SUPPLIES OF COAL UNITED STATES - 3 TRILLION TONS (50% IN WYOMING, MONTANA, NORTH DAKOTA) WESTERN COAL - 60% LOW SULFUR (0.7%S) - AT STRIP MINING DEPTH.

SUPPLIES OF COAL

UNITED STATES - 3 TRILLION TONS (50% IN WYOMING, MONTANA, NORTH DAKOTA)

WESTERN COAL - 60% LOW SULFUR (0.7%S) - AT STRIP MINING DEPTH - >1000 MILES FROM DEMAND CENTERS - $5- $15/TON

U.S. COAL RESERVES

RECOVERABLE - 10% U.S.G.S - 50% DOE

“UNRECOVERABLE” - TECHNOLOGICALLY - ECONOMICALLY - (EXTRACTION, RECLAMATION COSTS)

AVAILABLE COAL ENERGY

3 TRILLION TONS X 50% RECOVERABLE X 2000 LB/TON X 10,000 BTU/LB = 3 X 1019 BTU

- 1980 U.S. CONSUMPTION = 80X1015 BTU (TOTAL) - 375 YEAR SUPPLY

AT PRESENT COAL CONSUMPTION RATES (20 X 1015 BTU/YEAR) - 1500 YEAR SUPPLY

COAL RANK

1. ANTHRACITE -14,000 BTU/LB

2. BITUMINOUS -12,000 BTU/LB

3. SUB-BITUMINOUS -9,000 BTU/LB

4. LIGNITE (30% WATER) - 7,000 BTU/LB

TABLE 4Representative Composition of Western Lignite

(As Received)

Proximate Analysis Ultimate analysisFixed carbon 27.2% Carbon 44.9 %Ash 11.7% Hydrogen 3.4%Water 25.4% Oxygen 13.2%Volatiles 34.5% Nitrogen 0.2%Sulfur 1.2% Sulfur 1.2%

Heating value 7500 Btu/lb Ash 11.7%

Water 25.4%

FINANCIAL DILEMMA

SYNTHETIC FUEL COST (2008) - $7.50-15.00/MM BTU

INVESTMENT - 75 X 1012 BTU/YEAR PLANT, 25 YEAR LIFE - $4-6 BILLION

? COST OF OTHER ENERGY SOURCES ?? (O.P.E.C) - NEED A FLOOR ON THE PRICE OF ENERGY OVER A LONG TIME FRAME

EXTRACTION

TRANSPORTATION

PREPARATION

CONVERSION - GASIFICATION- LIQUEFACTION- COMBUSTION

POLLUTION CONTROL - PARTICULATES- SO2

- H2S- NOX

EXTRACTION

1. STRIP MINING 0-200 feet

2. SHAFT MINING 200-5000 feet

3. IN SITU GASIFICATION

(2)USED AS EARLY AS 1819 IN TEXAS (1) USED SINCE 1954 (ROCKDALE)

STRIP MINING - CONTOUR STRIPPING- AREA STRIPPING

ENVIRONMENTAL ASPECTS

1. STRIP MINING OF TEXAS LIGNITE

AREA STRIPPINGOVERBURDEN NOT HIGH SULFURRECLAMATION COST CT= 0.055 CA/T(SUFFICIENT RAINFALL) – NEGLIGIBLE IN MOST CASES

CT, COST PER TON IN CENTS

T, COAL SEAM THICKNESS IN FEET

CA, RECLAMATION COST IN DOLLAR PER ACRE ($200 IN TEXAS)

COAL PIPELINES

COAL (200 MESH)/ WATER SLURRY

LARGE INVESTMENT COST

CURRENT OPERATION – BLACK MESA, ARIZONA(1750 MW) 270 MILES

PLANNED OPERATION – HINDERED BY EMINENT DOMAIN, WATER SUPPLY PROBLEMS

NOT FEASIBLE FOR LIGNITE

FOUR UTILIZATION ISSUES

1. LOCATION

2. MODE OF EXTRACTION

3. SULFUR REMOVAL

4. FINAL PRODUCT

SOLUTIONS TO THE SULFUR PROBLEM IN POWER GENERATION

1. LOW SULFUR COAL

2. MECHANICAL TREATMENT (BENEFICIATION)

3. COAL GASIFICATION/LIQUEFACTION

4. DOLOMITE INJECTION/FLUIDIZED BED

5. FLUE GAS SCRUBBERS

1, 2, 3 PRE-COMBUSTION

FLUE GAS SCRUBBERS

LIMESTONE SCRUBBING AT LOW TEMPERATURE

DESIGNED FOR 90% REMOVAL

COMMERCIALLY PROVEN, COST = $200/KW (vs. $1000/KW for ENTIRE POWER PLANT)

HAS DISPOSABLE BYPRODUCT (e.g., CAS04)

6-8 % LOSS IN THERMAL EFFICIENCY

DOLOMITE INJECTION

REMOVAL OF SO2 SIMULTANEOUS WITH COMBUSTION

CACO3 SERVES AS A SCAVENGER FOR SO2 (PRODUCES CASO4 THROWAWAY PRODUCT)

REQUIRES LOW TEMPERATURE 1600 ºF

HANDLES HIGH ASH COALS

LOWER EMISSIONS OF NOX, TRACE METALS

ATTRACTIVE FOR SMALLER POWER PLANTS (LESS THAN 100 MW)

COAL GASIFICATION/LIQUEFACTION

VERY EXPENSIVE

GASIFICATION ONLY REASONABLE WHEN PLANT IS INTEGRATED

COAL LIQUIDS ATTRACTIVE FOR TRANSPORTATION

COMMERCIAL SCALE OPERATIONS (e.g., S.AFRICA)

H2S/CO2 REMOVAL ARE PROVEN TECHNOLOGIES

H2S + O2 = H2O + SO2

H2S + SO2 = S + H2O

SELECTION OF A GASIFIER

1. TYPE OF BED

2. OPERATING PRESSURE

3. SLAGGING, NON-SLAGGING

LURGI (FIXED BED, HIGH P, NON-SLAGGING)

KOPPERS-TOTZEK (ENTRAINED BED, LOW P, SLAGGING)

WELLMAN-GALUSHA (FIXED, LOW P, NON-SLAGGING)

WINKLER (FLUIDIZED, LOW P, NON-SLAGGING)

Kellog Brown and Root (KBR)

IGCC PROCESS

IGCC Plants in the US

The Tampa Electric IGCC ProjectMulberry, Florida, 1996

Using: GE Energy Gasification Output: 250 MWe

The Wabash River IGCC ProjectWest Terre Haute, Indiana, 1995Using: The ConocoPhillips E-Gas

Gasification process Output: 262 MWe

PREDICTIONS(MADE IN 1990) ?

1. COAL COMBUSTION WILL CONTINUE AS THE DOMINANT MODE OF COAL UTILIZATION DURING THE REST OF THIS CENTURY.

2. SYNTHETIC FUELS WILL BECOME POPULAR AGAIN IN THE FUTURE (HISTORY REPEATS ITSELF) – PERHAPS 10 YEARS FROM NOW, THE U.S.A WILL HAVE ANOTHER ENERGY “CRISIS”.

3. PREDICTIONS FOR 2010?