Research Supporting Australian Capture & Storage Options. Dr Noel Simento Managing Director

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1 Research Supporting Australian Capture & Storage Options Dr Noel Simento Managing Director University of Edinburgh May 2014

2 Inception ANLEC R&D is a Partnership between the Australian Coal Industry and the Commonwealth. It is a funding agency not a research organisation. With advent of a new government there are likely to be changes The ANLEC R&D strategy recognises that this is best achieved by providing the research support required by real projects and reducing the risk of real decisions that are necessary in a first of a kind activity. The ANLEC R&D research investment is necessarily large to accommodate work at the application end of the research spectrum. ANLEC R&D operational processes are also designed to favour more prospective options and withdraw from less relevant ones.

3 Economic Logic Export Coal Industry Enable coals contribution to greenhouse abatement Commonwealth / State Governments Enable coals contribution to greenhouse abatement Build a portfolio of low carbon power options Power Industry Maintain coal option Demonstration project proponents Maximise chance of project success Common drivers Confidence in the sub-surface Successful early demonstrations

4 Strategic Context (1) Meaningful action on climate change will require near zero emissions from the stationary power sector mid century First generation LECT technology is not economically viable at likely near term CO 2 and electricity prices due to high capital and operating costs In the absence of unified global action it is unlikely that any country will unilaterally impose a sufficiently high CO 2 price to incentivise commercial LECT deployment CCS will be economically viable in the gas processing and chemical industries at significantly lower CO 2 prices than for the power sector Low emissions from coal is a NECESSARY option which needs successful near term demonstration

5 Strategic Context (2) The global policy frameworks developed to enable demonstration projects have not adequately addressed the economic penalties associated with LECT or sufficiently addressed the allocation of risk The long development times required to identify and prove storage impose significant risk and economic disincentive Uncertainty over sink regulation and liability regimes increase project risk and economic disincentive The commercial value chain is poorly understood and it is difficult to appropriately allocate risk and reward between the different components of the project Understanding and reducing LECT risk is critical

6 The OUTCOME is Successful CO 2 The Priority is NOT CCS Research The oil and gas industry has been safely injecting fluids into the subsurface for decades The Priority is to REDUCE Project INVESTMENT Risk Research is necessary to: Assure CO 2 PERMANENCE Get it right - FIRST TIME Deliver scientific credibility to MMV over long term (100 s Yrs) Understand mitigation options Respond credibly to Licence-to-Operate queries

7 ANLEC R&D Objectives The near term risk reduction and technology developments necessary for successful demonstration of LECT in Australia. Support for and investigation of issues affecting the performance of the early demonstration projects. The delivery of independently validated, data and knowledge to assist key stakeholders understand benefits and assess the real risks associated with the deployment of CCS in Australia.

8 ANLEC R&D Differentiator Funding Partnership of Coal Industry & Commonwealth Designed as an Initiative to enable and accelerate demonstration at scale Research Service Providers include: CO2CRC CSIRO Universities Others Discovery Orientated Research Research Enabling CCS Deployment Universities CSIRO CRC s ANLEC Fundamental Demo/Commercial *For illustrative purposes only

9 Differentiators Adapt and apply for Australian conditions Build on leading subsurface expertise Accelerate knowledge transfer between R&D and demonstration ANLEC R&D focus Fundamental R&D Technology RD&D Technology Demonstration Commercialisation Market Accumulation Diffusion Australia will remain a power generation technology taker

10 Focus of Innovation Effort Research (Co - operative activity) Technology (Competitive activity) Purpose: Knowledge Creation Knowledge Application Pre - requisite: Know the Science Know the Business Who: Scientists Employees (Technologists) Invisible (IP closed) Effectiveness: Good Contractors (Consulta nts) Visible (IP Open) Weak Best Result: Tools for Innovation Measurable commercial benefit Req. Activity Communication Implementation

11 The OUTCOME is Successful LECT Demonstration Broad Priorities for ANLEC R&D Research Research supporting Demonstration takes precedence over concept testing Near term application takes precedence over longer term opportunity Research validation at scale Demonstrated Australian research strength track record and performance

12 Research Priority Safe and effective CO 2 storage The long development times required to identify and prove storage impose significant risk and economic disincentive While oil and gas data sets will provide the initial risk assessments these onshore data sets in Australia are relatively sparse compared with international CCS experience. Reducing the Cost of CO 2 Capture Capture makes cost of coal fired electricity equivalent to other LE technology options Adaptation to Australian conditions will be necessary and may have some advantage Common drivers Confidence in the Australian sub-surface Successful storage in relevant basins

13 CCS Flagships and Early Movers Callide Oxy-fuel Project capture focus CarbonNet currently storage focus South West Hub storage focus Flagships Surat Basin Proponents pending decisions Delta PCC Demonstration storage constrained ZeroGen IGCC storage targets not feasible

