Office of Fossil Energy (2020 Presidential transition)
| Book 3 - Organization Overview
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| Entire 2020 DOE Transition book As of October 2020 |
The Office of Fossil Energy (FE) plays a critical role in the U.S. Department of Energy’s (DOE) mission to enhance national security and economic growth through transformative science, technology innovation, and market solutions to U.S. energy, nuclear security, and environmental challenges. This is accomplished though impactful early-stage research and development (R&D) that is poised for further advancement and scale-up of technologies, systems, processes, and methods that utilize fossil energy resources efficiently and responsibly. This ensures the continuous improvement of the standards of living of the American people with clean, efficient, and reliable energy. Additionally, FE enhances national security through its operation of the Strategic Petroleum Reserve (SPR), the nation’s emergency crude oil “storage bank” built to protect the U.S. economy during significant petroleum supply or demand interruptions.
Mission Statement
Discover and develop advanced fossil energy technologies to ensure American energy dominance, create American jobs, support a resilient infrastructure, maintain environmental stewardship, and enhance America’s economy. Ensure America’s access to and use of safe, secure, reliable, and affordable fossil energy resources and strategic reserves
Budget
| Fiscal Year | Budget |
| FY 2019 enacted | $1,000,000,000 |
| FY 2020 enacted | $979,000,000 |
| FY 2021 requested | $930,700,000 |
Human Resources
FY 2020 Authorized Federal Full-Time Equivalents (FTEs): 787
History
Fossil fuels provide more than 80 percent of the energy mix in the United States and around the world. The U.S. Energy Information Administration projects that fossil energy will remain at nearly 80 percent of the energy mix in 2040, both in the United States and worldwide. Carbon reduction is a global issue, and FE leads the world in technologies for reducing greenhouse gas emissions as cost- effectively as possible. Hydrogen from fossil fuels, including coal, is expected to play a key role in the U.S. transition to clean, low-carbon energy systems. The International Energy Agency predicts the United States and other advanced countries that develop a successful hydrogen economy will rely primarily on fossil fuels along with carbon capture, utilization, and storage (CCUS). FE is already a world leader in this technology and is working to remove cost as a barrier to its widespread use. The vast majority of recent progress made on fossil energy technology development started with investments made by FE—and that progress demonstrates our impact. To name a few, our achievements and investments include advances in the recovery of rare earth elements and critical minerals from coal and coal by-products, new products from coal (i.e., quantum dots for use in medicine and electronics) creating new industries and good jobs in America’s coal country. Other examples include highly efficient coal technologies that achieve near- zero emissions, and are commercially deployable in a competitive energy market, research on materials, coating, and sensors to improve the operational efficiency, security reliability, and safety of natural gas supply and delivery infrastructure, advanced methane detection and measurement technology validation, as well as horizontal drilling and stimulation methods that paved the way for oil and gas operators to set us on the pathway toward energy independence for the first time in decades. The United States is now the top producer of both oil and natural gas; however, challenges remain around issues such as methane emissions and produced water. At the same time, we have authorized more than 48 billion cubic feet per day of liquefied natural gas (LNG) exports from over 20 export facilities in the United States.
The SPR continues to serve as a valuable national emergency resource during natural disasters and other oil supply disruptions, as seen during Hurricane Harvey in 2017. The SPR is beginning a large-scale effort to repair and replace key infrastructure to maintain the short-term and long- term effectiveness of its operation. The SPR is also analyzing the best taxpayer use of excess capacity that will be available at the end of oil sales currently mandated by law.
