October2008UpdateonU.S.DOE’sSequestrationProgramScottM.SmouseSeniorInternationalManager/Strategic CenterforCoalscott.smouse@netl.doe.gov412­386­5725APECEGCFECleanFossilEnergyTechnicalandPolicySeminarIncheon,Korea12­14October2009MostlyCO2CO2MostlyH2MixedGasStreamandothergasesCarbonSequestrationProgramGoalsDevelopTechnologyOptionsThat...•DelivertechnologiesandbestpracticesthatprovideCarbonCaptureandSafeStorage(CCSS)with:–90%CO2captureatsource–99%storagepermanence–<10%increaseinCOE•Pre­combustioncapture(IGCC)–<35%increaseinCOE•Post­combustioncapture•Oxy­combustion2KeyChallengestoCarbonCaptureandStorageTechnicalIssues•CaptureTechnology–ExistingPlants–NewPlants (PC)–IGCC•CostofCCS•SufficientStorageCapacity•Permanence•BestPractices–StorageSiteCharacterization–Monitoring/Verification–SiteClosure–Etc.Legal/SocialIssues•RegulatoryFramework–Permitting–TreatmentofCO2•Infrastructure•HumanCapital•LegalFramework–Liability–Ownership•porespace•CO2•PublicAcceptance(NIMBY�NUMBY)Projectshelpingtoaddressbothcategoriesofissues3U.S.DEPARTMENT OF ENERGY•OFFICE OF FOSSIL ENERGYNATIONAL ENERGY TECHNOLOGY LABORATORYCARBONSEQUESTRATIONPROGRAMCore R&DCaptureGeologic StorageMonitoring, Verification,and  Accounting (MVA)Simulation andRisk AssessmentCO2Use/ReuseBenefits•Reduced cost of CCS•Tool development for riskassessment and mitigation•Accuracy/monitoring quantified•Capacity validation•Indirect storageTechnologySolutionsLessonsLearnedInfrastructureRegional Carbon SequestrationPartnershipsCharacterizationValidationDevelopmentOther Large­Scale ProjectsBenefits•Human capital•Stakeholder networking•Regulatory policy development•Visualization knowledge center•Best practices•Public outreach and educationTechnologySolutionsLessonsLearnedGlobalCollaborationsNorth America EnergyWorking GroupCarbon SequestrationLeadership ForumInternationalDemonstration ProjectsAsian­PacificPartnership (APP)Benefits•Knowledge building•Project development•Collaborative internationalknowledge•Capacity/model validation•CCS commercial deploymentDemonstration and CommercializationCarbon Capture and Sequestration(CCS)41997 1998 199 9 2000 2001 200 2 2003 2004 200 5 2006 2007 2008 2009 2010 ReqSequestrationProgramStatisticsFY2009Strongindustrysupport

DOE Budget (Million $)020406080100120140160180~39%costshareonprojectsFederalinvestmenttodate~$631millionBudgetBreakdownSimulationandMVA10%FiscalYearGeologicCarbonSequestration5%Diverseresearchportfolio~80ActiveR&DProjects14%RegionalPartnerships60%CO2CaptureCO2Use/Reuse5%RiskAssessment6%5Key:Risk AssessmentMVA­­­CoreR&DFocusAreasandSupportingResearchPathwaysCapturePrecombustion(PreCombustion)Capture�MembraneProcesses�Membrane�Solvent­BasedProcesses��Sorbent­BasedProcessesSolvent­Based�ImprovedWaterGasShift�ReactorSorbent­Based�Coal­to­LiquidsTechnology�NovelConcepts�NovelConceptsGeologicCarbonGeologicCarbonMVAStorageStorage�ImprovedFundamental�ImprovedFundamental�UnderstandingUnderstandingRemoteSensing�TechnologyDevelopment�Atmosphericand�TechnologyDevelopment�Near­SurfaceMonitoring�WellboreMonitoring�SubsurfaceMonitoring�AccountingProtocolsSimulationandCO2Use/ReuseRiskAssessmentApproachesApproaches�ConversionofCO2�ConversionofCO2�MathematicalModels��Non­GeologicCO