Energy and Advanced Coal Utilization Strategy in China Prof. Ni Weidou Tsinghua University Chairman of Steering Committee of Tsinghua-BP Clean Energy Research and Education Centre Member of Chinese Academy of Engineering Chairman of Science and Technology Commission of Ministry of Education Contents z Tsinghua BP Clean Energy Centre z Present energy situation in China z China’s energy demand in 2020 z Five challenges China is facing and general conclusions z Strategy for coal utilization z Urgent actions should be taken Five challenges China is facing z Enormous energy demand z Shortage of liquid fuels z Severe environmental pollution z Greenhouse gas emissions z Rural energy supply China’s Present Energy Situation z The total primary energy consumption and production were 1165Mtoe and 1120Mtoe in 2003, respectively z Coal of the dominate primary energy accounts for nearly 70% z The per capita energy consumption is only half of the world average level GDP per capita comparison of countries, in USD 45000 42318 40000 31707 35000 30845 28959 26071 30000 25000 20000 12068 15000 5462 10000 1000 5000 0 Japan Germany America France Singapore 注:1995年价 资料来源:《日本能源经济统计手册》(2002) Korea The average China Per capita energy consumption in toe 8.14 9 8 7 6 5 4 3 2 1 0 5.74 3.85 EU in a Ch ali a s tr Au ap or e ce Si ng an Fr er Am an rm Ge ica y n 0.698 pa Ja 4.35 4.11 4.07 5.69 注:1999年数据,资料来源:《日本能源经济年鉴》(2000) China’s Present Power Generation Situation The total power capacity: 370 GW z Significantly increasing of energy consumption, especially oil, in recent years due to - the faster growth of heavy industries - upgrade of consumption structure - urbanization z The Projection of Energy Demand z The total energy demand in 2020 will range 1750-2310Mtoe in terms of different scenarios ¾ Coal:2100~2900Mt ¾ Oil:400~500Mt ¾ Natural gas :160~200 b m3 ¾ Power generation capacity:860-950 GW z In 2050 the total energy demand will be beyond 3500Mtoe 13 The Energy Production Scenarios 60 (单位:亿吨标煤) 50 40 30 可再生能源 核能 水电 20 天然气 石油 10 煤 一次能源消费 0 2002 2010 2020 2030 2040 2050 (年份) China will be facing the challenges in the future 1、The energy security z The per capita energy reserves of China are much low, especially for the oil and natural gas z Oil will reach the peak production around 200Mt in 2020, after then the production will decrease z 60% oil and natural gas in 2020 will depend on import z 100Mt coal production new capacity will be setup before 2020 100Mt Increasing Dependence on Oil Import 8 7 6 5 4 3 2 1 0 2000 2010 2020 需求量 2030 国内产量 2040 2050 年份 Huge Demand (Market) of LPG in China for Residential and Vehicle Use Huge demand of LPG z China’s DME consumption ranks 3rd in the world – 19.3 mil. t. in 2003 z Mainly for residential use, for vehicles as well z From 1990, LPG consumption increase rate – more than 20%, the highest in the world Rely on import z Because of the limited domestic production – the 2nd largest import country Unit: mil. t. 29.5 Market of DME as alternative of LPG LPG Consumption DME as LPG alter. 22 19.33 11.52 7.18 2003 Real 8.22 2005 Prediction 2010 Prediction •LPG annual import increase rate: 7% •LPG : DME equivalent set to be 1:1.15 Huge Market of DME as Alternative of Diesel Fuel in China Unit: mil. t. 129.9 Predicted demand of diesel fuel 105.46 84.34 27.47 14.87 5.95 2005 Predicted Demand of DME as alternative of diesel oil (5%, 10% and 15% up to 2015) 2010 2015 • Half of diesel oil for highway and long-distance transportation, it is the main market of DME China will be facing the challenges in the future 2、Energy efficiency improvement z The energy consumption intensity of GDP of China in 2000 was 0.89kgoe/$US, 3.34 times of world average level and 4.63 times of OECD average attributed to as high as 42% industrial proportion in GDP and low value added for most products, and low energy efficiency. z The specific energy consumption for most energy intensive products are as 20-50% higher than that of the industrial countries. China will be facing the challenges in the future 3、Environmental impact of energy pollutant z The SO2 and NOx pollutant could be 40Mt and 35Mt and exceed 16Mt and 19Mt of the pollutant limits, respectively, in 2020 if no additional control measures will be taken z China is the second largest CO2 emission country, it would increase in the future Energy Strategic Goal z Meet energy needs for sustainable development z Ensure social and economic security z Improve air quality by promoting z Energy efficiency and clean use z Diversified energy supply Intermediate objectives (2020) 2020: fourfold GDP with double energy consumption z Premium on energy conversation by adjusting industrial