www.AlaskaAlliance.com 17 technical characteristics of potential Cook Inlet Basin gas reservoirs suitable for underground storage. For an industrial developer wishing to store carbon dioxide and receive federal tax credits, which can be up to $80 per ton, the U.S. Environmental Protection Agency must certify the reservoir. EPA, in turn, will require third parties to do independent verification of the reservoir characteristics, which is what UAF will do in its study. The focus of the certification is the capability of the reservoir to permanently contain the carbon dioxide and prevent it from leaking back out to the atmosphere. This research will start with the Beluga gas field owned by Chugach Electric Association and Hilcorp Energy, and where Hilcorp is the operator. Beluga is a good place to begin because Hilcorp will be able to provide a great deal of data. There are other potential storage reservoirs in the region which will be included in the project. The research will not identify a source of the carbon dioxide, but the gas could come from several potential projects including a restarted Agrium fertilizer plant at Nikiski, near Kenai, or a possible large coal-fired power plant that could be built near Skwentna, in the western Mat-Su region. Large coal resources been identified in the area and a separate UAF study, done last years, showed that a carbon capture project at a new coal plant with the carbon dioxide shipped by pipeline to the Beluga gas field for storage might be economically feasible. Capture of carbon in a coal power plant emissions stack is mechanically much simpler than carbon capture in a natural gas plant because the carbon dioxide is more concentrated. It has also been demonstrated in practice and is considered a mature technology as compared with capture of carbon from natural gas. As part of the new UAF study, the Skwentna area will be studied for the presence of underground saline reservoirs where carbon dioxide could also be stored. A phase two of this, under a potential new USF/DOE program, would take a look at Interior Alaska injection sites, mostly likely in saline reservoirs if they can be located. This would allow for carbon dioxide to be captured at Interior coal plants and for the gas to be injected underground. Capturing the carbon in a coal plant removes the biggest objection to coal as a fuel, which is that it releases the gas into the atmosphere. If the carbon is removed and stored underground, the objections are no longer valid. The DOE is reported to be preparing to issue a “Notice of Opportunity” this fall to fund the phase two research, but an industry partner is needed for the application. Just as in phase one a local match will be required. Given the importance of inexpensive coal-fired power in the Interior the regional legislative delegation will seek that in an appropriation. — Tim Bradner UA President Pat Pitney said UA’s three universities are working together well on collaborative programs to share knowledge, maximize access and leverage the strength and expertise.
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