The energy transition is, as defined by the International Renewable Energy Agency (IRENA), a pathway towards the global energy sector from fossil-based to zero-carbon by the second half of this century. The mining industry plays a focal role in addressing global warming and supporting the global energy transition. Although being a notoriously energy-intensive and high CO2 emitting industry – as of today, the mining sector accounts for approximately 2–11% of total global energy consumption, and 26% of global carbon emissions, green energy generation – being more infrastructure intense, requires much more metals and minerals, and therefore more mining activity. While this paradox comforts the fact that the mining industry is here to stay, it leaves only one way of achieving SDGs 7 (Affordable and Clean Energy), 12 (Sustainable Consumption and Production) and 13 (Action against Climate Change), which is the adoption of climate-smart mining practices, including the integration of renewable energy to power mining operations. Mining for Green Energy Transitioning to a low-carbon energy system has been under way for the past few decades. Renewables’ share of annual power capacity expansion has been steadily increasing to reach, in 2019, over 72% of the new installed capacity. While this evolution is still largely driven in most countries by government regulations and incentives to meet the decarbonization and climate mitigation goals set out in the Paris Agreement, other countries have successfully transitioned past the support schemes (e.g. feed-in-tariffs) to competitive Power Purchasing Agreement auctions, facilitated by the steep fall in renewable energy costs, and growing engagement of energy and oil & gas companies in renewable energy projects. Low-carbon technologies, especially solar photovoltaic, wind and geothermal, are more mineral and metal intensive relative to fossil fuel technologies. To illustrate, for every 1 megawatt (MW) of capacity of solar PV, about 3,000 solar panels are needed. In the case of wind power and electric transportation, each wind turbine contains about 3.5 tons of metal, while 83 kilograms of copper are required for every electric vehicle. Overall, the demand for base and niche minerals stemming from clean energy technologies manufacturing is expected to grow significantly, with anticipated increases of up to nearly 500% by 2050 for certain minerals in relative terms to 2018 production levels. This is particularly the case for those concentrated in energy storage technologies, such as lithium, graphite, and cobalt. These demand prospects suggest promising opportunities in resource-rich countries, thus prompting several governments including Bolivia—home to 1/4 of the world’s lithium resources, Chile, Democratic Republic of Congo, and Western Australia, into taking policy and investment actions to channel and support the development of their respective mining industries, in the global energy transition context. [caption id="attachment_5334" align="aligncenter" width="766"] Figure 1: Projected Annual Mineral Demand Under 2 Degree Scenario Only from Energy Technologies in 2050, Compared to 2018 Production Levels - Source: World Bank Group: The Mineral Intensity of the Clean Energy Transition, 2020[/caption] Deriving geothermal energy from mine water contained in abandoned coal mines is another way the mining industry can contribute towards building a less carbonized future. This option has been extensively studied in recent years and projects are already underway in countries like Australia, where the opportunity is sizeable. The use of the mine water as a geothermal resource inherits most of the environmental benefits of conventional geothermal heat pump applications while also providing more attractive advantages, such as highly efficient exploration and higher-quality geothermal energy. Green Energy for a more Sustainable Mining The total energy expenses are estimated to account for approximately 30% of total cash operating costs for mining companies, with around 32% of the consumed energy in the form of electricity. Because the financial aspect was traditionally a more pressing motive for companies, and considering the rapidly decreasing costs of renewable energy over the last decade, the integration of renewables into mining has been underway for the past several years. This was mostly the case in remote mining locations where electricity costs through the grid are furthermore substantial, as well as in areas that suffered from recurrent power supply disruptions. Recently however, with climate change awareness gaining momentum in the industrial world and renewable energy sources being more cost-competitive than ever, mining companies like Anglo-Australian multinational Rio Tinto, South African Gold Fields or Chilean copper mining company Antofagasta, are expanding the share of renewables powering their operations. Generally, this