Major Step Forward for CO2 Storage Project

Media Release

23 February 2007

Major Step Forward for CO2 Storage Project

A major new phase has started in one of the most important CO2 capture and storage projects internationally, in which New Zealand is investing.

The Australian-based Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) has begun drilling a new deep research well at Otway Basin in south-western Victoria to test whether CO2 can be safely stored there.

Coal producer, Solid Energy is a founding shareholder in the company which was formed to operate Australia’s first project to trial carbon dioxide (CO2) capture and storage technology.

Solid Energy has committed more than A$2 million towards the research of the Centre, which is in turn part of a 20-year, NZ$100 million investment it is making in clean coal technology and new energy developments.

“New Zealand has vast opportunities for underground storage of CO2, including in depleted gas reservoirs and in deep coal seams. If we are to exploit our huge lignite reserves, we must work to address the challenge of CO2. The Otway project is able to build on the considerable experience of the international oil industry, which has used CO2 injection into geological formations for many years to help recover oil and gas from hydrocarbon reservoirs,” Solid Energy’s Chief Executive Officer, Dr Don Elder says.

According to CO2CRC Chief Executive, Dr Peter Cook, the new well will enable geologists to confirm their computer modelling of the underground storage site is correct.

“The importance of this stage of our research project cannot be emphasised too strongly. It is the start of the testing that will demonstrate that computer modelling and other methods of geosequestration site selection works. It will also confirm that the site is suitable for CO2 storage.

“During this research phase, geologists will conduct a detailed analysis of the rock samples taken from the new well to confirm the existence of suitable rock sequences for geosequestration.

“The sequence we expect to find of porous sandstone overlain by impermeable mudstone will ensure that CO2 can be safely and securely stored at this site,” Dr Cook says.

Known as CRC-1, the 2300 metre well will also confirm for CO2CRC geologists the exact depth and location of the potential underground CO2 storage reservoir.

“One of the most important elements of the project is to demonstrate to the community, government regulators and industry that geosequestration works and that CO2 can be monitored in rocks deep in the subsurface,” Dr Cook says.

“Monitoring activities that are already in place in readiness for the injection of CO2 in the second half of this year,” Dr Cook says.

“To this end we have designed and are putting in place one of the world’s leading monitoring and verification programs for this type of project.

“In fact, baseline levels are already being recorded for soil, air and groundwater. These baseline recordings will be regularly compared with CO2 levels taken throughout the project.

“If any changes occur to the CO2 levels in the soil, groundwater and air, CO2CRC will investigate the causes. Changes could be due to a number of biological and environmental reasons,” Dr Cook says.

CO2CRC collaborates with leading international and national carbon capture and storage experts to conduct world-class research into CO2 geosequestration.

CO2CRC industry and Australian state core partners are: ACARP, Anglo American, BHP Billiton, BP, Chevron, ConocoPhillips, NSW Department of Primary Industries, NZ Resource Consortium, Rio Tinto, Schlumberger, Shell, Foundation for Research Science and Technology (NZ), Solid Energy, Stanwell, the Victorian Department of Primary Industries, Woodside and Xstrata.

Research organisations supporting and participating in the CO2CRC geosequestration research project in Victoria include (from Australia): CSIRO, Geoscience Australia and the Universities of Adelaide, Curtin, Melbourne, Monash and NSW; (from other nations): The Alberta Research Council in Canada and the US Lawrence Berkeley National Laboratory.

CO2CRC is also supported through the Australian Government’s CRC Programme.

ENDS

www.co2crc.com.au

Note to Editors: Solid Energy is developing a number of research and development programmes to specifically address the viability of applying clean coal technologies in New Zealand and in the development of alternative fuels. This includes new coal-based energy sources, such as coal seam gas which it is currently piloting in the Waikato, and the further development of biomass for industrial and commercial energy. Further information is available from Solid Energy.
Images of the drilling of CRC-1 can be found at: http://www.co2crc.com.au/imagelibrary/diagrams_g.html

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