Gasification Technologies

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Gasification Technologies Clean, Secure and Affordable Energy Systems IGCC and Clean Coal Technologies Conference Tampa, FL June 28, 2005 Gary J. Stiegel, Technology Manager - Gasification National Energy Technology Laboratory, US Department of Energy

Presentation Outline History What is Gasification Gasification vs. Combustion Types of Gasifiers Status of Commercialization Environmental Benefits Comparison of Gasification vs. Conventional Plants Technology Issues and Developments Gasification O 2 Separation Gas Cleanup Hydrogen Production and Separation FutureGen Summary 2

History of Gasification Town Gas Town gas, a gaseous product manufactured from coal, supplies lighting and heating for America and Europe. Town gas is approximately 50% hydrogen, with the rest comprised of mostly methane and carbon dioxide, with 3% to 6% carbon monoxide. First practical use of town gas in modern times was for street lighting The first public street lighting with gas took place in Pall Mall, London on January 28, 1807 Baltimore, Maryland began the first commercial gas lighting of residences, streets, and businesses in 1816 3

History of Gasification Used during World War II to convert coal into transportation fuels (Fischer Tropsch) Used extensively in the last 50+ years to convert coal and heavy oil into hydrogen for the production of ammonia/urea-based fertilizer Chemical industry (1960 s) Refinery industry (1980 s) Global power industry (Today) 4

Oxygen What is Gasification? Extreme Conditions: 1,000 psig or more 2,600 o F Corrosive slag and H2S gas Coal Water Products (syngas) CO (Carbon Monoxide) H2 (Hydrogen) [CO/H 2 ratio can be adjusted] By-products H2S (Hydrogen Sulfide) CO2 (Carbon Dioxide) Slag (Minerals from Coal) Gas Clean-Up Before Product Use 5

Gasification Chemistry Coal Oxygen Steam Gasification with Oxygen C + 1 / 2 O 2 CO Combustion with Oxygen C + O 2 CO 2 Gasification with Carbon Dioxide C + CO 2 2CO Gasification with Steam C + H 2 O CO + H 2 Gasification with Hydrogen C + 2H 2 CH 4 Water-Gas Shift CO + H 2 O H 2 + CO 2 Methanation CO + 3H 2 CH 4 + H 2 O Gasifier Gas Composition (Vol %) H 2 25-30 CO 30-60 CO 2 5-15 H 2 O 2-30 CH 4 0-5 H 2 S 0.2-1 COS 0-0.1 N 2 0.5-4 Ar 0.2-1 NH 3 + HCN 0-0.3 Ash/Slag/PM 6

Combustion Chemistry Coal Air Combustion with Oxygen C + O 2 CO 2 1 / 2 O 2 + H 2 H 2 O Combustion Gas Composition (Vol %) CO 2 13.5 H 2 O 9.8 SO 2 0.4 N 2 73.2 O 2 3.2 Ash/Slag/PM 7

Gasification Phase Diagram (Coal: Illinois #6 Dry Feed) 100% Gasification Zone CH 4 H 2 S SO 2 Complete Combustion 90% 80% 70% H 2 H 2 O O 2 Mole % 60% 50% 40% C CO 2 30% 20% CO 10% 0% 0.1 0.7 1.3 1.9 2.5 3.1 O 2 /MAF Coal Feed 8

So what can you do with CO and H2? Syngas Building Blocks for Chemical Industry Transportation Fuels (Hydrogen) Clean Electricity 9

Chemicals from Coal - Final Products It is likely you have a product in your home based on coal gasification. Coal Acetic Anhydride Acetic Acid Courtesy: Eastman Chemical 10

Gasification-Based Energy Production System Concepts Sulfur By-Product Fly Ash By-Product Slag By-Product 11

Conventional Coal Plant 15 MW 40 % Efficiency 100 MW 85 MW 40 MW 45 MW Courtesy: EPRI 12

Gas Turbine simple cycle 100 MW 62 MW 38 MW 38% Efficiency Courtesy : EPRI 13

Coal-Based IGCC Power Plant 100MW Net Coal to Power: 30 + 22 9 = 43% 9MW 5MW 18MW 15MW 80MW 22MW 25MW Cooling Loss 47MW 50MW Courtesy: EPRI 30MW 14

