ccs -what’s it all about?
TRANSCRIPT
CCS - What’s it all about?
Ian Phillips – Director, CO2 Infrastructure
SPE Meeting - Wednesday 15th June 2011, Edinburgh
1
• Introduction
• CO2 – it's funny stuff!!
• Technology – status, gaps and opportunities
–Power generation
–CO2 capture
–Compression
Agenda
2
–Compression
–Transportation
–Wells
–Reservoir
• Some common themes
• First 14 years
– oil and gas companies
– Shell / Burmah / Marathon
• Next 6 years
– service sector
– RGU / Halliburton
• Next 5 years
• M.Eng. Petroleum Engineering
– Heriot Watt 1983
• MBA - Open University 1994
• Fellow of Energy Institute
• Chartered Engineer
• Director
– Carbon Capture & Storage
Introductions
Ian Phillips
– small operator - Ramco
• Then 2 years
– Oil major - BP
• Since 2007
– Worlds first pure CCS company
– CO2DeepStore
– Carbon Capture & Storage Association
– SPE Aberdeen & Europe
• Chair
– Heriot Watt University Strategic Advisory Board
– Young Enterprise Grampian
• Director
– Young Enterprise Scotland
• CO2DeepStore is a Scottish company
– founded in 2007 and based in Aberdeen
– focussed entirely on creating, developing and operating CO2 transportation and storage
• Petrofac
– A Co-Investing Energy Services Business
– Designs / Builds / Operates onshore and offshore facilities
• Company profile (2010 Annual Report)
– Revenues US$4.4 billion
CO2DeepStore Limited
A CCS Developer
projects as Operator and / or investment partners
– acquired 100% by Petrofac Limited in April 2010
– Revenues US$4.4 billion
– Net cash $1.1 billion
– FTSE 100 – Market cap US$7.4 billion (March 2011)
– 14,000+ employees
– 5 major operating centres
• 19 further offices worldwide
A CCS Developer
RWEAberthaw
APL Hunterston
Longannet
Peterhead
Progressive
Teesside
E.ONKingsnorth Yorkshire
Powerfuel (Hatfield Moor)
National Grid (Infrastructure)B9 (Hatfield)Alstom (Drax)
• Introduction
• CO2 – it’s funny stuff!!
• Technology – status, gaps and opportunities
–Power generation
–CO2 capture
–Compression
Agenda
6
–Compression
–Transportation
–Wells
–Reservoir
• Some common themes
• Oil & gas world
–You take what Mother Nature throws at you
–You design accordingly
• CO world
CO2 – it’s funny stuff
See things the other way around`
• CO2 world
–You decide what you need
–You process the CO2accordingly
7
Compressor discharge
temperature range –Dense Phase Operations
Pipeline operating range – Dense Phase Operations
Reservoir
CO2 – it’s funny stuff
CO2 Operating Envelope
Compressor discharge
temperature range –Gaseous Phase Operations
Pipeline operating range – Gaseous Phase Operations
CO2 – it’s funny stuff
CO2 – phase transition
• Starts with visible meniscus between liquid and gaseous CO2• As pressure and
9
• As pressure and temperature rises meniscus gradually disappears as fluid transitions to dense phase
• Density
–Gas 1.98 kg/m3 (STP) – denser than air
–Liquid 955 kg/m3 (0°C, 70 bar)
–Solid 1562 kg/m3 (at freezing point -78°C, 1 bar)
• Volumes of CO contained in 1 km of 36” pipeline
CO2 – it’s funny stuff
Densities and volumes
10
• Volumes of CO2 contained in 1 km of 36” pipeline
–Pipeline volume = 192,000 cubic meters
–Gaseous = 0.4 – 10 tonnes of CO2–Liquid = 184,000 tonnes of CO2
CO2 – it’s funny stuff
Impact of rising reservoir pressure
Gaseous phase reservoir
Saturated Reservoir
Dense Phase Reservoir
• Introduction
• Overview of CCS chain
• CO2 – it’s funny stuff!!
