Roadmapping Coal s Future ZERO EMISSIONS TECHNOLOGIES FOR FOSSIL FUELS

Transcription

1 INTERNATIONAL ENERGY AGENCY WORKING PARTY ON FOSSIL FUELS COAL INDUSTRY ADVISORY BOARD Roadmapping Coal s Future ZERO EMISSIONS TECHNOLOGIES FOR FOSSIL FUELS

2 INTERNATIONAL ENERGY AGENCY WORKING PARTY ON FOSSIL FUELS COAL INDUSTRY ADVISORY BOARD Roadmapping Coal s Future ZERO EMISSIONS TECHNOLOGIES FOR FOSSIL FUELS

3 INTERNATIONAL ENERGY AGENCY 9, rue de la Fédération, Paris Cedex 15, France The International Energy Agency (IEA) is an autonomous body which was established in November 1974 within the framework of the Organisation for Economic Co-operation and Development (OECD) to implement an international energy programme. It carries out a comprehensive programme of energy co-operation among twenty-six* of the OECD s thirty member countries. The basic aims of the IEA are: to maintain and improve systems for coping with oil supply disruptions; to promote rational energy policies in a global context through co-operative relations with nonmember countries, industry and international organisations; to operate a permanent information system on the international oil market; to improve the world s energy supply and demand structure by developing alternative energy sources and increasing the efficiency of energy use; to assist in the integration of environmental and energy policies. * IEA member countries: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, the Republic of Korea, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom, the United States. The European Commission also takes part in the work of the IEA. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: to achieve the highest sustainable economic growth and employment and a rising standard of living in member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; to contribute to sound economic expansion in member as well as non-member countries in the process of economic development; and to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. The original member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries became members subsequently through accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland (22nd November 1996), the Republic of Korea (12th December 1996) and Slovakia (28th September 2000). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention). OECD/IEA, 2005 Applications for permission to reproduce or translate all or part of this publication should be made to: Head of Publications Service, OECD/IEA 2, rue André-Pascal, Paris Cedex 16, France or 9, rue de la Fédération, Paris Cedex 15, France.

4 ROADMAPPING COAL S FUTURE - 3 INTRODUCTION Worldwide, the use of coal as an energy source remains crucial to the economies of many developed and developing countries. Particularly with the latter, as industrialisation and urbanisation spread and national energy requirements soar, coal looks set to retain its position as a secure, reliable source of energy, particularly for the generation of electricity. Coal-fired power generation accounts for 39% of the world s total electricity production and in some countries, such as the USA, Germany, Poland, Australia, South Africa, China and India, it is very much higher due to its cost competitiveness. While use in some European countries remains static or is in decline, significant increases in coalfired generation capacity are taking place in many of the developing nations, such as China and India, where large capacity increases are planned to make use of abundant coal reserves far more abundant than oil and gas reserves. Coal-fired power plants have a long working life and, with the extensive investments being made in many parts of the world, coal is likely to remain an important source of energy well into this century. In many countries, policies to increase the diversity of energy supplies are being promoted to improve security within truly competitive energy markets. In this respect, coal has an important role to play providing coal users are able to respond positively to the environmental challenges associated with the use of fossil fuels. Climate change is an issue of global proportion. There is a body of evidence and increasing acceptance that a number of greenhouse gases are responsible for the global warming that leads to this change, the most significant contributor being carbon dioxide (CO 2 ) produced by the burning of fossil fuels. The latter provide a large proportion (around 80%) of the world s energy needs and will continue to do so for the foreseeable future (Figure1). To ensure that substantial reductions in atmospheric CO 2 emissions can be made during the present century and beyond, widespread deployment of technological solutions will be required. The International Energy Agency 1 (IEA) is playing a major role in addressing this subject. Recognising the potential of CO 2 capture and storage technologies, the IEA s Working Party on Fossil Fuels 2 (WPFF) launched its strategy for Zero Emissions Technologies (ZETs) in With this concept, almost all conventional pollutants produced by the burning of fossil fuels will be eliminated and used in by-products or, in the case of CO 2, captured and stored in geological formations, thus preventing its emission to atmosphere. 1 Further details on the IEA s activities can be obtained at 2 The IEA s WPFF can be contacted via its Chair: Barbara.McKee@hq.doe.gov

