CO 2 Capture and Storage - The Essential Bridge to the Hydrogen Economy

Transcription

1 Page 1 CO 2 Capture and Storage - The Essential Bridge to the Hydrogen Economy Presentation at Gasification Technologies Council s Gasification Technologies Public Policy Workshop October 1, 2002 Washington D.C. by Elaine Chang 444 Castro Street, Suite 720 phone: Mountain View, California 94041, USA fax: web home page: chang@sfapacific.com Presentation Overview This presentation is given simultaneously in Kyoto, Japan at the 6 th International Conference on Greenhouse Gas Control Technologies (GHGT-6) Why hydrogen as a fuel? H 2 has some inherent problems relative to traditional fossil fuels Fuel cells & CO 2 avoidance are the keys to the hydrogen economy Hydrogen is already a large, commercially well proven industry CO 2 storage is also a large commercially well proven industry Industrial CO 2 capture development groups Economics beats technology, every time

2 Page 2 Background of Recent SFA Pacific H 2 & CO 2 Mitigation Related Projects & Presentations Private industry sponsored analyses Major private Multisponsored analysis of CO 2 mitigation options Major private Multisponsored analysis of syngas & gas to liquids (GTL) CO 2 capture & storage analysis for the BP led CO 2 Capture Project (CCP) & the TransAlta led Canadian Clean Power Coalition (CCPC) H 2 production & infrastructure costs for major auto & oil companies Most of our H 2 & CO 2 work is for major industrial energy companies Presentations Analysis of CO 2 control options for electric power generation for: GHGT-4, 1998, GHGT-5, 2000 & National Academy of Engineering, 2002 Hydrogen economy analysis for: the Canadian Electricity Association, Energy Frontiers International & the Pittsburgh Coal Conference Why Hydrogen as a Fuel? Hydrogen is the most abundant element in the universe When used as a fuel H 2 produces only clean energy & H 2 O Energy futurists see a logical progression from wood to coal to oil to NG to H 2 as standard of living & technologies improve Each fuel switch is cleaner, more efficient & lower in CO 2 emissions Energy futurists also like H 2 from sustainable renewables However, H 2 from fossil fuels is cheaper until the fossil fuel age peaks in years making fossil fuels increasingly more expensive The hydrogen economy concept is quite interesting, long-term However, the short-term challenge is developing a hydrogen infrastructure while H 2 from fossil fuels is still much cheaper

3 Page 3 Hydrogen Has Some Inherent Problems as It Is Not a Fuel Source, Merely an Energy Carrier Like electricity, H 2 is not a naturally occurring fuel as NG & coal Like electricity, H 2 production is expensive & inefficient Like electricity, H 2 transport & storage is expensive & difficult H 2 has the lowest energy density of any energy carrier High costs or heavy containers to improve H 2 energy density Over 65 kg container weight per 1 kg gaseous or hydrate hydrogen Even as expensive liquid H 2 still only 27% energy density of gasoline H 2 is dangerous to use - big explosive range & invisible flame Current codes for H 2 use & storage are onerous H 2 use is inefficient due to the large water formations & energy loss in the flue gas - LHV/HHV is 84.6% or 15.4% HHV losses Fuel Cells and CO 2 Avoidance are Keys to the Hydrogen Economy Fuel cells are unique in their direct conversion of chemical energy to electric energy Fuel cells can also operate at low temperature & can be reversible However, exploiting these exciting attributes of fuel cells hinges on developing effective H 2 production & H 2 infrastructure The global warming issue is likely the essential bridge to begin developing the long-term hydrogen economy Although H 2 from renewables is politically more correct & essential for the long-term, it is likely more economical to make H 2 from fossil fuels with CO 2 capture & storage in the short-term

