1. The Aquistore Project: Making CCS a Reality Dr. Malcolm Wilson, CEO PTRC Canadian Carbon Capture & Storage Workshop: Progress Report, Challenges Faced, Lessons Learned London, UK

2. The Petroleum Technology Research Centre Located in Regina, Saskatchewan Canada, the Petroleum Technology Research Centre (PTRC) is a not-for-profit corporation founded in 1998 to foster research and development into enhanced oil recovery and carbon storage. PTRC’s model is based around collaborative partnership with Industry, Government and Research Organizations. Our current projects include: Aquistore; The IEAGHG Weyburn-Midale CO 2 Monitoring and Storage Project; Morewise; STEPS; JIVE; and Phaneorozoic Fluids.

3. Aquistore Project 3 Aquistore is an independent research and monitoring project which intends to demonstrate that storing carbon dioxide (CO 2 ) deep underground (in a clastic sediment with high salinity brine), is a safe, workable solution to reduce greenhouse gases (GHGs). Serve as a demonstration site for cutting edge CO 2 measurement, monitoring, and verification (MMV) technologies. Help develop the best methods & technologies to monitor and track CO 2. Involve research institutions, policy makers, industry, and public.

4. While reducing greenhouse gas emissions must include increasing energy conservation and efficiency - as well as developing renewable energies such as wind and solar power - reducing emissions from fixed-point sources of CO 2 such as refineries, coal-fired power plants and other industries cannot be ignored and will require the development of carbon capture and storage technologies.

5. Project Location: Saskatchewan Within Canada, Saskatchewan has the highest per capita CO 2 emissions nearing 73 tonnes per person. While the population is small, the emissions per person are high. Upwards of 70% of Saskatchewan’s electricity is generated by combustion plants. While solar and wind may in the future be ideal for a province like Saskatchewan, currently the storage technology has not developed adequately to make this a reality. Saskatchewan has limited hydro capacity.

6. While the technology is proven with decades of use in oilfield operations, there are only a handful of active full chain CCS projects in the world. Successful CCS demonstration projects are critical.

7. Project Overview CO 2 storage research monitoring project Designed to inject 2000 tns CO 2 /day $22.3M in sponsorship secured to date A buffer protection system accepting variable CO 2 rates, and long-term storage option for SaskPower’s Boundary Dam Integrated CCS Demonstration Project.

8. Aquistore will serve as the storage site for the world’s first commercial post-combustion CO 2 capture, transportation, utilization, and storage project from a coal fired electrical generating facility.

9. Project Location: Williston Basin

10. Project Location: Subsurface 10

11. Project Timeline: Where are we now? Aquistore is divided into two phases. Phase 1 is focused on demonstration and evaluation. Phase 2 is focused on commercialization and monitoring.

12. Phase 1: Demonstration & Evaluation 12 Site selection, permits, agreements, community engagement. Risk assessment, seismic surveys, monitoring programs. Evaluation/injection well. Observation/monitoring well. Water injection test.

13. Phase 2: Commercial & Monitoring 13 On going monitoring and observation. On going community engagement. Pipeline tie-in CO 2 from Boundary Dam Power Station. World’s first commercial carbon capture technology applied to a coal plant and the sale of CO 2 for EOR/storage.

14. Project Timeline: Where are we now? In 2012, Aquistore broke ground. Many CCS projects are in the plenary stages or undergoing feasibility studies. Located just a few kilometers from its CO 2 source, infrastructure at the Aquistore site is already set to receive CO 2.

15. Project Timeline: Where are we now? Over a decade of research focused on monitoring and storing CO 2. In addition to the state of the art injection and observation wells, completed in 2012, the site is home to a comprehensive measurement, monitoring, and verification program (MMV).

16. Project Timeline: Where are we now? Unique among storage projects, Aquistore is providing buffer storage to a commercial CO 2 capture plant and active oilfield for EOR operations. Upon the completion of the Boundary Dam Integrated CCS Demonstration Project, Aquistore will be tied into an operational experience with variable rates of CO 2 entering storage. In 2013, Aquistore is CO 2 ready.

17. Leading the Way Forward Public Outreach and Engagement Public education is important to any CCS project. Even where CCS awareness is high, many CCS projects –successful and failed – have received negative attention. Aquistore has enjoyed positive support in the local community of Estevan. Beginning in 2011, Aquistore launched a stakeholder engagement and public outreach program, with its own targeted communications plan. The project is committed to engaging with everyone who has a stake in CCS: government agents, local stakeholders, industry, research, and environmental groups.

18. Leading the Way Forward Risk Management Mitigating risk in CO 2 storage is vital. All emerging CCS regulations are developed based on the principles of risk management. Aquistore’s industry leading risk management framework and mitigation plan was developed in collaboration with the experts who developed the recently released Geological Storage of Carbon Dioxide Standard CSA Z741.

19. Leading the Way Forward CO 2 Measurement, Monitoring, and Verification (MMV) MMV is fundamental to the success of any storage project. Aquistore’s industry leading technical MMV program was designed by a team of leading CCS researchers. From co-located surface instrumentation to integrated down-hole well data – Aquistore’s MMV program is one of the most comprehensive programs available. Our MMV program isn’t just about science. The safety of CO 2 storage is a very real public concern. As one of the few active projects – transparency and due diligence are not only ethical, but essential.

20. Leading the Way Forward Seismic Aquistore’s permanent array is composed of 630 geophones installed in an array covering a ~12 sq km area. These geophones were installed in a sparse 160 x 160 m grid at a depth of 20 m. A conventional 3D seismic array was also shot and processed. Tracking and quantifying the CO 2 in a storage project is one of the most significant challenges. CO 2 quantification is critical for certifying anticipated CO 2 credits. Through integration of our state of the art data sets Aquistore aims to move closer to quantification of stored CO 2.

21. Leading the Way Forward Wells and Design Aquistore is home to two completed, state-of-the-art ‘smart’ wells. Aquistore’s injection and observation wells are located 150m apart. These two wells provide real-time data and validation for predictive long-term modeling. Representing $20M of development and installation costs, the Aquistore wells are fully instrumented and provide downhole monitoring and CO 2 tracking. With the two deepest wells in Saskatchewan, Aquistore serves as a rigorous trial and demonstration for effective down-hole technologies.

22. Leading the Way Forward Policy and Regulation The lack of regulations can be a challenge for any CCS project. As jurisdictions develop regulatory frameworks for CCS, awareness of the precedents in policy and regulations is crucial. Aquistore has worked closely with various levels of government to inform the development of these permits and policies.

23. Leading the Way Forward Lessons Learned In an industry as new as CCS every active project is learning through demonstration and leading by example. Large demonstration projects such as those present today are cooperating to ensure the next generation of projects.

24. Thank you 24 Dr. Malcolm Wilson CEO, Petroleum Technology Research Centre Malcolm.Wilson@ptrc.ca +1 (306)787-8290 Site tour and executive and exploratory project consultations are all available. To arrange your visit, or inquire about Aquistore – please contact PTRC.