Frequently Asked
Questions
Why is CIRI looking at Underground Coal
Gasification (UCG)?
CIRI is investing in innovation, technology and a
diverse portfolio of clean, dependable and economical energy sources that are
critical to the future of Alaska. In addition to our interest in UCG, CIRI’s
energy projects and investments involve wind, biofuels and traditional oil and
gas projects. Energy is a critical part of CIRI’s business and we take seriously
the responsibility of developing diverse, responsible energy solutions that
respect Alaska’s natural environment and cultural traditions.
Why is CIRI looking at UCG now?
Southcentral Alaska is facing a looming
energy shortage that requires new thinking. UCG with carbon capture is a
safe, clean technology that can enable responsible development of Alaska
energy resources by Alaskans for Alaskans.
Where will CIRI’s UCG
facility be located?
CIRI is evaluating its privately-owned land
on the west side of Cook Inlet to identify a site with the right
characteristics for a UCG with carbon capture development. The site will
have a large and productive deeply-buried coal seam overlain by a strong
and impermeable layer of rock. The site will be selected for geology and
hydrogeology that minimizes risk of environmental contamination. The
site will be near existing power and natural gas infrastructure and away
from densely populated communities.
What is UCG?
UCG is a technological process that harnesses
the power of abundant and previously untapped underground coal resources to
create cleaner energy without the environmental hazards of coal mining and
surface handling. Read
What is UCG? for more detailed
information.
Why haven’t I heard of UCG?
The simple answer is that UCG development
ended when abundant sources of affordable natural gas and oil became
available after the oil crisis of the 1970s. In recent years, rising oil
and gas prices and shrinking supplies have shifted market economics and
encouraged development of new energy sources, including UCG.
Is UCG a proven technology?
Yes. Lawrence Livermore National Laboratories
(LLNL), a research institute funded by the U.S. Department of Energy and
home to some of the nation’s best minds on energy technology and security,
developed UCG best practices based upon experience and science.
Commercial-scale UCG projects have been used to gasify coal for more than 50
years. There have been more than 50 test and commercial UCG projects
worldwide, including in the United States. Numerous commercial operations
are currently in various stages of design, development, scale-up or
operation. Recent investment and scientific study have led to numerous
refinements that make the UCG process safer and cleaner.
IS CIRI qualified to do this?
CIRI holds a diverse portfolio of
traditional and alternative energy projects, including oil and gas, wind
and biofuels. CIRI is committed to working with technology partners that
are experienced in UCG projects and dedicated to UCG best practices
established by Lawrence Livermore National Laboratories (LLNL). LLNL,
the world’s leading scientific adviser on UCG best practices, will serve
as a technical advisor.
How does UCG work?
UCG facilities involve wells drilled into
carefully selected deep coal seams that are well below the fresh water
aquifer and contained by overlying, strong impermeable layers of rock.
Site operators inject air into one set of wells and start carefully
controlled combustion reactions to convert the coal into syngas that is
produced through a second set of wells. The process is designed so that
operators can effectively control the oxygen supply and, thereby,
combustion from the surface. The process can be stopped at any time by
turning off the oxygen supply. Read
What is UCG? for more detailed information.
How is UCG different from conventional
coal mining and surface handling?
The environmental footprint of UCG is much
smaller than both underground and surface coal mining. UCG is conducted
completely underground and UCG-produced syngas extracted from the coal
can be utilized near-site for power production or efficiently shipped by
pipeline to other destinations. The aboveground landscape remains
largely untouched. There are no open pits, mountaintop removal or
tailing piles. UCG requires minimal surface infrastructure, no coal or
coal-waste handling, and the surface landscape is easily restored upon
project completion. Read our
Environmental Benefits for more information.
Are there risks associated with UCG?
There are risks associated with any industrial
project. UCG’s biggest environmental concerns involve subsidence and
possible groundwater contamination that can be managed with careful project
site selection and evaluation, design and operation. CIRI is committed to
rigorous site selection and management, a full Environmental Impact
Statement (EIS) process and ongoing monitoring of production and
environmental processes.
What is syngas?
Synthesis gas, or syngas, is an energy-rich
mixture of hydrogen, carbon monoxide, carbon dioxide and methane gases
produced from coal or other hydrocarbon sources. It can be handled and used
like natural gas, used to fuel turbines to generate electricity or upgraded
or converted to make synthetic natural gas or liquid fuels.
How much energy can UCG produce?
According to Lawrence Livermore National
Laboratory, UCG provides the potential to increase U.S. recoverable coal
reserves by 300-to-400 percent. UCG makes it possible to harness the
power of coal without the hazards of coal mining or surface handling.
CIRI is working to develop an environmentally responsible UCG project
with carbon capture and management. The initial proposed project would
provide enough syngas to power a 100-megawatt combined-cycle power
plant, which could economically power approximately 70,000 Southcentral
Alaska homes.
What does CIRI intend to do with the
syngas it produces?
Syngas presents numerous opportunities,
from near-site electrical power generation to upgrading into synthetic
natural gas, liquid fuels or other products. These synthetic fuels can
be burned directly for a variety of home, transportation and industrial
purposes, from space heating and cooking to diesel and jet fuels. CIRI’s
initial project would provide an alternative source of electrical power
for Southcentral Alaska.
How does UCG compare to other energy
sources?
UCG syngas burns more cleanly than coal and
is comparable to natural gas. Burning UCG-produced syngas after
pre-combustion carbon capture produces about the same or fewer
greenhouse gas emissions than a combined-cycle natural gas power plant,
the cleanest of all fossil fuel plants. UCG-produced syngas also
significantly reduces or eliminates other pollutants including nitrogen
(NO) and sulfur oxides (SO), mercury, particulates and coal ash.
How will UCG benefit Alaska?
Developing UCG with carbon capture
facilities in Alaska will not require public subsidies and can be
faster, more economical and more reliable than building the
infrastructure needed to import natural gas into Southcentral Alaska.
UCG with carbon capture can enable environmentally responsible
development of Alaska coal resources to replace diminishing oil and gas
resources to provide cleaner, reliable energy. UCG is part of a
diversified energy portfolio that also includes wind, hydrokinetic,
geothermal, that can help Alaska regain its position as a world-class
energy provider and innovator.
When will CIRI begin production?
CIRI began the permitting process in
October 2009 to start its resource assessment testing. Project
planning, permitting and construction could be completed in as little as
four years so that CIRI’s proposed 100-MW power plant could be online
and producing electricity early in 2014.
