Current Status and Perspective of Research and Development on Coal Utilization Technology in Japan

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Current Status and Perspective of Research and Development on Coal Utilization Technology in Japan 20th Annual International Pittsburgh Coal Conference September 15-19, 2003 Ikuo Saito Institute for Energy Utilization National Institute of Advanced Industrial Science and Technology (AIST)

Presentation plan Congratulations on the 20th anniversary Japan s Energy Situation Japan s Energy Policy Current Status and Perspective of Research and Development on Coal Utilization Technology Summary Acknowledgement

Japan s s Energy Situation Compared with the World Table 1 Primary energy supply in major countries (1999) Japan US France Germany UK Primary energy supply (million tons of oil equivalent) 515 2270 255 337 230 Coal 17 24 6 24 15 Oil 52 39 35 40 36 Natural gas 12 23 14 21 36 Nuclear 16 9 40 13 11 Hydro 1.4 1.1 2.4 0.5 0.2 Renewable energy, etc. 2 4 5 1 1 Self-supply rates (%) 20.2 74.4 50 39.4 122.5 Source: IEA Energy Balances of OECD Countries 1998-1999 Weakness of energy self-supply in Japan The energy self-supply rate of Japan is still very low, at about 20%, compared with other major countries

Fig. 1 Change in the final energy consumption by sectors 300 250 200 Index (FY1973 level = 100) 268 225 209 207 189 Passenger vehicle transportation sector Residential sector Transportation sector Commercial/residential sector Commercial sector 150 100 150 107 Freight & public transportation sector Industrial sector 50 0 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 Fiscal year Source: Comprehensive Energy Statistics

Table 2 Change in primary energy supply FY1973 FY1990 FY2000 FY2010 Target case 602 Primary energy supply (million kl of crude oil equivalent) 414 526 604 Oil 77 58 52 about 45 Coal 15 17 18 about 19 Natural gas 2 10 13 about 14 Nuclear 1 9 12 about 15 Hydro 4 4 3 about 3 Geothermal 0 0.1 0.2 about 0.2 New energy 1 1 1 about 3 Source: Comprehensive Energy Statistics Target value of oil dependency rate is about 45% by FY 2010 (%)

Japan s Energy Policy(1) (million t-c) 350 Energy-originating 2 CO emissions 330 310 290 270 Fig.2 Reduction of Energy-Originating CO2 When measures for 1998 and thereafter are not taken When measures decided so far are taken Target Actual level in FY2000: 316 million t-c Actual level in FY1990: 287 million t-c + 29million t-c: + 10% + 20million t-c: + 7 % 347million t-c Implementation of existing measures 307million t-c Additional measures 287million t-c 250 1990 1995 2000 2005 2010 (Fiscal year) Energy conservation / new energy measures Implementation of Keidanren s independent action plan Promotion of nuclear power policy, etc. Energy conservation: - 6 million t-c New energy: - 9 million t-c Fuel change, etc.: - 5 million t-c Total: - 20 million t-c

Japan s Energy Policy(2)! Energy Conservation In addition to measures currently being implemented (approx. 50 million kl), further measures are to be implemented (approx. 7 million kl) focusing on items such as in the Residential Sector including passenger cars and the Commercial Sector including the Service Sector. Approximately 6 million t-c is expected to decrease.

Japan s Energy Policy(3)! New Energy The target for the implementation of new energy is set at 19.1 million kl for FY2010. Moves for the approval of "the Law concerning Special Measures for Promotion of New Energy by General electricity supplier" with measures such as obligating General electricity supplier to use a minimum predetermined level of New Energy. Measures to reduce the burden on the person implementing New Energy (Household Sun Rooms/Advanced Household Solar Systems, Clean- Energy Motor Vehicles) Pushing the public sector to take the lead in implementing equipment and machinery using new energy. Advancement of technological development and verification tests for fuel cells. Increasing the range of new energy (biomass energy, cool energy) Approximately 9 million t-c is expected to decrease.

Fig. Actual Result of Introducing New Energy and Targets of Introduction I for FY 2010 Overall new energy Photovoltaic power generation Solar thermal utilization Wind power generation, etc. Black liquid, waste material, etc. Actual result in FY2000 7,220,000 kl 101 58 490 494 1.2% of the total primary energy supply About 3 times About the same Target for FY2010 19,100,000 kl 14 118 439 134 552 3% of the total primary energy supply Photovoltaic power generation Solar thermal utilization Wind power generation Waste power generation Thermal utilization of waste Biomass (power generation + thermal) Unused energy Black liquid, waste material, etc.

! Fuel Switching Japan s Energy Policy(4) Replace out-dated coal generated power stations with highly effective LNG Combined Cycle power generation Industrial boilers using coal will be converted to using natural gas. Approximately 5 million t-c is expected to decrease.! Adding up the figures obtained by these measures, 20 million t-c is expected to decrease.

