Transcript www.publicpower.org

CO2 Sequestration for Power
Plants: Facing Sober Realities
of Cost, Location, Liability and
Permitting
By:
Theresa Pugh
Director, Environmental Services
American Public Power Association
Presented to:
Platts’ Carbon Capture & Sequestration Conference
Houston, Texas
June 26, 2008
What is APPA?
• 2,000 Municipal, State Utilities Which Are
Community Owned
• Of 1,400 Utility Members; 1,011 are Water
Utility Owner/Operator
• Payment In Lieu Of Taxes Returned To General
City Revenue For Fire, Police, Library, Schools
• Money Must Be Spent Wisely: Low Risk
Tolerance For Failure
• Results Must Satisfy Mayors, City Council And
Utility General Managers
• Electric Rates Must Be Just and Reasonable
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Why New Generation and CCS Matters to
APPA:
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Population increase predicted 2010-2030
Need to keep up with generation needs to serve our
population and communities
Energy efficiency is an excellent start but won’t get us
there given population and increasing needs
What to keep in context:
• Total current CO2 injected at EOR sites = only 13 (coal) power
plants of 500 MW each
• EIA projects utility sector to emit 3 trillion tons/year
•
Current UIC Chemical Injection Program = 34 million
liters or 40 million metric tons or about 1/500th of a
percent of the CO2 that some expect to be injected
from future power plants
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New Generation is Driven by Population
Data Source: U.S. Census Bureau, Population Division, Interim State Population Projections, 2005
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APPA: Perspective on
CO2 Control
• APPA Supports Voluntary CO2-Mitigating Steps
• Signatory on the President’s Climate Vision
Memorandum of Understanding to Reduce
– GHG emissions intensity by 18% by 2018
– Power sector GHG by 3-5% below ’02-’03 baseline
• APPA Tree PowerTM Program for aforestation
– Provide shade, improve photosynthesis, reduce CO2
– Golden Tree Award: one tree per customer served
• APPA supports demonstration projects on CCS
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Source: United States Geological Survey. Estimated Use of Water in the United States in 2000.
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Source: United States Geological Survey. Estimated Use of Water in the United States in 1995
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Water Demand with and without CCS: Water Use Increases 33-100%
Source: Cost and Performance Baseline for Fossil Energy Plants (DOE/NETL-2007/1281)
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Aquifers of the United States
Source: USGS, National Atlas of the United States
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Convergence of Issues on Geologic Sequestration
and Public Power Utilities
Municipal /
Public Power
• Just and Reasonable Cost of Electricity
• Reliability
• Located at or near the Local Government
13
Convergence of Issues on Geologic Sequestration
and Public Power Utilities
Municipal /
Public Power
Proximity to
Infrastructure
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Proximity to Infrastructure
Proximity to
Infrastructure
• Transmission Lines
• Rail Lines for Delivery
• Access to Water
Resource for Generation
• Must Meet Load Growth
• Need Access to CO2
Pipeline
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Convergence of Issues on Geologic Sequestration
and Public Power Utilities
Municipal /
Public Power
Proximity to
Infrastructure
Financial
Issues
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Financial Issues
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Financial
Issues
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CCS Increases Cost of Generation &
Cost to Consumer
CCS Preparation for Permitting will be
more Expensive
Financial Performance Bonds or
Surety (is this Private Insurance,
Bonds, or Other Method)
CO2 Disposal Fees Under State UIC
Programs
Title V Operating Permit Fees
Compensation to Oil/Gas/Private
Water for Contamination or Damage to
Hydrocarbon Recovery or Future
Water Use
Additional Electricity use for Water
Utility:
– Additional Water use
– Pump and Treat if Groundwater is
contaminated by salinity, arsenic, etc.
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Financial
Issues
Other Costs – Some
Impossible to Calculate
• Cost to separate CO2 at new CCS power plants
• Cost to transport CO2 offsite to other states
• How much does it cost to pay for retrofit of
natural gas pipeline system for CO2 with booster
compressors? Who pays?
