The Western Energy Corridor & Utah: Ensuring North American - PowerPoint PPT Presentation

The Western Energy Corridor & Utah: Ensuring North American Energy Security and Regional Sustainable Economic Development in the 21 st Century Director, Program Development Energy & Michael Hagood Environment S&T Idaho National Laboratory Executive Director Eastern Utah Secure Energy Program Dr. Robert Behunin Vice President, Utah State University Commercialization & Regional Development Dr. Jeremy Boak Director, Center for Oil Shale Technology & Research, Colorado School of Mines

Western Energy Corridor : Contains fossil energy resources strategic to U.S. energy security

Resource Triangle Increased infrastructure Increased operating challenges High- Improved technology Conventional Increased approvals medium resources 1950-1995 Increased cost quality Small volumes that are easy to develop 2002 Unconventional resources Tight gas Oil sands Large volumes 2006 sands that are difficult to develop Gas Natural gas Heavy oil shales from coal Gas hydrates Oil shales Source of image: Canadian Society for Unconventional Gas Submission to Council of Energy Ministers, September 2003 “ The Nation is substantially at risk from an economic and security perspective, to warrant development of an unconventional fuels program with attendant policies and government actions to promote and accelerate industry development ”

Unlocking the vast energy resources within the Western Energy Corridor will require integrating, optimizing and stewarding a diverse set of domestic (and N. American) energy resources, interconnected by a dependable delivery infrastructure, and developed in an environmentally progressive manner. Today: High Carbon Intensity Low Carbon Intensity Foreign Dependent Domestic Dependent Trillions $ to foreign economies Trillions $ to U.S. economy The energy corridor Fossil Nuclear contains a unique and rich base of carbon, hydrogen and primary energy Renewables sources to create fuels, electricity and other products

The Energy Corridor Forms a Rich Foundation for Establishing Hybrid Energy System Approaches at Multiple Scales Hydrogen Generation Plant • Upgrade of fossil and bio feedstocks • Catalytic feedstock for coal to liquids Liquid Fuels & Chemicals Plant Renewable-Electric Integration • Coal and biomass to liquids • Electrolysis or co-electrolysis driver • Process chemicals • Additional electricity to grid Result Drive down carbon footprint—Leverage existing energy distribution Carbon Feedstock Nuclear Island • Coal systems—Energy where you need it / when you need it—Get more • Present or future generation • Biomass • Process heat and/or electricity renewables to the consumer, faster • Recycled carbon 5

The Eastern Utah Secure Energy Program and Partnership

The Eastern Utah Secure Energy Program and Partnership (EUSEP 2 ) EUSEP 2 has been established to create greater focus on responsible development and utilization of energy resources within eastern Utah and environs. It is designed in particular to (1) help identify and achieve energy production goals, (2) help create a long- term sustainable economy within rural eastern Utah and (3) provide educational opportunities for Utah citizens. The program would provide a solid framework for conducting applied energy research and development taking advantage of collaborations between research institutes within the State of Utah as well as with other regional universities, national laboratories, government agencies and industry. The program intends to address a spectrum of challenges related to developing regional energy resources, focusing on policy, RDD&D, environmental impacts, investment, economic development, and education. EUSEP 2 is hosted at the Bingham Research Center, located in Vernal, Utah

Selected Program Element: Research, Development, Demonstration, & Deployment With its partners, EUSEP 2 is conducting solutions- oriented applied energy research to create a bridge between basic research and commercialization. The program will focus on conducting larger-scale demonstrations (including in the field) to reduce risk associated with innovative technology deployment. RDD&D directions will be defined by program goals EUSEP 2 will become the “ go-to place ” for in-depth understanding of energy development processes applied within the region as well as for understanding the real and potential environmental impacts. Existing and emerging activities: • EUSEP 2 partners have contracts in place (or pending) with industry to assess various above- ground and in-situ oil shale and gas production INL scientists conducting oil processes. shale retort experiment.

