Ammonia, Carbon Capture and Gas Turbine ensure U.S. Energy Independence

Similar documents
Ammonia, Carbon Capture and Gas Turbine ensure United States Energy Independence

WTO Workshop on Environmental Goods and Services. September 25, 2009 Thaddeus Burns Senior Counsel IP & Trade

Profitably Reducing CO2 by Recycling Energy Some Convenient Truths

Green Energy for Africa: Stranded Gas or Coal and CO 2 -Enhanced Oil Recovery

Renewable Energy: Wind Energy

Powergen International 2003 IMTE AG

Renewable energy in Europe. E-turn 21 workshop Cologne, 10 May 2006

Halesworth U3A Science Group

Overview of CO2 Capture Technologies, System Integration, and Costs

David Popp The Maxwell School of Citizenship and Public Affairs Syracuse University

L A Z A R D ' S L E V E L I Z E D C O S T O F E N E R G Y A N A L Y S I S V E R S I O N 7. 0

Vergnet SA presentation RENEWABLE ENERGY CONFERENCE 24/11/2010

Climate Policies and Carbon Capture and Storage in the Dutch Power Sector

EU Climate Change & Energy Policy and Nuclear Fission Research

Phasing out nuclear power in Europe Rolf Golombek, Finn Roar Aune and Hilde Hallre Le Tissier 39th IAEE International Conference Bergen, June 2016

Gas & Steam Turbines in the planned Environmental Goods Agreement

Finland Energy efficiency report

Competitive energy landscape in Europe

Watt About Energy in the Northwest

Renewable Energy Sources in EU - Current status, future developments and challenges

IFC s Approach to Climate Change in the Electricity Sector

Long-Term Policy: Concepts, Methods, Industry Practice

Recycling Energy: Profitable Climate Change Mitigation by

Latvia Energy efficiency report

Reference Code: GDAE6521IDB. Publication Date: March 2015

(How) can the European power market be decarbonized to 2050, without CCS? Lasse Torgersen CenSES årskonferanse Oslo 7/

Update on CCS Project in the Tees Valley.

CURRENT AND FUTURE ENERGY SOURCES OF THE WORLD

Renewable Energy Corporation RIGHT HERE IN COPENHAGEN

John Gale. General Manager 58 th WPFF Meeting Friendship Hotel, Beijing, China. 9 th to 10 th June 2010

CCS - Commercially Viable but a Political Priority?

SAMPLE. Reference Code: GDAE6529IDB. Publication Date: April 2015

Understanding the Scale of the Problem: US Energy Sources and CO2 Emissions

SAMPLE. Reference Code: GDAE6535IDB. Publication Date: May 2015

IN THE NAME OF ALLAH, MOST GRACIOUS, MOST MERCIFUL

Croatia Energy efficiency report

Contribution of Renewables to Energy Security Cédric PHILIBERT Renewable Energy Division

The means of future energy production in Scotland must meet the following criteria:

Netherlands Energy efficiency report

Development of Renewable Energies at Iberdrola

Levelized Cost of New Generation Resources in the Annual Energy Outlook 2012

The State of Energy and Power Generation/ Consumption in China

The Brazilian Conundrum: More Hydropower, Greater Greenhouse Gas Emissions

a) Environment b) Finite supply of fossil fuels c) Lack of substitutes d) Good for economy Why Energy from Alternative Sources? Why Wind Energy?

Hydrogen Production Using Nuclear Energy

What do we (not) know about Europe s electricity system in 2050?

Energy Generation Planning in 2015 and 2025

Advanced Renewable Incentive Schemes. Simon Müller Senior Analyst System Integration of Renewables International Energy Agency

Assessing the Impact of the Diffusion of Shale Oil and Gas Technology on the Global Coal Market

Rural Renewable Energy Development & Promotion Policies in China

INTERACTIONS BETWEEN CO2 AND RENEWABLE ENERGY TARGETS IN EUROPE AN ASSESSMENT WITH POLES MODEL

Trends in Clean Energy Investment

Available online at ScienceDirect. Energy Procedia 63 (2014 ) GHGT-12

Clean coal technology required for the future and development of IGCC technology.