FE has the longest directly traceable history of any organization in DOE. In 1910, the predecessor to the National Energy Technology Laboratory (NETL)1 was created as a U.S. Department of the Interior (DOI) Bureau of Mines laboratory in Pittsburgh, Pennsylvania. In 1961, Congress established the Office of Coal Research in the DOI that later shifted—along with the related DOI facilities to the Energy Research and Development Administration (ERDA), created by the Energy Reorganization Act of 1974—to carry out a more aggressive energy development program. In 1975, President Ford signed the Energy Policy and Conservation Act that authorized the establishment of the SPR. In 1977, the Department of Energy Organization Act created the DOE. Fossil energy coal and power plant research, development, and demonstration activities focused on a variety of technologies that addressed energy security, environment, and energy cost concerns; however, the highest priority was advancing technology to produce abundant and reasonable-cost transportation fuels from coal. Regarding the petroleum reserves, in 2000, the Northeast Home Heating Oil Reserve (NEHHOR) was established to help ensure adequate supplies of heating oil in the event of potential shortages due to colder-than-normal winters. In 2014, the Northeast Gasoline Supply Reserve (NGSR) was established in response to Superstorm Sandy, and DOE has proposed disestablishment of NGSR since 2018. In 2020, DOE proposed disestablishment of NEHHOR. The NGSR and NEHHOR have never been used for their intended purpose, are costly to maintain, and generally do not provide value to taxpayers.
Today, FE is focused on six research priorities: (1) develop carbon-neutral fossil energy plants of the future; 2) develop carbon-neutral Hydrogen (H2) technologies; (3) reduce the cost of carbon capture, utilization, and storage (CCUS); (4) increase fossil fuel productivity through big data and artificial intelligence; (5) address the energy water nexus; and (6) advance critical minerals (CM), rare earth elements (REEs), and coal-to-product technologies. FE is also focused on four programmatic priorities: (1) maintain drawdown readiness while completing the Life Extension Phase Two (LE 2) at the SPR; (2) catalyze private sector investment in Appalachian petrochemicals infrastructure; (3) practice efficient regulatory reviews; and (4) strengthen NETL’s technical capabilities.
FE’s diverse workforce brings together scientists, engineers, technicians, and other professionals with a wide range of experiences to help solve America’s fossil energy challenges.
Functions
Fossil Energy Research and Development (FER&D)
The FER&D mission is guided by the principles of energy dominance, national security, strong domestic energy production, and advancing clean coal technologies through early-stage R&D to revitalize the coal industry. The FER&D function focuses on cutting-edge, early-stage R&D that will prepare innovative new technologies for the private sector to further develop, scale up, and deploy. The FER&D program encompasses the following:
- Advanced Energy Systems aim to increase the availability, efficiency, and reliability of fossil energy power systems, while maintaining environmental standards through early-stage R&D. Specific efforts focus on Gasification Systems; Advanced Turbines; Solid Oxide Fuel Cells (SOFCs); Advanced Sensors and Controls; Power Generation Efficiency; Advanced Energy Materials; and Advance Coal Processing.
- Crosscutting Fossil Energy Research bridges basic and applied research by targeting concepts with the greatest potential for transformational breakthroughs. Specific activity areas include CM (including REEs); Water Management; Modeling, Simulation & Analysis; University Training and Research; and International Activities in support of the deployment of U.S. technologies and fossil energy resources to international markets.
- Carbon Capture, Utilization, and Storage (CCUS) technologies focus on post-combustion and pre-combustion carbon capture; utilization technologies to convert carbon dioxide (CO2) into valuable products and commodities; and carbon storage to ensure safe and secure geologic storage of CO2
- NETL Coal R&D supports the NETL scientists and engineers who conduct in-house research activities for FER&D programs. These scientists and engineers comprise the core competencies of NETL in the areas of computational science and engineering; energy conversion engineering; geological and environmental systems; materials engineering and manufacturing; program execution and integration; and systems engineering and analysis.
- Natural Gas Infrastructure Research focuses on early-stage research on innovative sensors, materials, and systems that enable industry to detect and mitigate resource loss and improve the reliability and operational efficiency of natural gas supply and delivery infrastructure. The program also has a significant role in addressing areas of public interest and concern, including pipeline safety and reliability; resource stewardship; and infrastructure security. Additionally, the program develops new technologies to reduce flaring and venting of natural gas through conversion to high-value, transportable products or electricity.
- Gas Hydrates include performance of early- stage R&D, through DOE National Laboratory and university-led efforts, to evaluate the occurrence, nature, and behavior of naturally occurring gas hydrates, and the resulting resource, hazard, and environmental implications.
