ANNEX IU.K.CRITERIA FOR THE CHARACTERISATION AND ASSESSMENT OF THE POTENTIAL STORAGE COMPLEX AND SURROUNDING AREA REFERRED TO IN ARTICLE 4(3)

Step 3:Characterisation of the storage dynamic behaviour, sensitivity characterisation, risk assessmentU.K.

The characterisations and assessment shall be based on dynamic modelling, comprising a variety of time-step simulations of CO2 injection into the storage site using the three-dimensional static geological earth model(s) in the computerised storage complex simulator constructed under Step 2.U.K.

Step 3.1: Characterisation of the storage dynamic behaviourU.K.

At least the following factors shall be considered:

(a)

possible injection rates and CO2 stream properties;

(b)

the efficacy of coupled process modelling (that is, the way various single effects in the simulator(s) interact);

(c)

reactive processes (that is, the way reactions of the injected CO2 with in situ minerals feedback in the model);

(d)

the reservoir simulator used (multiple simulations may be required in order to validate certain findings);

(e)

short and long-term simulations (to establish CO2 fate and behaviour over decades and millennia, including the rate of dissolution of CO2 in water).

The dynamic modelling shall provide insight into:

(f)

pressure and temperature of the storage formation as a function of injection rate and accumulative injection amount over time;

(g)

areal and vertical extent of CO2 vs time;

(h)

the nature of CO2 flow in the reservoir, including phase behaviour;

(i)

CO2 trapping mechanisms and rates (including spill points and lateral and vertical seals);

(j)

secondary containment systems in the overall storage complex;

(k)

storage capacity and pressure gradients in the storage site;

(l)

the risk of fracturing the storage formation(s) and caprock;

(m)

the risk of CO2 entry into the caprock;

(n)

the risk of leakage from the storage site (for example, through abandoned or inadequately sealed wells);

(o)

the rate of migration (in open-ended reservoirs);

(p)

fracture sealing rates;

(q)

changes in formation(s) fluid chemistry and subsequent reactions (for example, pH change, mineral formation) and inclusion of reactive modelling to assess affects;

(r)

displacement of formation fluids;

(s)

increased seismicity and elevation at surface level.

Step 3.2: Sensitivity characterisationU.K.

Multiple simulations shall be undertaken to identify the sensitivity of the assessment to assumptions made about particular parameters. The simulations shall be based on altering parameters in the static geological earth model(s), and changing rate functions and assumptions in the dynamic modelling exercise. Any significant sensitivity shall be taken into account in the risk assessment.

Step 3.3: Risk assessmentU.K.

The risk assessment shall comprise, inter alia, the following:U.K.

3.3.1.Hazard characterisationU.K.

Hazard characterisation shall be undertaken by characterising the potential for leakage from the storage complex, as established through dynamic modelling and security characterisation described above. This shall include consideration of, inter alia:

(a)

potential leakage pathways;

(b)

potential magnitude of leakage events for identified leakage pathways (flux rates);

(c)

critical parameters affecting potential leakage (for example maximum reservoir pressure, maximum injection rate, temperature, sensitivity to various assumptions in the static geological Earth model(s));

(d)

secondary effects of storage of CO2, including displaced formation fluids and new substances created by the storing of CO2;

(e)

any other factors which could pose a hazard to human health or the environment (for example physical structures associated with the project).

The hazard characterisation shall cover the full range of potential operating conditions to test the security of the storage complex.

3.3.2. Exposure assessment — based on the characteristics of the environment and the distribution and activities of the human population above the storage complex, and the potential behaviour and fate of leaking CO2 from potential pathways identified under Step 3.3.1. U.K.