uk’s strategic carbon dioxide

© 2017 Energy Technologies Institute LLP - Subject to notes on page 1

Alan James

Pale Blue Dot Energy

Progressing Development of the

UK’s Strategic Carbon Dioxide

Storage Resource

Progressing Development of the

UK’s Strategic Carbon Dioxide

Storage Resource

A High Level Summary of Results from the

Strategic UK CO2 Storage Appraisal Project

22/11/2017

ETI download page http://goo.gl/tdb2ZB

http://goo.gl/tdb2ZB

Project Overview

Project Flow

Over a 10 month period develop practical cost effective storage options that

contribute to an extendable storage scheme for 1500MT of storage capacity

and 50MT/y of injection capacity by 2030

CO2StoredMany to Twenty

Twenty to Five

Mature Five Sites

Disseminate Outputs

Team

Strategic UK CO2 Storage Appraisal Project - 2016

3

Project Objectives• Develop storage options which

put UK on track to injecting

50MT/a CO2 by 2030, and with

1500MT of appraised storage

• Screen and de-risk commercially

attractive stores, some potentially

ready for 2026

• Estimate the cost and schedule to

provide this capacity

• Make public the findings

Value Objective• Materially progress development

of UK CO2 storage capacity.

• Inform roll-out strategies

• Do so within 12 months and at a

cost not exceeding £2.5m

• Completed April 2016

CO2Stored Site Overlay


4

Released Wells Overlay


5

PGS 3D Seismic Overlay


6

Top 20 + FEED Sites


7

Key Findings

Varied Portfolio

The portfolio of 5 sites selected is geographically and technically diverse, and presents options for clean energy and industrial development around the UK.

Only 2 of the 5 sites require any further appraisal drilling before an investment decision.

Alongside the detailed KT from UK FEED projects these sites characterise one of the most comprehensive and mature CO2 storage potential propositions available within the public domain


8

Key Findings

The Storage Development Plan & Budget

Characterisation & understanding

Definition of the Storage Complex

Injection performance

Assumed CO2 supply profile


9

Facility & infrastructure requirements

Development activities

Schedule

Life-cycle costs

Key Findings

The portfolio at the same scale

Forties 5 Site 1

10km

Bunter Closure 36 HamiltonViking A

Captain X


10

Key Findings


Forties 5 Site 1

10km


Captain X


11

Key Findings


Forties 5 Site 1

10km


Captain X


12

Key Findings


Forties 5 Site 1

10km


Captain X


13

Key Findings


Forties 5 Site 1

10km


Captain X


14

Key Findings

Storage Efficiency


15

Storage efficiency – the proportion of pore space in the full reservoir column

within the defined storage complex area that is filled with CO2

Structured

saline aquifers

with large

connected

pore volume

Depleted gas

field with

moderate

aquifer influx

Open

unstructured

aquifer

system with

low Kv/Kh

Highly

depleted gas

field with no

aquifer influx

Open

unstructured

aquifer

system with

high Kv/Kh

Requirement for injection heatingLarge areas need several drill centres & higher monitoring costs

Pressure

constrained

or confined

system

Portfolio Assessment

Lifecycle costs and Unit costs

£30/T

£20/T

£10/T

£0/T

Levelised Unit Cost


16


Storage Site Cost Components

£14.45/T life-cycle costs on a levelised basis for the 8-store portfolio

Drilling

CompletionPipelines

Flowlines

Pla

tform

s

Subsea

Pre-FID Appraisal

FEED

Pre

-FID

Appra

isal

FE

ED

Post clo

sure

MM

V

Handover

Paym

ent

Pip

elin

es

Flo

wlin

es


17

Key Findings200MT – UK FEED Studies

1645MT – including this study

7.1 GT – Top 20 sites

8.6 GT – All qualified sites

78GT – UKCS potential

The UKCS is endowed with a rich and diverse national

offshore CO2 storage resource, key components of

which can be brought into service readiness without

extensive appraisal programmes thanks to decades of

petroleum exploration and development activity.


18


Conclusions

Resource Potential 1.6Gt could be stored by 2070 at up to 45MT/yr across 8 sites

O&G legacy is valuable – skills, information and subsurface understanding

Timing Ability to bring online in early 2020s

Only two of five sites required further pre FID appraisal drilling

Risk Key remaining risks involve the integrity of abandoned legacy wells

May impact cost and MMV plan in detail

Contribution to Power Generation Cost £14.4/T levelised cost of transportation and storage

£6.9/MWh to the levelised cost of gas fuelled electricity

Focus of cost reduction efforts Operating cost of the injection facility and the wells

Storage - accounts for 65 – 85% of the total


19

Close

Summary

Highlights The UKCS is endowed with a rich and diverse offshore CO2 storage resource

Key components can be brought into service readiness without extensive appraisal drilling

Portfolio is geographically and technically diverse

One of the most mature CO2 storage propositions in the public domain

Concerns Additional costs may be presented by legacy well risk to managing containment of CO2 in storage sites

In general, most oil and gas infrastructure is likely to be unsuitable for CO2 storage use.

What Next? Rebuild momentum and engage with potential developers

More work required around consenting of open aquifer sites

R&D should focus primarily upon Storage Efficiency and Operational Efficiency

Work with OGA:-

National archive is lacking key data important for detailed storage assessment

Consider changes to decommissioning process in CO2 storage areas to prevent them from being sterilised for subsequent use.


20

Thanks

Project Team,

ETI & their advisors

Stakeholders & contributors

uk’s strategic carbon dioxide

Documents