Illinois Industrial Sources CCS Project Update

Sallie E. Greenberg, Ph.D. and ICCS Project TeamUniversity of Illinois - Illinois State Geological Survey

30 April 2017 - CSLF Mid-Year MeetingAbu Dhabi, United Arab Emirates

• The Industrial Carbon Capture and Storage project is administered by the U.S. Department of Energy's Office of Fossil Energy and managed by the National Energy Technology Laboratory (award number DE-FE-0001547) and cost share agreements with ADM, ISGS, SLB, & RCC.

• The Intelligent Monitoring System Project is administered by the U.S. Department of Energy's Office of Fossil Energy and managed by the National Energy Technology Laboratory (award number DE-FE-0026517) and by cost share agreements with the ADM, LBNL, Silixa, SLB, ISGS, & RCC.

• The Midwest Geological Sequestration Consortium is funded by the U.S. Department of Energy through the National Energy Technology Laboratory via the Regional Carbon Sequestration Partnership Program (contract number DE-FC26-05NT42588)

• The MGSC is a collaboration led by the geological surveys of Illinois, Indiana, and Kentucky

Acknowledgements

A collaboration between Archer Daniels Midland Company (ADM), the Midwest Geological Sequestration Consortium, Schlumberger Carbon Services, and Richland Community College, USGS, and other subcontractors

• Inject 3-5 million tonnes of CO2from an industrial source in a deep saline reservoir to demonstrate commercial viability

• Refine monitoring systems to challenge existing technology with advanced monitoring systems to monitor stored CO2

• Establish a regional-wide economic driver and delivery system for captured CO2

• Serve as a test bed for new technology

• Reduce cost, increase efficiency

CCUS in the Illinois Basin

Total Mt Simon Storage Capacity:11 (E=0.4%) to 150 (E=5.5%) billion metric tons

• Large-scale demonstration• Volume: 1 million tonnes• Injection period: 3 years• Injection rate: 1,000 tonnes/d• Compression capacity: 1,100 tonnes/day

Contribution:• Geologic and Social Site Characterization• Reservoir Modeling and Risk Assessment• MVA Development and Engineering Design• Stakeholder Engagement

Status: • Post-injection monitoring through April 2020

Current CCUS Projects in Decatur, IL USA

Illinois Basin – Decatur Project

Illinois Industrial CCS Project

• Industrial-scale demonstration• Volume: up to 5 million tonnes• Injection period: 3 years (or longer)• Injection rate: 3,000 tons/d• Compression capacity: 2,200 tonnes/day

Contribution:• Commercial-scale up surface and subsurface• Multi-plume modeling • Class VI permitting• Regulatory MVA• Education programs

Status: • Injection Began April 7, 2017

~800 meters

North

CCS1

CCS2

VW1

VW2

GM1

GM2NSEC

Class VI permit issued Feb 2015

IMS Area

Multiple Projects Build Framework

for CCUS Research and

Commercialization

Illinois Basin -Decatur ProjectIllinois Industrial

Sources CCSIntelligent

Monitoring Systems

BEST - Brine Extraction

ADM Facility

Class VI permit issued Sep 2014

Richland Community College

Permitting of the CCS2 Well at ICCS

Permitting has been rate-limiting step for both projects

Permits for IBDP Post-injection Site Care and ICCS injection + Post-injection tied together

Project expansion due to delay in injection start ICCS Permit Timeline:

ICCS application submitted: 25 Jul 2011 Draft permit issued: 4 Apr 2014 Public hearing conducted: 21 May 2014 Public comment period ended: 31 May 2014 Final permit issued 28 Dec 2014 Hearing for major modification 13 Dec 2016 Appeal to major modification Mar 2017 Permission to inject (825,000 tonnes) 7 Apr 2017

• IBDP: Comprehensive research-and risk-based program

• IL-ICCS: targeted, regulatory focused program based on IBDP

– Note: decrease in installation density

• Monitoring perspectives:– Programs should be risk based

– Overall project de-risking may require a blend of

• Research Goals• Regulatory Requirements• Commercial Drivers

– Technique Scalability

IBDP and IL-ICCS Installations

Seismic MonitoringUSGS Site Monitoring

Mudstone Baffle Between Injection Zones

1 mm10 cm

1 mm

IBDP Injection Zone

ICCS Injection Zone

Baffle

VW1

6,863-6,863.25Porosity: 1.5%Kv: <0.01 mDKh: 4.13 mD in siltstone laminae

Zone 5

Reservoir Model and Plume Forecasting

Six different model and plume forecast summaries conducted after major data sources collected and important project milestones • Successive drilling and

logging of new wells• Core analysis and

sampling data• New seismic data

acquisition• Improvements in seismic

processing• EPA requests for plume

forecasting updates

Pre-CCS1 Drill & Pre-injection

Post-CCS1 Drill & Pre-injection

Post-CCS1 & VW1 Drill & Post-CCS1 injection

Extent of Plume & Saturation Cross SectionJanuary 1, 2013 (year 1)

S-SW N-NE

Cross Section Orientation

DPif > 86 psiSCO2 > 1.0%

Pre-Mt Simon

Eau Claire

Mt Simon C, D, E

Mudstone

Mt Simon A, B

Lower Mt Simon A

• Incremental update to previous version

• Created to update CCS2 Class VI plume forecasts

• Used final CCS2 perforation scheme

• Assumed CCS2 commence injection Jan 1 2015 at end of CCS1 injection)

Extent of Plume & Saturation Cross SectionJanuary 1, 2015 (year 3, end of CCS1 injection)

S-SW N-NE

Cross Section Orientation

DPif > 86 psiSCO2 > 1.0%

Pre-Mt Simon

Eau Claire

Mt Simon C, D, E

Mudstone

Mt Simon A, B

Lower Mt Simon A

DPif > 86 psiSCO2 > 1.0%

Extent of Plume & Saturation Cross SectionJanuary 1, 2020 (year 8, end of CCS2 injection)

S-SW N-NE

Cross Section Orientation

Pre-Mt Simon

Eau Claire

Mt Simon C, D, E

Mudstone

Mt Simon A, B

Lower Mt Simon A

Program Objectives- Develop and validate software tools that advance CCS-specific IMS by

enabling access, integration and analysis of real-time surface and subsurface data for decision-making and automation of process

- Demonstrate integration of system components to validate feasibility of real-world application to CCS.

Project Team Members

Intelligent Monitoring System (IMS)

Testbed for Existing vs. New Technology

• Seismic surveys are considered the backbone technique for CO2storage monitoring programs.

• Stringing thousands of cables and running thumper trucks every few years can test the limits of good neighbors. Costs are high.

• Permanent reservoir monitoring offers a way to obtain higher quality information with minimal intrusion into surrounding lands –

• DAS provides high spatial and temporal resolution. • Installation can be in horizontal directionally drilled boreholes beneath

bodies of water, existing infrastructure.• Excitation of DAS cables can be achieved through permanent fixed

rotary sources for continuous monitoring.

Conventional Seismic DAS Seismic

• Operational Injection - April 7, 2017

• Step rate increase of CO2 to full injection

• Slight pressure increase in deep monitoring wells

• Small trigger events, non-locatable

Illinois Industrial Sources CCS

Well Watcher pressure response to CCS2 injection

Date

ICCS Total Injected CO2

(Metric Tonnes)

(6627'-6817’)2020-2078m

VW2 IZ Zone #4

(5768')1758m

VW2 IZ Zone #3

(6458')1968m

VW2 IZ Zone #2

(6682')2037m

VW1 probe 04

(6837')2084m

VW1 probe 06

(6632')2021m

VW2Zone #1

(7041’)2146m

CCS2 DHG

(6270')1911m

6-Apr-17 0.0 2620.3 2954.4 3030.8 3117.4 3017.7 2841.47-Apr-17 2.0 2620.3 2954.5 3030.8 3117.9 3017.7 3129.4

19-Apr-17 22400.0 2620.7 2954.9 3041.3 3130.3 3027.9 3909.026-Apr-17 34626.0 2621.4 2955.3 3065.5 3133.0 3030.3 3962.3△ P (psi) 1.1 0.9 34.7 15.6 12.6 1120.9

3016

3018

3020

3022

3024

3026

3028

3030

3032

Pres

sure

(psi)

VW1 P6 at 6632 ft (2021m)

VW1 P6 at 6632 ft

3025

3030

3035

3040

3045

3050

Pres

sure

(psi)

VW2 Zone 2 at 6681 ft (2036m)

VW2 Zone 4 at 6681 ft

IBDP: 1 MT

ICCS: 3 - 5.5 MT

CarbonSAFE: >50 MT

Illinois Industrial CCS Progression

• Pre-feasibility East Basin• Feasibility Decatur• 50 million tonne Storage

Complex• Address gap in development

knowledge around large-scale carbon storage

• Validate technologies to ensure 99% storage

• Improve storage capacity estimates (± 30%) for industry investment decisions

• Validate NRAP Toolkits for storage permanence and storage efficiency

• Contribute to best practice manuals to inform future commercialization efforts

CarbonSAFE Illinois

20

Forsyth Field

ICCS/IBDP Project Areas

Creating Regional & Global Clusters for CCUS Concentration of natural resources, intellectual capital, and economic

development

Decatur

Champaign-Urbana

Mattoon

Carbondale

Fairfield,Olney, Robinson,

Mt. Carmel

• Operator Training

• Coal combustion

• Utilization of CO2 : Enhanced Oil Recovery (EOR)

• Storage of CO2: IBDP, ICCS, & CarbonSAFE Projects

• Capture of CO2 : Abbott Power Plant UIUC

Capture of CO2 from regional point sourcesLocalized CO2 storage

Transport of CO2: Regional Pipeline SystemUtilization of CO2: Engineering and Chemistry Solutions

Coal to Liquids (CTL)Workforce development

Economic growthNorth America Knowledge Sister Centers in US and Canada

What We’ve Learned:

• Carbon capture and storage from biofuel sources in deep saline reservoirs can be conducted safely

• Research and scale-up demonstration projects can lead directly to industrial-scale or commercial-scale projects

• The Mt. Simon Sandstone is a viable and important deep saline storage resource for the US

• Establishment of an MVA baseline is critical to characterize site and reduce project risk, but needs to be revisited on a regular basis

• Permitting can be time intensive and should not be underestimated as a potential project risk

• Economy of scale learnings essential to commercial CCS deployment

• Create policies and pathways– Carbon Sequestration Leadership Forum– Climate, utilization, advance technologies…– Portfolio of “next generation” policies

• Provide incentives– Business case– Tax incentives:

• Investment Credits • 45Q • Master Limited Partnerships • Privacy Activity bonds

• Develop infrastructure– Pipeline corridors – Regional capacity organizations

• Create momentum– Continued demonstration projects and scale-up– Global portfolio of projects– EOR as transitional stepping stone

Taking the Next Steps: Building on Success