Defining CCS Ready: An Approach to An International Definition

More documents

Recommendations

Info

Chapter 4: Storage Ready Plant DefinitionExhibit 4-5: Potential Range in Costs at Different Stagesin the Development of a Geological Storage Site for a Deep Saline Reservoir,in both Onshore and Offshore AustraliaTaskTime (years)Cost (AUDmillions)OnshoreCost (AUDmillions )OffshoreExploration 1 – 3 5 – 30 15 – 100Appraisal 1 – 3 5 – 60 25 – 200FEED 1 – 2 5 – 10 5 – 30Development 1 – 3 5 – 200 5 – 1500Totals 4 – 11 20 – 300 95 – 1830Exploration & Storage CostsSource: Bradshaw Geoscience ConsultantsStorage costs should not only include the costs of performing the storage at a proven site, but also the explorationand development costs. Many assessments for costs of storage do not allow for the “finding” costs in theirestimates, or grossly underestimate the likelihood of such costs. As such, any published costs for storage need tobe carefully scrutinized. When considering large industrial-scale injection of CO 2 over a 30- to 50-year period, andwhere geological uncertainty needs to be resolved to allow substantial financial investment for construction of apower plant and pipeline, geological storage exploration may be similar to exploration in the oil and gas industry—which can have exploration drilling success rates as low as 1 in 10.If exploration occurs in a well-proven mature sedimentary basin with a large number of existing wells and goodspatial seismic coverage, the likelihood of geological uncertainty in the exploration phase will be lower than in animmature unexplored basin with complex reservoir characteristics. Geological uncertainty can substantiallyincrease finding costs, as well as result in the need to obtain a large amount of data prior to reaching a level ofprobability that is sufficient for financial and planning purposes.The ZeroGen project in Southeast Queensland in Australia commenced exploration in the Denison Trough of theBowen Basin in 2005, after initial preliminary planning in 2004. To date 12 wells, including an injection well, havebeen drilled. ZeroGen has already acquired more than 5,000 m of core in its drilling program to ensure that it canreduce the geological uncertainty in the problematic reservoirs of the onshore Denison Trough. This will allow it toalleviate the complexity of its planning decision processes, as well as to shorten the timeframe to get to a finaldecision on whether to proceed. By the end of its current exploration phase, ZeroGen could potentially spend up toA$100 million in its quest to identify and prove the existence of a site for commercial scale injection of CO 2 .In addition to the overall estimates of the cost of exploration (discussed above), the level ofeffort (human labour) that is needed to meet the requirements of a Storage Ready plant isshown in Exhibit 4-6. As with the estimates for the level of effort for Capture and TransportReady plants, these estimates are tentative, and the specific level of effort will depend on thespecific geology of the storage site and content and extent of work performed by a projectdeveloper to meet a specified level of readiness. The range of estimated level of effortshown in Exhibit 4-6 indicates this variation.23 February 2010 60
Chapter 4: Storage Ready Plant DefinitionExhibit 4-6: Estimated Level of Effort for Storage Ready ActivitiesEstimated Range of Work Years toStorage Ready ActivitiesComplete Activity aStorage Site Selection 0.25 – 1.5Verifying Injectivity, Capacity, and Integrity of Storage Site 1.0 – 9.0 (up to 50+)Design for Storage Facilities 1.0 – 3.0Cost Estimate for Storage facilities 1.0 – 2.5Environmental, Safety, and Other Approvals for Storage ReadyplantPublic Awareness and Engagement Related to CO2 StorageReady plantSources for Equipment, Materials, and Services for Storage Readyplant0.75 – 3.00.25 – 1.50 – 1.0Ongoing Obligations 0.5 – 1.0a Work Years is the total number of individual years of work required for all staff to complete the activity.In terms of calendar time, the broad timeframe for becoming Storage Ready is estimated tobe between ~2 and 8 years (depending of the particulars of the chosen storage site).Timeframes could be longer or shorter for each component of being Storage Readydepending on the complexity, preparedness, access to resources (trained staff and funding),and willingness of each element of government, industry, community, and geologicalprovince involved.The information below provides indicative timelines and types of activities that are neededfor geological storage, including the activities beyond Storage Ready, in order to providestakeholders with an indicative timeline (and related level of effort) needed for geologicalstorage of CO 2 . The list below also differentiates the time needed for characterising thedifferent geological storage types.• Characterisation of Selected Site (2 – 12 years): Exploration for a geologicalstorage site to identify whether suitable reservoir and seal pairs exist, and the CO 2compliance of pre-existing infrastructure. It will include:In a saline reservoir setting (2 – 12 years):• Acquisition of 2D seismic and drilling several wells.– Seismic will be regional but focus on migration pathways where identifiable.– Wells will acquire large amounts of core and testing of the saline waterreservoir sections and the seal rock.In a depleted field (1 – 3 years):• Assessment of existing well penetrations and the integrity of the infrastructure toensure it is CO 2 compliant.– e.g., cement, well architecture, side track wells, completion histories.• Modelling of production history relative to proposed injection scenarios.• Infill wells and seismic may be required.• If the field is old or abandoned, capturing the pre-existing corporate knowledgeof the previous operators will be a crucial step in the development of the site.23 February 2010 61
Page 1:
Defining CCS Ready: AnApproach to A
Page 4 and 5:
PrefacePrefaceThe Global CCS Instit
Page 6 and 7:
Acknowledgements and CitationsThe c
Page 8:
Executive SummaryThe components spe
Page 12 and 13:
Executive SummaryExhibit ES-3: Illu
Page 15 and 16: Chapter 1: IntroductionDevelopers o
Page 17 and 18: Chapter 1: Introductionor more, lic
Page 19 and 20: Chapter 1: Introductionrelatively n
Page 21 and 22: Chapter 1: IntroductionExhibit 1-3:
Page 23 and 24: Chapter 1: IntroductionJustificatio
Page 25 and 26: CO2 Transport Ready PlantExhibit 1-
Page 27 and 28: Chapter 2: Capture Ready Plant Defi
Page 43 and 44: Chapter 3: Transport Ready Plant De
Page 47 and 48: 3.3.2 Environmental, Safety, and Ot
Page 55 and 56: Chapter 4: Storage Ready Plant Defi
Page 57 and 58: • Site DesignChapter 4: Storage R
Page 65: Chapter 4: Storage Ready Plant Defi
Page 75 and 76: Appendix A: Summary of Reviewed Exi
Page 83 and 84: Appendix B: Technology Design Optio
Page 107 and 108: Appendix C: Policy Considerations a
Page 117 and 118:
Appendix C: Policy Considerations a
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Appendix D: AcronymsAppendix D: Acr
Page 133 and 134:
Appendix D: AcronymsNGONO XNSBTFNSP
Page 135 and 136:
Appendix E: ReferencesInternational
Page 137 and 138:
Appendix E: ReferencesIntergovernme
Page 139 and 140:
Appendix E: ReferencesNational Coal
Page 141 and 142:
Appendix E: Referencesfrom http://w
show all

Defining CCS Ready: An Approach to An International Definition

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?