Overview of CO2 Capture Technologies, System Integration, and Costs Presented to the World Bank CCS Training Session Robert Hilton, Vice President, August 25, 2011
Alstom: Three Activities Leading global provider of equipment & services for Power Generation Rail Transportation Power Transmission Alstom in the U.S. - P 2 Alstom 2011
Strong & Sustained Sales, Worldwide Grid $5.1 bn 17% 27% Transport $8.0 bn Key Facts & Figures: 93,500 employees in 100 countries 6% increase in sales from 2009/10 to 2010/11 Power $16.8 bn 56% Total sales 2010/11: More than $29 billion USD Steady increase in R&D investment to more than $1 bn USD in 2010//11 Leading provider of innovative clean technology solutions Alstom in the U.S. - P 3 Alstom 2011
Power Technologies for all Energy Sources Gas Hydro Coal Nuclear Oil Life Cycle Management Wind Alstom in the U.S. - P 2 Alstom 2011 Geothermal Biomass Solar
CO2 Capture Solutions Power Plant with CO2 capture Post-combustion (New + retrofit) Oxy-combustion (New + retrofit) Pre-combustion (New only) Source: Vattenfall Solutions developed by Alstom CCS must be also applied to the installed base
CCS Landscape: U.S. Projects Important validation projects completed to-date Project pipeline includes: Project Status Timeline AEP Mountaineer II On-hold N/A Basin Electric On-hold N/A Summit FEED 2016 Kemper Construction 2014 HECA Negotiation 2017 NRG FEED 2016 FutureGen FEED 2017 Chilled ammonia CCS project AEP Mountaineer Plant New Haven, WV Alstom in the U.S. - P 10 Alstom 2011
CCS Landscape U.S. Projects FutureGen 2.0 B&W Oxy-Combustion DOE: $1.048B Saline Storage 1.0 MTPY 200 MWe (gross) Key: 80% DoE Cost Share EOR HECA GE Gasifier/Rectisol CO 2 Capture Total: ~$2.8B; DOE: $408M EOR 2.0 MTPY 250 MWe (net) Summit TX Clean Energy Siemens Gasifer/Rectisol CO 2 capture Total:~$1.7B; DOE: $450M EOR Storage 3.0 MTPY 270 MWe (net) NRG Fluor Econamine FG Plus SM Total: $334M; DOE: $167M EOR Storage 0.4MTPY 60 MWe Slipstream Southern Company Transport Gasifier/Selexol CO 2 Capture Total:~$2.9B; DOE: $270M EOR Storage 3.0 MTPY 582 MWe (net) AEP Alstom Chilled Ammonia Total: $668M; DOE: $334M Saline Storage 1.5 MTPY 235 MWe Slipstream 50% DoE Cost Share Note: Southern Company also has 20% rate increase While Summit and HECA have yet to conclude financing Alstom in the U.S. - P 11 Alstom 2011
CCS Landscape: U.K. - Projects Government commitment to 4 demo projects - 3 coal, 1 gas 1 st demo in negotiation - Applications for 2-4 to launch by end 2011 9 other projects bidding for funding - 7 in running for add l EU funding Decision by end 2012 - Projects clustered in Scotland and Humber/Tees Alstom in the U.S. - P 14 Alstom 2011
CCS Landscape: Europe - Projects European Union commitment to fund up to 12 demos 6 demos already funded at 180m each - 2 Oxy-combustion - 3 Post-combustion (amines) - 1 IGCC 3bn fund set to be awarded in 2 nd half of 2012-13 projects competing for up to 8 grants Working toward mix of post- pre- and oxy-combustion Alstom in the U.S. - P 16 Alstom 2011
CCS Landscape: Asia - Projects Australia - 2 demo projects under active development - Delta - 100,000 tpy post combustion 2014 start - Callide -100,000 tpy oxy-firing 2011 start China 4 significant projects - GreenGen - IGCC - full capture by 2018 (power generation) - Shidongkou amines 100,000 tpy 2011 start-up (power generation) - Shenhua coal liquifaction 100,000 tpy 2011 start (industrial) India - Drafting mission document on carbon capture, exploring CCS pilots *tpy = tons per year Alstom in the U.S. - P 18 Alstom 2011
