Sequestration Program. Carbon Sequestration Program Goals

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1 Mixed Gas Stream Mostly CO 2 Mostly H 2 CO 2 and other gases Sequestration Program Dawn Deel Project Manager October 2008 Carbon Sequestration Program Goals Deliver technologies & best practices for Carbon Capture and Safe Storage with: 90% CO 2 capture at source 99% storage permanence < 10% increase in COE Pre-combustion capture (IGCC) < 35% increase in COE Post-combustion capture Oxy-combustion 2 Deel p.1

2 Key Challenges to Carbon Capture and Storage Technical Issues Capture Technology Existing Plants New Plants (PC) IGCC Cost of CCS Sufficient Storage Capacity Permanence Best Practices Storage Site Characterization Monitoring/Verification Site Closure Etc etc Legal/Social Issues Regulatory Framework Permitting Treatment of CO 2 Infrastructure Human Capital Legal Framework Liability Ownership pore space CO 2 Public Acceptance (NIMBY NUMBY) Projects helping to address both categories of issues 3 U.S. DEPARTMENT OF ENERGY OFFICE OF FOSSIL ENERGY NATIONAL ENERGY TECHNOLOGY LABORATORY CARBON SEQUESTRATION PROGRAM Core R&D Capture Geologic Storage Monitoring, Verification, and Accounting (MVA) Technology Solutions Infrastructure Regional Carbon Sequestration Partnerships Characterization Validation Technology Solutions Global Collaborations North America Energy Working Group Carbon Sequestration Leadership Forum Simulation and Risk Assessment Development International Demonstration Projects CO 2 Use/Reuse Lessons Learned Other Large-Scale Projects Lessons Learned Asian-Pacific Partnership (APP) Reduced cost of CCS Tool development for risk assessment and mitigation Accuracy/monitoring quantified Capacity validation Indirect storage Human capital Stakeholder networking Regulatory policy development Visualization knowledge center Best practices Public outreach and education Knowledge building Project development Collaborative international knowledge Capacity/model validation CCS commercial deployment 4 Demonstration and Commercialization Carbon Capture and Sequestration (CCS) Deel p.2

3 Sequestration Program Statistics FY2009 DOE Budget (Million $) Fiscal Year Diverse research portfolio ~ 80 Active R&D Projects Req Strong industry support ~ 39% cost share on projects Federal Investment to Date ~ $631 Million Capture of CO 2 (Pre- Combustion) 12% 2009 Budget Breakdown CO 2 Use /Re us e (incl FY08 non- CO 2 ) 3% MVA 9% Geologic Carbon Sequestration 4% Simulation and Risk Assessment 4% Re gional Partnerships 68% 5 Recent Achievements IEA GHG International Review of the Regional Partnership large scale field tests March 2008 RCSP was recognized as most significant program in the world today Excellent program that will achieve significant results Carbon Sequestration Atlas - 2 nd Edition published November 2008 contains information on stationary sources for CO 2 emissions, geologic formations with sequestration potential, and terrestrial ecosystems with potential for enhanced carbon uptake. Produced 1 st in series of Best Practice Manuals Monitoring, Verification, and Accounting of CO2 Stored in Deep Geologic Formations Numerous Phase II (Field Validation) Regional Partnership Projects Drilling, Injecting, Completed Phase III (Development Test) Regional Partnership Drilling, Injection Started Pipeline Study underway Two Funding Opportunity Announcements Pre-Combustion Carbon Capture Technologies for Coal-Based Gasification Plants Innovative and Advanced Technologies and Protocols for MVA, Simulation, and Risk Assessment in Geologic Formations Added 43 rd State to Regional Carbon Sequestration Partnerships Initiative 6 Deel p.3

