Classification: Internal Status: Draft An overview of CCS developments in Norway Olav Kaarstad okaa@statoil.com Special Adviser CO 2, StatoilHydroASA, Norway
Our Common Future The birth of Sustainable Development 2 The Kyoto Protocol ratified, 2005 The Kyoto Protocol, The Brundtland Report, 1987 Norway s Prime Minister Gro Harlem Brundtland in Rio in 1992* 1997 * Gro Harlem Brundtland introduced a CO2-tax of about 45 US$/ton in Norway in 1992
3 StatoilHydro s climate challenge Increasing and more CO2 intensive production International production NCS production 1200 1000 CO 2 emissions Kg / tonne product Build international growth platforms 800 600 400 Maximise NCS value creation 200 0 Norway Global prod. avg. Refining LNG Extra heavy oil Extra heavy oil incl. upgrad. GTL
4 StatoilHydro s climate policy a progressive strategy StatoilHydro s strategy to reduce greenhouse gas emissions: Emissions trading Carbon capture and storage Energy efficiency 18 16 14 12 10 Kilogrammes of CO 2 -emissions per barrel of oil equvivalent 17,0 Renewables 8 6 5,9 4 2,4 2 0 Kvitebjørn (Statoil 2004) NCS average (OLF 2003) World (OGP 2003)
Market size of CO 2 capture & storage (CCS) 5 Emissions (MtCO 2 per year) 90,000 MiniCAM 80,000 70,000 60,000 50,000 40,000 30,000 20,000 Emissions to the atmosphere 10,000-2005 2020 2035 2050 2065 2080 2095 Conservation and Energy Efficiency Renewable Energy Nuclear Coal to Gas Substitution CCS Allowable Modelling indicates that CCS will play an important part in climate change mitigation Source: Intergovernmental Panel on Climate Change
Norway as a CO 2 -laboratory 6 Cleaning up our operations CO 2 from natural gas Snøhvit LNG train 1, 2007 Snøhvit LNG train 2 Cleaning up our products CO 2 from electricity generation NORWAY Tjeldbergodden Halten CO2 2,5 mill tonnes/yr. 2012? Mongstad 1,3 to 2,1 mill tonnes/yr, 2014 Sleipner, 1 million tonnes/yr from 1996 Kårstø Naturkraft 1 mill tonnes/yr, 2011/2012
7 StatoilHydro s CCS projects An industrial approach to climate change (CO 2 injection capacity MT/yr) 1 Sleipner 1,2 In Salah 0,7 Snøhvit LNG 2,5 Halten CO 2 2,5 Mongstad 1996-2004- 2007-2011/12-2014-
8 CO 2 -absorber and stripper towers at the Snøhvit LNG plant in Northern Norway Sleipner field CO 2 -absorber and stripper towers are located on the T platform CO 2 -absorber and stripper towers at the Algerian In Salah gas processing plant
9 The Sleipner experience our starting point Started in 1996 CO2 from natural gas (Approx. 1 mill. tons CO2 annually) Storing in saline aquifer Driver: CO2-tax (340 NOK/ton 40 /ton), corporate environmental strategy Learning and confidence building through a series of large EU-wide R&D programmes
10 The Sleipner experience the Utsira formation Safe and high capacity CO 2 storage Systematic mapping needed Potential storage site for European CO2? Experts aligned - probability is high that CO 2 will be stored safely for thousands of years Source:Bjørlykke, NGU
Time-lapse seismic datasets of CO2 stored in Utsira formation 11
12 Sleipner experience a CO 2 dissolution in formation water model After 25 yrs After 400 yrs After 600 yrs After 3000 yrs After 5000 yrs Source: Gemini No. 1, 2004 (NTNU and Sintef)
13 In Salah and Snøhvit LNG the next CCS steps Started in 2004 CO2 from natural gas Separating and injecting 1,2 mill. tons CO2 annually Injection into reservoir aquifer Driver: BP internal quota system Starts up now (October 2007) CO2 from natural gas Separating, piping and injecting 0,7 mill. tons CO2 annually Injection below reservoir Driver: CO2 tax
14 The Halten CO 2 project Starts 2011/2012 if sanctioned StatoilHydro/Shell CO2 from gas power plant Separating, transporting and storing up to 2,5 mill. tons CO2 annually Storage site mapping underway Driver: Regional power deficit and offshore electrification CO2-EOR part of the project was terminated due to poor results from reservoir study. Work on CCS continuing.
Mongstad Combined Heat and Power (CHP) station with CO 2 -capture plant indicated 15
16 Mongstad CO 2 test centre and full scale capture project Capture test centre Starts late 2010 StatoilHydro, partners and authorities Source: CO2 from gas power plant and refinery cracker gas Separating, transporting and storing 0,1 mill. tons CO2 annually Transportation and injection site not yet identified Driver: Technology development, qualification and cost reduction. Authorities to bear cost of transport and storage. Full scale capture Project sanction 2012 StatoilHydro on behalf of authorities Source: CO2 from gas power plant and refinery cracker gas Separating, transporting and storing up to 2,5 mill. tons CO2 annually Injection site not yet identified Driver: CCS costs fully covered by authorities
CO 2 -capture by Gassnova SF at Naturkraft s gas fired power plant at Kårstø 17 Naturkraft 430 MW gas fired power plant Power plant owned by Statkraft and StatoilHydro First electricity produced in 2007 1 mill tonnes CO2/year at full load CO 2 -capture from 2011/2012 by state-owned Gassnova SF
First CCS targets - the low-hanging fruits 18
Summary and conclusions 19 CCS technically proven Enormous potential public acceptance necessary Value chain approach upsides by EOR In the long run EOR will play a small part in CCS business Financial and Kyoto mechanisms keys to initiate projects Key element in meeting the global climate challenge