Len Heckel - Shell Quest

1. PANEL 1
INTERNATIONAL PROGRESS ON CCS PROJECTS
Len Heckel – Shell Quest
Laura Miller – Summit Power
Hans Schoenmakers – ROAD

2. QUEST CCS PROJECT PROGRESS
Global CSS Institute (GCCSI)
International Members Meeting
Calgary
October 10, 2012
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Len Heckel – Quest Venture Manager

3. Quest Location
Canada
Alberta
Fort McMurray
Fort Saskatchewan
Edmonton
Calgary
Quest
Quest Progress: GCCSI International Members October 10, 2012 3
Meeting

4. General Features
Quest CCS Project - fully integrated CCS
(capture, transport & storage)
Project Approval – Sept 2012
JV among Shell (60%); Chevron (20%);
and Marathon (20%)
Located at Scotford Upgrader Complex
35% reduction of Upgrader CO 2
emissions
Uses existing technology
Capacity to capture over one million
tonnesof CO 2 per year for 25 years
Equiv to emissions from175,000 cars
Quest Progress: GCCSI International Members October 10, 2012 4
Meeting

5. Hardware
Quest CCS Project CO 2 capture plant located in Fort
Saskatchewan, approx 50 km N.E. of Edmonton
Cement
Capture at the Scotford Upgrader from 3 Hydrogen
Manufacturing Units
CO 2 transported by 12 inch pipeline to storage,
with 6 inch laterals
The pipeline will travel approx. 65 km north of the
Scotford Upgrader to the chosen injection locations
Route selected to meet stakeholder requirements: SAL SEAL
T S
 28 km follows existing ROW
SHALE SEALS
 Drilled under North Saskatchewan River TARGE FORMATION
T
 30+ re-routes to accommodate landowner wishes
 Base plan: 3 injection wells and associated monitoring
Quest Progress: GCCSI International Members October 10, 2012 5
Meeting

6. Project Approval Critical Features
Safe and secure storage complex
Capture technology fit to base facility
Degree of economic robustness
Clarity in regulatory environment
Extensive stakeholder engagement
Quest Progress: GCCSI International Members October 10, 2012 6
Meeting

7. Project Approval Critical Features
Safe and secure storage complex
Capture technology fit to base facility
Degree of economic robustness
Clarity in regulatory environment
Extensive stakeholder engagement
Quest Progress: GCCSI International Members October 10, 2012 7
Meeting

8. Storage
Saline aquifer storage
Surface
Casing
Basal Cambrian Sands (BCS) selected Cement
Intermediate
Casing
 Storage zone is a formation called Basal Cambrian Tubing
Main Injection
Casing
Sands (BCS) 2,300 m, Prairies deepest sandstone
 Multiple caprock and salt seal layers, no significant
faulting visible from wells or seismic
 The BCS is well below hydrocarbon bearing
formations and potable water zones in the region
 Relatively few wells drilled into the BCS, none within
SAL SEAL
T S
10 km of the proposed storage site Packer
Assembly
SHALE SEALS
Wells and Drilling TARGE FORMATION
T
 3 well plan, 5 more if required Perforations allow
CO 2 to penetrate
the formation
 Conventional drilling methods
 Multiple steel casings for wells, 3 in freshwater zone,
all cemented to surface
Quest Progress: GCCSI International Members October 10, 2012 8
7
Meeting

9. Geological Formation – BCS Complex
Basal Cambrian Sand (BCS)
Complex Location
Quest Progress: GCCSI International Members October 10, 2012 9
Meeting

10. Geological Formation Area of Interest (AOI)
CO2
Saturation
DeltaPKpa
 Pore space area required to ensure no pressure front
interference 10
Quest Progress: GCCSI International Members
Meeting October 10, 2012

11. MMV Framework - Containment Risk Bowtie Analysis
 CO2 Containment Loss Risk and Mitigation Diagram
 Bulls-eye hazard assessment diagram – left: possible causes; centre: event; right: consequences
Quest Progress: GCCSI International Members October 10, 2012 11
Meeting

12. Measurement, Monitoring and Verification (MMV Plan)
 Comprehensive plan developed – entire biosphere and lifecycle
 Independently (DNV) certified MMV and storage plan
Quest Progress: GCCSI International Members October 10, 2012 12
Meeting

