COVER SHEET FOR PROPOSAL TO THE NATIONAL SCIENCE FOUNDATION 4/28/2006 1500554983
Transcription
COVER SHEET FOR PROPOSAL TO THE NATIONAL SCIENCE FOUNDATION 4/28/2006 1500554983
COVER SHEET FOR PROPOSAL TO THE NATIONAL SCIENCE FOUNDATION DATE RECEIVED AWARDEE ORGANIZATION CODE 4/28/2006 1500554983 NAME OF ORGANIZATION TO WHICH AWARD SHOULD BE MADE DEEP OCEAN ENERGY SYSTEMS (DOES) FOR NSF USE ONLY ADRESS OF AWARDEE ORGANIZATION NSF PROPOSAL NUMBER 150 W UNIVERSITY BLVD MELBOURNE, FL 32901 TITLE OF PROPOSED PROJECT METHANE HYDRATE RECOVERY REQUESTED AMOUNT PROPOSED DURATION $359,000,000 83 months NAMES High Degree Yr of Degree Telephone Number PI/PD 2002 321-674-8096 Eduardo Gonzalez Ph.D CO-PI/PD MS 2002 542-654-6515 Maila Sepri CO-PI/PD MS 2002 515-651-6518 Hunter Brown CO-PI/PD MS 2005 611-651-1654 Michelle Rees CO-PI/PD Ph.D 2003 941-615-6515 Zak Pfeiffer CO-PI/PD MS 2004 519-541-4762 Adam Outlaw 0700015 REQUESTED STARTING DATE 6/1/2007 Electronic Mail Address [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] PROJECT SUMMARY The proposed project consists of research, design, construction, trial period and a 22-year operation life of a system for recovering methane from hydrate deposits located on the ocean floor, under approximately 3000 meters of water. The purpose of mining methane hydrates is to obtain an economically viable, environmentally friendly, and safe energy source as an alternative to fossil fuels. An overall design is presented, and fundamental details of individual components of the system are given, along with a timeline for developing and installing the system. The methane hydrates deposit and proposed location of the facility is located 270 km southwest of the Port of Morehead City in North Carolina. The Port of Morehead is equipped with optimal depth channels and large turning basins, and it has a small tidal range, making it an operationally safe port. The port infrastructure can handle break-bulk and bulk cargo with access to Interstates 95 and 40 via U.S. Highways 70 and 17 and daily train service from Norfolk Southern. A 600 m long LNG tanker can travel between the port and methane recovery facility in approximately 2 hours. The 6th generation Aker H-6e semi-submersible, selfpowered rig was selected for surface structure and a variety of small support ships will serve as crew transportation and supply replenishment. The methane recovery system piping will be made of composite pipes and will be powered by Caterpillar diesel engines and Triplex pumps. Throughout the extensive pipe system, there will be an expansion chamber and a processing facility to simplify operation at the semi-submersible rig. The processing facility will be a deployed using an InterOcean System. Within the facility, there will be compartments for two drill crawlers with the necessary drilling equipment, two cable spools, one auxiliary ROV, the methane processing plant and the electronics, sensors and control systems required to maintain an optimal and safe underwater operation. The crawlers will work in conjunction with the processing facility to transfer filtered methane to the semi-submersible rig. These will be responsible for accessing the methane reserve and maintaining its stability. To do so, various sensors onboard will monitor the flow of methane through the drill risers and connecting pipes. The control system will be implemented by computers and programmable logic controllers (PLCs), which monitor valve states, fluid levels, and pipe pressures, open and close valves, trigger alarms, or releases pressures. The controllers are part of the Supervisory Control and Data Acquisition (SCADA) system. The SCADA system allows the crawlers to operate autonomously while reporting to a host computer, which in turn provides an operator interface to the system as a whole. The proposed facility would have a maximum extraction rate of 6,585,158 m3/day, which corresponds to an estimated profit of 16.06 billion dollars a year. The entire operation, will use 110 staff members at all time, costing approximately $7.7 million in labor cost and the operational cost will approximate $365 million a year. A total profit operation profit of $15.69 billion is expected in one year. 1 TABLE OF CONTENTS I. Project Description……………………………………………………… 3 i. Results from Prior NSF Support………………………………… 3 ii. Introduction…………………………………………………….. 3 iii. Project Plan……………………………………………………. 6 iv. Management Plan……………………………………………… 12 v. Evaluation/Assessment Plan……………………………………. 13 vi. Dissemination………………………………………………….. 14 vii. Summary………………………………………………………. 14 II. References Cited…………………………………………………........... 15 III. Biographical Sketches…………………………………………………. 16 III. Budget………………………………………………………………….. 18 i. Budget Justification……………………………………………… 20 IV. Current and Pending Support………………………………………….. 20 V. Facilities, Equipment & Other Resources……………………………….21 VI. Special Info & Supplementary Documentation……………………….. 21 VII. Appendices……………………………………………………………. 22 2 I. PROJECT DESCRIPTION i. Results from Prior NSF Support Not applicable. ii. Introduction Fossil Fuel Projections As society becomes increasingly technological and mobile, the world’s demand for electrical power and fuel is growing at an increasing rate. Worldwide oil production is projected to escalate over the next decade to meet this demand, but unless planning is begun now we will face declining energy availability as reserves diminish and/or demand exceeds the production growth rate. Furthermore, the decrease in continental reserves has shifted focus toward deepwater drilling, meaning that accessing even proven reserves is becoming an increasingly challenging process. It is therefore integral for the US, which consumes over a quarter of the world’s oil, to develop an alternative to its oil dependence. Methane Availability and Potential Power Among the most promising alternatives to oil is methane. The environmental and practical benefits of using methane explain its appeal: it releases less CO2 upon combustion than any other hydrocarbon and does not produce atmospheric particles. Although it can cause suffocation when inhaled in great concentrations, methane itself is nontoxic. Conveniently, existing engines can be modified to use methane as a fuel source (Arai 2), and methane is stable in storage. Perhaps the most important factor is that methane exists in large quantities beneath the oceanic shelves that surround each continent. According to a 1993 U.S. Geological Survey (USGS) report, 2830 to 7,645,550 trillion m3 of gas exist worldwide (Maynard 28, “Methane Hydrate”). Between 3200 and 19,140 trillion m3 of this is estimated to be in the US, with the mean approximate being 9060 trillion m3. This is compared to the estimated volume of US natural gas reserves: less than 31 trillion m3 (“Resources”). Since natural gas is composed primarily of methane, the heating value of