Statement by Dr. S. Julio Friedmann

Deputy Assistant Secretary for Clean Coal

U

. S

. De p a r t m e n t of En er gy

Be f o r e t h e

C o m m i t t e e on Energy and Commerce

Subcommittee on Oversight and Investigations

U

. S

. Ho u se of Re p re s e n t a t iv e s

Carbon Capture and Storage

February 11, 2014

Th a nk y o u Chairman Murphy, Ranking Member DeGette

, a nd m e mb er s o f the Subc ommitt ee

. I

a p p rec i a te the oppo r tuni t y to dis c uss the De p ar tm e nt o f En e r g y ’ s (DO E) c o a l re s earc h and

d e v e lopm e nt (R&D) ac tiviti e s

, including carbon capture and storage (CCS).

Coal fuels approximately 40 percent of our domestic electricity production. As the Energy

Information Administration (EIA) recently pointed out i n the Annual Energy Outlook 2014

reference case, coal will continue to be one of the two most important sources of electricity

generation through 2040. Because it is abundant, the clean and efficient use of coal is a key part of

President Obam a’s all

- of

- the

- above energy strategy.

A major challenge to coal, however, is that it is a major source of carbon dioxide (CO 2 )

emissions. Therefore, it is critical that we promote currently available technologies and develop

more economic and broadly ava ilable technologies to reduce those emissions from coal

- fired

power plants. To that end, the Obama Administration strongly supports the development of clean

coal technologies, including carbon capture and storage , as a critical component to an energy

rich , environmentally sound energy economy . In addition to the Administration’s annual budget

requests, that support was made clear in the 2009 American Recovery and Reinvestment Act

( Recovery Act ), which provided $3.4 billion for CCS. This followed over 15 years of

1appropriations that have provided the science and technology foundation for CCS deployment in

the US and around the world. It was also evident in the formation of the Interagency Task Force

on Carbon Capture and Storage, wh ich the P resident charged in February 2010 to develop a plan

to overcome the barriers to the widespread, cost

- effective deployment of CCS within 10 years.

On June 25, 2013, President Obama laid out a broad Climate Action Plan to cut carbon pollution

in Am erica, prepare the United States for the impacts of climate change, and lead international

efforts to combat global climate change . A key component of that plan is an $8 billion loan

guarantee solicitation, which was released on December 13, 2013. The s olicitation cover s a

broad range of advanced fossil energy projects, and is designed to support investments in

innovative technologies that can cost

- effectively meet financial and policy goals, including the

avoidance, reduction, or sequestration of anthro pogenic emissions of greenhouse gases.

As the President has made clear, fossil fuels

– including coal

– provide more than 80 percent of

our energy today and they are projected to remain a large source of energy for decades. The fossil

solicitation

– in ad dition to the $6 billion the Administration has already committed to clean coal

technologies

– reflects the Administration’s commitment to an “all of above” energy strategy that

develops every available source of American energy

– a strategy that’s cleaner , cheaper, and full

of new jobs.

C l e an C oal Re s e a r c h P r og r a m

DO E c ontinu e s to pl a y a l ea d er ship r ole in the d e v e lopm e nt of c l ea n c o a l t e c hnolo g i e s w ith a f o c us

on CCS

. T he C l ea n C o a l R e s earc h P r o g r a m

– a dminist ere d b y D O E ’ s Off i c e of F ossil En e r g y a nd

impl e m e nt e d b y the N a tion a l En e r g y T ec hnol og y L a bo r a to r y (NETL)

– is d e si g n e d to e nh a n c e our

e n e r g y s e c u r i t y a nd r e du c e e nvi r onm e nt a l c on cer ns o v e r the f utu r e use of c o a l b y d e v e loping a

2po r t f olio of cutting

- edge c l e a n c o a l t ec hnol o g i e s. The P r o g ra m is we ll position e d to h e lp

ov erc ome the t e c hni ca l c h a ll e n g e s a sso c i a t e d w ith the d e v e lopm e nt of c l ea n c o a l t ec hnolo g i e s.

