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Update on Clean Coal Technologies and CO 2 Capture & Storage For Oregon Public Utility Commission Salem ,OR - June 27, 2007 Neville Holt – EPRI Technical Fellow Advanced Coal Generation Technology

EPRI Presentation Template 2007 - Canadian Clean Power …€¦ · PPT file · Web view · 2010-03-24Edwardsport, IN 630 MW ... EPRI Total Capital Requirement ... Heat Recovery

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Update on Clean Coal Technologies and CO2 Capture & Storage For Oregon Public Utility Commission Salem ,OR - June 27, 2007Neville Holt – EPRI Technical Fellow Advanced Coal Generation Technology

2© 2007 Electric Power Research Institute, Inc. All rights reserved.

Clean Coal Technologies (CCT) and CO2 Capture and Storage (CCS) - Presentation Outline

• Overview – Options for Response to Global Climate concerns• Clean Coal Technology (CCT) Options• EPRI CoalFleet Program• PC Post Combustion Removal – Status, Chilled Ammonia • Oxyfuel – Status, SaskPower,• IGCC – Status, Capture Technology, • Economic Studies DOE, EPRI - New Plants with and without

Capture• IGCC/PC EPRI Study adding Capture to new plants designed

without Capture• Effect of Capital Cost increases and Carbon (CO2) cost on

COE and Strategic selection of power generation technologies• Summary

3© 2007 Electric Power Research Institute, Inc. All rights reserved.

Regulatory Uncertainty on CO2 Emissions

• Kyoto Signatory Countries post 2012. EU – ETS Phase 2. UK . • US proposed Federal legislation - McCain/Lieberman, Bingaman,

Sanders/Boxer, Feinstein/Carper, Kerry/Snowe• US Regional Initiatives

– Western Regional Climate Action (WA,OR,CA,AZ, and NM). Western Governors Association (WGA)

– RGGI – East Coast Regional GHG Initiative (10 NE States) – Powering the Plains (ND,SD,IA,MN,WI, Manitoba)

• California: Governor’s Executive Order GHG targets 2010 cut to 2000 (-11%), 2020 cut to 1990 (-30%), 2050 80% below 1990.– New long term base load power or renewal (>5years)

commitments shall have CO2 emissions no greater than NGCC (established as <1100 lbs/MWh).

– Oregon & Washington have enacted similar legislation• Liability of CO2 injection into geological formations ?

4© 2007 Electric Power Research Institute, Inc. All rights reserved.

Power Company Carbon Management Options

Energy Storage

IGCC

PHEV

5© 2007 Electric Power Research Institute, Inc. All rights reserved.

Options for CO2 Response(The Stabilization Wedge & Slices)

• Conservation (Yes - but Rest of the World?)• Renewables (Yes - but not enough)• Nuclear (Ultimately Yes – but implies wide Proliferation)• Adaptation (Probably Yes – we always do)• Switch from Coal to Natural Gas (Maybe but not enough NG)• CO2 Capture & Sequestration (CCS) (Maybe but site specific &

costly - Liability for the Sequestered CO2?)Notes : US Coal Power Plants emit > 2 billion metric tons of CO2/yr

(~36% of US and 8% of World CO2 emissions). 1 billion metric tons/yr = ~25 million bpd of supercritical CO2

Effort Required for CCS Slice- World-wide build or replace 8 GW of Coal Power plants with CCS every year and maintain them until 2054

6© 2007 Electric Power Research Institute, Inc. All rights reserved.

CO2 Capture in Coal Power Systems

7© 2007 Electric Power Research Institute, Inc. All rights reserved.

New Technology Deployment Curve for Coal

Not All Technologies at the Same Level of Maturity.

Research Development Demonstration Deployment Mature Technology

Time

Ant

icip

ated

Cos

t of F

ull-S

cale

App

licat

ion

Oxyfuel

CO2 Storage

CO2 Capture

IGCC Plants

USCPC Plants

SCPC Plants

1150°F+ 1100°F

<1100°F 1050°F

Advanced USCPC Plants1150°F+1400°F

8© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI Programs 2007ff

• P 66 CoalFleet for Tomorrow – Future Coal Options Focus on Deployment of New Plants, Designs for Capture Readiness and Capture- 66 A Economic and Technical Overview (IGCC,PC,CFBC)- 66 B Gasification - IGCC and Co-production (Hydrogen, SNG, F-T Diesel etc)- 66 C Combustion - USC PC, Advanced materials, CFBC, OxyFuel

• P 103 CO2 Capture & Storage Focus on Sequestration and Existing Plants- Participation in US Regional Partnerships, IEA GHG- Capture focus Existing Plants - Chilled Ammonia (ABS) 5 MW Pilot Plant

9© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI’s CoalFleet forTomorrow Program

• Build an industry-led program toaccelerate the deployment ofadvanced coal-based power plants;use “lessons learned” to minimize risk: address “Capture Readiness”

• Employ “learning by doing” approach; generalize actual deployment projects (50 & 60 Hz) to create design guides

• Augment ongoing RD&D to speed market introduction of improved designs and materials; lead industry collaborative projects

• Deliver benefits of standardization to IGCC (integration gasification combined cycle), USC PC (ultra-supercritical pulverized coal), and SC CFBC (supercritical circulating fluidized-bed combustion)– Lower costs, especially with CO2 capture– Higher reliability– Near-zero SOX, NOX, PM, and Hg emissions– Shorter project schedule

Further information availableat www.epri.com/coalfleet

10© 2007 Electric Power Research Institute, Inc. All rights reserved.

CoalFleet Participants Span 5 Continents >60% of U.S. Coal-Based Generation, Large European Generators,Major OEMs (50 & 60 Hz) and EPCs, U.S. DOE

Doosan Heavy Industries Duke Energy Corp Dynegy East Kentucky Power Coop EdF Edison International ENEL Entergy E.ON ESKOM Exelon Corp. FirstEnergy Service GE Energy Great River Energy

AES Alliant Alstom Power Ameren American Electric Power Arkansas Electric Coop Austin Energy Babcock & Wilcox Bechtel Corp. BP California Energy Commission CPS Energy ConocoPhillips Technology CSX Corporation Dairyland Power Coop

11© 2007 Electric Power Research Institute, Inc. All rights reserved.