5 4 - ROADMAPPING COAL S FUTURE The IEA Coal Industry Advisory Board 3 (CIAB) has prepared this brochure on technology roadmapping to complement a series of earlier WPFF/IEA brochures 4 that examine various aspects of its ZETs strategy. This brochure focuses on the technology pathways leading to ZETs based on clean coal technologies (CCTs) a significant, but feasible, leap forward that demands a co-ordinated response by industry and governments. Figure 1 World primary energy demand 5 Mtoe 7,000 6,000 5,000 4,000 3,000 2,000 1, coal oil gas nuclear hydro other 7% 21% 11% 2% 23% 36% 11% 2% 5% 25% 22% 35% The CIAB website ( contains useful publications on coal-related matters 4 All seven public information brochures are available to download from the publications section of (click on Browse all IEA papers by year and subject, then select Clean Fossil Fuels in the subject search and 2003 in the year search) 5 World Energy Outlook 2004, Paris: International Energy Agency, 2004

6 ROADMAPPING COAL S FUTURE - 5 CHALLENGES AHEAD Although coal remains hugely important for the economies of many countries, a major challenge is to reduce its environmental impact. Effective methods already exist for the control of some pollutants such as sulphur and nitrogen oxides (SO 2 and NOx) and particulates, but, despite dramatic improvements made during the past decade, there remains continued pressure to reduce emissions still further. In the future, there will be growing pressure to reduce emissions of carbon dioxide (CO 2 ). There is much concern about the quantities of CO 2 emitted from fossil fuel-burning power plants for electricity production. Indeed, these are responsible for around onethird of total global emissions of CO 2 and are candidates for the application of emerging CO 2 capture and storage techniques. Although, with a very few exceptions, such control techniques have not yet been adopted, the technological solutions exist that could be adapted and applied for reducing CO 2 emissions from coal-fired power plant. One significant challenge is large-scale application at an affordable cost. Identifying appropriate power technologies and effective monitoring of the stored CO 2 constitute additional challenges. Moreover, a specific legal framework has to be created and market rules established that would allow CO 2 abatement costs to be recovered. As electricity demand continues to rise, developing and developed countries alike can be expected to continue using their abundant coal reserves; if action is not taken, CO 2 levels will rise. The eventual goal must be to achieve the deployment of energy technologies that produce little or no emissions. It is widely accepted that no single technology will be capable of maintaining a secure, cost effective energy supply in IEA countries, and providing a greater share of the world s population with access to modern energy services, while making a substantial reduction in GHG emissions. The energy systems of tomorrow will rely on a mix of advanced, clean, efficient technologies for energy supply and use. Energy efficiency demands further effort and the use of renewable energy will grow substantially from its small base; but, to meet the predicted increase in global energy demand, whilst reducing emissions, will also require a concerted effort to limit CO 2 emissions from fossil fuel use. Coal will continue to play a major role in energy supply over the coming decades, with strong growth in developing countries. In order to reduce its environmental impact, development and application of Clean Coal Technologies (CCTs), designed to minimise the emissions of various undesirable species from coal-fired power plants, should continue. Further development of CCTs will lead to a number of technology options (so-called Zero or Near-zero Emissions Technologies ZETs) that emit very low levels of all emissions.

7 6 - ROADMAPPING COAL S FUTURE RD&D PLANNING WITH TECHNOLOGY ROADMAPS The environmental challenges, coupled with concerns about the future security of energy supplies, have stimulated renewed interest in development programmes for CCTs. In major coal-producing and coal-using countries, efforts have been made to consider how these CCTs can be used as bridging technologies, leading to ZETs-based plants that produce virtually no undesirable emissions by This brochure presents an overview of the technical assessment and planning work that is being undertaken by key organisations in these countries, all of whom have the common aim of seeing ZETs developed and deployed using coal. The brochure draws heavily on a review 6 of this work by the IEA Clean Coal Centre 7, often known as technology roadmapping. As part of the process leading to the deployment of ZETs, many pathways are being reviewed to identify the most appropriate technology strategies and the underpinning research, development and demonstration (RD&D) needs. These forms of assessment are commonly termed Clean Coal Technology Roadmaps and are intended to describe the measures necessary to realise the different technologies, having regard to policy aims and market needs. Recently, a number of such roadmaps have been prepared, based on a variety of candidate technologies some based on progressive improvements to conventional power generation systems, and others on more advanced concepts. An example roadmap is outlined in the Annex to this brochure. COMMON MESSAGES FROM THE TECHNOLOGY ROADMAPS All technology roadmapping exercises begin by examining what needs to be done what are the external drivers and do these result in clear technology performance targets. Next, the current situation or the starting point must be understood since this may impose constraints on the final step which is the definition of technology pathways. Using this final step, a programme of RD&D work can be initiated to achieve the technology performance targets. 6 Henderson, C., Clean Coal Technologies Roadmaps, report no. CCC/75, London: IEA Clean Coal Centre, October Further details on the IEA Clean Coal Centre can be obtained at

