The document provides an agenda for the 2nd Annual North American Forum on carbon capture and storage (CCS/CCUS). The forum will take place on February 5, 2013 in Washington D.C. and will include sessions on the global status and opportunities of CCS, lessons learned from CCS demonstration projects in North America, legal and regulatory frameworks for CCS, technologies to reduce the cost of carbon capture, and perspectives from international governments on incentivizing CCS. There will also be industry and technology roundtables as well as remarks from government officials.

1. WELCOME TO THE 2ND ANNUAL NORTH AMERICAN FORUM
CCS/CCUS: GLOBAL OPPORTUNITIES AND STRATEGIC DIRECTIONS
5 February 2013
Washington, D.C.
WWW.GLOBALCCSINSTITUTE.COM

2. INTRODUCTION AND OPENING
REMARKS
Victor Der
General Manager, North America
Global CCS Institute
2

3. CCS/CCUS: Global Opportunities and Strategic
Directions Agenda
8:30-8:40 Introduction and Opening Remarks
8:40-9:00 Welcome
9:00-9:30 Energy and the Environment: Looking Forward
9:30-10:00 The Global Status of CCS and the Institute’s Future Strategic Direction
10:00-10:30 Break
10:30-11:45 Industry Roundtable: Lessons Learned from Early CCS/CCUS Demonstration and
Deployment Efforts in North America and Path Forward
11:45-1:00 Lunch
1:00-2:15 Legal and Regulatory Roundtable: Using Legal and Regulatory Frameworks to
Advance CCUS Technology Development and Deployment in North America
2:15-2:45 Break
2:45-4:00 Technology Roundtable: Bringing Down the Cost of CO2 Capture, ROI in EOR
Applications, and Size of Recoverable Resource
4:00-5:00 International Governments Roundtable on CCS/CCUS: Perspectives in
Incentivizing Industry to Move Forward with CCS/CCUS
5:00-5:30 Wrap-up and Meeting Conclusion
5:30-6:45 Reception

4. WELCOME
Sheila Riordon
Minister (Political)
Embassy of Canada
4

5. WELCOME
Graham Fletcher
Deputy Chief of Mission to the United States
Embassy of Australia
5

6. ENERGY AND THE ENVIRONMENT:
LOOKING FORWARD
Dr. Anthony Cugini
Director
National Energy Technology Laboratory (NETL)
U.S. Department of Energy
6

7. The Path Ahead for CCS

8. Meeting the President’s Energy Goals
“This country needs an all-out,
all-of-the-above strategy that develops every
available source of American energy. A
strategy that’s cleaner, cheaper, and full of
new jobs.”
President Barack Obama
State of the Union Address
January 24, 2012
Photo courtesy of the White House, Pete Souza

9. Fossil Energy’s Role in All-of-the-Above
Strategy
• Fossil Energy represents a key component of this
strategy
– To maintain the relevancy of fossil energy, specifically
coal, in future energy scenarios, carbon capture and
storage must be technically viable and cost
competitive
– Shale gas and unconventional gas and oil must be safe
and environmentally friendly and utilized in the most
efficient manner possible
– Future sources of fossil energy, including natural gas
hydrates represent potential options to secure our
energy future and continue our movement toward
energy security

10. Energy Demand 2010 Energy Demand 2035
98 QBtu / Year 107 QBtu / Year
83% Fossil Energy 77% Fossil Energy
Coal Gas Coal Gas
21% 25% + 9% 20% 26%
Nuclear
United States
Oil Oil Nuclear
9% 8%
37% 32%
Renewables Renewables
8% 14%
5,634 mmt CO2 5,758 mmt CO2
505 QBtu / Year 741 QBtu / Year
81% Fossil Energy 80% Fossil Energy
Coal Gas + 47% Coal Gas
27% 22% Nuclear 30% 23%
6% World Nuclear
6%
Oil Oil
32% Renewables 27%
13% Renewables
14%
30,190 mmt CO2 44,090 mmt CO2
Sources: U.S. data from EIA, Annual Energy Outlook 2012: World data from IEA, World Energy Outlook 2012

