The next decade of gasification projects - NEDO · The next decade of gasification projects ... TRIG In Kemper County, MS, USA ... –Siemens, Linde

Dr. S. Julio Friedmann

Deputy Assistant Secretary

Office of Clean Coal and Carbon Management

The next decade of gasification projects

NEDO International Gasification Conference

Sept. 10th, 2014, Tokyo, Japan

This is a time of fossil energy abundance

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What is the role for gasification in a natural gas rich world?

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US Energy Picture: Abundant Coal, Gas, and Oil

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Source: IEA 2013 World Energy Outlook

Source: EIA 2014 Annual Energy Outlook

Future of Fossil Energy Demand and

Generation •Fossil fuel use still robust, accounts for 75% of global primary energy demand in 2035

•Even with robust natural gas growth, coal is still a major source of global energy demand and domestic electricity generation

•Fossil Energy remains dominant share (68%) of United States electricity generation in 2040

•With this continued use and growth is a need to address CO2 emissions

Coal gasification will have a major role

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Coal remains cheap and abundant

• Prices generally low to very low

• Gas prices high in much of the world

Gasification can support polygeneration

• Power (IGCC)

• SNG, chemicals (e.g., methanol)

Well configured for CCS and CCUS

• By-product: lowest price for industrial CCS

• Pre-combustion: lowest cost for power CCS

Many technology pathways and improvements

• Began in 1977; coal syngas production due to natural gas shortages

– Primary focus on sulfur, particulates, efficiency and cost

• <20 years later, two operating IGCC plants

– Outstanding environmental performance.

– They make power today

• Late 1990’s: focus on low rank coal (lignite): Transport Reactor Integrated Gasifier (TRIG)

U.S. Department of Energy Gasification Historical Perspective

IGCC Technology in Early Commercialization Nation’s 1st Commercial-scale IGCC plants

Each achieving: > 97% sulfur removal > 90% NOx reduction

Wabash River

– CB&I “E-Gas” Gasifier

– 1996 Power plant of the Year Award*

Tampa Electric

– General Electric Gasifier

– 1997 Power plant of the Year Award*

– First dispatch power generator

• *Power Magazine

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Late

30's

1942

1951

Early

1960's

1976

1980's 1990 1996 1999 2014

First

Commercial

FCC Unit

for Exxon

Orthoflow™

A Design

Orthoflow™

C Design

Resid

FCCs

Orthoflow™ F

Design

Design Based on

FCC Technology

Pilot Plant

Tech Center

Grand Forks, ND

2,600 Hours Test Run

TRIGTM In Kemper

County, MS, USA

TRIGTM Leverages Long History of KBR Fluid Catalytic Cracking (FCC) Expertise

Development of the TRIGTM Low Rank Coal Gasification with High Availability

Birmingham, AL

14,000+ Hours Tests

Run

• New and pressing environmental focus

– Greenhouse gas emissions (major focus)

– Heavy metals (Hg, As)

• In 2009, US natural gas prices dropped dramatically

• Today, DOE supports three, full-scale gasification projects – Control carbon emissions (key goal)

– CO2 for use in enhanced oil recovery (EOR)

– Two projects will co-produce urea

– One is nearing completion of construction

U.S. Department of Energy Gasification Today Greenhouse Gas Emissions Reductions

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DOE CCUS Demonstration Projects

CCPI

FutureGen

ICCS (Area I)

Hydrogen Energy California IGCC with EOR

$408 Million - DOE $4.0 Billion - Total

Summit Texas Clean Energy IGCC with EOR

$450 Million - DOE $1.7 Billion - Total

NRG Energy Post Combustion with CO2

Capture with EOR $167 Million – DOE $339 Million - Total

Air Products CO2 Capture from Steam

Methane Reformers with EOR $284 Million - DOE $431 Million - Total

Leucadia CO2 Capture from Methanol

with EOR $261 Million - DOE $436 Million - Total

Archer Daniels Midland CO2 Capture from Ethanol w/ saline storage

$141 Million - DOE $208 Million - Total

FutureGen 2.0 Oxy-combustion with CO2 capture

and saline storage $1.0 Billion - DOE

$1.3 Billion - Total

Southern Company Services IGCC-Transport Gasifier w/CO2 pipeline

$270 Million - DOE $2.67 Billion - Total

Focus – Large-scale commercial demonstration of CCUS integrated with coal power generation and industrial sources.

Summit Texas Clean Energy Advanced Polygeneration

• New business model in US

• Key partners:

– Siemens, Linde

– HQC/PetroChina

– China ExIm Bank

– CPS; Whiting; CHS Inc.

• 200 MW (net) to grid

• 0.65 MMT/y urea

• One Siemens SFG-850 Gasifier

• Fuel: PRB sub bituminous coal

• 90% CO2 capture – ~2.15MMT/y

• Total Plant Cost ~$2-3 B

Hydrogen Energy California Advanced Polygeneration

• New business model in US

• Key partners:

– MHI

– CPUC; CEC; CARB

• Up to 300 MWe (net)

• 1.0 MMT/yr urea/UAN

• MHI oxygen-blown gasifier (1 x 100%)

• MHI G-class air cooled combustion turbine (1)

• Fuel: Sub-bituminous coal/petcoke

• 90% CO2 capture – 3,020,000 tonnes CO2/year

• Total Plant Cost: ~$4 B

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Kemper County, MS Southern Co., 2010

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Kemper County, MS Southern Co., 2013

(Anticipated start late 2014 or early 2015)

KBR and Southern Taking TRIG Worldwide Both IGCC and Chemical Applications

TRIG

Installations

and Projects

Underway

U.S. Department of Energy Gasification Today Research Priority: component systems

Dry solids pump

Aerojet/Rocketdyne

Warm-gas clean-up

RTI

Oxygen separation

• Seven new technologies were awarded in 2013

– One year validation studies for new technologies

– Technologies that have the potential to significantly lower the cost of making high hydrogen syngas

• Four selections have been made this year for larger projects with the same focus

• Several small-scale projects will be awarded in novel oxygen production, catalytic gasification and bio-gasification

Recently Awarded Projects Taking Advantage of Polygeneration Capabilities

CCS/CCUS is the key technology for this era of fossil energy abundance

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Policy drivers

• President’s Climate Action Plan

• EPA: NSPS (draft) and ESPS (pending)

• State actions (AB32 etc.)

Technical findings (2008-present)

• IPCC WG1 report: must read policy summary!

• Continued GHG accumulations

• Challenges will all energy scale-ups

Global economic context

• Investors speak

• Global coal increase

• US-China dominance

A $6B climate mitigation program at DOE

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IEA CCS Roadmap 2013: Key Technologies for Reducing Global CO2 Emissions

Source: IEA Roadmap 2013.

Note: Numbers in brackets are shares in 2050. For example, 14% is the share of CCS

in cumulative emission reductions through 2050, and 17% is the share of CCS in

emission reductions in 2050, compared with the 6DS.

Most 2050 climate budgets require CCUS from natural gas power and biofuels

Challenges remains

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Much more competition from natural gas

• US market makes gasification projects very tough – new business models are key!

• This trend will continue in other countries as well

Competition for investment

• Increased competition in energy as a whole

• Increased competition across investment portfolio

Gasification can thrive, when positioned as a stragegic priority with global partnerships

Technology leads and informs policy

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Must build and deploy large projects

• New business models remain a key focus

• Information sharing: partnership as product

Must develop 2nd and 3rd generation technology

• Opportunity to invest: in plants, infrastructure, R&D

• Opportunity in grand bargains

Must partner with many

• Friends in the US

• International partners

Once in a generation opportunity to build