Zero Emission Fossil Fuel Power Generation

Transcription

1 Zero Emission Fossil Fuel Power Generation : where are we heading? Nick Otter 27 th November 2007 FORUM ON FOSTERING INVESTMENT IN CLEANER ELECTRICITY PRODUCTION FROM FOSSIL FUELS UNECE Geneva Switzerland POWER

2 Agenda 1st topic Why is the topic so important? 2nd topic What is it all about? 3rd topic What is happening in Europe and elsewhere? 4th topic What is the way forward? UNECE ZEPG OTTER Geneva - 27th November P 2

3 Agenda 1st topic Why is the topic so important? 2nd topic What is it all about? 3rd topic What is happening in Europe and elsewhere? 4th topic What is the way forward? UNECE ZEPG OTTER Geneva - 27th November P 3

4 Market Driver : GDP Growth Increasing demand for electricity GW Installed Base ~ 3% pa World Real GDP ~ 3% pa Trillion 2000 USD '00 '01 '02'03'04' Growth of installed base is ~linked to GDP Age pyramid of world installed capacity 29 % of installed capacity older than 30 years UNECE ZEPG OTTER Geneva - 27th November P 4 61% Old Fleet>30y : 1224 GW Tot. Installed : 4231 GW Others Hydro Nuclear Conventional steam GasPlant (GT & CC) GW 4% 29% 5% 1% Note: 180 GW missing due to unknown commission year,mainly Conventional ST, Hydro & Others Source: Alstom, UDI Age Year % 3% 4% 13% 36% 2% Old Fleet>30y : 1224 GW Tot. Installed : 4231 GW GW China ASIA LAM MEA NAM Europe

5 Market Driver : Geography Successive peaks in fundamentally growing market GW / Y 200 China Asia excl.china Am ericas M EA Europe Order volumes by region Forecast Future growth - importance of developing countries 100 China Boom US Boom Order Year 200 NuclearPlant Future growth - importance of fossil fuels in a balanced mix Hydro Plant Gas Turbine Plant Steam Plant Gas Dominant Coal Dominant Forecast Balanced Mix UNECE ZEPG OTTER Geneva - 27th November P 5

6 Market Driver : Environment Power generation industry: a major contributor to CO 2 emissions million tonnes CO 2 emissions from fossil fuel combustion (reference scenario) x Source: IEA Power Generation Industry Transport Residential & Services Other * Includes agriculture and public sector ** includes international marine bunkers, other transformation and non-energy use UNECE ZEPG OTTER Geneva - 27th November P 6

7 Take away Messages Summary Importance of clean use of fossil fuels, especially coal Importance of accelerating the take-up of clean fossil Importance of addressing regionally and worldwide critical transitional issue for a sustainable energy future an essential part of the portfolio cannot ignore fossil fuels UNECE ZEPG OTTER Geneva - 27th November P 7

8 Agenda 1st topic Why is the topic so important? 2nd topic What is it all about? 3rd topic What is happening in Europe and elsewhere? 4th topic What is the way forward? UNECE ZEPG OTTER Geneva - 27th November P 8

9 Pathway to zero emission power for fossil fuels Carbon Reduction 90% Storage of CO 2 Capture ready concept Zero Emissions Target EOR Framework/Market? Value of CO 2? Policy/Regulation? Geography? High efficiency plant, one key element of zero emission power generation 20% an integrated approach to zero emission Near-term Mid-term Long-term Time UNECE ZEPG OTTER Geneva - 27th November P 9

10 Specific CO 2 -Emissions of Coal Power Plants CO 2 impact of efficiency increase 1400 Spec. CO2-Emissions [g/kwh] Worldwide Average - 35% CO 2 Status of Technology - 42% Advanced Steam Power Plant (700 C) Efficiency [%] UNECE ZEPG OTTER Geneva - 27th November P 10

11 Process Chain of Carbon Capture and Storage Power Plant with CO 2 Capture Pipeline Underground Storage CO 2 CO 2 Storage Options Saline Aquifers Enhanced Oil Recovery UNECE ZEPG OTTER Geneva - 27th November P 11

12 Carbon Capture Technologies Accepted need for a portfolio approach All technologies need to be addressed Retrofit and new plant application Main goal : Cost of CO 2 avoided: < 20 /t CO 2 UNECE ZEPG OTTER Geneva - 27th November P 12