13. Project Approval Critical Features
Safe and secure storage complex
Capture technology fit to base facility
Degree of economic robustness
Clarity in regulatory environment
Extensive stakeholder engagement
Quest Progress: GCCSI International Members October 10, 2012 13
Meeting

14. Capture Design
 Shell ADIP-X Amine process (99%+ pure CO2),1.2 MTPa capacity
 Mutlistage centrifugal compressor to 8.5 Mpa (supercritical state)
 TEG dehydration unit
Quest Progress: GCCSI International Members October 10, 2012 14
Meeting

15. Capture 3D Model – HMU 1&2
Amine
Stripper Amine
Absorbers
Compressor (HMU 1 & 2)
&
Dehydration
System
Quest Progress: GCCSI InternationalForum 2012
Quest: PTAC Clean Energy Production Members October 15, 2012
October 10, 2012 15
10
Meeting

16. Project Approval Critical Features
Safe and secure storage complex
Capture technology fit to base facility
Degree of economic robustness
Clarity in regulatory environment
Extensive stakeholder engagement
Quest Progress: GCCSI International Members October 10, 2012 16
Meeting

17. Costs/ Revenues and Funding Agreements
Total cost of Quest – Approx. Cdn$1.4 billion
 Includes Pre FID, capital and 10 years opex Cement
 Capital Ratio: 80% Capture, 10% pipeline, 10% wells
Revenues – GHG offsets (credits)
 Net amount – stored CO2, less direct and indirect emissions
 Credits to be used first by Shell’s Alberta assets for regulatory compliance
 Additional credits as early developer
Government Funding Support – Cdn$865 million
 Cdn$120 million Canadian Federal Government (Pre FID)
 Cdn$745 million Alberta Province (Construction, Startup and 10 years operation)
SAL SEAL
T S
 Extensive knowledge sharing SHALE SEALS
 Stringent monitoring (MMV) plan TARGE FORMATION
T
 NPV Zero commitment
Quest Progress: GCCSI International Members October 10, 2012 17
Meeting

18. Project Approval Critical Features
Safe and secure storage complex
Capture technology fit to base facility
Degree of economic robustness
Clarity in regulatory environment
Extensive stakeholder engagement
Quest Progress: GCCSI International Members October 10, 2012 18
Meeting

19. Regulatory Framework and Timeframe
 Provincial GHG framework established
 November 2010 – CCS Act passed, establishing overall structure
 May 2011 – Pore space regulations set – Quest acquires required area
 March 2012 – ERCB Public Hearing
 July 2012 – ERCB Decision Report Issued – conditional approval
 August 2012 – Quest License granted with Ministers Approval
 September 2012 – W ell License approvals granted
 December 2012 – Expected completion of Regulatory Framework Assessment work
Quest Progress: GCCSI International Members October 10, 2012 19
Meeting

20. Project Approval Critical Features
Safe and secure storage complex
Capture technology fit to base facility
Degree of economic robustness
Clarity in regulatory environment
Extensive stakeholder engagement
Quest Progress: GCCSI International Members October 10, 2012 20
Meeting

21. Stakeholder Engagement
 Extensive and continuous public engagement
 1 st public project disclosure: Oct 2008 (booklet, news release and open house)
 Stakeholder consultation program initiated Jan 2010
 All landowners within 450 of either side of pipeline right of way
 All landowners in storage AOI
 All Landowners within 5 km of Scotford
 Municipal districts/ local authorities
 Industry stakeholders
 Provincial / Federal regulators
 Aboriginal communities
 Open Houses: March, November 2010, September 2011 and planned November 2012
 Quest Café’s: June, October 2011
 Bi-annual County and Town Council updates
 Quest phone line, e-mail address and web site available for project questions
Quest Progress: GCCSI International Members October 10, 2012 21
Meeting

22. Timeline and Upcoming Activities
 Community Open Houses Q4, 2012
 Well Program Q4 2012
 2 additional injection wells
 Associated deep monitoring and
groundwater wells
 Capture & Pipeline in Execute phase
 Capture at 90% model review stage
 Capture construction underway with
foundation work Q4 2012
 Pipeline construction begins Q3 2013
 Operations Handover Q2 2015
 Full production Q3 2015
Quest Progress: GCCSI International Members October 10, 2012 22
Meeting

23. Thank You