ccs -what’s it all about?

CCS - What’s it all about?

Ian Phillips – Director, CO2 Infrastructure

SPE Meeting - Wednesday 15th June 2011, Edinburgh

1

• Introduction

• CO2 – it's funny stuff!!

• Technology – status, gaps and opportunities

–Power generation

–CO2 capture

–Compression

Agenda

2

–Compression

–Transportation

–Wells

–Reservoir

• Some common themes

• 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 Engineer

• Director

– Carbon Capture & Storage

Introductions

Ian Phillips

– small operator - Ramco

• Then 2 years

– Oil major - BP

• Since 2007

– Worlds first pure CCS company

– CO2DeepStore

– 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 and storage

• Petrofac

– A Co-Investing Energy Services Business

– Designs / Builds / Operates onshore and offshore facilities

• Company profile (2010 Annual Report)

– Revenues US$4.4 billion

CO2DeepStore Limited

A CCS Developer

projects as Operator and / or investment partners

– acquired 100% by Petrofac Limited in April 2010

– 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

A CCS Developer

RWEAberthaw

APL Hunterston

Longannet

Peterhead

Progressive

Teesside

E.ONKingsnorth Yorkshire

Powerfuel (Hatfield Moor)

National Grid (Infrastructure)B9 (Hatfield)Alstom (Drax)

• Introduction

• CO2 – it’s funny stuff!!


–Power generation

–CO2 capture

–Compression

Agenda

6

–Compression

–Transportation

–Wells

–Reservoir


• 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 CO2accordingly

7

Compressor discharge

temperature range –Dense Phase Operations

Pipeline operating range – Dense Phase Operations

Reservoir


CO2 Operating Envelope

Compressor discharge

temperature range –Gaseous Phase Operations

Pipeline operating range – Gaseous Phase Operations


CO2 – phase transition

• Starts with visible meniscus between liquid and gaseous CO2• As pressure and

9

• As pressure and temperature 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 -78°C, 1 bar)

• Volumes of CO contained in 1 km of 36” pipeline


Densities and volumes

10

• 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


Impact of rising reservoir pressure

Gaseous phase reservoir

Saturated Reservoir

Dense Phase Reservoir

• Introduction

• Overview of CCS chain

• CO2 – it’s funny stuff!!


–Power generation

–CO capture

Agenda

12

–CO2 capture

–Compression

–Transportation

–Wells

–Reservoir


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

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

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



Other post-combustion technologies


• 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 than amine

• Still a high-energy approach as fuel heated to >1100°C


Pre-combustion technologies

heated to >1100°C

– To split hydrocarbons into H2and CO

– Fuel is H2– CO steam shifted to CO2 (and to produce more H2)

Wabash River IGCC, Illinois, US

• Oxygen separation at ambient conditions

• Burn fuel plus O2 plus CO2• >90% CO in flue gas


Oxy-fuel technologies

• >90% CO2 in flue gas

Technology status – Compression

Compressor power requirements


Inter-stage Dehydration

Gaseous phase reservoir

Saturated Reservoir

Dense Phase Reservoir


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

–Many CO2 sources

Technology status – Pipeline Transport

Pipeline Transport

2

–Many CO2 sinks

•Major vulnerability

–Moisture content = corrosion

Technology status – Pipeline Transport

Dense Phase capacities

Technology status – Ship Transport

Two shipping states

• Transport conditioning

– Compress

– Refrigerate

• Injection conditioning

– Reduce pressure

– Heat

Technology status – Ship Transport

Major energy penalty

26

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 operational

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

–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

30

Depleted Gas

5.1

Aquifer

15

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 potentialMajor costs to explore, assess and prove capacity – Major uncertainty regarding CO2containment


Depleted gas field

31Map source - United Kingdom Oil and Gas Fields - Commemorative Millennium Volume - Geological Society London


Aquifers

Aquifer injection - Cap rock uncertainty – Storage mechanism uncertainty

32Source – Progressing Scotland's CO2 Storage Opportunities – SCCS 2011

• Depleted hydrocarbon reservoir

– Start with produced volume

– Minus hetrogeneities

– Minus residual water saturation following water

• Deep saline aquifer

– What “capacity” do you measure

• Structural

• Capillary trapping

– Cap rock integrity


Reservoir capacity

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 CO2– 4-15 °C (seabed temperature)

