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Carbon dioxide sequestration primer 2008





Executive Summary

Preliminary investigation suggests that the region is well positioned to compete

for CO2 grid development activities. Multiple sites deemed suitable for CO2

sequestration exist throughout Alberta. Central Alberta, however, is considered

to be the most suitable location and enjoys certain key geological, geographical,

and infrastructural advantages. In the Capital Region, the area near the Town of

Devon is uniquely positioned due to certain key advantages listed below:



1) Proximity to major coal deposits

2) Hydrological resources

3) CANMET (AST, NCUT)

4) High speed high performance research grid

5) Electrical grid

6) Demonstrated geological suitability for CO2 sequestration

7) Potential to re-task an existing gas compression facility for CO2

sequestration activities.



Various combinations of the above have warranted interest in other areas of

Alberta. The unique combination of the entire feature set found in the Devon

area seems to present an opportunity to become part of a hybrid CO2

sequestration network that enjoys a location in a highly suitable sequestration

region proximal to economic coal reserves.



A sequestration network that solves for both coal methane energy and tar sands

energy represents an accelerated case for cost recovery while amplifying Federal

and Provincial capacity to reducing greenhouse gas emissions, providing viable

policy alternatives to government.



Finally, the risks section outlines the requirements for sties to be geologically

evaluated on a case by case basis to determine the potential for leaks. At a high

level, the region is superior, but on a case by case basis, it is possible that the

area around Devon may prove to be unsuitable for CO2 sequestration. Until

suitable data sets can confirm or deny the suitability of the immediate area for

CO2 sequestration, the viability of the investigation, while promising, remains

unknown.



CO2 Sequestration

Sequestration of CO2 provides Provincial and Federal Governments real policy

alternatives to address environmental concerns while ramping up Canada’s

leadership in Energy Excellence as we continue develop the Tar Sands. Coal

gasification with CO2 sequestration provides additional energy options that

enable economic growth while reducing greenhouse gas emissions.



As enhanced energy development becomes more tightly coupled with Provincial

and Federal policy surrounding greenhouse gas emissions, establishing a policy

foundation that is both politically and economically sustainable is an overarching



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Carbon dioxide sequestration primer 2008





goal for all Albertans and Canadians. Substantial research funding from various

levels of government and from private industry create a clear and compelling

case for the continuation of sequestration technologies. Increasing political

necessity is shifting basic research towards applied research with rapid

commercial deployment capability. Arguably, the Province is increasingly being

pressured to deliver actual reductions and this supports the case for commercial

wide scale deployment of CO2 sequestration activities in the region.



Sequestration in Alberta

The Central Alberta and Southwest Alberta Regions are considered to be the

most viable long term CO2 sequestration areas in the Province as shown in this

zone representation in a study done by the Alberta Geological Survey. The first

map shows the zones described in the study.









\





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Carbon dioxide sequestration primer 2008





The second map shows the two most highly ranked zones visualized together in

dark green.



Because this region intersects substantial economically viable coal bearing

zones in addition to some of the largest suitable CO2 injection sites in the

Western Sedimentary Basin, it becomes a highly viable research and production

site for these activities. Capturing the economic development associated with

significant infrastructure build out represents an economic lift to the region while

enabling the Federal Government to meet existing policy and legislated

commitments.









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Carbon dioxide sequestration primer 2008





CO2 sequestration in combination with coal gasification

Successful testing of CO2 sequestration in combination with coal gasification has

been done in the Wabamun Lake model area.



The map below also indicates location sites of the most substantial sites of CO 2

release in the Edmonton area.









Geological Positioning

COAL Deposits

Coal deposits in the region most typically present in generalized north to south

formations with substantial economical deposits proximal to the Capital Region.



The region includes Scollard, Belly River, Horseshoe Canyon, and Belly River

production zones with proven economic coal power plants in the vicinity of the

Capital Region. These production sites, associated with power generation in

addition to CO2 sequestration activities, continue to fill an important power

generation source for coal reserves. This energy supply, ideal for the Capital

Region, may provide ample generation potential to save the upgraded synthetic

crude oil for international markets.









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Carbon dioxide sequestration primer 2008







CMB Potential









COAL Gasification – Near Zero Emissions

Near zero coal gasification studies support the viability of sequestration

strategies that are inclusive of multiple CO2 generation sources. A nexus of

various CO2 gas sequestration sites are required to move the CO2 from sites of

production to areas where it will be sequestered.



