U.S. DOE Carbon Sequestration R&D Program Overview

Office of Fossil Energy

4th IEA International Conference on Clean Coal

Technologies

Dresden, GermanyMay 17-21, 2009

William FernaldSenior Program Manager

Office of Fossil Energy2

Technological Carbon Management Options

ImproveEfficiency

SequesterCarbon

•

Renewables•

Nuclear•

Fuel Switching

•

Demand Side•

Supply Side•

Capture & Store•

Enhance Natural Sinks

Reduce CarbonIntensity

All options needed to:•

Affordably meet energy demand

•

Address environmental objectives

Office of Fossil Energy3

Key Challenges to CCS

•

Cost of CCS

•

Sufficient Storage Capacity

•

Permanence

•

Best Practices

•

Regulatory Framework

•

Permitting

•

Liability

•

Ownership – pore space/CO2

•

Infrastructure

•

Public Acceptance (NIMBY NUMBY and BANANA)

•

Human Capital Resources

Program helping to address challenges – either specific project, participation in working groups, or through Regional Partnerships

BANANA= Build Absolutely Nothing

Anywhere Near Anything

(or Anyone)

Office of Fossil Energy4

InfrastructureRegional Carbon Sequestration

Partnerships & Other Large Projects

Demonstration

Simulation and Risk

Assessment

CO2Use/Reuse

GeologicCarbonStorage

Core R&DPre-

combustion Capture

Commercial Scale Projects

Global Partnerships/

CollaborationsMonitoring Verification and

Accounting

Existing Plants

Post- and Oxy- Combustion Capture

Sequestration Program Structure - FY2009Sequestration Program Structure – FY2009

Office of Fossil Energy5

Carbon Sequestration Program Goals Develop Technology Options for GHG Management That...

•

Deliver technologies & best practices that validate

Carbon Capture and Safe Storage (CCSS):

−

90% CO2 capture

−

99% storage permanence

−

< 10% increase in COE (pre-combustion capture)

−

< 35% increase in COE (post- and oxy-combustion)*

−

+/- 30% storage capacity

*Moved to IEP Program FY08/09 -

This is current estimate –

system studies and analysis being conducted and refined to determine appropriate goals

Office of Fossil Energy6

Sequestration Program Statistics FY2009

Diverse research portfolio~ 80 Active R&D Projects

Fiscal Year

DO

E B

udge

t (M

illio

n $) Strong industry support

~ 39% cost share on projects

Federal Investment to Date~ $481 Million

2009 Budget Breakdown

CO2 Use/Reuse (incl FY08 non-

CO2)3%

Simulation and Risk

Assessment4%

Capture of CO2 (Pre-

Combustion)12%

MVA9%

Geologic Carbon Sequestration

4%

Regional Partnerships

68%

0

2040

6080

100

120140

160

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Sequestration Program Statistics FY 2009

Office of Fossil Energy7

Capture Costs

Office of Fossil Energy8

Effect of CO2 Capture on Cost of Electricity(% Increase Resulting From CO2 Capture)

43

83

32 35

100

20

40

60

80

IGCC PC NGCC

Capture Is Expensive !

Effect of CO2 Capture on Capital Cost(% Increase Resulting From CO2 Capture)

35

87

110

0

20

40

60

80

100

IGCC PC NGCC

•

5–30% parasitic energy loss

•

35–110% increase in capital cost

•

30–80% increase in cost of electricity

2012 Program Goals

Source: Cost and Performance Baseline for Fossil Energy Power Plants study, Volume 1: Bituminous Coal and Natural Gas to Electricity.

