U.S. Department of Energy s Carbon Sequestration Program

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1 U.S. Department of Energy s Carbon Sequestration Program John Litynski Project Director, Regional Carbon Sequestration Partnerships Coordinator ASERTTI 2006 Annual Meeting Cocoa Beach, FL October 18, 2006 National Energy Technology Laboratory

2 Power Generation Forecast 3,500 3,000 2,500 Billion kwh 2,000 Coal 1,500 Natural Gas 1,000 Nuclear 500 Renewables Oil EIA, Annual Energy Outlook 2006

3 Program Focuses on Coal & Electricity United States CO 2 Emissions 36% Emissions From Coal 39% Emissions From Electricity Natural Gas 21% Multiple Sources Transportation 33% Oil 43% Coal 36% Other 30% Electricity 37% Point Sources AEO2000

4 Presidents 2002 Global Climate Change Initiative Technological Carbon Management Options Reduce Carbon Intensity Renewables Nuclear Fuel Switching Improve Efficiency Demand Side Supply Side Sequester Carbon Capture & Store Enhance Natural Sinks All options needed to: Affordably meet energy demand Address environmental objectives

5 Sequestration Infrastructure Source: IPCC Special Report on Carbon Dioxide Capture and Storage, 2005

6 Source: Source: IPCC IPCC Special Special Report Report on on Carbon Carbon Dioxide Dioxide Capture Capture and and Storage, Storage,

7 Carbon Storage How does it work? Storage mechanisms vary by target class; generally multiple processes which improve over time Physical trapping Impermeable cap rock Either geometric or hydrodynamic stability Residual phase trapping Capillary forces immobilized fluids Sensitive to pore geometry (<25% pore vol.) Solution/Mineral Trapping Slow kinetics High permanence Gas adsorption For organic minerals only (coals, oil shales) 1.0 MgCO NaAlCO 3 (OH) 2

8 Carbon Sequestration Program Structure Capture of CO 2 Core R&D Sequestration Direct CO 2 storage Enhanced natural sinks Breakthrough Concepts Monitoring, Mitigation, & Verification Non-CO 2 GHG Mitigation Carbon Sequestration Leadership Forum Integration Power/Sequestration FutureGen First-of-kind integrated project Verify large-scale operation Highlight best technology options Verify performance & permanence Develop accurate cost/ performance data International showcase Infrastructure 7 Regional Partnerships Engage regional, state, local governments Determine regional sequestration benefits Baseline region for sources and sinks Establish monitoring and verification protocols Address regulatory, environmental, & outreach issues Validate sequestration technology and infrastructure Initiated FY 2003 Initiated FY 2004

9 Sequestration Program Statistics FY2006 DOE Budget (Million $) FY07 Pres. Req. $ Million Req Fiscal Year Diverse research portfolio ~ 70 R&D Projects Strong industry support ~ 39% cost share on projects Federal Investment to Date ~ $260 Million Congressionally Directed Projects 15% Non-CO2 GHG Mitigation 1% Breakthrough Concepts 5% Cross-cutting 10% MMV 11% FY 2006 Budget Sequestration 12% Regional Partnerships 27% Capture of CO2 19%

10 Core R&D Goals Develop Technology Options for GHG Management That... Are safe and environmentally acceptable Separation and Capture R&D Goals 2007 have two technologies < 20% increase in Cost of Energy *** 2012 developed two technologies < 10% increase Cost of Energy Sequestration/Storage R&D Goals 2012 predict CO 2 storage capacity with +/- 30% accuracy Develop best practice reservoir management strategies that maximize CO 2 trapping Monitoring, Mitigation & Verification 2012 ability to verify 95% of stored CO 2 for credits (1605b) CO 2 material balance to >99% Year * Cost Performance Goals COE Penalty IGCC Plants (% Increase) <10 0 COE Penalty PC Plants (% Increase) *Cost/Energy offset from sequestering CO 2 with criteria pollutants NOX, SOx, H2S (gasification) 0 *** technologies identified and ready to move to demonstration (~ 4yrs) and then deployment (~4 yrs) IGCC 20% and PC 45%

