CO2 for EOR in the North Sea (CENS)
Present Status & Future Roadmap
Presentation by
Carl-W. Hustad, President & CEO
CO2-Global AS, Norway
CO2 Emissions Reduction Strategies for the Power Industry
13-14th September 2007, Berlin, Germany.
“A company focused on developing projects,
technology and commercial solutions for
handling CO2-emissions
in the 21st Century”
www.co2-global.com
Early Storage Concepts (1998 – 1999)
Image from “Options for Establishing a North Sea Geological
Storage Hub” by Tony Espie, BP Amoco Exploration.
Presented at GHGT-5, Cairns, 2000.
Early Infrastructure Concepts (1999)
Image taken from work by Torleif Holt
& Erik Lindeberg, SINTEF (1999).
From “The Norwegian CO2 Infrastructure Initiative: A Feasibility Study”
by Hustad, CO2-Norway AS. Presented at GHGT-5, Cairns, 2000.
Snøhvit
CENS Project (2001-2004)
CO2 - EOR in the North Sea
• Potential delivery of
CO2 for EOR through
infrastructure at cost
of ~ $35 /tCO2.
• Screening of the
most mature EOR
fields indicated potential of > 30 mtCO2/yr
for +20 year period.
• A combination of
pipelines and ship
transportation
enhanced flexibility
and economics for
initial EOR projects.
† Designated fields were
“potential” CO2-floods.
Draugen
Potential CO2 for EOR fields
CO2-sources
Brent
Tampen
Gullfaks
Area
Ninian
Mongstad
Brage
Claymore
Brae
Forties
Grane Kårstø
CO2-hub
Sleipner
Herøya
Fulmar
Ekofisk
Billingham
Dan/Gorm
Esbjerg
CO2-hub
Pernis
Antwerp
Brunsbüttel
Barriers to Implementation
Why has CO2-EOR not yet been adopted in the North
Sea given it is so successful in other places?
• There are still no offshore CO2-EOR floods in operation
– There is still no guaranteed supply
– Equipment space on platforms is limited and expensive
• Geology is different from the Permian Basin.
– Reservoirs need to be considered on an individual basis
– Very limited scope for patterned injector / producers
• If operators showed an interest then political pressure
to move ahead would increase significantly.
• Despite good chance of “up side” this remains a highrisk business development prospect.
Present Status - 1
Where is the CO2 business today ….
• Climate-Change is for real!
– 18-months ago there was still a scientific debate
– 9-months ago US public opinion was not onboard
– Non-commitment of the USA is no-longer the issue!
• Market is already evolving
– Credit-trading is already a $30 billion market
– Post-2008 credits are targeting ~$20 per ton
– Commodity CO2 has a $20-$30 per ton price
Present Status - 2
But ….
• Need to identify fundamentals!
– There are projects being considered that will never happen!
– There are market developments that are typical of an immature
and start-up industry;
• Large uncertainty regarding project and corporate valuation.
• Regulators have yet to seriously arrive on the scene.
• Incentive mechanisms are still mostly “sweat” and high-risk.
• Taxation is still partially promoting “old” solutions.
• Media and PR is probably slightly hyper!
– There will be a technology shakeout in next 1 – 3 years.
– Health Warning: Investors (and taxpayer) beware!
Future Roadmap: CENS Phase-1
Early Projects (2011 – 2014)
Tampen
Mongstad
Kårstø
Peterhead
Forties
Risavika
Sleipner
Progressive
Esbjerg
Hatfield
Rotterdam
Future Roadmap: CENS Phase-2
Interconnections (2014 – 2020)
Tampen
Mongstad
Kårstø
Peterhead
Grenland
Forties
Sleipner
Grangemouth
Ekofisk
Teeside
Denmark
Humberside
BeNeLux
Future Roadmap: CENS Phase-3
System Looping (2020 – 2030)
Tampen
Mongstad
Kårstø
Peterhead
East Norway
Forties
Sleipner
Grangemouth
Ekofisk
Teeside
Sweden
Denmark
Humberside
North European Mainland
Concluding Remarks
• There are still significant barriers before investment
in CCS Demonstration Projects can be made.
– The power plants need to be of such size as to provide
sufficient volumes of CO2 to specific EOR fields.
– Transportation infrastructure needs to come into place.
• The established oil majors are still not comfortable
with the overall economics and risk of CO2-EOR.
– Need to have security of CO2 supply.
– Long “lead time” is a major economic concern.
– Handling recycled CO2 offshore is an extra complexity.
• Both industry and government appear to be
motivated to seek constructive solutions.
– Distribution of risk and “burden sharing” are key issues.