14 Australia s Active CCS Projects Learning by Doing Chevron Barrow Island CTSCo-Wandoan Callide Oxy-Fuel SW Hub Flagship CO2CRC Otway Pilot CarbonNet Flagship

15 South West Hub The Lesueur represents the best opportunity for CCS in the South West The absence of the Yarragadee is critical Potentially low permeability and low injectivity Heavily reliant on residual and dissolution trapping

16 Location Specific Storage Research Priorities Wandoan Anticipated High Quality Reservoir Long Term Focus: Resource Interaction CO2,GAB, CSG Consequent Short Term Research need: Verifying/validating methodology for ensuring seal integrity SWH - Reservoir Quality Risk Research Focus: Verifying/validating methodology for injectivity (pressure build up) and containment security assessment CarbonNet - Anticipated High Quality Reservoir Long Term Focus: Off shore cost, Resource Interaction CO2, onshore FW Aquifer, local O&G production Consequent Short Term Research need: Verifying/validating methodology for ensuring seal integrity and reservoir continuity assessment

17 Callide Oxyfuel Project Largest Retro-fit in Operation. 30MWe Demonstration facility $200M+ Collaboration partners included Lead organization: CS Energy, Japanese consortium JCoal, IHI, Jpower Australian Coal Industry & Commonwealth support, Schlumberger

18 Vehicles Embedded demonstration technology managers Flagship driven research & project selection process Independent science leaders Proof of concept funding for alternative and enabling technologies Technology based review process Best researcher for the job

19 ANLEC R&D - Operations

20 Storage Prioritisation High Demonstration requested with immediate application Alternatives and Fundamentals with immediate application to demonstrations Demonstration requested with future application Alternatives and Fundamentals with future application to demonstrations L0wer *note: the application timeframe is guided by the EPRI analysis *note: This prioritisation is also subject to an administrative common sense filter.

21 Storage Research Priorities Technology Impact in within an Australian Context high low injectivity capacity containment Fault Seal Resource management Rock properties Relative perm Slickensides diagenesis Facies Rock prop Geochem Geomechanics Dynamic Seal Capacity Pipeline modelling Digitalcore Pressure Footprint GAB Geo-chemistry Harvey1 N 2 Field test Near-shore Aquifer mod Geo-chem Wettability Surat Discretisation Well Based monitoring Otway 2C Enhanced Residual trapping Passive Seismic Wellbore integrity Strat Forward modelling Tracer applications Authogenic carbonate near medium long Relative Technology Readiness Tech Transfer

22 Reducing Uncertainty and Risk in Demonstration Reasonable amount of data & knowledge to evaluate the process; low project scheduling risk due to the availability of the information. Some data or knowledge available to characterise this process, however, at insufficient quantity/quality to adequately evaluate this process; moderate project scheduling risk due to availability of the information. Inadequate data or knowledge to adequately characterise the process; significant uncertainty and project scheduling risk due to the availability/quality of the information. Injectivity Capacity Containment MMV Basins Injectivity Capacity Containment MMV Surat Gippsland South Perth Otway Reservoir Rock Properties Well Design and Stimulation Rapid Reactive Geochemistry Stratigraphic and Geobody Geometry Pressure Management Reservoir Rock Properties Reservoir Fluid Properties Reactive Geochemistry Stratigraphic and Geobody Geometry Pressure Management Fault Seal Analysis Fault Reactivation Top Seal Capacity Seal Rock Properties Reactive Geochemistry Resource Management Geophysics Geochemistry Microseismic Atmosphere and Soil

23 Research Highlights - Storage Estimating Storage Capacity Important to understand what/how to measure to accurately estimate structural, residual, dissolution and mineral trapping. Capacity concerns included: Data collection: core, logs, fluids, geophysics etc How to reduce geological risk with sparse data ANLEC R&D Research Results Alternative process based approach for defining a static model can be calibrated to well data: Stratigraphic forward modelling for South West Collie Hub Report #EP A multivariate approach based on fault zone architecture has been developed to correlate faults from sparse 2D seismic interpretation: Fault seal first order analysis for the SW Hub, Report #EP

24 Underpinning Storage: Capacity Risk Reduction Objective: Define and validate a new approach to estimating inter-well geological variability that could reduce characterisation time of injectivity, capacity and containment. Can we do better than conventional approaches to interwell variability? Use physics to predict sedimentary deposition history Model the implications Drill and measure Validate the approach SEDSIM: Stratigraphic forward modelling CSIRO)