Gasifier Types Flow Regime Moving (or "Fixed") Bed Fluidized Bed Entrained Flow Combustion Analogy grate fired combustors fluidized bed combustors pulverized coal combustors Fuel Type solids only solids only solids or liquids Fuel Size 5-50 mm 0.5-5 mm < 500 microns Residence Time 15-30 minutes 5-50 seconds 1-10 seconds Oxidant air- or oxygen-blown air- or oxygen-blown almost always oxygen-blown Gas Outlet Temp. 400-500 ºC 700 900 ºC 900 1400 ºC Ash Handling slagging and non-slagging non-slagging always slagging Commercial Examples Comments Lurgi dry-ash (non-slagging), BGL (slagging) "moving" beds are mechanically stirred, fixed beds are not gas and solid flows are always countercurrent in moving bed gasifiers GTI U-Gas, HT Winkler, KRW bed temperature below ash fusion point to prevent agglomeration preferred for high-ash feedstocks and waste fuels GE Energy, Shell, Prenflo, ConocoPhillips, Noell not preferred for high-ash fuels due to energy penalty of ash-melting unsuitable for fuels that are hard to atomize or pulverize Note: The "transport" gasifier flow regime is between fluidized and entrained and can be air- or oxygen-blown. 15

MWth Syngas 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Cumulative Worldwide Gasification Capacity and Growth Planned Operating 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 16

Gasification by Technology 35,000 30,000 Planned Operating MWth Syngas 25,000 20,000 15,000 10,000 5,000 0 Shell Sasol Lurgi GE Other ConocoPhillips 17

Gasification by Product 30,000 25,000 Planned Operating MWth Syngas 20,000 15,000 10,000 5,000 0 FT liquids Chemicals Power Gaseous fuels Not specified 18

Gasification by Primary Feedstock 35,000 30,000 Planned Operating MWth Syngas 25,000 20,000 15,000 10,000 5,000 0 Coal Petroleum Gas Petcoke Biomass/Waste 19

Gasification by Region 30,000 25,000 Planned Operating MWth Syngas 20,000 15,000 10,000 5,000 0 Africa/ME Asia/Aust. Europe No. Amer. Cent/So. Amer 20

U.S. Commercial-Scale Coal-Based IGCC Power Plants Southern California Edison's 100 MWe Cool Water Coal Gasification Plant (1984-1988) Dow Chemical's 160 MWe Louisiana Gasification Technology Inc (LGTI) Project (1987-1995) SG Solutions Gasification Plant (50-50 owned by Wabash River Energy Ltd & Wabash Valley Power Assoc.) supplying syngas fuel to Cinergy s 262 MWe Wabash River Generating Station (1995 - present) and currently using primary fuel of petcoke after completing the coal demonstration Tampa Electric's 250 MWe Polk Power Station (1996-present) Foreign NUON/Demkolec s 253 MWe Buggenum Plant (1994-present) ELCOGAS 298 MWe Puertollano Plant (1998-present) 21

IGCC Technology in Early Commercialization U.S. Coal-Fueled Plants Wabash River 1996 Powerplant of the Year Award* Achieved 77% availability ** Tampa Electric 1997 Powerplant of the Year Award* First dispatch power generator Achieved 90% availability ** Nation s first commercialscale IGCC plants, each achieving > 97% sulfur removal > 90% NO x reduction *Power Magazine ** Gasification Power Block 22

Environmental Benefits 23

Environmental Contrasts Combustion Gasification sulfur converted to SO 2 H 2 S sulfur capture flue gas scrubbers, boiler limestone injection absorbed in physical or chemical solvents sulfur disposal gypsum sold for wallboard sold as H 2 SO 4 or elemental S nitrogen converted to NOx control NOx required (e.g., low-nox burners, staged combustion, SCR/SNCR) traces of NH 3 in syngas (syngas combustion produces low levels of NOx) currently not needed for IGCC (but tighter regs could require SCR) C is converted to CO 2 mostly CO in syngas CO 2 control post-combustion removal from diluted stream pre-combustion removal from concentrated stream water requirements much more steam cycle cooling water needed some water needed for slurry, steam cycle and process needs 24