- Unconventional Fossil Energy Technologies involve field research to improve the understanding of shale geology and fracture dynamics in key and emerging shales, including the Marcellus, Utica, Eagle Ford, Appalachia, Delaware, Bakken, Alaska, and Tuscaloosa basins.
Natural Gas Regulation
FE grants authorization, in accordance with the Natural Gas Act of 1938, as amended, requiring any person who wishes to import and/or export natural gas, including liquefied natural gas, compressed natural gas, compressed gas liquids, etc., from or to a foreign country to obtain an authorization from DOE. DOE grants two types of authorizations: short-term (blanket) and long-term authorizations. A short-term authorization enables a company to import and/or export natural gas on a short-term or spot market basis for a period of up to 2 years. Long-term authorizations are generally used when a company has a signed gas purchase or sales agreement/contract, tolling agreement, or other agreement resulting in imports/exports of natural gas, for a period longer than 2 years.
Petroleum Reserves
The SPR provides strategic and economic security against foreign and domestic disruptions in oil supplies via an emergency stockpile of crude oil. The SPR also fulfills national obligations under the International Energy Program, which provides assistance from the International Energy Agency (IEA) through its coordinated energy emergency response plans and provides a deterrent against energy supply disruptions. The SPR’s storage cavern integrity and maintenance programs ensure the availability of the SPR’s crude oil inventory. FE’s Office of Petroleum Reserves (OPR) manages three petroleum stockpiles: the SPR, NEHHOR, and NGSR. In addition to its emergency response functions, OPR also partners with FE’s Office of Oil and Gas to manage the Naval Petroleum Reserve (NPR) and Oil Shale Reserves program. The SPR is also executing a multi-year, $1.4B Life Extension Program, and a continuing legacy environmental clean-up/ remediation effort at the previously sold NPR field No. 1 (Elk Hills, CA), and landfill remediation as part of post-sale activities at NPR field No. 3 (Casper, WY).
External Coordination
FE leads and supports numerous efforts to coordinate development and deployment of CCUS, hydrogen production, and other advanced fossil energy technologies. FE plays an important role in implementing and supporting domestic policy efforts by providing information important to policymakers and regulators, and working closely with various stakeholders and other federal agencies to coordinate government-wide actions such as implementation of IRS § 45Q tax credits. FE also leads numerous bilateral and multilateral international partnerships to leverage FE programs and further advance fossil energy technologies, projects, and supporting policies.
Recent Organization Accomplishments
FE’s recent significant organizational accomplishments include:
Onshore Unconventional Technologies
FE awarded and launched four projects for advanced subsea system technologies to improve efficiency and capabilities for enhanced oil recovery offshore, as well as three for low-cost, efficient treatment technologies for produced water, including techno-economic analyses. Also, FE launched a new data visualization platform initiative for subsurface data that will lead and support real- time decision-making.
Advanced Technology Solution for Unconventional Oil and Gas Development
In a DOE sponsored Field Laboratory, the University of Alaska-Fairbanks and industry partner Hilcorp saw production increase from a polymer flood. Using polyacrylamide at their field site on Alaska’s North Slope, their two-year operational anniversary passed in August 2020 with operational and production success that far surpassed initial expectations. Incremental heavy oil production has increased by approximately 700 barrels per day with no breakthrough of the injectant. At the Milne Point unit, this success has been rolled out to three other production pads, which will contribute to Trans Alaska Pipeline System reliability by meeting the low flow threshold in the pipeline.
Critical Minerals/Rare Earth Elements
NETL awarded three, 30-month, extramural projects to optimize and improve the efficiency of REEs and, for the first time, CM from coal-based materials in pilot-scale extraction and separation facilities. The significance and major impact of this effort is not only advanced technology development, but also the potential to more fully realize the complete use and value of coal and its capability to supply CM to domestic industries that are currently dependent on off-shore CM supplies.