25 Harvey-1 blind test: Wireline and core plug comparison CNC (grey) porosity from the Neutron log Odt (orange) porosity from the sonic log Orhob (light blue) - porosity from the density log Porosity 800 (dark blue) porosity from core Porosity 4300 (dark blue) porosity from core Pus (green) porosity predicted by Sedsim ANLEC Collie Hub SFM-P Cedric Griffiths Note: upper part of the well is affected by bad hole conditions

26 Common Risk Segment development for GCS in the SW Hub area (a). Sedsim predicted risk maps for seal and reservoir for the 500 m grid area (red higher risk, green lower risk). The Common Risk Segment (CRS) map combines the seal and reservoir risk in a simplistic (unweighted) fashion. The green CRS areas are those where the optimum baffle and reservoir conditions coincide at the same Sedsim node. Note that this is a conservative case. Back Result: In a data sparse basin, ANLEC R&D research delivers an alternative forward sedimentary model for the SWHub to inform their decisions ANLEC Collie Hub SFM-P Cedric Griffiths

27 Research Highlights - Storage Estimating Containment Important to understand what/how to measure to accurately estimate top seal capacity and upscale rock properties. Containment concerns included: data collection: core, logs, fluids, geophysics etc Will CO 2 injection impact saline water distributions ANLEC R&D Research Results Laboratory batch experiments with core samples have been used to calibrate numerical simulation of seal reactivity with CO 2 : Dynamic seal capacity Aquifer modelling in the Gippsland and Surat basins indicate significant pressure propagation but minimal saline water propagation from CO 2 storage: Near-shore aquifer modelling and Impact of Surat Basin geological CO2 storage on groundwater flow 27

28 Underpinning Storage: Containment Laboratory core CO 2 saturation (Evans, Curtin) Laboratory core analysis (Delle Piane CSIRO) Leakage through top seals? Rock strength Membrane seal capacity Model up-scale - Predict Drill, field test, Validate Imaging rock matrix and pore networks (Sheppard and ANU and Digitalco

29 Geomechanical properties results Wonnerup samples: 2 9 What injection pressure can the rocks sustain without fracturing? Range of mechanical response in line with values reported in literature (e.g. Zoback, 2007) Rock properties distribution in Harvey-1 Claudio Delle Piane

30 Underpinning Storage: Containment : Maximising the value of Digital Core Analysis (Surat) Application: Develop up-scaling technology to reduce geological characterisation time. Extensive core analysis will be conducted on the primary Surat Basin reservoir-seal pair (reduced risk for injectivity, capacity and containment). This is ANLEC R&D s largest project outside of the CO2CRC Otway project. Attributes and Risks: This project is being driven by a technology development company The end products will include a new service available to industry The project supports enhancement of world class ANU core imaging facilities to include imaging of core flooding at in-situ conditions (pressure and temperature) The project includes the cost of standard commercially available core analyses required for calibration of new research results.

31 Research Highlights - Storage Estimating Storage Containment Important to understand what/how to measure to accurately estimate structural, residual, dissolution and mineral trapping. Capacity concerns included: Data collection: core, logs, fluids, geophysics etc How to reduce geological risk with sparse data ANLEC R&D Research Results A multivariate approach based on fault zone architecture has been developed to correlate faults from sparse 2D seismic interpretation: Fault seal first order analysis for the SW Hub, Report #EP

32 Underpinning Storage: Containment Fault segment model Leakage through fault seals? Stress and fault reactivation Up-fault leakage potential Juxtaposition Across fault leakage potential Predict, drill, Validate 500m throw V-shale model and links to SedSim borehole breakout CSIRO)

33 Static Fault Model Next Well(s) Area of interest Possible Doublet Fault block Back

34 Research Highlights - Storage Estimating Injectivity Important to understand what/how to measure to accurately estimate up-scaled permeability and mineral- CO 2 -water reactions. Injectivity concerns included: Where to focus data collection: core, logs, fluids, geophysics etc What measurements can be made on core and how can they be up-scaled ANLEC R&D Research Results Core mineral reactions on core flooding have been shown to both increase and decrease permeability dependent on carbonate cementation and diagenesis: Predicting CO 2 injectivity for application at CCS sites and Achieving Risk and Cost Reductions in CO 2 Geosequestration through 4D Characterisation of Host Formations A facies based approach can be used to upscale injectivity parameters for dynamic simulation Facies-based prock properties characterisation for CCS: GSWA 34 Harvey-1 well Western Australia

35 Underpinning Storage: Injectivity Can we inject with fewer wells? Pore water resistivity characterise effective permeability understand fluid distribution up-scale field test Validate Depth (m) (Delle CSIRO)

36 Underpinning Storage: Containment Laboratory core CO 2 saturation (Evans, Curtin) Laboratory core analysis (Delle Piane CSIRO) Leakage through top seals? Rock strength Membrane seal capacity Model up-scale - Predict Drill, field test, Validate Imaging rock matrix and pore networks (Sheppard and ANU and Digitalcore) Back