the gas in hydrates is even greater than that of natural gas, and thus a direct volumetric comparison yields a conservative energy capacity estimate for methane. As such, one cubic meter of commercial quality natural gas combusts to yield 10.6 kWh. Using the mean volume estimate, the US should be able to supply itself with 97 trillion MWh using methane hydrate reserves. Blake Ridge Statistics The target mining field is Blake Ridge, a hydrate reservoir located on the continental margin about 400 km off the coast of South Carolina, USA. The field covers approximately 450 km long and 100 km wide, and the center of its largest pockets has coordinates 32.75°N 75.82°W. These hydrate stability zone occurs between 2000 and 4800m of depth and are covered by 200 to 750 m of sediment (Flemings 1057). The field’s location on the edge of the continental shelf imparts a 0.5° to 4° grade to the silty/sandy sea floor. Blake Ridge is also located on the edge of the Gulf Stream and therefore experiences 10C-27C temperatures and currents that may exceed 1 m/s. Typical wind speeds range between 5.1 and 20.5 m/s, while waves vary from 1.22 to 6.71 m. These 3 values can escalate drastically in the event that an Atlantic hurricane passes through the region. Overall, the field is estimated to contain between 37 trillion (Dillon) and 85 trillion cubic meters (Dickens 428) of hydrates distributed in 3 main pockets. In addition to solid hydrates, a large portion of the methane is expected to be trapped in free gas form below the solids. Although the entire subterranean field has not yet been mapped extensively, the Ocean Drilling Program recorded a 29-m thick interconnected free gas column directly below the hydrate stability zone at one of its sites (Flemings 1057). Cyclical burial and dissociation with recapture beneath the very low-permeability hydrates is the proposed reason behind the presence of this free gas. Flemings et al. conclude that this gas column has nearly equal pressure across large regions (1059). It is the presence of this free gas, as well as its contact with methane in the hydrate form, that motivates the design behind this system. Challenges to Methane Hydrate Recovery One reason that methane hydrates have not already been developed as an alternate fuel source is that information on their properties is limited and complicated to research. Of major concern is the dissociation process that occurs when hydrates are exposed to temperatures above or pressures below their stability zone. Oil rigs’ drilling through hydrates has caused submarine explosions and landslides as pockets of methane burst to the surface. The National Energy Technology Laboratory is sponsoring development of sonar, seismic, geothermal, geochemical, and visual survey techniques for locating reserves. Recent advances in laboratory production of hydrates are also shedding light on their physical properties. This research has contributed to better phase diagram determination, and with continued investigation some of the very properties that make hydrates precarious can be utilized advantageously. Other challenges to hydrate recovery stem from the logistics of their location. Besides being buried at depths and pressures greater than are currently typical for continuous oil operations, the approximately 5° slope of the shelf and frequency of hurricanes in the Blake Ridge vicinity add further risk to operations. Hydrates must be safely transported 270 km to shore, and plans for shifting the entire rig efficiently should be made for site changes and in case evacuation becomes mandatory. Precedents The trend in oil drilling is turning toward deepwater reserves, and current projects include drilling at depths up to 2000m (Barnes 50). Accidental hydrate penetration shows that this “deepwater” realm already includes hydrate-rich zones. Oil companies are currently developing technology to deal with these depth challenges, so a few hardware components are already available for use in hydrate mining designs. Since oil companies will encounter hydrate pockets as they plunge deeper, it is preferable that the methane be harvested rather than wasted as it enters the atmosphere. Although large-scale recovery of hydrates has not been widely implemented, the depressurization method has been used in Russia’s Messoyakha gas fields to extract methane from hydrates under the Siberian permafrost. 4 Design Motivations and Overview In order to achieve economical, safe, and energy-efficient extraction of methane, the rig has been designed to take advantage of hydrate dissociation under decreased pressures. Since maintaining elevated temperatures is energy-intensive over large distances, and chemicals have lasting environmental impacts, pressure is the best control parameter. The basic design, as shown in Figure 1, incorporates two seafloor ROV crawlers that moor themselves above a free gas pocket, drill through the overlying hydrate, and extract gas. The hydrates above the gas pocket dissociate as methane travels up pipes to the surface rig. The surface storage system also minimizes its energy consumption by utilizing subsurface dissociation pressures to compress methane as it reaches surface tanks. Proven transportation methods are Figure 1: Methane Recovery System Diagram used to minimize the environmental risk of transferring the gas to the mainland, and the system sustainability over a lifetime of 22 years is considered. Implementation Process America, which consumes over a quarter of the world’s oil, would greatly benefit from finding a domestically-produced alternative energy source. Implementing a new system takes time, however, so preparations must begin now. The steps involved in developing methane hydrate mining are (1) researching the Blake Ridge location for topological specifics, (2) designing the recovery rig, (3) manufacturing prototype parts and testing them, (4) assembling and installing the rig, and (5) bringing it into production. Step (2) has already begun, as this proposal demonstrates. In order to complete this step, however, more surveys on exact hydrate locations and the accompanying environmental conditions must be conducted. Current research is shedding light on detection techniques, and developments in this area will greatly aid the processes outlined in the remainder of this project description. iii. Project Plan The primary goal of this project is to harvest the maximum amount of methane gas with the least affect on the environment, in the fastest amount of time, and with the lowest costs, so that it is a viable alternative energy source. Objectives 1. Knowledge of Methane In order to accomplish each of the primary objectives, the behaviors and properties of methane must be completely understood. Also, the environment in which extraction will be taking place will have a substantial effect on the project design and management plan. 