Development of an Integrated Carbon Capture, Utilization, and Storage Hub in the United States

8 Pages Posted: 8 Apr 2021

See all articles by Mackenzie Scharenberg

Mackenzie Scharenberg

Battelle

Diana Bacon

Government of the United States of America - Pacific Northwest National Laboratory

Dan Blankenau

Great Plains Energy, Inc.

Dana Divine

University of Nebraska at Lincoln - School of Natural Resources

Andrew Duguid

Advanced Resources International

Jared Hawkins

Battelle Memorial Institute

Michael Heinrichs

Battelle

Jennifer Hollenbach

University of Kansas - Kansas Geological Survey

Yevhen Holubnyak

University of Kansas - Kansas Geological Survey; Heriot Watt University

R. M. Joeckel

University of Nebraska at Lincoln - School of Natural Resources

Laura Keister

Battelle Memorial Institute

George Koperna

Advanced Resources International

Si-Yong Lee

Schlumberger

Scott McDonald

Archer Daniels Midland Company

Richard Middleton

Carbon Solutions LLC

Eric Meuleman

ION Clean Energy

David Riestenberg

Advanced Resources International

Valerie Smith

Battelle Memorial Institute

John Swanson

Nebraska Public Power District

Jared Walker

Battelle Memorial Institute

Date Written: April 6, 2021

Abstract

The Integrated Midcontinent Stacked Carbon Storage Hub (IMSCS-HUB) is a first of a kind carbon capture, utilization, and storage (CCUS) project in the midwestern United States. The project is supported under the US Department of Energy’s Carbon Storage Assurance Facility Enterprise (CarbonSAFE) program. The IMSCS-HUB will collect 15 million metric tonnes (MT) per year or more in Iowa and Nebraska and transport it to saline and CO2 enhanced oil recovery (EOR) storage sites in western Nebraska, Kansas, and Texas. Sources include multiple ethanol plants (approximately 1.8 MT/Year), coal fired electric plants (approximately 12.6 MT/Year), and natural gas fired electric plants (approximately 0.6 MT/Year). The passage of an updated tax credit for storage in February 2018 provides a strong economic driver for all of the sources in the hub to develop a hub project. The tax credit provides approximately $50/T for CO2 stored in saline storage units and $35/T for CO2 stored as part of CO2-EOR production. In addition, the inclusion of many bio-energy sources such as ethanol plants allows for early implementation of the project by taking advantage of inexpensive capture ($10/MT to $12/MT) and subsidies from California’s Low Carbon Fuel Standard program. Capture cost estimates for the electric utilities is approximately $33/MT. Transport costs range from $0.6/MT to $5.40/MT. Storage costs range from $3/MT to $4/MT. The hub partners include Battelle, Advanced Resources International, Archer Daniels Midland, Nebraska Public Power District, and others.

The region of the project stretching from eastern Iowa to southwestern Nebraska acts as a source corridor, where sources add CO2 to the transport network. The transportation network will consist of a common carrier trunk line designed to connect the largest sources. Smaller sources will be connected through spur lines. The final routing will be selected using the location of existing rights away and environmental factors such as resource locations the critical species habitats. SimCCS and other tools will be used to finalize the routes.

The region of the project from southwestern Nebraska to southwest Kansas in a storage corridor where CO2 may be stored in either saline projects or CO2-EOR projects. South of Kansas the CO2 will be transported to Texas for utilization in CO2-EOR. Two saline storage sites and two EOR opportunities have been identified as anchor projects for the storage corridor. The anchor sites are at the northern and southern sides of the storage corridor and will act to validate the storage potential of the entire corridor. In Nebraska saline storage is being planned in Perkins county and CO2-EOR is being studied at Sleepy Hollow Field in Red Willow county. In Kansas, saline storage and CO2- EOR are being planned for Patterson-Heinitz-Hartland (Patterson) Field in Kearney County. Multiple storage formations occur vertically at each site allowing for stacked storage minimizing the surface footprint for monitoring and maximizes the use of storage resources at each site.
Data from new tests wells or seismic surveys for each of the sites has been used to create detailed geologic and reservoir models. Modeling for each of the anchor saline sites indicates at least a 50 million tonne storage capacity. The CO2-EOR projects are expected to utilize 2.2 MT and 3.9 MT of CO2 and produce 4.3 and 9.8 million barrels of oil for Sleepy Hollow and Patterson Fields, respectively. The inclusion of CO2-EOR along with saline storage adds an additional economic driver for the project with an estimated revenue of $128/MT and $154/MT of CO2 utilized.
The results of the first two phases of the project demonstrate the feasibility of the midcontinent hub concept that couples a diverse set of redundant sources to multiple saline and CO2-EOR projects. The results show that the economics and geology are favorable for early implementation of commercial scale CCUS. The existence of low carbon fuel standard subsidies, storage tax credits, and revenue from produced oil act as economic drivers to support the hub in addition to the climate benefit gained by storing CO2 the hub supports local agriculture and oil production helping to create public support.

