Low emissions coal technologies in Australia

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Low emissions coal technologies in Australia John Carras Director, CSIRO Coal Technology CO 2 Summit : Technology and Opportunity June 2010, Vail, Colorado

Commonwealth Scientific and Industrial Research Organisation (CSIRO) Australia s national science agency One of the largest & most diverse in the world 6500 + staff over 55 locations Ranked in top 1% in 14 research fields 20 + spin-off companies in six years 160 + active licences of CSIRO innovation Building national prosperity and wellbeing

CSIRO - Research Portfolios Energy Transformed Coal Technology Petroleum and Geothermal Climate Adaptation Minerals Down Under Water for a Healthy Country Food Futures Preventative Health Wealth from Oceans Future Manufacturing Sustainable Agriculture Light Metals

Energy and Coal Energy is central to all economies Predictions of future world energy use shows continued growth This is in part due to increasing world population and also the rapid development of a number of emerging economies Heavy reliance on petroleum and coal has raised the issue of anthropogenic global warming This talk will discuss coal s future role in the energy mix with a focus on low emissions technologies, from an Australian perspective

World coal consumption by region, 1990-2035 (quadrillion Btu) From US EIA, 2010

World net electricity generation by fuel, 2007-2035 (trillion kilowatthours) From US EIA, 2010

Changes in temperature, sea level and Northern Hemisphere snow cover (IPCC, 2007)

Coal and Australia Australia has large reserves of black and brown coal Australia is the world s largest exporter of coal and coal is Australia s highest value export - (black, thermal and metallurgical) 76% of Australia s electricity is derived from coal - (no nuclear power in Australia) Coal contributes 40% of net GHG emissions Australia has one of the largest GHG emissions per capita in the world (~25 tonne/person)

GHG Emissions Australian GHG Emissions (2008) 450 Mt CO2-e 400 350 300 250 200 150 100 50 0 Total = 551 Mt Energy Industrial Waste Agriculture Sector

Electricity supply by fuel in Australia Electricity generation by fuel (2006) Percent 60 50 40 30 20 10 0 Renewables account for ~7% of electricity production Hydro 6.4% Wind 0.7% Biomass 0.4% Black coal Brown coal Gas Hydro Oil Renewables Electricity generation contributed 35% of total emissions. 55% - black coal, 21% - brown coal From DRET, Australian Gov data

Australian Government Response Climate Change is a diabolical policy problem Garnaut (2008)

Garnaut targets and trajectories for GHG reduction 450ppm CO 2 -e stabilisation in the atmosphere requires 25% cut in GHG by 2020, over 2000 levels 90% cut in GHG by 2050, over 2000 levels 550 ppm CO 2 -e stabilisation in the atmosphere requires 10% cut in GHG by 2020, over 2000 levels 80% cut in GHG by 2050, over 2000 levels

Mitigation: where will we reduce emissions (CPRS-5) Mt CO2-e 700 600 500 400 300 200 100 Mt CO2-e 700 600 500 400 300 200 100 0 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 Electricity generation Other stationary energy Transport Fugitives Agriculture Industrial processes Waste Forestry Land use/land-use change Source: Commonwealth of Australia (2008)

Summary of projected electricity & transport sector abatement (CPRS-5) 400 350 300 250 Reduced travel Alternative transport fuels Electricity efficiency/demand reduction Distributed generation Renewables Natural gas Coal & gas + CCS 1/3 Mt CO 2 e 200 150 1/3 100 50 1/3 0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Source: CSIRO projection (Graham et al 2009)

Electricity generation technology share (CPRS-550ppm) TWh 500 450 400 350 300 250 200 150 100 50 0 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050 Hot fractured rocks Solar photovoltaics Solar thermal Wind Biomass Gas peak Gas CCS Gas combined cycle Black coal CCS Black coal pf Brown coal CCS Brown coal pf Hydro Source: CSIRO projection (Graham et al 2009)

Australian Government Initiatives Carbon Pollution Reduction Scheme (emissions trading with implementation in 2013) Renewable energy target 20% of electricity supply to come from renewable energy by 2020 Clean Energy Initiative - $4.5B To be leveraged with State Gov and industry funds $1.5B for Solar Flagships Program $2.4B for Carbon Capture and Storage (CCS) Flagships Program Global CCS Institute ($100m pa) Australian National Low Emissions Coal R&D ($150m over 7 years from government and industry for R&D to support demonstration projects)

Australian basins and regions considered to have CO2 storage potential from CO2CRC