4 Page 4 Hydrogen is Already a Large, Commercially Well Proven Industry World commercial H 2 production is currently 133,000 MW th (40 billion scf/d) or 75,000 MWe if all were converted to electricity Principal H 2 uses are for ammonia fertilizer & transportation fuels (hydrotreating oil into cleaner gasoline & diesel fuels) Most H 2 is from natural gas (NG) via steam methane reforming (SMR) yet 15% is from oil residues & coal via gasification H 2 transportation & storage depends on amount & distance 10,000 mi of H 2 pipelines for big users, longest is 250 mi in Europe Liquid hydrogen for moderate users & tube trailers for small users Many H 2 advocates are unaware of this impressive experience CO 2 Storage is Also a Large Commercially Well Proven Industry Over 20 years & currently > 30 million ton/year of commercial geologic CO 2 storage via enhanced oil recovery (EOR) Extensive pipeline systems & with geologic CO 2 storage in depleted EOR oil fields for potential future reuse in other nearby oil fields $10/ton CO 2 ($37/t C equivalent) market price but only 20% currently from anthropogenic (man-made) sources, however, that is poised to grow significantly as CO 2 reduction credits gain market value Over 20 years of commercial acid gas (H 2 S & CO 2 from natural gas purification) injection into various geologic formations Significant because H 2 S is a lighter, more dangerous gas than CO 2 & H 2 S has a strong smell at only a few parts per million (ppm) in air Therefore just the smallest H 2 S leakage would have been easily detected years ago if there were any leakage problems

5 Page 5 Industrial CO 2 Capture Development Groups Two major groups representing the two key energy industries CO 2 Capture Project or CCP- mostly oil-type energy companies Working to develop two large CO 2 capture demonstrations by 2006 One in Europe likely with natural gas to power One in North America likely with pet coke or coal (solid fuels) to power Canadian Clean Power Coalition or CCPC- electric utilities Working to develop two even larger CO 2 capture demonstrations Retrofit of an existing 300 MWe coal-fired power plant by 2007 A new advanced coal-based near zero emission power plant by 2010 Economics Beats Technology, Every Time If the hydrogen economy is to develop within 50 years: The most cost effective options must be aggressively pursued for the two major energy applications - electric power & transportation Major infrastructure challenges must be objectively addressed H 2 advocates of just politically correct H 2 from renewables must realize these are likely more expensive until the peak in the fossil age Hydrogen economy will likely need: Some form of subsidies to support developing the infrastructure, however, any subsidies should be non-discriminatory, transparent & performance based to foster the best & lowest cost H 2 options H 2 advocates must realize this may begin via H 2 from fossil fuels with CO 2 capture & storage if it is cheapest The key issue is getting H 2 infrastructure started, not waiting until H 2 from renewables becomes more competitive

6 Page 6 H 2 - based Power Generation with CO 2 Storage This is the easier application because It can develop without any changes in existing energy infrastructure & does not have to wait for fuel cells to commercially develop Large point sources at existing old, dirty & inefficient coal power plants Power generaters will be forced to meet a disproportionate share of any CO 2 reductions as they cannot move to China as other industries can See our National Academy of Engineering 2002 paper for power options Gasification repowering old coal units with H 2 -CC is interesting Can increase both capacity & efficiency while at the same time reducing all existing traditional emissions plus Hg & CO 2 to near zero This is perhaps the only major CO 2 capture & storage application that can make this important claim Power Generation Will Be Forced to Meet a Disproportionate Share of Any CO 2 Reductions Transportation fuel users have more votes than CO 2 intensive industries - higher gasoline prices via carbon taxes - no way Power plants can not move to China, as other CO 2 intensive industries in Annex 1 nations will, if faced with carbon taxes Large potential for efficiency improvements in power gen. Improved efficiency usually just reduces CO 2 growth rate; still grows Large point sources of power gen reduce CO 2 avoidance costs Key to addressing the global warming issue is CO 2 capture & storage for new, but especially existing coal-fired power plants

