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Southeast Regional CO 2 Utilization and Storage Acceleration Partnership (SECARB-USA): Regional Commercialization Plan (Final): Work Products 4.4.b (Regional Commercialization Plan) & 4.3 (Socioeconomic Impacts of CCUS and Workforce Readiness)

Commercialization of carbon capture and storage (CCS) within the SECARB-USA region is scaling up and will continue as governments and private companies expand on current decarbonization efforts. The Inflation Reduction Act (2022) enhanced 45Q tax credits beyond the 2018 Bipartisan Budget Act levels by incentivizing previously uneconomic projects to develop CCS plans and infrastructure. Additionally, the continued interest and support for CCS mitigates the relative risk of commercial-scale projects that are seeking long-term viability to develop capture facilities to accommodate their emissions reduction goals. This multifaceted Commercialization Plan provides an overview of the current status and potential for CCS in the Southeast and the pathways to achieve emissions reduction goals in the region by 2050. Specifically, the study addresses: • The current status of CCS activities in the SECARB region, • Assessment of buildout pathways for CCS projects and carbon transport infrastructure development opportunities, • Estimation of CCS job creation and economic impacts, and • The social justice considerations and public benefits associated with CCS activities in the SECARB-USA region.

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SECARB-USA: Preliminary Regional Commercialization Plan (Task 4.4.a)

The SECARB-USA region refers to the states in the southeastern portion of the United States including Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, eastern Oklahoma, South Carolina, Tennessee, eastern Texas, Virginia, and West Virginia. This region is a hub for economic activity and accordingly emits almost 1 Gtpa of CO 2 which is the motivation for the development of Carbon Capture and Storage (CCS). This preliminary commercialization plan reviews the status of commercialization of CCS within the region, outlines the infrastructure buildout to achieve CO 2 reduction goals by 2050 described by the Los Alamos National Lab in Task 4.1.b (see the Task 4.1.b “Technoeconomic Analysis of Infrastructure Buildout Scenarios” report), and provides an early estimate of the economic activity and employment creation resulting from the increase in CCS activity. Additionally, this report addresses the challenges associated with commercializing CCS within the region at a large scale.

54 ENVIRONMENTAL SCIENCES↗

Southeast Regional CO 2 Utilization and Storage Acceleration Partnership (SECARB-USA): Risk Inventory for Commercial Storage Projects

The “Southeast Regional CO2 Utilization and Storage Acceleration Partnership” (SECARB USA) project supports the U.S. Department of Energy (DOE) Odice of Fossil Energy's (FE) mission to help the United States meet its need for secure, adordable, and environmentally sound fossil energy supplies by utilizing the advancements made since 2003 by the Regional Carbon Sequestration Partnership (RCSP) Initiative to continue to identify and address knowledge gaps. The SECARB-USA regional initiative encompasses the states of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and portions of Kentucky, Missouri, Oklahoma, Texas, and West Virginia as noted in Figure 1. The primary objective of the project is to identify and address regional onshore storage and transport challenges facing commercial deployment of carbon dioxide (CO2) capture, utilization, and storage (CCUS) technologies.

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Southeast Regional CO 2 Utilization and Storage Acceleration Partnership (SECARB-USA): Results of Existing CO 2 Source and Sink Databases Analysis

The “Southeast Regional CO 2 Utilization and Storage Acceleration Partnership” (SECARB-USA) project supported the U.S. Department of Energy (DOE) Office of Fossil Energy's (FE) mission to help the United States meet its need for secure, affordable, and environmentally sound fossil energy supplies by utilizing the advancements made since 2003 by the Regional Carbon Sequestration Partnership (RCSP) Initiative to continue to identify and address knowledge gaps.

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Southeast Regional CO 2 Utilization and Storage Acceleration Partnership (SECARB-USA): Needs Assessment Framework for Storage Complexes Contributed to EDX (Work Product 2.1.c)

On September 30, 2021, a Needs Assessment Framework for Storage Complexes was completed for the SECARB-USA region by the Southern States Energy Board (SSEB) and The University of Texas at Austin Bureau of Economic Geology (UT-BEG). The Needs Assessment Framework for Storage Complexes documented a region-wide assessment to identify data needed to advance storage projects at sites of relevance to industrial, academic, and government stakeholders. The region-wide assessment addresses the needs of CO2 source, storage, and utilization stakeholders, finance and insurance institutions, state and local government agencies, local stakeholders at prospective storage complexes, environmental non-governmental organizations (NGOs), and others as identified by the Partners. This assessment was tested against various potential storage sites and modified to include site-specific issues, such as surface or pore space rights. The framework was provided to stakeholders for review and then used in other tasks, such as the ML initiative (Subtask 3.4) and storage complex readiness evaluation (Subtask 4.2). In accordance with the SOPO, this assessment satisfied completion of Work Product 2.1.b. The OSTI ID is 3015803, and the DOI link is https://doi.org/10.2172/3015803. On February 28, 2022, SSEB uploaded Work Product 2.1.b to NETL’s Energy Data eXchange (EDX). As such, Work Product 2.1.c is completed as documented below.

