POWER
Nick Otter
27th November 2007
“Zero Emission” Fossil Fuel Power Generation
: where are we heading?
FORUM ON FOSTERING INVESTMENT IN CLEANERELECTRICITY PRODUCTION FROM FOSSIL FUELS
UNECE Geneva Switzerland
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 2
Agenda
1st topic Why is the topic so important?
2nd topic What is it all about?
3rd topic What is happening in Europe and elsewhere?
4th topic What is the way forward?
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 3
Agenda
1st topic Why is the topic so important?
2nd topic What is it all about?
3rd topic What is happening in Europe and elsewhere?
4th topic What is the way forward?
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 4
Market Driver : GDP GrowthIncreasing demand for electricity
Growth of installedbase is ~linked to
GDP
World RealGDP ~ 3% pa
0
500
1000
1500
2000
2500
3000
3500
4000
4500
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04
35
25
15
5
Trillion2000 USD GW
Installed Base~ 3% pa
'05
Note: 180 GW missing due to unknown commission year,mainly Conventional ST, Hydro & OthersSource: Alstom, UDI
Old Fleet>30y : 1224 GW
Tot. Installed : 4231 GW
Tot. Installed : 4231 GW
Old Fleet>30y : 1224 GW
150 0 50100GW
050 100 150
Age
1
21
26
31
36
41
46
2005
Year
1995
1985
1975
1965
6
11
16
GW
ChinaASIALAMMEANAMEurope
ChinaASIALAMMEANAMEurope
OthersHydroNuclearConventional steamGasPlant (GT & CC)
OthersHydroNuclearConventional steamGasPlant (GT & CC)
Age pyramid of world installed capacity
2%
36%
42% 3%4%
13%
2%
36%
42% 3%4%
13%
1%
29%
4%
61%
5%1%
29%
4%
61%
5%
29 % of installed capacity older than 30
years
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 5
Market Driver : GeographySuccessive peaks in fundamentally growing market
Future growth - importance of
developing countries
Order volumes by region
Order Year
0
100
200
86 88 90 92 94 96 98 00 02 04
China
Asia excl. China
Americas
M EA
Europe
US Boom
China Boom
Forecast
GW / Y
0
100
200
86 88 90 92 94 96 98 00 02 04
Nuclear Plant
Hydro Plant
Gas Turbine Plant
Steam Plant
Gas Dominant Coal
Dominant Balanced Mix
Forecast
Future growth - importance of fossil fuels in a balanced
mix
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 6
Market Driver : EnvironmentPower generation industry: a major contributor to CO2emissions
0
5000
10000
15000
20000
2004 2030
million tonnes
Power Generation Industry Transport Residential & Services OtherSource: IEA
x2
* Includes agriculture and public sector** includes international marine bunkers, other transf ormation and non-energy use
CO2 emissions from fossil fuel combustion(reference scenario)
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 7
� Importance of clean use of fossil fuels, especially coal
� Importance of accelerating the take-up of clean fos sil
� Importance of addressing regionally and worldwide
“Take away” Messages Summary
� critical transitional issue for a sustainable energy fu ture
� an essential part of the portfolio
� cannot ignore fossil fuels
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 8
Agenda
1st topic Why is the topic so important?
2nd topic What is it all about?
3rd topic What is happening in Europe and elsewhere?
4th topic What is the way forward?
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 9
Pathway to zero emission power for fossil fuels
CarbonReduction
Time
Zero EmissionsTarget
Near-term Mid-term Long-term
High efficiency plant, one key element of zero emission
power generation
Framework/Market?Value of CO2?Policy/Regulation?Geography?
