Western Energy Corridor -- Full Study

We s t e r n E n e r g y C o r r i d o r

Executive Summary

T
he energy resources con- In 2009, WEC oil production was Coal production within the WEC Significant quantities of uranium
centrated along the Rocky approximately 2.3 million barrels was approximately 620 million found in the WEC supply a number
Mountains and northern per day, with continued produc- short tons (~560 million metric of nuclear power plants interna-
plains in Canada and the United tion growth anticipated from the tons) with approximately 15 billion tionally. Saskatchewan currently
States (U.S.) are world class, Alberta oil sands and the Bakken short tons (14 billion metric tons) dominates uranium production and
as measured by their diversity, Formation. Proven reserves, domi- in recoverable reserves from active hosts the largest uranium mine in
magnitude, and longevity. This nated by Alberta oil sands, cur- mines in 2009. WEC coal supplies the world. The province contrib-
area, informally referred to as rently place the region third in the much of the electricity produc- uted 18% of world production in
the Western Energy Corridor world with approximately 170 bil- tion for Canada and the U.S., and 2009, and is complemented by
lion barrels. Undeveloped potential the WEC hosts the largest coal- growing production south of the
(WEC), is strategic to meeting
oil resources within the WEC are producing area (the Powder River U.S.-Canada border.
the increasing energy demand in
estimated at over 4 trillion barrels Basin) in Canada and the U.S.
Canada, the U.S., and interna-
(in-place). This includes oil shale Although large amounts of WEC
tionally. These energy resources,
reserves in the Green River Forma- The WEC also contains several raw energy resources are exported,
collectively, also provide a tion that spans parts of Wyoming, large river systems, which host these resources also contribute to
foundation for regional economic Colorado, and Utah. a number of hydropower dams local electricity and transportation
development, including a plat- within and outside the WEC. Brit- fuel production. In 2009, electric-
form for moving the region’s en- Natural gas production in the WEC ish Columbia alone produced over ity generation within the WEC was
ergy products up the value chain. was approximately 10.5 trillion cu- 62 GWh of hydropower in 2009. over 370 million MWh. Of this,
To provide a foundation and bic feet (297 billion cubic meters) Significant electrical generation more than 70% came from fossil
stimulus for a bi-national regional in 2009, which places the WEC potential remains untapped, espe- energy plants (primarily coal and
dialogue, Idaho National Labora- third in natural gas production cially in the north. natural gas), approximately 24%
tory (INL) created this document worldwide. Although conventional from hydropower, and approximate-
with input from representatives of gas production is declining, new Other renewable energy resources, ly 4% from other renewables with
participating states and provinces. techniques and technological ad- such as some of the greatest wind no contribution from nuclear energy.
Further data was gathered from vances have enabled development and bioenergy potential in Canada
reliable internet and print sources of unconventional gas resources and the U.S., are available, but Transportation fuels production
and compiled to provide an over- within the area (i.e., shale gas, remain mostly untapped in the in the WEC is primarily from oil
view of energy resources within tight gas, and coal bed methane), WEC. Efforts are underway to refining, with small amounts of
the WEC. increasing overall natural gas also develop geothermal and solar biofuels (i.e., biodiesel and etha-
production. potential within the region. nol). Plans are underway to build


Executive Summary

coal-to-liquids (CTL) and liquid wildlife, and climate change. In ad- WEC states and provinces are criti-
natural gas (LNG) plants. dition, energy resources are critical cal players in supplying the U.S.
for developing other natural re- and Canada with energy resources
Energy delivery infrastructure is sources in the region such as water, this century and beyond. Given
rapidly expanding. Oil and gas minerals, agricultural, and fertil- the importance of these resources
pipelines are both planned and izer. Also, technological innovation there is an unprecedented opportu-
built to provide access from newly continues to play a pivotal role in nity for these states and provinces
developed fields such as the Bak- accessing energy resources and
ken Formation to both traditional mitigating environmental impacts.
and nontraditional markets, includ- And energy demand and invest-
The Western Energy Corridor contains a world-class
ing Asia. There are also plans to ment from Asia will continue to concentration of energy resources critical to ensuring
expand CO2 pipelines to enhance impact markets around the world.
oil recovery and CO2 sequestration. regional, U.S., Canadian, and international energy security
New transmission lines are being The outlook for the WEC’s eco-
planned and built to access and nomic prosperity is both timely and economic development. The states and provinces
integrate more remote renewable and promising. Vast natural within the Corridor have an unprecedented opportunity
energy sources, such as wind. Rail resources, strong commitment
expansion continues to be essen- to economic development and a to collaborate with each other relative to challenges and
tial to coal development. New rail pledge to maintain quality of life
lines could also support delivery place the WEC in a unique posi- opportunities associated with developing these resources.
of biomass feedstock as well as tion to capitalize on its riches and
product from the Alberta oil sands become an international leader to collaborate and more effectively
and the Bakken Formation to new in energy resource development. address pertinent energy chal-
markets. Realizing the potential for devel- lenges and opportunities including
opment, distribution, and utiliza- policy, regulation, technology de-
Sustainable energy development tion of the WEC’s energy resources ployment, and regional economic
within the WEC relies on a num- will present both opportunities and development. Such an approach
ber of interdependent factors. For challenges that will require more may be advantageous to these low-
example, energy development sophisticated and regionally inte- population jurisdictions given their
increasingly requires mitigating grated approaches, enabling policy, sometimes limited political influ-
impacts on air, water, landscape, and continued investment. ence at the national level.


