Nesto3

S O L U T I O N S F O R T H E 2 1 S T C E N T U R Y

1

2 . . . . . . . . . . . . . . Executive Summary

5 . . . . . . . . . . . . . . The WPFF Zero Emissions Technology Initiative

6 . . . . . . . . . . . . . . Need for Zero Emissions Technologies

11 . . . . . . . . . . . . . Implementation

16 . . . . . . . . . . . . . Schedule

16 . . . . . . . . . . . . . Annex A: IEA Working Party on Fossil Fuels

20 . . . . . . . . . . . . . Annex B: Relation to Implementing Agreements and Advisory Groups

24 . . . . . . . . . . . . . Annex C: Details of Working Party on Fossil Fuels Implementing Agreements

28 . . . . . . . . . . . . . Annex D: Mandate of the CERT Advisory Group on Oil and Gas Technology

33 . . . . . . . . . . . . . Annex E: Mandate of the CERT Ad-Hoc Group of Experts on Electric Power Technologies

34 . . . . . . . . . . . . . Annex F: Delegates to the International Energy Agency, Working Party on Fossil Fuels

IEA Working Party on Fossil FuelsThe International Energy Agency (IEA), founded in1974, is the energy forum for 26 industrializedcountries, all members of the Organization forEconomic Co-operation and Development (OECD).The IEA has multiple objectives with a strongemphasis on energy security issues. Two objectivesare particularly relevant to this initiative, namely,that IEA plays a leading role in the internationaleffort to combat climate destabilization and stimu-lates the development and deployment of newenergy technologies.

The Working Party on Fossil Fuels (WPFF) advisesthe IEA through the Committee on Energy Researchand Technology (CERT) on technology issues, trends,and R&D programs regarding fossil fuels and elec-tricity system issues. The WPFF is responsible forseveral Implementing Agreements. In addition, expertadvisory groups coordinated by the WPFF advise onelectric power technologies and on oil and gas tech-nologies. At the request of the CERT, the WPFF alsodevotes resources to encourage technology transferto non-IEA countries such as China and India,where fossil fuel use is expected to grow rapidly andthe potential to reduce the environmental impactsis largest. Numerous WPFF activities are underwayin three broad categories of activities: collaboration(among IEA Members), co-operation (with non-Member countries), and technology deployment.Each involves a communications component.

Need for Zero Emissions TechnologiesThe world faces a major challenge in reconcilingneeds for economic development, energy securityand the environment in the 21st century. The ten-sion among these needs is heightened by growingworld energy consumption and the resulting expan-sion of fossil fuels use. The IEA World Energy Outlook2000 projects world primary energy consumption toincrease by 57 percent between 1997 and 2020. Thelargest share of this increase will be met by fossilfuels. The IEA World Energy Outlook-2001 Insightsnotes the great abundance of fossil fuels and thereliance of the world on them. Nonetheless, it statesthat, beyond 2020, new technologies are needed tohold out the prospect of plentiful, clean energysupplies in a carbon constrained world. The IEAWorld Energy Outlook-2001 Insights also highlightsthe security implications of growing internationaltrade in energy. Zero Emissions Technologies for fos-sil fuel are vital to simultaneously:

Provide affordable, clean power to meet expandingenergy demand;

Solve critical environmental problems (reducecarbon dioxide and other pollutant emissions);

Address energy security issues by supporting theuse of diverse fossil fuels; and

Ease the economic costs of sustainable development.


2

Executive SummaryThis document describes a framework of planned activities for theInternational Energy Agency (IEA) Working Party on Fossil Fuels (WPFF)to promote the development and use of Zero Emissions Technologiesfor fossil fuels over the period 20022004. This framework builds onthe existing structure of WPFF activities, including various advisorygroups and collaborative energy technology projects, to focus activi-ties for this new objective.

Zero Emissions TechnologiesThe Zero Emissions concept is drawing increasinginterest from around the world. This concept envis-ages input streams to an industrial complex beingused in the final products or converted into value-added inputs for other industries or processes.Ideally, the integrated whole produces no wastes.

The Zero Emissions concept can be applied to eachof the fossil energy industries. This concept applies,for example, when carbon dioxide from energy con-version processes is used for enhanced recovery ofoil and gas. It also applies to power generation fromany fossil fuel by using new energy conversioncycles that are closed loop for pollutants rather thanthe open loop cycles used in traditional combus-tion-based systems. The Zero Emissions conceptcovers all potential pollutants. While carbon diox-ide is recognized as the principal pollutant relatedto global warming, mitigation strategies must alsodeal with emissions of sulfur oxides, nitrogenoxides, other greenhouse gases, particulates and ash.

Zero Emission Technologies for fossil fuels are invarious stages of development. Developmentrequires further progress on components, innovativesystem integration, and commercial application.Sustained and collaborative effort will be required.

ObjectivesThe overall objective of this initiative is to facilitatethe development and deployment of zero emissionstechnologies for fossil fuels. Several conditions mustbe met for the successful global deployment of ZeroEmissions Technologies; namely, technology devel-opment and demonstration must bring the tech-nologies to commercial status at an economicalcost, an adequate policy framework of incentives toreduce emissions must be in place, and the publicmust understand and accept of the technology. Thisobjective will be achieved by activities in four broadcategories that enable these conditions to be met:

Communications: Inform key decision-makers andthe public throughout the world about the potentialand importance of Zero Emissions Technologies forfossil fuels.

Collaboration and Deployment: Forge and implementWPFF member commitments to collaboration todevelop and deploy Zero Emissions technologies forfossil fuels.

Cooperation: Facilitate cooperation with non-Member countries to help them improve the effi-ciency and environmental performance of fossil fuelfacilities.

Energy Safety and Security: Explore how to enhancethe safety and security of fossil energy systems anddetermine the technical implications and researchand development needs and solutions.

ImplementationThis initiative involves the following activities tosupport each of these goals:

Communications: Inform constituencies of the zeroemissions opportunity. The potential for ZeroEmissions Technologies for fossil fuels is as yet vir-tually unknown outside a small group of technicalspecialists. Yet, implementation will require abroad understanding and long-term commitmentto development and deployment by numerousconstituencies in many countries. These includepublic sector decision-makers involved withenergy and the environment, the energy indus-tries and the public. Each will be provided infor-mation about zero emissions opportunities for fos-sil fuels.

Collaboration and Deployment: Develop and deployZero Emissions Technologies. The WPFF will workto obtain commitments from WPFF members andothers to participate by conducting unmet RD&D.Both non-IEA countries and the private sectormay participate. Deployment activities will beconducted in the future as the technologiesapproach commercial readiness.

Cooperation: Facilitate major improvements inexisting power plants. The existing base of fossilfuel power plants worldwide is huge and will beutilized far into the twenty first century. Some ofthis generating capacity, particularly in develop-ing and transitional countries, is quite poor inefficiency and emissions. Options to repower andrehabilitate low-performing plants along zeroemissions principles will be created. Activities willinclude:

1. Cooperation with China and other developingcountries, and;

2. A conference on Zero Emission Technologies forthe Asia/Pacific region.

The World Bank is also considering use of its resourcessuch as the Global Environmental Facility (GEF) forZero Emissions Technology projects and this willrequire further cooperation external to the IEA.


3

Energy Safety and Security: Enhance the safetyand security of fossil fuel supplies, technologiesand networks. The WPFF will hold a roundtableon energy network security and protecting energyinfrastructure in the fossil fuel industries and, basedon the findings of this roundtable consider collab-orative activities to enhance safety and security.

The Zero Emissions Technology initiative cross cutsthe activities of several of the advisory groups andImplementation Agreements for which the WPFF isresponsible. Effective implementation will require acoordinated approach to ensure effective use ofexisting resources and avoid duplication of effort.Discussions are taking place with each ImplementingAgreement and advisory group about the nature ofthis cooperation.

New Implementing Agreements for Zero EmissionsTechnologies may also be needed because the scopeof this initiative may go beyond that of existingImplementing Agreements. This issue will beassessed by the WPFF and a recommendation willbe made to the CERT.


4

This document describes a framework ofplanned activities for the InternationalEnergy Agency (IEA) Working Party onFossil Fuels (WPFF) to promote the develop-ment and use of Zero Emissions Technologies overthe period 20022004. The WPFF held a meeting inNew Orleans, Louisiana, USA in October 2001 inconjunction with its Conference of Zero EmissionsTechnologies for Power Generation. At this meetingand conference, it was decided that, given the greatneed and high potential for Zero EmissionsTechnologies, the WPFF should embark on an initia-tive to promote these technologies. The conferencedrew a number of conclusions:

Bringing zero emissions power generation technolo-gies into commercial use is a critical task for the21st century. Speaker after speaker described boththe continuing worldwide need for fossil fuels forpower and how, even with incremental improve-ments, CO2 emissions will expand dramatically.These trends will take place for every fossil fuel,including coal, oil and natural gas. New fossilenergy technologies involving out-of-the-boxthinking are needed for the coming century.

