Break-even price for upstream activities in Brazil: Evaluation of the opportunity cost of oil production delay in a non-mature sedimentary production region

Some Latin American policy-makers and analysts state that it would be better to hold oil reserves in place than to produce and cash it now, given the recent oil prices spikes and the fear related to future oil supply disruptions. This article evaluates the strategy of delaying the start-up of oil production in a discovered field with proved reserves. A Reference Discounted Cash Flow (FCD-R) for a typical 350 million barrel Brazilian oil field was simulated. The study estimated which future oil price may render the project insensitive to a delay of 5, 10, 15 or 20 years in its production beginning. Additionally, the value of the in situ oil stock was calculated, providing the opportunity cost for delaying oil production in a frontier area, such as Brazil. It is an application of the Hotelling Principle. Findings indicate that progressive delays of 5 years in the start-up of operation of a typical oil field reduce its revenues by a factor of 2. A delay of 10 years would be justifiable at international oil prices higher than US $15/bbl. Delays higher than 10 years lead this break-even price to values between US $200 and 350/bbl.     

The potential and economic viability of hydrogen production from the use of hydroelectric and wind farms surplus energy in Brazil: A national and pioneering analysis

Energy security is an issue at stake in governments all over the world, and also in Brazil. Although the country's energetic matrix is largely based on hydropower sources, the need for diversification is increasingly needed. The possibility of hybrids between hydropower and wind power for hydrogen production emerges as a clean alternative source for energy security. In high-throughput seasons, excess energy could be used to produce hydrogen, which could supply shortages of energy. This study shows the potential for producing hydrogen in Brazil, using excess energy from hydroelectric and wind farms. Taking into account one hour per day of surplus energy production, it would be possible to generate 6.50E+09 Nm³.y⁻¹ of H₂. On the other hand, considering two and three hours, the H₂ generation would be equal to 1.30E+10 Nm³.y⁻¹ and 2.00E+10 Nm³.y⁻¹, respectively. This study calculated the economic viability for hydrogen production, at a cost of 0.303 USD.kWh⁻¹, a higher cost if compared to that of the wind and hydroelectric plants.     

Application of the exergy method to the environmental impact estimation: The nitric acid production as a case study

In this work the exergy method is used to compare various methods for removal of NO_x from waste (tail) gas released into the atmosphere from nitric acid production plants with respect to their overall environmental impact. Three basic methods for NO_x abatement are analysed: selective catalytic reduction (SCR), non-selective catalytic reduction (NSCR) and extended absorption. The positive and negative effects and the net effect from the NO_x abatement are calculated. The following exergy-based indicators are used for comparing the energy efficiency and the environmental impact of different treatment processes as a result from pollutants removal: reduction of the exergy of the emissions from the whole process route (ammonia and nitric acid production units); exergy of the additional emissions, arising as a result of the treatment process; total net reduction of the exergy consumption, Cumulative Energy Consumption (CEnC) and Cumulative Exergy Consumption (CExC) of natural resources as a result of the waste flows treatment.     

Application of the exergy method to environmental impact estimation: The ammonium nitrate production as a case study

The exergy method is used to compare different production processes and various methods for emission abatement with respect to their overall environmental impact. Some ammonium nitrate production processes are studied as examples, because the pollutants (ammonia and ammonium nitrate), emitted from these processes into the air and/or into the water, are really a feedstock and a product from the production process. Therefore, the essential result of the waste flows treatment is the recycling of the pollutants (ammonia and ammonium nitrate) back into the production process, decreasing simultaneously the exergy input and cumulative exergy consumption     

The potential for electricity conservation and carbon dioxide emission reductions in the household sector of Brazil

Pressure is mounting in large Non-Annex 1 countries like Brazil, China, and India to accept binding commitments to reduce their greenhouse gas emissions in the second, post-2012, commitment period. In the case of Brazil, pressure is higher for the country to commit itself to reduce its emissions from land use changes but, because of the country’s recent high economic growth rates, very soon, this pressure will also turn to reducing its greenhouse gas emissions from electricity production and use in the various sectors of the economy. This paper summarizes the methodological approach, and the results, of a study aimed at assessing the potential for electricity conservation and carbon dioxide emissions reductions in the Brazilian household sector. The study splits the household sector into 20 subsectors, considering five different geographical regions and four household electricity consumption levels (a proxy for different household income levels). Technical, economic, and market potentials are determined for electricity conservation in these 20 subsectors for the period 2005–2030, and results are also translated into carbon dioxide emission reductions using the Clean Development Mechanism (CDM) combined margin (build margin plus operating margin) approach for determining the emission’s factor for the power grids. Results show significant electricity and carbon dioxide reduction potentials at negative costs for both household final consumers (market potential) and the economy as a whole (economic potential) in the residential sector of Brazil.

