ECONOMICS

What is the payout for installing a ZerO2 system?

  • Due to the low up front installation costs, a leased ZerO2 E300, pays out between the first and second month.
  • If purchased, a ZerO2 E300 operating at full capacity, processing 300 mcf/d, will pay out in 6 months. At a typical hyperbolic decline profile, pay out occurs in month 9.  With the added financial benefits of gas processing, payout periods are reduced to 2 months.
  • Vapor recovery volumes and economics are best if the system is installed prior to site start up.

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How is ZerO2 superior to gas blanketing, which appears to be less costly?

  • Gas blanketing typically has been used to prevent potential explosive situations where oxygen is present. It is not designed for vapor recovery. For the typically rich tank vapor, there would need to be greater than 90% air (or greater than 18% oxygen) with the hydrocarbon vapor to create an explosion risk.  Pipeline specifications for oxygen are much lower, at 10 ppm, or 0.001%.
  • There are many ways oxygen can enter a low-pressure tank: open or leaking hatches, inadequate seals, improper fittings and flanges, vacuum relief due to temperature changes, and VRU suction being some of the more common.  Operators have had mixed results with blanketing, but if there is sufficient produced gas upstream of the tanks to commingle with the tank vapor at custody transfer then dilution can blend down the oxygen.
  • One downside of using gas blanketing is that it holds pressure in the tank and can increase potential venting when the tank pressure limit is .
  • The ZerO2 is a guaranteed solution for oxygen ingress since it controls tank pressures and directly removes O2 up to 3.5% on a continuous basis. The need to inspect seals and find leaks, or install and maintain a blanket, are no longer an ongoing requirement and all tank vapors (oil, condensate and water) can be sold without concerns about oxygen.

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How will we benefit from ZerO2 if we are already using a gas blanket?

  • The gas supplied to maintain the blanket is not always recovered, resulting in a loss of gas sales. However, with ZerO2, all the gas will be recovered.
  • Blankets maintain tanks at a higher pressure but do not always prevent oxygen ingress from leaks and faulty seals.
  • With the ZerO2, tank pressures can be controlled at low levels as opposed to holding higher tank pressures with a blanket.
  • The ZerO2 ensures all oxygen is destroyed and full gas capture from not only oil tanks, but water tanks and tanker trucks as well.

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How is ZerO2 superior to a conventional VRT technically, and which provides better value?

  • The vapor generated at an oil and gas site has several sources:
    1. Flashing of the oil stream to vapor as pressure is reduced at storage
    2. Vapor in the produced water, from gas entrained in the water or the flash of remaining oil and the water stream.
  • Tank breathing, or expansion and contraction of the vapor volume, occurs as ambient temperatures change relative to the temperature in the tank. The effect is a change in vapor volume.
  • A vapor recovery tower only receives the produced oil. Vapors not captured by the VRT include vapor flashing from the oil downstream of the VRT, gas entrained in the produced water, and vapor released by tank breathing effects.
  • VRTs are designed with a short oil retention time of 20-30 minutes, whereas tanks retain oil for hours or even days, allowing for maximum separation of gas from the oil. Given that VRTs have a fixed capacity, variations in well-by-well production rates can result in the tower being undersized, causing inefficient separation and/or oil carryover.
  • Field data collected by EcoVapor indicates that VRTs typically capture 60% to 80% of the total vapor volume. These figures represent the measured amount of gas captured by the VRT to the amount of gas passing through a ZerO2 when pulled from the tanks without a VRT.
  • While a VRT typically costs less than a ZerO2 system, overall profitability is higher with full tank vapor capture using the ZerO2. One operator reported that the net present value of their ZerO2 investment was twice that generated by their traditional VRT setup.

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Do you sell or lease ZerO2 units?

  • We primarily lease units, E300 (300 mcf/d) and E100 (100 mcf/d) with the exception of our larger E1200 (1200 mcf/d) units.  As previously mentioned, the lease option results in a very short pay out due to the the increase in recovered high-Btu vapor.  Leasing also allows the operator to transition to a lower capacity E100 unit when volumes fall below 100 mcf/d, the continuum solution.

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Is ZerO2 designed primarily for central production facilities (CPF) [rather than individual well pads]?

  • The ZerO2 is used at both well sites and central production facilities. It is more commonly deployed at CPF’s due to the larger vapor volume that can be recovered and sold.

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Is ZerO2 typically used as a standalone system or in combination with a VRT?

