1. Gulf Coast Carbon Center Industry-Academic Research Partnership Assessment of options for carbon capture and sequestration in an area of large sources and large geologic capacity

2. Geologic Sequestration Emplaces Dense-Phase CO 2 in Pore Systems in Rock To reduce CO 2 emissions to air from point sources.. Carbon extracted from a coal or other fossil fuel… is currently burned and emitted to air CO 2 is captured as concentrated high pressure fluid by one of several methods.. CO 2 is shipped as dense-phase fluid via pipeline to a selected, permitted injection site CO 2 injected at pressure into pore space at depths below and isolated (sequestered) from potable water. CO 2 stored in pore space over geologically significant time frames.

3. Who is the Gulf Coast Carbon Center? New Members Sempra, Shell, TXU Fayette Power Plant (LCRA/Austin Energy) Industry Sponsors Hosted by: Staff

4. Gulf Coast Carbon Center Collaborations DOE funded Southeast Regional Carbon Sequestration Partnership (SECARB) led by Southern States Energy Board –$4.9 M Phase II “Stacked Storage” = EOR+Brine storage –$35M “early” demonstration with Denbury Resources Cranfield Mississippi –Sponsored projects –SE US power companies DOE funded Southwest Regional Carbon Sequestration Partnership (SWCARB) led by New Mexico Tech –Project at SACROC hosted by KinderMorgen

5. GCCC Strategic Plan 2007-2010 Goal 1: To educate the next generation of carbon management professionals and regulators Goal 2: To develop selection criteria for commercial CO 2 sequestration sites Goal 3: To define an adequate and reliable monitoring and verification strategy applicable to long term storage Goal 4: Evaluation of sources risk and liability potentially associated with CO 2 sequestration Goal 5: Evaluation of economic potential of CO 2 to enhance oil and gas recovery in the Gulf Coast Goal 6: Development of market framework and economic models for CO 2 capture and storage in the Gulf Coast Goal 7: GCCC service and training to partners

6. Goal 1: Educate the Next Generation of Carbon Management Professionals and Regulators Support from Jackson School of Geosciences Student training Post-doc program Internships and visiting scientists –Rebekah Lee - Oxford University –public acceptance survey

7. Goal 2: Develop Selection Criteria for Commercial CO 2 Sequestration Sites Create a rigorous, comprehensive manual with pragmatic guidance in non- technical language on best practices for selecting a geologic sequestration site in brine-bearing formations (saline aquifers). Guidance derived in part from assessments of sites for Texas FutureGen – two successful sites selected. Objective 2.1: Guidance Manual Vanessa Nunez and Mark Holtz

8. Objective 2.2: Reduce current uncertainty in estimates of the capacity of brine formations for CO 2 storage Participation in DOE Regional Carbon Sequestration National Atlas www.natcarb.org Development of advanced methods for capacity assessment Storage in brine Storage in coal Storage in oil and gas JeanPhillipe Nicot and Srivatsan Lakasminisarihan Rebecca Smyth

9. Options for Estimating Capacity Volumetric approach: Total pore volume x Efficiency factor (E) –Free CO 2 volume in structural and stratigraphic traps –Trapped CO 2 residual phase Volume dissolved Volume that can be stored beneath an area constrained by surface uses or by other unacceptable risks – well fields, faults Maximum pressure as a limit on capacity Displaced water as a limit on capacity Volumetric Risk-based

10. Effect of Depth of Formation in Storage Capacity Increased capacity with depth of formation almost entirely due to higher safe injection pressure Volume injected/pore volume

11. Goal 3: Define an Adequate and Reliable Monitoring and Verification Strategy Applicable to Long Term Storage Objective 3.1: Evaluate existing approaches for monitoring and verification of CO 2 storage in brine formations by assessing sensitivity, accuracy and precision of tools relative to plausible leakage signals. Objective 3.2: To Develop and evaluate innovative technologies for “Early Warning” detection of CO 2 leakage Objective 3.3: Test an innovative approach to monitoring and verification of CO 2 storage by combining measurements of deformation with geomechanical modeling.

