Tuesday, November 27
This session provides an introduction to utilization of CO2 and includes discussions of existing utilization of CO2 by a variety of industries, including actual examples of how this is a viable commercial enterprise, presented by experts on the topic areas. Currently, only about 5% of possible CO2 EOR project sites in the US, where a miscible flood is possible, are being utilized. EOR in the USA alone could produce 110 billion barrels of oil while storing up to 24 billion tons of CO2 (roughly 12 years of US power sector CO2 emissions (NEORI)). It has been estimated that over 370 gigatonnes of storage is available world-wide in mature oil fields (EIA). It has also been estimated that oil generated from CO2 EOR is about 37% less carbon intensive than conventionally produced oil, so there is potential to provide real sequestration that utilizes existing infrastructure and can be realized in commercial settings. Operations using associated storage can address storage requirements of international agreements such as the Paris Accord.
Breakout Group Project:
Storage Owner, Bankers/Investors, Regulators, Politicians, Public, Workforce. Identify critical barriers and begin to prioritize them. Could be each technology set (Utilization, Storage, Offshore). Create two scenarios that look at a situation from several perspectives. Script a mock trial or interaction around a scenario that looks at the issue from the perspectives of Financial, Project Developer, Regulator, and Policy/Politician/Legal. Capture the issues and prioritize them, focusing on workforce, education, and commercialization (acceptance and commercial scale).
Wednesday, November 28
These three archetypes of settings are broadly similar throughout the world and provide insight into how CO2 utilization might take root throughout the world, although geographical variations on available infrastructure and governmental support are recognized. This topic will be covered in two sessions: Session 3 and Session 4. Session 3 will kick-off the discussions on the various technical challenges faced by three types of CCUS, Onshore CCS, Offshore CCS, and CCS-EOR, and will provide framework/lead-in for Session 4, which will further deepen the discussion through breakout sessions covering the three topics.
These three archetypes of settings are broadly similar throughout the world and provide insight into how CO2 utilization might take root throughout the world.
CO2 sources will be more readily available onshore, and transporting CO2 offshore will be problematic. However, storage of CO2 offshore, away from population centers, may have greater public acceptance and be more favorable in the large-scale stratigraphic units found offshore, which are physically amenable for pressure increases associated with storage. Onshore storage could leverage existing infrastructure, but may require pressure mitigation with water production wells. However, water disposal would be required. CO2 storage incidental to EOR is attractive in terms of making CO2 storage investible. But will monitoring requirements impair EOR profitability?
Thursday, November 29
This session will cover commercial and economics aspects of developing and operating CO2 storage in both saline pure storage and in EOR for additive value. In most cases, carbon capture and storage without a highly profitable use (e.g. EOR) will be non-commercial without regulatory requirements or incentives or a significant carbon price. Recently authorized 45Q tax incentives for CO2 sequestration, carbon taxes, cap-and-trade and cap-and tax approaches are examples. The session will examine ongoing and proposed commercial and pilot activities to give the attendees first hand economics insights for projects including CO2 EOR operations and CO2 storage in various reservoirs. Participants will answer the question “What will it take for CCUS to become widespread?” The "Business Model" of CCUS will be discussed including long-term monitoring and abandonments.
A number of business models have been developed for CCS and CCUS; some of which have been tried, and some of which are currently being tried (for example, EU carbon trading, US 45Q tax credits). In this session, we will discuss and experiment with the components of the business model that make storage viable, as well as the components that lead to dead ends. The goals of this session are to develop at least one business model that the participants can defend as viable, determine if there are components or several different conditions of the model that are thought to be essential or that lead to success, identify the factors that are show stoppers, and determine if agreement on these factors is strong or if opinion remains diverse, and provide outcomes to all the participants.
Friday, November 30
This final session will provide an opportunity to wrap up the forum and discuss what it will take to move the needle with some of the business scenarios and economic hurdles that should be overcome to motivate wider spread CCUS implementation. Participants will be engaged in a fun and interactive way to highlight perspectives and mindsets.