EPRI Studies of IGCC Impacts – Emissions, Economics and Status APPA New Generation Workshop August 1, 2007 Portland, Oregon Stu Dalton (sdalton@epri.com) Director, Generation U.S. Capacity Additions – All Types Evaluation of Announcements, 1999 to 2015, as of Fourth Qtr. 2006 Capacity, MW 60,000 US Still depends on coal for >50% of KWh 50,000 40,000 Other Wind Nuclear Coal Combustion Turbine Combined Cycle Retirements 30,000 20,000 10,000 0 -10,000 1999 2001 2003 2005 2007 2009 2011 2013 2015 “Other” includes biomass, solar, hydro, internal combustion, geothermal, pet coke or any other type with announcements available to investigator. Capacity additions for each year prior to summer peak load season. Source: Forthcoming “Power Plant Update” prepared for EPRI Program 67 by EVA. © 2007 Electric Power Research Institute, Inc. All rights reserved. 2 New Technology Deployment Curve for Coal Research Development Demonstration Deployment Mature Technology Advanced USCPC Plants Anticipated Cost of Full-Scale Application 1400°F CO2 Capture 1150°F+ USCPC Plants 1150°F+ 1100°F IGCC Plants Oxyfuel <1100°F SCPC Plants CO2 Storage Time and level of maturity Not All Technologies at the Same Level of Maturity. © 2007 Electric Power Research Institute, Inc. All rights reserved. 3 1050°F Coal Technology Options – w/o CO2 Capture (approximate data) NSPS = New Source Performance Standards PC = Pulvervized Coal SCPC = Supercritical PC USPC = Ultra-Supercritical IGCC = Integrated Gasification NGCC = Natural Gas Efficiency (HHV Basis) PRB Bit. Regulated SO2 lb/MW-hr NOX lb/MW-hr Particulate lb/MW-hr Mercury NonRegulated % Reduction CO2 lb/MW-hr Water Usage gal/MW-hr NSPS 2006 PC Fleet Average SCPC USPC IGCC NGCC (1050°F Steam) w/ SCR (1100°F Steam) w/ SCR (CoP E-Gas) w/ SCR (GE 7FB) w/ SCR -- 33% 37% 38% 38% 39% 38% 39% 50% 1.4 13 0.3 1.1 0.3 1.1 <0.1 nil 1.0 6 <0.3 <0.5 <0.3 <0.5 <0.2 <0.1 0.2 1 <0.2 <0.2 <0.1 nil -- ~36% 80% 80% 90% -- -- 2,250 1,950 1,900 1,900 1,850 1,850 1,800 800 -- 1,200 1,100 1,000 750 600 Relative Emissions Profiles for PC and IGCC are Very Low. © 2007 Electric Power Research Institute, Inc. All rights reserved. 4 Plant Construction Costs Escalating Construction Cost Indices (Source: Chemical Engineering Magazine, March 2007) 1,400 Chemical Engineering Plant Cost Index 540 1,350 Marshall & Swift Equipment Cost Index 520 1,300 500 1,250 480 1,200 460 1,150 440 1,100 420 1,050 400 1,000 380 Jun-98 Jun-99 Jun-00 © 2007 Electric Power Research Institute, Inc. All rights reserved. Jun-01 Jun-02 Jun-03 5 Jun-04 Jun-05 Jun-06 950 Jun-07 Marshall & Swift Equipment Cost Index Chemical Engineering Plant Cost Index 560 Capital Cost Estimates in Press Announcements and Submissions to PUCs 2006-7 — All Costs Are Way Up! Owner Plant Name/ Location Net MW Technology/C oal Reported 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 © 2007 Electric Power Research Institute, Inc. All rights reserved. 6 EPRI PC and IGCC Net Power Output With and WithoutEPRI COPC #6 Coal) and IGCC Net(Illinois Power Output 2 Capture With and Without CO2 Capture (Illinois #6 Coal) 800 No Capture Net Power Output, MWe . 700 Retrofit Capture New Capture 600 500 400 300 200 100 0 Supercritical PC © 2007 Electric Power Research Institute, Inc. All rights reserved. GE Radiant Quench GE Total Quench 7 Shell Gas Quench E-Gas FSQ EPRI PC and IGCC Capital Cost Estimates With and Without CO2 Capture (Illinois #6 Coal) 600 MW (net) PC+10% and IGCC Capital Cost Estimates (All IGCCEPRI and CCS cases have Contingency for FOAK) With and Without CO2 Capture (Illinois #6 Coal) 5,000 Retrofit Capture . Total Capital Requirement, $/kW (2006$) No Capture 4,500 New Capture 4,000 3,500 3,000 2,500 2,000 1,500 Supercritical PC © 2007 Electric Power Research Institute, Inc. All rights reserved. GE Radiant Quench GE Total Quench 8 Shell Gas Quench E-Gas FSQ EPRI PC and IGCC Cost of Electricity With and Without CO2 Capture (Illinois #6 Coal) EPRI 600 MW have (net) +10% PC and IGCC Cost of Electricity (All IGCC and CCS cases TPC Contingency for FOAK) With and Without CO2 Capture (Illinois #6 Coal) 30-Yr levelized COE, $/MWh (Constant 2006$) . 