Carbon Capture and Storage FAQs

Carbon capture and storage, or CCS, is the process of capturing carbon dioxide (CO₂) emissions before they enter the earth's atmosphere and safely storing the CO₂ in geological formations.

While these terms are sometimes used interchangeably, carbon storage most commonly refers to the geologic storage of pressurized liquid CO₂ in subsurface formations like porous rock, coal seams, aquifers, or depleted oil and gas reservoirs.

Carbon sequestration refers to the overall process of removing atmospheric carbon and storing the carbon in organic matter and geological formations.

A growing number of companies are committing to reducing emissions to net zero within the next few decades. However, it will take decades to completely shift to renewable energy. With this in mind, it’s crucial to act now on carbon capture and sequestration to ensure equitable access to energy while reducing our carbon footprint.

To learn more about the effectiveness and need for CCS, check out our blog article: Why CCS Technologies are Instrumental as the World Transitions to Clean Energy

Geological carbon storage is the practice of storing CO₂ in the earth's subsurface, often through injection into saline formations and other porous rocks.

Saline storage is a type of CO₂ storage that involves trapping the CO₂ in deep saline formations. Saline storage has multiple advantages, including a large estimated carbon storage capacity in the United States and easy access for most large-scale CO₂ emitters.

Multiple industries can benefit from sequestering carbon, including:

• Fertilizer (ammonia)
• Fossil fuels (oil, natural gas, coal)
• Power
• Steel
• Manufacturing

A variety of factors influence your site's ability to succeed with carbon capture and storage, including location, proximity to geological formations, and other non-technical factors.

Our team of experts can help you explore your options for carbon storage with a complimentary, risk-free assessment.

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A CCS project can be broken down into 5 main stages.

• Feasibility: Geotechnical and operations experts examine a storage site for geologic and economic potential
• Modeling: Based on the results of the feasibility study, a detailed geologic assessment is completed and a permitting plan is drafted
• Characterization and Permitting: A test well is drilled and used to collect data for additional models and to file for permits. This phase includes the completion of construction, implementation and monitoring plans
• Construction: The carbon capture infrastructure is designed and built in addition to the drilling of monitoring and injection wells.
• Operation and Monitoring: This phase kicks off the injection of CO₂ and monetization of 45Q tax credits. Consistent long-term monitoring is performed by subsurface experts until 10 years after each well is closed.

For more information on each project stage, check out our blog article: A Roadmap to CCS Success

Initial investments are needed for the stages of CCS before tax credits or incentives can be monetized. Site owners and managers typically rely on one of these funding options to raise capital:

• Investment Funds
• Tax Equity
• Self-Funding

Carbon capture and storage is an immediate solution for companies to quickly reach net-zero emissions.

45Q is a part of the tax code that provides tax credits for each metric ton of carbon dioxide captured and stored, used for enhanced oil recovery (EOR), or utilized for other sequestration projects. These credits provide an incentive for companies to invest in the sequestration of carbon emissions while reaping tax benefits.

To be eligible for 45Q tax credits, sites must meet CO₂ capture and storage requirements as well as non-technical requirements.

For more information on your eligibility for 45Q, check out our white paper or connect with our experts.

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The Low Carbon Fuel Standard (LCFS) is a standard in the state of California that allows companies that fall below emission benchmarks to still receive credits.

To be eligible for LCFS, a site must be located in California and continue to meet the LCFS carbon intensity standards annually.

48A is a recent credit that was introduced to allow sites to increase CO₂ emission capture due to lower benchmarks and requirements for efficiency.

A site is eligible to receive 48A credits if specific carbon capture and storage criteria are met.

Carbon sequestration well drilling involves creating wells specifically designed for carbon capture and storage (CCS). These wells are optimized for injecting and containing liquified carbon dioxide (CO₂), and they must remain stable and functional for decades after injection is complete.

There are four distinct types of CCS wells, each with different purposes and data collection requirements:

1. Preliminary Sequestration Stratigraphic Test Well (STW): Evaluates storage site suitability for CO₂ sequestration.
2. Shallow Monitoring Well: Monitors conditions above the confining layer and detects potential CO₂ migration.
3. Deep Monitoring Well: Monitors underground sources of drinking water and seismic activity.
4. Injector Well: The primary well through which CO₂ is injected into deep underground formations like saline aquifers.

