1. CCS: Critical Need and
Challenges
Arthur Lee
Chevron Fellow and Principal Advisor
Chevron Corporation
15 November 2013
© 2013 Chevron
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2. Critical Need for CCS

IEA analysis shows that CCS
must be an integral part of any
lowest-cost mitigation scenario
where long-term global average
temperature increases are limited
to significantly less than 4 °C,
particularly for 2 °C scenarios
(2DS). Other studies have
reached similar conclusions.

By 2050, a total of over 950
gigawatts (GW) of power
generation capacity would have
be equipped with capture, or 8%
of all power generation capacity
globally.
© 2013 Chevron

Industrial applications of CCS are just
as important in the 2DS, particularly in
iron and steel manufacture and biofuel
production, as they would account for
45% of the total volume captured and
stored between 2013 and 2050.

3. Challenges

Costs: Estimated CO2 capture cost
continues to be high for the power
sector, the refining industry and
other industries. More than $100 to
$200 per tonne CO2. Lower cost
exists only for applications where
there is purer stream of CO2, such
as in natural gas separation.

Policy: Few nations in the world
have policy driver to limit CO2
emissions, other than the EU.

Low CO2 Price: EU ETS CO2 price
is so low (a few euros) that it does
not present any incentive to install
CCS technology

Infrastructure: Role of government
or private sector (?) to develop largescale CO2 transport pipelines
© 2013 Chevron


CCS Policy and Regulatory Framework:
Most countries in the world do not have
any policy and regulatory framework to
deploy CCS. Only U.S., parts of Canada,
Australia and EU have such policies and
regulatory frameworks.
Public Acceptance: Largely unknown or
mixed results at best (Shell’s Barendrecht
Project cancelled due to public pressure).

4. Gorgon Project
Australia’s Largest Single Resource Project
 3 x nominal 5 MTPA LNG trains
and domestic gas plant
The Australian Government has committed
$60 million to the Gorgon Project's Carbon
Dioxide Injection Project as part of the Low
Emissions Technology Demonstration Fund.
 A domestic gas plant with
capacity of 275 MMscf per day
 The world’s largest carbon
dioxide injection project
Joint Venture Participants
 Chevron (47.3%)
 ExxonMobil (25%)
 Shell (25%)
 Osaka Gas (1.25%)
 Tokyo Gas (1%)
 Chubu Electric Power (0.417%)
© 2013 Chevron
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5. Australian Industry Participation
$20 billion
committed to local industry
10,000 jobs
created around Australia
Australian Marine Complex
Henderson, Western Australia
© 2013 Chevron
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6. LNG Plant Site
Materials Offloading Facility
Condensate Tanks
LNG Jetty
Permanent
Operations
Facility
LNG Tanks
LNG Train 1
Gas Turbine Generators
AGRU Train 1
© 2013 Chevron
Pre-assembled Rack Modules
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7. Full Steam Ahead: LNG Train 1
LNG Train 1
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8. Taking Shape: Acid Gas Removal Unit Train 1
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9. Taking Shape: Acid Gas Removal Unit Train 1
Amine Absorber
AGRU process
modules
AGRU Train 1
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10. Pre-assembled Rack Modules (PARs)
Pre-assembled
Rack Modules
© 2013 Chevron
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11. Gorgon Upstream Scope
Jansz-Io Field
Installation of
Subsea Equipment
Perth
Drilling Activities
Scarp Crossing
Gorgon Field
Barrow Island
Domestic Gas Pipeline Installation
Domestic Gas Metering Station
© 2013 Chevron
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12. Subsea Tree Installation
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13. Offshore Pipeline Installation Continues
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14. Carbon Dioxide Injection Project
Drill Center A
Drill Center B
Drill Center C
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15. Approved Development Concept
CO2 Injection and Reservoir Management
 9 CO2 Injection Wells (3 drill centers)
 Active pressure management (2 drill centers)
o 4 water production wells
o 2 water injection wells
 2 Reservoir Surveillance Wells
 7 kilometer buried CO2 Pipeline System
 Surface injection facilities
 Major compression units within LNG plant
 Extensive reservoir and environmental
monitoring program
© 2013 Chevron
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