5 Our Methane Hydrate Specialist has completed sufficient research for designs that optimize harvesting techniques and transportation to be made. Previous sampling and studies have been done on methane that focus on it is behavior at deep sea levels. Russian and Alaskan core sampling rigs have successfully extracted small methane hydrate cores. However, the ability to take large cores has not yet been made possible due to instability of the molecules in hydrate form. Laboratory experiments have further emphasized the difficulty in handling methane hydrates. Because of these findings, and because of evidence that interconnected pockets of free gas exist directly under the hydrate fields (Flemings 1059), the methane will not be harvested in hydrate form. Instead, the drill will penetrate below the hydrates to pockets where gas will be extracted. It is important to consider the phase changes that the hydrates undergo due to temperature and pressure. These impose limitations of the usage of most equipment that is currently used for high pressure, low temperature marine environments. By knowing this, the sub-sea equipment can be specifically designed or purchased for our uses. 2. Drill Safely and Efficiently At each site, the drilling operations will entail boring two holes through the sediment and methane hydrate layers into gas pockets below. Due to a pressure difference between the interior of the drill pipe and the gas cavity, the gas will be forced up the piping to the seafloor processing facility. After the initial drop in pressure, the pressure inside the cavity and the extraction rate will be controlled using the second pipe, which inserts replacement fluid to fill the void that is created. Referring to a phase diagram of methane hydrates, when pressure is dropped to 30.4MPa the hydrates will dissociate into gas. At the drilling location, the methane hydrates that form a ceiling above the gas pockets will dissociate, therefore providing a continuous flow of gas to the processing facility until the maximum possible amount is removed. A balance in pressures must be maintained to prevent rupture of the overlying sediments. The pressure in the cavern must not exceed the combined strength of the seafloor sediments under the oceanic pressure head, and it must not drop so low that the cavern collapses and releases all the gas. A methane hydrate layer of certain thickness must therefore remain intact to ensure sea floor stability. This safe thickness is not standard for all sites; it must be determined based on what Flemings et al. refer to as the pore-water overpressure (1057). This pressure is based upon sediment porosity, the hydrostatic pressure head, and bulk compressibility. The amount of gas that can be extracted is limited by the size of each gas pocket and hydrate deposit porosity. A seismic survey of the methane hydrate and gas location and volume will allow the larger zones to be targeted, which will be utilized first. Relocating sub-sea facilities would require more time and greater costs. The drilling substation crawler will be deployable from a topsides vessel with a through-hull deployment space along with the central benthic substation. Two crawlers will work in conjunction with the benthic substation to supply filtered methane to the topside vessel. These crawlers are responsible for traveling to their drilling positions, securing themselves to the seafloor, situating drilling bits, and securing drilling risers and connectors between internal piping connections and the substation. After the vehicle is in position and drilling has begun, the various sensors onboard will monitor the flow of methane through the drill risers and connecting pipes. Emergency measures will include 6 electro-mechanical cut-off valves that are directly linked to sensor data at each junction of the system. The crawler will have automated tool selection. The ability to accurately assess the substrate characteristics, determine proper tooling, and efficiently replace bits is crucial to the underwater drilling operation for methane hydrate. The crawler has the following details: • Automatic tool interchange • Automatic stall sensing / correcting • Onboard flow control and sensing • Internal and external emergency mechanical shutoffs • Real time data throughput • Autonomous report generating • Tether (remote) control or autonomous operation 3. Automated Functions Having this drilling platform in thousands of meters of water and also in an area frequented by hurricanes (Blake Ridge) makes it susceptible to needing its crew evacuated. However, the platform must operate as continuously as possible to ensure maximum profits. To solve this problem and increase the efficiency of the rig, laborintensive, repetitive tasks such as opening and closing valves, monitoring methane levels, and performing transfer functions at given intervals will be completely automated. This will significantly decrease labor costs and ensure timely completion of tasks. Automation will be accomplished through a control system consisting of computers and microcontrollers. Microcontrollers and programmable logic controllers (PLC’s) are industrial logic devices with multiple inputs and outputs that store alterable computer programs. They can be programmed to continuously monitor and handle routine operations. PLCs can monitor valve states, fluid levels, and pipe pressures, as well as open or close valves, sound alarms, or release pressures, according to the actions programmed into them. The micro-controller and PLC are parts of the Supervisory Control and Data Acquisition (SCADA) system. This is a generic name for a computerized system that is capable of gathering and processing data and applying operational controls over long distances. The SCADA system allows these parts to operate autonomously while reporting to a host computer, which provides an operator interface to the system as a whole. There are other components of the SCADA system such as a PC, which acts as the LAN controller, and man-machine interface (MMI) software that allows a graphical representation of the system. The SCADA system designed for the methane recovery system has an architecture centered around the CPU on the surface ship. Operators can enter long-term drilling plans and information into the system via the MMI. These plans are processed, and the relevant instructions are distributed to the rest of the system as needed. The majority of the commands are sent to the PC104 stack in the seafloor processing facility, which calculates and distributes commands to microcontrollers in the drilling crawlers and the facility itself. The simpler programs on the microcontrollers convert logic to mechanical control by commanding pump, valve, drill, and crawler chassis states. In 7 addition to the processing facility, the surface CPU commands storage tank microcontrollers. Using a SCADA system enables platform operations to take place smoothly with results reporting in a timely manner to a central monitoring point, where the operator may fine-tune system parameters as necessary. The operator of the platform can change alarm set points, monitor and control tank levels, maneuver and monitor wells and pipelines, and shut down or start up the rig. The micro-controllers and PLCs continue to run the platform autonomously unless alarms indicate that the drilling needs to stop to prevent damage to the platform. An electrical system integrating these devices with the main sources of power, electrical generators, electrical motors, and instrumentation is essential to make drilling and harvesting operations easier, more efficient and, most importantly, safe. It is critical to minimize the amount of human tasks to lower workforce and room for human error. Finally, this system will allow for maximized profits by allowing continuous harvesting through most weather conditions. 