Major Carbon Capture and Storage Project Advancing at ADM

Groundbreaking study will help determine the future of geologic carbon sequestration

Archer Daniels Midland Company (NYSE: ADM) and its research collaborators today marked a milestone in one of the nation’s first large-scale projects intended to confirm that carbon dioxide emissions can be stored permanently in deep underground rock formations.

At a ceremonial groundbreaking celebrating the imminent completion of an approximately 8,000-foot-deep injection well on ADM’s Decatur, Ill., property, officials from ADM, the U.S. Department of Energy’s National Energy Technology Laboratory, the Midwest Geological Sequestration Consortium (MGSC), the Illinois State Geological Survey (ISGS) and Schlumberger Carbon Services noted the significance of the Illinois Basin-Decatur project.

“The science and technology employed in this project may point the way to a future in which carbon emissions from manufacturing operations are commonly stored far below the Earth’s surface, rather than being emitted into the atmosphere,” said Robert Finley, director, Energy and Earth Resources Center, Illinois State Geological Survey, University of Illinois.

The project may also help determine whether geologic carbon sequestration can further improve the environmental footprint of alternative fuels such as ethanol by capturing and storing carbon emissions associated with their production.

In February 2009, Schlumberger Carbon Services began drilling the approximately 8,000-foot-deep injection well at the 207-acre project site near ADM’s corn wet mill in Decatur, Ill., which produces starch for fuel ethanol and a number of other products. Once the injection well is completed, a carbon dioxide dehydration/compression facility will be constructed near the corn wet mill and a 3,200-foot-long pipeline will also be constructed to transport carbon dioxide to the well.

Beginning in early 2010, carbon dioxide emitted during the ethanol fermentation process at the corn wet mill will be injected into the Mount Simon Sandstone, a large, saline water-bearing rock formation, at a rate of 1,000 metric tons per day. By 2013, a total of one million metric tons of carbon dioxide — roughly the annual emissions of 220,000 automobiles — is expected to be stored within the formation.

“We at Schlumberger are committed to applying our subsurface engineering expertise to make this project a technological success,” said David White, president of Schlumberger Carbon Services. “What is learnt here can be applied throughout the rest of the country, and we feel a real sense of urgency to validate new technologies to move beyond demonstration to full implementation where carbon capture and storage will make a major contribution to meeting the challenges of emissions reduction in a safe and reliable manner.”

The MGSC is one of seven regional carbon sequestration partnerships created by the U.S. Department of Energy to research and demonstrate suitable technologies and infrastructure needs for carbon sequestration in different regions of the United States and Canada. Of the seven partnership projects, the Illinois Basin-Decatur project is the first well permitted and drilled for a one million metric ton saline reservoir test.

“We at ADM are privileged to be working with the U.S. Department of Energy, the MGSC, the Illinois State Geological Survey, the University of Illinois and Schlumberger Carbon Services to advance our collective understanding of carbon sequestration, and to help lay the groundwork for a future in which capture and storage may form part of a comprehensive emissions-reduction strategy,” said ADM Chairman, CEO and President Patricia Woertz.

The information gained from the Illinois Basin-Decatur project will further the understanding of carbon sequestration technology around the world. Other large-scale carbon sequestration demonstration projects are taking place in Algeria, Canada and Norway.

About ADM

Every day, the 27,000 people of Archer Daniels Midland Company (NYSE: ADM) turn crops into renewable products that meet the demands of a growing world. At more than 230 processing plants, we convert corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical and energy uses. We operate the world’s premier crop origination and transportation network, connecting crops and markets in more than 60 countries. Our global headquarters is in Decatur, Illinois, and our net sales for the fiscal year ended June 30, 2008, were $70 billion. For more information about our Company and our products, visit www.adm.com.

About the Illinois State Geological Survey

Founded in 1905, the Illinois State Geological Survey provides the citizens and institutions of Illinois with earth science research and information that are accurate, objective and relevant to the state’s environmental quality, economic prosperity and public safety. ISGS is one of four scientific surveys within the Institute of Natural Resource Sustainability at the University of Illinois. Together, they form a unique group of scientific experts in the earth, environmental and biological sciences that is unmatched in the nation. These agencies carry out objective, high-quality, multi-disciplinary scientific studies in service to all the people of Illinois.

About the Midwest Geological Sequestration Consortium

The Midwest Geological Sequestration Consortium is one of seven regional carbon sequestration partnerships selected by the U.S. Department of Energy to determine the best approaches for capturing and storing carbon dioxide that might otherwise contribute to global climate change. The MGSC is led by the Illinois State Geological Survey, in conjunction with the Indiana Geological Survey and the Kentucky Geological Survey, and covers Illinois, southwestern Indiana and western Kentucky. This partnership was established to assess geological carbon sequestration options in the 60,000-square-mile geologic feature known as the Illinois Basin. Within the Basin are deep, noneconomic coal resources, numerous mature oil fields and deep saline rock formations with potential to store carbon dioxide. MGSC’s objective is to determine the technical and economic feasibility of using these geologic formations for long-term storage.

About the National Energy Technology Laboratory

The National Energy Technology Laboratory (NETL), part of DOE’s national laboratory system, is owned and operated by the U.S. Department of Energy (DOE). NETL supports DOE’s mission to advance the national, economic, and energy security of the United States. NETL implements a broad spectrum of energy and environmental research and development (R&D) programs that will return benefits for generations to come while protecting our environment and enhancing our energy independence.

About Schlumberger Carbon Services

Schlumberger is the world's leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. Employing more than 87,000 people representing over 140 nationalities and working in approximately 80 countries, Schlumberger provides the industry's widest range of products and services from exploration to production.

Schlumberger Carbon Services provides technical expertise, project management and technology for comprehensive carbon dioxide geological storage solutions, consistent with care for health, safety and the environment. For more information, visit www.slb.com/carbonservices.

Schlumberger Limited has principal offices in Paris, Houston and The Hague and reported consolidated revenues of $27.16 billion in 2008.

Editor’s Note: For more information, visit www.adm.com/carbon and www.sequestration.org.

 

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