CCS wells have unique requirements because they involve injecting fluids rather than extracting them, and they must remain stable and functional for decades after injection is complete. These wells face increasing pressures over time, require extensive data collection, and must be designed to prevent leakage of CO₂ emissions.

Here are the key differences:

1. Purpose: Sequestration wells are for injecting fluids, while oil & gas wells are for extracting fluids.
2. Pressure: Sequestration wells face increasing pressures over time, whereas oil & gas wells experience decreasing pressures.
3. Data Collection: Sequestration wells have high data collection needs before, during, and after drilling.
4. Design and Reliability: Sequestration wells require a highly stable and durable design to withstand injection pressures and prevent CO₂ leakage.

Class VI sequestration wells operate under a distinct regulatory framework with a different permit application process than oil & gas wells. They may also be subject to additional state-specific regulations and scrutiny from funding agencies. Permitting may involve environmental impact studies and obtaining additional permits, especially if the drilling location is near sensitive areas.

Carbon storage drilling has highly demanding data collection requirements before, during, and after the CO₂ storage project.

This includes:

• Preliminary Sequestration Stratigraphic Test Well (STW): Coring, hydrogeologic characterization, rock properties, fluid sampling, pressure, and acoustics.
• Shallow Monitoring Well: Pressure and temperature, groundwater quality, gas detection, moisture content. Deep
• Monitoring Well: Seismic activity, pressure and temperature, fluid sampling, CO₂ presence and concentration.
• Injector Well: Injection rate and volume, well integrity, formation response, CO₂ plume monitoring.

High-quality data is needed to ensure the stability of the well during and after drilling, confirm injection rates, and assess storage potential. Complete and accurate data is also critical for obtaining permits and permission to inject CO₂.

To maintain continuous operation during injection and last for decades post-closure, sequestration wells must utilize a different set of design and construction methods, including:

• Pressure Management: Sequestration wells must handle increasing pressures and prevent CO₂ leakage.
• Corrosion Resistance: The well must endure the corrosive environment created by the injection of CO₂.
• Casing and Cement: The casing must have high burst strength and corrosion resistance, and a higher class of cement material is needed for durability.

The drilling strategy for carbon sequestration wells is significantly different from that of traditional oil and gas wells due to the unique requirements and challenges associated with CCUS projects. Here are the key differences:

• Precision and Reliability: CCS wells require a higher degree of precision to ensure the well is drilled correctly the first time. A poorly drilled sequestration well could compromise the entire project, leading to increased costs and potential failure.
• Adaptability: The drilling strategy must be adaptable, with decision-making informed by data collected before and during drilling. As actual cuttings are recovered and the geology becomes clearer, deviations from the initial plan may be necessary.
• Long-term Stability: The well must be built to maintain continuous operation without interruptions during injection and last for decades after the project is completed, ensuring the safe storage of CO₂ without leakage through the wellbore.
• Data Collection: Stringent data collection requirements significantly impact well design and drilling strategy. High-quality data is needed to ensure well stability during and after drilling, confirm injection rates, and assess storage capacity.
• Well Design and Materials: The casing must be designed for high burst strength and corrosion resistance, and a higher class of cement material is needed for high chemical resistance and durability.

These factors influence almost every aspect of drilling and well design, including the choice of drilling rig, equipment, bits, drilling fluid (mud), casing design, and bottom hole assemblies.

The right drilling management partner can be critical to a successful carbon sequestration project. Trusting a knowledgeable and experienced partner can help mitigate risks, reduce project expenses and ensure the well is properly designed and executed for long-term CO₂ storage.

Look for CCUS drilling partners that demonstrate the following:

• Experience: Specific experience in drilling U.S. Environmental Protection Agency (EPA) Class VI wells for CCS. An oil and gas drilling partner without Class VI experience may not have the specialized expertise needed for effective sequestration drilling.
• Expertise: Deep technical acumen in geophysics, subsurface geology, reservoir modeling and engineering to accurately analyze site data and inform decision-making.
• Project Management: Excellent project and vendor management skills are essential to ensure smooth project execution.
• Full Lifecycle Understanding: A through understanding of the entire CCS lifecycle, from site selection to long-term monitoring. They must also be highly knowledgeable in the regulatory environment(s) governing each of these stages.

