STRATEGIC OPTIONS FOR SUSTAINABLE POWER GENERATION

Transcription

1 STRATEGIC OPTIONS FOR SUSTAINABLE POWER GENERATION Integration of Coal Hydrogasification and Algae Farm for Co-Production of Substitute Natural Gas (SNG), Biofuel and Electricity with Near Zero CO 2 Emissions US DOE/NETL Contract No: DE-FC26-06NT42759 California Air Resources Board San Francisco, CA July 12, 2007 Raymond Hobbs

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3 PINNACLE WEST CAPITAL CORP $ 3.4 Billion Revenue * Retail Energy - APS Energy Services Pinnacle West Energy Arizona Public Service - APS Real Estate - SunCor Venture Capital - El Dorado $ 11.3 Billion Assets * $327 Million Income * * Results For Year 2006

4 ARIZONA PUBLIC SERVICE 50,000 square mile service area 1 million electric customers 3.5% annual growth rate 48,063 GWHR energy sales * 7,619 MW peak (July) 13,165 MW managed capacity 32% Uranium Fuel Mix 7,000 MW APS-owned capacity Fuel Mix * 56.1% Coal 0% Oil 11% Gas 57% Coal 32.5% Nuclear 11.4% Gas * Results For Year 2005

5 NUCLEAR Palo Verde 4,000 MW Largest Nuclear Plant in the USA

6 COAL FIRED POWER PLANTS Plant Total MW APS MW Four Corners 2,040 MW 782 MW Navajo 2,250 MW 337 MW Cholla 1,000 MW 715 MW

7 ARIZONA Home of High Growth in a Desert Need more electricity, 4% annual growth rate Need more gasoline, diesel, jet fuel energy Need more water Need more food Need more, more, more.

8 ARIZONA Concerns For the Future Air quality and health concerns Vehicles Power plants Renewable energy Electric rate economic pressure Greenhouse gas limitation Getting hotter Sustainability

9 UTILITIES What Role Do We Play? We need to resume leadership role by creating better strategies Instruments of public policy Political and regulatory Balance economic and policy goals Provide reliable, economical electric energy Last round of new electric generation.. NGCC Good Bad High efficiency Fast and low cost construction Locatable near load centers Great environmental and low greenhouse emissions NG price escalation and volatility Triggered major increase in NG demand Next round of new electric generation??

10 SUSTAINABILITY 21 st Century Challenge A strategy from today into the next 120 years.the next 1000 years. A strategy which sets the corner stones upon which future generations can build. A strategy which does not make us hostage to the nationalism of foreign fuel supplies. A strategy which incorporates carbon management discouraging waste.

11 CARBON MANAGEMENT STRATEGY I. Coal to SNG (Substitute Natural Gas Pipeline Quality) Minimize CO 2 production, hydro-cracking coal II. Green Hydrogen Production Key to carbon management III. Emissions to Fuel Algae farms: recycling CO 2

12 WHY SNG? NGCC are efficient, clean, economical to build Easily located close to load Existing infrastructure NG PROBLEM: Price, volatility and supply

13 PRICE OF NATURAL GAS Wonder what the price will be in 2017? World Bank: North American LNG imports will increase from 5.27 mtpa in 2002 to 82.3 mtpa in 2020 (low demand scenario). Russia 30.5% of proven NG reserves. Iran 14.8% of proven NG reserves. Political trend of countries nationalizing fossil resources.

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15 COAL TO SNG INFRASTRUCTURE Maximize use of existing infrastructure Coal mining Coal handling and processing Natural gas pipelines, transmission and distribution Natural gas market

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17 CRITERIA POLLUTANT EMISSIONS FOR ALL CASES DOE NETL Report 2007/1281 May SO2 NOx 0.10 PM Hg Hg emissions are lb/tbtu / lb/mmbtu GE GE w/co2 CoP IGCC CoP w/co2 Shell Shell w/co2 PC-sub Case PC-sub w/co2 PC-SC Pulverized Coal PC-SC w/ CO2 NGCC NGCC w/co2

