Building a low emissions t
Enabling industrial scale emission abatement Dr Matthias Raab Chief Executive Officer
We do research and commercially relevant demonstrations in CCUS applications. We build and operate first of a kind plant and equipment. We develop industry led technology options to accelerate commercial deployment. We own and operate the Otway International Test Centre in South-West Victoria, Australia.
Trained over 60 PhDs Published more than 400 peer reviewed journal papers Between 40 – 180 researchers participating in our research program at any one time ‘CO2CRC is a very successful model for organising a broad group of research providers and industry to accelerate the development of CCS. It has been particularly effective at establishing unique world-class research sites such as the Otway Project. The UKCCSRC values international partnerships, such as the links it has with CO2CRC.’ Prof Jon Gibbins Director, UKCCSRC Carbon capture and geological carbon storage (CCS) is Proven – Safe – Reliable - Necessary Carbon abatement or climate benefits are Immediate – Permanent – Large Scale 4
Cost of emitting CO₂ vs cost of CCS Relative costs Modified after Rystad Energy and analysis Today 5
Example facilities emitting CO,
Estimated cost range for captured CO, Ammonia Natural gas processing Petro chemical Ethanol <10% Emitters of concentrated CO, streams exist across 100+ potential sites ~$15-50/ton Lower-cost due to direct compression of CO, stream Petroleum refining Steel production Cement Coal and gas to power
~90%
Largest emitters, incl. electricity generation facilities across 1000+ potential sites ~$45-200+/ton Additional step to separate CO, from stream prior to compression Source: OGCI  and US Dept. of Energy (DOE) 6
Invest into Research & Development in CCS CCS is an essential technology in Australia's Low Emissions Technology Statement Incentives to accelerate CCS projects Principles for an Australian CCS Policy Framework Specific proposals for Australian CCS Tax Credits Australian Carbon Credit Units (ACCUs) Project Finance Hard to Reduce Risks (Government) CCS policy CarbonNet © CO2CRC CCS projects 2021 ■ Capture – operational Capture – completed ● CO, EOR – feasibility CCS – feasibility Storage – operational ■ ✦ Storage hub – feasibility O  Major emission nodes ✦  Offshore CCS permits 🎁 Basins with potential for CO 2 storage CCS Flagship project
in Australia 2023 1 Operational Project 1 Final Investment Decision taken 14 Projects in feasibility Legend O Operational ● Storage hub O CO2-EOR O ccs □ Geological Basins Offshore CCS permits Building a low emissions future Gentre Capacity: Demonstration facility Owner: CO2CRC Status: Commercial demonstrations The SEA CCS Hub Capacity: 2MT CO-/yr Owner: ExconMobil Status: Feasibility
•  CCS-CCUS is in a great place in Australia and the future looks bright, with a large number of new and substantial projects in the early to mature phases of evaluation –  Driven by the wide acknowledgement within industry about the need to decarbonize and more recently by the 43% reduction by 2030 and by the net-zero 2050 targets –  Most of the projects in the North West Shelf and Timor Sea are driven by LNG (a high-value product) –  Projects in the South West of WA are mostly driven by the needs of the onshore heavy industrial emitters –  Projects in southeastern Australia are a hybrid (SEA CCS at Bream and CarbonNet) –  Substantial projects onshore in eastern Australia (Moomba CCS; Moonie CCUS etc, also hybrids) • The next 5-15 years will probably represent the major “project roll-out” phase for CCS-CCUS, with a growing number of large projects coming on-stream •   But nothing is guaranteed, and major speed humps exist 10
•  The short answer is lots, including the following: –  The regulatory framework is a genuine mixed bag 

   Varies state by state, and some states have no framework as yet; South Australia is the best The Federal framework is comprehensive but is over 15 years old (when Windows XP reigned) and is not particularly fit for purpose contains lots of issues and inconsistencies which can produce genuinely perverse outcomes (examples to follow) –  There are glaring omissions concerning ACCU credits (e.g., for CO2-EOR; Direct Air Capture or DAC), which are counter-intuitive and encourage higher emissions and poorer economic outcomes in some geologic settings –  The regulators know all about petroleum but not necessarily CCS-CCUS Some “like DAC but not CCS” (which suggests that tag and release is the goal) and so education is critical – The science supporting CCS (e.g., monitoring and verification) is moving fast and is not reflected in the regulations (e.g., “old school” emphasis on 4D seismic for plume monitoring etc.) 11