12. Goal 3: Field Tests of Monitoring and Verification Technologies Field project #2 in process Cranfield Proposed East Texas FutureGen Site Proposed West Texas FutureGen Site Frio Test Site SACROC

13. Injection well Observation well Injection WellObservation Well 30 m U-tubes RST logs Frio “Blue” Sandstone 15m thick Tubing hung seismic source and hydrophones Downhole P and T Frio Brine Pilot near Houston TX

14. Early Warning Monitoring Options Atmosphere –Ultimate receptor but dynamic Biosphere –Assurance of no damage but dynamic Soil and Vadose Zone –Integrator but dynamic Aquifer and USDW –Integrator, slightly isolated from ecological effects Above injection monitoring zone –First indicator, monitor small signals, stable. In injection zone - plume –Oil-field type technologies. Will not identify small leaks In injection zone - outside plume –Assure lateral migration of CO 2 and brine is acceptable Aquifer and USDW Atmosphere Biosphere Vadose zone & soil Seal CO2 plume Monitoring Zone

15. In-house software development for fault/fracture stability analyses Assessing Pressure and Tilt tip

16. Goal 4: Evaluation of Sources Risk and Liability Potentially Associated with CO 2 Sequestration Objective 4.1: Write a primer based on literature review on risk and liability potentially associated with CO 2 sequestration in the Gulf Coast Objective 4.2: To develop a predictive ability to evaluate the risk of leakage of a seal for a brine formation during and after injection. Objective 4.2: Assess the effectiveness of “phase trapping” nonwetting-phase residual saturation in lowering leakage risk in long term under various injection conditions. Objective 4.3 Assess the risk of CO 2 storage in brine reservoirs to the quality of fresh water resources

17. Non-wetting Residual Phase Trapping Mechanism Capture Land surface > 800 m Injection Zone Seal = capillary or pressure barrier to flow CO 2

18. Risk to Underground Sources of Drinking Water Capture Land surface > 800 m Underground Sources of Drinking Water Injection Zone CO 2 Hypothesized Brine leak path Hypothesized CO 2 leak path

19. Preliminary Analysis of Risk to Drinking Water from CO 2 leakage Corrine Wong

20. Goal 5: Evaluation of Economic Potential of CO2 to Enhance Oil and Gas Recovery in the Gulf Coast Objective 5.1: To create more accurate predictions of oil-production and CO 2 usage for CO2 EOR floods in Gulf Coast clastic reservoirs Objective 5.2: Quantify the sequestration potential and feasibility of enhanced gas recovery potential for depleted gas reservoirs in Texas.

21. Simplified Model Using Dimensionless Groups for Rapid Assessment of CO 2 Flooding and Storage in Gulf Coast Reservoirs Model can be applied to candidate Gulf Coast reservoirs in BEG database – limited data on many reservoirs Potential for use by small and big operators alike to quickly identify best reservoirs Derek Wood, Larry Lake Derek Woods Larry lake

22. Improving Economic Assessment (EOR) Mark Holtz and others

23. QAc4748x Cumulative production > 1 MMSTB No Rejected Yes No Minimum miscibility Pressure (depth, temperature, pressure, oil character) Unknown Rejected Oil- reservoir data base Reservoir depth >6000 ft Yes No Rejected No Rejected Does reservoir have water- drive mechanism? Yes Candidate reservoir No Has reservoir been waterflooded? Candidate for secondary recovery Yes Bureau of Economic Geolog y Bureau of Economic Geology Decision Tree for Screening Candidate Reservoirs

24. Recovery Efficiency of Sandstone Reservoirs from Enhanced Oil Recovery Projects (1980’s) Frequency Recovery efficiency (percent) Submarine fan Barrier/strandplain Fluvial/deltaic QAc4237c 0 2 3 4 0 6121824303642 1 5 6 7 17%, Little Creek, MS, Denbury (2004) 14.5 %, Paradis, LA, Texaco Quarantine Bay, LA, Chevron Single well huff ’n’ puff Bureau of Economic Geology

25. CO 2 sequestration capacity in miscible oil reservoirs along the Gulf Coast Bureau of Economic Geology

26. Goal 6: Development of Market Framework and Economic Models for CO2 Capture and Storage in the Gulf Coast Objective 6.1: Provide to the GCCC partners scenarios and analysis of the policy options under consideration at the State and Federal levels. Objective 6.2: To model possible evolutionary pathways for CO 2 pipeline networks in the Gulf Coast and their impact on CO 2 value chains

27. Model possible evolutionary pathways for CO 2 pipeline networks in the Gulf Coast and their impact on CO 2 Value Chains Assessment by Joseph Essandoh-Yeddu Energy Commission, Ghana

28. Goal 7: GCCC Service and Training to Partners Training tailored to sponsor requests Public materials Specific data sets developed for sponsors Workshop for operators

29. Gulf Coast Carbon Center www.gulfcoastcarbon.org