37 BASIN RESOURCE MANAGEMENT & CARBON DIOXIDE STORAGE Impacts of carbon dioxide storage The complexity of geological storage includes how stored carbon dioxide interacts with other resources. Basin Resource Management and Carbon Storage. Part I: Resource characterisation requirements and evaluation of containment risks at the basin-scale. Part II: Towards a workflow for the assessment of potential resource impacts for CO 2 geosequestration projects. July The licence to operate a carbon dioxide geological storage site will depend on many factors including how the stored carbon dioxide will interact with the surrounding geology. The sensitivity to a new player in the underground geological space has led to discussions around access priorities and potential resource conflicts with other sub-surface resources. This two-part CSIRO report seeks to clarify the possible interactions in a range of potential geological settings as well as align best in class international work to the Australian context to propose relevant resource interaction decision flow charts.

38 BASIN RESOURCE MANAGEMENT & CARBON DIOXIDE STORAGE Impacts of carbon dioxide storage It should be noted that resource interactions might be synergistic and helpful while others may be detrimental and costly to remediate It is clear that carbon dioxide containment is essential, however the interactions of this stored carbon dioxide with other geological elements needs to be understood and managed. As shown coal, oil and gas are contained in various geological structures in addition to shallow and deep ground water resources. Geological formations are connected to their adjacent structures in one way or other. At one extreme this connection allows material to move easily from one structure into another at the other extreme only indirect interactions may occur. These interactions may be synergistic and helpful others may be detrimental.

39 BASIN RESOURCE MANAGEMENT & CARBON DIOXIDE STORAGE Impacts of carbon dioxide storage The key to understanding basin interactions is data. As projects develop any potential interactions must be continually reassessed. The potential for the interaction between various resources and stored carbon dioxide needs to be assessed for both possible positive synergies and negative impacts. This needs to involve a risked based approach focusing on potential issues. Adverse interactions could include potential contamination by carbon dioxide, resource competition for water disposal reservoirs, brine displacement into adjacent reservoirs and seal compromises. Positive synergies may include increased formation pressure (repressurising), enhanced oil and gas recovery. Carbon dioxide may also provide a working fluid for geothermal applications.

40 BASIN RESOURCE MANAGEMENT & CARBON DIOXIDE STORAGE Impacts of carbon dioxide storage The application and extension of this work may shape future regulatory and statutory obligations regarding the storage of carbon dioxide. Decisions on the productive use of resources will require consensus to be drawn between various stake holder interests. These would include private business, state and federal regulators and local community groups. High quality information and transparent decision processes will be key to enabling these conversations. This report provides initial recommendations on the nature of information and processes that could be adopted or adapted by custodians of the resources. It is likely that State Advisory Bodies could be the best customers to benefit from this study. As projects progress and gain a better understanding of the project specific geology and the potential basin interactions stakeholders are going to want to understand the effects on them. Back

41 Research Highlights - Storage Estimating Storage Capacity Important to understand what/how to measure to accurately estimate structural, residual, dissolution and mineral trapping. Capacity concerns included: data collection: core, logs, fluids, geophysics etc How to reduce geological risk with sparse data ANLEC R&D Research Results CO 2 wettability appears to be controlled by organic content, pore roughness, and matrix mineralogy and these can be measured on core samples: Poreand core-scale investigation of CO 2 mobility, wettability and residual trapping Dissolution trapping is significantly underestimated without considering convective mixing. This fine scale process can be estimated inn course grid block models using up-scaling factors calibrated to stratigraphy: Discretization & modelling of CO 2 solubility during injection 41

42 1. Discretisation Project - Background Numerical simulations of convective mixing of CO 2 require computational models with grid blocks on the mm to cm scale. This is in contrast to simulations of field-scale injection, which use grid blocks on the m to 100 m scale. Field-scale simulations inhibit the onset and rate of convective mixing, and therefore underestimate the long-term rate of dissolution. The goal is to correct the dissolution rate of coarse-scale models so that the effect of fine-scale convective mixing is adequately captured. Ref: J Innis King, CSIRO 42

43 Effect of discretisation on convection Convective mixing from fine-scale model Known Lab behaviour Computation limitations cannot reproduce this is scaled-up modelling Grid blocks are 0.1 m wide and 0.1 m high. This resolution is sufficient to resolve the fingering. 4 3 Grid blocks are now 10.0 m wide and 1.0 m high. Convection is delayed, and fingers are not fully resolved.

44 4 4 Theoretical discussions Grid-size corrected dissolved CO 2 using increased Δρ.