Electric energy generation from small-scale solar and wind power in Brazil: The influence of location,area and shape

Power production from renewable sources is identified as one of the tools to attain sustainable development in economic and social terms in Brazil. Awareness of how to prioritize renewable energy sources and technologies becomes increasingly important. Solar and wind energy have been highlighted in this context as being clean, safe and also relatively mature technologies. In addition, they are also renowned for having great energy potential and allowing different mounting options for energy harvesting systems. This article seeks to contribute to the knowledge of the effects that the key attributes, location, area and shape, of a site can have on the potential of renewable generation. In order to incorporate these attributes into an integrated analysis, a comparison method is developed and subsequently applied in a case study for two Brazilian cities. Results indicate that the amount of energy obtained by a given power generation system can undergo large variations depending on the characteristics of attributes such as site location, area and shape. This variation may ultra-pass 200%, in some cases, which demonstrates the importance of a better understanding of the role of these attributes in determining energy production.     

Reflections on the international climate change negotiations: A synthesis of a working group on carbon emission policy and regulation in Brazil

This short communication presents a synthesis of a Working Group on Carbon Emission Policy and Regulation held at the University of Sao Paulo, in Brazil. The document looked at the problems with the international negotiations, the options for Brazil as it attempts to control emissions, and ways to leverage the mitigation process. Several options are currently being proposed, but these are neither clear in order to support a solid polycentric approach with adequate metrics, nor a robust international coordination and a sound scientific communication. Brazil has a central role in this process, for having successful initiatives on renewable energy and deforestation control. Its leadership can demonstrate how such policies might take shape. However, the country´s future is uncertain in terms of low carbon development. Although the country is still well positioned among BRICS to find practical solutions to the stalemate in international cooperation, several internal challenges need to be harmonized.     

The vulnerability of hydroelectric generation in the Northeast of Brazil: The environmental and business risks for CHESF

The main objective of this study is to identify how global climate change may affect the internal and external variables of enterprises, and how strategic planning could include responses to potential performance threats. A case study was prepared using data from the São Francisco Hydroelectric Company (CHESF), the largest hydroelectric power generator in Brazil's Northeast region. It is essential to understand how the leading energy company in the region is preparing to address these problems involving economic impacts resulting from the environmental effects of climate change. Two prospective methodologies were used to select the variables and construct a SWOT matrix, and their respective scenarios: A Panel of Experts and the Delphi Method. The methodologies used allow for four (4) distinct scenarios to be inferred for CHESF up until 2050: Development, Growth, Survival and Decline. The analyses of these scenarios concluded that CHESF's main risk from climate change is the possible reduction of water flow and reservoir levels, which could threaten energy security throughout the country if certain preventative adaptations to climate change are not implemented.     

The taxation of UK oil and gas production: Why the windfalls got away

Starting with evidence that United Kingdom Continental Shelf oil and gas companies have benefitted very disproportionately from the recent period of extraordinarily high oil prices, this paper traces the history of this weakness in the UK’s petroleum fiscal regime. Evidence is provided that the progressive relaxations in the UK’s petroleum fiscal regime in 1983, 1987–1988 and 1993 were: largely unnecessary to stimulate the development of new, smaller, ‘marginal’ fields; misguided in their assumption that such fields were more costly to develop than earlier counterparts or larger contemporary fields; and impotent compared with the effects of oil price movements. The paper concludes with a conceptualisation which illuminates why these failures of policy were not just random: they emerged from the UK’s ‘non-proprietorial’ stance with respect to the country’s oil and gas resources, a stance which assumes responsibility for oil company profitability and vainly tries to counter market forces at the expense of government revenues.     

