the implications of ccs economics for monitoring and...
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The implications of CCS economics for
monitoring and modelling of CO2 storage
Prof. Dianne E. Wiley
Minh Ho, Peter Neal
CO2CRC Economics @ UNSW © CO2CRC
All rights reserved
Professor Dianne WileyHead, School of Chemical and Biomolecular Engineering
Combined Meeting of the IEAGHG
Modelling and Monitoring Networks
6th – 8th July 2016, Edinburgh,
Scotland
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Introduction
• Commercial and R&D CCS projects are underway
– they could not happen without MMV
BUT …
• Costs of MMV technologies are rarely reported publicly
– it is difficult to compare conventional or prospective technologies
for different projects
Source: https://www.e-
education.psu.edu/drupal6/files/meteo469/lesson11/ccs
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QUEST: Multiple domains for MMV
Source: www.slideshare.net/globalccs/shell-quest-canada
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QUEST: Multiple technologies for MMV
Source: www.slideshare.net/globalccs/shell-quest-canada
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Management cost at 15%
Post- Op enchancements
Closure - Seismic survey
Operational enhancements
Micro-seismicity
Wellhead atmospheric CO2concentrationInjection and productionratesWellhead pressure
Seismic survey
Pre-Op enhancements
Basline atmosphericmonitoringMicro seismic baseline
Pre-op Seismic survey
Injection and productionrate testingFormation pressure
Wellhead pressure
Well logs
Pre-operational MMV costs
Operational MMV costs
Post-operational MMV
General management
Breakdown of MMV costs (2004)
Saline reservoir
Adapted from: Benson et al (2004) Overview of Monitoring Requirements for Geological
Storage Projects. Report PH4-29. IEA GHG
Enhanced MMV technologies
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Previous findings on MMV costs (2004)
• Pre-operational costs
– dominated by seismic surveys
• Operational costs
– dominated (~70%) by seismic surveys and injection
monitoring
• Total project costs
– increased (~60%) by ‘enhanced’ MMV during
operation and closure periods
Adapted from: Benson et al (2004) Overview of Monitoring Requirements for Geological
Storage Projects. Report PH4-29. IEA GHG
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What do we know in
2016 about the
contribution of MMV
to CCS costs?
www.co2crc.com.au/wp-
content/uploads/2016/04/LCOE_R
eport_final_web.pdf
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What’s in the report?
• Costs of ‘building blocks’ for
CO2 transport and storage
– pipelines
– booster pumps
– wells
– platforms
– MMV
• Costs for specific Australian
case studies
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Assessing transport and storage options for
East Coast Australia
North
Queensland
South
Queensland
North NSW
South
NSW
Latrobe Valley
Surat
Galilee
Eromanga
Gippsland
Darling
Cooper
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Key points about methodology
• Total Plant Costs reported as $/CO2 injected (or transported)
– not total project costs (which include owner’s and risk adjusted
costs)
– not $/t CO2 avoided (which includes amount of CO2 generated
due to energy usage)
• Costs include
– capital costs
– operating costs (including energy for booster pumps)
– on-costs
• MMV costs cover
– 3D seismic surveys (at 5 year intervals)
– borehole seismic logging (complementary 5 year intervals)
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Cost of 3D seismic surveys
0
50
100
150
200
250
300
0 5,000 10,000
3D
seis
mic
su
rve
y c
ost
(A$ m
illio
n)
Areal extent (km2)
Onshore
0
50
100
150
200
250
300
0 5,000 10,000
3D
seis
mic
su
rve
y c
ost
(A$ m
illio
n)
Areal extent (km2)
Offshore
High cost
range
Low cost
range
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0.00
0.05
0.10
0.15
0.20
0.25
0 1,000 2,000 3,000 4,000 5,000Bo
reh
ole
seis
mic
co
st
(A$ m
illio
n p
er
log
)
Total vertical depth (m)
Cost of borehole seismic profiling
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0 20 40 60 80
Cost of T&S – selected case studies
Specific Cost of CO2 Injected (A$/t 2015)
MMV
Pipelines
Boosters
Wells
Facilities
On-costs
South Qld – Eromanga (onshore)
North Qld – Galilee (onshore)
Latrobe V. – Gippsland (offshore)
South Qld – Surat (onshore)
Short distanceHigh injectivity
Moderate distance
Hunter V. – Gippsland (offshore)
Energy cost
Long distance> 1,000 km
Adapted from: APGTAR (2015)
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Specific Cost of CO2 Injected (A$/t 2015)
Cost of storage
South Qld – Eromanga (onshore)
North Qld – Galilee (onshore)
Gippsland (offshore)
South Qld – Surat (onshore)
0 2 4 6 8
Wells
Facilities
Oncosts
MMV
Large areal extent (>30,000 km2)
Moderate areal extent (10,000 km2)
Small areal extent (2,000 km2)
Adapted from: APGTAR (2015)
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Effect of frequency and cost on MMV
Baseline
0
10
20
30
40
50
0 5 10 15
MM
V c
ost
$/y
r
Frequency of measurement (years)
Transport of CO2 from South Queensland to Surat Basin
Adapted from: APGTAR (2015)
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Cost breakdown for CCS
Transport2%
Storage~1%
Capture96%
MEA capture from USC black coal fired power plant in South Queensland with storage in Surat Basin
Adapted from: APGTAR (2015)
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Conclusions
• MMV (in $/t injected) accounts for:
– ~ 0.6% of a CCS project cost
– ~ 4% of transport & storage cost (0.1% to 20%)
– ~ 20% of storage cost (0.1% to 40%)
• MMV cost increases when
– areal extent of the reservoir increases
– a small amount of CO2 is injected over a large area
• Limited cost data for MMV technologies is available
• New MMV technologies need to be cheap, reliable
and easily deployed within regular project phases
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