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CCS site operations refers to the practice of maintaining and managing a storage site throughout the project's lifetime.

Carbon storage site operations can last for anywhere between 20-90 years, depending on the length of the injection phase (12-30 years) and the post-injection phase (5-50 years).

Site operations is comprised of a variety of tasks across the project lifetime, including:

• Injection monitoring
• Plume modeling and monitoring
• Well operation, inspection and maintenance
• Reporting and compliance
• Decommissioning and site closure
• Long-term monitoring

Injection monitoring is the ongoing process of monitoring injection rates and pressures to ensure safe operation.

Captured CO2 can be injected for up to 30 years.

Plume modeling and monitoring is the practice of observing the CO2 plume to watch current behavior, predict future movement and ensure safe sequestration based on the model.

Well operation, inspection and maintenance is the continual monitoring and examination of the injection well to ensure safety is being maintained. If a problem is identified, corrective action should be taken by the site operations manager and team.

Reporting and compliance refers to the verification of CCS project details through the submission of reports to federal agencies. Submitting these reports ensures that the project can continue to qualify for tax credits or direct payments through 45Q.

Quarterly and annual reports documenting the amount of CO2 stored must be submitted to the IRS, as well as semi-annual environmental compliance reports are required by the EPA.

Decommissioning and site closure is the closing of the injection well and full remediation of the storage site.

Long-term monitoring is the process of supervising the CO2 plume's stability using sensors, updating models based on the actual plume's behavior and reporting to the EPA.

Post-injection monitoring of a storage site can take between 5-50 years, based on the proven stability of the CO2 plume.

An effective CCS site operations partner will have these characteristics:

• Stability
• CCS Experience
• Scientific Expertise
• Data Science and Modeling Capabilities
• Regulatory Compliance
• Business Model
• End-to-End Service

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Carbon capture and storage risk refers to the probability of a carbon dioxide capture and storage project resulting in an adverse outcome.

CCS risk is the probability of an unwanted result, whereas CCS uncertainty stands for the range of possible good or bad outcomes.

Types of CCS (or CCUS) risk include:

• Policy and stakeholder risk
• Economic risk
• Technical risk

CCS policy and stakeholder risk refers to risk created by regulations put in place by government agencies like the United States Environmental Protection Agency, as well as stakeholders such as investors and community members.

Policy and stakeholder-related carbon storage risks include:

• Government incentives or task credits
• Policy stability
• Regulatory stability
• Stakeholder engagement or acceptance

CCS economic risk is risk resulting from the financial aspects of a carbon dioxide capture and storage project.

Economic risk involved in CCS can include:

• High capital and operational costs
• Borrowing costs
• Insurance costs
• Revenue/incentive stability
• Cost inflation

CCS technical risk is risk created by operational and scientific complexities involved in a carbon capture and storage project.

Technical risks that can be a part of a carbon sequestration project can include:

• Maturity levels of CCS technologies
• High-level expertise
• Project execution
• Safety

Risk is present during each stage of a geological storage project, including CO₂ capture, transport and long-term storage.

Carbon capture and storage risk arises from multiple factors, including:

• Large capital investments, with significant funds required early in the process
• Lengthy project timelines often spanning decades
• Technical complexity, with interdependent factors and technologies at different maturity levels
• Multiple stakeholders spanning regulatory bodies like the U.S. Department of Energy, project investors, carbon markets and community members

 

CCS risk can be successfully managed at each stage through strategic and proactive approaches to risk mitigation.

Multiple tactics can be used to de-risk or reduce CCS risk, including:

• Cross-chain risk management
• Project schedule and budget interaction
• System design integration

 

Utilizing an integrated and methodical approach to CCS risk has multiple benefits:

• Reduce uncertainty
• Provide a clearer picture of the risk profile
• Improve project outcomes

 

Managing carbon storage risk requires deep technical expertise and experience, including:

• Subsurface geology and geophysics
• Wellbore drilling and CO₂ injection site technologies and methods
• Monitoring technologies
• Modeling and data analysis of geological formations
• CO₂ storage site operations
• Program management

 

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