institute for Energy Studies and Professor of
Chemical Engineering in the College of Engineering and Mines at the University of North Dakota, has
more than 25 years of experience in fuel and product production and the behavior of fuels in energy
conversion systems. Steve’s principal areas of interest and expertise include: 1) educating the next
generation of energy experts; and 2) performing research and developing technologies to improve the
performance of fuel recovery/development, energy conversion, carbon product manufacturing, and
pollution control systems. Prior to his current position, Steve held positions of Senior Research Manager
and Associate Director for Research at the Energy & Environmental Research Center. He was
responsible for leading a group of 30 highly specialized chemical, mechanical, geological, and civil
engineers along with physical and chemical scientists whose aim was to solve problems associated with
the performance and reliability of combustion and gasification systems for clients worldwide. Steve has a
B.S. in Chemistry from Minnesota State University (Moorhead) and a Ph.D. in Fuel Science from the
Pennsylvania State University. He has authored and co-authored over 200 publications.
Co-Project Manager – Dr. Nicholas Lentz
Dr. Nicholas Lentz, Associate Director for Energy Technology Applications Institute for Energy Studies,
has more than 5 years of experience in the identification and development of new analytical methods for
the advancement of elemental and small molecule analysis in a wide range of matrices including coal and
coal by-products, CO2 capture solutions, oil and gas fuels; analysis for combustion flue gas, syngas, fuel
oil, and biowaste; and experimental design and analysis related to control technologies to remove mercury
and other elements from combustion and gasification systems. Prior to his current position, Dr. Lentz was
a Center for Air Toxic Metals (CATM) Program Area Manager and Research Scientist at the Energy &
Environmental Research Center where he was responsible for managing a portfolio of measurement based
research projects in the Analytical Measurement Area of CATM as well as experimental design and
analysis related control technologies to remove mercury, trace metals, and halogens from combustion and
gasification systems. Dr. Lentz has a B.S. in Chemistry from Bemidji State University and Ph.D. in
Analytical Chemistry from Iowa State University. He has authored and co-authored numerous
publications.
Project Engineer – Mr. Charles Thumbi
Charles Thumbi, Research Engineer within the Institute of Energy Studies at the University of North
Dakota has 5 years of experience in the areas of process modeling, process design and development, and
performing R&D on energy conversion systems as well as emission control technologies. Mr. Thumbi’s
areas of interest and expertise include: 1) Process design; and 2) Process and product development
through collaborative research. Prior to his current position, Charles was a process engineer with Arkema
Inc. where he was responsible for process optimization and debottlenecking to improve performance and
reliability, process development and product design, capital project management, implementation of
energy and environmental control strategies and plans in energy savings and pollution prevention efforts,
as well as participation in safety related activities related to manufacturing processes. Charles has a BSc.
in Chemical Engineering from The University of Minnesota as well as a MSc in Chemical Engineering
from the University of North Dakota.
Project Engineer – Mr. Daniel Laudal
Dan Laudal is a Research Engineer for the Institute for Energy Studies at the University of North Dakota.
Mr. Laudal received his B.S. in Chemical Engineering from UND in 2006. His principal areas of
expertise include design and operation of bench and pilot scale equipment for the conversion of various
types of fuels as well as gas cleanup technologies including warm-gas-cleanup and carbon capture. Prior
to his position at the IES, Mr. Laudal spent 4 years as a Research Engineer at the Energy and
Environmental Research Center at UND where his work focused on design and operation of advanced
process systems including several types of gasification and combustion systems. Mr. Laudal also spent 2
years in Williston, ND as a Well Services Field Engineer for Schlumberger Oil Field Services, where he
focused on well cementing operations in the Bakken Formation.
Project Engineer – Mr. Harry Feilen
Harry Feilen, Engineer, Institute for Energy Studies. Mr. Feilen has more than 20 years of experience
welding, fabricating, and building everything for lab scale size projects to full size buildings. Mr.
Feilen’s principal areas of interest include 1) developing himself and the next generation to the level of
energy experts, 2) performing research and developing technologies to improve the performance of fuel
recovery/development, energy conversion, carbon product manufacturing, and pollution control systems,
and 3) advancing his education to the next level. Prior to his current position, Mr. Feilen was a student
employee for the Chemical Engineering Department at UND where he applied his experience and
knowledge to facilitate the building, operating, and improving of the experiments for several graduate
students. Mr. Feilen also was a T.A. for the Chemistry Department at UND and taught Chemistry 121
Lab. Mr. Feilen is a former United States Marine (8 years of active duty) and a Gulf War Veteran. He has
a B.S. in Management from the University of Mary.
MANAGEMENT
The overall project management structure is illustrated in Figure 3. Dr. Benson and Dr. Lentz will
oversee the project and work with project sponsors to plan and conduct the project to meet all milestones
and scheduled completion dates. Project meetings and conference calls will be held on a weekly basis to
review project timelines, upcoming milestones/deliverables, costs and challenges associated with the
completion of the projects. Microsoft Project management tools will be utilized. Project review meetings
with sponsors will also be held on a quarterly basis to ensure communication and discussion of
accomplishments, plans and management of project risks. Meetings with industry co-sponsors will also
occur to update them on technical progress and seek input on commercial scale-up and applicability. The
milestones for the project are listed in Table 1. Each milestone will be evaluated during the course of the
project.
Figure 3. Project Management Structure.
Table 1. Milestones and verification methods.
