What is To Be Done with Coal Power? Robert H. Williams Head, Carbon Capture Group Carbon Mitigation Initiative (10-year BP/Ford-supported PEI Project) Senior Research.
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What is To Be Done with Coal Power? Robert H. Williams Head, Carbon Capture Group Carbon Mitigation Initiative (10-year BP/Ford-supported PEI Project) Senior Research Scientist Princeton Environmental Institute Princeton University Invited Testimony at the NJ Clean Air Council Public Hearing on Electricity Generation Alternatives for New Jersey’s Future NJ Department of Environmental Protection Trenton, NJ 1 April 2009 Meeting GHG mitigation goals being discussed in Administration/Congress will require one or more of the following courses of action for existing coal power plants: • CO2 capture and storage (CCS) via: – Retrofitting existing plants with “CO2 scrubbers” – Repowering existing plants…but saving the sites • Retiring the plants long before industry would like to do so Main Near-Term CCS Options for Existing Coal Power Plants (e.g., Hudson) • Retrofitting with amine scrubbers (costly, huge energy penalty, high GHG emissions price needed to make the technology cost-effective ) • Repowering options (replacing equipment but saving the site): – IGCC-CCS: least costly stand-alone power option…but still costly – Coproduction of liquid fuels/electricity with CCS • • • • Low CO2 capture cost for synfuels (mostly for CO2 drying, compression) Higher energy efficiencies/lower capital costs than for separate production units Attractive economics for power generation at high oil prices Extremely low pollutant emissions (SOX, NOX, ROX, Hg) at plant and from ultimate burning of synfuels – Coprocessing coal/biomass to make liquid fuels/electricity with CCS biomass status transformed from “C-neutral” to “C-negative” The Green Coal Path to Near-Zero Emissions New Supercritical Plants and CCS Demonstration Essential Advanced Supercritical Combustion Plants Demonstrating Carbon Capture / Storage (CCS) Commercial CTG/CTL with CCS Source: presentation by Frederick D. Palmer (Senior VP - Government Relations, Peabody Energy) at World CTL 2009 (Washington, DC, 26 March 2009) 2007 2010 Commercial IGCC with CCS Retrofitting PC Plants with CCS 2020 2030 Coal industry leaders recognize that CCS via CTL/CTG is commercially ready!! Early CCS Project Already Underway in New Jersey • High electricity prices, stringent environmental regulations, and favorable offshore prospects for CO2 storage make NJ attractive for early CCS projects based on superclean energy via gasification • “PURGeN” project proposed by SCS Energy to Planning Board of City of Linden on 24 March 2009 for 98 acre site (long idle DuPont property): – Would gasify Pennsylvania coal to generate ~ 500 MWe (net) and produce as coproducts H2, NH3, and urea – Would use dry cooling system for the combined cycle power system, as at the Astoria Energy Plant (a natural gas combined cycle) previously built by SCS – Would capture 90% of the carbon in the coal as CO2 and store it in a sandstone formation 1700 m under the seafloor at a distance 100 miles from shore where the water is 800 m deep – Targeted date for plant start-up is 2014 LIQUID FUELS/ELECTRICITY COPRODUCTION FROM COAL + BIOMASS Coal Pressurized Gasification Gas cooling & cleaning Water Gas Shift H2S, CO2 removal F-T Synthesis oxygen Air separation unit air Underground Storage oxygen Biomass Pressurized Gasification CO2 Gas cooling & cleaning Upgrading, Refining F-T FUELS unconverted + recovered gas GTCC Power Island process electricity EXPORT ELECTRICITY air • Syngas streams from coal & biomass