11 Issue Demonstrated technology is costly Scale-up (Lab scale to Commercial Plant) Pathways Pre-combustion capture Post-combustion capture Oxygen-fired combustion Optimized engineering Separation & Capture R&D Why Capture Costs Important Pre-Combustion Compression Costs (3-12%) w/membrane (3-5%) Transportation & Storage Costs (2-3%) Capture Costs (what s left) At 20% COE (5-15%) At 10% COE (-5-5%) Post-Combustion CO 2 Capture Compression Costs (8-12%) Transportation & Storage Costs (2-3%) Capture Costs (what s left) At 45% COE (30-35%) At 20% COE (5-10%) Capture Storage Transpor tation Compres sion COE

12 Separation and Capture Overview Open Open Category Category Carnegie Mellon Univ. Carnegie Mellon Univ. Modeling assessment tools Modeling assessment tools Princeton Univ. Conceptual Princeton Univ. Conceptual CO CO 2 capture designs 2 capture designs ANL Evaluation of CO ANL Evaluation of CO 2 Capture Options 2 Capture Options Technology Target Target <10% <10% increase increase in in COE COE for for new new plants plants by by <20% <20% increase increase in in COE COE for for existing existing plants plants by by >90% >90% CO CO 2 Capture 2 Capture capability capability Safe Safe and and Effective Effective Commercialization Outcomes Outcomes Efficient low-cost electricity Efficient low-cost electricity and hydrogen production and hydrogen production with low GHG emissions with low GHG emissions Commercially viable options for Commercially retrofit of existing viable plants options for retrofit of existing plants to reduce CO to reduce CO 2 emissions 2 emissions Pre-Combustion Pre-Combustion Decarbonization Decarbonization Advanced Sorbents Advanced Sorbents Hybrid Sorbent/Membranes Hybrid Sorbent/Membranes Oxyfuel Oxyfuel O O 2 Selective Membranes 2 Selective Membranes Advanced Cooling Cycles Advanced Cooling Cycles Compact Boilers Compact Boilers Post Post Combustion Combustion Chemical and Physical Chemical and Physical Sorbents Sorbents Hybrid Sorbent/Membranes Hybrid Sorbent/Membranes Gas/Liquid Contactors Gas/Liquid Contactors NEXANT CO NEXANT CO 2 Hydrate 2 Hydrate NETL Dry Sorbents, NETL Dry Sorbents, Membranes Membranes BP CO BP CO 2 Capture Project 2 Capture Project U. Minn Hydrogen Silica U. Minn Hydrogen Silica Membranes Membranes Eltron Membrane WGS Eltron Membrane WGS INEEL, LANL High INEEL, LANL High Temperature polymer membrane Temperature polymer membrane Praxair OTM boilers and Praxair OTM boilers and process heaters process heaters Alstom Power O Alstom Power O 2 Fired CFB 2 Fired CFB Foster-Wheeler Foster-Wheeler Technical/Economic viability of Technical/Economic viability of O O 2 enriched PC-Fired system 2 enriched PC-Fired system SRI O SRI O 2 Retrofit 2 Retrofit B&W -5 MM BTU/hr testing B&W -5 MM BTU/hr testing BOC CAR Process BOC CAR Process NETL Aqueous Ammonia NETL Aqueous Ammonia NETL Amine Enriched NETL Amine Enriched Sorbents Sorbents UT Austin K UT Austin K 2 CO 2 CO 2 /Piperazine 2 /Piperazine adsorption adsorption U New Mexico Membranes U New Mexico Membranes Notre Dame Ionic Liquids Notre Dame Ionic Liquids RTI Dry Regenerable Sorbent RTI Dry Regenerable Sorbent

