energy and advanced coal utilization strategy in china

Energy and Advanced Coal Utilization Strategy in China

Prof. Ni WeidouTsinghua University

Chairman of Steering Committee of

Tsinghua-BP Clean Energy Research and Education Centre

Member of Chinese Academy of Engineering

Chairman of Science and Technology Commission of Ministry of Education

ContentsTsinghua BP Clean Energy Centre

Present energy situation in China

China’s energy demand in 2020

Five challenges China is facing and general conclusions

Strategy for coal utilization

Urgent actions should be taken

Five challenges China is facing

Enormous energy demand

Shortage of liquid fuels

Severe environmental pollution

Greenhouse gas emissions

Rural energy supply

China’s Present Energy SituationThe total primary energy consumption and production were 1165Mtoe and 1120Mtoe in 2003, respectivelyCoal of the dominate primary energy accounts for nearly 70% The per capita energy consumption is only half of the world average level

GDP per capita comparison of countries, in USD

42318

31707 30845 2895926071

12068

5462

1000

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Japan Germany America France Singapore Korea The average China

注：1995年价

资料来源：《日本能源经济统计手册》（2002）

Per capita energy consumption in toe

4.07 4.11

8.14

4.35

5.74 5.69

0.698

3.85

0123456789

JapanGerm

anyAmerica

FranceSingapore

Australia

China EU

注：1999年数据，资料来源：《日本能源经济年鉴》（2000）

China’s Present Power Generation Situation

The total power capacity: 370 GWSignificantly increasing of energy

consumption, especially oil, in recent years due to - the faster growth of heavy industries- upgrade of consumption structure - urbanization

The Projection of Energy Demand

The total energy demand in 2020 will range 1750-2310Mtoe in terms of different scenarios

Coal：2100~2900Mt Oil：400~500MtNatural gas ：160~200 b m3

Power generation capacity：860-950 GWIn 2050 the total energy demand will be beyond 3500Mtoe

13

0

10

20

30

40

50

60

2002 2010 2020 2030 2040 2050 （年份）

（单

位：

亿吨

标煤

）

可再生能源

核能

水电

天然气

石油

煤

一次能源消费

The Energy Production Scenarios

China will be facing the challenges in the future

1、The energy securityThe per capita energy reserves of China are much low, especially for the oil and natural gasOil will reach the peak production around 200Mt

in 2020, after then the production will decrease60% oil and natural gas in 2020 will depend on

import 100Mt coal production new capacity will be set-

up before 2020

0

1

2

3

4

5

6

7

8

2000 2010 2020 2030 2040 2050

年份

100Mt

需求量国内产量

Increasing Dependence on Oil Import

Huge Demand (Market) of LPG in China for Residential and Vehicle Use

China’s DME consumption ranks 3rd in the world – 19.3 mil. t. in 2003Mainly for residential use, for vehicles as wellFrom 1990, LPG consumption increase rate – more than 20%, the highest in the worldBecause of the limited domestic production – the 2nd largest import country

Huge demandof LPG

Rely onimport

Market of DMEas alternative of

LPG

19.33

7.18

22

8.22

29.5

11.52

2003 Real 2005 Prediction 2010 Prediction

Unit: mil. t.

LPG ConsumptionDME as LPG alter.

•LPG annual import increase rate: 7％•LPG : DME equivalent set to be 1:1.15

Huge Market of DME as Alternative of Diesel Fuel in China

• Half of diesel oil for highway and long-distance transportation, it is the main market of DME

84.34

5.95

105.46

14.87

129.9

27.47

2005 2010 2015

Unit: mil. t.

Predicted demand of dieselfuel

Predicted Demand of DME asalternative of diesel oil (5%,10% and 15% up to 2015)


The energy consumption intensity of GDP of China in 2000 was 0.89kgoe/$US, 3.34 times of world average level and 4.63 times of OECD average attributed to as high as 42% industrial proportion in GDP and low value added for most products, and low energy efficiency.

The specific energy consumption for most energy intensive products are as 20-50% higher than that of the industrial countries.

22、、Energy efficiency improvementEnergy efficiency improvement


The SO2 and NOx pollutant could be 40Mt and 35Mt and exceed 16Mt and 19Mt of the pollutant limits, respectively, in 2020 if no additional control measures will be taken

China is the second largest CO2 emission country, it would increase in the future

33、Environmental impact of energy pollutant

Energy Strategic GoalMeet energy needs for sustainable

development

Ensure social and economic security

Improve air quality

by promoting

Energy efficiency and clean use

Diversified energy supply

Intermediate objectives (2020)2020: fourfold GDP with double energy

consumptionPremium on energy conversation by adjusting industrial structure, upgrading products, and energy efficiency improvement Ensuring increasing energy demands by fundamental role of coal supply and application of high efficient and environmentally sound technologiesTackling the needs of oil and natural gas by efficiency improvement, fuel substitution, exploration of new reserve, diversifying supply sources, and oil emergency reservation