• Technology – status, gaps and opportunities
–Power generation
–CO capture
Agenda
12
–CO2 capture
–Compression
–Transportation
–Wells
–Reservoir
• Some common themes
Overview of the CCS chain
Typical CCS Project overview
Amine plantPower station Compressor Onshore Pipeline Offshore pipeline Offshore Platform
• Coal fired
–Sub-critical ~35%
–Super-critical ~45%
• IGCC
Technology status – Power Station
Power Generation efficiency
–Synfuel to gas turbine plus steam turbine ~40-45%
• Gas fired
–~50-55%
• Need to remove
–Particulates
–Sulphur dioxide
–Nitrous oxides
–Temperature
Technology status – Power Station
Flue Gas Processing
–Temperature
–Water content
• Proven technology
– Process warranties available
• Long term - flawed technology
Technology status – Capture
Amine solvent
– Unsustainably high energy consumption
– Consumes 20-25% or power generated
• R&D
– Focussed on reducing energy consumption
• Chemically based
–Cold ammonia, powdered limestone etc
–Unsustainably high energy consumption
• Cryogenic process
–Unsustainably high energy consumption
Technology status – Capture
Other post-combustion technologies
–Unsustainably high energy consumption
• Nano-filtration
–High temperatures
–Particulates
–Chemical reactions
• Similar levels of efficiency to super-critical coal-fired boilers
• Historically lower levels of reliability
• Lower energy consumption than amine
• Still a high-energy approach as fuel heated to >1100°C
Technology status – Capture
Pre-combustion technologies
heated to >1100°C
– To split hydrocarbons into H2and CO
– Fuel is H2– CO steam shifted to CO2 (and to produce more H2)
Wabash River IGCC, Illinois, US
• Oxygen separation at ambient conditions
• Burn fuel plus O2 plus CO2• >90% CO in flue gas
Technology status – Capture
Oxy-fuel technologies
• >90% CO2 in flue gas
Technology status – Compression
Compressor power requirements
Technology status – Compression
Inter-stage Dehydration
Gaseous phase reservoir
Saturated Reservoir
Dense Phase Reservoir
Technology status – Compression
Final dehydration
• Glycol
–100 ppm
•Molecular sieves
–<20 ppm
• Potential requirement
– “HIPS” for moisture content – to protect pipeline
•Well understood
•High capital cost
• Likely a shared facility
–Many CO2 sources
Technology status – Pipeline Transport
Pipeline Transport
2
–Many CO2 sinks
•Major vulnerability
–Moisture content = corrosion
Technology status – Pipeline Transport
Dense Phase capacities
Technology status – Ship Transport
Two shipping states
• Transport conditioning
– Compress
– Refrigerate
• Injection conditioning
– Reduce pressure
– Heat
Technology status – Ship Transport
Major energy penalty
26
Technology status – Offshore Structure
Platforms
•Minimal / no processing
–Likely unmanned
• Gives ready well access
• BUT
–Ongoing operating costs
–Long operational life
• 40-50 years
• High capital cost
• Difficult to maintain
• Costly well access
•Often long operational
Technology status – Offshore Structure
Subsea
• Often long operational life
–40-50 years
–Not natural subsea territory
• Understanding Flow
–2 phases
–Gravity / geothermal
• Safety
–SSSV
Technology status – Wells
Well technology
–Wellhead ratings
• Monitoring / instrumentation
–Pressure
–Temperature / DTS
–Micro-seismic
Technology status – Reservoirs
North Sea CO2 storage categories
EOR
1.1
Depleted Gas
CO2 storage is limited – CO2 cycles as oil is recovered – EOR is technically and commercially challenging offshore
Best initial CO2 storage potential – can be screened for high integrity – key sites come
30
Depleted Gas
5.1
Aquifer
15
Storage capacity of CO2e in Giga Tonnes
Source – Industrial CO2 Emissions and CO2 Storage Potential in the UK - British Geological Survey report for DTI 2006
screened for high integrity – key sites come available soon.