  • Although ZerO2 can be used standalone or in series with a VRT, the VRT is no longer required because all the vapor on site can be captured directly from the storage tanks.

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What happens when the gas rate at my wellsite/facility declines?

  • ZerO2 units have at least a 4:1 turndown ratio, so they can operate across a wide range of single well and multi-well productivity. At the point where declining vapor production can be handled by a smaller capacity vapor recovery system, the operator can downsize to a smaller ZerO2 and VRU and continue to benefit from gas capture.

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COSTS RELATED TO THE ZERO2

What makes up the cost of a ZerO2 unit?

  • Primary costs in the manufacture of the ZerO2 are the vessel, control panels, immersion heater, and precious metal catalyst.

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How much does it cost each time we need to change the ZerO2 catalyst?

  • Provided the catalyst has not been damaged by hydrogen sulfide (H2S) or liquids and can be regenerated, a catalyst change for the ZerO2 E300 costs around $6,000. This will vary due to the amount of catalyst needed, current catalyst pricing, and location of the unit.
    • An E1200 contains roughly three times the amount of catalyst in an E300, so will cost about $18,000 to replace.

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What services do you provide as part of the ZerO2 lease agreement?

  • Our standard lease agreement includes catalyst changes. Repairs and sensor calibrations are offered at our standard labor and materials rates.

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What additional costs might I face in addition to the ZerO2 lease agreement?

  • The lease price does not include freight delivery to site nor commissioning.
  • We recommend purchasing a scrubber to run upstream of the ZerO2 and a sales line back pressure control regulator.
  • A licensed electrician is required to connect 480 VAC power to the ZerO2 electrical panel.
  • We recommend quarterly calibration of the oxygen sensors, which can be performed by EcoVapor or the operator.

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PRODUCT SPECIFICATIONS & FEATURES

Do you offer a packaged system with both a VRU and a ZerO2 unit?

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Do you make a smaller unit than E300 that can handle lower gas volumes?

  • Recognizing the decline profile of a typical well, EcoVapor has developed solutions to provide an emissions recovery for the life of the wellsite.  In 2021, we will be adding an E100 to our lineup, designed to treat 25 to 100 mcf/d.  Additional products will be available to treat facilities producing volumes below that range.

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How straightforward is the ZerO2 installation process ?

  • An installation manual is available for download on our website.
  • ZerO2 skids are 4’ x 6’ or smaller. The weight of an E300 skid is 3,200 lbs loaded with catalyst. The units require a graded location, preferably near the VRU, and a forklift or telehandler for setting the skid.
  • EcoVapor highly recommends a scrubber be installed immediately upstream of the ZerO2 to capture oils and liquids, which can damage the catalyst.
  • Electrical requirements for the ZerO2 are 3-phase, 60 Hz, 480 VAX, with a 60A breaker. Panel supply is 24 VDC, 5A.
  • Inlet and discharge piping is all 2”. EcoVapor recommends the use of a back pressure regulator downstream of the ZerO2 to maintain constant pressure on the unit and to prevent damage to downstream equipment if flow is diverted.

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How much downtime will I incur during ZerO2 installation?

  • ZerO2 installations at new sites can be incorporated into the existing site construction plan without incurring any delay.
  • When retrofitting an existing site with a ZerO2 system, installation and commissioning takes one to two days. Wells do not have to be shut in during installation.

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How much downtime will I experience using a ZerO2 system?

  • ZerO2 units have a measured uptime of 99% or greater. Downtime usually results from power interruptions and downtime of the VRU.

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How frequently does the Zer02 catalyst need to be replaced?

  • The catalyst is not consumed during operation, but exposure to solids and liquid droplets over time causes the catalyst bed to lose surface area and effectiveness.
  • This typically means the ZerO2 catalyst has to be changed after 12 to 18 months, although some units have operated for over 2 years without needing a catalyst change.
  • EcoVapor remotely monitors the performance of its units. Gradually rising oxygen concentrations at the outlet allows us to predict when a changeout is required.

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How much gas can ZerO2 treat before the catalyst has to be replaced?

  • Catalyst replacement is not a function of gas throughput. Exposure to solids and liquid droplets causes the catalyst to lose surface area and effectiveness, eventually requiring a catalyst change.

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Do you sell ZerO2 units without the controller? (PLC)

  • No, we do not sell ZerO2 units without the programmable logic controller.

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What happens to the oxygen that ZerO2 removes from my gas stream?

