Presentation to Ministry of Energy_Jamaica

1. POWER PRODUCTION FUELS &JAMAICA By Neville A. Tomlinson, Ph.D. March 18, 2009 1

2. POWER PRODUCTION FUELS & JAMAICA INTRODUCTION The long term fuels challenge Identifying fuels that that satisfy the following: Plentiful (available for the life of the supporting installation - ≥ 25 yrs.) Available Contains high energy density Economical Safe to transport and use Supported by proven technology Environmentally economical Promote Jamaica’s short and long term economic development : Investor friendly Promotes job creation Promotes improved living standard for Jamaican’s 2

3. POWER PRODUCTION FUELS & JAMAICA CONVENTIONAL SOURCES UNCONVENTIONAL SOURCES Fossil Fuels : -petroleum (oil) - coal - propane - natural gas Nuclear Fuels: - uranium - plutonium - thorium - minor actinides Fossil Fuels: - tar sands - oil shale - heavy oil - coal to liquid (CTL) - coal to gas (CTG) - petcoke Alternative Fuels : - bioalcohol (methanol, ethanol, butanol) - biogas (methane) - biodiesel - fuel cells - hydrogen - non-fossil natural gas Renewables: - wind - solar - tidal - geothermal - biofuels (biogas, bioalcohol, biodiesel, etc) 3

4. POWER PRODUCTION FUELS & JAMAICA GLOBAL TRENDS 4 EIA: Global energy demand grows despite the sustained high world oil prices that are projected to persist over the long term.

5. 5 POWER PRODUCTION FUELS & JAMAICA GLOBAL TRENDS

6. POWER PRODUCTION FUELS & JAMAICA 6

7. POWER PRODUCTION FUELS & JAMAICA 7 Source: Naturalgas .org Approximate Natural Abundance of Mercury Compounds in Hydrocarbons Abundance: D (dominant) - greater than 50 percent of total S (some) - 10 to 50 percent T (trace) - less than 1 percent N (none) – rarely detected ? indicates that data not conclusive Source: Abbot and Openshaw (2002)

8. POWER PRODUCTION FUELS & JAMAICA 8 NATURAL GAS RESERVES

9. POWER PRODUCTION FUELS & JAMAICA Gas Reserves by Country Top gas reserves by country, TCF World reserves: 4980 TCF 1. Russian Federation 1748 2. USA 1475 3. Iran 742 4. Qatar 245 5. Abu Dhabi 188 6. Saudi Arabia 185 7. Venezuela 140 8. Algeria 128 9. Turkmenistan 100 10. Kazakhstan 83 11. Canada 67 12. Uzbekistan 60 9

10. POWER PRODUCTION FUELS & JAMAICA Gas to Market Technologies 10 LNG (Proven technology, expensive) CNG (Not proven, Developing, Cheap)

11. POWER PRODUCTION FUELS & JAMAICA CNG TRANSPORT SYSTEMS DEVELOPMENT SeaNG TrasOcean Gas Floating Pipeline Company Knutsen OAS Shipping Enersea Transport 11

12. ENERGY CONSIDERATIONS & JAMAICA CNG Transport VOTRANS concept in which the natural gas is compressed and cooled to lower temperatures. This reduces the volume of the compressed gas compared to just compressing it at ambient temperatures. At the lower temperatures of 0 to –4oF the process works at lower pressures than at ambient temperatures. Courtesy Enersea 12

13. POWER PRODUCTION FUELS & JAMAICA CNG Cargo Containment System Courtesy Enersea 13

14. 14 POWER PRODUCTION FUELS & JAMAICA CNG TRANSPORT - CONCEPT (Teekay Corporation Cosselle CNG Ships for 150 – 2000 miles Cran and Stennings Technology)

15. 15 POWER PRODUCTION FUELS & JAMAICA CNG ADVANTAGE DISADVANTAGE Not economical for distances > 2500 miles Technology in development – not proven Low energy density Weather sensitive Not suitable for large power requirements Environmental concern / cost impacts High operating pressures (2500 to 3500 psi) Safety Concerns / Explosive hazard No existing regulation for power plant facilities uses. Need to develop regulatory platform Economical for distances ≤ 2500 miles Requires less facilities and infrastructure Low up front investment Inexpensive onshore facilities Can exploit isolated supply sources Suitable for small demand markets

16. EIS / HAZOP / HAZID report/review Cold eyes review of Ship/ Off-shore/Onshore facilities design Engineer representing Jamaica’s interest in the project (design basis review , regulatory concerns, fire protection and ESD philosophy, etc.) Commissioning Regulation 16 POWER PRODUCTION FUELS & JAMAICA CNG PROJECT ENGINEERING SUPPORT

17. POWER PRODUCTION FUELS & JAMAICA LNG tanker underway Photo Courtesy of BP 17

18. LNG Tank 18 POWER PRODUCTION FUELS & JAMAICA

19. 19 POWER PRODUCTION FUELS & JAMAICA LNG ADVANTAGE DISADVANTAGE Expensive onshore facilities Large up front investment Safety Concerns Facility needs careful regulation (NFPA 59A can be adopted) Only 100 LNG liquefactions trains currently exist worldwide Economical for distances > 2500 Proven Technology Can support large power demands Vaporized gas can be supplied as feed-stock for other products Suitable for large demand markets Weather flexibility High energy density CNG (60% that of diesel )