A comprehensive study of CCS costs Based on: Our substantial investment in CO 2 capture technologies since 1998 The knowledge and experience gained from our 13 CCS pilot and demonstration projects: 7 pilot projects 6 demonstration projects Our long experience on conventional power plants over many decades: experience in designing and manufacturing key components: boilers, gas and steam turbines, air quality control systems experience in integrating components and processes in power plants Costs of CCS - PJ - 25 May 2011 - P 11
Alstom activity on pilots and demonstrations 1 st and 2 nd generation CCS Operating Coming 2 nd GEN Vattenfall Schwarze Pumpe Germany - 30 MWth Oxy - Lignite AEP Mountaineer USA - 58 MWth Chilled Ammonia - Coal DOE/Alstom Windsor US 3 MWth Chemical looping - Coal TCM Mongstad Norway - 40 MWth Chilled Ammonia - Gas Pre-commercial Projects NER300 appl. NER300 appl. EDF Le Havre France 5 MWth Adv. Amines - Coal Dow Chemical Co. USA, West Virginia Advanced Amines - Coal Total Lacq France - 30 MWth Oxy - Gas Drax - Selby UK - 426 MWe Oxy Hard Coal Vattenfall Jänschwalde Germany - 250 MWe Oxy - Lignite Transalta Canada - >200 MWe Post - Coal 2 nd GEN NER300 appl. NER300 appl. Alstom BSF Windsor US - 15 MWth Oxy - Coals Selected for receiving EEPR funding Costs of CCS - PJ - 25 May 2011 - P 12 RFCS EU - Darmstad Germany 1 MWth Chemical looping - Coal PGE Belchatow Poland 260 MWe Adv. Amines - Lignite Selected by Alberta and Federal Canadian funding AEP Mountaineer USA 235MWe Chilled Ammonia - Coal CET - Getica (Turceni) Romania >250MWe Chilled Ammonia - Lignite Selected by US DOE to receive CCPI Round 3 funding
CCS Cost Study Key Assumptions Study based on New Plant in Europe Add-on costs for energy penalty and increase cost of electricity generation rises Considers cost of electricity generated with CCS & cost of CO2 avoided Two capture technologies: post-combustion and oxy-combustion using two fuels: hard coal and gas Coal and gas (combined cycle) plants with CCS operating as base-load CO2 capture rate of 90% Alstom in the U.S. - P 23 Alstom 2011 Conservative learning curves up to 2030; based on Rubin/CMU curves
Pilots show that CCS works: 90 % CO2 Capture and 99% CO2 Purity is demonstrated Feasibility of integrated capture transport storage established on a power plant Energy penalty < 20%, and soon at 15% Solid base for design and cost control 20% 19% 18% 17% CCS PLANT ENERGY PENALTY % AGAINST MWe net REF PLANT CCS OXY CCS PCC Oxy and Post have good potential 16% 15% 15% Costs of CCS - PJ - 25 May 2011 - P 14 14% 2010 2015 2020 2025 2030 2035 Hardcoal CCS commercial plant size - Europe Source: Alstom
Results (1) Hard coal Costs of electricity generated (*): 84/MWhr in 2015 = 70% more than the same plant without CCS 73/MWhr in 2030 = 45% more than the same plant without CCS The additional costs (*) are equivalent to: in 2015, 54 per tonne of CO2 avoided In 2030, 37 per tonne Oxy and post-combustion technologies deliver the same performance by 2030 Energy penalty of 15-16 % can be realistically targeted by 2030 Lower total cost of electricity than solar, geothermal and off-shore wind Competitive with nuclear, on-shore wind and large hydro Coal with CCS is cheaper than onshore wind as well when additional system costs for intermittent renewables are counted (*): PCC case Costs of CCS - PJ - 25 May 2011 - P 15