is achieved either through Power Purchasing Agreements (PPAs) or joint ventures with energy providers, by purchasing renewable energy certificates (RECs) or via the mining company’s own microgrid. Undoubtedly, we’re still a long way from commercially viable 100% renewable energy projects, particularly for non-remote mines. But according to some experts, hybrid solutions with 50% renewable penetration are already achievable, and even represents the better commercial option compared to 100% conventional fossil-based power. Oussama El Baz - Research Analyst Sources: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Mar/IRENA_RE_Capacity_Highlights_2020.pdf?la=en&hash=B6BDF8C3306D271327729B9F9C9AF5F1274FE30B https://www.angloamerican.com/futuresmart/our-world/environment/mining-with-renewable-energy#:~:text=Renewable%20energy%20is%20an%20affordable,Wind https://www.miningreview.com/energy/why-renewable-energy-makes-economic-sense-to-mining/ https://www.renewableenergyworld.com/2019/10/15/will-the-oil-industry-help-address-climate-change/#gref http://www.bmz.de/rue/includes/downloads/CCSI_2018_-_The_Renewable_Power_of_The_Mine__mr_.pdf https://africanminingmarket.com/mining-the-golden-opportunities-of-the-energy-transition-and-digital-transformation/6058/ http://www.mining.com/global-energy-transition-powers-surge-demand-metals/ http://pubdocs.worldbank.org/en/961711588875536384/Minerals-for-Climate-Action-The-Mineral-Intensity-of-the-Clean-Energy-Transition.pdf https://www.theguardian.com/environment/2019/mar/12/resource-extraction-carbon-emissions-biodiversity-loss#:~:text=Extraction%20and%20primary%20processing%20of,26%25%20of%20global%20carbon%20emissions.&text=All%20the%20sectors%20combined%20together,any%20fuel%20that%20is%20burned https://sci-hub.tw/https://www.researchgate.net/publication/324948020_Large-Scale_Mine_Water_Geothermal_Applications_with_Abandoned_Mines http://ccsi.columbia.edu/files/2020/05/Dont-Throw-Caution-to-the-Wind.pdf https://www.mining-technology.com/features/going-green-renewable-energy-projects-at-mines-around-the-world/ https://www.twobirds.com/~/media/pdfs/expertise/energy-and-utilities/2020/renewables-for-mining-in-africa.pdf?la=en&hash=B3884279D0BD9377CAA7D6B9C0EDBF6A59A5858E Energy and Mines, Issue 23, August 2020
"Power to X" in few words "Power to X" or "PtX" is a technology that consists in transforming electricity into another energy vector. This "X-vector" could be heat (Power to Heat) to meet industrial needs or to supply heating networks. It could also be a synthesis gas (Power to Gas) such as hydrogen for mobility purposes, or methane which can itself be injected into the gas network for industrial, heating, or mobility needs. "Power to X": What opportunities exist for Morocco? Thanks to its strategic geographical position and exceptional wind and solar energy potential, Morocco could capture a significant share of Power to X demand, estimated at 2- 4% of global demand in 2030. This was the most prominent result of the two studies carried out simultaneously by the three German Fraunhofer Institutes in 2018 that aim to explore the economic and ecological impact of Power to X on Morocco. In this regard, a workshop about Power to X technology and its opportunities in Morocco was organized on February 11, 2019 within the framework of the Moroccan-German Energy Partnership (PAREMA). The purpose of the workshop was to showcase the results of these studies that reveal to which extent this technology will constitute an opportunity for renewable energy in Morocco as a local industry with high export potential given the country's objective of reaching 52% of the renewable energy mix by 2030. However, according to Prof. Wolfgang Eichhammer project coordinator from Fraunhofer ISI, investing in technologies substituting fossil energy sources but involving other environmental risks such as increasing the consumption of land, water and resources have to be assessed very carefully and linked to sustainability criteria. In this respect, Morocco could become an exporter of carbon-neutral energy sources and make a major contribution to achieving the Paris Climate Agreement target if and only if it is able to deal with the risks associated with PtX. To this end, the Minister of Energy, Mines and Sustainable Development announced the establishment of a national task force supported by a consortium of public and private actors as well as the elaboration of an in-depth study to prepare the PtX roadmap for Morocco. Hydrogen & Ammonia: main development focus by 2030 The Research Institute for Solar Energy and Renewable Energies (IRESEN) has announced recently that Morocco will become a carbon-neutral energy exporter by 2030 through the launch of construction works for a dedicated platform for green hydrogen and ammonia starting January 2020. This infrastructure, with an investment amounting MAD 150 million, results from a partnership between IRESEN, via Green Energy Park, and both OCP and the Mohammed VI Polytechnic University on the Moroccan side, as well as Fraunhofer institutes on the German side. The platform will be dedicated to the R&D demonstration of Power to X technologies, with a diversified research program on hydrogen applications in the production of high added value green molecules such as ammonia and methanol. It is worth pointing out that this technology is complementary to renewable energies and will help to reduce carbon emissions while creating a strong opportunity for economic and social development through exports due to the current lack of profitability of conventional electricity exports given the sharp drop in renewable energy costs compared to electricity transmission. In addition, beyond the existing infrastructures, in particular, the Maghreb-Europe Gas Pipeline and the port infrastructure, capable of playing the role of a liquid fuel export platform, economic relationship with the European Union are constantly strengthening. In Europe, Germany which is the Kingdom's privileged partner in renewable energy sector, intends to replace its fossil fuel (coal) and nuclear energy needs starting from 2022 until 2038 by importing clean energy, in accordance with its environmental commitments. According to Badr IKKEN the General Director of IRESEN, this situation represents an important opportunity for countries like Morocco, capable of producing clean fuels, particularly green molecules such as hydrogen and green derivatives. Fertilizer industry: a good illustration of the economic opportunity for Morocco Together with hydrogen, green ammonia represents a promising economic opportunity to satisfy not only the needs of its local fertilizer industry but also those of the international market in the long term. Indeed, the Kingdom is highly dependent on imported ammonia as an input for phosphorus-based fertilizers from Ukraine, Trinidad & Tobago, and the USA. Replacing these imports with green ammonia may, therefore, strengthen local fertilizer manufacture. In terms of capacity, about 3 GW will be needed to produce 1 Mt of green ammonia, which corresponds to Morocco's current imports. A domestic production of ammonia would represent, for Morocco, not only an opportunity for independence but also an opportunity to diversify its traditional markets. Furthermore, the export of clean ammonia can reduce greenhouse emissions by ~95% making it beneficial for both exporting and importing countries. National task force to present a study on the development of PtX roadmap In April 2020, a study on the development of the roadmap was presented at the 3rd meeting of the National Power-to-x task force. According to the study, the draft roadmap should propose: - Short-term actions that aim to reduce costs along the entire production and operating value chain through the establishment of a dedicated industrial cluster to deal with the development of an infrastructure master plan. The actions also aim to ensure technology transfer through capacity building and the development of local content and to create the right conditions for the export of P2X products. - Medium-term actions through the development of a storage plan for the electricity sector and the establishment of an appropriate regulatory framework for the use of Power-to-x in transport. - Long-term actions through the development of a regulatory and commercial framework to extend Power-to-x technologies to heat production. It was also recommended that three working groups be set up. The first should be tasked with translating the roadmap into a portfolio of concrete, pilot and deployment projects for Power-to-x technologies. The second group will be responsible for developing an appropriate approach to develop exports of green molecules, in order to seize the opportunities offered in Morocco and which are already reflected in the interest expressed by the Kingdom's European partners. While the third group will be responsible for further strengthening research and development in the various fields related to Power-to-x. World "Power to X" Summit 2020: a showcase of the Moroccan leadership Organized by IRESEN, the first edition of the World Power-to-X Summit is a conference gathering policymakers, industry leaders, research experts, and worldwide innovators to discuss the PtX technology and its uses in producing renewable electricity, green molecules and feedstock, CO2 recycling.... This two-day conference was planned to take place in Marrakech from June 10 to June 12, 2020, however, with the current circumstances due to the COVID-19 pandemic, a rescheduling might take place. Safae Laghmari - Senior Analyst at Infomineo References: Ait Almouh, H. (2019). "Power To X: Quel intérêt pour le Maroc?", lavieeco.com, March 12, available at: https://www.lavieeco.com/economie/energie/power-to-x-pour-le-maroc-quel-interet-pour-le-maroc/ Benmalek, S. (2019). " Énergies