CO2CRC OTWAY FACILITY

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1 CO2CRC OTWAY FACILITY AUSTRALIA S FIRST DEMONSTRATION OF GEOLOGICAL CARBON STORAGE An innovative, world-leading research facility in south-western Victoria is demonstrating a technology that can make deep cuts to global greenhouse gas emissions. CO2CRC Otway Facility is Australia s first demonstration of the deep geological storage of carbon dioxide, the most common manmade greenhouse gas, as part of carbon capture and storage (CCS) technology. The project is of global significance. It involves leading Australian and international researchers working as part of CO2CRC to develop and implement rigorous monitoring and verification research, complementing the demonstration of subsurface storage. The project is also leading the way in defining regulatory requirements for Australian carbon capture and storage projects. Lessons learned from the project are being adopted by other CCS projects around the world.

2 REDUCING GREENHOUSE GASES THE ISSUE A RECORD OF SUCCESS Climate change is one of the most serious environmental issues facing the world. Rising concentrations of carbon dioxide in the atmosphere are considered to be a key driver of climate change, which could lead to higher temperatures, changes in rainfall patterns and farm productivity and, in the longer term, rising sea levels. The social, environmental and economic impacts of climate change could affect everyone. CO2CRC Otway Facility in south-western Victoria is Australia s first demonstration of the geological storage of carbon dioxide and a leading facility for ongoing research. Carbon dioxide is produced through the burning of fossil fuels including coal, natural gas and petroleum, and through land-clearing and agricultural practices. Carbon capture and storage is the capture of carbon dioxide from major emission sources such as power stations and industrial facilities, and the transport, injection and long-term storage of the gas in deep, underground rock formations, such as depleted oil and gas fields or deep saline aquifers that contain unusable, salty water. THE CONCEPT Carbon capture and storage (CCS) cannot solve the greenhouse gas problem alone. A portfolio of responses, including energy efficiency, renewable energy, the use of less carbon-intensive fuels and CCS, will ALL be needed to make the necessary cuts in greenhouse gas emissions. Stage 1 of the Otway Project injected, stored and monitored over 65,000 tonnes of carbon dioxide-rich gas; Stage 2 of the project developed the world s first single well test for storage site assessment, which can be used to evaluate the CO2 storage capacity of saline storage reservoirs for carbon storage projects around the world; The project includes an outstanding monitoring program, which international and national scientists believe to be one of the most comprehensive of its type in the world; The project has made major contributions to the international knowledge of how to plan, conduct and monitor a CCS project; used as a case study for the Australian Environmental Guidelines for Carbon Dioxide Capture and Geological Storage 2009; and The project has provided insights into the community consultation process for CCS projects. Despite our best efforts, the world will be using fossil fuels for many years to come. The great benefit of CCS is that large quantities of carbon dioxide that would otherwise enter the atmosphere from the burning of fossil fuels can be safely and permanently stored deep underground. No other technology allows deep reductions in carbon dioxide emissions while we continue to use fossil fuels and much of the existing energy infrastructure. In fact, the International Energy Agency has reported that CCS could be responsible for as much as 17 per cent of global reduction effort required in ~ 2000m CO2CRC Schematic representation of the Otway Facility.

