Off-grid Power Solution to Eliminate Pneumatic Methane Emissions
Approved for funding in ERA’s Natural Gas Challenge in 2020, Convrg Innovations (formerly Westgen) created the Engineered Power on Demand (EPOD) system, which supplies high pressure air to remote wellsite pneumatic devices and serves as an alternate solution to natural gas. By project completion in 2023, development of the EPOD and the smaller “EPOD mini” advanced the technology to commercial availability, reducing methane emissions on oil and gas well sites across the province.
Pneumatic devices, used to produce energy from natural gas in the oil and gas industry, are estimated to be the largest source of methane emissions in Alberta. Convrg Innovations developed the EPOD system, a micro-grid solution that provides compressed air to oilfield locations in place of gas-emitting pneumatics, and thus eliminates methane emissions venting that comes from pneumatic devices. With 6-, 20-, or 35-kilowatt power generation, the EPOD is a fit-for-purpose instrument air solution for both new and retrofitting legacy well sites within the oil and gas industry. The technology addresses power generation challenges and compressed air delivery at off-grid sites by utilizing a low-cost industrial reciprocating internal combustion engine. By replacing natural gas or propane to power remote sites and pressurize on-site pneumatic systems, the technology aims to reduce emissions over 95 per cent.
Successful Commercialization Despite High Initial Costs
The project developed, installed, and commissioned 12 EPOD units over three locations, with a significant portion of EPOD components sourced from Alberta-based firms. Demonstration of the EPOD technology addressed several uncertainties, such as power quality issues, which helped to successfully create, derisk, and deploy the technology. The project saw design improvements to the mechanical design, electrical design, and programming, contributing to the resulting operational uptime of over 99%. Continuous improvement and refinement of the deployed EPOD units enabled the technology to reach commercial availability, although manufacturing costs were higher than anticipated. Engagement with regulatory frameworks is required to maintain market growth.
What’s next?
By early 2024, Convrg sold and deployed over 550 units in Canada and the US, over half of which are the EPOD mini, seeing commercial success deploying units on new wells and retrofitting legacy wellsites where economical. Legacy wellsite retrofits have more challenging conditions to be economical without the capital influx of a new build, they have lower air and pneumatic demand, and in part due to regulations moving first to low bleed, then zero bleed well pads – i.e. a staged approach to methane reduction, whereas this is a zero-emissions alternative. Zero bleed retrofits of controllers and pneumatic pumps are eligible for carbon credits; however, zero bleed is not required by regulation as of now. Because there is marginal venting change to go from low to zero bleed, there is minimal economic incentive, combined with no regulatory requirement, to retrofit low bleed with zero bleed equipment, such as the EPOD system. Currently, situations where facilities move from high to zero bleed see positive economic results utilizing carbon credits. Going forward, a smaller version of the EPOD will need to be designed for applications that first moved to low bleed and smaller legacy sites that are marginally economic.