Thursday February 283:00 – 4:00 PM

Networking event immediately after

The Johnson Energy Club is proud to welcome Joseph Degenfelder (Chem Eng ‘60) to campus for a panel discussion on the latest Green Technologies in Hydraulic Fracturing.

Joining Mr. Degenfelder will be Keith Hall JD, Director of the Louisiana Mineral Law Institute, and Arthur McGarr, Geophysicist Earthquake Science Center, U.S. Geological Service

BE INFORMED! The panel will discuss cutting edge technology in hydraulic fracturing and bio fuels with a Q+A session to follow.

Hydraulic Fracturing and Green Technologiesfeaturing Joseph Degenfelder , CEO of Atlantic Green Fuels

Next_Generation Biorefineries

Joseph R. Degenfelder

September 15, 2011

Presented by

Lessons From the Plastics IndustryCapital Effectiveness

• PVC commercialized 1937 by B.F. Goodrich Inc.• By 1961~ 25 Producers with 50+ Plants• Price $0.45/lb in 1950, $0.10/lb in 1970, $0.45/lb today

• Polypropylene (PP) commercialized 1958 by Hercules, Inc• By 1970 there were 12 producers with 20+ Plants• Price $0.40/lb in1961, $0.10/lb in 1970, $0.45/lb Today

WHY ?

Why?

Great increase in capital effectiveness

1. Improved catalyst a. Raised PVC output/plant 200-300%b. PP yield 2 mKg/gm to 450 mKg/gm

2. Depreciated equipment with minor mods

Improvement gained fully only by reactive companies with engineered processes to match the catalyst

Standard Oil Markets 1886Petro oil replaced whale oil

(15 years after first Drake oil well)

Transition Coal to Oil•First Oil-burning destroyer USS Paulding commissioned September 1910

•Oil-burning USS Nevada battleship commissioned 1911 with triple-16” gun turrets

•Half-century after opening of Drake oil well

•Germany hydroprocessed pulverized coal 1941-1945

•Hybrid electric USS Makin Island Oct 2009

•“Great Green Fleet” announced by US Navy 2011

•A century after first oil-burning ships

Lessons From the Petro-Refining Industry “Bottom-of-Barrel”

• John D. Rockefeller buys out Clark Bothers – 1864

• Starts expansion of Standard Oil by

building second refinery in Cleveland – 1865

• Getty Delaware City refinery for sour crudesIncludes new fluid coking process units – 1957

• First central computerized control at Imperial Oil's Sarnia refinery – 1974

• It took a century for petrorefining to fully utilize feedstock

US Energy and Emissions

Year

1961

1973

1983

1993

2010

Total Quad BTU’S

46

75

73

86

98

Emissions Billion Tons Carbon

50

79

74

75

??

Why decrease?

Why energy decrease for a decade?

1. Price of oil increased order-of-magnitude

2. Largest energy savers process industriesa. Petrorefining ~40% of industry savingsb. Pulp/paper ~30% of industry savings

William Jennings Bryan “Cross of Gold”

campaign speech Status 1896 vs. 1954 vs. 2012

If farms thrive, cities will thrive (40% lived on farms 1896)

21st century advantage similar to19th century advantage; i.e.

The fertile heartland of U.S. to grow food and fuel crops.

Corn ethanol plants boost farm income.

VEETC tax credit expires December 31, 2012

Overview for Biofuels progress

Startup cellulosic ethanol companies will fail

Corn ethanol companies will add-on cellulosic ethanol

RFS #2 level of 15 billion gals/year met ~10%

Can’t compete with fracking

When first hydraulic fracture performed?

Klepper #1 Hugoton gas field Kanasas1947 – 2500 ft deep

Little frack activity next three decades

George Mitchell Fracking Pioneer

 

•1980 tax break starts unconventional gas drilling• •Mitchell Energy's first 35 wells lose money• •Sold to Devon Energy in 2002• •George Mitchell Statement February 2013•“It’s appropriate that states lead in regulating drilling activities"

                                       

Key Issues for Johnson Energy Club Feb 28, 2013

•Earthquake causation by fracking or water injection

•Use eco-friendly chemicals in slickwater fracturing

•Recycle frack water with updated chemistry

• Conversion/use of methane for/as liquid fuels

Strategic issues presented in DC 2011

 

•January - House Science, Space & Technology Comm•Rand report re Fischer Tropsch process is foolish•HEFA jet fuels from camelia oil low-volume fantasy• •November - senior US Navy execs at Pentagon•Repeat January points to SST committee•Hydroprocessed cellulosic fuels never economical•"Great Green Fleet" by 2016 is impossible

Assumptions for upper-bound seismic moment•The formation is seismogenic hydraulic communication between injection and faults•Rock mass is fully saturated before water injection•Faults pre-stressed close failure stress•Response follows Gutenberg-Richter distribution

Special paper for Johnson Energy Club on following slides

Art McGarr, US Geological Service

    http://earthquake.usgs.gov/regional/nca/directory/?id=139

Activities involving injection that induce earthquakes

 

