Challenges in Carbon Capture and Storage Projects: A Strategic and Project Management Perspective

Financing carbon capture and storage projects the results of two expert meetings

The aging of oil and gas reservoirs in South East Asia (SEA) presents opportunities for their repurposing for use in Carbon Capture and Storage (CCS); to our knowledge, there are currently no operational CCS projects in SEA. Multiple CCS projects have been announced recently in SEA, targeting storage in depleted reservoirs. In this paper, we share technical lessons learned while working on CCS projects in SEA. The paper first provides an overview of engineering factors that should be considered for the transport and storage of CO2 in depleted reservoirs. We will then focus our discussion on four of the challenges faced while assessing these factors. Firstly, we highlight the impact that regional geothermal gradients have on storage capacity; particularly, we show that higher geothermal gradients due to the proximity to the ring of fire reduces storage capacity in reservoirs in SEA. Secondly, challenges surrounding the dynamic modelling of Carbon Dioxide (CO2) injection into depleted reservoirs will be discussed; the large difference between the composition of the injected gas and native reservoir gas necessitates the use of compositional dynamic models. In this regard, many depleted reservoirs either do not have dynamic models at all, or only have black oil models; both circumstances will require significant time and resource investments to construct compositional dynamic models. Next, we will discuss the reusability of regional gas pipelines for CCS projects; we discuss factors that may prevent a pipeline from being convertible for CO2 transport. Finally, we will discuss the challenge of managing CO2 phase transitions at injection sites. The phase transitions are a result of CO2 being transported at high pressures and then injected into depleted reservoirs with low pressures and high temperatures. We argue in the paper that the phase transition should be engineered to occur in the reservoir to minimize facilities costs.

Carbon Capture and Storage (CCS) projects have been developed during the last decades to address the issue of increasing level of greenhouse gases in the atmosphere. To track changes in the geomechanical properties of a CO2 reservoir, passive seismic monitoring systems are more and more deployed in CCS projects. Continuous recording of the induced microseismicity is particularly useful to estimate the behavior of the reservoir and to check the cap-rock integrity. In some cases, however, large location uncertainties can be associated with the recorded seismic events, primarily due to the seismic network geometry (e.g., deployment of only one string of geophones, only surface stations deployed with large inter-station distances,...). In this paper we give a brief overview of the CCS sites where microseismic monitoring is performed. We also present a pilot site at Longyearbyen, Svalbard where the seismic network is being upgraded to record data for testing classical and new seismological techniques.

The Evolution of European CCS Policy

Being home to the largest oil and gas operators, its advanced subsurface technologies, extensive expertise, skilled labor, and abundant resources, the Middle East is a prime region for large-scale deployment of Carbon Capture and Storage (CCS) technology. Driven by the obligations of reducing carbon emissions and maintaining economic competitiveness in a carbon-constrained world; this study examines the regulatory foundations, and the market dynamics shaping CCS initiatives in the region. This study assesses the current deployment of (CCS) technology in the Middle East. It involves an analysis to assess the region's growing commitment to CCS within its broader sustainability and economic diversification strategies. The evaluation of government policies and incentives, such as carbon pricing mechanisms and investment subsidies, helps determine their effectiveness in supporting CCS initiatives and mitigating technological uncertainties. Moreover, the study reviews the adoption of international best practices to ensure safe, long-term CO2 storage and optimize storage capacity. Finally, the study identifies the critical roles of governments, industry stakeholders, and international partners in overcoming regulatory and technical barriers, emphasizing the need for collaborative efforts in advancing CCS deployment in the Middle East. This study is performed using published data for the pilot CCS and Co2 EOR projects in the Middle East highlighting the current regulatory frameworks. The Middle East shows a strong and increasing commitment to CCS, various governments in the region have introduced supportive policies and incentives, such as carbon pricing mechanisms and investment subsidies, to mitigate technological uncertainties and address challenges like water scarcity. Demand forecasts and market assessments indicate substantial potential for CCS, particularly in industrial hubs with high CO2 emissions, driven by regulatory pressures and the strategic importance of CCS for the long-term viability of the oil and gas sector. Successful CCS deployment requires collaboration between stakeholders. Overall, the region's advanced capabilities positioning it uniquely to lead in CCS initiatives in addition CCS is poised to play a pivotal role in the Middle East's energy transition, contributing significantly to carbon mitigation and economic resilience, emphasizing the importance of tailored approaches and collaborative efforts to realize the full potential of CCS in the region. This study offers a fresh perspective by thoroughly analyzing MENA's high potential for large-scale deployment of Carbon Capture and Storage (CCS) technologies. It highlights the region's proficiency ineffectively implementing CCS technologies and the potential for the Middle East to significantly enhance the global reputation of CCS by fostering public acceptance and reassurance. Through a detailed examination, the study provides novel insights into the potential and strategic importance of CCS in securing the long-term viability of the oil and gas sector while meeting climate targets.