Simultaneously, energy safety and security is takingon new and expanded importance, especially afterSeptember 11. Increased reliance on local resources,diversification of supply, the safety and security ofsupply, and the protection of the energy infrastruc-ture are all required.

Zero emissions technologies for fossil fuels are feasi-ble and may be developed and deployed over the nexttwo decades. Developing such technologies willtake a considerable RD&D effort. Several speakersnoted that it would be a marathon, not a sprint.Speakers also emphasized that RD&D should to getstarted soon.

Several competing approaches are available. Animportant consideration is how can the WPFF bothstimulate new out-of-the-box ideas and assurethat they all get a fair chance of consideration.

There is a tremendous need for collaboration amongIEA members related to zero emission technologies. Atthe conference, the WPFF heard about the R&D thatwas taking place in many countries. Several criticalquestions were identified:

How can collaboration accelerate the R&D and fillin the gaps?

How can the WPFF best facilitate this collaboration? Who should be involved? What is the role of the private sector?

Communications with public and private decision mak-ers and the general public is critically needed. A widegap exists between what the fossil energy R&D com-munity knows and what senior government decisionmakers and the public might know.

The WPFF decided to develop this initiative, in part,in response to the findings of this conference.


5

The WPFF Zero Emissions Technology Initiative

The world faces a major challenge in recon-ciling conflicting needs for economic devel-opment, energy security and the environ-ment in the 21st century. Growing worldenergy consumption, much of it fossil fuels, height-ens the clash between these needs. Fossil fuels arecritical to meeting economic development andenergy security needs. Yet, the environmental andfinancial challenges are great. Use of fossil fuels,however, can have major local, regional and globalenvironmental impacts. If countries around theworld are to balance the benefits of fossil fuels withtheir environmental consequences, technologiesmust be developed that are zero-emission, fuel-flexi-ble and highly efficient.

Fossil Fuels are AbundantIEAs most recent global energy projections, theWorld Energy Outlook: Assessing Todays Supplies toFuel Tomorrows Growth2001 Insights (WEO 2001Insights) presents a thorough assessment of globalenergy supply in the twenty first century. The fun-damental conclusion was that Proven energyreserves are adequate to meet the demand until2020 and well beyond.1 Yet, it also states that theprincipal uncertainty in global energy supply iscost, as the cheapest reserves are depleted and newsupplies must be transported over longer distances.In most cases, fossil fuels are more affordable,widely available, and flexible than any other type ofenergy source, and their economic advantages arenot likely to change in the first half of this century.

Though estimates vary, world total primary energyconsumption is projected to increase by 57 percentbetween 1997 and 2020.2 As seen in Figure 1, underthe Reference scenario of the WEO2000, fossil fuelswill account for around 90 percent of the world pri-mary energy supply mix by 2020.3 In the developedworld, energy market reform will continue to favorthe use of fossil fuels. Private markets respond tofuel costs when making generation decision, andfossil fuels will remain the low-cost option.

The demand for energy will grow especially quicklyin the developing world. These countries will accountfor 68 percent of the increase in world energy demandbetween 1997 and 2020.4 Developing countries arealready heavily reliant on fossil fuel. China andIndia alone will account for 70 percent of the incre-mental world coal demand from 19972020.5 Across

the developing world, fossil fuels will maintain theirleading position.

Each Fossil Fuel Faces ChallengesProduction and consumption of every form of fossilfuel will increase to meet the needs of the twenty-first century. This growth will pose complex chal-lenges. As noted in the WEO 2001 Insights, Naturalgas consumption, for example, is poised for rapidgrowth in many parts of the world. While theresources are abundant, massive investment will berequired and technology will be crucial to moderat-ing supply costs.6 Similarly, while oil resources arevast, new technologies are needed to reduce thecosts of producing unconventional resources such asoil sands or gas-to-liquids conversion.7 Large invest-ments will also be required for oil and for coal.

Much of this investment in energy developmentwill be required in developing countries. Thesecountries will account for a growing share of globalemissions from all fossil fuels, yet these countriesare least able to afford this investment, especially ifit is to be in cleaner alternatives. The WEO 2001Insights states that:

Financing for the development of energyinfrastructure is a major challenge. Massiveinvestment in the production, transformation,transportation and distribution of energy willbe needed to meet growing demand. Thebulk of this investment will be in developingcountries, but the scale of investment willrequire major capital inflows from developedcountries.8


6

Need for Zero Emissions Technologies

1997 2010 2020

16000

14000

12000

10000

8000

6000

4000

2000

0

Mto

e

Figure 1World Total Primary Energy Supply 19972020

Source: IEA, World Energy Outlook: 2000, Reference Scenario, p. 354.

RenewablesNuclearNatural GasOilCoal

The challenge is not only to raise the capital tomake these investments, but to ensure that theycost-effectively also meet energy security and envi-ronmental concerns.

Power Generation with Fossil Fuels Will Grow A growing share of world energy consumption willbe from power generation. In 1971, electricityaccounted for 10 percent of world total final energyconsumption. By 2020, its share will double to 20percent. Fossil fuels will account for the largestshare of power generation, with coal the worldslargest single source of energy for powergeneration.9 As shown in Table 1, fossil-fueledcapacity will account for 86 percent of new capacityadded by 2020 and 74 percent of world power gen-eration additions.

Expanded access to electricity is critical to promotea higher standard of living and economic growth.Affordable and available fossil fuels are necessary toaddress this need. Roughly, two billion peopleacross the world do not have access to electricity.10

The economic and human costs of this lack ofaccess are high. As shown in Table 1, in the nexttwenty years, fossil fuels will account for 78 percentof new generating capacity in the developing world,and as much as 97 percent in transition economies.

Fossil fuels will be important to narrowing theenergy divide between those with access to afford-able, commercial energy sources and those without.They will also provide 89 percent of new capacityadded in the developed world to meet the energyneeds of increasingly electricity-reliant economies.

Energy Safety and Security ConcernsIn addition to providing access, fossil fuels can helpmany countries address energy security concerns.Energy safety and security has gained new attentiondue to recent events such as the terrorist attacks of11 September 2001. The World Energy Outlook 2001Insights notes that international trade in energy dueto mismatches between the location of demand andproduction, especially in fossil fuels, is increasingsecurity concerns. It states that this situation willincrease mutual dependence, but can also beexpected to intensify concerns about the worldsvulnerability to a price shock induced by a supplydisruption.11

Energy security requires the availability of sufficientquantities of reasonably priced energy in a variety offorms. Often this means the development of domes-tic resources. Fossil fuels, especially coal, are domes-tically available in many countries, and in addition,are easily transportable. Ease of transport is benefi-cial for countries that rely on imports for the major-ity of their energy supply. Fossil fuels are also flexi-ble, which allows for fuel source diversification anda quick response to changes in supply and price. Ascountries seek to provide their citizens with afford-able, reliable energy, fossil fuels will likely remainthe major source for decades to come.

The terrorist attack of 11 September 2001, its causesand consequences, call for an improvement to thelevels of prevention and defense against acts of sabo-tage and terrorism in all countries. This considerationespecially applies to the energy sector, which is vitalto economic and social development and to the qual-ity of life in general. The infrastructures of the fossilfuel industries are spread widely over every countryand may have many potential points of vulnerability.It is important to understand the levels of vulnerabil-ity and safety of the facilities and networked systemsof those industries. This means addressing the ques-tion of vulnerability of the facilities and networkedsystems for production, logistics, and transformationof oil gas, coal and their derivatives (electricity,methanol, hydrogen and other). Improvements tothe facilities and systems that reduce vulnerabilityand enhance recovery may be incorporated into thetechnologies and their operation.


7

Table 1Fossil Power Generation Capacity and Generation by Regionand Fuel, 1997 and 2020.

Capacity (GW) Generation (TWh)

Region 1997 Added by Existing 2020 1997 2020

OECDCoal 595 68 3,328 4,278Oil 177 (59) 513 302Gas 381 577 1,128 3,750Fossil Share 61% 89% 59% 70%

Developing CountriesCoal 325 563 1,692 4,895Oil 193 131 672 1,129Gas 144 452 522 2,588Fossil Share 69% 78% 70% 76%

Transition EconomiesCoal 110 15 317 590Oil 40 (8) 98 68Gas 118 149 508 1,407Fossil Share 68% 97% 64% 80%

WorldCoal 1,030 647 5,337 9,763Oil 410 64 1,282 1,498Gas 643 1,179 2,159 7,745Fossil Share 65% 82% 62% 74%

Source: IEA, World Energy Outlook, 2000, Part D, Reference Case.

Environmental ConcernsOne major implication of reliance on fossil fuels,however, is the environmental consequences oftheir use. Use of fossil fuels may cause a number ofenvironmental impacts, ranging from global climatechange to regional and local impacts on air, landand water. Although the specific issues vary, theseimpacts are concerns throughout the world.

