INTEGRATED CCS CHAIN ON OXYCOMBUSTION. Dominique Copin Coordinator CCS

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1 LACQ PROJECT: MAIN RESULTS OF AN INTEGRATED CCS CHAIN ON OXYCOMBUSTION Dominique Copin Coordinator CCS

2 CCS PILOT, LACQ, FRANCE CONTENTS Pilot project overview Surface operational feedback Transport and subsurface operational feedback Conclusions

3 CCS PILOT, LACQ, FRANCE PILOT PROJECT OVERVIEW

4 PROJECT DESCRIPTION A Full industrial integrated chain : 1 st In Europe testing the Oxy-combustion technology on a 30MWth Gas boiler. Budget : CAPEX 60 M Euros Financial Investment Decision end of 2006 First CO 2 capture: July 3 rd, 2009 First CO 2 injection in Rousse reservoir: January 8 th, 2010 End of injection:15 th March 2013 (more than 50 kt CO2 captured and injected) TRANSPORT: 27km long pipe from Lacq to Rousse 5km Post-injection ti observation period: 3 years starting ti 15 th March 2013 Lacq site 5 km City of PAU Lacq 27bar Existing right of way Saint- Faust Pont d As das Rousse-1 injection well

5 PROJECT OBJECTIVES To demonstrate the technical feasibility and reliability of an integrated onshore Carbone Capture and Storage scheme for steam production. To acquire operational experience and data to up-scale the oxy-combustion technology from pilot (30MWth) to industrial scale (200MWth). To develop geological storage qualification methodologies. To develop monitoring methodologies on site to prepare future larger scale long term onshore storage projects (micro seismic monitoring, environmental monitoring ). Acquire expertise and reduce costs for future industrial deployment

6 A COMPLETE INDUSTRIAL CHAIN CO 2 injection CO 2 transport CO 2 capture Natural Gas production Compression CO 2 injection CO 2 storage m 8 Commercial gas CO 2 Transportation Utilities Boiler oxycombustion 7 Steam 4 5 Purification / CO 2 dehydration Natural gas Lacq gas treatment plant 3 10 Compression 6 Oxygen Production Unit Natural gas inlet 2 CO 2 Rousse reservoir 6 Industrial scale: 30MWth oxycombustion 6 Lacq gas production 4000 m 1 Lacq deep gas reservoir

7 CCS PILOT, LACQ, FRANCE SURFACE DESCRIPTION AND OPERATIONAL FEEDBACK

8 PILOT TECHNICAL DESCRIPTION Air separation unit Oxy-combustion Boiler Direct Contact Cooler Cryogenic unit (Air Liquide) O 2 : 240 t/d Existing 1957 boiler revamped by Alstom to oxy-combustion boiler. Oxyburners developed by Air Liquide (30 MWth, 40 t/h 60b, 450 C) Cooling of flue gases From to 200 C to 30 C Drying Unit Wet CO 2 compressor Transport and Storage Outlet : < 20 ppm of water From 1barg to 27 barg

9 PILOT PLANT OVERVIEW Commercial Gas HP Steam to Plant network Stack Compressor Dryers Oxygen 30MW th OxyBoiler Flue Gas Recycle Air L/G separator(s) Direct Contact Cooler Lacq Site ASU Well Head Depleted Gas Reservoir Compressor Rousse Site CO 2 27 km long Pipe Range %vol 5 7 %vol O 2 Site N 2 1 3%vol Ar NOx H 2 O, CO 1 %vol <0,1 % vol < 10 ppm vol

10 SURFACE OPERATIONAL MAIN RESULTS Air Liquide ASU Design capacity of 240 t/day O 2 (99.5%vol purity) No issue Air boiler retroffited to Oxy-combustion (4x8 MWth oxy-burners + FG Recycle ) No issue Direct Contact Cooler : cooldown the flue gas from 220 C to 30 C No issue Air Liquide Molecular Sieves Driers (Spec. at 10 ppm of water) No issue Lacq compressor (3 Stage reciprocating compressor 1 MW) Corrosion issues recorded during start-up (nitric acid attack on third compressor stage) solved by : - Lower cooling at DCC unit (30 C instead of 50 C) - Slight increase of the suction temperature - Recycling dry CO2 at the inlet of compressor - Improvement of gas/liquid inter stage separators No more issue

11 CCS PILOT, LACQ, FRANCE TRANSPORT AND SUB-SURFACE DESCRIPTION AND OPERATIONAL FEEDBACK

12 TRANSPORT AND STORAGE Capture Rousse storage RSE-1 injection well head Rousse compressor Pinlet: 27bar Poutlet: 51bar Depleted gas 4500m/GL

13 CO 2 TRANSPORT FROM LACQ TO ROUSSE CO 2 is transported in gas phase at 27bar max 27 km long existing carbon steel pipe (Ø 8" /12" ) Dry CO 2 rich stream avoids corrosion No issue

