Last week, the UK’s Energy Technologies Institute (ETI) published the results of its 12-month, £2.5million CO2 Storage Appraisal Project, Progressing development of the UK’s Strategic Carbon Dioxide Storage Resource. The Project, funded by the UK Department of Energy and Climate Change and carried out by Pale Blue Dot Energy, Axis Well Technology and Costain, confirmed that there are no technical hurdles to permanently storing large volumes of CO2 in offshore geological storage off the coast of the UK, including sites large enough to comfortably service CO2 supplies from mainland Europe. Over the course of 12 months this ambitious Project identified 20 specific CO2 storage sites (from a potential 579 sites) which together represent the tip of a very large strategic national CO2 storage resource potential, estimated to be around 78GT (78,000 million tonnes). Five of these sites were then selected for further detailed analysis given their potential contribution to mobilise commercial-scale CCS projects for power and industrial use in the UK. This Webinar provided an opportunity to dig deeper into the wealth of comprehensive data and modelling that has been made publically available through the publishing of this report, and to consider its significance for helping to de-risk future CCS investment decisions. To expertly guide us through this process, the Global CCS Institute was delighted to welcome Andrew Green, Programme Manager - Carbon Capture & Storage at the ETI, and Alan James, Managing Director at Pale Blue Dot Energy (the Consortium Lead for this project) to join us for the webinar. After an overview of the Project and a more detailed look at the final outcomes, Andrew and Alan were joined by subject matter specialists: Steve Murphy – Pale Blue Dot Energy, Angus Reid – Costain, and Sharon McCollough – Axis Well Technologies, for a live Q&A session for the second half of the webinar.

1. 12 months, 5 sites, 1 billion tonnes of CO2 storage by
2030. The ETI introduces the findings of its latest study.
Webinar – Thursday 09 June 2016

2.  8 years experience in CCS, commissioning and
delivering ETI projects across the CCS chain
 20 years at BHR Group specialising in fluid
engineering, with a particular focus on Process
Intensification.
 Physicist with a broad science and engineering
background, gained working with a wide range of
industries in the energy and process sectors.
Programme Manager - Carbon Capture & Storage
Energy Technologies Institute
Andrew Green

3.  Chief Technologist on the ETI UK CO2 Storage
Appraisal project
 Managing Director at CO2Deepstore Ltd.
 35 years in the oil, gas and power sectors, in board,
senior management and consulting positions.
 Technical background is as an earth scientist and
reservoir engineer.
Managing Director, Pale Blue Dot
Alan James

4.  Steve Murphy – Pale Blue Dot
 Sharon McCollough – Axis Well Technology
 Angus Reid – Costain
Discussion Panel

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6. ©2016 Energy Technologies Institute LLP - Subject to notes on page 1
Background to the Project – October 2014
• CO2 storage appraisal activity needed to be ‘kick-started’ to support ‘Phase 2’ Projects
following on from the Commercialisation Programme
– Show that there is secure storage resource outside Phase 1, to give confidence in
follow on plans and projects
– Alleviate most of the storage “risk” and schedule in projects - simplify commercial
discussions
– Provide evidence that CCS is on a declining cost curve for CCS after Phase 1 –
towards £100/MWh
Strategic UK CO2 Storage Appraisal Project - 2016

7. ©2016 Energy Technologies Institute LLP - Subject to notes on page 1
Store selection - strategic options
Shoreline terminals
Storage only
EOR fields
New offshore pipelines
New onshore pipelines
Re-use offshore pipelines
Re-use onshore pipelines
Strategic UK CO2 Storage Appraisal Project - 2016

8. ©2016 Energy Technologies Institute LLP - Subject to notes on page 1
Project Objectives and Value Objective
• Project Objectives
– Develop storage options which put UK on track to injecting 50MT/a CO2 by 2030,
and with 1500MT of appraised storage
– Screen and de-risk commercially attractive stores, some potentially ready for
2026
– Estimate the cost and schedule to provide this capacity
– Make public the findings
• Value Objective
– Materially progress development of UK CO2 storage capacity.
– Inform roll-out strategies
– Do so within 12 months and at a cost not exceeding £2.5m
Strategic UK CO2 Storage Appraisal Project - 2016

9. ©2016 Energy Technologies Institute LLP - Subject to notes on page 1
Strategic UK CCS Storage Appraisal Project
– the journey
Secure funding
Commission project
Select 5 stores
Appraise 5 stores
Disseminate results
Q2/16Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16
Strategic UK CO2 Storage Appraisal Project - 2016

10. ©2016 Energy Technologies Institute LLP - Subject to notes on page 1
ETI Analysis Post November 2015
• ESME analysis confirmed value of
CCS and penalties of delay
– 10 year delay costs £1 – 2 bn
per year in 2020s rising to £4 –
5 bn per year by 2040
• Initial analysis confirms the benefits
of a ‘go large, low risk’ approach –
CCGT with PCC
– Fits DECC ‘policy reset’ on gas
• Need for robust, credible costs &
business models to attract policy
makers and investors
• Requirement for well-developed
storage options remains critical
Strategic UK CO2 Storage Appraisal Project - 2016

