1. CO 2 Sequestration Options for California Larry Myer WESTCARB Technical Director California Energy Commission (916) 551-1873; larry.myer@ucop.edu ETAAC Subcomitttee May 10, 2007

2. 2 Outline  Introduction to CO 2 sequestration  Geologic sequestration –Technology description –Risks, costs, monitoring  WESTCARB –Results for California –Phase II status –Role of CEC in Phase III

3. 3 Terrestrial and Geologic Sequestration are Both Options  Terrestrial: Sequestration of carbon by natural processes in forests, plants, and soil; CO 2 source independent  Geologic: Sequestration of CO 2 in deep saline formations, oil and gas reservoirs and coal-beds; requires industrial processes to capture at source and transport via pipeline  Technology for both options is available and being implemented

4. 4 Advantages and Disadvantages of Sequestration Options  Terrestrial sequestration is low cost and has environmental co-benefits, but capacity and storage life are limited compared to geologic option  Geologic sequestration offers large capacity and potential permanence, but capture costs are high and assurance of no adverse environmental impacts is required

5. 5 Geologic Storage Mechanisms  Physical, hydrodynamic, trapping  Dissolution  Phase trapping  Mineralization  Surface adsorption

6. 6 Primary Storage Options  Oil and gas reservoirs –Storage with Enhanced Oil Recovery (EOR), Enhanced Gas Recovery (EGR) –Storage only  Deep, unminable coal beds –Storage with Enhanced Coal Bed Methane (ECBM) recovery  Saline formations –Storage only

7. 7 Geologic Sequestration Is Already Under Way  Statoil injects 1x10 6 tons per year at Sleipner  BP to inject 0.8x10 6 tons per year at In Salah  EnCana EOR project with CO 2 storage in the Weyburn field

8. 8 International Consensus on Geologic Sequestration Issues Provided by IPCC Report “ With appropriate site selection informed by available subsurface information, a monitoring program to detect problems, a regulatory system, and the appropriate use of remediation methods to stop or control CO 2 releases if they arise, the local health, safety, and environment risks of geological storage would be comparable to risks of current activities such as natural gas storage, EOR, and deep underground disposal of acid gas.”  Availability of sinks, capacity  Technology readiness  Costs  Risks  Monitoring  Remediation IPCC, 2005

9. 9 Many Lines of Evidence Indicate Storage Can Be Safe and Secure  Natural analogues –Oil and gas –CO 2 formations  Industrial analogues –Natural gas storage –CO 2 EOR –Liquid waste disposal  Monitoring existing projects –Sleipner –Weyburn Location of Natural Gas Storage Projects in the U.S.

10. 10 Monitoring will be a Key Element of Geologic Sequestration Projects  The oil and gas industry has developed highly sophisticated geophysical technologies which are directly applicable to geologic sequestration  Additional approaches should, and are, being developed  Monitoring requirements have not been established, but monitoring over the operational life of a geologic sequestration project using current technology would cost only ~$0.10/ton CO 2

11. 11 Potential Release Pathways and Remediation Measures (IPCC Special Report on CCS)

12. 12 WESTCARB: West Coast Regional Carbon Sequestration Partnership  Opportunities for terrestrial and geologic CO 2 storage are being evaluated  Over 70 participating organizations  Phase I (complete): focus on regional assessments  Phase II (underway): focus on pilot studies  Phase III (coming): pre- commercial geologic field test Midwest Southeast Illin ois Basi n Southwest West Coast Plains Big Sky

13. 13 Afforestation and Fuel Management are Major Terrestrial Opportunities in California 40 year sequestration potential 40 year marginal costs Lands suitable for fuel removal

14. 14 Major Geologic Storage Opportunities in California Gas reservoir capacity: 1.7Gt Oil reservoir capacity: 3.6Gt

15. 15 Supply Curves for Geologic Storage Improve Cost Estimates  CO 2 source characterization  Capture cost estimation (about 80% of total cost)  CO 2 storage capacity estimation  Transportation cost estimation  Source-sink matching Matching sources to sinks (From H. Herzog, MIT) Marginal Cost Curve for California, Current Conditions

16. 16 California Afforestation Supply Curve

17. 17 Pilots Planned in Arizona, California, Oregon, and Washington  Pilots are representative of best sequestration options, unique technologies and approaches, in region  Pilots involve site-specific focus for –Testing technologies –Assessing capacity –Defining costs –Assessing leakage risks –Gauging public acceptance –Testing regulatory requirements –Validating monitoring methods

18. 18 Rosetta Resources CO 2 Storage Pilot  Lead industrial partner: Rosetta Resources  Validate sequestration potential of California Central Valley sediments  Test CO 2 Storage Enhanced Gas Recovery  Inject about 2000 tons at about 3400ft depth  Focus on monitoring

19. 19 Shasta County (CA) Terrestrial Pilot  Validation of forest growth type for rangelands  Develop and test fuel management activities; baselines and measurement and monitoring  Validate emissions reductions from conservation and sustainable forest management practices

20. 20 Results Inform Current Policy Decisions  AB 1925 requires Energy Commission to prepare a report to Legislature on “recommendations for how the state can develop parameters to accelerate the adoption of cost-effective geologic sequestration strategies for the long-term management of industrial carbon dioxide”  AB 32 –Requires statewide GHG emissions be reduced to 1990 levels by 2020 (target specified in Executive Order S-3-05 –Electricity generated out of state “counts” in state total –Authorizes market-based compliance mechanisms

21. 21 WESTCARB Phase III  10 year effort, beginning Oct 2007  Pre-commercial projects of scale – up to 1x10 6 tons CO 2 sequestered per year  Focus on geologic sequestration  Significant interest expressed by several companies in California Department of Energy Advances Commercialization of Climate Change Technology DOE to Provide Over $450 Million to Support the Deployment of Carbon Sequestration Technologies in North America (Oct 31, 2006 DOE Fossil Energy Techline)

22. 22 Summary  The technological tools needed to carry out large scale CO2 sequestration are available  Results of WESTCARB Phase I show major opportunities in California in terrestrial and geologic sequestration  Field work in WESTCARB Phase II expected to commence by year-end for4 of 5 pilots  Results are proving timely for CA policy on GHG mitigation