Alternative Energy

    

RFP

 

2008 05 14

Alternative Energy Solutions to Replace Natural Gas for Oil Sands Development - Phase II

Section A-D   Expression of Interest Form

REQUEST FOR PROPOSAL (RFP) AES - 2008-01

PTAC Petroleum Technology Alliance Canada invites responses to the subject RFP, as either a project supporter or project supplier. Interested parties must submit an Expression of Interest (EOI) form to PTAC. If you believe that this work could be of value to your organization and you are interesting in participating in this project, please return your EOI form no later than June 9th, 2008. Potential project suppliers must also submit, in addition to the EOI, a proposal which includes the following sections:

  • Consultant response and references (Section A)
  • A detailed proposal for the proposed study (Section B)
  • Resource Qualifications (see Attachment C)
  • A detailed cost estimate, including all applicable Federal and State/Provincial taxes (Section D)

Proposals not including all the above information will not be considered.

PTAC encourages potential project suppliers able to meet a part of the study requirements to submit proposals in collaboration with appropriate co-suppliers.

This RFP has been formulated with direction from the Alternative Energy for Oil Sands Committee, which is comprised of several oil sands producers, Natural Resources Canada, and the Alberta Energy Research Institute.

Background

Both integrated mining and thermal in-situ operations consume large quantities of natural gas in their operations. Purchased gas requirements for bitumen production and upgrading reached 155 billion cubic feet in 2003. It has been estimated that purchased gas requirements could reach 20% of total Alberta conventional gas production (2.5 trillion cubic feet) by 2020, based on current forecasts for conventional gas supply and efficiency improvements in oil sands production. In order to reduce the industry's dependence on natural gas, oil sands developers are seeking alternative sources of the necessary energy, such as the gasification of coal, coke, and asphaltenes.

Nuclear energy to has also been identified as an alternative. In 2007, PTAC initiated a phased study to evaluate the potential for using nuclear technology to produce CHP (combined heat and power) and hydrogen. The first phase focused on evaluating nuclear technologies to determine their fit with typical requirements for both thermal in-situ and mining projects with an upgrader. In addition to currently-commercial technologies, Phase 1 also included an assessment of next-generation nuclear technologies, that is, those that are near commercialization but not yet in commercial use.

PTAC and its partners are now moving to Phase 2 of this study. This RFP outlines the key objectives, scope, and deliverables for Phase 2, which focuses the application of High Temperature Gas Reactors (HTGR), in particular Pebble Bed Modular Reactors (PBMR) and General Atomics High Temperature Gas Reactors (GA-HTGR) as well as metal-cooled reactors (for example, Toshiba's 4s) to a 120k BPD thermal in-situ operation built in four 30k BPD stages.

Phase 2 will consist of two parts.

Part 1 must include
  • A definition of requirements for thermal in-situ projects
  • An assessment and verification of detailed capital cost information (materials and labour) obtained from the Nuclear Power Plant Vendors.
  • Development of output forecasts from each reactor type, including electricity and steam production.
  • An assessment of the technical, business, regulatory, security, and construction risks (high, medium, or low) of each NPP, and a discussion of ways to mitigate these risks to a low level.
  • Definition of functional and safety requirements for each NPP
  • Development of a timeline for each NPP to commercial introduction, including technology development and demonstration
  • Establishment of implementation requirements, including all required licensing, for each NPP.
  • Definition of expected reliability for each NPP (initial and long-term), including planned outages (annual) as well as the expected time between major outages, and the length of major outages
  • Establishment of the need for discussion and consultation with stakeholders (public, government and First Nations), including an assessment of potential concerns.
  • Identification of the pros and cons of each NPP, in terms capital and operating cost per unit of energy, ease of operation, safety, environmental impact, security, construction challenges, and function under harsh weather conditions and in remote locations
  • Identification of potential concerns relating to the nuclear regulator (CNSC), particularly experience (or lack thereof) in dealing with each NPP, and the status of the relevant regulatory framework.

The results of Part 1 will be used to select one or more NPPs for more specific study in Part 2. The Steering Committee reserves the right to terminate the project at this point, depending on the outcome of Part 1.

Part 2 must include, for each selected NPP:
  • A plant conceptual design sufficient to support a +50/-30% cost estimate.. This must include equipment and infrastructure required to construct the interface between the NPP and the in-situ operation.
  • An estimate of the capital cost of constructing the above NPPs in the oil sands region in Alberta, taking skilled labour shortages and escalating costs currently being experienced in Alberta.
  • Development of initial procurement, construction, and commissioning schedules
  • Definition of required personnel, including including operators, maintainers, security and licensing support staff
  • Development of maintenance requirements (re-fuelling, refurbishing, projected down-time, etc)
  • Development of operating cost forecasts at a level consistent with CAPEX estimates for the NPP in question This must include costs associated with major outages during the life of the plant.
  • Preparation of an intial project schedule
  • Preparation of an economic feasibility study taking into account the above issues
  • Preparation of a preliminary project supply cost analysis, including O&M, nuclear fuel cycle costs, projected decommissioning costs, and tax implications
  • Preparation of a study comparing the cost of generating CHP/electricity via the selected NPP with that of burning natural gas, taking into account the GHG emission reduction cost. The energy costs comparisons should include CO2 avoidance credits at three levels: $0/tonne, $30/tonne and $60/tonne
  • Determination of expected plant life, including requirements for mid-life rehabilitation, and a discussion of appropriate decommissioning approaches.
Requirements:
  • Vendors must demonstrate that they are able to obtain significant amount of information from PBMR, GA-HTGR, and Toshiba 4S vendors in addition to that available in the open literature and public domain.
  • The vendors must commit to attending monthly face-to-face project meetings at PTAC's office in Calgary.
  • Vendors must ensure that any confict of interest is avoided; this includes potential and perceived conflicts of interest.
Schedule

PTAC, with financial and technical support from industry and government, intends to utilize the following process to launch these projects.

  1. All EOIs and preliminary proposals must be received by June 9th, 2008.
  2. The Alternative Energy Solutions Committee will review preliminary proposals by June 16th, 2008. Suppliers chosen to make formal presentations will be notified as soon as possible after this review is concluded.
  3. The successful supplier will be selected and notified no later than June 30th, 2008.
  4. The project must be completed, and the final report submitted at least in draft form, by December 31, 2008.

Project proposals will remain confidential for the duration of the selection process. PTAC does not screen, evaluate or influence the selection of potential suppliers; all decisions are made by the funding parties.

Contact Information

Preliminary proposals should be submitted via email to Tannis Such of PTAC at tsuch@ptac.org. EOIs should be faxed to the same at 403-920-0054.

The RFP will be available on PTAC's website at www.ptac.org.

PTAC is the neutral facilitator of this potential project. Technical questions should be emailed to Dr. Soheil Asgarpour, of PTAC at sasgarpour@ptac.org or call (403) 218-7701.

DISCLAIMER

PTAC is only a facilitator for these presentations. PTAC makes no representation regarding ownership or quality of any technology described by a presenter, or generally as to the contents of a presentation. PTAC does not endorse any presenter nor the technology presented. Please use your own judgment. PTAC trusts that each presenter will engage in fair trade practices, but does not police or otherwise enforce this policy in any manner.

   
 

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For further information,
please contact:

Tannis Such, PTAC
Manager, Environmental Research Initiatives
phone 403.218.7703
fax 403.920.0054
tsuch@ptac.org

      

© PTAC 2008

2008 05 14 LF