11. Pathways to CO2 Emission Reduction
• Energy efficiency (14 GtCO2e/yr)1
– Vehicles, Buildings, industrial equipment
• Low-carbon energy supply (12 GtCO2e/yr)
– Wind, Nuclear, Solar Energy
– Biofuels for transportation
– Carbon Capture and Storage
• Terrestrial carbon (12 GtCO2e/yr)
– Reforesting, halting deforestation
– CO2 sequestration in soils through changing
agricultural practices
• Behavioral change (~4 GtCO2e/yr)
1. CO2 Reduction opportunities by 2030 from
Pathways to a Low-Carbon Economy, McKinsey
& Company, 2009.

12. CCS Meets National and International
Climate Goals
• President Obama: By 2050, 83% reduction in GHG emissions from 2005
levels
• IEA: “application of CCS… represents potentially the most important new
technology option for reducing direct emissions in industry.”
Source: IEA. Energy Technology Perspectives 2010

13. Advanced Clean Coal R&D
Future Plants
Existing Coal Plants
CCS Plus…..
CCS
Net Efficiencies > 45%
Improve efficiencies
Near-zero greenhouse gases
Minimize criteria pollutants
Near-zero criteria pollutants
Minimize water usage
Near-zero water usage
Minimize greenhouse gases
Polygeneration (Power +
<$40/tonne CO2 Captured
Chemicals + EOR)
<$10/tonne CO2 Captured
Technology Bridge to Clean Coal
Pressurized Oxy-combustion Advanced H2 Turbines
Membrane Oxy-combustion Integrated Gasification Fuel Cell
Chemical Looping Combustion Advanced Materials
Supercritical CO2 Cycle Advanced Sensors and Controls
Direct Power Extraction Advanced IGCC

14. Innovation and Technology
• Advanced Energy Systems
– Advanced combustion systems
– Gasification systems
– Hydrogen turbines
• Advanced Carbon Capture Kemper IGCC Project
– Post-combustion capture
– Pre-combustion capture
– Oxy-combustion
• Carbon Storage
• Crosscutting R&D
– Plant optimization
– Coal utilization
– Energy analyses
Capture Facility at
Plant Barry, AL

15. Integrated Fossil Energy Solutions
Advanced Combustion Advanced Energy
 Pressurized  Gasification Systems
 O2 membrane  Turbines
 Chemical looping  Supercritical CO2
 USC Materials  Direct Power Extraction
Efficiencies > 45%
i Capital Cost by 50%
5 MWE Oxycombustion Pilot
$10 - $40/tonne CO2 Captured Advanced Turbines
Near-zero GHGs
Advanced CO2 Capture and Near-zero criteria pollutants CO2 Storage
Compression Near-zero water usage
 Solvents  Carbon Utilization (EOR)
 Sorbents  Infrastructure (RCSPs)
 Membranes  Geological Storage
 Hybrid  Monitoring, Verification
 Process and Accounting
Intensification
 Cryogenic Capture

16. Carbon Capture Key Technologies
Technology Areas
Solvents
Post–Combustion
Capture
Sorbents
Pre-Combustion
Capture Membranes
CO2 Compression

17. Post-Combustion Research Focus
Research Focus
• Low-Cost, Non-Corrosive Solvents with High CO2 Loading
Capacity, Improved Reaction Kinetics, Low Regeneration
Energy, and Degradation Resistance
• Process Intensification/Heat integration
Solvents • High Performance Functionalized Solvents
• Catalyzed Absorption
• Phase-Change Solvents
• Hybrid Systems
• Low-Cost Base Materials, Thermal and Chemical Stability, Low
Attrition Rates, Low Heat Capacity, High CO2 Adsorption
Capacity and High CO2 Selectivity
• Process Intensification/Heat integration
Sorbents • Novel Processes Equipment and Configurations
• Structured Solid Adsorbents (e.g., MOFs)
• Hybrid Systems
• Enhanced PSA/TSA
• Low-Cost, Durable Membranes with Improved
Permeance, Selectivity, Thermal and Physical Stability, and
Tolerance to Flue Gas Contaminants
Membranes • Hybrid systems
• Novel Process Conditions
• Nano-materials
• 2nd Generation Technology • Transformational Technology

