Stanwell Corporation Queensl Government owned power generator Set world benchmark for automation of coalfuelled power stations in 1993 Built Australia

Transcription

1 Woan Power: a carbon solution GTC Conference Chris Walker Woan Power Commercial Manager 2 November 2010

2 Stanwell Corporation Queensl Government owned power generator Set world benchmark for automation of coalfuelled power stations in 1993 Built Australia s first wind farm in 1997 Actively pursued coal fuelled CCS since Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 2

3 Queensl: coal electricity Queensl Coal Production Electricity Peak Summer Dem Queensl Coal Production Electricity Peak Summer Dem ,000 14,000 Coal production - million tonnes Coal production - million tonnes Saleable coal (MT) Saleable coal (MT) Actual Peak summer dem (MW) Actual Peak summer dem (MW) Forecast Peak summer dem (MW) Forecast Peak summer dem (MW) 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 2,000 2,000 Electricity dem - MW Electricity dem - MW / / / / / / / / / / / / / / / / / / / / / / SOURCES - Coal data: Australian Bureau of Statistics, Australian Mineral statistics, June Quarter 2010 earlier Electricity dem data sourced from Powerlink Annual Planning Report 2010 earlier editions 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 3

4 Options for new generation projects Coal (NO CCS) Enablers/constraints Abundant resources but environmental impact >800kg/MWh Government Policy Legislation Queensl Government policy precludes new conventional coal fuelled power stations, from 2007 Nuclear Community attitudes Australian Government opposed to nuclear power generation Nuclear Facilities Prohibition Act 2007 (Qld) Gas Abundant resources but LNG dem ~ 400kg/MWh Queensl Gas Scheme requires from 2000 at least 15% of electricity retailed to be generated from gas Wind Hydro Biomass Opportunities but limited size dispersed 0kg/MWh Australian Government legislation requires 20% renewable energy by 2020 Solar PV Thermal Cost of technology 0kg/MWh Funding support: Australian Government Solar Flagships Program (2009) Coal with CCS Promising storage Cost of technology ~ 200kg/MWh Clean Coal Technology Act 2007 (Qld) Greenhouse Gas Storage Act 2009 (Qld) Some funding support from Aust. Govt, Qld Govt & ACALET

5 Our power station wish list Stanwell would like a new power station that: Complies with regulatory requirements Is economically competitive, over the project life Can be deployed quickly to meet market needs Is easy to procure (single EPC contract) Has a risk profile that allows debt funding Very low water intensity (ML/GWh) And very low emission intensity (kg/mwh) 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 5

6 Integrated IGCC with CCS Project Project definition scoping Pre-feasibility Feasibility & engineering Construction 2016/17 Start-up Power Plant & Capture Stanwell Corporation & GE Energy Investigate 400MW power project development Near proposed Woan Coal mine Using GE s IGCC technology, GE s capture technology Transport & Storage CTSCo: Xstrata Coal subsidiary Investigate geological storage of at least 2.5 MT/year of Investigate transport to storage site Secure tenements for storage Undertake storage field exploration 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 6

7 Pre-feasibility study Site study Objectives: Objectives: Gain Gain increased increased confidence confidence in in project project costs costs performance performance Underst Underst the the project project development development approval approval requirements requirements Develop Develop a a strategy strategy for for project project delivery delivery Stard: Stard: Class Class 4 4 AACE (Association for the Advancement of Cost Engineering) AACE (Association for the Advancement of Cost Engineering) Key Key activity activity areas: areas: Gasification Gasification power power block block engineering engineering Balance Balance of of plant plant engineering engineering infrastructure infrastructure requirements requirements Site Site evaluation evaluation environmental environmental approvals approvals strategy strategy Project Project scheduling scheduling financial financial modelling modelling Stakeholder Stakeholder community community education education planning planning CO storage 2 storage exploration exploration appraisal appraisal by by CTSCo CTSCo 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 7

8 Pre-feasibility study activities Syngas scrubber Coal Slurry tank Acid gas removal Slurry pump Sulphur recovery separation Oxygen Tail gas treatm ent Radiant syngas cooler Thermal oxidiser for storage Heat recovery steam generator Gas turbine/generator Air separation unit Steam turbine/generator Site study 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 8

9 Pre-feasibility study issues 1. Coal specification Woan coal has been evaluated found suitable for gasification Coal specification will be washed coal with ~ 10% ash 2. Water intensity Design ambient temperature of 28 C is a cooling cha llenge Steam turbine dry cooled but other processes require wet cooling Project dem is estimated at ~ 3,500 to 4,000 ML per year 3. emission intensity Choice between Day 1 capture rates of 65% 90% 65% capture gives ~ 500 kg / MWh 90% capture gives < 200 kg / MWh The higher capture rate appears to be the better choice based on economic analysis for its demonstration value 4. CO2 storage Viability of storing 2.5 MT/year of will need to be confirmed by CTSCo before Woan Power Project can reach financial close 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 9

10 Suitability evaluation of IGCC with CCS Wishlist criteria Complies with regulatory requirements Economically competitive Deployed quickly to meet market needs Easy to procure (single EPC contract) Risk profile that allows debt funding Low water intensity (ML/GWh) Very low CO2 emission intensity (kg/mwh) Seems OK Stanwell s assessment Needs first of a kind support a strong carbon price signal Coal with CCS will take longer to deploy than CCGT or wind We are working to achieve this Initial indications are that some limited recourse funding may be obtainable Project water needs can be met but further reductions are sought < 200 kg/mwh is pretty good: 75% better than supercritical black coal 50% better than gas fuelled CCGT 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 10

11 Project stages /17 Project definition scoping Pre-feasibility Feasibility & engineering Construction Start-up Progress made to end 2010: Defined concept & scoped pre-feasibility work Aligned with CTSCo storage project Secured fuel supply site Secured pre-feasibility phase funding Defined regulatory approval requirements Substantially completed pre-feasibility engineering studies by GE WorleyParsons Built financial model of project Planned scope, schedule delivery strategy for the next phase From 2011 onwards: Secure funding for future phases of work Clarify regulatory issues including carbon pricing storage Firm up arrangements for fuel, water, grid connection etc Firm up offtake by CTSCo Seek project development approvals Engage GE prospective EPC contractor to undertake engineering for definitive feasibility study FEED phases Share the learning with project funders 2010 Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 11

12 Acknowledgement This project acknowledges the prefeasibility funding support received from the Australian Government (as part of the Clean Energy Initiative) the Australian Coal Association Coal 21 Fund : the cooperation assistance received from Xstrata Coal (CTSCo) who are also receiving prefeasibility funding support from the parties above, in addition, the Queensl Government Woan Power Consortium. All Rights Reserved. No part of this document may be of the Woan Power Consortium Commercial in Confidence 12