Mitigating carbon penalties clean coal technologies and carbon dioxide capture and storage

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1 Mitigating carbon penalties clean coal technologies and carbon dioxide capture and storage Colin Henderson IEA Clean Coal Centre EUROPEAN FUEL PRICE CONFERENCE: HOW LONG WILL THE HIGH PRICES LAST? London, 9 December 2004 IEA Clean Coal Centre

2 Presentation content Electricity supply context Conventional clean coal technologies Near-zero emissions technologies CO 2 storage Indicative costs International programmes

3 Electricity supply context Future electricity supply security a major issue Coal accounted for 38.7% of world electricity in 2001 Countries such as the USA, Canada, Australia and Japan see coal as continuing to be vital for adequate electricity supply Conservation, renewables and gas alone are not enough for the generation levels and diversity required Gas prices have risen recently and, although coal prices have risen also, there appears to be a widening price gap However, global warming concerns mean CO 2 emissions must be addressed increasingly Hence interest in R&D programmes on clean coal technologies

4 Complementary approaches to carbon dioxide (CO 2 ) mitigation Two ways: Improving efficiency reduces CO 2 emissions in proportion as less fuel consumed. Usually also cost savings APPLICABLE NOW TO MEDIUM TERM CO 2 capture and storage: 80-90% C & S could be achieved. Cost implications from lost power and additional equipment BUT NECESSARY FOR LONGER TERM (2020)

5 Coal technologies Conventional clean coal technologies Pulverised coal combustion (PCC) Circulating fluidised bed combustion (CFBC) Pressurised fluidised bed combustion (PFBC) Integrated gasification combined cycles (IGCC) Future near-zero emission technologies - CO 2 capture Systems based on combustion Systems based on gasification Other systems

6 Pulverised coal combustion SH steam Steam turbine ~ Condenser Coal Coal handling Mills Ammonia Ash SCR ESP Flue gas Air heater Ash Heat exchanger Stack Primary air Limestone slurry FD fans FGD Secondary air Gypsum

7 Pulverised coal combustion Most deployed Mature, reliable Efficiency now in the mid-40s% with supercritical the norm for new units in OECD Desulphurisation, de-nox and particulates capture from flue gas well established Progression to very high steam conditions in prospect within 10 years 50%+ efficiencies - EU and USA programmes based around superalloys

8 Integrated gasification combined cycle (IGCC) Steam Steam Steam turbine ~ Coal feed Gasifier Raw gas Gas cleaning By-product sulphur Oxygen Clean gas Steam Oxygen plant Nitrogen Air Compressor Combustor Waste heat boiler Gas turbine ~ Stack

9 Integrated gasification combined cycle (IGCC) Great promise but slow to take off. Caution by utilities, who fear complexity, reliability, capital cost issues but these are being solved. Efficiency ~45% currently Very low emissions of SO 2 and dust, low NOx HGCU above 500C would raise efficiency Advancing performance and lowering costs helped by GT technology advances - higher turbine entry temperatures, reheat, compressor intercooling

10 Future near-zero emission technologies CO 2 capture and storage: 80-90% capture could be achieved from systems based on combustion or gasification CO 2 would be compressed to about 100 atmospheres and liquefied before transport and storage Storage will need to be in geological stuctures of known long-term integrity Opportunity should be taken also to reduce to very low levels emissions of SO 2, NOx and other pollutants

11 CO 2 capture and storage - combustion based systems Two main approaches: Flue gas cleaning by chemical scrubbing using amines Oxy-coal combustion

12 CO 2 capture by flue gas scrubbing SH steam Steam turbine ~ Decarbonised flue gas Coal Coal handling Mills Ammonia Solvent Stack Ash SCR ESP CO 2 Absorber CO 2 solvent stripper CO 2 to storage Primary air FD fans Air heater Ash FGD Limestone slurry Solvent Steam Secondary air Gypsum

13 CO 2 capture by oxy-coal combustion Recycle flue gas Coal Boiler Gas cleaning, condensate removal and removal of residual O 2, N 2 CO 2 to storage Oxygen Air Oxygen plant Nitrogen

14 CO 2 capture from IGCC Steam Steam CO 2 to storage Steam turbine ~ Coal feed Gasifier Raw gas Shift reaction CO 2 separation and gas cleaning Oxygen Hydrogen By-product sulphur Steam Oxygen plant Nitrogen Air Compressor Combustor Waste heat boiler Gas turbine ~ Stack

15 Path to zero emissions for PCC Now Increasing efficiency, lower emissions, lower costs 2015 on Advanced USC PCC demo non-co 2 capture Advanced USC PCC commercial non-co 2 capture Hg activities: characterisation monitoring removal methods S/C PCC ~45% SO 2 activities: deeper removal new systems NOx activities: deeper removal without SCR Particulates removal move to <10 mg/m 3 First commercial PCC-ZETs retrofits and new Advanced PCC based ZETs CO 2 capture activities: chemical scrubbing demo CO 2 capture activities: PSA, membranes oxy-coal demo ITM oxygen plants commercial