Office of Fossil Energy9

Advanced physical solventsAdvanced amine solvents

Post-combustion

Pre-combustion

Oxycombustion

CO2 Compression

Amine solventsPhysical solventsCryogenic oxygen

Cos

t Red

uctio

n B

enef

it

Chemical loopingOTM boilerBiological processes

Ionic liquidsMOFsEnzymatic membranesCAR process

PBI membranes Solid sorbentsMembrane systemsITMs

Technology Advances Are Starting to Emerge

20+ yearsPresent 5+ years 10+ years 15+ years

Time to Commercialization

CO2 Compression

Office of Fossil Energy10

Regulatory

Office of Fossil Energy11

Regulatory Guidelines Emerging

•

EPA taking a lead role−

Guidance released Mar 2007

−

Draft rule summer 2008−

Public comment period closed December 24, 2008

•

EPA & DOE Working Group

•

IOGCC Framework Released May 2005

•

IOGCC Legal & Regulatory Framework Released in September 2007

CO2 Storage: A Legal and Regulatory Guide for States

Carbon Capture and Storage A Regulatory Framework for States

Office of Fossil Energy12

Regional Carbon Sequestration Partnerships

and

Large-Scale Field Tests

Office of Fossil Energy13

DOE’s Sequestration Program Structure

Break-through

Concepts

Monitoring, Mitigation, & Verification

Non-CO2GHG

Mitigation

Storage•

Direct CO2 storage

•

Enhanced natural sinks

Core R&D

Capture of CO2

Carbon SequestrationLeadership

Forum

Carbon Carbon SequestrationSequestrationLeadership Leadership

ForumForum

Integration Projects

IntegrationIntegration ProjectsProjects

7 Regional Partnerships•

Engage regional, state, local governments

•

Determine regional sequestration benefits

•

Baseline region for sources and sinks •

Establish monitoring and verification protocols

•

Address regulatory, environmental, & outreach issues

•

Validate sequestration technology and infrastructure

Infrastructure

Office of Fossil Energy14

Regional Carbon Sequestration Partnerships “Developing the Infrastructure for Wide Scale Deployment”

Office of Fossil Energy15

Growing Participation

160 organization in Phase I

348+ organizations in Phases II and III

Organizations Number Organizations Number

Chemical Companies 5 Land Management/Development Company 2

CO2 Trading Organizations 3 Law Firm 2

Coal Companies 8 Local Agencies 4

Electric Utilities 52 Media/Outreach 6

Engineering and Research Firms 44 National Laboratories 10

Environmental NGOs 11 Oil & Gas Companies 36

Foreign Government Agencies 10 Other State Agencies 51

Forest Products Companies 4 Pipeline Company 1

Governmental Advisory Groups 2 State Geologic Surveys 18

Indian Nations 4 U.S. Federal Agencies 6

Industry Trade Groups 22 University and Academic Institutions 47

Total 348

Office of Fossil Energy16

Regional Carbon Sequestration Partnerships Program Phases

CHARACTERIZATIONPHASE

Characterize all RCSP regions for carbon capture and storage opportunities

VALIDATION PHASE

Validate technologies through field testing at selected geologic and

terrestrial site locations

DEPLOYMENT PHASE

Complete large-volume deployment tests of sequestration technologiesthat will help enable future commercial-scale applications

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172003FISCAL YEAR

CHARACTERIZATIONPHASE

Characterize all RCSP regions for carbon capture and storage opportunities

VALIDATION PHASE

Validate technologies through field testing at selected geologic

and terrestrial site locations

DEVELOPMENT PHASE

Complete large-volume development tests of sequestration technologiesthat will help enable future commercial scale applications-

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172003FISCAL YEAR

Scale of 100 to 10,000 Tons CO2

Scale of 1,000,000 Tons CO2

Office of Fossil Energy17

Summary of Partnerships Phase II Projects

Office of Fossil Energy18

Validation Phase (II) Field Tests

Geologic Tests (20+ injection tests)−

Validating geologic formation capacities−

Validating injectivity−

Monitoring, verification, and accounting technologies (reservoir modeling)

−

Permitting requirements−

Public outreach and perception−

Testing formation seals−

Investigating well bore construction methods

Terrestrial Tests (11 field tests)−

Tree-plantings−

No-till farming−

Wetlands restoration−

Land management: grasslands, grazing lands−

Fire management −

Forest preservation−

Monitoring, mitigation, and verification technologies−

accounting protocols for trading markets (CCX)

Geologic Field Test Sites

Terrestrial Field Test Sites

Office of Fossil Energy19

North American CO2 Storage Potential (Giga Tons)

Sink Type Low HighSaline Formations 3300 13000Unmineable Coal Seams 160 180

Oil and Gas Fields 140 140

Available for download at http://www.netl.doe.gov/technologies/carbon_seq/refshelf/atlasII/atlasII.pdf

