The European Experience Bernhard Fischer E.ON 2009 Summer Seminar August 3-4, 2009
European Zero Emission Platform aims to enable fossil fuel power plants to have zero CO 2 emissions by 2020 Members Goal Results EU has established platform as expert consulting body ZEP-Members include European utilities, petroleum companies, equipment suppliers, scientists, geologists, and NGOs. Based on the vision of the future, ZEP aims to establish and implement a strategic research agenda promote highly efficient power plants with near-zero emissions: CO 2 capture and storage and high efficiency technologies (1) be open and accessible to all interested stakeholders In 2006, technology and deployment roadmap outlined In 2008, in-depth study and proposal supported by McKinsey how an EU CCS-Flagship Programme could work in practice and how to implement it including technological, geographical, political, timing, economic and commercial aspects (1) In terms of plant efficiency, reliability and costs 2
Early CCS demonstration projects can potentially take advantage of European and national funding schemes European Economic Programme for Recovery Financial stimulus through rapid building of major infrastructure across the EU Over 1B allocated to CCS demonstration projects across 7 Member States Applications in July 09; investments in 2010 E.ON with two CCS projects European Union CCS Flagship Programme 300M CO 2 Emission Certificates for demonstration of CCS and innovative RE projects (~ 3B - 12B depending on /t/co 2 ) Projects must be in operation by 2015 Application process being developed Germany UK Netherlands E.ON focus countries Currently only public / private partnerships for smaller-scale pilots and R&D Support for high efficiency PP in discussion Competition to fund CCS demo project launched 2007 Award mid 2011 Further CCS incentives discussed No funding proposals as yet; funding options for CCS being discussed with the government Ô Apart from funding schemes, implementation of storage legislation is a prerequisite for the introduction of CCS 3
E.ON is active on all CCS R&D pathways Priorities set on high efficiency and post combustion capture 1. High efficiency: 50plus, Wilhelmshaven Efficiency >50% through high temperature and pressure: 1,300 F/>5,100 psi (1) Development of new high performance nickel based alloys 508 MW net, operation after 2015 (final decision pending) Option: post combustion capture retrofit 2. Post combustion capture: Pilot programme and demo options 50plus, Maasvlakte and Kingsnorth Ambitious pilot programme with leading supplier Diversified, international portfolio of demo options: candidates for European and national funding programmes 3. Pre combustion capture: FutureGen Alliance 275 MW IGCC plant incl. storage E.ON US active partner Project recently restarted and decision pending 4. Oxyfuel R&D activities (ADECOS, OXYCOAL-AC) E.ON UK with own test rig (1) 700 C / > 350 bar 4
Development Path for Post Combustion Capture and Storage Phase I Phase II Capture Development, Selection Pilot Plants < 10 MW el Optimisation Scale-Up Demo Plants from 30 MW el to n x 100 MW el Storage Development, Selection Expl. Engin. Constr. Exploration Engin. Operation Depleted Gas Fields Engin. Constr. Op. Saline Aquifers Commercial Operation 2008 2010 2012 2014 2016 2018 2020 5
Phase 1: E.ON launched a pilot programme for post combustion capture with world leading suppliers 0,5 MW el 1,5 MW el 1 2 Maasvlakte, NL Karlshamn, S Consortium: <1 MW el 3 Staudinger, D Support: 0,5 MW el 4 Electrabel E.ON Partner: Mitsubishi Heavy Industries Status July 2009 4 MW el 5 MW el tbd 7 5 tbd, D 2008 2009 2010 2011 2012 2013 2014 6 Wilhelmshaven, D tbd, D Design, Erection Operation Option 6
As an international company, E.ON has attractive options for the CCS demonstration phase Possible locations for CCS demonstration plants Maasvlakte Block 3 2012 (with GdF Suez/Electrabel) Project 50plus after 2015 optionally with CCS Study Killingholme Kingsnorth Block 5 2013 Killingholme UK Kingsnorth depleted gas fields Netherlands Maasvlakte Wilhelmshaven Germany Project Weser aquifer after 2015 Candidates for the European Economic Programme for Recovery (1) and the EU Flagship Programme (2010) (1) Kingsnorth and Maasvlakte only 7
One example of E.ON s international, broad R&D approach: E.ON committed to FutureGen project 275 MW IGCC plant with permanent CO 2 storage Public Private Partnership: alliance of utilities and mining companies E.ON US represented by Paul W. Thompson (Chairman of the FutureGen Board) Doug Schetzel (Chairman of Technical Committee) Recent decision with DOE to proceed with the project for next ten months: Completion of preliminary design and refinement of cost estimate Development of funding plan and expansion of sponsorship group Final decision about the project will be taken afterwards DOE anticipates a contribution of 1,07 B US$ Remaining funding gap 1,3 B US$ to be secured from existing and new partners and non federal funds 8
The E.ON CCS engagement is part of the innovation programme to develop key technologies Coal Nuclear Renewables End use efficiency High efficiency CCS Generation III+ Wind Offshore Upgraded bio gas Marine Technology Gas heat pump www.eon.com/ccs 9
Backup Slides 10
CCS as a broad challenge CCS High efficiency CCS technology development Scaling, Ability to control Economics Legal framework Public acceptance 11
