Giving the greenlight to carbon capture, utilization and storage (CCUS) projects is complex but a necessity in the race to meet our climate goals. We did our research and created Getting to Final Investment Decisions, a 60-page report designed to help you understand a project’s journey, using Alberta’s success as a prime example.
Now, we’re breaking it down further into bite-sized blogs!
The third post in our series breaks down the top three requirements a carbon capture project needs to meet in the early stages for carbon storage success: securing pore space rights, permitting and a Measurement, Monitoring and Verification (MMV) plan.
Part 3: Top 3 project requirements for carbon storage success
Pore space: How do you get rights?
If you want to store carbon, you need pore space. Pore space is the tiny, unoccupied spaces within underground geological formations that store captured carbon dioxide (CO2). Depths for CO2 storage typically exceed 800 metres, which is the approximate height of Burj Khalifa, the world’s tallest building:
Pore space evaluation is one of the key factors when selecting a permanent storage location as it determines if the geological formation has enough capacity to hold the expected volumes of CO2.
Access to pore space is a crucial element for all CCUS projects and receiving the rights to use pore space for storage can be legally complicated. Internationally, the approach to managing dedicated pore space rights vary. Carbon storage projects need to secure pore space from governments, private mineral rights holders, private surface rights holders, or a combination of these depending on a project’s jurisdictional rules.
Even within Canada, the rights to pore space vary across the country, with provincial governments playing a key role in managing access, enabling the unitization of pore space (combining the rights from multiple owners for the project), and resolving any conflicts between pore space and other subsurface resource rights.
In Alberta, the government owns pore space rights, and have developed a process for granting the rights, which is needed before entering the regulatory process. The process for obtaining rights is different for carbon storage hubs and small-scale and remote projects. For more information on the pore space access in Alberta, visit Carbon Sequestration Tenure.
Permitting: You secured pore space rights. Now what?
After you get pore space rights, you need permits. Permitting for CCUS projects is a series of approvals, consents and licences used for evaluating, testing, constructing, operating, and eventually closing projects. Common permit applications that need approval include carbon storage scheme permits, well licenses, development plans, pipeline permits, emergency response plans, closure plans and MMV plans.
The permitting process ensures companies meet environmental and safety standards, with permitting occurring throughout each stage of the project (before projects are built, throughout operations and after projects are complete). This ensures CCS operators are upholding their comprehensive due diligence throughout the duration of a project.
Though having a comprehensive permitting process is critical for building public support and ensuring positive outcomes, some permitting processes can cause delays in project timelines. Internationally, permitting can be a multi-year process. Canadian permitting processes (in Alberta and Saskatchewan) for dedicated geological storage happen in a staged approach, with ongoing communication between regulators and applicants. Approval of Canadian permit applications have typically taken less time than US Class VI well applications, where federally managed reviews are regularly exceeding three years.
Alberta’s permitting process offers a well-balanced approach to industry, environment and stakeholder needs. The Alberta Energy Regulator (AER) has been given the authority to issue permits for most aspects of CCUS projects within the province, including best-practice mechanisms for MMV plans, site suitability risk assessments, and closure plans. The AER acts as an independent body, creating a one-stop shop to enable a comprehensive yet timely permitting process.
You can read more about Alberta’s key permitting processes on page 25 of the Getting to Final Investment Decisions report.
Measurement, Monitoring, and Verification of stored CO2
A project’s commitment to MMV planning ensures the safety and effectiveness of ongoing CCUS operations. MMV plans are a mandatory permitting requirement for CCUS projects in Alberta and across other jurisdictions.
- Measurement: Accurate measurement of parameters like CO2 injection rates, reservoir pressure, and temperature is essential for assessing storage performance.
- Monitoring: Uses various technologies to track the CO2 plume’s movement, reservoir pressure, and any potential leakage pathways.
- Verification: Compares measured data with predictions from geological models to confirm that the CO2 is behaving as expected and will remain securely stored.
These steps help ensure regulatory compliance and play a critical role in minimizing environmental risks for communities. CCUS projects are often required to continue monitoring sites for years after CO2 injection ends.
In Alberta, successful carbon storage hubs can transfer MMV responsibilities to the province if they make a payment to the post-closure stewardship fund and meet all regulatory requirements. Alberta’s MMV plans are made public by the AER here.