Shell explores using CO2 for enhanced oil recovery
A joint industry project to investigate mechanisms for creating a CO2-driven enhanced oil recovery (CO2-EOR) industry in the North Sea has welcomed Shell as a new industry partner. CO2-EOR has the potential to bring benefits for the UK offshore industry by improving recovery from depleted oil fields using CO2 captured from power plants and industry.
Shell joins project leader, Scottish Carbon Capture & Storage (SCCS), and its existing JIP partners, the Scottish Government, Scottish Enterprise, 2Co Energy and Nexen Petroleum UK Ltd, as a second phase of research gets under way.
The project is focused on gaining a better understanding of the use of CO2 in EOR operations, with the aim of extending the life of North Sea oil fields using CO2 captured from large emitters – such as power plants and industrial facilities – and permanently storing the greenhouse gas in offshore oil reservoirs.
The first phase of research has investigated issues that could affect the development of CO2-EOR linked with CCS projects, such as the legal and regulatory frameworks and taxation. Various fiscal models are being explored, alongside an investigation of how CO2-EOR is perceived by government, regulators, NGOs, the public and other stakeholders.
The project partners will now focus on a range of research, including reservoir modeling, further analysis of fiscal arrangements and the carbon balance of CO2-EOR operations, as well as public engagement.
“We are delighted to welcome Shell to the project as we move into a second phase of research,” said SCCS Director Stuart Haszeldine. “Not only are they global leaders in CCS development, but they will also bring unrivalled technical capabilities and understanding to the JIP through their oil and gas expertise, especially in the North Sea.”
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.