Japan s Energy Policy(5) Revision of revenue structure! Revision of oil tax ( Oil and Coal tax) Rearrangement of tax burden structure New tax on coal, increase in tax of LNG and LPG Oil (yen/kl) LNG (yen/t) LPG (yen/t) Coal (yen/t) * Present 2,040 720 670 2003.10-2,040 840 800 230 2005.4-2,040 960 940 460 2007.4-2,040 1,080 1,080 700 Coal for steel manufacturing, coke making and cement making and coal for power generation in Okinawa prefecture is exempted from tax.! Further promotion of energy conservation and new energy development (Reviewing expenditure program of special accounts for energy)

Compatibility between Environmental Preservation and Stability for Energy Supply Zero emission Environmental preservation Natural energy Solar, Wind Renewable energy Biomass New Energy Introduction Technology Wind turbine Gasification of Biomass Gas hydrate Natural gas Green Technology Suppression of Dioxine Hydrogen production Coal GT-CC power generation Deep desulfurization Waste/Municipal waste Plastics waste Oil Coal Ultra heavy oil Stability for energy supply

Basic Research (funded by Ministry of Education, Culture, Sports, Science and Technology) related to coal Specific Area Research (B) Coal Utilization Technology Development Aiming for Solution of Global Environmental Problems from Global Perspective Professor K. Miura (Kyoto University) : Principal Investigator Selected 12 research subjects out of 59 proposals from universities 1999.4 2003.3 (4years), about 440 million yen in total 1) Development of new pretreatment method 2) Development of in-situ treatment technology 3) Basic research supporting enhanced flue gas treatment technology

Fig. 3 Technology Development Strategy related to Coal for the 21st Century (related to METI) 1990 2000 2010 2020 2030 CO 2 Reduction Rate 10% 10-20% 20-30% 30-40% High Efficiency 1 st Generation High Efficiency 2 nd Generation High Efficiency Hybrid Generation Zero Emission Generation PFBC, USC IGCC, SCOPE21, DIOS IGFC, Hypr-Ring HyperCoal H2 production Technology from Coal

Promotion structure of the program related to METI METI NEDO METI:Ministry of Economy, Trade and Industry NEDO:New Energy and Industrial Technology Development Organization CCUJ AIST Private sector, universities, etc. AIST:National Institute of Advanced Industrial Science Technology CCUJ:Center for Coal Utilization, Japan Project Funding Joint research project

CCT RD&D in Japan (1) High Efficiency Combustion Technology Power Generation Technology Advanced Pressurized Fluidized Bed Combustion Technology (A-PFBC) Integrated Coal Gasification Combined Cycle Power Generation System (IGCC) Integrated Coal Gasification Fuel Cell Combined Cycle Power Generation System (IGFC) HyperCoal Power Generation System Industrial Technology Super Coke Oven for Productivity and Environmental enhancement toward 21st Century (SCOPE21)

CCT RD&D in Japan (2) Multi Purpose Coal Utilization Technology Substitute Oil Production Technology Coal Liquefaction Technology (BCL, NEDOL) Substitute Natural Gas Production Technology Dimethyl Ether Production Technology Technology of Hydrogen Production from Coal with CO2 Recovery System (Hyper-RING)

PFBC! Bubbling type PFBC has been commercialized! RD&D 71 MW as a national project at Wakamatsu Coal Utilization Technical Center of J-power (Electric Power Development Co., Ltd.) (started its operation in Sep. 1994) Gross thermal efficiency: 37.5%! Commercialized 85MW Tomato-Atsuma Power Plant No. 3 Unit of the Hokkaido Electric Power Co., Inc. (started its operation in March 1998) 40.1% 250MW Ohsaki Power Plant No. 1 Unit of the Chugoku Electric Power Co., Ltd. (started its operation in Dec. 2000) 41.5% 360 MW Karita New No. 1 Unit of Kyushu Electric Power Co., Ltd. (started its operation in July 2001) 42.8%

Fig. 4 Super Coke Oven for Productivity and Environmental enhancement toward 21 st Century (SCOPE21) Fine coal Hot briquetting machine Coarse coal 350~400 350~400 Emission free transporting system Emission free charging system Rapid heating preheater Coal Fuel Dryer Hot gas generator Emission gas free pusher Coke oven Tightly sealed door Regenerat or Wast e gas Closed transporting system 750~ 850 1000 Coke 150~200 Advanced Coke Making Process (SCOPE21) CDQ with reheating system

Fig. 5 Schedule of SCOPE21 Project Basic Research Fundamental Technology Development Pilot Plant Test 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Bench Scale Tests Construction Test Operation