•Wastewater disposal - general

•Injection into hot rock - Enhanced Geothermal Systems

•Hydraulic fracturing of oil/gas reservoirs

 •Scientific studies of earthquakes

Table. Maximum seismic moments M0(max) and total injected volumes V Event M0(max), Nm V, m3 Type M Location

KTB1 1.43e11 200 scientific 1.4 eastern Bavaria, Germany

BUK 2 3.2e12 4.17e3 frak 2.3 Bowland shale, UK

GAR3 1.78e13 8.91e3 frak 2.8 Garvin County, OK

STZ4 2.51e13 3.98e4 egs 2.9 Soultz, Frnce

BAS4 1.41e14 1.15e4 egs 3.4 Basel, Switzerland

ASH5,6 2.82e14 6.17e4 wd 3.6 Ashtabula, OH

CBN4 3.98e14 2.0e4 egs 3.7 Cooper Basin, Australia

YOH7 8.3e14 8.34e4 wd 4.0 Youngstown, OH

ASH8 8.0e14 3.4e5 wd 3.9 Ashtabula, OH

PBN9 3.16e15 3.287e6 wd 4.3 Paradox Valley, CO

RAT110 4.5e15 3.87e5 wd 4.4 Raton Basin, CO

GAK11 1.2e16 6.29e5 wd 4.7 Guy, AK

POH12 2.0e16 1.19e6 wd 4.8 Painesville, OH

RMA13 2.1e16 6.25e5 wd 4.85 Denver, CO

RAT214 3.6e16 2.92e6 wd 5.0 Raton Basin, NM

RAT314 1.0e17 4.95e6 wd 5.3 Raton Basin, CO

POK15 4.0e17 1.20e7 wd 5.7 Prague, OK

Deep injection of wastewater Colorado

Raton Basin includes coal-bed methane

Earthquake sequence August 2001 – present

Deepwater injection Prague, OK

445 480

979

0

200

400

600

800

1,000

1,200

1,400

1,600

ConventionalGas

Shale Gas -Published

Coal

Max

75th

Median

25th

Min

Grams CO2 equivalent per Kilowatt hour (gCO2e/kWh)

Comparison of GHG emissions for Power Generation

Shale gas in PG … ~40-50% less CO2

Wide range of results from various studies

• Assumptions drive variation in Shale gas carbon numbers

• Power plant efficiency (41-51%)

• GWP (global warming potentials- 25 year or 100 year)

• Well productivity (Bcf per well)

• life-cycle stages considered• Methane loss stages

considered

Sources: NGCC conventional gas estimates from O’Donoughue et al. 20117 published shale gas LCA studies: Burnham et al 2011 Argonne National Lab; Hultman et al 2011 University of Maryland; Relies heavily on EPA Subpart W; Howarth 2011, Jiang et al. 2011, NETL, Tyndall Centre, NYSDEC

Shale avg. 8% over

conventional

Shale avg. 40-50% under

coal generation

Considerations

GE Energy: GE © 2012 – All Rights Reserved

ATOMIC BIOCIDE - DESCRIPTION

•ACTIVE CHEMICAL IS 20 ORDERS MAGNITUDE LOWER THAN COMPETITIVE BIOCIDES

•POLYMERIC BASE – INSOLUBLE IN WATER & INSOLUBLE IN SOLVENTS AND OIL

•THERMALLY STABLE – DECOMPOSES AT 360 C

•SAFE NON - TOXIC CHEMISTRY APPROVED FOR DISINFECTION OF POTABLE WATER

•RESIDUE DISPOSABLE AS NON – HAZARDOUS SOLID

ATOMIC BIOCIDE FUNCTIONING

• KILLS BACTERIA ON CONTACT

• STABLE IN A WIDE RANGE OF pH ENVIRONMENTS

• HALOGEN COMPONENT STABLE I; < 1 ppb RELEASED TO WATER • COST – EFFECTIVE VS COMPLEX ORGANICS

• COMPONENT OF FRACK-WATER RECYCLING SYSTEM

FDA OLIGOMER APPLICATION IN FRACKING

• EASILY EMULSIFIED IN MOST FLUID FORMULATIONS

• HIGH CARRYING SUSPENSION FOR BOTH PRODUCED AND INTRODUCED SOLIDS

• RECOVERABLE BY FLOATATION

• STABLE AT DOWN – HOLE TEMPERATURES

• EXTENSIVE CHARACTERIZATION AT LEADING RESEARCH UNIVERSITY

FDA OLIGOMER FOR HYDRAULIC FRACTURING SYSTEMS

• PURE HYDROCARBON POLYMER –NO TOXINS OR AROMATIC

• FDA FEEDSTOCK - FOOD GRADE APPROVAL APPLIED FOR

• RESISTS OXIDATION - NO SLUDGE FORMATION

• SLIGHT MILD ODOR – HIGH FLASH POINT

• REPLACES PETROLEUM DISTILLATES