Spearheaded by the European Union and the Intergovernmental Panel on Climate Change (IPCC), carbon capture and storage (CCS) has recently been emphasized as an essential strategy for addressing climate change. South Korea is pursuing CCS projects such as the Donghae-1 Gas Field and the Gunsan Basin Project, and site characterization studies are being progressively conducted. This paper presents the Smeaheia Project, a large-scale CCS initiative in Norway, as a reference case for developing large-scale CCS projects in Korea. First, we examine the status of large-scale offshore CCS projects based on the geological characteristics of Norway. Next, we assess the suitability of the Smeaheia storage site based on geological and geophysical characterizations and investigate the current development status of the ongoing Smeaheia CCS project. Finally, we confirm important insights from the Smeaheia CCS project, which are necessary for securing large-scale CO 2 storage sites in South Korea.

Best Practice for Transitioning from Carbon Dioxide (CO2) Enhanced Oil Recovery EOR to CO2 Storage

The Environmental Protection Agency's (EPA) final rule granting primacy for Class VI wells in Louisiana represents a pivotal advancement for carbon capture and storage (CCS) projects within the state. This paper explores the regulatory framework and its implications for CCS, highlighting the benefits and challenges posed by this rule. Louisiana, with its extensive experience in oil and gas activities, presents a favorable environment for CCS deployment due to its robust underground storage options and regulatory infrastructure. However, the state's history of legacy wells, many inadequately sealed or documented, poses significant risks for CO2 sequestration initiatives. This study delves into the administrative policies, compliance requirements, and the comprehensive assessment process mandated by the EPA to ensure safe and effective CO2 storage. A significant focus is placed on detailed case studies of existing CCS projects in Louisiana, which provide valuable insights into the practical challenges and technical wellbore problems encountered during CCS implementation. These case studies highlight issues such as well integrity, CO2 plume migration, and potential leakage pathways, offering lessons learned and best practices for future projects. The analysis further examines the geological formations of interest, including the Lower Tuscaloosa, Frio, Lower Miocene, and Wilcox sands, and assesses their suitability for long-term CO2 storage. The findings underscore the importance of thorough risk assessment, stakeholder engagement, and ongoing regulatory support to maximize the benefits of CCS deployment while mitigating associated risks. This paper aims to contribute to the understanding of CCS regulatory practices and offer a detailed examination of the technical, environmental, and policy considerations critical to advancing CCS projects in Louisiana. By synthesizing regulatory dynamics, economic considerations, and empirical evidence from case studies, we provide actionable recommendations for policymakers, industry stakeholders, and economic decision-makers to capitalize on the transformative potential of CCS deployment.

