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Tariq Siddiqui's picture
COO, Upstream EP Advisors LLC

Oil & Energy | Business Development | Capital Projects | Offshore Wind -  Proven leader in offshore development and operations, with 25+ years’ expertise in managing business through cycles...

  • Member since 2021
  • 152 items added with 101,232 views
  • Mar 23, 2022
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A tremendous effort is needed to reduce current global emission from ~40 gigaton /year today to net-zero in 2050.  

Key Insights

  • Most of this efforts need to focus on avoiding and reducing emission (avoidance & reduction projects).
  • What cannot be avoided and reduced (difficult industries like aviation and cement), it  must be offset with carbon credits from removal projects (Nature Based Solutions and technology based solution like Direct Air Capture (DAC) and geological sequestration to achieve net-zero.  
  • Class-II & Class-VI injection wells are the two main categories that handle geological sequestration of CO2 ; former in the CO2-EOR storage ad the later in the Saline Aquifer storage.
  • Class-VI wells; are the newest category for CO2 injection in saline aquifer, only two states have primacy to issue permits; N. Dakota and Wyoming
  • The Class-VI permits is cumbersome, it may take years so plan ahead for the lead time
  • If there is more than one well, than each well needs separate permit
  • Having class-VI well permit does not automatically qualifies for the credit; California Air Resource Board's LCF that follow GHG protocol need to full fill more requirement

Bottomline

In order for CCS to gain traction, it has to move from one off project to Hub-development; with several sources and sink. The permitting and approval process also need to be automated, accelerated and more efficient. In US, there is a tremendous opportunity for a hub in a Houston Shipping channel with several industrial emitters and for geological storage in saline aquifers offshore and CO2-EOR hub in permian onshore.

 

 

 

 

 

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