Negative Emissions Technologies
The FE Carbon Capture Program leveraged past research in materials for expanding and accelerating the development of negative emission technologies such direct air capture (DAC) and biomass energy with carbon capture and sequestration. As part of this initiative, the program issued a Funding Opportunity Announcement (FOA) for (i) novel DAC materials and processes, and (ii) testing of existing DAC materials in integrated field units that capture CO2
Natural Gas Infrastructure Modernization Partnership Cooperative Agreement
FE published two handbooks: (1) the Artificial Intelligence (AI) for Natural Gas Utilities: A Primer and The Sampling of Methane Emissions Detection Technologies and Practices for Natural Gas Distribution Infrastructure (AI Primer) handbook; and (2) the Methane Emissions Detection Technologies and Practices handbook. The AI Primer is designed to assist pipeline operators, utility systems, and state regulators on how AI can be used to improve natural gas utility service and positing areas in which AI applications can further the safe, reliable, and affordable operation of natural gas infrastructure and enhance the reliability of natural gas pipeline delivery. The Methane Emissions handbook summarizes why methane leaks occur in the context of the natural gas distribution network and identifies existing and emerging leak detection technologies and practices.
Crude by Rail Research for Safe Energy Transport
FE; the U.S. Department of Transportation (DOT), Pipeline and Hazardous Materials Safety Administration; and Transport Canada, Transport of Dangerous Goods Directorate published a Report to Congress on a research study by Sandia National Laboratories (SNL) that investigated physical, chemical, and combustion properties of crude oils, and, in particular, the so-called “tight oils,” like Bakken crude, in response to high-profile accidents involving movement of crude by rail. Based on the results of the study, which assessed vapor pressure as it affects the thermal hazards from the combustion events studied, DOE and DOT found that no further regulations by the Secretaries of Transportation or Energy or further legislation is necessary to improve the safe transport of crude oil with regard to vapor pressure.
Natural Gas Regulation
FE has undertaken many supportive and deregulatory measures in FY 2020 to ensure the long-term benefits of U.S. Liquefied Natural Gas (LNG) exports and America’s global energy leadership in LNG. In FY 2020, FE issued approvals for LNG exports to non-free trade agreement countries to 7 new large-scale projects, including two proposed for the West Coast. Also, in FY 2020, to lock in the long-term benefits of U.S. LNG exports, DOE finalized a policy to extend long-term LNG export authorizations to 2050.
Unconventional Resources
West Virginia University and industry partner Northeast Natural Energy completed hydraulic fracturing of six Marcellus Shale wells at the Boggess pad near Morgantown, WV, utilizing stimulation designs based on innovative logging techniques and advanced modeling. These advanced engineered stage and clustering designs are expected to lead to increased resource recovery confirmed through ongoing production monitoring of the wells.
Hydrogen Technologies
The NETL Gasification Systems Program continued FE progress toward commercializing hydrogen technologies by a FOA focused on R&D that enables commercial approaches for a hydrogen-based energy economy while achieving net-negative CO2 emissions through gasification of coal, biomass, and carbonaceous mixed wastes, such as plastics. The result will be increasingly efficient and fuel-flexible gasification-based plants able to use coal, biomass, and waste plastics for valuable hydrogen and fuels production, which are intended to be integrated with pre-combustion carbon capture to achieve negative carbon emissions.
Coal FIRST Concepts Advance toward FEED Studies
FE completed 13 concept designs and seven pre- FEED (Front End Engineering Design) studies under NETL’s Coal FIRST (Flexible, Innovative, Resilient, Small, Transformative) plant concepts request for proposal, “Coal-Based Power Plants of the Future.” The studies were used to identify three Coal FIRST plant concepts that are nearly ready for a full FEED study, and four additional promising plant concepts that require additional component development efforts. In addition, two FOAs with a combined value of over $100M were issued to solicit cooperative agreements to meet the needs of the Coal FIRST program.
Gas Hydrates–Alaska North Slope
In collaboration with the Japan Oil, Gas and Metals National Corporation (JOGMEC), DOE developed the well design, pressure-core acquisition, and surface facility plans for the next phase on the Alaska North Slope long-term reservoir response experiment to drill three wells in FY 2021 to enable a long-term reservoir response experiment for a duration of 18–24 months. This long-term reservoir response experiment in Alaska utilizing depressurization production technology is the next critical step in advancing the production technology to a point where industry could further develop this potential resource.