ZEP recognised the great importance of CCS CCS is one of the measures required to meet abatement aspirations EU emissions, Gt CO 2 equivalent/ year, 2030 IEA reference scenario 4.2 Energy efficiency 0,5 Renewables growth 0,2 Other IEA alternative policy scenario 0,3 3.2 CCS potential IEA alternative policy scenario incl. CCS 2.8 Ambitious EU target (1990 level - 30%) 12 0.4 EU target (1990 level - 20%) Source: ZEP 2008 Need for CCS! Save on resources = Develop high efficient PPs Reduce emissions = Introduce CCS
Key Challenge: Overcoming the Economical Barrier Diversified and Prioritised R&D Lack of Technological Maturity Economic Viability 20-40 /t Range of CO 2 Market Value Finance Gap CO 2 Avoidance Cost 10-12 EU CCS Demo Plants need 6-10 bn financial support Limited Time Period 2010 Research & Development Phase 2015 2020 Demonstration Phase Implementation Phase 13
CCS needs a cooperation between politics and industry EU 300 Mio. certificates for CCS und Renewables Max. 15% per project EEPR for selected projects Industry R&D Engagement Investments power plants Germany National auction revenues (1) : before 2012: 0.4 1.2 B after 2013: between 6 10 B and 12 20 B in 2020 200 600 M? 1 B + X??? CCS Demo Project Costs > 2 B CCS cost from 0.6 to 1 B (1) before 2012: 45 M certificates p. a., after 2013 estimated, based on 50 to 90 B revenues from auctions on EU level Sources: ZEP / McKinsey 2008 14
E.ON with promising CCS demo candidates of various profiles CCS @ 50plus, Wilhelmshaven High efficiency power plant (final decision pending) Storage available Large Aquifers with large capacity in Northern Germany Depleted gas fields nearby (limited capacity) Long term synergies with other power plants possible (infrastructure!) CCS @ MPP3, Rotterdam New state-of-the-art power station already in construction Broad political support by authorities GdF Suez is partner, synergies by Rotterdam Climate Initiative Off-shore storage site available CCS @ Kingsnorth, Kent, UK Government support for post combustion capture (competition ongoing), further incentives on CCS in discussion, potential support for additional 3 demo projects New power station planned (final decision pending) Off-shore storage site available Ô Final decisions pending evaluations being carried out 15
Why do we need several Pilot Projects? Qualification of suppliers Have partners from power industry as well as chemical engineering companies Have several options for starting on an appropriate learning curve Proof technical and commercial viability for next steps 45 m No winning capture technology visible today Hands on experience with operators view we are no longer in the lab! 16
CATO Pilot Plant Absorber Stripper FGD Absorber Unit 5 17
Main R&D achievements from CATO & CATO-2 (TNO Pilot Plant) Project and Goal CATO basic R&D program successfully completed 2004-2008 CATO Post Combustion Capture Pilot Plant operational at Power Station Maasvlakte CATO-2 program for applied R&D for complete CCS chain under development CATO-2 will run 2009-2013, 95 M, of which 50 % governmental funding Maasvlakte demo development is one of main topics in CATO-2 E.ON Benelux leading industrial CATO-2 sponsor REMARKS: Development Partnership between Siemens and TNO (outside CATO) Results MEA results of CATO pilot were comparable to results from Esbjerg plant The CATO pilot plant possesses good and comparable quality and capacity for performing CO 2 capture work and research work The use of amino acid salts leads to a good operability, high capture capacity, even at low regeneration temperature in CATO pilot plant REMARKS: Extended test program will be part of CATO-2 18
Post Combustion Capture Pilot Plant at Staudinger Absorber Stripper FGD Absorber Unit 5 19
Main R&D achievements from POSTCAP (Siemens Pilot Plant) Project and Goal Post Combustion Capture Pilot Plant Project at Power Station Staudinger Siemens Capture Technology Development 3 years project (started End 2007) Funded by German Ministry of Economic Affairs REMARKS: Development Partnership between Siemens and TNO released June 2009 Results Initial solvent (amino-acid-salt) identified and characterized and process design fixed Permits for construction and operation received Construction progressing on schedule Start of operation planned for End of July Project provides insight for E.ON staff into solvent development, capture process design and evaluation REMARKS: Tests in CATO-Pilot Plant indicate that amino-acid-salts (form TNO) are slightly more energy efficient than MEA 20
Pilot scale tests of Chilled Ammonia CO 2 - separation in Karlshamn finalized in 2010 21
Main R&D achievements from Chilled Ammonia Karlshamn Project and Goal Chilled Ammonia Process (CAP) Pilot Plant Karlshamn Project Partner: Alstom 3 year project starting 2007, with ongoing discussions of a second phase incl. process improvements REMARKS: More partners have shown interest to join the pilot plant in Karlshamn Phase 2 will include a case study of CAP applied to a demonstration/commercial size plant Results Pilot plant erected and in commissioning 500 hours of operation so far Over 90% capture demonstrated at ~70% flow rate 80% capture demonstrated at 100% flow rate Design concentration of ammonia not yet reached No show-stoppers for the CAP Technology found, although minor pilot plant related issues have been identified To early to say anything on energy demand of the process REMARKS: A thorough evaluation of the energy consumption will be performed as soon as stable operation at design point occur 22
Thank you! www.eon.com/ccs 23