13 Driving Down Capture Costs for IGCC % Increase in COE (c/kwh) (c/kwh) (c/kwh) (c/kwh) March 2006 Update 5.38 (c/kwh) 5.13 (c/kwh) 5 5 A B C D E F G 5.13 (c/kwh) Basis: No Capture = 4.89 cents/kwh 400 MWe Net output Illinois #6 Bituminous Coal 90% CO 2 Capture 50 Mile Pipeline 5,000 ft saline formation storage A 2000 Selexol Scrubbing B 2005 Advanced Selexol Scrubbing C Advanced Selexol Scrubbing w/co-storage H 2 S/CO 2 D Adv. Selexol + Ion Transport O 2 Membrane (ITM) + Co-Storage E H 2 /CO 2 selective Water Gas Shift (WGS) Membrane + Co-Storage F ITM + H 2 /CO 2 selective WGS Membrane + Co-Storage G Chemical Looping with Co-Storage H 2 S/CO 2

14 Driving Down Capture Costs for PC % Increase in COE (c/kwh) (c/kwh) (c/kwh) March 2006 Update 6.34 (c/kwh) 6.11 (c/kwh) 5.97 (c/kwh) 5.93 (c/kwh) A B C D E F G H 5.56 (c/kwh) 20 Basis: No Capture = 4.63 cents/kwh 400 MWe Net output Illinois #6 Bituminous Coal 90% CO 2 Capture 50 Mile Pipeline 5,000 ft saline formation storage A 2000 Amine Scrubbing B 2005 Advanced Amine Scrubbing C Advanced Amine Scrubbing + Co-Storage SO x /CO 2 D Aqueous Ammonia Scrubbing E Amine-Enhanced Solid Sorbents F Aqueous Ammonia Scrubbing + By-product Sales G Ultra Supercritical Oxy-Fuel Combustion + ITM Membrane H USC Oxy-Fuel Combustion + ITM Membrane + Co-Storage SOx/CO2

15 OxyCombustion and Other CO 2 Capture Technologies FOA (DE-PS26-05NT42464) Released in FY05 2 New Oxycombustion Projects Selected B&W Project Team: Air Liquide, Battelle BOC Group Project Team: Western Research Institute, Alstom Total Value of awards $9.6 MM Awarded FY06

16 Funding Opportunity Announcement DE-PS26-06NT42829 Novel Technology and Commercially Focused Approaches to CO 2 Capture and Separation for Existing and Future Carbon Based Electric Generation Power Plants Released: April 19, 2006 Closing Date: June 16, 2006 Area of Interest 1 - Breakthrough Approaches to Carbon Dioxide and Separation Area of Interest 2 - Continued Development of Direct CO 2 Capture and Separation Technologies Area of Interest 3 - Field-testing of CO 2 Capture and Separation Technologies Up to $39 Million DOE over 3-yrs Cost-Sharing required of 20% of project costs Website:

17 Geologic Sequestration Overview Technology Targets Develop Understanding of Trapping Mechanisms Demonstrate design and operation techniques to optimize storage Assess historical well integrity Develop materials resistant to corrosion Develop Management plans for risk and produced waters Deep Coal Seams Outcomes Lab tests for reservoir modeling studies Effects on CO 2 on major coal types Site selection criteria Saline Saline ReservoirOutcomes Reservoirs Outcomes CO 2 -fluid interactive studies Geochemical and flow models Depleted oil Oil & NG NG reservoirs Reservoirs Outcomes Geochemical research Database on cap rock Modeling & testing for maximized storage of CO 2 Erosion of cement and corrosion of steel and possible cross effects Other Other Studies Studies Outcomes Outcomes Modeling & Assessment Shale Consol Sequestration of CO 2 in coal seams. Economics CO 2 injection into degassed unminable coal seam ARI Geologic sequestration of CO 2 in unminable coal beds. Demonstrate N 2 /CO 2 ECBM and CO 2 seq. process. Develop matrix & simulation Alabama Geo Survey Geologic screening criteria Potential of specific site, mapping, target areas and capacity ORNL Effects of temperature and gas mixing in underground coal beds Texas Engr. Exp Evaluate the feasibility, environmental and economic impacts of seq. CO 2 in Texas low-rank coal bed NETL Physics and chemistry of coal seam sequestration and coal bed methane production OSU PSU Unminable Coal beds Battelle Columbus Labs Conduct reservoir simulation in regional reservoir University of Texas Development of expertise in design and performances assessment of CO 2 disposal facilities University of Utah Multiphase behavior of CO 2 in saline reservoirs NETL Geology and reservoir simulation for brine field Investigation of gas/water/rock interaction and chemistry Activation of carbonation minerals for CO 2 Seq GEO-SEQ (LLNL, LBNL, ORNL) Joint project between academia and industry. Optimize models with economic benefits. Improve capacity assessment. Field demonstration program Univ of Kentucky Investigate shale s ability to release CH 4 by CO 2 adsorption ORNL Practical photosynthesis conversion NETL Geologic sequestration core flow lab PNNL Sequestration in basalt-formations Texas Tech University Storage Rate Capacity