8 ROADMAPPING COAL S FUTURE - 7 What needs to be done? Within the power generation sector, natural gas remains coal s main competitor in regions where gas is available and natural gas combined cycle (NGCC) plants offer certain environmental benefits, notably half the CO 2 emissions at the point of use; although supply chain emissions, particularly where liquefied natural gas (LNG) is used, complicates this simplistic comparison. Yet, bringing more distant reserves of gas to market is proving expensive. So, despite its environmental challenges, coal often has a substantial cost advantage which translates into lower power prices and hence a higher standard of living and social development in many coal-using countries. Nevertheless, if coal-fired systems are to be improved, then NGCC performance will remain one of a number of benchmarks for comparison. Table 1 Emissions and possible targets for selected coal-fired power generation technologies Technology Pulverised Coal Combustion (PCC) with Flue Gas Desulphurisation (FGD) SO 2 emissions (% removal) NOx emissions (as NO 2, mg/m 3 ) Particulates (mg/m 3 ) (SCR) Circulating Fluidised Bed Combustion (CFBC) Integrated Gasification Combined Cycle (IGCC) < < <125 <1 PCC target for ZETs <125 <10 IGCC target for ZETs 99 <25 <1 Natural Gas Combined Cycle (NGCC) n/a <30 (SCR) In the case of SO 2, emissions from gas-fired systems are generally negligible, therefore levels produced from coal-fired equivalents will need to be reduced effectively to zero. Already, both PCC (pulverised coal combustion) and IGCC (integrated gasification combined cycle) plants can be configured for very low emissions of SO 2 (see Table 1). For NOx emissions, again, coal will need to reduce levels to be comparable with NGCC. At present, the application of selective catalytic reduction (SCR) to coal-fired plant can produce NOx levels similar to those from gas-fired plant, and coal-fired systems based on IGCC technology promise even better performance. NGCC systems produce only very fine, aerosol particulates with no dust; it will be important for pollution control technologies to follow the downward trend achieved at coal-fired plant in recent years.

9 8 - ROADMAPPING COAL S FUTURE Of increasing importance will be the control and minimisation of CO 2 from all sources, including coal which accounted for 38% of CO 2 emissions from fossil fuel combustion in Indications are that removal rates of 80 90% should be feasible from new coal-fired plants and these are regarded as target levels for near-zero emissions plant based on both PCC and IGCC technologies. It will be important to achieve these goals, and to tackle CO 2 emissions from both oil and gas use as well, if atmospheric CO 2 concentrations are to be stabilised. In this respect, technologies to capture and store CO 2 are as applicable to future gas-fired plants as they are to coal-fired plants. Achieving lower emissions will add to the cost of energy supply. How this cost is recovered remains uncertain, but ultimately consumers should expect to pay more for their energy needs. The starting point The starting point for ZETs technologies is current state-of-the-art clean coal technologies 8. There are many to choose from, some based on combustion and others on gasification of coal. The most relevant in meeting short- to medium-term needs are: supercritical pulverised coal combustion (PCC); circulating fluidised bed combustion (CFBC); and, integrated gasification combined cycles (IGCC). At present, the candidates most likely to provide the basis for ZETs technologies are supercritical PCC and IGCC. With the latter, there may be opportunities for combining the technology with fuel cells. In Japan, the EAGLE integrated gasification combined cycle fuel cell (IGFC) project is testing this concept. An 8 MWe pilot plant is now in operation at Wakamatsu, based around an oxygen-blown, two-stage, entrained-flow gasifier. The goal of this long-term, development project is to generate electricity in a solid oxide fuel cell fed with hydrogen from the coal gasifier. 8 For an in-depth review of CCTs, see: Henderson, C.; Clean Coal Technologies, report no. CCC/74, London: IEA Clean Coal Centre, October 2003

