CO2DeepStore“Putting something back��.”
CCS
What’s it all about?
Ian Phillips – Director, CO2 Infrastructure
SPE YP Workshop
Wednesday 20th April 2011, Aberdeen
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Agenda
� Introduction
� CO2 – it's funny stuff!!
� Technology – status, gaps and opportunities
� Power generation
CO capture� CO2 capture
� Compression
� Transportation
� Wells
� Reservoir
� Some common themes
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� First 14 years� oil and gas companies � Shell / Burmah / Marathon
� Next 6 years � service sector� RGU / Halliburton
� Next 5 years
� M.Eng. Petroleum Engineering � Heriot Watt 1983
� MBA � Open University 1994
� Fellow of Energy Institute � Chartered EngineerDirector
Introductions
Ian Phillips
� Next 5 years � small operator - Ramco
� Then 2 years� Oil major - BP
� Since 2007 � Worlds first pure CCS
company � CO2DeepStore
� Director� Carbon Capture & Storage
Association� SPE Aberdeen & Europe
� Chair� Heriot Watt University Strategic
Advisory Board� Young Enterprise Grampian
� Director� Young Enterprise Scotland
� CO2DeepStore is a Scottish company
� founded in 2007 and based in Aberdeen
� focussed entirely on creating, developing and operating CO2 transportation
� Petrofac� A Co-Investing Energy
Services Business
� Designs / Builds / Operates onshore and offshore facilities
Company profile
CO2DeepStore Limited
A CCS Developer
operating CO2 transportation and storage projects as Operator and / or investment partners
� acquired 100% by Petrofac Limited in April 2010
� Company profile (2010 Annual Report)� Revenues US$4.4 billion
� Net cash $1.1 billion
� FTSE 100 – Market cap US$7.4 billion (March 2011)
� 14,000+ employees
� 5 major operating centres
� 19 further offices worldwide
CO2DeepStore Limited
A CCS Developer
RWE
Aberthaw
APL Hunterston
Longannet
Peterhead
Progressive
Teesside
E.ON
Kingsnorth
Yorkshire
Powerfuel (Hatfield Moor)
National Grid (Infrastructure)
B9 (Hatfield)
Alstom (Drax)
Aberthaw
Agenda
� Introduction
� CO2 – it’s funny stuff!!
� Technology – status, gaps and opportunities
� Power generation
CO capture� CO2 capture
� Compression
� Transportation
� Wells
� Reservoir
� Some common themes
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� Oil & gas world
� You take what Mother Nature throws at you
� You design accordingly
CO world
CO2 – it’s funny stuff
See things the other way around
� CO2 world
� You decide what you need
� You process the CO2
accordingly
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Compressor
discharge
temperature range –
Dense Phase
Operations
Pipeline operating
range – Dense
Phase Operations
Reservoir
CO2 – it’s funny stuff
CO2 Operating Envelope
Compressor
discharge
temperature range –
Gaseous Phase
Operations
Pipeline operating
range – Gaseous
Phase Operations
CO2 – it’s funny stuff
CO2 – phase transition
� Starts with visible meniscus between liquid and gaseous CO2
As pressure rises
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� As pressure rises meniscus gradually disappears as fluid transitions to dense phase
� Density
� Gas 1.98 kg/m3 (STP) – denser than air
� Liquid 955 kg/m3 (0°C, 70 bar)
� Solid 1562 kg/m3 (at freezing point)
CO2 – it’s funny stuff
Densities and volumes
� Volumes of CO2 contained in 1 km of 36” pipeline
� Pipeline volume = 192,000 cubic meters
� Gaseous = 0.4 – 10 tonnes of CO2
� Liquid = 184,000 tonnes of CO2
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CO2 – it’s funny stuff
Impact of rising reservoir pressure
Gaseous phase reservoir
Saturated Reservoir
Dense Phase Reservoir
Agenda
� Introduction
� Overview of CCS chain
� CO2 – it’s funny stuff!!