European Commission. Communication on Support Schemes for electricity from renewable energy sources

Distributed Generation Technologies A Global Perspective

Politique et sécurité énergétique dans le contexte des nouvelles énergies

Renewable & Alternative Energy Resources: What s the difference? 2

CCS and Its Economics

Belgium Energy efficiency report

ROYAL SOCIETY OF CHEMISTRY TECHNOLOGY IN THE USE OF COAL

Electrification of chemistry

DI Bioenergy Danish Bioenergy Association Danish-German Bioenergy Conference Kolding, 4. April, 2017

China s Progress in Energy Efficiency and. CHINA JAPAN U.S. Cooperation

Generation Technology Options in a Carbon- Constrained World

Europe s Coming Challenges in Meeting Decarbonisation Objectives

Fuel and Power Options

Power Generation: A Continued Role for Coal?

Energy Policies of IEA Countries In-depth Review of the United States IEA Executive Director Maria van der Hoeven Washington, 18 December 2014

Southern s Current Outlook. Chad Hewitt Fuel Manager

Phasing out nuclear power in Europe Rolf Golombek May 2015

Integration of wind and solar in power systems. Cédric Philibert Renewable Energy Division International Energy Agency

Deep Decarbonization Pathway Case: Indonesia Energy Sector

L.D. Carter For USCSC

Nuclear power is part of the solution for fighting climate change

Understanding the Scale of the Problem: US Energy Sources and CO2 Emissions

12/12/2017. Hydropower and Pumped Storage. The Benefits of Hydropower The Number One Renewable Energy

ME 568 Alternative Energy and Fuel Resources FALL 2013

Methodology for calculating subsidies to renewables

RENEWABLE ENERGY IN RUSSIA. CURRENT STATE AND DEVELOPMENT TRENDS

Geography of Natural Resources

Solar Grand Plan. Ken Zweibel PrimeStar Solar February 2008

Provisional Translation Global Warming

Cyprus Energy efficiency report

A dynamic model for GA electricity planning with CO2 emissions considered

Medium and long-term perspectives for PV. Dr. Paolo Frankl Division Head Renewable Energy Division International Energy Agency

Energy Policies of IEA Countries In-depth Review of the United States 2014

Xu Guosheng Zhaoheng Hydropower

Modeling China s Energy Future

A Utility s Experience in Renewables. August 16, 2004

Options for gas to power in South Africa

Gas in the context of the SA energy scene and global developments. Dave Collins 29 th May 2012

8. Confusion About Renewable Energy. Gail Tverberg Energy Economics and Analysis Modeling

Comparative Legal Aspects of Renewable Energy Sources in the Russian Federation and China Ekaterina M. KOLOGERMANSKAYA

Renewable Energy Sources

Horizon 2030 : the key R&D challenges in the electric utility industry

Energy policy support instruments for renewable energy sources: key principles & lessons learnt

U.S. Climate Change Technology Program (CCTP) Overview

The Water Footprint of Electricity. Presentation by Wendy Wilson, Sept 27, 2012 River Network

Recycled Energy: Is the Future

Transcription:

Ammonia, Carbon Capture and Gas Turbine ensure U.S. Energy Independence Edgar Vercruysse Luc Vercruysse The 9 th Annual NH 3 Fuel Conference, San Antonio, TX, October 01-03, 2012 http://www.probatex.info

Probatex and Ammonia Because we share the major concern : climate change Because renewable energies must take there part but need to be complemented by fast responding stored energies. Because we believe that ammonia has great fuel properties. Because ammonia production technology is already well developed. Probatex is engaged in the ammonia fuel promotion and development. First study (last year) : Where to produce ammonia from renewable sources? Second study (current): Ammonia from coal and usage in Remote Gas Turbines (CCGT). 9-oct.-12 2