Natural Gas Pipelines and Fuel Transportation
DOE advanced research on material properties to determine the performance limits of new and existing alloys for natural gas pipelines and fuel transportation. The examination of advanced alloys and composite materials could support pipe transport of natural gas along with other critical fuels and fluids (CO2, H2), which may reduce delays in the deployment of new pipelines and address Federal and state regulatory commissions’ concerns on using a single pipe to transport new fuels and critical fluids.
Advanced Natural Gas Infrastructure Technology Development
DOE selected 16 research proposals focused on mitigating emissions from midstream natural gas infrastructure to cost-effectively enhance the safety and efficiency of the nation’s natural gas production, gathering, storage, and transmission infrastructure. One of the areas of interest focused on accelerating the development of technologies capable of converting gas that would otherwise be flared into transportable, value-added products.
NETL Researchers Develop New Materials and Processes for Converting Coal to High-Value Products
NETL’s research is enhancing the value of coal as a feedstock and developing cost-competitive, high- value products derived from coal, creating new jobs, products, and markets for the industry. The research team has converted pennies worth of Powder River Basin coal into a C-based precursors and products with market values thousands of times greater. NETL Researchers have produced a high-surface-area carbon material that is ideal for use as a sorbent, solid, or mixed-matrix membrane, or sulfur anion storage cathode in LiS batteries. In addition, the research team also developed a novel manufacturing process for high-quality graphene films used commercially in electronic displays, LEDs, and touchscreens. NETL has filed or is filing a report of invention for each of these developments and is working with Ramaco Carbon to license the technologies.
Coal to Products
NETL developed a comprehensive report entitled, Market Analysis of Carbon Products from Coal, which contains quantitative estimates of market size and growth for carbon products, and information on producers, importers, exporters, and the potential for coal-derived carbon products to satisfy this demand, as well as barriers to market entry.
CO2 Utilization
University of Kentucky Center for Applied Energy Research Develops Electro-Catalytic Process to Produce Formic Acid from CO2 in a DOE sponsored project that uses an immobilized catalyst and a charge carrier to selectively reduce carbon dioxide (CO2 ) directly and exclusively to formic acid. This lab scale system has continuously operated for more than 100 hours. The successful development of this process will produce a valuable product—formic acid—at a lower cost than is currently available, and will reduce the cost of CO2 capture from utility coal- fired power plants.
The Institute for the Design of Advanced Energy Systems Integrated Platform (IDAES) Spearheads Cutting-Edge Research and Modeling. Recent IDAES accomplishments include:
- (1) identifying a process bottleneck at an existing power plant enabling a 44% improvement in the plant’s minimum operating load;
- (2) enabling the optimization of an amine- based post-combustion CO2 process reducing the operating cost by 15-18% using models validated against data from the National Carbon Capture Center;
- (3) reducing the energy demand of a complex separation system by more than 40% through efficient, automated exploration of 42 million alternatives;
- (4) identifying how retrofitting existing generators with energy storage has the potential to reduce equipment wear and tear by 30%; and
- (5) showing that generator interactions with the bulk power market are more complex than previously thought—a finding with the potential to radically change how new power plants are designed and valued. IDAES has thousands of downloads and an active, growing global user community from multiple industries.
Advanced Energy Systems
For the first time in the United States, NETL partner, the University of Central Florida (UCF), detonated coal within a rotating detonation engine (RDE), a pressure gain combustion system. In a separate test, UCF accomplished the first ever detonation wave measurements in an RDE using advanced high-speed laser diagnostics leveraging particle image velocimetry (PIV). This effort demonstrates the potential for using a new, efficient, and clean mode of coal combustion in an RDE. The PIV measurement capability will enable quantification of flow field characteristics which, until now, could only be observed qualitatively or modeled based on theory alone.