T he C l ea n C o a l Research P r o g ra m, in p ar tn er ship w ith the p r iv a te s ec to r

, is f o c us e d o n m a x im i z ing

eff i c i e n c y a nd e nvi r onm e nt a l p erf o r m a n ce

, w hile minim i z ing the c osts of th e se n e w t ec hnolo g i e s.

I n r e ce nt y ear s, the P r o g r a m h a s b e e n re st r u c t u re d to f o c us o n c l ea n c o a l t ec hnolo g i e s w ith CCS

.

The P r og ra m pu r s u e s the f ollo w ing t w o m a jor st ra t e g i e s:

1) ca ptu r i n g a nd sto r i n g g re e nhouse g a s e s; a nd

2) imp r oving the e ff i c i e n c y and footprint of f ossil e n e r g y s y st e ms.

The f i r st st ra t e g y a ims to remove e missions of g r ee nhouse g a s e s fr om f ossil f u e l e d e n e r g y

s y st e ms. The s ec ond st r a t e g y s ee k s to imp r ove the f u e l

- to

- e n e r g y e f f i c i e n c i e s of th e se s y s t e ms,

thus re du c ing pollut a nt e missions, wa t e r us a g e

, a nd car bon e missions on a p e r unit of e n e r g y

b a sis. C oll ec tiv e l y

, th e s e t w o st ra t e g i e s constitute the C l ea n C o a l Research P r o g r a m ’ s a pp r o ac h

to e nsu r e th a t c u rre nt a nd f ut u r e f ossil e n e r g y pl a nts can contribute to a s a f e a nd s e c u r e clean

e n er g y f utu r e

.

C o r e R e s e a r c h a n d De v e lo p m e n t Act ivi t i e s

The C l ea n C o a l Research P r o g ra m is a dd re ssing t h e k e y challenges t h a t c o n fr ont the d e v e lopm e nt

a nd d e pl o y m e nt of c l ea n c o a l t ec h n olo g i e s th r o u g h r e s e a rc h on c ost

- ef f

ec tive ca ptu r e t e c hnol o g i e s;

monito r in g

, v er i f i ca tion, a nd acc ounti n g t ec hnol o g i e s to e nsu r e p er m a n e nt sto ra g e ; a nd

d e v e lopm e nt of a d v a n ce d e n e r g y s y st e ms. R e s earc h is f o c us e d on d e v e loping t ec hnol og y op t ions

th a t d ra m a ti ca l l y l o we r the c ost o f c a ptu r i n g c a r bon dio x ide fr om f ossil f u e l e d e n e r g y pl a nts. This

re s e arc h c a n be ca t e g o r i z e d into th re e t ec hni ca l p a th w a y s: post

- c o mbustion, p re

- c ombustion, a nd

o x y

- c ombustion. P ost

- c ombustion refer s to c a ptu r i n g C O 2 fr om the st ac k g a s a f t e r a f u e l h a s b e e n

3c ombust e d in a i r

. P re

- c o mbustion refer s to a p r o c e ss w h e r e a h y d r o car bon f u e l is converted to a

mi x tu r e of h y d r o g e n a nd c ar bon dio x id e

, a nd C O 2 is ca ptu re d fr om the g a s mixture b ef o r e it is

c ombust e d. O x y

- c ombustion is a n a p p r o ac h w h er e a h y d r o c a r bon f u e l is c ombust e d in pu r e or

n e ar l y pu r e o x y g e n ra th e r th a n a i r

, w h i c h releases energy and produces a mi x tu r e of C O 2 a nd wa t e r

th a t ca n e a si l y be s e p a r a t e d to p r odu c e pu r e C O 2

. We pursue all three pathways today because all

three pathways are comparable in terms of cost and efficiency, and all have engineering strengths.