StorageDevelopment2Non­GeologicCO2�IndirectStorageStorageandVerification�BeneficialUseofProducedWater�IndirectStorage�ImprovedRisk�BreakthroughConcepts�BeneficialUseofAssessmentProducedWaterProtocols�BreakthroughConceptsFocusArea�ResearchPathway6RegionalCarbonSequestrationPartnerships•Engageregional,state,andlocalgovernments•Determineregionalsequestrationbenefits•Baselineregionforsourcesandsinks•Establishmonitoringandverificationprotocols•Addressregulatory,environmental,andoutreachissues•Validatesequestrationtechnologyandinfrastructure•7RegionalPartnerships•43States,4CanadianProvinces•350+distinctorganizationsDevelopingtheInfrastructureforWide­ScaleDeployment7CHARACTERIZATIONPHASECharacterize all RCSPregions for carbon captureand storage opportunitiesVALIDATION PHASEValidate technologies throughfield testing at selected geologic andterrestrial site locationsDEPLOYMENT PHASEComplete largevolume deployment tests of sequestration technologiesthat will help enable future commercialscale applicationsRegionalCarbonSequestrationPartnershipsProgramPhasesFISCALYEAR­­2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172003CHARACTERIZATIONPHASECharacterizeallRCSPregionsforcarboncaptureandstorageopportunitiesVALIDATIONPHASEValidatetechnologiesthroughfieldtestingatselectedgeologicandterrestrialsitelocationsDEVELOPMENTPHASECompletelarge­volumedevelopmenttestsofsequestrationtechnologiesthatwillhelpenablefuturecommercialscaleapplications­2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172003 200420052006200720082009201020112012201320142015201620172003Scaleof100to10,000TonsCO2Scaleof1MTonsCO2$16MDOE+$5MCS$120MDOE+$43MCS~$500MDOE­ over$200Mcost­share8U.S. Emissions ~ 6 GT CO2/yr all sourcesUpdatedNationalAtlasHighlights(AtlasII)AdequateStorageProjectedfortheNorthAmericaAnnualPointSourceCO2Emissions ~3.8GTOilandGasFieldsSalineFormationsUnmineableCoalSeamsNorthAmericanCO2StoragePotential(GigaTons)IncreasesfromConservativeResourceAssessmentSinkTypeLowHighSalineFormations3,30012,600UnmineableCoalSeams160180OilandGasFields140140AtlasIHundredsofYearsofStoragePotentialAvailablefordownloadathttp://www.netl.doe.gov/technologies/carbon_seq/refshelf/atlasII/atlasII.pdf9RCSPPhaseII:ValidationSmall­ScaleGeologicFieldTestsBSCSPBSCSPWESTCARBWESTCARBSWPSWPPCORPCORMGSCMGSCMRCSPMRCSPSECARBSECARB111131920212223168109182717361514InjectionCompleteInjectionOngoing2009Injection2010Injection(ProjectmovedtoPhaseIII)5124Salineformations(3,000to60,000tons)Depletedoilfields(50to500,000tons)CoalSeams(200–18,000tons)Basaltformation(1,000tons)1017DatacurrentasofApril2009RCSPFormationTypeGeologicProvinceBigSkySaline1ColumbiaBasinMGSCOil­bearingSalineCoalseam325674IllinoisBasinMRCSPSaline8109CincinnatiArch,MichiganBasin,AppalachianBasinPCOROil­bearingCoalseam111312KegRiver,Duperow,WillistonBasinSECARBOil­bearingSalineCoalseam1416151817GulfCoast,MississippiSaltBasin,CentralAppalachian,BlackWarriorBasinSWPOil­bearingCoalseam192021ParadoxBasin,AnethField,PermianBasin,SanJuanBasinWESTCARBSaline2223SacramentoValley,ColoradoPlateau10Stage 1.Site selection and characterization; Permittingand NEPA compliance; Well completion andtesting; Infrastructure developmentStage 2.CO2procurement and transportation;Injection operations; Monitoring activitiesStage 3.Site closure; Post