18. Pre-Combustion Research Focus
• Advanced Regeneration Process to Produce a High-Pressure
CO2 Stream
• Increased Selectivity for Maximal H2 Recovery
Solvents • High temperature operation to maintain warm syngas
• Dual Swing Absorption/Regeneration Cycles
• Hybrid Systems
• Cyclic PSA Producing High-Pressure H2 and CO2
• WGS/CO2 Separation Process intensification for High
Sorbents Efficiency Impact
• Hybrid Systems
• Membrane Materials: High-Temperature Polymer, Dual-
Phase Carbonate-Ceramic, Pd, and others
• Silica Molecular Sieve
• Gas/Liquid Contactor
• WGS/CO2 Separation Process intensification for High
Membranes Efficiency Impact
• High Density and Pressure Nano-Scale Membranes
• High-temperature/high-pressure seals
• Process Intensification
• Hybrid Systems
• 2nd Generation Technology • Transformational Technology

19. Fossil Energy R&D Reduces CO2
Capture Costs by more than 80%
Today’s Technology
2nd Generation
Systems
Transformational
Systems
EOR Price Ranges Adapted From: Chaparral Energy "US CO2 & CO2 EOR Developments" Panel Discussion at CO2 Carbon Management
Workshop December 06, 2011. Today (2013) oil price between $85 - 102/bbl. 2035 oil price $145/bbl.

20. Carbon Storage Program Goals
Develop Technology Options That...
• Deliver technologies & best practices that provide Geologic Carbon Storage
with:
– 99% storage permanence >1,000 years
– Estimate capacity in reservoirs
– Improve storage efficiency
– Validation of Formation Classes
• Supporting Activities
– Core R&D Projects
– Infrastructure Development
– International R&D Collaboration at Field Projects

21. U.S. 2012 Carbon Storage Atlas
Hundreds of Years of Potential Storage
Unmineable Coal Saline Formations
56  114 billion metric 2,102  20,043 billion
tons CO2 storage metric tons
CO2 storage
Oil and Gas Reservoirs
226 billion metric tons
CO2 storage
Source: United States 2012 Carbon Utilization

22. Major U.S. Demonstrations
Using Existing Infrastructure, Creating New Markets
CCPI Archer Daniels Midland
FutureGen 2.0 CO2 Capture from Ethanol Plant
Large-Scale Testing of Oxy-Combustion w/ CO2 Capture
ICCS Area 1 CO2 Stored in Saline Reservoir
& Sequestration in Saline Formation FutureGen 2.0 $208M Total; $141M DOE
~$1.3B Total; ~$1.0B DOE “Learning by doing”  scaling up first-generation SALINE – ~1 M TPY 2013 start
SALINE – 1.3M TPY 2016 start technologies
 Evidence of CCS w/EOR opportunities  viable business
case
Summit TX Clean Energy  Validate CCS MVA best practices
Commercial Demo of Advanced
IGCC w/ Full Carbon Capture However . . .
~$1.7B Total; $450M DOE
EOR – 3M TPY 2014 start
• First-generation capture technologies  energy penalty
~30% and > $100 / tonne CO2 captured Southern Company
Kemper County IGCC Project
Hydrogen Energy • Requires government subsidies $$$ + polygeneration IGCC-Transport Gasifier
w/Carbon Capture
California (power + chemicals) + EOR ~$2.67B Total; $270M DOE
Commercial Demo of Advanced EOR – 3 M TPY 2014 start
IGCC w/ Full Carbon Capture
~$4B Total; $408M DOE
EOR – 3M TPY 2018 start
NRG Air Products and Chemicals, Inc. Leucadia Energy
W.A. Parish Generating Station CO2 Capture from Methanol Plant
Post Combustion CO2 Capture CO2 Capture from Steam Methane Reformers
EOR in Eastern TX Oilfields EOR in Eastern TX Oilfields
$339M Total; $167M DOE
$431M – Total, $284M – DOE $436M - Total, $261M – DOE
EOR – 1.4M TPY 2014 start
EOR – 1M TPY 2013 start EOR – 4.5 M TPY 2015 start

