Transcript Slide 1
Future Opportunities for Coal Power Science, Regulations, & Technology Energy Crisis! Comparing U.S. Energy Reserves Abundant Resources Relate to Stable Prices 6,000 5,000 4,000 3,000 2,000 1,000 0 US Coal Reserves US Gas Reserves (in quadrillion BTU’s) Source: EIA, 2000 US Oil Reserves Delivered Fuel Cost – U.S. Coal’s Stable Pricing Makes it Ideal for Generation 10.00 Delivered Fuel Cost For Generation 9.00 8.00 Delivered $ / MM Btu Natural Gas 7.00 6.00 5.00 Oil 4.00 3.00 2.00 Coal 1.00 Source: EIA Electric Power Monthly, February 2003 Mar 03 Dec 02 Sep 02 Jun 02 Mar 02 Dec 01 Sep 01 Jun 01 Mar 01 Dec 00 Sep 00 Jun 00 Mar 00 Dec 99 Sep 99 Jun 99 Mar 99 Dec 98 0.00 Louisiana Costs - 2003 Fuel Cost Coal • Natural Gas • Oil • $1.34 mmbtu $5.50 mmbtu $5.84 mmbtu Average electric cost in the state is $0.069/kwh – 6% below the national average. Louisiana Electric Generation Mix Natural Gas Coal-based Nuclear Renewable Oil 45% 26% 18% 4% 3% Environmental Progress Increasingly Clean Power 5 4 4.37 SO2 NOx PM 10 3 2 1 1.01 0.85 1.07 0.43 0.38 0 1970 Source: U.S. Environmental Protection Agency and Department of Energy, 2002 2001 2010 0.47 0.02 0.02 2003 Average State Coal Fired SO2 Emission Rates 2003 Average US Coal Rate- 0.99#SO2/MMBtu MD PA OH NH NY DE GA NC NJ IN VA WV TN KY AL SC MA MI ND WI LA IL FL TX MS IA MO SD KS OK NE NV OR MN AR CO WY NM AZ CT MT UT WA 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 Source: EPA 2003 CEMS Data 2003 Average State Coal Fired NOx Emission Rates 0.90 0.80 0.70 0.60 2003 Average US Coal Rate 0.37#NOx/MMBtu 0.50 0.40 0.30 0.20 0.00 SD NJ OH NM TN FL WV MD ND MN KS OR NE NV IN SC KY IA MT NC VA MO MS AL UT AZ WY OK CO WI LA PA DE MA WA MI NY AR IL GA NH TX CT 0.10 Source: EPA 2003 CEMS Data Regional Transport Rule 1-hr Serious Area Attainment Date OTC NOx Trading 99 Designate areas for 8-hr Ozone NAAQs NOx SIPs Due 00 Section 126 NOx Controls 01 02 03 1-hr Severe Marginal 8-hr Area Attain8-hr Ozone ment Date Ozone AttainNAAQS ment NOx Attain- DemonSIP ment stration Call Date SIPs due Reduc tions 04 05 06 07 Proposed Utility MACT Phase II Acid Rain Compliance Mercury Determination Designated Areas for Fine PM NAAQS Haze Sec. 309 SIPS due Clean Air Interstate Rule to Address SO/NOx Emissions for Fine PM NAAQS and Regional Haze Final Utility Mercury Rule 08 Assess Effectiveness of Regional Moderate 8-hr Ozone Ozone Strategies Possible NAAQS Regional NOx Attainment Reductions? Date (SIP call II) Serious 8-hr Ozone NAAQS Attainment Date 09 10 11 12 Compliance with Utility MACT Latest Attainment New Fine PM date for NAAQS Fine PM Implementation NAAQS Plans Regional Haze SIPs due 13 14 Compliance for BART Sources Additional Hg regulation under 112(d) and (f) 15 16 17 Compliance for BART sources under the Trading Program Second Regional Haze SIPs due 18 Proposed Federal Clean Air Interstate Rule Further Reductions Required by Texas by 2015: SO2 – 70% reduction NOx – 65% reduction Clean Air Interstate Rule NOx • • 68,498 tons 2003 39,444 tons 2015 SO2 • • 119,930 tons 2003 41,976 tons 2015 Proposed Utility Mercury Reduction Rule MACT - Up to 90% reduction by 2008 • Facility specific control Cap & Trade - 70% reduction by 2018 • Market-based approach • Reduce from current 48 tons to 15 tons • Estimated to save consumers $8 Billion - 2020 Foreign Contribution Fact: Wildfires, prescribed burns, and crop burning alone emit some 800 tons of mercury each year globally – National Center for Atmospheric Research Fact: 50% of the mercury found in the U.S. is from foreign sources – U.S. EPA Fact: The world’s oceans contains millions of tons of mercury which impacts the mercury in the atmosphere – National Center for Atmospheric Research Sources of Mercury Emissions of mercury from U.S. coal-fired power plants are small compared to global emissions sources Only 1% of total world emissions comes from U.S. power plants 42% non-U.S. man-made sources 2% U.S. manmade, non power plant sources 16% natural sources (biomass burning) 39% natural sources (oceans and volcanoes) Global Mercury Deposition in the U.S. Percent of mercury deposition that originates outside of the U.S. Source: EPRI Mercury Facts – local deposition “Given the current scientific understanding of the environmental fate and transport of this element, it is not possible to quantify