10 ROADMAPPING COAL S FUTURE - 9 Figure 2 View of the Japanese EAGLE pilot plant GASIFIER AIR SEPARATION UNIT SULPHUR RECOVERY GAS CLEAN-UP These state-of-the-art technologies can be adapted to enable the capture of CO 2 and so prevent its release to atmosphere. In some instances, well-developed processes can be used; in other cases, further development is needed before CO 2 capture could be incorporated into new power plant projects. Once captured, the CO 2 must be transported and stored. A growing number of reference projects in the oil and gas industry suggest that these are already becoming accepted practices. Technology pathways Having established that ZETs may have an important role in the coming years, what will be the best route forward in achieving their successful deployment? In practice, no single system will be capable of meeting all future requirements, hence a portfolio of technologies will be necessary. By not concentrating on a single candidate technology, the associated technological risks can be minimised, and of equal importance, possible routes forward can be tailored to meet the different situations prevailing in different parts of the world; the structure of electricity generation sectors and future national power demands are likely to vary significantly between countries and regions. So, there are likely to be several possible routes forward towards the adoption of ZETs, with some variants being more applicable to the industrialised nations and others focused more on developing countries. With the clear need for more than one candidate ZET, there is a corresponding number of possible routes forward, some based on PCC and others on IGCC. In both cases, there are likely to be some distinct steps in taking forward today s coal-based systems to achieve zero emissions. For systems based on PCC, the pathways shown in Figure 3 can be envisaged.

11 10 - ROADMAPPING COAL S FUTURE Figure 3 PCC-based ZETs pathway now on increasing efficiency, lower emissions, lower costs Mercury activities: characterisation monitoring removal methods Advanced Ultra Supercritical PCC demo non-co 2 capture Advanced Ultra Supercritical PCC commercial non-co 2 capture Supercritical PCC ~45% efficiency (LHV) SO 2 activities: deeper removal new systems NOx activities: deeper removal without SCR Particulates removal: move to <10mg/m 3 Advanced PCC-based ZETs first commercial retrofits and new plants Advanced PCC-based ZETs CO 2 capture activities: chemical scrubbing demo CO 2 capture activities: pressure swing adsorption membranes oxy-coal demo Ion Transfer Membrane Oxygen Plants commercial CO 2 capture from plant flue gases may be based on one of the technologies under development or currently in use within industry. Inevitably, CO 2 capture imposes additional costs and an energy penalty on the plant, so the most likely candidates for future use will be those whose impact on plant economics and efficiency has been minimised. In the shorter term, the most promising capture technology may be based on systems that scrub CO 2 from plant flue gases using amine solutions. Such systems are already used within some industrial sectors, although they were not developed specifically for treating the mix of gases that characterise the exhaust or flue gas from coal-fired power plants. However, the potential to retrofit such systems to the large number of existing coal-fired units justifies the significant development effort needed before this can be viewed as a viable option. Commercial developments, currently taking place, are aimed at increasing PCC plant efficiency above current, state-of-the-art levels, hence the impact of fitting a CO 2 capture system to new plant would be less than retrofits to existing units. In the medium term, alternative systems, such as those using membranes to separate CO 2 from flue gas, could be developed and deployed. The outcome of RD&D programmes over the next few years will determine which options can be developed and refined to be most economic. The other main possibility for ZETs-based PCC is where coal combustion takes place in an atmosphere comprising recycled flue gas mixed with oxygen (oxy-coal combustion). With conventional, PCC-based systems, the flue gas contains only a relatively low concentration of CO 2 ; however, with oxy-coal, a more concentrated stream of CO 2 is