Summary In the context of carbon capture and storage (CCS) engineering, ensuring the stability of the caprock is paramount to mitigating CO2 leakage, thus constituting a pivotal engineering challenge in CO2 geological sequestration. With the injection of CO2, pore pressure accumulates within the reservoir, bringing forth risks including diminished effective stress within the formation, surface deformation, occurrence of microseismic events, and potential caprock failure. Therefore, it is necessary to explore the geomechanical issues in CCS projects. This study focuses on the Daqingzijing in the Jilin Oilfield as the study area, utilizing the small baseline subset (SBAS)-interferometric synthetic aperture radar (InSAR) method to conduct a deformation time-series analysis in the well group area under injection and production conditions. The results reveal variations in deformation sensitivity among the sites, with surface displacements correlated to fluid injection and production, demonstrating temporal delays. At the H79 North block, the time effect is relatively minimal, with rapid propagation of formation deformation. Surface displacement in the H46 block appeared 4 months later than behind cumulative fluid volume changes. By conducting triaxial creep tests on shallow mudstone samples from the Songliao Basin under various triaxial stress states, a constitutive creep equation for caprock rocks was obtained. The numerical models of elastic and creep constitutive equations were established. The results show that the creep model exhibits superior accuracy by comparing with InSAR monitoring data (the root mean square error values of elastic and creep constitutive geomechanical models were 6.7 mm and 1.7 mm, respectively). Additionally, based on the experimental and simulation results, this study explores the transfer mechanisms of formation deformation and the inverse relationship between deformation and pore pressure. This study provides theoretical support for the geomechanical safety analysis in corresponding CCS projects.

Carbon capture and storage (CCS) has emerged as a potential strategy for reducing greenhouse gas (GHG) emissions. It involves the capture of carbon dioxide (CO2) emissions from large point source emitters, such as coal-fired power plants. The CO2 is transported to a storage location, where it is isolated from the atmosphere in stable underground reservoirs. CCS technology has been particularly intriguing to countries that utilize fossil fuels for energy production and are seeking ways to reduce their GHG emissions. While there has been an increase in technological development and research in CCS, some members of the public, industry, and policymakers regard the technology as controversial. Some proponents see CCS as a climate change mitigation technology that will be essential to reducing CO2 emissions. Others view CCS as an environmentally risky, complex, and expensive technology that is resource-intensive, promotes the continued extraction of fossil fuels, and competes with renewable energy investments. Effective communication about CCS begins with understanding the perceptions of the general public and individuals living in the communities where CCS projects are sited or proposed. Most people may never live near a CCS site, but may be concerned about risks, such as the cost of development, environmental impacts, and competition with renewable energy sources. Those who live near proposed or operational projects are likely to have a strong impact on the development and deployment of CCS. Individuals in locally affected communities may be more concerned about disruptions to sense of place, impact on jobs or economy, or effect on local health and environment. Effective communication about the risks and benefits of CCS has been recognized as a critical factor in the deployment of this technology.

Rapid industrialization and urbanization in the 20th century have led to increasing volumes of carbon dioxide being released into the atmosphere[...]

Carbon Capture and Storage (CCS) is gaining importance in helping to lower green house gas emissions and supporting worldwide efforts to move toward renewables. The oil and gas sector can profit from CCS by helping reduce its environmental effect and preserving resources in the new, carbon-cutting setting. The findings are based on a thorough analysis of the economy and environment of CCS use in oil and gas fields, examining cost-effectiveness, financial return, and positive environmental effects. This research combines info from ongoing CCS projects and compares before-combustion, after-combustion, and oxy-fuel methods. Research suggests that using CCS for power generation can cut CO₂ emissions by more than90% when the appropriate technology and storage processes are applied. Yet, for these projects to thrive, the sensitivity of economic viability depends on spending on capital projects, running costs, carbon pricing systems, and laws backing the industry. The distribution of CCS project costs is shown in a pie chart, and bar charts and tables are used to compare NPV and IRR in various deployment scenarios. Also, when we look at global CCS activities on a map, we can see a rising number of pilot projects in North America, the Middle East, and Asia. As shown by environmental analysis, CCS reduces the carbon intensity of hydrocarbon production but does not remove upstream emissions. According to the study’s conclusions, one approach includes offering fiscal incentives, carbon trading, and public-private partnerships to make CCS more scalable. The study moves the conversation forward by joining the need for environmentally responsible action with the ability to make fossil fuel-powered energy profitable.

