Pathways to Cleaner Energy: Hydrocarbons, Hydrogen

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Pathways to Cleaner EnergyHydrocarbons,
Hydrogen Renewables

• Eve S. Sprunt
• 2006 SPE President
• Senior Technical Advisor
• ChevronTexaco Technology Ventures LLC

April 2005
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Everything leaves a footprint
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The global oil resource base
There is a very large hydrocarbon resource base
. . .the long-term issues are development costs,
product costs, and environmental impacts.
Produced
Proved Reserves
Undiscovered
Extra Heavy Bitumen
EOR
Shale Oil
Years Supply at 2004 Production
0
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Trillion Barrels Recoverable
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Sustainability

• Environmental Concerns
• Short term -- Air Quality
• Long term -- Climate Change Issues
• Majority of Energy Needs Include
• Transportation
• Electricity Generation

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Power to the People
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Transportation

• 68 of US oil usage is for transportation
• 42 is for light duty vehicles
• US cars get an average of about 20 miles/gallon
  (8.5 km/liter)
• According to the API it now takes about 33 cars
  to generate the same amount of emissions produced
  by one 1970s car

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Hydrogen as a natural extension of the core
energy business
Hydrogen infrastructure connects to the core
business
Explore
Develop
Produce
Commodity economics
Ship
Refine
Blend
Store
Pipe
Distribute
Margin economics
Market
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The hydrogen option diverse feedstocks
Hydrogen
Electrolyzer
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Hydrogens potential light-vehicle CO2
emissions
From processes to produce fuel
From combustion of fuel
Lb CO2 / 100 Miles
120
Conventional ICEs
100
Hybrid H2 FCVs
80
Hybrid ICEs
60
40
20
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NG reforming
Grid electrolysis
H2
H2
Gasoline
Diesel
CNG
Gasoline
Diesel
Renewable electrolysis
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Fuel Cost Comparison for H2 Its Competitors
Assumes 1) FCVs have 50 and H2 ICEs 10-20
better fuel economy than advanced gasoline or
hybrid vehicles, and 2) all fuels (gasoline or
H2) are taxed on an equivalent BTU/mile basis.
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Fuel Cell Costs and Applications
10,000-60,000per Vehicle
1,000-3,000per Vehicle
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Hydrogen Fueling Station Components

The Chevron Hydrogen energy station at the
Hyundai-Kia America Technical Center in Chino,
Calif., uses autothermal reforming to convert
natural gas into hydrogen (reacted catalytically
at high temperature with oxygen and steam to
produce hydrogen). The hydrogen is then
compressed, purified, stored and dispensed into
fuel cell vehicles.
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Hydrogen Fueling Station
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Molecular engineering and advanced fuels
Gas-To-Liquids (GTL)
Potentially connects major global gas reserves to
markets for synthetic super-clean fuels
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Future of Gasoline and Diesel Vehicles

• Internal combustion engines (ICEs) are
  becoming extremely clean
• Hybridization and ICE advances have
  significantly improved fuel economy and reduced
  emissions
• Gasoline and diesel fuel improvements are
  helping to reduce vehicle emissions for example
  GTL fuels
• Gasoline and diesel vehicles continue to become
  more reliable, safer, quieter, more responsive,
  and more comfortable

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Hydrogen Compared with Gasoline and Diesel

• Energy Companies will provide whatever fuels
  customers want -- and hydrogen will need to
  compete in the marketplace with other
  alternatives.
• Some implications for hydrogen
• Value and benefits need to be clear for customer
  acceptance
• Present technologies like internal combustion
  engines and hybrids will continue to improve
• Hydrogen and fuel cells can potentially provide
  added benefits, but cost and other hurdles need
  to be overcome for wide customer use
• Options using existing fuel resources more
  efficiently will continue to play a key role in
  the future

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The hydrogen option a complex pathway

• Critical mass
• Technology readiness
• Codes Standards
• Costs and returns
• Continuity

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Electric Power Generation
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U.S. Electricity in 2002
3,650 Billion kWh
Source EIA, 2004 Annual Energy Outlook
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Cost of Options to Reduce Carbon Emissions From
Electricity Generation
Representative Values No Carbon Sequestration
Assumed
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Cost of Options to Reduce Carbon Emissions from
Electricity Generation
Illustrative Example Values, No Carbon
Sequestration Assumed
Primary Data Source EIA, 2004 Annual Energy
Outlook
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GHG Cost Effectiveness
Renewable Energy

• High ()
• Large Solar Electric
• Renewable Hydrogen

• Medium Cost ()
• Wind
• Biomass
• Geothermal

Substantial cost reductions expected longer term
Dollars Per Tonne Carbon Removed
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Cumulative Gigatonnes of Carbon Removed
To reduce GHGs, fuel cells, H2, renewables have
a role, but ALONG WITH efficiency improvements,
fuel switching, other new energy technologies.
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Geological Sequestration of CO2
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Rangley CO2 Flood
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Applications for renewables

• Refinery installation Nerefco Project - 22.5MW
  wind farm near Rotterdam in the Netherlands

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Applications for renewables
Combination of wind and solar on offshore
platform in the Gulf of Mexico
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Niche Markets Stationary Fuel Cell Systems to
power critical systems in IT and labs

• Headquarters San Ramon, California

• LaboratoriesBellaire, Texas

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Energy transitions

• Energy demand continues to grow
• Transitions reflect varying national and regional
  drivers
• Transition to natural gas is underway
• Energy infrastructures and vehicle fleets take
  decades to change
• New fuels and vehicles coexist with older ones
• Geological sequestration of CO2 can mitigate the
  use of fossil fuels

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Pathways to cleaner energy
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The Issue is Global
A BTU by any other color (or where it
comes from) is still a BTU. The Global
Economy needs every BTU it can get.
The environment does not recognize
political boundaries.
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Pathways to Cleaner Energy

• Questions?