GLOBAL CCS INSTITUTEROTTERDAM9 MAY 2011

SCHIEDAM (ROTTERDAM)GRANDPARENTS BORN HERE

SCHIPLUIDEN (NEAR ROTTERDAM)WHERE MY FATHER WAS BORN

BROKEN HILLWHERE I WAS BORN

BUNBURYWHERE I LIVE AND WORK

PART OF THE EMISSION SOLUTION

COLLIE HUB PARTNERS DEPARTMENT OF MINES AND PETROLEUM• PERDAMAN CHEMICALS AND FERTILISERS• VERVE ENERGY• GRIFFIN ENERGY• WESFARMERS PREMIER COAL• BHP BILLITON WORSLEY ALUMINA• ALCOA AUSTRALIA• RESEARCH PARTNERSHIP:

• WA:ERA (Western Australian Energy Research Alliance) a collaborative arrangement between UWA, Curtin University and the CSIRO

HARVEY RIDGEMANDURAH TERRACE

THE CONCEPTCOLLIE HUB• Integrated industrial CO2

geosequestration system• Storage within an

identified area• Red mud sequestration

300,000 + tpa (Alcoa)• 2.4 mtpa Perdaman

CO2• Potential for up to 7

mtpa for future power generation

LOCATION MAP

FaultAnticli

neTransfer

Fault20 km

32o00’

33o00’

115o00’ 116o00’

BUSSELTON

YILGARN CRATON

Study Area

LEGEND

N

LOWER LESUEUR REGION

Mapped Area

Storage Goals:• Maximum injection rate of 10 Mt/a

• Up to 260 Mt total in 40 years

LOCATION OF SEISMIC AND WELL DATA

13

• Seismic data good to poor

• Darling Fault interpreted with gravity data

• Wells drilled in the 60’s and 70’s, except Rockingham-1 from the 80’s

• Seismic data quality varies from good to poor – some lines show very low signal to noise ratio

• Seismic data does not really cover Darling Fault. The fault is interpreted using gravity data

• Wells drilled in the 60’s and 70’s, except Rockingham-1 that was drilled in the 80’s

• Well log suites available were often incomplete (with limited density & neutron coverage)

20 km NDar

ling

Faul

t

Fault

2D Seismic

LEGEND

Static Model Boundary

Well

Dynamic Model

Boundary

• Dynamic model area:

• less faults• deeper injection

horizons

surface injection

YarragadeeYarragadeeLeederville Aquifer

> 2k

m th

ick

Cockleshell Gully

Upper Lesueur

Lower Lesueur

Sabina Fm

Inject at ~ 3km

Primary Migration

Secondary Percolation

Immobilized CO2

LOWER LESUEUR STORAGE CONCEPT

PROJECT ATTRACTIONS Multiuser CO2 Hub with significant

commitments from members Phased development and funding

requirements help manage technical & commercial risks

Proven commercial development structures, contracts and regulatory framework

Economic outcomes justify investment with appropriate CCS Flagship Funding

Key risks identified and are manageable

RESIDUE CARBONATION

Residue Carbonation involves the addition of CO2 to thickened Residue slurry • Sodium hydroxide is converted to carbonate• Alumina is precipitated as sodium alumino carbonate• CO2 reaction with the solids (conversion of residual lime to calcite

and conversion of TCA to calcite and gibbsite)• Overall result is a lowering of pH of the residue

Very good fit with the current process compared to other neutralisation options • Doesn’t introduce impurities, so closed water circuit can be

maintained• Utilises a waste product (CO2) to treat the residue• Provides a permanent sink for CO2

CO2 storage and vaporiser units

CO2 mixing tanks

Carbon Capture plant at Kwinana: Full Scale

Kwinana carbon capture plant

LESSONS LEARNT - HUB You have to be naive to attempt it Set common goals early

A step change to CO2 emissions for coal users! Give a future for the coal industry Allow long-term decision-making

Everything takes longer than anticipated Legal Contractual Differing cultural/legal approaches Changes in members circumstances can affect the group

Competitors can work together for common benefits

LESSONS LEARNT - HUB In developing the concept, no transport or storage

operators – getting the objectives right is more important than the technicalities of operating

Consider others that can benefit the project (and benefit from the project)

No-one likes spending money Government understands funding not finance Government as facilitator and regulator – look at how

role transitions Decision stages are important for investment, but

work needs to happen in parallel Risk assessment needs to include financial

LESSONS LEARNT - HUB

• Clearly define coal’s role(I utilise the Blue Map and discuss the 19% role of CCS)

• Other industries will put coal down (coal v gas), forgetting that they will be targeted next

• A lot of discussion will revert to renewables such as solar and wind

• Be persistent

LESSONS LEARNT – STORAGE

Commence data collection early (processing can take six to nine months)

Oil and gas industry has technical expertise

BUT different investment criteria to power and production industries

Extension of definition of “pre-competitive” (role of Government)

Even the “experts” are uncertain about unconventional trapping mechanisms

BENEFIT BY LOOKING OUTSIDE

• Look for connections

• Look externally• Look

internationally(Collie Hub has more

in common with the Rotterdam proposal than projects in Australia)

INDUSTRY

• Work with industry• Government working

with industry• Top down policy and

directives do not work• Industry has to inform

its workforce

LOCAL PRESENCE• Local presence

is important• Being available

to speak to anyone at anytime is important

• No local surprises

HARVEY RIDGEMANDURAH TERRACE

LanguageIs

Important

COMPETITORS WORKINGTOGETHER

• Competitors can work together to benefit their industry

• Convincing your children of the environmental benefits is the hardest task

Thank you