C ol l ec tiv e l y

, re s ea r c h in e a c h of th e se t ec hn i ca l p a th w a y s is e x plo r ing a w ide ra n g e o f technical

a p p r o ac h e s su c h a s hydrogen m e mb ra n e s; ox y

- c ombustion c on ce pts; solid so r b e nts; catalyzed

solvents; a dv a n c e d g a s/liquid s cr u bbing t ec hnol o g i e s; a nd a dv a n c e d h y b r id c on ce pts su c h a s liquid

m e mb ra ne c on t ac to r s.

T h e se e f f

o r ts c ov e r not only imp r ov e m e nts to st a t e

- o f

- th e

- ar t t e c hnol o gi e s but a lso d e v e lopm e nt of

s e v e r a l re volution a r y c on ce pts, su c h a s m e t a l o r g a nic f ra m ew o r k s, ionic liquids, e n z y m e

- b a s e d

s y st e ms , and chemical looping

– a form of oxy

- combustion that utilizes oxygen from metal oxide

as an oxygen carrier for fuel combustion, or for making hydrogen by “reducing” water. In

combustion applications, the products of chemical looping are CO 2 and H 2 O as steam . Thus, once

the steam is condensed, a relatively pure stream of CO 2 is produced ready for sequestration. This

work has also led to manufacturing breakthroughs in microfluidi cs, nanofabrication, and molecular

design

. C ou p ling th e se d e v e lopm e nts w ith oth e r a dv a n c e s in eff i c i e n c y i mp r ov e m e nts a nd c ost

re du c tion fr om d e v e lopm e nts in g a si f i ca t ion and tu r bin e s w ill h e lp p r ovide a t e c hnolo g y b a s e of

f

ossil e n e r g y s y st e ms i nt e g r a t e d w ith CCS that will be widely adopted

.

Re gio n al C a r b on S e qu e s tr a t ion P a rt ne r s h i p s

The Re g ion a l C ar bon Se qu e st ra tion P ar tn er ships wer e cr e a t e d b y D O E in 2003 th r ou g h a

4c omp e titive soli c it a tion. The P ar tn er ships w er e d e si g n e d to a d d re ss a ra n g e of issu e s a sso c i a t e d

w ith g e ol o g ic sto ra g e of C O 2

. The C l ea n C o a l Research P r o g r a m h a s b e e n p e r f o r ming CC S f i e ld

t e sts f o c us e d on inj ec tion, m o nito r in g

, v er i f i ca tion, a cc ounting a nd oth e r a sp e c ts of g e ol o g ic

sto r a g e f or m a n y y e ar s, a nd the s e v e n Re g ion a l C ar bon Se qu e st ra tion P ar tn er ships ar e c r iti ca l to

this eff o r t. T h e se P ar tn e r ships ar e c omp r i s e d of st a te a g e n c i e s, univ er siti e s, a nd p r iv a te c omp a ni e s.

Th e y re p r e s e nt mo r e t h a n 400 unique o r g a ni z a tions in 43 S t a t e s, a nd f our C a n a di a n P r ovin ce s.

Ge o g ra phic d i ff e re n c e s in f ossil f u e l use a nd pot e nti a l sto ra ge sit e s acr oss t he U nit e d S t a t e s di c t a te

the use of r e g ion a l a pp r o ac h e s in a dd re ssi n g CCS

, so eac h P ar t n er s h ip is f o c us e d on a sp ec i f ic

re g ion of the U n i t e d S t a t e s a nd C a n a da t h a t holds simil a r c h ar a c t e r isti c s re l a ting to CC S

oppo r tuniti e s.

To g e t h er

, the P ar t n er shi p s f o r m a n e t w o r k o f c a p a bili t y

, kno w l e d g e

, a nd i n fra st r u c tu r e th a t w ill

h e lp e n a ble g e olo g i c sto r a ge t ec hnol og y to pl a y a r ole in the c l ea n e n e r g y e c ono m y

. T h e y

re p re s e nt r e g ions e n c omp a ssing 97 p e r c e nt of c o a l

- f i re d C O 2 e missions, 97 p erce nt o f indust r i a l

C O 2 e missions, 96 p erce nt of the tot a l l a nd m a ss, a nd e ss e nti a l l y a ll the g e olo g ic sto r a ge sit e s th a t

ca n pot e nti a l l y b e a v a il a ble f or g e olo g i c c a r b on sto ra g e

.

