1. 1 Dr (Prof) A D Surridge Head: South African Centre for Carbon Capture and Storage Senior Manager: South African National Energy Research Institute www.sacccs.org.za

2. 2 South African Energy Chain Main End Use – Electricity and Liquid Fuels 2 SUPPLY TRANSFORMTRANSPORTEND USE Oil Natural Gas Coal Gas Electricity Eskom and Others Coal PetroSA Export Sasol Road/Rail Pipeline Oil Refineries Rail Road Pipeline Liquid Fuels Biomass Wood Person/Road Hydro Nuclear Transmission Wires “Washery” Koeberg Sasol

3. 3 Fossil Fuel Road Maps Coal Road Map Joint Project – DoE and SA Industry Phase I Ready for Release Phase Final – Scheduled Mid-2012 Liquid Fuels R&D Road Map SANEDI Internal Framework Study Underway Scheduled mid-2012 Gas Road R&D Map SANEDI Internal Framework Study Underway Scheduled mid-2012 Road Maps include an R&D gaps analysis to indicate where development is needed Coal is generally known - Oil/Gas unclear

4. 4 South Africa Carbon Dioxide Emissions Projection

5. 5 Energy & Environment CCS is a Flagship Programme of the National Climate Change Response White Paper

6. 6 Principle  Extract Carbon Dioxide from Fossil Fuel Use Electricity Generation Stations [~12% CO 2 ] Synthetic Fuel Plants [~95% CO 2 ] etc  Inject Carbon Dioxide back into Geological Formations [from whence the fossil fuel came] Depleted Oil and Gas Fields Deep Saline Aquifers

7. 7 Four Stages SOURCE: CO2CRC/IEAGHG

8. Stored Deep >800m Cap-Rock Porous Storage-Rock Surface SOURCE: CO2CRC/IEAGHG

9. 9 Permanency  Permanency Stages of Trapped CO 2 : Structural Trapping  Overlaying cap rock Residual Trapping  Tiny pores in rock – capillary pressure of water Solubility Trapping  Dissolve in saline water Mineral Trapping  React chemically with surrounding rocks – become part of rock INCREASING PERMANENCY

10. 10 Geological Storage StatoilHydro

11. 11 Permanency - Sleipner StatoilHydro

12. 12 World Projects SOURCE: CO2CRC/IEAGHG

13. 13 Technology Development It is not a question as to whether the technology works We know it works Been operating at many sites for decades It is a scale-up issue Integrity of Storage Site

14. 14 South African Centre for Carbon Capture & Storage Established 30Mar09 Core Parties Participants coal

15. 15 Charter Signing 27Mar09 Minister Sonjica Presiding

16. 16 2004: CCS Potential - Done 2010: Carbon Atlas - Launched by Minister Oct2010 2016: Test Injection - Planned [10s thousands tonnes] 2020: Integrated Demonstration Plant - Planned [100s thousands tonnes] 2025: Commercial Operation - Planned 2025 [millions tonnes] Time/Scale for Carbon Capture and Storage in South Africa

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19. 19 Potential for Carbon Dioxide Storage in South Africa Atlas indicated a Storage Potential: 150 Giga tonnes At an “effective level” 98% off-shore Need: 4 Giga tonnes To store 40 million tonnes For 100 years

20. 20 Projects Currently Underway Scoping Study for Test Injection Regulatory Requirements for Test Injection [Europe Aid/SACCCS Funded] Zululand Basin Storage Potential [UK Funded] Algoa Basin Storage Potential [Europe Aid/SACCCS Funded] Geological Modelling of Storage Sites [Europe Aid/SACCCS funded] Financial Opportunities for CCS in South Africa [Europe Aid/SACCCS funded] Public Outreach Determination [World Bank Funded] Definition of “Capture Readiness” Determination Capacity Building: Five post-graduate bursaries Post-primary Schools Science Expo Joint Industry Project – Techno-Economic Study [SACCCS/World Bank] Collateral Benefits – Job Creation/preservation, industry development [CSLF] CCS Week [SACCCSA/CSLF] The Department of Energy: Developing a Carbon Capture and Storage Regulatory Framework [World bank Funding]

21. 21 Critical Paths for Test Injection Regulatory Requirements Scoping Study Zululand Basin Potential Algoa basin Potential Test Injection Business Plan Storage Modelling Site selection 201120122013201420152016 Permitting I & II III I & II III I & II Financed Not Financed [exploration/drilling/Test Injection]

22. 22 Paradigm Change To Date: Low Cost Low Liability Forward: High Cost High Liability

23. 23 SUMMARY 201220132014201520165 Yr Est Budget Carbon Capture & Storage Site Selection Business Plan PermitsBaseline &Permits Test Injection R 721 M Coal Road MapRoad Map Phase I Road Map Phase II [R200k] Clean Coal Tech CCTCCT Chair CCT R&D I CCT R&D II CCT R&D III CCT R&D IV R 144M OilOil R&D Road Map Oil R&D I Oil R&D II Oil R&D III Oil R&D IV R 23M5 GasGas R&D Road Map Gas R&D I Gas R&D II Gas R&D III Gas R&D IV R 23M5 Over-Arching Outputs

24. 24 Full details available at www.sacccs.org.za