CO2CRC's Otway International Test Centre enables field scale research and development of CCUS technologies for commercial deployment. Building a low emissions future 12
Key Success Factors At scale investment - Long term Government and Industry funding Focused on accelerating Australia's transition to a low emissions future Industry led Research Well-established collaboration between universities and industry, nationally and internationally Globally unique test centre to accelerate development and commercial deployment of technologies ● Deep M&V wells ■ Shallow M&V wells ■ Existing wells — Gathering line – Fault ● Stationary orbital vibrator 13

Otway Stage 1 (Concept): 2004 – 2009
Demonstrated safe transport, injection and storage of CO, into a depleted gas reservoir
Otway Stage 2 (Risk Reduction): 2009 – 2019
Demonstrate safe injection of CO 2 into a saline formation Stage 2B – Near well residual & solution trapping characterisation > Stage 2C – Minimum detection, 4D M&V & Plume stabilisation
Otway Shallow CO, Migration
> Improve capability to predict the role of faults in controlling CO, fluid flow in the near surface; > Improve near surface monitoring capabilities
Otway Stage 3: 2012 – 2022
> Develop an “on-demand”, sub-surface and permanent monitoring concept > Two primary technologies -  sub-surface seismic data acquisition and pressure tomography (4 new monitoring wells) > Field test the various techniques to demonstrate lower cost CO,  monitoring with minimal surface and environmental impact Demonstrate regulatory and community acceptance of the techniques at the Otway Site ■ Shallow M&V wells ■ Existing wells — Gathering line - Fault ● Stationary orbital vibrator 14
02CrC Building a low emissions future 15
Building a low emissions future 16 DERISKING THE SUORAGE tor CO, storage globally. Their utili be necessary to ensure we ren COP21 20 target ROINKOEORIWALLONKSOEOR
Real CO, plume edge Demonstrate safe saline formation storage Characterise saline formation processes Main injection phase objectives: . Detect injected CO, and establish minimum detection threshold . Observe gas plume development in TL . Verify stabilisation of the injected plume
Trench
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Apr 2017 Evaluate Phase Nov 2017 Dec 2017 - Jun 2019 > Define Phase Execute Phase Wells Drilled and Completed Surface Infrastructure Works Dec 2019 - Mar 2020 Mar 2020 - Mar 2020 ● System Testing and Commissioning Mar 2020 - Apr 2020 ● Pre-Injection Baseline Survey - Seismic Apr 2020 - Apr 2020 ● Pre-Injection Baseline Survey - PTI ) Baseline Data Processing Apr 2020 - Jun 2020 🎁 Operate Phase Jun 2020 - Jun 2022 Dec 2020 - Apr 2021 / ) Injection and monitoring
Today Building a low emissions future 20
•   Paaratte formation is know to “up-dip” from West to East •  Prior movement of the Stage 2C Plume •  Known impermeable fault south of CRC-3 •  Various dynamic model probability realisations •  Desire to keep monitoring wells out of the plume 21
Project Technical Objective: to be able to observe the growing gas plume in the reservoir using the innovative technologies of Downhole Seismic and Pressure Tomography • Wells drilled directionally from 2 x wellpads • Positioned specifically to monitor the injection . One Vertical Injection Well – CRC-3 – Tubing and packer completion – 1,650m depth – 15,000t injection CO2 supercritical condition •   4 directional monitoring wells – CRC 4,5,6,7 –   2 close monitors; 2 “far field” monitors –   CO2 compliant metals and cement –   Water injection capable
•  June to October 2019, 4 wells drilled for monitoring and 1 appraisal well completed for injection •  CRC-3 Injection well was completed for full CO, contact with a tubing and packer, single zone perforated completion; •  CRC-4 to 7 Monitoring wells (see image) were deviated wells; monobore, single zone perforated completions with suspended instrumentation; designed for CO, contact but are operationally water injector wells 23

Injection Well
•   2 x Engineered TEF* cemented outside of casing and looped at TD •   1 x Engineered TEF clamped to tubing and looped at TD •  P&T gauges at reservoir depth (positioned above and below injection zone) •   Wellhead P&T • Injection line P&T
Monitoring Well
•  2 x Engineered TEF* cemented outside of casing and looped at TD ● P&T gauge at reservoir depth suspended from wellhead (TEC clamped to suspension cable) CRC-4: 1 x SM/MM TEF suspended from wellhead (clamped to suspension cable) Wellhead Pressure *TEF: Tubing Encapsulated Fibre – a multi-core hybrid fibre combination of EF, SM and MMF housed in an Inconel sheath 24
