seminaire d ’orientation strategique 1 castor sp1 (7/10/03) castor sub project 1: strategy for co...

Castor

1 CASTOR SP1 (7/10/03)

CASTORCASTORSub Project 1:Sub Project 1:

Strategy for COStrategy for CO22 reductionreduction

ENCAPENCAP--CASTOR WorkshopCASTOR WorkshopMarch 16. 2006, BillundMarch 16. 2006, Billund

Erik Lindeberg, SINTEF PetroleumErik Lindeberg, SINTEF Petroleum

CASTOR SP1 (7/10/03)

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ObjectivesObjectives

(Short version): Monitoring and integrating the CASTOR project t(Short version): Monitoring and integrating the CASTOR project to o provide a reduction strategy for EUprovide a reduction strategy for EU

(Long version): Strategy for CO(Long version): Strategy for CO22 reduction, aims to define the overall reduction, aims to define the overall strategies required to effect a 10% reduction of EU COstrategies required to effect a 10% reduction of EU CO22 emissions and emissions and to monitoring the effectiveness of the strategies (from capture to monitoring the effectiveness of the strategies (from capture to to storage) from a technostorage) from a techno--economical point of vieweconomical point of view. The results from the . The results from the other subother sub--programmes (and also from other ongoing research in this programmes (and also from other ongoing research in this field) will be monitored and integrated into the overall stratefield) will be monitored and integrated into the overall strategy. Existing gy. Existing economic tools will be adapted such that they are applicable to economic tools will be adapted such that they are applicable to the the purpose of strategy development. Research work is also focused opurpose of strategy development. Research work is also focused on n obtaining data on capture and geological storage capacities fromobtaining data on capture and geological storage capacities fromSouthern and Eastern Europe (extension of GESTCO European Southern and Eastern Europe (extension of GESTCO European project). The impact of the overall strategies on EU countries, project). The impact of the overall strategies on EU countries, including including Candidate Countries, will be taken into account.Candidate Countries, will be taken into account.

SP 1. Strategy for COSP 1. Strategy for CO22 reductionreduction


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Project managementProject management

SP 1. Strategy for COSP 1. Strategy for CO22 reductionreduction

SP2 CO2 Post combustioncapture

SP1 Strategy for CO2 reduction

Energy

SP3 CO2 Storage performance and risk assessment studies

ENCAP


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Work packagesWork packages kEurokEuroWP1.1 Strategy, economy, integration WP1.1 Strategy, economy, integration 580580WP1.2 Mapping the GeoWP1.2 Mapping the Geo--storage capacity storage capacity 320 320 Total budgetTotal budget 900900

SP1: Strategy for COSP1: Strategy for CO22 reduction:reduction:Work packagesWork packages


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Budget distribution on partnersBudget distribution on partners

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BGS

TNO

GEUS IFPSIN

TEF Energ

y

SINTE

F Petroleu

m

Statoil

Vatten

fall

PPCkE

uro


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CASTOR WP 1.1CASTOR WP 1.1Strategy, economy, integrationStrategy, economy, integration

Work package leader: Ton Wildenborg, TNOWork package leader: Ton Wildenborg, TNO


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WP1.1 Strategy, economy, integrationWP1.1 Strategy, economy, integrationWork package leader: Work package leader: Ton Wildenborg, Ton Wildenborg, TNOTNO

ActivitiesActivitiesIntegrating the new results in capture and storage into a road mIntegrating the new results in capture and storage into a road mapapMonitor the CASTOR++Monitor the CASTOR++ process resultsprocess resultsSupporting the analysis with an economical outlineSupporting the analysis with an economical outline