23. Utilization Could be a Key Driver For CCS
• CCS is an essential part of the long-term global solution to climate change, but it
requires an accelerated effort
• CCS has no market driver to catalyze an industry
– Regulations that place a value on CO2 emissions are unlikely anytime soon
– First-generation technologies are too costly: >$100 / tonne CO2 captured and hCOE
by >80 percent
– Very challenging to incentivize CCS demos and jumpstart CCS industry
• U.S. Department of Energy / Office of Fossil Energy research will greatly reduce CCS
cost, but incentives are required for deployment
– Absent CO2 emission value, cost per tonne CO2 will approach levels that catalyze EOR
• Focusing more closely on EOR will drive technology development to
commercialization
– EOR is a high-value, high-volume use of CO2
– EOR could potentially utilize CO2 from 60 GW
of power plants
– EOR will catalyze CCS technologies while
providing economic drivers for commercial
projects

24. CO2 Conversion for Utilization
CO2 Industrial
Waste Heat
H2 Catalyst
Solar-Thermal
H2O Wind-Electric
Formic Acid Formaldehyde Methanol Methane
High Throughput First Ever Unprecedented Outperforms
Computation Visible Light Electro-Catalytic Commercial
Accelerates Design CO2 Catalysts Efficiency Catalysts
CuGaxFe1-xO2 CdSe/TiO2 & Au/ZnO Au25 Clusters Nano-Cu/ZnO
Delafossites Heterostructures

25. Natural Gas Hydrates Program & Research at NETL
Climate, Energy, and Safety - R&D for the Future
• Natural gas hydrate is an enormous global storehouse of organic carbon
• Estimates of carbon trapped in NGH exceeds that of known coal, oil and gas resources combined
Predict natural gas hydrate
Ignik Sikumi Hydrate behavior in porous media BP-DOE- Mallik Global Gas Hydrate R&D
USGS ‘07
Well –Test of CO2 Evaluate potential future CH4
’98, ’02, ’07,
‘08
UBGH1 ’07
Sequestration & CH4 production & CO2 storage Major field programs last 15 years UBGH2 ‘11
Production
CP-DOE-USGS ‘11
MITI
’99, ’04, ‘08, ‘1
0
ODP Leg 204 Qinghai
’02 IODP Province
X311 ‘05 ‘10
GM
CO2:CH4 exchange GOM JIP: Chevron-DOE Leg I ’05 GS1
GOM JIP: Chevron-DOE Leg 2 ’09 ‘07
Shell
(Malay
sia) ‘05
DGH (India)-USGS
NGHP-01 ‘06
Characterize, predict, ide
ntify, and understand
areas with significant gas
Microbiology hydrate occurrences
P.C. J.
Geology
Presley
P.C. W.
Geochemistry
Hong
CH4 is >25x’s more potent a GHG than CO2
Volume of clean, natural gas trapped in NGH could
offer significant energy resource

26. For More Information
Anthony Cugini
412-386-6023 –or– 304-285-4684
anthony.cugini@netl.doe.gov
Office of Fossil Energy
www.fe.doe.gov
National Energy Technology Laboratory
NETL
www.netl.doe.gov @NETL_News

27. CCS/CCUS: GLOBAL OPPORTUNITIES
AND STRATEGIC DIRECTIONS
Brad Page
Chief Executive Officer
Global CCS Institute
27

28. CCS/CCUS:
GLOBAL OPPORTUNITIES AND STRATEGIC DIRECTIONS
BRAD PAGE – CEO
Second Annual North American Forum, Washington, DC
5 February 2013

