Transcript Defining Success for the Gasification Industry

Gasification:
The Enabling Technology
Western Regional Air Partnership Meeting
Salt Lake City, Utah
April 5, 2006
James Childress
Executive Director
Gasification Technologies Council
GTC Mission
Promote greater use of gasification
technologies in environmentally superior
manner.
Priority Activities
Industry – customer education (national
conference and participation in other events)
Government education with focus on state level
officials – legislative, executive (PUC/PSC,
DNR/DEQ, Economic Development)
www.gasification.org
GTC Members
Air Liquide America*
Air Products and Chemicals, Inc.*
Allied Syngas Corporation*
American Electric Power*
Aramco Services Company*
The Babcock & Wilcox Company
Bechtel Corporation*
Black & Veatch Corporation*
BOC Gases*
Burns & McDonnell
Calpine Corporation*
Cinergy Corporation*
ConocoPhillips*
Constellation Energy*
The Dow Chemical Company*
Drummond Company, Inc
Eastman Chemical Company*
Emery Energy Company
Fluor Corporation*
Foster Wheeler Energy International Inc.*
Gas Technology Institute
GE Energy*
Genesis Crude Oil, L.P.
Global Energy, Inc.*
Headwaters Inc.
Kellogg, Brown & Root*
Kentucky Center for Applied Energy Research
Lake Charles Cogeneration, LLC
Linde Process Plants
CH2M Hill
Lurgi AG
Mitretek
Mitsubishi Power Systems, Inc.
Nexant, Inc.
Peabody Energy*
Porvair PLC
Pratt & Whitney Rocketdyne
Propulsion & Power*
Praxair, Inc.*
Primary Energy, Inc.
Sasol Technology
Sempra Generation
SFA Pacific, Inc.
Shell Global Solutions B.V.*
Siemens Power Generation, Inc.*
Snamprogetti S.p.A.
Tennessee Valley Authority*
Uhde Corporation of America*
UOP
URS Corporation
Valvtechnologies, Inc
WMPI Pty., LLC*
Worley Parsons Group Inc.*
*Member of the Board of Directors
www.gasification.org
The Message
IGCC cleanest coal-based alternative for power generation,
reducing natural gas dependency for electricity.
Gasification also opens the way for coal to compete with
natural gas and petroleum to produce value added products.
Chemicals
Fertilizers
Fuels (pipeline gas & F-T liquids)
Implications for: National Security, Fuel Diversity,
Geographical Conversion Diversity
Gasification adds value to Nation’s coal reserves and other
“distressed” fuels/feedstocks.
www.gasification.org
What is Gasification?
A Process Technology
Not Combustion
Converts Feedstocks to H2 & CO (Syngas)
Cleans Gas as Integral Part of Process
Syngas Can Be Used to Produce:
• Power
• Chemicals
• Fuels
www.gasification.org
What is Gasification?
Source: U.S. DOE
www.gasification.org
World Gasification Survey:
Summary Operating Plant Statistics
2004
117 Operating Plants
385 Gasifiers
Capacity~45,000 MWth
Feeds
Coal 49%, Pet. Resid. 36%
Products
Chemicals 37%, F-T 36%, Power 19%
Growth Forecast 5% annual
www.gasification.org
U.S. Gasification Experience
20 Plants Operating
Feedstocks
Coal/Petcoke - 7
Gas - 9
Petroleum - 4
Products
Chemicals - 14
Power - 4
Gas - 2
www.gasification.org
World Gasification Capacity Growth
2000-2010
(MWth Equivalent)
75,000
65,000
55,000
45,000
Source: 2004 World Gasification Survey
35,000
2000
2002
2004
2006
2008
2010
www.gasification.org
Geographical Distribution of World
Gasification Capacity, 2004
(MWth Equivalent)
C&S America
1%
North America
15%
Afr/ME
34%
Europe +
28%
Asia/Aust.
22%
www.gasification.org
Factors Driving Gasification Trends
Asia
Fertilizers & Chemicals (China, poss. India)
Fuels (China)
Japan, Policy Shift Toward IGCC?
