Presentation to UKCCSRC Nottingham September 2013

Status of CCS in Australia – September 2013

Peter Cook Principal Advisor ,CO2CRC Professorial Fellow, University of Melbourne

Presentation

• Global review focussing on pilot projects

• Status of CCS in Australia • Projects in Australia focussing

on the Otway project • Why undertake pilot projects?

Title slide goes here

Dennis van Puyvelde Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC)

,Canberra Australia Presentation to the CSLF Technical Ground Saudi Arabia, January 2008

Developing a small scale CO2 test injection: Experience to date and best practice

P. Cook, R. Causebrook, K. Michael, M. Watson Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC)

© CO2TEC

and John Gale IEAGHG September 2013

Total amount of CO2 stored to date or planned – all projects

Small scale

Large scale

100K

Small scale projects: Completed, operational and planned

CO2 injected in small scale projects - logarithmic scale (Cook et al 2013)

Injection depths for small scale projects.

800m or less

2000m

Indicative cost of small scale projects in US$ (2013). Note the use of a log scale (Cook et al 2013)

Small scale projects: Completed, operational and planned

Current status of CCS funding in Australia LNG Gorgon ~$2 billion (in ~$50 b project) 2015-2016; industry -funded Flagship Program was $2b in 2009 but now $1.18b; feasibility studies underway :South West ($64m) and CarbonNet ($100m); decision in 2014-2015 likely on one project with 1/3:1/3: 1/3 funding formula National Low Emission Coal Initiative $280m over approx 5 years: Callide Oxyfuel; various capture projects; storage assessments; also $20m for Aus-China initiative and $9m for Greenmag (mineralisation); infrastructure GCCSI one -off grant of $270m in 2009-2010 R&D ANLECR&D $150m (2010-2016) –competitive funding Education Infrastructure Fund NGL $48m; CCSNET 52m Ongoing funding - CO2CRC, CSIRO The future A new government will re-examine some of these in the light of fiscal constraints; abandonment of a carbon price in favour of “direct action”; curtail GCCSI ?

CCS Projects in Australia

Gorgon

• AU$50 Billion dollar LNG project with CCS led by Chevron

– 3-4 Mt/yr CO2 separated and stored in overlying saline formation ( Dupey Formation)

– $2 billion for storage

– Construction on Barrow Island

• Storage project 3-4 mtpa

• Commencing 2015-2016

CCS Projects in Australia

Callide Oxyfuel Project, Queensland

• Retrofit of an existing 30MW coal-fired unit for an oxyfuel pilot project.

• 20,000 over 2 years

• Commenced 2011

• Small scale injection under consideration

Evaluation of post-combustion capture technologies by CO2CRC

Solvent absorption

CCS Projects in Australia

South West Project Harvey No 1 Well

Major assets - National Geosequestration Laboratory

• Organic and inorganic geochemistry laboratories • Sensors laboratory • Rock mechanics, including petrophysics, core

flooding and computer tomography • CO2 processing and sequestration laboratory • Mobile (containerised) geophysical and

geochemical laboratories • 3D immersive visualisation • Surface and down-hole seismic sources • Seismic recording and geophysical data

acquisition • Environmental (shallow groundwater, soil and

atmospheric) monitoring • Calibration and training facilities, including a

1,000m borehole at ARRC • “In situ” laboratory

Location of key assets: CarbonNet and CCSNet

CARBONNET

ANU Adelaide

CCSNET

Peter Cook Centre

CCSNET has 3 components: The Otway Subsurface Laboratory (OSL) $19M.

The Gippsland Monitoring Network (GipNet) $7M.

The Australian CCS Research Laboratories Network (CCS LabNet) $25M.

Key Items for Demonstration

Relative research effort within the Otway and Gippsland Basins

Buried receiver array

CRC-1 CRC-2

2B Perf

2C Perf

Splay fault

Injection zone

Monitoring zone Monitoring zone

Res on Res Juxtaposition

P/T

P/T

P/T

Fault seal testing

P/T

P/T

P/T

Naylor South Fault (NSF)

Paarratte

Splay (Synthetic) Fault (SSF)

CRC-2 CRC-1 Naylor-1

Possible injection (NSF)

Possible injection (SSF)

Possible injection (SSF)

Proposed CRC-3

Existing CRC-2

CO2 plume Injection point

2x lateral well monitoring sheet

Top seal

1440m

1330m

1720mTVD

Receiver Array

~700m (kick off)

~1300m (landing)

U-Tube & P-T gauges

~deviated to ~NW

~1432m

133/8”

75/8”

Fibreglass casing

Chrome steel casing

~500m

~1520m

CRC-3z

CRC-3x&y

CRC-1

CRC-2

CRC-3

Naylor-1

N

NW SE

Inset A

Predicted plume distribution

1

2

3 4

Seal

Reservoir

Abandoned injection well

sc-CO2

CO2-enriched water CO2-saturated water and residual CO2 within plume footprint Reservoir saturated with original formation water

1: Reservoir / Seal rock reactions with scCO2 2: CO2 dissolution into formation water and induced convective mixing

3: CO2-enriched water reacting with reservoir rocks 4: CO2-saturated water reacting with reservoir rock

Types of geochemical processes

1. Fluid-rock reactions, fluid and mineral trapping of CO2

2. Development of subsurface monitoring techniques 3. Development of leakage mitigation (barriers) technology 4. Microbial response to CO2 in reservoir

