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BP and Edison Mission Group (EMG), a subsidiary of Edison International, today announced that they are planning a new $1 billion hydrogen-fueled power plant in California that would generate clean electricity with minimal carbon dioxide (CO2) emissions.
The first-of-its-kind plant would be located alongside BP's Carson refinery, about 20 miles south of Los Angeles, and would be capable of producing 500 megawatts (MW) of low-carbon generation, enough power to serve 325,000 Southern California homes.
BP and EMG hope to complete detailed engineering and commercial studies in 2006, finalize project investment decisions in 2008 and bring the new power plant online by 2011.
Potential project benefits include:
Providing 500MW of new clean generating capacity for Southern California at a time when state agencies are predicting possible power supply shortages during the coming years
Eliminating four million tons of CO2 per year from the atmosphere by sequestering it underground
Enabling additional production from existing California oil fields, producing previously unrecoverable oil reserves by injecting the CO2 into oil reservoirs, where the CO2 would be permanently stored
Boosting the Southern California economy with 1,000 construction jobs and 150 permanent operational positions
Increasing the diversity and supply of US indigenous fuels available to generate electricity.
Preserving limited fresh water sources by using recycled and treated city waste water for plant needs
The proposed Carson project would combine a number of existing industrial processes to provide a new option for generating electricity without significant CO2 emissions. Petroleum coke produced at California refineries would first be converted to hydrogen and CO2 gases and around 90 percent of the CO2 captured and separated.
The hydrogen gas stream would be used to fuel a gas turbine to generate electricity. The captured CO2 would be transported by pipeline to an oilfield and injected into reservoir rock formations thousands of feet underground, both stimulating additional oil production and permanently trapping the CO2.
California Governor Arnold Schwarzenegger, speaking at today's project announcement in Carson, attended by BP, EMG and state and city officials, said: "I want to thank you for choosing California. This will be the first plant of its kind in the whole country and I think it is a perfect fit for our state. With our Strategic Growth Plan, a commitment to Air Quality, and innovative projects like this Hydrogen Plant, I know we can have clear skies, improve our quality of life and build a stronger, more vibrant economy for California."
Ross Pillari, president of BP America, said: "Wide-scale deployment of technology such as hydrogen power can make a significant contribution towards the reduction in greenhouse gas emissions needed worldwide. California is a natural location for this project. Both the state and federal government have challenged businesses to take a leadership role in tackling carbon dioxide emissions. With this project, we expect to make a meaningful contribution to those goals."
"The Carson project has the potential to provide new, environmentally sound electricity generation at a time when California's growing economy needs additional power supplies," said John Bryson, chairman of EMG parent company Edison International.
Final project investment decisions will follow further study by the partners and review by the California Energy Commission and the South Coast Air Quality Management District. BP and EMG are beginning project discussions with state and federal government agencies and local stakeholders and are exploring options for selling the electricity the plant would generate. BP is in discussions with Occidental Petroleum to develop options for sequestering the CO2 in Occidental's California oilfields.
The costs of hydrogen power are higher than those of traditional power plant fuels. As a result, the project will depend, in part, on incentives provided in the Federal Energy Policy Act of 2005 for advanced gasification technologies. In addition, continued progress on the California Public Utilities Commission's electricity "resource adequacy" procurement policies will encourage this first-of-its-kind facility.
Also
Hydrogen Power
Peterhead Hydrogen Power Project
BP's initial hydrogen power project at Peterhead, Scotland, is the world's first industrial-scale hydrogen power project and is designed to reduce greenhouse gas emissions by capturing carbon dioxide (CO2) and safely storing it permanently.
The project will bring together for the first time in a single integrated scheme a number of technologies already operating at scale around the world.
The plant will convert natural gas from North Sea fields into hydrogen, a clean-burning gas, and CO2. The hydrogen gas will be used to fuel a 350 mw power station while 1.2 million tonnes of carbon dioxide per year will be transported offshore and stored in deep underground oil reservoirs where it will be used to enhance oil production.
