Fossil Energy Cost and Performance Western Coal Baseline Study

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1 Fossil Energy Cost and Performance Western Coal Baseline Study Jeff Hoffmann Office of Systems, Analyses and Planning DOE/NETL GTC LRCS, October 7, 2009

2 Disclaimer This presentation was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference therein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States t Government or any agency thereof. The views and opinions of authors expressed therein do not necessarily state or reflect those of the United States Government e or any agency thereof. eo Cover Slide Photo Southwest Regional Partnership (SWP) Paradox Basin, Utah Enhanced Oil Recovery Project. The Aneth oil field is located near Bluff, Utah and is one of the largest oil fields in the nation. Elevation at the site ranges from ~4,450 to ~5,510 above sea level (ASL). Photo courtesy SWP/Resolute National Resources. 2

3 Acknowledgements RDS Staff James Black Vincent Chou Robert Brasington Technology vendor involvement is invaluable to this effort: Babcock and Wilcox ConocoPhillips Foster Wheeler GE Shell Siemens Southern Company 3

4 Objectives Determine cost and performance estimates of near-term commercial offerings for power plants utilizing low-rank coals, both with and without current technology for CO 2 capture Reasonable, consistent design requirements Up-to-date performance and capital cost estimates Technologies available today, deployed by 2015 Provides baseline costs and performance Compare existing technologies within appropriate p context Guide R&D for advancing technologies within the FE Program 4

5 Study Matrix Plant Type Gasifier/Boiler PRB LIG IGCC PC CoP E-Gas -- Shell Siemens TRIG -- Supercritical Ultra-Supercritical CFBC Supercritical Each technology evaluated with and without carbon capture and sequestration, carbon capture target of 90% 5

6 Design Basis: Ambient Conditions Rosebud PRB ND Lignite Elevation, m (ft) 1,036 (3,400) 579 (1,900) Barometric Pressure, MPa, (psia) 0.09 (13.0) 0.10 (13.8) Design Temperature, Dry Bulb, o C( o F) 5.6 (42) 4.44 (40) Design Temperature, Wet Bulb, o C ( o F) 2.8 (37) 2.2 (36) Design Relative Humidity, % Cooling/Make-up Water Source Steam condenser load split 50/50 air cooled condenser/wet cooling tower 6

7 Coal Fields/Power Plants Western Coal Study Bituminous Coal Study 0 ASL Low Point High Point Mean Elevation AZ 70 12,633 4,100 CO 3,315 14,440 6,800 MT 1,800 12,799 3,400 ND 750 3,506 1,900 NM 2,842 13,161 5,700 UT 2,000 13,528 6,100 WY 3,099 13,804 6,700 Source: Carpenter, A. and Provorse, C., The World Almanac of the USA, World Almanac Books,

8 8 Performance Comparisons

9 Performance Results Subbituminous Coal IGCC Supercritical Ultra- Supercritical CFBC CO 2 Capture NO YES NO YES NO YES NO YES Gross Power (MW) Net Power (MW) Efficiency (HHV) Lignite IGCC Supercritical Ultra- Supercritical CFBC CO 2 Capture NO Yes NO YES NO YES NO YES Gross Power (MW) Net Power (MW) Efficiency (HHV) Draft Final Results Subject to Revision

10 Comparative Total Plant Cost TPC, $/ /kwnet (mid- -year 2007$) Subbituminous Lignite 4,000 )y While the base year costs 3,500 are June 2007, they are reasonably consistent with 3,000 today s market conditions 2,500 2,000 1, , IGCC C SC PC USC PC CFBC C IGCC C No Capture Capture SC PC Note - IGCC Results represent median of individual cases 10 USC PC Draft Final Results Subject to Revision CFBC C Jan n 05 Ju ul 05 Jan n 06 Ju ul 06 Jan n 07 Ju ul 07 CE Plant Cost Index Jan n 08 Ju ul 08 Jan n 09

11 Notes on Cost Basis Total Plant Cost (TPC) Total Overnight Cost (TOC) Equipment Material TPC Land Labor (Direct and Indirect) Project development costs Sales Tax including costs to secure Engineering Home Office and financing Construction Management First fills for catalysts and Contingency consumables Process Inventory capital Project Preproduction and start-up costs Labor Materials Consumables Waste disposal Fuel The inclusion i of owner s costs in TOC adds roughly 20% to 25% to TPC 11

12 Comparative Cost of Electricity Includes Owners Costs Subbituminous Lignite ye ear LCOE, mills/kwh ty Factor 80% Capacit ty Factor 85% Capacit ty Factor 80% Capacit ty Factor 85% Capacit - IGCC SC PC USC PC CFBC IGCC SC PC USC PC CFBC 12 No Capture Capture Notes - IGCC Results represent median of individual cases All PC and CFBC cases evaluated at 85% Draft Final Results Subject to Revision

13 Avoided Cost of CO 2 Emissions Includes Owners Costs Subbituminous Lignite Levelized Avoided Cost, $/ton IGCC SC PC USC PC CFBC IGCC SC PC USC PC CFBC 80% Capacity Factor 85% Capacity Factor 80% Capacity Factor 85% Capacity Factor Notes - IGCC Results represent median of individual cases All PC and CFBC cases evaluated at 85% Draft Final Results Subject to Revision

14 Comparative Water Usage r Requireme nts, gal/mwh net Subbituminous Lignite Ma ake-up Wate IGCC C SC PC USC PC CFBC C IGCC C SC PC USC PC CFBC C No Capture Capture Note - IGCC Results represent median of individual cases 14 Draft Final Results Subject to Revision

15 Closing Summary Utilizing western coals close to their source of origin (e.g., high elevation, limited water availability) can result in technology selection ect factors very different e than the same plant at a different e location, i.e., one size does not fit all. Even with low rank coals, IGCC technologies take less of an efficiency hit when adding CCS compared to combustion technologies. Using LCOE as the metric for comparison, there is no clear advantage for either IGCC or combustion plants with CCS. In many areas of the country, new coal, with or without CCS, results in significantly higher electricity costs compared to existing assets. Final Report expected late 2009 On the web at html 15

16 16 Back-up Slides

17 Geologic Sequestration Opportunities U.S. Emissions Western ~ 6 GT CO 2 /yr all Bituminous sources Coal Study Coal Study Oil and Gas Fields Conservative Resource Assessment Saline Formations North American CO 2 Storage Potential (Giga Tons) Unmineable Coal Seams Sink Type Low High Hundreds of Saline Formations 969 3,223 Years of Storage Unmineable Coal Seams Potential Oil and Gas Fields Available at 17

18 Impact of Altitude on GT Output North Dakota Montana While lower GT output results, the heat rate is largely unaffected Source: GE Power Systems, GE Gas Turbine Performance Characteristics, GER-3567H (10/00) 18