CoalFleet Participants Span 5 Continents (cont’d)

Golden Valley Electrical Association Hitachi Hoosier Energy Jacksonville Electric Authority Kansas City Power & Light Lincoln Electric MHI Minnesota Power Nebraska Public Power District New York Power Authority PacifiCorp Portland General Electric Pratt Whitney Rocketdyne Progress Energy

Public Service Co.New Mexico

Richmond Power & Light Rio Tinto Salt River Project Shell Siemens Southern Company Stanwell Corporation Tri-State G&T TVA TXU U.S. DOE We Energies Wisconsin Public Service

12© 2007 Electric Power Research Institute, Inc. All rights reserved.

CoalFleet Continues to Expand Collaborative Relationship with International Organizations

• Coordination with VGB for Europe and European firm participation

• Growing Australian and Asian Involvement• Eskom adds African Involvement• Potential for Support from Asia-Pacific Partnership

13© 2007 Electric Power Research Institute, Inc. All rights reserved.

PC Plant Efficiency and CO2 Reduction

Subc

ritic

al P

lant

Ran

ge

Com

mer

cial

Su

perc

ritic

al

Plan

t Ran

ge

Adv

ance

d U

ltra-

Supe

rcrit

ical

Pl

ant R

ange

2 Percentage Point Efficiency Gain = 5% CO2 Reduction

14© 2007 Electric Power Research Institute, Inc. All rights reserved.

Pulverized Coal with CO2 Capture (Today)

• Amine commercially available (multiple suppliers)• 3 U.S. plants in operation:

– MEA, <15 MWe, >90% ΔCO2

• Key requirements:– ~5–6 acres for 600 MW plant– Near-zero SO2 and NO2

– Large reboiler steam (MEA>KS-1>Ammonia)• Many new process options being explored

Energy Penalty ~29%

Fresh Water

PCBoiler SCR

SteamTurbine

ESP FGDCO2

Removale.g., MEA

CO2 to Use or Sequestration

Flue Gasto Stack

Fly Ash Gypsum/Waste

CoalAir

CO2 to Cleanupand Compression

Cleaned Flue Gas to Atmosphere

Absorber Tower

CO2 Stripper Reboiler

Flue Gas from Plant

CO2 Stripper

Needs Space, Integration and Energy

15© 2007 Electric Power Research Institute, Inc. All rights reserved.

PC Operating Units w/ CO2 Capture (Today)

• Three U.S. small plants in operation today:– Monoethanolamine (MEA) based

• CO2 sold as a product or used:– Freezing chickens– Soda pop, baking soda– ~140 $/ton CO2 for food grade

• 300 metric tons recovered per day:– ~15 MWe power plant equivalent

• Many pilots planned and in development:– 5 MWth Chilled Ammonia Pilot– Many other processes under development

AES Cumberland ~ 10 MW

Assessment of Post-Combustion Carbon Capture Technology

EPRI

CO2

(Report 1012796)

Only Demonstrated on a Small Scale to Date

16© 2007 Electric Power Research Institute, Inc. All rights reserved.

CO2 Capture Retrofits Require a Lot of Space(and very clean flue gas)

CO2 capture plant for 500-MW unit occupies 6 acres, i.e. 510 ft x 510 ft

17© 2007 Electric Power Research Institute, Inc. All rights reserved.

Potential Improvements for Post Combustion CO2 Capture

• Alternative equipment arrangements and designs - membrane absorbers (Kvaerner, TNO), membrane regenerator (Kvaerner)

• Alternative solvents – Hindered Amine (MHI KS-1), Piperazine addition (promoter) to K2CO3, Other amines (PTRC at U. Regina)

• Ammonium Carbonate with CO2 and water forms Ammonium Bicarbonate (EPRI/Alstom). Can be regenerated at pressure. Potential energy savings in regeneration and compression

• Adsorption technologies – Amine enriched solids, K, Na and Ca carbonates, Lithium oxide

• Cryogenic cooling of flue gas

• Recycle flue gas to increase CO2 concentration (perhaps viable for NGCC – need to consider effect of lower oxygen)

18© 2007 Electric Power Research Institute, Inc. All rights reserved.

Chilled Ammonia Process Performance Prediction (Early Data Only)

Used Parsons Study for basis

Supercritical PC Without CO2

Removal

Supercritical PC With MEA CO2 Removal

Supercritical PC With NH3

CO2 Removal

LP Steam extraction, lb/hr

0 1,220,000 270,000

Power Loss, KWe 0 90,000 20,000 GROSS POWER, KWE 491,000 402,000 471,300 AUXILIARY LOAD, KWE Induced Draft Fan 5,000 19,900 10,000 Pumping CO2 system, 0 1,900 5,000 Chillers 0 0 8,900 CO2 compressor 0 30,000 9,500 NET POWER OUTPUT 462,000 330,000 415,000 % POWER REDUCTION 29 10 Source: Nexant

19© 2007 Electric Power Research Institute, Inc. All rights reserved.

5 MW Chilled Ammonia CO2 Capture Pilot

• Jointly Funded by Alstom and EPRI • Site- WE Energies Pleasant Prairie Power Plant• $11 million for construction, operation for one year, data collection and

evaluation– Alstom will design, construct and operate– EPRI will collect data and provide evaluation

• 24 firms have agreed to fund EPRI testing with more being added• Operations beginning in the 3rd Quarter of 2007• AEP plans 30 MWth at Mountaineer, WV site to be followed by further

scale-up at OK site ~2011.• Projects planned in Europe with EoN and Statoil capturing CO2 from

Natural gas combustion (NGCC, Reformers , boilers )

20© 2007 Electric Power Research Institute, Inc. All rights reserved.

5 MW Chilled Ammonia CO2 Pilot Capture Pilot

Scrubber Module

CO2 pilot location

Gas takeoff

21© 2007 Electric Power Research Institute, Inc. All rights reserved.

5 MW Chilled Ammonia CO2 Capture Pilot Participants

AEPAmerenCPS EnergyDairylandDTE Energy Dynegy E.ON U.S.ExelonFirst Energy

SRPSouthern CoTri-StateTXUTVAWe Energies

Great River EnergyHoosierKCPLMidAmericanNPPDOglethorpePacificorpPNMSierra Pacific

22© 2007 Electric Power Research Institute, Inc. All rights reserved.

CO2 Capture by O2/CO2 Combustion

O2/CO2 Combustion• Small test facilities at Canmet, B&W,

Alstom• Potential reuse of existing boiler

equipment» Pulverizers, air heaters, etc.» Potential “retrofit kit”

• CO2 recycled for temp. control• SO2 removed from purge stream

» If higher purity CO2 required• Requires large oxygen plant• Large auxiliary power requirement

» Large net output reduction» Make-up power source for Retrofit

of existing plant?

