1. business and industrial
2. energy
3. natural gas

COVER SHEET FOR PROPOSAL TO THE NATIONAL SCIENCE FOUNDATION
DATE RECEIVED
AWARDEE ORGANIZATION CODE
4/28/2006
1500554983
NAME OF ORGANIZATION TO WHICH AWARD SHOULD BE MADE
DEEP OCEAN ENERGY SYSTEMS (DOES)
FOR NSF USE ONLY
ADRESS OF AWARDEE ORGANIZATION
NSF PROPOSAL NUMBER
150 W UNIVERSITY BLVD
MELBOURNE, FL
32901
TITLE OF PROPOSED PROJECT
METHANE HYDRATE RECOVERY
REQUESTED AMOUNT
PROPOSED DURATION
$359,000,000
83 months
NAMES
High Degree
Yr of Degree
Telephone Number
PI/PD
2002
321-674-8096
Eduardo Gonzalez Ph.D
CO-PI/PD
MS
2002
542-654-6515
Maila Sepri
CO-PI/PD
MS
2002
515-651-6518
Hunter Brown
CO-PI/PD
MS
2005
611-651-1654
Michelle Rees
CO-PI/PD
Ph.D
2003
941-615-6515
Zak Pfeiffer
CO-PI/PD
MS
2004
519-541-4762
Adam Outlaw
0700015
REQUESTED STARTING DATE
6/1/2007
Electronic Mail Address
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
PROJECT SUMMARY
The proposed project consists of research, design, construction, trial period and a
22-year operation life of a system for recovering methane from hydrate deposits located
on the ocean floor, under approximately 3000 meters of water. The purpose of mining
methane hydrates is to obtain an economically viable, environmentally friendly, and safe
energy source as an alternative to fossil fuels. An overall design is presented, and
fundamental details of individual components of the system are given, along with a
timeline for developing and installing the system. The methane hydrates deposit and
proposed location of the facility is located 270 km southwest of the Port of Morehead
City in North Carolina. The Port of Morehead is equipped with optimal depth channels
and large turning basins, and it has a small tidal range, making it an operationally safe
port. The port infrastructure can handle break-bulk and bulk cargo with access to
Interstates 95 and 40 via U.S. Highways 70 and 17 and daily train service from Norfolk
Southern. A 600 m long LNG tanker can travel between the port and methane recovery
facility in approximately 2 hours. The 6th generation Aker H-6e semi-submersible, selfpowered rig was selected for surface structure and a variety of small support ships will
serve as crew transportation and supply replenishment. The methane recovery system
piping will be made of composite pipes and will be powered by Caterpillar diesel engines
and Triplex pumps. Throughout the extensive pipe system, there will be an expansion
chamber and a processing facility to simplify operation at the semi-submersible rig. The
processing facility will be a deployed using an InterOcean System. Within the facility,
there will be compartments for two drill crawlers with the necessary drilling equipment,
two cable spools, one auxiliary ROV, the methane processing plant and the electronics,
sensors and control systems required to maintain an optimal and safe underwater
operation. The crawlers will work in conjunction with the processing facility to transfer
filtered methane to the semi-submersible rig. These will be responsible for accessing the
methane reserve and maintaining its stability. To do so, various sensors onboard will
monitor the flow of methane through the drill risers and connecting pipes. The control
system will be implemented by computers and programmable logic controllers (PLCs),
which monitor valve states, fluid levels, and pipe pressures, open and close valves,
trigger alarms, or releases pressures. The controllers are part of the Supervisory Control
and Data Acquisition (SCADA) system. The SCADA system allows the crawlers to
operate autonomously while reporting to a host computer, which in turn provides an
operator interface to the system as a whole. The proposed facility would have a
maximum extraction rate of 6,585,158 m3/day, which corresponds to an estimated profit
of 16.06 billion dollars a year. The entire operation, will use 110 staff members at all
time, costing approximately $7.7 million in labor cost and the operational cost will
approximate $365 million a year. A total profit operation profit of $15.69 billion is
expected in one year.
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TABLE OF CONTENTS
I. Project Description……………………………………………………… 3
i. Results from Prior NSF Support………………………………… 3
ii. Introduction…………………………………………………….. 3
iii. Project Plan……………………………………………………. 6
iv. Management Plan……………………………………………… 12
v. Evaluation/Assessment Plan……………………………………. 13
vi. Dissemination………………………………………………….. 14
vii. Summary………………………………………………………. 14
II. References Cited…………………………………………………........... 15
III. Biographical Sketches…………………………………………………. 16
III. Budget………………………………………………………………….. 18
i. Budget Justification……………………………………………… 20
IV. Current and Pending Support………………………………………….. 20
V. Facilities, Equipment & Other Resources……………………………….21
VI. Special Info & Supplementary Documentation……………………….. 21
VII. Appendices……………………………………………………………. 22
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I. PROJECT DESCRIPTION
i. Results from Prior NSF Support
Not applicable.
ii. Introduction
Fossil Fuel Projections
As society becomes increasingly technological and mobile, the world’s demand
for electrical power and fuel is growing at an increasing rate. Worldwide oil production
is projected to escalate over the next decade to meet this demand, but unless planning is
begun now we will face declining energy availability as reserves diminish and/or demand
exceeds the production growth rate. Furthermore, the decrease in continental reserves
has shifted focus toward deepwater drilling, meaning that accessing even proven reserves
is becoming an increasingly challenging process. It is therefore integral for the US,
which consumes over a quarter of the world’s oil, to develop an alternative to its oil
dependence.
Methane Availability and Potential Power
Among the most promising alternatives to oil is methane. The environmental and
practical benefits of using methane explain its appeal: it releases less CO2 upon
combustion than any other hydrocarbon and does not produce atmospheric particles.