45 4. Technical conclusions Increasing the size of mesh grid blocks delays the onset of convection and results in a lower steady dissolution rate. As a result, the amount of CO 2 safely stored in the dissolved phase is underestimated in simulations with a coarse grid. A primary mechanism for this behaviour is the observed numerical dispersion of the diffusion front. One possible strategy for correcting this behaviour is to artificially increase the density of the solution as the size of the grid blocks are increased. This approach has been chosen for this project. Artificially increasing the solution density to increase the steady mass flux may have adverse impacts on other features. This is being investigated further. 4 5 Back

46 CSIRO-Curtin, Novel geophysics and remote sensing MM&V (not CTSCo proj) CTSCo- EPQ-7 Characterisation? QLD carbon storage enabling case Permit award Flagship Stage Gate Injection approv CSIRO : discretisation and solubility & conv CSIRO CO2CRC: Carbon Storage and GAB CSIRO fundamentals of tracer applications GA CO2CRC: reactive geochem, inj gas trace elements, water qual, MM&V ANU Digital Core: improving CO2 storage site assessment CSIRO: Resource Management for CCS West Wandoan-1 CGI Regional Characterisation and data acquisition CSIRO and GA regional GAB and CSG work? Curtin-CSIRO: core wettability and geomech UQ: core geochem and geomechanics Curtin-CSIRO: core rel perm and geomech Refining geological static anlecr&d models CTSCo- EPQ-7 3D seismic and inj test Insitu Lab Jan 2012 Jan 2013 Jan 2014

47 Project Review: SW Hub Research SW Hub Science Workshop February 26th 2014 Board Room - ARRC Building 8:45 coffee and tea Welcome/Introduction, safety briefing, and context 9:00 Rick Causebrook of the day 9:15 Dominique Van Gent SW Hub Program update Understanding Storage Costs (Injectivity and Capacity) update: SWHub 12 month Technical decision Schedule based on current and planned regional 9:30 Jeff Haworth geological work program. (inc where ANLEC R&D results can assist inform better decisions) Project Harvey 2D test seismic survey - 9:50 Milovan Urosevic issues and optimisations Project Desktop design study on 10:10 Guy Allinson enhancing residual and dissolution trapping (inc results and implications for SWH planning) Project Predicting CO2 injectivity 10:30 Ali Saeedi properties for application at CCS sites (Results in SWHub context) 10:50 coffee and tea Understanding Containment security Project Stratigraphic Forward 11:10 Cedric Griffiths Modelling comparision with Eclipse for SW Hub Project Stratigraphic correlation and slickenside deformation for Harvey-1 (inc 11:30 Peter McCabe implications of results and questions yet to be answered) Project Pore- and core-scale 11:50 Stefan Iglauer investigation of CO2 wettability and residual trapping (inc relevance to Demo geologies) Group discussion of the morning presentations: 12:10 Dominique Van Gent implications for forward data acquisition strategy Working Lunch and continuation of Dominique s 12:30 LUNCH discussion session

48 Project Review: SW Hub Research MMR Planning 13:30 David Lumley 13:50 Linda stalker 14:10 Ludovic Ricard Science Integration & Technology & Knowledge Transfer Project Feasibility and design of robust passive seismic monitoring arrays for???? Project Fundamentals of tracer applications for CO2 Storage Project Desktop design study for SW Hub monitoring wells Technology transfers to characterise 14:30 Steve Whittaker and risk-assess carbon storage projects at commercial CCS sites (inc Developing/addressing SWHub Risk Register Tasks) 14:50 Rick Causebrook Project Integration 15:00 Rick Causebrook Group wrap-up discussion, new data acquisition, new research concept ideas and forward planning 16:00 Noel Simento Closing Comments 16:40 Afternoon tea, informal discussion Old data New data; Note greatly improved resolution in the shallow section

49 SWHub: Communication of Results The baffle strata appears to have a low rock strength but also a low permeability (low hydraulic conductivity). Horizontal continuity to be determined. The reservoir has high rock strength and good injectivity at the data well location. The major faults have low reactivation potential. Target region with low fault leakage potential identified The reservoir has potential for high residual CO 2 saturation. Uncertainty remains on the horizontal continuity of reservoir, seal properties and distribution of water composition Uncertainty will be reduced with 3D seismic and new data wells (slim holes)

50 ANLEC R&D Differentiator ANLEC R&D Study Geochemical impacts and monitoring of CO2 storage in low salinity aquifers called on to address Demonstration Permitting. The value to CTSCo arises from the quality of the work, the fact that the work is the most current state-ofthe-art, the peer-reviewed nature of the work and that the conclusions were derived independently. - Technical Director, CTSCo/Wandoan