• What is the environmental liability or remediation
cost to a power plant that might trigger liability
under CERCLA, RCRA, ESA, NRDA, and
SDWA?
– pH changes? Water quality issues?
– Impacts to future water use—western water law?
– Plant losses or endangered plant species
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Financial
Issues
New
Commercial/Business
Risks and Costs to Power
Plants
• Is the power industry prepared to compensate
oil and gas companies for lost hydrocarbon
value for future EOR? What can this cost at
$100 bbl? $8 Mcf? And what are those costs in
30 – 50 years?
• What constitutes “performance bond” for utility
sector for non-EOR sites? Required by SDWA
• How much is post closure monitoring? How
long?
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Financial
Issues
New Coal Generation + CCS =
Parasitic Load
• Do you really know the cost?
• Existing coal plants emit
approximately 27% of U.S.
GHGs (EPA 2007)
• For new plants, cost estimates
on CCS do not consider
increased consumption of coal
for gasification or combustion
to compensate for parasitic
CO
energy for CCS
- 12% drop in efficiency from
33% to 21% on top of IGCC
parasitic loss
• This means power for
compression and fans,
pumps, capture system to
cooling water
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Additional Power Needs for CCS
Other, 3%
Fans & pumps, 7%
Cooling system
F&P, 13%
2
compression,
53%
Amine system Aux,
24%
Convergence of Issues on Geologic Sequestration
and Public Power Utilities
Municipal /
Public Power
Proximity to
Infrastructure
Financial
Issues
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Municipal or
Private Water
Utilities
Municipal or Private Water Utilities
Municipal or
Private Water
Utilities
• Electricity Customers of
Public Power Utility
• Cost of Monitoring near
Water Resources
• Anticipated Long-Term
Drinking Water use 50100 years from now
• CCS parasitic energy
means Utility uses Twice
the Water for Generation
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Convergence of Issues on Geologic Sequestration
and Public Power Utilities
Municipal /
Public Power
Proximity to
Infrastructure
Personnel
Shortfall
Financial
Issues
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Municipal or
Private Water
Utilities
Personnel Shortfall
Personnel
Shortfall
• Drilling Expertise
Needed in Contractors
• Well Monitoring
Experience Needed in
Contractors
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Convergence of Issues on Geologic Sequestration
and Public Power Utilities
Municipal /
Public Power
Proximity to
Infrastructure
Personnel
Shortfall
Financial
Issues
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Municipal or
Private Water
Utilities
State Permit /
Regulatory
Issues
State Permit / Regulatory Issues
State Permit /
Regulatory
Issues
• Most States Don’t Update
Geologic / Hydrologic Data
• Most States have no UIC
Permitting Staff for this Scale
of Permitting
• Some States will need to get
State primacy
• Most States have not
Surveyed for Abandoned
Wells, Faults, etc.
• All States have not
Forecasted Expected
Groundwater use over 50100 Years
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Location! Location! Location!
Is not the same as
Geology! Geology! Geology!
• Load and population drives location decisions for new
power plants
- Access to water for cooling water
- Access to rail lines for coal
- Access to transmission lines
Land Use
• NETL’s 2006 report suggests 1 acre of surface land for
each 100 MW of generating capacity
• NETL projects capture and compression to require 60
acres for 500 MW or 12 times the first estimate
• The subsurface land use may not be available due to
state laws or lack of law on right of way on subsurfaces
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For Engineers and the Left-Brained…
Comparison of CCS Volumes to Current UIC Volumes:
Injected Material
Mass of Material
(mil. Metric
tons/year)
2,400[1]
CO2 emissions from power plants
CO2 in Class II wells for oil recovery
43[2]
Class I hazardous waste
22[3]
Regional Carbon Sequestration Partnerships,
total
[1]
[2]
[3]
2
Electric Power Research Institute, Electricity Technologies in a Carbon-Constrained World.
