One of the several key issues of Carbon Capture and Storage are questions over commercialisation, and the economics governing this technology. Most understand the technical side of injecting and storing CO2 in reservoirs, the oil and gas industry has been successfully doing this for decades. But there is substantial ambiguity over costs and business / revenue models, leading many people to discount this key technology before it reaches its commercial maturity. In our most recent project OPC addresses many of these key questions and challenges.
Reservoir assessment for Carbon Capture and Storage
OPC was tasked by a client to assess their oil and gas reservoirs for the application of Carbon Capture and Storage, part of a long-term energy transition strategy. One of the key benefits of Carbon Capture and Storage is that it has the potential to enable the client to repurpose their facilities and infrastructure, therefore substantially delaying the cost of decommissioning and abandonment. OPC performed modelling of the client’s assets to understand the practical CO2 storage capacity and appraised the geomechanics of the reservoir. OPC performed an assessment of the facilities to develop an understanding of the capital and operating expenditure of storing CO2 and provided commentary on the economics of Carbon Capture and Storage.
This enabled us to outline to the client the cost of injecting and storing one tonne of CO2 under a number of scenarios. Adding to this, OPC provided commentary describing the commercial and regulatory environment of Carbon Capture and Storage to put costs into context. This commentary included key risks and opportunities of Carbon Capture and Storage namely market failures preventing deployment, business models, emissions trading schemes (ETS), industrial hubs and clusters, and low-carbon power and hydrogen production.
The key benefits of Carbon Capture and Storage are that it will prevent assets from becoming stranded and unlocking the commercial understanding of this new industry that is key to the energy transition can demonstrate long-term value of the oil and gas industry for investors and shareholders alike. Whilst Carbon Capture and Storage can defer decommissioning costs, it also provides a pathway for new revenue and commercial opportunities. This key technology will also reduce emissions and maintain energy security. In doing so retaining key jobs and skills needed for the energy transition.
OPC has specialised in house expertise of Carbon Capture and Storage now having completed 5 fully integrated projects for clients. The renewed interest has largely been from clients requiring expert support to navigate this sometimes obscure technology. OPC was able to translate the overwhelming noise and information of Carbon Capture and Storage into a narrative that had purpose driven high value and impact for the client, ultimately enabling them to develop their energy transition strategy. We are proud to support their transition, empowering them to protect their long-term value proposition by reducing emissions and maintaining energy security.