Despite debate over details of the Kyoto Protocol, allIEA members recognize the importance of emissionreductions, and are working to reduce CO2 andother emissions independently and in concert withone another. However, even with environmentalpolicies in place, increasing demand for energy willbe accompanied by an increase in emissions world-wide. As seen in Table 2, global CO2 levels under theReference Scenario will increase across the board by60 percent, or 13,697 Mt, between 1997 and 2020.12

Emissions will be especially influenced by powergeneration, which alone will account for 43 percentof the increase in global CO2 emissions over thenext twenty years.13

In OECD and some other countries, regulations havebeen in place for some years aimed at reducing sul-fur oxides, nitrogen oxides, and particulates and lim-iting the means of ash disposal. There continues tobe a trend toward tighter legislation. It is anticipatedthat, more efficient fossil fuel power plant and large-scale industrial users of fossil fuels will have to belower emitters of these pollutants to improve airquality and reduce damage to ecosystems.

Countries will continue to use fossil fuels to meeteconomic and energy security needs, but will alsoneed to address environmental issues associatedwith coal use. The WEO 2001 Insights, for example,notes that coal will continue to be the largestenergy source for power generation worldwide. Italso notes that coal reserves are vast and widely dis-persed. Yet, it cites the impact of environmentalpolicies as being the primary uncertainty affectingthe future use of coal.14

Zero Emissions TechnologiesZero Emissions concepts are drawing increasinginterest from around the world. These concepts rep-resent a shift of industry away from methods inwhich wastes are the norm, to integrated systems inwhich everything has its use. Zero Emissions con-cepts envisage all input streams to an industrialcomplex being used in the final products or con-verted into value-added inputs for other industries

or processes. In this way, industries may reorganizeinto clusters such that each industrys wastes orby-products match anothers inputs. Ideally, theintegrated whole produces no wastes.15

Benefits from Application to Fossil FuelsDevelopment of Zero Emissions Technologies forfossil fuels may be the most important technologyissue related to fossil fuel use in the twenty-firstcentury. The Zero Emissions concept may potentiallybe applied to a broad range of applications for eachfossil fuel, spanning production, conversion andutilization. The concept has been proposed forapplications involving enhanced oil recovery, powergeneration and even the utilization in transportationapplications. Other applications may also emerge.

Clean, advanced fossil fuel technologies that arezero-emission, fuel flexible and highly efficient arerequired if countries are to resolve conflicting needs.When developed, these technologies would have atransforming impact on world energy use, and arevitally needed to simultaneously:

Provide affordable, clean energy to meet expandingenergy demand;

Solve critical environmental problems (reducecarbon dioxide and other pollutant emissions);

Address energy safety and security issues by sup-porting the use of diverse fossil fuels; and

Ease the economic costs of sustainable development.


8

Table 2Total Carbon Dioxide Emissions (Mt) from Fossil Fuels in 1997, Added by 2020.Region CO2 Emissions 1997 Added by 2020

OECDCoal 3,952 331Oil 5,195 1,221Gas 2,320 1,280

Developing CountriesCoal 4,012 3,656Oil 3,537 3,833Gas 980 1,972

Transition EconomiesCoal 795 336Oil 652 383Gas 1,119 529

WorldCoal 8,758 4,324Oil 9,806 5,592Gas 4,419 3,781

Source: IEA. World Energy Outlook, 2000, Reference Case.

Potential ApplicationsA large potential market exists for zero-emission fos-sil technologies in many sectors of the fossil fuelsindustries. New types of technologies have beenproposed for the both the oil and gas industries andfor the high-efficiency conversion of fossil fuels intoelectricity and other products through processesthat emit virtually no carbon or other pollutantssuch as particulates, sulfur oxides and nitrogenoxides. This goal can be accomplished by using newenergy cycles that are closed for pollutants ratherthan open cycles, such as traditional combustion-based systems.

Oil and Gas ApplicationsFossil fuel production is an important source ofgreenhouse gas (GHG) emissions. A number ofefforts are underway in the fossil fuel productionsector to develop zero emissions technologies technologies that capture, separate and dispose ofCO2 to mitigate the impacts of fossil fuel produc-tion and use.

The oil production industry will increasingly needenhanced oil recovery techniques to counter thedepletion of oil and gas fields. Technology to re-inject carbon dioxide into oil fields to enhancerecovery is already deployed in more than 70 sitesaround the world. Large quantities of carbon diox-ide are potentially available for recovery from fossilenergy processes and this carbon dioxide may beused, under the right conditions in oil fields tocounter declines in production.

The concept of separating and capturing CO2 fromthe flue gas of thermal power plants and oil andnatural gas fields is not new. Stripping CO2 fromnatural gas fields is necessary to meet commercialfuel specifications. Additionally, the injection ofCO2 into depleted oil reservoirs, known asenhanced oil recovery (EOR), improves recoveryrates in oil and gas production.

In the late 1970s and early 1980s a number of com-mercial CO2 capture plants were constructed for EORoperations and recent concern over the environmen-tal impact of fossil fuel emissions has lead to effortsto further develop CO2 capture, separation and dis-posal technologies. One such strategy is to captureexcess CO2 and inject it underground in geologicformations or abandoned oil and gas wells where itwill remain sequestered from the atmosphere for anextended period. Injection can serve both as amethod to dispose of CO2 and facilitate the recoveryof new petroleum resources through EOR.

Fossil Power Generation ApplicationsAnother important application is in power genera-tion. The WEO 2000 Reference Scenario projectsthat 2,294 GW of new generating capacity will beinstalled around the world by 2020, and 1,890 GW,or 86 percent of this will be fossil-fuel.16 More thanhalf of this new capacity will be in the developingworld. As noted by IEA, [t]he choice of technologyfor power-generation equipment in developingcountries is of paramount importance for successfulaction to contain global greenhouse-gas emis-sions.17 An enormous opportunity exists to ensurethat new installations in these countries, as well asin the rest of the world, are zero-emission, fuel flexi-ble and highly efficient technologies. One zeroemissions concept for power generation hasattracted considerable industry interest. This con-cept combines coal gasification, fuel cell technologyand a carbonation/calcination process to form aclosed loop which virtually eliminates all emissionsand leads to effective sequestration of carbon diox-ide.18 Although these technologies are still in devel-opment, when combined with the clean up of exist-ing power plants, they promise to reconcile the con-flicts between meeting growing energy demand,promoting economic development and energy secu-rity, and preserving the environment.

Needs for RD&DProjected world energy development in nextdecades, as described above, is not sustainable inlight of current CO2 emission stabilization objec-tives. Consequently, the emerging gap between sta-bilization requirements and projected emissionsneed to be filled by new Science and Technology(S&T), as shown in Figure 2.


9

10

20

30

0

PgC

/yr

40

50

1990 2010 2030 2050 2070 2090

Current energy S&T can reduce carbon emissions but. . .

IS92a (1990 technology)IS92a550 ppm Ceiling

.. .stabilization requires additional carbon S&T

Source: Battelle Pacific Northwest National Laboratory

Figure 2Climate Stabilization Science and Technology (S&T) Needs and Projected Global CO2 Emissions

The WPFF Zero Emissions Technologies objectivesand activities described in this document respondsto vital energy challenges faced by Member countrygovernments as the twenty-first century dawns.Analyses performed by the staff of IEA ImplementingAgreements that may be involved in this effort andthe results of a planning meeting held with thechairmen of these Implementing Agreements inMarch 2002 conclude that several conditions mustbe met for the successful global deployment of ZeroEmissions Technologies; namely, technology devel-opment and demonstration must bring the tech-nologies to commercial status at an economicalcost, an adequate policy framework of incentives toreduce emissions must be in place, and the publicmust understand and accept of the technology.

Ensuring clean, affordable, and secure supplies offossil energy, the worlds most abundant energysources will require collaborative activity by thesegovernments, cooperation with non-Member coun-tries, and the deployment of new technologies. Thisinitiative will ensure that these activities will takeplace and be effective.

Sustained effort and collaboration among manyresearchers with diverse skills will be required todevelop these technologies. Moreover, each IEAMember country has a different capability to con-tribute, but each currently has a different RD&Dfocus. Currently, considerable R&D continues to bedevoted to improvements in the shorter term toplant efficiency and to reductions in the more con-ventional pollutants such as sulfur oxide and nitro-gen oxides. One of the challenges ahead is to linkand network those doing the R&D on greenhousegas mitigation to the much larger community work-ing on the nearer-term problems. This will havebenefits in developing a more integrated approachto the overarching need to reduce all pollutantemissions and will also tend to increase the numberof workers looking at the long term imperative toproduce viable technology at acceptable cost.

One problem is institutional: too few people yetknow about the potential for Zero EmissionTechnologies for fossil fuels. As a result, support fortheir development needs to be created among arange of interest groups including public sectordecision makers, the general public, various interestgroups (and, in specific environmental groups) andfossil energy and related industries.


