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The Costs and Benefits of Carbon Capture and StorageKhosrow Biglarbigi, INTEK Inc., Hitesh Mohan, INTEK Inc., Marshall Carolus, INTEK Inc.

Copyright 2011, Offshore Technology Conference

This paper was prepared for presentation at the Offshore Technology Conference held in Houston, Texas, USA, 25 May 2011.

This paper was selected for presentation by an OTC program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not beenreviewed by the Offshore Technology Conference and are subject to correction by the author(s). The material does not necessarily reflect any position of the Offshore Technology Conference, itsofficers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Offshore Technology Conference is prohibited. Permission toreproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of OTC copyright.

AbstractThe growing concerns about meeting increased demand and greenhouse gas emissions has led to increased interest in carbon

capture and storage (CCS) technologies. Industry is already exploring various CCS technologies. The viability of a carboncapture and sequestration industry will be dependent upon the costs of capturing CO2 from industrial and natural sources.This raises the questions: what are the potential costs and benefits of capturing industrial CO2?

To answer these questions, a detailed analysis was conducted. A source-to-sink analysis was done to estimate the totalcost of capturing and transporting CO2 from a variety of industrial sources to potential sequestration sites. These includeconcentrated sources, such as ammonia and ethanol plants, as well as less-concentrated sources including power plants. Theconsidered sequestration sites include value options such as enhanced oil and gas recovery projects, pressure maintenance ingas reservoirs, as well as sequestration in saline aquifers, depleted oil and gas reservoirs, and other geologic media.

This paper will discuss examples of various CO2capture technologies currently in use and in development. It will alsodiscuss the industrial sources and sequestration options which were considered in the analysis. In addition, the paper willprovide estimates of CO2pipeline transportation costs at various distances between sources and sinks. Finally, the paper willdiscuss the total estimated cost, inclusive of capture, compression, and transportation, at which the CO 2 can be sold tooperators of enhanced oil recovery projects or other industries which could utilize the CO2. This analysis concluded that CO2

can be captured and transported approximately 100 miles at costs ranging between $1 and $3.50 per thousand cubic feet.

IntroductionOver the past decades, the United States has continued tobe a major emitter of many greenhouse gasses includingCO2. To date CO2 is the largest single contributor to thegreenhouse-gas buildup in the atmosphere. The EIAreported that in 2008, the U.S. emitted more than 5.75Billion tons of CO2

1. This volume, as seen in figure 1, isan increase of more than 20 percent over the 1990emissions. This has created a growing concern of climatechange and greenhouse gas emissions from industrialsources such as power generation, the number one source

of CO2emissions world wide

2

.

Figure 1: U.S. Annual Carbon Dioxide Emissions

In order to help meet strict future environmentalrequirements, such as the legal and regulatory frameworkthe NPC called for, CCS technologies will be borrowedfrom other industries, enhanced and developed.Sequestration can occur for either directly sequestering theCO2 or treating it as a commodity for a variety ofindustrial uses. Industrial sources of CO2are the secondlargest emissions source of greenhouse gas consisting of 27% annually and are subject to capture and use in industrial orsequestration projects. These CO2 streams have food grade, industrial grade, and sequestration applications. This paperdiscusses the carbon capture technologies, industrial CO2 sources, the costs of transportation, and the key value-addedsequestration options for the environment and industry alike.

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Source: US EIA

United States

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Capture Technologies Figure 2: Amine Absorber Schematic3As strict environmental, legal, and regulatoryrequirements are developed it is assumed thatCO2will need to be captured for sequestrationor use in other industrial purposes. Amineabsorption is an example of one viable capturetechnology which is currently being

developed. Aqueous mono-ethanolamine is aderivative of ammonia and is often used in thetreatment of flue gases. In this process,illustrated in figure 2, the flue gases escapingfrom an industrial process are directed througha cool aqueous amine solution. In this step,the CO2 reacts with the amine and forms arich amine. The rich amine is then heated inorder to release the CO2before it is cooled andrecycled. The CO2 is dried to remove thewater vapor and then compressed fortransportation.

Amine

Absorber

Flue Gas

without

CO2

Feed

Gas Lean SolutionPump

Lean/Rich

Exchanger

Amine Stripper

Acid Gas

Condenser CO2

Make-UpWater

Lean

Solution

Cooler

Source: UOP, Amine GuardTM FS Process 2000. Amine Reboiler

In addition, other capture processes are under development. These include the use of hot and cold methanol, pressureswing absorption, potassium carbonate, membranes, or combinations of amine and membranes.