3 CAREFUL SITE SELECTION REDUCES CHANCE OF LEAKS The Intergovernmental Panel on Climate Change considers a carefully chosen site as one that will leak less than one per cent of the total stored carbon dioxide into the next rock strata (not the atmosphere) over 1000 years. CO2CRC is confident of achieving this level of security for the Otway Facility. Our geologists have been researching the geological structures of CO2CRC Otway Facility since The geology comprises a series of thick layers of porous sandstones that are suitable for the storage of carbon dioxide. It is overlain by caprock or mudstone that prevents the leakage of the carbon dioxide to the layer above it. The varied geology of the area, plus the natural source of carbon dioxide from the Buttress well, make CO2CRC Otway Facility the ideal location for researching the geological storage of carbon dioxide. Stage 2 NIRRANDA ce an Rd Reduce surface footprint for site monitoring CRC 2 CRC 1 Naylor South 1 to Reduce cost for long-term high resolution monitoring ea Croft 1 Curdievale Boggy Creek 1 PPL13 Gr Road Naylor 1 MELBOURNE WARRNAMBOOL Developing and improving techniques for CO2 storage projects. Demonstrate technology thresholds/limits 2000 ad Victoria Improving models of how CO2 is trapped in saline formations; and Demonstrate that CO2 plume will stabilise 1000 Buttress 1 PPL11 Improving accuracy of estimates of how much CO2 can be stored; Demonstrate that CO2 movement in aquifers can be predicted 0 Metres Globally, saline formations have the largest potential storage capacity, making the research of Stage 2, of international interest. Stage 2 of the project is providing valuable information on the ways carbon dioxide is stored in deep saline formations. Stage 2 research involves: Monitoring for Stage 2 complements the existing monitoring program to verify the safe storage of the gas. Further research as part of Stage 2 will use seismic techniques to: DELANEY CORNER d Comprehensive monitoring of the air, soil, groundwater and subsurface has shown that the injected gas has stabilised and is safely stored with no evidence of leakage. The monitoring observations have been consistent with researcher predictions, giving confidence that CO2CRC computer models are accurate. Being able to confirm and refine computer models with real-world information is one of the strengths of the project. Monitoring will continue in accordance with regulatory guidelines. THE IDEAL LOCATION Dances Roa During Stage 1 of the Project, naturally occurring carbon dioxide and methane were extracted from a gas well (Buttress) in Nirranda South. The gases were compressed and piped to a deeper depleted natural gas field (Naylor). Here, the carbon dioxide was injected via the CRC-1 injection well at an average rate of 145 tonnes per day and safely stored two kilometres below the Earth s surface. Sodas Ro Stage 1 At the project site, several layers of rocks separate the carbon dioxide injection zones from groundwater and the atmosphere. The geology is very suitable for storing carbon dioxide safely for thousands to millions of years. Radfords CO2CRC OTWAY PROJECT CO2CRC Otway Project PORT CAMPBELL CO2CRC Kilometres CARING FOR THE ENVIRONMENT AND PROPERTY CO2CRC risk assessment shows that it is highly unlikely there will be any negative effects from carbon dioxide storage to the environment. To ensure this, a rigorous program of monitoring has been underway since CO2CRC scientists and project contractors are required to follow strict guidelines developed in association with landowners in regard to taking proper care of cattle and property.

4 Victorian Government agencies and local government stringently regulate CO2CRC Otway Facility. These agencies are the watchdogs of the project on behalf of the community. The Victorian Environment Protection Agency is responsible for approving the injection and storage of carbon dioxide and the noise levels of equipment. LEADING-EDGE SCIENCE CCS experts from the International Energy Agency s Greenhouse Gas Research and Development Programme have reviewed the Otway Facility monitoring program annually since November 2006 and found it to be one of the most comprehensive in the world. The monitoring program has shown the community, government at all levels and industry that: it is possible to monitor the injected carbon dioxide in the deep subsurface; and computer models, which predict the behaviour of the carbon dioxide during all phases of the project, are accurate. CO2CRC monitors the environment for any changing levels of carbon dioxide through the soil, in the groundwater, in the air and deep underground. The monitoring program will continue for the life of the project. Dedicating the Naylor-1 and CRC-2 wells to subsurface monitoring makes the subsurface monitoring program extremely thorough. Using physical and chemical methods, researchers have been able to obtain an accurate picture of the carbon dioxide as it migrates through the storage formation, helping to predict its behaviour for the life of the project. In Stage 2, CO2CRC developed the world s first single well test which can be used to determine how much carbon dioxide can be stored in a saline formation. Scientists drilled and instrumented a 1500 metre well and carried out a complex series of injections, extractions and sampling over several months. Another subsurface monitoring technique is geophysical, consisting primarily of seismic surveying. This technique uses a sound wave source and sensors to produce a three dimensional picture of the carbon dioxide and the rocks that contain it in the subsurface. MONITORING DOMAINS CO2CRC Monitoring & Verification program at the Otway Facility. COMMUNICATING PROGRESS To inform the public about carbon capture and storage technology, assure the local community of the safety of the project, establish good working relationships with landowners and share the results of CO2CRC research, a community consultation program has been established to inform, educate and provide opportunities to raise issues. A dedicated community liaison officer provides a local contact for landholders, researchers, visitors and the local community. Regular public meetings with landowners, regulators, local government and community groups are held to provide project updates and gather feedback. CO2CRC hosts regular events and tours of the site. Over 1000 visitors have toured the Otway Site to date.»» CO2CRC provides comprehensive information on the project such as newsletters, fact sheets and website updates. The Otway Site permanent receiver array installed for Stage 2C has the objectives to: Detect injected Buttress gas in the subsurface: ascertain minimum seismic detection limit Observe the gas plume development using time-lapse seismic Verify stabilisation of the plume in the saline formation using time lapse seismic Through subsurface, air, soil and groundwater measurements, researchers have been able to confirm that the carbon dioxide in the storage site is secure.