Contents

Contents Electricity Power Generation . . 22 Energy-Resource Nexus . . . . . . 38

Acronyms . . . . . . . . . . . . . . . . . . 1 Coal-Fired Electric Power Agriculture . . . . . . . . . . . . . . 38
Generation . . . . . . . . . . . . . . 23
Introduction . . . . . . . . . . . . . . . . . 2 Fertilizer Production . . . . . . . 38
Natural Gas . . . . . . . . . . . . . . 24
Fossil Energy Resources . . . . . . . 4 Water Resources . . . . . . . . . . 39
Renewable Energy . . . . . . . . 24
Crude Oil . . . . . . . . . . . . . . . . 4 Fossil Energy Development . 39
Nuclear Energy . . . . . . . . . . . 25
Conventional Crude Oil . . . 5 Influences on WEC Energy
Liquid Fuels Production . . . . . . 26 Development . . . . . . . . . . . . . . . 40

Unconventional Oil
Resources . . . . . . . . . . . . . . 5 Petroleum Refineries and Demand . . . . . . . . . . . . . . . . 40
Upgraders . . . . . . . . . . . . . . . 26
Natural Gas . . . . . . . . . . . . . . . 6 Energy Supply . . . . . . . . . . . 40
Liquid Natural Gas

Conventional Natural Energy Environment . . . . 41
Facilities . . . . . . . . . . . . . . . . 26
Gas . . . . . . . . . . . . . . . . . . . 7 Existing and Emerging
Coal-to-Liquids . . . . . . . . . . 27

Unconventional Export Markets . . . . . . . . . . . 41
Natural Gas . . . . . . . . . . . . 7 Biofuels . . . . . . . . . . . . . . . . 27
Price
. . . . . . . . . . . . . . . . . . 41
Coal . . . . . . . . . . . . . . . . . . . 9 WEC Energy Delivery . . . . . . . 28
Investment . . . . . . . . . . . . . . 41
Renewable Energy Resources . . 12 Electricity Transmission . . . . 28
Infrastructure . . . . . . . . . . . . 42
Hydropower . . . . . . . . . . . . . 12 Natural Gas Pipelines . . . . . . 29
Technological Innovation . . . 42
Wind
. . . . . . . . . . . . . . . . . . 13 Oil Pipelines . . . . . . . . . . . . . 31
Research Assets . . . . . . . . . . . . . 42
Solar
. . . . . . . . . . . . . . . . . . 15 CO2 Pipelines . . . . . . . . . . . . 32
Summary . . . . . . . . . . . . . . . . . . 44
Biomass . . . . . . . . . . . . . . . . 16 Rail . . . . . . . . . . . . . . . . . . 34
Appendix A—References . . . . . 48
Geothermal . . . . . . . . . . . . . . 17 Energy and Environment . . . . . 36
Appendix B—Tables . . . . . . . . . 57
Tidal/Ocean Energy . . . . . . . 19 Air . . . . . . . . . . . . . . . . . . 36
Glossary . . . . . . . . . . . . . . . . . . 73
Uranium Resources . . . . . . . . . . 20 Water . . . . . . . . . . . . . . . . . . 36
Landscapes and Wildlife . . . 37
Climate Change . . . . . . . . . . 37


Acronyms

AECO Alberta Energy Company CSUG Canadian Society for IPPBC Independent Power SAGD steam-assisted gravity
(trading symbol) Unconventional Gas Producers of British drainage
ARRA American Recovery and CTL coal-to-liquids Columbia TCF trillion cubic feet
Reinvestment Act DOE Department of Energy ,6* LQ VLWX FRDO JDVLÀFDWLRQ U308 triuranium octoxide
2
ATR Advanced Test Reactor EEI Edison Electric Institute kWh/m kilowatt-hours per square UHOP Utah Heavy Oil Program
bbl/d barrels per day meter
EIA Energy Information USGS United States Geological
BCF billion cubic feet Administration /1* OLTXLÀHG QDWXUDO JDV Survey
BCFD billion cubic feet per day EOR enhanced oil recovery MMCFD million cubic feet per WCI Western Climate
day Initiative
BDt/yr bone dry metric tonnes EPA Environmental
per year Protection Agency MMst million short tons WEC Western Energy Corridor
BOE barrel of oil equivalent EPAct Energy Policy Act MRO Midwest Reliability WECC Western Electricity
Organization Coordinating Council
BP British Petroleum FERC Federal Energy
Regulatory Commission MW megawatt WGA Western Governors’
Bst billion short tons
GIS geographic information MWh megawatt-hour Association
CAPP Canadian Association of
Petroleum Producers system NERC North American Electric
GW gigawatt Reliability Corporation
CBM coal bed methane
GWh gigawatt-hour NETL National Energy
CCEI Canadian Center for
Technology Laboratory
Energy Information IEA International Energy
Agency NPP nuclear power plant
CCS carbon capture and
sequestration ,* LQWHJUDWHG JDVLÀFDWLRQ NYMEX New York Mercantile
combined cycle Exchange (trade symbol)
CEA Canadian Electricity
Association IJHD International Journal of RD research and
Hydropower and Dams development
CHA Canadian Hydropower
Association INL Idaho National 5027 5RFN 0RXQWDLQ 2LOÀHOG
Laboratory Testing Center
CO2 carbon dioxide
IPCC Intergovernmental Panel RPS renewable portfolio
CPV concentrator photovoltaic
on Climate Change standard

1


Introduction

W
orld-class energy As world energy demand increases
resources strategic in the 21st century, the U.S.,
to North American Canada, and likely Asia will be-
energy security and economic come more dependent upon WEC
development are concentrated resources. Development, distribu-
along the Rocky Mountains and tion, and utilization of these re-
northern plains in Canada and gional resources will present both
the U.S. This region is informally opportunities and challenges that
referred to as the Western Energy will require more sophisticated and
integrated approaches. Strategic
Corridor [WEC; Figure 1]. The
energy development and steward-
fossil energy resources in this
ship will be required to ensure
region are rivaled in only two
energy security, regional economic
other regions, and the proven
development, and quality of life
uranium reserves are among throughout the region. In addition,
the world’s largest. Renewable the enormous quantity of energy
resources including wind power, resources in the region provides
hydropower, bioenergy, geother- a foundation for attracting value-
mal energy, and solar energy are added industrial enterprises.
also concentrated in this region.
Substantial existing and planned The states and provinces hosting
energy infrastructure, including these resources can build a greater,
refineries, pipelines, electrical more prosperous and sustainable
transmission lines, and rail lines future based on their supplies. To
provide access to these resources stimulate a bi-national regional
and facilitate their development. dialogue on the current and future

Figure 1.
Approximate boundary of the
WEC and outline of participating
provinces and states. [M1]

