Overview of Big Sky Carbon Partnership for Western Regional Air Partnership Meeting

1. Overview for the Big Sky Carbon Partnershipfor Western Regional Air Partnership meetingApril 5, 2006 Dr. Susan Capalbo, Director Big Sky Carbon Sequestration Partnership Montana State University

2. What is Carbon Sequestration?Capture and storage of CO2 and other Greenhouse Gases that would otherwise be emitted to the atmosphere • Capture can occur: • at the point of emission • when absorbed from air Storage locations include: • underground reservoirs • dissolved in deep oceans • converted to solid material • trees, grasses, soils, or algae

3. Sequestration = StabilizationCould account for >60% of reduction gap in 2050

5. Plains West Coast Southwest 7 Regional Carbon Sequestration Partnerships Big Sky Midwest Illinois Basin Southeast

6. GCCI goal to lower GHG intensity 18% improvement by 2012 CO2 Regulation at state, regional, National levels Mandatory CO2 requirements in MA, NH, OR Other states and regions considering action Recent legislation introduced by Sen. Hagel (3 bills, inc. S.388-voluntary) and Senator Byrd (S.745) Renewed emphasis on U.S. coal Electric power generation Feedstock for hydrogen economy FutureGen Carbon Sequestration provides a means to achieve economic growth and environmental goals A Growing Case for Carbon Sequestration

7. Criteria for Successful Technologies to Sequester Carbon • Be effective and cost-competitive • Provide stable long-term storag • Be acceptable to the public

8. Cost of cutting carbon emissions is immediate, but the benefits are deferred and thinly spread GHG buildups are a global “externality,” not regional Absence of non-voluntary carbon emissions reduction policy or mandate Connecting public anxiety about climate change with willingness to pay …and the challenges of carbon sequestration

9. Nearly 40% of total U.S. coal reserves are in the Big Sky region Huge water resources to support hydroelectric power Many areas of high potential to support wind power Natural gas reserves may also be tapped in the future Nuclear power – part of the energy mix Biomass and bioenergy alternatives, ethanol options Canadian heavy oils, tar sands The Big Sky Partnership Region Contains Substantial Energy Resources

10. Partnership Goal: Develop infrastructure to support and enable future carbon sequestration field tests and deployment (regional orientation) Coalitions that represent regional interests and serve as driving force for carbon sequestration projects Phase I: 2003-2005 scoping/screening effort Phase II: (i) Deployment of sequestration field validations and (ii) economic assessments of sequestration options and opportunities for CO2 emission offsets Overview

11. “Wealth of sinks, wealth for future energy supplies” Examining geological and terrestrial sinks Energy security, economic growth Potential for new energy generation using coal, natural gas, and other biofuels/renewables Marriage of good science-based technologies with good economics Context:

12. Research Institutions (universities, labs, others) including MSU, SDSMT, UI, UWYO, ISU, BSU, PNWD/PNNL, LANL, INL State, federal agencies (includes USDA, USGS, NASA) Industry members including major power producers Carbon trading entities (NCOC) Outreach Education partners, including Governors’ office in WY, MT, WA Tribal Nations and Councils International Collaborators (includes Canada, Norway, India) Composition of Partnership

13. Partners

14. Partner Contributions: sharing data, infrastructure and expertise involvement in pilot projects and scaling up activities providing matching funds for Energy Forums and pilot activities involvement in outreach/education activities serve on Partnership Advisory and Technical Committees Partner Benefits: access to regional and national level developments with respect to geological and terrestrial sequestration and other strategies to reduce and/or offset CO2 emissions access to restricted data and info on regional sources, sequestration options, economic analysis, and regulatory assessments involvement with regional energy and policy assessments opportunity to help design sequestration strategies that “work” for industry and the region connections with DOE and regional Carbon programs Partners are collaborating to lay foundation for efficient and environmentally sound sequestration opportunities

15. Two focal areas: geological and terrestrial sequestration opportunities Five technical teams: Carbon atlas/GIS Geological pilots, including MMV Terrestrial pilots, including MMV & carbon markets Economic and risk analysis Education, outreach, regulatory compliance issues Organization of the Partnership

16. Building the Geological Carbon Atlas • Compiled data from 117,304 active wells in WY and MT • Developed GIS model to calculate sequestration volumes (based on depth, temperature, pressure, density, and thickness) • Characterized sequestration volumes for 283 formations in57 plays

17. Developed maps of each formation within all plays

18. Carbon Atlas: Geologic Sinks

19. Used Century Model to examine terrestrial carbon flux (based on climate, soil, land use) Evaluated management scenarios for continuous grassland and conventionally-tilled cropland Estimated current annual soil carbon fluxes in Big Sky states Building the Terrestrial Carbon Atlas

