27th June, 2017

Toshihiro BannaiDirector General Environment Department

New Energy Development and Industry Development Organization

JAPAN CCS Forum 2017 Keynote 3rd

1

2

– NEDO, an independent administrative agency under METI, promotes R&D as well as the dissemination of industrial, energy and environmental technologies.

Japanese Government, Ministry of Economy, Trade and Industry

(METI)

IndustryAcademiaPublic research

laboratories

Coordination withpolicymaking authorities

Budget

Funding

<Mission>

• Solving global energy and environmental problems

NEDO Budget: Approx. 1.2 billion US$（FY2016)

Number of personnel: Approx. 900

About NEDO

47% 37%

Reference: World Energy Outlook 2002, 2004, 2007–2012, 2014

World primary energy demand by source World power generation by source

Mto

e

Mto

eＩｎｔｒｏｄｕｃｔｉｏｎ

Coal is known as very important energy resource that has the characteristics distributed over a wide

area and stable low price relatively, compared with others energy resources.

Coal shares will be about 25% in Global Primary energy demand and about 40% in Global power

generation in 2035.

29%24%

3

4

0

200

400

600

800

1000

1200

Oil (Japan) LNG(Steam)

LNG (GT) World Ave Coal Fired(Japan)

USC IGCC

Even most efficient coal fired thermal power generation discharge about 2 times

CO2 compared to LNG-Fired.

Coal fired thermal power generation needs Improvement of the efficiency.

Coal Fired thermal power in Japan

958864

806695

476

Reference ：Central Research Institute of Electric Power Industry（2009）、CO2 Emissions Fuel Combustion (2012)

375

(coal)

660(target)

[g-C

O2/k

Wh]

----Comparison of CO2 emission from power generation----

Ｉｎｔｒｏｄｕｃｔｉｏｎ

●Puertollano（Spain,318MW,1997）

×Buggenum（Netherland,284MW,1994）

●Polk Power（US,315MW,1996）

●Wabash River（US,296MW,1995）

2005 20201995 2000 201520101990

Edwardsport ●(US,618MW,2013～）

Taean ○(Korea,400MW,2015）

Teeside △（GB,2018, 850MW, 4.2Mtpa）

Don Valley Hatfield △（GB,2018, 650MW, 4.75Mtpa）

Green Gen●(China,2013, 250−400MW, 2Mtpa）IGCC

IGCC

IGCC＋CCS

HECA △(US,2018, 400MW, 3Mtpa）

Kemper ○（US,2015, 582MW, 3.5Mtpa）

Cash Creek New Gas △(US,2018, 770MW, 5Mtpa）

Osaki CG ○（Japan,2021〜, 166MW, 0.3Mtpa）※IGCC:2017〜 IGCC+CCS:2019〜

Nakoso ●(Japan,250MW,2007～）

Summit △（US,2018, 400MW, 2Mtpa）

７00m

1500m

Hirono、Nakoso △

(Japan,each 540MW,2020～）

IGFC

Nov. 2012 Tianjin IGCC Put into Operation

• First 250MW IGCC in China

• First 2000t/d Dry Coal Powder

Gasifier in China

•Design, Construction, Commission

and Operation by CHNG

ＩｎｔｒｏｄｕｃｔｉｏｎWorld present development of IGCC-CCS

●Improvement of gasification technology

●Higher efficiency, realization of CCS and

lower cost

Many demonstration plants are planned in

the world

【Example of Project】Kemper

・US Southern Company

・Power output 582MW

・Operation start 2016

・Capture capacity3.0Mtpa

Green Gen

・China GreenGen

・Power output 250～400MW

・Operation start 2013

●:Operating

○:Constructing

△:Planning× :Finished

:Japanese Pj.

