OPTIMAL IMPLEMENTATION OF CO2 CAPTURE TECHNOLOGY IN POWER AND HYDROGEN PRODUCTION FOR OIL SANDS OPERATIONS

The forecasted demands for electricity and hydrogen for oil sands operations in Alberta, Canada in the years 2012 and 2030 were optimized under CO2 emissions constraints, using a mixed integer linear optimization model. The model features a variety of technologies (with and without CO2 capture), including coal and natural gas power plants, gasification, and oxyfuel plants. Hydrogen production technologies are steam methane reforming and coal gasification. The optimization is executed at increasingly stringent CO2 emissions levels, yielding unique infrastructures that satisfy the energy demands of the oil sands industry at minimal cost. The economic and environmental impacts of the optimally chosen technologies on the forecasted operations of the oil sands industry in 2012 and 2030 are thus determined. The maximum CO2 emissions reductions attainable by implementing carbon capture in the hydrogen and power plants supplying the oil sands industry in 2012 and 2030 are 25% and 39% with respect to a business-as-usual baseline, respectively. This carbon emissions reduction causes energy cost increases ranging from 13% to 20% for synthetic crude and 2% for bitumen. The maximum achievable CO2 emissions intensity reduction is 31% (2012) and 46% (2030) for synthetic crude and <3% for bitumen. The optimal energy production technologies are strongly dependent on the CO2 reduction targets. Based on the optimization results, natural gas-based power production, particularly oxyfuel and combined cycle with CO2 capture, have great potential for achieving significant carbon emissions reductions. For H-2 production, gasification (with and without capture) is an optimal technology for oil sands operations.