Wabash River Clean Coal Project A Case Study for Cleaner Air 3 Emissions, Pounds per Million BTUs 2 1 SO 2 The Wabash River Plant in Terre Haute, Indiana, was repowered with gasification technology 0.8 NO x 0 3.1 BEFORE CCT 0.1 AFTER CCT BEFORE CCT 0.15 AFTER CCT 25

Tampa Electric (TECO) Clean Coal Project A Case Study for Cleaner Air 2.5 Emissions (Pounds per Million Btus) 2.0 1.5 1.0 0.5 2.07 SO 2 1.2 0.6 to 1.2 TECO s coal-to-gas plant in Polk County, FL, is the pioneer of a new type of clean coal plant. NO x 0.47 0 Older Coal Plant Fleet Avg. 0.1 TECO CCT Plant Older Coal Plant Fleet Avg. 0.07 (15ppm) TECO CCT Plant 26

Comparison of Environmental Factors Pulverized Coal-Fired, NGCC, and IGCC Plants 2.2 2.0 1.8 1.6 = PC-Fired Plant with FGD & SCR = NGCC Plant = IGCC Plant without SCR 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 SO2 (lb/mwh) NOx (lb/mwh) PM10 (lb/mwh) CO2 (lb/1000 MWh) Total Solids (lb/100 MWh) Water Usage (gal/1000 MWh) * Based on 1998 Parson study for DOE : Market-Based Advanced Coal Power Systems 27

Coal-Fired Power Plant Emissions Recent Permits (lb/10 6 Btu) SCPC 7 WePower PC 5 Prairie State CFB 6 Indeck IGCC 1 WePower IGCC 2 Wabash SO2 0.15 0.18 0.15 0.03 0.133 3 NOx 0.07 0.08 0.08 0.03 0.103 VOC 0.004 0.004 0.004 0.004 0.002 CO 0.12 0.12 0.11 0.03 0.045 PM/PM10 0.018 0.015 0.015 0.011 0.011 Hg (lb/10 12 Btu) 1.12 ~ 2 4.0 0.5 3.24 4 1. WePower SCPC and IGCC information from April 2003 Draft Environmental Impact Statement, Elm Road Generating Station, Volume 1, Public Service Commission of Wisconsin & Department of Natural Resources, Table 7-11, p. 157 (Pittsburgh 8 coal) 2. Wabash River Repowering Project, 1997 and 1998 average reported to IDNR, including fuel oil (Illinois 6 coal) 3. Wabash River has demonstrated 0.03 lb/mmbtu SOx, but operates nearer the 0.20 lb/mmbtu permit for economic reasons 4. Electric Utility Steam Generating Unit Mercury Test Program, USEPA, October 1999 (no controls) 5. Project Summary for a Construction Permit Application from the Prairie State Generating Company, LLC, Illinois Environmental Protection Agency. BOILER STACK ONLY 6. Supplemental Information for Air Permit Application, March 25, 2003,EarthtechInc. 7. Analysis and Preliminary Determination for the construction and Operation Permits for the proposed Construction of an Electric Generation Facility for Elm Road Generating Station, October 2, 2003, Wisconsin Department of Natural Resources Source: ConocoPhillips 28

Gasification Technologies Program Clean, Affordable Energy Systems Oxygen Membrane Gas Stream Cleanup Power High Efficiency Turbine Air Gasification Separation Coal, biomass, pet. coke Feedstocks Flexibility Products/ Byproducts Utilization Gasifier CO 2 Gas Cleaning H 2 /CO 2 Separation H 2 Fuels Fuel Cell Liquids Conversion Electricity Fuels/Chemicals Process Heat/Steam Co-Production (co-funded activities) 29

