CCS IN MEXICO AND ASSOCIATED COSTS

Rodolfo Lacy
Mario Molina Center

IEA-SENER Joint Workshop

CCS in Mexico: Policy Strategy Options for CCS
March 2012
 National Energy Strategy

2%
Clean
2010 (Nuclear and Hydro)

5% Renewables
(Biomass, Solar, 2%
Geothermal, eolic) 25% Coal
Natural Gas

65%
Oil

…by 2026 fossil fuels will account for

almost 65%
*Estrategia Nacional de Energía, 2012
 Demonstrative Project
CCS+EOR
status
IEA workshop

CSLF workshop
National
Energy National Strategy for
Strategy CCUS
presentation

Mexican Atlas for CO2 Geological Storage EOR/EGR incorporation Demonstration

Project

2012 FEB MAR JUN AUG OCT 2013 2014 2015-2019

COST STUDY, World Bank (1.2 MUSDlls)

Basic Engineering, IIE (325 mil USDlls)

PILOT PLANT CONSTRUCTION AND OPERATION

Announcement
Sustentability
CONTRACT
Fund
consortium
Integral Project
(Pilot Plant+EOR)
 Integral Project
Pilot Plant + EOR

As part of the National Energy Strategy, a CCS+EOR demonstration project is being

considered in order to reduce CO2 emissions from CFE power plants and use that CO2 for
EOR operations within PEMEX fields.

The CCS Mexican Group* decided to pursue the

design and construction of a Pilot Plant for
capturing CO2 emissions. The plant will added to
a CFE Power Plant in Poza Rica, Veracruz, in the
Gulf of Mexico region**.

The Integral Project will also include the

transportation of CO2 to near production sites
where PEMEX will use for EOR activities.

2 MW Pilot Plant
Charleston, West Virginia, USA

* Members: PEMEX, CFE, Ministry of Energy, Electrical Research Institute, Mexican Petroleum, Institute, Mario Molina Center, among others
**The experience and experience obtained from the Pilot Plant will be an important source of information for the design of a large scale CO2
capture system for the demonstration project.
 CCS+EOR Proposal

It is planned that the first

carbon capture project that
will take place in Mexico must
be a CCS+EOR form. This
strategy will enable Mexico to
start utilizing this low-carbon
emission technology

One of the main factors that

support such a project is that
the CFE, PEMEX, and
geological reservoirs are state-
own enterprises and assets

*CCS+EOR. Carbon Capture and Storage + Enhance Oil Recovery

CO2 Sources in Mexico
2009

*Modificar mapa Río Escondido

Carbón II

Altamira

Tuxpan
Poza Rica
Tula
Dos Bocas
Manzanillo

Petacalco
PETACALCO
CO2 Sources in Mexico
Projections to 2025

PETACALCO
 CO2 emission sources
CO2 emission sources (>500,000 ton/year) in Veracruz state
CO2eq CO2eq
Company Name Sector Town (projection to
(2008)
2025)
CFE Central Termoeléctrica Adolfo López Mateos Energy Generation Tuxpan 4,364,184 4,318,360
Fuerza y Energía de Tuxpan S.A: de C.V. Energy Generation Tuxpan 2,662,755 2,634,796
PEMEX Complejo Petroquímico Morelos Oil and Petrochemical Industry Coatzacoalcos 1,792,074.0 2,240,093
PEMEX Complejo Petroquímico Cosoleacaque Oil and Petrochemical Industry Cosoleacaque 1,714,444.6 2,143,056
PEMEX Refinería Lázaro Cárdenas Oil and Petrochemical Industry Minatitlán 1,540,040 1,955,851
Central Ciclo Combinado, Dos Bocas Energy Generation Medellín 1,287,484 1,314,650
Central Turbo Gas, Adolfo López Mateos Energy Generation Tuxpan 1,479,082 1,463,552
Electricidad Águila de Tuxpan S. de R.L. de C.V. Energy Generation Tuxpan 1,388,296 1,417,589
Cementos Apasco S.A. de C.V. Cement Production Industry Ixtaczoquitlan 974,048 1,051,113
CFE Central Termoeléctrica Poza Rica Energy Generation Tihuatlan 227,212 573,048*

* Taking into account the planned power increment, refitted to natural gas, and an increment in the capacity factor

CO2 emission sources (>500,000 ton/year) in Tabasco state

CO2eq CO2eq
Company Name Sector Town (projection to
(2008)
2025)
PEMEX Gas y Petroquímica Básica. Complejo
Oil and Petrochemical Industry Centro 2,140,544 2,782,707
Procesador de Gas Nuevo PEMEX
PEMEX Exploración y Producción. Estación de
Oil and Petrochemical Industry Macuspana 1,091,740 1,419,262
Complejo Procesador de Gas Ciudad PEMEX
Cementos Apasco S.A. de C.V. Planta
Cement Production Industry Macuspana 567,342 612,228
Macuspana
 Estimated Costs
Centro Mario Molina evaluated in 2009 different alternatives for power generation plant
with petroleum coke and carbon, combined with EOR in Mexico. It was concluded that
fluidized bed boiler was the best economic option
COSTS OF CCS + EOR* OPERATIONS IN MEXICO
(USD/MWh)
TECHNOLOGY OPTIONS
IGCC IGCC PCSC FLUIDIZED NGCC
BED
150 MW 300 MW 300 MW 300 MW 250 MW
Power generation leveled cost 155.73
Transport/Compression leveled 16.41
cost