14 RESERVOIR STORAGE Tertiary Upper Cretaceous Low Cretaceous Mano storage Single well Depleted Gas bar 4500 m depth 3% porosity K m < 1 md K f ~ 5 md 150 C Major Issues Historical behaviour Pilot requirement Storage Capacity 910 MSm 3 produced 90 kt CO 2 ~ 50 MSm 3 Injectivity 300 ksm 3 /day (prod) 50 ksm 3 /day Cap rock integrity 480 bar initial pressure 100 bar inj. pressure

15 ROUSSE WELL SPECIFIC COMPLETION 4 Pressure and Temperature sensors Objectives : Pressure loss models calibration Reservoir models calibration Monitoring of the well injectivity 3Microseismic Micro-seismic sensors Objectives To assess the impact of the injection near the wellbore Top 4540m

16 SURFACE MICROSEISMIC SENSORS Microseismic equipment installed in 7 shallow wells (TD: 200m/GL): 6 wells on a 2km radius circle around the injection well; 1 well on the injection site. One seismometer for natural seismicity Online information transmitted continously to a control center In case of magnitude > 3, the injection is stopped Events localized at +/- 250 m/magnitude - 1 Shallow well

17 ENVIRONMENTAL MONITORING: SOIL GAS, WATER, FAUNA & FLORA Soil gas (35): CO 2 and CH 4 concentration and flux. C isotopy. Inert gas. Autumn and winter. 30km City of PAU Perched aquifer ( 4 springs) : Chemical and mineral content, every 6 months. Indicators: ph, conductivity, carbonates, bicarbonates. Shallow and deep saline aquifers sampled at selected existing water wells (drinking water supply of Pau). Monitoring as for perched aquifer. Surface water (5 small rivers): Standardized bioindicators (diatoms and benthic macro invertebrates) and chemical and mineral content. Every 6 months. Fauna and Flora: Annual inventory of: Flora of representative ecosystems (33 sites) Several amphibians and insects species (50 sites). RSE-1 1 km

18 CUMULATIVE INJECTED CO2 Quantité Cumulative globale injected injectée CO2 au 15 at Mars 03/15/2013: : k Tons Tonnes Change of cylinder on the Lacq compressor Average rate110 t/d Work-over RSE1 + modifications of the separators Tests oxy 200 MWth njected (t) Cumul CO2 i Corrosion remediations The gas injected in Rousse CO2 injection rate contains about 92 %weight of CO 2

19 SUB-SURFACE FEEDBACK MONITORING Bottom hole P measurement BHP measurement BHP Maxi case Period of Mano single production

20 SUB-SURFACE FEEDBACK MONITORING: FOCUS ON THE PILOT PERIOD Static ti reservoir pressure is increasing i due to CO 2 injection. The reservoir pressure increase is as per the predictive model. Long term wise CO 2 accumulates in low points of the reservoir, and CH 4 rich gas flows back up below the cap rock CO2 remains primarily in the gas phase (minor dissolution / mineralization)

21 INJECTIVITY INDEX JANUARY 2010 TO JULY 2012 FEEDBACK There is no evidence of increasing or decreasing injectivity index In line with geochemistry studies, no modification of reservoir matrix mnm janvier-10 mai-10 août-10 décembre-10 avril-11 août-11 décembre-11 avril-12

22 MICROSEISMIC MONITORING Integrity objective : very low micro-seismic activity : only three events located at the vicinity of the injection well by the surface equipment : -1.1 < M < -0.3 Regarding micro-seismic events detected by the deep seismic array since April 2011 : -Localisation studies on going -Sources to be defined (depletion, pyrénées, injection..no baseline available) France Spain Rousse 30km -Very good sensitivity : -3.1 < M < -1.4 No incidence on reservoir integrity (fully in agreement with geomechanical studies)

23 ENVIRONMENTAL MONITORING: FAUNA 44 l ti f A hibi 33 locations for Insects Baseline: June and July locations for Amphibians Baseline: June and July 2009 No deviation from Baseline surveys in 2009

24 CCS PILOT, LACQ, FRANCE CONCLUSIONS

25 CONCLUSIONS Objective 1 : The technical feasibility and reliability of an integrated t onshore Carbon Capture and Storage scheme for steam production at a reduced scale has been proved. Objective 2 : Operational experience and data to up-scale the oxy-combustion technology from pilot (30MWth) to industrial scale (200MWth) are acquired. For CO2 from combustion in O&G sector, current cost evaluations for capture units of industrial size are still high. Objective 3 : Reservoir and well performance are in line with the models. The demonstration of the site integrity and absence of environmental impact is done. Objective 4 : The monitoring program deployed at Rousse is very large and innovative. New tools have been successfully tested. The optimal long term post-injection monitoring i plan economically and technically viable is being defined d based on risk analysis update. It will have to be validated by French Administration. Positive public perception : Transparency in communication with local communities is one of the key factor to reach the public acceptance. It remains a permanent concern to be taken into account during the whole life of a CCS experimentation

26 CCS PILOT, LACQ, FRANCE THANK YOU FOR YOUR ATTENTION

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