  • The ZerO2 catalytic reaction mirrors the combustion process, resulting in the conversion of oxygen into carbon dioxide and water. Although it depends on the specific gas composition being treated, the split between CO2 and H2O is roughly 50% each.  For example, if there are 50 parts per million of oxygen in the inlet gas stream, there will be approximately 25 parts per million of both carbon dioxide and water in the outlet gas stream.
  • The CO2 and H2O remain in the discharge gas stream and do not present an issue since pipeline specifications for CO­2 are normally 2% (20,000 ppm).

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Are ZerO2 systems able to handle hydrogen sulfide? (H2S, sour gas)

  • EcoVapor offers a hydrogen sulfide treating system (Sulfur Sentinel) that can be operated upstream of as well as the ZerO2 in situations where more than 4ppm of H2S is anticipated.
  • ZerO2 systems standalone can only handle up to 4 ppm of H2S in the inlet gas stream.

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What is the turndown ratio of a ZerO2 unit?

  • ZerO2 units have a turndown ratio of 4:1.

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How much power is required to operate a ZerO2 unit?

  • The E300 uses 45 to 50 kW on startup and typically requires 10 to 15 kW during normal operation. Because the catalytic reaction is exothermic, higher levels of oxygen in the input gas stream help to reduce power draw.

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What is the maximum (peak) oxygen level that a ZerO2 unit can handle?

  • ZerO2 units can handle 3.5% oxygen in the input gas stream on a continuous basis and 5.0% intermittently. During truck loading, oxygen levels may exceed 5% and best performance may be achieved by diluting the tank vapor stream with produced gas from the site.

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How many ZerO2 units are currently in service?

  • There are roughly 120 units operating in the Permian Basin, Rockies, and Mid-Continent regions.

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How many operators are using ZerO2 units?

  • EcoVapor has supplied ZerO2 units to over 20 customers, including independents, majors, super-majors and gas gatherers. Shell is our largest customer of E300 and E1200 units.

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What sensors are packaged with the ZerO2 unit?

  • We provide an outlet oxygen sensor on each ZerO2 unit.
  • We recommend that tank pressure be managed with the addition of a pressure transducer on the tank battery. This information is used by the PLC to manage the variable frequency drive on the VRU, controlling tank pressures within a range of 1 to 2 ounces per in2.

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What data does the ZerO2 unit collect?

  • Operating data captured on each ZerO2 unit includes power usage, temperatures, and oxygen concentration at the outlet.
  • This data can be supplied to the operator via their existing SCADA or communications system.

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What can cause the ZerO2 unit to shut down or fail?

  • The most common reasons for inoperability of the ZerO2 unit are power loss and VRU downtime.
  • If the catalyst bed temperature drops below the required reaction temperature, a diverter valve is used to recycle the vapor stream to the tanks until the ZerO2 unit heats up sufficiently.
  • If high catalyst bed temperature results from excessively high continuous oxygen concentrations in the inlet stream, an ESD valve at the inlet will close to protect the ZerO2.

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What happens when the ZerO2 unit fails or goes offline?

  • If the ZerO2 unit goes offline, production continues uninterrupted as the flash gas vapors are automatically re-directed to a flare or combustor.
  • A diverter valve can be used to recycle the vapor stream to the tanks while the ZerO2 is heating up or being restarted.

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Can the ZerO2 be installed in such a way as to receive gas from low pressure source other than the oil tanks?

  • Yes, we have operated ZerO2 units with a dual inlet to receive vapor streams from both the low-pressure separator and tanks upstream of a VRU.

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Is there a method allowing the ZerO2 to capture tank truck emissions?

  • Yes, truck loading vapor is currently being captured and processed through a ZerO2 unit at several sites. The truck vapor return line is connected to the tanks, from where the ZerO2 system captures the gas concurrently with tank flash vapors.  If necessary, we install a gas make-up line upstream of the ZerO2 to dilute unusually high levels of oxygen that can occur during truck loading operations. All of the gas is still captured and sold.

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What is the maximum operating pressure?

  • MAWP is 330 psig at 800°F.

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Are there other applications where the ZerO2 technology is used?

  • EcoVapor has deployed ZerO2 units at multiple Salt Water Disposal sites to eliminate the risk of explosion or fire caused by lightning and hydrocarbon vapor. The ZerO2 unit ensures an oxygen-free vapor blanket in the storage tanks.
  • Other applications of interest include full produced gas stream recovery, biogas production, coal-bed methane recovery, and midstream processing operations.

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