Meeting the CO2 challenge with technology

1
Meeting the CO2 challenge with technology

• Knut Åsnes
• Discipline advisor environmental protection,
  StatoilHydro
• Oslo, 18.09.2008

2
StatoilHydro climate policy

• StatoilHydros ambition is to provide energy to
  meet the growing demand that is needed for
  economic and social development while at the same
  time caring for the environment and actively
  combating global climate change.
• StatoilHydro recognizes that there is a link
  between the use of fossil fuel and man-made
  climate change. We will apply a precautionary
  approach in operations and business development,
  and take into account the impact on climate
  change and sustainable development before
  entering into new businesses and projects.
• We will achieve our amibtions through the
  following measures (1-7)
• Measure 1, 3 and 4 will be further presented

3
A new energy platform

• We will increase energy efficiency
• We welcome global mechanisms for carbon trading
• We will keep our position as a world-leader in
  carbon capture and storage
• The cornerstones in our new energy portfolio will
  be offshore wind and biofuel

4
SH climate policy measure 1 - Operations

• We strive to implement the best available
  technologies and practises to operate our
  facilities with a high degree of energy
  efficiency, and to reduce greenhouse gas
  emission
• The last 3 years StatoilHydro has cut the annual
  CO2 emissions on NCS by ca.200 000 tonn CO2
  through energy efficiency measures
• Energy management in use
• CO2 tax has made many energy efficiency measures
  profitable

5
Energy efficiency oil and gas production
6
Important to design energy efficiency in field
development!Kvitebjørn High Pressure/High
Temperature - from challenge to advantage

• Emissions to air
• 2,5 kg CO2 eq./barrel o.e
• 0.0003 kg NOx /barrel o.e.
• Reservoir pressure utilized for gasexport and
  injection of produced water to the Utsira
  formation
• Well stream heat utilized as process heating

7
Heimdal new power generator - replacing old
turbines

• Transported to Heimdal Summer 2008 (Saipem
  7000)
• New module will be integrated with 14 different
  systems
• Wight 550 ton
• Cost almost 1 billion NOK
• Annual reductionof CO2 50 000 tonn
• 25 reductionof Heimdals emissions

8
Preparing for power from shore on floating
installations

• Gjøa Planned start up 2010
• Power from Mongstad combined heat and power plant
  will supply Gjøa
• Better energy efficiency than traditional
  offshore turbines
• Reduced emissions
• Troll A, power from shore since start up in1996

9
Mongstad combined heat and power plant (EVM)
project launched to improve energy
efficiencyNatural gas pipeline, refinery
modifications and CHP plant
Power grid
Kollsnes
Troll A
Mongstad
60 MW to refinery
180 MW to Troll
Refinery
Combined heat power station (CHP)
40 MW to Gjøa
280 MW electricity
Electricity
New gas pipeline
Abt 350 MW heat
Terminal
Turbines
Gas
Surplus gas
Gas to Europe
Energy efficiency CHP station 70-80
10
Flare gas recovery system

• Gullfaks A Closed flare in 1994
• System later used on ca. 30 installations in
  Norway, UK, Aserbadsjan and Trinidad
• Worldwide Annual flaring/ventilation of 150
  billion m3 gas, resulting in 400 mill ton CO2.
• Norway Flaring of 100 mill m3 gas, 0,1 of
  flared volumes worldwide

11
StatoilHydro cooperation with Petroleos Mexicanos

• Cooperating to close down gas flares on the oil
  field Tres Hermanos
• Ongoing application pocess for approval from UN
• Clean Development Mechanism (CDM), Kyoto Protocol
  

12
Oil sand Canada

• Steam Assisted Gravity Drainage (SAGD)
• Energy consuming 40 65 kg CO2 / barrel o. e.
• Large consumption of water
• StatoilHydro goal Reduce steamneeded to warm up
  sand, reduceenergy needed
• Possible measures
• Re-use water
• Use of solvents in steam
• CO2 Capture and Storage

13
SH climate policy measure 4 CO2 capture and
storage (CCS)

• We are actively working to establish CCS as
  business opportunity and evaluate CCS solutions
  as part of CO2 intensive projets
• Sleipner 1 mill. ton CO2 per year is separated
  from natural gas and injected in deep saline
  aquifer.
• Reduces CO2 emission by 13 on the Norwegian
  Cont. Shelf
• In operation since 1996

