Advanced Integrated Dual-Oxidant CFB Power Plant with CCS Oxy-Coal CFB

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1 Advanced Integrated Dual-Oxidant CFB Power Plant with CCS Oxy-Coal CFB NYAPP Conference 6/4/2008 1

2 The BPU In Our Community The BPU is the largest municipally-owned generating utility in New York and has been generating electricity for over 115 years. BPU residential rates are about one half of the average residential rates of the surrounding electric utility. Electric Division 20,000 customers Water Division 17,000 customers District Heat Division 71 customers District Cooling Div. 3 customers Wastewater Division 13,000 customers Solid Waste Division 12,500 customers 2

3 CFB Clean Coal Project Is the Product of a Six-Year Planning Process: Power Plant Assessment Study (3/03) Power Supply Study (9-Options) (9/03) Siting Study (2/04) Fuel Study (6/04) Updated Power Supply Study (9-Options) (7/04) Independent Study Validating Conclusions (2/05) 3

4 What is the CFB Clean Coal Base Project? The Project consists of: Retiring 2 of 4 existing PC coal boilers (45-60 yr old equipment) Installation of a 43 MW (net) Circulating Fluidized Bed (CFB) generating plant Capable of Operating on Coal, PET Coke, TDF (20%) or Biomass (25%) Providing up to 100MBTU/hr of District Heat 4

5 Benefits of the JBPU s Base CFB Project Significant environmental gains and emission improvements Rate stability and low cost power extremely important to our ratepayers, cheaper and more stable than surrounding area provide our local manufacturers a competitive edge on operating costs Continued generation capability in Jamestown as a base-load supplement to our hydropower allotment, provides a hedge against energy market risk the standard deviation on projected CFB costs is approximately 4%, compared to 32-36% for purchased electricity prices there remain significant concerns for increased market volatility caused by overreliance on natural gas Fuel Diversity (gas, coal, biomass, TDF, pet coke) further protects the JBPU customers from market volatility Reliability in Jamestown will continue to be supported by our ability to generate a priority for our industrial base important for our residents Economic development/contribution to our community and region 5

6 Base Project: Actions Completed to Date Base Project: Installation of a 50 MW Circulating Fluidized Bed (CFB) power plant capable of operating on coal and alternative fuels, including biomass (25%) Carbon control: biomass, improved efficiency, and energy conservation; no CCS Completed to Date: : Five year power supply planning process 2004-Present: Three year New York NEPA (SEQRA) process Over 50 public meetings 2006: Draft Environmental Impact Statement Issued 2007: Final Environmental Impact Statement 2007: EPA Draft Permit Issued 6

7 Conclusion in Final EIS: Oxy-Coal CCS is Not Mandated CCS is technically feasible CCS is expensive: to make it economically feasible, CO 2 must have value above the cost of CCS Need to build to learn Smaller scale demonstration plants which could prime the CCS market 7

8 But Oxy-Coal CCS Makes Sense Because... Societal demand exists to limit carbon emissions Risk Management Dual Oxidant Firing Provides Carbon Hedge and Potential Carbon Revenue Stream RGGI, Federal Program Overall risk mitigation and cost controls with Project Team, New York State, and DOE High CO 2 removal rate (potential for 99%) Competitive technology, less complex and more cost effective than IGCC; less costly than post combustion New York, Northeastern, and All-American Project Team 8

9 Jamestown BPU Oxy-Coal CFB Power Plant Site University at Buffalo Existing PC Boilers and Gas Turbine Praxair Ecology and Environment University at Buffalo New York State E & E Jamestown Jamestown Dresser-Rand Dresser-Rand Battelle Labs New 50 MW CFB Site (Base Project) Foster Wheeler New ASU and CO 2 Plant site Foster Wheeler Battelle Labs 9

10 Objectives of Demonstration Demonstrate fully integrated CCS project Employ advanced technologies CFB Dual-Oxidant Boiler ASU and CO 2 processing unit Advanced CO 2 Compression System integration (Advanced Process Control) Prove reliability and availability Operate with typical load factor variations Gain operating experience Sequestration in saline formations Enable Direct Scale-Up to a Commercial CCS Operation 10