20. Summary Data for Carbon Atlas

21. Evaluate the geologic sequestration potential regional sedimentary and volcanic basins Favorable and worthy of further consideration Unfavorable Insufficient information to classify Identify potential pilot-scale sequestration site(s) Geologic Sequestration Potential

22. Demonstration projects basalt/mafic pilot scale injection (form solid phase carbonates) carbonate aquifer assessment (develop carbonate alkalinity) deep coal bed exchange (separate and sequester from flue gasses) Transfer results to the Nation national mafic/basalt atlas Geological Sequestration Efforts – Phase II

23. Significant basalt formations in the region 164,000 km2 – Columbia River Basalt Group 64,000 km2 – Snake River Plain Chemical makeup favorable for mineralization reactions Deeper aquifers contain non-potable water Basalts and Sequestration

24. Large Basalt Provinces and Power Plants in the United States

25. 164,000 km2 of the Pacific Northwest 15% porosity 10 interflow zones Hydrostatic pressure 100 atmospheres Storage capacity of more than 100 Gt of CO2 100 years of U.S. Carbon emissions Columbia River Basin:Sequestration Example

26. Supercritical CO2 Pressure Cell Experiments with Columbia River Basalt Long-term experiments showing transition fromcalcite to ankerite, Ca(Fe, Mg, Mn)(CO3)2

27. 3000 MT of CO2 transported by rail from refinery Utilize existing deep well infrastructure to minimize drilling costs for injection and monitoring Target is Grande Ronde basalt formation (1100 m depth) Post injection core sampling to verify mineralization reactions Validate supercomputer simulations of CO2 dispersion, dissolution, and trapping in basalt using suite of geophysical, hydrologic, and tracer methods 16 Basalt Field Pilot

28. Supercomputer Simulation of CO2 Injection in Grande Ronde Basalt

29. Flood Basalts Cover More Than 1 Million km2 of the Earth’s Surface

30. Large basalts providences globally distributed economic opportunity costs of Using basalts are minimal Conducive mineralogy for sequestration Rapid conversion of CO2 to carbonate High porosity and permeability Five largest basalt provinces could sequester 10,000 years of world CO2 emissions Big question: how does this compare to costs of other sequestration and mitigation options Conclusions: Sequestration in Basalts

31. Depth to Top of Madison Formation Pilot Demonstration:Carbonate Petroleum Reservoir • Regionally abundant carbonate rocks (dolomites and limestones) are highly reactive with CO2CaMg[CO3]2 + 2CO2 + 2H2O  Ca2+ + Mg2+ + 4HCO3- • Reactions should result in permeability and porosity increases

32. EOR opportunities in the Region High oil/gas prices make EOR attractive Source of CO2? IGCC? Infrastructure to transport pipelines

33. Recent work shows Powder River basin coals can adsorb twice as much CO2 as Uinta basin coals Study various gas injection strategies Economic evaluation Reservoir simulation Attention will be given to impact of coal swelling on permeability changes Pilot Design: Enhanced Coal Bed Sequestration

34. market – based storage and verification protocols Terrestrial Pilots and Activities: cropland forestland rangeland field test sites and design carbon portfolios in conjunction with industry, tribal members, and landowners Terrestrial Sequestration Efforts

35. Implement pilot forestry, agroforestry, and cropland carbon sequestration projects in conjunction with landowners, and national and international carbon trading companies All pilot projects will be marketed through Nat Source via CCX and/or other emerging markets Two 12,500 ton portfolios (tribal & private landowners) Seating a Technical Standards Committee for the purpose of setting project standards for the portfolio projects Phase II Carbon Market Efforts

36. Components of an Economic/RiskAssessment Framework • Economic input on cost (from private sector) • Legal and regulatory issues • Monitoring, Measurement and Verification • Common units for comparison – spatial, temporal metrics • End product – regional supply curve(s) for Carbon

37. Geologic Forestry Regional Carbon Supply Curve Price ($/hectare/year) Supply Price Geological Forestry Crop soils Carbon (MMT)

38. Importance of Phase II Economic Component • Critical to addressing the feasibility of scaling up of the sequestration activities • Useful for addressing long term financial viability of power plants under carbon-constrained scenarios • Used to address tradeoffs among alternative sequestration options

39. Energy Future Coalition Annual Energy Forum & Report State Legislative Symposia Partnership Recognition/Media Network National Outreach Working Group Capacity Building Phase II Public Outreach & Education Activities

40. Susan M. Capalbo, Director Montana State Universityscapalbo@montana.eduBig Sky Partnership OfficeAngie Solvie – Program Administrationasolvie@montana.eduOffice: 406-994-3755Bob Smith, Associate DirectorUniversity of Idahosmithbob@uidaho.eduPamela Tomski, Associate DirectorEnTech Strategiesptomski@erols.com