propres : le modèle marocain intéresse l’Allemagne, selon Rabbah", lematin.ma, December 10, available at: https://lematin.ma/journal/2019/energies-propres-mode-marocain-interesse-lallemagne-selon-rabbah/327813.html Bladi.net (2019). "Énergies Renouvelables : les ambitions du Maroc à l’horizon 2030", bladi.net, December 2, available at: https://www.bladi.net/energies-renouvelables-maroc,62055.html Challenge.ma (2019). " Le Maroc bientôt exportateur de pétrole… vert", challenge.ma, November 30, available at: https://www.challenge.ma/petrole-vert-le-maroc-bientot-exportateur-124529/ Fédération de l'Energie (2020). "World Power to X summit 2020 du 10 au 12 Juin à Marrakech", fedenerg.ma, available at: http://www.fedenerg.ma/evenement/world-power-to-x-summit-2020-du-10-au-12-juin-a-marrakech/ Finances News Hebdo (2019). "Les grandes ambitions du Maroc sur le marché de l’hydrogène à l’horizon 2030", fnh.ma, December 9, available at: https://fnh.ma/article/developpement-durable/les-grandes-ambitions-du-maroc-sur-le-marche-de-l-hydrogene-a-l-horizon-2030 Fraunhofer - ISI, (2019). "Carbon-neutral energy from power-to-X: Economic opportunity and ecological limitations for Morocco", isi.fraunhofer.de, September 2019, available at: https://www.isi.fraunhofer.de/en/presse/2019/presseinfo-24-klimaneutrale-energie-aus-power-to-x-marokko.html H2 Today (2019). "Le Maroc veut se lancer aussi dans l’hydrogène", hydrogentoday.info, August 27, available at: https://hydrogentoday.info/news/5678 IRESEN (2019). "Terms of reference: Expert Mission for Assistance in a Study on 2050 Power-To-X Roadmap for Morocco", iresen.org, October 8, available at: http://www.iresen.org/Site_Iresen/wp-content/uploads/2019/10/ToR_ConsultMar_PtX-Road-Map-2050-Morocco_FV.pdf La Quotidienne (2019). "Le Maroc se met à la technologie «Power-to-X»", laquotidienne.ma, February 13, available at: https://www.laquotidienne.ma/article/developpement_durable%20/le-maroc-se-met-a-la-technologie-power-to-x Libération (2019). "Le Maroc pourrait devenir un exportateur de pétrole vert avant 2030", libe.ma, December 3, available at: https://www.libe.ma/Le-Maroc-pourrait-devenir-un-exportateur-de-petrole-vert-avant-2030_a113744.html MAP Ecology (2019). "«Power-to-X»: une commission nationale verra le jour", mapecology.ma, February 13, available at: http://mapecology.ma/actualites/power-to-x/ Media 24 (2019). "Energies renouvelables: le Maroc prépare sa feuille de route "Power to X", media24.com, February 13, available at: https://www.medias24.com/power-to-x-maroc-energie-145.html Media 24 (2019). "Le Maroc, exportateur de pétrole vert avant 2030", media24.com, November 30, available at: https://www.medias24.com/le-maroc-exportateur-de-petrole-vert-avant-2030-5925.html Ministry of Energy, Mines and Environment (2019). "« Power to X», Hydrogène et ammoniac verts: Quelles opportunités et priorités pour le Maroc?", mem.gov.ma, February 11, available at: https://www.mem.gov.ma/Pages/CommuniquesDePresse.aspx?CommnuniqueDePresse-89.aspx Morocco Travel Blog (2020). "World Power-to-X Summit 2020 Comes To Marrakech", moroccotravelblog.com, January 7, available at: https://moroccotravelblog.com/scalia_news/world-power-to-x-summit-2020-comes-to-marrakech/ www.energypartnership.ma (The Moroccan-German Energy Partnership - PAREMA website) https://industries.ma/la-feuille-de-route-nationale-pour-les-technologies-ptx-au-centre-dune-reunion-a-rabat/ https://leseco.ma/power-to-x-une-feuille-de-route-nationale-en-reflexion/
In southern Morocco, on the edge of the Saharan desert, lies a marvel of modern engineering that harnesses the power of the sun: the Noor Power Plant. This facility is not only the second-largest solar plant in the world, boasting a capacity of 510MW over an expansive area, but it is also a pioneering project in concentrated solar power (CSP) technology. Unlike the more common photovoltaic (PV) systems, the Noor Power Plant utilizes CSP to tap into the sun's thermal energy, marking a significant shift in how solar energy is captured and utilized. This is the second largest solar plant in the world with a total capacity of 510MW and an area that dwarfs the nearby city of Ouarzazate. However, its staggering size is not the only thing setting this power plant apart. Unlike most solar projects which use photovoltaic (PV) technology, the Noor Power Plant employs Concentrated Solar Power (CSP). While PV exploits the chemical and physical properties of photons hitting a solar cell (see photovoltaic effect), CSP exploits the thermodynamic properties of the sun. In simplified terms, a CSP plant has mirrors concentrating sunlight on a thermal receiver (normally molten salts) heating it up to 150–350 °C. The heat trapped in this fluid is then used to generate steam to drive a turbine connected to a generator, much like any other thermoelectric plant. This process is fundamentally different from a PV installation where