Summary of the Report Low-Carbon Coal: Meeting U.S. Energy ... · Section 7 -Coal Beneficiation Reduces CO 2Emissions from the Overall Coal-to-Electricity Process • Coal beneficiation

Summary of the Report

Low-Carbon Coal: Meeting U.S.

Energy, Employment and CO2 Emission

Goals with 21st Century Technologies

Presented to the National Coal CouncilDecember 4, 2009

Steve JenkinsCH2M HILL

22

Sections of the ReportSections of the Report

• The Context of Coal-Based Generation With CCS

• Timeline and Costs

• Retrofitting the Existing Fleet

• Technologies for the Capture of CO2

• Securely Storing CO2

• Legal/Regulatory Issues

• Coal Beneficiation

• Underground Coal Gasification

• The U.S. as the Technology Leader

33

What Makes this Report Different?What Makes this Report Different?

• “Hands-on” work group members that are

personally involved in technology R&D and

with CCS project demonstrations

• Academia, coal industry, electric utilities,

engineering firms, law firms, regulatory

agencies, and technology developers

• Real-time study results and conclusions

44

Report Section LeadersReport Section Leaders

• Dr. Frank Burke – Consultant

• Dr. Frank Clemente – Pennsylvania State University

• Kipp Coddington – Alston & Bird

• Bill DePriest – Sargent & Lundy

• Janet Gellici – American Coal Council

• Steve Jenkins – CH2M HILL, Inc.

• Dr. Holly Krutka – ADA Environmental Solutions

• Mark Schoenfield – Jupiter Oxygen Corporation

• Steve Winberg – CONSOL Energy

55

Findings and RecommendationsFindings and Recommendations

• Listed in the Executive Summary and at the

beginning of each section of the report

• Findings - based on details and descriptions in each

section

• Recommendations

– Actions for DOE to take

– Funding needed for the CCS implementation strategy

– Regulatory and legal changes needed to provide a

permitting pathway, reduce risk, and manage technical

and financial liabilities

66

Section 1 - The Energy Context of Coal-Based Generation With CCS

Section 1 - The Energy Context of Coal-Based Generation With CCS

Key Recommendations

• DOE should work with other relevant groups to implement

the National Research Council’s conclusion that the

existing coal-based generation fleet can be fully replaced

by a combination of retrofitted, repowered and new coal-

based generation with CCS.

• The Council fully supports implementation of the DOE plan

to have 10 large-scale CCS demonstration projects on line

by 2016, with the goal of initiating widespread deployment

of coal-based generation with CCS at commercial scale in

the next 8-10 years.

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Section 2 - Timeline and Costs for Commercial-Scale CCS Deployment


Key Findings• CCS deployment can begin with a “Pioneer Plant” phase of integrated CCS

projects (5-7 GW).

• With sufficient funding and an immediate start, these plants could begin operating by ~2016.

• A subsequent financially subsidized “Early Adopter” phase of ~60 GW would be the next step.

• The current U.S. coal-based fleet of ~300 GW capacity could be replaced with CCS by 2050.

• This approach, which is consistent with Secretary Chu’s goals for CCS deployment, is based on an immediate start of the Pioneer Plant phase, and that legal, regulatory, permitting, liability, and financial factors do not impede commercial-scale CCS deployment.

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2007 2012 2017 2022 2027 2032 2037 2042 2047

Storage Demos/RCSP

Storage Demos/ New

Projects

Pioneer Plants (Retrofit)

Pioneer Plants (Greenfield)

Pioneer Plants (O&G)

Early Adopters (Retrofit)

Early Adopters (Greenfield)

Second Generation

Project Definition

Project Development

Regulatory Approval

Final Design & Construction

Startup & Shakedown

Operation

Monitoring

Capacity Addition

Implementation ScheduleImplementation Schedule

99

CCS Capacity Addition

0

50

100

150

200

250

300

350

2015 2020 2025 2030 2035 2040 2045 2050

Year

Cu

mu

lati

ve C

CS

Cap

acit

y, G

W

Retrofit

New

Advanced

Total non-EOR

EOR

Total w/ EOR

Schedule for Capacity AdditionSchedule for Capacity Addition

1010

CostsCosts

• The incremental capital cost (relative to new plants without CCS) for

the CCS Pioneer Plants is $12 billion, and for Early Adopters is

$192 billion (2007$).

• The annual increment of the LCOE is $2.4 billion for the Pioneer

Plants and $16.4 billion for the Early Adopters.

• CCS costs are competitive with other technologies to “decarbonize”

electricity generation and should decline with R&D and experience

1111

CCS Financing and Risk ManagementCCS Financing and Risk Management

• CCS projects must fall within reasonable risk

guidelines and provide an internal rate of return

at or exceeding 20 percent per annum to attract

private-sector investment.

• The insurance industry will not commit capital to

long-term CO2 storage projects without a well-

defined role for government and an

understanding of how liability is to be addressed.

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Key Recommendations

• DOE should conduct large, long duration CO2 injection tests in a wide range of geologic settings and characterization of 5-10 potential commercial scale CO2 storage sites.

