the coal-seq ii consortium: advancing the science of ecbm ... · – incremental methane recovery...

1Advanced Resources International

Presented by:Presented by:Scott R. ReevesScott R. Reeves

Advanced Resources International, Inc.Advanced Resources International, Inc.Houston, TXHouston, TX

CoalCoal--SeqSeq IV ForumIV ForumNovember 9November 9thth –– 1010thth, 2005, 2005

Denver, CODenver, CO

The CoalThe Coal--Seq II Consortium:Seq II Consortium:Advancing the Science of ECBM and Advancing the Science of ECBM and Carbon Sequestration in Deep, Carbon Sequestration in Deep, Unmineable CoalseamsUnmineable Coalseams

Coal-Seq IV Forum SP110905

2 Advanced Resources International

Presentation OutlinePresentation Outline

•• CoalCoal--Seq Project ResultsSeq Project Results•• Future Technology RequirementsFuture Technology Requirements•• CoalCoal--Seq II Consortium DescriptionSeq II Consortium Description



CoalCoal--Seq Project ObjectivesSeq Project Objectives

•• Demonstrate Efficacy of Carbon Sequestration in Deep Demonstrate Efficacy of Carbon Sequestration in Deep Unmineable Coals by Performing Detailed Field Studies of Unmineable Coals by Performing Detailed Field Studies of Existing COExisting CO22/N/N22--ECBM Projects (Allison & Tiffany)ECBM Projects (Allison & Tiffany)

•• Understand Critical COUnderstand Critical CO22 Sequestration Reservoir Mechanics Sequestration Reservoir Mechanics (multi(multi--component sorption, coal swelling)component sorption, coal swelling)

•• Demonstrate Utility/Validity of Reservoir Simulation ModelsDemonstrate Utility/Validity of Reservoir Simulation Models•• Develop TechnoDevelop Techno--Economic Screening Model to Evaluate Economic Screening Model to Evaluate

Potential Coalseam Sequestration ProjectsPotential Coalseam Sequestration Projects•• Identify Geologic Settings Most Amenable to LowIdentify Geologic Settings Most Amenable to Low--Cost Cost

SequestrationSequestration•• Assess Capacity for Coalseam Sequestration across U.S.Assess Capacity for Coalseam Sequestration across U.S.•• Disseminate Results to IndustryDisseminate Results to Industry



CoalCoal--Seq AccomplishmentsSeq Accomplishments

•• COCO22––ECBM/sequestration documented at AllisonECBM/sequestration documented at Allison–– Breakeven gas price of $2.60/McfBreakeven gas price of $2.60/Mcf–– Incremental methane recovery of 17Incremental methane recovery of 17--18% OGIP18% OGIP–– Injectivity reduction observedInjectivity reduction observed

•• NN22––ECBM documented at TiffanyECBM documented at Tiffany–– Breakeven gas price of $2.40/McfBreakeven gas price of $2.40/Mcf–– Incremental methane recovery of 10Incremental methane recovery of 10--20% OGIP.20% OGIP.

•• Prepared field practices manualPrepared field practices manual•• Demonstrated utility of existing reservoir models, and made imprDemonstrated utility of existing reservoir models, and made improvements to ovements to

coal swelling formulationcoal swelling formulation–– Established differential swelling factorEstablished differential swelling factor

•• Identified critical gaps in our understanding of reservoir mechaIdentified critical gaps in our understanding of reservoir mechanics nics –– MultiMulti--component sorption, bicomponent sorption, bi--directional diffusion, COdirectional diffusion, CO22--mixture PVT behaviormixture PVT behavior–– Established public database of CHEstablished public database of CH44, CO, CO22 and Nand N22 isotherm dataisotherm data

Massive leveraging of prior industry investment.



CoalCoal--Seq Accomplishments Seq Accomplishments (continued)(continued)

•• Created technoCreated techno--economic project screening modeleconomic project screening model–– >100 copies requested and distributed internationally>100 copies requested and distributed internationally

•• Performed technical/economic sensitivity of COPerformed technical/economic sensitivity of CO2 2 sequestration in coalsequestration in coal–– Best areas are deep, highBest areas are deep, high--rank coals previously undeveloped for conventional rank coals previously undeveloped for conventional

CBMCBM•• Assessed U.S. potential for COAssessed U.S. potential for CO22--ECBM/sequestrationECBM/sequestration

