How do you assess the economic viability of power generation from CO2-EOR compared to other sources?

1 CO2-EOR basics

CO2-EOR involves pumping CO2, usually from industrial sources, into oil wells that have low production rates. The CO2 dissolves in the oil and makes it less viscous and more mobile, allowing it to flow more easily to the surface. The CO2 can also displace the oil and push it towards the production wells. The CO2-EOR process can recover up to 20% of the original oil in place, compared to 5-15% with primary and secondary recovery methods.

3 CO2 supply and cost

One of the main challenges of CO2-EOR is securing a reliable and affordable source of CO2. The CO2 can come from natural sources, such as gas fields or geothermal wells, or from anthropogenic sources, such as power plants, refineries, or cement factories. The cost of CO2 depends on the distance and infrastructure required to transport it from the source to the injection site, as well as the quality and purity of the CO2. The cost of CO2 can range from $10 to $60 per ton, depending on the location and market conditions.

5 Reservoir characteristics

The reservoir characteristics also play an important role in the economic viability of CO2-EOR. The reservoir characteristics include the size, depth, temperature, pressure, porosity, permeability, heterogeneity, and oil composition of the oil field. These factors affect the amount and quality of oil that can be recovered, the injection and production rates, the recovery efficiency, and the technical feasibility of the CO2-EOR process. The reservoir characteristics can vary widely from one field to another, requiring different designs and optimization strategies for each project.

6 Regulatory and environmental factors

The regulatory and environmental factors are another aspect that influences the economic viability of CO2-EOR. The regulatory factors include the laws, policies, incentives, and standards that govern the CO2-EOR industry, such as taxation, subsidies, carbon pricing, permits, and reporting requirements. The environmental factors include the impacts and benefits of CO2-EOR on the climate, water, land, and biodiversity, such as emissions reduction, carbon storage, water use, land use, and ecological risks. The regulatory and environmental factors can create opportunities or barriers for the development and deployment of CO2-EOR, depending on the level of support or opposition from the government, stakeholders, and public.