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Realistic Coal Solutions to Clean Energy"

APEGGA luncheon

Calgary, Alberta, CanadaDec. 11, 2008

Paul R. Clark, PresidentRipley Canyon Resources Ltd.,Senior Advisor, Northwest Upgrading

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Overview of the Presentation

Definition of clean coal (carbon) A Short Primer on Coal in the World How do we make coal clean (cleaner) End Uses of CO2 Current events and trends of clean coal Summary

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My Definition of Clean Coal (Carbon) NOx and SOx and particulate emissions are

equivalent to or lower than natural gas combined cycle

Heavy metals that accumulate as a result of combustion or chemical reactions are benign

The majority of the CO2 generated from the process is captured and stored, sequestered or otherwise not emitted into the atmosphere

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Energy Content in Alberta Coals

Lignite, subbituminous coals generally used for thermal power

Bituminous coal generally used as coking coal for steel making

Anthracite

Bituminous

Sub-bituminous

14000 Btu/lb

13000 Btu/lb

11000 Btu/lb

9500 Btu/lb

Lignite 8300 Btu/lb

Alberta plains coal

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Why is clean coal so important Coal has been and will continue to be for the

foreseeable future the main source of electrical power production

Coal use for power production is increasing at a phenomenal rate in developing countries

Coal is ubiquitous in the world and for many countries, it is there largest energy resource.

If the CO2 is captured and not emitted into the atmosphere, the use of coal could be cleaner than the use of natural gas for power production

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NorWest

Global Coal Distribution

From Norwest Corp

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Coal Deposits in Canada

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Genesee 3 – 450 MW Coal-Fired Plant First supercritical plant built

in Canada, owned 50% by EPCOR and 50% by TransAlta Environmental controls,

including FGD and fabric

filters, reduce NOx, SO2 and

particulate emissions well below

provincial standards This plant has an efficiency of 10% better than Alberta

average $695 million facility The license to operate requires EPCOR to offset its CO2

emissions down to Natural Gas Combined Cycle levels

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How do we make coal (carbon) cleaner by removing the CO2Existing Plants

Oxy-fuel Amine or Sorbent Recovery

New Plants Integrated gas combined cycle (IGCC) using

gasification Methanization Ultra Super-Critical with carbon capture

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Amine Recovery-Post-Combustion Capture

Flue Gasfrom Plant

CO2

StripperReboiler

CO2 to Cleanup

andCompression

CleanedFlue Gas toAtmosphere

CO2Stripper

AbsorberTower

Issues

- High amine regeneration heat load

- Fate of mercury in amine system

Steam

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Amine (post combustion capture)Advantages Can be retrofitted to existing plants Can use the low grade waste heat to help increase

the efficiency of the processConcerns Not technically proven at power production plant

scale Fate of mercury in the flue gas stream Regeneration of the amine parasitic to the overall

efficiency of the plant

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Oxyfuel CombustionAir Nitrogen

Coal

Flue gas

~97% CO 2Boiler

Drier

Water

AirSeparation

Compressor

G

TurbineGenerator

Feed Pump

Oxygen

Flue Gas (~97% CO 2)

Recycle ~75%

Issues- Boiler

performance with recycle flue gas

- Air entrainment

- Power consumed for oxygen production

- Quality of CO2

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Oxy-Fuel Combustion

Advantages Can be retrofitted to existing plants Produces a CO2 flue gas with no nitrogenConcerns Not technically proven at power production plant

scale Fate of mercury in the flue gas stream Oxygen plant parasitic to the overall efficiency of the

plant which results in more CO2 being created and lower plant efficiency

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Integrated Gasification Combined Cycle with CO2 Extraction

FuelPreparation Gasifier

Gas Cooling

GasCleaning

ShiftReactor

CO2Extraction

GasTurbine

Waste HeatBoiler

SteamTurbine

CO2 Cleanup& Compression

Air

Coal

Water

Slag Sulphur, Mercury &Particulates

CO2 toPipeline

Hydrogen

Flue GasTo

Atmosphere

ElectricPower

Electric Power

Air Separation

PlantOxygen

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Polygeneration Potential of Gasification

H2(upgrading)

Coal, coke, etc.