structure, upgrading products, and energy efficiency improvement z Ensuring increasing energy demands by fundamental role of coal supply and application of high efficient and environmentally sound technologies z Tackling the needs of oil and natural gas by efficiency improvement, fuel substitution, exploration of new reserve, diversifying supply sources, and oil emergency reservation Intermediate objectives (2035) 2035: fundamental change for diversifying energy supply z Fostering nuclear power development and increasing proportion of nuclear in total power generation to 16% around 2035 z Accelerating renewable energy scaling-up application z Commercial application of hydrogen fuel cell vehicle in main cities Intermediate objectives (2050) 2050:towards to sustainable energy z Reducing coal proportion in total primary energy below 50% z Providing new increasing energy demands mainly by nuclear and renewable and contributing more than 30% proportion in total primary energy after 2035 z Hydrogen power becoming main component of transportation and substantially reducing dependence on oil import Priority Programs From the LT S&T Strategy z Technologies for energy efficiency z Clean coal technologies z The support technologies for protecting oil security z Advanced nuclear technologies z Long distance transmission and grid reliability z Application of renewable energy z Hydrogen & fuel cell Sustainable Use of Coal z According to the sophisticated model study, to 2030~2050 with the constraints of z SO2, NOx emission z C—66Gt, 450 ppm z Less than 30~40% import oil Modernization of coal utilization is unavoidable z Coal will still be the main primary energy in China up to 2050 (50% or more) z Clean coal technology will be the most important problem from the energy supply and environment point of view Sustainable Use of Coal z Rapid increase from 400 GW to 950 GW of power generation needs new approach and new technology beyond direct combustion— polygeneration, coproduction of power、liquid fuels、chemicals and syngas via coal (petcoke, residues, biomass…) gasification z Only polygeneration will make coal derived liquid fuel and clean power (IGCC) both competitive in comparison with coal-fired power generation and petroleum derived fuels (gasoline, diesel…) Sustainable Use of Coal z Shortage of vehicle fuel could be solved by introduction of alternatives, that is methanol for gasoline and DME for diesel. This approach will lead to more efficient utilization of coal, much less emission of HC, NOx, soot… Furthermore, less GHG emission (CO2) according to the total life cycle analysis (LCA) z The modernization of coal use via gasification with steam shift (CO + H2O Æ CO2 + H2) and separation of CO2 from H2, further, sequestration of “pure” CO2 is the best and most effective way for GHG mitigation The strategy for coal utilization Present Strategy z Develop and employ large scale, higher parameter power units with emission control facility, (SC, USC, CFB, air cooling) to meet power generation demand z Large scale demonstration of polygeneration Vision for sustainable coal utilization Near / Medium term Feedstocks Coal Heavy oils Petroleum residuals Biomass Wastes Natural gas Gasification (syngas generator) P O L Y G E N E R A T I O N Energy Carriers End uses Electricity Steam Town gas Methanol/gasoline blend F-T/Diesel blend DME Industry Transportation Domestic Tertiary Agriculture Infrastructure Requirements Near / medium-term Hydrocarbons Medium / long- term DME Energy Carriers Electricity Steam Hydrogen DME Long-term Hydrogen End uses Industry Transportation Domestic Tertiary Agriculture Long term Vision of coal utilization in China Coal based Polygeneration for now and for the future Integrated Resource-Energy-Environment System Air Coal Air Seperation O2 Syngas N2,Ar High Tem. Clean up Gasification Heat/power/cool cogeneration Commercial building residential petroleum coke and residue Steam NG IGCC or GCC Shift chemical products CO2+H2 Seperation H2 Liquid fuel CO2 others Heat/power/coal cogeneration Large-scale power generation Fuel cell Sequestration Dry ice fertilizer algae plant growth enhancement of CBM Integrated Gasification Combined Cycle Simplified illustration of Polygeneration Integrated Resource-Energy-Environment System z Coal/petrol coke/residue→syngas→ elemental S z Syngas used for: – town gas, distributed CHP+cool – large scale power generation(FC, CC) – once through production of methanol – once through production of liquid fuels (F-T liquid, DME) – other chemicals Integrated Resource-Energy-Environment System z Syngas via shift/separation→H2: – urban vehicles via PEM-FC – energy carrier for distributed