29. GLOBALLY CONNECTED MEMBERSHIP
72 134
75
3
5
72
29

30. KEY
MESSAGE ACTION IS NEEDED NOW TO ENSURE CCS CAN PLAY A VITAL
[1 [ ROLE IN TACKLING CLIMATE CHANGE
Energy-related CO2 emission reductions by technology
SOURCE: IEA
NOTE: Percentages
represent share of
cumulative emissions
reductions to 2050.
Percentages in brackets
represent share of
emissions reductions in the
year 2050.
30

31. KEY
MESSAGE CCS IS ALREADY CONTRIBUTING,
[2 [ BUT PROGRESS MUST BE ACCELERATED
Volume of CO2 potentially stored by large-scale integrated projects
31

32. KEY
MESSAGE CCS IS ALREADY CONTRIBUTING,
[2 [ BUT PROGRESS MUST BE ACCELERATED
Volume of CO2 potentially stored by large-scale integrated projects
32

33. KEY
MESSAGE CCS IS ALREADY CONTRIBUTING,
[2 [ BUT PROGRESS MUST BE ACCELERATED
Volume of CO2 potentially stored by projects is decreasing
33

34. KEY
MESSAGE STEADY PROGRESS BUT
[3 [ IMPORTANT DEVELOPMENTS
Large-scale integrated projects by asset lifecycle and year
34

35. KEY
MESSAGE STEADY PROGRESS BUT
[3 [ IMPORTANT DEVELOPMENTS
North America large-scale integrated projects by asset lifecycle and year
35

36. KEY
MESSAGE STEADY PROGRESS BUT
[3 [ IMPORTANT DEVELOPMENTS
Volume of CO2 potentially stored by primary storage type and region
Note: Data reflects January 2013
LSIP update
36

37. CCUS BENEFITS
 Enables CCS technology improvement and cost
reduction.
 Improves business case for demonstration and early
mover projects through CO2 revenue.
 Helps gain public and policymaker acceptance.
 Builds and sustains a skilled CCS workforce.
 Supports CO2 transportation network development
where EOR is an option.

38. CCUS CHALLENGES
 CO2-EOR is geographically and capacity limited.
 CO2 revenue alone will not bridge gap for high capture
cost scenarios.
 Gaps exists between geologic storage permitting and
CO2-EOR regimes.

39. KEY
MESSAGE ENCOURAGING POLICY SUPPORT
[4 [ BUT MORE REQUIRED
 Historically strong support for CCS research and
demonstration in North America.
 GHG performance standards that recognize CCS
importance.
 Provincial and state programs to facilitate and
incentivise CCS
 New initiatives?
39

40. KEY
MESSAGE BARRIERS MUST BE OVERCOME
[5 [ TO REALIZE THE BENEFITS OF CCS
Costs of CO2 avoided
40

41. KEY
MESSAGE REDUCING THE COST OF TECHNOLOGY THROUGH
[6 [ DEMONSTRATION PROJECTS IS VITAL
Boundary Dam,
Canada
Quest, Canada
TCM, Norway
41
Plant Barry, US

42. RECOMMENDATIONS FOR DECISION MAKERS
 Climate change legislation must not be delayed.
 In order to achieve emission reductions in the most
efficient and effective way, CCS must not be
disadvantaged.
 Funding for CCS demonstration projects should be
accelerated and incentives increased.
 Expertise and learning must be shared.
42

43. THE GLOBAL STATUS OF CCS: 2012
 Released 10 October 2012.
 Comprehensive coverage on the state of
CCS projects and technologies.
 Progress outlined since 2011.
 Challenges and recommendations for
moving forward.
 Status of CCS Projects now revised in
January 2013 update.
43

44. GLOBALCCSINSTITUTE.COM

45. NORTH AMERICAN INDUSTRY
ROUNDTABLE
Lessons Learned from Early CCS/CCUS Demonstration and
Deployment Efforts in North America and Paths Forward
45