CO2 saturation Fault

Injection Reservoir: Microbial response to CO2

Monitoring: Pressure In situ pH & pCO2 Stable isotopes

Induced barrier formation

Research opportunities in capture and storage at the Peter Cook Centre for CCS Research, University of Melbourne PhD positions (geochemistry, geomicrobiology, fluid flow, basin modelling) contact: Prof Ralf Haese, ralf.haese@unimelb.edu.au McKenzie post-doctoral research fellowships: Applications close 9 September ! http://mro.unimelb.edu.au/content/mckenzie-fellowships

CO2CRC Otway Project Australia’s first demonstration CO2 storage project

Australia’s only operational storage project and a world class research facility, that has safely stored 65,000 t of CO2 as part of Otway 1, and attracting wide community interest and support. CO2CRC Otway 2 is now underway

31

Supporting Partners: CANSYD Australia | Government of South Australia | Simon Fraser University

INDUSTRY AND GOVERNMENT PARTICIPANT FUNDERS

RESEARCH PARTICIPANTS

CO2CRC Otway Project Participants

Location of CO2CRC Otway Project

Otway geological model

Schematic stratigraphic column of Otway Basin

CO2CRC Otway Project Aerial View

Naylor-1Monitoring well CRC-1

injection well

0 300m

Geological Model at Reservoir Scale

CO2 Injection well

Observation well

CO2 accumulation

Modeling migration of carbon dioxide within the reservoir

CO2 accumulation

Observation well

CO2 injection well

Injection phase - prediction

Arrival: 4-8 months

Naylor-1 Site

” ID; 27 ’

-

Rod 0.75 ” ” ”

2040 m Depth

” I.D.

80 o C 17 MPa (2500psi)

2055 m

2050 m

2045 m

2030 m

2025 m

2020 m Integrated Bottom hole Assembly Naylor 1

Total Depth: 2060 m

Perf 2028 to 2032

Perf 2039 to 2055

Packer

Geophone with clamp (1.125 V - 1.5 ” ? 3C)

Hydrophone (1.25 ” )

Pressure/Temp and U - tube Inlet

Geophone with clamp (1.125 V - 1.5 ” ? 3C)

Hydrophone (1.25 ” )

Pressure/Temp and U - tube Inlet

Integrated

Gas Water

•

• - –

• -

•

Figure X – U-tube surface facility (yellow container) – above

Figure X – Isotube sample cylinder – left

Figure X – Inside the u -tube surface facility - right

Downhole fluid sampling from 2 kilometers

Naylor CO2 sampling data

Monitoring at the CO2CRC Otway site

Seismic monitoring • Range of seismic

techniques • Vertical Seismic

Profiling (VSP) (source surface, receiver downhole)

• High Resolution Travel time

• Microseismic surveys (measures creaks in the subsurface)

The CO2CRC Otway Project - Stage 2

Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) All images copyright

CO2CRC unless otherwise specified

Coalmining V Farmers Pilot project facilities Otway

The CO2CRC Otway Project - Stage 2

CO2CRC Otway Project - Stage 2B

• Investigated CO2 storage in saline formations

• Tested for residual trapping of CO2 (residual gas saturation test)

• Refining the suite of scientific methods and monitoring techniques used at the Otway Project

• Improving accuracy of estimates of how much CO2 can be stored.

What have we done?

Trapping in a saline formation Residual trapping is where small amounts of CO2 are disconnected from each other, trapped in the pore space.

Stage 2b – Residual Saturation Tests

• Objective: Determine the residual CO2 saturation, Sgr • Five (5) independent measurement approaches to determining

residual trapping: – Thermal test

– Tracer test

– History matching injection and production

– Saturation logging using wireline Saturation Tool

– Dissolution Test

Downhole instrumentation to measure reservoir conditions

Residual trapping “All three RST logs were run as intended. Two of the logs were run in a standard water environment, the other log was when CO2 was in the tubing hence was run in a CO2 environment. The latter log will require some additional considerations for a complete interpretation. Current interpretation has residual CO2 saturation around 0.18 in the lower half of the perforated interval and around 0.23 (average) in the upper” (Paterson et al)

Small scale projects: Completed, operational and planned

1 Why undertake a pilot project? • Low cost on-the-job learning opportunity for technicians, engineers,

scientists, managers.

• Decrease technical uncertainty and risk prior to embarking on a large-scale project.

• Provides impetus to regulators to confront regulatory issues because there is a real project (even if small to medium sized).

• Test equipment (and knowledge boundaries) at a modest scale, in a way that could not be contemplated for a large scale project.

• If being pursued through an industry partnership, it provides a real-world working relationship for the partners.

• Tests legal and other agreements in a relatively benign atmosphere where there is not a lot of money at stake.

2 Why undertake a pilot project? • Provides tangible evidence that CCS is moving ahead, despite the

slow pace of progress on large scale projects

• Exposed to working with a real community and understanding how to communicate with and listen to the community.

• Provides opportunity for politician, bureaucrats and community leaders to visit and understand.

• Encounter (and overcome) real world operational problems such as maintaining CO2 injectivity, ensuring there is no formation of CO2 hydrates, handling contaminants, testing for brittleness in pipes and running compressors under multiphase conditions.

• Able to test monitoring options under operational conditions and assess the practicality of the various techniques as well as develop new techniques.

•