4. Surface Facility Selection For this operation, the 6th generation Aker H-6e semi-submersible drill rig design has been selected. The distribution of the methane hydrate fields requires the selected drilling platform to be mobile to reduce cost and over the total project duration. Methane is a dangerous substance to handle in the best conditions. Attempting to extract and house mass quantities while at sea exposed to elements requires a stable platform that maintains its stability even in harsh conditions. This semi-submersible design will supply the greatest stability, which is required for the delicate handling of the methane. Its large pontoons are flooded with water and/or materials and equipment; this lowers the center of gravity and allows the rig to be supported by a base that is below the surface. The 18.5-meter gap between the pontoons and the surface structure reduces the wetted surface area susceptible to wave energy transfer, enabling the rig to effectively handle wave heights up to 36 meters. It is fully winterized and allows for year-round operation under harsh conditions. Moorings needed for this project include the subsurface processing facility and weather or data buoys. The surface ship will not need to be moored as it will be dynamically positioned. This task will require ample surface space for the many specialized facilities required, such as: LNG containers, housing, drill station, ROV control center, LNG process center, and multiple LNG transfer stations for offloading to transfer ships. The H-6e has 92,5x70 m (6475 m2) of deck space, making it the largest semi-submersible rig to date. This deck space allows for custom placement of all the facilities needed for this unique task. It has flexible housing that will allow customization for this project’s needs and living accommodations for over 140 people. Since only 110 workers will be needed on the rig during operations, some of the extra space can be used for housing technical equipment. This task requires the drilling to take places at depths of over 2,500m. The H-6e is capable of drilling to 3050m. Also, space for the deployable processing station will be needed during transportation. The large gap between the pontoons and the deck allows ample room for the processing station housing and deployment equipment. 8 Support is required in the form of supplies for the equipment and crew on board, as well as LNG transfers ships to ferry the cargo back to the mainland. Emergency and safety support will also be required. The H-6e’s ample deck space allows for the placement of numerous offload points from the LNG containers on deck to the LNG support ships. Multiple offload stations will allow for increased extraction rates. Safety precautions include life boats on board and a helicopter landing pad for emergency and small group transport. 5. Minimum Power Use The main source of power on the semi-submersible rig will be from multiple large, diesel engines that power electrical generators which in turn provide electrical power to various locations on and under the platform. These diesel engines will be powered by diesel fuel kept in storage tanks on board. The mechanisms powered from these diesel engines and electrical generators topside include the main control tower, pumps for transporting methane to transporting ship tanks, winch operations lowering and retrieving processing plant and drills, any communication with land or other ships, and lighting or any other low current electrical devices for living quarters. Due to the complexity of the sub-sea processing facility and drill carriage, there are various options for current supplies powering the devices simultaneously. Everything underwater will be powered by batteries charged by methane cells or direct current from the surface, in turn reducing power fluctuations. The feasibility of utilizing readily available methane in a self-sustaining power system will be re-evaluated as methane fuel cell technology develops during the initial stages of this project. Currently experimental fuel cell power plants are testing the viability of using excess coalmine methane. While cells producing 200kW have been installed (Haskew), current issues to address are oxidation agents and efficiency of operation at depth. Any methane cells on the processing plant will have storage tanks to supply methane during initial drilling (a maximum of three days) and in periods of low extraction. Also, an additional pipe will be connected from the surface allowing oxygen or extra methane to be pumped to the cells. 6. Efficient Sub-Sea Repair The integrated sensor and computer systems have been specially designed to detect errors in the system. Modules in the computer system constantly monitor consistency in pressures throughout the piping system, current draw, humidity, and air quality. The logic activates emergency shutdown procedures automatically to minimize damage. In order to facilitate minor repairs to the processing facility and crawlers on the seafloor, a Remotely Operated Vehicle is to be housed in the processing facility. This ROV will be equipped with high-power lighting and cameras so that operators on the surface can have a visual indication of the repairs to be made. Communications will be via fiber-optic wire, and two manipulator arms will be used to perform simple tasks like securing sacrificial anodes, untangling wires, and clearing debris. The ROV’s tether is long enough to give it access to sections of the tether that cannot be reached from the surface. In the event of more serious damage, the processing facility and can be raised, as when changes in location are needed. 9 Seven divers will be employed aboard the surface ship in order to perform submerged repairs. In coordination with the machinists, parts will be quickly manufactured and deployed. 