Project Technical Objective: to be able to observe the growing gas plume in the reservoir using the innovative technologies of Downhole Seismic and Pressure Tomography •   Buttress Gas Plant located 2km north of the site – Source of CO2 for the experiment • Gathering pipeline from Buttress Plant through to CRC-3 (~3.5km total length) •  9 permanent vibrators (replacing vibroseis trucks) (7 new) •   Legacy water injection facility with new water distribution system
1. Gas Injection Operation – provide a plume for testing of innovative monitoring techniques –  Commenced on 2nd December 2021 and utilised Buttress for injection to well CRC-3 –  Injection of ~15,000 tonnes to a saline aquifer at ~140 tonnes per day –  3 intervals: 4,400 tonnes; 8,100 tonnes; 2,550 tonnes = total injection of 15,050 tonnes –  Paused injection used to perform monitoring activities 2. Seismic Surveys – Benchmarking of the plume using accepted techniques –  Baseline (pre-injection survey) M6 in March and April 2020 –  Monitor surveys at 4,4000 tonnes (Jan21, M7) and 12,500 tonnes (Mar21, M8) 3. Pressure Monitoring Activities - Testing Stage 3 Technologies and Techniques 4. Seismic Monitoring Activities - Testing Stage 3 Technologies and Techniques 26
•  To use permanent sources and in well fibre optics to provide multiple transects throughout the injection area and monitor plume evolution. •  The system was configured to provide a new image of the site every 2 days. •  The system commenced data acquisition in Jun 2020. •  It first detected the gas plume on the 2nd day of injection with ~300 tonnes injected. 27

Learnings and Challenges
•  The system operated with limited operator contact as required •  It first detected the gas plume on the 2 nd day of injection with ~300 tonnes injected •  Processing the seismic data onsite and reducing data volume (~1GB/day) for offsite data transfer and final processing was critical • Significant learning were taken from how the fibre optics performed during the operations – particularly in conjunction with water injections •  Passive seismic monitoring has proven to be a useful complement to monitor the injection and unlocks new possibility for using natural seismicity for plume identification 28 50 250 100　150　200
RMS Amplitude CD2CRC Vintage: 139.00000 Volume: 1.16454626012731 Building a low emissions future 29
. CO2CRC has trialled cost effective monitoring technologies as part of Otway Stage 3 project. •   Both probabilistic and risk based methodologies were deployed to perform techno economic analysis • The analysis shows the CO2CRC novel technologies can save up to 85% of the monitoring cost Using existing wells as monitoring wells 3D seismic is required every 5 years A baseline 3D seismic does already exist . New monitoring wells are required to be drilled . 3D seismic is required every 2 years . A baseline 3D seismic needs to be acquired 30
through international collaboration with Japan’s with Research Institute of Innovative Technology for the Earth (RITE) Improve sweep efficiency and enhance the storage capacity. • The main advantages of MB CO, injection are: – Higher dissolution into the oil/water –  better penetration into smaller pore spaces which allow more storage of CO, in same reservoirs –  reduce preferential CO, flow into high permeable streaks which delays CO, breakthrough time –  Lower injection pressure at the bottomhole helping to achieve higher gas injection rate in the same injection well
Figure from RITE's presentation
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The next major international research program at The Otway International Test Centre in Australia 32

Otway 4 Program Goal
Demonstrate commercially-focused reservoir management technologies to improve injection, storage, and monitoring efficiencies, and thereby materially lower project costs.
Otway 4 Program Outcomes
- Provide a minimum 20% increase in CO 2 storage efficiency for commercial storage. l Unlock poorer quality storage systems' capacity for commercial CO, storage. – Improved modelling workflow, with sufficient predictive capacity to support performance-based closure. Storage ‘performance’ monitoring which is fit-for-purpose and low cost. l A suite of technologies and workflows that can be selected to create bespoke solutions which optimise the use - of CO, storage capacity while minimising capital and operating costs. 33

Otway Stage 4: 2020 – 2026
❖ Demonstrate commercially-focused reservoir management technologies to improve injection, storage, and monitoring efficiencies, and thereby materially lower project costs.