the solar panel itself is the generating element. This difference has a crucial impact on the point of dispatchability. Without investing in additional battery storage assets, a PV facility can only dispatch electricity as it’s being produced. This is a huge drawback since it means that a PV system must usually be integrated by an alternative source of dispatchable energy to cover non-productive hours (nighttime, cloudy weather, etc…) or invest in expensive storage solutions (usually l-ion batteries). R&D has made strides in electricity storage techniques, but these remain a costly solution for utility scale projects. [caption id="attachment_4983" align="aligncenter" width="577"] Solar Power Explained[/caption] Instead, a CSP system can intrinsically store potential energy as heat in the working fluid for hours allowing producers to choose the time and amount of energy to dispatch even when the sun isn’t shining. This means that it does not need to be integrated by other power sources and does not require expensive electricity storage solutions. The storage capabilities have been rapidly improving just over the past few years too. Taking the Noor Power Plant as an example, Phase 1 (commissioned in 2016 ) has a storage capacity of 3 hours while Phase 2 and 3, which came online only 2 years later, can store energy for 7 hours. Despite this significant advantage CSP only accounts for less than 2% of all solar power projects. Why is this? The main factor has to do with space. CSP requires approximately twice as much acreage as PV to produce the same energy. In addition this area must be contiguous since the mirrors must reflect on a single heat receiver. Adding to this direct cost are the costs associated with construction in vast, barren, flat and hot places, i.e. deserts. Projects in these remote locations require construction of ancillary infrastructure such as longer roads, transmission lines, facilities, and transportation. This translates in higher capital expenditures for CSP. While the space requirement and associated costs are intrinsic to the technology, another cost factor are the installation costs which are still significantly higher than PV due to the relatively low developer experience and limited supply chain. Yet, these are already declining due to the slow but constant commissioning of new projects. In fact, 2018 saw a 26% drop in the global weighted average Levelized Cost of Electricity (LCOE) over 2017. CSP’s LCOE in 2018 was 0.185 USD/kWh, significantly higher than PV’s 0.085 USD/kWh. This is also still above the fossil fuel cost range (0.05-0.17 USD/kWh). Notwithstanding, current auction and PPA data suggests that by 2020 CSP will offer electricity in the USD 0.06 to US 0.10/kWh range. Dropping costs and dispatchability are bound to significantly accelerate the adoption of this technology worldwide. However, it may be wrong to view CSP and PV as competitors. As illustrated earlier, these are two fundamentally different technologies. It is the opinion of this analyst that CSP is better tailored for large utility scale projects while PV is better suited for distributed energy production and smaller capacities (rooftops, parking lots, self-consumption, etc…). CSP may be better understood as a direct competitor of other dispatchable thermoelectric energy producers such as gas and coal plants. Afterall renewable technologies should supplant fossil fuels not each other. This certainly appears to be the idea of the Moroccan Renewable Energy Agency (MASEN) which aims to blow the historical achievements set by the Noor plant out of the water with the Midelt project which integrates CSP and PV to produce 800MW in order to meet its 2020 target of 2000MW solar capacity. Over 2,000 years have passed since Archimedes used sun-mirrors to burn Roman ships to break the siege of Syracuse, it appears that we may have to rely on the same idea to get ourselves out of an even bigger mess yet again. Lorenzo W. Bruscagli - Associate at Infomineo References: RE PROJECTS MAP Renewable Power Generation Costs in 2018, IRENA MASEN Launches Noor Midelt II Solar Farm Tender Process, Morocco World News, July 10 2019
Experiences from Oman’s Miraah power plant Over the last decade, due to its maturing oil fields and limited reserves, Oman's domestic crude oil production relied heavily on Enhanced Oil Recovery (EOR) methods. Just as in Oman, most of the global oil production comes from mature or maturing fields with an average recovery factor of around 30 to 35 percent. Since 50 to 70 percent of the oil hasn't been recovered, maturing oil reservoirs possess enormous potential. In previous years, production through the three main EOR methods, thermal recovery, gas injection, and chemical injection, was about 3 million barrels per day (b/d) or 3.5 percent of the world crude oil production per day (Gregory, Omom, and Greil 2014: 16). Of these 3 million b/d, 66 percent were