Cost Evaluation Study on Low Carbon Ammonia and Coal Co-Fired Power Generation

Transcription

1 NH3 Fuel Conference 2018 NH3 Energy+ Topical Conference in AIChE Annual Meeting Cost Evaluation Study on Low Carbon and Coal Co-Fired Power Generation Oct. 31st, 2018 JGC Corporation K. Hiraoka, Y.Fujimura, Y.Watanabe, M.Kai Institute of Applied Energy K.Sakata, Y.Ishimoto, Y.Mizuno 1

2 1. Background 2. Premise of Study 3. Results and Discussion 4. Summary Contents - Objective of Introduction as Fuel - Our Definition of Low Carbon in This Study - Gas Price as Feedstock and Utility in Production - in UAE and in Japan - Cost Estimation of Production and Supply to Japan - Cost Estimation of Power Generation by NH 3 -Coal Co-Firing and NH 3 Firing 2

3 Objective of Introduction as Fuel Increase of threat due to global warming issue Movement for reduction of CO 2 emissions has gained momentum. Technology for stable firing of ammonia and low NOx emissions has been developed in Japanese national project(sip * ). CO 2 emissions from power generation sector are large in Japan. (Approx. 1/3 of total CO 2 emissions are from power generation sector) Application to ammonia-fired thermal power generation is desired to reduce the large amount of CO 2 emissions * SIP stands for Cross-ministerial Strategic Innovation Promotion Program 3

4 Our Definition of Low Carbon 1 Production from Fossil Fuel Integrated with CCS Feedstock:Fossil Fuel NH 3 Production CO 2 Thermal Natural Gas Power Station CO 2 from feedstock CCS and utility is stored. Electricity Cost? Scope of Study 2Production from Renewable Energy Water Nitrogen Renewable Energy NH 3 Production H 2 Production CCS CO 2 Thermal Power Station CO 2 from utility is stored. ( In the case that fossil fuel is used as fuel for production) 4

5 Supply Chain of Low Carbon Overseas (UAE) Natural Gas (Feedstock) Production Liquefaction Loading in Japan in UAE Electricity Power Generation ü NH 3 -Coal Co-Fired ü NH 3 Fired Re-evaporation Unloading Domestic (Japan) 5

6 Premise of Study (1/3) Items NH 3 Supply Amount in Japan Ratio of NH 3 and Coal Co-firing in Power Generation Efficiency of Power Generation on NH 3 -Coal Co-firing/Coal firing (Boiler power generation) Efficiency of Power Generation on NH 3 firing (Gas-turbine power generation) Operation Period Values 1.27 Million Ton/Year 20 %-NH 3 on HHV Basis 36.5 % on HHV Basis at Power Generation End 50 % on HHV Basis at Power Generation End 30 Years Capacity Utilization Ratio Power Generation:80 % Other Facilities:90 % Currency Exchange Rate 121 JPY/USD ü Scope of CAPEX/OPEX CAPEX * :Plant Construction Cost, Decommissioning Cost OPEX * :Feedstock Cost, Utility Cost, Labor Cost, O&M Cost Taxes, Insurance Fees, Overhead Costs, * CAPEX/OPEX were set by taking information from public reports and hearing of experts into consideration. 6

7 Premise of Study(2/3) ü Determination on Price of Feedstock and Utility Timing of large NH 3 -coal co-fired power generation commercialization is assumed to be around Price has been determined taking future market into consideration. Items Natural Gas Price in UAE Electricity Price in UAE Electricity Price in Japan Unit Value 2.6 USD/MMBtu 7.1 US cent/kwh 10.3 US cent/kwh Fuel Oil Pure Water Industrial Water Coal Price in Japan ü Levelized cost calculation method t (( CAPEX t t + OPEX ) (1 + ) / t ( β (1 + α) )) 4.5 US cent/1,000 kcal 4 USD/t 1 USD/t 60 USD/t-Coal α α:discount ratio(5 %) β:annual NH 3 amount or annual electricity volume 7

8 Supply Chain of Low Carbon Overseas (UAE) Natural Gas (Feedstock) Production Liquefaction Loading in Japan in UAE Electricity Power Generation Re-evaporation Unloading Domestic (Japan) 8