Gasification

Synthesis Gas

Methanol

Methyl Acetate- cellulose- lacquers/paints- perfume- pharmaseuticals- synthetic flavoring

Acetic Anhydride- cellulose acetate- fiber- pesticides- aspirin/acetaminophen

Power & Steam(Electricity)

Naphtha

Waxes

FT Diesel Car Fuel

Acetic Acid- food preservative- cellulose- lacquers- plastics- rayon- solvents

Town Gas(low cost/low grade gas)

Ammonia& Urea(fertilizer)

Dimethyl Ether- aerosol propellant- refrigerant- fuel in welding

Ethylene & Propylene- food ripening agent- plastics- fibers- solvents- coatings

CO2

(EOR, sequestration, ECBM)

Adapted from Eastman Chemicals

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Eastman Chemicals – Gasification Since 1982

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Advantages of Gasification

Carbon capture integrated into the process and capture can be achieved at a relatively low cost

No NOx (Nitrous oxides) Low cost and high efficiency mercury capture Produces other marketable products through the

gasification process Uses less water than a pulverized coal plant Deals with heavy metals which are encased in the

slag produced

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Concerns with Gasification

Not suitable for retrofitting to existing plants, so most PC plants would still be operating for some time in the future

Higher cost than PC plants Not considered technically proven by many The production of power is one of the least

value added products from gasification today Difficult to finance

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The Great Plains Synfuels Plant is shown in the foreground in Beulah, North Dakota; Antelope Valley Station in the background.

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Methanation Process

Steam carbon

C+H20 =CO+H2 Water gas shift

CO+H20 = H2+CO2 Hydro-gasification

2H2 + C = CH4

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Ultra Super-Critical

Potential of 45-50% efficiency Focus of development work in Europe Motivation is high fuel costs Requires dramatic improvements in materials

technology because of the high temperatures and pressures

Because of higher efficiency, can reduce CO2 emissions by more than 30%

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Geological Sequestration of Carbon Dioxide

ReginaRegina

EstevanEstevan

BismarckBismarck

North DakotaNorth DakotaMontanaMontana

ManitobaManitoba

SaskatchewanSaskatchewan CanadaCanada

USAUSA

WeyburnWeyburn

BeulahBeulah

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Value of Enhanced Oil Recovery

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Sleipner Project –North Sea

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Geological Formations to Store CO2 from Major Point Sources

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Current status of clean coal (carbon) Gasification projects booming in China but not to

produce power – mostly chemicals and fertilizer Clean power projects that have been announced

have been shelved because of high cost (Saskpower, Tampa Electric) and uncertain regulations, ie CO2

UK not supporting IGCC but are very interested in post combustion cleanup.

Many clean power projects have been announced in the US to take advantage of subsidies, but few are at the permitted or construction stage

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Current status of clean coal cont’d A lot of research and demonstration being done on a

back end capture of CO2 EPCOR proceeding with a $33 million front end

engineering study for a 275 MW IGCC plant at Genesee

Developers in the US are turning to petcoke as a low cost, high BTU, low moisture feedstock as an alternative to coal

One Alberta upgrader (Opti-Nexen) is gasifying their asphaltenes to produce H2 and power for their own use.

Other planned upgraders do not find it economical to produce power, only hydrogen

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SummaryToday Tight gas and shale gas production in the US has

provided ample gas supply which has helped to keep natural gas prices low.

Natural gas is the base case for new power generation Capital costs for gasifiers have increased significantly

world wide The majority of coal power plants being built today in

the world are supercritical without CCS, which have lower emissions and higher efficiency than the vintage subcritical plants

The focus for new power generation is on renewables

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Summary (continued)Tomorrow Coal plants will remain as the largest producer of

electricity. Some will have CO2 mitigation Renewable energy will become mainstream and will

overtake gas Nuclear will have a resurgence but costs will be high The penalties for emitting CO2 will rise and CO2

markets will emerge Carbon capture and sequestration will add significant

costs to coal power generation Power may become a by-product in the production of

other higher valued products