13 CO2 CAPTURE SOLUTIONS Pre Combustion Solution for New Plants: IGCC+Capture Coal gasification Tampa Electric Company, Polk Power Station, 252 MWe, Mulberry, USA (FL) CO2 Capture technology is proven and economical in other industries High Capital and Operating Costs Limited operation flexibility Plant retrofit: not generally possible Landspace 1,5 x PC plant for same MW Hydrogen-fired gas turbines UNECE ZEPG OTTER Geneva - 27th November P 13

14 Going down the Experience Curve for Post Combustion CO2 Capture 3000 ABB Lummus Heat of Reaction (BTU/lb) [kj/kg] , BTU/lb kj/kg Parsons - Study (Fluor) Data of current projects Advanced Amines Chillled Ammonia Process 0 0 Process Optimisation Advanced Amines Process Innovations Process Optimisation CO 2 /T (not including transport and storage) UNECE ZEPG OTTER Geneva - 27th November P 14

15 Development Plan of Chilled Ammonia Process Laboratory Scale First technical hypotheses Main Steps 2 Large Bench Scale (0,25 MWt) Optimize absorber design Establish absorber removal rate Demonstrate limited ammonia emissions 3 Field Pilot Scale (5 MWt) Validate key performance parameters 4 System reliability Demonstration Scale (30-40 MWt) UNECE ZEPG OTTER Geneva - 27th November P 15 5 Integration Utility Scale (+200 MWt)

16 Going Down The Experience Curve for Oxy Combustion CO2 Capture Energy Heat requirements of Reaction [KWh (BTU/lb) / TCO 2 ] ENCAP studies Process Optimisation Large Demos Large ASU Chemical Looping Integration & Process Improvt Scale economy Process Innovation CO 2 /T (not including transport and storage) Advanced Non cryo O 2 production UNECE ZEPG OTTER Geneva - 27th November P 16

17 HEATER OXYGEN Advanced Capture Processes Oxygen Fired CFB O 2 fired CFB Chemical Looping CFB Steam Generator Unit INDUCED DRAFT FAN CO 2 -RICH PRODUCT TO GAS PROCESSING SYSTEM Combustion Gasification CO 2 & H 2 O CaS Depleted Air, Ash, CaSO 4 COAL LIMESTONE COMBUSTOR ASH COOLER Cyclone External Heat Exchanger FLUIDIZING GAS BLOWER BACKPASS HEAT EXCHANGERS AIR INFILTRATION CONDENSATE AIR OXYGEN AIR SEPARATION UNIT Gas Cooler PFWH PARTICULATE REMOVAL SYSTEM GAS RECIRCULATION FAN NITROGEN Coal, Limestone Reducer CaSO 4 Oxidizer Air Calciner CO 2 Chemical Looping Combustion H 2 CaCO 3 CaCO 3 CaO CaS Hot Solid s Cold Solids Chemical Looping Gasification Depleted Air, Ash, CaSO 4 Reducer Coal, Steam CaSO 4 Air Oxidizer UNECE ZEPG OTTER Geneva - 27th November P 17

18 Long term products: Oxy-fired PC, Oxy-fired CFB and Chemical Looping Lab scale tests (500kWt) Oxy-fired PC 2 Demonstration scale tests (30MWt) 3 Utility scale tests (250MWe) 4 Commercialization 1 Pilot scale (3MWt) Oxy-fired CFB 2 Demonstration Scale tests (10-40MWe) 3 Utility scale tests (>150MWe) 4 Commercialization 1 Bench tests ( kwt) Chemical Looping 2 Pilot scale (1-3 MWt) 3 Demonstration scale tests MWe 4 Utility scale MWe 5 Com UNECE ZEPG OTTER Geneva - 27th November P 18 Source : ALSTOM analysis

19 Carbon capture technology comparison 90 Cost of electricity comparison CoE ($ / MWh net) Cost discovery zone 30 SCPC without IGCC without SCPC with IGCC with 1 Capture 2 3 Capture Capture 14 * Ammonia Capture SCPC with Advanced Amine Capture Oxy PC Oxy CFB * Based on a 400 MWnet design, versus 650 Mwnet for other technologies A portfolio of technologies must be validated at large scale UNECE ZEPG OTTER Geneva - 27th November P 19