7. Transport Safely and Economically The Port of Morehead City, on the coast of southern North Carolina is the closest major port near the rig and will be used by the support ships to bring methane to land for further processing and use. The port is large enough and has appropriate lifting and other equipment for our use. It is also conveniently located near a major highway and railroad, which can be for shipping the methane elsewhere. The vessels traveling between the port and rig will be equipped with navigation instruments and software. Two navigation software packages are suggested: SPAWAR Integrated Charting Engine (ICE) and Kongsberg Simrad SPS. They both run simultaneously on the bridge and have the ability to receive GPS input from P-Code or DGPS. Traditional paper charts are used as well. A Raytheon model DSN-450 Doppler sonar provides an indication of ship's speed, distance traveled and, at continental shelf depths, an indication of water depth. NAVTEX and a weather fax will cover the navigational and meteorological warnings and forecast, as well as urgent marine safety information for ships. The Automatic Identification System (AIS) is a shipboard radar display, with overlaid electronic chart data, that includes a mark for every significant ship within radio range, each as desired with a velocity vector (indicating speed and heading). Each ship "mark" could reflect the actual size of the ship, with position to GPS or differential GPS accuracy. By "clicking" on a ship mark, you could learn the ship name, course and speed, classification, call sign, registration number, MMSI, and other information. Maneuvering information, closest point of approach, time to closest point of approach and other navigation information, more accurate and timelier than information available from an automatic radar plotting aid (ARPA), could also be available. This system ensures reliable ship-to-ship operation. 8. Appropriate Piping The main issue for piping systems is having the rig dynamically positioned at all times. Because of this, conventional steel pipes cannot be used due to the stresses that would eventually result in early failure of the structure. Flexible piping also outweighs conventional steel pipes because of the smaller weight, fewer pipe connections and cost reductions in maintenance. 10 iv. Management Plan Project Principal Investigators Hunter Brown - Senior Mechanical Engineer Eduardo Gonzalez - Senior Hydraulic Engineer Adam Outlaw - Senior Control Engineer Zachary Pfeiffer - Senior Electrical Engineer Michelle Rees - Senior Navigation Engineer Maila Sepri - Senior Computer Engineer Enrique Acuna - Senior Mechanical Engineer Processing System Michael Card - Mining Specialist Christopher Cawood - Mooring Specialist Zachary Chester - Coordination & Systems Integration Engineer Walker Dawson - Safety & Law Specialist Adam Lucey - Acoustics & Instrumentation Engineer Steve Martyr - Surface Facilities Engineering Mark Stroik - Methane Hydrate Specialist Advisory Board Dr. Stephen L Wood is an assistant professor of Ocean Engineering at Florida Institute of Technology. He obtained his PhD in Mechanical Engineering from Oregon State University. Dr. Geoffrey W.Swain is a professor of ocean engineering and oceanography at Florida Institute of Technology. He obtained his PhD in Ocean Engineering in Southampton Univerisity. Dr. Eric D Thosteson is an assistant professor of ocean engineering at Florida Tech Institute of Technology. He is an active member of the American Geophysical Union and earned his PhD from the University of Florida. Communications The engineering group responsible for the design, construction, performance and maintenance of the methane recovery facilities will maintain good communications through the use of internet, conference calls and monthly meetings. The monthly meetings will occur on the first Monday of every month at 5pm and will be held at our operations headquarters at the Port of Morehead City in North Carolina. In the case of the inability of someone to be present, conference calls will be use to keep that individual inform of the content of the meeting. The content of the meeting shall be mainly progress reports and project logistics. Sustainability of Project The methane recovery facility has been design to have a maximum peak extraction rate of 200 millions ft3/day. At this rate, an estimated profit of 16.06 billion dollars is expected in the system design life of 22 years. This corresponds to a yearly profit of 730 million dollars which is a larger amount than the required amount needed to maintain normal operations at the facility. 11 v. Evaluation/Assessment Plan This project will be evaluated through a comprehensive outcome assessment plan. The project manager will submit annual reports outlining the annual worth of the extraction process as well as reports regarding development areas of the project, project strengths, and recommendations for improvement. Table 1: Evaluation methods of each objective Objective Measurement Activity Deployment Records kept by operation under management $10,000 US Data Collection Approach Labor cost and time consumption will be calculated Key Individuals Schedule Eduardo Gonzalez Steve Martyr Safe drilling and creation of stable well for methane extraction Profit from operation must exceed $14 billion/yr System stability under Hurricane season Real-time monitoring of drill mechanisms and electrical demand Records kept by management Monitoring through the use of microcontrollers and sensors Adam Lucey Hunter Brown Michael Card Performed after every Deployment ~5 years Performed after every well drilling ~5 years Profit will be compared to operational cost Eduardo Gonzalez Walker Dawson Performed at the end of fiscal year Surface components of system will use the same design requirements designed for a 100 year storm Monitoring of methane gas as it travels through the processing facility and when store Documented progress of prototype development Computer control of docking and navigational operation Structural and mechanical evaluation of surface components Zachary Chester Steve Martyr Chris Cawood Purity of methane will be detected through sensors at surface structure and at processing facility Update check-list of programs and hardware that are operational monitoring traffic control and unloading operation Enrique Acuna Mark Stroik Adam Lucey Performed at the end of the hurricane season, every December Performed every two weeks Maila Sepri Adam Outlaw Zachary Pfeiffer Performed every two weeks Michelle Rees Zachary Chester Performed every two weeks Purity, grade of methane extracted and processes methane gas Electronics stable and accurate performance Efficient management of port operation 12 vi. Dissemination The progress of the DOES Methane Hydrate Drilling Rig will be reported to DOES stockholders through quarterly mailings reporting on the status of the project. Also, DOES will be