Selected Program Elements - Policy A solid understanding of energy policy will be critical in advancing energy production within Eastern Utah. A myriad of regulations needs to be addressed at multiple levels (e.g., Federal, State, and County jurisdictions). Existing and emerging activities: • EUSEP 2 is currently engaged with regional stakeholders (i.e., BLM, DEQ, EPA, and local government) to initiate a viable air resource management strategy that will result in air quality policy to encourage and enhance responsible resource development. • EUSEP 2 members are sitting on key energy policy task forces, associated with Governor Governor Herbert has introduced Herbert ’ s 10 Year Energy Plan Task Force, to for consideration “ Utah ’ s 10-Year help establish innovative approaches to resource Strategic Energy Plan, ” which development. includes development of Utah ’ s fossil energy resources.

Selected Program Element – Environmental Characterization, Monitoring, and Modeling EUSEP 2 will create a center for regional environmental characterization, monitoring and modeling to assess impacts from energy development. EUSEP 2 is also engaged in developing and demonstrating various technological innovations associated with characterization, monitoring and mitigation. Existing & emerging activities: • USU has developed and spun out an emissions/ effluent treatment process applied to oil and gas fields (Purestream). • Bingham Research Center is creating an environ- mental analytical laboratory and modeling capability. • EUSEP 2 partners recently collaborated on a DOE proposal associated with unconventional fossil energy Further unlocking the energy and development, addressing environmental assessment. mineral resources in Eastern Utah • EDL is exploring use of algae for addressing produc- will require assessing and mitigating ed water cleanup (from oil and gas fields) and benefi- potential environmental impacts. cial use of CO 2 derived from energy production plants.

Selected Program Elements – Regional Economic Development The oil and gas industry brings increased standard of living, attracts capital, creates jobs, heightens in- vestment in businesses and boosts taxes/royalties. Innovation will also emerge, creating additional economic benefits to the region. EUSEP 2 views also an opportunity to use this “ energy platform ” to potentially develop a value-added in- dustrial base and sustainable economic prosperity in the region. This additional dimension can attract significant national and international investment. Existing and emerging activities: • Hon. Murray Smith of Alberta is investigating situa- tion in Uintah Basin, exploring the creation of a sus- tainable innovation program and investment potential. • EUSEP 2 is securing a visit with China National Petroleum Company, which has interests in investment and collaborations. • EUSEP 2 members are sitting on a key Utah State energy policy task force addressing economic development.

Selected Program Elements – Education EUSEP 2 is creating opportunities for Utah students within the energy and environment area through classroom instruction and a diverse set of university engagements. These efforts will be complemented and enriched by engagement with vocational technology schools (e.g., Uintah Basin Applied Technology College) that train skilled workers needed in today ’ s and tomorrow ’ s work force. In the longer-term, the R&D focus established through EUSEP 2 can result in world-class expertise that can EUSEP 2 is creating educational opportunities for Utah citizens be exported internationally. Existing and emerging activities: • Currently building greater educational opportunities through the Bingham Research Center. • Faculty-staff exchanges and joint appointments already established between USU, INL and USTAR • Exploring opportunities with Colorado School of Mines.

Partnerships EUSEP 2 will build upon collaborations among regional universities, national laboratories, government agencies and industry to help achieve its goals. EUSEP 2 will also provide infrastructure to help regional stakeholders demonstrate their innovations in a more “ applied ” environment. Research Institutes: INL and USU have formed the initial core of EUSEP 2 USTAR staff resident in Bingham Research Center The University of Colorado School of Mines has expressed interest in Montana joining Potential to serve Utah Energy Research Triangle Exploring key relationships in Alberta/Saskatchewan § Government: § There are opportunities to engage with federal (DOE, DOI, EPA, DoD), state, county, city, and tribal governments. § Industry: § To meet EUSEP 2 goals, it is critical to engage with Selected Western Energy Corridor industry, in particular to understand and address their Research Institutes priority challenges.