Oxygen Membrane Major Technology Issues Gas Cleaning Oxygen Durability of the Membrane Integration with Overall Process Low-rank Coal Coal Injector Reliability Single Train Availability Durability of Refractory Material Durability and Accuracy of Monitoring Devices Alternative Feedstocks Feed System Reliability Heat Removal Temperature Measurement & Control Gasification Fuel Gas CO 2 Cost-Effective Multi- Contaminant Control to Ultra-Clean Specifications Moderate Temperature Hg Removal at Elevated Temperatures Integrated Specifications with Downstream Process Requirements Integration with NOx Reduction Processes Hydrogen Water-Gas Shift H 2 CO 2 Gas Separation Durability of the Membrane Low Flux Contaminant Sensitivity Heat Removal 30

Gasification Systems Southern Company EPRI Kellogg, Brown & Root Siemens Westinghouse Power Southern Research (SRI) Rolls Royce Allison Engine Lignite Energy Council Peabody Coal BNSF Railway Development and demonstration of modular industrial scale gasificationbased processes and components at Power Systems Development Facility (PSDF) 31

Gasification Systems PSDF & UND EERC TRDU Development and testing of transport gasification reactor -Air-blown and O 2 -blown -Bituminous and low-rank coals Stamet StametPump Development Development of of dry dry feed feed system system Alstom Alstom Hybrid Hybrid combustiongasificatiogasification using using high high temp temp combustion- chemical chemical and and thermal thermal looping looping -- Solids Solids transfer transfer media media -- Multiple Multiple reactors reactors for for oxidation, oxidation, reduction reduction,, carbonation, carbonation, and and calcination calcinationof of calcium calcium compounds compounds Rocketdyne Develop and test technology for a novel plug flow gasifier with: -Rapid mix injectors -Actively cooled wall liner -Dry feed system GE Global Research. California Energy Commission Development of advanced gasification process for CO 2 separation and H 2 production 32

Oxygen Separations 33

Why Oxygen Separation Membrane Technology is Important In an IGCC plant, the air separation unit Accounts for ~15% of the plant capital cost Consumes ~ 10% of the gross power output Reducing capital cost and increasing efficiency of ASU Improve economic viability of IGCC, Stimulate commercial deployment. Systems studies of membrane technologies have shown significant potential Increased net MWe IGCC plant efficiency Major decreased cost of oxygen production, Overall decrease in Cost of Electricity (COE) 34

Oxygen Production Technologies Comparison DELIVERED LIQUID OXYGEN VPSA CRYOGENIC Capacity Range < 30 tpd 200 tpd 20 3500 tpd CERAMIC MEMBRANES Probably larger sizes > 150 tpd Oxygen Purity 99.5%+ 90-94% 95%-99.9% 99%+ Nitrogen, Argon, Co-Products N/A Difficult Liquids, etc. Nitrogen Likely Power Consumption* Higher Lower Base Lowest Capital Cost* Lowest Lower Base Lower Oxygen Cost* Highest Low Base Lowest Operating Temperature -300 F/-184 C Ambient -300 F/-184 C >1100 F/>600 C Age of the Technology 75 Years 40 Years 100 Years 15 Years * Assuming all targets are met Table provided by Praxir 35

Mixed-Conducting Oxygen Separation Membranes N 2 -Rich Air 1/2 O 2 + 2e - O -2 Air e O -2 Oxygen Conducting Membranes O 2 O -2 1/2 O 2 + 2e - Pressure driven operation Mixed ionic - electronic conduction, no external circuit Oxygen ion transport through oxide materials Infinite O 2 selectivity High temperature process - 900 o C 36

Membrane Air Separation Advantages Air Products ITM Oxygen Cryo ASU % IGCC Net Power (MWe) 438 409 +7 Net IGCC Efficiency (% LHV) 41.8 40.9 +2 (% HHV) 40.4 39.5 Oxygen Power Req t (kwh/ton) 147 235-37 Oxygen Plant Size (stpd) 3,200 3,040 +5 Oxygen Plant Cost ($/stpd) 13,000 20,132-35 Total IGCC Cost ($,000) 447,000 448,000 ----- IGCC Specific Cost ($/kw) 1,020 1,094-7 IGCC plant cost reduced 7%, plant efficiency increase 2% with >35% cost and energy savings in oxygen production Air Products and Chemicals, Inc. 2002 37