gasifiers are combined to make synthetic diesel & gasoline (Fischer-Tropsch liquids or FTL) • Syngas unconverted in single pass through synthesis reactor burned to make electricity in GT/ST combined cycle plant • Coproduction huge energy efficiency/capital cost advantages compared to production of liquid fuels & electricity in separate units • Biomass/coal coprocessing exploit simultaneously: • Negative GHG emissions benefit of photosynthetic CO2 storage • Coal conversion scale economies (& sometimes lower coal prices) Retrofit & Repowering Options for CCS at Hudson Power System Efficiency (%) Outputs Electricity generation relative to Hudson As Isa Barrels % bio CAPEX FTL per (HHV) (106$) MWh Hudson As Is 33.4 660 MWe 1.0 - 0 0 Hudson Retrofitted for CCS 24.5 484 MWe 0.85 - 0 486 Repowering via Coal IGCC with CCS 31.6 624 MWe 1.10 - 0 1557 Repowering via Coal to Liquids/Electricity with CCS - 278 MWe + 9,490 B/D 0.52 1.42 0 1467 Repowering via Coal/Biomassb to Liquids/Electricity with CCS - 312 MWe + 10,300 B/D 0.58 1.38 8.6 1535 a Capacity factors: 73% (Hudson As Is), 85% (other power only); 90% (coproduction) b Plausible bio supply: urban wood wastes in Bergen, Essex, Hudson, & Union Counties Potential Urban Wood Waste Supply for Repowering Hudson Coal Power Plant with Coal/Biomass Co-Production Facility with CCS Dry tonnes per year 350000 Residential demolition 300000 Residential construction Non-residential demolition 250000 Non-residential construction Yard trim 200000 MSW 150000 Residential renovation Union 100000 Hudson Essex 50000 Bergen 0 By supply type By county Source: Private communication from Dr. Marie Walsh (Adjunct Associate Professor of Agricultural Economics, U. of Tennessee, and energy consultant, M&E Biomass). See also Marie Walsh, Estimated US Urban Wood Waste Supply and Distribution—Documentation of Methodology and Data Sources, M&E Biomass ([email protected], 24 June 2008) GHG Emission Rates: Hudson As Is & for Retrofit/Repowering Options GHG Emission Rate, kgCO2eq/MWh 1200 1000 800 Hudson As Is Hudson CCS Retrofit IGCC with CCS Coal to Liquids/Electricity with CCS Coal/Biomass to Liquids/Electricity with CCS 600 400 200 0 Alternative Power Options • For liquids/electricity options, synthetic fuel coproducts are assigned fuel-cyclewide GHG emission rates = rates for crude oil-derived products displaced • For Hudson CCS retrofit and IGCC with CCS, CO2 is captured at a rate equivalent to 90% of the carbon in the coal • For coal and coal/biomass to liquids/electricity with CCS, CO2 is captured at a rate equivalent to 68% of the carbon in the feedstock that is not contained in the liquid fuel products Cost Analysis of Co-Production Systems as Electricity Generators • Value of FTL = economic worth based on refinery-gate prices of crude oil-derived products displaced • Levelized electricity generation cost (LEGC) = [(Levelized energy system cost, $/year) – (Levelized economic worth of FTL, $/year)] /(Levelized electricity generation rate, MWh/year) • For co-production systems the LEGC is a function of the crude oil price. • Assumed feedstock costs: $4.0 per million BTU for both coal and urban wood waste Hudson: Retrofit & Repowering Options for a 20-Year Levelized Crude Oil Price of $75 a Barrel 160 140 # GHG emissions price ($/t) for breakeven with Hudson As Is Generation cost at breakeven relative to Hudson As Is generation cost @ $0/t CO2eq 1 81.6 2.52 2 81.0 2.51 3 72.9 2.36 Generation Cost, $ per MWh 120 100 80 60 Hudson As Is Hudson Retrofit 40 Coal IGCC Coal to Liquids/Electricity @ $75/barrel Coal/Biomass to Liquids/Electricity @ $75/barrel 20 0 10 20 30 40 50 60 70 80 90 100 