Notes from trip to CO2CRC Otway Project

• Current expected increase in power generation costs for CCS is $35-45 per MWh
(conditions apply)
• Aim to reduce costs of CCS down to $15-20 per MWh (didn't say how)
• Methods to scrub CO2 from flue gas
◦ Solvents
◦ Adsorbents
◦ Membranes
◦ Membrane/solvent
◦ Low temperatue - cryogenics
◦ Low temperature - hydrates
• Post combustion or pre-combustion scrubbing

• The project Stage 1 is suspended. It has stopped injecting CO2 into the ground.
Stage 1 has been called successful, with 65,000 tonnes CO2 injected with no
leaks detected.
• They take samples - atmospheric, soil and groundwater, including seismic
surveys. The next seismic survey is due early 2010.
• Otway was chosen as an are for the project because it has a naturally occurring
CO2 source as well as a depleted gas reservoir that could be used for storage.
There is food grade CO2 (e.g. soft drinks, beer) production nearby from the
natural CO2 reservoirs. They are using an existing Santos CO2 well at 'Buttress'
that was unused because it was not viable (I think they said only 80% CO2, 20%
other gases including methane) as the "production well" - government
compulsory acquisition - it is drilled to about 1800 m. They drilled a injection
well into a depleted gas reservoir (possibly methane or CO2). This injection well
is called CRC-1.
• Stage 2 of the project will potentially involve injecting CO2 into a saline
formation (aquifer). This is not ground water as such but saline unusable water.
• Otway is not going to be used for commercial sequestration - it is just a
demonstration/research plant. For one thing it is too far away from Latrobe
valley. Commercial sequestration, if it is possible, has been flagged for 3 areas in
the Gippsland basin.
• community concern has been subjectively called a "low" level, with the question
most asked by landholders being will the CO2 affect our water?
• The area of the depleted gas reserve where CRC-1 well has injected into is
approximately 100 km sq.
• They have a 2 - 3 years monitoring program (no sure what will happen after
that)
• The injection has been into a depleted gas field which has a seal rock above it
(CO2 naturally rises up to the seal rock)
• 2km depth is where CRC-1 has drilled to
• Parante (spelling?) is the name of the saline aquifer - CO2 will dissolve, become
dense, sink, form calcium carbonate
• they conduct deep subsurface monitoring as well as geochemical monitoring and
micro seismic monitoring. They measure soundwaves with 24 geophones. u-tube
sampling? Once a week the local uni comes out to do the sampling. They use
atmospheric and solar monitoring poles.
• The video they played called geosequestration a "sustainable way to decrease
CO2 emissions" which I lolled at.
• Stage 1 has cost $40 million
• By 2010 it will have been going for 7 years from the start of the project (even
before land aquisition)
• They use a stainless steel pipeline
• Emissions produced while sequestering has been about 35 tonnes GHG / 4000
tonnes CO2 sequestered.
• Verbally has said cost of sequestering will be "as low as 25c"
• Post CC involves expensive opex, while Pre CC request expensive capex with
smaller opex
• CO2 is corrosive so stainless steel pipes are used to transport the CO2; they are
also doing research into using special concrete pipes
• The rock formation at Gippsland is completely different.
• Places to put CO2
◦ depleted oil and gas reservoirs
◦ use of CO2 in enhanced oil recovery (when a field is drying up of oil, CO2
used to increase pressure and get oil out)
◦ deep unused saline water - saturated reservoir rocks
◦ deep un-mine-able coal seams
◦ other options - basalts, oil shales, cavities
• stage 2 may involve collaborating with other projects including geodynamics
(geothermal), they use a lot of the learnings of the oil industry currently
• potential to work with renewable energy e.g. biomass
• AGR contractors used to maintain equipment
• production well is about 136 tonnes CO2 per day (by design) and averages about
120 tonnes per day. Has been running for about 17 months (Apr - August)
• 90 KW compressor used @ production well