produced through thermal recovery (Kokal and Al-Kaabi 2010: 1). In general, the process of recovering oil is broken down into three different phases: primary, secondary, and tertiary recovery. Source: Gregory, Omom, and Greil 2014: 14 Primary and secondary recovery are considered conventional recovery and target the mobile oil in the reservoir, whereas tertiary recovery targets immobile oil which cannot be recovered due to capillary and vicious forces. Tertiary oil recovery, referred to as EOR, relates to the injection of gases, steam, oxygen, air, polymer solutions, gels, surfactant-polymer-formations, alkaline-surfactant-polymer formations, or microorganism formations into the reservoir, as these fluids reduce the viscosity and thereby enhance the flow of oil (Gregory, Omom, and Greil 2014: 14). While steam injection is the preferred EOR method, especially for heavy crude[1] with a high viscosity, there are different ways of how to produce the necessary steam. In the conventional steam injection method, natural gas is burned to produce steam from boiling water. The Concentrating Solar Power (CSP) technology merely replaces natural gas with solar power. Petroleum Development Oman (PDO)[2], the major exploration company in the Sultanate, was fighting declining oil output from its maturing reservoirs with the enhanced usage of steam injection produced with natural gas. However, it became gradually more difficult for the country to satisfy the growing domestic demand, driven by the need for gas in generating power and the development of other industries (Sergie and Dipaola 2015). To limit the quantity of imported gas, the Omani government together with its partners, Shell and Total, decided to invest $600 million in the construction of the Miraah - Arabic for a mirror - solar power plant. Located at the Amal West oil field in the southern part of Oman, the 1,021 MW solar-thermal facility could save up to 5.6 trillion btu, enough to provide 209 000 Omanis, 5 percent of the country’s population, with electricity (Kantchev 2015; Kramer 2017). Steam generated from the CSP technology has the same quality and temperature as the one generated from gas and resembles a perfect substitute. The solar technology used at the Miraah power plant does not use solar panels but large, curved mirrors which automatically track the sun throughout the day, concentrate the sunlight on a pipe filled with water, bring it to boil, and thereby produce high-pressure steam. Upon the successful completion of a 7-MW pilot project in 2013, the company GlassPoint started construction on the Miraah plant in 2015 (Renewable Now 2017). The American company pioneered an enclosed trough system which is particularly suited to transport the CSP technology from the arid region of southern California to the desert environment of the Arabian Peninsula. Setting up the solar mirrors inside a greenhouse results in three major advantages: reducing costs, achieving high energy density, and protecting sensitive technology. To avoid soaring custom project costs, GlassPoint builds its solar fields in glasshouse blocks using a series of standardized steps, where the majority of the system is comprised of prefabricated components that can be easily assembled onsite. Routinized constructions steps not only improve the speed of deployment, but by doing so also drive down the costs of construction. This point was validated on November 1st, 2017, when PDO and GlassPoint announced that the first out of 36 blocks that constitute the solar plant was completed on time and on budget (PDO 2017). Standardized construction measures as well as the availability to fall back on lower-cost material thanks to the protection offered by the glasshouse, drastically decreases the production costs. Furthermore, the straight surface of the greenhouse positively affects operating costs as it allows for easy cleaning by a robotic system, compared to a slightly more complicated cleaning process for the curved mirrors. Source: Operating CSP in Desert Conditions, Glasspoint The second advantage of the enclosed troughs is that the glasshouse blocks provide high energy density as 93 percent of the land area can be covered with mirrors. Since the materials used in an enclosed trough can be low-cost, it is more cost-efficient to pack the collectors tightly together into a smaller space (GlassPoint 2017: Standard Block). The additional energy generated during peak sun hours, when the sun is high in the sky, far exceed any losses from shading caused by neighboring mirrors during the low sun hours. Achieving high energy density is crucial for EOR applications because steam needs to be produced close to the oil field so that it travels the shortest distance. Without the protection offered by the glasshouse, sand and dust storms, common phenomena in the deserts of the Middle East, would decrease the efficiency of the mirrors through soiling. Because the