46. Discussion Topics
• What are the top two lessons you learned from the early deployment efforts in CCS/CCUS that you
can take forward to subsequent projects?
• How has the landscape for CCS/CCUS in North America changed since the start of the early
demonstrations? Given the current landscape, how would you approach a CCS/CCUS project
development today—if at all?
• What in your view have been and continue to be the principal barriers impeding industry
investment in and deployment of CCS/CCUS along the value chain?
• How do you see the availability of low cost natural gas in North America impacting CCS and
CCUS, especially for CO2-EOR projects?
• What do you see going forward would be needed for making the CCS/CCUS business case in North
America?
• During this past year some in the U.S. Congress have suggested using a carbon tax as mechanism
for putting a price on carbon and reducing CO2 emissions. Others in the U.S. Congress have been
very opposed to a carbon tax but have been supportive of a carbon cap and trade approach. What
are your thoughts on this subject?

47. LEGAL AND REGULATORY
ROUNDTABLE:
Using Legal and Regulatory Frameworks to Advance CCUS
Technology Development and Deployment in North America
47

48. Discussion Topics
• It has been suggested that for CO2-EOR to
qualify as storage, it should be subject to
regulatory standards for MMV and long-term
storage equivalent to those applicable to
other types of CO2 storage. Do you agree or
disagree, and why?
– If you agree, how would you define equivalent?
– If you disagree, what might be an appropriate
approach for CO2-EOR?

49. Discussion Topics
• CO2-EOR operations may differ from a dedicated
source to sink storage model in a number of ways
including:
– Common pipelines where co-mingled streams of A-
CO2 and N-CO2 lose their identity
– CO2 recycling and reuse
– The potential use of geologic reservoirs as buffers for
EOR demand.
How can a legal and regulatory framework
accommodate these differences?

50. Discussion Topics
• What additional legal and regulatory policies
and/or incentives can be pursued to help
more demonstration and early mover projects
get underway in the near-term and ultimately
lead to large scale CCS deployment?

51. Discussion Topics
• Under the European Emission Trading System
Directive, each component of the CCS chain
(capture, transport and storage) is separately
permitted and an obligation to surrender
allowances does not arise for emissions verified
as captured and transported for permanent
storage to a facility permitted in accordance with
the CCS Directive. How should CCS and emission
compliance requirements be handled in Canada
and the United States?

52. Contact Information
http://www.rrc.state.tx.us/
david.hill@rrc.state.tx.us 512 463 3011

53. Sources of CO2 and Users
WW & PERMIAN BASIN CO2 EOR PRODUCTION*
1986 - 2010
300
Permian Basin Worldwide
CO2 EOR PRODUCTION -
250
200
kbopd
150
100
50
0
1986
1990
1994
1998
2002
2006
2010
* Ref: O&GJ Biennial EOR Editions & UTPB
Petr Industry Alliance
YEAR

54. CO2 EOR Sources

55. SACROC – Eastern Edge of Permian Basin
Scurry Area Canyon Reef
Operators Committee
(SACROC) unitized oil field
• Ongoing CO2 injection since 1972
• Combined enhanced oil recovery
(EOR) with CO2 sequestration
• Depth to Pennsylvanian- Permian
reservoir ~6,500 ft
• Approximately 3900 miles of CO2
pipelines (Dooley et al)

56. SACROC AREA WATER QUALITY
36 of 60 wells completed in both Ogallala and Dockum Santa Rosa water-
bearing units; 17 wells inside and 19 wells outside SACROC; highest data

57. Facilities and Water Wells
Year Drilling Active Injection Water Well
Permits Wells Wells Complaints*
2002 11,434 246,000 30,500 69
2003 14,654 238,000 30,700 42
2004 16,912 242,000 30,900 44
2005 19,548 246,000 31,300 38
2006 22,328 249,000 30,600 61
2007 23,916 250,000 30,600 42
2008 28,786 263,000 30,600 48
2009 15,917 274,000 30,800 47
2010 22,535 281,000 31,400 43
2011 28,300 281,000 31,500 83
* The majority of these complaints are drought related. Many others involve one
time sampling events for oil and gas constituents, where lab data show no impact.
About two wells per year are confirmed to be attributable to Oil & Gas activities.