Capture ready concept90%
20%
Storage of CO2
EOR
an integrated approach to “zero emission”
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 10
Specific CO2-Emissions of Coal Power Plants
CO2 impact of efficiency increase
0
200
400
600
800
1000
1200
1400
25 30 35 40 45 50 55 60
Efficiency [%]
Spe
c. C
O2-
Em
issi
ons
[g/k
Wh]
- 35% CO2- 35% CO2
Status of Technology
Worldwide Average
- 42%- 42%
Advanced SteamPower Plant (700°C)
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 11
Power Plant with CO2 Capture Pipeline
UndergroundStorage
CO2 CO2
Process Chain of Carbon Capture and Storage
Saline Aquifers
Enhanced Oil Recovery
Storage Options
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 12
Carbon Capture Technologies
• Accepted need for a portfolio approach
• All technologies need to be addressed
• Retrofit and new plant applicationMain goal : Cost of CO 2
avoided: < 20 €/t CO 2
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 13
CO2 CAPTURE SOLUTIONSPre Combustion Solution for New Plants: IGCC+Capture
• CO2 Capture technology is proven and economical in other industries
• High Capital and Operating Costs
• Limited operation flexibility
• Plant retrofit: not generally possible
• Landspace 1,5 x PC plant for same MW
Coal gasification
Tampa Electric Company, Polk Power Station, 252 MWe , Mulberry, USA (FL)
Hydrogen-fired gas turbines
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 14
0
500
1000
1500
2000
2500
3000
1990 1995 2000 2005 2010 2015 2020
Hea
t of R
eact
ion
(BT
U/lb
)
Going down the “Experience Curve” forPost Combustion CO2 Capture
1995 2000 2005 2010 2015
Parsons- Study (Fluor)
ABB Lummus
ProcessOptimisation
AdvancedAmines
ProcessInnovations
ChillledAmmonia Process
Data of current projects
1,350 BTU/lb3150 kJ/kg
6000
5000
4000
3000
2000
1000
0
Hea
t of R
eact
ion
[kJ/
kg]
Process Optimisation
CO2 €/T 45-35 35-25 25-15 (not including transport and storage)
Advanced Amines
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 15
Development Plan of Chilled Ammonia Process
2006 2007 2008 2009 2010 2011
Main Steps
Laboratory Scale
• First technical hypotheses
Large Bench Scale (0,25 MWt)
• Optimize absorber design
• Establish absorber removal rate
• Demonstrate limited ammonia emissions
Field Pilot Scale (5 MWt)
• Validate key performance parameters
1
3
Demonstration Scale (30-40 MWt)
• System reliability4
2
Utility Scale (+200 MWt)
• Integration5
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 16
•Hea
tof R
eact
ion
(BT
U/lb
)
Going Down The Experience Curve forOxy Combustion CO2 Capture
2000 2010 2020 2030
Process Optimisation
Integration & Process Improvt
Process Innovation
400
375
300
250
200
150
Ene
rgy
requ
irem
ents
[KW
h / T
CO
2]
LargeDemos
Large ASU
Chemical Looping
ENCAP studies
Scale economy
Advanced Non cryo O2production
CO2 €/T 40-25 30-15 25-10 (not including transport and storage)
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 17
Chemical Looping Gasification
Advanced Capture Processes
• Oxygen Fired CFB
• Chemical Looping
�Combustion�Gasification
Chemical Looping Combustion
OxidizerReducer
CaS
CaSO4
CO2 & H2O
Coal,Limestone Air
Depleted Air, Ash,
CaSO4
OxidizerReducer
CaS
CaSO4
CO2 & H2O
Coal,Limestone Air
Depleted Air, Ash,
CaSO4
OxidizerReducer
Calciner
Cold Solids
CaCO3 CaO
CaS
CaSO4
Coal,Steam
CO2
Air
CaCO3
Depleted Air, Ash,CaSO4
Hot Solids
H2
CONDENSATE
GASRECIRCULATION
FAN
FLUIDIZINGGAS
BLOWER
COMBUSTOR
Cyc
lon
e
BA
CK
PA
SS
HE
AT
E
XC
HA
NG
ER
S
CFB Steam Generator Unit
ASHCOOLER
ExternalHeat
Exchanger
NITROGENAIR
INDUCED DRAFTFAN
AIRSEPARATION
UNIT
GasCooler
PARTICULATEREMOVALSYSTEM
OX
YG
EN
HE
AT
ER
PFWH
CO2-RICH PRODUCTTO GAS PROCESSING
SYSTEM
LIMESTONE
COAL
OXYGEN
AIRINFILTRATION
O2 fired CFB
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 18
Long term products: Oxy-fired PC,Oxy-fired CFB and Chemical Looping
2010 2016 - 202004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015
Commercialization
Oxy-fired PC
Lab scale tests (500kWt)
Demonstration scale tests (30MWt)
Utility scale tests (250MWe)
Oxy-fired CFB
Chemical Looping
1
2
3
4
Pilot scale (3MWt)