11 Oxy-Coal CFB Power Plant Supervisory Control/Load Following Steam Cycle & Generator ~ Inerts CFB Preheater Dust Collector CO 2 Purification & Compression CO 2 to Pipeline Limestone Ash Mixer Flue Gas Recycle Fan N 2 Impurities Coal Biomass Petcoke O 2 Flow Control Cryo ASU 97% O 2 Air 11

12 CFB Oxy-Coal Plant Plant Supervisory Control/Load Following Steam Cycle & Generator ~ Inerts CFB Preheater Dust Collector CO 2 Purification & Compression CO 2 Ash Fan Flue Gas Recycle Impurities Limestone Mixer N 2 Coal O 2 Flow Control 97% O 2 Cryo ASU Air 12

13 Circulating Fluidized Bed Process Advantages Feature Benefit Flue Gas o F Low furnace temperatures - Low NO x - In-bed SO 2 capture -Fuel flexibility (Biomass) - Ideal for Oxy-coal CCS o F Hot circulating solids Long solid residence time - Tolerant to fuel variations - Efficient heat transfer - Simple feed systems - Uniform heat flux - Ideal for SNCR - Good fuel burnout - Good sorbent utilization ft/sec Air Fuel 1/2 x 0 Limestone 1/20 x 0 Air 13

14 Foster Wheeler CFB Experience 600 Unit Capacity (MWe) Lagisza Project E Pilot Plant Tri-State Oriental Chem AIR-FIRED Start-Up Year Nova Scotia Vaskiluodon General Motors Turow 1 JEA OXY-FIRED 20 MWt demo Pilot Plant Jamestown

15 CFB Process Scale-up and Modularization MW e MW e MW e Module MWe MW e Demonstration will enable scale-up to 600 MWe 15

16 Success Factors for Demonstration Proximity to a suitable geologic CO 2 storage site Advanced coal power plants that capture and store CO 2 All plant components are advanced and scalable All learnings applicable to retrofit applications Availability of financing for capital investment Base plant cost share by municipal utility CCS investment supported by government Project timing on a fast track 2013 start-up World class technology and project execution team Boiler island, ASU and CO 2 processing, CO 2 compression and sequestration & environmental permitting Team members have global reach and plan to commercialize 16

17 Potential CO 2 Storage in Saline Formations No Potential Source: Natcarb.org Jamestown Potential Unknown Battelle Labs Source: NYSERDA 17

18 Jamestown Area - Preliminary Analysis of Sequestration Targets Potsdam Sandstone -The Potsdam Sandstone is the basal sand in SWNY -Depth of about 7,000 ft -Thickness ranges from approx ft -Possible seal would be the Utica Shale -Additional storage potential may be present in overlying Theresa Formation carbonates Clinton-Medina Group -Commonly produces gas in Chautauqua Co. -Average depth is between 3,000 and 5,000 ft -Thickness ranges from approx feet -Possible seal in shales of the Hamilton Group Potsdam Clinton NYSERDA / NYS Sponsored Study Underway to Identify Well Locations Source: Battelle Modified from Hettinger, 2001, USGS. Medina 18

19 Project Timeline Q Q Q Q Q Q Q Q Preliminary feasibility study CCPI RFP anticipated NYSERDA study for sequestration Funding for the project secured Supplemental EIS Detailed design completed Begin Oxy-coal CFB construction Oxy-coal CFB Start-up 19

20 Issues DOE CCPI timing and budget CO 2 ownership and liability Short and long term Financial model (value) for CO 2 Parasitic load loss (cost of CCS) Regulatory framework for CCS Federal and State Air and CO 2 injection permits 20

21 Summary 50 MWe demonstration project planned to enable direct scale-up to a 600 MWe commercial unit Jamestown BPU project selected for demonstration of an advanced Oxy-Coal CFB with potential for 99% CO 2 capture Near zero SOx, NOx and mercury air emissions Need regulatory clarity The time is now for a fully integrated Oxy-Coal CCS demonstration at Jamestown, NY 21

22 U.S. Oxy-Coal Technology Campus University at Buffalo Praxair E & E New York State NYSERDA Jamestown Dresser-Rand Battelle Labs DOE NETL Foster Wheeler 22