23© 2007 Electric Power Research Institute, Inc. All rights reserved.

Oxyfuel Combustion in a PC Boiler

Source: Vattenfall (GHGT7 2004)

Other potential CO2 recycle take-off points

24© 2007 Electric Power Research Institute, Inc. All rights reserved.

Current Oxyfuel Development Status

• Engineering design studies for commercial scale plants -(Air Products, Air Liquide, Jupiter Oxygen, Alstom, B&W, etc)

• Operation of several pilot scale boilers– CANMET (~ 1 MM/Btu/hr)– Babcock and Wilcox (~5 MMBtu/hr). Larger 30 MWth unit in construction– Alstom CFB (2.6-7.4 MMBtu/hr)

• A key issue is the removal of other gases (SO2, O2, NOx, HCl, Hg). Is FGD required, at least for high sulfur coals, on either recycle or CO2 product streams? To date there has been no testing of downstream non-condensable gas recovery system

• To date no boiler testing at supercritical steam conditions• Vattenfall 30 MWth Oxyfuel demo near Schwarze Pumpe, Germany• SaskPower FEED study for 300 MW net with B&W, Air Liquide• AEP planned study of PC Retrofit with B&W

25© 2007 Electric Power Research Institute, Inc. All rights reserved.

Comparison of Oxyfuel and Amine Scrubbing Preliminary Results for CCPC/DTI Project 366 (Canadian Dollars)

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

C1-R0 C1-A1 C1-B1 C2-R0 C2-A1 C2-B1 C3-R0 C3-A1 C3-B1

Cap

ital C

ost -

$/k

W n

et

$-

$20

$40

$60

$80

$100

$120

$140

CO

E - $

/MW

h

R0 is base case (no capture), A1 is oxyfuel, B1 is amine scrubbing. Triangles indicate COE if CO2 was sold for $42/tonne.

Subbituminous Bituminous Lignite

Oxyfuel is Competitive with Amine Scrubbing for PRB

26© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC with and without CO2 Removal

Air

Air

ASU

ASU

O2

O2

Gasifier

Gasifier

Coal

Coal

Slag

Slag

Gas Clean

Up

Gas Clean

Up

Shift

CC Power Block

CC Power Block

POWER

H2

Sulfur CO2

POWER

SulfurIGCC no CO2 capture

H2 & CO2

(e.g., FutureGen)

CO2 Capture = $, Space, Shift, H2 Firing, CO2 Removal, Energy

27© 2007 Electric Power Research Institute, Inc. All rights reserved.

Coal Based IGCC Plants in Operation

Project/ Location

Combustion Turbine

Gasification Technology

Net Output MW

Start-Up Date

Wabash River, IN

GE 7 FA E Gas (ConocoPhillips)

262 Oct 1995

Tampa Electric, FL

GE 7 FA Texaco (GE Energy)

250 Sept 1996

Nuon (Formerly Demkolec) Buggenum Netherlands

Siemens V 94.2

Shell (Offered jointly with Krupp- Uhde)

253 Jan 1994

ELCOGAS Puertollano Spain

Siemens V 94.3

Prenflo (Offered jointly with Shell)

300 Dec 1997

28© 2007 Electric Power Research Institute, Inc. All rights reserved.

Nuon- Buggenum, Netherlands 250 MW IGCC

29© 2007 Electric Power Research Institute, Inc. All rights reserved.

Wabash 260 MW IGCC Repowering

30© 2007 Electric Power Research Institute, Inc. All rights reserved.

Tampa Electric - Polk 250 MW IGCC

33© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC Environmental Control

• Sulfur is removed (99.5-99.99%) from syngas using commercial gas processing technology.

• NOx emissions are controlled by firing temperature modulation in the gas turbine. Possible addition of SCR if needed.

• Particulates are removed from the syngas by filters and water wash prior to combustion so emissions are negligible.

• Current IGCC designs available with SCR to achieve ~3ppmv each of SOx, NOx.

• Mercury >90% removed from the syngas by absorption on activated carbon bed.

• Water use is lower than conventional coal (70-80%).• Byproduct slag is vitreous and inert and often salable.• CO2 under pressure takes less energy to remove than from PC

flue gas at atmospheric pressure. (Gas volume is <1% of flue gas from same MW size PC).

34© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC Commercial Teams 2004-5

• GE Energy (Gasification and Power block) and Bechtel• ConocoPhillips (E-Gas Gasification) and Fluor• Shell (Gasification and Gas cleanup), Krupp-Uhde and Black &

Veatch

Additional Candidates:MHISiemensKBR-Southern Co

35© 2007 Electric Power Research Institute, Inc. All rights reserved.

Coal Gasification Plants w/CO2 Capture (Today)

• IGCC and CO2 removal offered commercially:– Have not operated in an integrated manner

• Three U.S. non-power facilities and many plants in China recover CO2

– Coffeyville– Eastman– Great Plains

• Great Plains recovered CO2 used for EOR:– 2.7 million tons CO2 per year– ~340 MWe if it were an IGCC

The Great Plains Synfuels Planthttp://www.dakotagas.com/Companyinfo/index.html

Weyburn Pipelinehttp://www.ptrc.ca/access/DesktopDefault.aspx

No Coal IGCC Currently Recovers CO2

36© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC with CO2 Removal

O2 N2

Air

BFW

BFWSteam

Steam Turbine

HRSG

CoalPrep

Gas CoolingGasificationC + H2O = CO + H2

AGRU-H2S & CO2

Air Separation

Unit

Gas Turbine

Air

H2?

CO2 to use or sequestrationSulfur

Sour ShiftCO+ H2O = CO2 + H2

HP Steam

IGCC with CO2 Capture(e.g., FutureGen, BP Carson)

Needs Space, Energy and Integration

37© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC Pre-Investment Options for later addition of CO2 Capture

• Standard Provisions – Space for additional equipment, BOP, and site access at later date – Net power capacity, efficiency and cost penalty upon conversion to

capture• Moderate Provisions

– Additional ASU, Gasification and gas clean-up is needed to fully load the GT’s when Shift is added.

– If this oversizing is included in the initial IGCC investment the capacity can be used in the pre-capture phase for supplemental firing or co-production.

– This version of “capture ready” would then permit full GT output with Hydrogen (at ISO) when capture is added. Mitigates the cost and efficiency penalty.