5

New Energy and Industrial Technology Development Organization

ＩｎｔｒｏｄｕｃｔｉｏｎCost of electricity with CCS in the present conditions

(1)(2)

(3)

(4)

6,187

9,892

10,97311,343

8,246

10,831

0

2,000

4,000

6,000

8,000

10,000

12,000

ケース① ケース② ケース③ ケース④ ケース⑤ ケース⑥

CO

2の費

用（円

／ト

ンC

O2）

分離・回収 エネルギーペナルティ 液化・昇圧 輸送 貯留

（1259km） （1074km） （704km） （120km） （120km）（輸送無 0km）

6,187

9,892

10,97311,343

8,246

10,831

0

2,000

4,000

6,000

8,000

10,000

12,000

ケース① ケース② ケース③ ケース④ ケース⑤ ケース⑥

CO

2の費

用（円

／ト

ンC

O2）

分離・回収 エネルギーペナルティ 液化・昇圧 輸送 貯留

（1259km） （1074km） （704km） （120km） （120km）（輸送無 0km）

Storage from

onshore base

Capture

Energy penalty

（Cost increase by

lowering of efficiency）

Liquefier

and

Pressurize

Transportation

Storage

CO

2 C

os

t（ye

n／

t-C

O2）

CAPEX of

Power

Generation

O&M of

Power

Generation

Fuel

CAPEX of

Transportation

O＆M of

Transportation

O＆M of Storage

CAPEX of Storage

Increase 3yen/kWh by Carbon capture

Cost of electricity of IGCC with CCS

Carbon capture cost is 3,500yen/t-CO2

Cost of CO2

Storage from onshore base Storage from offshore base

Offshore Base

洋上基地

Aquifer CO2

Storage area Aquifer CO2

Storage area

Storage from

offshore base

Co

st

of

Ele

ctr

icit

y （

ye

n/k

Wh

）

Storage from

onshore base

Storage from

offshore baseWithout CCS

3yen/kWh

3,500yen

/tonCO2

6

High Efficiency

65％

60％

55％

50％

45％

40％

Photos by Mitsubishi Heavy Industries, Ltd., Joban Joint Power Co., Ltd., Mitsubishi Hitachi Power Systems, Ltd., and Osaki CoolGen

Corporation

Gas Turbine Combined Cycle

(GTCC)Efficiency: 52%

CO2 emissions: 340 g/kWh

Power generation efficiency

GTFC

IGCC

（Verification by blowing air)

A-USC

Ultra Super Critical

(USC)Efficiency: 40%

CO2 emissions: 820 g/kWh

1700 deg. C-class

IGCC

1700 deg. C-class

GTCC

IGFC

LNG thermal power

Coal-fired thermal

power

2030Present

Integrated coal Gasification Combined

Cycle (IGCC)Efficiency: 46 to 50%

CO2 emissions: 650 g/kWh (1700 deg. C class)

Target: Around 2020

Efficiency: 46%

CO2 emissions: 710 g/kWh

Target: Around 2016

Advanced Ultra Super

Critical (A-USC)

Integrated Coal Gasification Fuel

Cell Combined Cycle (IGFC)

Efficiency55%

CO2 emissions: 590 g/kWh

Target: Around 2025

Gas Turbine Fuel Cell Combined

Cycle (GTFC)Efficiency: 63%

CO2 emissions: 280 g/kW

Technological establishment: 2025

Efficiency : 57%

CO2 emissions: 310 g/kWh

Technological establishment: Around 2020

Ultrahigh Temperature Gas

Turbine Combined Cycle

Efficiency: 51%

CO2 emissions: 350 g/kWh

Target: Around 2017

Advanced Humid Air Gas (AHAT)

Around 2020

Reduction of CO2 by 20%

Reduction of CO2 by 30%

Reduction of CO2 by

10%

* The prospect of power generation efficiencies and discharge rates in the above Figure were estimated based on various assumptions at this

moment.

Reduction of CO2 by

20%

7

Power-generating

technology Outline and characteristics of technologyTechnological

establishment

(Year)

Transmissio

n end

efficiency

(％ HHV)

CO2 discharge

rate(G-CO2/kWh)

① USC - high temperature and pressure steam generated by a boiler.

- Long experience & reliability 1995 - 40 820

② A-USC - higher temperature and pressure steam turbine than USC.

- Advanced type of USC with heat resistant materials. 2016 46 710

③ AHAT - A single gas turbine power generation using humid air.

