CO 2 free Power Plant Project in Vattenfall Relations to the Dynamis project Large CCS Projects meeting Brussels, September 5, 2006 Lars Strömberg Vattenfall AB Group function Strategies Berlin / Stockholm Vattenfall AB
The Power Sector The power sector is the major single emitter of CO 2. Vattenfall is one of the major Energy companies in Europe The Power industry must take responsibility and take the lead for introducing CO 2 free technology. To be able to make the deep cuts necessary, CCS is necessary. Primary target is to make technology available in 2020 at an avoidance cost of 20 EUR/ton of CO 2, but also to start development of second generation technology Vattenfall AB 2
CO 2 free power plant The CO2 free Power Plant project Vattenfall AB 3
Roadmap to realization 2006 2015 2020 Conceptual investigations Laboratory Test Pilot Plant Demo- Plant Commercial Plant Theoretical Research Research Basic principles Combustion characteristics Demonstration of the process chain Interaction of components Validation of basic principles and scale-up criteria Long term characteristics Noncommercial Verification and optimization of the component choice, the process and reduction of risks Commercially viable incl. subsidies Competitive in the market at that time No subsidies Vattenfall AB 4
The demonstration project time line 06/2012 06/2011 01/2011 06/2010 12/2008 03/2007 06/2006 Pre-feasibility study Feasibility study Pre engineerng Bidding phase Engineering Construction 6 scenarios 1(3) Scenarios Tenders sent out Order Investment decision Early consultations Pipeline permit application Permit application submitted Storage site development Vattenfall AB 5
CO 2 free power plant Storage and transport Vattenfall AB 6
Storage Capacity, saline aquifers There exists more storage capacity within Eorope (and in the world) than the remaining fossil fuels Source: Franz May, Peter Gerling, Paul Krull Bundesanstalt für Geowissenschaften und Rohstoffe, Hannover Vattenfall AB 7
CO 2 Transport and storage Schweinrich structure Berlin h h h Two pipeline transport routes are possible Both routes can be designed to follow existing pipeline corridors >90% Structure can contain 1,4 billion ton of CO2, equivalent to about emissions from 6000 MW their whole lifetime Vattenfall AB 8
CO 2 free power plant The technology options Vattenfall AB 9
Technology Platform The European Technology Platform for Zero Emission Fossil Fuel Power Plants (ZEP) Vattenfall AB 10
Electricity generation cost for large power plants in operation by 2020 (ZEP WG1) EUR/MWh 90 80 70 60 50 40 30 Note: Power generation cost without CO2 transport and storage cost No capture Pre-combustion Post-combustion Oxyfuel 20 10 0 Hard coal Lignite Natural Gas Vattenfall AB 11
Avoidance cost for large power plants in operation by 2020 (ZEP WG1) 100 80 Note: CO 2 Avoidance cost without transport and storage cost Pre-combustion Post-combustion Oxyfuel EUR/t CO2 60 40 20 Power plant and CCS technology improvement potential 0 Hard coal Lignite Natural Gas Vattenfall AB 12
Cost for hydrogen in a CO 2 free coal co-gen plant Assume the conditions for the economy calculations are as above. The investment is probably too low for a plant with co-generation of hydrogen. The hydrogen contains 10 15 % non-condensable gases, but is rather clean Accept that the electricity generation cost lies at about 45 /MWh if 7500 hours of operation is assumed. The electricity generation part of the plant has an efficiency of 57 %. This gives a hydrogen cost of about 28 /MWh Hydrogen cost of 30 /MWh might be achievable at site, comparing with natural gas at about 20 24 /MWh for LNG Lars Strömberg 2003 07 05 Vattenfall Vattenfall AB AB 13 Corporate Strategies
CO 2 free power plant Pilot Plant Vattenfall AB 14
Preliminary Lay out Desulfurization Coal silo Ash silo CO 2 condensation Flue gas cooler ESP Boiler ASU CO2-Process Plant Vattenfall AB 15