– However when shift is added considerable AGR modifications will be required

• Extensive Provisions – Design with conversion-shift reactors, oversized components, AGR

absorber sized for shifted syngas but no CO2 absorber and compressor– No need for major shutdown to complete the conversion to CO2 capture

38© 2007 Electric Power Research Institute, Inc. All rights reserved.

Water-Gas Shift: Typical Process Configuration

Source: Haldor Topsoe Shift Reactors

Pressure in bar

Temp in ºC

39© 2007 Electric Power Research Institute, Inc. All rights reserved.

Gas Compositions and Flows before and after Shift- Adding Shift increases Syngas flow to AGR (Mol % Clean Dry Basis – Typical Bituminous Coal)

Gasifier GE no Shift

GE with Shift

COP no Shift

COP with Shift

Shell no Shift

Shell with Shift

Pressure psig

500-1000

500-1000

600 600 600 600

H2 37 81 30 76 28 88

CO 47 3 49 3 64 4

CH4 <0.1 <0.1 6 6 <0.1 <0.1

CO 2 14 58 12 58 2 62

N2 + A 2 2 3 3 6 6

Total Flow Mols

100 144 100 146 100 160

40© 2007 Electric Power Research Institute, Inc. All rights reserved.

Solvent Absorption for IGCC Generic Process Flow Diagram with CO2 Capture Added

Clean H2-rich syngas

CO2

H2S Removal CO2 Removal

Have to add second absorber and stripper column to capture CO2

41© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC with CO2 Capture from Day 1

• RWE

• Stanwell ZeroGen Demo

• Centrica / Progressive Energy

• EoN UK

• Powerfuel Hatfield UK

• GreenGen Demo China

• BP/Rio Tinto Australia

• BP Carson

• Xcel

• Pacificorp Wyoming

• FutureGen Demo

• Hunton 10-15%

• Indiana Gasification

• TransCanada Polygen

• Wallula RR, Washington

15 Gasification Projects Aimed at C&S – Day 1

• Current EPRI IGCC Knowledge Base Gasification Projects– 66 North America Projects– 38 International Projects

42© 2007 Electric Power Research Institute, Inc. All rights reserved.

Summary - CO2 Capture Technology Status and Issues

• IGCC and CO2 removal are offered commercially but have not operated in a mature integrated manner– Big issues IGCC Cost (particularly with low rank coals),

Integration, and CO2 Storage• Advanced PC and CO2 post combustion are each offered

commercially but CO2 removal has only operated at small scale and not integrated– Big issues CO2 Capture Cost & Scale-up, Integration and

CO2 Storage• Oxy-Fuel technology is in the early stages of development has

only operated at small pilot plant facilities– Big issues Oxygen production cost and power

consumption, Integration, CO2 purification and StorageGasification and Combustion Needed With CO2 Options

43© 2007 Electric Power Research Institute, Inc. All rights reserved.

Plant Construction Costs Escalating

Construction Cost Indices(Source: Chemical Engineering Magazine, March 2007)

380

400

420

440

460

480

500

520

540

560

Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07

Che

mic

al E

ngin

eerin

g Pl

ant C

ost I

ndex

950

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

Mar

shal

l & S

wift

Equ

ipm

ent C

ost I

ndex Chemical Engineering Plant Cost Index

Marshall & Swift Equipment Cost Index

44© 2007 Electric Power Research Institute, Inc. All rights reserved.

Capital Cost Estimates in Press Announcements and Submissions to PUCs 2006-7 — All Costs Are Way Up!Owner Plant Name/

LocationNet MW Technology/

CoalReported Capital $ Million

Reported Capital $/kW

AEP SWEPCO

Hempstead, AR

600 USC PC/PRB 1680 2800

AEP PSO/OGE

Sooner, OK 950 USC PC/PRB 1800 1895

AEP Mountaineer, WV

629 GE RQ IGCC/ Bituminous

2230 3545

Duke Energy Edwardsport, IN

630 GE RQ IGCC/ Bituminous

1985 3150

Duke Energy Cliffside, NC 800 USC PC/Bit 2400 3000

NRG Huntley, NY

620 IGCC/Bit, Pet Coke, PRB

1466 2365

Otter Tail/GRE

Big Stone, SD 620 USC PC/PRB 1500 2414

Southern Co Kemper County, MS

600 KBR IGCC Lignite

1800 3000

45© 2007 Electric Power Research Institute, Inc. All rights reserved.

Recent Duke PUC Submissions April/May 2007

• Cliffside, NC 800 MW SCPC 1.8 B $ + 0.6B$ Financing. Or 2250$/kW + 750$/kW financing = Total 3000$/kW

Scaling to 630 MW the cost would be 2417$/kW. If labor/productivity in NC is 0.9 (with MidWest 1.0) this would become ~2520$/kW in the Mid West.

• Edwardsport, IN 630 MW IGCC (GE RQ) 1.985B$ including escalation at 4%/year through October 2011. Factor (1.04)4 = 1.17 . Total 3151 $/kW with escalation to 2011 or 2693 $/kW in 2007.

• Consistent with Duke’s statement in Edwardsport, IN filing that IGCC is ~10-15% more than SCPC.

• It is not completely clear what the costs represent (e.g. what is included or excluded). TPC? TPC + OC? However it is assumed that they are fairly consistent.

46© 2007 Electric Power Research Institute, Inc. All rights reserved.

Capital Cost Estimates

When comparing capital cost estimates, it is important to know what is included and, more importantly, what is not included!

• Unfortunately, we do not know what is included in each of the capital cost estimates submitted to the PUCs. However, we believe most are similar to the EPRI Total Capital Requirement (TCR).

• EPRI Total Capital Requirement is 16–19% higher than Total Plant Cost– Typical EPRI Owner’s Costs add about 5–7% to TPC– AFUDC adds another 11–12% to TPC

• The adder for “other” Owner’s Costs varies widely– Depends on owner and site-specific requirements– Can easily add another 10–15% to TPC

47© 2007 Electric Power Research Institute, Inc. All rights reserved.

DOE NETL Draft Report “Cost & Performance Comparison of Fossil Energy Power Plants”

• IGCC, PC and NGCC designs evaluated a) without capture and b) with Capture. Illinois#6 coal $1.34/MBtu NG 7.46$/MBtu HHV.

