Storing CO 2 in Coal Seams An International Perspective

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1 Storing CO 2 in Coal Seams An International Perspective John Gale IEA Greenhouse Gas R&D Programme Coal-Seq III Forum Baltimore, USA March 25 th to 26 th

2 Storing CO 2 in Coal Seams Introduction Review the need to store CO 2 Review what the storage options are Assess their global potential Put coal seam storage in perspective CO 2 -ECBM Regions where storage in coal seams will be considered Technology status The challenges ahead

3 Why Store CO 2? International initiatives UNFCCC 1 has set a goal to stabilise atmospheric emissions of greenhouse gases Kyoto Protocol first international action to begin this process Basket of gases: CO 2, CH 4, N 2 O, HFC s, PFC s & SF 6 First commitment period is Low cost options available for Non CO 2 Gases Recognised that deep reductions will be needed to achieve UNFCC goal 1 United Nations Framework Convention on Climate Change

4 Why Store CO 2? Achieving CO 2 emission reductions Recognised Kyoto options Reduce energy use improve energy efficiency - end-use improve energy efficiency - supply/conversion Switch to different fuels Natural gas in place of coal Renewable energy - e.g. wind, biomass Nuclear power Sequestration forestry Emissions Trading, CDM and JI 1 1 Clean Development Mechanism and Joint Implementation

5 Why Store CO 2? Deep reductions will be needed Deep reductions achievable by capturing and storing CO 2 CO 2 capture and storage to be undertaken in combination with other technology measures CO 2 storage options Ocean storage of CO 2 Legal, political and environmental barriers Geological storage Favoured storage option

6 Status of CO 2 Storage Not yet recognised under Kyoto Protocol Special Report on CO 2 Capture and Storage commissioned by IPCC 1 Currently being drafted by team of International Experts Report completed in late 2005 Submitted to COP 2 11 in November 2005 Agreed by the Parties (signatories of Kyoto Protocol) CO 2 Capture and Storage can then become an internationally recognised abatement option 1 Intergovernmental Panel on Climate Change 2 Conference of the Parties

7 Storing CO 2 in Coal Seams CO 2 -ECBM Criteria Potential for storage of CO 2 combined with enhanced methane production. Commercial/economic incentives If produced methane used instead of higher carbon fuels, further reduction in CO 2 emissions. Coal seams must NEVER be disturbed. Future fate of coal seams is a key factor in determining success of an CO 2 -ECBM project.

8 Storing CO 2 in Coal Seams CO 2 injection without ECBM Without methane production there will be no economic driver Although there could be situations where there are no alternative storage options. Option likely to be high cost >50 US$/t for CO 2 storage Other CO 2 abatement options likely to be economically more favourable.

9 CO 2 -ECBM Worldwide Storage Cost Curve Storage Cost, US $ $ $ $ $ $ $80.00 Storage costs in $60.00 aquifers and gas $40.00 fields $20.00 $0.00 ($20.00) CO 2 Storage Potential, Gt

10 Geological Storage Options Globally numbers are small but must recognise that there are niche country opportunities Unminable Coal Seams 30 Gt CO 2 <2% of Emissions to 2050 Depleted Oil & Gas Fields 930 Gt CO 2 45% of Emissions to 2050 Considerable uncertainty but capacities are seductively large Deep Saline Aquifers Gt CO % of Emissions to 2050 Note: CO 2 Storage capacity at cost of 20 US $ per tonne of CO 2

11 Storage CO 2 in Coal Seams Countries with CO 2 -ECBM potential Storage Capacity, Gt CO Technical Potential Only More recent IEA GHG study predicts 59 Gt CO 2 but 38 Gt capacity in Alaska Study by GEODISC predicts 9 Gt CO 2 More IEA GHG recent study indicates More IEA GHG 6 Gt CO recent 2 study indicates 7 Gt CO 2 0 USA Indonesia Australia Russia China Canada Zimbabwe India Europe Poland South Africa

12 Storing CO 2 in Coal seams Most favourable settings USA Australia India San Juan, Uinta & Raton basins Sydney and Bowen basins Government not considering CO 2 -ECBM as having significant potential Cambay & Damodar basins Indian Government promoting technology Russia Indonesia Canada China Europe Kuznetsk basin Sumatra & Kalimantan Western Canadian Sedimentary Ordos & Qinshui basins Upper Silesian, Poland

13 Storing CO 2 in Coal seams Other countries/regions interested Japan R&D Project underway Europe Belgium, Walloon region Netherlands Currently uneconomic South Africa Government stated interest at CSLF Interest in low grade coal deposits

14 Storing CO 2 in Coal Seams Matching sources with storage sites Key determinant in the actual storage capacity that can be exploited High concentration sources(>95% CO 2 ) Early opportunities for implementation Match sources with cost effective storage options Low purity sources (4 to 15% CO 2 ) Work now underway in several regions of world Good geographical relationships in a number of countries:» USA, Canada (Alberta) and Australia (Queensland)

15 Storing CO 2 in Coal Seams Early opportunities for implementation Coal fields Oil fields High Purity Source

16 Storing CO 2 in Coal Seams Sources/stores relationships in USA. Courtesy of PNNL

17 CO 2 -ECBM Technology Status Most work is underway in North America One pilot scale project Burlington Resources Concerns regarding project in San Juan Basin High permeability coal up to 40 md Coal swelling has limited injection rates Economics look dubious without subsidies or high gas prices Scepticism that CO 2 -ECBM will be applicable outside San Juan Basin

18 CO 2 -ECBM What is needed to boost confidence? 3 new single well injection trials underway RECOPOL, Poland Hokkaido, Japan Alberta Enhanced Gas Recovery Project, Canada Results from these projects to demonstrate the successful injection of CO 2 Coal seams have much lower permeability's than San Juan Case to argue to increase technical content on CO 2 -ECBM in IPCC Special Report

19 CO 2 -ECBM Additional issues to be addressed (1) Successfully monitor the fate of injected CO 2 Demonstrate that there is minimal leakage from the coal seam Demonstrate that there is negligible seepage to the surface Develop modelling tools that can predict long term fate in coal seams Large scale demonstration project Help develop stakeholder confidence

20 CO 2 -ECBM Additional issues to be addressed (2) Develop best practise guidelines and regulations for coal seam storage Develop methodologies for: Risk assessment Environmental impact assessment Considerable concern among ENGO s 1» Surface/sub surface water pollution» Methane and CO 2 seepage» Impact on existing mining operations 1 Environmental Non - Governmental Organisations

21 Storing CO 2 in Coal Seams Conclusions Injecting CO 2 for ECBM operations in unmineable coal seams is favoured option In global terms this is not a significant CO 2 storage option But there are niche opportunities in many countries Most potential is in North America In most cases storage costs are likely to be higher than for other storage options

22 Storing CO 2 in Coal Seams The challenges ahead Demonstrate that it is technically feasible outside the San Juan Basin Convince the sceptics in the technical community Demonstrate that injected CO 2 can be monitored and its long term fate modelled Convince technical community and ENGO s Large scale Demonstration project needed to help develop stakeholder confidence Policy makers, ENGO s and public