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Evaluating the role of cogeneration for carbon management in Alberta

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  • Doluweera, G.H.
  • Jordaan, S.M.
  • Moore, M.C.
  • Keith, D.W.
  • Bergerson, J.A.

Abstract

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 CO2 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 CO2 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.

Suggested Citation

  • Doluweera, G.H. & Jordaan, S.M. & Moore, M.C. & Keith, D.W. & Bergerson, J.A., 2011. "Evaluating the role of cogeneration for carbon management in Alberta," Energy Policy, Elsevier, vol. 39(12), pages 7963-7974.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:12:p:7963-7974
    DOI: 10.1016/j.enpol.2011.09.051
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    References listed on IDEAS

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    1. Bo P. Weidema & Jannick H. Schmidt, 2010. "Avoiding Allocation in Life Cycle Assessment Revisited," Journal of Industrial Ecology, Yale University, vol. 14(2), pages 192-195, March.
    2. Sangwon Suh & Bo Weidema & Jannick Hoejrup Schmidt & Reinout Heijungs, 2010. "Generalized Make and Use Framework for Allocation in Life Cycle Assessment," Journal of Industrial Ecology, Yale University, vol. 14(2), pages 335-353, March.
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    1. Beretta, Gian Paolo & Iora, Paolo & Ghoniem, Ahmed F., 2012. "Novel approach for fair allocation of primary energy consumption among cogenerated energy-intensive products based on the actual local area production scenario," Energy, Elsevier, vol. 44(1), pages 1107-1120.
    2. Rui Xing & Diego V. Chiappori & Evan J. Arbuckle & Matthew T. Binsted & Evan G. R. Davies, 2021. "Canadian Oil Sands Extraction and Upgrading: A Synthesis of the Data on Energy Consumption, CO 2 Emissions, and Supply Costs," Energies, MDPI, vol. 14(19), pages 1-14, October.
    3. Rahman, Md. Mustafizur & Canter, Christina & Kumar, Amit, 2015. "Well-to-wheel life cycle assessment of transportation fuels derived from different North American conventional crudes," Applied Energy, Elsevier, vol. 156(C), pages 159-173.
    4. Ouellette, A. & Rowe, A. & Sopinka, A. & Wild, P., 2014. "Achieving emissions reduction through oil sands cogeneration in Alberta’s deregulated electricity market," Energy Policy, Elsevier, vol. 71(C), pages 13-21.
    5. Nimana, Balwinder & Canter, Christina & Kumar, Amit, 2015. "Energy consumption and greenhouse gas emissions in the recovery and extraction of crude bitumen from Canada’s oil sands," Applied Energy, Elsevier, vol. 143(C), pages 189-199.
    6. Michel Feidt & Monica Costea, 2012. "Energy and Exergy Analysis and Optimization of Combined Heat and Power Systems. Comparison of Various Systems," Energies, MDPI, vol. 5(9), pages 1-22, September.

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