Technical Aspects of Clean Hydrogen Production

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Technical Aspects of Clean Hydrogen Production GCEP Energy Workshop Stanford University Stanford, CA April 26, 2004 Charles E. Taylor, Leader Methane Hydrates Research Group National Energy Technology Laboratory

Clean Coal Fuels Technology Lines Key Elements Technology Outputs Key Milestones Transportation Fuels and Chemicals Coal Fuels Hydrogen Production, storage and utilization By 2010, hydrogen from coal can be produced for $30/bbl oil equivalent Advanced Fuels Research C1 Chemistry Improved synthesis gas conversion By 2010, technology base enables coal liquid fuels to be produced at $30/bbl oil equivalent via coproduction w/ power Solid Fuels and Feedstocks Coal-Derived Carbon Materials Separations Premium Carbon Products/ Coal Fines Recovery By 2010, separation technologies permit higher coal recovery at less cost; high value carbon products enter the market

Coal (CH) Hydrogen From Coal Program Components --- Technology Areas Gasification Synthesis Gas CO, CO 2, H 2, H 2 O, SO 2 Gas Cleaning Sulfur O 2 H 2 O Ash/Slag Depleted Air Particulate Key HRSG/ ST Power CO/H 2 CO 2 H 2 O Gasification IEP/Coal Utilization By-products Air SOFC Water Gas Shift & Membrane Separation Syngas Conversion Fuel Cells ATS Air Air Separator O 2 Combustion Turbine HRSG F-T CH 3 OH CO 2 Sequestration Coal Fuels & Hydrogen HRSG/ ST Power H2 Delivery Reforming CO 2 Sequestration H 2 H 2 Storage & Utilization H 2

Hydrogen Production Options Sources of Hydrogen Fossil Fuels with Sequestration Water Biomass Biomass photo: NREL, Calvert Cliffs Nuclear Plant The U.S. uses 14MM BPD of oil for transportation 14MM BPD = 220MM TPY of H2 at current efficiencies Increasing annual coal production by 33% (330MM tons) would provide 50MMTPY of H2 50MM TPY of H2 = 50% of our current transportation requirements at Freedom Car efficiencies Sources of Heat to Drive Reaction Nuclear Power Renewables Dream Source Fusion Thermochemical Photochemical

Hydrogen Production How important is Coal? The National Academy of Engineering recently completed a year long study of: The Hydrogen Economy: Opportunities, Costs, Barriers and R&D Needs Key Findings General and those specific to coal: Hydrogen could fundamentally transform the U.S. energy system; therefore a robust, ongoing hydrogen program is important Fossil Fuels will be one of the principal sources of hydrogen for the hydrogen economy but carbon capture and storage technologies will be required The U.S. has vast coal resources hydrogen from coal can be inexpensive and coal must be a significant component of R&D aimed at making very large amounts of hydrogen.

Introduction The U.S. has a 250-year supply of coal at present annual use A small number of chemical plants use coal to produce hydrogen via partial oxidation Eastman Chemical gasifies coal to produce methanol for chemical manufacturing; methanol could also be used as a near-term source of hydrogen.now fueling Georgetown University fuel cell buses. However - At present, no facilities based on modern coal gasification have been constructed that produce both hydrogen and power.the lowest cost path for producing hydrogen

Hydrogen From Coal: Goal Facilitate the transition to a sustainable hydrogen economy through the use of coal, our largest domestic fossil resource Objectives Production: Central Pathway --- By 2015, demonstrate a 60% efficient, zero emissions, coalfueled hydrogen and power co-production facility that reduces the cost of hydrogen by 25% compared to current coal-based technology Production: Hydrocarbon Pathway --- By 2010, complete tests and evaluations of most promising hydrogen-rich, coal-derived liquids for reforming applications Storage --- By 2015, work with other DOE Offices to develop safe, affordable technology capable of storing 9 wt. % hydrogen Utilization --- By 2010, complete tests & evaluations of H 2 /natural gas mixtures in modified and advanced internal combustion engines

Key Components: Hydrogen from Coal R&D Areas & Technical Hurdles Production: H 2 separation; liquid fuels development S-poisoning; catalyst-reactor, catalyst/wax separation Storage H 2 /CH 4 mixtures, materials/processes for high wt.% H 2 storage Utilization: H 2 /natural gas combustion in ICEs Performance and emissions control Process Engineering: Intensification Combine processes to increase efficiency/reduce capital cost