12 ROADMAPPING COAL S FUTURE - 11 produced, easing its capture. Although the overall thermal efficiency could be higher than that of more conventional plants with CO 2 scrubbed from the flue gas, there would still be an efficiency penalty as production of the necessary oxygen consumes a considerable amount of energy. Further development of the technique is required and efforts are under way, notably in Canada, Australia and Europe again demonstrating the need for early RD&D to provide economic options for the future. With regard to other emissions from PCC-based plant, equipment is available to routinely achieve low levels of particulates and SO 2, and low levels of NOx are achievable via several routes. In recent years, concern over mercury emissions has increased to the extent that there is a move in the USA to reduce emissions by 70% before The impact of this challenge on coal-fired generation is uncertain, but removal technologies are being developed and, in any event, mercury emissions fall substantially with the application of conventional pollution control techniques such as flue gas desulphurisation (FGD). Moving on to examine ZETs systems based on IGCC technology, Figure 4 illustrates some key steps. Figure 4 GCC-based ZETs pathway now on increasing efficiency, lower emissions, lower costs IGCC Power Plants commercial non-co 2 capture Integrated Gasification Combined Cycle (IGCC) commercial-scale demonstrations Hot gas clean-up activities: particulates sulphur mercury NOx activities: reduce emissions CO 2 capture activities: chemical scrubbing demo IGCC-based ZETs early, full-scale power plants Advanced IGCC-based ZETs commercial plants various technologies multi-products CO 2 capture activities: pressure swing adsorption membranes Ion Transfer Membrane Oxygen Plants commercial As with PCC systems, there are a number of different variants of the technology, some based on a dry coal feed and others on a wet feed of coal-water slurry. There are three generic types of gasifier that could be applied (entrained flow, moving bed and fixed bed) all of which have different operating characteristics. Such IGCC systems are

13 12 - ROADMAPPING COAL S FUTURE acknowledged widely as having a lower environmental impact than combustion-based electricity generation technologies and this will influence future strategies formulated to ensure that coal-fired plant remains environmentally acceptable and commercially viable in the coming years. Nevertheless, there are far fewer IGCC plants operating today than PCC units, as the technology is perceived to be expensive, complex and relatively unproven. By their very nature, some first-generation IGCC demonstration plants were costly and complex, although the next generation should see significant improvements in this respect. In fact, a number of IGCC plants are now operating with a high degree of reliability and experience gained with these will help to provide a firm foundation for IGCC-based ZETs which offer a number of potential advantages: CO 2 capture imposes a lower energy penalty than for capture from PCC plant, since the CO 2 content of the pre-combustion, syngas stream is greater and hence more easily captured than from a flue gas. The CO 2 can be captured at a pressure suitable for pipeline transport, hence reducing CO 2 compression costs. A sequestration ready IGCC plant can be constructed today and CO 2 capture added at a later date, thus offering a valuable option to developers and investors faced with uncertain CO 2 emission costs. Straightforward, chemical processing of the syngas, coupled with CO 2 capture, yields hydrogen suitable for combustion in gas turbines, direct conversion to electricity in fuel cells or other uses, such as transport. Developments in gas turbine technology will boost efficiency levels and fuel cells offer the prospect of even higher efficiencies. Very low levels of SO 2 emissions can already be achieved and NOx levels are comparable to those of natural gas fired combined cycles. Solid wastes produced are usually in a vitrified, inert form, thus easing their disposal. There are a number of developments that have the potential to increase the efficiency and attractiveness of IGCC providing they are supported under RD&D programmes. These include the successful application of systems to remove particulates and other species from the syngas whilst still hot, and the deployment of a new, advanced method for generating oxygen (ion transport membrane technology ITM). The latter has the potential to generate oxygen more cheaply than current processes, hence it could find application in a number of power generation cycles. In a further development of IGCC systems, there may be the possibility of the simultaneous removal of CO 2 with the hydrogen sulphide (H 2 S) present in syngas. These gases could then be co-disposed of in a single step. This technique is presently being carried out commercially in North America where so-called acid gas injection is being employed as an aid to recovering oil from mature fields. Such co-disposal offers the potential of lowering the costs of CO 2 capture.