9 Premise of Study(3/3) Block Flow of Production Natural Gas (Feedstock) CO 2 from Fuel Applied to Utility CO 2 from Feedstock Applied to Process Desulfurization NG Reforming Shift Reaction CO 2 Capture CO 2 from feedstock is already separated. Natural Gas (Fuel) NH Purification NH 3 Production 3 Liquified Liquefaction Unit Value Process in UAE 35 USD/t-CO 2 (without capturing cost) Utility in UAE 50 USD/t-CO 2 in Japan 125 USD/t-CO 2 * These values were set by taking information from public reports and hearing of experts into consideration. 9

10 Supply Chain of Low Carbon Overseas (UAE) Natural Gas (Feedstock) Production Liquefaction Loading in Japan in UAE Electricity Power Generation Re-evaporation Unloading Supply Chain Cost Domestic (Japan) 10

11 Estimation of NH 3 Supply Chain Cost Supply Chain Cost [USD/t-NH 3 ] Unloading NH 3 Production Distribution Re-evaporation Loading 392 Unloading NH 3 Production Equivalent to 26.7 JPY/Nm 3 -H 2 by heat-based conversion 80 USD/t-NH 3 Approx. 70 % 50 0 Without With Estimated NH 3 supply chain cost is lower than the target of H 2 cost (30 JPY/Nm 3 -H 2 in 2030) from Basic Hydrogen Strategy, Japan 11

12 Supply Chain of Low Carbon Overseas (UAE) Natural Gas (Feedstock) Production Liquefaction Loading in Japan in UAE Electricity Electricity Cost LCA Power Generation Re-evaporation Unloading Domestic (Japan) 12

13 Electricity Cost in Japan [JPY/kWh] Estimation of Electricity Cost (Comparison with Coal Fired Power Generation) 20.2 JPY/kWh (16.7 US cent/kwh) in Japan Power Generation Coal fired 21.7 JPY/kWh (18.0 US cent/kwh) Power Generation Re-evaporation /Distribution Unloading Loading in Japan NH 3 Production NH 3 -coal co-fired (NH 3 : 20% on HHV Basis) Intermediate goal 18.6 JPY/kWh (15.4 US cent/kwh) Power Distribution Generation Re-evaporation Unloading Loading NH 3 Production NH 3 fired* Ultimate goal With 15.6 JPY/kWh from NH 3 Cost Lower than target:17 JPY/ kwh (2030) from Basic Hydrogen Strategy, Japan *Compared to other two case (boiler power generation), gas-turbine power generation is introduced for 13

14 CO 2 Emissions [g-co 2 /kwh-e] Comparison in Terms of Life Cycle CO 2 emissions -52 % -69 % -74 % -81 % -90 % FF Extraction & Processing FF Liquefaction FF Local FF NH 3 Supply Chain Power Generation Coal Ash Treatment CCS in Japan Coal Firing Without CCS LNG Firing Without CCS Coal Firing With CCS Coal-NH 3 Co-Firing With CCS LNG Firing With CCS NH 3 Firing With CCS Calculated using the method presented by AIST at the 13 th Int. Conf. on EcoBalance, October , Tokyo, Japan 14

15 Summary NH 3 cost difference between the case with and without the cost of CCS was 80 USD/t-NH 3 in supply chain cost estimation. The estimated cost meets the target of H 2 supply chain cost in 2030 set by the Basic Hydrogen Strategy in Japan by the conversion on heat basis. Electricity cost of NH 3 -coal co-fired power plant is estimated as competitive compared to that of coal power plant in the case of the cost of CCS is included. Regarding NH 3 fired power generation, that is the ultimate goal, electricity cost originated from NH 3 supply chain cost meets the target set by the Basic Hydrogen Strategy. Moreover, both NH 3 -coal co-fired and NH 3 fired power generation brings the benefit of CO 2 reduction in terms of LCA. 15

16 Thank You for Your Attention! This study was supported by the Council for Science, Technology and Innovation (CSTI), Cross-Ministerial Strategic Innovation Promotion Program(SIP), Energy Carriers (Funding agency: JST) 16