1. November 17, 2015 Applications of Produced Water in Biodiesel Production and Distribution Soumya Yadala, Selen Cremaschi, PhD The University of Tulsa 2015 International Petroleum Environmental Conference Denver, CO November 17-19, 2015

2. 2 Presentation outline Soumya Yadala, Selen Cremaschi 2015 IPEC Algae based-Biodiesel Biodiesel Production Results Mathematical Modeling Future directions Research Objective Questions? 1 2 3 4 5 6 7

3. 3 Motivation – Produced water Soumya Yadala, Selen Cremaschi 2015 IPEC  Salty water trapped in the reservoir rock and brought up along with oil or gas during production  It can contain very minor amounts of chemicals, oil, and metals  These waters exist under high pressures and temperatures  Scientists recently were successful in conducting the first pilot-scale test of algae growth using water from an oil-production well in Jal, New Mexico  However, these large quantities of saline water have great potential value for algal biofuel production  Every year in the United States about 800 billion gallons of produced water is brought to the surface along with oil and gas and about 98% of this water is routinely disposed as a waste product Introduction Methodology Results Conclusion Objectives

4. 4 Advantages Soumya Yadala, Selen Cremaschi 2015 IPEC Higher oil yield Algae biofuel Grown on non-arable land and using produced water No sulfur, non-toxic & biodegradable Food vs. fuel Higher growth rates & productivities CO 2 capture Introduction Methodology Results Conclusion Objectives

5. 5 Soumya Yadala, Selen Cremaschi 2015 IPEC Challenges Algae biofuel High capital, operating & production costs Difficulty in scaling up Variety of algae strains Lack of optimal design of cultivation systems Relatively new technology Introduction Methodology Results Conclusion Objectives

6. 6 Biodiesel Production Soumya Yadala, Selen Cremaschi 2015 IPEC Selection of Algae Species Selection of Location Algae Cultivation Harvesting Drying Extraction Varying oil content and specific growth rates Influences climatic conditions and sunlight Introduction Methodology Results Conclusion Objectives Transesterification

7. 7 Research Objective Soumya Yadala, Selen Cremaschi 2015 IPEC Methodology Results Conclusion Objectives Introduction

8. 8 Optimization Soumya Yadala, Selen Cremaschi 2015 IPEC Optimization focuses on finding the best solution from a set of available alternatives subject to constraints. Alternatives Alternatives Objective Function Objective Function Decision Variables Constraints Optimization Results Conclusion Methodology Introduction Objectives Objective function To minimize the production, operating and transportation costs of biodiesel  Optimal algae cultivation systems  Reliable supply chain network flow topology of production and distribution centers Alternatives  Algae Species – I. galbana  Cultivation Units – Raceway Ponds  Geographical Locations – USA  Routes  Means of Transportation – Trucks, Rails, Barges, and Pipelines

9. 9 Alternatives - Locations Soumya Yadala, Selen Cremaschi 2015 IPEC Results Conclusion Methodology Introduction Objectives Supply Texas Mississippi Alabama Kentucky Georgia Oklahoma Virginia Arizona North Carolina South Carolina Port Houston Gulf of Mississippi Mobile Paducah Savannah Tulsa Norfolk Phoenix Wilmington Charleston Extraction Houston Gulf of Mississippi Mobile Paducah Savannah Tulsa Norfolk Phoenix Wilmington Charleston Houston Los Angeles Philadelphia Chicago Toledo Transesterification Houston Gulf of Mississippi Mobile Paducah Savannah Tulsa Norfolk Phoenix Wilmington Charleston Houston Los Angeles Philadelphia Chicago Toledo Demand Houston Los Angeles Philadelphia Chicago Toledo

10. 10 Alternatives – Means of Transportation Soumya Yadala, Selen Cremaschi 2015 IPEC Results Conclusion Methodology Introduction Objectives

11. 11 Alternatives - Routes Soumya Yadala, Selen Cremaschi 2015 IPEC Results Conclusion Methodology Introduction Objectives Supply Port Extraction Transeste rification Demand

