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Case Studies 

Carbon Sequestration Analysis Leads to Decision to Pursue Alternate Opportunity and Mitigate Loss

Canada / 2021 / Carbon Management

A major infrastructure client identified a carbon capture and sequestration project in North America in close proximity to multiple CO2 emission sources, existing pipeline infrastructure and identified deep saline aquifers with storage potential. Sproule’s experts conducted a carbon sequestration assessment to determine project feasibility and helped the client mitigate potential losses.

Project Highlights

  • Assessment of carbon sequestration potential to support project feasibility
  • Limited technical data and undeveloped regulatory framework presented challenges
  • Sproule presented alternatives to client to support the proposed project
  • Recommendation ensured client could make informed decision not to proceed with confidence

Challenge

  • Sproule’s client had an identified carbon capture and sequestration project in North America in close proximity to multiple CO2 emission sources, existing pipeline infrastructure and identified deep saline aquifers with storage potential.
  • Sproule was engaged to evaluate the characteristics of the potential saline aquifers and to assess the regulatory framework to formulate an assessment of carbon storage development feasibility.
  • Analysis focused on determining aquifers that were most likely to exhibit sufficient thickness, areal extent, porosity, permeability and containment to result in material CO2 storage resource potential.

Solution

  • Sproule assembled a team of highly experienced individuals with specific regional expertise in screening, storing and monitoring CO2 and natural gas storage complemented by commercial professionals experienced in regulatory and land matters.
  • Target region selected by the client was thinner than expected, and the cleaner intervals had poor reservoir quality. Sproule expanded the study area and determined similar results.
  • Sproule recommended two adjacent regions be evaluated to support the project.
  • Recommended regions showed more storage potential but were deemed insufficient to support expected emission volumes over the project life.

Value

  • Results of the analysis were benchmarked against values from other commercial CO2 sequestration projects. Based on the analysis, the lower storage resource volume, poor injectivity, and immature regulatory framework did not support project feasibility
  • Independent analysis and recommendation was a critical component for client’s executive team to decide to pursue other alternatives
  • Sproule’s independent advice, supported by diligent analysis, helped client make an informed decision with confidence not to proceed, mitigating potential future losses from the contemplated project



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Richard Hares, P.Eng.
Principal, Carbon Management

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