14 ROADMAPPING COAL S FUTURE - 13 Worldwide, as efforts gather pace to reduce emissions of CO 2 and other species from coal-fired plant, there is increasing interest in the use of hydrogen as an energy carrier. IGCC has the potential for co-producing electricity with other products such as hydrogen, chemicals and liquid fuels. For example, in the USA, the FutureGen project is a major $1billion, 10-year, US Department of Energy initiative that aims to demonstrate a near-zero emissions 275 MWe coal-fuelled IGCC that incorporates hydrogen production and CO 2 separation followed by geological sequestration. This prototype plant will serve as an engineering laboratory for the development of clean power, carbon capture, and coal-tohydrogen technologies. Operations are expected to commence in 2011 with the plant producing one million tonnes of CO 2 each year. It will be required to achieve a level of at least 90% CO 2 abatement, with the potential for levels approaching 100%. ECONOMIC CONSIDERATIONS Moving from existing technologies to ZETs equivalents that incorporate a CO 2 capture stage, will clearly have major cost implications for systems developed from either PCC or IGCC. It has been estimated that for the former, plant capital costs would be 56 82% greater than current systems, and for the latter, some 27 50% higher 9. A large proportion of the increased capital costs are associated with the capture of CO 2. Future technological advances will play an important role in the economics of a particular system, and there remains potential for considerable cost reductions to be made for more advanced forms of PCC- and IGCC-based technologies coupled with a range of candidate capture technologies. At present, comparisons of the efficiency penalty associated with the different ZETs systems suggests that IGCC is ahead, although the economics of future (ultra supercritical) PCC cycles with CO 2 capture are not yet clear. 9 Henderson, C. and Topper, J. M., Clean coal technologies and the path to zero emissions, 7th International Conference on Greenhouse Gas Control Technologies, 5-9 September 2004, Vancouver, BC, Canada; University of Regina, Natural Resources Canada, IEA Greenhouse Gas R&D Programme, 2004

15 14 - ROADMAPPING COAL S FUTURE In the USA, where considerable progress is being made on the development of ZETs, ambitious cost targets have been set for power systems with CO 2 capture and storage: CO 2 abatement cost <$10/tCO 2 (compared to current estimates of over $30/tCO 2 ) 10. <10% increase in cost of electricity for >90% removal of CO 2 by Carbon-free hydrogen production from coal at a cost of $3 5/10 6 Btu ($ /GJ or $ /kg) after CONCLUDING REMARKS Fossil fuels will remain the main pillar of the world s energy supply for decades to come. Over this same period, CO 2 constraints are likely to become an ever greater feature of energy policies. ZETs are the only option available today that have the potential to respond to these imperatives in a material way. The roadmapping process, outlined in this brochure, shows how these technologies might be introduced. In regions with the most stringent environmental controls, where fuel costs are expected to be high, and with competitive electricity markets, IGCC appears to be an attractive proposition. However, zero-emissions plant based on PCC technology will be of greater importance in retrofit situations, where existing plants could be upgraded simultaneously with the installation of a CO 2 capture system, as well as in the economies of major developing nations, where electricity demand is expected to continue growing at a significant rate. Hydrogen is considered to have the potential to provide clean energy at the point of use, although there are many technical and economic challenges to be overcome before it becomes a practical link in the energy supply chain. Fossil fuels, notably coal and natural gas, coupled with CO 2 capture and storage, could provide the transitional pathway to the longer-term objective of a hydrogen economy based on renewable energy. In the drive towards the development and deployment of coal-fired plants that emit virtually no unwanted emissions (using Zero or Near-zero Emissions Technologies ZETs), it is clear that several strategies must be pursued: Coal-fired systems based on both pulverised coal combustion (PCC) and integrated gasification combined cycles (IGCC) will need to be included in a comprehensive ZETs response to reducing CO 2 emissions. 10 National Energy Technology Laboratory, Carbon Sequestration Technology Roadmap and Program Plan, Office of Fossil Energy, US Department of Energy, March 12, DOE-CURC-EPRI Clean Coal Technology Roadmap, US Department of Energy, Coal Utilization Research Council and Electric Power Research Institute, January ibid. and Hydrogen Co-ordination Group, Hydrogen Program Plan hydrogen from natural gas and coal: the road to a sustainable energy future, Office of Fossil Energy, US Department of Energy, June 2003

16 ROADMAPPING COAL S FUTURE - 15 ZETs based on PCC may be of particular importance in countries such as China and India, that have large and growing fleets of PCC-based power generation plant. ZETs systems based on IGCC technology have the advantage of capturing CO 2 before combustion takes place, resulting in a smaller efficiency penalty and the potential to supply large volumes of hydrogen. Efficiency improvements, through improved gas turbine designs and the use of fuel cells, can be expected in the future. Potentially, PCC-based ZETs could close the gap with IGCC-based systems if the advanced steam conditions, currently under development, were employed. Only with effective RD&D programmes, over the next few years, will it be possible for these strategic options to be developed and refined to the point where they can be adopted commercially as part of the solution to global warming and climate change.