–– 90 Gt CO90 Gt CO22–– 150 Tcf ECBM150 Tcf ECBM

•• Implemented successful technology transfer programImplemented successful technology transfer program•• Achieved integration and coordination with other projects: goverAchieved integration and coordination with other projects: government, nment,

academia, industry, internationalacademia, industry, international•• Developed broad perspective on technology developmentDeveloped broad perspective on technology development•• Established CoalEstablished Coal--Seq as a leading worldwide program in the area of Seq as a leading worldwide program in the area of

carbon sequestration in deep, unmineable coalcarbon sequestration in deep, unmineable coal

To

be co

ntin

ued

in

Co

al-S

eq

II



Broad Misperception of ECBM Broad Misperception of ECBM Economic ViabilityEconomic Viability

•• Despite economic results at Allison/Tiffany, both projects were Despite economic results at Allison/Tiffany, both projects were terminated terminated –– why?why?

•• Most industry observers purport that projects were actually Most industry observers purport that projects were actually uneconomic.uneconomic.

•• Not the case:Not the case:–– BP readily acknowledges economic viability, but relegates CBM anBP readily acknowledges economic viability, but relegates CBM and d

enhanced recovery technologies as “nonenhanced recovery technologies as “non--core” activities.core” activities.–– Burlington also readily acknowledges economic viability, but is Burlington also readily acknowledges economic viability, but is

resourceresource--constrained (both capital and manpower), and thus has not yet constrained (both capital and manpower), and thus has not yet pursued additional ECBM opportunities.pursued additional ECBM opportunities.

* Note that Burlington is partnering with the Southwest Regional* Note that Burlington is partnering with the Southwest Regional Carbon Carbon Sequestration Partnership to perform another COSequestration Partnership to perform another CO22--injection pilot in the injection pilot in the San Juan basin.San Juan basin.



News FlashNews Flash

•• There are some sophisticated CBM players There are some sophisticated CBM players acquiring large acreage tracts specifically for acquiring large acreage tracts specifically for the purposes of ECBM development.the purposes of ECBM development.

•• These companies not only know the resource These companies not only know the resource potential and economic drivers, but also the potential and economic drivers, but also the most favorable geologic environments and most favorable geologic environments and project development strategies to employ.project development strategies to employ.

•• Stay tuned.Stay tuned.



InjectivityInjectivity Reduction ProblemReduction Problem

Well #143

0

10000

20000

30000

40000

50000

60000

Apr-95

Jul-9

5Oct-

95Ja

n-96Apr-9

6Ju

l-96

Oct-96

Jan-97

Apr-97

Jul-9

7Oct-

97Ja

n-98Apr-9

8Ju

l-98

Oct-98

Jan-99

Apr-99

Jul-9

9Oct-

99Ja

n-00Apr-0

0Ju

l-00

Oct-00

Date

Rat

e

500

700

900

1100

1300

1500

1700

1900

2100

2300

2500

PressureCO2, Mcf/mo

BHP, psi

($34.15/ton)($34.15/ton)($13.00/ton)($13.00/ton)($9.39/ton)($9.39/ton)$2.17/ton$2.17/tonSequestration Cost:Sequestration Cost:$19.38 ($335/ton)$19.38 ($335/ton)$5.65 ($98/ton)$5.65 ($98/ton)$1.06/Mcf ($18/ton)$1.06/Mcf ($18/ton)$0.12/Mcf ($2/ton)$0.12/Mcf ($2/ton)Breakeven COBreakeven CO22 Cost:Cost:$1.63/MMBTU$1.63/MMBTU$1.63/MMTBU$1.63/MMTBU$2.57/MMBTU$2.57/MMBTU$2.57/MMBTU$2.57/MMBTUBreakeven Gas Price:Breakeven Gas Price:$15.0 million$15.0 million$3.6 million$3.6 million$2.6 million$2.6 million($0.6 million)($0.6 million)Net Present Value:Net Present Value:$4.00/MMBTU$4.00/MMBTU$2.20/MMBTU$2.20/MMBTU$4.00/MMBTU$4.00/MMBTU$ 2.20/MMBTU$ 2.20/MMBTU

Injection Rate X 4Injection Rate X 4Same Injection RateSame Injection RateFinancial ParameterFinancial Parameter

Permeability versus Distance @ 3501 daysWell 142

0

20

40

60

80

100

120

140

160

180

0 1000 2000 3000 4000 5000 6000

Distance (feet)

Perm

eabi

lity

(mD

)

East Direction West Direction North Direction South Direction

Perm vs. distance profile yields a reduction in

injectivity by half.

