Using Nuclear Heat for In-Situ Recovery of Unconventional ... · Using Nuclear Heat for In-Situ Recovery of Unconventional Hydrocarbons: A Case for the High Temperature Gas Reactor

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Using Nuclear Heat for In-Situ Recovery of Unconventional Hydrocarbons: A Case for the High Temperature Gas Reactor (HTGR)

Joseph D. Smith, PhD Advanced Process & Decision Systems Idaho National Laboratory

October 18-22, 2010 30th Oil Shale Symposium Colorado School of Mines Golden, Colorado

Presentation Overview

•  Background •  Project Purpose •  HTGR Integration of SAGD Process

–  Process modeling –  Economic modeling

•  Conclusions •  Future work

Hybrid Energy Systems for Unconventional Hydrocarbon Recovery

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U.S. Energy Statistics

General Statistics •  4.6% of the world’s population •  21.1% of the world’s energy

consumption –  15.1% domestically supplied

•  Petroleum supplies 37% of U.S. energy consumption

–  71% is used in the transportation sector

•  Transportation accounts for 28% of U.S. energy demand

U.S. Oil Statistics •  Consumption of 7.1 billion barrels,

2008 –  4.7 billion barrels imported, 66.3%

•  U.S. oil productivity –  Peaking in 1972 at 18.6 barrels/day

per well –  10.9 barrels/day per well in 2000

•  An alternative technology is required for liquid transportation fuels to increase U.S. energy security

The steam assisted gravity drainage (SAGD) and oil shale recovery processes produces heavy hydrocarbon products, which can be

refined into higher value petroleum products.


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Background/Intro Domestic Shale offers Security Western Oil Shale deposits account for 2 trillion barrel reserve

Most concentrated in world Mahogany Zone >100 ft thick

May produce 30 gal kerogen - derived SCO/ton shale rock But…requires lots of Energy and Water and generates GHGs

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Background/Intro Heat for Processing

Mining Retort Upgrading Oil Shale Refinery

Surface Processing

Drilling Heating Upgrading Oil Shale Refinery

In-situ Processing

Processing requires lots of energy (fossil fuels, HTGR) to extract crude and upgrade it to produce a liquid fuel

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Q


Drawbacks of Conventional In-Situ Hydrocarbon Recovery

•  Returns are heavily dependent upon volatile crude market and natural gas price

•  Heat produced through natural gas combustion

•  Significant production of greenhouse gases

Solution: Implement a high temperature gas reactor (HTGR) with the conventional process to eliminate natural gas usage and minimize CO2 emissions.


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HTGR Layout

Circulator

Core* 500 to

600 Mwt

Core Inlet350 to 500 °C

Core Outlet900 to 950 °C

To / From the Process Heat Applications

Reactor Island

Core Support Structure /

Outlet Plenum

Control Rods, Access Ports &

Inlet Plenum

IHX

IHX Outlet850 to 925 °C

IHX Inlet325 to 450 °C

Reactor & IHX Pressure Vessels

(primary & secondary pressures 5 to 7 MPA)

Nuclear Heat Supply SystemHelium Flow

Hot Ducts

* Core includes fuel, graphite, core structural and other ceramic components and the metallic core barrel


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HTGR Project Details •  Integrate high temperature gas reactor (HTGR) technology into the

unconventional hydrocarbon recovery processes –  SAGD process has been evaluated for bitumen production –  Oil shale evaluation is in progress

•  HTGR can produce high temperature heat, electricity, and/or hydrogen •  HTGR integration will:

–  Reduce CO2 emissions –  Extend the life of the natural resource used as feedstock –  Provide predictable availability and stable energy costs

•  Suitability of HTGR integration for the SAGD process was assessed as follows: –  Technical merit, i.e. is the process suited for integration –  Rough order of magnitude economic comparison of conventional

and HTGR- integrated bitumen selling prices


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SAGD Process Assumptions •  56,000 barrels of bitumen extracted •  80,000 barrels of dilbit produced

–  Dilbit – blend of bitumen and naphtha to make the bitumen flowable for transport

•  70% bitumen •  30% naphtha

•  Steam to oil ratio: 2.5 barrels of steam per barrel of oil –  Steam flow determine natural gas or HTGR heat consumption

•  Steam conditions: –  310°C –  10 Mpa

•  Water recovery – 85%


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In-situ Oil Shale processing using HEAT from an HTGR •  Closed HX system from HTGR to underground pipes for slow kerogen heating

to 350 - 400 °C using various heat transport media (HTMs) Issue for Modeling •  How far can HTGR Heat via HTM be economically transferred?

–  Ex-stu

Shell Process

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HTGR Outputs and Assumptions


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Process Block Flow Diagrams - SAGD

Conventional Process Nuclear Integrated Process


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Target area for HTGR integration

Process Modeling Results - SAGD

HTGR integration reduces natural gas consumption and the associated CO2 emissions.