130 No Capture 120 Retrofit Capture COE Includes $10/tonne for CO2 Transportation and Sequestration New Capture 110 100 90 80 70 60 50 40 Supercritical PC © 2007 Electric Power Research Institute, Inc. All rights reserved. GE Radiant Quench GE Total Quench 9 Shell Gas Quench E-Gas FSQ Basis for EPRI CoalFleet Program 2006 PC & IGCC Estimates Report 1013355 - 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. • TCR 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. © 2007 Electric Power Research Institute, Inc. All rights reserved. 10 Challenge = Cost … Recent EPRI Economic Evaluations of SOA Coal Technologies with CO2 Capture and Sequestration (CCS) • At the current state-of-the art (SOA) there is no “silver bullet” technology for CCS. Technology selection depends on the location, coal, and application. • IGCC/Shift is least cost for bituminous coals • IGCC/Shift and PC plants with amine scrubbing have similar COE for high-moisture subbituminous coals • PC with amine scrubbing is least cost for lignites • CFBC can handle high-ash coals and other low-value fuels • Oxy-fuel (O2/CO2 Combustion) and chemical looping are technologies at developmental stage © 2007 Electric Power Research Institute, Inc. All rights reserved. 11 Coal Characteristics Drive Technology Selection IGCC w/ CCS Bituminous Coal Sub-Bituminous Coal PC w/ CCS Usually Favored Water use limits Lower elevation Lower moisture Lower ash Higher elevation Higher moisture Higher ash Higher ambient temp. Lignite Coal Usually Favored Nth Plant Economics © 2007 Electric Power Research Institute, Inc. All rights reserved. 12 Integrated Gasification Combined Cycle (IGCC) With CO2 Removal Coal Air ASU Gasifier Sulfur CO2 Gas Clean Up Shift O2 CC Power Block Power H2 Slag Steam IGCC with CO2 Capture (e.g., FutureGen, Carson Hydrogen Power Project) Shift Reactor CO2 Compressor Sulfur Recovery Needs Space, Energy and Integration. © 2007 Electric Power Research Institute, Inc. All rights reserved. CO2 Sulfur Product 13 CO2 Recovery (e.g., Selexol 2nd stage) Coal Gasification Plants w/CO2 Capture (USA 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 The Great Plains Synfuels Plant http://www.dakotagas.com/Companyinfo/index.html • Great Plains recovered CO2 used for EOR: – 2.7 million tons CO2 per year – ~340 MWe if it were an IGCC No Coal IGCC Currently Recovers CO2 © 2007 Electric Power Research Institute, Inc. All rights reserved. 14 Weyburn Pipeline http://www.ptrc.ca/access/DesktopDefault.aspx Pulverized Coal With CO2 Capture “Today” Fresh Water Coal Air PC Boiler Steam Turbine Reduce NOx Reduce Ash SCR ESP Fly Ash Reduce Sulfur CO2 to Use or Sequestration CO2 Removal e.g., MEA FGD Flue Gas to Stack CO2 to Cleanup and Compression Gypsum/Waste Cleaned Flue Gas to Atmosphere CO2 Stripper • Pre-condition Flue Gas (Clean) less than 1 PPM SOx allowed? • Absorb CO2 • Strip CO2 • Requires significant energy Absorber Tower Flue Gas from Plant CO2 Stripper Reboiler Needs Space, Integration and Energy. © 2007 Electric Power Research Institute, Inc. All rights reserved. 15 US Coal Units 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 (claim by operators) • 300 metric tons recovered per day: – ~15 MWe power plant equivalent • Many pilots planned and in development: – 5 MW Chilled Ammonia Pilot – Many other processes under development AES Cumberland ~ 10 MW EPRI CO2 (Report 1012796) Assessment of PostCombustion Carbon Capture Technology Only Demonstrated on a Small Scale to Date. © 2007 Electric Power Research Institute, Inc. All rights reserved. 