Permeability versus Distance @ 3501 daysWell 142

0

20

40

60

80

100

120

140

160

180

0 1000 2000 3000 4000 5000 6000

Distance (feet)

Perm

eabi

lity

(mD

)

East Direction West Direction North Direction South Direction

Perm vs. distance profile yields a reduction in

injectivity by half.



Favorable Geologic Favorable Geologic EnvironmentsEnvironments

•• Deep CoalsDeep Coals−− High rankHigh rank−− Undeveloped for Undeveloped for

primary CBMprimary CBM

Langmuir Volume vs. Coal Rank

R2 = 0.0835

R2 = 0.7771

R2 = 0.9213

0

500

1000

1500

2000

2500

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6

Coal Rank (%Vro)

Lang

mui

r Vol

ume

(ft^3

/ton,

daf

)

N2

CH4

CO2

75°

140°

65°86°

155°

86°

130°64°

69°75°70°

CO2/CH4 Ratio Vs.Coal Rank

y = 1.6282x-0.9812

R2 = 0.61160

2

4

6

8

10

12

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2

Coal Rank (%Vro)

CO

2/C

H4

Rat

io

VL ratio

100 psi

1000 psi

2500 psi

5000 psi

Power (2500 psi)

< 0.

23 p

eat

0.51

- 0.

69,

hi v

ol b

it B

0.23

- 0.

36, l

igni

te

0.36

- 0.

47,

sub

- bi

t

0.69

- 1.

11,

hi v

ol b

it A

1.11

- 1.

60, m

ed v

ol

bit

0.47

- 0.

51,

hi

vol

bit

C

1.60

-2.0

4. lo

w v

ol b

it

•• High Rank CoalsHigh Rank Coals−− Similar COSimilar CO22 storage storage

capacitycapacity−− More methane More methane

recoveryrecovery−− Less net coal Less net coal

swellingswelling

•• Undeveloped CoalsUndeveloped Coals−− More methane More methane

recoveryrecovery



Potential Development Potential Development StrategiesStrategies

Conventional 5-Spot

Multi-Lateral System

Horizontal Injectors



Technology TransferTechnology Transfer

•Publications–Topical Reports–Technical Articles–Presentations–Etc.

•Coal-Seq forums–Coal-Seq I, March, ‘02, Houston–Coal-Seq II, March, ’03, Washington–Coal-Seq III, March, ’04, Baltimore–Coal-Seq IV, November, ’05, Denver

•www.coal-seq.com



Critical Technology GapsCritical Technology Gaps

•• Accurate performance predictions:Accurate performance predictions:–– MultiMulti--component isotherm behaviorcomponent isotherm behavior–– BiBi--directional diffusiondirectional diffusion–– COCO2 2 -- mixturemixture PVT behaviorPVT behavior–– and, as a result, coaland, as a result, coal--swelling and swelling and injectivityinjectivity lossloss

•• COCO22-- injectivityinjectivity is a critical factor influencing is a critical factor influencing economic performanceeconomic performance

•• Being unable to reliably Being unable to reliably predictpredict COCO22--injectivity loss injectivity loss (and thus gas recovery) is an important pre(and thus gas recovery) is an important pre--requisite requisite to largeto large--scale project investmentscale project investment

•• CBM modeling analog (GRI experience)CBM modeling analog (GRI experience)



Gap 1: MultiGap 1: Multi--Component Component Isotherm ModelingIsotherm Modeling

0.0

100.0

200.0

300.0

400.0

500.0

600.0

0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200

Pressure(psia)

Abs

olut

e A

dsor

ptio

n (S

CF/

ton)

Total

CO2

CH4

N2

ZGR

LRC

N2

CH4

15-20% error

~25% error

~40% error



Gap 2: BiGap 2: Bi--Directional DiffusionDirectional Diffusion

Single-Component, Uni-Directional Diffusion (Ficks Law)

Multi-Component, Bi-Directional Diffusion



Gap 3: CHGap 3: CH44--Mixture PVT Mixture PVT BehaviorBehavior



CoalCoal--SeqSeq II Consortium II Consortium ObjectivesObjectives

•• Develop new, advanced predictive models for:Develop new, advanced predictive models for:–– MultiMulti--component sorptioncomponent sorption–– BiBi--directional diffusiondirectional diffusion–– COCO22--mixture PVT behaviormixture PVT behavior

