1. Dr Dennis R VAN PUYVELDE Technical and International Project Manager Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) Onshore storage and monitoring: the Otway Basin Project International Workshop on Power Generation with Carbon Capture and Storage 22-23 January 2008 Ashok Hotel Delhi © CO2CRC. All rights reserved.

2. Project Description Site Selection Monitoring & Verification Atmospheric monitoring Geochemical monitoring Geophysical monitoring Naylor 1 assemble Conclusion Presentation Outline

3. CO2CRC Otway Project

4. Otway Project Goals Contribute towards CO2CRC Vision and Mission. –Demonstrate that CCS is technically feasible and environmentally safe. –Facilitate research into new monitoring technologies –Offer opportunities for trial and experimentation thereby supporting education/training in greenhouse gas technologies Specifically demonstrate to the satisfaction of stakeholders that –CO 2 can be safely produced, transported and injected into the sub-surface –CO 2 can be safely stored –Subsurface behaviour of the injected CO 2 can be effectively modeled and monitored –Storage Volume can be verified as far as possible –Build public support for CCS as a mitigation mechanism

5. Project Location

6. A source of carbon dioxide Oil and gas tenements available at an affordable price Large amount of exploration and production data Infrastructure in place Gas had demonstrably been trapped for a long time Community familiar with the oil industry (plus and minus) Logistically accessible Adequate storage capacity & favourable geology © CO2CRC. All rights reserved. What were factors that led to the choice of the Otway Project site?

7. Reservoir Modelling & Simulation Objectives: To address risk in the inherent uncertainty of reservoir heterogeneity To assess likely flow behaviour of any injected CO2 How to reduce uncertainties? CRC-1 findings (cores & logs) to refine the reservoir modeling & simulation Other data (i.e. seismics) How to be sure? Reservoir modeling & simulation peer-reviewed = certification of injection plan Results from reservoir modeling & simulation to be confirmed by M&V

8. March 2008 Dec. 2008 Dec. 2010 Simulation Results: CO 2 in Cross-sectional View CO 2 arrival CO 2 around CRC-1 CO 2 in Naylor-1 Injection @ 3 MMscf/d Breakthrough 6-8 months Up 100,000 tonnes of CO 2 to be injected Gas mixture from Buttress-1 is to be injected (78.8 mol% CO 2 ) Dissolution, residual trapping, diffusion are considered in model

9. Monitoring and Verification is a key part of CCS lateral migration Injected Carbon Dioxide Surface Ecosystems Confining Layer(s) Saline Water Atmosphere buoyant vertical migration localised seepage Hydrology Geochemistry Soil gas Atmospheric Assurance Monitoring Storage Integrity Monitoring Remote Geophysics Geochemical Sampling Seal

10. M&V activities for Otway Project ActivitiesPre-injectionDuring inj. (16 months)Post Injection Static & Dynamic ModelingYes (updated & peer-reviewed)To be updatedNo Geomechanical ModelingYes (updated with CRC-1 data)To be updatedNo Risk AssessmentQRA 1 & 2QRA 3 & 4QRA 5 Atmospheric Monitoring Lo Flo/ Flux Tower Flask sampling CO2 sniffers Continuous Once/ month Not installed Continuous Once/month Continuous Twice a year Continuous Surface Monitoring Water levels Water chemistry Soil gas Headspace gas Continuous Twice a year 4 trips 1 trip Continuous Twice a year Once/year 4 times Continuous Twice  once/yr One/year  No Twice a year Downhole Geochemistry Monitoring U-tube (*3) P/T measurements (CRC-1 & Naylor-1) Once Continuous Once/week to breakthrough Continuous TBD  No TBD Geophysics 3D surface seismic VSPs (CRC-1 & Naylor-1) HRTT Microseismic Logging (CRC-1 & Naylor-1) One survey Continuous Once Periodically for Naylor-1 TBD Continuous No Once Periodically (N1) No Continuous Once

11. Sampling Flux Tower & Lo-Flo Tower Flask sampling Continuous in situ air and soil flux sampling (CO 2 sniffers) Results Large pre-existing background variation in CO 2 + other gases’ concentrations (Lo-Flo measurements + flask samples) Emissions from CO 2 storage: likely to be small Leakage of stored CO 2 could be discriminated isotopically ( 13 C) 3 ppm elevation of CO 2 detected during CRC-1 drilling operation Atmospheric Monitoring

12. Towards CRC-1 site Flux Tower Air Monitoring (Lo Flo & Flux Tower) Lo-Flo & air monitoring centre Atmospheric Monitoring

13. Groundwater/Gas Monitoring Groundwater level measurements: Dataloggers installed in Feb 07 and downloaded twice per year until 2010 Groundwater chemistry: –Characterisation of the shallow waters: low salinity, pH neutral, Na-Ca-HCO 3 -Cl composition –Frequency: once per year until 2010 4 baseline soil gas trips completed –Frequency: once per year until 2010 Head Space Gas Survey –Presence, concentration and distribution of gases (including CO 2 ) within selected boreholes –One baseline trip undertaken, 4 time per year until 2010 Downhole sampling Tracers plan finalised (Kr, CD 4, SF 6 ) Downhole Geochemical Monitoring (U-tube) Geochemical Monitoring

15. Geophysical Monitoring Techniques –3D Surface seismic –3D Vertical seismic profiling (Naylor-1 & CRC-1) –High Resolution Travel Time (Naylor-1) –Continuous microseismic Seismic tested Baseline seismic completed by Feb 2008

16. Patch 2.375” ID; 27’ long 2028-2035 m Rod 0.75” O.D. 2040 m Depth Casing 2.9” I.D. 80 o C 17 MPa (2500psi) 2055 m 2050 m 2045 m 2030 m 2025 m 2020 m Bottom hole assembly Naylor 1 Total Depth: 2060 m Perf Packer Geophone with clamp (1.125 V - 1.5”? 3C) Hydrophone (1.25”) Pressure/Temp and U-tube Inlet Integrated Sonde Gas Water Integrated monitoring assembly 3 geophones, 3 hydrophones and 2 P/T sensors below the packer 3 U-Tubes: – In the gas, below GWC, Water 3 three-component geophones above the packer An array of 8 single component geophones above these

17. Down hole seismic and U-tube sampling successfully installed & tested by LBNL and CO2CRC researchers in Oct 07. Inlet gas processing equipment is now on site. We will soon be completing pipeline constructions. Long term liability issues resolved. Expect to start injection in March 2008. CO2CRC Otway Project – Summary

18. CO2CRC Project OPERATIONS –CRC-1 successfully drilled (Feb 2007) –Downhole geochemical and geophysical assembly installed and tested at Naylor 1 –Surface plant currently under construction (to be commissioned in Feb 2008) –Pipeline to be installed by end Jan –Expect to start injection in March 2008 SCIENCE –Baseline monitoring studies completed by Feb 2008 APPROVALS –All regulatory approvals granted –CPPL approval to start injection –Long term liability issues resolved –Landowner issues resolved

19. Industry Contributors: OBPP Financial contributors Research Contributors: Government Contributors:

20. ACKNOWLEDGEMENTS Dr Sandeep Sharma Dr Peter Cook Dr Thomas Berly CO2CRC Otway Researchers Information - www.co2crc.com.auwww.co2crc.com.au - dvanpuyvelde@co2crc.com.au