18 Monitoring, Mitigation, and Verification Technology Target Indirect monitoring technology acceptable to permitting agency Direct CO 2 monitoring to detect leaks Reservoir monitoring test Demonstrate advanced monitoring technologies for above and below ground carbon Understanding of equilbria between multi component gases, oil, and water Reliable monitoring and verification technology for CO 2 storage sites Computer simulation model to effectively monitor CO 2 depleted oil reservoirs, abandoned coal mines, and saline reservoirs Instrumentation and measurement protocols for carbon inventories in soils, forests, and geologic formations Advanced Resources, Int. Document empirically the capability of depleted oil and gas fields to sequester CO 2 safely and securely SNL/LANL Computer simulation model for field test including measurement of fluid pressure changes for depleted oil reservoirs Dakota Gasification Weyburn project Develop monitoring techniques (surface Seismic & tracer injection) BP Risk Assessment and monitoring tools developed GEO-SEQ LBNL Seismic & EM Imaging LLNL Electrical Imaging ORNL Isotope tracers LANL Applied sequestration partnership Nature Conservancy Demonstrate and refine the tools and methodologies for cost-effective, verified measurements of the long-term potential of various carbon sequestration and land use emissions avoidance strategies University of California Sleipner sea floor survey Cal Tech Develop instruments that will measure and monitor CO2 emissions for geological sequestration sites Ohio State Reclaimed mined soils of Ohio Ohio State University Research Foundation Develop and test procedures to determine size of coal-derived carbon in reclaimed mine lands BNL Non-invasive soil carbon scanning system Univ. of Kansas Construct database to evaluate geological locations and characteristics of CO 2 sources. Modeling and Assessment MIT Development of a carbon management GIS for US

19 Non-CO2 GHG Mitigation Technology Target Demonstration viability of large-scale oxidation of coal mine ventilation air methane Technology options for land fill gas Upgrade low Btu methane streams from coal mines and landfills Univ. of Delaware (Yolo County) Intelligent Bioreactor System -Full-scale Bioreactor Landfill for abating GHG related to organic wastes Data collection & monitoring of landfill methane gas with bioreactors CONSOL Use of coal mine ventilation air methane Demonstration flow reversal of ventilation air methane VELOCYS Separation of nitrogen from methane Univ. of Kansas Integrated landfill gas sequestration University of North Carolina, University of Michigan Design of landfill covers to minimize/immobilize methane production University of Kansas\ Inject landfill gas into unmineable coal seams

20 2006 Programmatic Highlights Awarded and Initiated 7 Regional Partnerships Phase II Field Validation Testing Value of over $145 Million PCOR RP initiated storage in Zama Alberta Field Regional Partnerships Designated as a CSLF Project OxyCombustion and Other CO 2 Capture Technologies Funding Opportunity Announcement (DE-PS26-05NT42464) Selections 2 awards ASME Review of Projects NRC/NAS Review of Program Novel Technology and Commercially Focused Approaches to CO 2 Capture and Separation (DE-PS26-06NT42829) Funding Opportunity Announcement Released

21 2006 Programmatic Highlights EPA Engagement On Regulations for Sequestration Short-Term UIC: Class V Experimental for projects EPA to release guidance Oct 2 National Sequestration Conference Release of Annual Programmatic Roadmap Release of Annual Portfolio Update Discussions with Office of Science on Collaboration Inspector General (IG) Audit of Program (Apr-Sept 2006) Preliminary indications favorable Educational Outreach Curriculum Middle School and High School curriculums complete Disseminated through workshops at the National Science Teacher Association Conference in April and October 2006

