Model for Environmentally and Economically Sound Linked Energy Systems
Kansas Geological Survey
Open-file Report 2002-6
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Model for Environmentally and Economically Sound Linked Energy Systems |
Kansas Geological Survey Open-file Report 2002-6 |
Economics appear favorable for a small EOR project utilizing the full CO2 output from the ethanol plant at the current scale. This will be a viable option should the planned pilot project prove successful and EOR is the best market alternative for the ethanol plant’s CO2. The planned expansion would have a positive impact on the transportation component.
| EOR Oil Operator | Pipeline Company | Ethanol Plant | |
| Capital Costs | $4,094,806 | $1,400,000 | $0 |
| Rate of Return | 19.5% | 21.3% | NA |
| NPV | $3,121,080 | $845,553 | $3,105,882 |
| Profit (BT) | $8,724,656 | $2,084,394 | $4,819,356 |
| Barrels Oil | 1,712,687 | CO2 Sales | 12.8 BCF |
| High Pressure Pipeline | A 3” to 4” high pressure pipeline appears to be a viable option for delivering the full CO2 stream (3.5 MMCFPD) from the Russell ethanol plant to the Hall-Gurney Field (8 miles) and deliver it to an EOR site in a super critical state (above 1000#) at injection pressure for $1.00/MCF. West Texas prices are around $0.75/MCF, delivered. | |||
| 3.5 MMCFPD CO2 (200 tons/day | ||||
| Dehydration & Compression | $900,000 | |||
| 8 mile pipeline | $500,000 | |||
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Capital Costs |
$1,400,000 | |||
| $/mcf | $/ton | |||
| Dehy, Comp, Ops | $0.35 | $6.03 | ||
| Raw CO2 Cost | $0.38 | $6.50 | ||
| $0.73 | $12.53 | |||
| Sale Price to EOR | $1.00 | $17.23 | ||
| Net Income | $0.27 | $4.70 | ||
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| Rate of Return | 19.5% | Oil Price | $20/BO | ||
| NPV | $3,121,080 | Purchase CO2 Cost | $1/MCF | ||
| Profit(BT) | $8,724,656 | Recycle CO2 Cost | $0.35/MCF | ||
| Profit (BT)/Capital | 213% | Severance Tax | $0.0% | ||
| Net Utimate Rec (BO) | 1,498,601 | Ad Valorem Tax | 2.0% | ||
| Gross Ultimate Rec (BO) | 1,712,687 | EOR Tax Credit | 10.0% | ||
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Reworked & upgrade Wells | 2,138,400 | ||
| Capital | $2.46 | $2.15 | New Wells | 756,000 | |
| Lease Operations | $4.38 | $3.83 | Surface facilities | 1,200,406 | |
| Purchase CO2 | $4.50 | $3.94 | Total Capital Costs | $4,094,806 | |
| Recycle CO2 | $1.83 | $1.61 | |||
| Total Cost/BO | $13.17 | $11.52 | Flood Area | 1240 acres | |
| Oil Wells | 36 | ||||
| Gross CO2 Utilization | 9.5 MCF/BO | Water Inj. Wells | 6 | ||
| Net CO2 Utilization | 4.4 MCF/BO | CO2 Inj Wells | 18 | ||
| Water Supply Wells | 4 | ||||
| Total Wells | 64 | ||||
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Last updated March 2002
http://www.kgs.ku.edu/PRS/Poster/2002/2002-6/P2-04.html