Although it can cause suffocation when inhaled in great concentrations, methane itself is
nontoxic. Conveniently, existing engines can be modified to use methane as a fuel source
(Arai 2), and methane is stable in storage. Perhaps the most important factor is that
methane exists in large quantities beneath the oceanic shelves that surround each
continent. According to a 1993 U.S. Geological Survey (USGS) report, 2830 to
7,645,550 trillion m3 of gas exist worldwide (Maynard 28, “Methane Hydrate”). Between
3200 and 19,140 trillion m3 of this is estimated to be in the US, with the mean
approximate being 9060 trillion m3. This is compared to the estimated volume of US
natural gas reserves: less than 31 trillion m3 (“Resources”). Since natural gas is
composed primarily of methane, the heating value of the gas in hydrates is even greater
than that of natural gas, and thus a direct volumetric comparison yields a conservative
energy capacity estimate for methane. As such, one cubic meter of commercial quality
natural gas combusts to yield 10.6 kWh. Using the mean volume estimate, the US should
be able to supply itself with 97 trillion MWh using methane hydrate reserves.
Blake Ridge Statistics
The target mining field is Blake Ridge, a hydrate reservoir located on the
continental margin about 400 km off the coast of South Carolina, USA. The field covers
approximately 450 km long and 100 km wide, and the center of its largest pockets has
coordinates 32.75°N 75.82°W. These hydrate stability zone occurs between 2000 and
4800m of depth and are covered by 200 to 750 m of sediment (Flemings 1057). The
field’s location on the edge of the continental shelf imparts a 0.5° to 4° grade to the
silty/sandy sea floor. Blake Ridge is also located on the edge of the Gulf Stream and
therefore experiences 10C-27C temperatures and currents that may exceed 1 m/s. Typical wind
speeds range between 5.1 and 20.5 m/s, while waves vary from 1.22 to 6.71 m. These
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values can escalate drastically in the event that an Atlantic hurricane passes through the
region.
Overall, the field is estimated to contain between 37 trillion (Dillon) and 85 trillion cubic
meters (Dickens 428) of hydrates distributed in 3 main pockets. In addition to solid hydrates,
a large portion of the methane is expected to be trapped in free gas form below the solids.
Although the entire subterranean field has not yet been mapped extensively, the Ocean
Drilling Program recorded a 29-m thick interconnected free gas column directly below
the hydrate stability zone at one of its sites (Flemings 1057). Cyclical burial and
dissociation with recapture beneath the very low-permeability hydrates is the proposed
reason behind the presence of this free gas. Flemings et al. conclude that this gas column
has nearly equal pressure across large regions (1059). It is the presence of this free gas,
as well as its contact with methane in the hydrate form, that motivates the design behind
this system.
Challenges to Methane Hydrate Recovery
One reason that methane hydrates have not already been developed as an alternate
fuel source is that information on their properties is limited and complicated to research.
Of major concern is the dissociation process that occurs when hydrates are exposed to
temperatures above or pressures below their stability zone. Oil rigs’ drilling through
hydrates has caused submarine explosions and landslides as pockets of methane burst to
the surface. The National Energy Technology Laboratory is sponsoring development of
sonar, seismic, geothermal, geochemical, and visual survey techniques for locating
reserves. Recent advances in laboratory production of hydrates are also shedding light on
their physical properties. This research has contributed to better phase diagram
determination, and with continued investigation some of the very properties that make
hydrates precarious can be utilized advantageously.
Other challenges to hydrate recovery stem from the logistics of their location.
Besides being buried at depths and pressures greater than are currently typical for
continuous oil operations, the approximately 5° slope of the shelf and frequency of
hurricanes in the Blake Ridge vicinity add further risk to operations. Hydrates must be
safely transported 270 km to shore, and plans for shifting the entire rig efficiently should
be made for site changes and in case evacuation becomes mandatory.
Precedents
The trend in oil drilling is turning toward deepwater reserves, and current projects
include drilling at depths up to 2000m (Barnes 50). Accidental hydrate penetration
shows that this “deepwater” realm already includes hydrate-rich zones. Oil companies are
currently developing technology to deal with these depth challenges, so a few hardware
components are already available for use in hydrate mining designs. Since oil companies
will encounter hydrate pockets as they plunge deeper, it is preferable that the methane be
harvested rather than wasted as it enters the atmosphere. Although large-scale recovery
of hydrates has not been widely implemented, the depressurization method has been used
in Russia’s Messoyakha gas fields to extract methane from hydrates under the Siberian
permafrost.
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Design Motivations and Overview
In order to achieve economical, safe, and energy-efficient extraction of methane,
the rig has been designed to take advantage of hydrate dissociation under decreased
pressures. Since maintaining elevated temperatures is energy-intensive over large
distances, and chemicals have lasting
environmental impacts, pressure is the best
control parameter. The basic design, as
shown in Figure 1, incorporates two
seafloor ROV crawlers that moor
themselves above a free gas pocket, drill
through the overlying hydrate, and extract
gas. The hydrates above the gas pocket
dissociate as methane travels up pipes to the
surface rig. The surface storage system
also minimizes its energy consumption by
utilizing subsurface dissociation pressures
to compress methane as it reaches surface
tanks. Proven transportation methods are
Figure 1: Methane Recovery System Diagram
used to minimize the environmental risk of
transferring the gas to the mainland, and the
system sustainability over a lifetime of 22 years is considered.
Implementation Process
America, which consumes over a quarter of the world’s oil, would greatly benefit
from finding a domestically-produced alternative energy source. Implementing a new
system takes time, however, so preparations must begin now. The steps involved in
developing methane hydrate mining are (1) researching the Blake Ridge location for
topological specifics, (2) designing the recovery rig, (3) manufacturing prototype parts
and testing them, (4) assembling and installing the rig, and (5) bringing it into production.
Step (2) has already begun, as this proposal demonstrates. In order to complete this step,
however, more surveys on exact hydrate locations and the accompanying environmental
conditions must be conducted. Current research is shedding light on detection techniques,
and developments in this area will greatly aid the processes outlined in the remainder of
this project description.
iii. Project Plan
The primary goal of this project is to harvest the maximum amount of methane
gas with the least affect on the environment, in the fastest amount of time, and with the
lowest costs, so that it is a viable alternative energy source.
Objectives
1. Knowledge of Methane
In order to accomplish each of the primary objectives, the behaviors and
properties of methane must be completely understood. Also, the environment in which
extraction will be taking place will have a substantial effect on the project design and
management plan.
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Our Methane Hydrate Specialist has completed sufficient research for designs that
optimize harvesting techniques and transportation to be made. Previous sampling and
studies have been done on methane that focus on it is behavior at deep sea levels.
