Carbon IN TRAnsport       Launching project schemeImplementation of LLSC study key findings                   Melbourne   ...
Note           This document and all information contained herein are the property                                        ...
Rotterdam Climate Initiative (RCI)                  city region CO2 reduction targets                                     ...
NW-Europe allows for short links                      between sources and sinks           Several depleted gas fields beco...
Driving down costs                                                                                  Sharing infra structur...
CINTRA logistic concept    •      Bulk making/breaking for off shore CO2 storage    •      Intermediate Storage    •      ...
CINTRA’s CO2 Hub Partners                          • Transport from the Emitters via pipelines or                         ...
CO2 Hub Concept Advantages    • Multiple emitters linked with multiple sinks , increasing reliability of      CO2 take-awa...
How does it work    • MOVIE – will be shown during      presentation04-10-11                             9
Hub Concept Organic Growth Model:                           Asset build up follows the volume build-up              Source...
Potential CO2 Sinks                                                          Other           EOR                          ...
Rotterdam distance to sinks                           • Dutch sinks are all within                             the 400 km ...
CO2 Hub                            Legal/Contractual Framework                                       Providing a One-Stop-...
CO2 Hub                Legal/Contractual Framework    • Emitters as CINTRA’s customers    • ETS allowances for Emitter    ...
Stakeholder Management     Purpose:     mitigate risks associated with negative public perception for CCS                 ...
CO2 Hub Location04-10-11                      16
Connecting Hinterland             Barges to CO2 Hub Hub           Emitter              Emitter                         • L...
Current project status    • Launching emitters:           – Coal fired power plant + post combustion capture 1.1 MTA      ...
Launching Scheme           Dan Field on the Danish           sector of the North Sea is           operated by Maersk Olie ...
GCCSI LLSC study                        lessons learned to date   General   • Start engineering at the sink   • Minimize C...
GCCSI LLSC study                      lessons learned to date                         Costs: contract duration           P...
Transportation Costs: insight evolution                             LNG                     CO2                           ...
GCCSI LLSC study                          lessons learned to date    Costs    • CO2 transportation is to be considered as ...
GCCSI LLSC study                                  lessons learned to date    Legislation    • Biggest remaining uncertaint...
The offshore scope - shipping                                                                                             ...
THANK YOU           QUESTIONS?04-10-11                26
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Michael Tetteroo and Cees van der Ben - CCS Projects – Presentation at the Global CCS Institute Members’ Meeting: 2011

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Michael Tetteroo and Cees van der Ben - CCS Projects – Presentation at the Global CCS Institute Members’ Meeting: 2011

  1. 1. Carbon IN TRAnsport Launching project schemeImplementation of LLSC study key findings Melbourne October 4th, 2011 Cees van der Ben & Michael Tetteroo
  2. 2. Note This document and all information contained herein are the property of VOPAK, Anthony Veder, Gasunie & Air Liquide and are Strictly Confidential It may not be copied or used without the written permission of VOPAK, Anthony Veder, Gasunie & Air Liquide04-10-11 2
  3. 3. Rotterdam Climate Initiative (RCI) city region CO2 reduction targets -50% vs 1990 by 2025 CCS plays a mayor role in the Dutch national reduction targets in general and in the Rotterdam targets in particular.04-10-11 3
  4. 4. NW-Europe allows for short links between sources and sinks Several depleted gas fields become available and in due time incl. future aquifers: 50+ years of storage capacity for Europe.04-10-11 4