Fig. 6 SCOPE21 Pilot Plant

IGCC! Based on the test results by a pilot plant using an air-blown pressurized two-stage entrained gasification furnace with a coal processing amount of 200 t/d from 1991 through 1996! Demonstration Plant (Nakoso, Iwaki City, Fukushima Prefecture, about 200 km north of Tokyo) Capacity 250 MW(1600 ton/day) Gasifier air-blown, entrained flow gasifier/ 2.5MPa Gas clean-up Cold gas clean-up using MDEA Gas turbine 1200 C

Fig. 7 Schedule of IGCC Demonstration Plant Program Fiscal year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Preparatory verification tests Demonstration plant tests Design Construction Operation tests Environmental impact assessment

Fig. 8 Integrated Coal Gasification Combined Cycle Power Generation System (IGCC) Gas Turbine Gas Clean Up Gasifier Specifications Capacity Net Efficiency Gasifier Gas clean up Gas Turbine 250MW (1,600t/d) 40.5% Air blown, entrained flow gasifier MDEA, Lime stone 1,200 O C Conceptual Drawing of IGCC Demonstration Plant

IGFC (EAGLE Project)! Integrated coal Gasification Fuel Cell combined cycle (IGFC)! Coal Energy Application for Gas, Liquids and Electricity! Pilot Plant (Wakamatsu, Fukuoka Prefecture in Kyushu) Coal feed 150 ton/day Gasifier oxygen-blown entrained flow gasifier (two-stage tangential flow type in a single chamber) /2.5MPa Gas clean-up Cold gas clean-up using MDEA Sulfur compound <1 ppm, Halogen compound <1 ppm Ammonia compound <1 ppm, Dust <1 mg/m3n

Flow Diagram of the EAGLE Pilot Plant Coal Gasification Unit Gas Clean - Up Unit Gasifier Syngas Cooler Precise Desulfurizer Pulverized Coal COS Converter MDEA Regenerator Limestone Absorber Filter Slag Char GGH Water Scrubber MDEA Absorber Acid Gas Furnace Oxygen Nitrogen Incinerator HRSG Stack Air Compressor Rectifier Air Comp. GT G Air Separation Unit Gas Turbine Unit

Fig. 9 Integrated Coal Gasification Fuel Cell Combined Cycle Power Generation System (IGFC) Schedule of EAGLE Project (Fiscal year) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 FS/ Component Test Basic design/detail Design '02.3 Charging coal '03.3 Start of operation Fabrication/Construction Operational Studies

Fig. 10 View of EAGLE Plant (IGFC) in Fukuoka Specification Coal Feed Pressure 150 t/d 2.5MPa Coal Gasification Oxygen- Blown Entrained Flow Gasification

HyperCoal power generation system Coal Organic solvent extraction Extract (organic matter) Feedstock for Gas Turbine Minerals (ash) HyperCoal (ashless coal) > 60% Net : 48% Residue (organic+ash) High Net Power Output CO 2 Emission Reduction

HyperCoal firing power generation system Net thermal efficiency:48 48% (HHV) Burner Temp < 90 o C 1.5 MPa HyperCoal feeder Particle -74µm m (>95( >95%) Ash < 200ppm Stack N 2 Air (350 o C, 1.5MPa) Combustor (1350 o C) Combusted gas (1350 o C) 130 o C Heat exchange 50 o C Compressor Gas turbine G Heat recovery De-SO x unit. Air G Steam turbine Exhaust (180-200 o C)

HyPr-Ring H2 production process from coal with high efficiency Integration of water carbon reaction, water gas shift reaction and CO2 absorbing reaction in a single reactor Temperature : 650C, reaction pressure : 6MPa or more Absorption of CO2 using calcium oxide (CaO) Existence of absorbent moves equilibrium of shift reaction and internally gives the energy into water gas reaction. Cold gas efficiency : over 75%, S contents in gas : <1 ppm CO2 emission : same level as natural gas Coal (Biomass, Heavy oil) Hydrogen Water Heat HyPr-RING CO2

Fig. 11 Outline of Hypr-RING process flow Hydrogen rich clean gas Reactor Coal CaO Water CO2 Recycle water Separator CaCO3 Ash Calcination furnace of CaCO3

Summary! Japan s energy situation and energy policy were introduced. To clear COP3 agreement, necessity of further effort of energy conservation and new energy development were emphasized.! Current status of research and development on coal utilization technology in Japan were presented. Environment around coal is getting worse from the point of view of environmental preservation, but it is emphasized that coal energy is still very important and development of highly efficient coal utilization technology should be sustained.

