Enhance Energy - The Alberta Carbon Trunk Line – Susan Cole - Global CCS Institute – Nov 2011...

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The World’s Largest CCS and Enhanced Oil Recovery project

Creation of new infrastructure for new industry in Alberta

And sustainable development of Alberta’s oilsands

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Enhance’s Vision

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Alberta’s Resources

Oil sands development Second largest proven oil reserves after Saudi Arabia

1 billion barrels of light oil recoverable using EOR

CO2 from oil sands enables EOR and produces fuels with the lowest carbon footprint in the world

Alberta Gas Trunk Line (“AGTL”) 1954 Alberta Gas Trunk Line

Government of Alberta under Premier Ernest Manning

Single gathering system made sense

Maintained Alberta’s jurisdiction over its resources

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Courtesy of TransCanada Pipelines

AGTL

Impact on Alberta: An Alberta petrochemical industry -$13B

products annually Natural gas market and industry Royalties, taxes and jobs $5-8 Billion/yr

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Government Support for the ACTL

Government of Alberta investment of

$495 Million in a $1.2B project Government cofunding will help us build

infrastructure for the future Funding is provided when project

milestones are achieved 40% during construction over next 3 years

20% at commercial operation

40% over 10 years tied to injection of CO2

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Alberta Carbon Trunkline

Building Alberta’s First CO2 Trunk Line 240 km 16” diameter (Phase 1) Capacity of 40,000 tonnes per day

Landowners have been extremely supportive

ERCB approval received

Construction start 2012

Operational early 2014

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U.S. Experience Approximately 100 CO2 EOR projects in North

America

Started in the 1970 - now over 3600 miles of CO2 pipelines

600 million tonnes of CO2 injected

51 million tonnes of CO2 move every year

Oil production from CO2 EOR is currently 260,000Bpd

• Great Plains• Coal Synfuels

• Plant• LaBarge

• Gas Plant• Gas

Plant

• Ethanol Plant

• Ammonia / Fertilizer

• Plant

• Jackson Dome

• McElmo Dome /• Doe Cyn.

• Sheep Mtn.

• Bravo• Dome

• Gas Plan

ts• Pet. Coke to

• Ammonia Plant (planned)

• CO2 Pipeline• Planned CO2 Pipeline

• Potential Natural CO2 Source• Natural CO2 Source• Industrial CO2 Source

• CO2 Project

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ACTL Expansion

1 billion barrels of light oil

2 billion tonnes of CO2 stored

Laterals have been designed to allow for multiple entry points and multiple exits

Potential suppliers and CO2

emitters : Coal power Upgrading/refining Petrochemicals Natural gas processing

Enhance’s Current CO2 Suppliers

Agrium Redwater facility 700-1600T/d

Northwest Redwater Refinery 3,500-4,200T/d

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Agrium Facility

Agrium CO2 Recovery Facility

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Detailed engineering is complete and procurement underway

ACRF Equipment

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Siemens 6 stage centrifugal compressor Electric drive 4800hp

Handling wet CO2

Dehydration package, separators, condensors also purchased

Engineers: Caber Engineering

North West Redwater Refinery North West Redwater Refinery Phase 1 is a $5Billion 50/50 joint

venture between North West Upgrading and CNRL

Processing 37,500bbls Crown bitumen and 12,500bbls CNRL bitumen

Produces refined products such as Ultra Low Sulphur diesel and gasoline

Using Lurgi gasifier to produce pure dry CO2 (no coking)

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Soot Filter Cake

H2S

Pure CO2

Pure Hydrogen

Feed

OxygenSteam

Gasifier Shift Reactors

CO to CO2

Hydrogen Purification

Rectisol

North West Redwater Refinery Long lead items have been procured 3 phases have been approved by ERCB 8000 jobs during construction of each phase

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NW Redwater CO2 Capture

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FEED study complete Booster compression on

site with final compression adjacent

Pure dry CO2

0-2600psig

ACTL Pipe

20 km 12” pipe, 220 km 16” pipe

Carbon Steel

Sweet, dry operation at 2600psig

Construction slated for summer 2013

Engineers: SAW Engineering

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EOR Opportunity for Alberta

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Safe Secure Storage

Oil and gas reservoirs have been around for a long time

Many of the best reservoirs for EOR are Devonian

400 million years of safe, secure storage of oil and gas

Partnered with AITF to formalize MMV plan

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Green Jobs

CERI Study of ACTL (excl NWR)

How far can you drive before emitting 1 Tonne of CO2?

How Far Can You Drive and Emit 1 Tonne CO2?

How far can you drive before emitting 1 Tonne of CO2?

How Far Can You Drive and Emit 1 Tonne CO2?

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The Impact of the ACTL

Establishes new industries in Alberta Supports future development of the

oilsands Produces fuels with the lowest carbon

footprint in the world Thousands of permanent jobs Substantial revenues from EOR

Return to Alberta in the form of royalties and taxes

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The Alberta Carbon Trunk Line

Enhance Energy Inc.www.enhanceenergy.com

Doing it now