51 ANLEC R&D Differentiator..Great to have a different approach to developing the static model..the current thinking is to have most of the injection between the two faults (F1 and F10 using Laurent s terminology) where as this would propose being more to the East - Technical Advisor, SW Hub.Of all the organisations working in the CCS space, ANLEC R&D provides the most significant value to our project. - Dominique van Gent, WA-DMP, SWHub

52 History of Industry & Commonwealth Sponsored Low Emissions Coal Research Commenced in early nineties with two CRC s Kept watching brief on Advanced Coal Technologies Focussed on coal performance characteristics Early recognition of the GHG challenge and the Environment The feasibility study for the Callide Oxy-Fuel Plant was done in the CRC It was picked up and run with by the Coal Industry and The Commonwealth The Callide Oxy-fuel Project (COP) is the largest scale retro-fit boiler of its type in the world ANLEC R&D Research continues to support this project to optimise its flowsheet and OH&S systems COP would not have happened without the commitment of the Coal Industry and the Commonwealth.

53 Research Highlights Enabling Demonstration Callide Oxyfuel Project Important to establish the capital costs for gas cleanup equipment necessary to allow CO 2 storage. When this largest Demo commenced unknowns included: Potentially unsuitable CO 2 flue gas quality for corrosion tolerance of CO 2 compression unit operations, transport & storage Size of additional efficiency penalty - High levels of SO x in recirculated flue gas will result in a higher temperature dew point in the boiler, require a higher FGET and lower efficiency Redundancy of de-nox equipment Cost of impacts of mercury gases in CO 2 : higher concentrations in flue gas requiring high cost of HEX materials in CO 2 compression necessity or otherwise for additional Hg capture equipment either in power plant or in CO 2 compression

54 Callide Oxyfuel validates Cost Reduction Low cost de-sox is viable, even for standard Australian power plants without FGDs NaOH scrubber will reduce SOx levels in flue gas 4<pH<5.5 is recommended as control regime to avoid caustic waste and for high removal extent Caustic consumption and disposal costs are material to the process Separate de-nox not required NOx and Mercury reactions coupled and synergistic Significant Hg 0 & NOx captured during compression process -100% Hg, ~90% NOx Additional mercury capture not required Mercury removal can be achieved via ash disposal and liquid waste streams from compression

55 Example Research Highlights Capture Interest

56 CCS Technology Cost Challenge Note: For purpose of this discussion relativities important rather than absolute numbers G3 CCS CCS CCS CCS CCS CCS CCS CCS CCS 10% reduction in LCOE needs 20% reduction in capital cost Built at scale, base load Built at scale, not base load Source: BREE 2012

57 Differentiating Approach Capture and Storage Research Motivations are Different Capture Research to support a global effort - technology vendors spend billions to provide warranty Australia needs to service its niche Adaptation to Australian conditions Permitting and Environmental Storage Research to validate local application Calibrate methods to local geologies Interaction with local resources

58 The Oxy-Fuel Technology Costs Note: Research Focus is mainly on 4 subsystems PF Plant size can be further optimised in greenfield 10% reduction in LCOE needs 20% reduction in capital cost Replacement or eliminating components is best Heat integration will be important because it saves in all components % of costs in 4 subsystems Sleeper Cost Reduction Required

59 Assessment Rationale Efficiency Capital Cost Operating Cost RAM Air Emissions Water Total TRL Oxidant Production High Efficiency Compression N ITM Oxygen (APCI) M OTM (Praxair) L Thermal integration with power cycle Oxyfuel Boiler Improvements advanced oxy boiler materials (1200F) M More advanced materials (1400F) L Pressurized Boiler M Heat Recovery Low Temperature Economizer M Gas quality control system particulate removal M Steam Turbines USC steam conditions N Other power producers SC CO2 Brayton power cycle L Weighting Efficiency 15.0% Capital Cost 45.0% Operating Cost 10.0% RAM 10.0% Air Emissions 5.0% Water 15.0%

60 Oxy R&D Prioritisation Technology Rankings within an Australian Context High Low x Designs for Low Capex X Advanced Materials (1200F) x ASU Int with Power Cycle X Coal Beneficiation Construction Optimization XX Oxy FBC/PFBC x Dry & Hybrid Cooling Oxy-CFB X OTHERS LISTED COP DART x Lower Cost Materials Pressurized Oxy XX ITM X Advanced Materials (1400F) Partial Cond/Distilation/Purification XX SOx & NOx Removal Wet Gas Comp X High Pressure Ratio Compression X X SC CO2 Brayton Cycle X OTM Oxygen membrane Chemical looping COP DART X Chemical Looping X Adv Liquefaction & Pump Courtesy: EPRI 2013 (with adaptation) Near Term Med Term Long Term Technology Readiness Level

