Collie Hub Presentation - Global CCS Institute Members Meeting - Rotterdam, May 2011

Global CCS instituterotterdam9 may 2011

SCHIEDAM (ROTTERDAM)GRANDPARENTS BORN HERE

SCHIPLUIDEN (NEAR ROTTERDAM)WHERE MY FATHER WAS BORN

BROKEN HILLWHERE I WAS BORN

BUNBURYWHERE I LIVE AND WORK

PART OF THE EMISSION SOLUTION

COLLIE HUB PARTNERS
DEPARTMENT OF MINES AND PETROLEUM
PERDAMAN CHEMICALS AND FERTILISERS
VERVE ENERGY
GRIFFIN ENERGY
WESFARMERS PREMIER COAL
BHP BILLITON WORSLEY ALUMINA
ALCOA AUSTRALIA
RESEARCH PARTNERSHIP:
WA:ERA (Western Australian Energy Research Alliance) a collaborative arrangement between UWA, Curtin University and the CSIRO

HARVEY RIDGEMANDURAH TERRACE

THE CONCEPT
COLLIE HUB
Integrated industrial CO2 geosequestration system
Storage within an identified area
Red mud sequestration 300,000 + tpa (Alcoa)
2.4 mtpa Perdaman CO2
Potential for up to 7 mtpa for future power generation

LOCATION MAP
N
32o00’
YILGARN CRATON
Storage Goals:
Maximum injection rate of 10 Mt/a
Up to 260 Mt total in 40 years
LOWER LESUEUR REGION
33o00’
LEGEND
Mapped Area
Study Area
Fault
Anticline
20 km
Transfer Fault
BUSSELTON
116o00’
115o00’

LOCATION OF SEISMIC AND WELL DATA
Seismic data good to poor
Darling Fault interpreted with gravity data
Wells drilled in the 60’s and 70’s, except Rockingham-1 from the 80’s
Seismic data quality varies from good to poor – some lines show very low signal to noise ratio
Seismic data does not really cover Darling Fault. The fault is interpreted using gravity data
Wells drilled in the 60’s and 70’s, except Rockingham-1 that was drilled in the 80’s
Well log suites available were often incomplete (with limited density & neutron coverage)
LEGEND
Dynamic model area:
less faults
deeper injection horizons
Dynamic Model Boundary
Static Model Boundary
Darling Fault
Fault
N
2D Seismic
20 km
Well
13

Immobilized CO2
Secondary Percolation
Primary Migration
LOWER LESUEUR STORAGE CONCEPT

PROJECT ATTRACTIONS
Multiuser CO2 Hub with significant commitments from members
Phased development and funding requirements help manage technical & commercial risks
Proven commercial development structures, contracts and regulatory framework
Economic outcomes justify investment with appropriate CCS Flagship Funding
Key risks identified and are manageable

RESIDUE CARBONATION
Residue Carbonation involves the addition of CO2 to thickened Residue slurry
Sodium hydroxide is converted to carbonate
Alumina is precipitated as sodium alumino carbonate
CO2 reaction with the solids (conversion of residual lime to calcite and conversion of TCA to calcite and gibbsite)
Overall result is a lowering of pH of the residue
Very good fit with the current process compared to other neutralisation options
Doesn’t introduce impurities, so closed water circuit can be maintained
Utilises a waste product (CO2) to treat the residue
Provides a permanent sink for CO2

CO2 storage and vaporiser units
CO2 mixing tanks
Kwinana carbon capture plant
Carbon Capture plant at Kwinana: Full Scale

LESSONS LEARNT - HUB
You have to be naive to attempt it
Set common goals early
A step change to CO2 emissions for coal users!
Give a future for the coal industry
Allow long-term decision-making
Everything takes longer than anticipated
Legal
Contractual
Differing cultural/legal approaches
Changes in members circumstances can affect the group
Competitors can work together for common benefits

In developing the concept, no transport or storage operators – getting the objectives right is more important than the technicalities of operating
Consider others that can benefit the project (and benefit from the project)
No-one likes spending money
Government understands funding not finance
Government as facilitator and regulator – look at how role transitions
Decision stages are important for investment, but work needs to happen in parallel
Risk assessment needs to include financial

Clearly define coal’s role
(I utilise the Blue Map and discuss the 19% role of CCS)
Other industries will put coal down (coal v gas), forgetting that they will be targeted next
A lot of discussion will revert to renewables such as solar and wind
Be persistent

LESSONS LEARNT – STORAGE
Commence data collection early (processing can take six to nine months)
Oil and gas industry has technical expertise
BUT different investment criteria to power and production industries
Extension of definition of “pre-competitive” (role of Government)
Even the “experts” are uncertain about unconventional trapping mechanisms

BENEFIT BY LOOKING OUTSIDE
Look for connections
Look externally
Look internationally
(Collie Hub has more in common with the Rotterdam proposal than projects in Australia)

INDUSTRY
Work with industry
Government working with industry
Top down policy and directives do not work
Industry has to inform its workforce

LOCAL PRESENCE
Local presence is important
Being available to speak to anyone at anytime is important
No local surprises

Language
Is
Important
HARVEY RIDGEMANDURAH TERRACE

COMPETITORS WORKINGTOGETHER
Competitors can work together to benefit their industry
Convincing your children of the environmental benefits is the hardest task

Thank you

Collie Hub Presentation - Global CCS Institute Members Meeting - Rotterdam, May 2011

by Global CCS Institute

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