present at every Offshore Technology Conference (OTC) in Houston, TX every May to give a report to all persons attending the conference. Progress of the mission can also be viewed on our website. The website information will be updated every day by our web manager and the information will be similar to a daily progress report. This report will not only give any person that reads the site updated information about the project along with a time line that lays out major events from the past and upcoming major events, but with a username and password, one will be able to view a detailed profitability table in order to make a sound judgment on whether or not to buy stock in the company. vii. Summary Completion of this methane recovery system will result in developing methane hydrates as a viable alternative energy source. Success is a function of harvesting a maximum amount of methane gas with the least affect on the environment, in the fastest amount of time, and with the lowest costs. The proposed facility would have a maximum extraction rate of 6,585,158 m3 per day. This corresponds to an estimated profit of 16.06 billion dollars per year. The entire operation will use 110 staff members at all time, costing approximately $7.7 million in labor, with an operational cost of approximately $365 million a year. The mining will be completed in 22 years, with an expected total operation profit of $15.69 billion per year. Since accuracy of size and position plays a significant role on the time and effort for successful extraction, the hydrates must be accurately located before harvesting begins. Current research is being conducted on improving seismic, sonic, geothermal, and geochemical detection techniques, and the results of this research will be used to advantage as it becomes available. Further funding and research will be needed for methane fuel cells before the system can become self-sustainable using the methane harvested. The feasibility of utilizing readily available methane in a self-sustaining power system will be re-evaluated as methane fuel cell technology develops during the initial stages of this project. Currently experimental fuel cell power plants are testing the viability of using excess coalmine methane. Given the projected scarcity of fossil fuels after the coming decade and the time needed to put a new energy system into widespread service, now is the key time to design and develop alternatives. Methane would be a relatively easily implemented option, since existing engines can be modified only slightly to use methane as fuel, and methanefueled cars have been widely used in Europe for years. In addition to the environmental benefits of methane’s reduced emissions, the potential availability of large hydrate reserves on continental shelves makes methane a viable option. Developing a deep-sea gas recovery system will also aid the oil industry as it pursues deeper and deeper oil reserves. The research involved in this project will improve methods for dealing with hydrates encountered while drilling for oil, and further in the future, when waning oil supplies trigger phasing out of oil rigs and transportation vessels, this design can take 13 advantage of the existing hardware. Thus implementing the proposed methane recovery system will facilitate the harvesting of energy in multiple ways in the coming decades. E. References Cited Arai, T., Yamamoto, T., Ando, J., and Ishida, H. “Development of High Efficiency Gas Engine for Green House Gas Reduction.” Mitsubishi Heavy Industries, Ltd. Technical Review 41.4 (2004): 1-4. 27 April 2006. <www.mhi.co.jp/tech/pdf/e414/e414216.pdf> Barnes, J.E. “Deepwater Exploration and Production.” Journal of Petroleum Technology, 57.6, (2005): 50-61. Dickens, G.R., Paul, C.K., Wallace, P., and the ODP Leg 164 Scientific Party. “Direct measurement of in situ methane quantities in a large gas-hydrate reservoir.” Nature, 385 (1997): 426-428. Dillon, W. “Gas (Methane) Hydrates – A New Frontier.” September 1992. U.S. Geological Survey. 20 April 2006. <http://marine.usgs.gov/fact-sheets/gashydrates/title.html> Flemings, P.B., Liu, X., and Winters, W.J. “Critical pressure and multiphase flow in Blake Ridge gas hydrates.” Geology, 31.12 (2003): 1057-1060. Haskew, T.A., Haynes, C.D., Boyer, C.M., and Lasseter, E.L. “Coalbed methane/fuel cell operation for direct electric power generation.” SPE Gas Technology Symposium Proceedings. (1996): 451-460. Abstract. Engineering Village 2. Evans Library, Florida Institute of Technology. 20 Apr.2006 <http://www.engineeringvillage2.org> Maynard, Barbara. “Burning Questions About Gas Hydrates.” Chemisty. Winter 2006: 27-33. “Methane Hydrate-The Gas Resource of the Future.” 28 December 2005. US Department of Energy. 23 April 2006. <http://www.fossil.energy.gov/programs/oilgas/hydrates/index.html> “Resources: How much Natural Gas Is There?” 2004. NaturalGas.org. 20 April 2006. <http://www.naturalgas.org/overview/resources.asp> 14 F. Biographical Sketches Principal Investigator, Eduardo Gonzalez, earned a PhD in Ocean Engineering and M.S in Project Management from Florida Institute of Technology in 2002 and has worked in the naval hydraulics industry for 5 years. Eduardo Gonzalez will be involved in designing the pipe systems that transport methane gas from the deposit to the surface structure, the processing station and the hydraulic winch that serves as deploying mechanism. As the project management, he will maintain records of the performance and progress of the senior personnel and he will also hold monthly meetings to keep all principal investigators and senior personnel well informed. Principal Investigator, Maila Sepri, earned her M.S. in Computer Science and Electrical Engineering from California Institute of Technology in 2002. Maila Sepri will be involved in developing of the hardware that will perform logic and communications for the control system, and to specify the software architecture that will achieve these purposes. She also serves as project management of the team and will help managing the logistics of the project. Principal Investigator, Adam Outlaw, earned a M.S. in Computer and Electrical Engineering from Massachusetts Institute of Technology in 2004 and has worked for Texas Instruments for 2 years. Adam Outlaw will be involved in the design and development of the control systems that will be installed throughout the methane recovery project. Principal Investigator, Hunter Brown, earned his M.S. in Mechanical Engineering from Massachusetts Institute of Technology in 2002 and has been an assistant professor for the ocean engineering department of Florida Atlantic University. He has worked in multiple projects involving remotely operated vehicles (ROV) and autonomous underwater vehicles (AUV). Hunter Brown will be involved in the design and development of the drill crawler ROV and the auxiliary ROV Principal