Alternative Energy

Technology Information Session

2008 06 02

Alternative Energy Solutions to Replace Natural Gas for Oil Sands Development

Monday, June 2, 2008
2:00 p.m. - 2:15 p.m. Registration
2:15 p.m. - 3:30 p.m. Technical Information Session
3:30 p.m. Networking Reception for Interested Funders

EnCana Amphitheatre, 2nd Floor Tower Centre
115 - 9th Avenue SE, Calgary, AB

Invitation

The participants of the Alternative Energy Solutions to Replace Natural Gas for Oil Sands Development Committee and PTAC Petroleum Technology Alliance Canada invite you to attend an information session to solicit additional participation in a collaborative project to study the applicability of nuclear energy for use in the oil sands.

Phase I of this project determined that nuclear energy could in principle make a substantial and long term contribution towards meeting future Oil Sands energy requirements while reducing the environmental impact of Oil Sands projects. There is the potential to minimize natural gas usage and reduce CO2 emissions.

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 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.

PROJECT DESCRIPTION

PTAC and its partners are now moving to Phase 2 of this study. The following 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.

Part 1 will focus on:

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.

Part 2 will 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..

BENEFITS

WHO SHOULD ATTEND

Representatives of organizations with an interest in looking for alternative solutions to replace natural gas use in the oil sands development.

Registration Fee (until June 1, 2008)

PTAC Members

Complimentary

Non-Members

$50.00 (+GST)

Onsite Registration Fee (June 2, 2008)

PTAC Members

$25.00 (+GST)

Non-Members

$75.00 (+GST)

Please be advised that PTAC reserves the option to charge $ 25 + GST to PTAC members that register and do not attend, unless notification of cancellation is received by PTAC a minimum of 24 hours in advance of the TIS.

If you are unable to attend and would like additional information on the technical aspects of this project, please contact:

Dr. Soheil Asgarpour
PTAC
phone: 403-218-7701
email: sasgarpour@ptac.org

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 registration information,
please contact:

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

2008 05 14 LF