Costs Of CO2 Transport And Injection In Australia
- Peter Ross Neal (U. of New South Wales) | Wanwan Hou (U. of New South Wales) | Guy Allinson (U. of New South Wales) | Yildiray Cinar (U. of New South Wales)
- Document ID
- Society of Petroleum Engineers
- SPE Asia Pacific Oil and Gas Conference and Exhibition, 18-20 October, Brisbane, Queensland, Australia
- Publication Date
- Document Type
- Conference Paper
- 2010. Society of Petroleum Engineers
- 4.3.4 Scale, 1.10 Drilling Equipment, 6.5.1 Air Emissions, 4.1.4 Gas Processing, 1.10.1 Drill string components and drilling tools (tubulars, jars, subs, stabilisers, reamers, etc), 6.5.7 Climate Change, 4.2 Pipelines, Flowlines and Risers, 5.5 Reservoir Simulation, 4.1.2 Separation and Treating, 4.1.5 Processing Equipment, 4.6 Natural Gas, 5.4 Enhanced Recovery, 6.5.3 Waste Management, 5.4.2 Gas Injection Methods, 1.14 Casing and Cementing
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This paper reports estimates of the costs of CO2 transport and storage across Australia. The estimates were commissioned as part of the work of the Australian Government's Carbon Storage Taskforce. Using data provided by government departments and industry, we investigated combinations of nine emission hubs and twelve storage basins. We also developed a first-pass method for estimating numbers of injection wells using numerical reservoir simulation and comparisons with actual CO2 injection projects.
This work forms part of a suite of studies intended to help formulate government policy on carbon capture and storage. Our analyses are aimed at helping industry and government to plan carbon abatement strategies by indicating regions likely to have lower deployment costs for CO2 transport and injection.
We present engineering and economics results for projects across Australia and rank storage basins by cost. The cheapest cases store CO2 from the Latrobe Valley in the Gippsland Basin (A$7 per tonne of CO2 avoided), from Southern Queensland in the Surat Basin (A$ 12 per tonne) and from the Perth region in the Bunbury Trough of the Perth Basin (A$10 per tonne). We include sensitivity analyses examining the effects on project costs of monitoring and exploration costs. We also show the results of analyses of the effect of exploration risk.
We provide recent estimates of CO2 transport and storage costs for potential projects across Australia on a consistent basis. These illustrate the importance of various geological characteristics in determining the CO2 injection cost, and report the relative costs of exploration, equipment, construction and monitoring. Finally we describe a quick and efficient first-pass technique for estimating well numbers.
Many technologies and strategies have been proposed to reduce greenhouse gas emissions to the atmosphere. The International Energy Agency (IEA, 2010) estimates that stabilising atmospheric CO2 levels at 450 ppm will require a 48 Gt reduction in emissions worldwide. Improvements in energy efficiency and switching to less carbon intensive fuels account for almost 60% of this reduction. Deploying renewable energy technologies and carbon capture and storage (CCS) contribute a further 17% and 19% respectively.
CCS is a key technology for reducing emissions from stationary sources of CO2 in particular, fossil fuel-fired power generation and heavy industrial processes such as steel making, cement and gas processing. These sources are sometimes referred to as ‘stationary energy' (CSTF, 2009).
In 2007 more than 75%, or more than 400 Mt of Australia's emissions (DCC, 2009) came from the energy sector. Stationary energy accounts for just over 70% or 290 Mt of energy sector related emissions. Almost 85% or 250 Mt of these stationary energy emissions come from coal-fired electricity. Therefore just over 45% of Australia's CO2 emissions came from burning coal to make electricity. Australia also has the ninth highest per capita emissions from fuel combustion in the world. That is the third highest in the OECD.
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