22 Carbon Sequestration Regional Partnerships Developing the Infrastructure for Wide Scale Deployment Phase I (Characterization) 7 Partnerships (40 states) 24 months ( ) Phase II (Field Validation) 4 years ( ) All seven Phase I partnerships continued $100 million federal funds $45 million in cost share Phase III (Deployment) 10 years ( ) Several large scale injection tests

23 Regional Carbon Sequestration Partnerships Validation Phase Field Tests Representing: >300 Organizations 40 States 4 Canadian Provinces 3 Indian Nations 34% cost share Big Sky Injecting between ,000 tons of CO 2 PCOR WESTCARB MGSC MRCSP Partnerships MRCSP MGSC SECARB SRCSP Southwest Southeast Field Test Type Oil bearing (9) Gas bearing (1) WESTCARB Big Sky PCOR Saline aquifer (10) Coal seam (5) Terrestrial (11)

24 Partnerships At-a-Glance California Energy Commission New Mexico Institute of Mining and Technology Montana State University University of North Dakota, Energy & Environmental Research Center University of Illinois, Illinois State Geological Survey Battelle Memorial Institute Southern States Energy Board

25 Characterization Phase Accomplishments Characterized opportunities for capture and storage of carbon dioxide in North America Developed National Carbon Sequestration Atlas and Geographic Information System (NATCARB) Completed regulatory analysis and published recommendations for states IOGCC Report 2005 Public outreach Documentary of Carbon Sequestration Focus groups used to gauge public opinion Outreach materials - websites and fact sheets Developed regional action plans for regulatory permitting, MMV, outreach, and project implementation Identified promising opportunities for validation phase

26 Characterization Phase Accomplishments Geologic Storage Capacity Abundant storage capacity in North America Coal Seams and Shale ~ 28 GT Oil and Gas Reservoirs - ~19 GT Saline Formations - >1,000 GT Value Added Products Value added products needed to develop infrastructure since most sinks are vertically stacked Oil ~ 16 billion barrels of oil during sequestration in favorable fields Coal Seams ~ 63 TCF CBM during sequestration in unminable coal seams Terrestrial ~ 8 GT of capacity identified over the next 80 years

27 NATCARB National perspective of sequestration potential, sources, and infrastructure Decision support tools Polygons for source data Capacity buffers Pipeline tool Gateway to partnerships Outreach tool Continue to collaborate

28 CCS Regulatory Analysis Interstate Oil and Gas Compact Commission Capture Existing permitting structure under federal/state versions of CAA Measurement and accounting standards required Transportation Existing regulation exist throughout North America for transport of CO2 Industry and professional organizations have developed standards for CO2 pipeline construction Injection Class II permitting framework exist under the EPA and States Underground Injection Control (UIC) programs for oil and gas Class V has been used to permit several small tests Existing permitting structure needs to be amended to address risk, MMV, reservoir interactions, related to CO2 Post Injection Framework needed to address the site abandonment, long-term liability, and monitoring requirements. Can be developed from the existing UIC program

29 Validation Phase Goals 1. Perform regional technology validation tests for 2012 technology assessment 2. Refine and implement MMV protocols 3. Continue regional characterization 4. Regulatory compliance activities 5. Implement public outreach and education 6. Identify commercially available sequestration technologies ready for large scale deployment

30 West Coast Regional Carbon Sequestration Partnership California Energy Commission Source: California Energy Commission, 2006 Partnership covers 5 states and 1 Canadian Provinces Significant consumer of electricity and fossil fuels Long-history of oil production Capacity greater than 200 billion tones Geologic Field Tests Stacked depleted gas and saline formation test Deep saline injection in Arizona Terrestrial sequestration Bio-energy and forest fuel reduction measures

31 Big Sky Regional Carbon Sequestration Partnership Montana State University, Bozeman Partnership covers 6 states Over 25 partners including several CSLF countries Extensive Reactive Carbonate and Basalt Formations Geologic Sequestration Tests Basalt formations in the Grande Ronde Basalt Reactive Carbonates in the Madison Formation Several Terrestrial field tests planned No-till agriculture Reforestation Rangeland restoration Source: PNNL, 2005

