Alter NRG Corp. finalized purchase of Erco Site, in Lamont County, east of and adjacent to Bruderheim

September 17, 2008 by Walter Schneider.

Alter NRG Corp. announces the finalization of the plant siting for the first Integrated Gasification Combined Cycle (IGCC) power facility in Canada.

TSXV - NRG CALGARY, Sept. 15 /CNW/ - Alter NRG Corp. (”Alter NRG” or the “Company”) is pleased to announce that it has closed the previously announced acquisition of a project site in Bruderheim, Alberta (approximately 60 kilometers northeast of Edmonton) for $3.1 million, including $0.6 million in costs related to settlement of existing transmission commitments. The Company plans to use the site to develop Canada’s first IGCC facility with the first phase to be operational as early as 2010. On commencement of operations, the facility is expected to be capable of producing approximately 120 megawatts (MW) of electric power using a blend of natural gas as well as synthesis gas (syngas) produced using Alter NRG’s proprietary plasma gasification technology. The facility will be designed for carbon capture and storage (CCS) with approximately 600,000 tonnes per year of captured CO2 to be injected into nearby geological formations or used at nearby oilfields in enhanced oil recovery (EOR) projects….(Full Story)
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Comments by folc.ca : It is obvious that lawyers had a heavy hand in wording the long list of exceptions and cautionary notes stated at the end of the Alter NRG news release, under the heading, Advisory Respecting Forward-Looking Statements. The list of exemptions shown there is very long. In combination with that list, the following key statements contained in the Advisory loom large and heavy:

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon….

The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

Translating the legalese into English for normal mortals and in the process condensing it into something that is more useful, what that means then is that, quite possibly, none of the information in the news release by Alter NRG is necessarily final or subsequently true after having been published.

The news release contains information that should worry people living close to the proposed Alter NRG power generating plant, some within less than half a mile, with the eastern boundary of Bruderheim being as close as half a mile to the plant.

The following identifies a few of the statements contained in the news release and also some of the concerns relating to them.

1. On commencement of operations, the facility is expected to be capable of producing approximately 120 megawatts (MW) of electric power using a blend of natural gas as well as synthesis gas (syngas) produced using Alter NRG’s proprietary plasma gasification technology.

Comment by folc.ca: Natural gas is a natural resource that is the primary fuel for home heating in Alberta. Alberta’s natural gas is also a resource that is rapidly being depleted, as a result of which the price of natural gas is escalating.  The production of electric energy from natural gas and its substitute, syngas, is wasteful and will increase the demand for natural gas and syngas. That will cause increases in prices for gas used for home heating.

2. The facility will be designed for carbon capture and storage (CCS) with approximately 600,000 tonnes per year of captured CO2 to be injected into nearby geological formations or used at nearby oilfields in enhanced oil recovery (EOR) projects.

Comment by folc.ca: The news release states nothing about the fact that CO2 is not a pollutant. More importantly, the news release makes absolutely no mention of pollutants that the plant will produce and how those will be dealt with, so as to prevent their injection into the environment, for instance, nitrous oxides and sulphur dioxide, of which especially the latter has the potential of creating serious and very harmful degradation of the local and general environment.

Nevertheless, there are issues of great concern that directly relate to the scheme for CO2 capture, transport and disposal.

The process of CO2 capture and injection into nearby geological formations requires transportation of an average of 1,700 tonnes of CO2 each day.  How will that be done and by what means?  If the transporting is by trucks, that means that there will be an enormous increase in road traffic, in the order of an average of at least 280 trucks a day (assuming an average of six tonnes of CO2 carrying capacity per truck), about 12 trucks every hour (assuming that the trucks operate around the clock) and considerably more than that if the trucking operations cease during the night.

Furthermore, the logistics of the whole process seem daunting and are not likely to work without flaws or bottlenecks.  If CO2 capture, transporting and injection into the ground should at any time and for any reason be below the required average of 1,700 tonnes per day, will the power plant be shut down, or will it make use of as yet unidentified buffer storage on site?  That storage facility will have to be substantially large and be capable of containing CO2 under great pressure.

Nothing is perfect.  The storage and transporting of large volumes of CO2 present dangers to people and property in the vicinity of the plant and transportation routes.  Aside from the increased likelihood of vehicle accidents in Bruderheim and vicinity, what are any other dangers the scheme of CO2 capture, transporting and injection will pose to residents in the area?

3. The project is expected to be completed in two phases in order to take advantage of near-term capacity needs in the Alberta power market.

Comment by folc.ca: Alter NRG cannot be faulted for wanting to take advantage of the increasing market demand for electric energy. However, the escalating shortage of electric energy is a result of the Alberta government’s failure to create effective policies for the construction of large-scale power plants for the generation of electric energy. That massive problem will not be solved by increasing reliance on Band-Aid solutions, such as energy production through wind-turbine farms (of primary benefit only to the main producer of wind turbines in North America: General Electric) and through natural-gas-fired power plants.

Electric energy production from natural gas or syngas will add to demand for natural gas and for syngas. That will drive up the price for home-heating fuel and for fertilizer (the price for fertilizer is presently at about $2,000 a tonne).

4. NGCC facilities are the cleanest fossil fuel power generation technology available today.

Comment by folc.ca : That statement is true, but it is not all of the truth. Aside from increasing the demand for natural gas — with associated price increases, the demand for increased production of natural gas will also increase the production of sulphur. Especially new natural gas sources produce sour gas, meaning gas that must be stripped of its large content of hydrogen sulphide before it can be injected into the Alberta gas distribution system.