17 16 - ROADMAPPING COAL S FUTURE ANNEX EXAMPLES OF CLEAN COAL TECHNOLOGY ROADMAPS Many countries that host coal-related industries mining, power generation, steel production recognise that coal has a major role to play in their future and are planning accordingly. Programmes have been formulated to provide a framework for future developments, especially in the case of coal-fired power generation, with detailed technology roadmaps appearing in Australia, Canada, the European Union, Germany, Japan, the UK and the USA, as listed below. By way of example, a description of a RD&D roadmapping exercise in Australia follows. Table 2 Organisations around the world engaged in technology roadmapping Australia Canada Australian Coal Association COAL21 Cooperative Research Centre for Greenhouse Gas CO2CRC Technologies Canadian Clean Power Coalition Natural Resources Canada CANMET Energy Technology Centre CCPC CO 2 TRM European Union European Commission Sixth Framework Programme PowerClean Germany Federal Ministry of Economics and Labour COORETEC Japan United Kingdom Center for Coal Utilization New Energy and Industrial Technology Development Organization (NEDO) / Electric Power Development Co Ltd (EPDC) Department of Trade and Industry Advanced Power Generation Technology Forum CCT strategy EAGLE CAT strategy APGTF vision USA Office of Fossil Energy, Department of Energy (DOE) Federal Energy Technology Center, National Energy Technology Laboratory Coal Utilization Research Council / Electric Power Research Institute / DOE FutureGen Vision21 CCT roadmap International Carbon Sequestration Leadership Forum IEA Clean Coal Centre CSLF topical reports

18 ROADMAPPING COAL S FUTURE - 17 Carbon Dioxide Capture and Storage: Research, Development and Demonstration in Australia a technology roadmap 13 Background As part of the growing effort to control global CO 2 emissions, Australia is committed to limiting CO 2 emissions to 108% of 1990 levels by However, the country s economic prosperity relies heavily on the continued use of its abundant reserves of fossil fuels. Encouragingly, half of Australia s CO 2 emissions come from stationary sources, and so have the potential to be captured and stored. Amongst the sources considered sequesterable, power stations are the most significant, with smaller contributions from the petroleum industry, oil refineries, the steel industry, non-ferrous metal refining, and other industrial processes. Of the CO 2 produced by power stations, the vast majority emanates from brown and black coal-fired plants. Figure 5 Sources of CO 2 from power stations in Australia oil 1.4% gas 6.1% brown coal 32.0% black coal 60.5% Australia s future energy needs suggest that emissions of CO 2 from stationary sources will rise significantly during the next twenty years and beyond. The greater use of fossil fuels, particularly coal and natural gas, is inevitable. Whilst renewable energy technologies will meet part of the increased demand, fossil fuels will remain essential if demand is to be met in full. In view of this, a range of measures will be needed to enable Australia to attain its emission targets: increased energy efficiency, decreased carbon intensity, and development and application of CO 2 sequestration techniques. Of the latter, CO 2 capture followed by geological storage is considered to be a promising and materially significant option. 13 Carbon Dioxide Capture & Storage: research development and demonstration in Australia a technology roadmap, September 2004 update, publication no. 2004/008, Canberra: Cooperative Research Centre for Greenhouse Gas Technologies, September 2004 (

19 18 - ROADMAPPING COAL S FUTURE The adoption of such measures opens up the possibility of integrating capture and storage systems with advanced energy systems such as IGCC and oxyfuel-based power generation, alongside syngas and hydrogen production. In fact, advanced fossil fuelbased energy systems, coupled with CO 2 capture and storage, could provide a pathway to the hydrogen economy and, based on current estimates, this appears to be the most cost-effective way forward. With this in mind, the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) has addressed the role of CO 2 capture and storage technologies via a multi-level roadmapping process that leads from the acceptance and application of the technologies for low emission electricity generation from fossil fuels to the wide-scale production of hydrogen initially from fossil fuels with CO 2 capture and storage, but ultimately from renewable sources. CO2CRC roadmapping exercise The process was taken forward through the formulation and definition of a technology roadmap, specific to Australia. This is structured on the following basis: Level 0 Level 1 Level 2 Level 3 Develop Skills and Knowledge an assessment of preliminary activities over the previous five years that had contributed to the development of technical capability and knowledge. This provided the foundation for Level 1. R&D a detailed roadmap aimed at defining R&D and technology directions for the next 5 10 years. It required detailed technology assessments and gap analysis for R&D related to CO 2 capture, storage and utilisation. Demonstration/Application incorporates broad assessments of potential demonstration and application opportunities through pilotscale RD&D projects, medium-scale demonstration projects, and largescale commercial projects offering R&D opportunities over the next years. Advanced Systems development of a 20- to 30-year roadmap towards the hydrogen economy, stressing, in particular, the key role of CO 2 capture and storage. It assumes that such an economy would initially be fossil fuel based, but with the longer-term objective of moving to renewable energy.

