Enhanced Oil and Natural Gas Production through Carbon Dioxide Injection

The summary for the Enhanced Oil and Natural Gas Production through Carbon Dioxide Injection grant is detailed below. This summary states who is eligible for the grant, how much grant money will be awarded, current and past deadlines, Catalog of Federal Domestic Assistance (CFDA) numbers, and a sampling of similar government grants. Verify the accuracy of the data FederalGrants.com provides by visiting the webpage noted in the Link to Full Announcement section or by contacting the appropriate person listed as the Grant Announcement Contact. If any section is incomplete, please visit the website for the National Energy Technology Laboratory, which is the U.S. government agency offering this grant.

Enhanced Oil and Natural Gas Production through Carbon Dioxide Injection: NOTE: This descriptive area provides an overview of this Funding Opportunity. YOU MUST READ THE FUNDING OPPORTUNITY ANNOUNCEMENT (FOA)FOR DETAILS ON ADDITIONAL INFORMATION, EVALUATION CRITERIA AND HOW TO PREPARE AN APPLICATION. Please scroll to the bottom of this page under the heading Full Announcement and Other Files and click on the link to access the FOA. The DOE will support producers of oil and gas in carrying out projects to inject carbon dioxide for the purpose of enhancing recovery of oil or natural gas, while increasing the sequestration of carbon dioxide (CO2). The National Energy Technology Laboratory's (NETL) Strategic Center for Natural Gas and Oil program mission is to enhance U.S. security by ensuring the Nation has a reliable energy supply. The Strategic Center for Natural Gas and Oil seeks to accomplish this critical goal by advancing environmentally responsible technological solutions that bolster domestic oil and natural gas recovery. These specific demonstration projects are Congressionally mandated in the 2005 Energy Policy Act, P.L. 109-58, Section 354, Subsection (c) (the Act), with the purpose of promoting the capture, transportation and injection of produced carbon dioxide for sequestration into oil and gas fields, while promoting oil and natural gas production. The Act provides for this demonstration program as follows: (c) Demonstration Program. - (1) Establishment. (A) In General. The Secretary of Energy shall establish a competitive grant program to provide grants to producers of oil and gas to carry out projects to inject carbon dioxide for the purpose of enhancing recovery of oil or natural gas while increasing the sequestration of carbon dioxide. (B) Projects. -- The demonstration program shall provide for (i) not more than 10 projects in the Williston Basin in North Dakota and Montana; and, (ii) 1 project in the Cook Inlet Basin in Alaska. See Section 354(c)(1)(B)(i) and (ii) of the Act. While priority will be given to these areas, applications will be accepted from oil and/or gas producing fields from any region of the U.S. This Funding Opportunity Announcement (Announcement) seeks to maximize U.S. oil and natural gas production in a cost-effective manner through the injection of CO2, while at the same time sequestering significant quantities of CO2 . To promote greater use of industrial CO2, additional consideration will be given to those applications that use anthropogenic CO2 from existing industrial processes for the CO2 flood (e.g., ethanol and gas processing plants, oil refineries, petroleum coke gasification, coal liquefaction, etc.). Projects should clearly set forth the manner in which adverse environmental impacts would be minimized. Finally, the Announcement will give priority programmatic consideration to projects that involve, in a significant way, existing state/regional institutions that have a mandate or significant interest in supporting enhanced oil or natural gas recovery, and reducing the carbon intensity/CO2 emissions in the state and/or region. The overall goal for this Announcement is the demonstration of the technology at a commercially scalable size. The proposed work should include a documented earned value project management approach, with specific decision points (go/no-go). A Phased approach shall be used similar to the following: PHASE I- Field Definition: This Phase would include but not be limited to: 1. Gathering any seismic information needed to further define the subject reservoir 2. Performing engineering/scientific analyses on reservoir mechanics and concept design, and establishing preliminary specifications 3. Performing economic, market, and environmental analyses to verify the technology adds value to the overall well construction process or concept 4. Ensuring that the concept(s) are workable and suitable to justify engineering and procurement of major equipment. 5. Developing the Detailed Engineering plan for Phase II based on reservoir engineering, geologic descriptions, and CO2 source availability 6. Identifying all environmental permitting requirements 7. Justification for proceeding to Phase II PHASE II- Pre-Demonstration Engineering and Procurement: This Phase would include but not be limited to: 1. Completion of detailed engineering, process flow diagrams, piping and instrumentation drawings, and site plans in sufficient detail to allow for procurement of major equipment 2. Procuring equipment 3. Evaluating the results of the seismic testing and identifying additional engineering needs 4. Executing proof of concept testing to validate CO2 injection for enhanced recovery and CO2 sequestration 5. Updating economic analysis and finalizing project field testing plan 6. Obtaining all Environmental permits required for full demonstration 7. Finalization of field demonstration plan and justification to proceed to Phase III PHASE III- Field/System Demonstration: This Phase would include but not be limited to: 1. Preparing a full-scale engineering system design 2. Constructing equipment for field and /or system demonstration and commercialization 3. Performing field demonstration and monitoring, and sharing results with industry An Applicant may propose varying scopes of effort for one or more of the three phases. For example, an Applicant may have already performed significant work on Phase I prior to submittal of their applications. If the proof of concept is acceptable and it is shown that Phase II or III is appropriate based on demonstrated concepts or previous work, then the Applicant could be funded for Phase II or III. If compatible technologies exist, field tests shall include complete integrated packages with the proposed technology and those previously developed under DOE's Programs. Funding will be tied to the meeting of project milestones, and in all cases, the 50% cost share requirement for projects will be maintained during each phase of the project. Projects selected under this Announcement will add to the technological base by demonstrating technology methods for improving the economic viability and effectiveness of CO2 flooding, capture and sequestration techniques. The efforts will support national air quality goals by answering questions surrounding the increased use of CO2 for enhanced oil and natural gas recovery, while also allowing more CO2 to remain in the geologic formations. The results will provide additional benefits by improving the industry performance and extending the life of producing fields.