Results (2) Gas Costs of electricity generated (CoE): 65/MWhr in 2015 = 50% more than the same plant without CCS 55/MWhr in 2030 = 30% more than the same plant without CCS The additional costs are equivalent to: in 2015, 74 per tonne of CO2 avoided In 2030, 49 per tonne Energy penalty of 15-16 % can be realistically targeted by 2030 Lower total cost of electricity than wind (off- and on-shore), solar and geothermal Competitive with nuclear and large hydro Costs of CCS - PJ - 25 May 2011 - P 16
CCS: Essential & Affordable on Gas and Coal Euro / MWh net 100 HARDCOAL - EUROPE GAS - EUROPE 90 80 70 60 50 40 30 20 10 0 Source: Alstom PCC 84 73 +71% +46% 49 50 REF CCS REF CCS 2015 2030 Transport &Storage Fuel Cost CCS/Coal REF Capex & Opex CCS/Gas REF Capex & Opex 65 55 +49% 43 +33% 42 REF CCS REF CCS 2015 2030 CCS Cost of Electricity Impact is lower on gas than on coal Cost increase <50% by 2030 for both Coal and Gas Cost of CO2 avoided: 37 /t for coal & 49 /t for gas in 2030 Alstom in the U.S. - P 24 Alstom 2011
CCS Cost Study - U.S. Implications NETL analysis shows some similarities to Alstom findings Alstom findings shared with key U.S. Stakeholders - Customers, Congress, DOE, EPRI Alstom planning U.S. and Asia studies - Fall 2011 Alstom in the U.S. - P 25 Alstom 2011
CCS Cost Comparison / MWh CoE - Low Carbon Technologies Ordered in 2011-2016 Period 400 300 200 Reference case 100 0 65 84 Nuclear Hydro Geothermal CCGT CCS 2015 Onshore Wind PC Hardcoal CCS 2015 Offshore Wind Solar PV Solar Thermal Source : Alstom analysis 2011. CCS 2015 costs, including on shore T&S and CO 2 price (Flue Gas Recirculation case for CCS Gas CC, average Amine/Oxy for CCS Hardcoal) With realistic assumptions and variation range, CCS on Coal & Gas Combined Cycle is competitive as of 2015 Alstom in the U.S. - P 26 Alstom 2011
CCS Cost Study Overall Results CCS on gas or coal is cost competitive with wind before cost reductions from learning effects - With same FIT given to wind, CCS will be commercially viable in 2015 Learning effects will increase CCS competitiveness against more mature renewables A target of CO2 avoided cost in the range of 30-35/t is realistic by 2030 for coal CoE uplift in 2030 will be 45% for coal & 30% for gas - CCS on gas is thus commercially viable and cheaper than CCS on coal Carbon price of 43 in 2025 means coal w/ccs will be commercially viable without FIT - Gas, at a price of 54 in 2026 The main determinant of CoE remains the fuel price, especially for gas Alstom in the U.S. - P 27 Alstom 2011
CCS Deployment How Do We Get There Address the Challenges to CCS Deployment Increase Financial Support Address Permitting & Regulation Build Rate Recovery Framework Establish carbon price, policy or regulatory framework Equal stance for CCS and other lowcarbon options Validate Storage Sites Educate the Public Subsidize sequestration Sell credits into existing carbon market Uniform sector or regional wire charge EOR royalties or other funding diversions Alstom in the U.S. - P 29 Alstom 2011
What Needs To Be Done Funding Establish funding mechanism for large-scale demonstration Market Re-engage discussions on policy framework for regulation and financial support Technology Return to critical path for CCS evolution, drive down cost curve to meet customer needs CCS Deployment & Progress Towards Climate Goals Alstom in the U.S. - P 30 Alstom 2011
Thank You alstom.com Alstom in the U.S. - P 31 Alstom 2011