Last year summary 1. NH 3 versus the Grid Grid +1000 kwh Green electricity NH 3 1000 kwh 110 kg CO 2 : - 167 kg Fossil Fuel power plant - 3000 kwh CO 2 : 825 kg Fossil Fuel 895 kwh Fossil Fuel NH 3 110 kg CO 2 : 167 kg 2105 kwh CO 2 : 658 kg 9-oct.-12 3

Last year summary 2. Green NH 3 production constraints To get competitive NH 3, the source of electricity shall be continuous. A large scale production plant is required. Selection of 4 sources: hydropower, geothermal power, biogas, biomass 9-oct.-12 4

Last year summary 3. Evaluation of the production cost 600.00 NH 3 price Update 2012 500.00 400.00 300.00 Storage and transport NH3 Electricity [ /t] H2 Electricity[ /t] Water [ /t] total Operating [ /t] total annuity [ /t] Grey NH3 2008 Grey NH3 2008+polution cost 200.00 100.00 - Hydraulic Geothermal Biogas Biomass -118 19 116 156 Subsidy req. /t NH3-172 27 170 228 Subsidy req. $/t NH3 9-oct.-12 5

8 th NH 3 conference: a trigger for new developments Mr. R. James Woolsey, Jr. (former CIA chairman) point out major reasons to get rid of Oil economy: Climate change; Ecological disasters Geopolitical reason Commercial balance (money escape) It is easy and efficient to power CCGT with NH 3 The question is : How to assemble these requests and statements? 9-oct.-12 6

The Shale Gas & Natural Gas trend Global context Shale Gas boom in US currently puts Natural Gas prices under pressure. But: Japan has decided to quit nuclear power In Europe, the global trend is to reduce or eliminate nuclear power plants. Germany will close its last nuclear plant in 2022. Belgium will close its last nuclear plant in 2025. Nuclear capacities will be replaced by Natural Gas CCGT in order to open the grid to wind and solar energies. Russia spend money for pipelines to secure its deliveries Natural gas prices are expected to raise again in a mid term. Coal trend US has the bigest coal reserves in the world. Coal is disliked due to its high carbon content But CO2 capture and sequestration technology and capacities are available. Gasification technologies improve the efficiency of both gas cleaning and CO 2 capture. Refer to IGCC (Integrated Gasification Combined Cycle) 9-oct.-12 7

Concept (1/2):IGCC The proposed process is inspired by the IGCC technology Air IGCC O 2 Coal Water Syngas (H 2 + CO) Electricity CO 2 Sequestration 9-oct.-12 8

Concept (2/2) Compared to the IGCC, the syngas from the gasification is used to produce ammonia instead of being burned directly in the Gas Turbine. NH 3 can be stored and transported. NH 3 can be burned on demand in a CCGT power plant Air N 2 O 2 Coal H 2 Water Power NH 3 Storage Electricity CO 2 Sequestration 9-oct.-12 9

Process efficiency Efficiency: Coal to electricity Coal to hydrogen (incl. CCS), % HHV 59 Hydrogen to ammonia, % LHV 81.8 Ammonia to electricity, % LHV 60 Total energy efficiency, % 28,98 Coal-fired power plant Efficiency, % LHV Pulverised coal PCC without CCS [1, 39 USA] IGCC without CCS 39 IGCC with CCS 32-35 9-oct.-12 10

1. Assumptions Cost computation Gasification process: GE Energy Gray D., Tomlinson G., Hydrogen from coal, Mitretek Technical Paper, MTR 2002-31, July 2002 Computation made for a reference coal and for 5 coal types produced in the US. Coal origin Reference Coal US Central US Northern Illinois Basin Powder River Basin Uinta Basin Year/reference 1998 [36] 2012 [48] 2012 [48] 2012 [48] 2012 [48] 2012 [48] Price [$/t] 27.30 61.84 70.99 51.26 9.37 39.13 HHV [Btu/lb] 10,665 12,500 13,000 11,800 8,800 11,700 9-oct.-12 11