Acknowledgement! New and Renewable Energy Division, Agency of Natural Resources and Energy (ANRE), METI! Coal Division, ANRE, METI! Environmental Industry Office, Industrial Science Technology Policy and Environment Bureau, METI! New Energy and Industrial Technology Development Organization (NEDO)! Center for Coal Utilization, Japan (CCUJ)! Japan Coal Energy Center (JCOAL)! J-Power (EPDC)! Mr. Yusuke Tadakuma (NEDO)! Dr. Koji Ukegawa (AIST)! Dr. Hiroyuki Hatano (AIST)! Mr. Kenji Kato (Nippon Steel Corporation)! Professor Masakatsu Nomura (Osaka University)

Thank you for your attention

11 Promotion Scheme based on National Support System(1) Basic Research Grant METI Fundamental Research Project METI NEDO RITE Seeds discovery Private sector, universities, etc. Global environment conservation related to industrial technological development promotion project (seeds discovery) Leading research project on global environment industrial technology RITE, etc Program-based development of CO2 fixation and effective utilization technologies Research and development for geological storage technologies of CO2 Study of Technology for Environmental Assessment in CO2 Ocean Sequestration to mitigate the Climate Change Research and Development of efficient energy utilization and CO2 fixation technologies for effective reuse of paper wastes Development of CO2 recovery and utilization technology using coal and natural gas Development of large-scale carbon dioxide fixation technology

11 Promotion Scheme based on National Support System(2) Achievement of the Kyoto Protocol targets Practical Application METI NEDO Support of technological development for practical application International research on the global environment International Cooperation METI NEDO Support of international cooperation and collaborative research on the global environment RITE and Private organizations RITE and Private organizations, etc. Technological development for practical application of CO2 fixation and effective utilization Industrial technological development promotion project for achieving the Kyoto Protocol targets Global environment international research promotion project Energy environment international collaborative research support project Global environment international cooperation promotion project

Research and development for geological storage technologies of CO2 Selection of site and targeted layer for injection Fukasawa-cho, Nagaoka City, Niigata Prefecture, Japan Drilling of injection well Drilling of observation well Three observation wells have been drilled for monitoring the behavior of injected carbon dioxide, such as migration, in the aquifer Construction of injection facility Injection and observation experiment The injection of carbon dioxide : from early July 2003, 10,000 tones in total over 18 months Injection rate : 20 tones/day.

Study of Technology for Environmental Assessment in CO2 Ocean Sequestration to mitigate the Climate Change (SEA-COSMIC)! Clarification of behaviors of liquid CO2-seawater at injection! Research on technologies of CO2 transport to intermediate depths of the ocean and dilution! Laboratory experiment on CO2 impacts on marine organisms! Development of models to assess environmental impacts near the area of CO2 injection! International joint research of CO2 injection at the open ocean site as one of the CTI activities! Supporting survey Study on the research trends concerning CO2 ocean sequestration in Japan and abroad Study on the optimization of the total system

Expected CCT for 21st Century (1) High Efficiency 1st Generation (1990-2000) Pressurized Fluidized Bed Combustion (PFBC) Supercritical Steam Power Generation System (USC) High Efficiency 1st Generation (2000-2010) Integrated Coal Gasification Combined Cycle Power Generation System (IGCC) Super Coke Oven for Productivity and Environmental enhancement toward 21st Century (SCOPE21) Direct Iron Ore Smelting Technology (DIOS)

Expected CCT for 21st Century (2) High Efficiency Hybrid Generation (2010-2020) Integrated Coal Gasification Fuel Cell Combined Cycle Power Generation System (IGFC) Hydrogen Production from Coal with CO2 Recovery System (Hyper-RING) Co-production Technology with Power and Chemical Raw Materials Zero Emission Generation (2020- ) Hydrogen Production Technology from Coal to support CO2 Free Energy Technology to support Integration of Power Generation, Steel Making and Chemical Industry

Dimethyl Ether Production Technology (DME) Schedule of DME Synthesis Plant Construction and Operation 100t/d Pilot Plant Construction 100t/d Pilot Plant Operation 2002 2003 2004 2005 2006 Back-up Study Design and Evaluation of Commercial Plant

Dimethyl Ether Production Technology (DME) Solvent Tank, Others Solvent Tank, Others Thermal Oil Unit Thermal Oil Unit Pump House Pump House CO2 Removal DME Synthesis DME Separation / Purification Compressor House Compressor House DME Storage Tank DME Storage Tank Synthesis Gas Production Synthesis Gas Production Grand Flare Grand Flare View of Pilot Plant (5 t/d) in Hokkaido

Advanced Pressurized Fluidized Bed Combustion Technology (A-PFBC) Test Project Schedule A-PFBC PDU 1996 1997 1998 1999 2000 2001 2002 Basic Plan Elementary Test / FS Design Manufacturing Installation Test Run / Evaluation

Advanced Pressurized Fluidized Bed Combustion Technology (A-PFBC) PDU of A-PFBC Desulfurizer Partial Gasifier Oxidizer

Variation of ash content in HyperCoal Target Level 0.02% (200ppm)