58. Contact Information
http://www.rrc.state.tx.us/
david.hill@rrc.state.tx.us 512 463 3011

59. TECHNOLOGY ROUNDTABLE:
Bringing Down the Cost of CO2 Capture, ROI in EOR
Applications, and Size of Recoverable Resource
59

60. Discussion Topics
• What is on the horizon, and how far out is that horizon, for dramatically reducing the cost of CO2
capture? To what extent can novel capture systems be used to offset carbon emissions to meet
regulations?
• What other out-of-the-box thinking on reducing capture cost should we be contemplating?
• Given the costs, benefits, uncertainties and risks, what potential returns on investment for CO2-
EOR is conducive to a business case? What would the cost of captured anthropogenic CO2 have to
be for industry to make use of it for CO2-EOR (along with the permanent storage of the CO2) and
how would the cost relate to world oil prices?
• In terms of risk/reward, what do you see as the potential for recoverable resources in North
America and the world realistically in the next 5 years? 10 years? To what extent is this potential
sustainable as a path to CCS?
• What do you see as the key issues and priorities that must be addressed?
• During this past year, some in the U.S. Congress have suggested using a carbon tax as mechanism
for putting a price on carbon and reducing CO2 emissions. Others in the U.S. Congress have been
very opposed to a carbon tax but have been supportive of a carbon cap and trade approach. What
are your thoughts on this subject?

61. Technology and Scale
• CCS technology is proven and is technologically feasible.
• Demonstration at commercial scale is critical to define
risks, optimize process and achieve cost reduction to support
commercial contracting
• The CCS technology requires both policy direction and financial
support to be demonstrated at commercial scale
• CCS could be competitive on a level playing field in a free
market
• EOR will help close the gap on financing particularly on early
move projects.
• Other products may be helpful depending on markets
• Stronger Governmental support is required

62. Comparative Economics
CoE Low Carbon technologies – New PP over next 5 years Up to 45€
€ / MWh cents/kWh
300
EUROPE 300
250 250
Reference case
200 200
150 150
Low case
CSP Tower
100 with storage 100
86 79
50 (82 for Ref 50
CCS Oxy)
0 0
Hardcoal w Gas CCPP Nuclear Hydro Geo- Wind Wind Solar Solar PV
CCS Post w CCS thermal Onshore Offshore Thermal
2017 2017
Source : Alstom analysis 2012. CCS w Post amine 2017 costs, including on shore T&S & CO2 price (Flue Gas Recirculation for CCS Gas CC)
CoE do not include “externalities” of Intermittent power (Back-up cost, balancing cost, grid enhancement if required)
Under realistic assumptions and with a conservative variation
range, CCS is already in the “mix” of low carbon alternatives

63. CO2 Utilization with Enhanced Oil Recovery:
What is the Size of the Prize?
Prepared for:
Second Annual CCS/CCUS Opportunities and Strategic Directions Forum
Technology Roundtable: Bringing Down the Cost of CO2 Capture, ROI in EOR
Applications, and Size of Recoverable Resource
Sponsored by:
Global CCS Institute
Prepared By:
Vello A. Kuuskraa w/ Steve Melzer
vkuuskraa@adv-res.com
President
ADVANCED RESOURCES INTERNATIONAL, INC.
Arlington, VA USA
Canadian Embassy ▪ Washington D.C. ▪ 5 February 2013

64. The “Size of the Prize?”
Large volumes of oil remain “stranded” in U.S. reservoirs after traditional recovery.
400 BILLION BARRELS OF OIL 140 BILLION BARRELS OF OIL IN
IN MAIN PAY ZONES. RESIDUAL OIL ZONES (ROZs).
Original Oil In-Place: 600 B Barrels Oil In-Place: 140 B Barrels*
“Stranded” Oil In-Place: 396 B Barrels
ROZ “Fairways”
Target for EOR 100 Billion Barrels
396 Billion Barrels
40 Billion
Cumulative Production Barrels
182 Billion Barrels
Below Oil Fields
Proved Reserves
22 Billion Barrels
Source: Advanced Resources Int’l. (2011); Melzer Consulting (2012) *Within ROZ “Fairways” of the Permian Basin
and below oil fields in 3 U.S. basins
64