During the Validation Phase of the program, R e g ion a l P ar t n er ships drilled we lls a nd inje c ted sm a ll

qu a ntiti e s of C O 2 to v a lid a te the pot e nti a l of k e y sto r a g e l o ca tions totaling more than 1 million

metric tons of C O 2 a t 1 9 sm a ll s ca le inj ec tion p r oj ec ts th r ou g hout the U nit e d St a t e s a nd C a n a d a

.

Those t e sts h e lped to v a lid a te sto r a g e a t a sm a ll s ca le to und er st a nd the f a te of C O 2 in di ffere nt

d e position a l s y st e ms c ont a ini n g s a l ine wa t er

, oil, a nd n a tu ra l g a s , and helped test and strengthen

simulation and monitoring tools and approaches required for commercialization

. The program is

currently in the Development Phase , during which large

- scale field testing involving at least 1

million metric tons of CO 2 per project will be injected . Tests are designed to not only investigate

5commercial

- scale injection of CO 2 , but will also be used to understand the necessary regulatory,

economic, liability, ownership, and public outreach efforts needed for successful CCS, and to

develop the necessary human capital, knowledge base, and experience necessary to i mplement

future CCS operations. Several of the large

- scale tests are currently underway and one project has

safely injected over 3 .6 million metric tons and is being monitored for safe and permanent storage.

O v e r the c o u r se of t h e se initi a tiv e s, DO E a nd the P ar tn er ships a r e a dd r e ssing k e y i n fra st r u c tu r e

issu e s re l a t e d to p er mittin g

, po r e sp a c e o w n e r ship, site acce ss, li a bili t y

, p u blic out reac h, a nd

e du ca tion. An important product of this work is a series of B e st P rac ti c e M a n u a ls on topi c s su c h

a s site c h ar a c t er i z a tion, site c o n st r u c tion, op era tions, monito r in g

, miti g a tion, c lo s u re

, a nd lo n g

t e r m st ewar dship. Th e s e M a n u a ls w ill s er ve a s g uid e l i n e s f or a f utu r e g e olo g ic s e qu e st ra tion

indust r y in th e ir r e g ions, a nd h e lp t ra ns fe r t h e l e ssons l ear n e d fr om DO E ’ s Clean Coal Research

P r og ra m to a ll re g io n a l st a k e hold er s. The f i r st e ditions of the B e st P rac t i c e M a nu a ls ar e a v a il a ble

on DO E ' s re f e r e n c e sh e l f 1 a nd the M a n u a ls w ill be p er iodi ca l l y upd a t e d a s l e ssons l ear n e d fr om

t he l a r g e s ca le f i e ld t e sts ar e r ea li z e d.

W e h a ve also pu r su e d p r oj ec t s d e si g n e d to d e v e lop t ec h n o lo g ies a nd p r oto c ols f or the

monito r in g , v er i f i ca tion, and a cc oun t in g ( M V A ) of C O 2 sto ra ge in g e ol o g ic f o r m a tions a s we ll

a s simul a ti n g t h e b e h a vior of g e ol o g i c a l l y

- sto r e d C O 2 . M VA of g e olo g i c sto r a g e sit e s is a n

imp o r t a nt p ar t of m a ki n g g e o l o g ic sto ra g e a s afe

, e ff e c tive a nd r e li a b l e m e thod of g r e e nhouse

g a s c ont r ol. T h e se ac tiviti e s w ill c ulmin a te in a s e t of b e st p rac ti ce s f or the d e pl o y m e nt of

c a r bon ca ptu r e , utili z a tion a nd sto ra ge t ec hnol og y

.

