CO2CRC Otway Project - IZ Klima

DEMONSTRATION AND DEPLOYMENT OF
CARBON DIOXIDE CAPTURE AND STORAGE IN
AUSTRALIA – THE CO2CRC OTWAY PROJECT
Mr. David Hilditch
Commercial Manager
Cooperative Research Centre
for Greenhouse Gas
Technologies (CO2CRC)
IZ Klima e. V.
CCS-A NECESSITY FOR CLIMATE
PROTECTION - Berlin
January 23 rd 2009

CO2CRC collaborative research involves 33 partner organisations, more
than 100 researchers and a budget of more than A$20M per annum

CO2CRC Participants
Supporting participants: Department of Resources, Energy and Tourism-AusIndustry |The Department of Environment, Water,
Heritage and the Arts | CANSYD | Meiji University | The Process Group | University of Queensland | Newcastle University
Established & supported under the Australian Government’s Cooperative Research Centres Programme

2001 - CO 2 source-sink studies - GEODISC TM

Regions being studied for potential CCS pilot projects

2008 - Carbon capture and storage projects in Australia

CO2CRC Otway Project
Buttress
Naylor-1

Project Area- CO2CRC
purchased two petroleum
tenements

CO2CRC Otway Project facilities
Buttress Site: CO2 production
well (Buttress-1) & Surface
Plant
Naylor-1 Site: Monitoring
well (Naylor-1)
Pipeline
Air Monitoring Site: Lo-Flo & Flux Tower
CRC-1 Site: Injection well (CRC-1)
CO2CRC Visitor’s Centre

CO2CRC Otway Project
Nirranda, Warrnambool, Victoria

Otway Basin, Victoria

CO2CRC Otway Project Concept

CO2CRC Otway Project Process Map
Phase 1
Opportunity
Definition
Phase 2
Select
Alternatives
Phase 3
Define
(FEED)
Phase 4
Execution
Phase 5
Operations &
Evaluation
Feasibility
Project
Development
Reduction of
Uncertainty
Capital
Expenses
Injection and
Demonstration
6/04 1/05 12/05 8/06 6/10
4/08

Stage 1 involves injection
of 50-100K tonnes CO2 into
the Waarre Formation, a
depleted gas field.
Stage 2 will involve
injection into the Paaratte
Formation, a saline aquifer

Seismic profile across the site of the CO2CRC Otway Project

Development of static and dynamic models of the
reservoir was a key part of the project
• Building detailed reservoir models for the appropriate depositional environment
(low sinuosity braided fluvial system)
• History matching with actual production data to validate model
Rigorous multi-disciplinary studies based on established oil field processes
validated through peer reviews, were a key component of taking the project
forward. This involved:-
Preproduction
Oct. 2003,
water hits the
Naylor 1 well
Pre-injection

Sealing faults are an important feature of the project area
© CO2CRC.
All rights reserved.

CRC-1 injection well
An injection well (CRC-1) was drilled to 2200m
Injection well

Coring in a new well, CRC-1, confirmed an excellent reservoir and seal
Core sample, CRC-1

Source of carbon dioxide: Buttress-1 well and compressor
Compressor
Process skid
After cooler
Production well

An existing
abandoned well
(Naylor-1) was
equipped as a
monitoring well,
with Lawrence
Berkeley National
Laboratories
playing a crucial
role

Transporting the CO2 by pipeline

Monitoring and Verification is a key part of CCS
Atmospheric
Atmosphere
Assurance
Monitoring
Soil gas
Surface
Ecosystems
Hydrology
Geochemistry
Saline Water
Storage Integrity
Monitoring
Seismic (Remote Geophysics)
Geochemical Sampling
Injected
Carbon Dioxide
Seal
Confining Layer(s)

Downhole fluid sampling was undertaken to
better understand subsurface processes
Schematic of bottom hole completion
Top
WarreC
Geologic Column
2000 m
Packer
2030 m
2035 m
Casing 2.9” I.D.
Custom completion tubing
Patch 2.375” ID; 27’ long
2028-2035 m
Perf
2040 m
Expected Gas/Water
80 o C
17 MPa (2500psi)
2045 m
Pressure/Temp and
U-tube Inlet
2050 m
Geophone with clamp
2055 m
Total Depth: 2060 m
Hydrophone
Oct 9, 2007