DeliverablesDeliverablesRoad map for the introduction of CORoad map for the introduction of CO22 sequestration in Europe and sequestration in Europe and related R&D needs.related R&D needs.Annual updates of road mapAnnual updates of road mapCOCO22 capture, infrastructure and storage economic baseline analysiscapture, infrastructure and storage economic baseline analysisFirst annual cost review of results of technology scenarios in tFirst annual cost review of results of technology scenarios in terms of erms of COCO22 reduction and uncertainties after 18 months, and thereafter 2 reduction and uncertainties after 18 months, and thereafter 2 annual reviewsannual reviewsUpdated COUpdated CO22 reduction figures and reduction of uncertainties for SP 2 reduction figures and reduction of uncertainties for SP 2 and SP 3 and SP 3 ±± 30 % cost estimate of best post30 % cost estimate of best post--combustion scenario with combustion scenario with comparison with precomparison with pre--combustion scenario.combustion scenario.Conference presentation and publications in refereed journal Conference presentation and publications in refereed journal


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WP1.1 Roadmap stepping stoneWP1.1 Roadmap stepping stone

IncentivesIncentivesEmission penaltiesEmission penaltiesEnhanced petroleum recovery, ECBMEnhanced petroleum recovery, ECBMStrategic company considerationsStrategic company considerationsStrategic government (national) considerationStrategic government (national) consideration

ObstaclesObstaclesCostCostLegal issuesLegal issuesSafetySafetyPublic perceptionPublic perception


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Storage optionsStorage optionsMethodMethod Residence Residence

time, yearstime, yearsCost, Euro Cost, Euro per tonneper tonne

TechnologyTechnologystatusstatus

CapacityCapacityGtonneGtonne

Oil reservoirsOil reservoirs > 10 000> 10 000 Negative 6.5 Negative 6.5 to 10to 10

ProvenProven 130130

Gas reservoirsGas reservoirs > 10 000> 10 000 11 ProvenProven 900900

Deep saline aquifersDeep saline aquifers > 10 000> 10 000 11 ProvenProven Several Several 1000’s1000’s

Unminable coal seemsUnminable coal seems > 10 000> 10 000 22 TestingTesting 15 15 -- 450450

Mineral fixationMineral fixation > 10 000> 10 000 highhigh ExperimentalExperimental Potentially Potentially largelarge

Ocean disposalOcean disposal 500 500 --15001500 2 2 -- 2222 ExperimentalExperimental Potentially Potentially largelarge

TerrestialTerrestial storage, dry icestorage, dry ice 1000 1000 -- 15001500 highhigh Idea onlyIdea only LargeLarge

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Economic Analysis ToolEconomic Analysis Toolfor COfor CO22 sequestrationsequestration

EuropeanEuropean ProjectProjectWP 1.1 CASTOR WP 1.1 CASTOR


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Project OrganisationProject Organisation

IFP: captureIFP: capture--Technologies of capture (include compression)Technologies of capture (include compression)--Generation of sourcesGeneration of sources

TNO & SintefTNO & Sintef--Transport: pipeline + shipsTransport: pipeline + ships--Storage: aquifer, EORStorage: aquifer, EOR

IFP & TNOIFP & TNO-- CashflowsCashflows and economicsand economics


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Tool descriptionTool description

The purpose of the tool is to facilitate the economic analysis of CO2 reduction strategy options

Requirements:

•Balancing of the CO2 reduction target volumes in time with transportation capacity and available storage capacity

•Estimating the economics of the capture, compression, transport and storage

•Inclusion of transportation options:-pipeline infrastructure-transport by ship


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Source generationSource generation

Starting from a initial set of electric power plants, generation of new sources up to 2050 . The Initial set of sources is coming from the GESTCO database

Criteria of source generation taking in account :

- the life-time, the capacity (MW) and the operating time (hours/year) of the sources

- the electric demand coming from a scenario of energy consumption

- a replacement rate eventually higher than the energy demand: in that case oldest sources are closed and source investments are smoothed in time

-the percentage of new source type: Natural Gas or Bitumous Coaland the associated technology of capture


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Capture technologies Capture technologies The post combustion costs are expressed in Euro/tonne of CO2 captured and avoided which are recomputed for each source taking in account:- the source time life- the number of operating hours- the depreciation rateThe Baseline Economics results are used to define a small database of 10 capture technologies

