Paulo Cunha (1)Thais Murce (1)

Diogo Zaverucha Pinheiro (2)João Lampreia (3)

Rodrigo Delalíbera Carvalho (3)Fábio Saraiva (4)

(1) Petrobras Research Center – CENPES(2) Pontifical Catholic University of Rio de Janeiro – PUC-Rio

(3) Federal University of Rio de Janeiro – UFRJ(4) Ecoar Institute

Why CCS in Brazil?

Carbon Sequestration Leadership Forum Capacity Building Workshop 08-09 September 2008 - Salvador/BA – BRAZIL

Perspectives of the Oil and Coal CommunitiesWhat`s happening in R&D Arena in Brazil

What`s happening in Government Policy Arena in Brazil

We talk about Climate Change ... but we have other Challenges too...Can CCGS be a path to contribute for solving XXI’s

Century’s Challenges, specially in developing countries ?

Energy

Climate Change

Sustainable Consumption of Resources

Loss of Biodiversity

Social Inequality

Hunger

XXI Century’sInterconnected

Challenges

Branco, R. C; “The importance to Petrobras of R&D with focus in biodiversity”; The Biodiversity and the Oil and Gas Industry’s Seminary, Rio de Janeiro, June, 2005

Brazil is committed to climate change mitigation and recognizes the CCGS technologies as an important option for a global climate change mitigation, although it doesn't have target obligations to reduce its emissions.

• Brazil has a very clean energy matrix: 75% hydroelectricity , the PROALCOOL with 24% addition of ethanol to gasoline since the 70’s and now the Biodiesel in 2% added to Diesel.

• Brazil has a particular emissions profile: 75% comes from deforestationand land use change and only 25% from fossil fuels (about 15% from stationary sources).

• For the Brazilian government the forest conservation is one of the main priorities.

• The recent discovery of major oil and gas fields also suggests that fossil fuels may play an increasingly important role in Brazil`s future.

Main points to take in consideration...

The Brazilian legislation for oil and gas industry (National Agency of Energy- ANP) obliges Petrobras to invest 0,5% of the mega fields revenue on R&D in national institutions.

• Petrobras is going to improve its technological development in CCGS, investing hardly in Brazilian scientific institutions and universities (at least US$ 30 million from 2006-2010), as well as in International Cooperation Agreements and Joint Implementation Projects.

For Petrobras, CCGS technologies are essential for the achievement of its goals as it is shown in its Strategic Plan 2008-2020.

Who will be able to apply the CCGS in Brazil?

To talk about CCGS in Brazil, is to talk about PETROBRAS participationIn developing and implementing this technology

Petrobras three strategies approach for CCGS

And so, what are the critical points of CCGS ?

• Technology DimensionReduction of costs, weight, size and improving performance of CO2 capture, safe transportationand CO2 storage, permanence of CO2 in reservoir , risk analysis and MMV cost reductions, ...

• Sustainability DimensionEnsure the CCGS as a transitional technology for a renewable energy matrix, neutralization of GHG emissions from fossil fuels produced in CCGS activity, awareness and education of society with regard to Climate Change, generation of technology-based jobs and the projectsurrounding communities, additional mitigation measures included in the projects of CCGS, preserving biodiversity, conservation of forests and fixation of carbon into biomass, generatingemployment, income, food security, education and reducing social inequalities, environmentaland socio economic characterization in the projects and verification of changes due to theimplementation of the project, evaluation of the life cycle of CCGS, ecoefficiency of CCGS chain

• Policy and Regulation Dimension

Public acceptance, ethical issues, regulatory milestones, responsibility of the CO2stored, long-term, international boundaries, carbon credits, technology transfer, technical standards and good practical guidance of CCGS, methodology for storage site selection, trajectory of pipelines, contingency plans in case of leakageof CO2, mapping of sources and sinks, governance of CO2.

First Strategy: Technological Development

• Petrobras Strategic Plan 2020: To invest in research, development and demonstration of technologies for climate change mitigation and reduction of the carbon risk of Petrobras activities, including CCGS technologies.

