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David Mohler
Deputy Assistant Secretary
Office of Clean Coal and Carbon Management
Clean Power Plan Policy Workshop
November 10-11, 2015
2
Coal plays a significant role in many states
IL52 M
tons/yr
WY388 M
tons/yr
PA54 M tons/yr
KY80 M tons/yr
WV
113 M tons/yr
Other key coal states: Alabama, Colorado, Montana, New Mexico, North Dakota, Ohio, Texas, Virginia
3
Coal’s role is shrinking
Coal’s Share of Total US Energy Production
High Oil and Gas Resource Case
• Falls from 26% in 2013 to 15% in 2040
Reference Case
• Remains slightly above 20% through 2040
Low Oil Price Case
• Remains essentially flat at 23% through 2040
Annual Energy Outlook 2015
4
Concern in states about coal’s diminishing role
“As we develop our future energy policies, we must also focus on the livelihood of hard-working miners and families who are responsible for keeping America’s lights on.”Senator Manchin (D-WV)
“EPA’s final rule for existing power plants…is totally unworkable as written for North Dakota’s utilities and regulators without causing severe reliability issues and massive rate increases.” Senator Heitkamp (R-ND)
“I have been very pro-employment to southern Illinois. With this rule applied, I don't think we can keep a lot of people in Illinois happily employed.” Senator Kirk (R-IL)
5
Total Emissions from Coal-Fired GenerationDramatic Reduction Despite Increase in Usage
-100%
-50%
0%
50%
100%
150%
200%
1970 1975 1980 1985 1990 1995 2000 2005 2010 2014
Ch
an
ges f
rom
1970
CoalkWh
SOx
tons
NOx
tons
PM10tons
+125%
-64%-82%-84%
6
Clean Power Plan (under Section 111 of the Clean Air Act)
• The Clean Power Plan addresses carbon pollution from new and existing power plants, including plant modifications
• 111b: new, modified, and reconstructed sources– Coal: 1,400 lbs CO2/MWh emission standard– Natural gas: 1,000 lbs CO2/MWh emission standard
• 111d: existing sources– Partnership between EPA, states, tribes, and US territories– EPA sets a goal and states/tribes/territories choose how they will meet it, initial state
plans are due by June 30, 2016 or states can file for an extension– Best System of Emissions Reduction (BSER) includes plant heat rate improvements, fuel
switching (to natural gas), and adding renewables
7
States with Financial Incentives for CCS
Source : C2ES http://www.c2es.org/us-states-regions
8
President’s FE portfolio and FY 16 budget
• Loan Program Office: $8B in clean fossil authorities
• ARRA projects: >$4.5B commitment
• Tax credit proposal: comparable to renewable ITC’s + PTC’s
• $2B ITC credits: 30% capital investment (incl. infrastructure)
• Uncapped (!) STC’s (sequestration tax credits) – scored at $3B
• New authorities, not extensions/modifications of existing
• FE RD&D: $564M for FY16; $400M for clean coal and CCUS
More than just FE RD&D budget
9
FE Clean Coal Program HighlightsCarbon Capture
Post-combustion Pre-combustionOxy-combustion
SolventsSorbents
Membranes
Advanced Energy SystemsGasification/Combined Cycle
Advanced CombustionCoal and Coal-Biomass to Liquids
Solid Oxide Fuel CellsAdvanced Turbines
Carbon Storage
Regional PartnershipsMonitoring, Verification, and AccountingCarbon Storage AtlasRisk AssessmentCO2 Utilization
Crosscutting Research
Sensors and ControlsHigh-Performance MaterialsWater Management R&DModeling and Simulation
10
TRL 2 Successes from FWP,
SBIR/STTR, ARPA-E
Transfer to Office of Major Demonstrations
Scope of Capture Program
“Valley of Death” for Technologies
Pathway for Technology Commercialization
Small- and Large-scale Pilot Projects: Reducing the risk for demonstration
25 MW Solvent Heat Integration MHI KS1 Solvent
1 MW Solid Sorbent Pilot
(ADA-ES)
1 MW Solvent Pilot(Linde)
1 MW Solvent System
(Univ. of KY)
1 MW Solvent Pilot
(Neumann)
1 MW Membrane
System (MTR)
11
NCCC: 0.5 MW PSTU, Ion Engineering, GE
TCM 13MWe Solvent Unit
Green Field Plant10+MWe
1:100
10-25 Mwe Greenfield Capture Facility
1:10
Large-ScaleDemonstrations
12
Carbon Capture Program Highlights
• National Carbon Capture Center
– Test technologies under realistic conditions to reduce the cost of advanced coal-fueled power plants with CO2 capture
– Over 20 technologies tested from laboratory to small pilot-scale
• 1 MW-scale pilot projects− Linde/BASF − GE Global Research− Membrane Technology and Research Inc. (MTR)− Gas Technology Institute (GTI)− SRI International
13
BIG SKY
WESTCARB
SWP
PCOR
MGSC
SECARB
MRCSP
Regional Carbon Sequestration PartnershipsDeveloping the Infrastructure for Wide Scale Deployment
Seven Regional Partnerships400+ distinct organizations, 43 states, 4 Canadian Provinces
• Engage regional, state, and local governments
• Determine regional sequestration benefits
