Generate Substantial Profits By Utilizing Surplus Methane Near Prudhoe Bay, Alaska to Power Direct Air Capture (DAC)

by Paul Stevers�Integrated ClimateTech (iClimateTech)�March 19, 2023

Large New Business Opportunity Emerged at Hilcorp’s Prudhoe Bay Oil Field

A large business opportunity has emerged at Hilcorp’s Prudhoe Bay Oil Field due to the following reasons:

• The Inflation Reduction Act of 2022 has increased the 45Q price for Direct Air Capture (DAC) to $180 per tonne of CO₂.
• A new DAC technology by TerraFixing that works very cost-effectively at very low temperatures (Less than US$40/tonne of CO₂ if the cost of the power is $0.03/kWh or less).
• Fuel Cell technology by Bloom Energy that produces electricity from natural gas while capturing the CO₂ produced.

TerraFixing’s Carbon Capture Technology

TerraFixing’s Direct Air Capture (DAC) Technology:

• TerraFixing’s DAC technology is geared for cold dry climates such as Northern Alaska with operating energies as low as 1 MWh per metric tonne of CO₂.
• If power is produced for US$0.03 cents/KWh, this enables CO₂ to be captured for less than US$40/tonne.
• Utilizes a simple process with 5 unit operations and proven materials at moderate temperatures and pressures to keep capital costs low.
• Shown below is an illustration of TerraFixing’s TVSA cycle for capturing and concentrating CO2 from ambient air, which includes a regeneration step.

Animation Illustrating Terra Fixing’s DAC Process Cycle

Diagram Showing TerraFixing’s Adsorption Step

Diagram Showing TerraFixing’s Evacuation Step

Illustration Showing Why TerraFixing’s Process is More Thermodynamically Efficient in Cold Climates

• This figure shows the minimum work required (i.e., energy) to capture and concentrate CO2 from a feed stream at a particular concentration - for air, that's 420 parts-per-million (ppm).
• The minimum work required is 45% lower at -50°C relative to 50°C.

Air Input and Output of TerraFixing’s Process

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A TerraFixing DAC System in a Sea Container

Schematic of DAC Systems and Fuel Cells

Sea Container Containing TerraFixing’s DAC System and Fuel Cell with Carbon Capture

Sea Container Containing TerraFixing’s DAC System and Fuel Cell with Carbon Capture

Ambient Air with 420 ppm CO₂

CO2 to Storage Location

Natural Gas Supply

Air with 84 ppm CO₂

Ambient Air with 420 ppm CO₂

Air with 84 ppm CO₂

Water �Discharge

Water �Discharge

Data Needed for Cost / Benefit Analysis

Data needed for cost / benefit analysis including the following:

• Cost of purchasing natural gas
• Cost of sequestering CO₂
• Cost of discharging water
• Cost of independent verification of quantity of CO₂ removed from ambient air
• Cost of feasibility study
• Cost of permitting and environmental impact study
• Capital cost of project
• Operation and Maintenance costs
• Expected profits assuming DAC revenues will be $180 per tonne of CO₂ Captured

Possible Project Phases

• Preliminary Feasibility Study to estimate approximate costs and profits.
• Front-End Engineering Design (FEED) study for demonstration project
• Demonstration Project developed and implemented in northern Alberta
• Demonstration Project moved to Prudhoe Bay area in Alaska.
• Front-End Engineering Design (FEED) study for large-scale project.
• Final Investment Decision (FID).
• Detailed design completed and construction financing secured.
• Construction and Commissioning.
• Issue Green Bond to refinance project at a relatively low interest rate.

Possible Expansion Plans

• Expand existing DAC facility in same oil field.
• Expand to other oil and gas fields in Alaska and Canada.
• Explore options to capture methane emissions from Esieh Lake in Alaska, which is estimated to be releasing about 10 tonnes per day of methane, to power DAC.

Thank you

14

www.thinkrenewables.com

Toronto, ON, Canada

Waynesboro, PA, USA

www.climatesan.org

Toronto, ON, Canada

A Project of Think Renewables Group

For more info, see: �ClimateSAN.org/tfdac

www.iClimateTech.com�Toronto, ON, Canada

A member of Think Renewables Group

Best Conditions for a TerraFixing DAC System

• Cost of operation assuming electricity costs in the range of US$.03/kWh:
• (US$40/tonne of CO2)