APCI Air Separation ITM Modules Step 1: Submodule Construction Step 2: Module Construction Test membrane modules FY06 5 TPD FY08 25 TPD 12-wafer submodule Tonnage- Quantity Module Offer commercial air separation modules Post- FY09 demos of IGCC and FutureGen 38

Gas Cleanup 39

Particulate Removal Mercury Removal Shift Conversion COS Hydrolysis Acid Gas Removal Sulfur Recovery Tail Gas Treating SCOT Process Gas Cleanup 40

Synthesis Gas Cleanup Priorities Deep cleaning technologies required to meet future environmental regulations Meet Rectisol performance at equal or lower cost than amine systems Better definition of contaminants and required levels (particulates, H 2 S, COS, CO 2, NH 3, volatile metals, carbonyls) Need to operate closer to downstream process requirements (e.g., gas turbine, syngas conversion) High cost of particulate and chemical removal (need fewer unit operations) 41

Synthesis Gas Cleanup Priorities Cold Gas Cleanup (ambient) Opportunities to improve conventional technologies Removal of heat stable salts Need to develop new approaches Warm Gas Cleanup (300-700 o F) Develop technologies that operate above the dew point of the gas stream more efficient operation Development of technologies for multi-contaminant removal (e.g., mercury, arsenic, selenium, ammonia, particulates, etc.) Particulate Filtration Development of more durable, reliable, and cost effective filters (Useful life - three years) Simpler, cheaper approaches to solids removal 42

Ultra Gas Cleaning RTI RTI International International SRI SRI International International MEDAL MEDAL Sud SudChemie, Inc. Inc. University University of of Texas Texas at at Austin Austin Eastman Eastman Chemical Chemical KBR KBR Develop Develop processes processes to to reduce reduce H 2 2 S and and CO CO 2 2 (membranes), (membranes), NH NH (sorbents), (sorbents), and and HCl HCl (Na (Na 3 2 3 2 CO CO 3 3 to to ppb ppb levels levels )) Pilot Pilot testing testing at at Eastman Eastman Chemical Chemical ConocoPhillips ConocoPhillips Test Test cyclone-filter cyclone-filter hybrid hybrid particle particle removal removal system system at at the the Wabash Wabash River River IGCC IGCC Plant Plant NETL In-House Research NETL with CrystaTech Selective Catalytic Oxidation of H 2 S (SCOHS) Single-step process for converting H 2 S to elemental sulfur Development and evaluation of sorbents and solvents Siemens Siemens Westinghouse Westinghouse Power Power Corporation Corporation Gas Gas Technology Technology Institute Institute Develop Develop a two-stage two-stage process process to to reduce reduce H 2 2 S, S, HCl, HCl, and and particulates particulates to to ppb ppb levels levels 43

New Projects in Ultra Gas Cleaning (Clean to Near-Zero at Warm-Gas Temperatures) TDA Research Development of single sorbent process for removal of multiple trace metals (Hg, As, Se, Cd) Gas Gas Technology Technology Institute Institute University University of of California California at at Berkeley Berkeley ConocoPhillips ConocoPhillips Integrated Integrated multi-contaminant multi-contaminant process process removing removing H 2 2 S, S, NH NH 3 3,, HCl, HCl, and and heavy heavy metals metals (Hg, (Hg, As, As, Se, Se, Cd) Cd) in in single single process process reactor reactor Includes Includes high high pressure pressure conversion conversion of of H 2 2 S to to elemental elemental sulfur sulfur RTI RTI International International Eastman Eastman Chemical Chemical Nexant Nexant SRI SRI SudChemie SudChemie URS URS Bulk Bulk removal removal of of H 2 2 S, S, COS, COS, NH NH 3, 3, and and HCl HCl in in transport transport reactor reactor to to sub-ppm sub-ppmlevels followed followed with with fixed fixed bed bed polishing polishing plus plus trace trace heavy heavy metals metals removal removal to to nearzerzero near- University University of of North North Dakota Dakota Energy Energy Environmental Environmental Research Research Center Center Corning Corning Develop Develop a multi-contaminant multi-contaminant control control process process using using a sorbent-impregnated monolith monolith fixed fixed honeycomb honeycomb structure structure 44