Demonstration Scale tests (10-40MWe)
Utility scale tests (>150MWe)
Commercialization4
2
3
1
1 Bench tests (10-100 kWt)
Pilot scale (1-3 MWt)
Demonstration scale tests 10-20 MWe
2
3
Com5
Source : ALSTOM analysis
Utility scale 50-100MWe4
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 19
30
40
50
60
70
80
90
1 2 3 4 5 6 7 8 9 10 11 12 13 14
CoE
($
/ M
Wh
net)
IGCC with Capture
SCPC with Ammonia Capture
Oxy PC SCPC without Capture
IGCC without Capture
SCPC with Advanced Amine
Capture
Oxy CFB
Cost discovery zone
Carbon capture technology comparison
Cost of electricity comparison
A portfolio of technologies must be validated at la rge scale
** Based on a 400 MWnet design, versus 650 Mwnet for other technologies
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 20
……….. multi-pollutant control
• Integrated APC system based around commercially proven and reliable technologies
• Uses readily available reagents
• Produces reusable byproduct(s)
• Superior cost/performance ratio:− Extremely compact design− Fewer moving parts reduces maintenance − Superior environmental performance
• Targeted emissions levels:− SO2: 0.02 lb/MMBTU (> 99.5%)− Hg: 1.0 lb/TBTU (> 90%)− PM: 0.01 lb/MMBTU (99.99%)− NOx: 0.05 lb/MMBTU w/SCR Controls SOx, PM10/PM2.5
Mercury & NOx
Not just CO2
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 21
Construction
…….. overall system performance and reliability
Air Preheater
Mills
Low NOx Systems- LNCFS- TFS 2000TM
- Fuel Switching
Burner NOx Retrofits- RSFC™- P2™
Research andDevelopment- Air Modeling Capabilities
- CFD Modeling
Environmental Systems- SNCR- FGD- Precipitators- Scrubbers
Transformer
Steam Turbine
ExisitingFGD
ExistingStack
2 stageCooling
Chiller
CO2Absorber
Regenerator
HX
CO2
HPPump
Wash
Wash
Reboiler
Schematic of Ammonia-based CO2 Capture System
Flue Gas
Water
Rich Slurry
Lean Slurry
CO2
Flue Gas
Purge
Lean AC
Rich ABC
120F
35F
Cooling & Cleaning of FG CO2 Absorption CO2 Regeneration
CO2 Capture
Importance of System Integration : more complex plant
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 22
..…preparing the way forward : CO2 “Capture Ready”Plant
Improve gas clean upOr possibility to add cleaning
Provisions for steam extractionsIncluding provisions for adding stagesIn the IP cylinder of the steam turbine
Control system adaptation
Provisions in arrangement planning
Provision for auxiliaryPower consumption
OptimisationOf the cooling systemRecovery of heat in the CO2 capture and compression
Optimisation of theBoiler surfaces accordingModifications of the heat load sharing
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 23
CO2 Transport and Storage
Key Issues
� Infrastructure Requirement
� Cost Reduction
� Public Acceptance
� Safe and Effective Storage
� Developing the Legal, Regulatory & Fiscal Framework
Safety and acceptance of CO2 storage
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 24
Agenda
1st topic Why is the topic so important?
2nd topic What is it all about?
3rd topic What is happening in Europe and elsewhere?
4th topic What is the way forward?
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 25
4th October 2007 ZEP Overview OTTER IFP CCS Conference Paris 4
ETP ZEP :Set-up and Vision
• Primary task to set and implement strategic researc h agenda (SRA) and deployment document (SDD) as a major European action
• Advisory Council formed in June 2005, updated June 2007 : individuals represent
– 6 Generators : E.ON, Endesa, Enel, Energi E2, RWE, Vattenfall – 6 Equipment suppliers : Ansaldo, ALSTOM, Air Liquide, Foster Wheeler, Doosan
Babcock, Siemens– 5 Oil and Gas : BP, Shell, Statoil, Total, Schlumberger– 6 Research : BGS, CIRCE, IFP, Polish CMI, GEUS, TU-Hamburg– 3 NGOs: Bellona, E3G, WWF– 1 Financeer : Morgan Stanley– Chair: Kurt Haege/Vattenfall Vice-Chairs: Olivier Appert/IFP, Gardiner Hill/BP, Charles
Soothill/ALSTOM, Frederic Hauge/Bellona
• Formally launched : 1 st December 2005
• First General Assembly, Brussels : 12-13 th December 2006• Second General Assembly, Paris : 3 rd October 2007
The Vision: To enable European fossil fuel power plants to have zero emission of CO 2 by 2020.