Carbon Pollution Reduction Scheme Key Features Emissions Trading Scheme Covers 75% of GHG emissions at inception Covers all 6 UNFCCC GHG Direct emissions threshold of 25kt of CO 2 e Fugitive emissions from coal mining included Agriculture included 4 years after commencement of scheme Post-Copenhagen, CPRS legislation has been deferred until 2013

CCS Flagship proposals Four projects in competition for Gov funds Gorgon Collie Hub Project (Western Australia) Capture, transport and storage network for up to 3.3 M tonne CO 2 pa from a variety of sources including: coal fired pf power alumina fertiliser Perth Collie CarbonNet (Victoria) Capture, transport and storage network for up to 3 M tonne CO 2 pa from a variety of sources including: Brown coal fired pf combustion power with Post Combustion Capture Gasification Other industry Melbourne Otway Basin La Trobe Valley

CCS Flagship proposals Wandoan Power 400MW IGCC station with CCS GE and Stanwell Corporation ZeroGen 530MW IGCC with capture and CO2 Storage Mitsubishi Corporation, Mitsubishi Heavy Industries, ZeroGen Project Callide A ZeroGen Wandoan Brisbane Announcement of winner(s) due later this year

Gorgon Natural gas to LNG for the export market Gas field has 14% CO 2 in the reservoir fluid Gorgon Disposal in unused saline formation at a depth >2000m 120 million tonnes will be injected into the Dupuy formation at ~4 million tpa Perth Collie Joint Venture Partners Exxon, Chevron and Shell

Callide Oxyfuel Project The Callide Oxyfuel Project 30MW centred on Callide A power station CO 2 to be stored in nearby deep saline formation in the Dennison Trough Callide A Partners are CSEnergy, IHI, JPower, Mitsui, Schlumberger and Xstrata Coal Brisbane

CO2CRC Otway Project Stage 1 and Stage 2 Stage 1 injection into depleted gas field 60,000 tonne CO 2 injected CO 2 plume appears well contained, at this stage Stage 2 Trial injection into Paaratte sandstone formation From CO2CRC Stage 3 Larger injection into Paaratte

Established PCC Pilot Plants - (CSIRO and partners) Latrobe Valley Post Combustion Project - ETIS support - Loy Yang Power Station - Lignite - Amine based - No FGD/DeNox - APP support - Gaobeidian Power Station - Black coal - Amine based - FGD/DeNox installed - APP support - Munmorah Power Station - Black coal - Ammonia based - No FGD/DeNox Pilot plants 1-3 kt pa

Fugitive emissions of methane Q Fugitive emissions of methane account for 6% of Australia s GHG emissions Rock Overburden (h ) Emissions arise from both underground and open pit Water table Coal seam Pit floor Emissions from spontaneous combustion not included as no robust method at present for their quantification Shale Underburden (δh ) Included in CPRS

Fugitive greenhouse gas emissions from spontaneous combustion in spoil piles from open cut coal mines Three approaches a) Thermal imaging and chamber measurements b) Plume traverse c) Inverse modelling kt/y 2400 Extreme values Very hot (40C) Strong winds (~ 7m /s) 1600 800 0 Carras et al (2009), Carras et al (in press), Day et al (2010), Lilley et al (in press) Thermal Tra ve rse Inverse

CSIRO - Coal Technology Focuses on low emissions coal technologies Quantification and mitigation of fugitives Gasification of coal and biomass (PEFR) Downstream gas processing for IGCC Post combustion capture of CO2 (amines, ammonia, adsorbents, ILs, enzymes - black and brown coal - lab and pilot-plants) Emissions limits for PCC - amines Coal in large scale diesel engines Enhanced coal bed methane (ECBM) CO2 storage in saline formations Mineralisation Direct carbon fuel cell Coal to Liquids (direct) Public attitudes to CCS We work with many partners ANLEC, CO2CRC, GCCSI, industry, Universities, other international research organisations etc

Summary Coal contributes significantly to global GHG emissions and concerns with climate change are posing significant challenges for coal Coal makes a major contribution to Australia s economic performance Australia is investing in demonstration scale low emissions coal projects (and coal related R&D) to establish their suitability as part of the technology suite required to reduce GHG emissions

Greenhouse and Energy Conference December 4-8, 1989.

John Carras Email: john. carras@csiro.au Web: www.csiro.au/science/energy Thank you Contact Us Phone: 1300 363 400 or +61 3 9545 2176 Email: enquiries@csiro.au Web: www.csiro.au