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SECARB-USA: Needs Assessment Framework for Storage Complexes (Task 2.1.b)

A team of SECARB storage experts examined 63 formations at 39 sites that were selected to represent the range of diversity of newly assessed, as well as well-advanced, storage prospects in the SECARB region. We inventoried the data needs triggered by the requirements to obtain a Class VI UIC storage permit, the data needs that results from the requirement to create geocellular fluid flow models to support that permit, and by pragmatic and best practice inputs such as public acceptance, regulatory readiness, and pore space leasing. We anchored both the needs inventory and the processes for and cost of meeting the needs with data from 9 sites in in the SECARB area that have advanced far in characterization. Results show that the total cost of characterization prior to obtaining a permit is convergent, because the permit and modeling requirements drive projects to obtain the same types of data for all cases. The high cost data that control cost are 1) drilling, coring, core-testing, logging, sampling and testing a characterization well and 2) collection of a 3-D seismic survey to map reservoir and confining system properties over the area of the plume or the area of elevated pressure. In 5 of our case study sites we determined that one or both of these costs could be avoided because the needs are met by available data.

54 ENVIRONMENTAL SCIENCES↗

Southeast Regional CO 2 Utilization and Storage Acceleration Partnership (SECARB-USA): Needs Assessment Framework for Storage Complexes

A team of SECARB storage experts examined 63 formations at 39 sites that were selected to represent the range of diversity of newly assessed, as well as well-advanced, storage prospects in the SECARB region. We inventoried the data needs triggered by the requirements to obtain a Class VI UIC storage permit, the data needs that results from the requirement to create geocellular fluid flow models to support that permit, and by pragmatic and best practice inputs such as public acceptance, regulatory readiness, and pore space leasing. We anchored both the needs inventory and the processes for and cost of meeting the needs with data from 9 sites in in the SECARB area that have advanced far in characterization.

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Initial Risk Inventory for Commercial Scale Storage Sites

The “Southeast Regional CO 2 Utilization and Storage Acceleration Partnership” (SECARB-USA) project supports the U.S. Department of Energy (DOE) Office of Fossil Energy's (FE) mission to help the United States meet its need for secure, affordable, and environmentally sound fossil energy supplies by utilizing the advancements made since 2003 by the Regional Carbon Sequestration Partnership (RCSP) Initiative to continue to identify and address knowledge gaps. The SECARB-USA regional initiative encompasses the states of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and portions of Kentucky, Missouri, Oklahoma, Texas, and West Virginia. The primary objective of the project is to identify and address regional onshore storage and transport challenges facing commercial deployment of carbon dioxide (CO 2 ) capture, utilization, and storage (CCUS) technologies. This document provides an overview of risks relevant to commercial CCUS projects.

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Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS): Task 6.0 Deliverable – CarbonSAFE Phase III Readiness

The OASIS CarbonSAFE Phase II Project OASIS (Optimizing Alabama’s CO 2 Storage in Shelby County) is a geologic and reservoir characterization study designed to evaluate deep saline formations for potential long-term carbon dioxide (CO 2 ) storage in central Alabama near the National Carbon Capture Center (NCCC) and Alabama Power’s Plant Gaston. The project centers on understanding the potential of the Cambro-Ordovician Knox Group and underlying strata such as the Conasauga and Rome Formations for geologic storage of CO 2 . These formations were investigated as part of SECARB-USA (DE-FE0031830) and Project OASIS through the drilling of two stratigraphic test wells to obtain electronic well logs, core, and sidewall core plugs. These data provide direct measurements of porosity, permeability, and lithologic variability critical for reservoir characterization. Complementing the well program, a limited 2D seismic survey was conducted to help select the site for Westover #2 as part of SECARB-USA (DE-FE0031830), and a more regional Seismic Exchange (SEI) seismic survey was licensed and interpreted to define structural and stratigraphic frameworks in a new Static Earth Model (SEM), map reservoir continuity, and to identify potential sealing intervals. Integrated with geologic and reservoir modeling, these datasets form the basis for evaluating storage capacity, injectivity, and containment. While this document endeavors to provide readers with a high-level overview of Project OASIS activities and its suitability for subsequent CarbonSAFE Phases, such as a Phase III effort. Other project deliverables and milestones will provide more details on individual subjects.

