Slide-41. Strategic Hydrocarbon Gas Demand> Considering the power sector in Abu Dhabi alone:• Growth in hydrocarbon gas demand is expected tobe >1 BSCFD over next 10 years• Gas Supply sources to grow (domestic / imports) tomeet the demand including LNG imports at high cost(bw $8-18 / MMBTU)CCUS Value DriversEAA: Abu Dhabi Executive Affairs Authority> ADNOC is on track of CCUS strategy to enhance oil recovery (EOR) and potentially increaseUAE gas availability, and hence reduce imported LNG dependency.> This is supported by the EAA “CCS Value Proposition Study” which forecasts a potentialgrowth in CO2 requirements over next 10-15 years, if the CO2 projects prove to besuccessful.> The ESI CCUS Project is a first commercial mover project which will establish the commercialprincipals for a CO2 industry and further demonstrate the technical viability of CO2 operations.
Slide-52. Environmental• CCUS or Low Carbon Power is a key strategy to reduce UAE’s greenhousegases whilst continuing to meet the country’s growing energy demands.• The ESI CCUS Project will be the first project of its kind in the region and willsequester ~800,000T of CO2 per year:equivalent CO2 from a 200MW CCGT1equivalent CO2 from ~170,000 carsequivalent CO2 from ~100,000 houses (US)• The project will demonstrate the UAE’s global and regionalleadership in the deployment of CCUS and its supportfor climate change mitigation mechanisms.CCUS Value DriversNote 1: CCGT: Combined Cycle Gas Turbine power generation
Slide-63. Commitment to Abu Dhabi 30% Clean Energy> The Abu Dhabi Clean Energy commitments through Nuclear Energy, Renewable Energy(7%) and the balance as Low Carbon Power (which includes CCUS).> Low Carbon Power commitment requires new/revamp CCGT power station capacity andCO2 capture capacity linked to ADNOC demand.> 1.0 GW of Low Carbon Power will generate ~5 MMTPA of CO2. It therefore aims toaddress:• Commitment to 30% Clean Energy; AND• Generating CO2 for ADNOC as part of the gas liberation strategy.CCUS Value Drivers
Slide-74. CCUS Global and Regional Leadership> Deployment of CCUS within the UAE will create a regional knowledge & leadershipfocus in this developing industry.> The EAA “CCS Value Proposition Study” forecasts a growth in related CO2 industry, thebenefits of which include:• growth in UAE GDP; and• growth in employment and human capital.> The ESI CCUS Project will immediately establishthe operating base for the sector’s future growth.CCUS Value Drivers
Slide-8ESI CCUS: Project OverviewCO2 Source (ESI) and Capture CO2 Compression & DehydrationCO2 Transportation CO2 Injection in Rumaitha field
Slide-9> ESI Compression & Dehydration Facility• Located in Mussafah, ESNAAD – adjacent to ESI• CO2 (>98% purity) from ESI DRI Steel manufacturingprocess• New CO2 facility to:• Dehydrate the CO2; and• Compress CO2 for export.• Design Capacity: 0.8 MMTPA (41 MMSCFD),> Transportation Pipeline to Rumaitha• Carbon Steel Pipeline between ESI and Rumaitha.• CO2 transported in dense phase.Compression, Dehydration and TransportDRI; Direct Reduced Iron process which generates direct CO2 for capture.
Slide-10> ADNOC and Masdar are working to develop the CO2 Capture, Transportation &Injection components• Masdar responsible to provide technology & project support for the CO2Capture, Compression and Pipeline facilities; and• ADNOC (with ADCO) responsible to provide technology & project support forthe CO2 Injection facilities, and the treatment post production.> Status of Activities:• Pilot Injection program successfully implemented in Rumaitha (2009 -2011).• ESI Facility & Pipeline FEED completed in 2010.• Rumaitha / Bab FEED completed in 2013.• Compression and Pipeline facilities tender in 2012.• Rumaitha / Bab Injection facilities forecast 2013.• Both parties working agreements for cooperative development.Project Execution Strategy
Slide-11> CO2 as an EOR agent has been endorsed:• Success of the ESI CCUS Project and Rumaitha / Bab Injection are key tofuture development.> Changing landscape in Abu Dhabi with potential CO2 targets for fieldtesting and development:• CO2 capture linked to ADNOC field demand and performance;> Whilst preliminary, the EAA CCUS Value Proposition study forecast agrowing CO2 demand in the next 25-30 years, based on ADNOCestimations.Abu Dhabi CCUS: Future Potential