Advanced Coal Technologies Laufer Energy Symposium Dianna Tickner Peabody Energy April 5, 2013
What is 21st Century Coal? Clean Coal Defined Use of modern, highly efficient methods and technology in the extraction and utilization of coal to produce valued products. Satisfying the desired global objective of economic sustainability, energy security, and environmental care. Wide scale deployment of clean coal technologies that enable the ultimate goal of continuous emission improvements leading to near-zero emissions. 2
Million Tonne of Oil Equivalent Why Coal? World s Fastest Growing Energy Source, Expected to Overtake Oil Total World Primary Energy Demand by Fuel Coal 2013 Oil Natural Gas 2000 2005 2010 2015 2020 2025 2030 Source: Wood Mackenzie Energy Service. Nuclear Hydro Renewables
U.N. Human Development Index Why Clean Coal? To Improve Lives and Livelihoods Affordable Electricity Enables People to Live Longer and Better 1 0.9 Argentina UK Germany Japan United States Canada Finland Sweden Qatar 0.8 0.7 0.6 Brazil China Indonesia India South Africa Russia 0.5 0.4 0.3 Bangladesh Nigeria Ethiopia DR Congo Every 10-Fold Increase in Per Capita Electricity Use Drives a 10-Year Increase in Longevity 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Electricity Use Per Capita (kwh/year) Source: CIA World Fact Book, United Nations Development Program s Human Development Report. 4
Electricity from Coal (TWh) The Economic Miracle Powered by Coal Near Perfect Correlation Between Coal Use and GDP Growth 16,000 14,000 12,000 10,000 8,000 6,000 4,000 Global Electricity from Coal World GDP $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 World GDP (trillions of 2005 $) 2,000 1970 1980 1990 2000 2010 2020 2030 $10,000 Source: Developed from International Energy Agency World Energy Outlook (1995-2011); USDA 2011. 5
Technology is the Path to Achieve our Environmental Goals Efficiency improvements at Existing Plants Building New Supercritical and Ultra-Supercritical Plants Demonstrating and Deploying IGCC and Carbon Capture, Utilization and Storage The Goal: Near-Zero Emissions Advance Carbon Capture, Utilization and Storage and Btu Conversion Retrofitting Existing Coal-Based Generation with Carbon Capture/Storage Up to 90% Lower CO 2 CO 2 -Enhanced Oil Recovery, Producing 4 Million b/d 20 years
% Change Since 1970 Clean Coal Technologies Are Environmental Success Story Total Emissions Have Declined While Coal Consumption Increased 150% + 170% 100% + 103% 50% 0% -50% -100% 1970 1975 1980 1985 1990 1995 2000 2005 2011-89% - 93% Source: USDA 2011, EIA 2012, NETL 2011 7
Advanced Technologies Build On Progress for Sustainable Future China Houses 55% of the World s Advanced Coal Fleet Emission rates onefifth the average of U.S. coal fleet ~450 GW New Generation Expected Online by 2017 Every 1% efficiency gain reduces lifetime emissions by 2,000 tons of NOx and SO 2 and 2.5 million tons of CO 2 China 250 GW ROW 20 GW Source: Platts World Electric Power Plant Database, January 2013 and Peabody Energy Global Analytics. Africa 15 GW India 70 GW Indonesia 15 GW Vietnam 20 GW Other Asia 35 GW Europe 25 GW 8
21 st Century Coal Technology Achieves Near-Zero Criteria Emissions Older Fleet 89% Sulfur Dioxide Advanced Coal 93% Nitrogen Oxide 99.9% Particulates -30% CO 2 9
How? Higher Temperatures Increase Environmental Efficiencies Typical Supercritical and Ultra-Supercritical PC Control Equipment Increase Power Per Unit Selective Catalytic Reduction Further Reduces NO x and enhances mercury removal Steam Generator High efficiency boiler produces less emissions per megawatt output Wet ESP Reduces fine particulate and sulfuric acid mist Scrubber Reduces SO 2 and mercury Fabric Filter Captures particulate matter and mercury Emission Monitoring Continuously monitors many types of emissions Cooling Tower Low NO x Burners Reduces NO x Bottom Ash A by-product useful in concrete and other products, or stored Gypsum A by-product useful in wallboard Fly Ash A by-product useful in concrete and other products, or stored 10