2


Introduction

use of these resources, Governor strategy with common goals and provinces, and even Canadian ter-
Brian Schweitzer of Montana and policies that promote a balance ritories can potentially be added in
Premier Brad Wall of Saskatche- between environmentally-sound the future, which would increase
wan solicited interest from several development, energy security, and to the collective energy resource
regional governors and premiers to a competitive industrial base. This wealth of the WEC.
engage further on this topic. This document provides a foundation
group subsequently determined and framework for governors and Finally, the energy sector mar-
that it requires additional informa- premiers to focus their dialogue on ketplace is dynamic, meaning
tion about the regional resources leveraging each other’s resources information can quickly become
to foster a productive dialogue. and capabilities within the bi-na- obsolete and need to be updated as
To address this need, Gov. Sch- tional WEC region. research and dialogues progress.
weitzer, on behalf of a number of
incumbent governors and pre-
miers, requested that INL prepare Strategic energy development and resource stewardship are
a inventory of energy resources
within the WEC. paramount to ensure energy security, regional economic
With the assistance of representa-
development, and quality of life throughout the region.
tives from participating states and
provinces, INL prepared this docu- The WEC’s boundary, as currently This document provides the latest
ment highlighting general energy outlined for this discussion, is available information at the time
resource information, conversion approximate, designed to encour- the research was done, which has
methods into marketable forms, age dialogue built around a novel been extracted from public sources
and infrastructure required to geographic perspective, and should with references provided. Maps
deliver it to users. A select num- be considered preliminary. This included in the document typically
ber of affiliated topics have been document focuses on addressing represent compilations of maps
included to facilitate the dialogue the following states and provinces: produced at various levels of detail
around interdependent aspects of Alberta, British Columbia, Colora- and should be considered qualita-
developing these resources. These do, Idaho, Montana, North Dakota, tive graphical overviews.
topics, whether technical, social, Saskatchewan, South Dakota,
or economic, must rely on a sound Utah, and Wyoming. Other states,

3


Fossil Energy Resources

S
ubstantial crude oil, natu- Crude Oil
ral gas, and coal resources
exist throughout the WEC. Conventional and unconventional
Crude oil contributes substantial- oil reservoirs exist throughout
the WEC [Figure 2]. Combined
ly to U.S. and Canadian transpor-
proven reserves of both conven-
tation needs, while natural gas
tional and unconventional oil are
and coal contribute substantially
estimated to be 175 billion barrels,
to electricity production. Both
dominated by Alberta oil sands at
conventional and unconventional approximately 170 billion barrels
WEC oil and gas resources are and the province’s conventional
discussed below. Oil and gas that crude reserves of approximately
can be recovered through meth- 1.4 billion barrels [1]. This estimate
ods in use for decades are con- places Alberta’s reserves (and thus
sidered “conventional” resources. the WEC) third behind Venezuela
However, fossil resources that (211 billion barrels) and Saudi Ara-
require recently developed and bia (267 billion barrels) in proven
innovative recovery technologies oil reserves [2; Figure 3]. Proven
are deemed “unconventional” reserves provide a conservative
resources. As the “easier-to-get” estimate of the amount of oil (or
conventional resources are de- gas) that will be produced. Cur-
pleted, unconventional resources rent overall crude oil production
will make up a greater proportion from the region is approximately
of the oil and gas portfolio in the 2.3 million barrels per day, 36% of
WEC. which comes from conventional
sources and 64% from the Alberta
oil sands [Table 1].

Figure 2.
WEC crude oil reservoirs. [M2]

4



300 tion, the Cardium Formation in development of this resource is still
267
Alberta is generating significant in its infancy. As a result, reserve
250
211 interest given the potential to apply estimates for the Grosmont Deposit
200 fracturing stimulation techniques, have not been released because
175
Billion bbl of Oil

similar to those employed in the there are no commercial projects
150
Bakken, which may dramati- operating in the area. In 2009, total
100 cally increase oil recovery in these bitumen production in Alberta was
fields. There are also emerging approximately 1.5 million barrels
50
opportunities within the Viking per day [7]. Utah’s in-place bitu-
0 Formation in Alberta and Shauna- men reserves are between 12 and
Saudi Arabia Venezuela WEC von Formation in Saskatchewan. 19 billion barrels [8].
Figure 3.
Conventional and unconventional proven crude oil resources. Unconventional Oil Resources
In Place: 1,800 B bbl
Oil Sands
Conventional Crude Oil An “oil boom” has recently In 2009, proven bitumen oil sands
Ultimate Recoverable: 315 B bbl
Proven: 170 B bbl
emerged around development of reserves within the WEC were
Some of the larger conventional the Bakken Formation, which approximately 170 billion barrels.
oil reserves are located in Alberta, encompasses portions of Montana, Ultimate recoverable reserve esti-
Saskatchewan, and North Dakota North Dakota, and Saskatchewan. mates for this Alberta resource are
[Table 2]. Collectively, the WEC The Bakken Formation’s estimated as high as 315 billion barrels. Esti-
is estimated to contain proven re- proven reserves are between 3.1 mates of Alberta’s in-place resource
serves of approximately 5.4 billion billion barrels (95% probability of are about 1.8 trillion barrels of bitu-
barrels as of 2009 (excludes oil recovery) and 4.3 billion barrels men [Figure 4]. It is estimated that
sands), which accounts for about (5% probability) [3]. In the fall of the Grosmont Carbonate Deposit
21% of total Canada/U.S. conven- 2011, the U.S. Geological Survey contains approximately 406 billion
tional reserves. Production of con- will initiate a new assessment of barrels of bitumen resource in place
ventional crude oil within the WEC the recoverable oil in the Bakken and is the second largest bitumen-
is just under 1.3 million barrels per Formation [4]. In 2010, from North bearing formation in Alberta [6].
day, based on 2009 data, which is Dakota alone, production averaged Technologies and techniques to Figure 4.
about 35% of total U.S./Canadian nearly 310,000 barrels per day [5]. recover bitumen from carbonates Alberta’s unconventional oil
production in 2009 [Table 1]. In addition to the Bakken Forma- are not finalized, and commercial reserves from oil sands.