• GE Radiant Quench, COP E-Gas Full Slurry Quench, Shell Gas Recycle Quench . All based on 2 x GE 7 FB GTs. Designs with capture have additional coal gasification etc to fully load the GTs when firing Hydrogen. Lower net output with capture. NETL presented results for IGCC as an average of the three technologies

• PC sub critical (2400/1050/1050) and Supercritical (3500/1100/1100). Designs with post combustion amine scrubbing capture are much larger so that net output is same as designs without capture

• NGCC without capture and with post combustion amine scrubbing

48© 2007 Electric Power Research Institute, Inc. All rights reserved.

49© 2007 Electric Power Research Institute, Inc. All rights reserved.

But IGCC technologies were not all created equal !! - Particularly for CCS

• Moisture is needed in the syngas for shift – and the least expensive way of accomplishing this is direct water quench – not by use of expensive syngas coolers

• The DOE study used IGCC configurations with syngas coolers and the previous slide used an average of the three technologies.

• Higher pressure (e.g., 800–1000 psig) decreases the cost of CO2 removal and compression through use of a physical absorption system (e.g., Selexol)

• DOE ranking with CCS - GE , COP, Shell • GE offers a direct quench (not in DOE study)• Shell is rumored to offer water quench design soon• COP is likely to offer a modified operation for capture to inject more

water

50© 2007 Electric Power Research Institute, Inc. All rights reserved.

Syngas Composition Affects Shift Steam Requirements (Need >3:1 H2O/CO Ratio) and Overall Performance

Technology Pressure Psig

H2O/CO Molar Ratio

Relative HP Steam Flow to Shift

Steam Turbine MW Output

GE Radiant Quench

800 1.3 1.0 270

GE Total Quench

1000 >3.0 Zero 242

COP E-Gas Full Slurry Quench

600 0.4 2.0 216

Shell Gas Recycle Quench

600 0.1 2.8 202

51© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI CoalFleet Studies New Coal Plants 2006+

• Design Options in the face of Regulatory Uncertainty: – Design without CO2 Capture - Add Capture to Design without Capture - Design with Capture initially

• Illinois # 6, Wyoming Sub- bituminous coal (PRB)• Supercritical PC with Amine Scrubbing

(Fluor Econamine +). Steam temperatures 565 C (Ill#6) and 593 C (PRB). Single reheat.

• IGCC - GE Radiant Quench (RQ) and Total Quench (Q) (Ill#6) - Shell Gas Recycle Quench (Ill #6 & PRB) - ConocoPhillips (COP) E Gas (Ill #6 & PRB)

52© 2007 Electric Power Research Institute, Inc. All rights reserved.

Basis for EPRI CoalFleet Program 2006 PC & IGCC Estimates - Nth and FOAK (First of a Kind)

• Total Plant Costs (TPC) include total field costs, engineering, and contingency. Historically, usually estimated for Nth-of-a-kind plants.

• FOAK costs have not typically been included in previously reported estimates. However, in view of the current SOA and rapidly escalating costs, an additional 10% contingency has been added to the IGCC and CO2 capture designs.

• Uncertain what the estimates presented to PUCs represent. Total Capital Requirement (TCR), which includes Owners costs and AFUDC is also reported because it is believed to be closer to what is reported to PUCs in project submissions

• For PC plants, EPRI has used a TCR/TPC multiplier of 1.16, and estimates are shown as range -5% to +10%

• For IGCC plants, EPRI has used a TCR/TPC multiplier of 1.19, and estimates are shown as range -5% to +20%

• Most previous studies reported cost of capture at the battery limit. In this report, we have added $10/mt for transportation, monitoring, and storage. So reported costs include CCS.

• We recognize that the use of these additional contingencies, multipliers, and ranges for IGCC and CO2 capture is debatable. It is anticipated that they should be reduced as the technologies mature.

53© 2007 Electric Power Research Institute, Inc. All rights reserved.

Pulverized Coal with CO2 Capture “Today”

• Amine commercially available (multiple suppliers)• 3 U.S. plants in operation:

– MEA, <15 MWe, >90% ΔCO2

• Key requirements:– ~5–6 acres for 600 MW plant– Near-zero SO2 and NO2

– Large reboiler steam (MEA>KS-1>Ammonia)• Many new process options being explored

CO2 Capture = $, Space, Ultra-Low SO2, and Lots of Energy.

Energy Penalty ~29%

Fresh Water

PCBoiler SCR

SteamTurbine

ESP FGDCO2

Removale.g., MEA

CO2 to Use or Sequestration

Flue Gasto Stack

Fly Ash Gypsum/Waste

CoalAir

CO2 to Cleanupand Compression

Cleaned Flue Gas to Atmosphere

Absorber Tower

CO2 Stripper Reboiler

Flue Gas from Plant

CO2 Stripper

54© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI 2006 PC Estimates

• Adding Capture with Fluor Econamine to SCPC reduces net power from 600 to 425 MW net output (= ~650 MW Gross power)

• The SCPC retrofit for 90% CO2 recovery includes addition of Fluor’s Econamine FG Plus (EFG+) process (MEA based chemical solvent), wet FGD upgrades to reduce the flue gas SO2 to 7 ppm (to reduce formation of heat stable salts in the MEA solvent), addition of a new cooling tower and circulating water system for Econamine FG+ cooling and the addition of CO2 drying and compression to 2000 psig. Steam must be extracted from the IP/LP cross over for regeneration of the solvent and modifications made to the LP steam turbine to accommodate the markedly reduced steam flow.

• Designing a 650 MW gross power SCPC for Capture would be designed for LP extraction and LP turbine would be appropriately sized so net would be ~440 MW compared to 425 MW when retrofitted.

• The SCPC designed for Capture is a larger boiler (~800 MW gross = 750 MW net) to give 550 MW net with capture. (Size chosen to compare with IGCC cases)

55© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC with CO2 Removal via SOUR CO-Shift

O2 N2

Air

BFW

BFWSteam

Steam Turbine

HRSG

CoalPrep

Gas Cooling?GasificationC + H2O = CO + H2

AGRU-H2S & CO2

Air Separation

Unit

Gas Turbine

Air

H2?