Hydrogen from Coal Program Roadmap Central Production Advanced gas separation technology including membranes tolerant to trace contaminants identified Complete tests of sulfurtolerant membranes and design of separation modules (CCPI) Liquids Production Infrastructure Determine optimum liquids and reforming parameters; initiate advanced liquids production research Complete lab tests of hydrogen storage carbon and/or metal organic based Complete engineering designs and tests of advanced reforming and syngas processes Complete bench tests and design of prototype hydrogen storage module Complete Commercial Scale Demonstrations* Utilization Perform exploratory research on use of H2/nat l gas mixtures in ICEs Complete tests of H2/nat l gas mixtures in conventional and advanced ICEs) FreedomCAR and other Applications * Incorporates technology being developed under the complementary Advanced Gasification and Sequestration for carbon dioxide capture and storage programs 2005 2010 2015

History of Gasification Used during World War II to convert coal into transportation fuels (Fischer Tropsch) Used extensively in the last 50+ years to convert coal and heavy oil into hydrogen for the production of ammonia/urea fertilizer Chemical industry (1960 s) Refinery industry (1980 s) Global power industry (Today)

Coal Gasification Can Polygenerate Many Products Power Electricity Steam Coal Fuels Fischer-Tropsch Diesel Naphtha Methanol Dimethyl Ether AND Hydrogen Chemicals Waxes Olefins Acetates and many Others

Gasification Basics (Courtesy of Eastman Chemical) Oxygen Coal Extreme Conditions: Up to 1,000 psig or more Nominal 2,600 F (1400 C) Corrosive slag and H2S gas Products: CO H2 Water (Carbon Monoxide) (Hydrogen) By-products: H 2S (Hydrogen Sulfide) CO2 (Carbon Dioxide) Slag (Minerals from coal)

Integrated Gasification Combined Cycle (IGCC) Configuration (Courtesy of Eastman Chemical) Oxygen Syngas Combustion Turbine Steam Steam Turbine CO 2 Electricity Steam Mercury Removal CO 2 and Sulfur Removal Coal Petroleum Coke Refinery Coproducts Biomass Wastes Gasifier Slag/Soot Solids Co-products CO 2 Syngas

Major Gasification Milestone 1842 Baltimore Electric Town Gas 1887 Lurgi Gasification Patent 1910 Coal Gasification Common in U.S. / Europe for Town Gas 1940 Gasification of Nature Gas for Hydrogen in the Chemical Industry (Ammonia) 1950 Gasification of Coal for Fischer-Tropsch (F-T) Liquids (Sasol-Sasolburg) 1960 Coal Tested as Fuel for Gas Turbines (Direct Firing) 1970 s IGCC Studies by U.S. DOE 1970 Gasification of Oil for Hydrogen in the Refining Industry 1983 Gasification of Coal to Chemicals Plant (Eastman Chemical) 1984 First Coal IGCC Demonstration (Coolwater Plant) 1990 s First Non-Recourse Project Financed Oil IGCC Projects (Italy) 1993 First Natural Gas Gasification F-T Project (Shell Bintulu) 1994 NUON/Demkolec s 253 MWe Buggenum Plant Begins Operation 1995 PSI Wabash, Indiana Coal IGCC Begins Operation (DOE CCT IV) 1996 Tampa Electric Polk Coal IGCC Begins Operation (DOE CCT III) 1997 First Oil Hydrogen/IGCC Plant Begin Operations (Shell Pernis) 1998 ELCOGAS 298 MWe Puertollano Plant 2003 WMPI IGCC Polygeneration Projected Selected (CCPI I)

Cumulative Worldwide Gasification Capacity and Growth MWth Syngas 70000 60000 50000 Planned Real 40000 30000 20000 10000 0 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 Source: SFA Pacific Gasification Database - 2001

Comparison of Emissions Between IGCC and Other Coal-Fired Technologies 12 10 8 6 4 2 0 IGCC Plant (without SCR) AFBC Plant (w ith SNCR) PFBC Plant (w ithout SNCR) PC-Fired Plant with FGD & SCR SO2 (lb/mwh) NOx (lb/mwh) PM10 (lb/mwh) CO2 (10E-3 lb/mwh) Total Solids, (10E-2 lb/mwh)

New Coal Marginally Competitive with Gas Cost of Electricity (Cents / kwh) 6 5 4 3 2 1 Natural Gas CC Coal-Fired Power Plant Capital Cost $1000 - $1200 / kw Coal Price $1.00- $1.25 / MMBtu 0 1 2 3 4 5 6 7 Natural Gas Price ($ / MMBtu) Cost $500 -$600 / kw DOE Report #DE-AC-01-94FE62747, April 2001