- suitable for medium and small turbines 2017 51 350

④ GTCC(1700 dig. C class)

- combined cycle power generation technology using a gas turbine

and a steam turbine. 2020 57 310

⑤ IGCC(1700 deg. C class)

- A combined cycle power generation technology through coal

gasification and combination of a gas turbine with a steam turbine. 2020 46 - 50 650

⑥ GTFC - A triple combined power generation technology combining GTCC

with fuel cells. 2025 63 280

⑦ IGFC - This is a triple combined power generation technology combining

IGCC with fuel cells. 2025 55 590

⑧ Innovative IGCC（Steam entrained bed

gasification)

- adds steam to gasification furnace on the IGCC system.

- reduces oxygen ratio and increases cold gas efficiency.

Steam gasification + dry

refinement

2030

Highly-efficient oxygen

separation

2030～

57 570

⑨ Closed IGCC (CO2-capturing next-generation

IGCC)

- circulates CO2 contained in exhaust gas as an oxidant

throughout a gasification furnace or gas turbine. 2030 or later42

After CO2

capture

－

8

A list of power generating technologies

Low emission

Around 2030Present Around 2020

CO2 separation and capture cost

Membrane separation

methodseparates by

using a membrane

which penetrates

CO2 selectively.

Low

High

use a solvent, such as amine.

Separation and capture cost: 4200

yen/t-CO2

Chemical absorption method

Physical absorption

methodCO2 absorbed into a physical

absorption solution under high pressure.

Separation and capture cost:

Approximately 2000 yen level/t-CO2

Around 2020

Oxygen combustion

methodrecirculates highly concentrated

oxygen in exhaust gas.

Separation and capture cost:

3000 yen level/t-CO2

Storage of CO2

To store separated and captured CO2 in the ground.

practical realization of CCS technology by around

2020.

The plant for this business is under construction,

and the storage will be initiated in 2016.

Utilization of CO2

This technology utilizes captured CO2 to produce

valuables such as alternatives to oil and chemical

raw material

Solid absorbent method

reduces energy requirement and

separate CO2 by combining

amine, etc.

* The cost prospect in the Figure was estimated based on various assumptions at present.

Closed IGCC

the oxygen fuel technology to the

IGCC technology.

For pulverized coal thermal power

For IGCC

9

10

CO2 Separation

and capture

technologies

Outline of technology Cost(Yen/t-CO2)

Technical

establishment (Year)

① Chemical

absorption method

- utilization of chemical reaction between CO2 and liquid.

4,200 yen* In the case of post combustion

Already

established

② Physical

absorption method

- dissolved into a liquid for separation and capture.

- The absorption capacity depends on the solubility of CO2 into

a liquid.

2,000 yen

level2020

③ Solid absorbent

method

- solid absorbent and absorption materials. (Solid solvent

method) 2,000 yen

level* Preliminarily-calculated

2020

④ Membrane

separation method

- separates a CO2 from a mixed gas by utilizing the

permeation selectivity of the thin membrane of a solid

material with separation capacity.

- Problem: scale up

1,000 yen

level* Preliminarily-calculated

2030

⑤ Oxyfuel

combustion

method

- separates oxygen from combustion air and burns fuel using

this oxygen. 3,000 yen

level2015

⑥ Closed IGCC

(CO2 capture next-

generation IGCC)

- applied technology based on IGCC system.

- circulates CO2 in exhaust gas as an oxidizing agent

throughout a gasification furnace and gas turbine.

－

Later than

2030

*1）The method for capturing CO2 from the exhaust gas after combustion.

*2）The method for capturing CO2 from the fuel before combustion

* The preliminary calculation of the costs in the above table is based on various assumptions and does not determine future separation and capture costs.

