Co-generation, Ethanol Production and CO2 Enhanced Oil Recovery
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  

Capital Costs

  $/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  
Small commercial flood using entire ethanol plant CO2 stream projected to be economically viable

Economic Measures

Critical Assumptions
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%



Cost/Gross BBL
  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