ge energy igcc’s role in advancing coal carbon … can help ccs to crawl, walk, run combined cycle...
TRANSCRIPT
Our challenge is growing…
Reuters - Wednesday, September 24
NEW YORK - Nobel Peace Prize winner and environmental crusader Al Gore urged young people on Wednesday to engage in civil disobedience to stop the
t ti f l l t ith t thconstruction of coal plants without the ability to store carbon.
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US power sector carbon emissions3,000
Mt)
2006: Electric Power2.3 Gt, 40% of US
E S t CO2
2,000
2,500
nnes
(MEnergy Sector CO2 Emissions
1,500
etric
To
CoalPetroleumN t l G
2006: Coal1 928 Mt 83%
1,000
illion
MeNatural Gas 1,928 Mt, 83%
0
500 M2006: Oil55 Mt, 2% 2006: Natural Gas
340 Mt, 15%
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1949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004Source: Energy Information Administration (EIA)
The generation planner’s dilemmaLegislative &
?
Legislative & regulatory uncertainty
Public Utility Commissions
“Give me the lowestPolitical & enviro“Give me carbon
?
Give me the lowest cost” capture NOW”
Carbon credit pricing, incentives &
costs
Return & safety for shareholderscosts
Technology
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gyreadiness
What are the options for carbon?Power Sector
CO2 Reductions
Demandreduction
Fuelswitching
Alter theexpansion
plan
Replace ormodify existing
systemplan system
• Switch from high carbon to low carbon fuels
• More natural gas• Less
conventional l
• Energy efficiency• Demand-side
management
• Retirements• Plant efficiency
improvementscoal
• Coal with CCS• More nuclear• More renewables
• Conservation• Fuel substitution
• Retrofit CCS• Repowering• Refueling
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CCS needed to achieve GHG targetsto
ns)
3000
3500
3000
3500
3000
3500
3000
3500
CCS
Sect
oron
met
ric t
2500
3000 EIA Base Case 2007
2500
3000
2500
3000
2500
3000
EfficiencyAdvanced Coal
RenewablesNuclear
CCS
. Ele
ctric
Son
s (m
illio
1500
2000
1500
2000 CCS1500
2000
1500
2000 NuclearPHEV
U.S
.O
2Em
issi
o
500
1000
500
1000
500
1000
500
1000
CO
01990 1995 2000 2005 2010 2015 2020 2025 2030
01990 1995 2000 2005 2010 2015 2020 2025 2030
01990 1995 2000 2005 2010 2015 2020 2025 2030
01990 1995 2000 2005 2010 2015 2020 2025 2030
© 2008 Electric Power Research Institute, Inc. All rights reserved
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Source: EPRI Prism Analysis
Policy and regulatory gaps
Carbon Capture
CO2Transport
CO2StorageCapture Transport Storage
No current carbon valueRequired levels of
Major national infrastructure investmentCoal plant may require
Ownership of CO2 & long-term liabilityProperty rights &Required levels of
capture undefinedExpected to be defined by federal
Coal plant may require 100kms of pipeline to storageWill cross jurisdiction
Property rights & trespassOwnership of “pore space” y
climate change billCap & trade would provide market price
jboundaries & land ownershipEminent domain debate
pUnderground plumes can cover 100’s of square miles
Early incentives needed
Can cross state and even international boundaries St t F d l
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State vs. Federal jurisdiction
We need a playbook for offense• Carbon Capture Ready
– Meets well-defined criteriaReady for expected CO2 trigger – Ready for expected CO2 trigger price under cap and trade
• Crawl/Walk/Run– Partial=>NGCC=>85%-90%
• Permitting– Pro-forma CO2 BACT analysisPro forma CO2 BACT analysis– CCS NGCC min base, O&M– Trigger price for retrofit
• Infrastructure investment– Economic benefits flowdown– Jobs, energy security, jobs
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Jobs, energy security, jobs
1st play – Carbon Capture ReadyTh d N l l tThe need: New coal plants
When can we build them?
Now - for plants meeting clear, well-defined requirements for carbon capture readinessbuild them? requirements for carbon capture readiness
When do we capture?
When carbon has value, regulatory clarity and relief on liability for stored CO2
How much do we capture?
65% capture for parity with natural gas combined cycle
Wh t CO S it bl f i t i i i j ti it tWhat CO2quality do we need?
