Elisabeth Rose 10 May 2012

Independent Assessment to Increase Carbon Capture and Storage Credibility

Mike Carpenter

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

Outline

Why CCS?

Status and challenges with CCS

DNV‟s response to the challenge

Concluding remarks

2

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

3

Why CCS?

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

4

CO2 capture and storage system

Fuels

Processes

Storage options

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

5 5

• CCS is one in a portfolio of energy technologies that can be applied to reduce

emissions

• The role of CCS increases after 2030 – contributes 1/5 of global needed reductions

• CCS should not be opposed to other low-carbon technologies

• 70% more expensive to reach the green house gas emissions target without CCS

• CCS is a relatively new undertaking in all parts of the world and could provide a

basis for cooperation and partnership between developing and developed countries

• CCS is a technology that allows the oil and gas industry to play direct role in

reducing emissions by applying industry specific knowledge and tools

Source: World Energy Outlook 2011

CCS is critical for green house gas emissions reduction

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

6

Status of CCS today and

challenges ahead

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

So far…

• Potentially 20 billion EURO in public

funding to CCS projects world-wide

• To date 74 LSIPs are identified of

which 8 at the operation stage & 6

execution stage

• Current projects are capturing CO2 in

industrial processes

• ~6000 km of onshore CO2 pipelines in

the US

• 4 small CO2 carriers in operation

• 40 years of experience from Enhanced

Oil Recovery operations with CO2

• Large scale geological storage of CO2

in oil and gas operations, ex. Sleipner,

Snøhvit, In Salah and Weyburn

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Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

Key questions…

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Can we store CO2 safely ?

For how long is CO2 removed from the atmosphere ?

How to create trust and confidence among stakeholders ?

What potential amount of CO2 could be captured ?

How can we reduce the cost of CCS?

Which projects and sites qualify ?

Will an uncontrolled release from onshore pipeline be dangerous?

Elisabeth Rose 10 May 2012

Demonstrate

Technology

Financial

mechanism

Public confidence

Legal and Regulatory frameworks

MATURITY

CCS

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

Public resistance towards CCS

CCS is a new concept to the public and introduces new risks

No tangible local benefits from storing CO2 – only risks?

Cases of public resistance towards several CCS projects worldwide

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It is important to assure the public that CCS can be done in a

safe way

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

11

DNV’s response to the challenge

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

DNV Guidelines for CCS

Qualification of Sites and Projects for Geological Storage of CO2 (CO2QUALSTORE)

(First issue: 2009)

JIP Partners: Gassnova, IEA GHG, Shlumberger, Statoil Hydro, Dong, BP,

Shell, Vattenfall, RWE, British Gas, Gassco, Petrobras

Observers: Regulators invited

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Transmission of dense, high pressure CO2 in submarine and onshore pipelines

(CO2PIPETRANS) (First issue: 2009)

JIP partners: Gassnova (50%), Gassco, Vattenfall, StatoilHydro, BP, Shell,

ArcelorMittal, Dong Energy, ILF, Petrobras, British Gas

Observers: PTil (NO), HSE (UK), MINEZ (NL)

Sub-contractors: SINTEF, IFE, Polytec

Qualification of new CO2 capture technology (First issue: 2008)

JIP Partners: Gassnova, StatoilHydro, Statkraft, Aker Clean Carbon / Aker

Solutions, DNV

Guideline for the risk management of existing wells at CO2 geological storage sites

(CO2WELLS) (First issue: 2011)

JIP Partners: Gassnova, Shell, Vattenfall, RWE, Gassco, Petrobras, National

Grid, GSSI, E. ON, HSE UK

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

DNV Recommended Practice on Geological Storage of CO2

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DNV Recommended Practice on Geological Storage of CO2

DNV-RP-J203 (May 2012)

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

DNV’s storage site certification scheme

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EU CCS Directive refers to CO2QUALSTORE guideline

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

Ensuring safe CO2 storage operations

Challenge

CO2 storage among various

stakeholders is associated with risk in

terms of storage site performance,

HSE issues, project cost overruns

and delays

Failure is not an option!

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Responding to the Challenge

The independent assessment builds

confidence in CO2 storage operations

and enables a time and cost efficient

risk reduction to an acceptable level

prior to project start up

Independent assessment provides stakeholders with

confidence that CO2 will be stored safely

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

Why is independent assessment important?

Statements made by Ian Silk, QUEST Venture

Manager, Shell

- “Public support (local to storage) for CCS has been

challenging in early demo projects, and was identified

early as key for Quest.”

- “The storage area communities need Shell to answer

the simple question „Is it safe?‟”

This could be communicated with more credibility

if assessed by an independent party

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DNV independent assessment would help both external public

acceptance and internal technical assurance

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

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So, can we ensure confidence among stakeholders towards CCS projects? yes, by being transparent to create trust yes, by conducting independent assessments yes, by cooperation and knowledge sharing

Independent Assessment to Increase Carbon Capture and Storage Credibility

10 May 2012

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