Russian and Alaskan core sampling rigs have successfully extracted small methane
hydrate cores. However, the ability to take large cores has not yet been made possible
due to instability of the molecules in hydrate form. Laboratory experiments have further
emphasized the difficulty in handling methane hydrates. Because of these findings, and
because of evidence that interconnected pockets of free gas exist directly under the
hydrate fields (Flemings 1059), the methane will not be harvested in hydrate form.
Instead, the drill will penetrate below the hydrates to pockets where gas will be extracted.
It is important to consider the phase changes that the hydrates undergo due to
temperature and pressure. These impose limitations of the usage of most equipment that
is currently used for high pressure, low temperature marine environments. By knowing
this, the sub-sea equipment can be specifically designed or purchased for our uses.
2. Drill Safely and Efficiently
At each site, the drilling operations will entail boring two holes through the
sediment and methane hydrate layers into gas pockets below. Due to a pressure
difference between the interior of the drill pipe and the gas cavity, the gas will be forced
up the piping to the seafloor processing facility. After the initial drop in pressure, the
pressure inside the cavity and the extraction rate will be controlled using the second pipe,
which inserts replacement fluid to fill the void that is created. Referring to a phase
diagram of methane hydrates, when pressure is dropped to 30.4MPa the hydrates will
dissociate into gas. At the drilling location, the methane hydrates that form a ceiling
above the gas pockets will dissociate, therefore providing a continuous flow of gas to the
processing facility until the maximum possible amount is removed. A balance in
pressures must be maintained to prevent rupture of the overlying sediments. The pressure
in the cavern must not exceed the combined strength of the seafloor sediments under the
oceanic pressure head, and it must not drop so low that the cavern collapses and releases
all the gas. A methane hydrate layer of certain thickness must therefore remain intact to
ensure sea floor stability. This safe thickness is not standard for all sites; it must be
determined based on what Flemings et al. refer to as the pore-water overpressure (1057).
This pressure is based upon sediment porosity, the hydrostatic pressure head, and bulk
compressibility.
The amount of gas that can be extracted is limited by the size of each gas pocket
and hydrate deposit porosity. A seismic survey of the methane hydrate and gas location
and volume will allow the larger zones to be targeted, which will be utilized first.
Relocating sub-sea facilities would require more time and greater costs.
The drilling substation crawler will be deployable from a topsides vessel with a
through-hull deployment space along with the central benthic substation. Two crawlers
will work in conjunction with the benthic substation to supply filtered methane to the
topside vessel. These crawlers are responsible for traveling to their drilling positions,
securing themselves to the seafloor, situating drilling bits, and securing drilling risers and
connectors between internal piping connections and the substation. After the vehicle is in
position and drilling has begun, the various sensors onboard will monitor the flow of
methane through the drill risers and connecting pipes. Emergency measures will include
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electro-mechanical cut-off valves that are directly linked to sensor data at each junction
of the system.
The crawler will have automated tool selection. The ability to accurately assess
the substrate characteristics, determine proper tooling, and efficiently replace bits is
crucial to the underwater drilling operation for methane hydrate. The crawler has the
following details:
• Automatic tool interchange
• Automatic stall sensing / correcting
• Onboard flow control and sensing
• Internal and external emergency mechanical shutoffs
• Real time data throughput
• Autonomous report generating
• Tether (remote) control or autonomous operation
3. Automated Functions
Having this drilling platform in thousands of meters of water and also in an area
frequented by hurricanes (Blake Ridge) makes it susceptible to needing its crew
evacuated. However, the platform must operate as continuously as possible to ensure
maximum profits. To solve this problem and increase the efficiency of the rig, laborintensive, repetitive tasks such as opening and closing valves, monitoring methane levels,
and performing transfer functions at given intervals will be completely automated. This
will significantly decrease labor costs and ensure timely completion of tasks.
Automation will be accomplished through a control system consisting of
computers and microcontrollers. Microcontrollers and programmable logic controllers
(PLC’s) are industrial logic devices with multiple inputs and outputs that store alterable
computer programs. They can be programmed to continuously monitor and handle
routine operations. PLCs can monitor valve states, fluid levels, and pipe pressures, as
well as open or close valves, sound alarms, or release pressures, according to the actions
programmed into them.
The micro-controller and PLC are parts of the Supervisory Control and Data
Acquisition (SCADA) system. This is a generic name for a computerized system that is
capable of gathering and processing data and applying operational controls over long
distances. The SCADA system allows these parts to operate autonomously while
reporting to a host computer, which provides an operator interface to the system as a
whole. There are other components of the SCADA system such as a PC, which acts as the
LAN controller, and man-machine interface (MMI) software that allows a graphical
representation of the system.
The SCADA system designed for the methane recovery system has an
architecture centered around the CPU on the surface ship. Operators can enter long-term
drilling plans and information into the system via the MMI. These plans are processed,
and the relevant instructions are distributed to the rest of the system as needed. The
majority of the commands are sent to the PC104 stack in the seafloor processing facility,
which calculates and distributes commands to microcontrollers in the drilling crawlers
and the facility itself. The simpler programs on the microcontrollers convert logic to
mechanical control by commanding pump, valve, drill, and crawler chassis states. In
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addition to the processing facility, the surface CPU commands storage tank
microcontrollers.
Using a SCADA system enables platform operations to take place smoothly with
results reporting in a timely manner to a central monitoring point, where the operator may
fine-tune system parameters as necessary. The operator of the platform can change alarm
set points, monitor and control tank levels, maneuver and monitor wells and pipelines,
and shut down or start up the rig. The micro-controllers and PLCs continue to run the
platform autonomously unless alarms indicate that the drilling needs to stop to prevent
damage to the platform.
An electrical system integrating these devices with the main sources of power,
electrical generators, electrical motors, and instrumentation is essential to make drilling
and harvesting operations easier, more efficient and, most importantly, safe. It is critical
to minimize the amount of human tasks to lower workforce and room for human error.
Finally, this system will allow for maximized profits by allowing continuous harvesting
through most weather conditions.
4. Surface Facility Selection
For this operation, the 6th generation Aker H-6e semi-submersible drill rig design
has been selected. The distribution of the methane hydrate fields requires the selected
drilling platform to be mobile to reduce cost and over the total project duration. Methane
is a dangerous substance to handle in the best conditions. Attempting to extract and
house mass quantities while at sea exposed to elements requires a stable platform that
maintains its stability even in harsh conditions.
