Tomakomai CCS Demonstration Project

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1 Tomakomai CCS Demonstration Project CSLF TECHNICAL GROUP MEETING October 4, 2016 Japan CCS Co., Ltd. (JCCS)

2 Overview of Tomakomai Demonstration Project Hokkaido Is. Tomakomai TOKYO

Tomakomai CCS Demonstration Project Schedule 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Survey Preparation CO2 Injection Baseline Monitoring Monitoring Years are in Japanese Fiscal Years (April of calendar year thru March of following year) Tomakomai CCS Demonstration Project

Demonstration Project Operation Schedule 4 As of May 2016 FY2016 FY2017 FY2018 FY2019 FY2020 SURFACE INJECTION ONSHORE OFFSHORE FACILITIES WELLS MONITORING FACILITIES T E S T Operation (CO 2 Separation/Injection) Injection Observation (Observation Well OB-1~3) (Temperature, Pressure, Natural Earthquakes, Micro-seismicity) Observation (Onshore Seismometer) (Natural Earthquakes, Micro-seismicity) Observation (OBC, OBS) (Natural Earthquakes, Micro-seismicity) 2D Seismic Survey(*)-1 2D Seismic Survey 3D Seismic Survey(*)-1 3D Seismic Survey Marine Environmental Survey (Seasonal) (Current, Water Quality, Seabottom Conditions, Marine Life, etc.) 2D Seismic Survey (*)-1 2D 3D Seismic Survey: survey method utilizing seismic reflection waves discharged from a seismic source of a seismic exploration vessel in order to delineate the subsea geological structure and/or formation characteristics. In this case, the data acquired is used to estimate the CO2 storage distribution by 2D cross sections or arbitrary planal diagrams in 3D space. Tomakomai CCS Demonstration Project

Flow Scheme of CCS Demonstration Project 5 CO 2 source Capture facility Injection facility PSA system PSA in Activated amine process hydrogen (Hydrogen production unit) Pipeline, approx. 2.5km Pipeline PSA off containing PSA offgas Capturing 100,000 CO CO 2 corresponding to 2 of more than 100,000 t/year more containing than 100,000 CO 2 t/year t/year or more of CO 2 Existing oil refinery PSA (Pressure Swing Adsorption ) Compressors Injection wells Reservoir : Sandstone : layers of of Moebetsu Fm. Fm. 1,000~1,200m under the the seabed Reservoir : T1 : T1 Member Menberof of Takinoue Fm. 2,400~3,000m under the the seabed

Project Goal, Objectives and Tasks 6 Project Goal Demonstrate the technical viability of a full cycle CCS system from capture to injection and storage in saline aquifers on a practical scale, contributing to the establishment of CCS technology for practical use by 2020 and future deployment of CCS projects in Japan Objectives In order to demonstrate technical viability, safety and reliability of CCS system; Capture and inject 100,000 tonnes/year or more of CO 2 for 3 years Monitor by the installed monitoring system and surveys for 5 years Tasks Prepare capture and injection facilities, injection wells with a design capacity of 200,000 tonnes of CO 2 per year Prepare monitoring systems and gather data for geological storage and seismicity Estimate CO 2 behavior in the reservoirs by analysis of seismic and well data Confirm that existing technologies adopted in the system work properly and efficiently Confirm effectiveness of site selection guideline of METI by demonstrating no CO 2 leakage Establish guidelines for building and improving geological models Prepare technical standards of operation and safety for practicalization of CCS technology Share information and data obtained from the project with the public and relevant community groups in order to increase awareness and understanding of the benefits and viability of CCS

Anticipated Outcomes 7 Outcomes Confirmation of the technical viability of a full CCS system in Japan Clarification of technical and social areas to be improved or solved for commercialization Mitigation of public concerns about earthquakes Natural earthquakes do not influence or negatively impact stored CO 2 CO 2 injection does not cause any perceptible increase in earth tremors Enhancement of awareness and understanding of CCS technology and its benefits Other Considerations Verification of onshore to offshore injection model Lower drilling and maintenance costs Securing public acceptance for offshore storage may be easier than onshore Potentially smaller impact on environment in worst case leak scenario Applicability to island nations

Main Features of Tomakomai CCS Project 8 First full cycle CCS system deployed in Japan Two-stage CO 2 capture system providing for low energy consumption Deviated CO 2 injection wells drilled into offshore reservoirs from an onshore site. Injection interval length exceeding 1,100m to enhance injection efficiency Extensive monitoring system to address concerns about earthquakes CO 2 storage governed by Japanese law reflecting London 1996 Protocol First case of CCS near urban area requiring extensive stakeholder engagement

Positional Relation of Injection & Monitoring Systems 9 OBC (Ocean Bottom Cable): used for 2D seismic survey and monitoring of micro-seismicity and natural earthquakes. OBS (Ocean Bottom Seismometer): used for monitoring of micro-seismicity and natural earthquakes.

