Progressing Development of the UK s Strategic Carbon Dioxide Storage Resource

Transcription

1 Progressing Development of the UK s Strategic Carbon Dioxide Storage Resource Alan James Pale Blue Dot Energy 2017 Energy Technologies Institute LLP - Subject to notes on page 1

2 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

3 3 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 CO2Stored Many to Twenty Twenty to Five Mature Five Sites Disseminate Outputs Project Objectives Develop storage options which put UK on track to injecting 50MT/a CO 2 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 Team Value Objective Materially progress development of UK CO 2 storage capacity. Inform roll-out strategies Do so within 12 months and at a cost not exceeding 2.5m Completed April 2016

4 4 CO2Stored Site Overlay

5 5 Released Wells Overlay

6 6 PGS 3D Seismic Overlay

7 7 Top 20 + FEED Sites

8 8 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

9 9 Key Findings The Storage Development Plan & Budget Characterisation & understanding Definition of the Storage Complex Injection performance Assumed CO2 supply profile Facility & infrastructure requirements Development activities Schedule Life-cycle costs

10 10 Key Findings The portfolio at the same scale Captain X 10km Forties 5 Site 1 Bunter Closure 36 Viking A Hamilton

11 11 Key Findings The portfolio at the same scale Captain X 10km Forties 5 Site 1 Bunter Closure 36 Viking A Hamilton

12 12 Key Findings The portfolio at the same scale Captain X 10km Forties 5 Site 1 Bunter Closure 36 Viking A Hamilton

13 13 Key Findings The portfolio at the same scale Captain X 10km Forties 5 Site 1 Bunter Closure 36 Viking A Hamilton

14 14 Key Findings The portfolio at the same scale Captain X 10km Forties 5 Site 1 Bunter Closure 36 Viking A Hamilton

15 15 Key Findings Storage Efficiency Storage efficiency the proportion of pore space in the full reservoir column within the defined storage complex area that is filled with CO2 Pressure constrained or confined system Open unstructured aquifer system with high Kv/Kh Open unstructured aquifer system with low Kv/Kh Structured saline aquifers with large connected pore volume Depleted gas field with moderate aquifer influx Highly depleted gas field with no aquifer influx Large areas need several drill centres & higher monitoring costs Requirement for injection heating

16 16 Portfolio Assessment Lifecycle costs and Unit costs Levelised Unit Cost 30/T 20/T 10/T 0/T

17 Pre-FID Appraisal FEED Platforms Subsea Pipelines Flowlines Post closure MMV Handover Payment 17 Portfolio Assessment Storage Site Cost Components 14.45/T life-cycle costs on a levelised basis for the 8-store portfolio Drilling Completion Pipelines Flowlines Pre-FID Appraisal FEED

18 18 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. 200MT UK FEED Studies 78GT UKCS potential 8.6 GT All qualified sites 7.1 GT Top 20 sites 1645MT including this study Key Findings

19 19 Portfolio Assessment 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 Risk Ability to bring online in early 2020s Only two of five sites required further pre FID appraisal drilling 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

20 20 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.

21 Thanks Project Team, ETI & their advisors Stakeholders & contributors