Intermediate objectives (2035)2035: fundamental change

for diversifying energy supplyFostering nuclear power development and increasing proportion of nuclear in total power generation to 16% around 2035

Accelerating renewable energy scaling-up application

Commercial application of hydrogen fuel cell vehicle in main cities

Intermediate objectives (2050)2050：towards to sustainable energy

Reducing coal proportion in total primary energy below 50%

Providing new increasing energy demands mainly by nuclear and renewable and contributing more than 30% proportion in total primary energy after 2035

Hydrogen power becoming main component of transportation and substantially reducing dependence on oil import

Priority Programs From the LT S&T Strategy

Technologies for energy efficiency

Clean coal technologies

The support technologies for protecting oil security

Advanced nuclear technologies

Long distance transmission and grid reliability

Application of renewable energy

Hydrogen & fuel cell

Sustainable Use of CoalAccording to the sophisticated model study, to 2030~2050 with the constraints of

SO2, NOx emission

C—66Gt, 450 ppm

Less than 30~40% import oil

Modernization of coal utilization is unavoidableCoal will still be the main primary energy in China up to 2050 (50% or more)

Clean coal technology will be the most important problem from the energy supply and environment point of view

Sustainable Use of CoalRapid increase from 400 GW to 950 GW of power generation needs new approach and new technology beyond direct combustion—polygeneration, coproduction of power、liquid fuels、chemicals and syngas via coal (petcoke, residues, biomass…) gasification

Only polygeneration will make coal derived liquid fuel and clean power (IGCC) both competitive in comparison with coal-fired power generation and petroleum derived fuels (gasoline, diesel…)

Sustainable Use of Coal

Shortage of vehicle fuel could be solved by introduction of alternatives, that is methanol for gasoline and DME for diesel. This approach will lead to more efficient utilization of coal, much less emission of HC, NOx, soot…Furthermore, less GHG emission (CO2) according to the total life cycle analysis (LCA)

The modernization of coal use via gasification with steam shift (CO + H2O CO2 + H2) and separation of CO2 from H2, further, sequestration of “pure” CO2 is the best and most effective way for GHG mitigation

The strategy for coal utilizationPresent Strategy

Develop and employ large scale, higher parameter power units with emission control facility, (SC, USC, CFB, air cooling) to meet power generation demand

Large scale demonstration of polygeneration

Vision for sustainable coal utilization

Energy Carriers

ElectricitySteamTown gasMethanol/gasoline blendF-T/Diesel blendDME

End uses

IndustryTransportationDomesticTertiaryAgriculture

Near / Medium term

Energy Carriers

ElectricitySteamHydrogenDME

End uses


Long term

Infrastructure RequirementsNear / medium-term Medium / long- term Long-termHydrocarbons DME Hydrogen

FeedstocksCoal

Heavy oilsPetroleum residuals

BiomassWastes

Natural gas

Gasification(syngas generator)

POLYGENERATION

Energy Carriers

ElectricitySteamTown gasMethanol/gasoline blendF-T/Diesel blendDME

End uses


Near / Medium term

Energy Carriers

ElectricitySteamHydrogenDME

End uses


Long term



FeedstocksCoal

Heavy oilsPetroleum residuals

BiomassWastes

Natural gas

Gasification(syngas generator)

POLYGENERATION

Vision of coal utilization in China

Coal based Polygeneration for now and for the future

Integrated Resource-Energy-Environment System

AirSeperation

GasificationHigh Tem.Clean up

Air

Coal

petroleumcoke andresidue

O2

N2,ArNG

Heat/power/coolcogeneration

IGCC or GCC

chemicalproducts

Liquidfuel

others

Syngas

ShiftSteam

Seperation

Heat/power/coalcogeneration

Fuelcell

Large-scalepower

generation

Seque-stration

Dryice

ferti-lizer

algaeplantgrowth

CO2+H2

CO2

H2

Commercialbuilding

residential

enhancementof CBM

Integrated Gasification Combined Cycle

Simplified illustration of Polygeneration


Coal/petrol coke/residue→syngas→ elemental S

Syngas used for:– town gas, distributed CHP+cool

– large scale power generation(FC, CC)

– once through production of methanol

– once through production of liquid fuels (F-T liquid, DME)

– other chemicals


Syngas via shift/separation→H2:– urban vehicles via PEM-FC

– energy carrier for distributed power/heat/cool co-production

treatment of CO2: pure / easier to handle– raw material for fertilizer, chemicals, dry ice, planting

– enhancement production of coal bed methane (CBM)

– sequestration: deep sea/depleted NG field/salt aquifers

Features of Integrated Resource-Energy-Environment SystemIntegration of different processes: power /

heat / cool / chemicals– not only simple combination: simplification of

each single process, lowering investment and operation cost

– optimized coupling of processes: maximum economic & environmental benefit

– adjustment and compensation: “peak” and “valley” of different products

– benefit of large scale effect

Feature of Integrated Resource-Energy-Environment SystemHighly flexible and open

– diverse configurations in accordance to the different concrete situations

– step by step implementation

– extending with accumulation of funds and experiences

With more and more stringent environmental regulation, the advantages of coal gasification polygeneration will be more and more economically significant.