CO2 to use or sequestrationSulfur

Sour ShiftCO+ H2O = CO2 + H2

HP Steam

56© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC Designs with Shift and CO2 Capture

• Water quench is the least cost way of adding moisture for the water-gas shift reaction

• Higher pressure (e.g., 800–1000 psig) decreases the cost of CO2 removal and compression through use of a physical absorption system (e.g., Selexol)

• GE can offer high pressure and either Quench (Q) or Radiant Quench (RQ) designs, which provide more moisture for the shift reaction

• COP E-Gas, Shell, Siemens, and KBR are lower pressure (<600 psig) and have lower moisture in the syngas

• The loss of net power output with capture is greater for Shell (120 MW) than E-Gas (97 MW) and is least for the GE cases (78 MW).

• When capture is added to an IGCC plant not designed initially for capture there is a further loss in net output (20-40 MW dependent on the technology) since the ASU and Gasification section are not sized to provide full fuel loading to the gas turbine.

57© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI PC and IGCC Net Power Output With and Without CO2 Capture (Illinois #6 Coal)EPRI PC and IGCC Net Power Output

With and Without CO2 Capture (Illinois #6 Coal)

0

100

200

300

400

500

600

700

800

SupercriticalPC

GE RadiantQuench

GE TotalQuench

Shell GasQuench

E-Gas FSQ

Net

Pow

er O

utpu

t, M

We

.

No CaptureRetrofit CaptureNew Capture

58© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI PC and IGCC Capital Cost EstimatesWith and Without CO2 Capture (Illinois #6 Coal)(All IGCC and CCS cases have +10% Contingency for FOAK)EPRI 600 MW (net) PC and IGCC Capital Cost Estimates

With and Without CO2 Capture (Illinois #6 Coal)

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

SupercriticalPC

GE RadiantQuench

GE TotalQuench

Shell GasQuench

E-Gas FSQ

Tota

l Cap

ital R

equi

rem

ent,

$/kW

(200

6$)

.

No CaptureRetrofit CaptureNew Capture

59© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI PC and IGCC Cost of ElectricityWith and Without CO2 Capture (Illinois #6 Coal)(All IGCC and CCS cases have +10% TPC Contingency for FOAK)EPRI 600 MW (net) PC and IGCC Cost of Electricity

With and Without CO2 Capture (Illinois #6 Coal)

40

50

60

70

80

90

100

110

120

130

SupercriticalPC

GE RadiantQuench

GE TotalQuench

Shell GasQuench

E-Gas FSQ

30-Y

r lev

eliz

ed C

OE,

$/M

Wh

(Con

stan

t 200

6$)

.

No CaptureRetrofit CaptureNew Capture

COE Includes $10/tonne for CO2 Transportation and Sequestration

60© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI PC and IGCC Net Power OutputWith and Without CO2 Capture (PRB Coal)EPRI PC and IGCC Net Power Output

With and Without CO2 Capture (PRB Coal)

0

100

200

300

400

500

600

700

800

Supercritical PC UltrasupercriticalPC

Shell GasQuench

E-Gas FSQ

Net

Pow

er O

utpu

t, M

We

.

No CaptureRetrofit CaptureNew Capture

61© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI PC and IGCC Capital Cost EstimatesWith and Without CO2 Capture (PRB Coal) (All IGCC and CCS cases have + 10% Contingency for FOAK)EPRI 600 MW (net) PC and IGCC Capital Cost Estimates

With and Without CO2 Capture (PRB Coal)

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

Supercritical PC UltrasupercriticalPC

Shell GasQuench

E-Gas FSQ

Tota

l Cap

ital R

equi

rem

ent,

$/kW

(200

6$)

.

No CaptureRetrofit CaptureNew Capture

62© 2007 Electric Power Research Institute, Inc. All rights reserved.

EPRI PC and IGCC Cost of ElectricityWith and Without CO2 Capture (PRB Coal) (All IGCC and CCS cases have + 10% Contingency for FOAK)EPRI 600 MW (net) PC and IGCC Cost of Electricity

With and Without CO2 Capture (PRB Coal)

40

50

60

70

80

90

100

110

120

130

Supercritical PC UltrasupercriticalPC

Shell GasQuench

E-Gas FSQ

30-Y

r lev

eliz

ed C

OE,

$/M

Wh

(Con

stan

t 200

6$)

.

No CaptureRetrofit CaptureNew Capture

COE Includes $10/tonne for CO2 Transportation and Sequestration

63© 2007 Electric Power Research Institute, Inc. All rights reserved.

Cost & Performance Penalties for CO2 Capture(based on retrofit of existing PC or IGCC plant)

PC-Bit

PC-Subbit

IGCC E-Gas-Bit

IGCC E-Gas-Subbit

IGCC GE RQ-Bit

IGCC GE Q-Bit

IGCC Shell-Bit

IGCC Shell-Subbit

14%

16%

18%

20%

22%

24%

26%

28%

30%

30% 40% 50% 60% 70% 80% 90%Increase in Capital Cost ($/kW)

Red

uctio

n in

Net

Pow

er O

utpu

t

64© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC/Gasification Improvements Needed for More Cost-Effective CO2 Capture

• Need gas turbines that enable air extraction across the ambient temperature range and with hydrogen firing

• GE: Larger HP Quench; new feed/design for low-rank coals• COP: HP tall Cylinder; higher throughput for low-rank coals• Shell: Larger Quench (with water) design; CO2 transport of feed

for capture and synthesis; lower cost drying or new feeder for low-rank coals

• Siemens: Larger gasifier• Need larger (50 Hz & New GTs), higher pressure, lower cost

quench gasifiers for CO2 capture; otherwise IGCC may lose its perceived advantage over PC for CCS

65© 2007 Electric Power Research Institute, Inc. All rights reserved.

Coal Characteristics Drive Technology Selection

IGCC w/ CCS PC w/ CCS

Bituminous Coal Usually Favored

Sub-Bituminous Coal

Water use limitsLower elevationLower moisture

Lower ash

Higher elevationHigher moisture

Higher ashHigher ambient temp.

Lignite CoalUsually Favored

Nth Plant Economics

66© 2007 Electric Power Research Institute, Inc. All rights reserved.

Economic Evaluations of SOA Coal Technologies with CO2 Capture and Sequestration (CCS)- Current Summary

At the current State-of-the Art (SOA) there is no “Single Bullet” technology for CCS. Technology selection depends on the location, coal and application

• IGCC/Shift least cost for bituminous coals• IGCC/Shift and PC plants with Amine scrubbing similar COE for

high moisture Sub-bituminous Coals • PC with Amine scrubbing least cost for Lignites• Although there is considerable added capital for Capture the

major increase in COE is due to the high energy (power) losses and consequent reduction in net power for both PC and IGCC

• Other notes :- CFBC can handle high ash coals and other low value fuels- Oxyfuel (O2/CO2 Combustion), Chemical Looping are technologies at an earlier developmental stage

67© 2007 Electric Power Research Institute, Inc. All rights reserved.