glasshouse has a height of 6 meters above the ground, soiling rates are 50 percent less compared to objects that are merely 1 meter above the ground (GlassPoint 2017: Sealed from Dust). The glasshouse also prevents damages to the mirrors and other delicate components of the system caused by sand, wind, and humidity. The Miraah solar plant could produce up to 80 percent of the steam that is needed for the EOR (Power Technology). This would allow Oman to free up natural gas currently utilized for EOR and use it in other parts of its economy. Furthermore, substituting natural gas with solar steam would remove the largest and most volatile cost of thermal EOR: the price of gas. Even though a certain amount of gas would still be required to maintain steam injection at night, CSP has the potential to drive down the quantity of natural gas needed in producing steam. With a stabilized oil price in the range of $55 to $65 and an increasing demand for the use of natural gas in other parts the economy, the capital-intensive investment needed for CSP is becoming more attractive. Yet, the spread of the technology will also depend on the success of and insights from the Miraah power plant. As GlassPoint continues construction on time and on budget, national and international oil companies trying to increase the recovery rate of maturing fields might consider substituting natural gas for solar energy. [1] The viscosity resembles a particular attribute that defines the quality of crude oil and is expressed in API (American Petroleum Institute) gravity. An API of 40 and higher resembles low viscosity and stands for high-quality crude oil. Due to its increased mobility (fluidity), reservoirs containing light crude reach a higher recovery factor at a lower average cost, while at the same time light crude reaches higher prices on the world market as it requires a lower quantity of energy during the refinement process. Heavy crude on the other side, with an API below 20, is very thick and therefore immobile. Contrary to light crude, recovery costs for heavy crude are higher and the prices exporters obtain on the world market significantly lower as more energy is required for refinement. Thermal EOR methods for heavy crude become economically justifiable once the oil price reaches a certain level. [2] Owned to 60 percent by the Omani government, 34 percent Shell, 4 percent Total, and 2 percent PATEX. Kevin Matthees, Senior Analyst at Infomineo. References Gregory, Mark, David Omom, and Pierre-Alexandre Greil. 2014. “Solar Enhanced oil recovery. An in-country value assessment for Oman.” Ernst&Young. January. http://www.ey.com/Publication/vwLUAssets/EY-Solar-enhanced-oil-recovery-in-Oman-January-2014/$FILE/EY-Solar-enhanced-oil-recovery-in-Oman-January-2014.pdf. Kantchev, Georgi. 2015. “Oman to Build Giant Solar Plant to Extract Oil” Washington Post, 8 July. Kokal, Sunil and Abdulaziz Al-Kaabi. 2010. “Enhanced oil recovery: challenges and opportunities.” EXPEC Advanced Research Centre. Saudi Aramco. http://www.world-petroleum.org/docs/docs/publications/2010yearbook/P64-69_Kokal-Al_Kaabi.pdf. Kramer, Susan. 2017. “Solar EOR a Big Win for GlassPoint.” SolarPACES. July 3. http://www.solarpaces.org/glasspoint-solar-eor-miraah-start-august/. Petroleum Development Oman. 2017. “Miraah Solar Plant Delivers First Steam to Amal West Oilfield.” Press Release. November 1. http://www.pdo.co.om/en/news/press-releases/Pages/Miraah%20Solar%20Plant%20Delivers%20First%20Steam%20to%20Amal%20West%20Oilfield.aspx. Power Technology. Unknown. “Mirah Solar Thermal Project.” http://www.power-technology.com/projects/miraah-solar-thermal-project/. Renewables Now. 2017. “Miraah solar thermal plantin Oman delivers 1st steam for EOR.” November1. https://renewablesnow.com/news/miraah-solar-thermal-plant-in-oman-delivers-1st-steam-for-eor-589407/. Sergie, Mohammed, and Anthony Dipaola. 2015. “Oman said to consider LNG imports as domestic gas use surges.” Bloomberg. August 30. https://www.bloomberg.com/news/articles/2015-08-30/oman-said-to-consider-importing-lng-as-domestic-gas-use-surges.
For years, energy has been heavily subsidized in the MENA region. As stated by the IMF, in 2011 energy subsidies represented 8.5 % of GDP and 22 % of government revenue, at a total cost of $240 billion. Moreover, “six of the world’s largest subsidizing countries are found in MENA, led by Kuwait, Iran, Saudi Arabia, and Qatar, where residents pay less than a third of international prices for fuel and electricity” [1]. For instance, to subsidise electricity and water in Abu Dhabi in 2014, the government spent DH17.5 billion. Also, in the summer of 2014, the Saudi Arabian government burnt 900,000 barrels of oil a month to meet the demand of the already subsidized electricity [2]. This situation was made possible by reserves representing about 57 % of the world’s proven oil reserves and 41 % of proven natural gas resources.[3] (more…)