CO2 capture costs are dependent upon the process and the concentration of the CO 2 in the flue gas. TheIntergovernmental Panel on Climate Change (IPCC) estimated in 2005 that capture costs for CO2could range between $31and $55 per metric ton4. This cost includes both capital and operating costs and covers the capture, drying, and compressionof CO2.

Industrial Sources of CO2Figure 3: Industrial Sources of CO2The analysis was conducted on industrial sources which

produce a stream of CO2. The primary source of emissiondata for the source to sink analysis was the NationalCarbon Sequestration Database and GeographicInformation System (NATCARB). NATCARB is aunified database, funded by the National Energy

Technology Laboratory (NETL) and maintained by theKansas Geological Survey, which contains several regionaldatabases of carbon sources and sinks. For this studyINTEK analyzed the databases to provide unique subsetsof data for analysis5.

RefineriesAmmonia Plants

Cement Plants

Hydrogen Plants

Ethanol Plants > 50 Bcf/Yr


Fossil Fuel Power Plants

RefineriesAmmonia Plants

Cement Plants

Hydrogen Plants




The NATCARB database provides source data forindustrial carbon dioxide emissions totaling 56.5 Tcf. Datais provided for utilities, ethanol, gas processing, concrete,steel, refineries, ammonia, and other industrial sources.Industries considered as potential sources include: thefossil fuel plants, refineries, cement plants, hydrogenplants, ammonia plants, and ethanol plants. Figure 3 mapsthe industrial sources considered in the study6.

Figure 4: Ethanol Plant Locations

Fossil fuel plants and refineries represent almost 90%of the total CO2 emitted. However, CO2 emissions fromethanol plants are expected to grow steadily in the nearfuture. The location and emission data of ethanol plants,presented in figure 4, was supplemented using data fromthe Renewable Fuels Association7. As seen in table 1, upto 25 Tcf of industrial CO2 can be made available eachyear through capture from these industrial sources8.

Cost of Capturing Industrial CO2Once a suitable source is established the CO2 is thencaptured. Capture cost data was complied from a literature search of publicly available data including the recent GlobalEnergy Technology Strategy Program Report9-12. As seen in table 2, the capture costs are technology-specific and vary





65 Ethanol Plants

108 BCF CO2Emitted Each Year

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Table 1: Available Volumes of CO2drastically depending on the plant type. The technologies for capturing CO2are in development for this study a conservative cost estimate between $31and $55 per ton of CO2 captured is used. These costs are expected todecrease over time as the technologies become developed and expand theirmarket penetration.

Industrial

Source

Annual CO2

Available (BCF)

Fossil Fuel Plants 21,763

Refineries 2,082

Cement Plants 403

Hydrogen Plants 343Ammonia Plants 126

Ethanol Plants 108

All Sources 24,825

Transportation Costs

Transportation of CO2can occur through truck, barge, ship, and pipelines.When transported via truck, barge, and ships the CO2 is transported as aliquid. This process requires liquefaction infrastructure and additionalactivities such as loading and unloading. The costs associated are $10 perton for liquefaction and $1-$10 per ton for shipping. Traditionally suchcommodities are transported using pipelines. CO2 transported via pipelinemust be dried and compressed. Compression i Table 2: Source Specific CO2s high (2000-3000 psig) andtog

In thisillu

sported,

upon the volume of CO2 transported and theistance.

on, the keyquestration and value options are described.

ew Mexico. Foris test, 2,100 tons of CO was injected13.

ether cost $9 per ton.The transportation costs are assumed to be the pipeline tariffs and

calculated using the following procedure: 1) The maps of industrial sourcesand candidate fields were overlaid. 2) The average distances between thesources and fields were calculated. 3) A pipeline tariff model wasdeveloped and used to calculate the minimum tariff required for each source.Figure 5, which illustrates this procedure, shows the distances between fourrefineries and a large number of candidate fields in the Illinois Basin.