14
CO2 Capture and storage (CCS) removal of CO2
from natural gas
Sleipner

• Carbon capture and storage
• Sleipner
• In Salah, Algeria
• Snøhvit

15
CO2 Capture at Mongstad

• Result of permitting process for Mongstad
  combined heat and power plant (EVM) October 2005.
• Statoil and the Norwegian Government entered into
  an agreement on October 12th 2006 to cooperate on
  CO2 capture at Mongstad
• European CO2 Test Centre Mongstad (TCM)
• June 20th, 2007 Cooperation agreement between
  the Norwegian State and Statoil ASA extended with
  new partners Vattenfall AB, Norsk Hydro
  Produksjon AS, Dong Energy Generation AS and AS
  Norske Shell for the planning phase 1). TCM
  owners are all parties who have a strategic
  interest in developing CO2 capture technology
• Large scale CO2 capture plant at Mongstad
• CO2 Masterplan Mongstad, a StatoilHydro ASA
  project, shall in accordance with the agreement
  present a master plan for large scale CO2 capture
  to the Government by the end of 2008. Further
  development of large scale CO2 capture at
  Mongstad is at the discretion of the Government

16
(No Transcript)
17
European CO2 Test Centre Mongstad

• The test facility shall, in accordance with the
  agreement, reduce risk and cost for large scale
  CO2 capture. See next slide.
• The plant shall be designed to capture 100 000
  tonnes CO2. The captured CO2 will be released
  back into the atmosphere
• Two CO2 capture technologies will be tested on
  two different flue gas sources
• Technology goals
• Amine
• Flexible demonstration plant
• Test of equipment, internals, process
  configurations
• Test of different operating conditions and
  different / new solvents
• Chilled ammonia
• Validation of process and engineering design for
  full-scale application
• Determination of performance
• Gain more insight into aspects as thermodynamics,
  kinetics, engineering, materials of construction,
  safety, process, environmental etc.
• Reducing environmental risk related to large
  scale CO2-capture
• The capture technologies have their own unique
  environmental footprint which presently are not
  fully understood

18
CO2 Masterplan Mongstad

• The large scale CO2 capture plant is designed to
  capture 2.1 million tonnes of CO2 from two
  separate sources the combined heat and power
  plant (CHP) and one Mongstad refinery source
  the residue catalytic cracker
• Building a large scale CO2 capture plant will
  require technology qualification (TQP). TQP is
  recommended to be based on results/information
  from pilot plants, demonstration units and
  commercial units in addition to TCM. Theoretical
  studies and mathematics modelling are also
  integrated parts of the TQP. TQP is required not
  only the capture technologies, but also for large
  mechanical equipment
• The captured CO2 will transported a suitable
  reservoir for storage. Investigation of transport
  and storage solutions is the responsibility of
  the MPE and Gassnova SF. The Utsira and Johansen
  formations are under assessment as potential
  storage locations

19
SH climate policy measure 3 Renewable energy

• We develop a business portifolio within non
  fossil energy and clean energy technologies and
  carriers
• 2 wind power plants in operation
• Havøygavlen in Finnmark (picture above)
• Utsira in Rogaland
• 14 projects in StatoiHydros wind portifolio

20
Hywind

• StatoilHydro will build worlds firstfull scale
  floating wind turbine west of Karmøy
• Will be tested over a 2 year period
• Project is pilot for the Hywind concept
• Investment 400 MNOK
• Planned start up Autumn 2009
• 2,3 MW wind turbine
• Combination of offshoreand wind experience

21
Sheringham Shoal permit given by British
authorities 8/8-08

• Developed by Scira Offshore Energy Ltd. (SH 55,
  Evelop 45)
• 88 wind turbines, 315 MW
• Final decision regarding investment in
  StatoilHydro will be taken within this year
• Planned start up 2011
• Impact assessment performed
• radar
• air traffic
• fishery
• birds

22
Sheringham Shoal
23
Biofuel - Life Cycle Assessment
Groving and Harvest Land use
Transport to market
Conversion
Transport
Fertilizer
Petroleum
Natural Gas
Electric Power
Petroleum
Natural Gas
Wide variation of CO2 reduction compared to
fossile fuels, ranging from 10 to 90
24
Well-to-wheel- StatoilHydrobiodiesel Lithuania

• StatoilHydro 42,5, Linas Agro 57,5
• Production based on rapeseed from the Baltic
  area, Belarus and Russia.
• Green House Gas (GHG) reduction of approx. 30-40

25
WTW GHG eq calculations for Mestilla RME
N2O
CO2
CO2
CO2
CO2
CO2
CO2
CO2
26
Biofuel - Traceability system needed

• Life Cycle Assessment
• Direct Land Use Change (LUC)
• Palm oil displaces rain forests in Indonesia
• Indirect LUC
• Corn replaces soy in the US, soy replaces rain
  forest in Brazil
• Loss of biodiversity
• Small farmers and indigenous people
• Rights and conditions for workers

27
Thank you for your attention!