Downhole seismic assembly (Subsurface)
GEOPHYSICS
STORAGE INTEGRITY
MONITORING
Vertical Seismic Profiling (VSPs):
Objective: provides a high resolution image of the
immediate vicinity of the boreholes
Methods: Offset VSP, Walkaway VSP
Set-up: CRC-1-wireline, Naylor-1: permanently installed
High Resolution Travel Time (HRTT)
Concept: the injected CO2 is expected to rise and
collect beneath the gas cap and continuous injection
will force the gas-water contact (GWC) down.
Objectives: test the ability to monitor fine changes in
fluid level and verify the volume injected
Set up: permanently installed geophones strategically
located above and below the GWC in the observation
Naylor-1 well
Microseismic
Objective: to assure that the in-situ conditions of the
reservoir have not lead to fractures or fault reactivation
Methods:
Subsurface & Surface microseismic systems

3D surface seismic monitoring (Subsurface)
GEOPHYSICS
ASSURANCE MONITORING/
STORAGE INTEGRITY MONITORING
Methods: 4D or time-lapse surveys
Repeatability of surveys before,
during and after the CO2 injection
is very important for every aspect of
acquisition (source and receivers
positioning; source signal;
hardware; time of year; processing)

Hydrodynamics & groundwater Monitoring (Near-Surface)
GEOCHEMISTRY
ASSURANCE MONITORING
Objective:
- Monitor water levels to determine seasonal
variation, flow rate and direction
- Identify any chemical changes associated with
possible CO2 leakage
5-10m
Cap
Cable permanently installed
Steel Cable
Waterlevel
Datalogger
Methods:
- Dataloggers
- Water chemistry
Screen
Aquifers monitored:
- Shallow unconfined Port Campbell Limestone,
- Deep confined Dilwyn aquifer

Soil Gas Monitoring (Surface)
GEOCHEMISTRY
ASSURANCE SURFACE MONITORING
Objective:
- Establish CO2 variations within the extended
area beyond the CO2CRC tenements
- Determine the likely source of origin
- Differentiate natural from injected CO2.
Methods:
- The soil gas program extracts air from the
unsaturated soil zone above the water table.
- Samples are analysed on site (portable gas
chromatograph) and in the laboratory for CO2,
CH4 and isotopes.

Atmospheric Monitoring
Objectives:
To verify that injected CO2 stays underground; or in the unlikely event
of leakage to surface, demonstrate the capacity to detect and quantify
surface leakage
Otway
Cap Grim
baseline wind sector

CO2CRC Otway Project Non-Technical Challenges
• Regulatory
– No existing regulation for geosequestration.
• Organisational
– CO2CRC not an operating entity with a defined life span
– Not all CO2CRC participants able to shoulder operational liability
• Liability Management
– Research Project: Operational Liability not offset by project NPV.
– Need for a solution to long term liability.
• Community
– First of its kind with no national precedent
– Mixed reports in media

Complexity of Legislation
Petroleum
Act
DPI
EPA
SRW
Well Ops
Planning
Act –
DSE/Shire
M&V

CO2CRC Otway Project International Context
Geological Data
Availability
Baseline
data
Reservoir
Geochem
Ground water
monitoring
Regional Reservoir Hydrology Geochem
Soil
Gas
Atmos
Geophysics
Containment
Risk Ass.
prior to
project
start
West
Texas
Largely
confidential
very limited
limited
Alberta
Basin
limited
very limited
Sleipner limited limited
Weyburn
Largely
confidential
limited
Frio limited limited limited
Japanese
CO2CRC
Otway

CO2CRC Otway Project - Stage 2
Opportunity to better understand residual trapping of CO 2
in saline aquifers
Purpose:
Expand the scope of the
work by building on
knowledge and facilities
established for Stage 1
Description:
Injection of CO 2 into the
Paaratte Formation
Science Objectives:
- Characterise, model and
simulate CO 2 migration in
a heterogeneous reservoir
in a saline environment
- Deploy cost effective,
reliable enhanced M&V

CO2CRC Otway Project Summary
• Australia’s first storage project
• Injection commenced April
2008; 50-100K tonnes carbon
dioxide to be injected; 20K to
date
• Project will run to at least mid
2010
• Stage 1 cost A$40M- started
• Stage 2 cost A$20M- proposed
• Monitoring and verification a
key component
• Learnings include regulation,
risk, liability, technology,
science, ops,corp structure,
communications, community
• Enhanced profile for CCS

Thank you!
My thanks to CO2CRC sponsoring and collaborating organisations.
I acknowledge the outstanding contribution of Sandeep Sharma
( Project Manager) and the many CO2CRC
colleagues from a range of Australian and international organisations.
Funding provided by the CO2CRC Members, the Federal Dept of Resources and
Energy, Victorian Dept Primary Industries, US Dept of Energy
.