32 Plains CO2 Reduction Partnership UND, Energy and Environmental Research Center G2 G3 G1 T1 Source: UND, EERC 2005 Partnership covers 9 states and 3 Canadian Provinces with over 40 partners 218 billion tonnes geologic storage capacity in oil, coal, and saline formations Geologic Demonstrations G1 Beaver Lodge, North Dakota. CO2 injection site for CO2 sequestration and EOR G2 Zama, Alberta. Acid gas Injection site for CO2 sequestration and EOR G3 Lignite coal in North Dakota. CO2 injected into an unminable lignite coal seam for CO2 sequestration and possible ECBM production Terrestrial Demonstration T1 Restoration of Wetlands to tests MMV and accounting protocols

33 Midwest Geological Sequestration Consortium Illinois State Geological Survey Covers Illinois Basin, IL, KY, and IN Large storage potential 42 billion tones in different formations Value added products Six field tests proposed from portfolio of 34 4 sites being selected 11 oil operators involved Coal seam site selected Saline site Conducting structural characterization using seismic Source: Illinois State Geological Survey, 2006

34 Midwest Regional Carbon Sequestration Partnership Battelle Laboratories Cincinnati Arch Source: Battelle, 2006 Michigan Basin Appalachian Basin Covers most of the Midwest and Mid Atlantic Region of the United States Nations Engine Room 21% of U.S. electricity production 75% from coal Significant geologic storage capacity Over 500 billion tones of CO2 Geologic Demonstrations Appalachian Basin Cincinnati Arch Michigan Basin Terrestrial Demonstrations No-till agriculture, mine land restoration, and wetland restoration

35 Southwest Partnership on Carbon Sequestration New Mexico Institute of Mining and Technology Partnership covers 8 states Large potential capacity throughout the major basins 30 year history of CO2 EOR and pipeline industry Geologic Sequestration Tests 2 CO2 Sequestration and EOR Recovery Tests 1 Coal bed sequestration and methane recovery test 1 Saline formation test Terrestrial Sequestration Riparian restoration and regional assessment Source: Colorado Geological Survey

36 Southeast Regional Carbon Sequestration Partnership Southern States Energy Board Partnership covers entire Southeastern and Gulf Coast of the United States Large potential capacity Over 500 billion tones in oil, coal, and saline formations Nearly 30% of national CO2 emissions from the region Geologic Sequestration Tests Two coal bed storage tests in Alabama and Appalachia Stacked storage test along gulf coast EOR/Saline Deep saline test Source: Massachusetts Institute of Technology Source: Virginia Center for Coal and Energy Research, Virginia Tech

37 Wind Generation to Support Sequestration Evaluation of the feasibility of using wind power to provide a portion of the electricity needed to operate the CO 2 compressors at the Great Plains Synfuels Plant. Pipelines will require recompression facilities at locations off the conventional power grid