4 U.S. DEPARTMENT OF ENERGY OFFICE OF FOSSIL ENERGY NATIONAL ENERGY TECHNOLOGY LABORATORY CARBON SEQUESTRATION PROGRAM Core R&D Capture Geologic Storage Monitoring, Verification, and Accounting (MVA) Technology Solutions Infrastructure Regional Carbon Sequestration Partnerships Characterization Validation Technology Solutions Global Collaborations North America Energy Working Group Carbon Sequestration Leadership Forum Simulation and Risk Assessment Development International Demonstration Projects CO 2 Use/Reuse Lessons Learned Other Large-Scale Projects Lessons Learned Asian-Pacific Partnership (APP) Reduced cost of CCS Tool development for risk assessment and mitigation Accuracy/monitoring quantified Capacity validation Indirect storage Human capital Stakeholder networking Regulatory policy development Visualization knowledge center Best practices Public outreach and education Knowledge building Project development Collaborative international knowledge Capacity/model validation CCS commercial deployment 7 Demonstration and Commercialization Carbon Capture and Sequestration (CCS) Core R&D Focus Areas and Supporting Research Pathways (Pre-Combustion) Pre-combustion Capture Membrane Capture Membrane Processes Solvent-Based Processes Solvent-Based Sorbent-Based Processes Improved Water Gas Shift Sorbent-Based Reactor Coal-to-Liquids Technology Novel Concepts Novel Concepts Geologic Carbon Geologic Carbon Storage Improved Understanding Fundamental Understanding Technology Development Technology Development MVA Atmospheric and Remote Sensing Near-Surface Monitoring Wellbore Monitoring Subsurface Monitoring Accounting Protocols MVA CO 2 Use/Re-use Approaches Approaches Conversion Conversion of of CO 2 CO 2 Non-Geologic CO 2 Storage CO 2 Indirect Storage Storage Beneficial Use of Produced Indirect Water Storage Beneficial Breakthrough Use Concepts of Produced Water Breakthrough Concepts Simulation and Risk Assessment Mathematical Models Development and Verification Improved Risk Assessment Protocols Key: Risk Assessment Focus Area 8 Research Pathway Deel p.4

5 9 Research at NETL (Office of Research & Development) Carbon Dioxide Capture: Advanced Plants CO 2 membranes and Ionic liquid solvents. Solid sorbents for CO 2 capture and enhanced water-gas-shift. Phase change sorbents and exploratory CO 2 re-use studies. Computational Science/Capture and Power Plant Simulations Computational chemistry to develop capture materials. Virtual scale-up for capture technologies. Dynamic systems modeling for plants w/capture. CO 2 Storage (Science needs to ensure success of storage projects) Integrity of seals and wellbores (e.g., cement-co 2 -water reactions) CO 2 tracers with novel collection strategies (NETL designed monitoring packs; bees; airborne methods) Improved assessment of capacity/injectivity w/ site-specific samples Multiphase flow on discrete fractures (experiment and simulation) NETL-led multi-lab initiative on science-based risk assessment LANL, LBNL, LLNL, NETL, PNNL Dynamic simulation of IGCC power plant Process Variable ft Set Point ft Controller Output lb/hr Time Hours Experimental models (left) of cement integrity that correctly match field observations (right). Excess Sorption (mmol/g of coal mf) CO 2 Molecular modeling used to optimize CO 2 interaction with polyionic liquid CO 2 membrane No confining pressure 950 psi 2450 psi Injection Pressure(atm) Determining the effect of confinement on coal storage capacity FY09 Program Funding Opportunity Announcements (FOAs) Pre-Combustion Carbon Capture Technologies for Coal-Based Gasification Plants Funding Opportunity Announcement DE-PS26-08NT projects selected; ~$14 M total award value over 3-years ($3.1M Costshare) Project awards by end of FY09 Techline at 36-DOE_Awards_Carbon_Capture_Projects.html 10 Innovative and Advanced Technologies and Protocols for MVA, Simulation, and Risk Assessment in Geologic Formations Funding Opportunity Announcement DE-FOA00023 Released Feb 18, 2009; Closing Date May 12, projects selected; ~$34.7 M total award value over 4 years ($8.1 M Costshare) Awards Sept-Oct 2009 Deel p.5

