Bridging the Gap between Technology

Platforms for Power and Hydrogen

Nick Otter Director of Technology and External Affairs, ALSTOM Power Ltd

EC Expert Workshop

Synergies between HYPOGEN and Hydrogen Economy

EC Brussels 18th January 2007

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 2

INTRODUCTION and PERSPECTIVE

INTERACTIONS, INITIATIVES and STRATEGIC POSITIONING OF “ZEPG” and “HYDROGEN” ARENAS

GAPS/ISSUES

WHAT TO DO ABOUT THEM?

Contents of Presentation

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 3

INTRODUCTION and PERSPECTIVE

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 4

Near Term Global Position

0

20

40

60

80

100

120

140

160

180

200

220

54 59 64 69 74 79 84 89 94 99 04Order Year

An

nu

al

Ord

ers

[G

W/a

]

Sources: ALSTOM, RDI Newgen July 2004 - GT & ST >= 3 MW , & Hydro >=10 & Diesel >= 1 MW

- before 1974: data poor & excluding diesel.Hydro estimated from UDI

- 216 GW in 2003, cancelled units excluded, at risk of cancellation included

15 yea

rs

10 years NAM

LAM

China

Asia

MEA

Europe

Market Development50 Years of Order Volumes by Regions

At Risk of

Cancellation

Post WW IIeconomic

development

Oil crisis Liberalization &

emerging Asia

USmerchants

emerge

Market Intelligence / Market / MK 506 St / 30 08 2004

Recent Power Investment Peak Led by North America

Then by China

15 y

ears

Significant market changes …………..increased liberalisation,

de/re-regulation and privatisation

Future growth

- importance of

developing

countries

- upsurge in China

and Asia

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 5

Long Term Energy Market

Different needs world-wide

- uneven access to modern energy

Growth of Renewable Energy and

potential resurgence of nuclear but ….

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

GW

Gas Coal Hydro Other renewables Oil Nuclear Fuel cells

IEA projections of

global power station

build to 2030

Capacity

IEA World Energy Outlook 2004

Continuing reliance

on fossil fuels – especially likes of

China and India

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 6

0

20

40

60

80

100

120

140

1 6 11 16 21 26 31 36 41 46

Others

Hydro

Nuclear

Conventional Steam

Gas Plant (GT & CC)

Age ofPower Plant

Source: UDI, BD/MI

GW 1054 GW >= 30 Years

1%

30%

3%

61%

5%Tot. Installed 2002 : 3791 GW

GW Volume of plants reaching 40 years of age, by year:

Average 35 GW / a

0

10

20

30

40

50

60

2000

2001

2002

2003

2004

2005

2006

2007

LAM

MEA

China

Asia

North America

Europe

Installed Base Capacity - Aging Fleet

• Over 1/4 of world-wide capacity

is more than 30 years old

….. a lot in the developed world

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 7

Environment – What happens post 2012?

– 60% GHG reductions by 2050?

Environmental Issues -

`longer term` aspects

Mitigating climate change : cannot ignore fossil fuels

0

1 0 0 0

2 0 0 0

3 0 0 0

4 0 0 0

5 0 0 0

6 0 0 0

7 0 0 0

8 0 0 0

9 0 0 0

1 0 0 0 0

1 9 9 0 2 0 0 0 2 0 1 0 2 0 2 0 2 0 3 0

Mt

of

CO

2

E u ro p e a n U n io n E U & A c c e s s io n C o u n t rie sU S A B ra z i lIn d ia C h in aJa p a n

Forecasted CO2 Increases Source: EC/EEA, 2004

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 8

INTERACTIONS, INITIATIVES and STRATEGIC

POSITIONING

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 9

12

1MWe System

Schematic

Design Layout

Gas Turbine

+ Solid Oxide Fuel Cell (SOFC)

Fuel Cell Pressure

VesselGas Turbine

& Generator

Recuperator and

Water Heater

Natural Gas SupplyReformer Unit

CO2 Protocol and

related issues

Improve Efficiency

Zero Emission

including CO2

Capture

Transport

and storage

of CO2

Fuels Cells

Use of CO2 eg EOR

Hydrogen

Interactions : ZEPG/H2 Issues

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 10

CO2 Protocol and

related issues

An overall strategic framework embracing clean fossil fuels

as a key element of a sustainable energy portfolio

Improve Efficiency

Zero Emission

including CO2

Capture

Transport

and storage

of CO2

Fuels Cells

Use of CO2 eg EOR

Fuel Cell and

Hydrogen

Initiatives

Clean Fossil

Fuel

Initiatives

Hydrogen

International Partnership

for Hydrogen Economy

IPHE

Carbon Sequestration

Leadership Forum

CSLF

Strategic Fit

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 11

European Actions

ETP on Zero Emission

Fossil Fuel Power Plant

ZEP

ETP on Hydrogen and

Fuel Cells

HFP

Major EU-wide Actions

• Stakeholder

• Government ERA “FENCO” ERA “HYCO”

Independent actions

CO2 Protocol and

related issues

Improve Efficiency

Zero Emission

including CO2

Capture

Transport

and storage

of CO2

Fuels Cells

Use of CO2eg EOR

Fuel Cell and

Hydrogen

Initiatives

Clean Fossil

Fuel

InitiativesHydrogen

International Partnership

for Hydrogen Economy

IPHE

Carbon Sequestration

Leadership Forum

CSLF

EC “FAST TRACK” Initiatives

HYPOGEN HYCOM

Not a fully integrated approach

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 12

ISSUES and GAPS

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 13

Issues

Integrated Road Map

Timeframe

Market

Technology

Australian TRM

Sustainable Vision

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 14

Issues

Role of fossil fuels in production of Hydrogen

Pre-combustion CO2 capture systems : only part of the capture portfolio

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 15

Lighthouse Project of RWE‘s Climate Strategy:

The zero-CO2 power plant

gasificationgas conditioning

CO2 separation

gas and steam

turbines

CO2

dry coal

H2

electricity

coal drying

Aquifer

2,000 –

3,000 m

pit coal

8

Emergence of commercial size projects : need for 10-12 in

Europe as recommended by ETP ZEP

Industry Actions

mostly focussed on

“zero emission”

power generation

from fossil fuels

………………….

a step on the way?

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 16

Efficiency

Improvement

CO2

Capture

• pre

• post

• oxyfuel

CO2

Transport, Use

and Storage

Hydrogen

Production

Hydrogen

Use

ZEP HFP

DYNAMIS

a potential bridge

Bridging the Gaps

little or no interaction

separately pursued agendas

Scope/Remit

an available “vehicle”

how to use it effectively?

need for a more formalised relationship

ETP Gap Bridging ZEPG & Hydrogen OTTER Brussels 18th January 2007 17

ETP ZEP : next phase

• SRA and SDD published September 2006

• 2007 all about implementation

• 4 Task forces being formed :

• Technology

• Demonstration and Implementation

• Policy and Regulation

• Public Communication

• “Demonstration and Implementation” is obvious

area for developing interaction on ZEP/H2

• Next 6 months will be critical : so time is now to

initiate such interactions

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