This semi-submersible design will supply the greatest stability, which is required
for the delicate handling of the methane. Its large pontoons are flooded with water and/or
materials and equipment; this lowers the center of gravity and allows the rig to be
supported by a base that is below the surface. The 18.5-meter gap between the pontoons
and the surface structure reduces the wetted surface area susceptible to wave energy
transfer, enabling the rig to effectively handle wave heights up to 36 meters. It is fully
winterized and allows for year-round operation under harsh conditions.
Moorings needed for this project include the subsurface processing facility and
weather or data buoys. The surface ship will not need to be moored as it will be
dynamically positioned.
This task will require ample surface space for the many specialized facilities
required, such as: LNG containers, housing, drill station, ROV control center, LNG
process center, and multiple LNG transfer stations for offloading to transfer ships. The
H-6e has 92,5x70 m (6475 m2) of deck space, making it the largest semi-submersible rig
to date. This deck space allows for custom placement of all the facilities needed for this
unique task. It has flexible housing that will allow customization for this project’s needs
and living accommodations for over 140 people. Since only 110 workers will be needed
on the rig during operations, some of the extra space can be used for housing technical
equipment.
This task requires the drilling to take places at depths of over 2,500m. The H-6e
is capable of drilling to 3050m. Also, space for the deployable processing station will be
needed during transportation. The large gap between the pontoons and the deck allows
ample room for the processing station housing and deployment equipment.
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Support is required in the form of supplies for the equipment and crew on board,
as well as LNG transfers ships to ferry the cargo back to the mainland. Emergency and
safety support will also be required. The H-6e’s ample deck space allows for the
placement of numerous offload points from the LNG containers on deck to the LNG
support ships. Multiple offload stations will allow for increased extraction rates. Safety
precautions include life boats on board and a helicopter landing pad for emergency and
small group transport.
5. Minimum Power Use
The main source of power on the semi-submersible rig will be from multiple large,
diesel engines that power electrical generators which in turn provide electrical power to
various locations on and under the platform. These diesel engines will be powered by
diesel fuel kept in storage tanks on board.
The mechanisms powered from these diesel engines and electrical generators
topside include the main control tower, pumps for transporting methane to transporting
ship tanks, winch operations lowering and retrieving processing plant and drills, any
communication with land or other ships, and lighting or any other low current electrical
devices for living quarters.
Due to the complexity of the sub-sea processing facility and drill carriage, there
are various options for current supplies powering the devices simultaneously. Everything
underwater will be powered by batteries charged by methane cells or direct current from
the surface, in turn reducing power fluctuations. The feasibility of utilizing readily
available methane in a self-sustaining power system will be re-evaluated as methane fuel
cell technology develops during the initial stages of this project. Currently experimental
fuel cell power plants are testing the viability of using excess coalmine methane. While
cells producing 200kW have been installed (Haskew), current issues to address are
oxidation agents and efficiency of operation at depth. Any methane cells on the
processing plant will have storage tanks to supply methane during initial drilling (a
maximum of three days) and in periods of low extraction. Also, an additional pipe will be
connected from the surface allowing oxygen or extra methane to be pumped to the cells.
6. Efficient Sub-Sea Repair
The integrated sensor and computer systems have been specially designed to
detect errors in the system. Modules in the computer system constantly monitor
consistency in pressures throughout the piping system, current draw, humidity, and air
quality. The logic activates emergency shutdown procedures automatically to minimize
damage.
In order to facilitate minor repairs to the processing facility and crawlers on the
seafloor, a Remotely Operated Vehicle is to be housed in the processing facility. This
ROV will be equipped with high-power lighting and cameras so that operators on the
surface can have a visual indication of the repairs to be made. Communications will be
via fiber-optic wire, and two manipulator arms will be used to perform simple tasks like
securing sacrificial anodes, untangling wires, and clearing debris. The ROV’s tether is
long enough to give it access to sections of the tether that cannot be reached from the
surface. In the event of more serious damage, the processing facility and can be raised,
as when changes in location are needed.
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Seven divers will be employed aboard the surface ship in order to perform
submerged repairs. In coordination with the machinists, parts will be quickly
manufactured and deployed.
7. Transport Safely and Economically
The Port of Morehead City, on the coast of southern North Carolina is the closest
major port near the rig and will be used by the support ships to bring methane to land for
further processing and use. The port is large enough and has appropriate lifting and other
equipment for our use. It is also conveniently located near a major highway and railroad,
which can be for shipping the methane elsewhere.
The vessels traveling between the port and rig will be equipped with navigation
instruments and software. Two navigation software packages are suggested: SPAWAR
Integrated Charting Engine (ICE) and Kongsberg Simrad SPS. They both run
simultaneously on the bridge and have the ability to receive GPS input from P-Code or
DGPS. Traditional paper charts are used as well.
A Raytheon model DSN-450 Doppler sonar provides an indication of ship's speed,
distance traveled and, at continental shelf depths, an indication of water depth. NAVTEX
and a weather fax will cover the navigational and meteorological warnings and forecast,
as well as urgent marine safety information for ships.
The Automatic Identification System (AIS) is a shipboard radar display, with
overlaid electronic chart data, that includes a mark for every significant ship within radio
range, each as desired with a velocity vector (indicating speed and heading). Each ship
"mark" could reflect the actual size of the ship, with position to GPS or differential GPS
accuracy. By "clicking" on a ship mark, you could learn the ship name, course and speed,
classification, call sign, registration number, MMSI, and other information. Maneuvering
information, closest point of approach, time to closest point of approach and other
navigation information, more accurate and timelier than information available from an
automatic radar plotting aid (ARPA), could also be available. This system ensures
reliable ship-to-ship operation.
8. Appropriate Piping
The main issue for piping systems is having the rig dynamically positioned at all
times. Because of this, conventional steel pipes cannot be used due to the stresses that
would eventually result in early failure of the structure. Flexible piping also outweighs
conventional steel pipes because of the smaller weight, fewer pipe connections and cost
reductions in maintenance.