20 .. multi-pollutant control Integrated APC system based around commercially proven and reliable technologies Uses readily available reagents Produces reusable byproduct(s) Superior cost/performance ratio: Extremely compact design Fewer moving parts reduces maintenance Superior environmental performance Targeted emissions levels: SO 2 : 0.02 lb/mmbtu (> 99.5%) Hg: 1.0 lb/tbtu (> 90%) PM: 0.01 lb/mmbtu (99.99%) NO x : 0.05 lb/mmbtu w/scr Controls SO x, PM 10 /PM 2.5 Mercury & NOx Not just CO 2 UNECE ZEPG OTTER Geneva - 27th November P 20

21 .. overall system performance and reliability Low NOx Systems - LNCFS - TFS 2000 TM - Fuel Switching Transformer Steam Turbine Research and Development - Air Modeling Capabilities - CFD Modeling Air Preheater Mills Burner NOx Retrofits - RSFC - P2 Construction Flue Gas Schematic of Ammonia-based CO2 Capture System Flue Gas Water Exisiting FGD Rich Slurry Lean Slurry CO2 Purge 120F 2 stage Cooling Chiller 35F Wash CO2 Absorber Rich ABC Lean AC HP Pump HX Existing Stack Wash CO2 Regenerator Reboiler Cooling & Cleaning of FG CO2 Absorption CO2 Regeneration CO 2 Capture Environmental Systems - SNCR - FGD - Precipitators - Scrubbers Importance of System Integration : more complex plant UNECE ZEPG OTTER Geneva - 27th November P 21

22 .. preparing the way forward : CO 2 Capture Ready Plant Control system adaptation Optimisation Of the cooling system Recovery of heat in the CO2 capture and compression Optimisation of the Boiler surfaces according Modifications of the heat load sharing Provisions for steam extractions Including provisions for adding stages In the IP cylinder of the steam turbine Provision for auxiliary Power consumption Provisions in arrangement planning Improve gas clean up Or possibility to add cleaning UNECE ZEPG OTTER Geneva - 27th November P 22

23 CO 2 Transport and Storage Key Issues Infrastructure Requirement Cost Reduction Public Acceptance Safe and Effective Storage Developing the Legal, Regulatory & Fiscal Framework Safety and acceptance of CO 2 storage UNECE ZEPG OTTER Geneva - 27th November P 23

24 Agenda 1st topic Why is the topic so important? 2nd topic What is it all about? 3rd topic What is happening in Europe and elsewhere? 4th topic What is the way forward? UNECE ZEPG OTTER Geneva - 27th November P 24

25 ETP ZEP : Set-up and Vision MAJOR EUROPEAN ACT The Vision: To enable European fossil fuel power plants to have zero emission of CO 2 by Primary task to set and implement strategic research agenda (SRA) and deployment document (SDD) as a major European action Advisory Council formed in June 2005, updated June 2007 : individuals represent 6 Generators: E.ON, Endesa, Enel, Energi E2, RWE, Vattenfall 6 Equipment suppliers: Ansaldo, ALSTOM, Air Liquide, Foster Wheeler, Doosan Babcock, Siemens 5 Oil and Gas: BP, Shell, Statoil, Total, Schlumberger 6 Research: BGS, CIRCE, IFP, Polish CMI, GEUS, TU-Hamburg 3 NGOs: Bellona, E3G, WWF 1 Financeer: Morgan Stanley Chair: Kurt Haege/Vattenfall Vice-Chairs: Olivier Appert/IFP, Gardiner Hill/BP, Charles Soothill/ALSTOM, Frederic Hauge/Bellona Formally launched : 1 st December 2005 First General Assembly, Brussels : th December 2006 Second General Assembly, Paris : 3 rd October th October 2007 ZEP Overview OTTER IFP CCS Conference Paris 4 UNECE ZEPG OTTER Geneva - 27th November P 25

26 ETP ZEP : Strategic Recommendations SRA : set a major R&D action to reduce costs and risks of deployment SDD : accelerate the market for efficient zero emission power plant Urgently implemen10-12 integrated large scale CCS demonstration projects EU-wide Establish a robust technology action across whole of CO 2 chain Kick start the CO 2 value chain with urgent short and long term commercial incentives Establish a regulatory framework for storage Gain public support through a comprehensive public information campaign 4th October 2007 ZEP Overview OTTER IFP CCS Conference Paris 7 UNECE ZEPG OTTER Geneva - 27th November P 26