Economic Advantage of Warm Gas Cleaning Type Base Case MDEA RTI HTDS w/dsrp Rectisol Cool Gas Warm Gas Cold Gas Capital Cost (in $millions) Low Temp Gas Cooling 12.3 0 12.3 NH 3 + AG Removal 19.3 38.7 49.7 S Recovery + Tail Gas Treat 32.3 7.4 27.6 Power Generation / HRSG 150.8 138.6 164.8 Delta Cost ($ millions) 0-30.0 + 39.6 Delta Cost (as % of Base) 0 % -7.9% + 10.5% 45

Ultra-Clean Warm Gas Cleanup Progress RTI Process Development Testing at Eastman Chemical Field Field Test Test Objective: First First integrated evaluation of of warm-gas contaminant cleanup technologies with with coal-derived gas gas at at a commercial gasification plant plant Preliminary Test Results at ChevronTexaco Montebello Research Center: Demonstrated H 2 S and COS reduction at 600 to 900 o F from 8300ppmv to below 2 ppmv detection limit Potential Offered: Achieve ultra-clean syngas syngas Reduce Reduce total total plant plant capital capital cost cost by by $80-$100KW Improve thermal efficiency by by 1-2 1-2 points points 46

IGCC without Mercury Removal and with and itwith it COAL SLURRY OXYGEN COS HYDROLYSIS CONDENSER ACID GAS REMOVAL BFW WATER SYNGAS COOLER MERCURY REMOVAL AIR HP STEAM PARTICULATE REMOVAL GAS TUBINE HRSG BFW SLAG FINES STEAM TURBINE 47

Mercury Removal System Performance and Cost Estimates for an IGCC Reference Plant based on Tampa Electric Gasification Plant with GE Energy gasifier and sized to 287 MWe net Remove greater than 90% of mercury To zero detectability limits Stable adsorption of mercury in carbon beds as mercury sulfide Small volume of stabilized solid waste for controlled disposal (17 tons/yr or 0.06 tons/mw-yr) Incremental capital costs of $3.34/kW for carbon bed removal system <0.3% of Total Capital Costs of IGCC plant cost of $1200/kW Incremental cost of electricity (COE) of $0.254/MWh for O&M and capital repayment <0.6% of COE from IGCC plant of $44/MWh Estimated cost of mercury removal in IGCC compares favorably (<10%) to costs of 90% removal in conventional PC power plant 48

Separations Hydrogen and CO 2 49

Summary of Hydrogen from Coal Cases Case 1 Case 2 Case 3 Gasifier* Conventional Advanced Advanced Separation System PSA Membrane Membrane Carbon Sequestration Yes (87%) Yes (100%) Yes (100%) Hydrogen Production (MMSCFD) 119 158 153 Coal (TPD) as received 3000 3000 6000 Efficiency (%) (HHV basis) 59 75.5 59 Excess Power (MW) 26.9 25 417 Capital ($MM) 417 425 950 RSP of Hydrogen ($/MMBtu) / ($/kg) 8.18 / 1.10 5.89 / 0.79 3.98 / 0.54 * Conventional gasification technology assumes Texaco quench gasification; advanced gasification technology assumes advanced E-gas gasification. Membrane RD&D is estimated to reduce the cost of hydrogen from coal by 25%. Co-production of hydrogen and electricity can further reduce the cost of hydrogen production by 32%. Source: Hydrogen from Coal, Mitretek Technical Paper MTR 2002-31. July 2002. 50

Gas Separations - H 2 & CO 2 NETL OSTA In-House Research Pd and Pd/Cu alloy membranes, characterization, and standard test capabilities ANL High-temperature ceramic membrane separating H 2 from syngas and water splitting Eltron Research - Coors Tek - Sud Chemie, Inc. -ANL - NORAM Engineering & Construction Co. - WahChang ORNL Microporous inorganic membranes development and fabrication Nexant -Simteche RTI Alternate membrane materials, polymeric reverse selective membranes NETL NETL OSTA OSTA In-House In-House Research Research Fluorinated Fluorinated Hydrocarbon Hydrocarbon Membranes Membranes -LANL Low-temperature approach to H 2 and CO 2 separation via hydrates 51