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iv. Management Plan
Project Principal Investigators
 Hunter Brown - Senior Mechanical Engineer
 Eduardo Gonzalez - Senior Hydraulic Engineer
 Adam Outlaw - Senior Control Engineer
 Zachary Pfeiffer - Senior Electrical Engineer
 Michelle Rees - Senior Navigation Engineer
 Maila Sepri - Senior Computer Engineer
 Enrique Acuna - Senior Mechanical Engineer Processing System
 Michael Card - Mining Specialist
 Christopher Cawood - Mooring Specialist
 Zachary Chester - Coordination & Systems Integration Engineer
 Walker Dawson - Safety & Law Specialist
 Adam Lucey - Acoustics & Instrumentation Engineer
 Steve Martyr - Surface Facilities Engineering
 Mark Stroik - Methane Hydrate Specialist
Advisory Board
Dr. Stephen L Wood is an assistant professor of Ocean Engineering at Florida Institute of
Technology. He obtained his PhD in Mechanical Engineering from Oregon State
University.
Dr. Geoffrey W.Swain is a professor of ocean engineering and oceanography at Florida
Institute of Technology. He obtained his PhD in Ocean Engineering in
Southampton Univerisity.
Dr. Eric D Thosteson is an assistant professor of ocean engineering at Florida Tech
Institute of Technology. He is an active member of the American Geophysical
Union and earned his PhD from the University of Florida.
Communications
The engineering group responsible for the design, construction, performance and
maintenance of the methane recovery facilities will maintain good communications
through the use of internet, conference calls and monthly meetings. The monthly
meetings will occur on the first Monday of every month at 5pm and will be held at our
operations headquarters at the Port of Morehead City in North Carolina. In the case of
the inability of someone to be present, conference calls will be use to keep that individual
inform of the content of the meeting. The content of the meeting shall be mainly
progress reports and project logistics.
Sustainability of Project
The methane recovery facility has been design to have a maximum peak
extraction rate of 200 millions ft3/day. At this rate, an estimated profit of 16.06 billion
dollars is expected in the system design life of 22 years. This corresponds to a yearly
profit of 730 million dollars which is a larger amount than the required amount needed to
maintain normal operations at the facility.
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v. Evaluation/Assessment Plan
This project will be evaluated through a comprehensive outcome assessment plan. The
project manager will submit annual reports outlining the annual worth of the extraction
process as well as reports regarding development areas of the project, project strengths,
and recommendations for improvement.
Table 1: Evaluation methods of each objective
Objective
Measurement
Activity
Deployment
Records kept by
operation under management
$10,000 US
Data Collection
Approach
Labor cost and
time consumption
will be calculated
Key Individuals
Schedule
Eduardo Gonzalez
Steve Martyr
Safe drilling
and creation of
stable well for
methane
extraction
Profit from
operation must
exceed $14
billion/yr
System
stability under
Hurricane
season
Real-time
monitoring of
drill mechanisms
and electrical
demand
Records kept by
management
Monitoring
through the use of
microcontrollers
and sensors
Adam Lucey
Hunter Brown
Michael Card
Performed
after every
Deployment
~5 years
Performed
after every
well drilling
~5 years
Profit will be
compared to
operational cost
Eduardo Gonzalez
Walker Dawson
Performed
at the end of
fiscal year
Surface
components of
system will use
the same design
requirements
designed for a
100 year storm
Monitoring of
methane gas as it
travels through
the processing
facility and when
store
Documented
progress of
prototype
development
Computer control
of docking and
navigational
operation
Structural and
mechanical
evaluation of
surface
components
Zachary Chester
Steve Martyr
Chris Cawood
Purity of methane
will be detected
through sensors at
surface structure
and at processing
facility
Update check-list
of programs and
hardware that are
operational
monitoring traffic
control and
unloading
operation
Enrique Acuna
Mark Stroik
Adam Lucey
Performed
at the end of
the
hurricane
season,
every
December
Performed
every two
weeks
Maila Sepri
Adam Outlaw
Zachary Pfeiffer
Performed
every two
weeks
Michelle Rees
Zachary Chester
Performed
every two
weeks
Purity, grade of
methane
extracted and
processes
methane gas
Electronics
stable and
accurate
performance
Efficient
management of
port operation
12
vi. Dissemination
The progress of the DOES Methane Hydrate Drilling Rig will be reported to
DOES stockholders through quarterly mailings reporting on the status of the project.
Also, DOES will be present at every Offshore Technology Conference (OTC) in Houston,
TX every May to give a report to all persons attending the conference. Progress of the
mission can also be viewed on our website. The website information will be updated
every day by our web manager and the information will be similar to a daily progress
report. This report will not only give any person that reads the site updated information
about the project along with a time line that lays out major events from the past and
upcoming major events, but with a username and password, one will be able to view a
detailed profitability table in order to make a sound judgment on whether or not to buy
stock in the company.
vii. Summary
Completion of this methane recovery system will result in developing methane
hydrates as a viable alternative energy source. Success is a function of harvesting a
maximum amount of methane gas with the least affect on the environment, in the fastest
amount of time, and with the lowest costs. The proposed facility would have a maximum
extraction rate of 6,585,158 m3 per day. This corresponds to an estimated profit of 16.06
billion dollars per year. The entire operation will use 110 staff members at all time,
costing approximately $7.7 million in labor, with an operational cost of approximately
$365 million a year. The mining will be completed in 22 years, with an expected total
operation profit of $15.69 billion per year.
Since accuracy of size and position plays a significant role on the time and effort
for successful extraction, the hydrates must be accurately located before harvesting
begins. Current research is being conducted on improving seismic, sonic, geothermal,
and geochemical detection techniques, and the results of this research will be used to
advantage as it becomes available.
Further funding and research will be needed for methane fuel cells before the
system can become self-sustainable using the methane harvested. The feasibility of
utilizing readily available methane in a self-sustaining power system will be re-evaluated
as methane fuel cell technology develops during the initial stages of this project.
Currently experimental fuel cell power plants are testing the viability of using excess
coalmine methane.