• Baseline region for sources and sinks
• Establish monitoring and verification protocols
• Address regulatory, environmental, and outreach issues
• Validate sequestration technology and infrastructure
Development Phase (2008-2018+)
8 large scale injections (over 1 million tons each)
Commercial scale understanding
Regulatory, liability, ownership issues
Validation Phase (2005-2011)
20 injection tests in saline formations, depleted oil, unmineable coal seams, and basalt
Characterization Phase (2003-2005)
Search of potential storage locations and CO2 sources
Found potential for 100’s of years of storage
14
Best Practices ManualVersion 1(Phase II)
Version 2(Phase III)
Final Version
(Post-Injection)
Monitoring, Verification and Accounting
2009/2012 2016 2020
Public Outreach and Education 2009 2016 2020
Site Characterization 2010 2016 2020
Geologic Storage Formation Classification
2010 2016 2020
**Simulation and Risk Assessment 2010 2016 2020
**Carbon Storage Systems and Well Management Activities
2011 2016 2020
Terrestrial 2010 2016 – Post MVA Phase III
**Regulatory Issues will be addressed within various BPMs
Critical Requirement For Significant Wide Scale Deployment -Capturing Lessons Learned
Carbon Storage Best Practice Manuals
15
Port Arthur, TX: : 1.1 M tons/yr CO2Air Products, 2013
VSA VesselsVSA Vessels
Co-Gen Unit
Blowers
CO2 Compressor & TEG Unit CO2 Surge
Tanks
Existing SMR
Operational - 2.5 million metric tons stored so far
16
W.A. Parrish, TXNRG/PetraNova project
New Business Model
Kemper County Energy Facility CCPI DemonstrationSouthern Company Kemper IGCC
Kemper Site Visit May 12, 2015
Current Project Status
•Plant ~98% complete
•First Lignite feed and clean syngas production from first gasifier: Oct 2015
•Operation: early 2016
Project Background• Kemper County, MS
• 582 MW (net) poly generation plant
• >67% CO2 capture; ~ 3,000,000 Tonnes CO2/year for EOR
• DOE cost share $270 million CCPI-2
18
Boundary Dam, : 1.1M tons/y CO2Saskpower, Saskatchewan
Operational Oct. 1st
19
Large Scale Integrated Projects World Wide
0
20
40
60
80
100
120
140
0
10
20
30
40
50
60
19
72
19
82
19
86
19
96
20
00
20
04
20
08
20
10
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
22
Operate Execute Define Evaluate Cum. Volume
Nu
mb
er o
f P
roje
cts
Vo
lum
e CO
2(m
tpa)
Data from Global CCS Institute
20
International Collaboration
• Conduct joint R&D and large scale demonstration projects– Quest, White Rose
• Exchange information and best practices– Technologies, regulations, policy, financing
• Build capacity for new technologies and applications– CO2 utilization, capture technologies
• Promote U.S. exports– Technology deployment
• Seek foreign direct investment in domestic demonstrations– TCEP, PetraNova
International Partnerships
Ongoing Collaboration– Canada
– China
– India
– Japan
– Norway
– Saudi Arabia
– UAE
– UK
21
Future Collaboration– Algeria
– Colombia
– Czech Republic
– Egypt
– Morocco
– Netherlands
– Poland
– Qatar
– Romania
– Serbia
– Others???
Expanding Collaboration– Brazil
– Indonesia
– Italy
– Mexico
– South Africa
– South Korea
– European Commission
22
6th CSLF Ministerial
• Secretary Moniz announced new CO2 Storage Network– Global Large-Scale Saline Storage Project Network
• Will share best practices, operational experience, and key lessons
• Romania and Serbia joined the CSLF
• Recognized 5 additional CCS projects, making a total of 49 active and completed CSLF-recognized projects
• Advocated the need for CCS to compete on a comparable basis with other clean energy options
November 1-5, 2015Riyadh, Saudi Arabia
23
New Policy Can Prompt Innovation
• CCS is an option for achieving reductions under 111b and 111d
• Need to continue to advocate for low carbon policy parity
• Must continue information sharing, international partnerships, and spurring innovation
24
Reference Slides
25
Low Carbon Policy Parity
http://hub.globalccsinstitute.com/sites/default/files/publications/195008/costs-ccs-other-low-carbon-technologies-united-states-2015-update.pdf
26
U.S. Annual Energy Outlook, 2015Business as usual without Clean Power Plan
27
Annual Electricity Generation in the US2008-2013
United States Annual Electricity Generation (MWh) 2008 - 2013 Total Capacity (MW)
Source 2008 2013 Change % Change 2013
Coal 1,985,801 1,584,194 -401,607 -20.2% 312,293
Natural Gas 882,981 1,125,691 242,710 27.5% 455,214
Nuclear 806,208 789,016 -17,192 -2.1% 104,182
Hydroelectric 254,831 268,548 13,717 5.4% 78,215
Solar 864 9,022 8,158 944.2% 3,053
Wind 55,363 167,992 112,629 203.4% 59,082
Geothermal 14,840 15,775 935 6.3% 2,782
Biomass 55,034 61,885 6,851 12.4% 4,885
Other 63,466 48,904 -14,562 -22.9% 84,753
Total 4,119,388 4,071,027 -48,361 -1.2% 1,104,459