In addition to this foundational science, technology, infrastructure, and practice

, D O E a nd the

P ar t n er s hips c ontinue to w o r k c l o s e l y w ith the Envi r onm e nt a l P r ot ec tion A g e n c y (EPA) a nd

1 http://www.netl.doe.gov/research/coal/carbon

- storage/carbon

- storage

- infrastructure/best

- practices

6ot h e r F e d e r a l a nd st a te a g e n c i e s in d e v e lopi n g CC S re g ul a to r y st ra t e g i e s, w hi c h w ill p r ovide

a d d ition a l cer t a in t y f or f utu r e CC S d e pl o y m e nts.

D e m o n s tr a t io n s at C om merc ial

- S c a l e

The Clean Coal Program’s work is to meet the technical and economic challenges associated

with the deployment of newer coal technologies. Commercial

- scale demonstrations help the

industry understand and overcome start

- up issues, address component integration issues, and gain

the early learning commercial experience necessary to reduce technology risk and secure private

financing and investme nt for future plants.

The De p a r tm e nt is impl e m e nting commercial

- scale demonstration p r oj e c ts th r ou g h the C l ea n

C o a l P o we r I niti a tive ( CC P I )

, FutureGen 2.0, and the Industrial Carbon Capture and Storage

(ICCS) program s

. These projects together cover a wide range of important technologies, settings

and potential applications. These include pre

- , post

- , and oxycombustion projects; new builds and

retrofits; saline formation storage and enhanced oil recovery; siliciclastic a nd carbonate

reservoirs; coal and petcoke conversion; power sector and industrial sector applications; and the

geographic diversity that represents regulatory and economic diversity nationwide. The portfolio

of projects is designed not only for technical a nd commercial success, but also to maximize

learning and value to the public.

The CC P I is a c ost

- s h ar e d p ar tn er ship b e t w ee n t h e G ov er nm e nt a nd indust r y to d e v e lop a nd

d e monst ra te a d v a n ce d c o a l

- b a s e d po w e r g e n e r a tion t ec hnolo g i e s a t the c o m m erc i a l s c a l e

. B y

e n a bling a dv a n ce d t e c h nolo g i e s to ov e r c ome t ec hni ca l r isks involv e d w ith s ca l e

- up a nd b r in g i n g

th e m to the point of c o mm erc i a l r e a din e ss, CCP I ac c e l e r a t e s the d e v e lopm e nt of a d v a n ce d c o a l

g e n era tion t e c hnolo g i e s integrated with CC S. T he CC P I a lso f ac ilit a t e s the mov e m e nt of

7t ec hnolo g i e s into the m a r k e tpl ac e th a t a r e e m e r g i ng f r om the c o r e re s ea r c h a nd d e v e lopm e nt

ac tiviti e s.

The CC P I p r o g r a m r e ce i v e d a n a ddition a l $800 m illion fr om the R ec o v e r y Ac t w hi c h, in

c o m bin a tion w ith b a se f undin g

, w a s us e d to f und f our CC P I R ound II I p r o j ec ts , of which t w o p re

c ombustion (new builds) a nd one post

- c ombustion ca ptu r e (retrofit) p r oj ec ts are still active

. I n

a ddition, a CCP I R ound I I p r oj ec t, w ith S outh er n C omp a n y S er vi c e s, was modi f i e d to d e monst ra te

CC S a t a n e w int e g r a t e d g a si f i ca tion c ombin e d c y c le p o we r p l a nt. Ha vi n g c ompl e t e d a ll d e s i g n

,

planning, and environmental review requirements, this project b e g a n c onst r u c tion in 2010 and

project construction is now more than 75 p erce n t c ompl e t e

.

The F utu r eGe n 2.0 P r oj e c t int e nds to c ondu c t nov e l l a r g e

- s c a le t e sti n g to ac c e l era te the

d e pl o y m e nt of a d v a n c e d o x y

- c ombustion po we r p r od u c tion t ec hnolo g i e s int e g r a t e d w ith CCS

.