20 ROADMAPPING COAL S FUTURE - 19 Figure 6 An emission-free vision for the future A focal point for CO 2 capture and storage RD&D in Australia The technology roadmapping exercise proved to be a valuable exercise for Australian research organisations, industry and government alike. It proved useful in identifying technology gaps and priorities, identifying expertise, strengthening national research, development and demonstration (RD&D) collaboration, enhancing opportunities for international R&D co-operation, and defining an Australian strategy for carbon sequestration technologies. In the lead-up to the hydrogen economy, the country possesses significant natural advantages in terms of abundant fossil fuel reserves and a massive CO 2 storage capacity. However, much of the technological development and most of the market-pull will come from the larger OECD countries, in particular, the USA. Therefore, Australia needs to position itself to work closely with other countries in the development of zero emissions technologies. Indeed, the findings of the exercise suggest strongly that it will only be through intense co-operative action at the national and international level that progress will be made towards undertaking essential R&D, developing new technological options, and implementing new carbon sequestration technologies on the enormous scale required to have a significant impact on the levels of CO 2 being emitted to the atmosphere. The CO2CRC technology roadmap has been instrumental in identifying and highlighting present and future challenges alongside the opportunities and possible

21 20 - ROADMAPPING COAL S FUTURE routes forward. It helped provide the Australian Government with enough clarity and confidence to launch a A$1.5billion programme in 2004 that will stimulate the drive towards a cleaner future based on a variety of viable, large-scale technologies. Figure 7 Commercial and research projects leading towards the hydrogen economy (Level 3 technology roadmap) In Salah (Algeria), Snohvit (Norway) and Gorgon (Australia) are commercial, natural gas exploitation projects where the in-situ gas contains high concentrations of CO 2. For environmental reasons, re-injection of this CO 2 underground is seen as a pre-requisite for all these projects. The experience gained with CO 2 storage through these projects will be very beneficial to future gas-to-liquid (GTL) projects that exploit remote gas reserves and also to subsequent coalbased power generation projects with CO 2 capture as proposed, for example, by the US Department of Energy in the case of its FutureGen project. Together, these commercial projects offer a pathway towards the hydrogen economy where large supplies of hydrogen come, firstly, from fossil fuel sources and, ultimately, from renewable energy sources. A variety of underpinning research projects will be required to ensure commercial projects benefit, both technically and economically, from emerging technologies and refinements to existing technologies. For example, further work is needed to understand the CO 2 storage potential of enhanced oil recovery (EOR) and, in the case of enhance coalbed methane (CBM) gas production, considerable uncertainties remain to be resolved.

22 The IEA is an autonomous body that implements an international energy programme and co-ordinates wide-ranging energy cooperation among its 26 member countries. Its aims are to regulate oil supplies, promote rational energy policies, provide market data, aid policy integration and encourage energy efficiency measures. The IEA supports the development of an extensive portfolio of technologies and maintains active involvement in networks and collaborative exercises promoting joint research, development and demonstration programmes (RD&D). The Working Party on Fossil Fuels (WPFF) provides advice to IEA on fossil fuel technology-related policies, trends, projects and programmes, on strategies which address priority environmental protection and energy security interests, and carry out activities to meet those needs through international co-operation and collaboration facilitated by IEA. The Coal Industry Advisory Board (CIAB) is a group of high-level executives from coal-related industrial enterprises, established by the International Energy Agency (IEA) in July 1979 to provide advice to the IEA on a wide range of issues relating to coal. The CIAB currently has 39 members from 16 countries accounting for about 75% of world coal production. ACKNOWLEDGEMENTS This report was prepared by the International Energy Agency's Coal Industry Advisory Board in collaboration with the IEA Working Party on Fossil Fuels. It was published by the IEA Clean Coal Centre who also provided valuable, editorial assistance. Within the IEA the project was managed by the Energy Technology Division.