Refineries

Cement Plant

Hydrogen Plants

Ammonia PlantsEthanol Plants

New IGCC Plants

6 - 12

25 - 40

$/Ton CO2

Range

38 - 63

35 - 55

35 - 55

6 - 12

6 - 12

Technology

stration, the tariff would be for the average distance of 158 miles.The pipeline cost is dependent upon the distance the CO2is tran

the capacity of the pipeline, and the compression equipmentrequired. Figure 6 provides example costs for two pipelinescenarios. As seen in the graph, transportation costs canrange from less than $7 per ton to more than $8 per tondependingdStorage OptionsAfter the CO2 has been captured compressed, and

transported, it must be sequestered. As illustrated in figure

7, the company can either directly sequester the CO2or treatit as a commodity for industrial use. The value of the CO2isdependent upon its level of contamination and the purposefor which it is intended. In this sectise

Sequestration in Depleted Oil and Gas ReservoirsCarbon dioxide can be injected into depleted or abandonedreservoirs. In 2008, the National Energy TechnologyLaboratory (NETL) conducted a CO2sequestration pilot testin the depleted West Pearl Queen Field in N

Figure 5: Calculating Average Pipeline Distances

th 2

Sequestration in Deep Saline AquifersAnother sequestration option includes the use of salineaquifers, which are composed of porous rock containingbrine. These aquifers are capped by an extensiveimpenetrable rock layer which allow for the trapping of theinjected CO2

13. These formations are widespreadthroughout the United States and Canada. In fact, there areseveral aquifers with considerably large storage potentialwithin the states of Utah, Wyoming, and Colorado. Onesuch formation is the Farnham Dome, which is located alongthe southwestern edge of the Uinta Basin. The FarnhamDome is the target location of a planned field test of the effectiveness of carbon sequestration in deep saline aquifers. Asreported by NETL, the injection wells will be drilled in 2009 and CO2 injection will continue through 2012. Up to one

$6.60

$6.80

$7.00

$7.20

$7.40

$7.60

$7.80

$8.00

0 50 100 150 200 250

TransportationCosts($/T

onofCO2

)250 MMcf/D500 MMcf/D

Figure 6: Average Pipeline Tariffs

Distance (Miles)

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million tons of CO2is planned to be injected each yearduring the test phase. The test site will be monitoredfor several more years after injection has beencompleted. NETL has recently assessed deep salineformations and has found that those saline aquiferswithin Colorado, Utah, and Wyoming have thecom

Figure 7: Sequestration and Value Options

bined capacity to store between 291 and 1,119

llion tons of CO214

. The locations of the saline

ccurring at up to00 meters, it will be transported by pipeline;

Thedustrial CO must be at least 99.5% pure CO2while

e 99.9% pure.

mi

,0

the reservoir's original oil can beext

a combined production of 240,000 barrel ed between 2006 and 2008. Figure 9draws the relationship between the incre he production being realized17.

aquifers are provided in figure 8.

Sequestration in OceanbedsSequestration of CO2 in the oceanbed is anexperimental technology and is not currently in use.Under this option, if sequestration is o

Oil & Gas Res.

Brine Aquifer

Ocean Bed

CO2

Sequestration

Gas Bearing

Sandstone

Gas Bearing

Shale

Coal Bed

Methane

Gas Storage

(Base Gas)

EOR

Value-Options

Environmental

Benefits

Food Grade

Industrial Grade

Environmental &

Economic Benefits

1otherwise a ship will be required.

Food Grade & Industrial Grade CO2If the company purifies the CO2sufficiently, it can besold as either industrial or food grade CO

2. Preparing

CO2 for an industrial or food purpose is more costly,however, as it must meet purity standards.in 2the food grade CO2is required to bEnhanced Oil Recovery (EOR)Enhanced Oil Recovery (EOR) is a generic term fortechniques for increasing the amount of crude oil thatcan be extracted from an oil field. Using EOR, 30-60%, or more, of

racted which is 10-20% more than primaryrecovery alone.

CO2EOR technology has been demonstrated to be

profitable in commercial scale applications for nearly30 years. As of 2008, there were one hundred CO2EOR projects in the United States. These projects had

s per day. Twenty of these projects were startase in both the number of active projects and t

Figure 8: Deep Saline Aquifers15

Figure 9: Current U.S. CO2EOR Projects

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Figure 10: Candidate U.S. CO2EOR Fields16

There are nearly 2,100 reservoirs in the OnshoreLower 48 United States which are candidates forCO2miscible flooding (figure 10) and would presentan applicable market for the produced CO2. Thesepotential reservoirs were identified using thefollowing criteria: API Gravity greater than 22 degrees

The reservoir pressure greater than theminimum miscibility pressure

Depth greater than 2,500 feet Oil viscosity less than 10 centipoise Current oil saturation is greater than 20% of

the pore volume Either sandstone or carbonate rock

Gas Bearing Sandstone

CO2can be injected into the gas bearing sandstone inorder to maintain pressure and produce the methanecontained in the reservoir. Gas reservoirs insandstones have ideal porosity for CO2 injection.