Energy efficiency improvements and renewableenergy sources do not constitute an adequateoption to meet the mitigation challenge depictedabove as they do not address the specific challengeof controlling emissions from the expected use offossil fuels. Consequently the RD&D challengeaddressed is uniquely related to the need to advancezero emission technologies for fossil fuels.

Commercial zero emission technologies for fossilfuels are in various stages of development.Development will requires extensive furtherprogress on the components, innovative methodsfor process integration, and commercial deploy-ment. The WEO 2001 Insights, unlike previous edi-tions of the WEO, analyzed the potential future ofenergy supply well beyond 2020. While the majorconclusion of this long term perspective was thatthe long-term supply outlook depends critically ontechnology development and deployment.19 Itnoted two important technologies that could poten-tially play a major role in the twenty first century:hydrogen and carbon sequestration.20 Both arepotentially aspects of a new class of technologies forusing fossil fuels, Zero Emissions Technologies.

The report also concluded that governments play anessential role in encouraging this technologicalprogress.21 Government RD&D expenditures catalyzecritical pre-commercial activities in energy relatedS&T and therefore also constitute a vital element infostering industry investments to develop zero emis-sion technologies. It is important also to address theearly stage of commercial deployment where techni-cal risk is highest and the technology has not yetclimbed the well known learning curve. One majorpolicy challenge in this respect is that the carbon-related S&T investments by Governments representonly a minor fraction of current global public energy-related S&T expenditures, as shown in Figure 3:

Total: Global Energy R&D Investments

Total: Global Carbon S&T Investments

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0

Mto

e

Figure 3Global Distribution of Government Energy S&T Investments (Million Dollars)

Source: Battelle Pacific Northwest National Laboratory.

FusionRenewableNuclear FissionEnergy ConservationFossilOther Energy

BiomassMethane HydratesSoil Carbon SequestrationFuel Cell & Hydrogen SystemsCarbon Capture and Sequestration

10


11

Objectives

The overall objective of this initiative is tofacilitate the development and deploymentof zero emissions technologies for fossilfuels. This objective will be achieved byactivities in several areas:

Communications: Inform key decision-makers andthe public throughout the world about the potentialof Zero Emissions Technologies for fossil fuels.

Collaboration and Deployment: Forge and implementWPFF member commitments to collaboration todevelop and deploy Zero Emissions technologies forfossil fuels.

Cooperation: Facilitate cooperation with non-Member countries to help them move their oftenlower-performing fossil fuel facilities towards zeroemissions.

Energy Safety and Security: Explore how to enhancethe safety and security of fossil energy systems anddetermine the technical implications and researchand development needs and solutions.

The WPFF will implement this initiative with activi-ties to support each of the objectives.

CommunicationsThe potential for Zero Emissions Technologies forfossil fuels is as yet virtually unknown outside asmall group of technical specialists. Yet, their imple-mentation will require a broad understanding andlong term commitment to development and deploy-ment by numerous constituencies in many coun-tries. It is imperative that information about theopportunities presented by Zero EmissionsTechnologies be communicated effectively to theseconstituencies.

Communicating the Opportunity to Mobilize SupportThree broad constituencies are vital to zero emis-sions technologies: public sector decision-makersinvolved with energy and the environment, thepublic, and the energy industries. The initiative willprovide information about zero emissions technolo-gies to each of these constituencies and differentmethods will be required for each.

Public sector decision-makers include high-rankingofficials of governments and multinational organi-zations, from the ministerial level on down. Othersmay be in legislative or regulatory bodies. Theseofficials make or influence decisions to invest publicRD&D funding on energy and the environment.Typically, each relevant government ministry ormultinational organization has its own formal andinformal methods of internal communications.

Member country representatives to the IEA WPFFreport to many of these decision-makers. In othercases, they are colleagues of others in their govern-ments who report to them. These representatives alsohave the best understanding of communicationswithin their governments. The most effective commu-nications method would be to give each WPFF repre-sentative the tools that they can use for internal com-munications within their governments. An examplemight be power point briefing materials, which therepresentative could tailor to his or her own needs.This will be supplemented by including informationon zero emissions technologies in IEA internationalconferences that the decision-makers attend. Ongoingreporting will eventually be needed as to the status ofactivities related to zero emissions technologies.

Information about Zero Emission Technologies alsomust be conveyed to a broad international policyanalysis audience to put this option on the slate ofthose they consider. One important possibility is toconvey information to the Intergovernmental Panelon Climate Change (IPCC) to enable that group toconsider the Zero Emissions Technologies option.

Communications may also be required to publicsector decision-makers in countries other than thosethat are members of the WPFF. Information will beprovided to these decision-makers through activitiesof the WPFF, other IEA organizations as well asbilateral contacts between countries. Appropriateinformational materials will be made available forthis purpose.

The general public in most countries has virtually noknowledge of zero emission technologies, little under-standing of the vital role of fossil fuels and, indeed,often a bias against fossil fuels. Providing useful infor-mation to the public may well be difficult. Communi-cations to the public will involve targeting both themedia and key public key audiences such as academiaand non-governmental environmental groups.

Implementation


12

The energy industry, including equipment manufac-turers, must play a key role in both developing anddeploying these technologies. In most cases, theenergy industry will be the ultimate decision-makerin deciding whether zero emission technologies areused. It is important to involve the energy industryearly to obtain both its involvement and its supportfor technology development and its input to ensuredeployment. Industry support would allow scarcepublic sector RD&D funds to be leveraged andpotentially amplify the messages communicated tothe public.

Communications PlanA communications action plan will be developed foreach of the constituencies. The development of thisplan will involve:

Identification of specific target audiences andtheir information needs;

Selection of communications media and venues; Development of appropriate informational materials;

and Execution of an ongoing communications strategy

targeted to the specific audiences.

For the public sector decision-makers, WPFF dele-gates will be consulted as to how best to communi-cate within their own governments. Internet-basedmaterials and forums, in particular, will be consid-ered in this plan because of their increasingly highavailability and visibility to around the world aswell as their cost effectiveness.

Collaboration: Development and DeploymentSeveral tasks must be carried out to develop a WPFFstrategy for the development and deployment ofZero Emissions Technologies for Power Generation:

Facilitating Collaboration

Technology Status Report. A technology statusreport has been developed. This report identifiesthe current state-of-the-art with respect to ZeroEmissions Technologies. In addition, this reportidentifies ongoing RD&D underway in each coun-try to develop Zero Emissions Technologies.

Gap Analysis. The WPFF identified those RD&Dactivities needed to move from the current stateof the art to meet the visions agreed upon by theMember countries during the March meeting. Italso identified gaps between RD&D needs andactual RD&D. These gaps will be based on a com-parison of RD&D needs with ongoing RD&D.

Creation of a Common Vision. Each Member countryhas its own needs for Zero Emissions Technologiesfor fossil fuels and its own unique capabilities tocontribute to their development and deployment.Since this is such a new concept, the first task is tofacilitate the creation of an adequately commonvision of these technologies to enable each Membercountry to determine its role in collaborativeactivities. In order to create this common vision,the WPFF will conduct discussions of the techni-cal and economic potential for Zero EmissionsTechnologies. These discussions will build on theTechnology Statue Report and evaluate potentialpaths for development of Zero EmissionsTechnologies. These evaluations will cover tech-nologies for coal, oil and gas, including powergeneration and the complete cycle from fuel input(or production in some cases) to sequestration.

Plan for RD&D Collaboration. Using the informa-tion developed in prior analyses, the WPFF willconsult with Member countries to determine theirinterests in participating in specific collaborativeRD&D activities for Zero Emissions Technologiesfor fossil fuels. Based on these results and consul-tations, the WPFF will develop a plan to docu-ment the commitments obtained and to serve asthe basis for further activities. As part of thisprocess, the WPFF will review implementingagreements to determine whether they are ade-quate or may need modification or whether anynew implementing agreements will be needed.(See Annexes B and C.)

Deployment

As zero emissions technologies are developed, stepsmay need to be taken to ensure that any potentialinstitutional barriers can be overcome. None haveyet been specifically assessed, but typically such bar-riers arise as issues relating, for example, to financ-ing, siting, unmet needs for expertise, match tomarket needs, etc. One potential issue, for example,is the London Convention, which protects oceanfloors from dumping and may have implications toocean sequestration of carbon dioxide. At somepoint, actions may need to be taken to:

1. Identify any institutional barriers to developmentand deployment;

2. Identify means of overcoming these barriers, ifneeded; and

3. Support deployment by implementing the bestmeans to overcome the barriers.

The deployment strategy will involve major playersin implementation, including NGOs, the financialinstitutions and the Global Environment Fund. Itwill address financing issues and incentives neededto ensure the deployment of these technologies.