Factors Affecting Gasification Favorable High NG prices Low quality feedstocks Feedstock flexibility Product flexibility/market matching Ultra-clean fuels Superior efficiency and environmental performance (requires monetization of benefits) Potential of more exacting emissions regulations Unfavorable Low NG prices (commodity market uncertainties) Poor reliability Uncertainties in environmental regulations Lack of Investor confidence Real/perceived risks Project cost, size, and development time Large footprint Public perception of coal

Technology Hurdles Air Separation - Costly (12-15% of capital cost of IGCC) and inefficient (consumes 10% of gross plant power) Hydrogen Separation Costly and inefficient for power applications Co-Production Integration of power and fuels technologies CO 2 Sequestration Ensure the gas does not escape from the reservoir its stored in

Mixed-Conducting Oxygen Separation Membranes N 2 -Rich Air 1/2 O 2 + 2e - O -2 Air e O -2 Oxygen Conducting Membranes O 2 O -2 1/2 O 2 + 2e - Pressure driven operation Mixed ionic - electronic conduction, no external circuit Oxygen ion transport through oxide materials Infinite O 2 selectivity High temperature process - 900 o C

Example Scenario: Oxygen Separation Benefits of Oxygen Separation Membranes 1. Lower capital cost than cryogenic oxygen systems $20,000 $13,000/tpd O 2 (35% decrease) 1 2. Lower auxiliary power 235 kwh/ton O 2 147 kwh/ton O 2 (37% decrease) 1 Objectives Coal + 3/2 O 2 CO 2 + H 2 O 1. Eliminate CO 2 capture system 2. Simply remove H 2 O and compress flue gas Source: Air Products and Chemicals, Inc. 2002

Water Gas Shift - Hydrogen Separation Membrane Reactor CO + H 2 O CO 2 + H 2 catalyst H 2 Membrane Tube Reactor Shell Removal of hydrogen drives reaction to completion Carbon dioxide stream at high pressure, ready for sequestration Hydrogen available as a clean energy source

CO 2 Hydrate Formation for Gas Separation Forms clathrate by mixing CO 2 in fuel gas stream with chilled, recycled water stream Prior work by others predicted poor kinetics and problems with multi-phase flow Results contradict slow kinetics theory hydrate formation occurs readily with nucleation Multi-phase flow problems will be managed with proper flow velocities and temperature control

Characteristics of a Gasification Process (Courtesy of ChevronTexaco) FEEDS GASIFICATION GAS CLEANUP END PRODUCTS Alternatives: Asphalt Coal Heavy Oil Petroleum Coke Orimulsion Natural Gas Wastes Clean Fuels Oxygen Gasifier Byproducts: Solids (ash) Gas & Steam Turbines Sulfur Removal Syngas Combined Cycle Power Block Marketable Byproducts: Sulfur Electricity Steam Alternatives: Hydrogen Ammonia Chemicals Methanol Source: ChevronTexaco

Gasification Carbon Capture and Sequestration

Geologic Sequestration Options Deep Saline Formations Deep Coal Seams Enhanced Oil Recovery Fields

Geologic Sequestration Highlights (1 Million TPY CO 2, ~ 100 MW Coal Power Plant) Weyburn CO 2 EOR Project Pan Canadian Resources 200-mile CO 2 pipeline from Dakota Gasification Plant 130M barrels oil over 20-year project $28M Sleipner North Sea Project Statoil Currently monitoring CO 2 migration $80M incremental cost $35/ ton CO 2 tax

Sequestration R&D Figure 2 Barrier Issues Health, safety and environmental risks Permanence and large scale verification Capacity evaluation Infrastructure Uncertain regulatory frameworks Protocols for identifying amenable storage sites Pathways Depleting oil reservoirs Unmineable coal seams Saline formations Enhanced terrestrial uptake Ocean fertilization and injection Regional Partnerships

Goal: By 2015, a 60 percent efficient, zero emissions, coal-fueled hydrogen and power co-production facility is operational Benefits: Energy security Early source of hydrogen for fuel cell vehicles Reduced emissions of pollutants and GHGs In Summary

Visit Our NETL Website www.netl.doe.gov Visit Our OCES Website www.netl.doe.gov/coalpower/index.html

Thank You For Information on the Hydrogen from Coal Activity: John Winslow Technology Manager, Coal Fuels NETL 412-386-6072 john.winslow@netl.doe.gov Thank you very much for your time; I m sorry I could not be with you in person today.