fax 01-972-952-9435. Abstract DescriptionShell Global Solutions International B.V ("Shell") 1 has been involved for many years in the development of new technologies to separate CO 2 and H 2 S from highly contaminated natural gas streams. This program has been significantly accelerated in recent years and major milestones have been achieved. The program focuses on technology solutions that are critical to develop (stranded) contaminated hydrocarbon gas and oil fields.

This paper presents the results of a study to evaluate the feasibility of deploying fuel cells in hydrocarbon producing facilities. For the majority of hydrocarbon production facilities, electric power is generated on-site, most often, by the combustion of some of the produced hydrocarbons. To optimize its performance, Shell is continuously looking at applying new technologies, which can increase the availability of her production facilities and/or reduced lifecycle costs and/or improve safety and environmental performance. Shell has identified fuel cell technology as being capable of delivering some of these benefits because of its potential to achieve high availability, reliability and fuel efficiency when compared to conventional technologies. An inventory has been made of the specific design specifications and the state-of-the-art of commercially available fuel cell systems. Most of the required capacities fall in the range of 1kW to 1 MW, which is compatible with state of the art fuel cell developments or it can be achieved in the near future. A software-screening tool has been constructed to evaluate the various options with respect to conventional technologies. The specific design specifications can vary from production site to site, but in general availability and low maintenance are two of the main criteria to be considered and most favorable for fuel cells. Depending on the specific requirements for a particular hydrocarbon production facility a polymer fuel cell, MCFC or SOFC system are considered suitable alternatives to conventional technology. The screening tool has been applied and evaluated in a case study of one of the unmanned production facilities of Shell. A 20 kW SOFC system was found to score higher than a commercially available gas engine of 25 kW on eight of the most important of several criteria. However, SOFC system lifecycle costs are still 15 to 20% higher due to the development costs needed for this 'prototype' SOFC system to make it suitable for use in hydrocarbon producing facility. When applied in more surface production facilities the SOFC system also becomes costs competitive with conventional technologies.

The Royal Dutch Shell Group (Shell)[1] was one of the first energy companies to acknowledge the threat of climate change - to call for action by governments; our industry and energy users; and to take action ourselves. Shell's strategy: to expand our alternative energies portfolio, while investing in advanced CO2 solutions in order to improve our ability to manage emissions from our hydrocarbon business. Measures to manage future emissions will include developing new technologies to capture and store CO2 underground. The pursuit of Carbon Capture and Storage (CCS) technologies allows Shell to play an important and leading role towards addressing the need for an increasing worldwide demand for energy, while at the same time dealing with the need to reduce global emissions. No single universal policy or technology will solve the CO2 challenge. Therefore, various CCS solutions will need to be considered within a portfolio of measures to reduce global CO2 emissions while assisting a transition towards a low-carbon energy future. Shell seeks to position itself as part of the solution to the climate change issue. The United Nations Intergovernmental Panel on Climate Change (IPCC) has identified CO2 capture and storage (CCS) as the most promising for the rapid reduction of global emissions - by up to 55% by 2100[2]. As the bridge to a more sustainable energy system, it is therefore a key solution for combating climate change - among a portfolio of solutions, including renewable energies, energy efficiency and biofuels In order to achieve deeper reductions in CO2 emissions there will need to be new technologies brought to the market to enable a 'Kyoto 2' type-agreement. Authorities such as the International Energy Agency, the European Union Commission for Research and the US Department of Energy predict that new technologies will include hydrogen fuels cells, clean coal technology, and storage of CO2 below ground - in deep saline formations or redundant reservoirs, or for enhanced oil recovery. Considerable attention is being focused on CO2 storage with the desire to reduce the cost of capture and storage below 25 $/t CO2. Shell has a special team working on the CO2 Capture Project (CCP) Joint Industry Project. For the CCP Shell carries out studies, manages projects and the team is involved evaluating opportunities for deployment of the technologies within Shell. Shell also provides the Vice Chairman for this initiative and has several key-players working on this project. CCP is an international collaboration among industry, governments, academics and environmental interest groups focused on developing technology for CO2 capture and geological storage. The CO2 Capture Team (CCT) conducts Shell's participation in the CO2 Capture Project (CCP) and other external programs. CCT also works internally to apply external learnings and technologies within Shell businesses. Additionally, Shell's research and development funds and manages a separate CO2 storage program. Our goals are to:reduce the cost of capture by 60 to 80%, anddemonstrate that geological storage can be secure.

No abstract

TX 75083-3836, U.S.A., fax 01-972-952-9435.