5



Oil Shale room-and-pillar mining)yields a behind a much heavier crude oil tional production and declining
Oil shale is another immense recoverable resource estimate of [11]. Heavy/extra heavy oils have onshore conventional production in
yet relatively undeveloped WEC 1.58 trillion barrels of oil, which higher densities and viscosities the U.S. through 2035 [Figure 3].
resource. Approximately 70% of is close to the 1.82 trillion barrels than light oil, but their densities Shale gas will be the largest con-
the world’s oil shale is found in the suggested by the Department of and viscosities are lower than those tributor to the projected increase
Green River Formation in Colo- Energy [10]. Estimates of recover- of bitumen. Approximately 1.25 in gas production. Tight gas and
rado, Utah, and Wyoming—nearly able oil shale resource are 17-33% billion barrels are found in the U.S. CBM will contribute significant
3.15 trillion barrels in place [Table greater than current estimates of portion of the WEC, primarily in fractions to the projected total [12;
3; Figure 5]. Oil shale deposits also world-wide proven conventional Wyoming. Alberta and Saskatch- Figure 6].
exist in Saskatchewan and British oil resources. ewan have significant resources of
Columbia. However, these deposits heavy oil, primarily in their car- Total reserves of conventional
are not well characterized and are Heavy Oil bonate formations; Wyoming and and unconventional natural gas in
considered small relative to the Heavy and extra heavy oils are un- the rest of the WEC have relatively the WEC are at least 680 trillion
Green River Formation resource. conventional sources that have lost minor amounts. The WEC’s total cubic feet (TCF), primarily as tight
their lighter oil fractions, leaving heavy oil reserves are estimated at gas and coal bed methane. This is
Oil shale is rock containing 550 billion barrels [Table 4]. equivalent to more than 64 years of
relatively high amounts of organic production, based on current pro-
matter known as kerogen. When Natural Gas duction rates. Alberta, Wyoming,
kerogen is heated, it can be con- and Colorado rank first through
The WEC contains abundant third in the WEC. Almost 98%
verted to petroleum products that
conventional natural gas resources of Canada’s proven conventional
can be upgraded and refined. The WEC
3,100 (70%) including more than 38% of the natural gas is located within the
oil shale may be treated in place
combined remaining reserves of WEC [Table 5].
(in-situ retort) or in a surface facil-
Canada and the U.S. [Table 5]. In
ity (ex-situ retort). Not all of this
addition, the WEC has vast uncon-
resource, however, is recoverable. Rest of World
ventional gas resources including
Estimates of the recoverable frac- 1,300 (30%)
coalbed methane (CBM), shale
tion range from 45-80% for mining
gas, and tight gas. The relative im-
operations. There are currently no
portance of these reserves is clearly
such estimates for in-situ methods
Figure 5. illustrated by the U.S. Energy In-
[9]. Assuming a recoverable factor
In-place oil reserves from shale formation Administration’s (EIA’s)
of 50% (near the lower end for
(billion bbl of oil). estimates for increased unconven-

6



WEC natural gas production esti- make up almost two thirds of the In 2009, 57.4 billion cubic feet per the next 25 years due to enormous
mated in 2009 was approximately WEC’s production, which ranks day (BCFD), or 85%, of natural North American quantities.
10.5 TCF per year, which is ap- third behind Russia and the U.S. gas consumed in the U.S. came
proximately one third of the com- [Table 6]. from domestic sources. More than Coalbed Methane
bined U.S. and Canadian produc- 10% came from Canada, and about Nearly 63% of the U.S. and Cana-
tion, and almost 8% of the world 5% came from international sourc- da’s total CBM reserves are located
production. Alberta and Wyoming es in the form of liquefied natural in the WEC. Approximately 44%
gas. Nearly 59% of Canada’s of established U.S. reserves are
production is exported to the U.S., located in Colorado and Wyoming,
Natural gas production in the WEC is approximately 10.5 with Alberta alone exporting over while 64% of established Cana-
71% of that (approximately 1.85
TCF per year, which places it third behind Russia and the TCF) in 2009 [13]. Figure 8 shows
U.S. in world ranking the locations of these reserves.
Colorado and Wyoming 54%
British Columbia and Alberta 46%
History 2009 Projections
Conventional Natural Gas
30 Rest of WEC 10%

Established conventional natural
25 gas reserves in the WEC exceed
Total
127 TCF — nearly 40% of the re-
Total
20 Shale gas maining established reserve totals
Trillion cubic feet [TCF]

60 TCF
for Canada and the U.S. [Table 5;
15 Figure 7]. 13 TCF
Tight gas
10 Unconventional Natural Gas 57 TCF

Lower 48 onshore conventional The growing amount of accessible
5
Alaska Lower 48 offshore
unconventional gas resources will
Coalbed methane increase natural gas production in
0
1990 2000 2009 2015 2025 2035 both the WEC and the rest of North
America. Shale gas is expected to Figure 7.
Figure 6. be the most significant contribu- Established (conventional)
U.S. natural gas production by source, 1990–2035. [12] tor to domestic production during reserves: 127 TCF.

7



dian reserves are found in Alberta North Dakota have proven reserves
and British Columbia [Table 7]. of 510 BCF. This value is less than
Production of CBM in the WEC is 1% of the U.S. proven reserve of
expected to grow in the future. shale gas [Table 8]. In 2009, shale
gas production in these states was
Tight Gas 33 BCF. Estimates of the amount
Tight gas formations are distribut- of gas in place will almost certain-
ed throughout the WEC. Estimates ly increase as previously neglected
of tight gas sands for individual shale formations are evaluated. The
states are not readily available, but amount of gas that ultimately will
a recoverable U.S. reserve estimate be recovered may depend more on
is ~379 TCF [14]. In-place resourc- improvements in extraction tech-
es of tight gas in British Columbia nology, market prices, and govern-
are greater than 300 TCF [15]. ment regulation than the amount
of gas in place. At this stage,
Shale Gas proven reserves are a conservative
Shale gas is extracted from true estimate of the amount of gas that
shales and mudstones, by far the can be recovered, and technically
most common rocks in sedimenta- recoverable resource estimates are
ry basins. The gas content in these speculative.
rocks varies widely, but it is likely
that important shale gas discover-
ies will be made in the WEC. New
assessments of the technically
recoverable North American shale
gas in the past few years have sub-
stantially increased confidence that
the domestic natural gas supply
will be sufficient to meet growing
demand for decades to come. For
example, Colorado, Montana, and Figure 8.
WEC natural gas reservoirs. [M3]