• PROCLIMA: Objectives (2012) - To provide technological solutions to the GHG intensity reduction on Petrobras processes and products, aiming to contribute to the Company’s business sustainability increase and for climate change mitigation. CCGS the main focus.

• The creation of a Carbon Sequestration Technologies Group for Climate Change Mitigation in Petrobras Research Centre;

• The discussion of a Carbon Sequestration Potential Project Portfolio in PROCLIMA;

• The implementation of a Carbon Sequestration and Climate Change Network;

• Capacity building on CCGS for Petrobras and Brazilian Partners

• Construction of the Brazilian Technological Road Map on CCGS and world’s first CCGS Sustainability Road Map.

1st

Three Track Technological Development Approach

• Technologies: for CO2 capture cost, weight and size reduction, storage security and“Great Risks and great rewards technologies”, etc.

• CCGS Project opportunities for Petrobras and Brazilian interests: Methane production in Southern Brazil, Mature oil fields production, Energy efficiency and GHG reductions, etc...

• A world class CCGS Project for: Validating technologies, (Probably Santos Basin)

CCGS TECHNOLOGICAL CHALLENGE• Reduction of capture costs• Safety in Geological Storage of CO2

R&D PILOT DEMONSTRATION COMERCIAL

Potential Brazilian CCGS Projects Portfolio

Petrochemical Industries of

Camaçarí

BuracicaEvaluation of CO2

impact in 25 years of EOR

activityRio Pojuca

CCGS in saline aquifer

MirangaCCGS (EOR with venting closure)

MirangaCCGS in saline

aquifer

Recôncavo Basin

CO2

Hydrocarbons

AcquaSix

H2 or NH3Energetic eficiency

and gasification

Coal Power Plant

CO2

Hydrocarbons

Syngas

O2 + Steam

Carbometano CarboGis

CO2 capture demonstration facility in Petrobras oil shale

refinery

Airseparation

unit

XTL, energy

CCS in saline aquifer

UCG (Underground

coal gasification)

Syngas(CO+H2

+CO2+CH4+H2S)

CCS (ECBM in coal seams)

GTLEnergyNG

CCS in saline aquifer

CCS in saline aquifer

N2

Paraná Basin

Contingency case

Conection with otherplatforms in theCampos Basin

Natural gasstorage in Gasfields depletedby PLANGAS

Energetic EficiencyActions:

-Reduction of onboard gasconsumption

-Reduction of gas venting

X

Natural Gas

Campos Basin

Fertilizers andUrea plant

Biodiesel Plant

Microalgaetanks

ProductsPlant

and food

CCGS inSaline aquifer

CCGS + EOR in mature oilor gas fields

Produced water+ CO2 or

flue gases

Potiguar Basin

Adsorption (UFC)Absorption (in definition)Polymeric Membranes (UFRJ)Modeling and Technology Capture Simulation (UFRJ)Ceramic Membranes (UFMG)Chemical Looping (INPE)Ionic Liquids and Polymers (PUCRS/UFRGS)Metal Organic Framework – MOFs (UFRJ)

CAPTURE R&D SCALE

CO2 capture with membranes (BIORIO/UFRJ)CO2 capture with absorption and chemical looping (in definition)CO2 capture with adsorption (UNICAMP)CO2 capture Technologies (PETROBRAS/SIX)

CO2 Transport (in definition)TRANSPORT

Phenomenology, CO2 geochemical behaviour in reservoirsand carbon sequestration in coal seams - CEPAC (PUCRS)Numerical simulation for high-performance CCGS through its life cycle and risk analysis - (PUC-Rio)

Seismic 4D Monitoring (UENF)

Other Geophysical monitoring techniques (UFBA)Tracers monitoring, Geochemistry Surface and Remote Sensing (PUCRS, PUC-Rio, UFRGS, UENF, UFBA)Strategies & Sustainability (UFRJ)

CO2 Storage in Petroleum and Aquifer Reservoirs (PETROBRAS/UNBA and UFBA)CO2 Storage in Coal Seams and field laboratory with simulators for MMV (PUCRS/SATC)

