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

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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

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March, 2011

“ 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

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Petroleum 36% Natural Gas 28% Coal 11% Nuclear 8% Renewables - hydro 11% Renewables -

• ther

6% Oil & Gas 11% Transportation 22% Electricity Generation 17% Oil Sands 5% Petroleum Products & Chemicals 6% Other Industry 10% Agriculture 10% Other 9% Built Environment 10%

Canada’s Energy Demand and GHG Emissions

$100 B Total Exports Primary Energy Consumption in 2007 (total of 12,480 PJ) GHG Emissions by Sector in 2007 (total of 747 Mt)

Fossil fuels provide 75% of Canada energy requirements (including energy needed for fossil fuel extraction and processing Canada’s primary energy exports (oil, gas and electricity) as share

• f total exports (2008)

Source: Government of Canada

World Oil Reserves – Top 18 Comparison

Chart: Billion Barrels

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.

• Committed to reduce its GHG emissions 20% below

2006 levels by 2020 and 60-70% by 2050

Business as usual emissions Canada’s GHG Goals

20%

* Data do not account for recent economic downturn

290 Mt

Canada Goals for Reducing GHG Emissions

Greenhouse Gas Mitigation Approach

Atmosphere

GHG = POP GDP POP BTU GDP GHG BTU

• GHG

Population Standard of Living Energy Intensity Carbon Intensity Carbon Management

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* From report: "Getting to 2050: Canada's Transition to a Low-Emission Future (Nov. 2007)"

40%

GHG reduction “wedges” for 20% reductions by 2020 and 65% reductions by 2050

(National Round Table on the Environment and the Economy*)

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

• nly replace a maximum of 2%

Biomass: energy crops (e.g. corn), agriwaste, trees Hydro: only replace a maximum of 10% Nuclear: is a fossil fuel

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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)

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Fox, CSM, Nov. 2010

CCS is not a cheap solution

Power Plant Flue Gas (N2 + CO2)

Separation Compression Pipelining Injection of Pure CO2

Geological Formations

$ 8 - 10/t $ 2 - 8/t $ 0.7 – 4/t Per 100 km

System Integration?

$ 30 - 50/t

Security & Added Value ?

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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 CO2

stored

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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.

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Canada has a natural CCS advantage…

Many large point sources are located near potential storage sites

Sources Sinks

Important Aspects of Geological Storage

• Basin: Plumbing System is adequate
• Regional: adequate mix of Reservoirs and

Seals

• Reservoir: adequate Capacity, Injectivity,

Trapping

• CO2 does not Contaminate other subsurface

resources

• Risk & Monitoring (MMV)
• Site Selection
• a Business Case for Geological Storage G

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CO2 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
• CO2 hydrates

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CO2 Geological Storage: Risks

Resid idua ual l &

Longer Times

(e.g. Classical Petroleum Traps)

20 3D-Seismic Tilt Meter 3D-Seismic Passive Seismic X-Well Seiemic Tilt Meter Pressure Injected Tracers Insitu Tracers Logs 3D-Seismic Passive Seismic X-Well Seismic Tilt Meter Pressure Injected Tracers Insitu Tracers Logs Injection Rates 3D-Seismic Passive Seismic X-Well Seismic Tilt Meter Pressure Insitu Tracers Logs 3D-Seismic Tilt Meter 3D-Seismic Tilt Meter Pressure Insitu Tracers Logs Passive Seismic 3D-Seismic Tilt Meter Pressure Insitu Tracers Logs Passive Seismic 3D-Seismic Tilt Meter Pressure Insitu Tracers Logs Passive Seismic Aircraft Insitu Tracers Aircraft Soil Gas Insitu Tracers Aircraft Soil Gas Insitu Tracers Aircraft Soil Gas Insitu Tracers

Time Years

Migration Leakge

Seepage 0.1 1000 100 10 1

3D-Seismic Tilt Meter 3D-Seismic Passive Seismic X-Well Seiemic Tilt Meter Pressure Injected Tracers Insitu Tracers Logs 3D-Seismic Passive Seismic X-Well Seismic Tilt Meter Pressure Injected Tracers Insitu Tracers Logs Injection Rates 3D-Seismic Passive Seismic X-Well Seismic Tilt Meter Pressure Insitu Tracers Logs 3D-Seismic Tilt Meter 3D-Seismic Tilt Meter Pressure Insitu Tracers Logs Passive Seismic 3D-Seismic Tilt Meter Pressure Insitu Tracers Logs Passive Seismic 3D-Seismic Tilt Meter Pressure Insitu Tracers Logs Passive Seismic Aircraft Insitu Tracers Aircraft Soil Gas Insitu Tracers Aircraft Soil Gas Insitu Tracers Aircraft Soil Gas Insitu Tracers

Time Years

Migration Leakge

Seepage 0.1 1000 100 10 1

Chalaturnyk and Gunter, 2004

Closure Operational Operational Baseline

Monitoring Technologies

D e p t h

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?)

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Geological Storage of CO2

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Know what you’re looking for ! Sometimes it really does make sense to just get started !

Source: R. Chalaturnyk, U. Alberta

CO2 Geological Storage Options

Regional view

CO2 Injection in Heavy Oil Reservoirs (Husky Energy Inc.)