• DOE should design and determine the costs, timing and co-funding requirements of the “Pioneer Plant” program. These projects should be geographically/geologically diverse, encompass a range of coals, CO2 capture and electricity generating technologies.

• DOE should continue and expand research to improve the performance and reduce the cost of CCS for greenfield and retrofit applications. This should include expedited testing atpilot and larger scale of promising CO2 capture technologies.

1313



Key Recommendations

• Legislation or relevant agency actions at DOE and elsewhere are needed to:

– Create an appropriate mix of medium to high levels of financial incentives to stimulate CCS investments.

– Define the responsibilities/liabilities, including federal and state regulatory roles for long-term CO2 storage facilities. Previously established models can be followed to fund or insure the liabilities associated with these facilities.

– Encourage alternatives to long-term CO2 storage, such as CO2 reuse in industrial processes, which should be explored to alleviate legacy liabilities.

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Section 3 - Retrofitting the Existing Coal-based Generating Fleet to Increase Efficiency and Decrease CO2 Emissions


• Two primary methods to achieve significant CO2

emission reductions on the existing fleet TODAY:

– Retrofit technologies to improve efficiency: less coal is

burned for the same amount of electricity, resulting in

lower CO2 emissions

– Retrofit partial CO2 capture technology on existing units

• The combination of high efficiency retrofits and

partial CO2 capture would result in significant

near-term reductions in CO2 emissions.

1515

Technologies for Enhanced EfficiencyTechnologies for Enhanced Efficiency

• A suite of commercially-available technologies to improve plant efficiency

• Increasing fleet efficiency by 1-2% would result in near-term CO2 reductions of 20-40 million tons per year.

• Report lists specific groups of technologies by cost range:

• ~$1 million• $1-10 million• >$10 million

1616

Efficiency ImprovementsEfficiency Improvements

• Examples of retrofit technologies

– Combustion improvements.

– Chemical reagents to improve boiler cleanliness

when using coals with low ash fusion

temperatures or difficult ash chemistry.

– Steam turbine improvements, including

computer-designed upgrades of blades.

– Variable-speed drive to reduce power

consumption on pumps and motors.

– Air heater upgrades to increase heat recovery

and reduce leakage.

– Advanced control systems to optimize

temperature, pressure and flow rates of coal,

air, steam and water.

1717

Partial CO2 CapturePartial CO2 Capture

• Until high CO2 removal rate and CO2 storage technologies are commercially available and proven at large scale, partial CO2 capture (i.e. 40-60%) could provide additional near-term reductions in CO2

emissions from the existing coal-based generating fleet

– High removal rate CO2 capture systems on a slipstream of each plant’s exhaust gases.

– Example: 80% CO2 capture from 50% of the flue gas provides overall 40% CO2 reduction

• Benefits of partial CO2 capture

– Minimizes impacts on existing plant configuration, efficiency and output

– Will help to commercialize technologies for full-scale implementation

• Best candidate sites

– Higher efficiency SCPC units with existing FGD and NOx controls

– Sufficient space for addition of CO2 capture equipment

– Located near sites where the CO2 can be stored or used for EOR

1818



Key Recommendation

• In order to achieve near-term reductions in CO2

emissions from the existing coal-based generating

fleet, Congress and the DOE should provide

economic incentives to encourage the retrofit of

efficiency-improving technologies and/or partial

CO2 capture technologies to the existing coal-

based generating fleet.

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Section 4 - Technologies for the Capture of CO2Section 4 - Technologies for the Capture of CO2

Key Findings

• Advanced emission control technologies have reduced

regulated emissions by >90% over 30 years – similar

development steps are currently being taken to address

CO2.

• A suite of technology options are being researched,

developed, and demonstrated.

• With continued support, further reductions in the costs

associated with commercial-scale CCS technologies will

occur.

2020

Section 4 - Technologies for the Capture of CO2Section 4 - Technologies for the Capture of CO2

Key Recommendations

• DOE should expand its R,D&D program

– Clean Coal Power Initiative (CCPI)

– Develop more consortia-matching projects

• DOE should continue to support the FutureGen

demonstration program to utilize IGCC with CCS.

• DOE should increase its R&D efforts to develop advanced

construction materials.

• DOE should find ways to reduce the delays associated with

co-funded projects.

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Section 5 - Securely Storing CO2Section 5 - Securely Storing CO2

Key Findings

• CO2 has been successfully transported on a commercial basis for

over 30 years with the majority of the CO2 used for EOR.

• Geological CO2 storage capacity in the U.S. is geographically wide-

spread and represents centuries of storage capacity. The Regional

Carbon Sequestration Partnerships has been very successful in

addressing many of the issues surrounding CO2 storage, but more

work is required to qualify tests and develop more and better data

from large-scale (>1 million tons/year) demonstrations.

• Some of the biggest challenges facing long-term geological storage

are the custody and liability issues.

• Beneficial use technologies face both technical and economic

hurdles to scale-up and to achieve widespread deployment, but

they offer a permanent solution to CO2 emission reductions.

