Getting CDM CCS projects off the ground

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Getting CDM CCS projects off the ground
Susanne.Haefeli_at_dnv.com www.dnv.com/certificatio
n/climatechange
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DNV Services

• Leading CDM validation/verification body 55
  market share
• Chair of the DOE group upon the CDM Executive
  Board
• Over 100 trained GHG auditors
• DNV is Accredited for
• UN FCCC
• EU ETS
• US California Climate Action Registry
• US Chicago Climate Exchange
• UK Emissions Trading Scheme
• 300 offices worldwide

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Our Climate change offices worldwide
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Reference List
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Overview current bottleneck issues
Long-term liability, legal and regulatory
frameworks
Long-term Monitoring and verification Potential
of the CDM and JI
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(No Transcript)
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Technology Development and Qualification Concept
Selection Project plan Performance/Risk
Assessment Optimisation of Integrated Systems
Site closure Monitoring Site renewal
Need fresh thinking and new regimes Risk
Assessment methods as Basis
Can be dealt with under existing HSE and Risk
Assessment regimes.
Process simulation Fuel source evaluation Mapping
the geosphere Mapping background
emissions Source-sink matching Optimisation of
CO2 transport Reservoir simulation of plume
movement CO2 EHR recovery modelling Probabilistic
plume analysis Leakage/seepage simulation Well
integrity analysis/remediation Permitting/stakehol
der engagement Storage site preparation FEED/EPCI
execution plant, pipeline, field installations
HSE management Plant operations
HSE management Compressor operations Pipeline
operations Ship design and analysis Ship
procurement Ship operations
HSE management Wellbore construction Injection
operations Subsurface monitoring Surface
monitoring Plume simulation History
matching Remedial wellbore op.s Reservoir
recovery analysis O/G/W/CO2 separation
op.s Corrosion management
HSE management Plugging/abandonment Subsurface
monitoring Surface monitoring Plume
simulation History matching
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Risk Mapping
Total Project Risk Profile
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Delays in permitting due to bureaucracy, protests,
etc.
Total Project Risk Profile
Monitoring equipment costs more than originally
planned due to more complex assembly, etc.
Insufficient knowledge of structure leads to new
migration paths, over-injection, etc.
Low well injectivity due to unexpected plugging,
mechanical Problems, heterogeneities, etc.
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DNVs objectives for the coming years

• To create an internationally accepted
  Verification System and Protocol for Third Party
  Verification of CCS
• To develop best practice Guidelines and Standards
  for each part of the overall process

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Possible common framework and process for
validation/verification

Country C
Country B
Country A
Country D
Harmonized International Verification Framework
and Process - Third Party Verifiers -
Close Site
Long-term monitoring
Develop technology
Propose site
Operate site
Prepare site
Guidelines, Standards
Verification
Accreditation
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Overview current bottleneck issues
Long-term liability, legal and regulatory
frameworks
Long-term Monitoring and verification
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How can the CDM help overcome these issues?
Close Site
Long-term monitoring
Develop technology
Propose site
Operate site
Prepare site
Project Design Document
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The Phases of a CDM Project
Project Design
Parties, stakeholders and NGOs
30 days consultation
LoA and Local Stakeholder Comments
Validation
Review (upon request)
Validation report
Publication of monitoring report
Registration
Project implementation andmonitoring and
reporting
Verification/Certification
Verification/Certification report
Review (upon request)
Issuance of CERs
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CDM NM The White Tiger Oil Field (CCS)

• Capture
• Chemical absorption from power plants
• Transportation
• pipelines
• Storage
• fractured granite, depth of over 4000m offshore
• dimensions 25 km x 7 km
• height 700-800 m.
• The reservoir is covered by thick Oligocene
  shale-sand sequence
• The sealing rock consists of claystone and
  siltstone.

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Next Steps

• Guidance from COP to the CDM EB
• Draft 2006 IPCC Guidelines for National
  Greenhouse Gas Inventories
• Pre-injection assessment
• Monitoring and reporting
• Closure procedures
• Issues that need further consideration
• Long-term monitoring
• Indirect emissions from material loss during CO2
  preparation
• Contractual arrangements in case several parties
  are involved accross value chain
• Time frames (annual versus geological)
• Verification requirements

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Conclusions
To create an internationally accepted
Verification System and Protocol for Third Party
Verification of CCS To develop best practice
Guidelines and Standards for each part of the
overall process

• CDM is a good platform for CCS
• Learning-by-doing
• Public scrutiny
• Opportunities for CCS in JI

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Susanne.Haefeli_at_dnv.com