FutureGen: A Presidential Initiative One-billion-dollar, 10-year demonstration project to create world s first coal-based, zero-emission electricity and hydrogen plant President Bush, February 27, 2003 Produce electricity and hydrogen from coal using advanced technology Emit virtually no air pollutants Capture and permanently sequester CO 2 52

FutureGen Concept Hydrogen Pipeline Oil Pipeline Refinery Electricity and / or Coal-Fired IGCC CO 2 Pipeline Enhanced Oil Recovery Geologic Sequestration 53

Keys Goals of FutureGen Verify effectiveness, safety, and permanence of carbon sequestration Establish standardized technologies and protocols for CO 2 measuring, monitoring, and verification Gain domestic and global acceptance for FutureGen concept Validate engineering, economic, and environmental viability of coal-based, near-zero emission technologies that by 2020 will Produce electricity with < 10% increase in cost compared to non-sequestered systems Produce H 2 at $4/MMBtu wholesale price ($0.48 /gal gasoline eq.) compared to today s price of $0.70/gal gasoline eq. 54

Cost Comparison of Advanced Gas Separation Technologies Resource Technology Hydrogen Cost ($/10 6 Btu) / ($/kg) Year Technology is Available Natural Gas* Steam Methane Reforming, PSA, No Sequestration 5.54 / 0.75 Current Natural Gas* ITM Syngas Generation, Advanced Membrane Separation, CO 2 capture 4.15 / 0.56 2013 Coal Gasification, Shift, PSA, No Sequestration 6.83 / 0.92 Current Coal Coal** Advanced Gasification, Membrane Separation, CO 2 Sequestration Advanced Gasification, Membrane Separation, Solid Oxide Fuel Cell for Co-Production of Power, CO 2 Sequestration 5.89 / 0.79 2015+ 2.40 / 0.32 2020+ Biomass Pyrolysis to bio-oil followed by steam reforming (9-16) / (1.21-2.16) 2015+ Nuclear Sulfur-Iodine Cycle (Themochemical Process) 9.70 / 1.31 2020+ Electrolysis Electricity Cost at 4 cents/kwh (19-22) / (2.56-2.97) Current 55

Opportunities for Coal Gasification Environmentally-preferred coal power generation Near-zero levels of SO 2, NOx, PM, Hg achievable and demonstrated Gasification well suited to CO 2 capture Hydrogen production from coal (FutureGen) Gasification is key element for producing H 2 rich syngas Chemical and fertilizer industries 2003 trade deficit loss of jobs, plant closures Replace natural gas with coal and waste gasification Production of synthetic natural gas Significant interest because of high natural gas prices 56

Gasification - What Needs to be Done Attain status of Technology-of-choice Exploit lower emissions potential and attain preferred environmental selection Lower SOx, NOx, PM, Hg, Heavy Metals, Halides, Toxics Address the CO 2 issue Achieve economic competitiveness Reduce capital and O&M costs Transition from FOAK to nth plant (learning curve) Risk reduction and commercial viability Information exchange on existing experience Additional new plants and demonstrations Technology development Capitalize on existing commercial experience Improvements to baseline technologies Breakthrough technologies 57

GASIFICATION the Benefits Stable, affordable, high-efficiency energy supply with a minimal environmental impact Feedstock Flexibility/Product Flexibility Flexible applications for new power generation, as well as for repowering older coal-fired plants BIG PICTURE Energy Security - -Maintain coal as a significant component in the US energy mix A Cleaner Environment ( reduced emissions of pollutants) -- The most economical technology for CO 2 capture Ultra-clean Liquids from Coal -- Early Source of Hydrogen 58

Visit the Gasification Technology Website at http://www.netl.doe.gov/coal/gasification/index.html 59