GHG Emissions Price, $ per tonne of CO 2eq #1: Hudson CCS Retrofit #2: Coal IGCC with CCS #3: Coal/Biomass to Liquids/Electricity with CCS Hudson: Retrofit & Repowering Options for a 20-Year Levelized Crude Oil Price of $100 a Barrel 160 # GHG emissions price ($/t) for breakeven with Hudson As Is Generation cost at breakeven relative to Hudson As Is generation cost @ $0/t CO2eq 80 1 81.6 2.52 60 2 81.0 2.51 3 51.9 1.96 4 31.5 1.59 140 Generation Cost, $ per MWh 120 100 Hudson As Is Hudson Retrofit 40 Coal IGCC Coal to Liquids/Electricity @ $100/barrel Coal/Biomass to Liquids/Electricity @ $100/barrel 20 0 10 20 30 40 50 60 70 80 90 100 GHG Emissions Price, $ per tonne of CO 2eq #1: Hudson CCS Retrofit #2: Coal IGCC with CCS #3: Coal to Liquids/Electricity with CCS #4: Coal/Biomass to Liquids/Electricity with CCS Proposed DoD/DoE CCS Early Action Initiative (CEAI) • Urgency to carry out “megascale” integrated CCS projects • G8 Summit (Japan 2008) – G8 agreement to sponsor 20 projects globally (up & running ~ 2016) – US commitment to sponsor 10 • Do economic crisis/budget deficit concerns jeopardize G8 goal? • CEAI (enabling goal realization at low cost to government) would: – Allow co-production systems to compete with power only systems for subsidies – Require that synfuels be in compliance with Section 526 of Energy Independence and Security Act of 2007: fuel-cycle-wide GHG emission rate for synfuels procured by government < that for crude oil-derived products displaced – Specify that winning projects are those with least costs of GHG emissions avoided (e.g., as determined in reverse auctions) • For winning projects: – Government would pay incremental cost for CCS for 5 years – Air Force would offer 20-year procurement contracts for synthetic jet fuel Requests: • That the NJ Clean Air Council insert into the record of this hearing along with my testimony the following: – R.H. Williams, “Toward Decarbonization of Power as Well as Fuels via Co-Production with CCS & Coal/Biomass Coprocessing,” presentation at World CTL 2009, Washington, DC, 25-27 March 2009 – R.H. Williams, “Proposed CCS Early Action Initiative for the United States,” v. 10, 18 March 2009 • That the NJ Clean Air Council alert interested parties that technical details related to findings presented at this hearing can be found in: Kreutz, Thomas G., Eric D. Larson, Guangjian Liu, and Robert H. Williams, “Fischer-Tropsch Fuels from Coal and Biomass,” Princeton Environmental Institute, August 21, 2008 (revised October 7, 2008). Published in Proc. 25th Annual Pittsburgh Coal Conference, 2008, and available at: http://www.princeton.edu/pei/energy/publications/texts/Kreutz-et-al-PCC-2008- Acknowledgments • For collaboration in the research reported here: – Tom Kreutz (PEI) – Eric Larson (PEI) – Guangjian Liu (PEI and Asst. Professor, Dept. of Power Engineering, North China Power University, Beijing, China) • For many discussions and helpful comments on this research – Robert Socolow (MAE Professor, PU, and Co-Principal Investigator, CMI) – Fred Dryer (MAE Professor, PU, and Principal Investigator, NetJets Project) – Jim Katzer (NRC, who coordinated the PEI group’s interactions with the Alternative Fuels Panel of NRC’s America’s Energy Future study) – Zheng Li (Thermal Engineering Professor and Head of BP Clean Energy Center, Tsinghua University, Beijing, China) – Ken Kern, Tom Tarka, Maria Vargas, and John Wimer (NETL) • For research support: – – – – Princeton University’s Carbon Mitigation Initiative (BP/Ford-supported) NetJets [a corporate jet services provider (a Warren Buffett-owned company)] Hewlett Foundation National Research Council contract