Commercial value chain optimization and economic modelling for the Barendrecht CO2 storage project.

Abstract: Shell CO₂ Storage B.V. (SCS) is planning to inject up to 10 million tonnes of CO₂ in two depleted gas fields: Barendrecht (BRT) and Barendrecht-Ziedewij (BRTZ). This paper describes the process of selecting an optimised commercial value chain design for capture, transportation, injection and marketing of the CO₂, requiring a helicopter view of the full system from source to sink over the 30 year injection life cycle of the project. The commercial concepts considered, selection criteria used and the selected concept will be discussed. Second, the economic modelling criteria for the main value drivers of the project will be discussed and the main differences with traditional petroleum economics will be indicated. Although the project is not pursued for financial profit, the use of the evaluation methodology described below has resulted in an optimal value proposition and value chain for Government, project, sub-contractors and society. The analysis showed that the project differed significantly from other CCS projects due to the relative weight of the transportation value component. The risk and uncertainty approach for the economic modelling of the key value drivers of the projects has resulted in a robust economic model to assist decision making for any changes to the project in a rapidly changing political environment. [Copyright &y& Elsevier]