Global CCS Institute - Day 1 - Panel 1 - International Progress on CCS Projects

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Len Heckel - Shell Quest

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Global CCS Institute - Day 1 - Panel 1 - International Progress on CCS Projects

  1. 1. PANEL 1INTERNATIONAL PROGRESS ON CCS PROJECTSLen Heckel – Shell QuestLaura Miller – Summit PowerHans Schoenmakers – ROAD
  2. 2. QUEST CCS PROJECT PROGRESSGlobal CSS Institute (GCCSI)International Members MeetingCalgaryOctober 10, 2012 Use this area for cover image (height 6.5cm, width 8cm) Len Heckel – Quest Venture Manager
  3. 3. Quest Location Canada Alberta Fort McMurray Fort Saskatchewan Edmonton Calgary Quest Quest Progress: GCCSI International Members October 10, 2012 3 Meeting
  4. 4. General FeaturesQuest CCS Project - fully integrated CCS(capture, transport & storage)Project Approval – Sept 2012JV among Shell (60%); Chevron (20%);and Marathon (20%)Located at Scotford Upgrader Complex35% reduction of Upgrader CO 2emissionsUses existing technologyCapacity to capture over one milliontonnesof CO 2 per year for 25 yearsEquiv to emissions from175,000 cars Quest Progress: GCCSI International Members October 10, 2012 4 Meeting
  5. 5. Hardware Quest CCS Project CO 2 capture plant located in Fort Saskatchewan, approx 50 km N.E. of Edmonton Cement Capture at the Scotford Upgrader from 3 Hydrogen Manufacturing Units CO 2 transported by 12 inch pipeline to storage, with 6 inch laterals The pipeline will travel approx. 65 km north of the Scotford Upgrader to the chosen injection locations Route selected to meet stakeholder requirements: SAL SEAL T S  28 km follows existing ROW SHALE SEALS  Drilled under North Saskatchewan River TARGE FORMATION T  30+ re-routes to accommodate landowner wishes Base plan: 3 injection wells and associated monitoring Quest Progress: GCCSI International Members October 10, 2012 5 Meeting
  6. 6. Project Approval Critical FeaturesSafe and secure storage complexCapture technology fit to base facilityDegree of economic robustnessClarity in regulatory environmentExtensive stakeholder engagement Quest Progress: GCCSI International Members October 10, 2012 6 Meeting
  7. 7. Project Approval Critical FeaturesSafe and secure storage complexCapture technology fit to base facilityDegree of economic robustnessClarity in regulatory environmentExtensive stakeholder engagement Quest Progress: GCCSI International Members October 10, 2012 7 Meeting
  8. 8. StorageSaline aquifer storage Surface CasingBasal Cambrian Sands (BCS) selected Cement Intermediate Casing  Storage zone is a formation called Basal Cambrian Tubing Main Injection Casing Sands (BCS) 2,300 m, Prairies deepest sandstone  Multiple caprock and salt seal layers, no significant faulting visible from wells or seismic  The BCS is well below hydrocarbon bearing formations and potable water zones in the region  Relatively few wells drilled into the BCS, none within SAL SEAL T S 10 km of the proposed storage site Packer Assembly SHALE SEALSWells and Drilling TARGE FORMATION T  3 well plan, 5 more if required Perforations allow CO 2 to penetrate the formation  Conventional drilling methods  Multiple steel casings for wells, 3 in freshwater zone, all cemented to surface Quest Progress: GCCSI International Members October 10, 2012 8 7 Meeting
  9. 9. Geological Formation – BCS ComplexBasal Cambrian Sand (BCS)Complex Location Quest Progress: GCCSI International Members October 10, 2012 9 Meeting
  10. 10. Geological Formation Area of Interest (AOI) CO2 Saturation DeltaPKpa Pore space area required to ensure no pressure front interference 10 Quest Progress: GCCSI International Members Meeting October 10, 2012
  11. 11. MMV Framework - Containment Risk Bowtie Analysis CO2 Containment Loss Risk and Mitigation Diagram  Bulls-eye hazard assessment diagram – left: possible causes; centre: event; right: consequences Quest Progress: GCCSI International Members October 10, 2012 11 Meeting
  12. 12. Measurement, Monitoring and Verification (MMV Plan) Comprehensive plan developed – entire biosphere and lifecycle Independently (DNV) certified MMV and storage plan Quest Progress: GCCSI International Members October 10, 2012 12 Meeting