A list of CO2 separation and capture technologies

New Energy and Industrial Technology Development Organization

Development supported by METI

Private Company development

supported by METI

NEDO Development

11

CO2 Capture Technologies

Post Combustion

CO2Capture

Pre Combustion

CO2Capture

（Chemical or Physical）

Oxy-fuel

CO2Capture

Oxy-IGCC

Coal F

irin

g B

oile

rIG

CC

Developed by Private Companies

Chemical Looping

CO2 Membrane

Separation

With Capture Unit Without Capture Unit

12

Lab. HYCOL EAGLE OCG

A Brief History of Development of IGCC, IGFC in Japan

NakosoPP

Coal

Feed

Rate

Output

[t/day] [MW]

2 ―

200 ―

1,700 250

1 ― Lab. (HYCOL)

50 ― (EAGLE)

150 ―

1,180 166

PP: Pilot Plant Supported by NEDO

DP: Demonstration Plant

MethodYear

'80 '85 '90 '95 '00 '05 '10 '15

Air

Blown

Lab.

PP

DP

'20

DP

Oxygen

Blown

PP

PP

(CommercialOperation)

Nakoso

DP

▼Now

OCG

Improvement:3.4 points

FurtherImprovement:

1.0 point

A drastic reduction in loss of efficiency for CO2 capture was achieved.

It will be studied whether the cost of CO2 capture can be reduced

from USD 0.03/kWh to USD 0.02/kWh.

Chemical/Physical Absorption

(EAGLE Stage-2 & 3)

Method of CO2 CaptureNet Thermal

Efficiency

Loss of

Efficiency

Without CO2 Capture 45.6%

With CO2

Capture

(Recovery

Rate: 90%)

Chemical

Absorption

Heat Regeneration

(conventional)34.8% 10.8%

Heated Flash

Regeneration

(newly-developed)38.2% 7.4%

Physical Absorption 39.2% 6.4%

(Higher Heating Value Basis)

(With a 1,500ºC class gas turbine)

Development of CO2 Capture Technology

13

SteamAir separation unit

Coal

Air

Oxygen

CO₂ transportation

and storage processes

Shift

reactor

CO2 Capture

Technology

CO2 Capture TechnologyIGCC

Gas clean-up facilities

CO2, H2

Ｈ２

Compressor

Steam

turbine

Gas

turbine

Air

Generator

Stack

HRSG (heat recovery steam generator)

Gasifier

Gasif

icati

on

Combustor

Fuel Cell

Fuel cell

Syngas (CO, H2)CO2

H2 rich gas

Low carbonization in coal-fired power generationOsaki CoolGen (OCG) Demonstration Project

14

Coal

Gasification

Syngas

Treatment Gas Turbine

Combined Cycle

Air Separation UnitWater Treatment

System

Central

Control Room

Area of

CO2 Capture

Scaling up of IGCC with the results from EAGLE Project

OCG Demonstration Project

15

Indoor Coal

Storage Yard

The schedule for OCG Demonstration project

10 11 13 15‘09 12 14 16 17 18 19 20 21

IGCC optimizationfeasibility study

2nd StageCO2 Capture IGCC

1st StageOxygen-blown IGCC Design ,Construction Operations testing

Design, ConstructionFS

Design, Construction

Operations testing

FS

22

Operations testing

3rd StageCO2 Capture IGFC

▼Now

The demonstration test as 1st stage has conducted since 2016.

16

New Energy and Industrial Technology Development Organization

17

IGCC with CO2 capture which has no CO2 capture unit nor shift reactor.

Target net thermal efficiency is 42% with CO2 capture.

(Loss of efficiency is 2 points for CO2 capture)

The cost for CO2 capture could be reduced from USD 0.03/kWh to 0.02/kWh.

Oxy-fuel IGCC

Gasifier

O2

CO2

Coal

GT ST G PowerSynGas

CO2 recycleCO2 capture

CO: 66%

H2: 24%

CO2: 5%

GT: Gas TurbineST: Steam TurbineG: Generator

Combustor

O2 CO2 recycle

Establishment of Technology: in 2035

Recover 100% of CO2

New Energy and Industrial Technology Development Organization

18

A technology for middle-sized coal-fired power stations (100 MW - 500 MW).

Neither air separation unit nor CO2 capture unit is required.

Target net thermal efficiency is 46% with CO2 capture.

(No loss of efficiency for CO2 capture)

The cost for CO2 capture could be reduced from USD 0.04/kWh to 0.02/kWh.