  5. 5. Driving down costs Sharing infra structure: simultaneously handling CO2 from multiple parties Combining CO2 flows lies in the nature of CCS: Power generation is responsible for 65%* of all green house gas emissions OECD/IEA Ref. Scenario 2006 2030 Majority of sources Total [TWh] 18921 33265 (+76%) are comparable Coal 41% 44% regarding: Nuclear 15% 10% • Flow & conditions Renewables 18% 23% • Compositions • Characteristics • Demands*): Reference Scenario in 2005 & 2030: resp. 61% & 68 % in CO2 eq. terms
  6. 6. CINTRA logistic concept • Bulk making/breaking for off shore CO2 storage • Intermediate Storage • Combine and link pipeline systems and barging/shipping routes: 4 routes • Provide independent custody transfer metering (for ETS) • Network building block (at rivers and coast lines) • Optimum CO2 : -50 ˚C, 7 bara04-10-11 6
  7. 7. CINTRA’s CO2 Hub Partners • Transport from the Emitters via pipelines or barges • Collection of CO2 to the CO2 Hub • Loading of sea vessels / injection in trunk line for transport to depleted offshore gas fields. • Liquefaction at the Emitter’s site or at the CO2 Hub• Temporary Storage of CO2• Connecting Hub to offshore trunk line or transfer to vessel • Locking the sea vessel to a floating turret or loading tower linked with the sub-sea system of the depleted gas/oil field • Injecting the CO2 into the porous rocks (depleted gas or oil field or aquifers, at required temp’s and pressures • As an alternative, mooring near a platform for discharging the CO2 into a depleted field via the platform utilities04-10-11 7
  8. 8. CO2 Hub Concept Advantages • Multiple emitters linked with multiple sinks , increasing reliability of CO2 take-away • Modular design allows easy volume related ramp up • Variable destinations with liquid logistics • Cost reduction through EOR • Reduced project risk without onshore pipelines and onshore storage04-10-11 8
  9. 9. How does it work • MOVIE – will be shown during presentation04-10-11 9
  10. 10. Hub Concept Organic Growth Model: Asset build up follows the volume build-up Source 1 Source 2 Source 3 Source 4 Source n 3 1 2 21. Early scheme: single source flow too 3. Final mature scheme: small to justify off shore pipe multiple sources & sinks, both2. Intermediate scheme: two combined depleted reservoirs and EOR flows do allow for an off shore pipe at production wells => ship moves into alternative CO2 or LPG service 2 3 3 1 2 Potentially Ship now could ship that become pipe used to sail line for 2 on sink 1 Sink 3: EOR Sink 1 Sink 1 Sink 2 Sink n sources at oil field04-10-11 10
  11. 11. Potential CO2 Sinks Other EOR 300 Mton CO2 K12B Projects capacity Taqa 40 Mton CO2 capacity CO2 from other ports • First targeted sink: Dan Field Danish Continental Shelf, EOR Project Maersk Oil • Hub forms a reliable CO2 source for EOR projects, allowing for a stable off take • More contacts with other sink operators at the North Sea • Potential CO2 from other ports will drive down costs for all participants further04-10-11 11
  12. 12. Rotterdam distance to sinks • Dutch sinks are all within the 400 km range • Rotterdam Ideally located for North Sea distribution • Offshore EOR potential significant04-10-11 12
  13. 13. CO2 Hub Legal/Contractual Framework Providing a One-Stop-Shop Transfer of CO2 title SH SH SH SH Emitter Rotterdam Cintra Sink Operator Necessary sub-contracting Compression Bulk making Sea for other Liquefaction specialized & Transport and terminal Transport services • CO2 title transfers from Emitter to sink Operator • Transport organized via Service Level Agreements04-10-11 13
  14. 14. CO2 Hub Legal/Contractual Framework • Emitters as CINTRA’s customers • ETS allowances for Emitter • CINTRA as multi-customer independent operator no title to CO2 • CINTRA Transportation Agreements: long term take- or-pay contracts • TA’s and SLA’s based on repeatable formula • Impartiality and transparency towards customers • CINTRA has one TA per emitter, backed up by one SLA per JV partner each04-10-11 14
  15. 15. Stakeholder Management Purpose: mitigate risks associated with negative public perception for CCS Type of Risks: 1. Negative image for companies involved 2. Delay in time 3. Extra costs / investments to be made beyond a first class SHE strategy Steps to come to Stakeholder Strategy: • Step 1: - Actor and network analysis • Step 2: - Inventarization communications and information options • Step 3: - Link actual communication option to key stakeholders • Step 4: - Execution in line with project development04-10-11 15
