G BACH March, 2011 1 I think the reason God made economists is - PowerPoint PPT Presentation

Carbon Capture & Geological Storage Pore Space to Commerciality A Canadian Perspective William D. Gunter G BACH Enterprises Incorporated Edmonton, Alberta, Canada Bill.Gunter@albertainnovates.ca G BACH March, 2011 1

“ I think the reason God made economists is to make sure weather forecasters don’t look so bad” Gordon Thiessen, Former Bank of Canada Governor G BACH

Canada’s Energy Demand and GHG Emissions Primary Energy Consumption in 2007 (total of GHG Emissions by Sector in 2007 12,480 PJ) (total of 747 Mt) Renewables - Electricity Other other Renewables - Generation 9% 6% hydro 17% 11% Agriculture Petroleum 10% 36% Nuclear Built Oil & Gas 8% Environment 11% 10% Oil Sands Coal 5% 11% Transportation Petroleum 22% Products & Natural Gas Chemicals Other Industry 28% 6% 10% Total Exports Fossil fuels provide 75% of Canada energy Canada’s primary $100 B requirements (including energy exports (oil, gas energy needed for fossil and electricity) as share fuel extraction and of total exports (2008) processing Source: Government of Canada

World Oil Reserves – Top 18 Comparison Only 13% of the world’s known oil reserves are accessible to international oil companies. Nearly half of that 13% is in Alberta’s oil sands. Chart: Billion Barrels

Canada Goals for Reducing GHG Emissions • Committed to reduce its GHG emissions 20% below 2006 levels by 2020 and 60-70% by 2050 290 Mt 20% Business as usual emissions Canada’s GHG Goals * Data do not account for recent economic downturn

Greenhouse Gas Mitigation Approach Atmosphere GDP BTU GHG GHG = POP - GHG POP GDP BTU Population Standard of Living Carbon Management Energy Intensity Carbon Intensity G BACH

GHG reduction “wedges” for 20% reductions by 2020 and 65% reductions by 2050 (National Round Table on the Environment and the Economy*) 40% * From report: "Getting to 2050: Canada's Transition to a Low-Emission Future (Nov. 2007)"

Replacing Fossil Fuels: 15 trillion watts global energy production NOT CONSIDERING LAND USE  Solar: only need 0.001 of energy from sunlight to replace fossil fuels  Wind: can only replace a maximum of 10 to 30% of fossil fuels  Ocean currents, tides and geothermal: can only replace a maximum of 2%  Biomass: energy crops (e.g. corn), agriwaste, trees  Hydro: only replace a maximum of 10% G  Nuclear: is a fossil fuel BACH Fox, CSM, Nov. 2010

Energy Sprawl: Land Use Compared to Fossil Fuels & Continuity of Source • Geothermal: 5 times/ continuous • Solar: 10 times/ intermitten • Hydroelectric: 20 times/ continuous • Wind: 30 to 100 times/ intermitten • Trees: 200 times/ continuous • Biofuels (e.g. corn): 300 to 1000 times/ continuous (requires nutrients, poor energy balance) G BACH Fox, CSM, Nov. 2010

CCS is not a cheap solution Power Plant Flue Gas (N 2 + CO 2 ) $ 0.7 – 4/t Separation Compression Pipelining Per 100 km $ 30 - 50/t $ 8 - 10/t System Injection of $ 2 - 8/t Integration? Pure CO 2 Security & Geological Formations G Added Value ? BACH

Cost & Energy Balance for Coal-Fired Power Plants for CCS • Coal-fired power plant efficiency downgraded from ~38% to ~28% (a 25% reduction) • Cost of electricity increase +50% • Cost of CCS ~ $75/tonne gross CO 2 stored G BACH

Sedimentary Basins, Fossil Fuels, Greenhouse Gases, and Geological Storage: A Serendipitous Association • Fossil fuels (oil, gas, and coal) are found in sedimentary basins. • The fluid fossil fuels are transported to traps through aquifers. • During conversion of the fuels to energy, greenhouse gases are created. • Extraction of the fossil fuels have created new storage space (in the subsurface) which can be used for geological storage of greenhouse gases. G BACH

Canada has a natural CCS advantage… Sources Sinks Many large point sources are located near potential storage sites

Important Aspects of Geological Storage • Basin: Plumbing System is adequate • Regional: adequate mix of Reservoirs and Seals • Reservoir: adequate Capacity, Injectivity, Trapping • CO 2 does not Contaminate other subsurface resources • Risk & Monitoring (MMV) • Site Selection • a Business Case for Geological Storage G BACH