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Section 5 - Securely Storing CO2Section 5 - Securely Storing CO2

Key Recommendations

• DOE should continue its efforts to more fully characterize and document the available geological formations available for CO2

storage and to better understand the effects of CO2 storage on geological formations.

• DOE should continue to work with other Federal agencies on long-term liability, and public education and outreach. DOE’sCCS expertise can be of enormous assistance to other federal agencies tasked with various CCS-related regulatory requirements.

• DOE should spearhead the cataloguing of available information tocompare and contrast beneficial use technologies and conduct tests to determine which are the most promising. This would expedite the determination of which alternatives are most economically attractive, based on the specific circumstances of a company or plant.

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Section 6 - Legal/Regulatory IssuesSection 6 - Legal/Regulatory Issues

Key Findings

• Legal/regulatory issues must be addressed,

with long-term stewardship being a priority.

• Legal framework is taking shape, led by EPA

and the States.

• DOE must be play a leading role in ensuring

that appropriate regulations are developed.

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Section 6 - Legal/Regulatory IssuesSection 6 - Legal/Regulatory Issues

Recommendations

• Federal/State governments must take responsibility

for closed storage sites.

• Permitting requirements must be stringent but

unified and take advantage of work that the States

already have done.

• Exempting injection and storage from existing laws

(RCRA and CERCLA) that never contemplated CCS

may be necessary and appropriate.

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Section 7 - Coal Beneficiation Reduces CO2 Emissions from the Overall Coal-to-Electricity Process


• Coal beneficiation technologies modify and enhance a

coal’s characteristics prior to combustion.

• A suite of technologies exist today to reduce a wide

range of power plant emissions.

– NOx, SO2, PM, Hg, HAPs, CO

• Benefits include improved energy conversion efficiency

and improved environmental performance.

– Higher efficiency means lower CO2 emissions for the same

MWh generated

• Beneficiated coals can be used in existing and new coal-

based power plants.

262626

Coal Beneficiation

Moisture Reduction

Lower LOI

Reduced

Velocities

Reduced Draft

Reduced Emissions:

NOx, CO, SO2

Reduced Air

Improved

Combustion

Reduced Mill Demand

Increased

Boiler

Efficiency

Less NOx

Less CO

Mineral Matter Reduction

Reduced

Reagents

Reduced

Ash Load

Cleaner Fuel

PM, Hg, HAPs

Combined Benefits

Reduced Tube Erosion

Reduced Derates

Reduced Water Use

Reduced

Sootblowing

Less Slag

Less Fouling

Lower CO2

emissions

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Recommendations

• DOE should ensure that coal-based units receive

credit for CO2 emission reductions achieved

through the use of beneficiated coal technologies.

• DOE should use the CCPI or EPAct 2005’s Loan

Guarantee Program for accelerated development

and commercial deployment of coal beneficiation

technologies.

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Section 8 - Underground Coal GasificationSection 8 - Underground Coal Gasification

Key Findings

• UCG has the potential to yield access to the energy

of hundreds of billions of tons of unmineable coal in

many countries, including the U.S.

• UCG appears to be especially amenable to CCS

because the CO2 can be stored in the cavities

formed by UCG.

• More extensive and systematic research is needed

to fully assess the potential of UCG.

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Section 8 - Underground Coal GasificationSection 8 - Underground Coal Gasification

Recommendations

• A four-year UCG program (similar to that proposed

by the Clean Air Task Force) should be

implemented as soon as possible – including the

development of up to five commercial scale

projects within the U.S.

3030

Section 9 - The U.S. as the Technology LeaderSection 9 - The U.S. as the Technology Leader

Key Findings

• Technology transfer from the U.S. is vital to the effort to

reduce global emissions of CO2.

• This transfer will not occur at required levels unless

intellectual property rights for CCS technologies are

honored and protected throughout the world.

• A good example of technology cooperation with protection

is GreenGen, a $1 billion coal-based power plant with CCS

scheduled for operation in China in 2011.

3131

Section 9 - The U.S. as the Technology LeaderSection 9 - The U.S. as the Technology Leader

Recommendations

• DOE should work with other parts of the Administration to strengthen and enhance the cooperation symbolized by the Joint Agreement between President Obama and President Hu Jintao.

• DOE should support the position that all nations bear the greater share of the economic burden of CO2 mitigation within their own borders.

• DOE should play a leading role in the Administration’s effort to ensure that intellectual property rights for CCS technologies developed by American companies are fairly protected in other countries.

• DOE should play a leading role in developing an equitable international framework to enable widespread and affordable deployment of CCS to begin within 8 to 10 years.

3232

Next StepsNext Steps

• In order to meet the President’s CO2 reduction

goals, it is imperative that a policy similar to the

CCS implementation plan described in this report

begin immediately and be appropriately funded.

• The legal and regulatory issues related to liability

of long-term CO2 storage must be solved now in

order for the implementation plan to move

forward.

Documents

Summary of the Report Low-Carbon Coal: Meeting U.S. Energy ... · Section 7 -Coal Beneficiation Reduces CO 2Emissions from the Overall Coal-to-Electricity Process • Coal beneficiation