Red Flags of Storage Sites for CO2 Transportation Provider
A client wished to understand which storage sites would be optional for their future pipeline expansion plans, to avoid committing capital to build transport infrastructure to stores which may not reach development or have issues once onstream. Sproule ERCE developed a multi-criteria tool with >100 parameters to account for capacity, injectivity, geological containment, wellbore containment, costs and facilities, and data coverage to communicate in non-technical terms the strengths and weaknesses of each development. In addition, we summarized the non-technical elements of each project covering the regulatory, commercial and economic considerations.
Project Highlights
- Cross border comparison of storage sites
- Ranking based on technical, regulatory, commercial and economic considerations
- Subsurface and Topsides risk assessment
- €/tonne CO2 for different development scenarios
Challenges:
Strategic Deployment of Capital: Our client’s goal was to avoid premature investment in CO2 transport infrastructure and to not allocate capital for transportation to storage locations that may face future development challenges.
Detailed Understanding the Subsurface: Detailed understanding of key subsurface reservoir and seal characteristics was critical to understand which potential storage locations would.
Need for Data-Driven, Multidisciplinary Analysis: With multiple dimensions to the project analysis, such as subsurface technical data, economics, and risk management, a fully integrated solution was needed.
Detailed Understanding the Subsurface: Detailed understanding of key subsurface reservoir and seal characteristics was critical to understand which potential storage locations would.
Need for Data-Driven, Multidisciplinary Analysis: With multiple dimensions to the project analysis, such as subsurface technical data, economics, and risk management, a fully integrated solution was needed.
Solutions:
Tailored Screening Methodology: Sproule ERCE customized its proprietary screening parameters to align with the client’s specific project priorities. The process began with understanding the client’s operational and strategic goals, ensuring that the storage site selection criteria reflected their requirements.
Comprehensive Evaluation Tool: Our screening tool incorporates over 100 parameters, providing an in-depth assessment of various storage site characteristics. These parameters cover critical aspects such as: capacity, injectivity, and containment (geologic and wellbore leakage risks).
Robust Data: Sproule ERCE ensured data was available and reliable to provide reasonable guidance as a decision making tool.
Comprehensive Evaluation Tool: Our screening tool incorporates over 100 parameters, providing an in-depth assessment of various storage site characteristics. These parameters cover critical aspects such as: capacity, injectivity, and containment (geologic and wellbore leakage risks).
Robust Data: Sproule ERCE ensured data was available and reliable to provide reasonable guidance as a decision making tool.
Values:
Informed Investment Decisions: Provided a clear framework for identifying storage sites that align with the client’s pipeline expansion plans. Improved alignment of transport infrastructure with high-potential storage sites.
Risk Avoidance: Minimized the risk of committing capital to storage locations with uncertain development prospects or operational challenges. Prevented unnecessary capital expenditures by identifying and screening out sub-optimal storage options early.
Optimized Planning: Supported long-term project viability through rigorous site selection and risk evaluation and enabled the client to adapt their infrastructure plans to future changes in storage site viability or market conditions.
Risk Avoidance: Minimized the risk of committing capital to storage locations with uncertain development prospects or operational challenges. Prevented unnecessary capital expenditures by identifying and screening out sub-optimal storage options early.
Optimized Planning: Supported long-term project viability through rigorous site selection and risk evaluation and enabled the client to adapt their infrastructure plans to future changes in storage site viability or market conditions.