Injection is continued until the CO2breaks through.This process may require the installation ofadditional injection wells and compressors toincrease pressure in the reservoir.

Gas Bearing ShaleSimilar to the gas bearing sandstones, CO2 can beinjected into gas bearing shales. In this instance, theCO2is used to maintain the pressure in the reservoir,and to produce the methane through the naturalfractures in the reservoir. This process is continueduntil the CO2breaks through to the production well.

Figure 11: Unmineable Coal Seams

Coal Bed MethaneCO2can also be used to recover gas from unmineable coal seams. CO2along with nitrogen is injected into the coal seam.The methane and nitrogen are produced and separated. The nitrogen is re-injected into the seam while the methane is treatedand sold. This process is currently being tested in the San Juan Basin in New Mexico18. Under this pilot, 35,000 tons of CO2are being injected.

As seen in figure 1119, numerous unmineable coal seams are located in the states of Utah, Wyoming, and Colorado nearthe oil shale deposits of the Green River Basin. The National Energy Technology Laboratory has recently estimated that thestorage capacity of the coal seams in these three states ranges between 21,283 and 22,142 million tons of CO2

20.

Gas StorageA further option for the CO2produced during oil shale development is to use it to help with natural gas storage. Gas storagereservoirs are used to provide support for seasonally driven natural gas demand. The gas would be injected during times oflow demand and then produced during times of high demand. As the gas storage reservoirs are produced using the pressureof the stored gas, a fraction of the natural gas can not be produced. This base gas can be replaced using injected carbondioxide.

Example Application: Benefits of CO2EORAs previously mentioned, there are approximately 2,100 reservoirs which are candidates for CO 2 EOR. Many of theseprojects candidates are economically viable with current or higher oil prices but are limited by the availability of CO2. Thewidespread capture of industrial CO2for EOR could increase the available volume from 3 Bcf per day from natural sourcesto nearly 70 Bcf per day of natural and industrial sources. By providing a steady source of CO2in the United States, at pricesbetween $1 and $3 per Mcf, more than 200 CO2 EOR projects, with incremental production reaching nearly one millionbarrels a day could be realized. At the same time, these projects would provide the opportunity to sequester nearly 5 Bcf ofCO2each day. Over 25 years, this could result in the production of more than 5.5 billion barrels of oil and the sequestrationof nearly 30 Tcf of CO2(figure 12).

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Figure 12: Benefits of CO2EOR: CO2SequestrationFigure 13 shows the incremental oil production fromadditional CO2projects through 2030. By 2030, over anadditional 800 thousand barrels of daily incrementalproduction could be realized while nearly 5 Bcf of CO2would be sequestered on a daily basis. The CO2sequestered is the difference between the volume of CO2injected and the volume of CO2 produced. The two

hump shape of the CO2curve is due to additional CO2from refineries and power plants becoming available after2021 for additional projects.

0

5

10

15

20

25

30

2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Year

CO2Stored(MMcf/Day)

Costs and Benefits of Carbon Capture andStorageThe total cost of carbon capture and storage includes thecost of capture, the cost of transportation, and the costof either sequestering the CO2or the value which canbe realized through its sale. The sequestration costscan range from $1/ton to $41/ton depending upon thegeologic media. The costs for sequestering CO2 indepleted oil and gas reservoirs and brine aquifersrange from $1 to $10 per ton depending upon thedepth of the reservoir or aquifer. The additionaltechnical difficulties in oceanbed sequestration raisethe costs to between $7 and $41 per ton of CO2sequestered. These costs include transportation of theCO2.

Figure 132: Benefits of CO2EOR: Incremental Production

If the CO2is sold for commercial or industrial use,the value will depend upon the purpose of the CO2.The industrial and food grade CO2 have the highestvalues ranging between $50 and $120 per ton. Thevalues of CO2 for enhanced oil or gas recovery canrange between $36 and $106 dollars per metric ton.The sequestration costs and values are illustrated in figure 14.

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1,000

1,200

2 01 0 2 01 2 2 01 4 2 01 6 2 018 20 20 20 22 20 24 20 26 2 02 8 2 03 0

Year

DailyOilProduction(MBbl)

Total of

4.7 Billion Bbl

Figure 14 also provides the final costs and values of CO 2 inclusive of capture and transportation. The capture costs areapplied to all sequestration and valueoptions. In addition, the food grade andindustrial grade CO2require liquefactionand transportation. The CO2used in theenhanced oil and gas recovery processesas well as the gas storage does notinclude transportation costs. It isassumed that these costs will be paid bythe operator of the reservoir. The finalcost of sequestration including capturecosts between $31 and $55 per ton rangefrom nearly $36 to $106 per ton of CO2.