Responsibilities

Participating countries will perform the bulk of theactivity in this initiative. The WPFF will work toobtain commitments from IEA WPFF members andothers to participate by conducting unmet RD&Dand exchanging information. The RD&DCollaboration and Cooperation plan will be a pri-mary mechanism for facilitating this implementa-tion. Both non-IEA countries and the private sectorshould participate. The emphasis will be on promot-ing collaborative opportunities for RD&D which:

Accelerate the development of the zero emissionstechnologies,

Allow alternative paths to zero emissions to beexplored,

Commit each party to that work for which it hasthe greatest capabilities,

Best match the perceived needs of each party, and Enable the effective cross-fertilization of technical

ideas.

The primary role of this WPFF initiative will becoordination and facilitation. This will involve:

Providing venues for discussion of complementarytechnical activities,

Facilitating implementation agreements aimed atachieving specific RD&D goals,

Promoting information sharing using conferences,publications and web sites, and

Providing a means for progress reporting andcoordination.

Implementation of this initiative within the WPFFwill be directed by the Chairman, Barbara McKee,and the two Vice Chairmen of WPFF, Jostein DahlKarlson, Vice Chairman for Fossil Fuel SystemsIntegration, and F.P. Rispens, Vice Chairman forDeployment Measures and Alessandro Ortis,Chairman of CERT Group of Experts on ElectricPower Technologies. The IEA Secretariat will supportthe activities of the WPFF.

Cooperation: Zeroing Improvements in Existing Power Plants The existing base of fossil fuel power plants world-wide is huge. As shown in Table 1, a total of 2,083GW of fossil generation capacity existed worldwide in1997, of which about half was coal-fired and the restfired by oil or gas. This existing base of power plantswill be utilized far into the twenty first century. Thesegenerating units have a wide range of efficiencies andenvironmental performance. Some of this generatingcapacity, particularly in developing and transitionalcountries is quite poor in terms of both efficiency andemissions. These power plants will be a significantsource of carbon and other emissions far into thefuture. The cost of replacing all this capacity would beprohibitive. Yet, these plants could be upgraded con-siderably through repowering or retrofit and couldhave a significant impact on performance. This,together with technology for improving air qualitythrough capture of particulates and the application ofSOx and NOx reduction technologies, is likely to beof greatest interest in economies such as China andIndia. In these countries, cost effective efficiencyimprovements linked to better health of the popula-tion are needed urgently to underpin the drive foreconomic growth. Over time, CO2 and other non-CO2greenhouse gas mitigation technologies should beadopted, particularly if OECD experience follows theusual pattern of reduced technology cost with marketpenetration and product development.

The purpose of this part of the initiative is to createoptions to repower and rehabilitate low-performingplants along zero emissions principles. It will con-centrate on activities where most improvement islikely, especially in developing countries. There aretwo basic activities:

1. Cooperation with China and other developing coun-tries. This effort will focus on those countrieswith an extensive base of low-performing fossilpower plants. It will build on the existing WPFFcooperation activities as described in the nextsection. This will involve:

Identifying high-payoff opportunities; Matching technologies with opportunities; and Facilitating demonstration and implementation.


13

China is a focus because it has such a large baseof existing low-performance coal-fired powerplants. The WPFF currently has two proposedactivities that are soon to be initiated withChina:

A proposed project on Best Practices in ChinesePower Plants; and

A project to accelerate the market deploymentof clean coal technologies in China.

The results will include assessments of measuresto improve power plants in China and activitiesto disseminate this information including ahandbook and workshops. Subject to discussionswith the Chinese government, the identificationof Zero Emissions opportunities can be incorpo-rated into each of these projects.

2. Conference on Zero Emissions Technologies in theAsia/Pacific Region. As the first major event topromote Zero Emissions Technologies in theregion, this conference will be held in 2003. Thisconference will address needs for Zero EmissionsTechnologies in terms of economic development,environmental protection and energy security.The conference will:

Consider regional opportunities for deployment; Assess the current state of the art and RD&D

progress; and Identify potential barriers to implementation

Similar technology transfer conferences and workshopsof a similar nature may later be held in other regions.

The WPFF may also cooperate with internationaldevelopment banks on this initiative. The WorldBank, for example, has discussed having its GlobalEnvironmental Facility (GEF) support cleaner coaltechnologies and the development of a zero emis-sions from coal concept. Other potential areas forcooperation with the World Bank include use of thePrototype Carbon Fund (PCF), technical and policyadvice and the application of clean coal technologyin China

Energy Safety and SecurityThe goal of energy safety and security activitiesunder this initiative is to incorporate energy safetyand security considerations into the developmentand deployment of Zero Emissions Technologies forfossil fuels. The scope covers only the technicalimplications, R&D needs and solutions of energysecurity and safety. In order to achieve this goal, the

WPFF will hold a roundtable on energy security inthe fossil fuel industries and, based on the findingsof this roundtable consider collaborative activitiesto enhance this security.

The roundtable will address several themes focused ondeveloping a framework for international cooperationon security issues in the fossil energy industries:

A. Threats and Targets. On the basis of the mostrecent experiences and future possibilities, sce-narios will be outlined concerning the types ofthreats associated with acts of sabotage terrorism,their development and features and their poten-tial targets in the fossil fuel industries.

B. Vulnerability and Risk. The present and antici-pated levels of vulnerability of targets (facilitiesand networks) will be reviewed, potential riskswill be identified, and possible security goals willbe discussed that may be achieved in the short-medium and long-term.

C. Improvements and Measures. Options to reducevulnerability will be outlined in relation to thethreats and targets. Measures related to technol-ogy choice, design, network organization, redun-dancies, default service and emergency solutionswill be considered.

D. Recovery and Reconstruction. Possible initiativeswill be considered that could facilitate adequateand rapid recovery of plant and services that maybe damaged on the basis of international institu-tional, technical, operational and financial coop-eration.

The themes and key issues of the roundtable willaddress fossil energy facility technology and net-work system issues of greatest importance in termsof overall vulnerability. They may include facilitiesrelated to production, transformation and logistics:

Petroleum. Oil fields, pipelines, terminals, tankers,refineries, power plants;

Gas. Gas fields, pipelines, storage facilities, lique-faction and gasification facilities, power plants;

Coal. Mines, shipment facilities, railways andwaterways, gasification plants, power plants;

Derivatives. Production plant, transmission anddistribution, storage (electricity, methanol, hydro-gen and other).


14

This roundtable will provide the basis for the WPFFto assess whether further collaborative activitiesrelated to safety and security in the fossil energyindustries should be undertaken. Such activitiesmight include:

Describing typical implementations, gaps andR&D needs;

Evaluating methods to improve the safety andsecurity of fossil energy systems;

Providing inputs to IEA and others on practicalmethods and technical improvements;

Identifying R&D needs for energy safety andsecurity; and

Assessing implications of international standardsand agreements.


15


16

The goal is to have this initiative fullyoperational by the end of 2002. This willrequire substantial effort to plan for thisinitiative and put into place all of theanticipated activities.

The most recently completed activity was theAdvisors meeting in March 2002. This meetingidentified the collaboration necessary to implementthus initiative. The next event is the WPFF meetingin Paris on 67 May 2002. A report will be made tothe CERT at its meeting on April 9 and 2627 June2002. Specific guidance will be requested at thattime. If deemed appropriate by the CERT, a reportcan be made to the Governing Board later this year.

Schedule Strategy Development and ImplementationZero Emissions Power Plant Conference Oct 2001Planning Meeting Jan 2002

Advisors Meeting Mar 2002

WPFF Meeting May 2002

Report to CERT Apr/Jun 2002

Recommendations for implementing agreements Sep 2002

Present information at COP-8 Nov 2002

Report to CERT Nov 2002

Communications

Communications Plan Sep 2002

Briefing Package for member countries Nov 2002

Informational Material 2003

Conferences 2003

Collaboration Technology Development and Deployment

Technology Status Report Draft Jan 2002

Gaps Analysis Feb 2002

Technology Status Report Final Jun 2002

Plan for Collaboration Dec 2002

Workshop on new Collaborative R&D on Electric 2002Network Technologies and Systems

Cooperation: Improving Existing Power Plants

Best Practices in Chinese Power Plants Oct 2002

Asia Pacific Conference 2003

Project on Accelerating Deployment of 2003Clean Coal Technologies in China

Energy Security

Energy Security Roundtable 2002

Plan for Security Collaboration (if needed) 2002

The International Energy Agency (IEA),founded in 1974, is the energy forum for 26industrialized countries, all of them mem-bers of the Organization for Economic Co-operation and Development (OECD).22 The statedobjectives of the IEA are to:

Maintain and improve systems for coping with oilsupply disruptions;

Promote rational energy policies in a global con-text through co-operative relations with non-Member countries, industry and internationalorganizations;

Operate a permanent information system on theinternational oil market;

Improve the worlds energy supply and demandstructure by developing alternative energy sourcesand increasing the efficiency of energy use; and

Assist in the integration of environmental andenergy policies.