The concept of the gas turbine‐based hybrid vehicle: system,design and configuration issues

The object of this study is a theoretical and experimental analysis of a new hybrid propulsion system for a passenger sedan in which the thermal engine is a small gas turbine set. Some preliminary results on the possibility of replacing the conventional ICE of a hybrid ‘series’ configuration by a turbogas were presented and discussed in previous papers by the same authors: several possible designs were examined under both a thermodynamic and an operative point of view. This paper presents a summary of the project and constitutes an attempt to put things in a proper engineering perspective: the technical feasibility of the project is assessed via a calculation of the required mission loads, a preliminary design of the most important elements of the propulsive system, the choice of the mission control strategy and the implementation of a numerical system simulator. The experiments that provided a verification for the assumed component efficiencies were carried out, in cooperation with the Research Centre of ENEA‐Casaccia, on an ELLIOTT TA‐45 group. Our results, though only preliminary, allow for a direct comparison between a GT‐hybrid vehicle and a modern diesel car, and indicate that the GT‐hybrid may be actually a competitor for the FC‐powered vehicle concept. Our ‘optimal’ configuration is a combination of a 100 kg battery pack and two turbogas set of 5 and 16 kW, respectively. Copyright © 2005 John Wiley & Sons, Ltd.     

Hydrogen storage in saline aquifers: The role of cushion gas for injection and production

Hydrogen stored on a large scale in porous rocks helps alleviate the main drawbacks of intermittent renewable energy generation and will play a significant role as a fuel substitute to limit global warming. This study discusses the injection, storage and production of hydrogen in an open saline aquifer anticline using industry standard reservoir engineering software, and investigates the role of cushion gas, one of the main cost uncertainties of hydrogen storage in porous media.The results show that one well can inject and reproduce enough hydrogen in a saline aquifer anticline to cover 25% of the annual hydrogen energy required to decarbonise the domestic heating of East Anglia (UK). Cushion gas plays an important role and its injection in saline aquifers is dominated by brine displacement and accompanied by high pressures. The required ratio of cushion gas to working gas depends strongly on geological parameters including reservoir depth, the shape of the trap, and reservoir permeability, which are investigated in this study. Generally, deeper reservoirs with high permeability are favoured. The study shows that the volume of cushion gas directly determines the working gas injection and production performance. It is concluded that a thorough investigation into the cushion gas requirement, taking into account cushion gas costs as well as the cost-benefit of cushion gas in place, should be an integral part of a hydrogen storage development plan in saline aquifers.     

Grappling with a half-hearted policy: The case of renewable energy and the environment in South Africa

Integrated resource planning (IRP) of power generation and delivery characterized by higher penetration of distributed energy resources (DERs) has taken the 21st century world by storm. It promises power markets that are more resilient to resource and capital cost uncertainties as well as environmental sustainability. The success of this new paradigm has been largely anchored by decisive support policy mechanisms and good implementation. But while the developed and emerging economies are registering phenomenal growth in their renewable energy industries, South Africa would appear to be caught in a time warp with a weak environment policy and a power sector that continues to plan its future in the traditional way. The consequences are continued environmental degradation and a high-energy intensive economy with intermittent power supplies.     

Integration of renewable energies using the surplus capacity of wind farms to generate H2 and electricity in Brazil and in the Rio Grande do Sul state: energy planning and avoided emissions within a circular economy

Hydrogen is a clean fuel capable of promoting sustainable energy development. The effective use of surplus energy from wind plants appears as a promising method to produce hydrogen. Accumulating surplus energy through hydrogen production and storage can solve the problem of energy excess, making energy available on-demand. This article explored the potential of hydrogen production from wind energy in three distinct scenarios of surplus energy, and the amount of electricity generation for Brazil and its regions. To a scenario of 6-h of energy excess, the potential for hydrogen production from wind energy was equal to 1.48E + 07 Nm³.d⁻¹. The state of Rio Grande do Sul reached a potential of 1.10E+06 MWh.month-¹ of electricity generation using H₂. Taking into account a payback-time of 3.5 years, the cost of hydrogen production was 0.402 US$.kWh⁻¹. Hydrogen ensures greater energy security in times of energy shortages through biofuel storage. The main goal was to show the possibilities of diversifying the national electrical matrix and the wind resources contribution to the Circular and H₂ Economy in the country.     