Source: Advanced Resourced International, 2007,
U.S. EPA Office of Solid Waste and Emergency Response, National Biennial RCRA Hazardous Waste Report: Based on 2005 Data, Dec. 2006, at 2-5, Exhibit 2-5.
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…and for the rest of the sane world!
Comparison of CCS Volumes to Current UIC Volumes:
2500
2400
2000
1500
1000
500
22
43
Class I
Class II (EOR)
2
0
Power Plants
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Regional Partnerships
Total CO2 from Power Plants
Projections from EIA:
2,400 Million Metric Tons in 2006
3,044 Million Metric Tons in 2030
(1.1% growth rate per year)
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Seismic Risk
Seismic Risk and “geologic time” restrictions in UIC Class I
derived from RCRA Guidance (EPA)
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Subsurface space required for only 40% of
the Carbon Dioxide from a 300 MW power
plant for one year:
2,750 Acres
Source: J. Gledhill, Policy Navigation for APPA
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Subsurface space required to sequester
40% of the Carbon Dioxide from approx. 9
500 MW Plants over their 40-year lifetime:
2,580 square miles
Roughly 1.5 times the
size of Rhode Island
Roughly half the size
of Connecticut
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Retrofit of Power Plants:
What to do with Existing Fleet?
• Existing coal and gas fleet have no commercial available
and demonstrated technology
• A retrofit unit with a pre-retrofit energy conversion
efficiency of 33%, means a post-CCS retrofit efficiency
of 21%, a loss of >30% of output of power plant
• Replacement of parasitic power in utility sector means
installation of over 100 GW of additional new capacity
• Replacement power and capture/compression systems
mean huge energy capacity shortages
• Are we building additional capacity with coal to run
CCS?
• Space-surface and subsurface
• Right of Way and subsurface ownership issues
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Convergence of Issues on Geologic Sequestration
and Public Power Utilities
Municipal /
Public Power
Proximity to
Infrastructure
Personnel
Shortfall
Financial
Issues
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Municipal or
Private Water
Utilities
State Permit /
Regulatory
Issues
Law of Unintended Consequences
• CCS and IGCC will cause power plants to
use/gasify more coal than PC plants
• CO2 capture system (amine) requires
twice the water as PC plant
• APPA asks: Does the public understand
the consequences of using more coal and
more water to produce electricity?
• Is more water use realistic in all states?
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Conclusions: OK, Let’s Assume Carbon
Separation Technology Works and is Cheap
• How much does electricity cost the consumer
with carbon separation + CCS? 2x? More?
• What will costs of carbon dioxide control costs
(CCS) do to dispatch costs to the entire utility
sector?
• What do these costs do to costs in fully
de-regulated markets? RTO markets?
• APPA asks: Do our customers really understand
these increases? Do we?
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Conclusions, Continued
• APPA supports Future Gen and DOE Regional Partnership
Projects along with private research
• APPA urges more research on geo-engineering in addition to
CCS – don’t put all eggs in CCS basket
• Slow down the selection of CCS technology – we need to know
more
• Consumer deserves to understand costs to monthly electric bills
• Cities and consumers need to understand higher risk profile to
electric utility sector
• Power plant locations are dictated by load (population),
transmission lines, and rail – not geology
• Will Americans accept power plants that use up to 40% more
coal to support CCS?
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Contacts
Theresa Pugh
Director, Environmental Services
American Public Power Association
(APPA)
1875 Connecticut Ave, NW Ste 1200
Washington, DC 20009
(202) 467-2943
[email protected]
Engineering Questions: JP Blackford
(202) 467-2956
http://www.appanet.org/files/HTM/ccs.html
• Horinko legal liability overview
• Carter technology review paper
• Carter paper on parasitic energy impacts
• UIC drinking water issues, power plants and CCS issues
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