The strong emphasis on energy security issues isclearly evident in these objectives. IEA was foundedin response to the oil market disruptions of theearly 1970s and its core mission has always been tomitigate the impact of energy supply disruptions.The tragic events of September 11, 2001 reinforcethe need for this core mission. Nonetheless, in thetwenty-seven years since the IEA was founded, IEAhas extended its activities in many directions. Twoare particularly relevant to the Zero Emissions con-cept, namely, that IEA:

Plays a leading role in the international effort tocombat climate destabilization; and

Stimulates the development and deployment ofnew energy technologies through a vast networkof Implementing Agreements.

These directions do not detract from the core mis-sion, but rather balance it with other energy-relatedconcerns of the Member countries. One key IEAprogram that must address this balance is theEnergy Technology Collaboration Program. Thisprogram operates under the guidance of theAgencys Committee on Energy Research andTechnology (CERT). To assist with this task, the CERThas established four expert bodies, one of which isthe Working Party on Fossil Fuels (WPFF).

The WPFF advises the IEA on technology issues,trends, and R&D programs regarding fossil fuels and

electricity system issues. The goal of the WPFF is toensure appropriate advice is readily available to theCERT and other IEA bodies on: fossil fuel technol-ogy-related policies, priorities, projects, programs,and strategies that address short- and long-termenergy security and environmental protection inter-ests of Member countries; and activities to meetthese needs through international co-ordinationand collaboration facilitated by the IEA process. Atthe request of the CERT, the WPFF is also devotingincreasing resources to encourage technology trans-fer to non IEA countries such as China and India,where fossil fuel use is expected to grow rapidly andthe potential to reduce the environmental impactsis largest.

IEA Shared Goals and WPFF ActivitiesDuring the June 4, 1993 meeting of the IEAMinisters, a statement of Shared Goals was adoptedwhich provides the overall framework for the workof the IEA and its subsidiary bodies such as theWPFF. A number of statements from the SharedGoals document impact the work of the WPFF andare listed below:

The 25 Member countries of theInternational Energy Agency (IEA) seek tocreate the conditions in which the energysectors of their economies can make thefullest possible contribution to sustainableeconomic development and the well beingof their people and of the environment. Informulating energy policies, the establish-ment of free and open markets is a funda-mental point of departure, though energysecurity and environmental protection needto be given particular emphasis by govern-ments. IEA countries recognize the signifi-cance of increasing global interdependencein energy. They therefore seek to promotethe effective operation of internationalenergy markets and encourage dialoguewith all participants

Diversity, efficiency and flexibility within theenergy sector are basic conditions forlonger-term energy security; the fuels usedwithin and across sectors and the sourcesof those fuels should be as diverse aspracticable...


17

Annex A: The IEA Working Party on Fossil Fuels


18

Clean and efficient use of fossil fuels isessential

Continued research, development and marketdeployment of new and improved energytechnologies make a critical contribution toachieving the objectives outlined

Energy technology policies should complementbroader energy policies. International co-oper-ation in the development and disseminationof energy technologies, including industry par-ticipation and co-operation with non-Membercountries, should be encouraged

Free and open trade and a secure frame-work for investment contribute to efficientenergy markets and energy security.Distortions to energy trade and investmentshould be avoided

Co-operation among all energy market par-ticipants helps to improve information andunderstanding, and encourage the develop-ment of efficient, environmentally accept-able and flexible energy systems and mar-kets world-wide. These are needed to pro-mote the investment, trade and confidencenecessary to achieve the global energysecurity and environmental objectives.

The WPFF is responsible for several IEA projects ofthe Energy Technology Collaboration Programmeand the Implementing Agreements:

Clean Coal Sciences; IEA Clean Coal Centre; International Centre for Gas Technology

Information; Enhanced Recovery of Oil; Fluidized Bed Conversion; Greenhouse Gas R&D Program; and Multiphase Flow Sciences.

Implementing Agreements are described in detail inAnnex B.

As indicated above, as well as ensuring the activitiesundertaken by the collaborative ImplementingAgreements remain focused on the Shared Goals ofthe IEA, the WPFF also oversees the work of an Ad-hoc Group of Experts on Electric Power Technologiesand the Advisory Group on Oil and Gas Technology.(See Annexes D and E.) The WPFF also produces anannual report to CERT on all its activities,Implementing Agreements, and the Expert Groups,

to ensure they are fully informed and have theopportunity to recommend further activities they seeas a priority for the IEA and its Member countries.

WPFF Mandate (as approved by the CERT in June 2001)

Objectives

The Working Party on Fossil Fuels (WPFF) shall,within the framework of the IEA Shared Goals, pro-vide advice to IEA on:

Fossil fuel technology-related policies, trends,projects, programs;

Strategies which address priority environmentalprotection and energy security interests, includingadequate, flexible and reliable supply of powerand electrical service of member countries; and

Carry out activities to meet those needs throughinternational co-operation and collaboration facil-itated by IEA.

Functions

The functions of the WPFF are:

Identification of the fossil fuel technology priorityinterests, including electric power technologies,common to IEA Member countries, includingtheir integration with non-fossil technologies;

Promotion of collaborative RD&D and technologydeployment as well as electric power production,transmission, distribution and end use efficiency,by arranging studies and technology informationexchange on topics of common interest, confer-ences, workshops, and other activities;

Technology co-operation with non-Membercountries;

Initiation, evaluation, and review on a periodicbasis of Implementing Agreements and otherinternational collaborative activities;

Co-ordination with other sectoral bodies of theIEA which conducting fossil fuel-related studies,information exchanges and meetings relevant tothe goals of the WPFF; and

Review and evaluation of, and participation in, fos-sil fuel-related activities conducted by IEA bodies.

Activities and ProceduresThe WPFF shall submit to the CERT an annual workplan and an annual report on on-going activities,planned actions and recommendations. The WPFFshall carry out its functions without the disclosureof confidential or proprietary data of any entity.

MembershipAll IEA Member governments, and the EuropeanCommission, shall be members of the WPFF.Members shall be represented through delegateswho have responsibilities related to oil, natural gas,coal, and other carbon-based fuel materials. Othernational or international entities might be consultedas appropriate. The WPFF shall select a Chairman andone or more Vice Chairmen. The Chairman and ViceChairmen shall be elected for 3-year terms. The Chair-man can only be re-elected only once in succession.The Chairman or one of the Vice-Chairmen shallreport on the activities of the Working Party to CERT.

WPFF ActivitiesWPFF activities are of three broad types: collabora-tion among Member countries to develop the tech-nologies, cooperation with non-Member countriesand technology deployment. The text box belowdescribes the goals of each. Communications under-lie each.

Table 4 presents a summary of recently-completedWPFF activities.


19

Table 4 Summary of Recently Completed WPFF ActivitiesActivities Completed in 2000

Activity Lead Date Comments

Technology Status Report on CO2 UK November 2000Sequestration; Summary report for COP-6

Workshop on CO2 Sequestration UK, Norway June 2000 Good, broad participation

Scoping meeting of financiers for Finance Forum WPFF February 2000 Participants showed strong interest in using the IEA as a forum for communication with policy makers

Review of Gas Technology Information Implementing WPFF April 2000 ICGTI provides a valued service and has strong Agreement involvement of industry and non-Member

countries

Activities Completed in 2001

Activity Lead Date Comments

Technology Status Report on Zero Emissions Technologies: U.S. October 2001 Good participation. Workshop discussions will Scoping workshop on ZETs lead to a new strategic focus for the WPFF on

zero emissions.

Joint Session with the CERT WPFF April 2001

Review of Greenhouse Gases Implementing Agreement WPFF October 2001 GHG IA has taken the lead globally in providing information on CO2.

Review of Fluidized Bed Conversion Implementing Agreement WPFF April 2001 FBC has a strong program. Many industrial players are associated with the work, although few participate directly.

Review of Clean Coal Center Implementing Agreement WPFF October 2001 Many members remain strongly committed tothe importance of CCCs work, although withdrawals of members are causing increasing concern. Members agreed to broaden the outreach of CC through partnerships with other organizations.


20

The work of the Zero Emissions Initiative crosscuts the activities of several of the AdvisoryGroups and Implementation Agreementsfor which the WPFF is responsible andthree Implementation Agreements for which it isnot responsible. Effective implementation willrequire a coordinated approach with each AdvisoryGroup or Implementing Agreement being responsiblefor that part of the Initiative it can do best.

Periodic ReviewsImplementing agreements are subject to periodicreview. The schedule for review of the implementingagreements is shown in Table 5.

Annex B: Relation to Implementing Agreements and Advisory Groups

Table 5Schedule for Review of Implementing Agreements

Implementing Agreement Lead Review Date Comments

IEA Center for Gas Technology Information WPFF Chair May 2002 Agreement began in April 1995 and renewed inMay 2000.

Coal Combustion Sciences WPFF Chair October 2000 and May 2002 Agreement initiated in March 1985 and expires inJune 2002.

Multiphase Flow Sciences WPFF Chair October 2000 and October 2003 Agreement expires March 15, 2003.