� Technology – status, gaps and opportunities
Power generation� Power generation
� CO2 capture
� Compression
� Transportation
� Wells
� Reservoir
� Some common themes12
Overview of the CCS chain
Typical CCS Project overview
Amine plantPower station Compressor Onshore Pipeline Offshore pipeline Offshore Platform
� Coal fired
� Sub-critical ~35%
� Super-critical ~45%
� IGCC
Synfuel to gas turbine
Technology status – Power Station
Power Generation efficiency
� Synfuel to gas turbine plus steam turbine ~40-45%
� Gas fired
� ~50-55%
� Need to remove
� Particulates
� Sulphur dioxide
� Nitrous oxides
Temperature
Technology status – Power Station
Flue Gas Processing
� Temperature
� Water content
� Proven technology
� Process warranties available
� Long term - flawed technology
Unsustainably high energy
Technology status – Capture
Amine solvent
� Unsustainably high energy consumption
� Consumes 20-25% or power generated
� R&D
� Focussed on reducing energy consumption
� Chemically based
�Cold ammonia, powdered limestone etc
�Unsustainably high energy consumption
� Cryogenic process
Technology status – Capture
Other post-combustion technologies
� Cryogenic process
�Unsustainably high energy consumption
� Nano-filtration
�High temperatures
�Particulates
�Chemical reactions
� Similar levels of efficiency to super-critical coal-fired boilers
� Historically lower levels of reliability
� Lower energy consumption
Technology status – Capture
Pre-combustion technologies
� Lower energy consumption than amine
� Still a high-energy approach as fuel heated to >1100°C
� To split hydrocarbons into H2 and CO
� Fuel is H2
� CO steam shifted to CO2
Wabash River IGCC, Illinois, US
� Oxygen separation at ambient conditions
� Burn fuel plus O2
plus CO2
>90% CO in flue
Technology status – Capture
Oxy-fuel technologies
� >90% CO2 in flue gas
Technology status – Compression
Inter-stage Dehydration
Gaseous phase reservoir
Saturated Reservoir
Dense Phase Reservoir
Technology status – Compression
Final dehydration
� Glycol
� 100 ppm
� Molecular sieves
� <20 ppm
� Potential requirement
� “HIPS” for moisture content – to protect pipeline
� Well understood
� High capital cost
� Likely a shared facility
Technology status – Pipeline Transport
Pipeline Transport
� Many CO2 sources
� Many CO2 sinks
� Major vulnerability
� Moisture content = corrosion
� Transport conditioning
� Compress
� Refrigerate
� Injection conditioning
� Reduce pressure
� Heat
Technology status – Ship Transport
Major energy penalty
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Technology status – Offshore Structure
Platforms
� Minimal / no processing
� Likely unmanned
� Gives ready well access
� BUT
� Ongoing operating costs
� Long operational life
� 40-50 years
� High capital cost
� Difficult to maintain
� Costly well access
� Often long
Technology status – Offshore Structure
Subsea
� Often long operational life
� 40-50 years
� Not natural subsea territory
� Understanding Flow
� 2 phases
� Gravity / geothermal
� Safety
� SSSV
Technology status – Wells
Well technology
� SSSV
� Wellhead ratings
� Monitoring / instrumentation
� Pressure
� Temperature / DTS
� Micro-seismic
Technology status – Reservoirs
North Sea CO2 storage categories
EOR
1.1
Depleted Gas
CO2 storage is limited – CO2 cycles as oil is
recovered – EOR is technically and
commercially challenging offshore
Best initial CO2 storage potential – can be
screened for high integrity – key sites come Depleted Gas
5.1
Aquifer
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Storage capacity of CO2e in Giga Tonnes
Source – Industrial CO2 Emissions and CO2 Storage Potential in the UK - British Geological Survey report for DTI 2006
screened for high integrity – key sites come
available soon.
