Many industries and researchers have been examining ways of substantially reducing greenhouse gas emissions. No single method is likely to be a panacea, although some options do show considerable promise. Geological sequestration is one option that utilises mature technology and has the potential to sequester large volumes of CO2. This technology may have particular relevance to some of Australia’s major gas resources that are relatively high in CO2. In Australia, geological sequestration has been the subject of research within the Australian Petroleum Cooperative Research Centre’s GEODISC program. A portfolio of potential geological sequestration sites (sinks) has been identified across all sedimentary basins in Australia, and these have been compared with nearby known or potential CO2 emission sources, including natural gas resources. These sources have been identified by incorporating detailed analysis of the national greenhouse gas emission databases with other publicly available data, a process that resulted in recognition of eight regional emission nodes. An earlier generic economic model for geological sequestration in Australia has been updated to accommodate the changes arising from this process of source to sink matching. Preliminary findings have established the relative attractiveness of potential injection sites through a ranking approach. It includes the ability to accommodate the volumes of sequesterable greenhouse gas emissions predicted for the adjacent region, the costs involved in transport, sequestration and ongoing operations, and a variety of technical geological risks. Some nodes with high volumes of emissions and low sequestration costs clearly appear to be suitable, whilst others with technical and economic issues appear to be problematic. This assessment may require further refinement once findings are completed from the GEODISC site-specific research currently underway.

A key challenge to researchers involved with geological storage of CO2 has been to develop an appropriate methodology to assess and compare alternative CO2 injection projects on the basis of risk. Technical aspects, such as the risk of leakage and the effectiveness of the intended reservoir, clearly need to be considered, but so do less tangible aspects such as the value and safety of geological storage of CO2, and potential impacts on the community and environment.The RISQUE method has been applied and found to be an appropriate approach to deliver a transparent risk assessment process that can interface with the wider community and allow stakeholders to assess whether the CO2 injection process is safe, measurable and verifiable and whether a selected alternative delivers cost-effective greenhouse benefits.In Australia, under the GEODISC program, the approach was applied to assess the risk posed by conceptual CO2 injection projects in four selected areas: Dongara, Petrel, Gippsland and Carnarvon. The assessment derived outputs that address key project performance indicators that:are useful to compare projects;include technical, economic and community risk events;assist communication of risk to stakeholders;can be incorporated into risk management design of injection projects; andhelp identify specific areas for future research.The approach is to use quantitative techniques to characterise risk in terms of both the likelihood of identified risk events occurring (such as CO2 escape and inadequate injectivity into the storage site) and of their consequences (such as environmental damage and loss of life). The approach integrates current best practice risk assessment methods with best available information provided by an expert panel.The results clearly showed the relationships between containment and effectiveness for all of the four conceptual CO2 injection projects and indicated their acceptability with respect to two KPIs. Benefit-cost analysis showed which projects would probably be viable considering base-case economics, greenhouse benefits, and also the case after risk is taken into account. A societal risk profile was derived to compare the public safety risk posed by the injection projects with commonly accepted engineering target guidelines used for dams. The levels of amenity risk posed to the community by the projects were assessed, and their acceptability with respect to the specific KPI was evaluated.The risk assessment method and structure that was used should be applied to other potential CO2 injection sites to compare and rank their suitability, and to assist selection of the most appropriate site for any injection project. These sites can be reassessed at any time, as further information becomes available.

The APCRC GEODISC research program has encountered many challenges looking for geological sequestration sites for CO2, but has also found some solutions. Challenges already faced have been in effectively searching databases, developing uniform terminology and evaluation methodology, establishing comparative quality assessment of Australia’s sequestration sites against each other and against those from overseas, improving our understanding of the injection and trapping properties of CO2 and predicting its effects on reservoirs/seals, and developing economic and reservoir models.Pilot research projects at the regional and site specific levels have been used to address these issues, as well as developing generic models, before building site specific models. Issues such as storage efficiency and the use of carbonates as CO2 sequesrationt reain challenges for the future.Preliminary conclusions reached from the regional study of Australia suggest that suitable deep saline formations will be widespread, have the largest sequestration volumes, and are likely to be the most economically attractive option currently available. In the future, some depleted oil and gas fields and enhanced coalbed methane production sites may also represent local high-volume options. It is considered unlikely that sequestration into voids/cavities or associated with enhanced oil recovery (EOR) will represent attractive options other than in exceptional circumstances. Despite these limitations, it is expected that many of Australia’s sedimentary basins will have excellent sequestration sites. The GEODISC program will provide an assessment of the critical factors required for success at each site.Several of the highest-ranking saline formations are currently undergoing site-specific study. Early indications are that the petrophysical data required for models of injection, migration, and trapping is of limited availability. Various methods are required to estimate the distribution and likely variability of these parameters across any site.These and other uncertainties in the distribution, quantity and quality of data required for predictive modelling necessitate an innovative and thorough approach to handling both risk and uncertainty. This will also be a challenge to be addressed during the GEODISC program.From the GEODISC work to date, it appears that it will be technically feasible to sequester large quantities of CO2 in geological formations in Australia for long periods of time. What is less clear is whether this can be done at a cost that would not impose an unreasonable economic burden on Australian industry. The future results for GEODISC will be highly relevant to answering this key question.

Liquefied natural gas projects with a total value of around $20 billion are planned for Australia. Over the next decade or so, they have the potential to generate an increase of approximately 3% in Australia's GDP, and an excess of 50,000 jobs. One of the major risks to this vast investment is uncertainty over how to deal with the major increase in direct carbon dioxide (C02) emissions that will result from these developments. The 1997 Kyoto Protocol has served to focus even more attention on this issue.Potentially, a solution to sustaining Australia's economic development, whilst at the same time meeting emission targets, may lie, in part, in developing suitable methodologies for C02 sequestration. One of the key sequestration options is geological disposal. The method, which involves injection of supercritical C02 into the deep subsurface, is being tested on a commercial scale in only one place in the world at the present time, although several other countries are now developing research programs into the technique.The APCRC research program GEODISC is investigating the applicability of this method in Australia. Whilst the focus of GEODISC is on the application of C02 disposal to the Australian natural gas industry, its outcomes will have implications for other industries such as power generation and minerals processing. It will also be looking at some of the other potential benefits of geological sequestration, such as enhanced oil recovery and enhanced coalbed methane recovery.The program will establish the most viable locations for C02 injection, determine the key areas of technical, social and economic risk, and help define a pilot injection program to address the most critical areas of uncertainty. GEODISC brings together six major petroleum companies, the Australian Greenhouse Office and key Australian research groups. The total cost of GEODISC will be approximately $10 million over four years. The major expected outcome of GEODISC will be to help the Australian gas industry plan the way ahead in terms of C02 emissions in an environmentally acceptable manner, whilst concurrently ensuring that the industry does not incur major cost disadvantages, which may adversely impact upon Australia's international competitiveness.

No abstract