The Callide A Oxy Fuel Demonstration Project - Expert Group on ...

The Callide A Oxy Fuel Demonstration Project - Expert Group on ...

Day 2 Wednesday 7February 2007Session 6: Emerging Clean Coal TechnologiesSpeech 3 Australiaong>Theong> ong>Callideong> A ong>Oxyong> ong>Fuelong> ong>Demonstrationong> ong>Projectong>~ong>Theong> Storage Perspective~Mr. Geoffrey IngramBusiness Development Manager, Carbon ServicesSchlumberger Oilfield AustraliaAustralia

Schlumberger Carbon Services -ong>Callideong> A ong>Oxyong>-fuel ong>Demonstrationong>ong>Projectong> - AustraliaAPEC Clean Fossil Energy Technical and Policy Seminar,Hanoi Vietnam, February 6-8 2007Geoffrey IngramRegional Manager – AustralasiaSchlumberger Carbon ServicesSchlumberger Public

Schlumberger – the Reservoir Company2Schlumberger PublicSchlumberger Carbon Services

ong>Theong> Economics of Climate Change (After Sir N. Stern O2006)3• Status: 430 ppm CO 2 e today,• Scenarii:• 550 ppm by 2050 if emission steady (2.5 ppm/yr)• 550 ppm by 2035 if BAU (emission rate gradually increases), 77% likel. ∆t=1 0 C• 850 ppm by 2100 if BAU,77% likel. ∆t= 5 0 C: Difference similar magnitude to today/ice age!• Impact:• Reduced access to water, decrease food production & land use, environmental degradation, healthissues• Cost of doing nothing (BAU):• 5% to 20% GDP/y (higher for developing countries)• Targets:• 450 ppm: already too late• 550 ppm: feasible but need for strong & global action now: emission peaking in next 10-20yr and then decreasing by 1-3% /yr thereafter strong action on power sector worldwide , representing today 24% of emissions, 37% when normalized toenergy sector emissions for power sector will have to be reduced by 60% by 2050 with higher portion for developedcountries cost of mitigation for global spectrum of solutions: 1% GDP/ySchlumberger Public• Benefit of mitigation solutions:“Extensive carbon capture & storage will benecessary*”• Mitigation should be considered as an investment (ROI : *5 to *20 from developed to developingcountries)Schlumberger Carbon Services* Stern report short summary, Nov 2006

E&P into an E&I opportunity4Schlumberger PublicSchlumberger Carbon Services

Schlumberger Activities in CO2 Storage5USA and CanadaWeyburn EOR CanadaFrio TexasBattelle Ohio-W.VirginiaSheep Mountain ColoradoMultiple CO2 EOR studies, PermianApprox 70 CO2 EOR InstallationsEurope, NorthAfrica & RussiaSleipner NorwaySnohvit NorwayIn-Salah AlgeriaHassi Touareg AlgeriaHannibal TunisiaKetzin GermanyKarniow PolandVarious CO2 EOR studiesCO2ReMoVeCosmos 1+2MoveCBMCOACHNZECANR monitoring projectMiddle East & AsiaAustraliaGorgon Barrow IslandOtway Basin CO2CRCong>Callideong> QueenslandSchlumberger PublicMultiple CO2 EOR feasibility studiesAssociated CO2 prod re-injection studiesMoveCBM ChinaSchlumberger Carbon Services

Drivers and Barriers for CCS6Climate changeIncreasing WorldEnergy needsSecurity of EnergysupplyImportance of Coalpower plants (2006Energy review, EU EnergyGreen paper)Possibility of EORSchlumberger Carbon ServicesCarbon Capture ←and Storage← International andNational law← Internationalincentives? (ETS?,CDM?)National incentives?← Regulatory regime← Liability?← Time frame← Public acceptance← Health and Safety← Environment← Cost of captureSchlumberger Public

Major CCS ong>Projectong>s Time Scale7In SalahSleipnerWeyburnOtway BasinSnohvitDOE phase 3Schwarze PumpeZeroGenADCOMalaysia EORKarstoCS EnergyGorgonMillerTeessideHatfieldBP CarsonSpainE.ON UK East CoastShell/Statoil HaltenFutureGenLPPSantosSask powerDrachtenSASOLBP EORMongstadRWE North GermanyGippslandEemshavenEngineering and Build PhaseProduction and Injection PhaseSchlumberger Public2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Schlumberger Carbon Services

Estimated World CO 2 Injection Volumes8140120Europe, Middle and Far East, North AfricaAustraliaMtCO2 per year1008060EOR/ ECBM Rest of the WorldNorth America DSAEOR NAMSchlumberger Public402002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Schlumberger Carbon Services

Australia ong>Projectong>s9Browse-WoodsideGorgon-ChevronZeroGen-Stanwellong>Callideong>-CS EnergyFairview-SantosSchlumberger PublicOtway-CO2CRCGippsland-MonashSchlumberger Carbon Services

Clean coal technologies10Near-Zero Emission CoalTechnologiesPre-CombustionTechnologiesGasification + CCSong>Oxyong>-fuel + CCSPost CombustionTechnologiesAir-fuel + CCSSchlumberger Public-ong>Oxyong>gen- Coal gasifier-Syngas processing-Chemical scrubbing of CO2- Gas turbine or fuel cellcombustion of H2 or syntheticliquid fuels-ong>Oxyong>gen- Super-critical PC-Physical capture andcompression of CO2-Air-Super-critical PC-Chemical scrubbing ofCO2- Sorbent regeneration-Compression of CO2Schlumberger Carbon Services