Injection/Storage leveled cost 0.24

Total leveled cost 172.38

EOR 111
Total leveled cost
61.38
with EOR

CO2 value (externalities) ** 13.36

Total leveled cost

with EOR and 48.02
externalities

*CCS. Carbon Capture and Storage EOR. Enhanced Oil Recovery with a $60 USD price per barrel. Obtaining 2.5 barrels per ton of
CO2 injected
**Calculated according to the externalities methodology adopted by the Mexican Ministry of Energy in 2009

SOURCE: CMM, 2009. Proyecto Demostrativo para Generar Energía Eléctrica a partir de Combustibles Fósiles libre de Emisiones de Gases de Efecto Invernadero.
 TUXPAN
AIR EMISSIONS
Levels of contaminant emissions expected from one unit at the
power generation plant in Tuxpan WITH and WITHOUT CO2
capture system*

NOM-085 for NOx (110 ppmv)

No capture Capture

Particles (mg/Nm3)
NOM-085 for SOx (550 ppmv)

NOM-085 for particles (250 mg/m3)

*The CO2 capture system requires an influent with NOx and SOx concentrations within the 10-20 ppm range
 CCS + EOR
First Approach:
Tuxpan Power Plant

General operation diagram*

Generation levelized cost
- 155.73 USdlls/MWh

EOR/EGR
Conversion

NOM-085
Particles
FUEL SWITCHING Net Benefit Oil sells
TO COAL 10 PPM
NOx & SOx
48.02 USdlls/MWh +111
USdlls/MWh
CO2 capture
300 MW 93 USdlls/MWh con carbón
73 USdlls/MWh con petcoke
Boiler Clean Externalities
fluidized bed air

Gases +13.36
cleaner Transport + Injection USdlls/MWh
COAL
- 16.65 USdlls/MWh
Boiler * Recovered-
fluidized bed CO2
Compressor separation
and re-
injection
Limestone CO2
separator
Amine
SOx tower
NOx
Particles

Bottom
ashes

Separación para
* Separation for re-inyección
recovered CO2 re-
0.5 Usdlls/1,000
injection ft3 de CO
0.5 Usdlls/1,000 ft32 recuperado

* Esimated costs by Centro Mario Molina (being corroborated by PEMEX and IIE)
CO2 Capture Costs
Equivalent anual cost for the CO2 capture process (using amine) for
one unit within the Tuxpan CFE facilities using 100% carbon fuel
USD USD/year USD/year USD/year t/year t/year
GENERATION Capture Inversion at
UNIT trains Fuel Compression CO2
Present value O & M CO2 CO2 captured
CO2 CO2 Avoided
2011

Fluidized Bed 7 44,042,710 15,811,018 18,756,075 30,920,647 2,159,456 1,598,674

SUBCRITICAL
7 64,149,578 15,537,853 18,165,633 34,232,079 2,143,655 1,599,301
Pulverized Carbon

SUPERCRITICAL
6 47,828,111 14,249,157 16,801,261 30,313,648 1,957,405 1,453,836
Pulverized Carbon

Net Present Value

In this option, PEMEX would acquire the captured

USD Millions
CO2. A sensibility analysis was also carried out to
evaluate recovery cost for CO2 ton thus the
investment on capture system and its operation
will not result in economic losses X X X

Selling price for CO2 (USD/ton)

Subcritical FB PC Subcritical PC Supercritical
 EOR sites in the
Chicontepec Region

The initial proposal was to run

the demonstration project in
the Tuxpan Power Plant that CFE TUXPAN
Fuel oil
would be refitted to use coal as power plant

their primary source.

However, due to CFE strategic

decisions, it was decided to NGCC
Private
have the CCS project in the power plant

NGCC Power Plant located at

Poza Rica. The first stage is the
implementation of the Pilot
Plant where the first
arrangements for EOR will be
implemented.
Oil sites located at Chicontepec Region that might be suitable for EOR operations
 Power Plant and well
sites at Poza Rica

Well site at Poza Rica

The Pilot Plant will
capture up to 8 ton of
CO2 per day.

PEMEX has several well sites

located at Poza Rica that are
relatively close to the Power
Plant facilitating the
transport of the CO2. Power Plant

Localization of the Poza Rica Power Plant and

well sites suitable for the injection of CO2
 Demonstration Project
General scheme for the CCS+EOR demonstration project between CFE and PEMEX

Source: Mario Molina Center

 Levelized Costs
CCS+EOR

NGCC Power Plant

250 MW
Levelized Costs (Usdlls/MWh)
Generation 113.12
(including gas cleaning and capture)
Compression and pumping 5.00

Transport* 0.80

Injection and Storage 0.30

Total levelized cost 119.22

Oil benefits -44.38

Total levelized cost including EOR** 74.84

Monetary value of avoided CO2 *** -5.38

Total levelized costs 69.14

(including environmental externalities and EOR)
* Basd on a 30 km distance from the injection point.
** Calculated with the selling of a 60 USD barrel , recovering 2.5 barrels per each CO 2 ton
injected, without considering the natural gas natural obtained simultaneously from the
well.
*** Calculated based on the SENER environmental externalities methodology used in 2009.

Source: Centro Mario Molina, preliminary estimations

 PILOT PLANT
Integral Operative System
Amine providers

2 opertors Electrical Research Institute

CFE
Combustion gases equivalent
to a 2MW plant

Electricity
Vapor CO2
Cooling water
NGCC
Poza Rica

Solid and liquid PEMEX

residuals Laboratory

Aditional
CO2
CMM

Mexican
Petroleum
Institute
PEMEX Exploration
THANK YOU