Otway Shallow CO, Migration (Injection) 2022 - 2025
❖ Distributed Strain Sensing and Reverse VSP trials ❖ Assessment of capability to predict the role of faults in controlling CO, fluid flow in the near surface
Otway Deep Projects (Optimisation): 2020 – 2027
� Improved modelling workflow, with sufficient predictive capacity to support performance-based closure. ❖ Demonstrate a suite of technologies and workflows that optimise CO, storage usage while minimising capital and operating costs. � Develop storage 'performance' monitoring which is fit-for-purpose and low cost.
Underground Hydrogen Storage Demonstration: 2021 – 2028
❖ Field scale demonstration of underground hydrogen storage in porous reservoirs to provide a platform for technology development. Legend ■ Injection well ● Deep M&V wells ■ Shallow M&V wells ■ Existing wells — Gathering line - Fault ● Stationary orbital vibrator 34 Nuancing the energy transition with CO 2 -EOR 35
CO, EOR potential in Key Australian basins
The ranking above is based on subsurface and infrastructure properties and recoverable oil and associated CO2 storage is not included Ranking of Australian basins for CO, EOR 36
Key 15 million tonnes CO 。 Reservoirs o Onshore gas pipeline Onshore oil pipeline Gas plant Power station Li © CO2CRC
Key 25 million barrels Reservoirs Onshore gas pipeline Onshore oil pipeline Gas plant Power station 120 million metric tons of CO₂ could be stored in the Cooper- Eromanga and the Bowen-Surat Basins, and an additional 250 million barrels of crude oil could be technically recovered through applying CO₂- EOR. © CO2CRC
or The reality challenge Technology, policy, London Protocol, economics and legislation 39 CD2CrC Building a low emissions future CCUS Projects in Australia 2022 1 Operational Project 1 taken 14 Projects in feasibility Legend O Operational O CO2-EOR O ccs Karratha CCS Project Capscity: TBA Owners: Woodside, BHP, BP, Chevron Status: Feasibility Shell, MIMI Owners: Mitsui/Wesfarmers & JOGMEC Status: Feasibility South West Hub Capacity: 800,000 T CO, /year Owner: Western Australian Government Status: Research phase Bayu Undan CCS Project Capacity: 10MT CO-/year Owners: Santos, Timor Leste, Inpex, Eni, SK E&S and Tckyo Timor Resources Status: FEED Geovault Camaryon Basin CTSCo Project Capacity: 110,000 T CO Owner: Glencore Status: FID yet to be take Awaring environmental Moonie CCUS Project apacity: 10MT CO-/yea Owner: Bridgeport Energy Status: Early development NSW CO2 SAR Capacity: TBA Owner: Ceal Innovation NSW Status: Assess Moomba CCS Project Capacity: 1.7MT CO-/year Owners: Santos, Beach Energy Status: FID taken The CarbonNet Project Capacity: 5MT CO-/yr Owner: DJPR Status: Pre-FEED CO2CRC Otway International Test Gentre Capacity: Demonstration facility Owner: CO2CRC Status: Commercial demonstrations The SEA CCS Hub Capacity: 2MT CO-/yr Owner: ExconMobil Status: Feasibility ● Storage hub Offshore CCS permits □ Geological Basins CQ2CRC Building a low emissions future
RITE and CO2CRC signed an MOU in June 2021 to collaborate and accelerate CCUS technology advancements. In detail: •  Australia and Japan have ambitious 2030 emission reduction targets; CCUS is a key technology •  To trial RITE's microbubble CO₂ injection for both CCS and CO2 EOR, •  To trial fibre optic sensing for near surface CO2 leakage monitoring, •  To trial pressure measurement through fibre optic sensing, •  To develop Geological Modelling Techniques for Geological CO, Storage and to propose those projects for funding to the respective governments. 42
KEXIM reported to be reconsidering $500m loan to SK E&S project if emissions not cut . Barossa gas export project could lose $506 million of South Korean government funding unless the emissions-heavy project embraces carbon capture and storage or it buys millions of tonnes of carbon offsets. . If no carbon reduction action is taken, the Export-Import Bank of Korea will consider it a breach of contract and take action to recover the $US330 million it loaned SK, which owns 37.5 per cent of Barossa, according to a response from the bank to a question from a South Korean parliamentary representative.