•• Couple with permeability modelCouple with permeability model•• Incorporate into dynamic flow simulator Incorporate into dynamic flow simulator •• Validate against laboratory flow experimentsValidate against laboratory flow experiments•• Validate against field dataValidate against field data•• Perform sensitivity analysis to better understand best geologic/Perform sensitivity analysis to better understand best geologic/reservoir reservoir

environments and development strategiesenvironments and development strategies•• Maintain established relationships with other R&D and demonstratMaintain established relationships with other R&D and demonstration projectsion projects•• Provide singleProvide single--source on global activities on COsource on global activities on CO2 2 sequestration in deep, sequestration in deep,

unmineableunmineable coals to membership (members only knowledge base at coals to membership (members only knowledge base at www.coalwww.coal--seq.comseq.com))



Relationship to Regional Relationship to Regional PartnershipsPartnerships

Westcarb Southwest Secarb Midwest Illinois Plains Big Sky

Regional Partnerships

etc.

etc.

etc.

etc.

Tech

nolo

gy P

roje

cts

Coal-Seq II



Benefits of ParticipationBenefits of Participation

•• Stay abreast of emerging technology without having to Stay abreast of emerging technology without having to commit significant resources (financial or manpower).commit significant resources (financial or manpower).

•• Remain poised to take advantage of project Remain poised to take advantage of project opportunities by knowing which are truly compellingopportunities by knowing which are truly compelling

•• Have access to the most accurate and reliable tools for Have access to the most accurate and reliable tools for evaluating project opportunities.evaluating project opportunities.

More KnowledgeMore Knowledge+ Less Cost+ Less Cost= Competitive Advantage= Competitive Advantage



CoalCoal--SeqSeq II OrganizationII Organization Current

Industry Sponsors ($750,000)

Government Sponsor($750,000)

Advanced Resources

International

ElectrochemicalSystems

Southern Illinois

University

Oklahoma State

University

CO 2 - CRC (Australia) Illinois Clean Coal Institute (USA) Japan Coal Energy Center (Japan) Shell International Exploration & Production (Netherlands)

U.S. DOE – NETLCarbon Sequestration Program

U.S. DOE – NETLCarbon Sequestration ProgramCO 2 - CRC

(Australia) Illinois Clean Coal Institute (USA) Japan Coal Energy Center (Japan) Shell International Exploration & Production (Netherlands)

Current Industry Sponsors

($750,000) Government Sponsor

($750,000)

Advanced Resources

International

Current Industry Sponsors

($750,000) Government Sponsor

($750,000)

Advanced Resources

International

Advanced Resources

International



Southern Illinois

University

Oklahoma State

University



Southern Illinois

University

Southern Illinois

University

Oklahoma State

University

Oklahoma State

University





Project RolesProject Roles

Advanced Resources InternationalAdvanced Resources International–– Simulation & modelingSimulation & modeling–– Project managementProject management–– Technology transferTechnology transfer

Oklahoma State UniversityOklahoma State University–– MultiMulti--component isotherm experiments & modelingcomponent isotherm experiments & modeling

Electrochemical SystemsElectrochemical Systems–– BiBi--directional diffusion modelingdirectional diffusion modeling–– COCO22--mixture PVT experiments & modelingmixture PVT experiments & modeling

Southern Illinois UniversitySouthern Illinois University–– CoreCore--flood experimentsflood experiments



Current Sponsor StatusCurrent Sponsor Status

•• $1.5 million required; $1.05 million committed (70% $1.5 million required; $1.05 million committed (70% subscribed)subscribed)

•• Still seeking six industry sponsors to reach full subscription:Still seeking six industry sponsors to reach full subscription:–– $75,000 per member$75,000 per member–– $25,000 per year for 3 years$25,000 per year for 3 years



For Further InformationFor Further Information

Scott R. ReevesScott R. ReevesExecutive Vice PresidentExecutive Vice PresidentAdvanced Resources InternationalAdvanced Resources International9801 9801 WestheimerWestheimer, Suite 805, Suite 805Houston, TX 77042Houston, TX 77042Ph: Ph: 713713--780780--08150815Fax:Fax: 713713--780780--38193819Email: Email: sreeves@[email protected]

Charles W. Charles W. ByrerByrerProject ManagerProject ManagerU.S. Department of EnergyU.S. Department of EnergyMSMS--CO4CO4P.O. Box 880P.O. Box 880Morgantown, WV 26507Morgantown, WV 26507--08800880Ph:Ph: 304304--285285--45474547Fax:Fax: 304304--285285--44034403Email:Email: [email protected]@netl.doe.gov

the coal-seq ii consortium: advancing the science of ecbm ... · – incremental methane recovery...

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