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QUESTOR TECHNOLOGY INC.
Technologies to
Monetize Gas at the
Wellhead
Combustion,
Heat Recovery and Power
Generation
Flaring Issues, Solutions and
Technologies
PTTC and EFD Workshop
Morgontown, WV.
September 16th, 2014
Why the focus on flaring
 US EPA and State regulation on emissions
 Opportunities to reduced GHG’s emissions
 Social cost of flaring – Public perception
 Opportunities for the energy
 Energy efficiency – Power, Heat, water vaporization
1
New EPA Regulations
NSPS, 40 C.F.R. Part 60, Subpart OOOO(“Quad O”)
NESHAP, 40 C.F.R. Part 63, Subpart HH(“HH”)
• New Control Technologies (CT) required
• Target Areas:
 New performance standard for VOC’s
 New performance standard for SO2
 Hazardous Air Pollutant (HAP) standard for oil & gas production
 HAP standard for gas transmission & storage
 Recording and reporting for well completions
 Fugitive Emissions from compressors
• Performance test results required by EPA
• Demonstration of compliance 24/7 365 days
2
EPA Completions Requirements
Gas Wells
• Reduced emissions completion ‘REC’ or ‘Green
Completion’
• Public notification
• Reduce VOC emissions by 95% (Reduced Emissions
Completions or REC)
 Until Jan 1st, 2015 – still flare at some sites
 After Jan 1st, 2015 – REC’s or Complete Combustions Device
Reduction of 95% in VOCs and GHGs from 25,000 well fracs
3
US QUAD ‘0’ Requirements
4
Dehydrators & Storage Tanks
Need Control Technology for: HAP, VOC’s, Methane
1. New Source Performance Standards (NSPS)
 40 C.F.R. Part 60, Subpart 0000 (“Quad 0”)
 Storage Tanks VOC’s(> 6 tons/yr or > 0.82 mcfd hydrocarbon)
 Reduce VOC’s by 95%
2. National Emission Standards for Hazardous Air
Pollutants (NESHAP)
 NESHAP, 40 C.F.R. Part 63, Subpart HH (“HH”)
 Benzene from Glycol Dehy (>3 MM scfd or Benzene > 1 Ton/yr)
 Reduce HAP by 95% or reduce Benzene to < 1 ton/yr
Focused on reducing smog, GHG emissions, ozone formation, PM2.5
Sources of Emissions
• All processes generate waste gas
 acid/tail gas
 BTEX/HC dehydrator vapors
 plant and pipeline maintenance
 flow backs, well-testing and workovers
 refinery/gas plant processing operations
 fugitive emissions
 tank vapors
 Associated or solution gas, etc
5
COMBUSTION OF HYDROCARBONS
CH4
+ 2 O2
= heat +
CO2
+
Methane + Oxygen = heat + Carbon Dioxide +
2 H2O
Water
99.99% Combustion efficiency requires the right mixture of
fuel and air
Destruction efficiency is not the same as combustion efficiency
Poor combustion results in the creation of:
 CH4, CO, black carbon soot particulates
 Over 250 compounds
 Volatile organic hydrocarbons or VOC’s - benzene
 Sulfur compounds - H2S, carbon disulfides, mercaptans
 + over 250 other compounds identified in research
6
•
•
FLARING
INCINERATION
Difficult to measure efficiency
and varies from site to site
 Measured independently at 99.99%
Heavily influenced by crosswinds
allowing gases to escape
unburned
 Combustion occurs in a closed
•
Difficulty burning rich gases often
producing soot deposits and
black smoke (BTEX, VOC, PAH)
•
Entrained liquid droplets
decrease combustion
efficiency
•
Poor efficiency with low heat
content gas
•
Visible flame
Based on ARC and U of A Findings:
consistently
chamber unaffected by winds
 High temperatures efficiently burn
rich gas. Air pre-mixed with the
waste gas prior to combustion
 Not effected by liquid droplet
size
 Use 80% less fuel gas with
99.99% combustion efficiency
 No visible flame
Greenhouse Gas Emissions
• The Global Warming Potential (GWP) of methane is
21 times higher than that of CO2 and therefore
inefficient combustion increases the greenhouse
gases emitted
• For example: 19,000 sft3/d (mscfd) of waste methane gas
generates the following CO2 emissions:




T/d
T/yr
Vented
7.6
2,775
65% combustion efficiency
3.3
1,205
80% combustion efficiency
2.3
840
99.99% combustion efficiency
1.0
365
7
99.99% EFFICIENT COMBUSTION
Well Testing
O&G Processing
Italy, Europe
Calgary, Canada
Acid gas
Texas, United States
8
WASTE HEAT RECOVERY
National Geographic September 2005
9
QUESTOR TECHNOLOGY INC
Questor is a leading provider of
safe, clean, efficient, reliable, flared gas
combustion solutions
that utilize the heat generated to provide
power, water and process heat solutions.
Our products enable our clients to
operate cost effectively in an
environmentally responsible and
sustainable way.