12. 12 Decision Variables Soumya Yadala, Selen Cremaschi 2015 IPEC Alternatives Alternatives Objective Function Objective Function Decision Variables Decision Variables Constraints Optimization Results Conclusion Methodology Introduction Objectives Demand DAProduced(Sloc), N Pond (Sloc), TSA pond (Sloc) Supply Port DATransported(Ploc) DAAvailable(Ploc) Extraction DATransported(Eloc) AOProduced(Eloc) Transesterification AOTransported(Tloc) BDProduced(Tloc) Transport Truck (Sloc,Ploc), N Truck (Sloc,Ploc) Transport Truck,Rail,Barge (Ploc,Eloc), N Truck,Rail,Barge (Ploc,Eloc) Transport Truck,Rail,Barge (Eloc,Tloc), N Truck,Rail,Barge (Eloc,Tloc) Transport Truck,Rail,Barge,Pipeline (Tloc,Dloc), N Truck,Rail,Barge,Pipeline (Tloc,Dloc)

13. 13 Objective Function Alternatives Alternatives Objective Function Objective Function Decision Variables Decision Variables Constraints Constraints Optimization Min Soumya Yadala, Selen Cremaschi 2015 IPEC Results Conclusion Methodology Introduction Objectives Capital Costs Operating Costs

14. 14 Constraints Alternatives Alternatives Objective Function Objective Function Decision Variables Decision Variables Constraints Constraints Optimization Results Conclusion Methodology Introduction Objectives DAProduced (Sloc), N Pond (Sloc) Supply Transport Truck (Sloc,Ploc) Port DATransported (Ploc) DAAvailable (Ploc) Transport Truck,Rail,Barge (Ploc,Eloc) Soumya Yadala, Selen Cremaschi 2015 IPEC

15. 15 Constraints Alternatives Alternatives Objective Function Objective Function Decision Variables Decision Variables Constraints Constraints Optimization Results Conclusion Methodology Introduction Objectives Extraction DATransported(Eloc) AOProduced(Eloc) Transport Truck,Rail,Barge (Eloc,Tloc) Transesterification AOTransported(Tloc) BDProduced(Tloc) Transport Truck,Rail,Barge,Pipeline (Tloc,Dloc) Soumya Yadala, Selen Cremaschi 2015 IPEC

16. 16 Constraints Alternatives Alternatives Objective Function Objective Function Decision Variables Decision Variables Constraints Constraints Optimization Results Conclusion Methodology Introduction Objectives Soumya Yadala, Selen Cremaschi 2015 IPEC Transesterification AOTransported(Tloc) BDProduced(Tloc) Transport Truck,Rail,Barge,Pipeline (Tloc,Dloc) Alternatives Objective Function Decision Variables Constraints Optimization GAMS (General Algebraic Modeling System) BARON

17. 17 Results Soumya Yadala, Selen Cremaschi 2015 IPEC Conclusion Introduction Objectives Methodology Results Supply Port Extraction Transeste rification Demand Texas Mississippi Alabama Kentucky Georgia Houston Gulf of MS Mobile Savannah Houston Mobile Savannah Houston Los Angeles Philadelphia Chicago Toledo Gulf of MS Houston Philadelphia

18. 18 Results Soumya Yadala, Selen Cremaschi 2015 IPEC Conclusion Introduction Objectives Methodology Results Raceway Pond Dimensions = Channel Depth = 1 m Pond width = 3.5 m Pond length = 300 m Pond width = 3.5 m Pond length = 300 m

19. 19 Results Soumya Yadala, Selen Cremaschi 2015 IPEC Conclusion Introduction Objectives Methodology Results Supply Texas Mississippi Alabama Georgia x x x x 8.5000E6 8.5200E6 8.8200E6 1.0665E7 = 8.5000E5 ha = 8.5200E5 ha = 8.8200E5 ha = 1.0665E6 ha N Pond (Sloc) N Truck (Sloc,Ploc) 3.7686E5 7.5971E6 3.5821E5 4.3563E5

20. 20 Conclusions Soumya Yadala, Selen Cremaschi 2015 IPEC  Model the dynamic behavior of algae biomass cultivation using HYSYS simulation software  Model the network flow topology of algae oil distribution in the United states Future directions  A mathematical framework is developed to estimate the best combination of algae species, geographical location, and raceway pond geometry by combining experimentally validated temperature, irradiance, and algae growth models with optimization Methodology Results Conclusion Introduction Objectives

21. 21 Acknowledgement Soumya Yadala, Selen Cremaschi 2015 IPEC  Department of Chemical Engineering, The University of Tulsa  TUPSE Research Group Methodology Results Conclusion Introduction Objectives  IPEC

22. November17, 2015 Soumya Yadala, Selen Cremaschi 2015 IPEC THANK YOU Questions???