UK CO2 EOR and Sequestration Initiatives

The debate on the possible use of CO2 for enhanced oil recovery has reached the highest levels in the UK with discussions in the House of Lords and the announcement of a new initiative in the recently published Government Energy White Paper. David Hughes of Senergy Ltd reports on these activities.

House of Lords

In the House of Lords on 3 February 2003 Lord Hardy of Wath asked what the Government plans were to enhance the recovery from Britain’s declining oil fields by the use CO2 injection and other techniques, and called for increased investment to maximise yield. Replying for the Government, Lord McIntosh of Haringey highlighted gas injection in the Brae area, depressurisation in Brent, and the studies being undertaken on CO2 injection, but indicated that low oil prices have limited the implementation of technically feasible techniques.

Lord Ezra pointed out that CO2 injection can increase recovery factor by 10-15% and that synergies existed if this was linked to power generation using cleaner coal technology. Lord McIntosh agreed that power generation using integrated gasification combined-cycle technology had many advantages but pointed out that there is uncertainty over whether CO2 injection and sequestration would be in breach of international conventions (London and Ospar) on dumping at sea, and that the legal issues needed to be sorted out.

Energy White Paper

After a long and detailed period of consultation the Government issued its latest Energy White Paper on 24 March 2003.
Its main thrust is to develop a strategy to secure for the nation a reliable, competitive and affordable energy supply within a low carbon generation economy.

It points to the benefits of maintaining coal-fired power generation as part of the fuel mix but recognises that handling the carbon is crucial. It identifies the option of using cleaner coal technology such as the integrated gasification combined-cycle process and combining this with the disposal of CO2 in offshore oilfields as a possible way forward. However, the White Paper recognises that such a scheme is unlikely to be economic in the short term even with carbon emission trading benefits but it identifies that there is a unique time-limited opportunity to obtain incremental economic benefit from CO2 sequestration in the form of EOR. It envisages that the necessary infrastructure would be significantly easier to fund with the additional benefits from EOR and given the significant role that it hopes that cleaner coal technology will play in the longer term has launched a six month study to establish what is required to get a demonstration CO2 injection project implemented. Because of the considerable international interest and the innovative nature of combining cleaner coal technology with offshore EOR, international funding should be available.

The Cleaner Fossil Fuels Unit of the DTI will conduct the study. An Advisory Panel comprising representatives of the power generators, oil companies and the research community will provide input to the study on the issues surrounding the feasibility of capturing CO2 emissions, transporting CO2, using CO2 for enhanced oil recovery, and sequestering CO2 in the geological formations for long-term storage.

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