Source: https://www.smh.com.au/business/companies/korean-funding-of-500m-for-santos-barossa-threatened-if-emissions-not-cut-20220928-p5blob.html

•   There are several new gas developments/expansions in Northern Australia which are looking to utilise offshore CCS in order to be consistent with commitments to meet net zero emission goals in Australia and in Japan. • This is the future for new gas/LNG and for blue hydrogen in the Asia Pacific region. • This would be a world-first, CCS and Clean Energy Hub based around Darwin. •  It would provide clean energy to the Republic of Korea. • It would unlock billions of dollars of investment for Northern Australia and critically, provide a significant long-term revenue stream for Timor Leste to supplement its rapidly declining petroleum revenue. • Critically, the Bayu Undan CCS Project will also act as the cornerstone of a CCS infrastructure and skills hub that will facilitate the development of many other gas fields in northern Australia and the Timor Sea
02CrC Building a low emissions future
•  Estimated total storage capacity of more than 250 Mt of CO, • Estimated injection rate of more than 10 MtCO, pa •  Existing wells, platforms and pipelines for potential CCS use •  Based on production data, the Bayu Undan reservoir has a proven seal and high injectivity •  CO2 from the Barossa field could be the foundation customer with 2MtCO,+ pa, enabling –  CO2 from other Australian assets, such as Barossa and Ichtys via new pipelines, and –  Transboundary CCS via ships e.g. from Japan
• Transboundary shipment of CO, is currently banned under Australian domestic legislation (Sea Dumping Act), in line with the original provisions of the London Protocol. • In 2009, the Contracting Parties to the Protocol agreed to an amendment to Article 6 to provide for transboundary shipment, recognising the essential role international CCS projects can play in meeting global climate objectives. • Australia supported the amendment but has yet to formally ratify the change and enact its provisions through modification of its domestic legislation. • The legislative amendments to the Sea Dumping Act are drafted, and they are waiting on the authority to introduce it into Parliament in 2022. • However, before they can take a final investment decision, it is imperative that Australia ratifies the 2009 amendment to the London Protocol and align/amend its domestic legislation to allow for the transboundary shipment of CO₂. Australia is an innovation powerhouse to trial novel technologies 48
Storing large volumes of hydrogen becomes increasingly important. Large fluctuations between supply and demand need balancing. Large scale underground hydrogen storage could provide an attractive option. Australia can move quickly to a field scale demonstration of the technology. A successful trial could accelerate the uptake of this technology in Australia. 49
Overarching Objective: Field testing and demonstration of Direct Air Capture (DAC) to support of DAC development and reduction of capture cost.  Potentially FOAK - DACCS (end to end) demonstration in OITC.
Key Value Propositions & Benefits:
•The OITC infrastructure has been & ideal for DACCS pilot testing and demonstrating. •Highly instrumented subsurface facilities; CO, injection can commence within 6-9 months of project start-up. •Potentially 1st of its kind DAC-CCS (end to end) pilot test for CO2 storage in a porous reservoir. •Full operational support tailored to customer requirements. •OITC can support multiple DAC units with fully flexible operation, can be tailored for either short or long-term operation. •Potential to support continuous DAC-CCU R&D in the future to increase carbon utilisation besides sequestration. •Optimising DAC and CO₂ sequestration operation to reduce the cost of DACCS 50
•  Without CCS-CCUS, it will be impossible for the world to reach net-zero by 2050 and indeed, impossible for Australia to reach a 43% reduction by 2030; we must choose Glory Over Death! •  GHG storage is moving from the R&D (which has a low regulatory impact) to the major roll-out phase for multiple projects, wherein both the Australian GHG regulatory system and its regulators are going to be stress-tested within a charged political and social environment •  Our science is advancing rapidly (especially in MMV) but the regulations are static and so there is a potential disconnect between regulatory expectations and the industry’s technical capacity and capability, now and into the future, which will require a high level of communication between all of the interested parties (in effect, mutual, continuous education and feedback) 51 CO2CRC acknowledges and appreciates the strong relationships it has with industry, community, government, research organisations, and agencies in Australia and around the world Technology for the Earth Curtin University THE UNIVERSITY OF WESTERN AUSTRALIA Achieve International Excellence THE UNIVERSITY of EDINBURGH G F Z King Abdullah University of Science and Technology inford University
Building a low emissions future © CO2CRC Limited 2022