ConocoPhillips Sweeny IGCC/CCS Project

Under its Industrial Carbon Capture and Sequestration (ICCS) Program, the United States (U.S.) Department of Energy (DOE) selected ConocoPhillips Company (ConocoPhillips) to receive funding through the American Recovery and Reinvestment Act (ARRA) of 2009 for the proposed Sweeny Integrated Gasification Combined Cycle (IGCC)/Carbon Capture and Storage (CCS) Project (Project) to be located in Brazoria County, Texas. Under the program, the DOE is partnering with industry to demonstrate the commercial viability and operational readiness of technologies that would capture carbon dioxide (CO{sub 2}) emissions from industrial sources and either sequester those emissions, or beneficially reuse them. The primary objective of the proposed Project was to demonstrate the efficacy of advanced technologies that capture CO{sub 2} from a large industrial source and store the CO{sub 2} in underground formations, while achieving a successful business venture for the entity (entities) involved. The Project would capture 85% of the CO{sub 2} produced from a petroleum coke (petcoke) fed, 703 MWnet (1,000 MWgross) IGCC power plant, using the ConocoPhillips (COP) proprietary and commercially proven E-Gas{trademark} gasification technology, at the existing 247,000 barrel per day COP Sweeny Refinery. In addition, a number of other commercially available technologies would be integrated into a conventional IGCC Plant in a unique, efficient, and reliable design that would capture CO{sub 2}. The primary destination for the CO{sub 2} would be a depleted natural gas field suitable for CO{sub 2} storage ('Storage Facility'). COP would also develop commercial options to sell a portion of the IGCC Plant's CO{sub 2} output to the growing Gulf Coast enhanced oil recovery (EOR) market. The IGCC Plant would produce electric power for sale in the Electric Reliability Council of Texas Houston Zone. The existing refinery effluent water would be treated and reused to fulfill all process water needs. The DOE ICCS program adopts a two-phase approach. During the 7-month Phase 1 period, ConocoPhillips further defined the Project by advancing the preliminary design, permits, and contracts. In addition, ConocoPhillips was developing a Phase 2 renewal application to seek continued DOE funding for the Project's design, construction, and early operations. The DOE and ConocoPhillips entered into a Phase1 Cooperative Agreement (DOE Award Number DE-FE0001859) on November 16, 2009, agreeing to share cost on a 50/50 basis during the Phase 1 period, with a DOE budget of $2,989,174. On April 7, 2010, ConocoPhillips informed the DOE that it would not participate in Phase 2 of the DOE ICCS program. The company believes that enabling legislation and regulations at both the federal and state levels will not be approved and implemented in time to make a final investment decision such that the Project would be substantially constructed by September 30, 2015, the end of the AARA funding period. Considering current price assumptions, the Project would not generate investment level returns. ConocoPhillips elected not to submit a Phase 2 renewal application, which was due on April 16, 2010. This Final Scientific/Technical Report provides an overview of the Project, including highlights and benefits of the proposed carbon capture and storage project scope, sites, and technologies. It also summarizes the work accomplishments during the Phase 1 period from November 16, 2009 to June 16, 2010. Due to ConocoPhillips decision not to submit the Phase 2 renewal application and not to enter into related agreements, certain information regarding the proposed CO{sub 2} storage facility cannot be publicly reported due to confidentiality agreements