Carbon capture and storage (CCS) is central to a clean energy transition. According to the UN’s IPCC and IEA, CCS needs to attain a global CO2 reduction capacity of ~4 billion tonnes per annum by 2050 to achieve Paris Agreement targets. To date, only 27 large-scale CCS facilities are operating worldwide, totalling 36.6 million tonnes per annum of CO2 reduction. Massive number of new projects are needed. Australia has a potential CO2 storage capacity of 434 billion tonnes, with 316 billion tonnes (73%) residing in offshore oil and gas fields and aquifers. A key constraint to unlock this potential is that the CO2 storage sites and emitter sources are not necessarily located close by. Since CCS projects considered to date in Australia use pipeline transportation, this limits the number of developments to those that have the emission sources and storage sites in proximity. By utilising the Floating CCS Hub development concept, which includes CO2 carriers and floating CCS hub facilities, CCS can be provided to a broader range of emission sources. The transportation cost using CO2 carriers is not as sensitive to transport distance as pipelines, which have a linear relationship between distance and cost. In addition, the CO2 carriers costs are reducing substantially as technology allows for CO2 to be transported in lower pressure states enabling larger parcel sizes, and manufacturing efficiencies further reducing costs. CO2 carriers and CCS hub facilities minimise development constraints related to pipeline distances and land use, and enable replicability and scalability for multiple CCS projects.

This study explores the international regulatory and cooperation frameworks for carbon capture and storage (CCS) technology as a key technology for achieving carbon neutrality. Since the entry into force of the Paris Agreement in 2016, the world has been making various efforts to reduce greenhouse gas emissions and achieve carbon neutrality, with CCS emerging as one of the most important technologies in this endeavor. CCS is a technology that reduces the concentration of carbon dioxide in the atmosphere by safely storing captured carbon dioxide underground, playing an essential role, particularly in hard-to-abate industrial sectors. The study examines the concept of CCS and recent trends, and analyzes the regulatory developments related to CCS under the London Protocol for the protection of the marine environment. Specifically, it reviews the legal basis for CCS technology established through the 2006 and 2009 amendments to the London Protocol and the specific regulations governing the injection of CO2 streams into sub-seabed geological formations. Additionally, it emphasizes the need for agreements and accords to strengthen international cooperation and clarifies compliance conditions such as reporting requirements to the International Maritime Organization (IMO). In conclusion, the London Protocol aims to protect the marine environment and reduce greenhouse gas emissions through requirements related to the composition of CO2 streams, assessment procedures, international cooperation, permit issuance, and reporting procedures. This regulatory framework makes a significant contribution to the international community's response to climate change, and it is expected that safe and effective CCS projects will be promoted through continued international cooperation. This study aims to contribute to establishing a regulatory foundation for the efficient operation and environmental protection of such international CCS projects.

In recent years, there has been a growing interest in the Gulf Region in Carbon Capture and Storage (CCS) as well as the use of Carbon Dioxide for Enhance Oil Recovery (CO2-EOR) in the Middle East Region. Unlike H2S, carbon dioxide does not support combustion. However, carbon dioxide can cause asphyxia if inhaled in large quantities. While many Middle Eastern oil producers have experience with sour oil and gas fields, there is little or no experience with CCS and CO2-EOR operation. For CCS and CO2-EOR projects, carbon dioxide is typically transported in pipelines at pressure above its critical pressure (73.82 bar). In the event of depressurization or loss of containment, the escaping CO2 will experience a sudden change in phase which may result in dry ice projectiles being expelled at very high velocities. Other hazards include cryogenic burns to the skin and catastrophic failure of carbon steel equipment due to low temperature metal embitterment. Dealing with CO2 presents oil producers with new safety challenges. This paper discusses the safety aspects of handling carbon dioxide in CCS and CO2-EOR projects.