10
US And Global Experience
Units deployed;
 California
 Colorado
 Kentucky
 Mississippi
 New York
 North Dakota
 Ohio
 Pennsylvania
 Canada
 Indonesia
 Germany
 Russia
 Thailand
 Netherlands
 West Virginia
 Caribbean
 China

 Wyoming
Italy
 Texas
11
OUR CLIENTS
12
EXPLORATION & PRODUCTION
• Portable Trailer units with
Hydraulics for set up
• Well testing/workovers
• Early production testing
• Post fracturing cleanup
• Flare elimination
Portable Q3000
13
17
Well Completions
• Community support
• Regulatory compliance
• Gas quality not an issue
• Eliminates odor and
visibility
• Low ground heat
• Minimal noise emission
 Best available technology
Europe
Units in parallel
14
Colorado Niobrara – Pad Drilling
Green Completions and Early Production Testing
15
SAFETY
West Stoddart -75% H2S and 25% CO2
16
LOW GROUND HEAT RADIATION
Safety
 Facility integration
 Personnel safety
Minimal heat radiation
 Eliminates fire hazard
 Permafrost protection
Portable Q3000
17
FACILITIES – ONSHORE/OFFSHORE
Q500
•
•
•
•
•
•
•
•
•
Dehydration facilities
Acid gas & tail gas
Amine facilities
In situ operations
Gas processing
Compressor blow downs
Tank vapors
Early Production tests
Maintenance
18
INNOVATIVE SOLUTIONS
GLYCOL DEHYDRATION
HAP/VOC EMISSION DESTRUCTION
•
•
•
•
•
•
•
•
•
BTEX destruction (>99.99%)
EPA Compliance
NO condensing of vapors
NO storage tanks
NO water disposal costs
Integrated package
Reduced footprint
Reduced piping
Minimal fuel use
Q250 West Virginia
19
NO K.O. AND NO CONDENSING
20
DEHYDRATION ECONOMICS
First Year Economics (Actual Case)
Thermal oxidizer destroys benzene (HAP) emissions and results in facility
compliance (EPA)
Thermal Oxidizer
• Q250 thermal oxidizer capital cost
• Annual cost1 to operate
$145,000
$ 16,500
Total cost of T.O. Option:
$161,500
Condensing Regenerator Overheads
•
•
•
•
Condenser capital cost
$100,000
Condenser operating cost (annual)
$
Trucking and disposal of fluid2
$106,600
Combustion device for the uncondensables
$ 50,000
Total Condenser Option:
1Fuel
5,500
$262,100
cost is $2.50/mcf
28,200
gallons/week at $0.25/gallon for trucking and disposal
21
TANK VAPORS TIED-IN DIRECTLY
NO KNOCKOUT OR VRU NEEDED
22
HEAT UTILIZATION
 Heat from clean combustion of typically flared
gas at 99.99% efficiency – Other sources of heat
 Recover and utilized the heat
 Water vaporization/steam generation
 Power generation
 Process and utility heat
 Hydrate prevention
 Heating up oil and water
 Benefits: Economics, Environment, Social license
to operate
 Conservation of the gas in an economic
way
25
23
CLEARPOWER SYSTEMS INC
ClearPower’s is a leading provider
Organic Rankine Cycle power
generation technology utilizing waste
heat.
Integrated with QTI’s incineration
solution we can provide power cost
effectively from waste streams
reducing greenhouse gas emissions
at less than $1.50/tonne of CO2eq.
24
POWER GENERATION
Power for:
• Compressor
• Pumps/motors
• Amine regenerator
CONDENSER
EXPANDER
Generator
HeatQuest
Exchanger
Clear Power
Organic
Rankine Cycle
(ORC)
Power Plant
Pump
EVAPORATOR
Waste gas
Combustion
Flow back/well test
P-Tank
Pump
Well Head
25
Organic Rankine Cycle Waste Heat to Power
26
27
CHP AND IMPACT ON GHG’S
• Power Generation from Heat
 50 kW from 12 MM btu/hr of waste gas in
Q500
• Each 50 kW WHP reduces GHG by 13,750
tonnes/yr
• Cost per tonne of GHG reduction is $1.24
• Compare with carbon sequestration ranging
from $90 – 120/tonne1a to $300-1,100 per
tonne2b
1Carbon
2Science
Capture and Storage Association
(a) http://www.ccsassociation.org/why-ccs/affordability/
Magazine
(b) http://news.sciencemag.org/2011/12/capturing-co2-too-costlycombat-climate-change
Waste Heat Market – Potential Sites
Well Served by Ormat, GE, Turboden, Turbine Air Systems,
Atlas Copco
100s
(>10 MW)
1,000s
(5 – 10 MW)
10,000s
(1 – 5 MW)
~100,000
(100 kW – 1 MW)
Virtually Un‐Served Market
Opportunity
1,000,000s
(< 200 kW)
Partially Served
by GE / Calnetix ClearPower target market
28
Relative Cost of ORCs
$/kW
Installed
Capacity
Generator Output Size
Opportunity
29
CONCLUSIONS
• Solutions needed to address regulation, landowner
issues, social license to operate.
