Evaluating the role of cogeneration for carbon management in Alberta

• Published in: Energy policy 2011-12, Vol.39 (12), p.7963-7974
• Main Authors: Doluweera, G.H., Jordaan, S.M., Moore, M.C., Keith, D.W., Bergerson, J.A.
• Format: Article
• Language: English
• Subjects: Air pollution; Air pollution caused by fuel industries; Alberta; Applied sciences; Canada; Carbon; Carbon dioxide; Carbon emissions; Carbon management; carbon markets; Climate change; Cogeneration; Control; Cost; Crude oil, natural gas and petroleum products; Crude oil, natural gas, oil shales producing equipements and methods; Electric power; electricity; Emissions control; Emissions trading; Energy; Energy economics; Energy industry; Energy policy; Energy. Thermal use of fuels; Environmental economics; Environmental management; Environmental policy; Evaluation; Exact sciences and technology; Fuels; General, economic and professional studies; General. Regulations. Norms. Economy; greenhouse gas emissions; industry; Management; Metering. Control; Oil; Oil extraction from wells. Pumping. Shale oil extraction. Well workover; Oil sands; Petroleum industry; Pollution control; Prices; Prospecting and production of crude oil, natural gas, oil shales and tar sands; Regulation; Sands; Studies
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2011.09.051

Developing long-term carbon control strategies is important in energy intensive industries such as the oil sands operations in Alberta. We examine the use of cogeneration to satisfy the energy demands of oil sands operations in Alberta in the context of carbon management. This paper evaluates the role of cogeneration in meeting Provincial carbon management goals and discusses the arbitrary characteristics of facility- and product-based carbon emissions control regulations. We model an oil sands operation that operates with and without incorporated cogeneration. We compare CO 2 emissions and associated costs under different carbon emissions control regulations, including the present carbon emissions control regulation of Alberta. The results suggest that incorporating cogeneration into the growing oil sands industry could contribute in the near-term to reducing CO 2 emissions in Alberta. This analysis also shows that the different accounting methods and calculations of electricity offsets could lead to very different levels of incentives for cogeneration. Regulations that attempt to manage emissions on a product and facility basis may become arbitrary and complex as regulators attempt to approximate the effect of an economy-wide carbon price. ► We assess the effectiveness of cogeneration for carbon management in Alberta. ► Cogeneration can offset a significant portion of Alberta's high carbon electricity. ► CO 2 reduction potential of cogeneration may be higher if installed immediately. ► Product based policies should approximate the effect of an economy-wide policy.