Positional Relation of Onshore Facilities 10 Gas supply facility CO 2 capture and injection facility Injection well for Takinoue Formation Gas pipeline Google 2013 ZENRIN Image 2013 DigitalGlobe Injection well for Moebetsu Formation

Bird s Eye View of Capture and Injection Facilities 11 Flare / vent stack CO 2 absorption tower Injection wells Nitrogen supply system CO 2 Amine tank CO 2 stripping tower Low pressure flash tower PSA off gas compressor LP steam boiler HP steam boiler Instrument air supply system Pure water production system Primary low pressure CO 2 compressor Control building Cooling tower Pure water tank Secondary low pressure CO 2 compressor High pressure CO 2 compressor Waste water treatment pit Fuel oil tank Steam turbine generator From CO 2 Source Industrial water intake pit

Conventional CO2 Capture Process 12 CO 2 -lean gas CO 2 CO 2 Absorption Tower CO 2 Stripping Tower CO 2 -containing gas Heat CO 2 Rich amine CO 2 Lean amine

Tomakomai CO2 Capture Process 13 In LPFT, CO 2 is stripped by depressurization; thermal energy of water vapor of CO 2 Stripping Tower is also utilized to strip CO 2 Greater part of semi-lean amine from LPFT is returned to CO 2 Absorption Tower for CO 2 absorption; as only the remaining smaller portion is sent to CO 2 Stripping Tower, reboiler heat required can be reduced If pressure of gas containing CO 2 and partial pressure of CO 2 are relatively high, amine reboiler heat consumption is only 1/3~1/2 of conventional capture process CO 2 -lean gas CO 2 Low-pressure Flash Tower (LPFT) CO 2 Absorption Tower CO 2 CO 2 Stripping Tower Semi-lean amine Semi-lean amine CO 2 -containing gas Heat Rich amine Lean amine

Depth in meters (bmsl) Schematic Geological Section Observation Well for Moebetsu Fm. Injection Well for Moebetsu Fm. Quaternary sediments Mukawa Fm. (Sandstone, Mudstone, etc.) Moebetsu Fm. (Sandstone) Nina Fm. (Mudstone) Biratori-Karumai Fm. (Mudstone) Moebetsu Fm. (Mudstone) (TD 3,650m) Injection Well for Takinoue Fm. (projected) Cap rock Cap rock Reservoir Fureoi Fm. (Mudstone) T1 Member of Takinoue Fm. (Volcanic Rocks) Reservoir (TD 5,800m) Takinoue Fm. (Mudstone) Landward(North) Aspect Ratio=1:1 Seaward(South)