Greatest long term CO2 storage potential
Major costs to explore, assess and prove
capacity – Major uncertainty regarding CO2
containment
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Technology status – Reservoirs
Depleted gas field
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Map source - United Kingdom Oil and Gas Fields - Commemorative Millennium Volume - Geological Society London
Aquifer injection - Cap rock uncertainty – Storage mechanism uncertainty
Technology status – Reservoirs
Aquifers
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Source – Progressing Scotland's CO2 Storage Opportunities – SCCS 2011
� Depleted hydrocarbon reservoir
� Start with produced volume
� Minus hetrogeneities
Minus residual water
� Deep saline aquifer
� What “capacity” do you measure
� Structural
� Capillary trapping
� Cap rock integrity
Technology status – Reservoirs
Reservoir capacity
� Minus residual water saturation following water influx
� Minus mixing effects (change compressibility)
� Minus maximum recharge pressure
� Plus capillary trapping in water leg
� Cap rock integrity
� Plus dissolution in brine
� CO2 temperature
� Joule Thomson effect
� Drops 1°C per 0.8 bar (12 psi)
� Platform arrival temperature of CO
� Injection pressure differential
� 200-400psi = 14-28bar
� 17-34 °C temperature drop at perforations
Technology status – Reservoirs
Reservoir temperature effects
temperature of CO2
� 4-15 °C (seabed temperature)
� Risk of thermal fracturing
� Injectivity
� Cap rock integrity
� Convection currents in the reservoir
� CO2 plus water = Carbonic acid
� Dissolves cements and some minerals
Change porosity
Technology status – Reservoirs
Reservoir geochemistry effects
Calcite Cement
� Change porosity
� Mobilise fines –reduce permeability
� May reduce injectivity
Deviation = 0.1mm
Feldspar
Technology status – Reservoirs
Overburden considerations
� Oil and gas focus
� Drilling issues
� Target reservoir
� Carbon storage focus
Drilling issues� Drilling issues
� Storage reservoir
� All intermediate formations
� Detection of leaks
� Containment of CO2
Technology status – Reservoirs
Overburden considerations
� Rock integrity
� Hydocarbon production “deflates” reservoir
� Stresses overburden
� Potential for fracturing� Potential for fracturing
� CO2 injection “re-inflates” reservoir
� De-stresses overburden
� Surface movement visible
BP In Salah surface level changes
Agenda
� Introduction
� Overview of CCS chain
� CO2 – it's funny stuff!!
� Technology – status, gaps and opportunities
Power generation� Power generation
� CO2 capture
� Compression
� Transportation
� Wells
� Reservoir
� Some common themes38
Common themes - safety
Leaks and dispersion
• “Jet cooling” effect
• CO2 at -70°C
CO is heavier than air• CO2 is heavier than air
• It goes down!!
• Onshore
• Plant topography an issue
• Offshore
• Don’t launch the lifeboats
• Or fly the helicopter!!
