Project Selection and Definition

Bison LCV has developed two CO₂ storage projects in Alberta, that utilize a deep saline aquifer to facilitate permanent sequestration. Both of those projects could qualify as ‘Hubs’ as they are located in reasonable proximity to multiple emitters and are larger than the Shell Quest project, which is currently one of the largest operating projects in the world. Our first approved project is the Meadowbrook carbon Storage Project (MCSP) located near Morinville Alberta. At Meadowbrook we will sequester 3Mtpa for 25 years into the Devonian Woodbend Group (Leduc and Cooking Lake formations) which is a thick (>1000’) large (270 sq. miles) wet (no oil or gas) under-pressured high quality dolomitized reef. The risks that need to be mitigated to deliver a successful commercial CCS project appear manageable in this application and will be fully quantified as part of the Evaluation phase activities.

Meadowbrook was chosen on the basis of its geologic prospectivity for storage (size, depth and quality), its high level of definition (area, pressure, performance, seal) and proximity to an array of customers.

We would welcome the opportunity to work with emitters looking to partner on the strategy and solution that best fits their CO₂ storage needs.

In selecting a candidate reservoir for permanent sequestration of CO₂, in our view, size, rock quality and containment are the most critical technical qualifiers followed closely by location, which is the largest variable cost. The assessment of quality and continuity of the reservoir comes from a regional geologic understanding, well documented historic performance of analogous pools and project site specific well penetrations. In Alberta, the quality and availability of this information is a major advantage. Major issues that need to be defined are injectivity, storage capacity, hydraulic isolation of the reservoir, long term containment of CO₂, and the potential impact on any freshwater and other mineral resources.

Once a candidate reservoir has been identified, mapped in the detail to the degree possible with the existing seismic, core, reservoir engineering and well data, and actual or analogous examples of reservoir performance under production or injection have been incorporated, we construct a static reservoir model. Utilizing published assumptions and past performance of previous projects for how the CO₂ is likely to act in the reservoir, the static model will inform the capacity, some elements of the injectivity, and the dispersion plume. Incorporating elements of the size and connectivity of the aquifer support of the reservoir allow us to generate a dynamic model which should better predict migration of the saturation plume over time and importantly, the increase of reservoir pressure over the injection period and eventual decrease post closure (pressure plume). The dynamic model forms the basis of the prediction against which we would monitor the actual reservoir performance once the project begins injecting CO₂.

In parallel, important aspects of alternative surface land use, alternative potential pore-space use, and stakeholder engagement should be assessed and incorporated into the selection process as necessary. With a reservoir defined, (depth, pressure, rate, size) and CO₂ volume and product spec understood, a reasonable preliminary cost estimate for the transportation and sequestration from an emitters capture location to the storage location and sequestered, can be generated and an application for tenure could be delivered.

A major component of the risk mitigation strategy for the management of CO₂ sequestration in Alberta is the Measurement, Monitoring and Verification (MMV) plan incorporated into the legislation under which the tenure for the utilization for pore space is granted and which is developed specifically for each project. The MMV plan is a robust roadmap that evolves over the life of the project and includes several key elements that require ongoing measurement and quantification and ultimately guide the evolution of the Post closure Stewardship plan. This element recognizes that eventually the reservoir pore space will be returned to the management of the province with a high level of CO₂ saturation of the pore space with the expectation that it is in a stable condition and permanently sequestered.

Major elements of the MMV which need to be considered and addressed as the project matures include:

• Air quality measurement and management

• Groundwater quality measurement and management

• Downhole CO₂ containment monitoring

• Hydraulic isolation and legacy well risk

• Monitoring for induced or naturally occurring seismicity

• Pipeline containment monitoring

• AER related well/facility and PL operational practices

• Post injection closure and stewardship plan

Once the initial tenure is granted, FEED engineering in parallel with active consultation and stakeholder engagement, and Evaluation permit phase technical work to refine the reservoir performance models is estimated to take 12-18 months. Incorporation of these data would support the commercial sequestration lease application and project FID. Field activity, once a final investment decision is taken and on the assumption that long lead items have been handled adequately, should not be longer than 12 months, for a potential full project timeline of under 36 months.