When completed, the plant will be the largest hydrogen-fired power generation facility in the world, producing 350 mw of low carbon electricity, enough to power a quarter of a million homes in a city the size of Glasgow.
At the heart of BP's first decarbonised fuels project is a natural gas reformer and carbon capture facility where natural gas is transformed into hydrogen and carbon dioxide (CO2). The facility will capture 1.2 million tones of CO2 while a converted power plant will use the hydrogen as a fuel to generate 350 mw of electricity.
Project Overview:
First industrial scale installation of an integrated hydrogen power system.
Planned for Peterhead in North East Scotland.
Will take natural gas from North Sea fields and convert it to hydrogen and CO2.
Hydrogen will then be used as fuel in Scottish & Southern Energy's Peterhead power station, generating 350 mw of low carbon electricity enough to power a quarter of a million homes in the UK in a city the size of Glasgow.
1.2 million tonnes of carbon dioxide per year will be transported by pipeline and injected for enhanced oil recovery and permanent geological storage in the BP-operated Miller field.
Injecting the CO2 into the Miller field reservoir more than 4 kilometers under the seabed will extend the life of the field by about 15-20 years and enable production of an additional 40 million barrels of oil.
The project's reformer plant will convert up to 70 million cubic feet of natural gas per day into CO2 and hydrogen.
The project would require total capital investment of about $600 million.
Timeline
Initial engineering feasibility studies have been completed
Front-end engineering and design is now underway and targeted for completion in the second half of 2006
After the project is sanctioned, construction will require 36 months
Location
Onshore: The project's hydrogen reformer and power station will be located at Scottish & Southern Energy's Peterhead power station in Aberdeenshire.
Offshore: The project will transport CO2 via existing pipelines to the Miller field, located 240 kilometers offshore.
Impact and Significance
Miller Field
The Miller field is currently due to cease production in 2006/7 but the injection of CO2 into the reservoir could increase the amount of oil extracted from the field, potentially allowing the production of up to 40 million additional barrels of oil and extending the life of the field by 15 to 20 years.
Milestones
When completed, the project will set several milestones for the industry and the UK, including:
Largest CO2 enhanced oil recovery project in the North Sea, 40 million barrels.
First CO2 pipeline in the North Sea.
First CO2 storage in an offshore oil reservoir.
Largest hydrogen-fired power generation facility in the world.
Economic Impact
The project has the potential to create new economic development opportunities in North East Scotland by expanding the region's traditional strengths in the offshore oil and gas industry to now include carbon capture and storage technology products and services.
About 200 construction jobs may be created during construction of the onshore facilities.
About 100 permanent jobs may be created at the enlarged operation at the Peterhead Power Station.
Partners
BP
Scottish & Southern Energy
Shell
ConocoPhillips
and
To address the challenges associated with developing a ’Hydrogen Economy’, BP is providing the infrastructure for many of the world’s hydrogen demonstration projects.
These projects bring together the key partners in a hydrogen future: energy companies, auto-companies, and governments.
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Barcelona, Spain: BP provides the refuelling infrastructure for three hydrogen fuel cell powered public buses.
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Hamburg, Germany: In conjunction with partners, BP provides the refuelling infrastructure for three hydrogen fuel cell powered public buses.
Stuttgart, Germany: In conjunction with partners, BP provides the refuelling infrastructure for three hydrogen fuel cell powered public buses.
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Porto, Portugal: BP provides the refuelling infrastructure for three hydrogen fuel cell powered public buses.
Berlin, Germany: BP develops a public refuelling station combining a range of alternative fuels.
Perth, Australia: BP provides the refuelling infrastructure for three hydrogen fuel cell powered public buses.
London, United Kingdom: BP provides the refuelling infrastructure for three hydrogen fuel cell powered public buses.
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Munich, Germany: BP’s Aral subsidiary provides the infrastructure to fuel airside vehicles at Munich airport.
Singapore: BP provides the refuelling infrastructure to fuel hydrogen powered passenger cars.
Los Angeles, United States: In conjunction with partners, BP provides the refuelling infrastructure to fuel hydrogen powered passenger cars.
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