Metal oxidereactor

Coalcombustor

N2

MOX

MOX-1

Coal

Air

Cyclone

Steam

Cyclone

CO2: (98%, dry)HRSG

N2: (98%, dry)HRSG

HRSG: Heat Recovery Steam Generator

Steam (for Power Generation)

N2

MOX

Establishment of Technology: in 2030

Chemical Looping Combustion

New Energy and Industrial Technology Development Organization

(1) Technologies to reduce CO2 emissions from blast furnace (2) Technologies for CO2 capture

・Chemical absorptionReduction of coke

Iron ore

H2 amplification

H2

BOF

Electricity

High strength & high reactivity coke

Coking plant

Coke BFG

BF

Shaft furnace

・Physical adsorption

CO-rich gas

Regeneration

Tower

Reboiler

Absorption

Tower

Steam

Hot metal

Cold air

Hot air

Sensible heat recovery from slag (example) Waste heat recovery boiler

CO2 storage

technology

Kalina cycle

Power generation

Slag

Iron ore pre-reduction

technology Coke substitution

reducing agent production technology CO2 capture technology

Coke production technology for BF hydrogen reduction

for BF hydrogen reduction Reaction control technology

Technology for utilization of unused waste heat

Other project

COG reformer

-10% CO2 emissions

COURSE50 Innovative Iron and steelmaking process

19

(1)Technologies to reduce CO2 emissions

from blast furnace(1) Technologies to reduce CO2 emissions from blast furnace (2) Technologies for CO2 capture

・Chemical absorptionReduction of coke

Iron ore

H2 amplification

H2

BOF

Electricity

High strength & high reactivity coke

Coking plant

Coke BFG

BF

Shaft furnace

・Physical adsorption

CO-rich gas

Regeneration

Tower

Reboiler

Absorption

Tower

Steam

Hot metal

Cold air

Hot air

Sensible heat recovery from slag (example) Waste heat recovery boiler

CO2 storage

technology

Kalina cycle

Power generation

Slag

Iron ore pre-reduction

technology Coke substitution

reducing agent production technology CO2 capture technology

Coke production technology for BF hydrogen reduction

for BF hydrogen reduction Reaction control technology

Technology for utilization of unused waste heat

Other project

COG reformer

(1) Technologies to reduce CO2 emissions from blast furnace (2) Technologies for CO2 capture

・Chemical absorptionReduction of coke

Iron ore

H2 amplification

H2

BOF

Electricity

High strength & high reactivity coke

Coking plant

Coke BFG

BF

Shaft furnace

・Physical adsorption

CO-rich gas

Regeneration

Tower

Reboiler

Absorption

Tower

Steam

Hot metal

Cold air

Hot air

Sensible heat recovery from slag (example) Waste heat recovery boiler

CO2 storage

technology

Kalina cycle

Power generation

Slag

Iron ore pre-reduction

technology Coke substitution

reducing agent production technology CO2 capture technology

Coke production technology for BF hydrogen reduction

for BF hydrogen reduction Reaction control technology

Technology for utilization of unused waste heat

Other project

COG reformer

(2)Technologies for

CO2 capture

-20% CO2 emissions

New Energy and Industrial Technology Development Organization

Pilot-scale experimental blast furnace

20

The test operations have be conducted

on the pilot-scale experimental blast furnace since July 2016.

Experimental Blast Furnace CO2 separation and capture facility

Sequential

operation

New Energy and Industrial Technology Development Organization

21

Conclusion

1. Cost reduction of CO2 capture is indispensable issue under both cases- Reserve CO2, based on the societal request/needs <negative case>- CO2 as a goods for the market, based on CCUS <positive case>

2. 40 % of energy reduction for CO2 capture from coal thermal power plant is achieved by NEDO’s R&D. Applying this technology will contribute to reduce the cost for CO2 capture and storage.

3. NEDO contributes to tackle with the global warming by reducing the cost for CO2 reduction based on the R&D for CCS and CCUS while keeping the level of efficiency for coal thermal power plant at high.

Thank you for your attention.