The rapidly increasing pace of climate change regulatory action has rendered it necessary for the energy industry to understand the potential impact of carbon constraints on hydrocarbon resource development. Unconventional resources such as gas-to-liquids (GTL) continue to grow in importance in the global energy equation; however, as the industry continues to pursue these opportunities, it is essential to consider the possible effect of climate change legislation on these mega-projects. A systematic approach to evaluating the potential impact of carbon constraints and applying technology-based carbon mitigation strategies was developed to enable future hydrocarbon resource development in a carbon-constrained world. This approach was applied to quantify the potential liability from GTL plant emissions and to evaluate the economic and technical feasibility of mitigating these emissions using carbon capture and sequestration (CCS) technology. A staged evaluation was employed to understand the spectrum of possible impacts of carbon constraints on GTL projects:
The uncontrolled GTL plant carbon dioxide emissions were estimated.
It was assumed that climate change mitigation was required after the GTL plant was commissioned. Carbon capture facilities were added as a retrofit to the existing plant.
It was assumed that the GTL plant was designed with the knowledge that carbon constraints would be imposed during the life of the plant. The plant was designed with a minimal pre-investment for carbon capture facilities.
It was assumed that climate change mitigation was an integral part of the original GTL plant design. Results will be presented characterizing the uncontrolled GTL plant emissions. Additionally, the capital and operating cost of carbon capture using Fluor's Econamine FG Plus technology will be presented.
