Large Scale Carbon Dioxide Production from Coal-fired Power Stations for Enhanced Oil Recovery: A New Economic Feasibility Study

Abstract

Abstract Enhanced oil recovery (EOR) technologies must be increasingly applied inorder to sustain the current production capacity of conventional oil in Western Canada. Among these technologies, carbon dioxide (CO2) flooding isa highly attractive possibility. At the same time, a large amount of CO2 is being produced by coal-fired power plants in this region. The CO2 is currently discharged into the atmosphere and could be a majorcontributor to the so-called greenhouse effect, which would lead to globalwarming. Thus, the concept of capturing CO2 and utilizing it as aflooding agent in EOR processes is currently generating much interest amongoil, utility and coal companies. This paper describes how cogenerationconcepts, together with process optimization strategies, help to reduce the CO2 production cost by utilizing low-pressure steam and waste heatfrom various sections of the power generation process. Based on these conceptsand strategies, results from this study show that the recovery cost of CO2 from a coal-fired power plant can range between $0.50 –2.00/mscf. If the cost is approximately $1.25/mscf, the production cost of abarrel of incremental oil would be less than $18. Therefore, at modest oilprices, there is room for profit to be made operating a CO2 floodwith flue gas extracted CO2, The technical and economic feasibilityof the concepts are evaluated and practical implications for the Saskatchewanresources are discussed. Introduction Oil, utility and coal companies in Western Canada are increasinglyinterested in the concept of capturing CO2 from coal-fired powerstations and utilizing it as a flooding agent for EOR processes. Implementationof such a scheme would provide two important benefits:the captured CO2 could be marketed as a flooding agent which would generaterevenues, andCO2 emissions to the atmosphere would be reduced.Since CO2 emissions are considered to be the main contributor to thepossible serious environmental problem of global warming, the proposed schemecould become an important instrument to reduce such emissions at minimalincremental cost.