  16. 16. CO2 Hub Location04-10-11 16
  17. 17. Connecting Hinterland Barges to CO2 Hub Hub Emitter Emitter • Liquefaction of CO2 at site • River barges transport liquid CO2 over Rhine • Cargoes from several sources can be combined: economies of scale Emitter • Capacity on Rhine is abundant vs. pipeline hardly feasible04-10-11 17
  18. 18. Current project status • Launching emitters: – Coal fired power plant + post combustion capture 1.1 MTA – Hydrogen plant 0.4 MTA • Launching sink: Maersk off shore EOR operation • Launching scope: – On shore pipeline: 25 km, 40 bar – Terminal: 2.0 MTA liquefaction capacity, 20 kcbm LCO2 storage – Ships: 2 x 12 kcbm with onboard conditioning equipment – Off loading: double buoy system • Timing: – LOI’s in place: Q4 2011 – FID: Q3 2012 – RFO: Q2 2015 – Challenge: synchronize timing & permitting • Expected 2025 throughput: total 8 MTA of which 15 MTA via barge04-10-11 18
  19. 19. Launching Scheme Dan Field on the Danish sector of the North Sea is operated by Maersk Olie og Gas AS on behalf DUC – Dansk Undergrunds Consortium. Dan • 1.5 MTA of CO2 • Rotterdam Denmark • EOR CINTRA04-10-11 19
  20. 20. GCCSI LLSC study lessons learned to date General • Start engineering at the sink • Minimize CO2 composition requirements • Combining multiple emitters in one network is technically feasible. • No metallurgical/corrosion issues found other than water => dry the CO2 at the source SHE • No items of concern encountered • Low vessel collision risk due to high LCO2 density • On shore pipeline through busy areas: 40 bar Compression • Up to 100 bar: bull gear compressor ; beyond: pump • Moderate ambient temperatures: no power consumption difference between conventional compression or compression/liquefaction/pumping. Pipeline • In dense phase in order to minimize costs04-10-11 20
  21. 21. GCCSI LLSC study lessons learned to date Costs: contract duration Pipeline system tariffs are hurt the most by short term contracts04-10-11 21
  22. 22. Transportation Costs: insight evolution LNG CO2 Source: IEA GHG, 2004 CO2 CO204-10-11 22
  23. 23. GCCSI LLSC study lessons learned to date Costs • CO2 transportation is to be considered as a regular infra structural project: 20+ year contract durations • CO2 liquefaction’s energy intensity is relatively low => cost break even distances are 1. for on shore pipe versus barge: 200 km (and not 1500 km) 2. for off shore pipe versus ship: 150 km (and not 750 km) • Depending on flow and distance the transportation costs may vary from 20 to 120 €/ton • Combining multiple emitters in one system is paramount to make CCS affordable, especially for industrial (smaller) emitters04-10-11 23
  24. 24. GCCSI LLSC study lessons learned to date Legislation • Biggest remaining uncertainties: – CO2 custody transfer: who, when and to whom – Monitoring requirements in the mean time Barging/shipping • No CO2 venting/re-liquefaction in transit • Barge max. LOA 135 m → 150 m in the future • Max barge size Ruhrgebiet → R’dam: 7500 tonnes (Ruhrgebiet → Karlsruhe: 6000 tonnes) • Required ship sizes: 10,000 - 30,000 m3 • Ship min. required off loading temperature: 0 ˚C • sea water suffices as heat source for LCO2 “vaporization” Ship off loading • HP pressure CO2 unmanned off loading: technically feasible at acceptable uptimes in deep and shallow water. • Depleted reservoir’s existing wells require retubing • Ship → sink batch injection technically feasible, multiple wells likely to be required flow wise. • Tubing: low temperature material of construction.04-10-11 24
  25. 25. The offshore scope - shipping 450 • Depleted gas field NS 400 • Stand alone operation Ship manifold pressure (bara) 350 •Stay above hydrate formation bottom hole 300 temperature: 13 ˚C 250 • Challenges: all solvable 200 Intermittent flow 150 Pressure over sink life time: 100 50 150 – 400 bar at well head 0 0 2 4 6 8 10 12 14 16 Time line (years) 3.5 Ship transport capacity [mmt/yr] 3 2.5 2 30,000 cbm ship 1.5 1 10,000 cbm ship 0.5 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 0 • Loading & discharge 2000 t/hr Distance [nm] • Sailing speed 15 kts • Voyage related spare 1 day 2504-10-11 25
  26. 26. THANK YOU QUESTIONS?04-10-11 26

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