Investigator, Zach Pfeiffer, earned a PHD in Electrical Engineering at the University of South California in 2003. He has worked for Boeing for the past 3 years. Zach Pfeiffer will be involved in the design and development of the electrical systems that will be installed throughout the methane recovery project, including the remotely operated vehicles. Principal Investigator, Michelle Rees, earned her B.S. in Ocean Transportation from the United States Maritime Academy in 2003 and earned her M.S. in Ocean Engineer from Florida Institute of Technology in 2005. She will be involved in the selection of ports, design and construction of port facilities and logistics of the transportation systems. Project Senior Personnel Senior Personnel, Enrique Acuna, earned a M.S. in Chemical Engineering at the University of Michigan in 2001. He has worked for in the oil & gas industry for the past 4 years. Enrique Acuna will be involved in the design and development of the methane 15 processing systems that will be installed at the processing facility and the surface structure. He will also be involve with the treatment, filtration and storage of the methane gas. Senior Personnel, Michael Card earned a M.S. in mechanical engineering from the University of Texas in 1975. Since then, Michael Card has worked in the oil & gas industry as a mining specialist. He will be in charge of the development and construction of the mining equipment and will be in charge of the mining operations and logistics. Senior Personnel, Chris Cawood, holds a B.S. in Underwater Technology from Northwestern University and a M.S in Ocean Engineering from the Florida Institute of Technology. He will be involve in the design, construction and implementation of the mooring systems throughout the methane recovery facility. Senior Personnel, Zachary Chester earned a B.A. in Physiology and a M.S. in Quality Engineering in 2005 from Ohio State University. Zachary Chester will be involve with the project management aspect of the project and will be in charge of developing safety protocols for the equipment within the methane recovery facility. Senior Personnel, Walker Dawson, earned a degree in Corporate Law from Harvard University in 1974 and obtained a B.S. in Project Management in 1979 from the University of North Carolina. He has been working for Exxon for the past 3 years. Walker Dawson will be in charge of obtaining all necessary legal permits for the facility and will be involved with the human factors of the operation. Senior Personnel, Adam Lucey is an Assistant Professor of electrical engineering and has been a faculty member of Miami University since 1998. He earned a M.S. in electrical engineering from UCLA. Adam Lucey is involved with the design, construction, installation and test trials of sensors mounted throughout the methane recovery facility. Senior Personnel, Steve Martyr, is a graduate of the Untied States Maritime Academy and earned his M.S. in Naval Architecture at the University of Michigan in 2002. He has been working in the gas and oil industry since 2004. Steve Martyr is involved in the design and construction of the semi submersible self-powered rig and methane transporting tankers. Senior Personnel, Mark Stroik is Assistant Professor of Chemistry and has been a faculty member of the University of Virginia since 1998. He earned a M.S. in Chemistry from West Virginia University. Mark Stroiks is involved in the methane gas chemical properties studies and will contribute to the extraction, filtration, containment and storage of the methane gas. 16 G. Budget Please see Appendix for a more detailed breakdown of cost for each of the individual systems. Item Drilling Crawler PSS Package Drilling motor Drill pipe Drill bits(3) Mud pump Drilling fluid Regulator Crawler PSS Package Drilling motor Drill pipe Drill bits(3) Mud pump Drilling fluid Pressure regulation valve Hydroacustics Locator System System Pipes/Hydraulics Stage I Pipes Cost ------------------------$ 10,000,000.00 $ 50,000.00 $ 10,000.00 $ 225,000.00 $ 20,000.00 $ 500,000.00 ------------------------$ 10,000,000.00 $ 50,000.00 $ 10,000.00 $ 225,000.00 $ 20,000.00 $ 500,000.00 $ 50,000.00 ------------------------$ 175,000.00 ------------------------$ 3,517,500.00 Stage II Pipes $ 1,890,000.00 Stage III Pipes $ 660,000.00 MEC Unit $ 700,000.00 Triplex Pumps $ 1,800,000.00 Caterpillar Diesel Engines $ 1,900,000.00 Cathodic Protection System (Cables) $ 190,000.00 Cathodic Protection System (Facility) $ 170,000.00 Winch System $ 4,680,000.00 Pipe pressure sensor Vertical Horizontal Methane Processing Chamber Holding Tanks Piping Valves Expansion Chamber Fuel Cells Processing facility sensors pressure sensors Temperature Humidity Purity ------------------------$ 305,118.00 $ 29,520.00 ------------------------$ 6,000,000.00 $ 400,000.00 $ 2,000,000.00 $ 4,000,000.00 $ 2,000,000.00 ------------------------$ 7,500.00 $ 4,000.00 $ 4,000.00 $ 6,000.00 17 Labor/Engineering Cost $ 160,000.00 $ 160,000.00 $ 20,000.00 $ 2,350,000.00 $ 15,000.00 $ 510,000.00 $ 15,000.00 Processing Facility Crawler PSS Package Methane Pressure Chamber Mud Pump Drilling Fluid Rig Site Package Mud Pump Power Distribution Mud/Soil Reconditioning System Surface platform sensors pressure sensor humidity sensor Temperature sensor purity sensor Control Systems Systems Computers/Monitors/Hard Drives Microcontrollers/PCBs Processing Facility Mooring Screw Type Pilings Navigation Systems Software Navtex Weather Fax Auto ID system Seatex Seapath 200 Raytheon Doppler Sonar DP Positionging system Electric Equipment/Electronics Cummins diesel generators Fiber optic wiring Transceivers/Amplifiers/Connectors Rolls marine batteries Miscellaneous electrical equipment Berth/Docks Leasing 20 year lease Moorings/Buoy Weather Buoy 13mm Chain 25mm Chain 19mm Nylon 22mm Nylon 35mm Nylon 15mm Polyester Anchors Acoustic Release Misc ------------------------$ 10,000,000.00 $ 750,000.00 $ 20,000.00 $ 50,000.00 ------------------------$ 20,000.00 $ 200,000.00 $ 1,200,000.00 ------------------------$ 7,500.00 $ 4,000.00 $ 4,000.00 $ 6,000.00 ------------------------$ 150,000.00 $ 3,325.00 $ 400.00 ------------------------$ 100,000.00 ------------------------$ 500.00 $ 1,000.00 $ 1,700.00 $ 4,000.00 $ 2,000.00 $ 1,000.00 $ 5,000,000.00 ------------------------$ 650,000.00 $ 26,280.00 $ 3,400.00 $ 10,189.70 $ 100,000.00 ------------------------$ 7,300,000.00 ------------------------$ 150,000.00 $ 370.00 $ 1,150.00 $ 4,800.00 $ 6,150.00 $ 2,050.00 $ 50.00 $ 500.00 $ 6,000.00 $ 2,000.00 18 $ 220,000.00 $ 70,000.00 $ 15,000.00 $ 5,943,605.00 $ 22,000.00 $ 95,000.00 $ 789,869.70 $ $ 105,000.00 Surface Structure/Ship Aker H-6e Semi-Sub RIG Propulsion Supply boats LNG Carrier Operational Costs Environmental Consultants Salaries TOTAL ------------------------$ 275,000,000.00 $ 4,000,000.00 $ 200,000.00 $ 2,000,000.00 ------------------------- $ 