IEA Coal Research WPFF Chair October 2001 and October 2003 Initiated in November 1975, this Implementing The Clean Coal Centre Agreement does not have an expiration date.

Fluidized Bed Conversion WPFF Chair April 2001 and April 2003

Greenhouse Gases WPFF Chair October 2001 and October 2003 Extended for five years in November 2001.

Enhanced Oil Recovery WPFF Chair May 2002


21

Roles of Implementing Agreements and Advisory GroupsTable 6 summarizes the proposed areas of responsi-bility for each agreement for which the WPFF isresponsible. Discussions are currently underwaywith each implementing agreement. Each has indi-cated an interest in collaboration with the ZeroEmissions Technology initiative and proposedmechanism for this collaboration.

It is clear from the discussions that much is to begained from such collaboration because the existingimplementing agreements engage in many activitiesthat complement those planned for the ZeroEmissions Technology initiative. It is important totake advantage of synergies and establishedresources to avoid duplication.

Table 6Potential Roles of Existing WPFF Implementing Agreements

Implementing Agreement Overall Mission Proposed Zero Emissions Initiative Responsibilites*

Clean Coal Sciences Research on the basic science of coal combustion. Collaboration and DeploymentRefocus on Vision 21 and zero emissions technologies; increased technical collaborationplanned on advanced zero emissions technologies.

Enhanced Recovery of Oil Evaluate and disseminate results of research and Collaboration and Deploymentdevelopment and undertake demonstration, Facilitate, as needed, the state of the art of injectionlaboratory and field tests related to enhanced of recovered carbon dioxide for enhanced oil oil recovery. recovery and address related issues such as CO2

rate of leakage.

Greenhouse Gases R&D Programme Develop and demonstrate opportunities to reduce Communicationsemissions of greenhouse gases from the use of fossil Provide support to the WPFF on the fuels through: communication strategy. Evaluates technologies for reducing emissions, Collaboration and Deployment

to disseminate information; Build on existing activities, especially related to Prepares RD&D proposals; and CO2 storage. Conducts R&D projects, where appropriate. Cooperation

Build on existing activities.

IEA Coal Research Enhance innovation and the development of coal CommunicationsThe Clean Coal Centre as a clean source of energy by gathering, assessing Disseminate information on Zero Emissions

and disseminating information. technology through workshops and Undertakes in depth studies of topics of seminars and website.

special interest; Collaboration and Deployment Assess technical, economic and Advise on R&D needs, evaluating proposals

environmental performance; and monitor reports; tailor some reports to Zero Identifies where further RD&D and dissemination Emissions Technologies.

needed; and Cooperation Objectively reports findings for technology Capacity building through participation in funded

transfer worldwide. knowledge transfer projects.

International Centre for Gas Provide an international forum on gas technology CommunicationsTechnology Information information so that gas technologies are transferred Disseminate information on Zero Emissions

and global gas market needs are met efficiently. Technology to the natural gas industry worldwide.The primary activity is a web database: www.gtionline.org.

Multiphase Flow Sciences Coordinate exchange of information and Collaboration and Deploymentcomplementary research task to improve the Facilitate, as needed, the exchange of informationunderstanding of multiphase phenomena associated relating to multiphase phenomena as they apply to with energy from coal, oil and gas. Zero Emissions Technologies.

* These are preliminary. Actual responsibilities are under discussion with Implementing Agreement Chairmen.


22

The two WPFF Advisory Groups are the Ad-HocGroup of Experts on Electric Power Technologiesand the CERT Advisory Group on Oil and GasTechnology. The proposed roles of these advisorygroups are described below in Table 7.

Three implementing agreements for which theWPFF is not responsible may also contribute to theZero Emissions Technology initiative. These are theIEA Advanced Fuel Cells and Hydrogen implement-ing agreements plus the Energy Technology Systems

Table 7Potential Roles of Existing WPFF Advisory Groups

Advisory Group Overall Mission Proposed Zero Emissions Initiative Responsibilites*

Ad-Hoc Group of Experts on Electric Provide advice to and responding to the requests Collaboration and DeploymentPower Technologies of CERT and other IEA bodies on topics related to Workshop on New Collaborative R&D on Electricity

electric power technologies and the interaction Networks Technologies and Systemsbetween electric power technology development and Safety and Security energy policy measures. Serve as advisor to the WPFF on issues related to

energy security.

CERT Advisory Group on Oil and Support CERT and strengthen WPFF activities through: Collaboration and DeploymentGas Technology Identification of oil and gas priority technology Provide advice on potential roles of oil and gas

interests; technologies in the Zero Emissions concept, Promote collaborative RD&D; particularly related to use of oil and gas fields Technology cooperation with non-member for carbon dioxide sequestration.

countries; and Providing input to evaluation and review of Assess the implications of zero emissions technologies

implementing agreements. on unconventional fossil hydrocarbon resources such as heavy oils, bitumen, and oil shale.

* These are preliminary. Actual responsibilities are under discussion with Implementing Agreement Chairmen.

Table 8Potential Roles of non-WPFF Implementing Agreements

Implementing Agreement Overall Mission Proposed Zero Emissions Initiative Responsibilites*

Advanced Fuel Cells Program Advance the state of understanding of advanced fuel Collaboration and Deploymentcells through cooperative research, technology Perform analyses and facilitate collaboration on fuel development and system analysis.Various types cell integration with zero emissions technologies for of fuel cells are addressed for both stationary and fossil fuels.

transport applications. The program has both technology-based and applications-based activities.Specific activities relate to: Information management, Addressing application issues and reduction of

barriers, and Technology development.

Hydrogen Accelerate hydrogen implementation and widespread Communicationsutilization to achieve a vision of a hydrogen future based Ensure that it is understood that fossil fuels are a on clean, sustainable energy supply that plays a key large potential clean source of future hydrogen.role in all sectors of the economy. This is achieved Collaboration and Deploymentby facilitating, coordinating and maintaining innovative Perform analyses and comparisons of hydrogenresearch, development and demonstration activities production from fossil and renewable energy sources.through international cooperation andinformation exchange. Facilitate collaboration on research and development

on technologies applicable to zero emissions production of hydrogen from fossil energy sources.

Energy Technology Systems Serve national governments and work in CommunicationsAnalysis Programme (ETSAP) international forums by fostering and supporting the Help convey the potential for Zero Emissions

development of constructive, economically and Technologies and issues related to these technologiestechnologically informed policy options. Do this through the results of analytical activities.by using a consistent multi-country Collaboration and Deploymentenergy/economy/environment analytic capability Provide inputs to R&D planning for Zero Emissionsbased on the MARKAL model. Technologies for fossil fuels by analyzing the markets,

constraints, economics and impacts of these technologies.

*These are preliminary. Actual responsibilities are under discussion with Implementing Agreement Chairmen.


23

Analysis Programme. Both the Advanced Fuel Cellsand Hydrogen initiatives facilitate the developmentof technologies that would be potential compo-nents of Zero Emissions Technologies for fossil fuels.The Energy Technology Systems AnalysisProgramme provides a framework for analysis ofZero Emissions Technologies for Fossil Fuels. Table 8describes the potential for collaboration with thethree non-WPFF implementing agreements. Futurediscussions will explore the possibility of contribu-tions from all IEA implementing agreements.

Alignment of Existing WPFF ActivitiesIn addition to work under the implementing agree-ments, numerous WPFF activities are underway inthree broad categories of activities: technology col-laboration (among IEA members), technology co-operation (with non-member countries), and tech-nology deployment. Some of these activities couldwell support or complement the Zero EmissionsInitiative if zero emissions concept were included inthese activities, thus reducing the resources thatwould need to be devoted to this effort. The follow-ing lists those activities that either are or could bealigned with the zero emissions initiative. Relevantactivities will be coordinated with the IEA CoalIndustry Advisory Board. The WPFF will assess thefeasibility of this alignment in the planning for theinitiative.

Table 9Technology Collaboration

Activity Lead Date Relevance to Zero Emissions Initiative

Report on Priorities for Collaborative RD&D U.K. End 2001 Update in 2002 to incorporate zero emissions concepts.

Reports on Member country R&D and R&D collaboration WPFF Members Every 2 yrs, next in 2003 Incorporate zero emissions concepts innext reports.

Reviews of Implementing Agreements WPFF Chair Various Determine relevance to Zero Emissions Initiative.

Oversee work of Oil and Gas Advisory Group Norway and US Ongoing Discuss activities to incorporate the ZeroEmissions Initiative.

Oversee work of Ad-hoc Group of Experts on Electric WPFF Chair Ongoing Discuss activities to incorporate thePower Technologies Zero Emissions Initiative.

Technology Co-Operation


Focused dialog with non-member countries through U.K., U.S. 2001 with other Incorporate Zero Emissions conceptseminars,workshops and conferences dates to be agreed in the dialog.

