National CCS Conference 2014 CTSCo’s Surat Basin Integrated CCS Project An update Alan du Mée 1 CTSCo’s journey - 2009, 2011, 2014 Navigating evolving project delivery risks 10% 2009 2011 2014 400MW IGCC + CCS CCS demo 2 stages CCS demo single stage 10% Technical Technical Technical Approvals Approvals Approvals 80% 70% 30% 40% Stakeholder and community 30% Stakeholder and community 10% 20% Stakeholder and community • IGCC with CCS 2.5Mt pa 400MW • • • First of a kind technology when with CO2 capture Standalone CCS demonstration project, 200ktpa CCS in two stages Standalone CCS demonstration project at 120ktpa CCS scale in one single stage (30MW equiv) • 1 million tonnes CO2 per annum pathway goal driven by industrial scale requirement • Industrially Scalable PCC modules based on proven deployed technologies • Demonstrable pathway to industrial scale storage by 2020 • Demonstrable pathway to industrial scale storage by 2023/24 • $624M project • $255M project • At $15M Feasibility Study Stage • 2.5 million tonnes CO2 per annum driven by IGCC plant outcomes • Industrial scale storage target by 2015 • $5.9 billion project 2 Project Objective the same Much more focused trial extended to 2023 • Deliver an integrated CCS Project incorporating carbon capture, transport and sequestration in the Surat Basin to: a) Establish a basis for permitting of long-term CO2 storage in Queensland b) Contribute to securing the option of a large-scale Surat Basin Carbon Capture and Storage (CCS) • ACALET Industry Funded Project (current Stage) • Proponent – CTSCo (100% Glencore) 3 Unique Project Deployment Features Low technical risk, manageable permit and social licence risks 1. CTSCo’s EPQ 7 GHG tenement’s injection site geology has been confirmed as very suitable for CO2 storage during pre-feasibility study stage – Surat Basin is well explored oil and gas region with more than 1000 non-CSG wells 2. PCC plant technology much advanced since 2009 − 3. Glencore’s contributions to the project lowers cost and Social Licence risks − 4. suppliers will now warrant industrially scalable modules injection site, community infrastructure and governance systems EPQ 7’s CO2 estimated storage capacity is large enough to take Kogan and Millmerran power stations’ emissions for more than 20 years 4 Low technical risk program to 2023 Carefully staged $255 program • $24.5m pre-feasibility study successfully completed Injection at 60ktpa Feasibility Study FEED Preparation for injection phase $25M $15M 2014/15 2015/16 $10M 2016/17 2017/18 Test Injection Construction PCC & field kit build $200M Injection & MMV phase $30M $200M 2018/19 2019/20 GHG storage permit CO2 injection can start at 120ktpa $30M 2020/21 2021/22 2022/23 2023/24 2024/25 This Stage approval now 5 Surat Basin has significant potential However, part of the Great Artesian Basin Source: Queensland Government GHG Storage Atlas 2009 • Almost 3 billion tonnes of CO2 theoretical storage potential • Precipice Sandstone accounts for 1.3 billion tonnes of theoretical storage potential • Identified as a key geostorage area under the 2009 National Carbon Storage Taskforce report and the Qld Govt GHG Storage Atlas • Coal fired power stations closer to Surat Basin 6 CTSCo’s EPQ 7 GHG Tenement awarded January 2012 Three coal fired power stations within 250 kms 7 Glencore owned site minimises risks Surat Basin aquifers Glencore owned 9 sq kms site – no overlapping CSG rights >200kt Precipice Sandstone is at 1200 metres at testing site 8 EPQ 7 CO2 storage tenement and test site • More than 1,000 non-CSG wells, >10,000 CSG wells in Surat Basin, so well known geological properties • EPQ7 > 100Mt storage; adequate for up to 30 yr storage demonstration • 200 kt CO2 after 40 years modelled below Wandoan township Approx test site CTSCo’s EPQ 7 GHG tenement area – 35kms wide by 75 kms long 9 Extracting geological trends from Surat Basin outcrops – quite unique Precipice Sandstone outcrops to surface 50 kms away 10 CTSCo well confirmed known properties Surat Basin homogeneity is high • • • • West Wandoan 1 core samples 500+ meters of core extracted Testing confirms properties Now capped and abandoned 11 Core analysis confirms reservoir properties Test injection site a low geological risk location • CTSCo site porosities ranged from 21-25% • CTSCo site permeabilities from 1,000 to 14,000mD • Evergreen Formation seal is about 200 metres thick with useful transition Figures: Surat Basin Precipice Sandstone porosity and permeability dataset and CTSCo pre-feas well positioning to existing well data Note: WIP draft - log scale not linear scale 12 Using existing PCC plant design minimises risk 120ktpa CO2 capture - a Huaneng example Several source and host choices 13 Surat Basin stakeholder environment is complex and sensitive • Lots of learning from regional CSG experiences • Consultation fatigue is evident – many regional projects – Resource legislation still changing • Active well organised lobby groups – Coal4breakfast – Lock the Gate etc. • Concern over regional water resource contamination by resource projects • • Surat Basin part of Great Artesian Basin Opportunity to differentiate this grant funded demonstration project from commercial resource developments 14 CCS engagement learnings helps • Otway Project, Victoria, Australia • Collie Hub Project, Western Australia • Barendrecht, Holland • Vattenfall Project, Germany • ADM’s Decatur, Illinois, USA • Longannet, Scotland • Hontomin Project, Spain • and more…. 15 CO2 injection permitting requirements in Qld CO2 needs to be test injected to get long term injection permit • CO2 test injection is an “Authorised Activity” in Queensland requiring a DEHP Environmental Authority (EA) – Current EA limited to drilling of wells, acquiring of seismic, constructing access roads etc • Issues raised by DEHP: 1. Environmental Values – baselining, water impacts, monitoring strategy etc • Need really good environmental baselining for air, water and soil from a credible provider 2. Risks/Impacts/Mitigation 3. Comprehensive modelling 4. Post-Trial Intentions 5. Financial Assurance for the test injection phase Commercial in Confidence 16 Position summary Low risk geology, PCC technology, and Social License position 1. Known geology for trial injection of CO2 at 60 ktpa for three years to permit the option of 120ktpa injection for many years after that 2. Deploys currently available, industrially scalable modular PCC technology to minimise technology risk – several choices available 3. Glencore hosted project on Glencore land with no overlapping CSG rights delivers lower social licence risk 4. Decision making taking much longer than expected – GHG Tenement award took 19 months instead of planned 6 weeks – Elapsed time between project stages can be 12 months or more 5. Industry CCS messaging would be a great help 17 Project support and collaboration • CTSCo gratefully acknowledges pre-feasibility funding support from: Carbon • Project support also acknowledged from • The views expressed in this presentation are not necessarily the views of these parties. 18
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