359,087,002.70 $ 1,330,000.00 $ $ $ 1,000,000.00 10,000,000.00 22,820,474.70 i. Budget Justification The necessary crew for the offshore processing facility totals 110 persons. This is an accepted and standard population for oil type drilling rigs and is sufficient for the missions outlined in this document. Of the 110, 18 will provide hotel loads such as food services, and living facility staff. These employees shall provide meals at six-hour intervals in addition to keeping the kitchen well stocked and clean. Also included in this group is the laundry service, maid service, and living quarters maintenance crew. A group of 60 technicians will provide round-the-clock surveillance on all critical tasks. Each member will work a 12 hour shift. This includes 6 navigators, 6 control systems engineers, 4 computer programmers, 4 computer technicians, 10 methane storage technicians, 20 engineers, 4 drilling technicians, 4 GUI monitors, and 2 safety coordinators. This group will be the main operational group in charge of maintaining drilling operations and assuring that all actions are progressing smoothly and safely. The safety coordinators will insure that all activities are complying with mandatory safety procedures and that all employees are within OSHA and DOES safety guidelines. In addition to these two groups, onboard at all times will be 2 project managers, 2 navigation engineers/pilots, 4 environmental consultants, 2 hydraulics engineers, 1 corrosion engineer, 4 communications personnel, 7 divers, 10 machinists. The rig will house a full scale machine shop to accommodate any potential equipment failures and will be run 24 hours a day by two shifts of 5 machinists. The seven divers will perform near-surface maintenance and ensure that all vehicular activities are conducted within DOES guidelines. These divers will also perform specific assigned duties as they arise during the normal course of drilling operations. Communications personnel ensure that all subsurface and rig-to-shore communications are operational 24 hours a day and are at the disposal of crewmembers for both work related activities and personal communications with families ashore. The environmental consultants will be available to provide input in the environmental ramifications involved in daily activities and be present to ensure minimal environmental impact. The LNG carrier will contain 10 crewmembers to ensure all gas transfer activities flow according to predefined transfer procedures. H. Current and Pending Support Not applicable. 19 I. Facilities, Equipment and Other Resources Deep Ocean Energy Systems (DOES) operates a world-class product facility including full-time designers, engineers, machinists, welders, mechanics, and quality assurance specialists. DOES capabilities fill the gaps between an initial concept and a fully working system. The design department, including seven in-house full-time designers, is home to two HP DesignJet 500 Printers for full scale mechanical drawings, seven Pentium 4 PCs running MS Windows XP with the latest CAD software from AutoDesk and SolidWorks, and a wealth of talent spanning all fifteen years of DOES existence. The engineering department consists of ten mechanical engineers, ten electrical engineers, twelve ocean engineers and a civil engineer who oversee projects from start to finish by coordinating with designers, production staff, and the customer to ensure a quality final product. The production department is housed in a 10,000sqf. facility equipped with the finest lathes, mills, CNC machines, and other heavy machinery available. Ten full-time machinist and welders are available for precision production work including large/oversized parts. All machining work and welding can be performed to SAE and Military specifications and assured by our own quality assurance engineer. DOES has ongoing relationships with many manufacturers, suppliers, academic institutions and government agencies that are essential to the successful completion of a project of this scale. Collaboration between these agencies will allow timely completion of key sections of the project to ensure that the work flow of the project as a whole remains on schedule and with the highest quality. J. Special Info & Supplementary Documentation Not Applicable. 20 21 K. Appendices Appendix I: Gantt Chart Appendix II: Sensors List System Type Manufacturer Model Cost mooring mooring $9,000.00 $4,000.00 load shackles 1090E 4164 XLS 400 $10,000.00 $15,000.00 Mooring Aanderaa Aanderaa InterOcean Systems, Inc. Aanderaa InterOcean Systems, Inc. Total cost per mooring 3595 3590 mooring mooring wave height wind direction transponding acoustic release buoy orientation sensor S&P.P. S&P.P. S&P.P. S&P.P. S&P.P. Pressure sensor Temperature CH4 Flowrate Purity sensor Leak detection Spectre Sensors, Inc. Caldon, Inc. Caldon, Inc. Caldon, Inc. Caldon, Inc. Total Cost $18,000.00 $12,000.00 $20,000.00 $23,500.00 $30,000.00 $103,500.00 Processing Processing Processing Processing Processing Processing Processing Processing Processing Processing Pressure sensor Temperature Humidity sensor CH4 Flowrate Salinity Seismometer Accelerometer Air qaulity sensors Current meters leak detection Hydrophone & acoustic array Spectre Sensors, Inc. Caldon, Inc. Caldon, Inc. $18,000.00 $12,000.00 $10,000.00 $20,000.00 $7,500.00 $150,000.00 $8,500.00 $10,000.00 $9,000.00 $35,000.00 Total Cost $35,000.00 $315,000.00 Processing System Type Drilling Drilling Drilling Drilling Pressure sensor Temperature CH4 Flowrate Salinity Hydrophone & acoustic array Optical Encoder Drill speed Clock Seismometer Drilling Drilling Drilling Drilling Drilling Caldon, Inc. Manufacturer Cost $17,000.00 $12,000.00 $20,000.00 $7,500.00 Total Cost 22 Model $9,000.00 $47,000.00 $35,000.00 $10,000.00 $8,000.00 $3,500.00 $150,000.00 $263,000.00 ROV/Crawler ROV/Crawler ROV/Crawler ROV/Crawler ROV/Crawler ROV/Crawler ROV/Crawler ROV/Crawler ROV/Crawler Ship systems Ship systems Ship systems Ship systems Ship systems System Sensors For Methane Piping monitoring Pipe press. Sensor Vertical Horizontal Hydrophone array Gyro CTD 3-axis accelerometer seismometer camera array CH4 Flow rate self diagnostics Currrent meter Total Cost $25,000.00 $15,000.00 $25,000.00 $55,000.00 $100,000.00 $35,000.00 $10,000.00 $30,000.00 $9,000.00 $304,000.00 Total Cost $425,000.00 $9,000.00 $5,000.00 $4,000.00 $200,000.00 $643,000.00 Dynamic positioning system wave height wave direction wind speed/direction sonar/hydrophone array Type Manufacturer Model Cost $305,118.00 $29,520.00 processing facility pressure sensors temperature humidity purity $7,500.00 $4,000.00 $4,000.00 $6,000.00 Surface pressure sensor humidity temperature purity Total cost Total cost of sensors and instruments for entire operation $7,500.00 $4,000.00 $4,000.00 $6,000.00 $371,638.00 $2,047,138.00 *NOTE* This includes only one mooring 23