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Economic Modeling Overview and Assumptions


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Economic Modeling Overview and Assumptions •  Calculated economic inputs:

–  Total capital investment (TCI) •  SAGD process cost based on most recent literature and vendor data •  HTGR cost estimate is in the process of being refined

–  Alberta construction adders applied to HTGR –  Annual revenues and operating costs

•  Based on the economic inputs the following indicators were calculated: –  Bitumen price for an internal rate of return (IRR) of 12% for a range of

carbon taxes: –  IRR for low, average, and high bitumen selling prices (wholesale price,

without taxes and delivery) •  Low (March 2009) - $37.82/bbl •  Average - $80.18/bbl •  High (July 2008) - $122.53/bbl


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Preliminary Economic Results - SAGD

These results are preliminary, they are for a

conservative case.

Additional refinement of the HTGR cost estimate is

currently underway.


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Results Summary HTGR in-situ unconventional hydrocarbon recovery modeling

–  Highlights differences between HTGR assisted process w/ HTGR supplying heat + power and/or hydrogen compared to a conventional industrial application using fossil fuels

•  Technical –  Greater energy efficiencies for equal product output –  Greater process product yields for equal energy input

•  ENVIRONMENTAL –  Significant reduction of GHG emissions –  Potentially less water use

•  Economic –  Significantly lower process fuel costs –  Avoidance of future carbon taxes

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Future Work

•  Refine the HTGR capital cost estimate and include in the economic model –  Consider independent owner/operator arrangements

and financing of SAGD and HTGR processes –  Work with potential end users to, modeling their specific

processes •  Perform a similar analysis for in-situ and ex-situ oil shale

extraction –  Process model with material and energy balance for

technical assessment –  Economic analysis


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Wrap up •  Current energy status

–  The U.S. imports over 65% of it’s petroleum products –  Domestic oil production peaked in 1972 –  In-situ SAGD and oil shale processes can be used to offset

imported oil (not including Canada) using feedstocks from Canada and the U.S.; however, both processes have large carbon footprints

•  Alternative solution –  Nuclear Heat (HTGR) can be integrated, via high temperature heat

•  Technical merit –  Nuclear integration is technically viable and reduces CO2

emissions •  Economic viability

–  Preliminary economic results indicate that in a carbon constrained environment, Nuclear integrated options can be competitive


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Questions


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Back-up Slides

Oil Shale Reserves equivalent to Saudi Oil Reserves Located in NW Colorado, SW Wyoming, NE Utah When heated to approximately 400°C, produces

Shale Oil Natural Gas


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Background /Introduction - Oil Shale


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-

Reactor Unit

Recuperators

Compressors

Turbine

Generator

Contaminated Oil Lube System

Un-contaminated Oil Lube System

Shut-off DiskCBCS & Buffer Circuit

CCS & Buffer Circuit

Inter-cooler

Pre-cooler

Reactor Unit

Recuperators

Compressors

Turbine

Generator

Contaminated Oil Lube System

Un-contaminated Oil Lube System

Shut-off DiskCBCS & Buffer Circuit

CCS & Buffer Circuit

Inter-cooler

Pre-cooler

PEBBLE BED MODULAR REACTOR

PBMR

ANTARES

AREVA

MODULAR HTGR CONCEPT

GENERAL ATOMICS

(FRG) THTR 1986 - 1989 (U.S.A.) FORT ST. VRAIN

1976 - 1989 PEACH BOTTOM 1 (U.S.A.)

1967 - 1974 (FRG) AVR 1967 - 1988 DRAGON

(U.K.) 1963 -1976

EXPERIMENTAL REACTORS DEMONSTRATION OF BASIC HTGR TECHNOLOGY

HTTR (Japan)

1998 - Present

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The HTGR Is Not A New Technology

Normal Operation Source Term

Fuel Safety Limits

Fuel Kernel!(UCO, UO2)!

Coated Particle!

Outer Pyrolytic Carbon!Silicon Carbide!Inner Pyrolytic Carbon!Porous Carbon Buffer!

Severe Accident Behavior

Containment And

Barriers And

Defense in Depth

Mechanistic Accident

Source Term

PARTICLES

COMPACTS

FUEL ELEMENTS


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Coated Particle Fuel Performance is at the Heart of Many of the Key Pieces of the Safety Case for the HTGR

TRISO coated particle fuel passes major milestone without a single particle failure achieving first major objective for US fuel qualification


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Fuel is the Key to the HTGR

Sample SAGD Process


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HTGR to Supply High-Temperature Helium or Steam to Retort Interval


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INL Analysis Based on Shell Process

Conclusions - SAGD •  HTGR integration lowers the carbon footprint of the SAGD

process through the incorporation of steam generated without burning fossil fuels

•  In a carbon constrained market reasonable carbon taxes can be applied which would cause the nuclear-integrated process to be competitive with the conventional process

•  The economic results are preliminary, as the HTGR capital cost estimate is being refined, but provide a rough order of magnitude comparison of conventional and HTGR- integrated SAGD process


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Using Nuclear Heat for In-Situ Recovery of Unconventional ... · Using Nuclear Heat for In-Situ Recovery of Unconventional Hydrocarbons: A Case for the High Temperature Gas Reactor