8



Canadian activity in shale gas is Coal The WEC’s vast coal resources Canada’s recoverable reserves are
primarily focused on the Montney [Figure 11] range in grade from located in the WEC [Table 9].
and Horn River Basin plays of Coal supplies 45% of all U.S. lignite to anthracite. Recoverable
northeast British Columbia, which electricity and less than 20% of reserves (from active mines) in the In 2009, the WEC produced ap-
has recoverable reserves of 69 and Canada’s electricity [18]. More WEC include 15 billion short tons proximately 620 million short
132 TCF, respectively. The Horn than 30 states receive coal from (around 14 billion metric tons) tons (560 million metric tons) of
River and Cordova Embayment Wyoming, and several midwestern [Figure 9], approximately 63% of coal, which is about 8.2% of world
alone account for almost two thirds and southern states are highly or the total U.S. and Canadian recov- production and about 54% of the
of currently defined shale gas in entirely dependent on Wyoming’s erable coal reserves. More than combined total production of the
Canada. Another Canadian play, coal [19].Export of coking coal 54% of the recoverable U.S. coal U.S. and Canada [Table 10; Figure
the Colorado Group in Alberta from WEC jurisdictions to Asia, reserves and approximately 84% of 10]. Of the WEC states, Wyoming
and Saskatchewan, has 61 TCF of primarily for use in steel produc-
recoverable reserves and may be tion, is increasing. Alberta and
Canada’s largest in-place reserve British Columbia comprise one WEC Recoverable Coal
Reserves at Active Mines
at 408 TCF. Note that there is an of the largest metallurgical coal 15.6 billion short tons (Bst)

estimated 43.4 TCF of natural gas suppliers in the world and export
reserves in offshore British Colum- significant amounts of coal to Asia
[20]. Wyoming and Montana are
U.S. Demonstrated: 486 Bst Canada Demonstrated: NA
bia; however, a federal moratorium U.S. Recoverable: 260 Bst U.S. WEC Canada Recoverable: NA
now exploring ways to access ship-
9.5 Bst
on drilling currently prevents any
U.S. Recoverable Active Mines: 17.5 Bst Canada Recoverable Active Mines: 7.2 Bst
WEC Recoverable Coal Reserves Canada WEC WEC Recoverable Coal Reserves
production activity there [16,17]. ping terminals along the U.S. West 6.1 Bst

Coast to do the same.

. Figure 9.
The sum of recoverable U.S. and Canada coal resources.

9



maintains the greatest production than 42% of all coal mined in the
at 431 million short tons (about U.S. Approximately 51% of U.S.
390 million metric tons) in 2009. coal production [21] and nearly all
The Powder River Basin, most of Canadian coal production occurs in
which lies in northeastern Wyo- WEC states and provinces [22].
ming, is the largest coal producing
region in both the WEC and the An example of a novel approach
U.S. The region accounts for more to coal-based electrical generation

For the next 3 to 4 decades, coal will continue to play a
foundational role within North America, greatly contributing
to the generation of relatively low-priced, base-load electricity.
World: 7,514 MMst
U.S. and Canada: 1,144 MMst
WEC: 620 MMst

Figure 11.
Figure 10. Distribution of coal resources in
Coal production. the WEC. [M4]

10



within the WEC is found as part of
the Swan Hills project in Alberta.
The project will use an in-situ coal
gasification (ISCG) process to ac-
cess coal seams that are considered
too deep to mine. The coal seams,
located about 1,400 meters (4,593
feet) beneath the earth’s surface,
will be accessed through wells that
are similar to conventional oil and
gas wells. The ISCG wells will
be used to convert the coal under-
ground in its original seam into syn-
gas. The syngas will be piped to the
Whitecourt area to fuel new high-
efficiency, combined-cycle power
generation for Alberta’s electricity
market, providing about 300 MW More than 30 states receive coal from Wyoming, and several
of generation capacity [23].
Midwestern and southern states are highly or entirely
dependent on Wyoming’s coal supply

11


Renewable Energy Resources

S
ignificant renewable energy Hydropower
resources in the WEC in-
clude energy derived from Extensive river systems in the
water (including rivers and ocean WEC make hydropower a sig-
nificant resource for electricity
current/tidal/wave), wind, sun,
generation. These systems consist
geothermal, and biomass. Re-
of several major North Ameri-
newable energy sources generate
can rivers [Figure 12], including
electricity, provide heating, and
the North Saskatchewan, Peace,
produce transportation fuels, as Athabasca, Slave, Missouri, Co-
well as provide feedstocks for a lumbia, Snake, Mackenzie, and
host of other products from meth- Colorado rivers, whose head-
ane to plastics. Renewable energy waters are contained within the
sources can lessen dependence WEC. In the WEC, over 88,000
on imported and non renew- GWh of electricity was generated
able resources, and many can from hydropower in 2009, which
help reduce the environmental represents approximately 24% of
impacts of overall energy gen- the WEC’s total electricity gen-
eration. The Western Renewable eration that year from all sources.
Energy Zones (WREZ) initia- This power was produced by 374
tive, a collaboration between the hydropower plants having a total
Western Governors’ Association installed capacity of 21 GW. In
and the U.S. DOE (along with British Columbia, the greatest
other stakeholders) is designed to annual hydropower generation so
facilitate development and deliv- far, 64,000 GWh occurred in 2007
ery of renewable energy within [24]. Hydropower generation in
the Western Interconnect and has British Columbia, Idaho, and South
a wealth of renewable energy
information.
Figure 12.
Major waterways in the WEC.
[M5]

12



Dakota produce large percentages two 500-MW generating units
of total in-state/province electricity into existing dam infrastructure at
generation [Table 11]. the Mica Generating Station [24].
According to a recent report [25],
The WEC has approximately 60 major hydro projects in Alberta
GW of untapped hydropower may be developed in the next 30
potential capacity, which is three years and could capture almost
times the current installed capac- 20% of Alberta’s over 53,000 GWh
ity and translates to a potential of hydropower potential per year.
over 265,000 GWh of additional Also, 28% of proposed pumped
annual electricity generation. The storage projects in the U.S. are
majority of this potential lies in the sited in WEC states [26].
north side of the WEC. Although
full hydropower potential may Wind
never be realized, state/province
generation potentials range from Wind energy is abundant through-
160% (Montana) to 3800% (Al- out the WEC [Figure 13] with a
berta) above their 2009 generation total wind power potential of over
[Table 11]. A significant portion of 3,700 GW. Within the Corridor,
the additional hydropower resource Montana leads in wind energy pro-
would come from small facilities duction potential at 944 GW, fol-
and micro-hydro and would require lowed closely by South Dakota and
new transmission to successfully North Dakota [Table 12]. North
harvest the resource, especially in Dakota, Wyoming, and Colorado
British Columbia. lead the WEC in installed wind
generation. Although the WEC has
Several planned projects — the very high wind power potential,
majority in northern Canada —
would increase the WEC’s hy-
dropower capacity. For example, Figure 13.
British Columbia plans to install Wind energy potential in the WEC.
[M6]

13



the realized potential is relatively tops and the remote northwest of MW of wind power capacity is lumbia is working to advance the
low. For example, despite Mon- British Columbia. For areas that from on-shore operations. province’s coastal wind energy po-
tana’s high generation potential, in- could be reasonably developed, the tential with a project that, if built,
stalled capacity was only 375 MW major constraint is transmission. will involve up to 110 turbines and
as of 2009 [Table 12]; however, The low capacity factor results in a potential capacity of up to 1,750
MW [29].