International studies demonstrating the viability of pipeline driven sequestration

activities, with a very high profile study being done on the Weyburn-Midale CO2

sequestration project where Encana purchases CO2 from a Coal Gasification

plant in Dickinson, North Dakota and ships it the the Weyburn field in

Saskatchewan via pipeline. The CO2 injection, in addition to sequestering the

gas, also has a net effect of accelerating the remaining hydrocarbons more

efficiently than traditional water injection methods.



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Carbon dioxide sequestration primer 2008





The Devon Intersection

The intersection of CMB potential and tar sands bitchumen upgrading provides

an interesting geographical reality for both Leduc County and various

municipalities located in and around the area. If a wide scale CO2 injection

program were to be undertaken, the available research suggests that

sequestration will be most active in the Central and Southwestern regions. This

would place Devon at an interesting intersection on the emerging CO 2 network.









Risks and Unknowns

The exuberance over a potential solution for greenhouse gas emissions

reduction must be tempered with a clear understanding of economic challenges

associated with carbon dioxide sequestration.





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Carbon dioxide sequestration primer 2008









In the case of CO2, the gasification process to create CO2 of >95% purity suitable

for enhanced oil recovery currently provides a gap funding challenge that will

underpin the discussions of EOR CO2 sequestration projects. Challenges

surround the technology, but unlike other technologies, this one has longitudinal

success stories. Recently, when President Obama made his first visit to Canada,

the Prime Minister and the President noted that the Weyburn-Midale project

stands as an example of collaboration.



Because it is feasible to reduce oil emissions from tar sands production to the

same CO2 footprint as a barrel of Saudi Light, continued development of the tar

sands is warranted due to current capabilities to reduce emissions drastically

right now. The promises of technological advancements mean even lower

emissions of carbon dioxide. Environmental stewardship is an integral and

beneficial part of the continued economic development of the Alberta tar sands

helping to create the revenue needed to advance progress towards clean

renewable energy.









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Carbon dioxide sequestration primer 2008







Bibliography

Alberta Geological Survey and Energy Resources Conservation Board. (2008, January 09). Alberta Coal and CMB Exploration Areas.

Retrieved March 24, 2008, from Alberta Geological Survey: http://www.ags.gov.ab.ca/activities/CBM/coal_and_cbm_intro.shtml

Alberta Geological Survey. (2008, February 26). CO2 and Acid Gas in Alberta. Retrieved March 09, 2008, from Alberta Geololgical

Survey: http://www.ags.gov.ab.ca/activities/CO2/CO2_main.html

Alberta Geological Survey. (n.d.). CO2 Comparative Modeling - Wabamun Lake Project. Retrieved March 09, 2008, from Alberta

Geological Survey: http://www.ags.gov.ab.ca/activities/wabamun/Wabamun_base.html

Christopher D. Hawkes, U. o. (2005). Analysis of In-Situ Stress Regime in the Alberta Basic, Canada, for Performance Assessment of

CO2 Geological Sequestration Sites. Fourth Annual Conference on Carbon Capture and Sequestration, US DOE & NETL, May 2-5,

2005 (p. 22). United States Department of Energy.

Encana Corporation. (2008). Weyburn-Midale CO2 Project. Retrieved March 08, 2008, from Petroleum Technology Research Centre:

http://www.ptrc.ca/weyburn_overview.php

ITC - International Test Centre for CO2 Capture. (2005). ITC - Home. Retrieved March 08, 2008, from International Test Centre for

CO2 Capture: http://www.co2-research.ca/

K. Michael, S. B. (2006). Comprehensive Characterization of a Potential Site for CO2 Geological Storage in Central Alberta, Canada.

PROCEEDINGS, CO2SC Symposium 2006. Berkeley: Lawrence Berkeley National Laboratory, Berkeley, California, March 20-22,

2006.

National Centre for Upgrading Technology. (2002). NCUT - The National Centre for Upgrading Technology. Retrieved March 08,

2008, from NCUT - The National Centre for Upgrading Technology: http://www.ncut.com/

Natural Resources Canada. (2008). CANMENT Energy Technology Centre - Devon - Home Page. Retrieved March 08, 2008, from

Natural Resources Canada: http://www.nrcan.gc.ca/es/etb/cwrc/English/home_e.html

PTRC. (n.d.). Weburn-Midale CO2 Sequestration Project Overview. Retrieved March 08, 2008, from PTRC:

http://www.ptrc.ca/weyburn_overview.php









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