US DoE/Industry Sponsored Projects

The US Department of Energy’s Office of Fossil Fuel is overseeing a number of projects investigating various issues associated with the sequestration of carbon dioxide. The ultimate goal of the research programmes is to develop sequestration technologies that cost $10 or less per tonne of carbon sequestered. This is equivalent to adding only 0.2 cents per kilowatt-hour to the average cost of electricity. The present programme forms part of a long-term initiative that, beginning in 2015, would maintain US greenhouse gas emissions at the 2010 baseline. By 2025, it is anticipated that carbon sequestration technologies will offset ~50% of all required greenhouse gas reductions, measured as the difference between a business-as-usual baseline and a strategy to stabilise atmospheric concentrations of CO2 at 550 ppm.

The solicitation for greenhouse gas projects was initially structured into a number of related areas, one of which encompassed projects examining geological sequestration. This is focusing on storage of CO2 in features such as depleted oil and gas reservoirs, unminable coal seams, and deep aquifers. The projects are being managed by the DoE’s National Energy Technology Laboratory (NETL).

In 2000, following a significant increase in the budget allocated for carbon sequestration, the DoE announced a number of projects in which national laboratories were to collaborate with academia and industry. These were followed in 2001 by the announcement of a further thirteen projects aimed at capturing and storing greenhouse gases. Again, national laboratories co-operated with academia and industrial partners. Up to this point, research had concentrated largely on early exploratory ventures, funded primarily with federal dollars. The new projects comprised larger-scale partnerships with private research institutions, industries, and universities sharing a major portion of the research costs. Funding for these projects is being provided from the DoE ($15 million over a three year period), with additional funding coming from the private sector ($10 million). On an individual project basis, the latter averages out at ~40% of the total costs, well above the Department's minimum requirement of 20%.

In July 2001, an additional eight projects based on CO2 storage capture and storage were selected, following President Bush’s endorsement of carbon sequestration as part of the country’s climate change policy. The eight projects emerged from a nationwide competition that attracted 62 proposals from private companies, universities, local governments, and environmental organisations. Overall, significant interest was shown by potential project partners in becoming involved within the DoE’s programme

European Commission/Industrial Sponsored Projects

There are a number of programmes and projects on-going, ensuring that the European Union remains at the forefront of the international community’s efforts to combat climate change. The most recent monitoring data produced indicates that the EU is on track to fulfil its obligation under the UN Framework Convention on Climate Change. This requires levels of greenhouse gases that do not exceed those experienced in 1990.

In June 2000, the Commission launched the European Climate Change Programme (ECCP) with a remit to produce additional environmentally- and cost-effective policies and measures, as well as an emissions trading scheme, to ensure that the EU achieves the 8% cut in emissions by 2008-2012 to which it is committed under the Kyoto Protocol. The ECCP was established as a multi-stakeholder consultative process focusing on energy, transport, industry, research and agriculture and on the issue of emissions trading within the EU. Seven technical Working Groups were established under the co-ordination of an ECCP Steering Committee. The programme was not carried out in isolation but rather built links with on-going activities at EU level such as the Joint Expert Group on Transport and Environment and the Joint Expert Group on fiscal measures. It also linked in with the Sixth Environmental Action Programme and the EU Strategy for Sustainable Development.

Taking a ‘twin-track’ approach, the ECCP has prepared a range of additional EU-level policies and measures to cut greenhouse gas emissions, as well as an emissions trading scheme, that could become operational within the EU by 2005. It is being conducted through a co-operative effort involving all relevant stakeholders, including representatives from the Commission’s different departments, the Member States, industry and environmental groups. The work to develop further policies and measures is focussing on the energy, transport and industry sectors, although the scope may be broadened later to encompass other sectors. Thus, a number of working groups have been established, looking at issues such as energy supply and consumption, industry, and research.

Under the auspices of the Fifth Framework Programme, funding is being provided for a number of projects aimed at investigating issues associated with the sequestration of CO2 in geological formations. A number of these initiatives comprise substantial collaborative multi-partner programmes, addressing a range of issues. Specific projects are examining CO2 sequestration in saline aquifers, coal seams and oil wells. For instance, the Commission is part-sponsoring an important monitoring project in Canada, based on activities at the Weyburn oilfield, a project demonstrating CO2 storage in deep aquifers in the North Sea (Sleipner), and an assessment of the European potential for geological storage of CO2 produced by the combustion of fossil fuels (GESTCO). As well as technical issues, the various projects are addressing environmental and safety issues associated with the techniques being investigated, and economic factors involved

Canadian-based Projects

In terms of activities involving carbon dioxide sequestration, there are a number of important projects taking place within Canada. Some of these are connected with coal deposits and others with the country’s substantial oil reserves. With the former, parts of the country contain vast, deep coal beds that are essentially unmineable but contain substantial volumes of trapped methane. The Alberta Research Council (ARC) is leading a group of provincial, national and international organisations to exploit the coal bed methane by examining the use of CO2 to displace the gas, a process known as enhanced gas recovery.