65. The “Size of the Prize”
“Next Generation” vs. “State of the Art” CO2-EOR Technology
Economic Oil Demand for CO2
Resource Area Recovery (BBbls)* (Billion Metric Tons)
SOA Next Gen. SOA Next Gen.
More efficient recovery, “Lower
24 60 7 17
48” oil fields
Alaska/Offshore 3 7 1 3
Residual Oil Zone
- 13 - 5
(below oil fields)
Residual Oil Zone “Fairways”
- 20 - 8
(preliminary)
Total 27 100 8 33
*At $85 per barrel and $40 per metric ton, CO2 market price with 20 % rate of return (before tax).
Source: Advanced Resources International, Inc. (2011)
65

66. “Next Generation” CO2 Enhanced Oil Recovery
Use of more efficient CO2-EOR technologies and extension of
these technologies to new oil resources and settings constitutes
“next generation” CO2 enhanced oil recovery:
1. Scientifically-based advances in CO2-EOR technology,
2. Integrating CO2 capture with CO2 utilization by CO2-EOR,
3. Application of CO2-EOR to residual oil zones (ROZs), and
4. Deployment of CO2-EOR in offshore oil fields.
66

67. Permian Basin ROZ “Fairways”
NM TX Palo Duro Basin
Melzer and ARI
estimate that up to
100 million barrels
of OIP exist in the Theorized U. Permian
Hydrodynamic Fairways
ROZ “Fairways” of
the Permian Basin.
Midland
Boundary of Northwest Basin
Northwest Shelf San Shelf
Andres Platform Area
Carbonate Play
Permian Basin Central Basin Platform
Outline
Source: Modified from Melzer Consulting (2010)
JAF2012_092.PPT
67

68. “Next Generation” CO2-EOR Technology
Two publically available reports, prepared by Advanced Resources Int’l
and Melzer Consulting for U.S. DOE/NETL, provide the analytical
foundation for “next generation” CO2-EOR technology.
68

69. Summary Observations
“Next generation” CO2 enhanced oil recovery deserves to be a major part of a
worldwide carbon management strategy:
• CO2 enhanced oil recovery is a viable, growing enterprise,
• The oil produced is low carbon energy,
• The “size of the prize” is large, and
• CO2-EOR can provide a market-driven option for accelerating CO2
capture.
Acknowledgements. The analytic foundation for these findings was sponsored by the
U.S. Department of Energy, National Energy Technology Laboratory.
69

70. Office Locations
Washington, DC
4501 Fairfax Drive, Suite 910
Arlington, VA 22203
Phone: (703) 528-8420
Advanced Fax: (703) 528-0439
Resources Houston, Texas
International 11931 Wickchester Ln., Suite 200
Houston, TX 77043-4574
www.adv-res.com Phone: (281) 558-6569
Fax: (281) 558-9202
70

71. INTERNATIONAL GOVERNMENTS
ROUNDTABLE:
Perspectives in Enabling/Incentivizing Industry to Move
Forward with CCS/CCUS
71

72. Discussion Topics
• What global opportunities do you see for the deployment of CCS, especially in locations that
do not currently have legislative or regulatory requirements to do so?
• What do you consider to be some of the principal barriers, political and otherwise, impeding
the deployment of CCS?
• What actions can Governments take to overcome these barriers to sustainable CCS
deployment?
• What do you see as key priority issues and actions needed to move CCS/CCUS forward so
that it can be part of a sustainable clean energy portfolio?
• During this past year, some in the U.S. Congress have suggested using a carbon tax as
mechanism for putting a price on carbon and reducing CO2 emissions. Others in the U.S.
Congress have been very opposed to a carbon tax, but have been supportive of a carbon cap
and trade approach. What are your thoughts on this subject?

73. www.globalccsinstitute.com