Europe
Refinery Models – Environment Driven Toward Cleaner Fuels
– Pernis (Hydrogen, Power)
– Italian Plants (Power)
– Gdansk
– Netherlands
Coal+Renewables – Nuon (Netherlands), Sanazarro (Italy)
CO2 Concerns
North America
Natural Gas & Petroleum Prices
U.S. Coal, Power, Environment
U.S. Petcoke in Refineries (Hydrogen, Power)
SNG
Fischer-Tropsch Clean Diesel
U.S. Public Sector Incentives ($$ + Regulations)
Canada – Oil Sands, Coal
www.gasification.org
U.S. Gasification Drivers
High natural gas & petroleum prices affecting
power and manufacturing industries
Increasing demand for clean electricity from coal
w/expectations of CO2 limits
Demand for cleaner, non-petroleum fuels
(refinery H2, F-T diesel)
Strong technology providers, alliances &
guarantees (ConocoPhillips, GE Energy, Shell
Global Solutions)
Federal & state financial incentives
www.gasification.org
Energy Price Gasification Drivers
Index of U.S. Energy Prices
450
400
Nat Gas
Coal
350
WTI
300
250
200
150
100
50
Source: Eastman Chemical
0
Q1/98 Q3/98 Q1/99 Q3/99 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05
www.gasification.org
Criteria Pollutant Comparisons
IGCC
Pollutant Bituminous
Subcritical PC
Bituminous
Subcritical PC
Subbituminous
NOx
0.049
0.06
0.06
SO2
0.043 (99%
removal)
0.086 (98% removal)
0.065 (87% removal)
PM/PM10
0.007
0.012
0.012
VOC
0.0017
0.0024
0.0027
0.03
0.10
0.10
CO
All emissions in lb/MMBtu. IGCC NOx based on 15 ppmvd/15% O2 and with no SCR. An
SO2 removal of 87% reflects a very low coal sulfur content (0.22%).
Source: S. Khan, U.S. EPA
www.gasification.org
Water Use and Solid Waste Comparisons
PC Plant
IGCC Plant
% less for
IGCC
1,090
430
60
480
280
42
Solid waste, lignite,
tpd
2,080
1,600
23
Plant makeup water,
gpm
9,340
6,030
35
Wastewater
discharge, gpm
2,910
1,960
33
Parameter*
Solid waste,
bituminous coal, tpd
Solid waste,
subbituminous.
coal, tpd
Note: gasification slag included in solid waste; only recovered sulfur considered non waste.
Source: S. Khan, U.S. EPA
www.gasification.org
Comparative Cost of Hg Removal
Cost per pound of mercury removed
$40,000
$37,800
$30,000
$20,000
$10,000
$3,412
$IGCC
PC
Source: U.S. DOE from industry data
www.gasification.org
The CO2 Capture Advantage
90% CO2 Capture
Source: U.S. DOE
www.gasification.org
CO2 Capture Comparison
Exhaust or
Syngas
Pressure
CO2
Volumetric
Concentration
CO2 Partial
Pressure
Natural Gas
Combined
Cycle Exhaust
14.7 psia
4%
0.6 psia
Supercritical
Coal Boiler
Exhaust
14.7 psia
13%
1.9 psia
IGCC Syngas
825 psia
40%
330 psia
Source: EPRI, Ben Phillips
www.gasification.org
Cost of CO2 Capture and
Sequestration
Parameter
CO2 capture, %
Unit output derating, %
Heat rate increase, %
Capital cost increase, %
COE increase, %
Source: S. Khan, U.S. EPA
IGCC Plant
PC Plant
91
90
14
29
16.5
40
47
73
38
66
www.gasification.org
World Capacity for CO2
Sequestration
Source: Petroleum Technology Research Center, Canada
www.gasification.org
Gasification-Polygen
Insulates manufacturing sector from
natural gas cost & volatility for power
Lower cost alternative feedstocks for
fertilizers, chemicals
Polygeneration has inherent flexibility
Coal to F-T liquids an option to petroleum
based fuels
A new market for coal in the U.S.
www.gasification.org
“Btu Conversion” Technologies
“Coal to gas and coal to liquids are
extremely powerful…The technologies
are real, they are today’s
technologies…Not emerging, not
new…Coal gasification to pipeline gas
at $5-6 per mmBtu, diesel at $35-40 per
barrel…”
Greg Boyce, President & CEO Elect, Peabody Energy, September 2, 2005
www.gasification.org
Value-Add Potential
of Btu Conversion Technologies
to Peabody Coal Reserves
$3,600
Billions of dollars of value of
current Peabody coal
reserves sold as:
$1,800
$700
$288
Coal
Electricity
SNG
F-T Diesel
Source: Peabody Energy
www.gasification.org
Significant Federal Incentives
EPACT -- ~$5.4 billion authorized for cost
sharing, grants, investment tax credits
+Loan Guarantees (scoring?)
~ 33 Projects from EPACT incentives?
+50 cent/gallon tax credit – F-T diesel from
coal
F-T Off take agreements with DoD?
www.gasification.org
Questions?
For further information: http://www.gasification.org
or
Google “gasification”
Mark your calendars
June 28-29 Gasification Workshop for State Officials
Bismarck, ND, Visit to Dakota Gasification Plant
October 1-4
2006 Gasification Technologies Conference
Washington, DC
www.gasification.org