The document summarizes Shell's Quest Carbon Capture & Storage Project in Alberta, Canada. It discusses (1) Shell's response to reducing CO2 emissions through natural gas, biofuels, carbon capture & storage, and energy efficiency; (2) Shell's involvement in various CCS projects worldwide; and (3) provides an overview of the Quest project which will capture over 1 million tonnes of CO2 per year from an oil sands upgrader and transport it via pipeline for storage in deep saline aquifers.

1. QUEST Carbon Capture & Storage Project
Alberta, Canada
Presentation to GCCSI Members Meeting
Melbourne, Australia
October 2011
Tim Bertels, Manager Global CCS Portfolio
Shell International E&P, The Hague.
Copyright SHELL CANADA ENERGY 1

2. SHELL’S RESPONSE TO THE CO2 CHALLENGE
1. Natural Gas
2. Biofuels
3. Carbon Capture and Storage (CCS)
4. Energy efficiency
Perdido, USA Biofuels, Brazil (Sugar cane for proposed Carbon Capture Research, Mongstad, SEPC, Singapore (part of the global energy
Cosan joint venture) Norway efficiency programme)
2

3. DEVELOPING CCS TECHNOLOGIES FOR THE FUTURE
Weyburn Mongstad
Quest Midale
Longannet
Boundary
Dam Peterhead
Aberthaw
Westcarb
Shell involvement in CCS Projects;
Gorgon
Industrial scale projects in construction
Industrial scale projects planned
Demonstration projects, joint industry partnerships
Otway
3

4. CCS IN CANADA/ALBERTA
GHG emissions profile and mitigation options – Canada
A significant part of GHG mitigation plans
for both Canada and Alberta
Technically possible today
 Builds on proven components
CCS needs…
 Government leadership and financial Source: NRTEE ‘Achieving 2050: A Carbon Pricing Policy for Canada”, 2009
support GHG emissions profile and mitigation options – Alberta
 Public awareness and acceptance
 Demonstration projects
Canada & Alberta providing partial
funding for CCS demonstration projects
Source: Alberta 2008 Climate Change Strategy
4

5. QUEST LOCATION MAP
ALBERTA
ALBERTA INDUSTRIAL HEARTLAND
5

6. QUEST CCS PROJECT - OVERVIEW
Quest CCS Project - fully integrated CCS
(capture, transport, storage & MMV)
JV among Shell (60%); Chevron (20%);
and Marathon (20%)
Improves GHG performance of Oil
Sands operations
Capture at the Scotford Upgrader from 3
Hydrogen Units
Capacity to capture over one million
tonnes of CO2 per year or up to 35% of
Scotford Upgrader direct emissions
Equivalent of taking 175,000 vehicles off
the road
CO2 transported by pipeline 6

7. CO2 CAPTURE SCOPE
Treated Gas
CO2 to
to HMU
Pipeline
Amine CO2
CO2 Capture
Regeneration Compression
Feed Gas
from HMU Dehydration
Up to 1.2 million tonne CO2 per year nameplate from 3 steam methane reformers, 1.08
million tonne CO2 per year on-stream
Activated amine (Shell ADIPX) & multistage compression with dehydration
CO2 pipeline operating in the dense phase 7

8. QUEST INTEGRATED CCS PROJECT
CO2 Source
Base Facility & Expansion-1
CO2 Capture
Quest Capture Facilities
8

9. QUEST PROPOSED PIPELINE ROUTE
Surface
Casing
The Quest CCS Project is located in the Cement
Intermediate
Industrial Heartland Region,
Casing
Tubing
Main Injection
approximately 5 km northeast of Fort
Casing
Saskatchewan
The pipeline will travel up to 90 km north
of the Scotford Upgrader to the chosen
injection locations
North Saskatchewan River crossing SALT SEALS
drilled Packer
Assembly
SHALE SEALS
Line break shut off valves at 15 km TARGET FORMATION
Perforations
Line size up to 12 inches in diameter
allow CO2 to
penetrate the
formation
9

10. QUEST CO2 STORAGE OPTIONS
Quest premised on Saline Aquifer rather than EOR or depleted
Storage Option
field
Basal Cambrian Sands (BCS) selected
 Primary storage zone is a deep saline aquifer formation
called the Basal Cambrian Sand (BCS) located
approximately 2300 metres deep
 Multiple caprock and salt seal layers
 The BCS is well below hydrocarbon bearing formations and
potable water zones in the region
 Relatively few wells drilled into the BCS
 Significant storage capacity …
10

11. QUEST CO2 INJECTION & MONITORING
Wells and Drilling
 FDP expected to have 3 – 7 wells Surface
Casing
Cement
Conventional drilling methods
Intermediat

e Casing
Tubing
Main
Injection
Casing
 Multiple steel casings for wells
Measurement, Monitoring & Verification
(MMV)
 Subsurface and surface monitoring
 Over 50 technologies considered: SALT SEALS
Packer
Assembly
SHALE SEALS
 Well monitoring TARGET FORMATION
Perforations
 Geophysical monitoring allow CO2 to
penetrate the
formation
 Geochemical monitoring
 Surface monitoring
11

12. QUEST CCS PROJECT SCHEDULE
Filed
Quest 2011 Development Program
Progress Project Definition  Integrated planning and decision based process
 Complete Field Development Plan
 Advance front end definition – Basic Design
Engineering Package
Stakeholder Engagement  Consultation with landowners and municipalities
 Community Open Houses and workshops
 Public outreach and education
12

13. QUEST CCS PROJECT – EARLY LEARNING
Front-end loading
 Engineering, Exploration, Appraisal not Exploration, Appraisal, Engineering
Capture
 Cost efficiency key e.g. design class
 Steam & power integration key value levers
Storage
 Appraisal: eliminating uncertainty without compromising reservoir integrity
 Significant modelling capability required, hydrogeology understanding vital
Operations
 Process integration challenges, especially transient conditions
 Dispersion modelling
MMV
 Adaptive, many technologies available, value of information is the determinant 13

14. WHAT IS NEEDED TO PROGRESS CCS GLOBALLY
Support for CCS from key stakeholders
Sense of urgency to deliver, support to frontier CCS projects
Global knowledge sharing to enable best practice
Engineering at scale to deliver cost reduction
Infrastructure planning and reservoir characterisation to reduce costs
Clear signal (from the regulator) now of the CCS business model 2020+
14