16 Path to zero emissions for IGCC Now on Increasing efficiency, lower emissions, lower costs Commercial non-co 2 Capture IGCC plants HGCU activities: Particulates, SO 2, mercury IGCC commercial scale demos NOx activities: reduce emissions Early full scale IGCC ZETs CO 2 capture activities: chemical scrubbing demo CO 2 capture activities: PSA, membranes ITM oxygen plants commercial Advanced IGCC ZETs plants various technologies multi-products

17 R & D towards zero emissions (PCC) Improve FGD, NOx reduction systems Mercury removal and measurement systems Materials for higher steam conditions CO 2 capture by flue gas scrubbing new chemical and physical solvents CO 2 capture from flue gas using membranes and adsorption techniques Minimise energy use of CO 2 capture Oxycoal combustion SO 2, NOx, mercury removal from CO 2 disposal stream from oxy-coal Ion transport membranes for O 2 production for oxy-coal

18 R & D towards zero emissions (IGCC) Better materials and coal feeding to increase reliability and availability Mercury removal and measurement systems Hot gas clean-up Tests of new turbine designs as they emerge on syngas CO 2 separation technologies for shifted syngas Minimising energy use of potential CO 2 capture systems Ion transport membranes for O 2 production Hydrogen turbine demonstrations Co-production plant concept optimisation

19 CO 2 storage Geological storage will be needed utilisation of CO 2 is insignificant compared to the quantities that are emitted Natural storage reservoirs have capacity to store many decades of emissions of CO 2 Where available, enhanced oil recovery from CO 2 injection would give a negative cost of disposal Enhanced coal bed methane from unminable seams also possible Depleted gas fields could be adapted for CO 2 storage Among other storage options, saline aquifers have large capacity

20 Some CO 2 storage projects Saline Aquifer CO 2 Injection Project (SACS) - monitoring injection of CO 2 into a deep saline reservoir in the North Sea. Over 3 million tonnes, separated from natural gas, stored to date Weyburn CO 2 monitoring project, an international project monitoring CO 2 injection into the Weyburn oil field, Canada for EOR Canada: CO 2 injection into deep coal beds for ECBM recovery

21 Indicative costs Technology $/kwso now $/kwso in 10 years Supercritical PCC Supercritical PCC ZETs IGCC IGCC - ZETs Power generation costs are likely to be around 40-70% higher than for non-zets, excluding transport and storage The cost of CO 2 avoided is in the region of $20-50/t CO 2 if the reference is the same type of plant without capture Transport of CO 2 adds $1-3/t CO2 per 100 km For storage, an abatement cost curve applies as more attractive sites would be used first. Cost ranges from -$20/t CO 2 to $20/t CO 2 for up to 120 Gt in depleted oil fields

22 Programmes

23 USA (1) US$4.8 billion US DOE CCT Program has run for over 15 years Clean Coal Power Initiative (CCPI) - federal cost estimated at US$2 billion - is its effective successor programme CCPI implements National Energy Policy (NEP) recommendations to increase investment in CCTs. Will address Clear Skies Initiative (CSI), which calls for large reductions in emissions of SO 2, NOx and mercury US$95 million Power Plant Improvement Initiative (PPII) established in 2000 for commercial-scale demonstration of near-term technologies US DOE integrated Coal Power Program Roadmap produced, The roadmap is a set of technology destinations and R&D needs, together with targets. Covers near-, medium- and long-term Vision 21 programme, now part of CCPI, initiated in 1998, is aimed at near-zero environmental impact fossil fuel plant designs within 15 years

24 USA (2) - FutureGen The pace has quickened with the FutureGen Integrated Sequestration, Hydrogen and Energy Research Initiative in 2003 Achieving multi-product plants with CO 2 capture and storage rapidly now a major feature of US energy policy 1 US$ billion project,10-year timeframe, will demonstrate nearzero emission 275 MWe coal-fuelled IGCC plus hydrogen production and CO 2 capture and storage Brings together three other initiatives and the CSI (Hydrogen Fuel Initiative (2003), the National Climate Change Technology Initiative (2001), and the Global Climate Change Initiative (2002) Carbon Sequestration Leadership Forum (CSLF) formed in 2003 to gather and exchange information internationally on carbon capture and storage and to establish joint projects. FutureGen will use this linkage and has issued a prospectus inviting foreign participation