11. ©2016 Energy Technologies Institute LLP - Subject to notes on page 1
All Objectives Delivered on Time, on Budget by the Team
Strategic UK CO2 Storage Appraisal Project - 2016

12. Progressing Development of the
UK’s Strategic Carbon Dioxide
Storage Resource
A High Level Summary of Results from the
Strategic UK CO2 Storage Appraisal Project
For GCCSI
June 2016
9th June 2016
Introduction and guide to downloads http://goo.gl/6NX7Zx
ETI download page http://goo.gl/tdb2ZB

13. Project Overview
Aspirations
 To prove that there is secure storage resource beyond UK
FEED projects, to build confidence in follow on plans and
projects
 To alleviate most of the storage and schedule “risk” in projects
- to simplify commercial discussions
 To provide encouragement that CCS is on a declining cost
curve for CCS – towards £100/MWh
 To mature a portfolio of 5 stores with different development
timescales and costs, servicing a broad geography and
balancing risk through its diversity.
Strategic UK CO2 Storage Appraisal Project - 2016
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14. Project Overview
Project Flow
Over a 10 month period develop practical cost effective storage options that
contribute to an extendable storage scheme for 1500MT of storage capacity
and 50MT/y of injection capacity by 2030
CO2Stored
Many to
Twenty
Twenty to
Five
Mature Five
Sites
Disseminate
Outputs
Team
Strategic UK CO2 Storage Appraisal Project - 2016
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15. Top 20 + FEED Sites
Strategic UK CO2 Storage Appraisal Project - 2016
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16. PGS 3D Seismic Overlay
Strategic UK CO2 Storage Appraisal Project - 2016
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17. Released Wells Overlay
Strategic UK CO2 Storage Appraisal Project - 2016
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18. CO2Stored Site Overlay
Strategic UK CO2 Storage Appraisal Project - 2016
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19. Project Overview
What has been delivered over the past 10 months?
Screening assessment of 579
geological sites
Due Diligence assessment of 20
stores
Development Plans & Budgets
for 5 stores
Illustrative Build-out Scenario
1. Material progress on 900Mt
2. Insight into costs
3. Increased confidence
4. Knowledge Dissemination
5. Risk reduction for developers
IMPACT
Strategic UK CO2 Storage Appraisal Project - 2016
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20. 0%
5%
10%
15%
20%
25%
30%
35%
40%
1
10
100
1000
10000
Access OK Depth
(m)
Distance
(km)
P50 Capacity
(MT)
Thickness
(m)
Permeability
(mD)
Porosity %
Project Overview
Selection
Low Side Threshold
High Side Threshold
Strategic UK CO2 Storage Appraisal Project - 2016
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21. Key Findings
Varied Portfolio
The portfolio of 5 sites selected is geographically
and technically diverse, and presents options for
clean energy and industrial development around
the UK.
Only 2 of the 5 sites require any further appraisal
drilling before an investment decision.
Alongside the detailed KT from UK FEED projects
these sites characterise one of the most
comprehensive and mature CO2 storage potential
propositions available within the public domain
Strategic UK CO2 Storage Appraisal Project - 2016
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22. Key Findings
Types of Store
 Depleted Oil & Gas (12% of
resource potential)
+ Extensively drilled – lots of data
+ Trap proven effective for holding oil
& gas
+ Infrastructure re-use options
Δ Legacy well risk
Δ Competitive use
 Aquifers (88% of resource
potential)
+ Sometimes extensively drilled – lots
of data
+ Bigger potential
 May have traps
Δ Legacy well risk
Δ Often lack dynamic data
Δ More challenging to permit
Strategic UK CO2 Storage Appraisal Project - 2016
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23. Key Findings
The Storage Development Plan & Budget
 Characterisation & understanding
 Definition of the Storage Complex
 Injection performance
 Assumed CO2 supply profile
 Facility & infrastructure requirements
 Development activities
 Schedule
 Life-cycle costs
Strategic UK CO2 Storage Appraisal Project - 2016
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24. Key Findings
A word about capacity
 The CO2 storage capacity of a geological storage site is the
total mass of CO2 that can be injected, stored and safely
retained within a specific site. It is routinely measured in
millions of tonnes of CO2 (MT).
 It is a complex parameter and depends upon
 Underground geological factors
 Engineering – development plan factors
 Operational factors
 Economic factors
 Regulatory factors
Strategic UK CO2 Storage Appraisal Project - 2016
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25. Key Findings200MT – UK FEED Studies
1645MT – including this study
7.1 GT – Top 20 sites
8.6 GT – All qualified sites
78GT – UKCS potential
The UKCS is endowed with a rich and diverse national
offshore CO2 storage resource, key components of
which can be brought into service readiness without
extensive appraisal programmes thanks to decades of
petroleum exploration and development activity.
Strategic UK CO2 Storage Appraisal Project - 2016
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26. Key Findings
The portfolio at the same scale
Forties 5 Site 1
10km
Bunter Closure 36 HamiltonViking A
Captain X
Strategic UK CO2 Storage Appraisal Project - 2016
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27. Key Findings
Saline Aquifer Forties 5 Site 1
Strategic UK CO2 Storage Appraisal Project - 2016
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28. Key Findings
Saline Aquifer Captain X
Strategic UK CO2 Storage Appraisal Project - 2016
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29. Key Findings
Saline Aquifer Bunter Closure 36
Strategic UK CO2 Storage Appraisal Project - 2016
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30. Key Findings
Depleted Gas - Viking A
Strategic UK CO2 Storage Appraisal Project - 2016
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31. Key Findings
Depleted Gas - Hamilton
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32. Key Findings
Storage Efficiency
Strategic UK CO2 Storage Appraisal Project - 2016
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Storage efficiency – the proportion of pore space in the full reservoir column
within the defined storage complex area that is filled with CO2
Structured
saline aquifers
with large
connected
pore volume
Depleted gas
field with
moderate
aquifer influx
Open
unstructured
aquifer
system with
low Kv/Kh
Highly
depleted gas
field with no
aquifer influx
Open
unstructured
aquifer
system with
high Kv/Kh
Requirement for injection heating
Large areas need several drill centres & higher monitoring costs