20 FOSSIL-FUELED POWER PLANTS↗

Rules and Tools Crosswalk: A Compendium of Computational Tools to Support Geologic Carbon Storage Environmentally Protective UIC Class VI Permitting

This report identifies computational tools useful for addressing aspects of the dedicated carbon storage (Class VI) well permit application under the U. S. Environmental Protection Agency’s (EPA) Underground Injection Control (UIC) Program. The survey was conducted by researchers of the National Energy Technology Laboratory’s (NETL) Research and Innovation Center in collaboration with representatives of the U.S. EPA, Lawrence Berkeley National Laboratory (LBNL), Lawrence Livermore National Laboratory (LLNL), Los Alamos National Laboratory (LANL), Pacific Northwest National Laboratory (PNNL), and the four Regional Initiatives to Accelerate Carbon Capture, Utilization, and Storage: Carbon Utilization and Storage Partnership of the Western United States (CUSP), Plains CO 2 Reduction Partnership Initiative to Accelerate Carbon Capture, Utilization, and Storage Deployment (PCOR Partnership), Midwest Regional Carbon Initiative (MRCI), and the Southeast Regional Carbon Utilization and Storage Partnership (SECARB-USA). A total of 59 tools were identified through the elicitation for this report. It is intended to serve as a reference that can be used by geologic carbon storage stakeholders to identify computational tools that may be used to develop Class VI permit applications.

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Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS) Milestone 6.0: Evaluation of Class VI Readiness

Introduction. Project OASIS is approximately 30 miles southeast of Birmingham, Alabama, and approximately 5 miles north-northwest of Alabama Power Company's Plant Gaston. Geologically, the Project area is in the Alabama fold and thrust belt province. This work builds on the initiatives of the Southeast Regional Carbon Utilization and Storage Acceleration Partnership (SECARB-USA, DE-FE0031830) that identified nearly 500 million metric tonnes of CO 2 emitted on an annual basis that is not collocated with prospective storage geology (the Coastal Plain of the Southeastern US in this context). This observation suggests costly investments in connective infrastructure (e.g., pipelines) or exploratory well drilling campaigns to identify CO 2 storage opportunities in under explored areas. While not traditionally thought of for saline storage, these studies suggest that storage prospects in the Valley and Ridge Province occur in relatively flat lying structural panels between thrust faults. For the Project OASIS region, available geologic studies related to hydrocarbon exploration suggest that Cambro-Ordovician carbonates and Cambrian clastic units offer multiple potential storage intervals, and that regional confining systems are present, such as the tectonically thickened Floyd-Parkwood Shale. The Project OASIS surface property is owned by a timber and land stewardship company, The Westervelt Company, Inc., who worked with the Project Team to select and prepare adequate sites for geologic assessment. The purpose of drilling the Westover Stratigraphic Test Well #2 was to collect geologic data to model the feasibility of commercial scale CO 2 injection and storage in an under explored region. This initiative benefits the regions emitters as the data generated from this study can inform their own internal decision making. The field program included geological and geophysical evaluations, reservoir engineering analyses, and risk assessments. This report evaluates existing data, as well as a variety of modeling scenarios to evaluate project readiness. Importantly, the impact of this study is not limited to Alabama as there are numerous large emitters throughout Appalachia, in similar geologic settings, contemplating their decarbonization options.

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Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS), Task 5.0 Deliverable: Infrastructure Assessment Report