Ethanol and food production by family smallholdings in rural Brazil: Economic and socio-environmental analysis of micro distilleries in the State of Rio Grande do Sul

In light of the perspectives of ethanol from sugar cane industry in Brazil and the biofuelscurrent international debate, certain questions ought to be examined. The framework for future expansion of ethanol production, to meet with supply needs at national and international levels using the current production model, does not take into consideration the prospect of Brazil's regional and rural development. Although currently there are no impediments to the culture of sugar cane in Rio Grande do Sul (RS) State, Brazil's largest producer of biodiesel, it imports 98% of its demand for ethanol from São Paulo and other regions. The promotion of ethanol market in that State might pass for a productive model different from the practice in industrial monocultures, given their cultural and agricultural characteristics. The IFES (Integrated Food and Energy System) from COOPERBIO -n Cooperativa Mista de Produção, Industrialização e Comercialização de Biocombustíveis do Brasil Ltda., established on an experimental basis in the State, presents multiple economic, social and environmental benefits, potentializing the present food procuction by smallholders and favoring a sugar cane ethanol greater consumption in the inland of RS State. With a few tweaks and adequate governmental policies and instruments, the expansion of this model may even cover the current demand in the State. In addition to the production of energy and foods less dependent on fossil fuels, this model contributes for preservation of ecosystem services and for climate smart rural sustainable development.     

The production of hydrogen-rich gas by wet sludge gasification using waste heat of blast-furnace slag: Mass and energy balance analysis

Sludge gasification for the production of hydrogen-rich gas is a promising technology. In this paper, a pilot study on the hydrogen-rich gas production by sludge gasification using waste heat of blast furnace slag was carried out, and the mass and energy balance of gasification process using waste heat from blast furnace slag were evaluated. The results show that the higher the gasification temperature, the higher the hydrogen content in the gas. When the gasification temperature reaches 880 °C, the hydrogen content in the gas reaches the maximum,35.3%. The technology of sludge gasification combined with waste heat recovery of high furnace slag is feasible. Its efficiency of heat recovery can reach up to 64.35%, and the gasification efficiency and energy consumption ratio can reach to 42.30% and 3.67, respectively.     

The impact of Hurricanes Gustav and Ike on offshore oil and gas production in the Gulf of Mexico

During August and September 2008, Hurricanes Gustav and Ike passed through the Gulf of Mexico and damaged and destroyed a number of offshore oil and gas structures. In the final official government assessment, a total of 60 platforms were destroyed and 31 structures were identified as having extensive damage. The destroyed platforms were responsible for about 1.6% of the oil and 2.5% of the gas produced daily in the Gulf of Mexico and represented approximately 234 million BOE of reserves valued between $4.6 and $10.9 billion. Although the number of structures destroyed by Hurricanes Gustav and Ike was half the total destruction from the 2004–2005 hurricane seasons, we estimate that the reserves at risk are approximately three times more valuable. Each destroyed structure is unique in its production capacity and damages incurred and are a candidate for redevelopment. We review pre-hurricane production and revenue characteristics for the collection of destroyed structures and estimate production at risk. Gas structures are expected to present better economics and redevelopment potential than oil structures, and we predict that 198 million BOE, or nearly 95% of reserves-in-place, are likely to be redeveloped. Shut-in production statistics are compared against recent hurricane events and general comments on the factors involved in decision making are presented.     

The potential of hydrogen production from high and low-temperature electrolysis methods using solar and nuclear energy sources: the transition to a hydrogen economy in Brazil

Brazil has great potential for diversification and decarbonization of its energy matrix, with the insertion of a clean and renewable energy source such as hydrogen. This paper seeks to evaluate the surplus energy potential of solar and nuclear plants installed in the country for the production of green and purple hydrogen using high and low temperature electrolysis methods. Based on official reports and databases of energy production and demand, the results indicated that the total potential of surplus solar energy is equal to 4.29E+07 (kWh.d^?1). Further, the total potential of electricity production from the hydrogen obtained through surplus solar energy was equivalent to1.87E+07 (kWh.d^?1); and the total cost of producing solar hydrogen is equal to 1.07E+03 (USD.kWh^?1). In conclusion, the study contributed to demonstrate the pathways to the establishment of strategies that assist the transition to a hydrogen economy in Brazil.     