PILOT/DEMONSTRATION SCALES

STORAGE, RISK ANALYSIS, MONITORING (MMV), ANDSTRATEGIES & SUSTAINABILITY

R&D SCALE

Petrobras Carbon Sequestration and Climate Change Network and

CCGS FacilitiesCO2 Capture, Transport, Geological Storage and

Monitoring, Study and Excellence Centers

DRAFT

PILOT SCALE /DEMONSTRATION ( )

Petrobras Carbon Sequestration and ClimateChange Network and Partners

Brazilian Academyand R&D Institutes

-PUCRS,-UNIFACS,-UFRJ,-USP...

French/ BrazilianCooperation

- CEA- GEOGREEN- IFP- IEA

American/ BrazilianCooperation

-LLNL-NETL/DOE

Norwegian/ BrazilianCooperation

-IRIS-SINTEF-DNV

•International Seminar ‘Carbon Sequestration: ‘A way to climate change mitigation’ – Petrobras Research Center -CENPES [100 people] - Aug/04•Capacity Building/Technology Transfer on CO2 capture and Storage results from phase I of BP’s CCP project [100 people] – Rio de Janeiro, Jan/05•I International Petrobras Congress on CCGS [400 people] – Rio de Janeiro – October 2006 •I Brazilian Seminar on Carbon Sequestration and Climate Change [300 people] – Natal/RN - April/2007 •Sixth Annual Conference on Carbon Capture & Sequestration [15 people] – Pittsburgh / PA, EUA - May/2007 •I CSLF Workshop on Capacity Building for Carbon Capture & Storage [15 people] - Pittsburgh / PA, EUA - May/2007 •I Brazilian Middle-West Congress on Climate Change and Green House Gases Reduction [100 people – Cuiabá/MT -Aug/2007 •Construction of the Brazilian Road Map on CO2 geological storage in Brazil (CCGS Road Map) [150 people] – Porto Alegre/RS - Oct/2007 •I CSLF Brazilian Workshop on Capacity Building for Carbon Capture & Storage [100 people] – Porto Alegre/RS - Oct/2007 •Construction of the CCGS Sustainability Road Map in Brazil [60 people] – Rio de Janeiro/RJ - Oct/2007 •CCGS and Ethics [50 people] – Rio de Janeiro/RJ - Oct/2007 •II Brazilian Seminary on Carbon Sequestration and Climate Change [200 people] – Maceió/AL – Mar/2008• Climate Change and Carbon Sequestration MBA [60 people ]- from Apr/2008 to Sept/2009 – Curitiba/PR• 4th CSLF Worshop on Capacity Building for Carbon Capture & Storage - July/2008 - Mexico (1 person)•II CCS International Seminar in Petrobras – Salvador/BA – Set/2008 (expected 400 participants)•II CSLF Brazilian Workshop on Capacity Building for Carbon Capture & Storage – Set/2008 (expected 150 Brazilians)•5th CSLF Worshop on Capacity Building for Carbon Capture & Storage and 9th Green House Gases Technologies Conference- November/2008 - Washington/USA (expected 10 Brazilians)

Brazilian Capacity Building

Over 46,200 men/hour in thecapacity building process

Accelerating Factors of CCGS in BrazilAccelerating Factors of CCGS in Brazil

Technological scaling acceleration for the reduction of the Technological scaling acceleration for the reduction of the implementation time of CCGS technology implementation time of CCGS technology

Social

Economic

Environme ntal

Second Strategy: Sustainability2nd

- REFORESTATION- RESIDUAL MANAGEMENT

- WATER

- AGRICULTURAL PRACTICE CHANGES

- AVOIDED EMISSIONS FROM DEFORESTATION

- ENERGY EFFICIENCY

- COMPLEMENTARY RENEWABLE ENERGY PROJECTS

- INCENTIVES TO PROPER CONSUMING

- Economical growth in theenergy and fuel sector

- Creation of an industry for CCGS and MMV

- Development of thecommunities around theCCGS projects

- Resources comming fromEOR/ECBM activities

- Carbon Credits

- Storing of the commodityCO2 until new uses come

- Incentives for theimplementation of the firstCCGS projects

APPLIED TO THE CCGS PROJECTS CONSIDERING THE XXI CENTURY`S CHALLENGES:

- Implementing the carbon sequestration project creating a technological base with investments in infrastructure, R&D projects, capacity building and job generation related to CCGS in Brazil.