MAJOR EUROPEAN ACTION
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 26
4th October 2007 ZEP Overview OTTER IFP CCS Conference Paris 7
ETP ZEP :Strategic Recommendations
• Urgently implemen10-12 integrated large scale CCS demonstration projects EU-wide
• Establish a robust technology action across whole of CO2 chain
• Kick start the CO2 value chain with urgent short and long term commercial incentives
• Establish a regulatory framework for storage
• Gain public support through a comprehensive public information campaign
SRA : set a major R&D action to reduce costs and risks of deployment
SDD : accelerate the market for efficient zero emission power plant
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 27
� EU Energy Policy for Europe 2007-2009� “underlines importance of substantial improvements in generation efficiency and clean fossil fuel technologies”
� “urges Member States and EC to work towards strengthening R&D anddeveloping the necessary technical, economic and regulatory framework to bring environmentally safe CCS to deployment with new fossil-fuel power plants, if possible by 2020”
� “welcomes intention of EC to establish a mechanism to stimulate the construction and operation by 2015 of up to 12 demonstration plants of sustainable fossil fuel technologies in commercial power generation."
� EU Strategic Energy Technology [SET] Plan� priority item for Spring 2008� specific reference to CCS as part of plan
Output from EU 2007 Spring Council
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 28
ETP ZEP :Scope of the EU Flagship Programme
Type of CO 2
Infrastructure Plant
technology
Trapping mechanism
(single phase gravitational, dissolution, residual, mineral; over different
timescales)
Storage geology
(cap rock and reservoir quality, overall
properties, volume etc)
Storage type (aquifers, exhausted
petroleum structures, EGR, EOR,
CBM/ECBM)
Fuel type
Capture technology
Public perception
(factors influencing the public
acceptance)
Geographical location
Portfolio of up to 12
demonstration plants give sufficient
confidence to do CCS at
scale
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 29
Worldwide Engagement
• Carbon Sequestration Leadership Forum (CSLF)− CSLF Technology Route Map− CSLF Project Portfolio− CSLF Stakeholder engagement
• G8 Action Plan− Financial Mechanisms/World Bank− `Capture Ready` Technology/IEA− CCT data base and worldwide case studies
• IPCC Special Report on CCS− Summary for Policy Makers : issued Sept06− Topic embraced by 2007 IPCC Report : Feb07
Australia
BrazilCanada
ChinaColombiaDenmark (new)
European CommissionFrance (new)
Germany (new)IndiaItaly
Japan
MexicoNetherlands (new)
NorwayRepublic of Korea (new)Russian Federation
Saudi Arabia (new)South Africa (new)
UKUSAGreece (applied)
Thrust for co-ordination and engagement internationally
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 30
Agenda
1st topic Why is the topic so important?
2nd topic What is it all about?
3rd topic What is happening in Europe and elsewhere?
4th topic What is the way forward?
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 31
Lighthouse Project of RWE‘s Climate Strategy:The zero-CO 2 power plant
gasificationgas conditioningCO2 separation
gas and steamturbines
CO2
dry coal
H2
electricity
coal drying
Aquifer
2,000 –3,000 m
pit coal
Industry getting ready …………many projects being announced …… but the right regulatory and
fiscal conditions needed
Acknowledgement to RWE, EON, SSE, NUON, Vattenfall, TOTAL, Statoil
Industry oriented actions : large scale demonstration
A portfolio of technologies must be validated at la rge scale
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 32
4th October 2007 ZEP Overview OTTER IFP CCS Conference Paris 2424
ETP ZEP :Importance of pan-EU infrastructure/storage
Oil fields
Gas fieldsCoal fields
IndustrialCenters
Potential Storage Sites
Fossil fuel pp
Flagship projects Flagship projects will find adequate will find adequate storage optionsstorage options
Large lines will be Large lines will be away from cities away from cities
Safety and Safety and regulatory regulatory
oversight will be oversight will be paramountparamount
EuropeEurope ’’s geography will s geography will limit interconnectionlimit interconnection
Large lines will Large lines will carry up to 60Mt/yrcarry up to 60Mt/yr
UNECE ZEPG OTTER Geneva - 27th November 2007 - P 33
� Importance of clean use of fossil fuels� a critical transitional issue in getting to a sustainable energy future� an essential part of the portfolio
� Importance of accelerating the take-up of clean fos sil�need for incentives for early action on `zero emission` power plant�stable financial and regulatory framework to get “many of a kind”
� Importance of addressing issue worldwide� use of high efficiency technologies, and ……….� …………. prepare the way `zero emission`
• retrofitting of high efficient coal plant with capture to avoid “carbon lock-in”• how to ensure new plant is “capture ready”• use of low carbon technologies for new plant
Concluding Remarks
Urgent need for action
POWER
27th November 2007FORUM ON FOSTERING INVESTMENT IN CLEANERELECTRICITY PRODUCTION FROM FOSSIL FUELS
UNECE Geneva Switzerland
thank you for listening
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