Given the projected scarcity of fossil fuels after the coming decade and the time
needed to put a new energy system into widespread service, now is the key time to design
and develop alternatives. Methane would be a relatively easily implemented option,
since existing engines can be modified only slightly to use methane as fuel, and methanefueled cars have been widely used in Europe for years. In addition to the environmental
benefits of methane’s reduced emissions, the potential availability of large hydrate
reserves on continental shelves makes methane a viable option. Developing a deep-sea
gas recovery system will also aid the oil industry as it pursues deeper and deeper oil
reserves. The research involved in this project will improve methods for dealing with
hydrates encountered while drilling for oil, and further in the future, when waning oil
supplies trigger phasing out of oil rigs and transportation vessels, this design can take
13
advantage of the existing hardware. Thus implementing the proposed methane recovery
system will facilitate the harvesting of energy in multiple ways in the coming decades.
E. References Cited
Arai, T., Yamamoto, T., Ando, J., and Ishida, H. “Development of High Efficiency Gas
Engine for Green House Gas Reduction.” Mitsubishi Heavy Industries, Ltd.
Technical Review 41.4 (2004): 1-4. 27 April 2006.
<www.mhi.co.jp/tech/pdf/e414/e414216.pdf>
Barnes, J.E. “Deepwater Exploration and Production.” Journal of Petroleum Technology,
57.6, (2005): 50-61.
Dickens, G.R., Paul, C.K., Wallace, P., and the ODP Leg 164 Scientific Party. “Direct
measurement of in situ methane quantities in a large gas-hydrate reservoir.”
Nature, 385 (1997): 426-428.
Dillon, W. “Gas (Methane) Hydrates – A New Frontier.” September 1992. U.S.
Geological Survey. 20 April 2006. <http://marine.usgs.gov/fact-sheets/gashydrates/title.html>
Flemings, P.B., Liu, X., and Winters, W.J. “Critical pressure and multiphase flow in
Blake Ridge gas hydrates.” Geology, 31.12 (2003): 1057-1060.
Haskew, T.A., Haynes, C.D., Boyer, C.M., and Lasseter, E.L. “Coalbed methane/fuel cell
operation for direct electric power generation.” SPE Gas Technology Symposium
Proceedings. (1996): 451-460. Abstract. Engineering Village 2. Evans Library,
Florida Institute of Technology. 20 Apr.2006
<http://www.engineeringvillage2.org>
Maynard, Barbara. “Burning Questions About Gas Hydrates.” Chemisty. Winter 2006:
27-33.
“Methane Hydrate-The Gas Resource of the Future.” 28 December 2005. US Department
of Energy. 23 April 2006.
<http://www.fossil.energy.gov/programs/oilgas/hydrates/index.html>
“Resources: How much Natural Gas Is There?” 2004. NaturalGas.org. 20 April 2006.
<http://www.naturalgas.org/overview/resources.asp>
14
F. Biographical Sketches
Principal Investigator, Eduardo Gonzalez, earned a PhD in Ocean Engineering and
M.S in Project Management from Florida Institute of Technology in 2002 and has
worked in the naval hydraulics industry for 5 years. Eduardo Gonzalez will be involved
in designing the pipe systems that transport methane gas from the deposit to the surface
structure, the processing station and the hydraulic winch that serves as deploying
mechanism. As the project management, he will maintain records of the performance
and progress of the senior personnel and he will also hold monthly meetings to keep all
principal investigators and senior personnel well informed.
Principal Investigator, Maila Sepri, earned her M.S. in Computer Science and
Electrical Engineering from California Institute of Technology in 2002. Maila Sepri will
be involved in developing of the hardware that will perform logic and communications
for the control system, and to specify the software architecture that will achieve these
purposes. She also serves as project management of the team and will help managing the
logistics of the project.
Principal Investigator, Adam Outlaw, earned a M.S. in Computer and Electrical
Engineering from Massachusetts Institute of Technology in 2004 and has worked for
Texas Instruments for 2 years. Adam Outlaw will be involved in the design and
development of the control systems that will be installed throughout the methane
recovery project.
Principal Investigator, Hunter Brown, earned his M.S. in Mechanical Engineering
from Massachusetts Institute of Technology in 2002 and has been an assistant professor
for the ocean engineering department of Florida Atlantic University. He has worked in
multiple projects involving remotely operated vehicles (ROV) and autonomous
underwater vehicles (AUV). Hunter Brown will be involved in the design and
development of the drill crawler ROV and the auxiliary ROV
Principal Investigator, Zach Pfeiffer, earned a PHD in Electrical Engineering at the
University of South California in 2003. He has worked for Boeing for the past 3 years.
Zach Pfeiffer will be involved in the design and development of the electrical systems
that will be installed throughout the methane recovery project, including the remotely
operated vehicles.
Principal Investigator, Michelle Rees, earned her B.S. in Ocean Transportation from
the United States Maritime Academy in 2003 and earned her M.S. in Ocean Engineer
from Florida Institute of Technology in 2005. She will be involved in the selection of
ports, design and construction of port facilities and logistics of the transportation systems.
Project Senior Personnel
Senior Personnel, Enrique Acuna, earned a M.S. in Chemical Engineering at the
University of Michigan in 2001. He has worked for in the oil & gas industry for the past
4 years. Enrique Acuna will be involved in the design and development of the methane
15
processing systems that will be installed at the processing facility and the surface
structure. He will also be involve with the treatment, filtration and storage of the
methane gas.
Senior Personnel, Michael Card earned a M.S. in mechanical engineering from the
University of Texas in 1975. Since then, Michael Card has worked in the oil & gas
industry as a mining specialist. He will be in charge of the development and construction
of the mining equipment and will be in charge of the mining operations and logistics.
Senior Personnel, Chris Cawood, holds a B.S. in Underwater Technology from
Northwestern University and a M.S in Ocean Engineering from the Florida Institute of
Technology. He will be involve in the design, construction and implementation of the
mooring systems throughout the methane recovery facility.
Senior Personnel, Zachary Chester earned a B.A. in Physiology and a M.S. in Quality
Engineering in 2005 from Ohio State University. Zachary Chester will be involve with
the project management aspect of the project and will be in charge of developing safety
protocols for the equipment within the methane recovery facility.
Senior Personnel, Walker Dawson, earned a degree in Corporate Law from Harvard
University in 1974 and obtained a B.S. in Project Management in 1979 from the
University of North Carolina. He has been working for Exxon for the past 3 years.