This p r oj ec t w ill be the f i r st a dv a n ce d r e po w e r i n g o x y

- c ombustion p r oj ec t to sto r e C O 2 in a d ee p

s a line g e olo g i c f o r m a tio n

. O n A u g ust 5, 2010, then

- Se cre t a r y of En er g y S t e v e n C hu a nnoun ce d a n

awar d tot a li n g $1 billion in R ec ov e r y A c t f unding to 1) T he F utu re G e n A lli a n c e a nd 2 ) A m e r e n

En e r g y R e sou r ce s a lo n g w ith th e ir p ar tn er s ( B a b c o c k & W il c o x a nd A ir L iquide P r o ce ss a nd

C onst r u c tion, I n c

. ) to r e p o we r a n e x isting pl a nt w ith a dv a n ce d o x y

- c ombu s tion t ec hnolo g i e s.

To g e t h er

, th e se t w o aw ar ds c omp r ise d the F utu r e G e n 2.0 p r oj ec t f o r c l e a n c o a l re po w e r i n g w ith

CCS

. O n F e b r u a r y 28, 2 011, the F utu r e Ge n A lli a n c e s e l e c t e d Mo r g a n C o u n t y

, I llinois, a s the

p ref e rre d l o ca tion f or the F utu re G e n 2.0 C O 2 sto ra g e sit e

, visitor c e nt er

, a n d re s e a rc h a nd t ra ining

fac iliti e s. The Alliance has subsequently taken over leadership of both projects comprising the

FutureGen 2.0 program.

F

utu reGe n 2. 0 su cce ss f ull y c ompl e t e d P h a s e I

, w hi c h in c lud e d id e nti f i ca ti o n o f a s e qu e st ra

tio n sit e

,

p re l i mi n a r y c h ar a c t er i z a tio n a n d t e s t d r il l in g

, a n d a c ommit me n t fr o m th e I llinoi s Comm erc e

8Com m issio n to c ov e r th e p r oj ec t ’ s outpu t und e r i t s pu rc h a s i n g pl a ns

. P h a s e I I c omm e n c e d o n

F e b r

u a r y 1

, 2013

. L ast month, DOE issued a Record of Decision to provide financial assistance to

the FutureGen Alliance for the p roject. The Department intends to provide approximately $1 billion of

financial assistance for the project (the majority of which is authorized under the ARRA through

cooperative agreements with the Alliance).

I n a d d ition to the C C P I a nd F utu reGe n 2.0 p r oj ec ts, the R ec ov e r y A c t h a s a lso h e lp e d f und mo r e

t h a n 8 0 a ddition a l p r oj ec ts, w h i c h in c lud e s th r e e l a r g e s c a le ICCS d e monst ra tions, 10 g e ol o g ic site

c h a r ac t er i z a tions, 43 univ er si t y r e s e a rc h t r a ining p r oj e c ts, s e v e n CC S re s earc h t r a ining c e nt er s, six

ICCS p r oj ec ts f o c u s e d on C O 2 re us e

, a nd 14 p r oj ec ts f o c us e d on a c c e l era t e d c ompon e nt

d e v e lopm e nt in the c o r e re s e arc h p r o g r a m. 2

Examples of progress on these projects include the Arc h e r Da ni e l s Midl a n d I CC S p r oj ec t i n I llinoi s

,

which will demonstrate an integrated system of CO 2 capture in an ethanol production plant and

geologic sequestration in a sandstone reservoir. This project is und e r c onst r u c tio n a n d a pp r o x i m a t e l y

49 p e r ce n t c o mpl e t e

. I n Te x a s

, t h e A i r P r odu c t s a nd Ch e mi ca ls

, I n c

. I CC S p r oj ec t recently b e g a n

ca

ptu r in g C O 2 fr o m t w o st e a m m e th a n e ref o r

m e r h y d r o g e n p r odu c tio n pl a nt s for enhanced oil recovery

(EOR) operations. This project is the first to capture CO 2 at large scale from steam methane

reformers used for hydrogen production, with the captured CO 2 then utilized for EOR. In

December 2013, the Department issued a Record of Decision on the Leucadia ICCS project in

Louisiana, completing the environmental compliance process. When operational, t his project will

sequester 4.5 million metric tonnes per year of CO 2 for EOR.