  13. 13. Project Approval Critical FeaturesSafe and secure storage complexCapture technology fit to base facilityDegree of economic robustnessClarity in regulatory environmentExtensive stakeholder engagement Quest Progress: GCCSI International Members October 10, 2012 13 Meeting
  14. 14. Capture Design Shell ADIP-X Amine process (99%+ pure CO2),1.2 MTPa capacity Mutlistage centrifugal compressor to 8.5 Mpa (supercritical state) TEG dehydration unit Quest Progress: GCCSI International Members October 10, 2012 14 Meeting
  15. 15. Capture 3D Model – HMU 1&2 Amine Stripper Amine AbsorbersCompressor (HMU 1 & 2)&DehydrationSystem Quest Progress: GCCSI InternationalForum 2012 Quest: PTAC Clean Energy Production Members October 15, 2012 October 10, 2012 15 10 Meeting
  16. 16. Project Approval Critical FeaturesSafe and secure storage complexCapture technology fit to base facilityDegree of economic robustnessClarity in regulatory environmentExtensive stakeholder engagement Quest Progress: GCCSI International Members October 10, 2012 16 Meeting
  17. 17. Costs/ Revenues and Funding AgreementsTotal cost of Quest – Approx. Cdn$1.4 billion  Includes Pre FID, capital and 10 years opex Cement  Capital Ratio: 80% Capture, 10% pipeline, 10% wellsRevenues – GHG offsets (credits)  Net amount – stored CO2, less direct and indirect emissions  Credits to be used first by Shell’s Alberta assets for regulatory compliance  Additional credits as early developerGovernment Funding Support – Cdn$865 million  Cdn$120 million Canadian Federal Government (Pre FID)  Cdn$745 million Alberta Province (Construction, Startup and 10 years operation) SAL SEAL T S  Extensive knowledge sharing SHALE SEALS  Stringent monitoring (MMV) plan TARGE FORMATION T  NPV Zero commitment Quest Progress: GCCSI International Members October 10, 2012 17 Meeting
  18. 18. Project Approval Critical FeaturesSafe and secure storage complexCapture technology fit to base facilityDegree of economic robustnessClarity in regulatory environmentExtensive stakeholder engagement Quest Progress: GCCSI International Members October 10, 2012 18 Meeting
  19. 19. Regulatory Framework and Timeframe Provincial GHG framework established  November 2010 – CCS Act passed, establishing overall structure  May 2011 – Pore space regulations set – Quest acquires required area  March 2012 – ERCB Public Hearing  July 2012 – ERCB Decision Report Issued – conditional approval  August 2012 – Quest License granted with Ministers Approval  September 2012 – W ell License approvals granted  December 2012 – Expected completion of Regulatory Framework Assessment work Quest Progress: GCCSI International Members October 10, 2012 19 Meeting
  20. 20. Project Approval Critical FeaturesSafe and secure storage complexCapture technology fit to base facilityDegree of economic robustnessClarity in regulatory environmentExtensive stakeholder engagement Quest Progress: GCCSI International Members October 10, 2012 20 Meeting
  21. 21. Stakeholder Engagement Extensive and continuous public engagement  1 st public project disclosure: Oct 2008 (booklet, news release and open house)  Stakeholder consultation program initiated Jan 2010  All landowners within 450 of either side of pipeline right of way  All landowners in storage AOI  All Landowners within 5 km of Scotford  Municipal districts/ local authorities  Industry stakeholders  Provincial / Federal regulators  Aboriginal communities  Open Houses: March, November 2010, September 2011 and planned November 2012  Quest Café’s: June, October 2011  Bi-annual County and Town Council updates  Quest phone line, e-mail address and web site available for project questions Quest Progress: GCCSI International Members October 10, 2012 21 Meeting
  22. 22. Timeline and Upcoming Activities  Community Open Houses Q4, 2012  Well Program Q4 2012  2 additional injection wells  Associated deep monitoring and groundwater wells  Capture & Pipeline in Execute phase  Capture at 90% model review stage  Capture construction underway with foundation work Q4 2012  Pipeline construction begins Q3 2013  Operations Handover Q2 2015  Full production Q3 2015 Quest Progress: GCCSI International Members October 10, 2012 22 Meeting
  23. 23. Thank You

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