27 Output from EU 2007 Spring Council EU Energy Policy for Europe underlines importance of substantial improvements in generation efficiency and clean fossil fuel technologies urges Member States and EC to work towards strengthening R&D and developing the necessary technical, economic and regulatory framework to bring environmentally safe CCS to deployment with new fossil-fuel power plants, if possible by 2020 welcomes intention of EC to establish a mechanism to stimulate the construction and operation by 2015 of up to 12 demonstration plants of sustainable fossil fuel technologies in commercial power generation." EU Strategic Energy Technology [SET] Plan priority item for Spring 2008 specific reference to CCS as part of plan UNECE ZEPG OTTER Geneva - 27th November P 27

28 ETP ZEP : Scope of the EU Flagship Programme Plant technology Capture technology Type of CO 2 Infrastructure Fuel type Public perception (factors influencing the public acceptance) Geographical location Storage type (aquifers, exhausted petroleum structures, EGR, EOR, CBM/ECBM) Storage geology (cap rock and reservoir Trapping quality, overall mechanism properties, volume etc) (single phase gravitational, dissolution, residual, mineral; over different timescales) Portfolio of up to 12 demonstration plants give sufficient confidence to do CCS at scale UNECE ZEPG OTTER Geneva - 27th November P 28

29 Worldwide Engagement Carbon Sequestration Leadership Forum (CSLF) CSLF Technology Route Map CSLF Project Portfolio CSLF Stakeholder engagement G8 Action Plan Financial Mechanisms/World Bank `Capture Ready` Technology/IEA CCT data base and worldwide case studies Australia Brazil Canada China Colombia Denmark (new) European Commission France (new) Germany (new) India Italy Japan Mexico Netherlands (new) Norway Republic of Korea (new) Russian Federation Saudi Arabia (new) South Africa (new) UK USA Greece (applied) IPCC Special Report on CCS Summary for Policy Makers : issued Sept06 Topic embraced by 2007 IPCC Report : Feb07 Thrust for co-ordination and engagement internationally UNECE ZEPG OTTER Geneva - 27th November P 29

30 Agenda 1st topic Why is the topic so important? 2nd topic What is it all about? 3rd topic What is happening in Europe and elsewhere? 4th topic What is the way forward? UNECE ZEPG OTTER Geneva - 27th November P 30

31 CO 2 2,000 3,000 m H 2 Aquifer Industry oriented actions : large scale demonstration Lighthouse Project of RWE s Climate Strategy: The zero-co 2 power plant coal drying gasification gas conditioning gas and steam CO 2 separation turbines electricity dry coal pit coal Industry getting ready many projects being announced but the right regulatory and fiscal conditions needed A portfolio of technologies must be validated at large scale Acknowledgement to RWE, EON, SSE, NUON, Vattenfall, TOTAL, Statoil UNECE ZEPG OTTER Geneva - 27th November P 31

32 ETP ZEP : Importance of pan-eu infrastructure/storage Flagship projects will find adequate storage options Large lines will carry up to 60Mt/yr Fossil fuel pp Potential Storage Sites Industrial Centers Large lines will be away from cities Oil fields Gas fields Coal fields Safety and regulatory oversight will be paramount Europe s s geography will limit interconnection 4th October 2007 ZEP Overview OTTER IFP CCS Conference Paris 24 UNECE ZEPG OTTER Geneva - 27th November P 32

33 Concluding Remarks Importance of clean use of fossil fuels a critical transitional issue in getting to a sustainable energy future an essential part of the portfolio Importance of accelerating the take-up of clean fossil need for incentives for early action on `zero emission` power plant stable financial and regulatory framework to get many of a kind Importance of addressing issue worldwide use of high efficiency technologies, and.. prepare the way `zero emission` retrofitting of high efficient coal plant with capture to avoid carbon lock-in how to ensure new plant is capture ready use of low carbon technologies for new plant UNECE ZEPG OTTER Geneva - 27th November P 33 Urgent need for action

34 thank you for listening 27 th November 2007 FORUM ON FOSTERING INVESTMENT IN CLEANER ELECTRICITY PRODUCTION FROM FOSSIL FUELS UNECE Geneva Switzerland POWER