SOCIAL RESPONSIBILITY

Carbon sequestration projects involving the surrounding communities-Sustainability Indicators (UFRJ)-Social Carbon (Ecológica/ PUCRS)Projects of sustainable developmentEducation for Climate Change (ECOAR)-“O morro abraça o Clima” (ECOAR)

Another important dimension for development of CCGS is policy and regulatory framework as well as proposal for technical standards andguidelines of good practice for this technology.

Third Strategy: Policy and Regulation3rd

COMPANY WITH CCGS

IMPLEMENTATION PROJECT

NATIONAL AGENCY FOR STORED CO2

MANAGEMENT

PETROBRAS CARBON

SEQUESTRATION AND CLIMATE

CHANGE NETWORK

NATIONAL AND INTERNATIONAL R&D INSTITUTES

FOR CO2 CAPTURE AND STORAGE

BRAZILIAN TECHNOLOGICAL

INSTITUTE FOR CO2CAPTURE AND

STORAGE

BRAZILIAN CO2 CAPTURE AND STORAGE ASSOCIATION

BRAZILIAN INSTITUTE FOR

SUSTAINABILITY

OTHER INTERNATIONAL

POLICY AND REGULATION FOR

CCGS

A PROPOSAL FOR OBTAINING THE APPROVAL OF A CCGS PROJECT IN BRAZIL (A PROPOSAL FOR DISCUSSION)

PETROBRAS, a company with environmental and social focus, is in a transition stage from oil company with CO2 emissions to a clean and sustainable energy company, developing its business with profitability in a less carbon risk scenario. CCGS will play an important role in this transition.

Petrobras believes that carbon sequestration brings the possibility to accomplish this transition, becoming viable to society a sustainable energy source without causing irreversible damage to the environment. A climate changeless energy and mobility world.

With the recent discovery of new mega fields of oil and gas containing more than 3% of CO2, the domain of CCGS technologies becomes much more important to support Petrobras goals to increase the production of oil and gas with sustainability.

The proposed portfolio of CCGS projects, under negotiation, if implemented is going to allow an amount more than 9 million tons of CO2 avoided emissions/year, by 2017, what is equivalent to almost 18% of the Petrobras emissions in 2006.

In 2017, Petrobras is going to be managing some of the biggest world’s CO2 geological storage projects, all together equivalent to almost nine (9) times the Statoil’s SleipnerProject.

Conclusions

WE ARE WORKING HARD FOR CCGS DEPLOYMENT

CCGS REPRESENTS AN OPPORTUNITY TO MITIGATE EMISSIONS, TO TRANSITION TO A MORE SUSTAINABLE

ENERGY FUTURE, AND TO ADDRESS LOCAL DEVELOPMENTS NEEDS

Thank you

CONTACTS:

Paulo Cunha (paulocunha@petrobras.com.br) Petrobras/Cenpes/BTA – Technical Consultant

(5521) 38656019/mob (5521) 92614421

Thais Murce M. da Silva (tmurce@petrobras.com.br) Petrobras/Cenpes – PROCLIMA Coordinator

(5521) 38656212/mob (5521) 98030038

Diogo Zaverucha Pinheiro (diogozp@yahoo.com.br)Pontifical Catholic University of Rio de Janeiro – PUC-Rio

(5521) 99958220

João Lampreia (joaolc@hotmail.com)Federal University of Rio de Janeiro – UFRJ

(5521) 93527069

Rodrigo Delalíbera Carvalho (rodrigodcarvalho@gmail.com) Federal University of Rio de Janeiro – UFRJ

(5521) 22393292

Fábio Saraiva (fabio.saraiva@ecoar.org.br) Ecoar Institute

(5511) 85197506