FEED Studies Knowledge Transfer and Lessons Learned


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FEED Studies Knowledge Transfer and Lessons Learned

  1. 1. GCCSi Member MeetingMay 2012UK CCS Demonstration Competition 1FEED Studies Knowledge Transfer and Lessons LearnedLouise BarrOffice of Carbon Capture and StorageDepartment of Energy & Climate Change
  2. 2. Introduction to Demo 1 FEED 2007 2011
  3. 3. Introduction to the projectsKingsnorth-Hewett (E.ON) DawnDierdre Deborah Delilah Big Dotty Della Pr op Hewett Little os Dotty ed Lo ca tio n 48 /3 3kms 0- W
  4. 4. Introduction to the projectsLongannet-Goldeneye (SPC)
  5. 5. Key findings from the FEED studies o Capture plant o CO2 conditioning and compression o Pipelines o Offshore facilities and wells o Store and complex o External environment o Full chain
  6. 6. Capture plantExamples of key takeaways• Strong end-to-end flow analysis is required of the impact of power station and capture plant flexibility on the CCS chain• Integrating capture and power plant to optimise heat efficiency introduces many complicating factors• Retrofitting CCS to existing plant adds further complications with or without heat integration• Scale up projects will confirm confidence in chemistry (e.g. amine degradation products). Levels are so low they are very difficult to detect in small scale pilots
  7. 7. Pipelines Examples of key takeaways• New pipeline construction is business as usual but is still challenging in crowded waterways• Pipeline re-use has advantages but requires significant analysis• The operations aspects of managing CO2 phase changes are complex - detailed and integrated end- to-end system analysis is essential• Risk of a running ductile fracture can be managed• Gas transport usually benefits from “free” energy in reservoirs - energy needed for CCS transport is not free
  8. 8. Store & Complex Examples of key takeaways• Substantial new subsurface modelling work (in store and complex) is required, even for mature fields• The selection of an appropriate measurement, monitoring and verification approach is highly situation specific – Expect early „over-instrumentation‟, with simplification as confidence is gained (by both developers and regulators)• It is possible to assure existing well integrity though there are challenges – Confidence in integrity of inherited infrastructure is lower than that which is self-built/ operated (for example different assumptions regarding well cement) – Data availability and quality on third party wells is also key to assurance
  9. 9. External environmentExamples of key takeaways• The FEEDs advanced CCS consenting „case studies‟ significantly and informed CCS legislation and regulatory development• Full CCS chain requires enormous consenting effort (though not much is CO2 specific)• Specific consenting and regulatory responsibilities can be split along the chain with Consortium Partners responsible for their own detailed messaging. However, Capture, transportation and storage should always be bundled together into a full chain story for stakeholders.• Early engagement with local communities• Obtaining key consents and avoiding adverse public reaction remained in top post- FEED risks for both projects
  10. 10. Full chainExamples of key takeaways • FEED narrowed cost estimates significantly Capex Cost Range £m 2,000 1,800 1,600 1,400 1,200 1,000 800 600 Outline Solution FEED
  11. 11. Full chainExamples of key takeaways • FEED reduces risk significantly Risk Score 4000 3800 3600 3400 3200 Total Risk 3000 Values 2800 2600 2400 2200 2000 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 (Baseline) Month
  12. 12. Demo 1 FEEDsExamples of key takeaways • The two Demo 1 FEEDs show that CCS at scale is technically feasible, although economic, regulatory & commercial challenges remain. • FEED for a CCS chain is really 4 FEEDs (one for each component part plus a chain integration FEED) and takes a huge amount of effort from a wide variety of skill sets and experiences as well as Regulators • FEED is essential to allow decision makers (Government, Developers, Regulators) to get comfortable with the risks (cost, schedule and scope delivery) • The Knowledge Transfer from the FEEDs should help accelerate CCS deployment – with the insights from the Demo 1 FEEDS, future FEEDs should be able to focus quicker
  13. 13. Lessons LearnedObjectives & CommunicationClarity of the commercial position (risks and the financial envelope) • Available funds and funding mechanisms • Allows earlier identification of potential showstoppersRisk allocation • Risk to be placed where it can most effectively be managedClear and frequent communication • DECC and industry to invest time better to understand each others organisations early in the procurement process and identify aspects that may cause problems in working togetherModest investment in FEED in first demonstration project; created shared view of riskenvelope and reduced cost uncertainty.
  14. 14. Lessons LearnedWorking together to a solutionCollaborative solution development • Early market engagement to shape procurement and prepare market for proposals stage • It is important to maintain competitive pressure, to deliver value for the taxpayer and electricity consumer but also allow industry a far greater role in shaping CCS solutions • Build both DECC / Industry / Investor confidence in ProgrammeProcurement Tempo • First demonstrator project was extended / protracted. – this increased procurement costs and vulnerability to external events • Need to agree a realistic programme and adhere to itKnowledge Transfer • A key deliverable. If possible share knowledge as it is created, where commercially sound to do so. • Clarity in difference between Knowledge and Intellectual Property
  15. 15. GCCSi Member Meeting May 2012 Thank you