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Callide Oxyfuel Project - Jim Craigen - - Global CCS Institute – Nov 2011 Regional Meeting


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As a part of the Institute's strategic focus on assisting CCS projects through knowledge sharing, three North American roadshow events will help the industry share project experiences and knowledge about CCS. Taking place in the US and Canada, the three events include:

• Austin, Texas on November 8, 2011;
• Calgary, Canada on 10 November, 2011; and
• Washington, D.C. on 19 January, 2012.

The first roadshow focused on sharing project experiences and knowledge from the projects in North America but also brought in projects from Europe (Don valley) and Australia (Callide) so that regionally diverse experiences could be shared amongst a global audience.
Attendance at the event was around 30 to 35 which allowed open and frank discussions around technical, management, and regulatory issues and how these challenges can impact on a project’s advancement and decision making processes.

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Callide Oxyfuel Project - Jim Craigen - - Global CCS Institute – Nov 2011 Regional Meeting

  1. 1. Jim CraigenGlobal CCS Institute Regional Meetings Austin, Texas, USA Calgary, Alberta, Canada November 2011
  2. 2. Presentation OverviewProject overviewLessons leant • Technical • Commercial • RegulatoryConcluding remarks
  3. 3. Project OverviewRetrofit oxy-fuel technology to existing boiler • One of four 30 MWe units • Commissioned 1972Transport and geological storage of CO2 • Up to 20,000 tonnes • If we can find a suitable reservoir .........
  4. 4. Project OverviewOxygen plant • nominal 2 x 330 tpd ASUsBoiler refurbishment and oxy-fuel retrofit • 1 x 30 MWe unitCO2 compression and purification • 75 tpd process plant treating 20% side streamRoad transport and geological storage • 30 tpd liquid CO2
  5. 5. Current StatusOxy-fuel retrofit commissioning schedule • ASU; Nov - Dec 2011 • Boiler (oxy mode); Jan - Feb 2012 • CO2 plant; March - May 2012 • Full system practical completion; May 2012Transport and geological storage of CO2 • In abeyance pending identification of suitable storage • Awaiting exploration permit
  6. 6. Lessons Learnt - TechnicalMany lessons from design and construct phasesMany more expected during operationR&D and pilot testing invaluableSmall design changes can have large impact onbudget and timeframeCO2 storage is uncertain and evolving
  7. 7. Lessons Learnt - TechnicalExamples • Separate FG treatment units on recirculating gas and off-take to CO2 plant could have been combined into one • Draft plant design improvements to balance primary and secondary recirculating gas flows • Geology is full of surprises • Injection zones can appear very promising on preliminary assessment but end up totally unusable
  8. 8. Lessons Learnt - CommercialProject Structure • EPC prohibitive, if available at all • Risk sharing, requires partners to be committed and maintain good relationsTime taken to negotiate JV and Funding Agreements • Terms & conditions; IP, indemnities • Costs escalated faster than funding was secured
  9. 9. Lessons Learnt - CommercialRealistic timeframes and budget contingencies • First of type plant; expect the unexpected • Callide Project constantly under budget pressureCompetition for skilled tradesmen • LNG projects offering better conditionsAligning corporate cultures and attitude to risk • Power industry versus Oil/Gas industry (storage) • Different business models
  10. 10. Lessons Learnt - Australian Policy SceneFederally • Carbon Tax imminent • Long term driver for CCS - 2030 and beyond • Additional support required in short term • CCS Flagship Program; $1.68 billionStates • Regulatory approvals; safety & environmental • Legislation/regulations for CCS at various stages of development
  11. 11. PermittingStage 1 – Callide A• Exempted from development approval under local Government Planning Scheme – not deemed to be a material change of use• Amendments proposed to existing Callide A environmental authority Vented gas streams from CO2 CPU Condensates from flue gas scrubber columns Define additional release points and monitoring regimeStage 2 – CO2 road transport• Carbon Dioxide (CO2) is a Dangerous Good (Class 2.2) under the Queensland Transport ActStage 2 – CO2 storage• Greenhouse Gas Storage Act 2009 (QLD)• Greenhouse Gas Storage Regulation 2010 (QLD)• Environmental Protection Act 1994 (QLD
  12. 12. Lessons Learnt - Australian Policy SceneCommunity attitude • CCS generally; mixed but suspicious to hostile • CSG activity • Callide oxy-fuel plant; local Biloela community broadly aware, interested & supportive • Surat Basin (Qld); land use & resource conflicts • Oil/gas production • Prime agricultural land • Great Artesian Basin • Media campaigns by green groups • Lots of angry farmers!!
  13. 13. CO2 storage potential Storage volumes (based on current production): • East coast – 70 years • West coast > 200 years • CO2 storage capacity of gas and oil fields is ~ 16.5 giga tonnes (Source: National Low Emissions Coal Council) Queensland Government: Carbon Geo-storage Initiative (CGI)
  14. 14. Potential CO2 storage tenements Callide A EPQ7(CTSCo Pty Ltd) Scale: 0 – 108 km
  15. 15. Lessons Learnt – Policy/RegulatoryPolitics of geological storage is setting the timetable • Lack of political will in the face of community resistance • Greatest technical uncertainties • New and therefore unknown • Callide Project unlikely to secure storage site in the currently envisaged operation periodNeed for effective community engagement
  16. 16. Concluding comments1. ASU and Oxy-fuel plant are now in commissioning phase; the CO2 capture plant is under construction.2. Budget limitations , first-of-a-kind issues, and major CSG developments in Queensland have resulted in a very difficult contracting environment.3. An EPCM and alliance type contracting approach has resulted in good budget control but schedule control has been somewhat problematic.4. The implementation of CO2 capture is much further advanced than CO2 storage in the Australia (globally?).5. Challenge: How to maintain the enthusiasm of project proponents and equipment suppliers during the hiatus while storage is developed.
  17. 17. Callide A Unit 4 - Original 17
  18. 18. Callide A Unit 4 – After Retrofit 18 18
  19. 19. ASU and CO2 Capture PlantOxygen plant CO2 capture plant
  20. 20. Callide Oxy-fuel Project Participants Thank youfor more information: