Regional Carbon Sequestration Partnerships…

“Pathways to SustainableUse of Fossil Energy”

Portfolio Overview – FY2004

Diverse research portfolio

Strong industry support

~ 36% cost share

Total portfolio ~ $140M

Fiscal Year

0

10

20

30

40

50

60

70

1997 1998 1999 2000 2001 2002 2003 2004 2005

Bu

dg

et (

Mil

lio

n $

)

BreakthroughConcepts

MMV

Non-CO2

Capture

Sequestration

Regional Partnerships

Baseline region for sources and sinks

Address regulatory, environmental, outreach issues

Establish monitoring and verification protocols

Validating sequestration technology & infrastructure Phase 1 – Planning

Phase 2 – Proof of Concepts

Determine benefits of sequestration to region

Regional Carbon Sequestration Partnerships Developing Infrastructure for Wide-Scale Deployment

These partnerships - 4 to 10 across the country, each made up of private industry, universities, and state and local governments - will become the centerpiece of our sequestration program. They will help us determine the technologies, regulations, and infrastructure that are best suited for specific regions of the country.

Energy Secretary Spencer AbrahamNovember 21, 2002

Break-through

Concepts

Measurement, Monitoring & Verification

Non-CO2 GHG

Mitigation

Sequestration

Capture of CO2

Partnerships Are Critical Program Component…

IntegrationFutureGen

Integrated Sequestration and Hydrogen Initiative

Infrastructure

Regional Partnerships

Core R&D

Project Development Operation

2002 2004 20082006 2010

CY

Program Component Relationships in Time…

Phase 1 Phase 2

Regional PartnershipsR&D Advances

Geologic Sink Oppor-tunities

Deploy-mentOppor-tunities

MMV ProtocolsMMV & Capture Technologies

Permitting, Safety, Regulatory, Outreach

FutureGen

2012

Major Sequestration Issues…

Health, safety, and environmental risks

Permanence and large-scale verification

Capacity evaluation

Infrastructure

Uncertain regulatory frameworks

Protocols for identifying amenable storage sites

Direct CO2 storage

Enhanced natural sinks

Requirements for Sequestration:

Environmentally acceptable No legacy for future generations Respect existing ecosystems

Safe No sudden large-scale CO2

discharges

Verifiable Ability to verify amount of CO2

sequestered

Economically viable

Sequestration

Field experiments / demos Protocols for identifying

amenable storage sites Capacity evaluation studies Underlying science

Issues: Health, safety, and environmental risks Uncertain regulatory framework Site selection

Pathways:

40 States 154 Organizations 3 Indian Nations 2 Provinces

Seven Regional PartnershipsNetwork of Partnerships to Determine Technologies, Regulations, Infrastructure Needs for Each Region

Big SkyBig Sky

South- west

South- west

PlainsPlains

West CoastWest Coast Midwest

Southeast

IllinoisBasin

IllinoisBasin

Partnership Program has a Two-Phased Approach…

Current Phase I (Planning) 7 Projects 18-24 months ~$1.5 million per project Overall ~ 40% cost share 2 exceed 50% cost share

Proposed Phase II (Proof-of-Concepts)

- about 8 years duration - up to about $4 million/year-project - 20% cost share (minimum)

Regional Carbon Sequestration Atlases

Regional Sequestration options, potential, and prioritization (direct and/or indirect)

Sources of CO2

Existing infrastructure and requirements

Incorporate Regional Atlases into National Repository

Courtesy of Tim Carr, KGS, MIDCARB (now NATCARB) Project

Phase I Outcomes…

Action Plan for Regulatory Compliance

Existing or future regulations that will impact sequestration program

Identify risk assessment and liability issues

Timeline for permitting regional projects

MMV and Reporting Requirements

Responsibilities

Action Plan for Public Outreach and Education

Methods to engage the public

Tools to educate stakeholders

Regulatory requirements for public outreach

Phase I Outcomes…

Regional Project Implementation Plan(s)

Phase I Outcomes Form Basis of Phase II Concept…

Cost/benefit analysis to support project

Public Education and Outreach Action Plan(s)

Regulatory Compliance Action Plan(s) MMV Project Requirements

Identify the most promising technologies/ approaches to sequester carbon directly or indirectly and/or capture carbon in the region

Phase II of Regional Partnerships NB: Details Still Under Development

Tasks Perform proof-of-concept field tests for

technology & infrastructure concepts Establish, implement, and refine:

Measurement, monitoring & verification protocols Accounting, regulatory & liability action plans

Continue characterization efforts Implement outreach mechanisms Assessment of regional feasibility and

integration of components

Not a technology development program!Not a technology development program!

General Phase II Characteristics… Scale: Dependent upon FY05 appropriations; current

planning is for each selected Partnership to be funded at about $4M/year, but subject to actual appropriations and other programmatic considerations.

Cost Share: As the contractual instrument will most likely be Financial Assistance (Cooperative Agreement), there will be a cost share requirement as there was in Phase I; anticipated to be at least 20% but not finalized as of this time.

Duration: Expected to be on order of about 8 years; subject to budgets, programmatic needs, and other considerations.

Not a “more study” focus; Focus on implementing plans; drilling and other tangible efforts expected.

Draft Phase II RFP…

At this point in time, the actual details of the RFP in terms of required tasks, specifications, and evaluation criteria have not been finalized; RFP is currently a work in progress…

…having said that: RFP anticipated to be issued January 2005 Applications anticipated to be due to DOE-NETL in

March-April 2005 timeframe Selections and Awards are planned to be made by

the end of FY05 (August-September 2005)

Details to Follow

Stay Tuned…

Visit the NETL Sequestration Website…www.netl.doe.gov/coal/Carbon%20Sequestration/

Carbon Sequestration E-mail Newsletter