Walker Dawson will be in charge of obtaining all necessary legal permits for the facility
and will be involved with the human factors of the operation.
Senior Personnel, Adam Lucey is an Assistant Professor of electrical engineering and
has been a faculty member of Miami University since 1998. He earned a M.S. in
electrical engineering from UCLA. Adam Lucey is involved with the design,
construction, installation and test trials of sensors mounted throughout the methane
recovery facility.
Senior Personnel, Steve Martyr, is a graduate of the Untied States Maritime Academy
and earned his M.S. in Naval Architecture at the University of Michigan in 2002. He has
been working in the gas and oil industry since 2004. Steve Martyr is involved in the
design and construction of the semi submersible self-powered rig and methane
transporting tankers.
Senior Personnel, Mark Stroik is Assistant Professor of Chemistry and has been a
faculty member of the University of Virginia since 1998. He earned a M.S. in Chemistry
from West Virginia University. Mark Stroiks is involved in the methane gas chemical
properties studies and will contribute to the extraction, filtration, containment and storage
of the methane gas.
16
G. Budget
Please see Appendix for a more detailed breakdown of cost for each of the
individual systems.
Item
Drilling Crawler
PSS Package
Drilling motor
Drill pipe
Drill bits(3)
Mud pump
Drilling fluid
Regulator Crawler
PSS Package
Drilling motor
Drill pipe
Drill bits(3)
Mud pump
Drilling fluid
Pressure regulation valve
Hydroacustics Locator System
System
Pipes/Hydraulics
Stage I Pipes
Cost
------------------------$ 10,000,000.00
$
50,000.00
$
10,000.00
$
225,000.00
$
20,000.00
$
500,000.00
------------------------$ 10,000,000.00
$
50,000.00
$
10,000.00
$
225,000.00
$
20,000.00
$
500,000.00
$
50,000.00
------------------------$
175,000.00
------------------------$ 3,517,500.00
Stage II Pipes
$
1,890,000.00
Stage III Pipes
$
660,000.00
MEC Unit
$
700,000.00
Triplex Pumps
$
1,800,000.00
Caterpillar Diesel Engines
$
1,900,000.00
Cathodic Protection System (Cables)
$
190,000.00
Cathodic Protection System (Facility)
$
170,000.00
Winch System
$
4,680,000.00
Pipe pressure sensor
Vertical
Horizontal
Methane Processing Chamber
Holding Tanks
Piping
Valves
Expansion Chamber
Fuel Cells
Processing facility sensors
pressure sensors
Temperature
Humidity
Purity
------------------------$
305,118.00
$
29,520.00
------------------------$
6,000,000.00
$
400,000.00
$
2,000,000.00
$
4,000,000.00
$
2,000,000.00
------------------------$
7,500.00
$
4,000.00
$
4,000.00
$
6,000.00
17
Labor/Engineering
Cost
$ 160,000.00
$
160,000.00
$
20,000.00
$
2,350,000.00
$
15,000.00
$
510,000.00
$
15,000.00
Processing Facility Crawler
PSS Package
Methane Pressure Chamber
Mud Pump
Drilling Fluid
Rig Site Package
Mud Pump
Power Distribution
Mud/Soil Reconditioning System
Surface platform sensors
pressure sensor
humidity sensor
Temperature sensor
purity sensor
Control Systems
Systems
Computers/Monitors/Hard Drives
Microcontrollers/PCBs
Processing Facility Mooring
Screw Type Pilings
Navigation Systems
Software
Navtex
Weather Fax
Auto ID system
Seatex Seapath 200
Raytheon Doppler Sonar
DP Positionging system
Electric Equipment/Electronics
Cummins diesel generators
Fiber optic wiring
Transceivers/Amplifiers/Connectors
Rolls marine batteries
Miscellaneous electrical equipment
Berth/Docks Leasing
20 year lease
Moorings/Buoy
Weather Buoy
13mm Chain
25mm Chain
19mm Nylon
22mm Nylon
35mm Nylon
15mm Polyester
Anchors
Acoustic Release
Misc
------------------------$ 10,000,000.00
$
750,000.00
$
20,000.00
$
50,000.00
------------------------$
20,000.00
$
200,000.00
$
1,200,000.00
------------------------$
7,500.00
$
4,000.00
$
4,000.00
$
6,000.00
------------------------$
150,000.00
$
3,325.00
$
400.00
------------------------$
100,000.00
------------------------$
500.00
$
1,000.00
$
1,700.00
$
4,000.00
$
2,000.00
$
1,000.00
$
5,000,000.00
------------------------$
650,000.00
$
26,280.00
$
3,400.00
$
10,189.70
$
100,000.00
------------------------$
7,300,000.00
------------------------$
150,000.00
$
370.00
$
1,150.00
$
4,800.00
$
6,150.00
$
2,050.00
$
50.00
$
500.00
$
6,000.00
$
2,000.00
18
$
220,000.00
$
70,000.00
$
15,000.00
$
5,943,605.00
$
22,000.00
$
95,000.00
$
789,869.70
$
$
105,000.00
Surface Structure/Ship
Aker H-6e Semi-Sub RIG
Propulsion
Supply boats
LNG Carrier
Operational Costs
Environmental Consultants
Salaries
TOTAL
------------------------$ 275,000,000.00
$
4,000,000.00
$
200,000.00
$
2,000,000.00
-------------------------
$ 359,087,002.70
$
1,330,000.00
$
$
$
1,000,000.00
10,000,000.00
22,820,474.70
i. Budget Justification
The necessary crew for the offshore processing facility totals 110 persons. This is
an accepted and standard population for oil type drilling rigs and is sufficient for the
missions outlined in this document. Of the 110, 18 will provide hotel loads such as food
services, and living facility staff. These employees shall provide meals at six-hour
intervals in addition to keeping the kitchen well stocked and clean. Also included in this
group is the laundry service, maid service, and living quarters maintenance crew.
A group of 60 technicians will provide round-the-clock surveillance on all critical
tasks. Each member will work a 12 hour shift. This includes 6 navigators, 6 control
systems engineers, 4 computer programmers, 4 computer technicians, 10 methane storage
technicians, 20 engineers, 4 drilling technicians, 4 GUI monitors, and 2 safety
coordinators. This group will be the main operational group in charge of maintaining
drilling operations and assuring that all actions are progressing smoothly and safely. The
safety coordinators will insure that all activities are complying with mandatory safety
procedures and that all employees are within OSHA and DOES safety guidelines.