• Regulatory compliance and minimizing CO2e, VOCs and
Hazardous Air Pollutants
• Clean combustion creates opportunities to utilize the
heat – especially when the stream has minimal value
• Must make business sense, reliable, safe and
environmental
• 3-4 year payouts on CHP in $0.10 kWh market
• Demonstration sites showcasing the opportunities
30
COST REDUCTION FOR
CLIENTS
PUBLIC CONFIDENCE
QUESTOR TECHNOLOGY INC.
ENVIRONMENTAL
PROTECTION
www.questortech.com
TSXV – “QST”
#1121, 940 – 6th Avenue S.W.
Calgary, AB, Canada
T2P 3T1
(403) 571-1530 (Phone)
(403) 571-1539 (Fax)
Ritchie Stagg
Director of Sales and Marketing
(403) 539-4374
[email protected]
APPENDIX
QUESTOR STOCK DESIGNS
MODEL
DESIGN FLOW*
(mscfd)
HEAT CAPACITY
(MM btu/hour)
Q20
20
1
Q50
50
2
Q100
100
4
Q250
250
10
Q500
500
20
Q1000
1000
40
Q3000
3000
120
Q5000
5000
200
*Methane equivalent heating value
ENGINEERED FUEL TRAINS
INEFFICIENT COMBUSTION
Upstream
Refining
Flare Pit
Canada
Middle East
Africa
HOW THEY WORK
• Proprietary gas burner
control creates a high
velocity vortex
• Air is naturally drawn in
• Air and fuel is pre-mixed
• Refractory
lined chamber
o
 2350 F stack top temperature
• High efficiency VOC and
HAP destruction
• Optimal SO2 dispersion with
velocity, temperature and
effective height
>99.99% COMBUSTION EFFICIENCY
Questor’s incinerators have been independently tested to
demonstrate a combustion efficiency greater than 99.99%.
CLIENT
Vacquero (2004)
Shell Canada (2000)
Exxon/Mobil (1998)
Encana US (2007)
TransCanada (2003)
EPA US (2007)
ARC Resources (2002)
TRC (2012)
Enbridge
AFAB Tire Recycling
APPLICATION
BTEX/ C1-C30+
H2S / HC
H2S / HC
BTEX & VOCs
Methane
VOCs
H2S
VOCs
BTEX/VOCs
Chlorinated HC
Test results support a combustion efficiency >99.99%
Destruction efficiency is not the same as combustion efficiency
NFPA 86 COMPLIANCE
• Electronically controlled Burner Management System
(BMS) designed for natural draft systems





Fully automated safety interlocked start-up process
Continuously monitored pilot flame
Manual Emergency Switch
Valve proving system
Excess Temperature limit interlocked
• Safety Shutdown Valves for Pilot and Main Fuel Gas
• Isolated, regulated and controlled gas supply for Pilot
•
and Main Fuel Gas
Pressure shutdown switches on Main Fuel Gas line for
over and under pressure
• Appropriate test points for pressure indication
• Components are combustion gas rated for
commercial/industrial use
NFPA BMS COMPLIANCE
NEXEN
CALGARY
34 % H2S
“The use of the Questor
Incinerator for combusting
the sour gases (35% H2S)
vented from the well and the
inclusive method that Nexen
used when planning the
project allowed for smooth
passage of the workover
with the EUB, the City of
Calgary, the Municipal
District of Rockyview and
the many residential
stakeholders.”
Oilweek Jan 3 2005
19
OIL BATTERY- SOLUTION GAS
Cabre/Enerplus Facility
Sour produced gas and vapors from
production tanks
• Sour rich solution gas – 1,620 btu/scf
• Formerly a smoky flare and odor at
site
• Flow rates between 50 - 950 mscf/d
20 to 1 turndown
• Single thermal oxidizer combusting
multiple streams at variable rates,
pressures and compositions
Q500
4
Hi Audrey I hope you are well
I'm working on something to present to the UK shale sector as it still seems to be struggling to get off the ground and the “anti‐ frackers” seem to be gaining ground each week, recent applications to drill test wells have again been rejected by the local councils with differing reasons for the rejections.
Anyway I have an idea I want to put forward to the UK Onshore Operators but I need some real professional help and support, my idea is to create “road show” type events in the main areas where Shale is prevalent and instead of the operators supplying engineers and local councillors (who have no experience) being wheeled out to nod their heads I would like to gather together real industry experts who can address the specifics of the issues being raised.
One of the issues that keep being bandied around is the bad gases from a test well while flaring, now we both know there is a proven reliable alternative but no one seems to be aware of the technology or doesn’t see the link……..
I look forward to your response 45
COMMUNITY ACCEPTANCE
Nexen
In Calgary 2012
34 % H2S
7
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