7 Page 7 Electricity Costs for Existing Coal Power Plant Upgrades if Carbon Taxes $ per MWh Electricity with capital charges for new investment + C tax & $10/t CO 2 disposal $ per metric ton carbon emission tax CGCC with CO2 control mt CO2/MWh $1.00 MM Btu coal price Existing PC paying C tax 0.90 mt CO2/MWh $1.00/MM Btu coal price NGCC with CO2 control mt CO2/MWh $4.63/MM Btu NG price NGCC paying C tax 0.34 mt CO2/MWh $4.63/MM Btu NG price Electricity Costs for Existing Coal Plant Upgrades if Combined CO 2 Recovery Credit & Emission Tax $ per MWh Electricity with capital charges for new investments & C tax or capture credits CGCC with CO2 recovery of mt CO2/MWh $1.00 MM Btu coal price 80 Existing PC paying C tax $1.00/MM Btu coal price NGCC with CO2 revovery of mt CO2/MWh $4.63/MM Btu NG price 20 NGCC paying C tax 0 $4.63/MM Btu NG price $ per metric ton carbon credit for captured CO 2 & carbon charge for CO 2 emissions

8 Page 8 Hydrogen based Transportation This is a much bigger challenge than H 2 based electricity Requires major changes in existing energy infrastructure & likely delayed until mass production commercialization of fuel cell vehicles The big bang problem - before the first mass-produced fuel cell vehicles roll off the assembly line, most of the H 2 infrastructure must be in place, faced with poor capital utilization for yrs of ramp-up SFA Pacific recently did a H 2 supply costs scoping study with the final report published July NREL/SR Commercial & near commercial technologies, 8 fuels, 3 H 2 distribution options plus small onsite & large central H 2 production Small onsite H 2 suffers from higher energy prices & unit capital costs Lowest costs likely for central NG SMR with liquid H 2 distribution, however, typical 60 MM scf/d SMR or 200 MW th supports 225,000 fuel cell vehicles at good annual utilization to pay off the large investment Hydrogen Economics for Fuel Cell Vehicles No road tax, 18%/yr capital charges, current technology & energy prices Central Facility - 150,000 kg/d (208 MW th ) design to service 225,000 FC vehicles & supply 411 stations with 329 kg/d per stations Onsite (Forecourt) kg/d design to service 550 FC veh & supply 329 kg/d Electrolysis Onsite NG Onsite Electrolysis - Liq H2 Biomass - Liq H2 Coal - Liq H2 Residue - Liq H2 NG - Pipeline H2 NG - Tube H2 NG - Liq H $/kg H 2 or $/U.S. gallon gasoline energy equivalent Production Delivery Dispensing Onsite

9 Page 9 Overcoming the big bang H 2 Ramp-up Issue The coal gasification H 2 power plant 400 MWe = 700 MW th H 2 CO 2 capture & storage plus small H 2 liquefaction & liquid H 2 storage tank to fill during lower power demand as H 2 is needed during ramp-up Distribute this liquid H 2 to fuel cell vehicle filling stations for the small but growing transportation H 2 requirements, as needed during ramp-up Power losses to H 2 are minor & can be easily made-up by other power plants or if peak power problems just add some NG to existing H 2 -CC Biomass & wastes are effectively utilized by co-feeding in this large gasification plant wherever they can be delivered at reasonable costs Would require subsidies to encourage H 2 & CO 2 storage Less than those already given renewable power & ethanol in gasoline However, this offers great social & economic value by creating the essential bridge to the hydrogen economy Conclusions Hydrogen has some inherent problems as it is not an energy source, merely an energy carrier with low energy density Nevertheless, the hydrogen economy is interesting due to unique attributes of fuels cells & the global warming issue The hydrogen economy favors H 2 from fossil fuel with CO 2 capture & storage as this is cheaper than H 2 from renewables Hydrogen for power generation via coal gasification repowering of old, coal units is the place to start as this avoids infrastructure problems Hydrogen for fuel cell vehicles is a greater challenge due to the big bang hydrogen infrastructure & vehicles/fuel ramp-up problems However that can be reduced by extracting hydrogen as needed from large hydrogen based coal gasification power plants co-feeding biomass Will required subsidies, however, less than already give to renewable power & ethanol in gasoline with much greater social benefits