Shell unveils $20-million CO2-storage project
Dave Cooper
edmontonjournal.com
Thursday, October 16, 2008
FORT SASKATCHEWAN - Shell unveiled plans today to begin a $20 million carbon dioxide storage research project that could eventually see one million tonnes of CO2 from the Scotford upgrader injected down a 2,000- metre deep well.
The provincial government said it will kick in $6.6 million over three years as part of its effort to encourage the development and commercialization of CO2 capture and storage.
"This kind of project is critical for the long-term goals of Alberta," said Technology Minister Doug Horner.
"Field tests are needed to understand how different kinds of geological formations will handle CO2 storage," he said.
The Alberta Energy Research Institute is providing the money. The Alberta Research Council also has several studies underway. The various pilot projects are pre-commercial and are not intended to tap into Alberta's $2 billion carbon capture and sequestration fund, which will support three to five commercial scale projects that will reduce carbon emissions in the province by up to five million tonnes annually by 2015.
"We're backing up our commitment to pursue these technologies. Alberta's strategically investing in the science and technology needed to find global environmental and energy solutions, said Horner.
Rob Seeley, manager of the Shell Quest study, says a public information session this evening in Fort Saskatchewan is the first step in the process.
"This is for public awareness. Next we will drill three to five test wells, and then do more work to prepare our application," he said.
The first well will be at the Scotford upgrader site, with the next one 10 kilometres away and a third, 30 kilometres distant. Then two more wells may have to be drilled to understand the geology of the area.
"This area was not drilled for oil, so there are few cores available to study," he said.
It also means there are very few holes in the cap rock which lies over the deep saline-saturated formations.
Seeley says the technology to capture the CO2 from the upgrading process is well known. Storage of the gas needs more study.
Engineering and design work on the bitumen upgraders to add carbon capture is already underway. If the project gets the green light Shell will be able to quickly start capturing and injecting small amounts of CO2, between 50 and 100 tonnes per year, and then ramp up to one million tonnes.
The existing Scotford upgrader produces 155,000 barrels of synthetic oil a day, and 1.5 million tonnes of CO2 a year. The 100,000 barrel expansion which is still under construction will produce about one million tonnes a year.
"We can capture 40 per cent. But this is not a an inexpensive business. The industry average cost is between $80 and $140 a tonne, for capital and operating costs.