Basis used for LCOE with Retrofit

• In the COE calculations for capture retrofit the entire TPC covering both the base plant and the retrofit cost is treated as though the 30 years applied to all the capital. This ignores any effect of Carbon Taxes and cost escalation over time.

• Another approach would be to treat the base plant and its operation for some initial years with the capture retrofitted after the initial period. Appropriate timing for retrofit will depend on Carbon taxes , their $, timing and trajectories.

• This latter approach is similar to that be used for the EPRI CoalFleet “Value of a Retrofit Capture Option” study

• The longer the initial plant can run without capture the lower will become the 30 year LCOE.

68© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC CO2 Capture Design Options

• For slurry fed gasifiers the CO2 in the syngas can represent 20-25% of the coal’s carbon that could be removed without using the Shift reaction. This relatively small amount of capture is unlikely to generate much support from Federal or State Authorities.

• For all gasification technologies can use sour High Temperature Shift followed by two column AGR. Maybe still use standard syngas GT combustors ? This could result in 60 -80 % CO2 capture which would satisfy California’s criteria that the CO2/MWH be no more than from NGCC. Lower COE than maximum capture option.

• If > 90% removal is required then both high and low temperature shift beds can be used. Needs Hydrogen combustors for GT. Higher COE.

69© 2007 Electric Power Research Institute, Inc. All rights reserved.

Effect of Capital Cost Increases on:

• COE• CO2 Cost• Continued Operation of Existing PC plants• Strategic Selection of Future Generation• Conclusions

70© 2007 Electric Power Research Institute, Inc. All rights reserved.

Effect of Carbon Tax on Cost of Electricity for Various Technologies – Bituminous Coal(All evaluated at 80% CF, EPRI Estimates 2006 )

0102030405060708090

100110120

0 50 100 150 200 250

Carbon Tax $/Metric Ton

$/M

Wh

Existing Nuclear

Existing PC with Venting

Existing PC Add FGD/SCR withVentingUSC with venting

NGCC with 8$/Mbtu NG and venting

Av IGCC with Capture

USC PC with Capture

71© 2007 Electric Power Research Institute, Inc. All rights reserved.

Effect of Increased Capital costs on Technology and Fuel Selection with Carbon Taxes

• Issue with the existing power plants. U.S. 320 GW of coal, ~100 GW FGD but + 50 GW planned. China soon 300 GW.

• The paid off capital on most US coal plants is a great economic advantage. The large increase in capital costs over the last year means that IGCC or PC with capture would need a carbon tax >250$/mt C (or ~62$/st CO2) for their COE to be competitive with existing coal plants (with FGD + SCR + Hg removal) with venting CO2 and just paying the tax.

• Up to 180$/mt C tax USC with venting is lower COE than IGCC with CCS

• With NG @ 8$/MBtu new NGCC (at 80% CF) with CO2 venting has COE similar to IGCC with CCS when the C tax is ~250 $/mt.

• However with NG @ 8$/MBtu and new NGCC at 40% CF venting is lower COE than new IGCC with capture until C tax is >50$/mt.

72© 2007 Electric Power Research Institute, Inc. All rights reserved.

Future Coal Generation and CCS – Issues and Observations

• Does CO2 Sequestration work? Where ? For how long? Multiple Integrated Demos urgently needed ASAP.

• Demand for New Coal Generation. However CCS costs add~40-50% to COE for IGCC and ~70-90% for PC with bituminous coals. Is this going to be acceptable? Can it be significantly reduced?

• The paid off capital on most US coal plants is a great economic advantage. Even with adding FGD, SCR and Hg removal and a large C tax their COE would be much less than new coal. They will probably be kept going as long as possible (AEO 2006) Question/Issue - How can CO2 emissions be reduced from existing power plants?

• Significant (>50%) CO2 reductions at new and existing coal plants can only be achieved with CCS. Question/Issue - Could Carbon tax proceeds be used to support the costs of CCS?

73© 2007 Electric Power Research Institute, Inc. All rights reserved.

DOE CO2 Capture Market analysis(Source J. Figueroa DOE NETL presentation to APPA June 28, 2006)

• US 2005 CO2 emissions 6 Billion stpy, 39% from Electricity, 36% from coal (323 GW installed capacity)

• AEO 2006 BAU forecast for 2030 - today’s existing coal plants will be 66% of US Power CO2 emissions and 75% of all US coal CO2 emissions

• Which of today’s units are most likely to adopt CO2 capture under a regulatory environment?

• Existing boilers > 300 MW and > 35 years old represent 184 GW. If 90% CO2 capture was applied to these units this would provide a 50% reduction in coal power CO2 emissions

• Q. What is the cost of adding capture to these existing plants and the cost and source of replacement power?

74© 2007 Electric Power Research Institute, Inc. All rights reserved.

U.S. CO2 Retrofit Capture Cost—An Order-of-Magnitude Estimate

• EPRI estimate = $343M TCR for MEA retrofit to 600 MW PC. Use retrofit factor = 1.35. Assume 2011 ISD (5 yrs @ 5%) = 1.276.

• 184 GW; assume all 600 MW units = 307 units• Retrofit Cost = 307 x 343 x 106 x 1.35 x 1.276 = $181 billion• Power reduction from 600 MW unit = 175 MW• Replacement power needed 175 x 306 units = 53.7 GW• EPRI estimate for new SCPC with capture TCR = $1.9 billion

for 550 MW net or $3,455/kW• Cost of replacement power (Assume 2011 ISD) = 53.7 x

3455 x 106 x 1.276 = $237 billion• Need to add Costs for CO2 Transportation and Storage

75© 2007 Electric Power Research Institute, Inc. All rights reserved.

Summary

• All generation options (Coal, Natural Gas, Nuclear, Renewables) will probably still be needed in a Carbon Constrained World

• Emissions for all new coal plants are down approaching “near zero” without CO2 capture

• Costs for new coal plants have increased markedly• CO2 Capture is costly for both IGCC and PC plants and

probably feasible – integrated CCS costs uncertain• EPRI believes PC and IGCC will compete in the future

even with capture for some coals and conditions• Multiple Storage (preferably Integrated CCS)

demonstrations needed ASAP at large scale. Liability for the CO2 needs resolution.