16 Challenge- Regulatory Uncertainty on CO2 Emissions • • • • Kyoto Signatory Countries post 2012. New G-8 Proposals New Motion in Australia, EU US proposed Federal legislation Intense in Washington – MANY bills 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, Washington - others… – New long term base load power or renewal (>5years) commitments shall have CO2 emissions no greater than NGCC (established as <1100 lbs/MWh ~ 500 kg/MWh). • Liability of CO2 injection into geological formations? New questions with BP “Carson Hydrogen Power Project” project in California © 2007 Electric Power Research Institute, Inc. All rights reserved. 17 Preparing for Carbon Constraints Variation of Plants Variation Geology CO2 Capture • Plant Efficiency • Capture Technology • Capture Pilots • Capture Demonstrations Confirmed Long Term Sequestration Address Societal Concerns • Test Multiple Geologies • Liability • Well Integrity • Health • Monitoring • Public Acceptance Multiple Challenges Requiring Concurrent Resolution. © 2007 Electric Power Research Institute, Inc. All rights reserved. 18 CoalFleet for Tomorrow is an International Collaboration on Clean Coal including CO2 Capture • Participants from 5 continents , Asia, Australia, Europe, Africa, North America (2/3 of all coal fired in NA) • Best design guides developed by industry for industry • Power Producers, Suppliers, Rail, Coal, engineering firms, Governmental entities • Many of the leading “early deployment” firms working with us to assure successful designs that meet the performance and operational goals • New plants starting to look at designs for CO2 capture and integration © 2007 Electric Power Research Institute, Inc. All rights reserved. 19 CoalFleet Participants Span 5 Continents >60% of U.S. Coal-Based Generation, Large European Generators, Major OEMs (50 & 60 Hz) and EPCs, CEC, U.S. DOE Alliant Energy Corp. Alstom Power Ameren Services Company American Electric Power Arkansas Electric Coop. Austin Energy Babcock & Wilcox Company Bechtel Corp. BP Alternative Energy International California Energy Commission ConocoPhillips Technology Consumers Energy CPS Energy CSX Transportation Dairyland Power Coop. © 2007 Electric Power Research Institute, Inc. All rights reserved. 20 Doosan Heavy Industries (Korea) Duke Energy Corp. Dynegy EdF (France) Edison International Edison Mission Energy Endesa (Spain) ENEL (Italy) Entergy E.ON UK E.ON US ESKOM (South Africa) Exelon Corp. FPL GE Energy (USA) Golden Valley Electrical Assoc. CoalFleet Participants Span 5 Continents (cont’d) Great River Energy Hoosier Energy Integrys Energy Group (WPS) Jacksonville Electric Authority Kansas City Power & Light Kellogg Brown & Root (KBR) Lincoln Electric System Midwest Generation Minnesota Power Mitsubishi Heavy Industries (MHI) Nebraska Public Power District New York Power Authority Oglethorpe Power PacifiCorp PNM Resources Portland General Electric © 2007 Electric Power Research Institute, Inc. All rights reserved. 21 Pratt & Whitney Rocketdyne Richmond Power & Light Rio Tinto Salt River Project Siemens Southern California Edison Southern Company Stanwell Corporation TransCanada Pipelines Limited Tri-State G&T TVA TXU U.S. DOE (NETL) We Energies Wolverine Power Xcel Energy What’s Next – What’s Needed for Coal • Acceleration of the Industry efforts worldwide in addition to governmental efforts – new pilots, demonstrations, initiatives • Cost reductions and efficiency improvements for the underlying technology • Three “strata” of certainty/understanding – Political/siting, economic, technical © 2007 Electric Power Research Institute, Inc. All rights reserved. 22 Backup sides © 2007 Electric Power Research Institute, Inc. All rights reserved. 