33. Portfolio Assessment
Potential Roll Out Scenario
 Build-out based upon ETI Scenarios
 50MT/yr by 2030 or around 10GW of
power with CCS
 Could be delivered with just 8 sites
Strategic UK CO2 Storage Appraisal Project - 2016
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34. Portfolio Assessment
Lifecycle costs and Unit costs
£30/T
£20/T
£10/T
£0/T
Levelised Unit Cost
Strategic UK CO2 Storage Appraisal Project - 2016
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35. Portfolio Assessment
Storage Site Cost Components
£12.2Bn life-cycle costs for the 8-store portfolio
Platform Opex
Heating (power)
Subsea Opex
Operational MMV
Wells Opex
Financial Securities
Drilling
Completion
Pipelines
Flowlines
Platforms
Subsea
Pre-FID Appraisal
FEED
PostclosureMMV
HandoverPayment
Pipelines
Flowlines
Strategic UK CO2 Storage Appraisal Project - 2016
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36. Portfolio Assessment
Storage Site Cost Components
£14.45/T life-cycle costs on a levelised basis for the 8-store portfolio
Drilling
Completion
Pipelines
Flowlines
Platforms
Subsea
Pre-FID Appraisal
FEED
Pre-FIDAppraisal
FEED
PostclosureMMV
HandoverPayment
Pipelines
Flowlines
Strategic UK CO2 Storage Appraisal Project - 2016
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37. Portfolio Assessment
Conclusions
 Resource Potential
 1.6Gt could be stored by 2070 at up to 45MT/yr across 8 sites
 O&G legacy is valuable – skills, information and subsurface understanding
 Timing
 Ability to bring online in early 2020s
 Only two of five sites required further pre FID appraisal drilling
 Risk
 Key remaining risks involve the integrity of abandoned legacy wells
 May impact cost and MMV plan in detail
 Contribution to Power Generation Cost
 £14.4/T levelised cost of transportation and storage
 £6.9/MWh to the levelised cost of gas fuelled electricity
 Focus of cost reduction efforts
 Operating cost of the injection facility and the wells
 Storage - accounts for 65 – 85% of the total
Strategic UK CO2 Storage Appraisal Project - 2016
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38. Close
Summary
 Highlights
 The UKCS is endowed with a rich and diverse offshore CO2 storage resource
 Key components can be brought into service readiness without extensive
appraisal drilling
 Portfolio is geographically and technically diverse
 One of the most mature CO2 storage propositions in the public domain
 Concerns
 Additional costs may be presented by legacy well risk to managing
containment of CO2 in storage sites
 In general, most oil and gas infrastructure is likely to be unsuitable for CO2
storage use.
 What Next?
 Rebuild momentum after CSR and engage with potential developers
 More work required around consenting of open aquifer sites
 R&D should focus primarily upon Storage Efficiency and Operational Efficiency
 Work with OGA:-
 National archive is lacking key data important for detailed storage assessment
 Consider changes to decommissioning process in CO2 storage areas to prevent them
from being sterilised for subsequent use.
Strategic UK CO2 Storage Appraisal Project - 2016
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39. QUESTIONS / DISCUSSION
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English directly into the
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40. Please submit any feedback to: webinar@globalccsinstitute.com