Pilot project to identify measures that could improve U.K., U.S., 2001 This is a direct fit with ZETs goals.efficiency of existing power plants in China Denmark and Information gained on this project could help

Australia shape implementation.

Coordinated information dissemination strategy Chair and By October 2001 Zero emissions concepts should be included.for WPFF Secretariat

Technology Deployment


Technology Status Reports U.K., U.S, Nov 2001June 2002 Ensure that Zero Emission technologies Norway, etc. are addressed.

Develop IEA forum on Financing Cleaner Energy Secretariat, Planned in 2001 Ensure that Zero Emission technologiesTechnologies U.S., U.K and 2003 are addressed.


24

Clean Coal SciencesThe focus of the Implementing Agreement on CleanCoal Sciences is the basic science of coal combus-tion. The specific objectives are:

To encourage, support and promote research anddevelopment that will lead to improved under-standing and characterization of conventionalcombustion processes;

To develop techniques that control and reducesolid, liquid and gaseous emissions associatedwith combustion processes; improve operatingefficiency; and

To identify methods for the effective utilization ofcombustion by-products.

The Implementing Agreement embraces a widerange of activities associated with coal combustion,including work related to advanced power genera-tion technologies, improved modelling and diag-nostic methods, and the development of low-NOxburners.

The work of the Agreement has led to numerouscommercial applications, including the develop-ment of a new generation of low-NOx burnerswhich have already achieved sales of over $400 mil-lion in one participating country.

The work programme is conducted using both tasksharing and cost sharing. The cost shared compo-nent involves a common fund that is used to sup-port coal research studies at the International FlameResearch Foundation in the Netherlands.

There are Contracting Parties from 12 countries:Australia, Canada, Denmark, Finland, Germany,Italy, Japan, Mexico, the Netherlands, Sweden, theUnited Kingdom and the United States.

IEA Clean Coal CentreThe objective of The IEA Clean Coal Centre is:

To enhance innovation and the development ofcoal as a clean source of energy by gathering,assessing and disseminating information on effi-cient coal supply and use.

The success of the Centre in achieving this objectiveis demonstrated by its acknowledgement as theworlds foremost provider of information on effi-cient coal supply and use.

The Centre gathers, assesses and distributes knowl-edge on the energy efficient and environmentallysustainable use of coal. Specific activities include:

Undertaking in-depth studies on topics of specialinterest;

Assessing the technical, economic and environ-mental performance;

Identifying where further research, development,demonstration and dissemination are needed;

Reporting the findings in a balanced and objectiveway; and

Showing, where appropriate, the opportunities fortechnology transfer world-wide.

The Centre also undertakes studies for members andclients have reported favourably on the value of theCentres extensive databases and expert search capa-bilities.

It is difficult to attribute a value to an organisationprimarily generating underpinning knowledge andinformation. However, a survey of the Centres cus-tomers has showed that 97 percent had increasedtheir knowledge of R&D or operational experienceand 73 percent said that the Programme had con-tributed to actions leading to a reduction in theenvironmental impact of coal.

The operation of the Clean Coal Centre is fundedlargely by participant contributions to a commonfund. However, some additional funding is derivedfrom income from services. There are ContractingParties from 12 countries (Austria, Canada,Denmark, Finland, Italy, Japan, the Netherlands,Poland, Spain, Sweden, the United Kingdom andthe United States) and the European Commission.

International Centre for Gas TechnologyInformationDemand for natural gas is growing faster thandemand for other fossil fuels, with natural gas hav-ing increased its share of total energy demand from18.4 percent to 20.2 percent over the decade from

Annex C: Details of Working Party on Fossil FuelsImplementing Agreements


25

1986 to 1996 and to 21.7 percent in 1997. Thispattern is expected to continue. Rapid and flexiblemeans of providing up-to-date information on tech-nology is critical to capturing the full potentialenvironmental and economic benefits from theincreased use of natural gas.

The International Centre for Gas Technology Infor-mation (ICGTI) seeks to meet this need. Its mission is:

To provide an international forum ongas technology information so that gastechnologies are transferred and globalgas market needs are met efficiently.

ICGTI provides user-friendly access to gas technol-ogy information through an Internet based systemcalled GTI Online. This system provides informationon gas technologies covering the complete fuelcycle: from exploration to end-use. Informationincludes technology research, market assessments,and gas industry global news. GTI Online also pro-vides an online link between gas technology expertsin member countries. The information providedthrough ICGTI also gives participating companiesand countries an opportunity to develop andexpand collaboration with non-competing firms andorganisations to co-fund research and development.

An example of how the ICGTI is contributing is itsrole with the International Institute for Energy andEnvironment. This Institute, which is a non-profit,non-governmental organisation, was established bycollaboration between the US EnvironmentProtection Agency (EPA) and Russias Gazprom. Itprovides a single focus for methane emission reduc-tion activities across the entire Russian oil and gassectors and encourages technical, educational andcommercial co-operation. ICGTI aids the EPA inmonitoring the Institutes activities to ensure that itmeets the EPA approved project plan.

More than 800 companies are signed up to use GTIonline, demonstrating commercial relevance. TheGTI Online directory also includes a list of thou-sands of firms active in the global gas industry.

The operations of ICGTI are funded by participantcontributions to a common fund.

There are Contracting Parties from eight countries(Brazil, Denmark, Japan, New Zealand, Portugal,Russia, Spain, and the United States) and theEuropean Commission. In addition, there are testmembers, observers and subscribers: Australia,

Canada, Finland, Germany, the Netherlands, Poland,Sweden, Trinidad & Tobago, and the United Kingdom

Enhanced Recovery of OilOil is the worlds largest single source of energy.Transport is almost totally dependent on liquidfuels derived from crude oil. The development anddeployment of advanced techniques to increase theamount of oil that can be recovered economicallyhas the potential to make a large contribution tothe worlds oil supplies. This is particularly impor-tant given the relatively limited nature of theworlds conventional oil resources, production fromwhich could peak between the years 2010 and 2020.

The objective of the Implementing Agreement on theEnhanced Recovery of Oil is:

To evaluate and disseminate the results of researchand development and to undertake demonstra-tion, laboratory and field tests.

The work programme is largely one of basic researchand laboratory investigations in areas of mutualinterest. These include studies of fluids and interfacesin porous media, research on surfactants and poly-mers, development of techniques for gas flooding,thermal recovery, dynamic reservoir characterisationand emerging technologies. This work is contributingto technology development within the oil industry.

One major achievement has been the determinationof the impact on crude oil composition of misciblecarbon dioxide injection. This could ultimately pro-vide benefits to the industry of hundreds of mil-lions of dollars through savings in investment inEOR processes. Another achievement concerns thedevelopment of a new approach to reservoir stimu-lation that is expected to lead to benefits of manytens of millions of dollars.

The work programme is conducted through task-sharing with participants conducting their ownresearch and sharing results at annual workshop.

There are Contracting Parties from 11 countries:Australia, Austria, Canada, Denmark, France, JapanNorway, Russia, the United Kingdom, the UnitedStates and Venezuela.

Fluidized Bed ConversionFluidized beds offer several advantages over pulver-ized fuel combustion, notably low NOx emission,in-process capture of SO2 and the ability to burn awide range of low-grade and potentially difficult


26

fuels (including waste and biomass), as well asmixed fuels. The conversion (combustion or gasi-fication) of solid fuels for production of heat and/orelectricity can be made by various fluidised bedtechniques working at atmospheric pressure orunder pressure, usually: bubbling and circulat-ing fluidised beds. Supercritical steam conditionscan be used for fluidised bed boilers (atmosphericand pressurised) and efficiencies in the range of 45percent may be attained in the near future.

In addition, the technology can be employed forincineration and existing units have been success-fully used for the disposal of high level PCB contam-inated wastes, oil remediation and the eliminationof low calorific wastes. The technology is also widelyused in the metallurgical industry among others.

The Implementing Agreement on Fluidized BedConversion aims to bring together experts wishingto work on common problems. The main activity istechnical exchanges during meetings and work-shops. Participants are carrying out research onoperational issues in support of local commercialfluidized bed conversion activities and sharing theresults. Mathematical modelling has been a majoractivity in the past and a 1 D model for atmos-pheric fluidized bed combustion of coal has beendeveloped and the exchanges in 3D modelling ofgas/solid flows as been very fruitful in permittingthe development of knowledge of local solid con-centration and heat transfer.

In addition, efforts are being developed in the fieldof solids attrition and fragmentation, NOx and N2Oformation and reduction, sorbent reactivity and sul-fur capture mechanisms, bed sintering/agglomera-tion problems and ash utilization.

The Agreement has published a series of compila-tion of outstanding papers on R&D activities in flu-idized bed conversion and a guide-book for the useof the 1 D CFB combustion model.

There are active Contracting Parties from 11 coun-tries: Austria, Canada, France, Finlan

Nesto3

Documents

fossil fuels iea

energy securityand

energy forum

fossil fuels use

ieaworld energy outlook

fossil fuels20

technology issues

annex e