power/heat/cool coproduction z treatment of CO2: pure / easier to handle – raw material for fertilizer, chemicals, dry ice, planting – enhancement production of coal bed methane (CBM) – sequestration: deep sea/depleted NG field/salt aquifers Features of Integrated Resource-EnergyEnvironment System Integration of different processes: power / heat / cool / chemicals – not only simple combination: simplification of each single process, lowering investment and operation cost – optimized coupling of processes: maximum economic & environmental benefit – adjustment and compensation: “peak” and “valley” of different products – benefit of large scale effect Feature of Integrated Resource-EnergyEnvironment System Highly flexible and open – diverse configurations in accordance to the different concrete situations – step by step implementation – extending with accumulation of funds and experiences With more and more stringent environmental regulation, the advantages of coal gasification polygeneration will be more and more economically significant. New coal fired boiler SO2+NOX Gasification SO2+NOX+ Hg+PM2.5 SO2+NOX+Hg +PM2.5+CO2 Urgent actions should be taken(1) Scenario study (MARKEL model) 160 Total Primary Energy Supply 140 120 EFFICIENCY RENEWABLES NUCLEAR 80 CBM NGAS 60 OIL 40 COAL Gasification COAL Combustion 20 A dvanced T eAll chnologies Updated AdvTech with Caps and Low Nuclear S O 2 , 30% O il& G as, 66 G t C C aps 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 B ase T echnologies BASE CASE Updated model 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 0 1995 Exajoules 100 Urgent actions should be taken(2) The effect of Advanced Technologies Scenario z Provides the same energy services at about the same cost as the Base technologies strategy z SO2 emissions are reduced from 23.7 Mt in 1995 to 16.2 Mt in 2020 and 8.8 Mt in 2050 z Imports of oil and natural gas are limited to 30% of consumption of oil and gas over the long-term z 66 Gt C caps Urgent actions should be taken(3) 600 Post-2000 New Capacity 500 Pre-2000 Capacity Gigawatts 400 300 200 100 0 2000 2005 2010 2015 2020 Projection for Coal Power Plant Capacity Urgent actions should be taken(4) Delaying the start of the transition to coal gasification-based polygeneration technology would significantly increase: z the costs to China of air pollution damages, z the costs of oil imports, z the costs of reducing GHG emissions. Forecast of CO2 emission from different countries CO2 emission of China z 95%+ from energy activities z z Coal is dominant primary energy, 2001 about 26.8EJ, 63.8% of total. Oil 10.8EJ, 25.7%. In 2001, 76.8% of CO2 emission from coal combustion, 21.1% from oil, 2.1% from natural gas z Annual emission growth rate: about 4% Hydraulic 6.9% 2.9 EJ Nuclear etc. 0.5% 0.2 EJ Oil 25.7% 10.8 EJ Coal 63.8% 26.8 EJ Natural Gas 3.1% 1.3 EJ Natural gas 2.1% 0.07 Gt Oil 21.1% 0.64 Gt Coal 76.8% 2.34 Gt Total: 3.05 Gt CO2 CO2 emission trend of China 12 Total Fossil Fuel CO2 Emissions CO2 Emissions from Gas Fuels CO2 Emissions from Liquid Fuels CO2 Emissions from Coal CO2 Emissions from Cement Production 8 8 10 tons of carbon CO2 Emissions from Gas Flaring 4 0 1960 1970 1980 Year 1990 2000 Analysis of power plants with CO2 mitigation CO2 Emission (g C/kWh) 250 211 196 200 200 150 100 50 CO2 Vented 92.2 CO2 Captured 10.9 29.5 27.6 19.9 0 NGCC Coal-SCS Coal-USC IGCC Analysis of power plants with CO2 mitigation (contd.) Efficiency (% HHV) 60 50 53.6 43.3 40 40.5 28.9 30 43.1 42.7 37 31 CO2 Vented CO2 Captured 20 10 0 NGCC Coal-SCS Coal-USC IGCC Analysis of power plants with CO2 mitigation (contd.) CO2 mitigation cost ($/ton C) 350 300 310.5 250 209.5 200 208.8 150 96.5 100 50 0 NGCC Coal-SCS Coal-USC IGCC Coal Gasification System Ready for Large-Scale H2 production and Utilization Coal Gasification is the Core of Future New Thermal Cycles z When coupled with High Temperature Solid Oxide Fuel Cell (SOFC), the efficiency of IGCC-SOFC could be up to 60%~65%. z SOFC has the similar function like Water Gas Shift for increasing CO2 concentration in syngas Roadmap for Carbon Mitigation in China z Improvement of efficiency z Rapid development of nuclear power z Renewable energy (wind, biomass, solar) z Polygeneration via coal gasification z Without shift – less CO2 z With shift – more CO2 could be separated z Partial decarbonization of syngas, combustion of H2-rich fuel gas in GTCC, SOFC hybrid, … z Utilization of CO2 – fertilizer, EOR, enhancement of CBM recovery… z Geological sequestration, survey of potential and possibilities of sequestration – depleted oil and gas fields, salt aquifers, deep sea… Infrastructure problems. Thank You! Xie xie