Suitable for maintaining injectivity, storage capacity + optimized for minimum total cost of capture, transport and injection.
What else is Policy that sets carbon value at avoidance cost +What else is needed?
Policy that sets carbon value at avoidance cost + incentives for early movers + regulatory clarity on liability and standards
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All processes and components are in Inventions and those in early technology
Defining carbon capture readyp p
commercial application todayy gy
development do not qualify.
Components should be at, or within accepted engineering limits of scale-up
Technology still requiring pilot scale-up for validation do not qualify.
Incremental investment is needed only for addition of components and process steps.
No significant modification, underutilization or scrapping of existing major equipment
Site utilities – e.g. once-through and makeup Post combustion capture likely to require g g pwater – are sufficient for operation with CC
p y qsignificantly more water with CC
Plant space is reserved and adequate for specific process components and layout.
Supported by engineering analysis with heat and mass balances for component sizing.
Potential life-of-plant sequestration resources and access identified
Candidate primary sequestration sinks as well as back-up sites screened.
CO2 quality must be suitable for Compatible with reservoir geochemistry, well CO2 quality must be suitable for sequestration.
Compatible with reservoir geochemistry, well life, maintenance of injectivity and capacity.
Deferring retrofit will incur <10% economic penalty in avoided cost of carbon.
Incentive for adding CC when carbon price or regulatory requirements justify doing so.
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IGCC can help CCS to crawl, walk, run
COMBINED CYCLE POWER
PLANTAGRGASIFICATION
& SCRUBBING
ELECTRIC POWER
COAL
RAW
CLEAN SYNGAS
CO2-RICH FLASHED STREAM
SYNGAS SATURATION
WATER
LTGC
CO2 ENRICHMENT
EXHAUST
CAPTURED CO2 CO2
COMPRESSION 2200 PSIG
ASU
O2
AIR
CO2 RECYCLE COMPRESSOR
CO2-DEPLETED CLEAN SYNGAS
STREAM
Case 1bCapture (%) 5 - 17
Captured CO2 (ktons/yr) 225 – 725
Low cost large-scale CO2RAW SYNGAS
SULFUR RECOVERY
SULFUR
SLAG
TAIL GAS RECYCLE
2source for CCS demos and storage validation
Capture (%) 50 - 65
CAPACITY-ENHANCED
AGR
GASIFICATION & SCRUBBING
COAL
RAW SYNGAS
CO2-DEPLETED CLEAN SYNGAS
CO2-RICH FLASHED STREAM
SLAG
LTGC
CAPTURED CO2 CO2 COMPRESSION
2200 PSIG
ASU
O2
AIR
CO2 RECYCLE COMPRESSOR
TAIL GAS RECYCLE
COMBINED CYCLE POWER
PLANT
ELECTRIC POWER
ONE-STAGE SOUR SHIFT
EXHAUST
Case 2bCO2
ENRICHMENT
RECOVEREDCLEAN SYNGAS
SHIFTED RAW
SYNGAS SYNGAS SATURATION(REMOVED)
Captured CO2 (ktons/yr) 2,200 – 2,700
Retrofit to NGeq – meets CA reg or capture criteria
SULFUR RECOVERY
SULFUR
RECYCLE
CAPTURED CO2 CO2
COMPRESSION 2200 PSIG
Case 5
for Fed incentives
Capture (%) 85 - 90
Captured CO2 (ktons/yr) 3,750 – 4,000
AGR WITH INTEGRATED
CO2 ENRICHMENT
GASIFICATION & SCRUBBING
COAL
RAW SYNGAS
CO2-DEPLETED CLEAN SYNGAS
SULFUR RECOVERY
CO2-RICH FLASHED STREAM
SLAG
LTGC
ASU
O2
AIR
CO2 RECYCLE COMPRESSOR
TAIL GAS RECYCLE
COMBINED CYCLE POWER
PLANT
ELECTRIC POWER
DILUTION NITROGEN
TWO-STAGE SOUR SHIFT
EXHAUST
SHIFTED RAW
SYNGAS SYNGAS SATURATION(REMOVED)
p 2 ( y ) , ,
Appropriate for EOR or when warranted by market price of CO2
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SULFUR market price of CO2
What policies do we need to succeed?