TIMETABLE
A schedule for the polygeneration project is listed in Table 2. The project has a three year duration with
construction of the pilot-scale system commencing during the first quarter of 2013. Additional projects
will be conducted and identified as they become available/identified and will be added to the CGU
research portfolio.
Table 2. Gantt Chart for the Polygeneration Project
BUDGET
Task Title/Description
Planned
Completion Date
Actual
Completion
Date Verification Method
1 Submit Project Management Plan 9/1/2012 Project Management Plan file
1 Complete Kick-off Meeting 9/15/2012 Briefing Document & Meeting Results
2 Integrated Concept Design
11/29/2012
Topical Report file
3 Complete Initial Technical and
Economic Feasibility Study 11/30/2012 Topical Report file
4 Prototype Process Design - Down-select optimum technology
1/31/2013 Results reported in the quarterly report
5 Prototype Process Procurement and
Construction – Complete construction 7/31/2013 Results reported in the quarterly report
6 Initial Operation of Prototype in Laboratory
8/31/2013 Results reported in the quarterly report
7 Field testing Prototype 12/31/2014 Briefing Document &Meeting Results
8 Final Process Assessment 8/31/15 Final Report
1 Quarterly/Annual report Each quarter/year Quarterly/Annual Report files
The project budget is summarized in Table 3. The project currently has cost share support from Blaise
Energy as summarized in the attached letter of support. We also have support from the Department of
Commerce for co-funding for the project shown in the ND COE column.
Table 3. Project budget summary.
CONFIDENTIAL INFORMATION
No confidential information is present in the proposal.
PATENTS/RIGHTS TO TECHNICAL DATA
Blaise Energy has patents pending on equipment configurations, processes, and methods for the
transformation of flared natural gas into electricity.
STATUS OF ONGOING PROJECTS (IF ANY)
The North Dakota Industrial Commission is currently co-funding along with the US DOE, ALLETE, BNI
and SaskPower a CO2 separation and capture project called CACHYSTM
. The three year project is at the
end of the first year and the project has met or exceeded expectations.
The ND Industrial Commission is co-funding a project along with Great Northern Properties to examine
the feasibility of Underground Coal Gasification for deep lignite seams. The two year project is in the
process of being initiated.
The ND Industrial Commission is co-funding a project with Blaise Energy to determine the economic
viability of electrical generation into the grid from flare gas.
Affidavit of Tax Liability
The University of North Dakota does not have any outstanding tax liabilities with the State of North
Dakota.
Project Associated Expense
NDIC's
Share ND COE
Other
Project
Sponsor's
Other
Project
Sponsor's Total Project
Salary 178,573 180,468 359,041
Fringe Benefits 63,969 59,903 123,872
Travel 9,000 12,500 21,500
Phone 300 300 600
Postage 300 300 600
Office Supplies 1,200 1,350 2,550
Copies/Duplicating 600 679 1,279
Natural Gas/Site Support 0 0 500,000 500,000
Supplies 5,000 37,500 42,500
Operating Fees & Services 7,000 7,000 14,000
Subcontracts 260,000 260,000
Equipment 333,000 1,240,000 1,573,000
F&A (overhead) 101,058 101,058
Total 700,000 300,000 1,500,000 500,000 3,000,000
Budget Summary
Salaries-Faculty: Salary of $58,560 is included for UND faculty working on research as described in the
scope of work. A 5% annual increase in base salary is included in the salary total over the three year
project. The funds requested may include summer salaries and/or academic year salaries.
Salaries-Regular: Salary of $114,665 is included for UND administrative staff, research engineers, or
engineer. A 5% annual increase in base salary is included in the salary total over the three year project.
UND administrative staff will assist in setting up travel, manage the accounts and maintain the budget.
Two research engineers and an engineer will work on research and related tasks described in the scope of
work.
Salaries-Other: Salary of $5,348 is included for Student Lab Assistant to assist and gain experience
working on a research project. A 5% annual increase in base salary is included in the salary total over
the three year project.
Fringe Benefits: are estimated at 30% of salary of UND faculty, 40% for UND staff, and 10% for other
employees. Amounts shown for fringes are estimates determined by historical data and provided for
proposal evaluation purposes only. Actual fringe benefit costs will be charged to the grant according to
each employee’s actual benefits.
Travel: totaling $9,000 will include expenses to travel on project related trips including meeting with the
NDIC Oil and Gas Research Division, travel to meet with Blaise Energy-cost share partner, travel to the
Western part of ND to conduct research and testing as describe in the scope.
Office Supplies, Phone, Postage, Duplicating: totaling $2,400 are included to be used over the course of
the project and may include items such as pens, pencils, paper clips, printer paper and toner cartridges,
notebooks, post-it notes, computer discs, presentation materials, duplicating charges, and other
miscellaneous items required to complete the project.
Lab Supplies/Operating Fees and Services: totaling $12,000 is included for related supplies required to
complete the scope of work and may include cost for safety equipment required to perform the scope of
work as described in the proposal.
Equipment: totaling $1,233,000 is included for the purchase of major equipment related to this project.
Indirect Costs: The indirect cost rate of 38% included in this proposal is the federally approved rate for
the University of North Dakota. Indirect costs are calculated based on the Modified Total Direct Costs
(MTDC), defined as the Total Direct Costs of the project less individual items of equipment greater than
$5000, subcontracts in excess of the first $25,000 for each award, and tuition remission. Indirect costs are
an unallowable expense on North Dakota Center of Excellence research dollars.
