Legislature(2023 - 2024)BARNES 124

03/05/2024 10:15 AM House ENERGY

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Audio Topic
10:16:07 AM Start
10:17:43 AM Presentation(s): Cook Inlet Region Low Carbon Power Generation with Carbon Capture, Transport, and Storage Feasibility Study
11:36:40 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Cook Inlet Region Low Carbon Power TELECONFERENCED
Generation With Carbon Capture, Transport, and
Storage Feasibility Study by Frank Paskvan,
Institute of Northern Engineering, University of
Alaska Fairbanks
+= HB 368 ELECTRICAL ENERGY & ENERGY PORTFOLIO STDS TELECONFERENCED
Scheduled but Not Heard
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE SPECIAL COMMITTEE ON ENERGY                                                                              
                         March 5, 2024                                                                                          
                           10:16 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative George Rauscher, Chair                                                                                           
Representative Tom McKay                                                                                                        
Representative Stanley Wright                                                                                                   
Representative Mike Prax                                                                                                        
Representative Jennie Armstrong                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Thomas Baker                                                                                                     
Representative Calvin Schrage                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  Cook Inlet Region Low Carbon Power Generation                                                                 
with Carbon Capture, Transport, and Storage Feasibility Study                                                                   
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous committee action to record                                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
FRANK PASKVAN, Affiliate Professor                                                                                              
Institute of Northern Engineering                                                                                               
University of Alaska Fairbanks                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Gave the presentation, titled "Cook Inlet                                                                
Region Low Carbon Power Generation with Carbon Capture,                                                                         
Transport, and Storage Feasibility Study."                                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
10:16:07 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER called the House Special Committee on Energy                                                                     
meeting to order at 10:16  a.m.  Representatives Rauscher, McKay,                                                               
Prax, Wright, and Armstrong were present at the call to order.                                                                  
                                                                                                                                
^PRESENTATION(S):  Cook Inlet Region Low Carbon Power Generation                                                                
with Carbon Capture, Transport, and Storage Feasibility Study                                                                   
PRESENTATION(S):  Cook Inlet Region Low Carbon Power Generation                                                             
 with Carbon Capture, Transport, and Storage Feasibility Study                                                              
                                                                                                                                
10:17:43 AM                                                                                                                   
                                                                                                                                
CHAIR RAUSCHER  announced that the  only order of  business would                                                               
be a  presentation, titled  "Cook Inlet  Region Low  Carbon Power                                                               
Generation   with   Carbon   Capture,  Transport,   and   Storage                                                               
Feasibility Study."                                                                                                             
                                                                                                                                
10:19:04 AM                                                                                                                   
                                                                                                                                
FRANK  PASKVAN,   Associate  Professor,  Institute   of  Northern                                                               
Engineering,   University   of   Alaska   Fairbanks,   gave   the                                                               
presentation,  titled   "Cook  Inlet  Region  Low   Carbon  Power                                                               
Generation   with   Carbon   Capture,  Transport,   and   Storage                                                               
Feasibility Study."   He began on slide 2, which  gave context as                                                               
to what the Carbon Capture Use  and Storage (CCUS) project at the                                                               
University of Alaska Fairbanks (UAF) is and its history.                                                                        
                                                                                                                                
10:26:17 AM                                                                                                                   
                                                                                                                                
MR. PASKVAN continued to slide  3, which displayed a graphic that                                                               
showed  how carbon  capture and  storage (CCS)  is performed  and                                                               
detailed how the  carbon dioxide would be transported  to a place                                                               
and stored.   He moved to  slide 4, which displayed  a graph that                                                               
outlined  sources of  energy along  with their  associated carbon                                                               
emissions and  explained how CCUS  addresses both  the increasing                                                               
energy  needs of  a growing  world  and the  problems of  climate                                                               
change simultaneously.                                                                                                          
                                                                                                                                
10:33:01 AM                                                                                                                   
                                                                                                                                
MR. PASKVAN responded to questions  from Chair Rauscher.  He said                                                               
the difference  between an  older natural gas  plant and  a newer                                                               
one, in the  same category of energy and emissions,  would be the                                                               
efficiency.  As  to whether the combined use of  wind and natural                                                               
gas for energy  generation was equivalent in  carbon emissions to                                                               
other carbon-based energy  sources, he said that  it would depend                                                               
on how  often there is  wind energy  blowing at a  certain plant.                                                               
In response to  Representative McKay as to whether  NOx2 and SOx2                                                               
proteins could be removed from  emissions caused by a natural gas                                                               
treatment plant, he explained that  proposed natural gas pipeline                                                               
would  primarily emit  methane and  clarified how  a natural  gas                                                               
treatment plant functions.                                                                                                      
                                                                                                                                