Cost computation 2. Cost of Hydrogen produced from Coal gasification Production cost Coal consumption [t/d] Reference Coal US Central US Northern Illinois Basin Powder River Basin Uinta Basin 3,000 2,560 2,461 2,711 3,636 2,735 Coal cost [$/d] 81,900.00 158,284.81 174,714.48 138,981.61 34,066.12 107,011.11 Annuity [$/d] 152,355.99 152,355.99 152,355.99 152,355.99 152,355.99 152,355.99 Water cost [$/d] 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 CO2 Storage [$/d] 47,526.09 47,526.00 47,526.00 47,526.00 47,526.00 47,526.00 Total daily cost [$/d] 290,782.08 367,166.79 383,596.47 347,863.59 242,948.11 315,893.10 H 2 cost [$/t] 1,034.44 1,306.18 1,364.63 1,237.51 864.28 1,123.78 Taking into account an avoided coast associated to the removal of CO 2 Value of a ton of CO 2 : 24$ Amount of CO 2 removed = the CO 2 emitted if the H 2 is produced from Natural Gas The avoided cost per ton of H 2 is 75.90$ Adjusted H 2 cost [$/t] Reference Coal US Central US Northern Illinois Basin Powder River Basin Uinta Basin 958.54 1,230.28 1,288.72 1,161.61 788.37 1,047.87 9-oct.-12 12

3. Cost of Ammonia Production cost (based on on 1560 t/d) Reference Coal Cost computation US Central US Northern Illinois Basin Powder River Basin Uinta Basin H2 cost [$/t] 958.54 1,230.28 1,288.72 1,161.61 788.37 1,047.87 H2 cost [$/d] 269,446.08 345,830.89 362,260.56 326,527.69 221,612.20 294,557.19 Annuity cost [$/d] 44,812.86 44,812.86 44,812.86 44,812.86 44,812.86 44,812.86 Operating cost [$/d] NH3 production cost [$/d] NH3 production cost [$/t] 24,799.81 24,799.81 24,799.81 24,799.81 24,799.81 24,799.81 344,557.65 344,558.65 344,559.65 344,560.65 344,561.65 344,562.65 217.20 266.13 276.66 253.77 186.56 233.29 Including transportation over 1000 miles and storage during 45 days for FOB delivery and use in the US. FOB cost of NH3 [$/t] Including insurance and freight for CIF delivery in Europe. Estimated according to the freight and insurance coast observed for Ammonia US imports: 70$/t NH3 FOB cost of NH3 [$/t] Reference Coal Reference Coal US Central US Northern Illinois Basin Powder River Basin Uinta Basin 288.80 337.73 348.26 325.37 258.16 304.89 US Central US Northern Illinois Basin Powder River Basin Uinta Basin 358.80 407.73 418.26 395.37 328.16 374.89 9-oct.-12 13

Cost computation 4. Cost of electricity in US Production cost from ammonia produced from US coal Electricity [$/MWh] cost Reference Coal US Central US Northern Illinois Basin Powder River Basin Uinta Basin 116.67 134.20 137.98 129.77 105.68 122.43 Comparison with other conventional electricity sources Electricity production Cost [$/MWh] Natural Gas CCGT 79 Natural Gas CCGT with CCS 96 NH3 CCGT 106(+10%) to 138(+43%) 9-oct.-12 14

Cost computation 5. Cost of electricity in EU Production cost from ammonia produced from US coal Electricity [$/MWh] cost Reference Coal US Central US Northern Illinois Basin Powder River Basin Uinta Basin 132.62 148.40 151.80 144.41 122.73 137.81 Comparison with other conventional electricity sources Production way Production cost $/kwh in 2008 Production cost $/kwh in 2011 Country Hydroelectric 74 75 Sweden Solid biomass 129 131 Netherlands Biogas 79 80 France On-shore wind 90 91 France Off-shore wind 138 139 Germany Photovoltaic 287 150 France Natural Gas CCGT (incl. 90 91 Belgium carbon Cost) 9-oct.-12 15