76© 2007 Electric Power Research Institute, Inc. All rights reserved.

Questions?

IGCC

USC PC

SC CFBC

IGCC PSDF

Post Combustion

CO2 Capture

77© 2007 Electric Power Research Institute, Inc. All rights reserved.

Appendices

• Adding Capture to IGCC not designed for Capture• Preliminary Study on Partial Capture from GE Quench

IGCC• Caution on Reported CO2 “Avoided” Capture costs• COE for NGCC plants at 40% CF and at 6 & 8 $/MBtu

with and without capture. Including effect of Carbon tax on decision to either a) Vent and pay tax or b) add capture.

78© 2007 Electric Power Research Institute, Inc. All rights reserved.

IGCC Design Issues for adding Capture to a Plant designed without Capture

• Addition of Sour Shift increases gas flow to the AGR particularly for the dry coal fed gasifiers with high CO content (next slide). Unlikely that the AGR would be able to take the extra flow unless there was pre-investment oversizing. May need to add a parallel absorber or replace the entire AGR plant (with a new two column absorption system) if capture is to be added to an existing IGCC designed without capture.

• Alternatively the original AGR (focused on H2S Removal) could be retained and a Sweet shift added after the AGR with a simpler bulk CO2 removal AGR (ADIP, MDEA, Selexol) added after shift. This would minimize intrusion into existing plant. This trade off of Sour versus Sweet Shift needs to be examined and may differ among the Gasification Technologies. Sweet Shift may incur additional efficiency and output penalties. Quench gasifiers would probably favor Sour Shift.

79© 2007 Electric Power Research Institute, Inc. All rights reserved.

2006 IGCC Estimates Adding Capture to IGCC not designed for Capture

• The IGCC designs are without spare gasifiers and are based on 2 x GE 7 FB GTs. For the designs without capture ~30-40% of the air supply for the ASU is extracted from the gas turbine compressor. Since GE has stated that no air can be extracted when firing Hydrogen another air compressor needs to be added to fully supply the ASU when capture is added.

• IGCC retrofit for 90% CO2 recovery includes replacement of COS/HCN hydrolysis reactor with 2 stages of sour shift reaction, additions to syngas cooling train for the shift reactors, additions to or replacements of the AGR to recover CO2 as a separate by-product, upgrade of the demineralizer water treatment and storage system, IP steam for water-gas shift reaction (in some cases), HRSG LP superheater modifications and addition of CO2 drying and compression to 2000 psig (138 barg).

• Since no extra ASU or gasification capacity was included in the original designs there is a lower net power output with capture because some chemical energy is lost in the shift reaction so that the gas turbine cannot be fully loaded when the capture capability is added.

80© 2007 Electric Power Research Institute, Inc. All rights reserved.

2006 Adding Capture to IGCC not designed for Capture – Effect on AGR Section

• The GE Radiant Quench IGCC without capture can use either MDEA (no SCR) or Selexol (if SCR is needed). When adding capture to a plant designed originally with MDEA the MDEA must be replaced with a new 2 absorber Selexol for separate H2S and CO2 removal.

• If the original design used Selexol for H2S removal then either a new parallel absorber column will need to be added to accommodate the additional flow of syngas from the shift reactors or a completely new absorber designed for the full flow must be added. In all cases a new Selexol CO2 absorber/stripper system must be added.

• COP case without capture has MDEA so the MDEA must be replaced with a new 2 section Selexol for separate H2S and CO2 removal.

• The Shell case without capture used the Sulfinol process so the Sulfinol must be replaced with a new 2 section Selexol for separate H2S and CO2 removal.

81© 2007 Electric Power Research Institute, Inc. All rights reserved.

Interim Conclusions on IGCC with Provisions for later Addition of CCS

• IGCC with Standard Provisions of Space not very CCS ready

• IGCC with some Moderate Provisions are much more CCS ready – Incremental Capital may be justified

• AGRU/SRU for CCS – Selexol more ready than MDEA- particularly with Moderate Provisions

• Sour Shift more CCS ready than Sweet• Quench with Sour shift is CCS ready. SGC designs with

either Sour or Sweet Shift less ready for CCS• Major Issues – H2S content of CO2

- Thermodynamic penalty for Syngas reheat and HP steam injection (with Sweet CO shift and non Quench gasifiers)

82© 2007 Electric Power Research Institute, Inc. All rights reserved.

Preliminary Study of Impact of CO2 Capture on IGCC COE & CO2 Avoided Cost (without Transportation & Storage) (GE Quench, June 2006 $ Basis, Bituminous coal)

83© 2007 Electric Power Research Institute, Inc. All rights reserved.

CO2 Capture Costs- Cautions

• The basic assumptions for calculation of COE vary between studies.

• Assumptions that lead to lower COE and particularly a lower capital cost component of the COE lead to lower avoided costs for CO2 Capture (See next Slide)- a lower capital charge rate (e.g. US DOE/EPRI 15% Europe 11-12%) - a higher assumed Capacity Factor (e.g. DOE/EPRI 80% IEA 85-90%)- a larger capacity plant with economies of scale (e.g. IEA 800 MW versus DOE/EPRI 500 MW)- a lower cost of fuel (e.g. IEA Natural gas at 2$/GJ)

84© 2007 Electric Power Research Institute, Inc. All rights reserved.

Avoided or Mitigation Cost of CO2 Capture & Storage (CCS) – Is this the best Metric?

Avoided cost or Mitigation Cost is defined as = (COE with CCS – COE Reference) divided by

(mt CO2/MWhReference – mt CO2/MWh with CCS)

What is the Reference case? Conventionally the same technology without CCS has been used as the reference. Is this the most relevant?

Should the reference case should be the technology that would have been used if no CCS was required?

Perhaps the more appropriate measure is COE. After all it is on this basis that technology selection is really made (while conforming to all applicable regulations)

85© 2007 Electric Power Research Institute, Inc. All rights reserved.

Natural Gas Combined Cycle With and Without CO2 Capture at 40% Capacity Factor

50

60

70

80

90

100

110

120

130

140

0 10 20 30 40 50 60 70 80 90 100

CO2 Adder, $/ST

30-Y

r Lev

eliz

ed C

OE,

$/M

Wh

(Con

stan

t 200

6$)

.

Gas @ $8/MMBtu w/CCSGas @ $8/MMBtu w/CO2 ventGas @ $6/MMBtu w/CCSGas @ $6/MMBtu w/CO2 vent