injection monitoring,Project assessmentRCSP Deployment Phase  10 years (FY2008 2017)DevelopmentPhaseScalingUpTowardsCommercializationFISCALYEAR200820102012201420162018­STAGE1.Siteselectionandcharacterization;PermittingandNEPAcompliance;Wellcompletionandtesting;InfrastructuredevelopmentSTAGE2.CO2procurementandtransportation;Injectionoperations;MonitoringactivitiesSTAGE3.Siteclosure;Post­injectionmonitoring,ProjectassessmentScaleupisrequiredtoprovideinsightintooperationalandtechnicalissuesthatdifferfromformationtoformation­RCSPDevelopmentPhase–10years+(FY2008­2017+)­11DevelopmentPhaseGoals•Assess–InjectivityandCapacity–StoragePermanence–ArealExtentofPlumeandLeakagePathways•Develop–RiskAssessmentStrategies–BestPracticesforIndustry•EngageinPublicOutreachandEducation•SupportRegulatoryDevelopment12873124659Large­VolumeGeologicFieldTests�Ninelarge­volumetests�Injectionsinitiated2009–2011InjectionWellDrilledInjectionStartedCoreSamplingTakenRCSPPhaseIII:Development2009InjectionScheduled2010InjectionScheduled2011InjectionScheduledPartnershipGeologicProvinceType1BigSkyTriassicNuggetSandstone/MoxaArchSaline2MGSCDeepMt.SimonSandstoneSaline3MRCSPShallowMt.SimonSandstoneSaline4WillistonBasinCarbonatesOilBearing5PCORDevonianAgeCarbonateRockSaline6SECARBLowerTuscaloosaFormationMassiveSandUnitSaline78SWPRegionalJurassic&OlderFormationsSaline9WESTCARBCentralValleySaline13CCSBestPracticeManualsCriticalRequirementForSignificantWide­ScaleDeploymentCapturingLessonsLearnedBestPracticeManualVersion1(PhaseII)Version2(PhaseIII)FinalGuidelines(PostInjection)Monitoring,Verification,andAccounting200920172020SiteCharacterization201020162020SimulationandRiskAssessment201020172020WellConstructionandClosure201020172020RegulatoryCompliance201020162020PublicEducation200920162020TerrestrialSequestrationPractices20102016–PostMVAPhaseIII14RecentProgramFundingOpportunityAnnouncements(FOAs)•Pre­CombustionCarbonCaptureTechnologiesforCoalBasedGasificationPlants–FundingOpportunityAnnouncementDE­PS26­08NT00699–9projectsselectedinJune2009in4majorcategories:(1)high­temperature/high­pressuremembranes(2)high­efficiencysolvents(3)solidsorbents(4)novelconcepts–~$14.4Mtotalawardvalueover3years($3.1Mcost­share)–ProjectawardsbyendofFY09–Techlineathttp://www.netl.doe.gov/publications/press/2009/09036­DOE_Awards_Carbon_Capture_Projects.html15RecentProgramFundingOpportunityAnnouncements(FOAs)•InnovativeandAdvancedTechnologiesandProtocolsforMVA,Simulation,andRiskAssessmentinGeologicFormations–FundingOpportunityAnnouncementDE­FOA00023–Released18February2009;ClosingDate12May2009–19projectsselectedin3majorcategories(1)MVAofCO2sequestrationingeologicformations(2)simulatingbehaviorofgeologicallysequesteredCO2(3)conductingriskassessmentsassociatedwithgeologicCO2sequestrationactivity–~$34.7Mtotalawardvalueover4years($8.1Mcostshare)–AwardsanticipatedinOctober200916AmericanRecoveryandReinvestmentAct(ARRA)FundingforCCS•SecretaryChuannouncedon15May2009,that$2.4billionfromARRAtoexpandandacceleratecommercialdeploymentofCCStechnology–DOEpostedNoticesofIntentsupporting•CleanCoalPowerInitiative­ $800million•IndustrialCCSprojects­ $1.52billion•Geologicsequestrationsitecharacterization­ $50million•Geologicsequestrationtrainingandresearch­ $20million–Techlineathttp://www.fossil.energy.gov/news/techlines/2009/09029­DOE_Announces_Stimulus_Funding.html17AmericanRecoveryandReinvestmentAct(ARRA)FundingforCCS•IndustrialCarbonCaptureandStorageTechnologiesforCoal­BasedGasificationPlants–FundingOpportunityAnnouncementDE­FOA­0000015–12PhaseIprojectsselectedinSeptember2009(~7months)–~$44.1Mtotalawardvalue•$21.6MARRA;$22.5Mcost­share–Winningprojectssubjecttofurthercompetitiveevaluationin2010aftersuccessfulcompletionofPhase1activities–ProjectsthatbestdemonstrateabilitytoaddresstheirmissionneedswillreceiveadditionalARRAfundingfordesign,construction,andoperation–Techlineathttp://www.netl.doe.gov/publications/press/2009/09072­DOE_Announces_Industrial_CCS.html18AmericanRecoveryandReinvestmentAct(ARRA)FundingforCCS•RecentIndustrialCCSProjectsAwards–RamgenPowerSystems,LLCinAugust2009•ScaleupdevicethatusessupersonicshockwavestocompressCO2forcaptureandstorage($20M)•TechLineathttp://www.netl.doe.gov/publications/press/2009/09055­DOE_Announces_Ramgen_Power_Systems.html–ArizonaPublicServiceinSeptember2009•Expandexistingindustrialandinnovativealgae­basedreusecarbonmitigationproject($70.5M)•TechLineathttp://www.netl.doe.gov/publications/press/2009/09064­APS_to_Scale_Up_CCS_Project.html19AmericanRecoveryandReinvestmentAct(ARRA)FundingforCCS•RegionalSequestrationTechnologyTrainingProjects–FundingOpportunityAnnouncementDE­FOA­0000080–7projectsselectedinAugust2009in5activityareas(1)ImplementOrganizedSponsorshipDevelopmentProgram–developmentofself­sustainedlong­termtechnologyprogram,withoutfederalgovernmentsupport(2)ShortCoursesonCCSTechnologies–workwithexpertstoidentifyanddeveloptrainingmaterialsforprofessionals(3)RegionalTraining—OutreachandNetworking–conducttrainingonCCStechnologies(4)PerformRegional/BasinTechnologyTransferServices–transfertechnologywithvariousoutreachmaterialsandcoordinationofregional/basinefforts(5)PlanandManageRecipient’sRegionalProgram–~$8.47Mtotalawardvalueover3years–Techlineathttp://www.netl.doe.gov/publications/press/2009/09062­DOE_Awards_CCS_Training_Projects.html20DOE’sGlobalCCSDemonstrationRoleonFiveContinentsSelectDOEParticipationinInternationalCO2StorageProjectsLocationOperationsU.S.InvolvementReservoirOperator/LeadInt’lRecognitionNorthAmerica,CanadaSaskatchewanWeyburn­Midale1.8MtCO2/yrcommercial20002000­2011oilfieldcarbonateEOREncana,ApacheIEAGHGR&DProgramme,CSLFNorthAmerica,Canada,AlbertaZamaoilfield250,000tonsCO2,90,000tonsH2Sdemo2005­2009oilfieldcarbonateEORApache(Reg.Part.)CSLFNorthAmerica,Canada,BritishColumbiaFortNelson>1MtCO2/yr,1.8Mtacidgas/yrlarge­scaledemo2009­2015salineformationSpectraEnergy(Reg.Part.)CSLFEurope,NorthSea,NorwaySleipner1MtCO2/yrcommercial19962002­2011marinesandstoneStatoilHydroIEAGHGR&DProgramme,CSLF,EuropeanCommissionEurope,Germany,KetzinCO2SINK60,000­90,000tonnesCO2demo20082007­2010salinesandstoneGeoForsch­ungsZentrum,Potsdam(GFZ)CSLF,EuropeanCommission,IEAGHGR&DProgrammeAustralia,VictoriaOtwayBasin100,000tonnesCO2demo20082005­2010gasfieldsandstoneCO2CRCCSLFAfrica,AlgeriaInSalahgas1MtCO2/yrcommercial20042005­2010gasfieldsandstoneBP,Sonatrach,StatoilHydroCSLF,EuropeanCommissionAsia,China,OrdosBasinassessmentphaseCCS2008­TBDOrdosBasinShenhuaCoal21VisitOurWebsitesOfficeofFossilEnergywww.fe.doe.govNETLwww.netl.doe.gov22