Fundamentals around CCS in Australia11• Bulk of base-load generation capacity coal fired• Generation deficit by turn of decade but planning decisions difficult inabsence of emissions controls• Any capture technology must be capable of being retro-fitted to maintainexisting load capacities• ong>Theong> Australian Coal Industry is proactively examining how to maintaincoal as a “dominant but cleaner” fossil fuel - $300M COAL21 Fundsupporting a range of projects including the CS Energy ‘oxy-fuel’ projectSchlumberger PublicSchlumberger Carbon Services

CS Energy ong>Projectong> – first ‘E&I’ ong>Projectong> for SCS12ong>Callideong> Site has 1720MW of generation capacitySchlumberger PublicSchlumberger Carbon Services

ong>Oxyong>-ong>Fuelong> Concept – Coal Burnt in ong>Oxyong>gen13Schlumberger PublicDeep cuts scenarios of emissions reductionsMUST include retro-fitting existing coal firedgenerators – oxy-fuel retrofit feasibleong>Projectong> Managed by SchlumbergerSchlumberger Carbon Services

ong>Demonstrationong> project – Objectives, scope &drivers14• Primary objectives‣ Demonstrate a complete and integrated oxy-fuel process‣ Obtain engineering and costing data, and operational experience, to under-pin thecommercial development• Scope‣ Air Separation Units - nominal 2 x 330 t/day (for 30 MWe)‣ Boiler refurbishment & retrofit of oxy-firing‣ CO2 capture/liquefaction plant of 100 t/day (~ 20% of total CO2 produced)‣ Transport & storage of 30,000 t CO2/yr (over 4 years)Schlumberger Public• Business Drivers‣ Positioning for a carbon constrained future‣ Ensure viability of coal fired generation through retro-fit in this carbon constrainedfutureSchlumberger Carbon Services

ong>Callideong> ong>Projectong> Schedule15Task 2006 2007 2008 2009 2010 2011 2012 2013 2014Stage 1 - Boiler Retrofitong>Projectong> DevelopmentConstructionOperations (Generation)Stage 2 - Geological StorageSite SelectionDetailed DesignSite ConstructionOperations (Injection)Schlumberger PublicStage 3 - ong>Projectong> ConclusionPost injection monitoringAbandonment and RehabilitationSchlumberger Carbon Services

Potential Storage Sites16DenisonTrough400 km200kmRomaShelfong>Callideong>NearbySolutionsSchlumberger PublicWungerRidgeSchlumberger Carbon Services

CO2 Storage Criteria17Schlumberger Storage Technology deployment anddevelopment address 3 critical areas for successfulCO2 Storage:CapacityInjectivityContainmentSchlumberger PublicSchlumberger Carbon Services

-25 to -20-16 to -10-9 to -5-4 to -2-1PREVENTIONLightSeriousMajorCatastrophicMulti-CatastrophicBLACK NON-OPERABLE: Evacuate the zone and or area/countryRED IN TO LE RA B LE : D o n ot take th is riskYELLOWGREENBLUEMITIGATIONControlMeasures-1-2-3-4-5UNDESIRABLE:ACCEPTABLE:NEGLIGIBLE:1-11L-21S-31M-41C-51MCDemonstrate ALARP before proceedingProceed carefully, with continuous im provementSafe to proceed2-22L-41S-62M-82C-102MC3LIKELIHOOD-33L-63S-93M-123C-153MCW hite arrow indicates decreasing risk4-44L-84S-124M-164C-204MC5-55L-105S-155M-205C-255MCCO2 Storage Workflow18Pre-OperationPhaseSite Selection Site Characterization (SCP) Field Design~ 1-2 yearOperationPhase~ 10-50 yearsPost-InjectionPhaseSite ConstructionSite Retirement Programme(SRP)Site PreparationInjection Monitoring (M&V)• Operation• Verification• EnvironmentalPerformance & RiskManagement System (PRMS)Communication and Public AcceptanceSchlumberger PublicProbableLikelyPossibleUnlikelyImprobable~ 100+ yearsSEVERITYSchlumberger Carbon Services

Australia - Stationary Energy Sector - Forecast CO2Emissions1980 % capture withong>Oxyong>fuel – all PF plants50% of 2010level by 2050Schlumberger PublicSchlumberger Carbon Services

Carbon abatement potential – ong>Oxyong>fuel2025,000,000Capture Efficiency - 90%22,500,000tCO2-e Abatement per annum20,000,00017,500,00015,000,00012,500,00010,000,0007,500,000Millmerran Unit 1 - RetrofitTarong North Unit 1 - RetrofitKogan Ck A - Retrofitong>Callideong> (CPP) Unit 2 - Retrofitong>Callideong> (CPP) Unit 1 - RetrofitSurat #1 - New BuildTARGET 9.5 Mt CO 2 p.a. Abatement by 2030Schlumberger Public5,000,000ong>Callideong> B Unit 2 - Retrofitong>Callideong> B Unit 1 - Retrofit2,500,000ong>Callideong> A Unit 4 - Retrofit-Target by 203020112012201320142015201620172018201920202021202220232024202520262027202820292030YearSchlumberger Carbon Services

Further Details21• Email me for copy of presentation• CS Energy website for update on project• Otway Basin Pilot ong>Projectong> injection start June 2007 PublicSchlumberger Carbon Services

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