Case Study Development Experience with the Mesaba Energy Project: Permitting and Environmental Review

Transcription

1 2006 Gasification Technologies Conference October 2, 2006 JW Marriott Hotel, Washington, DC Case Study Development Experience with the Mesaba Energy Project: Permitting and Environmental Review Bob Evans Vice President, Environmental Affairs, Excelsior Energy Inc. Thomas A. Lynch Principal Project Director, ConocoPhillips

2 Excelsior Energy Inc. Energy development company based in Minnesota Developing Mesaba Energy Project, an IGCC facility Energy, Innovation, and Economic Development for Minnesota Meet significant regional demand for new base load capacity Reduce impacts in Minnesota as a result of lowered criteria pollutant emissions and mercury from project and by expediting IGCC market penetration outside the State National energy independence & stepping stone to hydrogen economy Move to technology capable of managing greenhouse gas emissions Slide 2

3 Project Overview Minnesota enabling legislation entitles project to power purchase agreement, funding and regulatory incentives Recipient of DOE award under CCPI program Participant in PCOR Plains CO2 Reduction Partnership Northeastern Minnesota location 606 MW (net) capacity Fuel flexible design Bituminous/sub-bituminous coal & petcoke Natural gas start-up fuel High efficiency: 9,033 9,500 Btu/kWh heat rate Carbon capture adaptable Slide 3

4 Development Team Technology Provider/EPC ConocoPhillips selected in Spring 2004 Long-term experience of ConocoPhillips personnel Multi-fuel experience Successful demonstration of technology & problem solving Mesaba similar to Wabash River IGCC, with demonstrated improvements in multi-train design Fluor selected for pre-feed engineering in 2005 Siemens power block supplier Environmental: SEH, URS/Barr Legal: Leonard, Street and Deinard, Latham Watkins Financial: Credit Suisse Slide 4

5 E-Gas TM Gasification Feedstock Experience and Gasifier Scale-up 1975 Pilot 36 TPD 1979 Proto TPD 1983 Proto TPD LGTI ,400 TPD Wabash ,600 TPD For 2010 Start-up E-Gas TM Technology Commercial Offerings Bituminous Sub-Bituminous Petcoke Bituminous IL #6 coal Petcoke Multiple refineries. Sub-Bituminous Rochelle Mine Slide 5

6 Wabash River Coal Gasification Repowering Project One of Cleanest Coal/Petcoke Fired Power Plants in the World 1.7 million tons of bituminous coal 1.8+ million tons of petcoke 2,500 TPD bituminous coal feed Operational since 1995 at Cinergy s Wabash River Plant SG Solutions LLC now owns Syngas Plant, ConocoPhillips provides professional services on site Slide 6

7 Technological Improvements Wabash Mesaba Fuel Flexibility Bituminous Petcoke Sub-Bituminous Bituminous Petcoke Blend Quench Configuration Partial Slurry Quench Full Slurry Quench ASU Integration Steam Dilution Nitrogen Dilution CT Air Integration Particulate Matter Removal Dry Char Dry Char w/ Cyclone Plant Configuration Single Train Two Train w/ Spare Availability 80% >90% Environmental Very Clean Lower N0 x, SO x, CO 90-95% Hg Removal Slide 7

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9 Mesaba Energy Project Process Configuration (With Spare Gasification Train) ASU 2X 50% ASU SLURRY PUMP 2 X 50% SLURRY PUMP GASIF / HTHRU 2 X 50% SLAG GASIF / HTHRU HPS EXPORT DRY CHAR 2 X 50% HPS EXPORT DRY CHAR LTHR / AGR 2 X 50% PRODUCT SYNGAS SRU 2X 66% SLAG HPS EXPORT SRU COAL HDLG 2X 100% CONVEYOR SLURRY PUMP GASIF / HTHRU DRY CHAR LTHR / AGR SULFUR 3 rd 50% train SLAG Adds 5% to seasonal availability or ROD MILL 2 X 70% 10% to annual availability ROD MILL Slide 9

10 Mesaba One & Mesaba Two Slide 10

11 Project Chronology Site selection process started in 2003 Submitted CCPI proposal June 2004 Recipient of DOE CCPI award Notified October 2004 Cooperative agreement signed in 2005 Sites narrowed to two locations in 2005 Requests submitted to PUC PPA: December 2005 Joint Permit Application: June 2006 Joint Permit Application accepted as complete: July 28, 2006 Permit applications submitted Air, NPDES: MPCA June 2006 Water Appropriation: DNR June 2006 Wetlands: ACOE October 2006 Slide 11

12 Environmental Review & Beyond State & Federal Processes require preparation of EIS Joint EIS between DOE and MN Dept. of Commerce EIS Scoping meetings conducted October 2005 & August 2006 Draft EIS: February 2007 Final EIS: June 2007 EIS Approved/Licenses issued: September 2007 Permits issued: Q Financial close Q Slide 12

13 Informational Meetings Purpose Community leaders Neighbors Jurisdictional Agencies Technical presentations Numerous updates Slide 13

14 IGGC s s Strength: Superior Environmental Performance Slide 14

15 Permitting Matters Air-related BACT Analysis Why not Selexol TM /SCR? Class I visibility impacts Methods over predict in cold, humid climates Visibility metric defined in terms of line of sight Health-related concerns Limited information on hazardous air pollutant (HAP) emissions from IGCC available Skepticism regarding HAP emission levels NPDES program restriction on new discharges to impaired waters Slide 15

16 Mesaba Energy Project Emissions vs. Others Emission Rate (lb/mmbtu) SO2 NOX PM10 CO Mesaba One Taylorville Desert Rock South Heart Slide 16

17 Project s Proximity to Class I Areas Slide 17

18 Communication of Ambient Impacts Difficult to convey the conservatism of study methodology to the public and the minimal impacts of IGCC s impacts Comparisons utilized Radon exposure Chlorination of drinking water Ambient air Level of local concern illustrates importance of selecting a technology that minimizes impacts Slide 18

19 Climate Change Project has strategy Geological sequestration Scenarios dependent upon evolution of carbon markets & price of oil Participant in Plains CO2 Reduction Partnership (regional DOE sequestration partnership) Conceptual sequestration plan developed in Phase I is being expanded upon in Phase II Slide 19

20 Conclusions IGCC s superior environmental performance mitigates permitting risks Minimizes all impacts compared to conventional coal Regulators understand and support technology; local residents trust permitting authorities NGOs understand importance of IGCC to achieving their long range goals Rush to lowest achievable emission rates before learning curve reduces costs will interfere with implementation of IGCC technology throughout U.S. Mesaba Energy Project is a critical component to rapid market deployment of IGCC technology Slide 20

21 About Excelsior Energy Excelsior Energy is a competitive power development company dedicated to bringing the benefits of IGCC power generation to Minnesota and the Midwest. Excelsior believes that IGCC is a critical component to a comprehensive national energy independence and environmental protection strategy. IGCC is a clean bridge to the large gap in power generation resources that remains when even the most comprehensive and renewables and conservation efforts are implemented and large amounts of natural gasfired generation are included in the mix. Excelsior s leadership team consists of twelve seasoned power industry executives who have developed, permitted, financed, constructed and operated innovative and technology-intensive power plants around the world. Excelsior brings the know-how, creativity and tenacity required to overcome the barriers to providing market-based solutions to our national energy policy challenges. For more information, please visit Excelsior s website at: Slide 21