TY - JOUR
T1 - Causes and financial consequences of geologic CO2 storage reservoir leakage and interference with other subsurface resources
AU - Bielicki, Jeffrey M.
AU - Pollak, Melisa F.
AU - Fitts, Jeffrey P.
AU - Peters, Catherine Anne
AU - Wilson, Elizabeth J.
N1 - Funding Information:
This research has been funded by the United States Department of Energy, Office of Fossil Energy , under Grant DE-FE-0000749 . Disclaimer: Neither the U.S. government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation or favoring by the U.S. governing or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the U.S. government or any agency thereof.
PY - 2014/1
Y1 - 2014/1
N2 - Leakage from geologic carbon dioxide (CO2) storage reservoirs used in CO2 capture, utilization, and storage (CCUS) technologies could trigger costs to a variety of stakeholders, including operators of other subsurface activities, such as oil and gas recovery and groundwater withdrawal. We identify the drivers of these costs and the resulting financial consequences of leakage. Costs could be incurred even in the absence of legal action or if the leakage does not affect other subsurface activities, groundwater resources, or reach the surface. In a case study of leakage potential for CO2 injection in the Michigan Sedimentary Basin, we find that the majority of leakage costs arise from activities to "Find and Fix a Leak" and from "Injection Interruption". We also found that these costs will be influenced by regulator decisions specific to a leakage event and depend on the developmental state of the CCUS industry. Estimated costs for an Nth-of-a-Kind (NOAK) project range from $2.2MM for a low-cost event with only leakage to $154.7MM for a high-cost event that reaches the surface. Leakage from First-of-a-Kind (FOAK) projects incurs approximately 1.6-3.0× more costs than equivalent leakage from an Nth-of-a-Kind (NOAK) project across all of the storylines we develop. Multiple stakeholders will incur leakage costs, and such externalities must be managed lest they impede the development of the CCUS industry.
AB - Leakage from geologic carbon dioxide (CO2) storage reservoirs used in CO2 capture, utilization, and storage (CCUS) technologies could trigger costs to a variety of stakeholders, including operators of other subsurface activities, such as oil and gas recovery and groundwater withdrawal. We identify the drivers of these costs and the resulting financial consequences of leakage. Costs could be incurred even in the absence of legal action or if the leakage does not affect other subsurface activities, groundwater resources, or reach the surface. In a case study of leakage potential for CO2 injection in the Michigan Sedimentary Basin, we find that the majority of leakage costs arise from activities to "Find and Fix a Leak" and from "Injection Interruption". We also found that these costs will be influenced by regulator decisions specific to a leakage event and depend on the developmental state of the CCUS industry. Estimated costs for an Nth-of-a-Kind (NOAK) project range from $2.2MM for a low-cost event with only leakage to $154.7MM for a high-cost event that reaches the surface. Leakage from First-of-a-Kind (FOAK) projects incurs approximately 1.6-3.0× more costs than equivalent leakage from an Nth-of-a-Kind (NOAK) project across all of the storylines we develop. Multiple stakeholders will incur leakage costs, and such externalities must be managed lest they impede the development of the CCUS industry.
KW - Carbon dioxide capture and storage
KW - Financial impacts
KW - Leakage
KW - Leakage costs
KW - Risk
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U2 - 10.1016/j.ijggc.2013.10.024
DO - 10.1016/j.ijggc.2013.10.024
M3 - Article
AN - SCOPUS:84889641042
SN - 1750-5836
VL - 20
SP - 272
EP - 284
JO - International Journal of Greenhouse Gas Control
JF - International Journal of Greenhouse Gas Control
ER -