Greatest long term CO2 storage potentialMajor costs to explore, assess and prove capacity – Major uncertainty regarding CO2containment
Technology status – Reservoirs
Depleted gas field
31Map source - United Kingdom Oil and Gas Fields - Commemorative Millennium Volume - Geological Society London
Technology status – Reservoirs
Aquifers
Aquifer injection - Cap rock uncertainty – Storage mechanism uncertainty
32Source – Progressing Scotland's CO2 Storage Opportunities – SCCS 2011
• Depleted hydrocarbon reservoir
– Start with produced volume
– Minus hetrogeneities
– Minus residual water saturation following water
• Deep saline aquifer
– What “capacity” do you measure
• Structural
• Capillary trapping
– Cap rock integrity
Technology status – Reservoirs
Reservoir capacity
saturation following water influx
– Minus mixing effects (change compressibility)
– Minus maximum recharge pressure
– Plus capillary trapping in water leg
– Cap rock integrity
– Plus dissolution in brine
• CO2 temperature
– Joule Thomson effect
– Drops 1°C per 0.8 bar (12 psi)
• Platform arrival temperature of CO2– 4-15 °C (seabed temperature)
• Injection pressure differential
– 200-400psi = 14-28bar
� 17-34 °C temperature drop at perforations
� Risk of thermal fracturing
� Injectivity
Cap rock integrity
Technology status – Reservoirs
Reservoir temperature effects
� Cap rock integrity
� Convection currents in the reservoir
• CO2 plus water = Carbonic acid
• Dissolves cements and some minerals
• Change porosity
• Mobilise fines – reduce permeability
Technology status – Reservoirs
Reservoir geochemistry effects
Calcite Cement
permeability
– May reduce injectivity
Deviation = 0.1mm
Feldspar
• Oil and gas focus
– Drilling issues
– Target reservoir
• Carbon storage focus
– Drilling issues
– Storage reservoir
Technology status – Reservoirs
Overburden considerations
– All intermediate formations
• Detection of leaks
• Containment of CO2
• Rock integrity
–Hydrocarbon production “deflates” reservoir
• Stresses overburden
• Potential for fracturing
–CO2 injection “re-
Technology status – Reservoirs
Overburden considerations
–CO2 injection “re-inflates” reservoir
• De-stresses overburden
• Surface movement visible
BP In Salah surface level changes
• Introduction
• Overview of CCS chain
• CO2 – it's funny stuff!!
• Technology – status, gaps and opportunities
–Power generation
–CO capture
Agenda
38
–CO2 capture
–Compression
–Transportation
–Wells
–Reservoir
• Some common themes
Common themes - safety
When CO2 leaks
Common themes - safety
Leaks and dispersion
• “Jet cooling” effect
• CO2 at -70°C
• CO2 is heavier than air
• It goes down!!• It goes down!!
• Onshore
• Plant topography an issue
• Offshore
• Don’t launch the lifeboats
• Or fly the helicopter!!
CO2
Concentration
in Air (% v/v)
Exposure Effects on Humans
350ppm Normal Normal breathing
2 Several hours Headache, difficult breathing upon mild exertion
3 1 hour Mild headache, sweating, and difficult breathing at rest
4 – 5 Within a few
minutes
Headache, dizziness, increased blood pressure, uncomfortable breathing
6 Several hours Tremors
Common themes - safety
CO2 Toxicity
6 ≤ 16 minutes Headache, difficult breathing (dyspnea)
7 – 10 1 – 2 minutes Hearing and visual disturbances
7 – 10 1.5 minutes to 1
hourUnconsciousness, near unconsciousness
7 – 10 Few minutes Headache, increased heart rate, shortness of breath, dizziness, sweating, rapid breathing
>10 – 15 1 minute to
several minutes
Dizziness, drowsiness, severe muscle twitching, unconsciousness
17 – 30 Within 1 minute Loss of controlled and purposeful activity, unconsciousness, convulsions, coma, death
Source: DNV report “Mapping of potential HSE issues related to large-scale capture, transport and storage of CO2 “ 2008
Asphyxiation
Stage
Oxygen concentration (% volume) and