6 U.S. DEPARTMENT OF ENERGY OFFICE OF FOSSIL ENERGY NATIONAL ENERGY TECHNOLOGY LABORATORY CARBON SEQUESTRATION PROGRAM Core R&D Capture Geologic Storage Monitoring, Verification, and Accounting (MVA) Technology Solutions Infrastructure Regional Carbon Sequestration Partnerships Characterization Validation Technology Solutions Global Collaborations North America Energy Working Group Carbon Sequestration Leadership Forum Simulation and Risk Assessment Development International Demonstration Projects CO 2 Use/Reuse Lessons Learned Other Large-Scale Projects Lessons Learned Asian-Pacific Partnership (APP) Reduced cost of CCS Tool development for risk assessment and mitigation Accuracy/monitoring quantified Capacity validation Indirect storage Human capital Stakeholder networking Regulatory policy development Visualization knowledge center Best practices Public outreach and education Knowledge building Project development Collaborative international knowledge Capacity/model validation CCS commercial deployment 11 Demonstration and Commercialization Carbon Capture and Sequestration (CCS) Regional Carbon Sequestration Partnerships Engage regional, state, and local governments Determine regional sequestration benefits Baseline region for sources and sinks Establish monitoring and verification protocols Address regulatory, environmental, and outreach issues Validate sequestration technology and infrastructure 7 Regional Partnerships 43 States, 4 Canadian Provinces 350+ distinct organizations Developing the Infrastructure for Wide-Scale Deployment 12 Deel p.6

7 Regional Carbon Sequestration Partnerships Program Phases FISCAL YEAR CHARACTERIZATION PHASE Characterize all all RCSP regions for carbon capture and storage opportunities $16 M DOE +$ 5 M CS VALIDATION PHASE Validate technologies through field Validate testing technologies at selected through geologic field and testing terrestrial at selected site locations geologic and terrestrial site locations $120 M DOE + $43 M CS Scale of 100 to 10,000 Tons CO 2 Scale of 1,000,000 Tons CO 2 DEPLOYMENT DEVELOPMENT PHASE Complete Complete large-volume development deployment tests of of sequestration technologies that that will will help help enable future commercial -scale scale applications ~$500 million DOE - over $200 million cost share 13 UPDATED: National Atlas Highlights (Atlas II) Adequate Storage Projected Emissions ~ 3.8 GT CO U.S. Emissions ~ 6 GT CO 2 /yr point sources 2 /yr all sources 14 Oil and Gas Fields Conservative Resource Assessment Saline Formations North American CO 2 Storage Potential (Giga Tons) Sink Type Low High Saline Formations ,600 Unmineable Coal Seams Unmineable Coal Seams Increases from Atlas I Hundreds of Years of Oil and Gas Fields Storage Potential Available for download at Deel p.7

8 NATCARB 15 NATCARB 16 Deel p.8

9 17 RCSP Phase II: Validation Small-Scale Geologic Field Tests Data current as of April 2009 BSCSP 22 WESTCARB SWP 20 PCOR Saline formations (3,000 to 60,000 tons) Depleted oil fields (50 to 500,000 tons) Coal Seams (200 18,000 tons) Basalt formation (1,000 tons) MGSC SECARB MRCSP Injection Complete Injection Ongoing 2009 Injection 2010 Injection (Project moved to Phase III) RCSP Formation Type Geologic Province Big Sky Saline 1 Columbia Basin MGSC Oil-bearing Illinois Basin Saline 6 Coal seam 7 MRCSP Saline Cincinnati Arch, Michigan Basin, Appalachian Basin PCOR Oil-bearing Keg River, Duperow, Coal seam Williston Basin 13 SECARB Oil-bearing 14 Saline Gulf Coast, Mississippi Salt Basin, Central Appalachian, Coal seam Black Warrior Basin SWP Oil-bearing Paradox Basin, Aneth Field, Coal seam 21 Permian Basin, San Juan Basin WESTCARB Saline Sacramento Valley, Colorado Plateau Validation Phase Project Status Geologic Projects Saline formations (3,000 to 60,000 tons) Projects in Michigan, Mississippi, and Ohio have completed injection Depleted oil fields (50 to 500,000 tons) Illinois Basin and North Dakota projects complete Currently injecting in Alberta, New Mexico, Utah, Texas, Kentucky, and Mississippi Coal Seams (200-18,000 tons) Central Appalachian project complete Currently injecting in New Mexico, Illinois, North Dakota Basalt formation Wallula, WA Grande Ronde Basalt Remaining injection projects scheduled to begin injection by end of 2009 These injection tests lay the foundation and path for larger scale injections and ultimately integrated capture and storage tests 18 Deel p.9

