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Navigating CCS Hub Development: A Strategic Guide to Project Management

Writer: Tariq Siddiqui, Tariq Siddiqui,

Updated: Feb 17

By Tariq Siddiqui (UEPA)



Structured Framework for CCS Project Management

Large Carbon Capture and Sequestration (CCS) projects, such as Hub & Cluster developments, are integrated, multidisciplinary endeavors requiring substantial capital and human resources. To effectively manage resources and enable strategic decision-making, a structured, stage-gated project management framework is essential. This approach must align with the storage lifecycle and comply with EPA/UICpermitting and regulatory requirements.

 

Navigating CCS Hub & Clusters Project Development

In this article, we examine a project management framework tailored to the Transporter & Storage Operator model, designed for large CCS hubs and clusters that integrate multiple CO₂ sources and sinks. This model is gaining traction in the U.S., particularly along the Gulf Coast, where established regulatory policies and liberalized markets have fostered its adoption.

 

7-Steps Framework for Successful Lifecycle CCS Projects

A generic 7-step project management framework is recommended (title slide), aligned with the storage lifecycle and regulatory/permitting requirements. While the process and key decision gates serve as a framework for informed decision-making, individual project developers are encouraged to tailor or adapt it to suit their specific needs.


The Front-End Development Manager (FEDM) oversees the first four stages of the process but transitions responsibility to the Project Execution Manager (PEM) at the beginning of the Define Phase (title slide). An internal review team test the robustness of each phase and decision to proceed or recycle. 


Following are high-level activities in each of the seven (7) stage for a CCS project:


Done under Front-End Development Manager

Th value is identified and created in the first three stage of projecct, is referred as front-end development. Its done under supervision of Front-End Development Manager (FEDM).


1-Identify Phase: Have we identified a right site?

The project is initiated, and the EPA/UIC is notified. Initial site screening is conducted under FEDM to confirm that the site meets minimum storage requirements. A lease is secured, and a conceptual development plan is drafted with costs & schedule. Preliminary subsurface evaluations are performed using existing (legacy) regional data.

Decision Gate: Does the site meet the minimum storage requirement?

 

 2-Assess Phase: Have we assessed site in detail in find it feasible for Class VI well

Once site is selected, the storage site undergoes detailed appraisal (feasibility) to address uncertainties through the collection of new site-specific data, such as 2D/3D seismic surveys or the drilling of a new stratigraphic well. Initial reservoir characterization is conducted by integrating legacy and newly acquired data (including, site, social and regulatory data). Additionally, five preliminary EPA/UIC-mandated plans are developed (see title slide). An internal review is done to check the readiness of application and a Class VI injection well permit application is submitted. The EPA/UIC reviews the application, and if all requirements are met, the permit is issued.

Decision Gate: Have we integrated all data to manage uncertainty?

 

3-Select Phase: Do we have one development concept that is commercial?

The injection well is drilled, and reservoir characterization is finalized, with the five mandated plans also updated accordingly. If no significant discrepancies exist between the initial and final characterizations, the EPA/UIC authorizes injection. After injection authorization and before the start of injection operation, a field development concept is finalized, facilities are designed, engineered and commissioned.  

 

In Select stage, team selects the final development concept. The Basis for Design (BfD) is prepared collaboratively by development and the execution team; it translates concept into the technical basis for Project Specification (PS) to estimate execution budget.  At this stage, formal project responsibility transitions from the FEDM to the PEM.

Decision Gate: Have we selected the optimal development concept?

 

Done Under Project Execution Manager

The value created in front-end is protected in next two stages that are done under supervision of Project Execution Manager (PEM).


4-Define Phase

In this team translate the project concept into a structured & costed plan. The project execution team performs following project engineering activities to help make Final Investment Decision (FID):


1.    Prepare Project Specification

2.    Perform FEED (BfD + PS)

3.    Finalize costs & schedule

4.    Identify long-lead Items (LLI)

5.    Issue Invitation to Tender (ITT)

Decision Gate: Are we ready to execute project?

 

5-Execute Phase

The selected EPC company executes following steps and delivers the asset to the asset owner, ready for start-up;


  • Detailed design engineering:

  • Material procurement

  • Construction & fabrication

  • Installation and hook-up

  • Commissioning of facility and

  • Hand-over to operator

Decision Gate: Are we ready to operate?

 

Done Under Asset Manager

6-Operate Phase

Injection operations commence, with continuous monitoring of wells and data collection to track the CO₂injection front. Observed data is used to update models and refine operational plans. Performance metrics and compliance data are regularly reported to the EPA/UIC.


Injection operations cease at the end of the designated injection period, as stipulated in the project plan (~ 20 years).


7-Decommissioning Phase

Site is monitored for integrity during the post-closure period in accordance with the Post-Injection Site Care (PISC) plan. Once the long-term containment of CO₂ is verified, authorities issue a site closure certificate and facilities are Decommissioned & Restored (D&R).

Decision Gate: Can we demonstrate long-term containment?

 

Benchmark

The site characterization and permitting of full scale CCS for injection in saline aquifer in Mt. Simon dome was atarted by ADM in illinois in Jan 2011. Class VI application was submitted on July 17, 25 2011. Class VI permit was granted by EPA after dealy of three years in April 2014. Injection started in April 2017, a total project duration of six (6) years. The project had stored 3.4 MtCO2 by 2021.



Final Insights

Developing large-scale CCS hubs demands a structured, stage-gated approach. This framework ensures informed decision-making, efficient resource allocation, and regulatory compliance at every phase. Project developers can mitigate risks, optimize costs, and enhance project success. As CCS adoption grows, a disciplined project management strategy will be crucial for scaling deployment and ensuring long-term carbon storage integrity.



 

The UEPA : Navigating CCS Complexity for Client Success

For your next CCUS project, trust the expertise of UEPA. With our in-depth knowledge of CCS project development, we offer precise and efficient support for your project. Our comprehensive services cover the full lifecycle of project development and reservoir characterization, ensuring successful Class VI permit applications. Partner with UEPA to ensure your CCUS project is executed smoothly and sustainably.


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