Computation of the CO2 emitted, captured and avoided

Computation of the capture investments and the capture O&M costs

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Discounted cash flow curve of each sourceDiscounted cash flow curve of each source

Discounted cash flow curves of each source

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Cash flow AnalysisCash flow AnalysisCosts and revenues analysis: Costs and revenues analysis: Each step of the COEach step of the CO22 sequestration generates expenditures and revenuessequestration generates expenditures and revenues

Expenditures: specific investment of capture, transport, storageExpenditures: specific investment of capture, transport, storage and and bufferingbufferingRevenues: tax reductions, CORevenues: tax reductions, CO22 sales, oil salessales, oil salesComputation of the cash flow surplusComputation of the cash flow surplus

Analysis by project: Analysis by project: Each source, transport, buffer and storage is a project with cosEach source, transport, buffer and storage is a project with costs and ts and

revenues.revenues.It enables to identify projects with profitabilityIt enables to identify projects with profitability

Computation of the discounted valuesComputation of the discounted valuesComputation of the Net Present Values: identification of the mosComputation of the Net Present Values: identification of the most t optimal scenariosoptimal scenarios

CastorProtoType37.xls


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CASTOR WP 1.2CASTOR WP 1.2Geological storage options for Geological storage options for COCO22 reduction strategy (reduction strategy (WP1.2)WP1.2)

Michael Larsen & Niels Peter ChristensenMichael Larsen & Niels Peter Christensen

Geological Survey of Denmark and GreenlandGeological Survey of Denmark and Greenland(GEUS)(GEUS)


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CASTOR WP 1.2CASTOR WP 1.2

Identify and collate new information Identify and collate new information from Eastern from Eastern EuropeEurope and and nationsnations not covered by GESTCOnot covered by GESTCO

Update the Update the COCO22 Capture and Storage GISCapture and Storage GIS produced for the produced for the GESTCO project by adding new data and completing coverage for GESTCO project by adding new data and completing coverage for the rest of Europethe rest of Europe

Upgrade and test the toolUpgrade and test the tool--box for use as an aid for future box for use as an aid for future technical/economical scenario evaluation and technical/economical scenario evaluation and site selectionsite selection

Provide GISProvide GIS--based holistic view of the capture based holistic view of the capture -- storage options in storage options in Europe to be applied in conjunction with a Europe to be applied in conjunction with a Decision Support Decision Support System (DSS) System (DSS) for economic evaluation of for economic evaluation of capturecapture--storage storage scenariosscenarios


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CASTOR WP 1.CASTOR WP 1.22Description of workDescription of work

Review existing Review existing data coveragedata coverage to identify gaps in to identify gaps in information with respect to territory and GESTCO GISinformation with respect to territory and GESTCO GIS

Define and Define and initiate integration of emission and storage initiate integration of emission and storage data from new countries data from new countries and areasand areas

TrainingTraining of national partnersof national partners

Unify, refine and fill Unify, refine and fill data gapsdata gaps to secure a comparable to secure a comparable dataset throughout Europedataset throughout Europe

Update GISUpdate GIS and and evaluate storage potentialevaluate storage potential for all for all European countriesEuropean countries


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CASTOR WP 1.2CASTOR WP 1.2

ProgressProgress

44--5 March, Kick5 March, Kick--off meeting in Zagreboff meeting in ZagrebJune, Review of data availabilityJune, Review of data availability2323--24 June, two day GIS and DSS workshop in Prague 24 June, two day GIS and DSS workshop in Prague --work plan for future data and GIS mappingwork plan for future data and GIS mappingOctober country review reports received from 8 countries: October country review reports received from 8 countries: Czech Republic, Bulgaria, Croatia, Hungary, Poland, Czech Republic, Bulgaria, Croatia, Hungary, Poland, Romania, Slovakia & SloveniaRomania, Slovakia & SloveniaSpring 2005, Extension of GIS data on emission and Spring 2005, Extension of GIS data on emission and storage locations in Europe (12 month technical report)storage locations in Europe (12 month technical report)Subcontracting of phase 2 detailed GIS mappingSubcontracting of phase 2 detailed GIS mapping