Wind, geothermal, solar, and ocean/tidal continue to grow and offer a promising future, Recent increases in WEC wind
power capacity have been strongly
even more so when used in combination with other energy forms – hybrid energy systems. driven by energy pricing and
regulations/policies, subsidies,
significant increases in installed ca- Wind power generation is increas- and other incentives. For example,
pacity in Alberta and Montana will ing at a rapid rate. Wind plants production tax credits and renew-
be feasible with completion of the have a much shorter planning and able portfolio standards have
new Montana Alberta Tie Limited building schedule than conven- boosted wind industry develop-
transmission line. tional power technologies. Some ment [30]. As the scale of wind
examples of planned or in-process power increases, the wind power
The intermittent nature of wind WEC wind projects include a industry can no longer be confi-
makes integration into the elec- 300–700 MW in Montana, 500– dent that current subsidies will
trical grid challenging if trans- 700 MW in Idaho, and several hun- continue, which may slow growth
mission, firming resources, and dred MW of wind farms planned in of wind power generating capac-
distribution of wind resources are Wyoming and other northwestern ity. Wind resources tend to be
insufficient or unavailable This and western states. In British Co- located in remote areas, requiring
challenge becomes more severe lumbia, projects totaling over 710 a confluence of transmission and
as wind capacity increases rela- a high capital cost per unit output, MW of wind capacity are planned, wind resources coupled to popula-
tive to other power sources. The although the fuel (wind) is free. while in Alberta new transmission tion centers to effectively integrate
major reason that realized wind The first off-shore project, with infrastructure that can accom- and serve the markets. A possible
potential is low is that much of the a potential wind power capacity modate up to 2,700 MW of wind answer that deserves study is how
wind resource is located in areas of 396 MW, just received federal generation in Southern Alberta is to cost-effectively fuel electricity
that cannot be developed or are not approval in British Columbia [27], under construction [28]. NaiKun growth in the region using both
easily accessible, such as mountain but the province’s existing 248 Wind Energy Group in British Co- wind and natural gas, both low

14



carbon sources. Separately, neither ergy (DOE) is funding a project in
is ideal. But together, they offer Utah designed to facilitate at least
increased reliability and generation 10 MW (or an additional 10,000
with low price volatility and low solar PV systems) of new solar PV
overall carbon emissions. installations by 2015 [32].

Solar Currently, the capital cost of pho-
tovoltaic and solar thermal power
The WEC has solar energy po- plants, relative to annual energy
tential, especially in its southern production, is extremely high.
extreme [Figure 14]. The amount New technologies in solar energy,
of solar energy in some parts of such as concentrator photovoltaic
Colorado, Utah, and Wyoming are (CPV) approaches, could reduce
among the highest in the U.S., with the cost and increase the adoption
levels exceeding 6 kWh/m2 per rate [33]. Similarly, decreasing
day. costs could increase the adoption
at a household scale. Additional
In 2009, the installed solar electric cost reductions could come from
capacity in WEC was less than 40 improvements in production,
MW, most of which comes from manufacturing, and installation
residential installations. Colorado techniques.
is the only jurisdiction with total
grid connected photovoltaic (PV)
installations exceeding 1 MW
[Table 13]. Other efforts within the
WEC are underway as well. For
example, in Medicine Hat, Alberta,
the first solar-powered steam gen-
eration system in Canada will use
parabolic dishes to focus sunlight Figure 14.
to produce heat for a steam turbine Photovoltaic solar resources
[31]. The U.S. Department of En- in the WEC. [M7]

15



Biomass ing uses. This is particularly true
for grains, which are largely used
Within the WEC, ample herba- for food and feed, and for straw,
ceous and woody biomass resourc- which is in high demand for animal
es exist [Figure 15] that are suit- bedding. Potential also exists for
able as feedstock for production growing dedicated energy crops
of electrical power, transportation that have no food value such as
fuels, or heat. Biomass can be used poplar, miscanthus.
in biochemical conversion process-
es such as fermentation to produce Grain production is a major source
ethanol, or in thermochemical of WEC biomass and generates
conversion processes such as substantial agricultural residues
direct combustion, gasification, or as a by-product. Grain is included
pyrolysis. In addition, transesterifi- as a biomass potential, because
cation, a chemical process in which technologies are already available
oil seeds are used to produce diesel for conversion of corn and wheat
fuel, contributes to transportation to ethanol. Lignocellulosic residues
fuels. Potential bioenergy resourc- from food and feed grain crops can
es in the WEC include grain and also be used to produce ethanol
agricultural residues, forest bio- and other products, but there are,
mass and woody residues, and mill as yet, no full scale commercial
and urban wood waste, annually production facilities. Saskatch-
generating over 170 million metric ewan, Alberta, South Dakota, and
tons (~187 short tons) of material North Dakota are world-class grain
[Table 14]. The Canadian prov- producers, and have a relatively
inces in the WEC have much more higher volume of agricultural
in total resources available than residues. A shift to integrated bio-
the U.S., largely due to geographic
differences. Furthermore, not all
the materials discussed would be Figure 15.
readily available for bioenergy pro- WEC biomass feedstock potential.
duction, as there may be compet- [M8]