2 Details about all of the Fossil Energy projects funded by the Recovery Act can be found here: http://energy.gov/fe/fe

implementation

- recovery

- act

. 9It is important to understand that every large demonstration project matures through a series of

stages, each of which requires important milestones and results. These allows the teams of

managers at DOE headquarters and NE TL to monitor progress, mana ge changing national and

global commercial settings, and ensure appropriate use of public funds in support of the approved

national objectives.

C O 2 Ut ili z a t ion T ec hn o logi e s

The c o a l r e s e a rc h a nd d e v e lopm e nt p r og ra m h a s s uppo r t e d re s e a r c h on C O 2 uti l i z a tion

t ec hnolo g i e s f or mo r e th a n a d e ca d e

. W h e n the C ar bon S to r a g e P r o g r a m ( f o r m er l y n a m e d the

S e qu e st ra tion P r og ra m) wa s initi a t e d in the mid

- 1990s, it wa s rec o g ni z e d th a t t ec hnol o g i e s su c h a s

min era li z a tion, c h e mi ca l c onv e r sion to us ef ul p r odu c ts, a l g a e p r odu c ti o n, e nh a n c e d oil rec ov e r y

a nd e n h a n ce d c o a l b e d m e th a n e r ec ov e r y c ould pl a y a n i m po r t a nt r ole in miti g a ting C O 2 e missions.

O th e r th a n E O R

, the C O 2 e missions re du c tion pot e nti a l of th e se a pp r o ac h e s is limit e d, due to

fac to r s s u c h a s c ost a nd m ar k e t s a tu ra tion of s a l a ble b y p r odu c ts. Ev e n so, th e se a p p r o ac h e s ar e

l o g i ca l “f i r st

- m ar k e t e nt r y ” ca ndi d a t e s f or g r ee nhouse g a s miti g a tion, due to th e ir a bili t y to

p r od u c e r e v e n u e fr om use of the C O 2 th a t c ould be us e d to o ff s e t the c osts f o r th e se “ear l y

a dopt er s.” He n c e

, th e se options p r ovide a t ec hnol og y b r i d g e a nd smooth e r t ra nsition to the

d e pl o y m e nt of the l ar g e

- s ca l e

, st a n d

- a lone g e olo g ic s e q u e st ra tion op era tions th a t w ill ulti m a t e l y b e

n e e d e d to ac h i e v e the mu c h l a r g e r emissions r e du c t i ons re qui re d to a p p r o ac h s t a b ili z ing g r e e nhouse

g a s c o n ce nt ra tions in the a tmo s ph ere

.

E O R re p re s e nts the most n ea r t e r m a nd most c omm erc i a l l y a tt r a c tive utili za tion option f or captured

C O 2

. Over the history of the Department, the f o c u s of CO 2

- EOR R&D h a s shi f t e d fr om in c r ea s e d

in cre m e n t a l oil p r odu c tion to monito r in g

, v er i f i ca tion, a nd acc o u nting of g e ol o g i ca l l y sto re d C O 2

10a s p ar t of a c lim a te c h a n g e mitig a tion st ra t e g y

. A s e ar l y a s the 1970s, DO E

- f und e d p r o j ec ts we r e

d e v e loping c o n ce pts to imp r ove the eff e c tiv e n e ss a nd a ppli c a bili t y of C O 2

- E O R

. C u r r e nt l y

, most

commercial E O R p r oj ec ts h a ve b e e n st ra t e g i ca l l y lo ca t e d n e a r c h ea p sou r ce s of n a tu ra l l y o c c u rr i n g

C O 2 or a lo n g pip e lin e s fr om su c h sou rce s. I f re s ea r c h into re du c i n g the c ost of C O 2 ca ptu r e fr om

po w e r pl a n t s p r ov e s su c c e ss f ul, a nth r op o g e nic sou r ce s of C O 2 m a y b ec ome rea di l y a v a il a ble f o r

E O R p r o j ec ts.