U.S. Emissions ~ 6 GT CO2 /yr all sources

Hundreds of Years of Storage Potential

National Atlas Highlights (Phase II) Adequate Storage Projected

U.S. Emissions ~ 6 GT CO2/yr all sources

Saline Formations

Oil and Gas Fields Unmineable Coal Seams

Conservative Resource

Assessment

Office of Fossil Energy20

Development Phase (III) Field Test Program

Office of Fossil Energy21

2008 2010 2012 2014 2016 2018

Stage 1.Site selection and characterization; Permittingand NEPA compliance; Well completion and

testing; Infrastructure development

Stage 2.CO2 procurement and transportation;

Injection operations; Monitoring activities

Stage 3.Site closure; Post-injection monitoring,

Project assessment

RCSP Deployment Phase – 10 years (FY2008-2017)

FISCAL YEAR

20082008 20102010 20122012 20142014 20162016 20182018

Stage 1.Site selection and characterization; Permittingand NEPA compliance; Well completion and

testing; Infrastructure development

Stage 2.CO2 procurement and transportation;

Injection operations; Monitoring activities

Stage 3.Site closure; Post-injection monitoring,

Project assessment

RCSP Development Phase – 10 years (FY2008-2017)

FISCAL YEAR

Development Phase Scaling Up Towards Commercialization

~$500 million DOE - over $200 million cost share

Scale up is required to provide insight into several operational and technical issues that differ from formation to formation

Office of Fossil Energy22

Injection Schedule2009 Injection Scheduled

2010 Injection Scheduled

2011 Injection Scheduled

WESTCARBWESTCARB

Big SkyBig Sky

SWPSWP

PCORPCORMRCSPMRCSP

MGSCMGSC

SECARBSECARB

Large Scale Field Tests (Phase III)Injection Schedule

6 7

9

5Partnership Formation

TypeSaline

Saline

Saline

Saline/Oil Bearing

Oil Bearing

Saline

Saline

Saline

1

1

4

4

5

6

7

9

82 3

8

3

2

Office of Fossil Energy23

Development Phase Outcomes

•

Site characterization requirements•

Storage capacity assessment•

Design criteria−

Injection wells−

Regional monitoring, mitigation, and verification program

−

Site Closure•

Permitting requirements•

Validate reservoir and risk assessment models

•

Science Protocols•

Best practice manuals•

Accelerate public outreach

Site Selection and Detailed

Characterization

Simulationand MMV

Construction

Site Operations

and Monitoring

Closure and MMV

Office of Fossil Energy24

RCSP Looking Forward

•

Next Steps−Conduct additional large scale projects in targeted reservoirs,

such as coal seams and basalts− Increase size of injection projects to simulate emissions from

very large sources (A 500 MW power plant can emit 3-4 MM tons/yr)

−Expand regional drilling efforts to collect cores on saline formations to determine their characteristics

−Conduct additional small scale injections in high priority formations to increase confidence in capacity and injectivity and confirm 'reserves'

Office of Fossil Energy25

Visit Office of Fossil Energy & NETL Websites

http://fossil.energy.gov/ http://www.netl.doe.gov

U.S. DOE Carbon Sequestration R&D Program�OverviewTechnological Carbon Management OptionsKey Challenges to CCS�Carbon Sequestration Program Goals� Develop Technology Options for GHG Management That... Sequestration Program Statistics FY2009Slide Number 7Slide Number 8Technology Advances Are Starting to EmergeSlide Number 10Regulatory Guidelines EmergingSlide Number 12DOE’s Sequestration Program StructureRegional Carbon Sequestration Partnerships�“Developing the Infrastructure for Wide Scale Deployment”Growing ParticipationRegional Carbon Sequestration Partnerships� Program PhasesSummary of �Partnerships Phase II ProjectsValidation Phase (II) Field TestsNational Atlas Highlights (Phase II) �Adequate Storage Projected� U.S. Emissions ~ 6 GT CO2/yr all sourcesDevelopment Phase (III) Field Test ProgramDevelopment Phase�Scaling Up Towards CommercializationSlide Number 22Development Phase�OutcomesRCSP Looking ForwardSlide Number 25