This presentation was given at the Global CCS Institute/CSLF meeting on CCS Project Integration that was held in London on 3 November 2011. The aim of the meeting was to share experiences on CCS project integration; and to identify priority integration topics that need further attention to facilitate CCS project development and deployment. You can view more presentations from the event at http://www.globalccsinstitute.com/community/blogs/authors/klaasvanalphen/2011/11/25/presentations-global-ccs-institutecslf-meeting-ccs

1. The Timing of Storage Site
Characterisation
AK (Tony) Booer
Nov 3, 2011 Global CCS Institute / CSLF Meeting on Project Integration
www.slb.com/carbonservices

2. The Global Status of CCS: 2011
From the Executive Summary...
“Information from project proponents
indicates that storage assessment and
characterisation requires considerable
investment and can have long lead
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times of five to 10 years or more for a
greenfield storage site, depending on
the existing available geologic
information about the site.”
“Policymakers need to factor these lead
times into their assessment of a
project’s progress. Projects that have
not yet commenced active storage
assessment may have a challenge to
achieve operation before 2020.”

3. The Timing of Storage Site Characterisation
A Key Question:
● What is the storage for ?
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― “Demo” project ?
― Large-scale storage site characterisation ??
― Enhanced Oil Recovery ???
Another one:
● Where is the CO2 coming from ?

4. Timing of Storage Site Characterization
International / National / Regional / Project level
US DOE Carbon Sequestration European NER-300 funding:
Program Goals: [by 2015]
Deliver technologies & best practices
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8 CCS projects, of which:
[by 2020] that provide Carbon
Capture and Safe Storage (CCSS) ● Min 1, Max 3 in the following
with: categories: pre-combustion, post-
combustion, oxy-fuel and industrial
● 90% CO2 capture at source applications
● 99% storage permanence ● Min 3 with saline aquifers &
● < 10% (pre), < 35% (oxy, post) Min 3 with depleted
increase in COE hydrocarbon reservoirs
● Min size threshold: 250 MW.
Min capture efficiency: 85%.

5. 5

6. Illinois Basin – Decatur Project
A collaboration of
● the MGSC,
● the Archer Daniels Midland Company
(ADM)
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― CO2 source + site location
● Schlumberger Carbon Services
― Storage and monitoring
● Trimeric,
― Compression & dehydration
● and other subcontractors
to inject 1 million metric tons
of anthropogenic CO2
at a depth of ~7,000 ft (~2,000 m)
to test geological carbon sequestration in
a saline formation at a site in Decatur,
Illinois
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7. CO2 Storage in the North Sea
– Industry Potential
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8. Industry Best Practices
“While the analysis in Site Screening and Site Selection relies
primarily on existing data, Initial Characterization involves the
acquisition of new, site-specific data by employing investigative
tools and techniques. Initial Characterization tools include both data
collection (e.g., seismic and well logging, core analysis, injectivity
tests) and development of three-dimensional (3D) mathematical
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models of the selected injection and confining zone(s). The
successful characterization of a site is the most important step in
ensuring the safe and economic operation of a CO2 GS site. “
Source: US DOE NETL – Best Practices for: Site Screening, Site Selection,
and Initial Characterization for Storage of CO2 in Deep Geologic Formations

9. CarbonWorkFlow
process for long-term CO2 storage
CO2 Injection
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Development
Closure
Appraisal /
Characterization
Post closure
Performance Management
& Risk Control
Pre Selection Post liability transfer
Pre-injection Injection Post-injection
CarbonWorkFlow* mark
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10. CarbonWorkFlow
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CarbonWorkFlow* process for long-term CO2 storage enabling assessment and
management of risk in every phase of a project.
*Mark of Schlumberger

11. Oil & Gas business approach to front-end risk...
Studies, models, risk assessment
& campaign drilling
The exploration & Production Business
Explore
Learned to Diversify Front End Risks
- Find & Develop a combination
Explore
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of specific sub-surface conditions
Explore
Explore
Explore Appraise Develop Produce
Explore
Explore Volume
• Seismic
• Logs
Diversify Risks Across
• Pressures
• Plays & Prospects
Rate
• Joint Ventures
• Logs
• Technology / Costs Thanks to A J Garnett
• Samples
• Scale
• Tests
• Extended Well Tests

12. ...but what’s happening in the CO2 world ?
Studies, models, site selection & one “best shot” - less drilling,
- more & more complex modelling,
- no Extended Well Testing equiv.
Explore too early narrowing - more reliance on lab-tests
Explore down to single options - no long term field calibration (yet)
(but natural analogues)
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Explore
Explore
Explore & Appraise Develop Inject
Explore
Containment ? Complex modelling
Diversify
• “Sealing” Models Reactive flow No. of “prospect tests” required for 90%
Risks ? • Lab studies Coupled processes confidence in at least one getting to FID ?
Rate • flow,
• Logs • E&P Prospects 6–8
• mechanical,
• Models • chemical • CO2 sites 2 – 4 ??
• Samples & lab
Capacity Extensive modelling
• Seismic Full-earth
• Logs Emissions (source terms)