Effects on humans
Normal 21% in air (plus 78% nitrogen, 1% argon, 0.035% CO2)
1st 21 to 14% : Increased pulse and breathing rate with
disturbed muscular coordination
2nd 14 to 10%: Faulty judgement, rapid fatigue and
insensitivity to pain
Common themes - safety
Asphyxia risk - CO2 displaces O2
3rd 10 to 6% : Nausea and vomiting, collapse and permanent
brain damage
4th Less than 6% : Convulsions, breathing stopped and death
Source – DNV Report “Mapping of potential HSE issues related to large-scale capture, transport and storage of CO2” 2008
• Major issue is potentially large volumes
• Detection in process plant
– CO2 will accumulate in the low points
– Personal safety of individuals on plant
Common themes - safety
Leak detection - safety
individuals on plant
• Detection of transportation leaks
– Major leaks – pretty obvious
– Minor leaks – affects
• Humans
• Environment
43
• Monitoring for leaks to the environment
–During operations – to detect leaks
–Post-closure – to prove the absence of leaks
• Subsurface monitoring
–Verifying CO2 in store
• Pressure, temperature, micro-seismic, 3D seismic
Common themes - detection
Long term monitoring
44
• Pressure, temperature, micro-seismic, 3D seismic
–Detecting CO2 movement outside store
• Proving the absence of leaks
• Phase change points well understood
• Behaviour of two phases of CO2 co-existing is not
• Large volumes complicate things
• Effects to be studied
– 2 phase horizontal
– 2 phase vertical (up)
– 2 phase vertical (down)
– Geothermal and gravity effects in wells
Common themes – CO2 behaviour
2 Phases are complicated
45
things
• Power station
–20-40 year operating life
• Store monitoring
–Another 20+ years
Common themes - time
Long term activity
• Project evaluation
–NPV economics not ideal
–Need to consider
• Energy use
• Net CO2 emissions
• Debt finance structure
46
Common themes – lots of CO2
UK NAP Emissions (2008)
Emissions in tonnes of CO2
Common themes – lots of CO2
EU emissions by country (2008)
958
628
541 527600
800
1000
1200
Nati
on
al E
mis
sio
ns (
millio
ns o
f to
nn
es o
f C
O2)
406 396
207
146 141 133 12787 78 73 73 70 67 64 64 49
24 21 20 12 12 10 30
200
400
Nati
on
al E
mis
sio
ns (
millio
ns o
f to
nn
es o
f C
O2)
Common themes – lots of CO2
Global emissions 1990-2009
• Most CO2 gets dumped to atmosphere for free
• Annual emissions from a power station
– Coal – 10-25 million tonnes
– Gas - 1-5million tonnes
Common themes – Paying for CCS
Its not commercial (yet)
– Gas - 1-5million tonnes
• EU ETS is introducing a cost
– €15-€16 / tonne
– All electricity generation from 2013
– New sectors being added
• Airlines / Industrial emissions
• 2000MW power station
–~£560 million per annum revenues
• Coal-derived emissions
–£100-£300 million per annum at current EUA costs
• Available to pay for CCS
• BUT £125 million p.a. lost revenue due to amine-
Common themes – Paying for CCS
Its not commercial (yet)
• BUT £125 million p.a. lost revenue due to amine-related energy penalty
• General view
–Early projects need €100+ per tonne abated
–Long term €40 per tonne abated
• Government subsidies
–EU NER300 (€4-8 bn)
–UK DECC 1 (£1 bn)
–UK DECC 2-4 (£??bn)
• UK Electricity Market reform proposals
–Feed in Tariff /
Contract for Difference
–Payment linked to
Common themes – Paying for CCS
So how do you make any money?
–UK DECC 2-4 (£??bn)
–Australian programme
–Canadian programmes
–US programmes
–Payment linked to results (g/KWh CO2)
–Funded from general taxation
• BUT new Climate Change Levy structure
• Effectively a Carbon Floor Price
Common themes – urgency
Its getting warm around here
Every year of delay is 1ppm added to the atmosphere
“Putting something back��.”
CCS – Questions & Comments welcome
Ian Phillips – Director, CO2 Infrastructure
SPE Meeting - Wednesday 15th June 2011, Edinburgh
54