pres_kenneth j_ fergusson.pdf

8/11/2019 Pres_Kenneth J_ Fergusson.pdf

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ACI GASIFICATION CONFERENCE LONDON, 6th/7thNOVEMBER, 2013

COMMERCIALISATION OF UCG ACTIVITIES

Kenneth J. Fergusson, C.Eng., FIMechE, FIMMM

UCG Association

Life Member, retired Trustee


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OUTLINE OF PRESENTATION:

What defines commercial?

Potential for UCG development

Projects around the world

Scope in UK and Europe


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WHEN CAN A PROCESS BE CALLED COMMERCIAL?

It yields a marketable product at a competitive price

It is environmentally permissible

It complies with legal and regulatory requirements

It is financeable


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Typical UCG Site Layout



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0.0

10.0

20.0

30.0

40.0

50.0

Australia China Russian Fed. India USA South Africa Europe (excl.

Russia)

VolofNaturalGasTCM

Potential gas reserves from UCG (as NG) TCM 2005 Reserve of Nat Gas TCM

Proven for

Mining

UCG additionCoal Balance

World Resource 5-8000BT

Proven Reserve (2005) 909BTEst. UCG addition 600BT

World Coal Resource for UCG



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REMOVAL OF CO2 FROM UCG GAS

CO2 can be scrubbed with physical solvent before combustion

Solvent regeneration uses much less energy than chemical solvents

Well-head gas is typically 2040% CO2; if only this CO2 is stripped,

residual gas CV is about half that of natural gas but carbon footprint is

comparable

If CO and CH4 are reformed to H2 + CO2 and that CO2 is also

stripped, the remaining gas, mainly H2, is essentially carbon-free

The cost of total CO2 removal is less than a fifth of post-combustion

flue gas scrubbing from a boiler

An alternative is to leave the CO2 in the gas, combust with O2 in aspecial turbine, and condense CO2 from the exhaust (oxyfuel)

The total cost of CO2 removal, transportation and underground

disposal is calculated to be less than $30/t carbon


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PROJECTS AROUND THE WORLD


Virtually every country with significant coal resources is

now aware of UCG

There is current active attention being given to UCG in

at least 33 countries

Active testing, or evaluation of previous testing, is being

conducted in at least 15 countries

Commercial projects are under development in at least

8 countries


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MAJUBA POWER STATION, SOUTH AFRICA


PROGRESSIVE ADOPTION OF UCG

The station was built as a conventional, pf coal-fired plant, to be

fed with locally-mined coal.

Geological problems prevented the design rate of mined coalbeing achieved; the shortfall was being transported a considerable

distance.

Trials of UCG on the unmineable coal were carried out for more

than 2 years, successfully co-firing the syngas to the pf boilers.

It has been announced that the UCG operation will be extended,to increase the rate of co-firing and broaden experience.

Ultimately, the objective is to build a CCGT fired with UCG gas.

THIS IS AN EXCELLENT EXAMPLE OF PROGRESSIVE

DEVELOPMENT AND ADOPTION OF UCG.


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SCOPE FOR UCG IN UK AND EUROPE


In common with many European countries, UK is facing a crisis of

shortage of generation capacity and increase in generation costs.

Coal has been the lowest-cost source of power, but coal

burning has been coming under increasing environmentalpressure.

Enormous resources of coal remain in Europe.

No other generation method can match the expected cost of

power generated from UCG gas.

Taking the example of UK, the remainder of thispresentation looks at the scope for UCG to make a major

contribution to clean, secure, power supplies.


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ACI GASIFICATION CONFERENCE LONDON, 6th/7thOCTOBER, 2013

BUT WE CANT DO IT AGAIN!


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21STCENTURY UK COAL OUTPUT

15Mt20Mt

35Mt

9Mt

11Mt

20Mt

7Mt10Mt

17Mt

6Mt10Mt

16Mt

4Mt?8Mt?

12Mt?

2000 2005 2010 2012/13 NOW

UNDERGROUND

OPENCAST

TOTAL

UK MINING MET LESS THAN ONE-THIRD OF DEMAND OF

LAST YEARS REMAINING COAL-FIRED POWER STATIONS



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2D Mapping of Coal

Firth of Forth

North East coast

East YorkshireDee/Mersey/N Wales

South Wales

Area of UK"Good" UCGResource M-

tonnes

PowerOutputover 40years

MW

UCGasNatGasBCM

Eastern/NE

England 6,824 11,900 681

Lancs/Dee 4,770 14,100 476

Wales 220 730 22

Scotland 171 17

TOTAL 16,784

26,730 1,676

Current Coal Power Capacity ~ 28,8550MW

UK Current Nat Gas Reserves 530BCM

BGS study of coal resources for UCG, supported by DTI

Areas of the UK Suitable for Commercial UCG

ACI GASIFICATION CONFERENCE LONDON,6th/7th NOVEMBER, 2013


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TYPICAL COASTAL SITES LICENSED FOR UCG

ENGLAND AND WALES

ACI GASIFICATION CONFERENCE LONDON,6th/7thNOVEMBER, 2013


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FORECAST GENERATING COSTS 2013

(including CCS)

OFFSHORE WIND 140170/MWh

ONSHORE WIND 80100/MWh

NEW NUCLEAR 93/MWh CLEAN COAL (combustion) 110/MWh

COAL GASIFICATION (IGCC) 110/MWH

EXISTING CCGT (no CCS) 80100/MWh

NEW CCGT + CCS 110/MWh



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CURRENT UK BULK POWER PRICES WERE 40/MWh,

THEN 50/MWh,

SOON 60/MWh?

BUT NONE OF THE PROJECTEDGENERATION COSTS COME CLOSE TOMAINTAINING THIS



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IN 2010, THE COST OF GENERATING POWER IN UK ON A CCGT FED WITH

UCG GAS, INCLUDING CCS, WAS CALCULATED AS 66/MWh.

TODAY, THAT FIGURE MAY HAVE INFLATED TO AROUND

70/MWh.

COMPARED WITH ALL OTHER AVAILABLE MEANS OF POWER GENERATION,

UCG OFFERS THE LIKELIHOOD OF BEING COMMERCIAL

AND SHOULD BE PURSUED ACCORDINGLY

HOW ABOUT UCG?


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www.ucgassociation.org

A global alliance of knowledge, expertise,training, networking & information for

Underground Coal Gasification

ACI GASIFICATION CONFERENCE LONDON,6th/7thNOVEMBER, 2013

pres_kenneth j_ fergusson.pdf

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