61 The PCC Technology Costs % of costs in 2 subsystems Note: Research Focus is mainly on 1 subsystem More difficult in Aust due to steam turbine size Heat integration will be even more important because it saves in all components Opportunities for cost reduction well developed 0

62 PCC R&D Prioritisation Solar integ PCC $215,928 Technology Rankings within an Australian Context High Low X Coal Beneficiation Improved SOx x Construction Optimization Dry & Hybrid Cooling X PCC Emissions OTHERS LISTED X Solution Diffusion Membranes X High Pressure Ratio Compression X Hollow fibre membrane X Facilitated Transport & Mixed Matrix Membranes NH3 Solvent X X Non Aqueous Solvents: Phase Separations Dev Aqueous Solvents: Catalyst / Enzymes Enzymes X SC CO2 Brayton Cycle Gas-liquid contactor x Designs for Low Capex X Non Aqueous Solvents: Ionic Liquids x X Aqueous Solvents: Carbonates Carbonates Ionic liquid Aqueous Solvents: Amines x Lower Cost Materials X Adsorbents: Chemi Solid Sorbent Design amine Carbon nanotube X Adsorbents: Physi X Advanced Materials (1200F) X Advanced Materials (1400F) Membrane for amine contaminant removal X Adv Liquefaction & Pump Courtesy: EPRI 2013 (with adaptation) Near Term Med Term Long Term Technology Readiness Level

63 IGCC R&D Evaluation x Membrane Separation X J-Frame GT X 3100F Firing Temp GT Technology Rankings within an Australian Context High Low x Designs for Low Capex X Coal Beneficiation x G Frame GT X Paques Partial water Quench XXX Continuous Slag Letdown Low SG Steam Pressure x Construction Optimization Dry & Hybrid Cooling x Liquefaction and Distilation XX ASU High Efficiency Comp Supplemental firing HRSG X OTHERS LISTED X Compact Gasifier (PWR) x Lower Cost Materials X Warm Gas Cleanup x H Frame GT X Dry Solids Pump & Low Nox Comb X Elimination of Spare Gasifier Large gasifiers to match future GTs XX In Situ Feedstock Upgrading Shift X Advanced Water Gas Shift reactor X High Pressure Ratio Compression X Advanced Refractory (24,000hrs) X ITM X X Carbonate Cycling X Pressure Swing Claus x Designs for Full Firing T xx Lower DP Fuel Control GT Modifications for ITM X Fuel Cells X Adv Liquefaction & Pump X OTM CMR for H2 production Near Term Med Term Long Term Technology Readiness Level

64 Fresh Focus For Capture Research? Focus on developing Australian specific low capital designs Develop high NOx and SOx capture options Consider component replacement/ elimination concepts Consider Australian techno-economics of new (novel) cycles

65 Post Combustion Capture Environmental Impacts Air Emissions Environmental emissions from Post Combustion Capture systems require new monitoring protocols and procedures. Environmental Impacts of Amine-Based CO 2 Post-Combustion Capture (PCC) Process Test Procedure for Post-Combustion Capture of Amines. Nov There are many risks associated with low emissions fossil fuel technologies. While the provision of base load power from an abundant resource is a huge opportunity, threats include adverse environmental stack emissions. This CSIRO report improves the understanding of the possible environmental emissions from Post Combustion Capture systems.

66 Post Combustion Capture Environmental Impacts Air Emissions Work to decrease the uncertainty surrounding Post Combustion Capture environmental emissions will assist technology development. Air emissions from power plants must be compatible with the environment to be a long-term viable solution. Since the reduction of carbon dioxide emissions from fossil fuel power plants will require the application of new technologies, emissions from these technologies must be understood. This change in power generation technology will inevitably require changes in the way power plants are approved, regulated and monitored. The environmental performance of solvents will impact their commercial and environmental viability. Image copyright CO2CRC

67 Post Combustion Capture Environmental Impacts Air Emissions Several potential solvents have been tested for their stack emissions profile. CSIRO, in a controlled laboratory environment tested several Post Combustion Capture solvents which were exposed to a simulated flue gas. Using similar operating conditions to a potential real world application the solvent and gas stream were then rigorously tested using some of the latest analytical equipment. The two key solvents studied were: Methyldiethanolamine (MDEA) Piperazine (PZ) For MDEA, diethenolamine (DEA) is the most important degradation product to be monitored. For Piperazine (PZ) the two main products found were ethylenediamine and 2-oxopiperazine.