Quaternary 464mMD 464mMD 458mVD Mukawa Fm Mukawa Fm 1,525mMD 864mVD 1,525mMD Moebetsu Fm (Mudstone) Moebetsu Fm (mudstone) 2,395mMD 2,415mMD 970mVD Moebetsu Fm Fm (sandstone) 3,443mMD (Sandstone) / 1,153mVD TD 3,650mMD Nina 1,188mVD Fm TD 3,650mMD 1,188mVD TRSV 1st KOP @240m (1st BUR : 3deg/30m) 3-1/2" TBG Tubing-Retrievable Safety Valve (TRSV) Injection well for Moebetsu Formation GL 31.5" S/P @10m TRSV Control Line 20" CSG @201.5m 13-3/8"ESC @390.11mMD / 388.3mVD 1st EOB @1,047mMD 806.23mVD CO 2 resistant cement Drilling :12 th March 2015-22 nd June 2015 KOP depth Vertical depth Horizontal reach Maximum inclination Total depth 240m 1,188m 3,058m 83 3,650m 13-3/8" 1st Stage TOC @390mMD 9-5/8" 2nd Stage TOC (by CBL) @1,056mMD / 804.41mVD 13-3/8"CSG @1,354mMD / 841.12mVD 17-1/2"Hole @1,359mMD 9-5/8"ESC @1,556.41mMD / 867.56mVD 9-5/8" 1st Stage TOC (by CBL) @1,805mMD / 896.82mVD 9-5/8"CSG @2,405mMD / 971.38mVD P-T Sensor Cable Inclination: 83 P-T Sensor Perforated liner covered by screens at injection interval Perforated liner PT sensor CO 2 corrosion resistant steel (Chrome) AHC PKR @2,087.68mMD / 932.66mVD Mule shoe guide @2,305.84mMD / 959.38mVD 7"TOL@2,287.57mMD / 957.13mVD 2nd KOP @2,672m (2nd DOR : 1.5deg/30m) Screen CO 2 resistant cement 7" CMTG port@2,456.18mmd / 977.8mVD 15 7"(L) @3,650mMD / 1,187.86mVD 9-1/2"Hole @3645.4mMD/ 1186.94mVD 8-1/2"Hole @3,650mMD/1187.86mVD 2nd EOD @2,780mMD 1,022.91mVD Inclination: 79 TRSV

Schematic Diagram of Monitoring System 16 Control Building Observed Signals Hi-net Data (Natural EQ) CO 2 Observed Signals Observed Signals Observed Signals Observed Signals Observed Signals CO 2 Observed Signals Observed Signals Onshore Seismometer Observation well OB-1 for Takinoue Fm. (converted from an survey well CCS-1) Observation Well OB-2 For Moebetsu Fm. Observation Well OB-3 For Takinoue Fm. Inj. Well Takinoue Fm. Inj. Well Moebetsu Fm. OBS Wired OBS OBS OBS Permanent-Type OBC Moebetsu Fm. Sandstone Layer : CO 2 Flow Meter : Pressure & Temperature Sensor : 3-Component Seismic Sensor Seismic Monitoring Program Takinoue Fm. T1 Member

Marine Environmental Survey 17 Marine environment shall be surveyed based on Act on Prevention of Marine Pollution and Maritime Disaster by which geological storage of CO 2 under the seabed is regulated. 1. Survey Area 12 survey points in Tomakomai Port Area 2. Methods of Survey Seabed survey by Side-Scan Sonar and Sub-bottom Profiler Current direction and speed survey by Current Meter Sampling of seawater by Water Sampler for concentration of salt etc. and plankton observation Seabed mud survey by Bottom Sampler Collection of benthos by Net or Dredge Unit Observation of benthos by divers or ROV 3. Surveys in Three Stages During EPC period During demonstration operation During CO 2 injection After CO 2 injection After demonstration operation Environmental Survey Points Takinoue Obs Well Takinoue CO 2 Plume CO 2 Capture & Injection Plant St : Survey Point Moebetsu CO 2 Plume Moebetsu Obs Well OB-2 (vertical) Side-Scan Sonar Water Sampler Bottom Sampler Dredge Unit ROV Plotted on Japan Coast Guard nautical chart

Tomakomai CCS Promotion Association 18 2008 Establishment of Japan CCS 2009 3D seismic survey offshore Tomakomai 2010 Establishment of Tomakomai CCS Promotion Association 2012 Commencement of Tomakomai CCS Demonstration Project Tomakomai CCS Promotion Association Activities : 1) Attraction of CCS Demonstration Project to Tomakomai 2) Information communication to Tomakomai citizens on CCS, etc. Chairman : Tomakomai City Mayor Members : All major corporations in Tomakomai and industrial associations, Tomakomai Fishery Cooperative Secretariat : Tomakomai City Annual publication Construction site visit by members

Conclusion Full cycle CCS system from capture to storage is in operation; objective is to develop practical CCS technology by around 2020 Demonstrate safety and reliability of CCS system Remove concerns about earthquakes Unique features of project Efficient two-stage capture system Deviated injection wells from onshore site into offshore reservoirs Extensive monitoring system Test results indicate superior injectivity of shallow reservoir Extensive stakeholder engagement being undertaken Maintaining close communications with Tomakomai fishery cooperative, local government 19

20 Thank you for your attention. http://www.japanccs.com/