SO2+NOX SO2+NOX+Hg+PM2.5

SO2+NOX+Hg+PM2.5+CO2

New coal fired boiler

Gasification

Urgent actions should be taken（1）

Total Primary Energy Supply

0

20

40

60

80

100

120

140

160

1995

2000

2005

2010

2015

2020

2025

2030

2035

2040

2045

2050

1995

2000

2005

2010

2015

2020

2025

2030

2035

2040

2045

2050

BASE CASE Updated model Updated AdvTech with All Caps and Low Nuclear

Exaj

oule

s

EFFICIENCY

RENEWABLES

NUCLEAR

CBM

NGAS

OIL

COALGasification

COALCombustion

Base Technologies Advanced TechnologiesSO 2, 30% O il&G as, 66 G t C Caps

Scenario study (MARKEL model)

Urgent actions should be taken（2）The effect of Advanced Technologies Scenario

Provides the same energy services at about the same cost as the Base technologies strategy SO2 emissions are reduced from 23.7 Mt in 1995 to 16.2 Mt in 2020 and 8.8 Mt in 2050 Imports of oil and natural gas are limited to 30% of consumption of oil and gas over the long-term 66 Gt C caps

Urgent actions should be taken（3）

Projection for Coal Power Plant Capacity

0

100

200

300

400

500

600

2000 2005 2010 2015 2020

Gig

awat

ts

Post-2000 New Capacity

Pre-2000 Capacity

Urgent actions should be taken（4）Delaying the start of the transition to

coal gasification-based polygeneration technology would significantly increase: the costs to China of air pollution damages, the costs of oil imports, the costs of reducing GHG emissions.

Forecast of CO2 emission from different countries

CO2 emission of China

95%+ from energy activities

Coal is dominant primary energy, 2001 about 26.8EJ, 63.8% of total. Oil 10.8EJ, 25.7%.

In 2001, 76.8% of CO2emission from coal combustion, 21.1% from oil, 2.1% from natural gas

Annual emission growth rate: about 4%

Coal 63.8%26.8 EJ

Oil 25.7%10.8 EJ

Natural Gas 3.1%1.3 EJ

Hydraulic 6.9%2.9 EJ

Nuclear etc. 0.5%0.2 EJ

Coal 76.8%2.34 Gt

Oil 21.1%0.64 Gt

Natural gas2.1% 0.07 Gt

Total: 3.05 Gt CO2

CO2 emission trend of China

1960 1970 1980 1990 2000Year

0

4

8

12

108 to

ns o

f car

bon

Total Fossil Fuel CO2 EmissionsCO2 Emissions from Gas FuelsCO2 Emissions from Liquid FuelsCO2 Emissions from CoalCO2 Emissions from Cement ProductionCO2 Emissions from Gas Flaring

Analysis of power plants with CO2 mitigation

CO2 Emission (g C/kWh)

196

92.2

200211

19.927.629.510.90

50

100

150

200

250

NGCC Coal-SCS Coal-USC IGCC

CO2 VentedCO2 Captured

Analysis of power plants with CO2 mitigation (contd.)

Efficiency (% HHV)

43.142.740.5

53.6

373128.9

43.3

0102030405060


CO2 VentedCO2 Captured

Analysis of power plants with CO2 mitigation (contd.)

CO2 mitigation cost ($/ton C)

96.5

208.8209.5

310.5

0

50

100

150

200

250

300

350


Coal Gasification System Ready for Large-Scale H2 production and Utilization

Coal Gasification is the Core of Future New Thermal Cycles

When coupled with High Temperature Solid Oxide Fuel Cell (SOFC), the efficiency of IGCC-SOFC could be up to 60%~65%.SOFC has the similar function like Water Gas Shift for increasing CO2 concentration in syngas

Roadmap for Carbon Mitigation in China

Improvement of efficiencyRapid development of nuclear powerRenewable energy (wind, biomass, solar)Polygeneration via coal gasification

Without shift – less CO2

With shift – more CO2 could be separated

Partial decarbonization of syngas, combustion of H2-rich fuel gas in GTCC, SOFC hybrid, …Utilization of CO2 – fertilizer, EOR, enhancement of CBM recovery…Geological sequestration, survey of potential and possibilities of sequestration – depleted oil and gas fields, salt aquifers, deep sea… Infrastructure problems.

Thank You!

Xie xie

energy and advanced coal utilization strategy in china

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