38 Worldwide CO 2 Storage Activity 8 Snohvit K C 16 Weyburn 4 L M Sleipner Miller Field K12-B 3 19 U T Carson 1 A S V D G O P H Q R F B N Y E W X I J 15 Allison Unit 6 In Salah Project size (total CO 2 injection) Commercial (greater than 1 MMtCO 2 ) Large pilot (100 ktco 2 to 1 MMtCO 2 ) Pilot (11 ktco 2 to 99 ktco 2 ) Micro-pilot (10 ktco 2 or less) Storage formation Oil field Gas field Saline formation Coal seam 9 Secunda 2 Gorgon 11 Otway Basin Projects that are part of the Regional Carbon Sequestration Partnership Worldwide CO 2 Storage Projects Partnership A SRCSP B SRCSP C PCOR D SRCSP E MGSC F MRCSP G MRCSP H MRCSP I SECARB J SECARB K Big Sky Geologic Province Paradox Basin Permian Basin Keg River Formation San Juan Basin Illinois Basin Cincinnati Arch Michigan Basin Appalachian Basin Gulf Coast Gulf Coast Grand Ronde Basalt Total CO 2 Injection (tons CO 2 ) 525, , ,000 75,000 10,000 10,000 10,000 10,000 7,500 7,500 3,000 Approximate Depth (ft) 5,800 5,700 4,900 3,000 5,000-10,000 8,000-10,000 4,000 2,500-4,000 8,000 10,000 2,700 Partnership M PCOR N SECARB O MGSC P MGSC Q MGSC R MGSC S SRCSP T WESTCARB U WESTCARB V WESTCARB W SECARB Geologic Province Williston Basin Mississippi Salt Basin Illinois Basin Illinois Basin Illinois Basin Illinois Basin Paradox Basin Central Valley CA Central Valley CA Kaiparowits Basin Central Appalachian Total CO 2 Injection (tons CO 2 ) 3,000 3,000 2,500 2,500 2,500 2,500 2,000 2,000 2,000 2,000 1,000 Approximate Depth (ft) >500 7,500 1,200-2,800 Up to 3,150 2,800-3,150 2,800-3,150 6,000 5,000 4,000 8,000 1,000 Project Name Carson 1 2 Gorgon 3 Sleipner Weyburn 4 Miller Field 5 In Salah 6 K12B 7 Snohvit 8 Secunda 9 Injection Start Date Total CO 2 Injection (tons CO 2 ) 40,000,000 a >36,000,000 b 20,000,000 20,000,000 18,000,000 c 17,000,000 8,000,000 >7,000,000 d TBD Approximate Depth (ft) TBD 7,500 2,600-3,300 4,800 13,000 5,900 13,000 8,500 TBD Allison Unit Otway Basin 12 Ketzin Minami-Nagaoka West Pearl Queen 15 Frio 16 Fenn Big Valley Yubari 17 Project Name 18 Qinshui Basin 19 RECOPOL Injection Start Date Total CO 2 Injection (tons CO 2 ) 360, ,000 60,000 10,000 2,100 1, Approximate Depth (ft) 3,100 6,500 2,300 3,600 TBD 4,900 4,300 2,950 1,650 3,600 L PCOR Duperow Formation 3,000 1,000 X SECARB Black Warrior Basin 1,000 2,300-5,000 a 4 MMt/yr * 10 yrs b 10,000 t/d * 365 * 10 yrs c 1.2 MMt/yr * 15 yrs d 2,000 t/d * 365 * 10 yrs Y MGSC Illinois Basin 750 1,000

39 Regional Partnerships Addressing Key Issues Geologic Capacity estimates Site selection criteria Reservoir modeling and validation Monitoring, Mitigation, and Verification (MMV) Operational considerations Economics of sequestration Develop Best Practice Management Plans (BPMP)

40 Regional Carbon Sequestration Partnerships Deployment Phase Scaling Up FY (10 years) Several Large Volume Sequestration tests in North America Injection rates up to 1,000,000 tons per year for several years Scale up is required to provide insight into several operational and technical issues in different formations

41 Deployment Phase Activities Years 1-3 Years 4-7 Years 8-10 Site selection and characterization Permitting and NEPA compliance Well completion and testing Infrastructure development CO2 procurement and transportation Injection operations Monitoring activities Site closure Post injection monitoring Project assessment

42 Deployment Phase Sinks and Sources Sinks Saline Formations representative of region Value added must maximize storage of CO 2 Sources Natural vents High purity industrial vents Ethanol, refineries, gas processing Post combustion CO 2 capture advanced capture system

43 FutureGen Connection Project Development FutureGen Operation Geologic Sink Opportunities Permitting, Safety, Regulatory, Outreach MMV Protocols MMV & Capture Technologies Validate Deployment Opportunities Characterization Validation Deployment Regional Partnerships R&D Advances CY

44 Sequestration Program FY07 in brief FY07 Plans Selections and Awards from Funding Opportunity Announcement Novel Technology and Commercially Focused Approaches to CO 2 Capture and Separation from Existing and Future Carbon Based Electric Generating Power Plants Capture R&D Plan to be released Regional Partnerships will continue to initiate drilling and injection of CO 2 as part of the 25 expected geologic field tests Planning for large volume sequestration tests National Lab Call Announcement

45 Questions?