how much of the methylmercury in fish consumed by the U.S. population is contributed by U.S. emissions relative to other sources of Hg (such as natural sources and reemissions from the global pool).” – EPA proposed rule Local Deposition Facts: Only 4 – 7% of mercury is deposited locally, according to research by the Brookhaven National Laboratory “Only a small percentage of the mercury would be deposited nearby as particles fall to earth, while the vast majority drifts to greater distances in the atmosphere.” Hans Friedli, National Center for Atmospheric Research Louisiana’s Mercury Emissions Fact: Coal-based power plants in Louisiana emit less than half a ton of mercury – U.S. EPA Fact: This equates to less than 0.01 of 1% of the total global mercury emissions – U.S. EPA Fact: Louisiana coal-fueled power plants emit 265 lbs. of oxidized mercury, with the remaining 740 lbs. in an elemental form – U.S. EPA Health Concerns Fact: The national Health and Nutrition Survey, which measured actual mercury levels in women and children did not find anyone approaching the lowest level that would have been associated with any measurable health effect due to mercury – U.S. Center for Disease Control “ People consume far higher levels of PCBs and other persistent environmental chemicals in other foods, including beef, poultry, and dairy products.” National Academy of Science Benefits of Fish The American Heart Association predicts about 250,000 people die from sudden heart attacks each year. If 40 percent of these people ate more fish, which contains the beneficial omega fatty acids, 100,000 people would increase their odds of avoiding sudden death. Scaring the public away from eating fish can in itself be a health concern. Capturing Mercury is Difficult Hypothetical Example • Houston Astrodome filled with 30 billion ping-pong balls • 30 green “mercury” balls • Find and remove 27 green balls for 90% Hg capture EPA has said “So, is technology capable of getting a 90-percent reduction of mercury from coal-fired power plants in the near future?” EPA’s answer is NO! Houston Astrodome Cost to Control Fact: The estimated cost of removing mercury from a power plant is $70,000 per pound – U.S. EPA Fact: A Tennessee Valley Authority study compared the cost of removing mercury versus other emissions: • • • Sulfur Dioxide $200 a ton Nitrogen Oxide $2,000 a ton Mercury $200,000,000 a ton FutureGen – Energy Renaissance One billion dollar, 10-year demonstration project to create world’s first coal-based, zero-emission electricity and hydrogen plant President Bush, February 27, 2003 IGCC Technology in Early Commercialization U.S. Plants in CCT Program Wabash River • 1996 Powerplant of Year Award* • Achieved 95% availability Tampa Electric • 1997 Powerplant of Year Award • First-dispatch power generator Nation’s First CommercialScale IGCC Plants, Each Achieving > 95% Sulfur Removal > 90% NOx Reductions *Power Magazine FutureGen Project Concept Sequestration: A Key Objective FutureGen will: Test new technologies to capture CO2 at power plant Inject CO2 into geologic formations Measure and monitor to verify permanence of storage Enhanced Oil Recovery And/Or CO2 Pipeline Geologic Sequestration Example: Weyburn CO2 EOR Project Approximately 650 production and water injection wells on a 70-square mile oil field operated by EnCana Resources. A 20-year enhanced oil recovery (EOR) project begun in 2000 using CO2 from a 200-mile CO2 pipeline from Dakota Gasification Plant — $20.5 million cooperative agreement with Canadian Federal and Saskatchewan Provincial Governments. Provides for 130 million barrels of oil and storage of about 20 million metric tons of CO2 over 20-year lifetime. U.S. (DOE), EU, Japan, Alberta Government, private companies (e.g., BP, Chevron-Texaco, etc.) have joined, providing another $20 million. IEA CO2 Monitoring and Storage Project coordinated by 20 research organizations in the U.S., UK, Canada, France, and Italy. FutureGen . . . Produce electricity and hydrogen from coal using advanced technology Emit virtually no air pollutants Capture and permanently sequester CO2 Addresses three Presidential initiatives: − Hydrogen − Clear Skies − Climate Change The Future is Bright Randy Eminger Vice President – South Region Center for Energy and Economic Development (806) 359-5520 [email protected]