Plant Status The pilot plant will comprise a full chain including boiler, gas cleaning, CO 2 processing and an air separation unit The CO 2 will not be permanently stored initially. It will be released into atmosphere. It will produce liquid CO2 of very high quality (food grade) to a tank storage It is prepared for later connection to a storage project The contracts for the main components are awarded and construction started in june 2006. The permitting process is running very smoothly. Permit is expected in October 2006 The estimated cost of the plant itself is 67 mio and a three year test program will have running costs of about 27 mio. All costs covered by Vattenfall and industrialpartners. No public funding. Vattenfall AB 16
Time Schedule 2005 2006 2007 2008 2009 2010 2011 Planning for tender procedure Permit planning Detailed engineering Erection Ground Breaking Commissioning Operation Vattenfall AB 17
Schwarze Pumpe power plant Vattenfall AB 18
Location of the pilot plant at Schwarze Pumpe Power station Vattenfall AB 19
The Power Sector Vattenfall AB 20
Exchange of plants reduction of CO 2 Conclusions Vattenfall AB 21
Conclusions CO 2 Capture and Storage project All three technologies are probably available at a commercial stage in 2020. At present the oxyfuel technology is the preferred option due to adaptability to present generation technology and best economy. Only pre combustion capture produces an intermediary product in the form of hydrogen. Other ways of production is by electrolysis, at a significantly higher cost, but already distributed. We do not believe that hydrogen in pure form will be an important energy carrier One 1000 MW power plant, matching the system variation produces enough methanol for about half a million cars. Lars Strömberg 2003 07 05 Vattenfall Vattenfall AB AB 22 Corporate Strategies
Relation Dynamis and Vatenfall s Pilot plant There are very few synergies to be seen between Vattenfall s Pilot Plant and Dynamis. IGCC with pre combustion capture will be the preferred option if hydrogen is wanted by a market Technology choice is not yet made. Oxyfuel is preferred technology in Vattenfall at present for power production The pilot plant might contribute to the spread of knowledge about CCS and general issues concerning gas processing, permission process and storage Lars Strömberg 2003 07 05 Vattenfall Vattenfall AB AB 23 Corporate Strategies
Computer simulation of the new units in Hamburg (Moorburg) 2 x 865 MW hard coal Vattenfall AB 24
Computer simulation of the new Boxberg R unit 675 MW- lignite Vattenfall AB 25
CO 2 free power plant Back up Vattenfall AB 26
Maturity of Capture Technologies Post Combustion Capture Overall Status Full process integration and optimization for power Component Status Boiler and power process Extended desulphurization DeNOx process Pilot Plant Conceptuel Investigations and Laboratory tests Demonstration unit Ready for Deployment CO2 capture process Capture process optimization incl. new solvents and scale-up CO2 processing Vattenfall AB 27
Maturity of Capture Technologies Pre Combustion Capture Overall Status Full process integration and optimization for power Pilot Plant Conceptuel Investigations and Laboratory tests Demonstration unit Ready for Deployment Component Status Air separation unit Coal Gasification Natural gas reforming Syngas processing CO2 capture process CO2 processing High efficiency, low emission H2 Gas Turbine Vattenfall AB 28
Maturity of Capture Technologies Oxyfuel Overall Status Full process integration and optimization for power Conceptuel Investigations and Laboratory tests Pilot Plant Demonstration unit Ready for Deployment Component Status Air separation unit Combustion process and boiler Water/steam cycle, particle removal Desulphurization Flue gas condensation CO2 processing Vattenfall AB 29
Cost and Potential of options to reduce CO 2 emissions Principal example Cost for carbon dioxide avoidance [EUR/ton CO 2 ] 100 New Picture 2005 including recent knowledge Solar Wind Biofuel El Hydro New efficient coal Savings 50 Oil to gas CO 2 Capture and Storage Biofuel Heat Coal to gas 0 Potential [Percent] 0 20 40 60 80 100 2000-07-16 Vattenfall AB 30 Lars Strömberg Vattenfall AB