68 Post Combustion Capture Environmental Impacts Air Emissions For MDEA, diethenolamine (DEA) is the most important degradation product to be monitored. What are the chemical species for which environmental monitoring is recommended for MDEA solvent applications? While the most important degradation product is diethanolamine (DEA), many others are recommended to be part of a comprehensive monitoring program. Name Formula Diethanolamine C 4 H 11 NO 2 N-nitrosodimethylamine C 2 H 6 N 2 O Formaldehyde CH 2 O Acetaldehyde C 2 H 4 O Name N-methylethanolamine N,N-dimethylethanolamine Trimethylamine N-methylmorpholine Formula C 3 H 9 NO C 4 H 11 NO C 3 H 9 N C 5 H 11 NO N-nitrosomorpholine C 4 H 8 N 2 O 2 N-nitrosopiperidine C 5 H 10 N 2 O N-nitrosodiethanolamine C 4 H 10 N 2 O 3 Morpholine C 4 H 9 NO N-methylpiperazine C 5 H 12 N 2 N-ethylpiperazine C 6 H 14 N 2 N-(2-hydroxyethyl)piperazine C 6 H 14 N 2 O

69 Post Combustion Capture Environmental Impacts Air Emissions For Piperazine (PZ) only two main products were found: ethylenediamine and 2-oxopiperazine. What are the chemical species for which environmental monitoring is recommended for Piperazine (PZ) solvent applications? While for the PZ solvent only two main products were found (ethylenediamine and 2-oxopiperazine), several others are also recommended to be monitored as part of a comprehensive program. Name Formula N-nitrosodimethylamine C 2 H 6 N 2 O N-nitrosodiethylamine C 4 H 10 N 2 O N-nitrosopiperazine C 4 H 9 N 3 O N,N -dinitrosopiperazine C 4 H 8 N 4 O 2 Diethylamine C 4 H 11 N Name Formula Formaldehyde CH 2 O Acetaldehyde C 2 H 4 O Dimethylamine C 2 H 7 N 2-Oxopiperazine C 4 H 8 N 2 O Ethylenediamine C 2 H 8 N 2

70 Environmental Emissions from PCC For Permitting: important to know of changes to trace element emissions and waste streams. PCC deployment concerns included: How TE s will partition in the capture plant No knowledge for TE loadings in effluent streams Potential for TE to accumulate in waste disposal or CO 2 stream ANLEC R&D Research Results FG cleaning for solvent performance means TE load on capture plant will be much lower and TE emissions from stack will be much lower For important TE s tested, expect to report to AGS/FGD discharge Remaining load will mostly report to reclaimer waste of amine plant Elemental mercury shows evidence of going through the system no retention First estimates of partitions reported and are solvent chemistry dependent (MEA, Piperazine etc) If required, pilot testing can reveal effluent loadings for design and regulatory assessment purposes 70

71 Environmental Emissions from PCC For Permitting: Will require credible air quality model for Environmental Impact Assessment. Early PCC deployment issues relate to: Unknown conversion chemistry in presence of coal flue gas Unknown kinetics for atmospheric degradation of amines Undeveloped test procedures for conversion compounds ANLEC R&D Research Results Using the CSIRO smog chamber, a chemical mechanism for the benchmark MEA was developed that can be used for air quality modelling First approximate assessment for regional air quality delivered for amine-based PCC plant retrofitted to a black coal-fired power plant in NSW The results of the base case showed that the concentration of nitrosamines are negligible. Develop analytical procedures to measure their degradation products 71

72 First assessment for regional air quality delivered MEA + HNO 3 aerosol µg/m Frequency of MEA+HNO3 concentrations Frequency E+00 5.E-03 1.E-02 2.E-02 2.E-02 3.E-02 3.E-02 Aerosol concentration, µg/m 3 Peak 1 hourly concentrations of the MEA+HNO 3 aerosol. Frequency plot showing the PCC contribution of MEA+HNO3 aerosol. 72

73 PCC Amine Solvents For power generation applications 1) Equipment size required is large and in uncharted design territory 2) High capital cost Cost Reduction Concept: Can the size of absorber and stripper be reduced substantively by concentrating CO 2 in flue gas with VSA pre-treatment ANLEC R&D Research Results This concept did not work for the materials chosen because: Capital and capture costs remained high Additional energy requirement for the VSA process not compensated by savings elsewhere Energy for solvent regeneration did not change for the hybrid processes compared to the standalone process The concept did however result in practical equipment sizes with currently available technology 73

74 High Efficiency Low Emissions - DICE

75 The Future Every plan we know changes Australia is no different Change in Commonwealth Government in late 2013 Austerity Commission of Audit underway Funding contraction is inevitable CCS Flagship program among others is vulnerable Australian coal industry business conditions difficult Planning for success CCS research structure may be reviewed ANLEC R&D will need to review its strategy New directions may be inevitable

76 ANLEC R&D Noel Simento Managing Director Phone: noel.simento@anlecrd.com.au Web: THANK YOU