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As a part of the Institute's strategic focus on assisting CCS projects through knowledge sharing, three North American roadshow events will help the industry share project experiences and knowledge about CCS. Taking place in the US and Canada, the three events include:• Austin, Texas on November 8, 2011;• Calgary, Canada on 10 November, 2011; and • Washington, D.C. on 19 January, 2012.The first roadshow focused on sharing project experiences and knowledge from the projects in North America but also brought in projects from Europe (Don valley) and Australia (Callide) so that regionally diverse experiences could be shared amongst a global audience. Attendance at the event was around 30 to 35 which allowed open and frank discussions around technical, management, and regulatory issues and how these challenges can impact on a project’s advancement and decision making processes.
Citation preview
Jim CraigenJim Craigen
Global CCS Institute Regional Meetings
Austin, Texas, USA
Calgary, Alberta, Canada
November 2011
Presentation Overview
Project overview
Lessons leant
• Technical
• Commercial• Commercial
• Regulatory
Concluding remarks
Project Overview
Retrofit oxy-fuel technology to existing boiler
• One of four 30 MWe units
• Commissioned 1972
Transport and geological storage of CO2Transport and geological storage of CO2
• Up to 20,000 tonnes
• If we can find a suitable reservoir .........
Project Overview
Oxygen plant
• nominal 2 x 330 tpd ASUs
Boiler refurbishment and oxy-fuel retrofit
• 1 x 30 MWe unit
CO compression and purificationCO2 compression and purification
• 75 tpd process plant treating 20% side stream
Road transport and geological storage
• 30 tpd liquid CO2
Current Status
Oxy-fuel retrofit commissioning schedule
• ASU; Nov - Dec 2011
• Boiler (oxy mode); Jan - Feb 2012
• CO2 plant; March - May 2012
• Full system practical completion; May 2012
Transport and geological storage of CO2
• In abeyance pending identification of suitable storage
• Awaiting exploration permit
Lessons Learnt - Technical
Many lessons from design and construct phases
Many more expected during operation
R&D and pilot testing invaluable
Small design changes can have large impact on Small design changes can have large impact on
budget and timeframe
CO2 storage is uncertain and evolving
Lessons Learnt - Technical
Examples
• Separate FG treatment units on recirculating gas and
off-take to CO2 plant could have been combined into
one
• Draft plant design improvements to balance primary • Draft plant design improvements to balance primary
and secondary recirculating gas flows
• Geology is full of surprises
• Injection zones can appear very promising on preliminary
assessment but end up totally unusable
Lessons Learnt - Commercial
Project Structure
• EPC prohibitive, if available at all
• Risk sharing, requires partners to be committed and
maintain good relationsmaintain good relations
Time taken to negotiate JV and Funding Agreements
• Terms & conditions; IP, indemnities
• Costs escalated faster than funding was secured
Lessons Learnt - Commercial
Realistic timeframes and budget contingencies
• First of type plant; expect the unexpected
• Callide Project constantly under budget pressure
Competition for skilled tradesmen
• LNG projects offering better conditions• LNG projects offering better conditions
Aligning corporate cultures and attitude to risk
• Power industry versus Oil/Gas industry (storage)
• Different business models
Lessons Learnt - Australian Policy Scene
Federally
• Carbon Tax imminent
• Long term driver for CCS - 2030 and beyond
• Additional support required in short term
• CCS Flagship Program; $1.68 billion
States
• Regulatory approvals; safety & environmental
• Legislation/regulations for CCS at various stages of
development
Stage 1 – Callide A
• Exempted from development approval under local
Government Planning Scheme – not deemed to be a
material change of use
• Amendments proposed to existing Callide A
environmental authority
� Vented gas streams from CO2 CPU
� Condensates from flue gas scrubber columns
� Define additional release points and monitoring
Permitting
� Define additional release points and monitoring
regime
Stage 2 – CO2 road transport
• Carbon Dioxide (CO2) is a Dangerous Good (Class 2.2)
under the Queensland Transport Act
Stage 2 – CO2 storage
• Greenhouse Gas Storage Act 2009 (QLD)
• Greenhouse Gas Storage Regulation 2010 (QLD)
• Environmental Protection Act 1994 (QLD
Lessons Learnt - Australian Policy Scene
Community attitude
• CCS generally; mixed but suspicious to hostile
• CSG activity
• Callide oxy-fuel plant; local Biloela community broadly
aware, interested & supportive
• Surat Basin (Qld); land use & resource conflicts• Surat Basin (Qld); land use & resource conflicts
• Oil/gas production
• Prime agricultural land
• Great Artesian Basin
• Media campaigns by green groups
• Lots of angry farmers!!
CO2 storage potential
Storage volumes (based on current
production):
• East coast – 70 years
• West coast > 200 years
• CO2 storage capacity of gas and oil fields is
~ 16.5 giga tonnes
(Source: National Low Emissions Coal
Council)
Queensland Government:
Carbon Geo-storage Initiative (CGI)
Potential CO2 storage tenements
Callide A
EPQ7
(CTSCo Pty Ltd)
Scale: 0 – 108 km
Lessons Learnt – Policy/Regulatory
Politics of geological storage is setting the timetable
• Lack of political will in the face of community resistance
• Greatest technical uncertainties
• New and therefore unknown
• Callide Project unlikely to secure storage site in the
currently envisaged operation period currently envisaged operation period
Need for effective community engagement
Concluding comments
1. ASU and Oxy-fuel plant are now in commissioning phase; the CO2 capture
plant is under construction.
2. Budget limitations , first-of-a-kind issues, and major CSG developments in
Queensland have resulted in a very difficult contracting environment.
3. An EPCM and alliance type contracting approach has resulted in good
budget control but schedule control has been somewhat problematic.
4. The implementation of CO2 capture is much further advanced than CO2
storage in the Australia (globally?).
5. Challenge: How to maintain the enthusiasm of project proponents and
equipment suppliers during the hiatus while storage is developed.
Callide A Unit 4 - Original
17
Callide A Unit 4 – After Retrofit
18 18
Oxygen plant CO2 capture plant
ASU and CO2 Capture Plant
Callide Oxy-fuel Project Participants
Thank you
for more information: www.callideoxyfuel.com