Hydrogen production by water-gas shift reaction over Co-promoted MoS2/Al2O3 catalyst: The intrinsic activities of Co-promoted and unprompted sites

Co-promoted MoS₂/Al₂O₃ is the industrial-widely used catalyst for hydrogen production by water-gas shift (WGS) reaction under sulfur-containing condition. Despite of the intensive physicochemical characterizations, the intrinsic activities of Co-promoted and unprompted sites on this catalyst are still unreported, mainly owning to the lack of quantification method of catalytic sulfide sites. With low temperature CO adsorption followed by IR spectroscopy, a distinguish technique developed by our group, this short communication reports the temperature-dependent TOFs (turnover frequencies) of these two sites, and reveals that Co-promoted site is intrinsically much more active than unprompted site at low temperatures, while these two sites are catalytically comparable at higher reaction temperatures. The catalytically different performances are related to the different apparent activation energies of WGS reaction on these two sites. This work fills in the long-standing gaps in hydrogen production by WGS reaction over sulfided CoMo/Al₂O₃ catalyst.     

Hydrogen rich gas production by the autothermal reforming of biodiesel (FAME) for utilization in the solid-oxide fuel cells: A thermodynamic analysis

The thermodynamics of the autothermal reforming (ATR) of biodiesel (FAME) for production of hydrogen is simulated and evaluated using Gibbs free minimization method. Simulations are performed with water-biodiesel molar feed ratios (WBFR) between 3 and 12, and oxygen-biodiesel molar feed ratio (O_XBFR) from 0 to 4.8 at reaction temperature between 300 and 800 °C at 1 atm. Yields of H₂ and CO are calculated as functions of WBFR, O_XBFR and temperature at 1 atm. Hydrogen rich gas can be produced by the ATR of biodiesel for utilization in solid-oxide fuel cells (SOFCs). The best operating conditions for the ATR reformer are WBFR≥9 and O_XBFR = 4.8 at 800 °C by optimization of the operating parameters. Yields of hydrogen and carbon monoxide are 68.80% and 91.66% with 54.14% and 39.2% selectivities respectively at the above conditions. The hydrogen yield from biodiesel is higher than from unmodified oils i.e., transesterification increases hydrogen yield. Increase in saturation of the esters, results in increase in methane selectivity, while an increase in unsaturation results in a decrease in methane selectivity. Increase in degree of both saturation and unsaturation of esters, increases coke selectivity. Similarly an increase in the linoleic content of esters, increases coke selectivity.     

The effect of pH on the production of biohydrogen by clostridia: Thermodynamic and metabolic considerations

This study evaluates the effect of pH (4-7) on fermentative biohydrogen production by utilizing three isolated Clostridium species. Fermentative batch experiments show that the maximum hydrogen yield for Clostridium butyricum CGS2 (1.77 mmol/mmol glucose) is achieved at pH 6, whereas a high hydrogen production with Clostridium beijerinckii L9 (1.72 mmol/mmol glucose) and Clostridium tyrobutyricum FYa102 (1.83 mmol/mmol glucose) could be achieved under uncontrolled pH conditions (initial pH of 6.4-6.6 and final pH of 4-4.2). Low hydrogen yields (0-0.6 mmol/mmol glucose) observed at pH 4 are due likely to inhibitory effects on the microbial growth, although a low pH can be thermodynamically favorable for hydrogen production. The low hydrogen yields (0.12-0.64 mmol/mmol glucose) observed at pH 7 are attributed not only to thermodynamically unfavorable, but also metabolically unfavorable for hydrogen production. The relatively high levels of lactate, propionate, or formate observed at pH 7 reflect presumably the high enzymatic activities responsible for their production, together with the low hydrogenase activity, resulting in a low hydrogen production. A correlation analysis of the data from present and previous studies on biohydrogen production with pure Clostridium cultures and mixed microflora indicates a close relation between the hydrogen yield (YH₂) and the (YH₂)/(2(YHAc+YHBu)) ratio, with the observed correlation coefficient (0.787) higher than that (0.175) between YH₂ and the molar ratio of butyrate to acetate (B/A). Based on the (YH₂)/(2(YHAc+YHBu)) ratios observed at different pHs, a control of pH at 5.5-6.8 would seem to be an effective means to enhance the fermentative biohydrogen production.