UK-based oil and gas company Block Energy has initiated phase two studies for its carbon capture and storage (CCS) project in licence XIB in Georgia.
The studies are in collaboration with Rustavi Azot, a subsidiary of Singapore-based chemical company Indorama, and follow a memorandum of understanding declared in May to develop the CCS opportunity identified within Block Energy’s Patardzeuli-Samgori Middle Eocene reservoir.
Block Energy holds seven production-sharing contracts in central Georgia covering 4,256km², including the XIB licence with 2.77tcf of gas resources and a net present value of $1.65bn (£1.31bn).
The second phase of the project will encompass desktop and laboratory studies, culminating in a pilot injection scheme. This scheme aims to establish a monitoring and verification plan for carbon storage, leading to the commercialisation of the CCS initiative.
Upon completion of the phase two studies, which will include a workover and the recompletion of a Patardzueli well, Block Energy and Rustavi Azot plan to proceed with the pilot CO₂ injection into the reservoir in Q1 2025.
Three commercialisation routes, targeting both mandatory and voluntary carbon markets, have already been identified and will be further explored during the study.
The proposed technology for CO₂ storage in the Middle Eocene formation draws on methods successfully implemented by CarbFix in Iceland and the ongoing pilot by 44.01 in the United Arab Emirates.
The process involves dissolving CO₂ in water and injecting it into a zeolite-rich reservoir, where it is expected to mineralise into calcium carbonate in less than 12 months, effectively sequestering the majority of the CO₂.
Block Energy CEO Paul Haywood said: "This project represents a crucial step in our commitment to climate action and aligns with our ESEG values as we embark on developing the broader strategies across our portfolio. We have engaged in productive discussions with interested parties concerning long-term commercialisation and scalability.
“Now, we look forward to transforming the project from concept to reality, seeking proof of concept, around injecting CO₂ into the reservoir for permanent storage. By employing mineralisation, a maturing technology, we can offer a cost-effective solution that stands apart from conventional offshore carbon storage methods.”
Haywood added: “The upcoming pilot injection and monitoring plan signify major progress toward commercialisation and full-scale development."
The CCS project is expected to benefit from reduced costs due to the reuse of existing field infrastructure and its proximity to industrial emission sources.
Additionally, the scheme will utilise water recycled from the non-potable Middle Eocene aquifer. The significant contribution of hydroelectric power to Georgia's electricity grid further bolsters the environmental benefits of the project.
Eurasia Indorama Corporation group director Prakash Kejriwal said: "We are pleased to partner with Block Energy to carry out this pilot project. Indorama is committed to reducing GHG [greenhouse gases] and this collaboration brings an opportunity for Rustavi Azot to potentially reduce its CO₂ emission at the site by applying technology for CCS."
