Ethanol sourced carbon dioxide and the energy sector: a Biofuels Digest special report

BACKGROUND

In many world markets, ethanol by-product carbon dioxide, is a dominant form of CO2 off-gas from all CO2 processes and source types; and this carbon dioxide is significant in the supply to energy – related projects. This (fossil fuel) energy related sector will remain in high demand, even though the long term answer to the global energy demand, from a long term perspective will have to be fulfilled via renewable sources, with a great deal of reliance on biofuels. This piece describes the application of CO2 in the production and enhancement of production of primarily fossil fuels. Despite today’s dip in oil and gas prices, the application of CO2 in all sectors described below will grow even stronger, as the availability of fossil fuels are depleted over time. The sale of CO2 from the ethanol industry is an outstanding opportunity for enhancement of the overall fermentation project’s revenues, and whether or not the revenues from the sale of ethanol alone are rich or not; it is ever important to maximize the yield from the sale of by-products to viable markets. The opportunities for the sale of CO2 within specific markets must be properly evaluated, in order to produce the best results.

The uranium sector is returning since nuclear plants will be built on a greater schedule, and CO2 is a feedstock used for in-situ leaching, or solution mining of uranium; and of course the production of oil and gas are highly integrated into various CO2 applications for enhanced and improved recovery techniques.

With respect to ethanol, over time, the torch will be passed from corn – based fermentation projects to second generation ethanol projects; thus removing the food and famine misconceptions. As the development of second generation ethanol moves forward, many of these projects may be located even closer to the uranium, oil and gas ventures, thus enhancing opportunities for use CO2 in all applications.

CARBON DIOXIDE CONSUMED IN THE RECOVERY AND PRODUCTION OF ENERGY – BASED MATERIALS

The major areas of CO2 consumption include a very old technology; but one reemerging with great interest, that being EOR or enhanced oil recovery. Please see image 2 as a basic CO2 sourced EOR diagram. Another old technology, but with less volume, in most cases would be so-called ‘frac’ used in natural gas stimulation projects. Since nuclear power is now on the forefront of interest again, globally, uranium value has risen substantially. In the recovery of uranium via in-situ applications, carbon dioxide is often a feedstock, along with other materials such as anhydrous ammonia; thus leaching via ammonium carbonate or bicarbonate. The uranium production sector was somewhat dormant for decades, and now, there is great interest, due to many nuclear plants now under consideration or development. With respect to a possible longer term home for CO2 in the energy sector, tests and applications with the use of nitrogen or carbon dioxide have taken place for enhanced coal bed methane (CBM) projects, which in short replace the molecules of methane with carbon dioxide in the coal bed seams.

A major supplier of natural CO2, from high pressure wells in the US south – central region within and surrounding Mississippi, is the Jackson Dome. This resource for CO2 has been supplying the merchant CO2 market for half a dozen merchant plants in Mississippi for many years, however, this natural CO2 source will be redirected to the oil and gas markets; specifically enhanced oil recovery. This enhanced oil recovery scheme will eventually remove the feedgas from most of the merchant CO2 plants in Mississippi, which supply the region and beyond with CO2 for industry. The only logical replacement of a large scale, over the next few years, will be biofuels, largely the development of second generation ethanol plants; and some grain based facilities as well. This presents a  significant value – added opportunity for ethanol projects regionally, as they are developed over the term ahead.