10 Development Phase Scaling Up Towards Commercialization FISCAL YEAR Stage 1. Site selection and characterization; Permitting and NEPA compliance; Well completion and testing; Infrastructure development Scale up is required to provide insight into several operational and technical issues that differ from formation to formation Stage 2. CO 2 procurement and transportation; Injection operations; Monitoring activities Stage 3. Site closure; Post-injection monitoring, Project assessment RCSP Deployment Development Phase 10 years+ (FY ) ) 19 Development Phase Goals Assess Injectivity and Capacity Storage Permanence Areal Extent of Plume and Leakage Pathways Develop Risk Assessment Strategies Best Practices for Industry Engage in Public Outreach and Education Support Regulatory Development 20 Deel p.10

11 Core Sampling Taken 4 RCSP Phase III: Development Large-Volume Geologic Field Tests 2 Injection Well Drilled 3 Nine large-volume tests Injections initiated Injection Scheduled 2010 Injection Scheduled 2011 Injection Scheduled 6 7 Injection Started Partnership Geologic Province Type Big Sky Triassic Nugget Sandstone / Moxa Arch Saline MGSC Deep Mt. Simon Sandstone Saline MRCSP Shallow Mt. Simon Sandstone Saline PCOR SECARB Williston Basin Carbonates Devonian Age Carbonate Rock Lower Tuscaloosa Formation Massive Sand Unit Oil Bearing Saline Saline SWP Regional Jurassic & Older Formations Saline WESTCARB Central Valley Saline 21 CCS Best Practice Manuals Critical Requirement For Significant Wide Scale Deployment Capturing Lessons Learned Best Practice Manual Monitoring Verification and Accounting Site Characterization Simulation and Risk Assessment Well Construction and Closure Regulatory Compliance Public Education Terrestrial Sequestration Practices Version 1 (Phase II) Version 2 (Phase III) Final Guidelines (Post Injection) Post MVA Phase III 22 Deel p.11

12 DOE s Global CCS Demonstration Role on Six Continents Selected DOE Participation in International CO 2 Storage Projects Location Operations U.S. Invol. Reservoir Operator /Lead Int l Recognition North America, Canada Saskatchewan Weyburn-Midale 1.8 Mt CO 2 /yr commercial oil field carbonate EOR Encana, Apache IEA GHG R&D Programme, CSLF North America, Canada, Alberta Zama oil field North America, Canada, British Columbia Fort Nelson Europe, North Sea, Norway Sleipner Europe, Germany CO2SINK, Ketzin Australia, Victoria Otway Basin Africa, Algeria In Salah gas Asia, China, Ordos Basin 250,000 tons CO 2, 90,000 tons H 2 S demo > 1 Mt CO 2/ yr, 1.8 Mt acid gas/yr large-scale demo 1 Mt CO 2 /yr commercial ,000-90,000 tonnes CO 2 demo ,000 tonnes CO 2 demo Mt CO 2 /yr commercial 2004 assessment phase CCS oil field carbonate EOR saline formation marine sandstone saline sandstone gas field sandstone gas field sandstone 2008-TBD Ordos Basin Apache (Reg. Part.) Spectra Energy (Reg. Part.) StatoilHydro GeoForschungsZentrum, Potsdam(GFZ) CO2CRC BP, Sonatrach, StatoilHydro Shenhua Coal CSLF CSLF IEA GHG R&D Programme, CSLF, European Com. CSLF, European Commission, IEA GHG R&D Prog CSLF CSLF, European Commission 23 Questions? 24 Deel p.12