The “Optimizing Alabama’s CO 2 Storage in Shelby County: Project OASIS” CarbonSAFE Phase II Project seeks to build on regional data sets that demonstrate that the subsurface within Shelby County, Alabama has the potential to store commercial volumes of CO 2 safely, permanently, and economically. This work builds on the initiatives of the Southeast Regional Carbon Utilization and Storage Acceleration Partnership (SECARB-USA, DE-FE0031830) that identified nearly 500 million metric tonnes of CO 2 emitted on an annual basis that is not collocated with prospective storage geology (the Coastal Plain of the Southeastern U.S. in this context). This observation suggests costly investments in connective infrastructure (e.g., pipelines) or exploratory well drilling campaigns to identify CO 2 storage opportunities in under explored areas. While not traditionally thought of for saline storage, these studies suggest that storage prospects in the Valley and Ridge Province occur in relatively flat lying structural panels between thrust faults. For the Project OASIS region, available geologic studies related to hydrocarbon exploration suggest that Cambro-Ordovician carbonates and Cambrian clastic units offer multiple potential storage intervals, and that regional confining systems are present, such as the tectonically thickened Floyd-Parkwood Shale. The Project OASIS surface property is owned by a timber and land stewardship company, The Westervelt Company, Inc., who worked with the Project Team to select and prepare adequate sites for geologic assessment.

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Optimizing Alabama’s CO 2 Storage in Shelby County (Project OASIS): Task 8 Deliverable 8.0 - Commercialization Plan

The “Optimizing Alabama’s CO 2 Storage in Shelby County: Project OASIS” CarbonSAFE Phase II Project seeks to build on regional data sets that demonstrate that the subsurface within Shelby County, Alabama has the potential to store commercial volumes of CO 2 safely, permanently, and economically. This work builds on the initiatives of the Southeast Regional Carbon Utilization and Storage Acceleration Partnership (SECARB-USA, DE-FE0031830) that identified nearly 500 million metric tonnes of CO 2 emitted on an annual basis from industrial facilities that are not collocated with prospective storage geology (i.e., the Coastal Plain of the Southeastern U.S. in this context). This observation suggests costly investments in connective infrastructure (e.g., pipelines) or exploratory well drilling campaigns are required to identify CO 2 storage opportunities in under-developed areas. While not traditionally thought of for saline storage, these studies suggest that storage prospects in the Valley and Ridge Province of the Appalachian Fold and Thrust Belt occur in relatively flat lying structural panels between thrust faults. For the Project OASIS region, available geologic studies related to hydrocarbon exploration suggest that Cambro-Ordovician carbonates and Cambrian clastic units offer multiple potential storage intervals, and that regional confining systems are present, such as the tectonically thickened Floyd-Parkwood Shale.

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Technoeconomic Analysis of Infrastructure Buildout Scenarios

The success of CCUS deployment in the southeast will depend on the optimized pipeline network from CO 2 point sources to geologic sinks for CO 2 storage. An optimal pipeline framework will reduce both environmental impacts and pipeline building cost. However, finding an optimal pipeline/transport infrastructure design is a non-trivial task and requires simultaneous usage of large volumes of data, computational resources, and a state-of-the-art simulator. Such a transport infrastructure model must consider point sources for CO 2 capture and associated volumes, sinks for CO 2 storage, and transportation from source to sink via pipeline networks. These considerations must be addressed simultaneously and systemically in an optimization process, in which a defined objective function (i.e., capital, variable CO 2 capture, transport, and storage cost function) is required to be minimized with the consideration of practical constraints (e.g., CO 2 flow through pipelines is less than the maximum capacity). Although optimization has been widely used in subsurface resources production and CO 2 storage, its application in large scale CCUS infrastructure design is rarely reported in the literature. SimCCS, developed by Los Alamos National Laboratory, is an open-source CCUS pipeline infrastructure design toolset that facilitates the optimization of pipeline infrastructure networks.

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Evaluation of Improvements in Storage Efficiencies, Containment, Assurance, CO 2 Plume Movement, and Verification of Storage Technologies

This report summarizes some of the evolving improvements in key technical skills that are developing to support a large-scale commercial application of CCS as well as support rapidly increasing interest in carbon negative technologies. It does not attempt to review relatively well-known processes and procedures that are familiar to many CCS experts; rather focuses on novel concepts that have the potential to provide breakthroughs and add high benefit as projects evolve. Some elements described are in development or not yet proven ideas for which we provide an expression of status of confidence at the time of writing. Topics covered are evaluation of improvements in storage efficiency estimation, containment assurance methods, CO 2 plume movement and pressure prediction, and monitoring and verification of storage methods.

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Results of Storage Complex Readiness Evaluation

In this report, the results from Task 4.2.1 and 2.1.b are used to evaluate storage complex readiness. In this subtask we compare the results of the traditional formation-by-formation storage assessment to a new method designed to consider all the potential storage resource. This work has been in part coordinated with a study funded as part of the Lawrence Livermore National Laboratory led “Road to Removal” study. This overview is a at national scale and places the SECARB region in that context.

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