5 GOVERNMENT, INDUSTRY AND RESEARCH PARTNERS INDUSTRY ANLEC R&D (on behalf of ACALET) Global CCS Institute Chevron Australia Coal 21 INPEX Browse Ltd Shell Development (Australia) Pty Ltd GOVERNMENT Australian Government: Department of Industry and Science Australian Government: Department of Education NSW: Department of Trade and Investment SA: The Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) Victoria: Department of Economic Development, Jobs, Transport and Resources WA: Department of Mines and Petroleum CarbonNet Project RESEARCH CSIRO Geoscience Australia GNS Science University of Adelaide Charles Darwin University Curtin University University of Melbourne University of NSW University of Queensland University of Western Australia Korea Institute of Geosciences & Mineral Resources Lawrence Berkeley National Laboratory (LBNL) University of Edinburgh Federation University Australia Australian National University CONTACT CO2CRC Level 3, Earth Sciences Building University of Melbourne Elgin Street, VIC 3010 PO Box 1182, Carlton VIC 3053 Australia Corporate office: e: info@co2crc.com.au Ms Tania Constable Chief Executive Officer tania.constable@co2crc.com.au Ms Ching Gee Business Manager ching.gee@co2crc.com.au Dr Matthias Raab Chief Operating Officer matthias.raab@co2crc.com.au

6 CO2CRC IS ABOUT THE SCIENCE BEHIND REDUCING GREENHOUSE GAS EMISSIONS ABOUT CO2CRC CO2CRC is one of the world s leading collaborative research organisations focused on CCS technologies, which include the capture of carbon dioxide from stationary industrial sources and its geological storage in the deep subsurface. CO2CRC is a leader in many aspects of CCS R&D, bringing together a diverse range of industries and government agencies with leading university and research institutions in a collective multidisciplinary approach to both problem solving and identifying and pursuing new opportunities. This research capability has been enhanced through collaboration with leading research institutes in Canada, Japan, Korea, New Zealand, South Africa, UK, Germany, Israel, and USA. Stage 1 of CO2CRC Otway Project has received recognition internationally. The Carbon Sequestration Leadership Forum (CSLF) is an international climate change initiative that is focused on the development of improved cost-effective technologies for the separation and capture of carbon dioxide for transport and long-term safe storage. In early 2007, more than 30 countries from the CSLF endorsed the Otway Project as a project of international significance. Endorsements such as these from world experts on CCS, together with the support from Australia s leading research institutions and backing from government and industry, mean that CO2CRC can continue its important research into carbon capture and storage technologies. Through the collaborative arrangements between CO2CRC and its research partners, more than 150 scientists are working to develop safe and economic carbon dioxide capture and storage technologies that can make deep cuts in greenhouse gas emissions and therefore reduce the potential impact of climate change.