18 CO 2 EMISSIONS FOR ALL CASES DOE NETL Report 2007/1281 May lb/mmbtu GE GE w/co2 CoP CoP w/co2 Shell Shell w/co2 PCsub PCsub w/co2 PC-SC PC-SC w/co2 NGCC NGCC w/co2

19 TOTAL PLANT COST COMPARISON DOE NETL Report 2007/1281 May $/kw ($2006) Avg IGCC Avg IGCC w/ CO2 Capture PC-Sub PC-Sub w / CO2 Capture PC-Super PC-Super w/ CO2 Capture NGCC NGCC w / CO2 Capture Total Plant Capital Cost includes contingencies and engineering fees

20 COST OF ELECTRICITY COMPARISON DOE NETL Report 2007/1281 May January 2007 Dollars, Coal cost $1.80/10 6 Btu. Gas cost $6.75/10 6 Btu cents/kwh ($2007) Avg IGCC Avg IGCC w/ CO2 Capture PC-Sub PC-Sub w/ CO2 Capture PC-Super PC-Super w/ CO2 Capture NGCC NGCC w/ CO2 Capture

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22 Coal Hydrogasification

23 WHAT IS HYDROGASIFICATION? Coal to SNG Why Hydrogasification Traditional Burn Coal Coal + Air CO 2 + Heat (exothermic) Coal Gasification (Syngas BTU/scf) Coal + Air + Water CO + H 2 + CO 2 Coal + O 2 + Water CO + H 2 + CO 2 Hydrogasification (Methane 980 BTU/scf) Coal + H 2 CH 4 + Heat (exothermic) Process development will maximize CH 4, and minimize CO 2 Hydrogasification promises higher efficiency than POX

24 COAL RESERVES Utah 5,488 B Tons Colorado 16,365 B Tons Arizona 23 B Tons New Mexico 12,212 B Tons

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26 WIND POWER CAPACITY IN WESTERN STATES State Capacity (GW) Annual Electric Production (TWh) Annual H2 Production (Tons 10 6 ) H2 Energy Value Quads BTU (hhv) North Dakota 345 1, South Dakota 294 1, Texas 340 1, Montana 291 1, Wyoming Colorado Utah New Mexico TOTAL 1,744 6, Resource: Elliott, D.L., Wendell, L.L., Gower, G.L., An Assessment of the Available Windy Land Area and Wind Energy Potential in the Contiguous United States. 1991, Pacific Northwest Laboratory.

27 HYDROGEN PRODUCTION Steam Reforming or Electrolysis? 95% of the hydrogen produced in the USA comes from reforming of natural gas Resource: NP2010 Texas Gulf Coast Nuclear Feasibility Study (Appendix 3B). 2005, US DOE. p. 3-16

28 HYDROGEN SOURCE Wind H 2 : $2.62/kg 1 Electricity Electrolysis *100% Renewable Energy Grid H 2 : $1.28/kg 2 Coal Gasification H 2 : $0.80/kg 3 1 : Reflects wind farm energy and electrolysis Capital & O&M costs. 2 : Reflects electrolysis Capital and O&M costs. 3 : Hydrogen Production Facilities Plant Performance and Cost Comparisons, Final Report, March 2002, Under: Contract No: DE-AM26-99FT40465 between NETL and Concurrent Technologies Corporation

29 SNG Process Comparison Between Stream-Oxygen Gasification and Hydrogasification Overall Stoichiometry of Stream-Oxygen Gasification* CH 0 + CO 0.8O O H 2O 0.28CH Overall Stoichiometry of Hydrogasification CH 0.88O H O2 0.83CH CO H 2O Overall Stoichiometry of Hydrogasification with Electrolysis CH 1 + O 0.88O H 2O 0.83CH CO *: Steinberg, M., Process for Conversion of Coal to Substitute Natural Gas (SNG). 2005, HCE, LLC: Melville, NY.