10:40:24 AM                                                                                                                   
                                                                                                                                
MR. PASKVAN resumed the presentation  on slide 5, which displayed                                                               
a graph that  compared different types of fuels  along with their                                                               
associated  cost and  detailed  the  associated carbon  emissions                                                               
with each type  of fuel.  In response to  Chair Rauscher, he used                                                               
decomposition as an example of  how net-negative carbon emissions                                                               
could be achieved.   In response to Representative  Prax, he said                                                               
is has  heard of  but is unfamiliar  with compressed  wood pellet                                                               
fuel, and he confirmed that biomass eventually turns into coal.                                                                 
                                                                                                                                
10:49:43 AM                                                                                                                   
                                                                                                                                
MR. PASKVAN resumed the presentation  on slide 6, which displayed                                                               
a graph that outlined the  cost of carbon capture against current                                                               
natural gas  prices and clean  energy tax  credits.  It  had text                                                               
that further compared the cost of  carbon capture to the price of                                                               
fuel itself.   In response to Chair Rauscher, he  deferred to the                                                               
federal government as the best  source to answer a question about                                                               
how much money the  State of Alaska lost as a  result of the "45q                                                               
tax credit."  He then resumed  the presentation on slide 7, which                                                               
highlighted  the  findings of  the  CCUS  technical and  economic                                                               
feasibility study  completed by  UAF.  He  continued to  slide 8,                                                               
which  further elaborated  on the  results of  the aforementioned                                                               
CCUS  study  and  compared  the costs  of  electricity  with  and                                                               
without CCUS per Megawatt Hour (MWh).                                                                                           
                                                                                                                                
11:11:18 AM                                                                                                                   
                                                                                                                                
MR. PASKVAN, in response to  a question from Representative McKay                                                               
as to  whether the  CCUS industry could  survive without  the 45q                                                               
tax credits  from the federal  government, replied that  the cost                                                               
of carbon  capture is $65 dollar  per ton and explained  how that                                                               
cost estimate roughly equates to the cost of a new gas plant.                                                                   
                                                                                                                                
REPRESENTATIVE MCKAY shared  his belief that climate  change is a                                                               
hoax and  said that there is  nothing that humans can  do even if                                                               
they understood that there was a  climate crisis.  He spoke up in                                                               
strong support of coal-fired power  plants, gas power plants, and                                                               
a  liquified  natural  gas (LNG)  pipeline  to  the  Southcentral                                                               
Region of Alaska.                                                                                                               
                                                                                                                                
11:18:42 AM                                                                                                                   
                                                                                                                                
MR.  PASKVAN,  in response  to  Chair  Prax, confirmed  that  the                                                               
capital cost  of the different  options for energy  generation is                                                               
included in the presentation and  emphasized that the numbers are                                                               
all estimate figures.  He  then resumed the presentation on slide                                                               
8, where  he further elaborated  on the cost  differences between                                                               
certain  sources of  energy generation.    He moved  to slide  9,                                                               
which displayed a  map of proposed low-carbon  biomass coal power                                                               
projects and explained the logistics  of each individual proposed                                                               
project location.                                                                                                               
                                                                                                                                
11:28:06 AM                                                                                                                   
                                                                                                                                
MR.  PASKVAN  concluded  the  presentation  on  slide  10,  which                                                               
outlined a  series of recommended  actions that the  Alaska State                                                               
Legislature could  take to bring the  proposed low-carbon biomass                                                               
coal power  plants to life in  Alaska.  He thanked  the committee                                                               
for its time and offered to answer questions.                                                                                   
                                                                                                                                
11:34:46 AM                                                                                                                   
                                                                                                                                
CHAIR  RAUSCHER  asked if  private  investors  are interested  in                                                               
developing the low-carbon biomass coal power plants in Alaska.                                                                  
                                                                                                                                
MR.  PASKVAN  said  that  there  is  great  general  interest  in                                                               
developing clean energy all over the country right now.                                                                         
                                                                                                                                
11:35:18 AM                                                                                                                   
                                                                                                                                
CHAIR  RAUSCHER  thanked Mr.  Paskvan  for  his presentation  and                                                               
delivered committee announcements.                                                                                              
                                                                                                                                
11:36:40 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee on Energy meeting was adjourned at 11:36 a.m.                                                                 

Document Name Date/Time Subjects
Cook Inlet Low Carbon Power Feasibility Study-UAF-PCOR.FINAL.pdf HENE 3/5/2024 10:15:00 AM
CCUS
House Energy 3.5.24 Presentation.pdf HENE 3/5/2024 10:15:00 AM
CCUS