The DOE’s 2012 Carbon Utilization and Storage Atlas of the United States projects a potential

CO 2 storage resource estimate of over 200 billion tonnes for oil and gas reservoirs in the United

States. In the near

- term

, in cre m e nt a l oil p r odu ce d via E O R using anthropogenic C O 2 c ould h e lp

o ff s e t the c osts of C O 2 c a ptu re

. T he p r osp ec t of r e l a tiv e l y l o w

- c ost suppli e s of c a ptu r e d C O 2 in

w id e sp rea d a r e a s of the c ount r y c ould, in tu r n, p r ovide the imp e tus f or a n a tion a l r e

- e v a l u a tion of

the E O R pot e nti a l in m a n y m a tu r e f i e lds. W hile c onv e ntion a l E O R is a widely

- used p r o ce ss, C O 2

ca ptu r e and permanent storage is not ye t widely used at po w e r pl a n ts. C ontinu e d e volution of E O R

a nd t ra ns f o r m a tion a l a d v a n ce s in d e v e lopm e nt a nd d e p l o y m e nt of C O 2 ca ptu r e f r om c o a l po w e r

c ould h e lp rea li z e the s y n e r g y b e t w e e n the c o a l/po we r indust r y a nd the oil indust r y

. U tili z a tion of

the C O 2 in E O R w ill i mp ar t kno w l e d g e th a t w i ll be inst r um e nt a l in the De p ar tm e nt ’ s c ontinu e d

focus on R & D in oth e r g e ol o g ic sto ra g e f o r m a t i ons su c h a s s a line th a t have a l a r g e r sto ra g e

pot e nti a l f or C O 2

.

C o n c l u sion

Tod a y

, n e a r l y th r e e out o f e v e r y f our c o a l

- bu r ni n g po we r pl a nts in this c ount r y a r e e quipp e d w ith

t ec hnolo g i e s th a t ca n t r a c e th e ir r oots b ac k to DO E ’ s a dv a n c e d c o a l t ec hn o lo g y p r o g r a m. Th e se

eff o r ts h e l p e d a c ce l e ra te p r odu c tion of c ost

- e ff e c tive c ompli a n c e options to a dd re ss l e g a c y

11e nvi r onm e nt a l issu e s a s s o c i a t e d w ith c o a l us e

. C C S a nd re l a t e d c l e a n c o a l t ec hnolo g i e s ca n pl a y a

cr iti ca l r ole in mitig a ting C O 2 e missions und e r m a n y po t e nti a l f utu r e car b on st a bili z a tion

s ce n ar ios. C O 2 utili z a ti o n t ec hnolo g i e s w ith s a l a b le b y p r o d u c ts a r e lo g i ca l “f i r st m ar k e t e nt r y ”

ca ndid a t e s f o r g r e e nhou s e g a s miti g a tion due to t h e ir a bili t y to p r od u c e r e v e nue fr om the u s e of

C O 2

. E O R w ill be the d o min a nt util i z a tion oppo r t uni t y in the n e a r t er m a n d w ill imp ar t a ddition a l

e x p er i e n c e th a t w ill be us ef ul in the D e p ar tm e nt ’ s c ontinu e d focus on R & D in oth e r sto r a ge

f

o r m a tions , such as deep saline aquifers, necessary to address climate change

. Ne v er th e l e ss,

c h a ll e n g e s r e m a in to promote currently available technologies and develop more economic and

broadly available technologies for d e pl o y m e nt of CCS

. The De p ar tm e n t ’ s re s e a rc h p r o g ra ms and

efforts have spearheaded R&D that would not have occurred otherwise and has successfully leveraged

private investment in a dv a n c i n g the r ea din e ss of th e se e m er g ing c l ea n c o a l t ec hnol o g i e s.

Mr. Chairman, and members of the Subc ommittee, this completes my prepared statement. I would

be happy to answer any questions you may have at this time.

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