With respect to EOR, the electric power firms have evaluated EOR as a possible home for their carbon dioxide emissions; however, developing successful cost-effective recovery means (outside of the well proven amine projects) are very challenging, plus distribution and horsepower downstream of CO2 recovery are a further cost, but could in part be borne by the oil company seeking the commodity for EOR use. The electric utility sector has a way to go, from technology, cost effective, and strategic location perspectives. In the major existing and long lived regions for EOR in the United States, generally speaking of the Permian Basin (Texas, New Mexico region), and the Jackson Dome, these projects have primarily been sourced by natural underground CO2 sourcing, with high pressure. These forms of CO2 sourcing have been of very large volume, and have been in place for years. Today, ethanol projects using grain as a feedstock are planning EOR projects in the U.S. West, including projects in Kansas and Texas. EOR projects are also sourced from natural means in Wyoming; and the U.S. Dakota Gasification plant is sourcing the large Encana and other Saskatchewan projects with large sums of CO2 delivered by pipeline.  As was mentioned above, ethanol, even though under fire, is one of the only true means of supplementing or replacing petroleum products as an auto fuel; and more than one such plant is planning EOR as their market for their CO2 by-product. More such opportunities from ethanol and other highly concentrated chemical and energy projects will supply this sector of the energy industry. Enhanced oil recovery, can be a huge CO2 market, but the price of the commodity is a fraction of the value in the merchant sector; therefore specific and long term placement is essential to make these projects viable. As to frac, this sector is essentially the supply of CO2, often via the service companies, such as JB Hughes, is pumped under high pressure downhole, to stimulate gas production. The jobs which use CO2 in this form are priced considerably higher than EOR, and the volumes can range from a few tons, to several hundred tons per site. Such larger jobs then require large on site storage for the commodity, which is a part of the investment in this sector. Both EOR and frac are tried and true, and are in high demand for today’s high priced energy markets, which are looking to squeeze out as much hydrocarbon out of the wells as economically possible.

THE FUTURE

Over the time ahead, environmentally friendly energy projects will of course try to reduce CO2 emissions from projects which generate energy, such as power plants and biofuels manufacturing. As was mentioned before, the practical cost of recovering lean CO2 streams, such as from gas and coal fired power generation plants must concentrate the CO2 before the product travels the through liquefaction/purification steps; and even today, the options for concentrating this lean raw CO2 gas stream are expensive, or not proven in terms of more economical strategies; where membrane and ammonia refrigeration systems have been proposed; but we do not have any proven technologies other than amine solution methods as the most logical means of achieving these ends. Until better or more efficient means of concentrating the flue gas sourced CO2 can be proven without a doubt, then subsidies will be needed to use today’s successful options. In the past, under prior US energy laws, subsidies of a form existed with cogeneration plants, in the form of a thermal host. The cogenerated steam was used in the amine recovery process; thus the so-called thermal host. Something such as this must exist, in order to make the economics work; or new, fully proven technologies will emerge which will then make flue gas recovery of CO2 a viable commercial option for sourcing CO2 to the energy and other sectors. The demand for agents used in all forms of enhanced recovery of natural gas, oil, and coal bed methane projects will probably grow even stronger. Not long ago, the value for oil was over $140/barrel, now it is in the low $60s. This value is volatile, as are many other commodity values. I believe the oil producing regions of many nations will continue to squeeze out as much oil as possible from the  largely depleted fields; thus enhanced oil recovery via CO2; and this is even more enticing as ethanol projects (primary and then secondary) become an even greater supplier to this and other energy – related markets such as that described in this article.  The use of CO2 in natural gas recovery will remain strong for improving the yield both for downhole natural gas projects, as well as possible developments for coal bed methane projects.

The basis for economic viability in all CO2 sourcing and applications projects in energy related ventures requires strategic location. This is why, even if economically viable flue gas recovery methods for supply to the EOR sector existed, the location would have to remain within a reasonable distance to the point of application. The very large CO2 use for EOR projects will have to be delivered by pipeline v. over the road trucks, rail, or barge. The pipeline option has been the method for EOR supply to large project always, and this is the only means of effectively planning and controlling the cost of delivery.

About the author:

Sam A. Rushing, a chemist, is president of Advanced Cryogenics, Ltd., a global, leading CO2 and cryogenic gas consultant is ready to provide professional services to all aspects of your CO2 project. Services range from business, markets, to technology, process, and technical expertise. The company is supported by over 30 years of CO2 and chemical industry expertise. www.carbondioxideconsultants.com , telephone 305 852 2597, rushing@terranova.net

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