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CO2 sources inEastern Europe

Point sources > 100 000 Tonnes/year

Name, location, industry type, CO2 emissions and data source

Database use format of existing GESTCO GIS

Data compiled by BGS


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CASTOR WP 1.2CASTOR WP 1.2Country review Country review -- an examplean example

Report on COReport on CO22 emissions and geological sequestration emissions and geological sequestration possibilities in the Czech republicpossibilities in the Czech republic

bybyVitVit HladikHladik, Vladimir , Vladimir KolejkaKolejka -- Czech Geological SurveyCzech Geological Survey

PavelPavel FottFott, , DusanDusan VachaVacha -- Czech Czech HydrometereologicalHydrometereological InstituteInstitute

Total aggregated greenhouse gas emissions in 1990-2002 -Target reduction 8% of 1990 emission


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CASTOR WP 1.2CASTOR WP 1.2Country review Country review -- Czech RepublicCzech Republic

CASTOR WP1 Questionaire provides information CASTOR WP1 Questionaire provides information on:on:Major COMajor CO22 point sources (22) point sources (22) Oil and gas structures (6) Oil and gas structures (6) Ongoing EOR (Enhanced oil recovery) operation (1)Ongoing EOR (Enhanced oil recovery) operation (1)Geothermal plant (1)Geothermal plant (1)Natural gas storage facilities in operation (6)Natural gas storage facilities in operation (6)Coal mines (4) of which (1) is an underground mineCoal mines (4) of which (1) is an underground mineNatural CONatural CO22 seeps (2 regions)seeps (2 regions)Information on GIS databases and confidentialityInformation on GIS databases and confidentialityGeneral description on sedimentary basins, structural regions General description on sedimentary basins, structural regions and and seismicityseismicity


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CASTOR WP 1.2CASTOR WP 1.2Country review Country review -- Czech RepublicCzech Republic

22 major CO22 major CO22 point sources of which 14 power plantspoint sources of which 14 power plants

NBohemian Cretaceous Basin

Upper SilesianBasin

Vienna Basin

Sub-Krusne hory Mts. Tertiary Basins

CentralBohemianBasins

Carpathian Foredeep

South Bohemian Basins

Lower Silesian Basin

CASTOR WP1 Questionaire

1

Type: Power plant

CO2 emission: 7,2 Mt/year

Data owner: Czech Hydrometerological Institute

District: Most

Location: Sub-Krusne hory Mts. Tertiary Basins

Formations: Eocene, Oligocene and Lower Miocene


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CASTOR WP 1.2CASTOR WP 1.2Calculation of storage capacityCalculation of storage capacity

AquifersAquifersOpen or closed aquifersOpen or closed aquifers

Joule II estimateJoule II estimate11--6% average 2% storage efficiency6% average 2% storage efficiency

GESTCO estimateGESTCO estimateCountry dependentCountry dependent

DK estimateDK estimate40% storage efficiency in structural closures40% storage efficiency in structural closures

Note dependent on aquifer size, geometry and qualityNote dependent on aquifer size, geometry and quality

Hydrocarbon fieldsHydrocarbon fieldsUltimate recoveryUltimate recovery


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CASTOR WP 1.2CASTOR WP 1.2Conclusions Conclusions -- Czech RepublicCzech Republic

COCO22 emissions reduction is a political priority in emissions reduction is a political priority in the Czech republicthe Czech republicSufficient data on COSufficient data on CO22 emissions sources is emissions sources is availableavailableSuitable geological structures can be identified Suitable geological structures can be identified and analysedand analysedThere is no national experience in COThere is no national experience in CO22geological sequestration availablegeological sequestration availableNational (ministerial) support of R&D activities National (ministerial) support of R&D activities (e.g. in form of project co(e.g. in form of project co--financing) can be financing) can be expected in the futureexpected in the future

seminaire d ’orientation strategique 1 castor sp1 (7/10/03) castor sub project 1: strategy for co...

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