CO 2 market engineering Ammonia is a carbon free fuel. This is strong added quality compared to fossil fuels. This quality can be translated into a negative cost associated to the avoided CO 2 emissions. It is estimated at 24 $/t CO2. This is the value of the Carbon tax that applies in Australia. But the exact figures differs from one market to another depending whether a carbon tax is due or if the consuming industry is subject to emission quota. In all cases this avoided cost is expected to raise and will have a positive impact on the final price of electricity produced from ammonia. 9-oct.-12 16

CO 2 Market forecast and expectations Current quotation on BlueNext (environmental trading market) EUA (European Union Allowance) (sept 21): 7.40 = 9.62$ (1 EUA = 1 t CO2 ) Perspective of the price of European CO2 quota (tco2) -65 $ -52 $ Source: Conseil économique pour le développement durable, n 12, 2012-39 $ -26 $ -13 $ -0 $ 2005 2020 Cost of Avoided CO 2 for IGCC with CCS (source DOE.NETL) : 35 to 46 $/t CO2 A mature CO 2 market should tend to align these figures. Noticeable market news : Australia an EU tend to merge their markets. Source: Tendances Carbon n 72, sept 2012 9-oct.-12 17

Conclusion Going green deserves a serious debate. We have to pave the way for adequate solutions for the CO 2 emissions problem. The first positive answer is given by the renewable and CO 2 -free energies: hydraulic, geothermal, biomass, wind and solar. They are commonly accepted around the world. Their intermittent action is so far complemented by the continuous action of storable fossil energies which, unfortunately, are also responsible for CO 2 emissions. The CO 2 emissions problem is consequently not completely solved. This study proposes green ammonia from coal as a substitute fuel for the fossil energies. The CO 2 -free emissions, storability and competiveness represent its main worldwide benefits. Green ammonia production costs ranging from 258 to 349 $/t FOB US port must be compared with the non-green ammonia market price assessed at 560 $/t FOB US port. Biogas, off-shore wind and solar energy costs in Europe, respectively 80, 139, 289 $/MWh, have to be compared with green ammonia energy costs ranging from 123 $/MWh for coal from the Powder River Basin to 152 $/MWH for coal from US Northern. The United States, China and Russia are all potential producers of green ammonia from coal. All these countries would find additional benefits in green ammonia since it replaces imported fossil fuels, ensures national energy independence, extends the energy-mix target, presents competitive green ammonia versus non-green ammonia on the international market and promotes the coal economy. Huge coal reserves, geographical situation, technology, economy and ecological concerns place the United States in a leading position in this respect. On the other hand potential consumer-countries will find additional benefit in the extension of the green-energy-mix target. Last but not least, the 'CO 2 quota regulations' of some countries might be extended to other countries in order to reach an international agreement beneficial to all. Widely accepted in the European Community, the CO 2 quota regulations represent a serious asset for a green ammonia trade kick-off between the United States and the European Union 9-oct.-12 18

Conclusion on the ammonia market production cost ranging from 258 to 349 $/t Market price 600 to 700 $/t on the electricity market, competiveness will depend on the price of coal vs the price of natural gas technology carbon policy (taxes, incentives, quota) benefits for States: with coal reserves (e.g. US): valorization without coal reserves (e.g. EU): extension of the green energy mix, energy security. benefits for industry for coal mining industry for electricity producers in countries with a lack of energy resources. Benefits for the environment and all of us, thanks to CO 2 removal! 9-oct.-12 19

Thank you for your attention! The full report is available on http://www.probatex.info/nh3 Contact: nh3@probatex.info 9-oct.-12 20