25 Canada Clean Coal Technology Roadmap process to: identify technologies, time frames, costs, environmental performance, etc recommend actions CCTRM interfaces with the CO 2 capture and storage roadmap, which aims to: identify pathways, integration needs and developments needed for C & S identify CO 2 storage opportunities and opportunities for EOR, CBM, H 2 production Canadian Clean Power Coalition (CCPC) Feasibility and costs of retrofitting PCC plant with CO 2 capture and costs of greenfield plant being assessed Costs of meeting near-zero emissions without CO 2 capture CAN$ /kWe (retrofit); CAN$2700/kWe (new plants) 2004 Phase 1 report - for greenfield plants, IGCC best - higher efficiency, ease of emission reduction and lowest energy penalty for CO 2 capture. Retrofits for CO 2 control found not to be attractive for PCC plants Many other activities in Canada on CO 2 capture and storage

26 Australia COAL21 Major initiative, involving key stakeholders across industry, government and researchers CO 2 emissions reduction from coal use in power generation seen as key issue to address to maintain energy security Range of CO 2 abatement options studied, from mining through to utilisation (efficiency improvements and CCTs) and CO 2 capture and storage Oxy-coal combustion and IGCC identified as important - joint project in two stages with Japan recently announced: Stage 1 Detailed engineering feasibility study on the technical requirements and costs to convert an existing PCC boiler. Stage 2 Pending the outcome of Stage 1, establishment of demonstration plant capable of producing up to 150,000 tonnes per year of CO 2 for geological storage over a test period of 3 to 4 years.

27 Japan C3 Study Group launched January 2004 by METI to develop new medium- to long-term coal policy All-round perspective from mines development to utilisation Development of technologies for environmentally friendly utilisation Infrastructure measures to stabilise coal prices International cooperation Gasification as core technology but also oxy-coal combustion Australian co-operation Similar technologies also featured in a plan drawn up in 2002 by the Centre for Coal Utilisation of Japan (CCUJ)

28 Germany COORETEC (CO 2 reduction technologies) Government review of R&D needs of zero emission plants by working groups from utilities, R&D institutions and academia Fossil plants needed as well as more renewables and CHP Current context of gradual closure of existing nuclear plants Short-medium term, R&D to raise efficiency Medium term, various coal-fired combined cycle developments Long term, combined cycles incorporating fuel cells IGCC seen as better for CO 2 capture - demonstration plant needed Development of CO 2 capture and storage important, priority to EGR

29 UK Carbon Abatement Technology strategy being formulated following Energy Review and White Paper Effectively a successor to CCT Programme but not just for coal Consultation document published and date for submissions now passed Large increase in gas use for power generation envisaged by 2050 (60% dependence) Efficiency measures and CO 2 C & S needed including on NGCC

30 China and India China Large existing capacity of sub-critical PCC Policy to deploy supercritical PCC - currently 10 SC units with combined capacity of 6 GWe Two further 800 MWe SC units undergoing commissioning Another 20 SC units approved for construction IGCC MWe demonstration planned at Yantai, Shandong Province India BHEL operated 6 MWe fluidised bed gasifier IGCC during the late 1990s. Now seeking partners for 100 MWe demonstration plant Lignite-fuelled IGCC also planned Interest also in supercritical PCC and PFBC

31 Programmes - summary USA Largest player, coal provides ~50% of power. Numerous initiatives including FutureGen, CCPI, Vision 21, Coal Power Program Roadmap, PPII, Clear Skies Canada - Canadian clean coal technology roadmap; Canadian Clean Power Coalition (CCPC) (IEA CCC and IEA GHG involvement in latter) Australia - Significant public funding of CCTs and ZETs; COAL21 Japan - C3 (Clean Coal Cycle) Initiative and CCUJ strategy including ZETs EU 700C USC demonstration project (THERMIE under 4 th and 5 th FW); 6 th FW coverage for coal requires ZETs projects Germany Government intervention to maintain use of hard and brown coals in power generation; COORETEC for ZETs UK Successor to CCT Programme based on ZETs being planned following Energy Review and White Paper but large increase in gas use envisaged Other countries - China and India power sectors dominated by coal; interested in CCTs

32 CONCLUSIONS Future electricity supply security a major issue coal needed so CO 2 abatement necessary Improving efficiency reduces CO 2 emissions. Usually also cost savings APPLICABLE NOW TO MEDIUM TERM CO 2 capture and storage will have cost implications from lost power and additional equipment LONGER TERM (2020) Systems with CO 2 capture based on combustion (PCC) and on gasification both likely to be used. Latter has efficiency advantage but PCC has most of current conventional market Much R&D activity on both

33 About the IEA CLEAN COAL CENTRE An IEA information service: sister to IEA GHG Members from 14 countries China and Korea in process of joining Reports every year Technical focus, coal fired power, environment R & D Facilitation Databases Abstracts Expert Advice Ad hoc consulting for members

34 IEA CCC reports related to this talk Clean coal technologies Clean coal technologies roadmaps Toward zero emission coal-fired plants (next year) All reports are authored by Dr Colin Henderson and are available to purchase through our Website