The range of cost varies based on thesequestration technology applied. Thefood grade CO2 continues to beprofitable for the seller of CO2. Theindustrial grade and other value optionsare profitable and range from value of $4to 41per ton of CO2captured and sold.The costs provided do not reflectmonitoring, liability, or other costsrequired by future regulations.

Figure 14: Costs and Benefits of CO2Capture and Sequestration

Oil & Gas Res.

Brine Aquifer

Ocean Bed

CO2

Sequestration

Gas Bearing

Sandstone

Gas Bearing

Shale

Coal Bed

Methane

Gas Storage

(Base Gas)

EOR

($31-55)

$36-106

($1-10)

($1-10)

($7- 41)

$4-41

($33-75)

($39-106)

Shipping ($1 $10)

Liquefaction ($10)

($1-10)$(25)-78

Value-Options

Environmental

Benefits

Food Grade

$100 - $120

Industrial Grade

$ 50 - 80

Environmental &

Economic Benefits

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ConclusionsThe technologies for capturing CO2are in development and have been estimated to cost between $31 and $55 per ton of CO 2captured, however specific cost are both site and technology specific. This CO2 can be either sequestered in naturalformations or sold for commercial or industrial use providing both environmental and commercial benefits. There issignificant storage capacity for CO2captured from industry. The U.S. possesses not only deep saline aquifers, unmineablecoal seams, and depleted oil and gas reservoirs. It also possesses candidate fields and reservoirs for enhanced oil and gasrecovery. Through the formation of partnerships with enhanced oil and gas production projects or the sale of pure CO2for

industrial and commercial uses, the multiple industries can realize values of up to $78 per ton of CO2captured, transported,and sold.

AcknowledgementsThe authors wish to thank the staff of INTEK Inc. for their efforts in preparing the manuscript and the analysis. The staffincludes Christopher Dean (Sr. Associate), Emily Knaus (Associate) and Jeffrey Stone (Research Assistant).

References1. EIA Historical Data. EIA website http://eia.doe.gov2. The National Petroleum Council. Reference Report #36: Capturing the Gains from Carbon Capture. July 18, 2007. NPC website

www.npc.org3. UOP Amine Guard FS Process, 2000.4. Edited by Metz, Bert, Davidson, Ogunlade, et. al., Special Report on Carbon dioxide Capture and Storage, Intergovernmental

Panel on Climate Change(IPCC), 2005.

5. NATCARB Website, http://www.natcarb.organd INTEK, Inc. 2009.6. INTEK Inc.7. Renewable Fuels Association, http://www.ethanolrfa.org8. INTEK Inc.9. Dooley, J.J, et. al., Carbon Dioxide Capture and Geologic Storage, Global Energy Technology Strategy Program, April 2006.10. Edited by Metz, Bert, Davidson, Ogunlade, et. al., Special Report on Carbon dioxide Capture and Storage, Intergovernmental

Panel on Climate Change (IPCC), 2005.11. The Cost of Carbon Dioxide Capture and Storage in Geological Formations, NETL/DOE, March 2005.12. Dooley, J.J, et. al., Carbon Dioxide Capture and Geologic Storage, Global Energy Technology Strategy Program, April 2006.13. Carbon Sequestration Atlas of the United States and Canada, Second Edition, National Energy Technology Laboratory, 200814. Carbon Sequestration Atlas of the United States and Canada, Second Edition, National Energy Technology Laboratory, 200815. NATCARB Website, http://www.natcarb.org, and INTEK, Inc. 200916. INTEK Inc.17. Oil and Gas Journal, April 21, 200818. Carbon Sequestration Atlas of the United States and Canada, Second Edition, National Energy Technology Laboratory, 2008

19. NATCARB Website, http://www.natcarb.org20. Carbon Sequestration Atlas of the United States and Canada, Second Edition, National Energy Technology Laboratory, 2008
http://eia.doe.gov/http://www.npc.org/http://www.natcarb.org/http://www.ethanolrfa.org/http://www.ethanolrfa.org/http://www.natcarb%2Corg/http://www.natcarb.org/http://www.natcarb.org/http://www.natcarb.org/http://www.natcarb%2Corg/http://www.ethanolrfa.org/http://www.natcarb.org/http://www.npc.org/http://eia.doe.gov/

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