16



refining, rather than facilities The most effective conversion and favors the displacement of fos- for greater utilization of low-tem-
producing a single product, may process depends on the nature of sil fuels with biofuels. Of note, the perature geoexchange for heating
help optimize the co-production of the biomass resource. For example, Alberta Government as well as the and cooling applications.
food, energy, and other bio-based high-ash agricultural residues may Canadian government have placed
products. damage thermochemical conver- a large investment in development Essentially, all geothermal power
sion process equipment; however, of Triticale, a hybrid of wheat and plants within the WEC are located
The WEC also has significant certain woody biomass species rye, as an energy crop which can in areas having higher heat flows.
forest resources with associated may have components that resist grow on marginal lands. These areas, combined with ad-
quantities of residue — in particu- biological conversion processes equate ground water and available
lar, large quantities exist in British used for ethanol production. Trends Geothermal transmission, offer an opportunity
Columbia and Alberta. In 2010, towards energy crops, which take for producing reliable, available,
British Columbia produced one advantage of marginal lands, may The WEC has significant geother- high-value, low-carbon electricity.
million bone dry metric tons (BDt) shift the distribution of biomass mal potential. A 2011 report of But not all potential sources are
of wood pellets, most of which resources in WEC. the U.S. geothermal capacity [37] available — some are difficult to
was exported to Europe for power indicated that the five WEC states access or within protected areas
production. A potential source of The U.S. has historically focused included in the study have at least such as a national park. The pres-
forest residue is pine beetle dam- its biomass program on the pro- 1,409 MW of near-commercial ence of cooler water at shallow
aged timber. Natural Resources duction of biofuels in an effort developments and 4,398 MW of depths can mask the geothermal
Canada (2011) estimates that the to move away from foreign oil initiated projects [Table 15]. Simi- potential of some resources (the
current rate of spread will kill dependency. However, recognizing lar estimates have not been made Cascades, for example) or compli-
80% of mature pine trees in Brit- the large potential for biopower for other jurisdictions, so there is cate geothermal characterization
ish Columbia by 2013 — over 1 electricity or process heat, the U.S. no definitive estimate for the entire (such as the Snake River plain).
billion m3 (35 billion ft3) of trees. Government is supporting more WEC. However, British Columbia
The current beetle epidemic affects biopower development [36]. Can- alone has an estimated 3,000 MW Despite this, some geothermal
more than 8 million hectares (20 ada has not had the same incentive of geothermal electricity potential; potential has been realized in the
million acres) of forest in British to produce biofuels because it has Alberta and Saskatchewan have WEC. As of March 2011, in-
Columbia [34,35] and may con- a smaller population and some of less potential. The greatest poten- stalled geothermal capacity in the
tinue to affect Alberta’s northern the largest petroleum reserves in tial for WEC geothermal electricity WEC was 58 MW between Idaho,
boreal forest. The infestation has the world. Canada does, however, production is in its western portion, Wyoming, and Utah [Table 15]
also hit Colorado, Montana, Idaho, support the reduction of CO2 emis- as suggested in the heat flow map and geothermal projects are under
and Wyoming. sions from fossil power generation shown in Figure 16. All jurisdic- development in Wyoming, Colo-
tions in WEC have opportunities

17



rado, Utah, and Idaho. Of particu- sands mining operations [41]. The
lar note, the estimated resource Massachusetts Institute of Technol-
under development in Idaho alone ogy’s 2006 estimate indicated that
is between 703 and 778 MW [37], potential power from the co-pro-
illustrating the potential across the duced fluids could exceed 450 MW
region. Although no geothermal within the WEC [42].
resources have been developed for
power production in Canada, the Geothermal energy may be an
South Meager project in British economically viable resource,
Columbia is being evaluated and but it requires sufficient tempera-
could support up to 100 MW [38]. ture, water, and permeability at
Increasing interest in renewable economically retrievable depths.
energy for non-electricity applica- Locating resources with these char-
tions has led evaluation of several acteristics is the greatest challenge
geothermal projects for develop- to developing geothermal energy.
ment in British Columbia and Enhanced Geothermal Systems
Alberta. (EGS) technologies — which aim
to enable the use of geothermal
Recent efforts have explored other energy when heat is present but
innovative uses of geothermal water and/or permeability are not
resources such as using the hot — could significantly expand geo-
water co-produced with oil and thermal power in the WEC [41].
gas to generate electrical power. Several technical and economic
Examples include a 250-kW issues must be resolved before this
facility recently made operational potential can be realized. The U.S.
in Wyoming [39], and a 1 MW DOE is developing goals to pro-
project being proposed in Alberta vide significant amounts of EGS
[40]. Another opportunity is the power by 2030 and 2040; however,
potential for zones beneath the Ca-
nadian oil sands to pre-heat water
used to make steam for in-situ oil
Figure 16.
WEC geothermal potential. [M9]

18



details (including timeline) for the The cost of tidal and ocean energy
goals have not been finalized. is highly influenced by geography,
distance to grid, and water condi-
Tidal/Ocean Energy tions (i.e., speed and volume of
the current) [45]. Although wave
British Columbia is the only area energy resembles wind generation
in the WEC that has ocean wave in its intermittent nature, it is easier
and tidal energy resource potential. to forecast and has a uniform avail-
For the British Columbia coast, ability. Specifically, ocean waves
the total deep water annual wave propagate at a constant speed
power potential is approximately with little attenuation, so they can
37,000 MW, and total tidal current be detected several hours before
power potential is approximately reaching a generator. Tidal and
4,000 MW [43]. The best sites for ocean-current energy systems must
capturing strong tidal currents are endure extreme weather conditions
in the Strait of Georgia and John- and corrosion, and maintenance is
stone Strait as shown in Figure expected to be expensive.
17, which offer the major benefit
of proximity to the point of use.
High-potential sites for ocean cur-
rent may be farther away from land
[44]. The number and capacity of
potential tidal and ocean current
sites could increase as improved
technologies are developed.