Common themes - safety
CO2 ToxicityCO2
Concentration
in Air (% v/v)
Exposure Effects on Humans
350ppm Normal Normal breathing
2 Several hours Headache, difficult breathing upon mild exertion
3 1 hour Mild headache, sweating, and difficult breathing at rest
4 – 5 Within a few
minutes
Headache, dizziness, increased blood pressure, uncomfortable breathing
6 Several hours Tremors6 Several hours Tremors
6 ≤ 16 minutes Headache, difficult breathing (dyspnea)
7 – 10 1 – 2 minutes Hearing and visual disturbances
7 – 10 1.5 minutes to
1 hourUnconsciousness, near unconsciousness
7 – 10 Few minutes Headache, increased heart rate, shortness of breath, dizziness, sweating, rapid breathing
>10 – 15 1 minute to
several minutes
Dizziness, drowsiness, severe muscle twitching, unconsciousness
17 – 30 Within 1 minute Loss of controlled and purposeful activity, unconsciousness, convulsions, coma, death
Source: DNV report “Mapping of potential HSE issues related to large-scale capture, transport and storage of CO2 “ 2008
Common themes - safety
Asphyxia risk - CO2 displaces O2
Asphyxiation
Stage
Oxygen concentration (% volume) and
Effects on humans
Normal 21% in air (plus 78% nitrogen, 1% argon, 0.035% CO2)
1st 21 to 14% : Increased pulse and breathing rate with
disturbed muscular coordinationdisturbed muscular coordination
2nd 14 to 10%: Faulty judgement, rapid fatigue and
insensitivity to pain
3rd 10 to 6% : Nausea and vomiting, collapse and permanent
brain damage
4th Less than 6% : Convulsions, breathing stopped and death
Source – DNV Report “Mapping of potential HSE issues related to large-scale capture, transport and storage of CO2” 2008
� Major issue is potentially large volumes
� Detection in process plant
� CO2 will accumulate in the low points
� Personal safety of
Common themes - safety
Leak detection - safety
� Personal safety of individuals on plant
� Detection of transportation leaks
� Major leaks – pretty obvious
� Minor leaks – affects
� Humans
� Environment
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� Leaks to environment
� During operations – to detect leaks
� Post-closure – to prove the absence of leaks
� Subsurface monitoring
Verifying CO in store
Common themes - detection
Long term monitoring
� Verifying CO2 in store
� Pressure, temperature, micro-seismic, 3D seismic
� Detecting CO2 movement outside store
� Proving the absence of leaks
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� Phase change points well understood
� Behaviour of two phases of CO2 co-existing is not
� Effects to be studied
� 2 phase horizontal
� 2 phase vertical (up)
� 2 phase vertical (down)
Common themes – CO2 behaviour
2 Phases are complicated
existing is not
� Large volumes complicate things
(down)
� Geothermal and gravity effects in wells
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� Power station
� 20-40 year operating life
� Store monitoring
� Another 20+ years
Project evaluation
Common themes - time
Long term activity
� Project evaluation
� NPV economics not ideal
� Need to consider
� Energy use
� Net CO2 emissions
� Debt finance structure
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Common themes – lots of CO2
EU emissions by country (2008)
958
628
541 527600
800
1000
1200
National Emissions (millions of tonnes of CO2)
541 527
406 396
207
146 141 133 12787 78 73 73 70 67 64 64 49
24 21 20 12 12 10 30
200
400
National Emissions (millions of tonnes of CO2)
� Most CO2 gets dumped to atmosphere for free
� Annual emissions from a power station
� Coal – 10-25 million tonnes
Common themes – Paying for CCS
Its not commercial (yet)
� Gas - 1-5million tonnes
� EU ETS is introducing a cost
� €15-€16 / tonne
� All electricity generation from 2013
� New sectors being added� Airlines / Industrial emissions
� 2000MW power station
� ~£560 million per annum revenues
� Coal-derived emissions
� £100-£300 million per annum at current EUA costs
Available to pay for CCS
Common themes – Paying for CCS
Its not commercial (yet)
�Available to pay for CCS
�BUT £125 million p.a. lost revenue due to amine-related energy penalty
� General view
� Early projects need €100+ per tonne abated
� Long term €40 per tonne abated
� Government subsidies
� EU NER300 (€4-8 bn)
� UK DECC 1 (£1 bn)
� UK DECC 2-4 (£4+ bn)
Australian programme
� UK Electricity Market reform proposals
� Feed in Tariff /
Contract for Difference
Payment linked to
Common themes – Paying for CCS
So how do you make any money?
� Australian programme
� Canadian programmes
� US programmes
� Payment linked to results (g/KWh CO2)
� Funded from general taxation
� BUT new Climate Change Levy structure
� Effectively a Carbon Floor Price
Common themes – urgency
Its getting warm around here
Every year of delay is 1ppm added to the atmosphere
CO2DeepStore“Putting something back��.”
CCS
What’s it all about?
Ian Phillips – Director, CO2 Infrastructure
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