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