U.S. Advanced Coal-Fueled Generating Fleet is Still Growing More than 11 GW of New Supercritical Technology Capacity Added Westin Oak Creek Supercritical Technology Since 2000 Operating Oak Creek: 1,230 MW (2009) Comanche: 750 MW (2010) Oak Grove: 1,600 MW (2009) Iatan 2: 850 MW (2010) Trimble County 2: 750 MW (2011) Sandy Creek: 900 MW (2013) Westin 4: 530 MW (2008) Longview: 695 MW (2011) Council Bluffs 4: 790 MW (2007) Prairie State: 1,600 MW (2012) Cliffside: 825 MW (2012) Turk: 600 MW (2012) Total: 11,120 MW Comanche Council Bluffs Iatan Turk Oak Grove Sandy Creek Prairie State Trimble County Longview Cliffside ~ 40 million tons of coal annually in new operating plants 11
CO 2 Emissions (Tonne/MWh) Each Investment Delivers Greater Efficiencies, Lower Emissions Efficiency Improvement is the First CO 2 Mitigation Technology 1.05 CO 2 Emissions vs. Net Plant Efficiency 1.00 0.95 U.S. Existing Coal Fleet CO2 Emissions 0.90 0.85 Prairie State 0.80 AEP Turk Isogo (Japan) 0.75 0.70 Yuhuan (China) 0.65 0.60 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Net Plant Efficiency, % (HHV) Subcritical Supercritical Ultra-Supercritical Yuhuan CO 2 emissions are about 25% less than the typical U.S. coal plant Coal Utilization Research Council / Electric Power Research Institute R&D targets about 35% reduction in CO 2 emissions from coal combustion technologies Source: Based on Booras and Holt (2004). 12
Coal s Versatility Adds to Energy Security Btu Conversion Transforms Coal into Clean Electricity, Natural Gas & Transportation Fuels Coal Electricity Industrial Gas Pipeline SNG Ethanol Conversion/ Gasification Diesel Jet Fuel CO 2 Capture and Sequestration Hydrogen 13
Harnessing Coal s Carbon Delivers Economic and Environmental Objectives Carbon Capture Utilization & Storage (CCUS) Technologies Pre-Combustion: Operates like a scrubber to absorb the CO 2 from the boiler exhaust flue gas. Post-Combustion: Selectively absorbs and recover the CO 2 from the syngas. Commercially available. Oxy-Combustion: Combusts fuel in the presence of oxygen, rather than air, produces a highly pure CO 2 exhaust. CO 2 Uses Deep geologic storage is beginning to be demonstrated globally. Enhanced Oil Recovery (EOR) has been deployed for decades in the Permian Basin (west Texas) from natural CO 2 sources. 14
CO 2 Capture Options are Significant Numerous Companies Advancing a Variety of Technologies B&W Alstom Econamine+ (Fluor) CANSOLV (Shell) Powerspan MHI B&W Alstom GE Phillips 66 Siemens Shell Rectisol (Linde) Selexol (UOP) MDEA MHI KBR Praxair Linde Air Liquide Air Products Siemens GE Fischer-Tropsch (Sasol, Shell, Synfuels China) Methanol-to-Gasoline (ExxonMobil) Methanation 15
CCS for EOR Drives Down Technology Costs Coal s CO 2 Content as the Preferred Feedstock Over the next 30 years: 87 billion barrels in stranded oil could be recovered in the U.S. alone CO 2 is a necessary feedstock for EOR Maximum needed: 14 billion tons of CO 2 7 billion tons of coal Source: National Energy Technology Laboratory, U.S. Department of Energy, Storing CO 2 and Producing Domestic Crude Oil with Next Generation CO 2 -EOR Technology, Jan. 9, 2009; International Energy Agency: Coal-Fired Power Generation: Replacement/Retrofitting Older Plants, 2008; Management Information Services and Peabody analysis. Source: DOE/NETL_2012/1540-Figure 1.5. 16
Oil & Gas $.64 Coal $.64 Hydropower $.82 Nuclear $3.14 Wind $56.29 Dollars per megawatt hour Coal Provides the Best Deal for Baseload Power No Subsidies Required for Coal to Be Cost Effective Yet U.S. Subsidies Highest Cost and Least Abundant Generation Solar $775.64 Sources: U.S. Department of Energy and Institute for Energy Research, 2011.
Advanced Coal Delivers Real Green Jobs and Socioeconomic Benefits 100 Gigawatts of Green Coal Technology Cumulative Benefits During Construction Benefits 100GW Jobs (million job years) 6.9 Output (trillions) $1.1 Labor Income (billions) $368 Annual Benefits During Operations Benefits 100GW Jobs (thousands) 251 Output (billions) $58 Labor Income (billions) $17 Source: National Coal Council, 2012. 19
In Summary, Advanced Coal Technologies Key to Economic, Environmental and Energy Security Goals GreenGen Power Plant and Carbon Research Center; Tianjin, China 20