Enhanced Oil Recovery Saline Aquifer

Pioneer Project (TransAlta) Capitol Power (formerly EPCOR):

• IGCC power plant
• Genesee Post-Combustion

In combination with Enbridge:

• Alberta Saline Aquifer Project

Fort Nelson CCS Project (Spectra Energy Transmission) Heartland Area Redwater Project (ARC Resources) Aquistore Project (Petroleum Technology Research Centre Integrated Carbon Capture and Enhanced Oil Recovery (Enhance Energy)

Location of Pilot and Large-Scale Demonstration Plants

IEA GHG Weyburn-Midale CO2 Monitoring & Storage Project

Shell Quest Project (Alberta Oil Sands Project Joint Venture) Commercial CO2-EOR Operations (EnCana and Apache Canada) Boundary Dam Integrated CCS Project (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 CO2 in the long term after third party has satisfied that the CO2 is confined per the lease agreement – Penalties for CO2 emitters will be based on intensity targets – Provide funding for initial commercial demos

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An Alberta Example Heartland Area Redwater Project (HARP)

Redwater Reef Characteristics

• High capacity for CO2 storage – 1,000 megatonnes
• Proven high injectivity from oil operations – targeted injection

rates are 50,000 tonnes CO2/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

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Redwater

Storage capacity for CO2 = 1000 MT

Redwater Oil & Aquifer

Alberta Industrial Heartland Redwater Reef

Heartland / Redwater

– reef directly adjacent to existing and planned oilsands upgrading facilities; – CO2-EOR opportunities – Potential to store 20+ years of planned

• ilsands-related emissions in region

Courtesy of ARC Resources

HARP – Heartland Area Redwater Project

HARP is a two stage demonstration project designed to validate the suitability of the Redwater reef for safe, long- term sequestration of CO2. HARP is a joint initiative between ARC Resources, the Alberta Research Council, and several government and industry partners.

Large Scale Deployment of CC&S Possible in North America

J.J. Dooley, Battelle, Pacific Northwest Lab (2005)

Large-scale Canadian integrated CCS Demos

PROPONENTS PROJECT NAME PROV. PROJECT TYPE / SOURCE OF CO2 CAPTURE TECHNOLOGY CO2 CAPTURED (Mt/y) STORAGE TOTAL PROJECT COST ANNOUNCED PUBLIC FUNDING ($M) OPERA- TIONAL BY EnCana Corp Apache Canada Weyburn EOR Project Midale EOR Project SK Commercial EOR CO2 from coal gasification plant in North Dakota Methanol-based physical solvent (Rectisol) 2.4 0.5 EOR EOR $1.3 B $120 M None None 2000 2005 SaskPower Boundary Dam Integrated CCS Demonstration Project SK Coal-fired electricity generation (retrofit) Post-combustion amine 1 EOR $1.4 B

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(GOC, Mar 2008) 2015 Shell Canada (on behalf of the Alberta Oil Sands Project Joint Venture) Quest CCS Project AB Oil sands upgrading (SMR of natural gas) Activated amine technology (ADIP-X) 1.1 Saline aquifer $1.35 B

865

(GOC, AB Oct 2009) 2015 TransAlta Corp. Project Pioneer AB Coal-fired electricity generation (retrofit) Alstom post- combustion chilled ammonia process 1 Saline aquifer and/or EOR ~ $1 B

779

(GOC, AB Oct 2009) 2015 Enhance Energy Inc. Alberta Carbon Trunk Line AB CO2 trunk pipeline to carry CO2 from multiple industrial sources Fertilizer plant: pure CO2 Gasification: acid gas removal/Rectisol process Initially 1.6 with potential to grow to 14.6 EOR $1.1 B

558

(GOC, AB Nov 2009) 2012 Spectra Energy Transmission Fort Nelson CCS Project BC Natural Gas Processing Conventional acid gas separation technology 1.0-2.0 Saline aquifer 3.4 (BC) 2013 Swan Hills Synfuels Insitu Coal Gasif. AB Gas-Fired Elect. N/A 1.3 N/A 285 (AB) 2015

Source: R. Chalaturnyk, University of Alberta

Canadian FEED studies and pilot projects

PROPONENTS PROJECT NAME PROV. PROJECT TYPE / SOURCE OF CO2 CAPTURE TECHNOLOGY CO2 CAPTURED (Mt/y) STORAGE TOTAL PROJECT COST ANNOUNCED PUBLIC FUNDING ($M) ARC Resources Heartland Area Redwater Project (HARP) AB Storage site characterization N/A Pilot injection Saline aquifer Capital Power Corp. Integrated Gasification Combined Cycle project (Genesee) AB Coal-fired electricity generation (new) Acid gas removal FEED study N/A $33 M 22 (GOC, AB) Husky Oil Operations CO2 - EOR pilot project in heavy oil reservoirs SK EOR in thin, shallow heavy oil reservoirs N/A Pilot injection EOR (in new type of

• il reservoir)

Petroleum Technology Research Centre (PTRC) Aquistore project SK Storage site characterization N/A Pilot injection Saline aquifer 25 M 5 (SDTC)

• R. Chalaturnyk, University of Alberta