The inventory of Alberta’s waste sulphur is presently at about $11 million tonnes. Large-scale use of natural gas will escalate Alberta’s problems with issues arising from stockpiling waste sulphur.

Canada is one of only two nations in the world (the Russian Federation being the other one) that presently and unreservedly permit the stockpiling of waste sulphur. Large scale electric energy production from coal can without a doubt be made to be as clean as that from natural gas. The current technology for that is to store waste sulphur produced from coal-fired power plants in the form of relatively inert gypsum (much like the gypsum pile at the Agrium Fertilizer Plant south of Redwater).

5. The regulatory process is underway, as regulatory permitting is critical for early implementation of the first phase. The Company expects timely issuance of the required permits.

Comment by folc.ca : Whatever it may mean that the “regulatory process is underway,” that process has not yet progressed to the point where any of the residents who are concerned parties in the vicinity of the proposed power plant have been formally notified of any hearings or other aspects of the required “regulatory process” and environmental reviews.

6. The second phase of the project will use petroleum coke and oilfield waste, which are both available in the nearby area, to create syngas using the Alter NRG proprietary gasification system.

Comment by folc.ca : Neither that statement nor anything else in the Alter NRG news release mentions that petroleum coke and oilfield waste contain potentially very large portions of sulphur and other pollutants that need to be stripped from either those primary fuel sources or from the syngas produced from them or from the flue gases of the Alter NRG power generating plant, so as to meet environmental pollution parameters dictated by Alberta Environment.

What will Alter NRG do with the pollutants, such as waste sulphur, it would produce at its proposed power generating plant to be located just a few hundred meters east of Bruderheim?

7. The Bruderheim facility will capture up to 90% of the CO(2) produced by the plasma gasifier (up to 1,700 tonnes per day) which is expected to be sold to oilfield producers in the nearby area for EOR.

Comment by folc.ca : What that means is that ten and more percent (how much more is left unspecified) of the CO2 produced will not be captured.

Still, the fact is that CO2 is not a pollutant, and that no one should worry about it, except people like Al Gore (who makes a good living from the brokering of carbon credits and from promoting the fears required to make that carbon credit brokering a viable enterprise).

However, we must worry about the pollutants that the Alter NRG news release does not mention at all. It is worrysome in the extreme that the Alter NRG news release does not mention any pollutants other than the ostensibly polluting but in reality environmentally-beneficial CO2.

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Without a doubt, benign and even environmentally-beneficial CO2 is a major component of the emissions of the power generating plant proposed by Alter NRG.  Still, another potentially benign and major component of the proposed power plant’s effluents, water (not mentioned by Alter NRG), will in all likelihood have a very detrimental impact on the environment in the immediate vicinity of the proposed power plant.

Water is a major by-product of the combustion of hydrocarbons. The water vapour that would come out of the flue stacks of the proposed power plant would be invisible for varying distances from the flue stacks. However, the distance of that invisibility varies with the weather — humidity and temperature.

In extremely cold weather, the water vapour turns into a large cloud that, depending on local weather conditions, lingers in the local environment and adds to the often and increasingly severe fogs that have become more and more prevalent in and around Bruderheim.

Given that the fog to be produced by the proposed power plant will contain sulphur dioxide and nitrous oxides, the fog will be acidic. Alter NRG stated nothing about that. That is extremely worrying and needs to be addressed in the environmental review process for the plant, of which, so far, we have heard absolutely nothing.

SULFUR COMPOUNDS (SOx)

The primary reason sulfur compounds, or SOx, are classified as a pollutant is because they react with water vapor (in the flue gas and atmosphere) to form sulfuric acid mist. Airborne sulfuric acid has been found in fog, smog, acid rain, and snow. Sulfuric acid has also been found in lakes, rivers, and soil. The acid is extremely corrosive and harmful to the environment….

Historically, SOx pollution has been controlled by either dispersion or reduction. Dispersion involves the utilization of a tall stack, which enables the release of pollutants high above the ground and over any surrounding buildings, mountains, or hills, in order to limit ground level SOx emissions. Today, dispersion alone is not enough to meet more stringent SOx emission requirements; reduction methods must also be employed….

Flue gas desulfurization systems are classified as either non-regenerable or regenerable. Non-regenerable FGD systems, the most common type, result in a waste product that requires proper disposal. Regenerable FGD converts the waste by-product into a marketable product, such as sulfur or sulfuric acid. SOx emission reductions of 90-95% can be achieved through FGD. Fuel desulfurization and FGD are primarily used for reducing SOx emissions for large utility boilers. Generally the technology cannot be cost justified on industrial boilers.

Emissions Cleaver Brooks Package Boiler Systems 2002 08 17

Note: Given the escalating world sulphur glut, converting “the waste into a marketable product” requires solutions that have not yet been found to be practical or viable. Still, it is wrong or only partially correct to state that “Generally the technology cannot be cost justified on industrial boilers.”

The controlling factor is not cost justification (that would make it a discretionary option) but environmental regulation and is therefore mandatory, not an option. –Walter

–Walter Schneider
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Related story:  Alter NRG powerplant east of Bruderheim put on ice (Oct, 22, 2008)

Posted in Community & Industry, Alternative Energy Sources, Town of Bruderheim, Explosions & Fires, Acid Rain, Hydrogen-Sulphide, Emission Incidents & Issues, Nitrogen-Oxides, Sulphur-Dioxide | Print | 1 Comment »