This presentation will discuss the project development and project economics and how they relate to both stacked saline storage and CO2-EOR in the development of a storage hub. The development of a hub project allows the transport of CO2 from areas such as Iowa that have poor storage potential to areas such as western Nebraska, Kansas, and Texas that have high storage potential. This is critical to the implementation of CCUS in the midcontinent US. The presentation will also discuss the advantage of including redundant sources and sinks to develop a CO2 market that can sustain itself as a commercial enterprise after government funding ends.

Keywords: CO2, CarbonSAFE, Integrated, Carbon Capture, EOR, CCUS, Ethanol

Suggested Citation

Scharenberg, Mackenzie and Bacon, Diana and Blankenau, Dan and Divine, Dana and Duguid, Andrew and Hawkins, Jared and Heinrichs, Michael and Hollenbach, Jennifer and Holubnyak, Yevhen and Joeckel, R. M. and Keister, Laura and Koperna, George and Lee, Si-Yong and McDonald, Scott and Middleton, Richard and Meuleman, Eric and Riestenberg, David and Smith, Valerie and Swanson, John and Walker, Jared, Development of an Integrated Carbon Capture, Utilization, and Storage Hub in the United States (April 6, 2021). Proceedings of the 15th Greenhouse Gas Control Technologies Conference 15-18 March 2021, Available at SSRN: https://ssrn.com/abstract=3820814 or http://dx.doi.org/10.2139/ssrn.3820814

Mackenzie Scharenberg (Contact Author)

Battelle ( email )

505 Kng Avenue
Columbus, OH 43201
United States

Diana Bacon

Government of the United States of America - Pacific Northwest National Laboratory

901 D Street
370 L'Enfant Promenade, S.W.
Washington, DC 20024-2115
United States

Dan Blankenau

Great Plains Energy, Inc.

6121 58th Street
Lincoln, NE 68516
United States

Dana Divine

University of Nebraska at Lincoln - School of Natural Resources

NE
United States

Andrew Duguid

Advanced Resources International ( email )

4501 Fairfax Drive
Suite 910
Fairfax, VA 22203
United States

Jared Hawkins

Battelle Memorial Institute

4000 NE 41st St.
Seattle, WA 98105
United States

Michael Heinrichs

Battelle ( email )

505 Kng Avenue
Columbus, OH 43201
United States

Jennifer Hollenbach

University of Kansas - Kansas Geological Survey

1930 Constant Ave
Lawrence, KS 66047
United States

Yevhen Holubnyak

University of Kansas - Kansas Geological Survey ( email )

1930 Constant Ave
Lawrence, KS 66047
United States

Heriot Watt University ( email )

Institute of Petroleum Engineering
Edinburgh, EH144AS
United Kingdom

R. M. Joeckel

University of Nebraska at Lincoln - School of Natural Resources

NE
United States

Laura Keister

Battelle Memorial Institute

4000 NE 41st St.
Seattle, WA 98105
United States

George Koperna

Advanced Resources International

4501 Fairfax Drive
Suite 910
Fairfax, VA 22203
United States

Si-Yong Lee

Schlumberger

1675 Broadway, Suite 600
Denver, CO 80202
United States

Scott McDonald

Archer Daniels Midland Company

1001 North Brush College Road
Decatur, IL 62521
United States

Richard Middleton

Carbon Solutions LLC ( email )

820 S Henderson St
Bloomington, IN 47401
United States
47401 (Fax)

HOME PAGE: http://https://www.carbonsolutionsllc.com/

Eric Meuleman

ION Clean Energy

3052 Sterling Cir
Boulder, CO 80301
United States

David Riestenberg

Advanced Resources International ( email )

4501 Fairfax Drive
Suite 910
Fairfax, VA 22203
United States

Valerie Smith

Battelle Memorial Institute

4000 NE 41st St.
Seattle, WA 98105
United States

John Swanson

Nebraska Public Power District

Jared Walker

Battelle Memorial Institute

4000 NE 41st St.
Seattle, WA 98105
United States

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