Alan du Mee - CCS Public Engagement – Presentation at the Global CCS Institute Members’ Meeting: 2011


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Alan du Mee - CCS Public Engagement – Presentation at the Global CCS Institute Members’ Meeting: 2011

  1. 1. Surat Basin CCS Project (A CCS Flagship shortlisted project) ‘A carbon storage solution’ Case study – storage, stakeholder and community learnings so far• Based on Carbon Capture and Storage World Conference Presentation• October 2011 - GCCSI 1
  2. 2. The CTSCo journey 2009 to 2011 What we thought... What we have... 10% Technical Technical10% Approvals 30% 40% Approvals 80% Stakeholder and Stakeholder and community 30% community % of effort committed by activity type% of effort projected by activity type • Standalone CCS demonstration project separated from industrial • IGCC with CCS scale storage stage • 2.5 million tonnes CO2 per annum • 1 million tonnes CO2 per annum goal driven by IGCC plant outcomes driven by industrial scale requirement • Industrial scale storage by 2015 • Demonstrable pathway to industrial scale storage by 2020 2
  3. 3. Potential for CCS in the Surat Basin • Suitable geological formations for CO2 storage in Surat Basin – GHG Storage Atlas potential of up to 2900 Mt • Substantial amount of existing data and information – lots of well and seismic data • A demonstration project not a commercial business – strong advantage • CTSCo – special purpose subsidiary of Xstrata Coal Queensland – assessing CO2 storage in Surat Basin • Collaborative information sharing with Geological Survey of Queensland’s CGI program • Innovation (e.g. DCA) to speed up proving work and keep costs down • Demonstration on Xstrata owned land with no overlapping tenement rights 3
  4. 4. Challenges for CCS in the Surat Basin • 47 major regional resource projects by 2013 (Source: Western Downs Regional Council) • Overlapping tenement rights and resource competition • 6000 existing CSG wells growing to 40,000 • Explaining 5 or 6 CO2 storage wells with CO2 storage • Strategic Cropping legislation • Land Access regime now enacted Brisbane • Community – consultation fatigue 4
  5. 5. Xstrata/CTSCo goals• Prove up 30 years of CO2 storage capacity at 1Mtpa for CCS Flagship project• Demonstrate progressively that CO2 can be stored safely and effectively, at known cost and in predictable timeframes• Deploy studies with carefully staged technical and financial commitment gates – so that all funders, proponents, regulators get progressively more comfortable• Provide information from this demonstration project so that all stakeholders can make informed decisions about CO2 storage• Maintain the Social Licence to Operate 5
  6. 6. Stakeholder environment is complex and sensitive• Concern over GAB water resource contamination – GAB nomenclature not clear• Consultation fatigue – so many regional projects – CSG, ICG, mining, power stations etc• Several well organised active lobby groups in the Surat – Coal4breakfast – Lock the Gate etc.• Need to differentiate as a demonstration project from extensive commercial business developments – Funded by governments and associations 6
  7. 7. The picture we would like…versus the one we have… • Water is a sensitive and critical resource • Really like this pictorial • Freshwater supplies very close to the surface • Structure and depth separates fresh from non-potable aquifers • Aquifers are very salty > 10,000 ppm salt Key issues presented in the identification of suitable storage sites for CO2 CCS World Australia 2011 September 1, 2011 Edward N. SteadmanCommercial in Confidence 7
  8. 8. Storage target is Precipice Sandstone part of the GAB • Regional livelihood’s depend on water drawn from the GAB • 1000 km circumference • Lots of near-surface water data • Almost no deep-water data • Oil and gas region that is well explored • Distance and depth separates fresh from non potable water supplies 8
  9. 9. Balance is changing Key issues presented in the identification of suitable storage sites for CO2 CCS World Australia 2011 September 1, 2011 Edward N. SteadmanCommercial in Confidence 9
  10. 10. Extracting geological trends Outcrops, existing data and Digital Core Analysis………. Chinchilla- 4 10
  11. 11. Innovation CAT Scan of core (well) samples to help communicate the science Cat scan of voidCommercial in Confidence 11
  12. 12. Stakeholder benchmarking important • On shore and offshore, urban and rural projects are different • Australia – Gorgon – ZeroGen – Otway – Callide Oxyfuel • Overseas – Canada • Weyburn – USA • Futuregen in Illinois – Germany • Vattenfall’s Schweinrich to Schwarze – France • Total at Lacq – Holland • Shells Barendrecht project, near Rotterdam – Other • In Salah Algeria • Longannet • Working with CSIRO to establish local benchmarksCommercial in Confidence 12
  13. 13. Learnings Summary• All skills for deploying CO2 storage exist in the oil and gas industry• Storage feasibility and viability is site specific, but examples of deployment include: - Sleipner, Norway - In-Salah, Algeria - Weyburn, Canada - Otway, Australia - Decatur, Illinois – imminent at 1Mt• Innovation such as Digital Core Analysis has a significant part to play in reducing, cost, timeframes, risk and communicating ‘pore space’ concept• We ignore the Social Licence to Operate at our peril• Independent assessments from say CSIRO to maintain credibility - Social research - Environmental baselining 13
  14. 14. Project support• Projects of this kind need support and the project wishes to acknowledge the following parties: The project has received pre-feasibility funding from the Australian Government (as part of the Clean Energy Initiative), the Queensland Government and the Australian Coal Association Coal 21 fund. The views expressed in this presentation are not necessarily the views of these parties. Project support – CO2CRC – CSIRO – Xstrata CoalCommercial in Confidence 14