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31 SNG PROCESS COMPARISON BETWEEN STEAM-OXYGEN GASIFICATION AND HYDROGASIFICATION Terms Steam-Oxygen Gasification* APS AHP (100% H 2 from Wind or Nuclear) Coal Source PRB, Wyo Navajo, NM Coal Heating Value, BTU/lb, (AR) 8,800 9,980 Coal Feed Rate (TPD) 8,300 3,235 SNG Product (MMSCFD) Net Electricity Sales (MW) CO 2 Product (MMSCFD) * Keeler, C., Substitute Natural Gas (SNG) Scrubbing the Carbon in Coal and Petcoke, in Gasification Technologies Conference. 2006: Washington D.C.

32 GREEN HYDROGEN INCREMENTALLY ADDED TO HYDROCARBON FUEL Electrolysis incorporates using energy from many sources to produce both hydrogen and oxygen

33 HYDROGASIFICATION STATUS PHASE II

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35 CARBON RECYCLING Photosynthesis - nature s process for carbon management. Algae is a single cell plant made up of lipids, starch and proteins. There are more than 17,000 species of algae. Lab demonstrated >80% CO 2 and NOx capture rate Algae can use low quality water and non-arable land; does not compete with resources needed for food production

36 Stromatolithe made of Cyanobacteria, Shark Bay, Australia

37 WHY MICRO-ALGAE? High productivity per unit area (g/m 2 -day) Harvested daily, reducing inventory and logistics Do not need arable land Do not need potable water Able to de-link food/fuel competition Tremendous natural variability; over 20,000 species Annual Oil Yield Crop liter/ha Corn 120 Soy 440 Safflow er 780 Sunf low er 950 Castor 1400 Rapeseed 1600 Jatropha 1800 Jojoba 1800 Coconut 2700 Palm 6000 Algae 15,000-80,000

38 ALGAE - $5B ANNUAL SALES HIGH VALUE PRODUCTS Not a New Idea

39 Biosphere 1, Tucson, AZ, USA, 2006

40 Earthrise, California, USA

41 Czech Academy of Sciences Trebon, Since 1970 s

42 Gong Bi Microalgae, Taiwan, 2005

43 Dunaliella production at Hutt Lagoon, Australia, 2006 Cognis Nutrition and Health, largest pond 250 ha

44 Cyanotech, Hawaii, USA, Kailua-Kona 09/2006

45 OTHERS HAVE TRIED TO USE ALGAE FOR FUEL Why didn t t it work before? Japan s MITI bioreactor system High capital expenditure High parasitic power Scalability issues Open pond algae system Low productivity Scalability issues No species control

46 GREENFUEL S S TRANSFORMATIONAL TECHNOLOGY Patent pending technology for algal adaptation From $26M NASA project for International Space Station Patent pending field bioreactor design that is: Inexpensive to manufacture Inexpensive to operate Patent pending analytical method to optimally expose algae to sunlight 30+ patents pending; issued or have exclusive rights to; more to follow

47 EMISSIONS TO FUEL Algae to Biodiesel October 2006 Red Hawk Algae converted to ASTM quality Biodiesel and ethanol, first time ever actually achieved. Red Hawk Gen 3: Algae Lab GEN3 System operated from August 2005 thru Nov 2006 using a slip stream of flue gas emissions from the APS Red Hawk Power Plant

48 GEN 3 RESULTS AT RED HAWK GreenFuel GEN3 Algae BioSolar Reactors and System 57 grams/m2-day - ash free (2X best prior power plant emissions feed record) Extrapolated 150 tons/acre-year CO 2 absorption Algae biofuel characterization (dry): Extrapolated annual biofuel production (11,000 gallons/acre): Carbon Volatile Matter Ash Caloric Value Biodiesel Ethanol 36.97% 53.53% 9.5% 9,970 btu/lb 6,000 gallons/acre-year 5,000 gallons/acre-year

49 ALGAE FARM DEVELOPMENT PILOT APS 1,000 MW Red Hawk Power Plant

50 GEN5 DEVELOPMENT R&D by GreenFuel at APS Red Hawk Power Plant.

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52 APS FLEET VEHICLE 07001X Fueled with E2B 20 APS Vehicle 1 st to operate on Power Plant Emission

53 COAL TO SNG PROJECT TEAM

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