High cost and limited site avail-
ability have traditionally plagued
tidal and other ocean-energy
projects. Tidal energy requires a Figure 17.
confined location with sufficiently Wave power and tidal current
high tidal ranges or flow velocities. energy potential. [M10]

19


Uranium Resources

T
he WEC contains signifi- In 2010, the U.S., ranked 8th in
cant quantities of uranium world uranium production, gen-
[Figure 18], which is erating 1,830 short tons (1,660
used to generate electricity in metric tons) of uranium [46], much
nuclear power plants. Canada’s of which came from mines in
sole uranium-producing area Colorado, Utah, New Mexico and
is in Saskatchewan and is sec- Wyoming, with the latter two states
ond in world production only to dominating[48]. According to a
Kazakhstan. In 2010, Saskatch- 2009 estimate, the U.S. has known
recoverable resources of 228,000
ewan produced 10,784 short tons
short tons (207,000 metric tons) of
(9,783 metric tons) of uranium —
uranium [47]. In 2008, Wyoming
just over 18% of world produc-
led the nation in total uranium
tion. Saskatchewan’s McArthur
reserves; together, Wyoming and
River Mine, which is the largest New Mexico contain about two-
producing uranium mine in the thirds of the country’s estimated
world, produced 8,437 short tons reserves [49]. An important note
(7,654 metric tons) of uranium, in relation to British Columbia is
or approximately 14% of the that in April 2008 a news release
world’s uranium output in 2010. indicated that the Province will not
Known recoverable uranium support the exploration and devel-
resources in Saskatchewan are opment of uranium.
estimated at 466,000 short tons
(423,000 metric tons) of uranium
based on a 2007 estimate [46],
8% of the world’s known recov-
erable resources [47].

Figure 18.
Distribution of uranium resources
in the WEC. [M11]

20


Uranium Resources

Half of the nuclear fuel cur- The WEC also contains significant energy in many countries includ- and abundant to meet current needs
rently used in the U.S. is derived quantities of thorium, especially ing the U.S., Canada, Europe, [50]. Some countries (namely,
from dismantled Russian nuclear in Idaho. Unlike uranium, thorium Japan, Russia, and India. Thorium India) may, however, favor tho-
warheads. This program will be has not been used extensively has not been a major competitor rium over uranium as a fuel source,
halted in 2013, which may result for nuclear energy production, with uranium for use as a nuclear depending upon local availability
in increased demand for uranium although it has been successfully fuel because the world supply of and policy [47].
resources within the WEC. used to experimentally generate uranium is sufficiently inexpensive

The McArthur River Mine, located in Saskatchewan, is the largest producing mine in the
world with over 7,600 metric tons of uranium produced in 2009, approximately 14% of
the world’s uranium production.

21


Electricity Power Generation

I
n 2009, the WEC’s electric
power generation capacity 15000
Pumped Storage
was estimated at over 75,000 12500 Other
MW; Colorado led with 13,045
Other Renewables
MW, followed by Alberta at 10000

12,996 MW. Figure 19 and Table 7500
Hydro

16 show the generating capacity Other gases

by state/province and source. The 5000 Nat. Gas
WEC generation capacity is dom- Petroleum
Figure 19. WEC electric power
2500
inated by coal-fired infrastructure installed capacity by state/
Coal
followed by hydropower and 0 province.
o

ho

na

ta

ta

ah

ing

ia

a

an
natural gas, as shown in Figure

ert
ad

mb
ko

ko

ew
nta

Ut
Ida

om
lor

Alb
Da

Da

olu

tch
Mo
Co

Wy
N.

S.
20. Over 60% of WEC generation

hC

ska
tis

Sa
Bri
capacity is supplied by fossil en-
ergy. Although renewable energy Figure X. Electric power totals by location (MW)
production capacity is increas-
ing, outside of hydropower, its
32500
30000
sources make up less than 10% of 27500
Saskatchewan

the total capacity and are led by
British Columbia
25000
wind power investments [Table
Alberta
22500
21]. No commercial nuclear 20000 Wyoming
Utah
power plants (NPPs) exist within 17500
15000 S. Dakota
the WEC, but there are emerg- 12500 N. Dakota
ing interests in their inclusion. 10000 Montana
Total electrical energy genera- 7500
Idaho
tion within the WEC in 2009 was 5000
over 370 million MWh. Of this, 2500
Colorado Figure 20. WEC electric power
installed capacity by source.
more than 70% came from fossil
0

energy plants (primarily from
al

m

as

ses

dro

les

er

e
rag
Co

Oth
leu

t. G

ab
ga

Hy

sto
tro

ew
Na

er

coal and natural gas), 24% from
Pe

ed
Oth

ren

mp
er

Pu
Oth

Figure X. Electric power totals by source (MW)

22


Electricity Power Generation

hydropower, and approximately Comanche (850 MW) and Wygen term within the WEC. New coal refined lignite, will produce nearly
4% from other renewable [Table II (110 MW) plants, located in plants are continuing to be intro- 100 MW during peak demands,
17]. The low capacity factor of Colorado and Wyoming, respec- duced, especially in Wyoming, and will provide steam to a nearby
wind power plants results in a far tively [51]. North Dakota, and Alberta. An ex- malting plant [52]. However,
smaller contribution to annual ample of a new plant construction Environmental Protection Agency
electric generation than to gener- Coal is estimated to continue play- is the combined heat and coal-fired (EPA) and state regulations on air
ating capacity. ing a foundational role by provid- power plant (Spiritwood Station) emissions, coal ash, and water are
ing base load power in the long in North Dakota. It uses dried and expected to drive retirement of
Coal-Fired Electric Power
Generation Given the abundant natural gas, coal, and hydropower resources within the WEC, the region is
In 2009, coal-fired plants were able to supply some of the most reliable and lowest priced electricity in North America.
estimated to make up approxi-
mately 40% of the electricity
generation capacity within the certain existing coal-fired genera-
region — approximately 30,500 tion plants. For example, Colorado
MW. Alberta has the largest utilities are being directed to retire
capacity (5,971MW) followed by or retrofit coal capacity and replace
Wyoming and Colorado [Table it with natural gas or renewable
16]. Since 1999, the WEC’s overall energy resources to comply with
capacity from coal-fired plants has new state Clean Air-Clean Jobs Act
changed very little with the excep- [53]. Another trend is the pursuit of
tion of Montana, which has lost higher efficiency in power produc-
approximately 20% of its coal-fired tion while reducing environmen-
electrical generation capacity over tal impact. Enabling clean coal
the last 10 years. British Colum- technologies include CO2 capture
bia generates no electricity from and sequestration, underground
coal. It should be noted that 2010 gasification, integrated gasification
actually represents the largest build combined cycle (IGCC), and oxy-
of coal-fired plants since 1985 fuel combustion (coal gasification).
within the U.S., which included the

23

Western Energy Corridor -- Full Study

Western Energy Corridor -- Full Study

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (12)

Similar a Western Energy Corridor -- Full Study

Similar a Western Energy Corridor -- Full Study (20)

Más de Ports-To-Plains Blog

Más de Ports-To-Plains Blog (20)

Último

Último (20)

Western Energy Corridor -- Full Study