In addition to these two groups, onboard at all times will be 2 project managers, 2
navigation engineers/pilots, 4 environmental consultants, 2 hydraulics engineers, 1
corrosion engineer, 4 communications personnel, 7 divers, 10 machinists. The rig will
house a full scale machine shop to accommodate any potential equipment failures and
will be run 24 hours a day by two shifts of 5 machinists. The seven divers will perform
near-surface maintenance and ensure that all vehicular activities are conducted within
DOES guidelines. These divers will also perform specific assigned duties as they arise
during the normal course of drilling operations. Communications personnel ensure that
all subsurface and rig-to-shore communications are operational 24 hours a day and are at
the disposal of crewmembers for both work related activities and personal
communications with families ashore. The environmental consultants will be available to
provide input in the environmental ramifications involved in daily activities and be
present to ensure minimal environmental impact.
The LNG carrier will contain 10 crewmembers to ensure all gas transfer activities
flow according to predefined transfer procedures.
H. Current and Pending Support
Not applicable.
19
I. Facilities, Equipment and Other Resources
Deep Ocean Energy Systems (DOES) operates a world-class product facility
including full-time designers, engineers, machinists, welders, mechanics, and quality
assurance specialists. DOES capabilities fill the gaps between an initial concept and a
fully working system.
The design department, including seven in-house full-time designers, is home to
two HP DesignJet 500 Printers for full scale mechanical drawings, seven Pentium 4 PCs
running MS Windows XP with the latest CAD software from AutoDesk and SolidWorks,
and a wealth of talent spanning all fifteen years of DOES existence.
The engineering department consists of ten mechanical engineers, ten electrical
engineers, twelve ocean engineers and a civil engineer who oversee projects from start to
finish by coordinating with designers, production staff, and the customer to ensure a
quality final product.
The production department is housed in a 10,000sqf. facility equipped with the
finest lathes, mills, CNC machines, and other heavy machinery available. Ten full-time
machinist and welders are available for precision production work including
large/oversized parts. All machining work and welding can be performed to SAE and
Military specifications and assured by our own quality assurance engineer.
DOES has ongoing relationships with many manufacturers, suppliers, academic
institutions and government agencies that are essential to the successful completion of a
project of this scale. Collaboration between these agencies will allow timely completion
of key sections of the project to ensure that the work flow of the project as a whole
remains on schedule and with the highest quality.
J. Special Info & Supplementary Documentation
Not Applicable.
20
21
K. Appendices
Appendix I: Gantt Chart
Appendix II: Sensors List
System
Type
Manufacturer
Model
Cost
mooring
mooring
$9,000.00
$4,000.00
load shackles
1090E
4164
XLS
400
$10,000.00
$15,000.00
Mooring
Aanderaa
Aanderaa
InterOcean Systems,
Inc.
Aanderaa
InterOcean Systems,
Inc.
Total cost per mooring
3595
3590
mooring
mooring
wave height
wind direction
transponding acoustic
release
buoy orientation sensor
S&P.P.
S&P.P.
S&P.P.
S&P.P.
S&P.P.
Pressure sensor
Temperature
CH4 Flowrate
Purity sensor
Leak detection
Spectre Sensors, Inc.
Caldon, Inc.
Caldon, Inc.
Caldon, Inc.
Caldon, Inc.
Total Cost
$18,000.00
$12,000.00
$20,000.00
$23,500.00
$30,000.00
$103,500.00
Processing
Processing
Processing
Processing
Processing
Processing
Processing
Processing
Processing
Processing
Pressure sensor
Temperature
Humidity sensor
CH4 Flowrate
Salinity
Seismometer
Accelerometer
Air qaulity sensors
Current meters
leak detection
Hydrophone & acoustic
array
Spectre Sensors, Inc.
Caldon, Inc.
Caldon, Inc.
$18,000.00
$12,000.00
$10,000.00
$20,000.00
$7,500.00
$150,000.00
$8,500.00
$10,000.00
$9,000.00
$35,000.00
Total Cost
$35,000.00
$315,000.00
Processing
System
Type
Drilling
Drilling
Drilling
Drilling
Pressure sensor
Temperature
CH4 Flowrate
Salinity
Hydrophone & acoustic
array
Optical Encoder
Drill speed
Clock
Seismometer
Drilling
Drilling
Drilling
Drilling
Drilling
Caldon, Inc.
Manufacturer
Cost
$17,000.00
$12,000.00
$20,000.00
$7,500.00
Total Cost
22
Model
$9,000.00
$47,000.00
$35,000.00
$10,000.00
$8,000.00
$3,500.00
$150,000.00
$263,000.00
ROV/Crawler
ROV/Crawler
ROV/Crawler
ROV/Crawler
ROV/Crawler
ROV/Crawler
ROV/Crawler
ROV/Crawler
ROV/Crawler
Ship systems
Ship systems
Ship systems
Ship systems
Ship systems
System
Sensors For Methane Piping
monitoring
Pipe press. Sensor
Vertical
Horizontal
Hydrophone array
Gyro
CTD
3-axis accelerometer
seismometer
camera array
CH4 Flow rate
self diagnostics
Currrent meter
Total Cost
$25,000.00
$15,000.00
$25,000.00
$55,000.00
$100,000.00
$35,000.00
$10,000.00
$30,000.00
$9,000.00
$304,000.00
Total Cost
$425,000.00
$9,000.00
$5,000.00
$4,000.00
$200,000.00
$643,000.00
Dynamic positioning system
wave height
wave direction
wind speed/direction
sonar/hydrophone array
Type
Manufacturer
Model
Cost
$305,118.00
$29,520.00
processing facility
pressure sensors
temperature
humidity
purity
$7,500.00
$4,000.00
$4,000.00
$6,000.00
Surface
pressure sensor
humidity
temperature
purity
Total cost
Total cost of sensors and instruments for entire operation
$7,500.00
$4,000.00
$4,000.00
$6,000.00
$371,638.00
$2,047,138.00
*NOTE* This includes only one mooring
23