CO 2 Geological Storage: Trapping

Hydrogeological Traps

Geochemical Traps • Residual trapping due to two phase flow • Solubility trapping in formation water • Ionic trapping by reaction with minerals • Mineral trapping by precipitation of carbonates • Sorption trapping on coals and shales • CO 2 hydrates G BACH

CO 2 Geological Storage: Risks

Longer Times Resid idua ual l & (e.g. Classical Petroleum Traps)

Monitoring Technologies Seepage Seepage Aircraft Aircraft Aircraft Aircraft Aircraft Aircraft Aircraft Aircraft D Soil Gas Soil Gas Soil Gas Soil Gas Soil Gas Soil Gas Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers e 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Leakge Leakge Pressure Pressure Pressure Pressure Pressure Pressure p Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Logs Logs Logs Logs Logs Logs t Passive Seismic Passive Seismic Passive Seismic Passive Seismic Passive Seismic Passive Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic 3D-Seismic Passive Seismic Passive Seismic Passive Seismic Passive Seismic Passive Seismic Passive Seismic h Migration Migration X-Well Seismic X-Well Seismic X-Well Seismic X-Well Seismic X-Well Seiemic X-Well Seiemic Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Tilt Meter Pressure Pressure Pressure Pressure Pressure Pressure Injected Tracers Injected Tracers Injected Tracers Injected Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Insitu Tracers Logs Logs Logs Logs Logs Logs Injection Rates Injection Rates 0.1 0.1 10 10 100 100 1 1 1000 1000 Time Years Time Years Baseline Operational Operational Closure 20 Chalaturnyk and Gunter, 2004

Steps for a Commercial Geological Storage Site • Site screening (theoretical cap., 1 to 3 years) • Site selection (effective cap., 1 to 3 years) • Initial design (practical capacity, 1 to 3 years, may include pilot) • Final design (matched cap., permitting, 1 to 3 y.) • Site construction (1 to 3 years) • Site operation (5 to 50 years • Post-operation (10 to 20 years) • Long term stewardship (100 years?) G BACH

Geological Storage of CO2 Know what you’re Sometimes it really does looking for ! make sense to just get started ! Source: R. Chalaturnyk, U. Alberta 22

CO 2 Geological Storage Options Regional view

Location of Pilot and Large-Scale Demonstration Plants Fort Nelson CCS Project (Spectra Energy Transmission) Shell Quest Project (Alberta Oil Sands Project Joint Venture) Heartland Area Redwater Project (ARC Resources) Integrated Carbon Capture and Enhanced Oil Recovery (Enhance Energy) Pioneer Project (TransAlta) CO 2 Injection in Heavy Oil Reservoirs (Husky Energy Inc.) Capitol Power (formerly EPCOR): • IGCC power plant • Genesee Post-Combustion In combination with Enbridge: Commercial CO 2 -EOR Operations • Alberta Saline Aquifer Project (EnCana and Apache Canada) IEA GHG Weyburn-Midale CO 2 Monitoring & Storage Project Saline Aquifer Aquistore Project (Petroleum Technology Research Centre Boundary Dam Integrated CCS Project Enhanced Oil Recovery (SaskPower) Source: Rick Chalaturnyk, University of Alberta

Alberta’s Plans • Alberta CCS targets – Alberta ~ 100 megatonnes/year by 2050 = 5 to 25 projects • Overview of Alberta CCS Policies – Crown owns all subsurface pore space and has the right to lease it to third parties for storage purposes – Crown will own CO 2 in the long term after third party has satisfied that the CO 2 is confined per the lease agreement – Penalties for CO 2 emitters will be based on intensity targets – Provide funding for initial commercial demos G BACH

An Alberta Example Heartland Area Redwater Project (HARP) Redwater Reef Characteristics • High capacity for CO 2 storage – 1,000 megatonnes • Proven high injectivity from oil operations – targeted injection rates are 50,000 tonnes CO 2 /day • Formation naturally contained on all sides • Synergies and protection of oil recovery by potentially conducting both EOR and CCS in collaboration • Commercial EOR operation will provide jobs for area residents, royalties to the province and taxes to the federal government • Located immediately adjacent to industrial emissions sources in the Heartland area • Typical of other Leduc Reefs in Alberta

An Alberta Example Redwater SCALE • Country • Basin • Regional • Reservoir G BACH

Redwater

Redwater Oil & Aquifer Storage capacity for CO 2 = 1000 MT