13. Commercialization timeline, costs and uncertainty
Possible site Probable site Approved site Construction Injection Equalization Closure
Cumulative Cost
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Uncertainty
0 5 yrs 30 yrs 35 yrs 100+
Risk Control & Performance Assessment
* Per ton estimates and total costs (in current day $USD) are based on 100Mton lifetime storage volume)

14. 1-Study existing data and start risk methodology
Possible site Probable site Approved site Construction Injection Equalization Closure
Cumulative Cost
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Desktop Studies (pennies per ton)
Uncertainty
0 5 yrs 30 yrs 35 yrs 100+
Risk Control & Performance Assessment
* Per ton estimates and total costs (in current day $USD) are based on 100Mton lifetime storage volume)

15. 2-Collect and analyze new data
Possible site Probable site Approved site Construction Injection Equalization Closure
Cumulative Cost
models
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Desktop Studies (pennies per ton)
wells and seismic
Collect Data
Build Models Uncertainty
( ~50 cents / ton )
0 5 yrs 30 yrs 35 yrs 100+
Risk Control & Performance Assessment
* Per ton estimates and total costs (in current day $USD) are based on 100Mton lifetime storage volume)

16. 3-Design, permit and build
Possible site Probable site Approved site Construction Injection Equalization Closure
Cumulative Cost
models
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Desktop Studies (pennies per ton)
wells and seismic
Collect Data Design and
Build Models Permit Build Uncertainty
(~50 cents / ton) (<10 cents / ton) (~$1 / ton)
0 5 yrs 30 yrs 35 yrs 100+
Risk Control & Performance Assessment
* Per ton estimates and total costs (in current day $USD) are based on 100Mton lifetime storage volume)

17. 4-Operations
Possible site Probable site Approved site Construction Injection Equalization Closure
monitor Cumulative Cost
models
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Desktop Studies (pennies per ton)
update
wells and seismic gather models
data
Operate Site
3 Mton/yr
( dollars / ton )
Collect Data Design and
Build Models Permit Build Uncertainty
(~50 cents / ton) (<10 cents / ton) (~$1 / ton)
0 5 yrs 30 yrs 35 yrs 100+
Risk Control & Performance Assessment
* Per ton estimates and total costs (in current day $USD) are based on 100Mton lifetime storage volume)

18. 5-Closure and post closure
Possible site Probable site Approved site Construction Injection Equalization Closure
monitor Cumulative Cost
models
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Desktop Studies (pennies per ton)
update
wells and seismic gather models
data
Operate Site Environmental
3 Mton/yr Monitoring
( dollars / ton ) ( pennies / ton )
Collect Data Design and
Build Models Permit Build Uncertainty
(~50 cents / ton) (<10 cents / ton) (~$1 / ton)
0 5 yrs 30 yrs 35 yrs 100+
Risk Control & Performance Assessment
* Per ton estimates and total costs (in current day $USD) are based on 100Mton lifetime storage volume)

19. Variables – which control Timing
Scale? Learning Curve?
Possible site Probable site Approved site Construction Injection Equalization Closure
$500M – $1B
Property Rights? -Capex? / Opex?
monitor Cumulative Cost
Public Acceptance?
Market Forces?
Exploration Cost ? ( success rate ?)
models
FID Confidence ?
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Desktop Studies (~pennies per ton)
Regulatory Req’s
$150M Quality Std,
update
wells and seismic gather models
Liability ?
data
$50M
Operate Site Environmental
3 Mton/yr Monitoring
( dollars / ton ) ( ~pennies / ton )
Collect Data Design and
Build Models Permit Build Uncertainty
$1M (~50 cents / ton) (<10 cents / ton) (~$1 / ton)
0 Discount Rate? 5 yrs 30 yrs 35 yrs 100+
Risk Control & Performance Assessment
* Per ton estimates and total costs (in current day $USD) are based on 100Mton lifetime storage volume)

20. CO2 Storage in the North Sea
– Industry Potential
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21. Illinois Basin – Decatur Project
Phase III Awarded December 2007
Major Project Elements:
● Underground Injection Control (UIC) permitting: January 2008-October 2011
― application, hearing, minor modification, major modification, completion reports…
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● Injection well drilled: February 14 - May 4, 2009
● Geophone well drilled: November 2009
● Baseline 3D seismic survey completed: January 2010
● Compression / dehydration / pipeline facility
― design, procurement, construction, testing, February 2009-October 2011
● Monitoring well drilled, cased: Sept-Nov 2010
● Monitoring well completion: May-June 2011
● Completion Report to Illinois Environmental Protection Agency (EPA): August 2011
● Permission to Inject: early November 2011
● Initiate injection: Next Week ?… (ramp quickly up to 1000 tonnes per day)
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22. Timing of Storage Site Characterization
● At a National, and individual project level,
storage is generally on the critical path now.
● To move to the next level of certainty, special efforts to collect,
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evaluate, and integrate new data in order to qualify
large-scale storage sites are needed.
● Each site is different (as usual!)
● What is the storage for ?
● Where is the CO2 coming from ?