It is anticipated that future developments of work underway within Canada could produce designs of CO2-neutral power plants, fuelled either by mined coal or by methane released from deep unmineable coal. In such a process, the CO2 produced from power plant would be injected into the coal beds to produce more methane, so continuing the cycle. In addition, a geological sink would be established in the coal beds, virtually eliminating any release of CO2 to the atmosphere. An abundance of deep coal beds in Canada and the USA makes geological storage of CO2 applicable to many areas where coal-burning power plants are located.

Considerable developments are also on-going with the use of CO2 for enhanced oil recovery. Much of this activity is centred on the Weyburn Oil field, operated by EnCana Corporation. There are currently some 650 production and water injection wells in operation, the average daily crude oil production amounting to 2900 m3/d (~18200 bbl/d). The Weyburn field produces about 10% of EnCana Corporation's total oil production. Over its lifetime the field has produced some 55 million m3 of oil from primary and waterflood production. The field is currently in production decline having produced in excess of 25% of the estimated recoverable oil reserves. Several major projects are underway or in preparation for operation in the Weyburn field, both at an investigative level and for commercial exploitation.

An added bonus gained from such projects is that the level of expertise developed provides opportunities for the transfer of the technologies to other locations. For instance, enhanced coal bed methane recovery technology is currently the focus for technology transfer, via collaborative arrangements, to China, where a joint programme is taking place between the Alberta Research Council, the China United Coal bed Methane Recovery Corporation, and others.

Other activities taking place in Canada include the investigation of the use of what is termed “sour gas”; this is being produced in increasing quantities in Alberta. As a consequence of changes in environmental legislation and control practices, H2S generated by the desulphurisation of sour gas can no longer be released into the atmosphere. As a result, an increasing number of gas producers in the region are disposing of volumes of “acid gas”, mixtures of H2S & CO2, into geological media as a means to deal with the H2S. produced. Since its first application in 1989, the number of such applications has risen to ~30, disposal sites including depleted hydrocarbon reservoirs and deep saline aquifers.

Canadian authorities and organisations remain very active in these fields of investigation and commercial exploitation and continue to co-operate widely with other partners and projects both within North America and overseas. Project funding has been provided by a number of agencies that include the Federal Government, the Governments of Alberta and Saskatchewan, the Alberta Research Institute, the Alberta Energy & Utilities Board, and Environment Canada

Norwegian Programme

KLIMATEK is a five year Norwegian National Technology Programme promoting technology for reducing greenhouse gas emissions. The programme launched in 1997 will cost US$70 million; its success being measured in the total potential emission reductions in million tonnes of CO2 equivalents that can be achieved using KLIMATEK technology. With a focus on the demonstration of emission reduction technology, 80% of the total funds are allocated especially for this purpose. The objective is to encourage the increased use of technology. The programme covers emissions of all the six greenhouse gases contained in the Kyoto-agreement (CO2, CH4, N2O, HFCs, PFCs and SF6).

The annual contribution of the Norwegian government is 25 million NOK (Norwegian Kroner) which has led to projects with an accumulated turnover of 3-4 times this value. By March 2001 the KLIMATEK project portfolio included 42 projects with a total budget of 475 million NOK of which the government funding amounts to 120 mill NOK. Most of the projects are in the following four categories: Offshore petroleum production, process industry (ferroalloy- and aluminum production), gas fired power production with CO2 capture and CO2 storage. 16 projects are still running or are in the definition phase.

Key areas addressed by the KLIMATEK programme are:
* Technology for utilising fossil fuel energy which at the same time allows cost-effective mitigation of emissions.
* Technology for efficient use and recovery of energy.
* New processes in the industry, waste and agricultural sectors resulting in substantial reduction of greenhouse gas emissions.
* Technology and measures allowing CO2 emissions from the transport sector to be reduced.
* System analysis.

KLIMATEK is or has been supporting 9 projects

Carbon Capture Project (CCP)
KLIMATEK has decided to support the international initiative taken by the seven global energy companies BP, Chevron, Norsk Hydro, Shell, Statoil, Suncor and Texaco to develop technologies which can result in a major reduction in cost of capturing CO2 from large single point emission sources. In particular KLIMATEK will support the scenario focusing on power generation from natural gas and CO2 storage in offshore oil reservoirs for enhanced oil recovery (EOR). KLIMATEKs support amounts to 29 million NOK in phase 1 of the project (2001-2003). This project has received a lot of attention in Norway due to its broad industrial and international participation as well as its focus on front-end knowledge and technology.

Long term research
The development of commercially feasible solutions for power generation from natural gas without release of CO2 is a long term task. Furthermore it is recognized that there are several possible methods and technologies. The Norwegian government has therefore decided to strengthen Norwegian long term research in this area. KLIMATEK is presently assessing proposals from universities and independent research organization covering relevant aspects like novel power cycles, membrane technologies, combustion and absorption/adsorption processes, radical chemistry, novel reforming processes, fuel cells etc. KLIMATEK expects to support research in excess of 10 million NOK per year over the next 3-4 years in this area. Cooperation with recognized research groups abroad is encouraged.