1. Surat Basin CCS Project
(A CCS Flagship shortlisted project)
‘A carbon storage solution’
Case study – storage, stakeholder and
community learnings so far
• Based on Carbon Capture and Storage
World Conference Presentation
• October 2011 - GCCSI
1

2. The CTSCo journey 2009 to 2011
What we thought... What we have...
10% Technical Technical
10%
Approvals
30% 40% Approvals
80% Stakeholder and Stakeholder and
community 30% community
% of effort committed by activity type
% of effort projected by activity type
• Standalone CCS demonstration
project separated from industrial
• IGCC with CCS scale storage stage
• 2.5 million tonnes CO2 per annum • 1 million tonnes CO2 per annum goal
driven by IGCC plant outcomes driven by industrial scale requirement
• Industrial scale storage by 2015 • Demonstrable pathway to industrial
scale storage by 2020
2

3. Potential for CCS in the Surat Basin
• Suitable geological formations for CO2
storage in Surat Basin – GHG Storage Atlas
potential of up to 2900 Mt
• Substantial amount of existing data and
information – lots of well and seismic data
• A demonstration project not a commercial
business – strong advantage
• CTSCo – special purpose subsidiary of
Xstrata Coal Queensland – assessing CO2
storage in Surat Basin
• Collaborative information sharing with
Geological Survey of Queensland’s CGI
program
• Innovation (e.g. DCA) to speed up proving
work and keep costs down
• Demonstration on Xstrata owned land
with no overlapping tenement rights
3

4. Challenges for CCS in the Surat Basin
• 47 major regional
resource projects by
2013 (Source: Western Downs Regional
Council)
• Overlapping
tenement rights and
resource
competition
• 6000 existing CSG
wells growing to
40,000
• Explaining 5 or 6 CO2
storage wells with
CO2 storage
• Strategic Cropping
legislation
• Land Access regime
now enacted
Brisbane
• Community –
consultation fatigue
4

5. Xstrata/CTSCo goals
• Prove up 30 years of CO2 storage capacity at 1Mtpa for CCS Flagship
project
• Demonstrate progressively that CO2 can be stored safely and effectively, at
known cost and in predictable timeframes
• Deploy studies with carefully staged technical and financial commitment
gates
– so that all funders, proponents, regulators get progressively more comfortable
• Provide information from this demonstration project so that all stakeholders
can make informed decisions about CO2 storage
• Maintain the Social Licence to Operate
5

6. Stakeholder environment is complex
and sensitive
• Concern over GAB water resource
contamination
– GAB nomenclature not clear
• Consultation fatigue – so many
regional projects
– CSG, ICG, mining, power stations etc
• Several well organised active
lobby groups in the Surat
– Coal4breakfast
– Lock the Gate etc.
• Need to differentiate as a
demonstration project from
extensive commercial business
developments
– Funded by governments and
associations
6

7. The picture we would like…versus the one we have…
• Water is a sensitive and
critical resource
• Really like this pictorial
• Freshwater supplies
very close to the
surface
• Structure and depth
separates fresh from
non-potable aquifers
• Aquifers are very salty
> 10,000 ppm salt
Key issues presented in the identification of
suitable storage sites for CO2
CCS World Australia 2011 September 1, 2011 Edward N. Steadman
Commercial in Confidence 7

8. Storage target is Precipice Sandstone
part of the GAB
• Regional livelihood’s
depend on water drawn
from the GAB
• 1000 km circumference
• Lots of near-surface
water data
• Almost no deep-water
data
• Oil and gas region that
is well explored
• Distance and depth
separates fresh from
non potable water
supplies
8

9. Balance is changing
Key issues presented in the identification of
suitable storage sites for CO2
CCS World Australia 2011 September 1, 2011 Edward N. Steadman
Commercial in Confidence 9

10. Extracting geological trends
Outcrops, existing data and Digital Core
Analysis……….
Chinchilla- 4
10

11. Innovation
CAT Scan of core (well) samples
to help communicate the science
Cat scan of void
Commercial in Confidence 11

12. Stakeholder benchmarking important
• On shore and offshore, urban and rural projects are different
• Australia
– Gorgon
– ZeroGen
– Otway
– Callide Oxyfuel
• Overseas
– Canada
• Weyburn
– USA
• Futuregen in Illinois
– Germany
• Vattenfall’s Schweinrich to Schwarze
– France
• Total at Lacq
– Holland
• Shell's Barendrecht project, near Rotterdam
– Other
• In Salah Algeria
• Longannet
• Working with CSIRO to establish local benchmarks
Commercial in Confidence 12

13. Learnings Summary
• All skills for deploying CO2 storage exist in the oil and gas industry
• Storage feasibility and viability is site specific, but examples of
deployment include:
- Sleipner, Norway
- In-Salah, Algeria
- Weyburn, Canada
- Otway, Australia
- Decatur, Illinois – imminent at 1Mt
• Innovation such as Digital Core Analysis has a significant part to play
in reducing, cost, timeframes, risk and communicating ‘pore space’
concept
• We ignore the Social Licence to Operate at our peril
• Independent assessments from say CSIRO to maintain credibility
- Social research
- Environmental baselining
13

14. Project support
• Projects of this kind need support and the project wishes to acknowledge the following
parties:
The project has received pre-feasibility funding from the Australian Government (as part of the Clean Energy Initiative), the
Queensland Government and the Australian Coal Association Coal 21 fund. The views expressed in this presentation are not
necessarily the views of these parties.
Project support
– CO2CRC
– CSIRO
– Xstrata Coal
Commercial in Confidence 14