SPR Crude Oil Engagements
In response to the severe disruption in crude oil prices caused by the COVID-19 pandemic, DOE provided storage for 21.1 million barrels of crude oil through emergency exchange agreements with U.S. producers. Marking the first time such agreements were initiated, these efforts reduced the growing glut of crude oil that led to significant risks to the U.S. economy. Other activity included sales of 9.85 million barrels of SPR crude oil to meet the requirements of Section 501 of the Consolidated Appropriations Act of 2018 (P. L. 115-141) and Section 403 of the Bipartisan Budget Act of 2015 (P.L. 114-74), raising a total of $566.6M. DOE also completed a $5 million test purchase of nearly 126 thousand barrels of sweet crude oil now stored at the Big Hill site. Finally, as part of DOE’s efforts to improve global energy security, OPR and DOE International Affairs partnered with the Government of Australia to conclude an arrangement for the first-ever SPR storage of crude oil owned by a foreign nation.
Leadership Challenges
Strategic Petroleum Reserve
Determining the right size and configuration for the future of the SPR, whether to include emergency fill operations as a formal SPR mission, and whether to commercialize a portion of the SPR.
Program Direction Investment Levels
Support and approval for an increase in Program Direction is critical to supporting FE’s programs and operations necessary to meet R&D challenges related to clean energy; low carbon; environmentally prudent development and water protection; national energy security; and jobs.
Workforce Recruitment and Retention at NETL
Recruitment and retention of qualified technical staff, according to needs indicated in staffing analyses, to rebalance the workforce; to strengthen and expand Federal competencies and expertise associated with strategic initiatives; to emphasize FE’s S&T mission; and to satisfy a requirement for succession planning to accommodate the potential retirement of 40% of FE’s current workforce in the next five years.
How to transition toward a low-carbon energy future leveraging fossil resources to minimize economic disparities and maintain power quality.
Critical Events and Action Items
Strategic Petroleum Reserve
The Secretary will need to provide the final authorization for the fourth and final Energy Security and Infrastructure Modernization (ESIM) Fund crude oil sale in the spring of 2021. This sale will raise the final $450 million for the $1.4 billion LE2 Project that SPR must have in hand to commit to construction contracts during the spring of 2021.
Office of Minerals Sustainability (OMS)
Secretary of Energy concurrence to elevate a Division of Minerals Sustainability to an Office level to elevate the importance of sourcing domestic resources to strengthen economic security. The function focuses on R&D and analysis that will support the U.S. need for technologies for the exploration, extraction, and processing of critical minerals in the U.S. This would support industries growing demand for these critical minerals in the high tech, automatic, energy storage, renewable energy, and other manufacturing industries.
Selections for Carbon Ore, Rare Earth, and Critical Minerals (CORE-CM) FOA announcement
In September 2020, FE released a $122 million FOA, “Carbon Ore, Rare Earth, and Critical Minerals (CORE-CM) Initiative for U.S. Basins,” that will competitively award R&D innovation centers that will enable multiple regions of the country to accelerate the full potential for carbon ores and critical minerals.
This FOA is currently being drafted and areas of interest are still to be determined. The FOA is also contingent on final FY 2021 Congressional Appropriations. Should the final appropriation not be passed by Congress by February 2021, the FOA will be delayed.
Announcement of winners of the Science- informed Machine Learning to Accelerate Real Time Decisions in the Subsurface (SMART) Visualization Platform (VP) Challenge Prize
The SMART VP Challenge prize competition aims to develop an intuitive data visualization tool for the subsurface environment that can be readily accessible by scientists, engineers, subsurface operators, and decision makers. The tool should work in unison with data generated by the SMART Initiatives machine learning solutions to resolve static and dynamic subsurface properties, features, and processes at scales ranging from sub-meters to hundreds of kilometers. Prize competitors are asked to focus on bringing the subsurface to life through the development of an innovative, user-friendly, intuitive and attractive visualization platform. FE seeks competitors with software development expertise who are up to the challenge of creating a new visualization platform which will assist in making subsurface insights accessible to a wider range of users and stakeholders. The SMART VP Prize Challenge offers up to $1.5 million in total cash prizes.
Organizational Chart
Links
Internal
- Department of Energy
- Department of Energy: Transitions 2020-organization overviews table of contents
- Office of Fossil Energy