Ashley Finan, 2006

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Nuclear Energy and Oil Sands?

• Ashley FinanMassachusetts Institute of
  TechnologyDepartment of Nuclear Science
  Engineering Life Cycle Assesment Special Nuclear
  SessionNovember 3rd, 2006, 130pm-300pmUniversi
  ty of Calgary

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Outline

• Why a study is needed
• What it could look like
• What it will produce
• What it will require

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Canadas Oil Sands Industry

• Goal To maximize returns in a way that is
  socially and environmentally responsible
• Threats
• Volatility of natural gas prices
• Increasing natural gas demand
• Labor and materials shortage
• Mounting GHG emissions
• Other environmental damage

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Nuclear Energy Brings Challenges

• Public and political support
• Licensing and construction difficulties
• Ownership/business model
• Nuclear safety and liability
• Nuclear waste and decommissioning
• Is introducing it worth the trouble?

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Research Proposal

• Integration of Nuclear Power with Oil Sands
  Extraction Projects in Canada
• A cooperative effort between MIT and the
  University of Calgary Life Cycle Assessment
  Group.
• Time Frame November 2006 May 2007
• Goal Assess the feasibility, economics, and life
  cycle costs and benefits of nuclear power use in
  bitumen extraction and processing.

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Objectives

• Define a range of commercial applications
  including steam production for SAGD, power
  production, and hydrogen production in support of
  bitumen upgrading facilities.
• Define the nuclear safety issues and regulatory
  requirements that must be resolved to support
  project implementation for each reactor
  technology.
• Establish the basis for public discussion and
  public policy formation for key issues related to
  the application of nuclear technology in the oil
  sands business.

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Products

• A feasibility determination for a variety of
  proposed nuclear integration scenarios.
• A white paper that will serve to enhance public
  and political discussion and hasten the process
  of regulatory review.

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White Paper Content (Provisional)

• Alberta Oil Sands Overview
• Update on Bitumen Extraction techniques
• Surface mining
• SAGD
• CSS
• CO2 flooding
• Others
• Bitumen Processing and transport update

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Provisional Content, Contd.

• State of the Industry in Alberta
• Challenges facing the industry
• Required output from an energy source
• Available sources of heat and electricity
• Wind, hydroelectric
• Natural gas, coal, petcoke, bitumen
• Nuclear

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Provisional Content, Contd.

• Evaluating Reactor options
• Obtain nuclear and oil industry input and ideas.
• Define case studies of interest using the CANDU,
  the Areva HTR, and the PBMR.
• Configuration 1
• Thermal Hydraulic Feasibility
• Practical Feasibility (water, coolant,
  construction, transportation, workforce)
• Economic Feasibility

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Provisional Content, Contd.

• Safety risks
• Socioeconomic and environmental effects (natural
  gas availability, CO2 emissions, nuclear waste)
• Pre-requisites for implementation (public and
  political will, regulatory action and resources,
  safety studies)
• Business Model
• Contractual Issues owner/investor/customer
  structure
• post-oil sands utilization and decommissioning

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Provisional Content, Contd.

• Configurations 2 through n.
• Overview of upcoming technologies that would
  compete with the proposed nuclear methods
• Life Cycle comparison of nuclear-fueled proposals
  with alternate proposals.

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Resources Required

• Funds
• Input Data
• Bitumen extraction process data (MWe, MWth, steam
  quality, temp, pressure, rate, hydrogen needs,
  etc.)
• Nuclear reactor operating points (steam cycle
  pressure, temp, capacity, etc.)
• Maintenance schedules
• Basic economic figures
• Advisory committee

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Summary Questions

• Nuclear energy addresses some of the issues that
  the oil sands industry is facing, but introduces
  its own as well.
• To evaluate the costs and benefits of the
  introduction of nuclear, a study should be done
  that considers oil industry requirements and
  conditions, as well as the current readiness of
  the nuclear industry.
• Should the options look promising, the white
  paper will serve as a starting point for
  discussions with the public and the regulator.