• Injection pressure differential

– 200-400psi = 14-28bar

� 17-34 °C temperature drop at perforations

� Risk of thermal fracturing

� Injectivity

Cap rock integrity


Reservoir temperature effects

� Cap rock integrity

� Convection currents in the reservoir

• CO2 plus water = Carbonic acid

• Dissolves cements and some minerals

• Change porosity

• Mobilise fines – reduce permeability


Reservoir geochemistry effects

Calcite Cement

permeability

– May reduce injectivity

Deviation = 0.1mm

Feldspar

• Oil and gas focus

– Drilling issues

– Target reservoir

• Carbon storage focus

– Drilling issues

– Storage reservoir


Overburden considerations

– All intermediate formations

• Detection of leaks

• Containment of CO2

• Rock integrity

–Hydrocarbon production “deflates” reservoir

• Stresses overburden

• Potential for fracturing

–CO2 injection “re-


Overburden considerations

–CO2 injection “re-inflates” reservoir

• De-stresses overburden

• Surface movement visible

BP In Salah surface level changes

• Introduction

• Overview of CCS chain

• CO2 – it's funny stuff!!


–Power generation

–CO capture

Agenda

38

–CO2 capture

–Compression

–Transportation

–Wells

–Reservoir


Common themes - safety

When CO2 leaks


Leaks and dispersion

• “Jet cooling” effect

• CO2 at -70°C

• CO2 is heavier than air

• It goes down!!• It goes down!!

• Onshore

• Plant topography an issue

• Offshore

• Don’t launch the lifeboats

• Or fly the helicopter!!

CO2

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 Tremors


CO2 Toxicity

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

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 coordination

2nd 14 to 10%: Faulty judgement, rapid fatigue and

insensitivity to pain


Asphyxia risk - CO2 displaces O2

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 individuals on plant


Leak detection - safety

individuals on plant

• Detection of transportation leaks

– Major leaks – pretty obvious

– Minor leaks – affects

• Humans

• Environment

43

• Monitoring for leaks to the environment

–During operations – to detect leaks

–Post-closure – to prove the absence of leaks

• Subsurface monitoring

–Verifying CO2 in store

• Pressure, temperature, micro-seismic, 3D seismic

Common themes - detection

Long term monitoring

44

• Pressure, temperature, micro-seismic, 3D seismic

–Detecting CO2 movement outside store

• Proving the absence of leaks

• Phase change points well understood

• Behaviour of two phases of CO2 co-existing is not

• Large volumes complicate things

• Effects to be studied

– 2 phase horizontal

– 2 phase vertical (up)

– 2 phase vertical (down)

– Geothermal and gravity effects in wells

Common themes – CO2 behaviour

2 Phases are complicated

45

things

• Power station

–20-40 year operating life

• Store monitoring

–Another 20+ years

Common themes - time

Long term activity

• Project evaluation

–NPV economics not ideal

–Need to consider

• Energy use

• Net CO2 emissions

• Debt finance structure

46

Common themes – lots of CO2

UK NAP Emissions (2008)

Emissions in tonnes of CO2


EU emissions by country (2008)

958

628

541 527600

800

1000

1200

Nati

on

al E

mis

sio

ns (

millio

ns o

f to

nn

es o

f C

O2)

406 396

207

146 141 133 12787 78 73 73 70 67 64 64 49

24 21 20 12 12 10 30

200

400

Nati

on

al E

mis

sio

ns (

millio

ns o

f to

nn

es o

f C

O2)


Global emissions 1990-2009

• Most CO2 gets dumped to atmosphere for free

• Annual emissions from a power station

– Coal – 10-25 million tonnes

– Gas - 1-5million 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

• BUT £125 million p.a. lost revenue due to amine-


Its not commercial (yet)

• 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 (£??bn)

• UK Electricity Market reform proposals

–Feed in Tariff /

Contract for Difference

–Payment linked to


So how do you make any money?

–UK DECC 2-4 (£??bn)

–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

“Putting something back��.”

CCS – Questions & Comments welcome

Ian Phillips – Director, CO2 Infrastructure

SPE Meeting - Wednesday 15th June 2011, Edinburgh

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