23 IGCC with CO2 Removal Steam Coal Prep Gasification C + H2O = CO + H2 O2 Sulfur Shift CO+ H2O = CO2 + H2 Gas Cooling CO2 to use or sequestration Sulfur and CO2 Removal Hydrogen N2 Air Separation Unit Gas Turbine Air BFW Air Steam HRSG Steam Turbine © 2007 Electric Power Research Institute, Inc. All rights reserved. 24 BFW IGCC CO2 Retrofit Considerations • The ideal IGCC that you would build if you knew it would later be retrofitted with CO2 capture would be quite different from the ideal IGCC you would build if you knew it would never capture CO2 – Direct water quenching over syngas coolers – Coal-water slurry over dry feeding – Higher gasifier operating pressure – Physical solvents for acid gas removal – Capability to handle additional pressure drop in syngas production train © 2007 Electric Power Research Institute, Inc. All rights reserved. 25 PC CO2 Capture Retrofit Considerations • If you are designing a plant today with the idea that some time during its life it will be retrofitted with capture, there are some things you should do differently: – Add space – Place the plant near a suitable geologic storage site – Make the plant as efficient as practical – higher efficiency means less CO2 you will have to capture and compress – Design emissions controls to either achieve ultra-low SOx and NOx emissions today, or design the equipment to be upgraded to ultra-low emissions – Design steam turbine to accommodate very large extraction lowadding pressure steam solvent regenerationmakes a “Ifofjust space forforthe CO2 equipment coal power plant capture ready, then my driveway is Ferrari-ready” – David Hawkins, NRDC © 2007 Electric Power Research Institute, Inc. All rights reserved. 26 USC Worldwide Experience Curve US Eddystone 1960 1135F 1112F © 2007 Electric Power Research Institute, Inc. All rights reserved. 27 IGCC RD&D Augmentation Plan—Expected Benefits Case: Slurry-fed gasifier, Pittsburgh #8 coal, 90% availability, 90% CO2 capture, 2Q 2005 dollars Total Plant Cost ($/kW) 2200 2000 Mid-Term: • ITM oxygen • G-class to H-class CTs • Supercritical HRSG • Dry ultra-low-NOX combustors Plant Net Efficiency (HHV Basis) 40 1800 1600 1400 Near-Term: • Add SCR • Eliminate spare gasifier • F-class to G-class CTs • Improved Hg detection 1200 2005 2010 © 2007 Electric Power Research Institute, Inc. All rights reserved. 38 Long-Term: • Membrane separation • Warm gas cleanup • CO2-coal slurry 36 Longest-Term: 34 • Fuel cell hybrids 32 2015 2020 28 2025 30 2030 USC PC RD&D Augmentation Plan—Expected Benefits Case: Pittsburgh #8 coal, 90% availability, 90% CO2 capture, as reported data from various studies (not standardized) Total Plant Cost ($/kW) 2400 Near Mid-Term: • Upgrade steam conditions to 2200 4200/1110/1150 Near-Term: • Upgrade solvent from MEA to MHI KS-1 (or equivalent) 2000 • Upgrade steam conditions from 3500/1050/1050 to 3615/1100/1100 1800 Plant Net Efficiency (HHV Basis) 40 Mid-Term: • Upgrade steam conditions to 5000/1300/1300, and then to 5000/1400/1400/1400 36 34 Long-Term: • Upgrade solvent to advanced sorbents 1600 1400 2005 © 2007 Electric Power Research Institute, Inc. All rights reserved. 2010 38 2015 29 2020 32 30 2025 EPRI’s CoalFleet for Tomorrow Program • Build an industry-led program to accelerate the deployment of advanced coal-based power plants; members now span five continents • Employ “learning by doing” approach; generalize actual deployment projects Further information available at www.epri.com/coalfleet (50 & 60 Hz) to create design guides • Augment ongoing RD&D to speed market introduction of improved designs and materials • 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 High reliability Near-zero SOX, NOX, and PM emissions Shorter project schedule Easier financing and insuring © 2007 Electric Power Research Institute, Inc. All rights reserved. 30