The California Global Warming Solutions Act of 2006 sets a goal for the state to reduce its greenhouse gas emissions to 1990 levels by 2020. In preparation for implementation of a cap and trade program under this Act, Chevron has undertaken a detailed assessment of greenhouse gas mitigation options and costs. Such an assessment is key to making compliance decisions within the constraints of a given cap and trade regime. If the cap and trade market is minimally restricted (i.e., recognizes that climate change is a global issue and thus has no geographic restrictions and no set requirement for onsite emission reductions), facilities can make the best economic (and environmental) choices of where to 'make' emission reductions inside the facility fenceline and when to 'buy' the emission reduction allowances or credits on the market. The scope of the study included Chevron's two refineries and a large heavy oil steamflood production operation in California. This paper will discuss how mitigation technologies are identified and assessed, describe some of the key greenhouse gas mitigation alternatives of interest to the Chevron California facilities and present a business-based approach to analyzing mitigation costs. Technologies studied included energy efficiency, advanced energy (solar, wind, geothermal, biomass, nuclear, low temperature heat recovery) and carbon dioxide capture and storage (CCS). For each mitigation option, a consistent methodology, based on the International Petroleum Industry Environmental Conservation Association/American Petroleum Institute (IPIECA/API) Guidelines for Evaluation of Greenhouse Gas Emission Reduction Projects was used to assess baseline or 'business as usual' emissions, net emission reductions due to the project, capital cost, operating cost and any project benefits (e.g., reduced fuel use for energy efficiency projects). These values were then entered into a business evaluation tool to calculate a Net Present Value for each option. © 2011 Published by Elsevier Ltd.
Nordrum, S., Lieberman, D., Colombo, M., Gorski, A., & Webb, C. (2011). Assessment of greenhouse gas mitigation options and costs for California Petroleum Industry Facilities: The shape of things to come. In Energy Procedia (Vol. 4, pp. 5729–5737). Elsevier Ltd. https://doi.org/10.1016/j.egypro.2011.02.568