ShapingCreating Setting Public
Government Policy Measures
Shaping Markets
• Taxes/User Fees• Property Rights • Standards • Legal Standing
Creating Markets
Setting Regulations
Public Participation
• Setting/removing price caps
• Tradable Permits
D ti d
• Bans/Caps
• Permits and
• Right to Organize
• Public Hearings• Subsidies (+, -)
• Controlling entry d it
• Domestic and International Offset Systems
Permits and Quotas
• Mandates
Public Hearings
• Information Disclosure Rules
and exit• Defined liability
Governments can shape markets multiple ways
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p p y
US climate change policy• Senate Climate Security Act
Boxer-Warner-Lieberman 2008– Cap and tradep– Decrease GHGs from 2005:
(-4%) by 2012;(-19%) by 2020; ( 71%) b 2050(-71%) by 2050
– Failed cloture – Issues to be resolved:
• Protection for consumersProtection for consumers • Limits on offsets• Need safety valve• More time & $ for technology
M th• Many others• Left to new administration
– Candidates favor cap and tradeLikely not top 2009 issue
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– Likely not top 2009 issue
Will we regulate CO2 under CAA?EPA’s prior position• CO2 is not an air pollutant• Not authorized to regulate
April 07 Supreme Court ruling overturned EPA’s objections• CO2 an air pollutant under CAA• EPA tasked to consider need and
approach for regulationJuly 2008 issuance of ANPR• CAA ill-suited for CO2 regulation• Purpose “to elicit information”
on how EPA might regulate d CAAunder CAA
• No legal effect• Gives views on how EPA may
l t CO if f d t d14
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regulate CO2 if forced to do so
EPA and CO2 injection • ANPR for new class VI well for GS• Authorized under SWDA• Requirements for
– Site characterization & modelingg– Area of Review– Overlying covers, under aquifers– Well construction and operation
Monitoring site care and closure– Monitoring, site care and closure• States may choose own stricter
standards
• But the ANPR doesn’t answer:– Levels of contaminants – Ambiguity of RCRA & CERCAg y– Limits of leakage– Ownership and long-term liability
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Current Federal funding
Emergency Economic
Stabilization Bill
– +$1.25B for advanced coal +$0.25B gasification for ITC– 30% ITC; minimum 65% capture– $20/tonne for sequestered CO2; $10 EOR (new)– Min 500k tonnes/yr; max 75MM tonnes totalS Min 500k tonnes/yr; max 75MM tonnes total
Federal Loan Guarantees
– $6B gasification, retrofit and new coal power– Goal: reduce GHG emissions by min 50%
$(3rd solicitation under Title VII EPACT 2005)
– $2B for advanced coal gasification– 100% of loan, max 80% of total project cost
CCPI III– $340MM - 50% cost share, no repay
300kt / CO2 CCS ( i l IGCC t i hift)CCPI III – 300ktons/yr CO2 CCS (= single IGCC train no shift)– 90% capture (CO2 in stream)
– $1.3B total: $216MM FY091 - rest as appropriatedI t l t f CCS ( ) 50% f CCS t fitFutureGen
(Restructured)
– Incremental cost of CCS (new) or 50% of CCS retrofit– Op cost share limited to additional fuel– 3-5 yrs CCS operation + 2 yrs MMV– Min 300MW IGCC gross; Min 81% capture
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1 With continuing resolution for FY09
States are defining coal policy
States with current and proposed benefits for cleaner coal1
1 Source: Coal Utilization Research Council, July 2007
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Sou ce Coa Ut at o esea c Cou c , Ju y 00
States leading in reducing uncertainty
Pending or adopted legislation on CCSState assumption of CO2 liability
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p yAdopted or pending storage permit standards.
Drivers for CCS with IGCC1. IGCC with carbon capture can be provided now
2. CCS uncertainty lies with storage – validation, t d bli tacceptance and public acceptance
3. IGCC flexibility supports a crawl-walk-run validation of CCS and with high quality CO2CCS and with high quality CO2
4. We need to learn-by-doing – at commercial scale
5 IGCC retrofittability to NGCC equivalence is a5. IGCC retrofittability to NGCC equivalence is a compelling solution for maintaining coal build
6. The surest and quickest route to reducing the cost of q gCCS is to build IGCC plants
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