The Transition towards Zero Emission Power Generation ... · The Transition towards Zero Emission Power Generation - Technology Implications Nick Otter Director of Technology and

The Transition towards Zero Emission Power Generation - Technology Implications

Nick OtterDirector of Technology and External Affairs, ALSTOM Power Ltd

and Chairman of UK Advanced Power Generation Technology Forum

United Nations Economic and Social CouncilCommittee on Sustainable Energy

Coal in Sustainable Development MeetingGeneva

7/December/2004

UNECE Zero Emission Power OTTER Geneva 7Dec04 2

A BIT OF A SCENE SET FROM AN INDUSTRY POINT OF VIEW

SOME VIEWS ON A CARBON ABATEMENT STRATEGY FOR FOSSIL FUELS - THE TRANSITION ISSUE

AN ILLUSTRATION ON HOW SUCH A STRATEGY IS BEING IMPLEMENTED IN INDUSTRY……….using some ALSTOM activities as an example

Contents of Presentation


Energy Equipment/SystemsSupply Company

- ALSTOM Power : world-wide supplier of powergeneration plant, components and services

Viewpoint

Advanced Power Generation Sector- UK Advanced Power Generation Technology

Forum (APGTF) - European Industry : EPPSA/ EUnitedTurbines

EC Networks - Thematic network on CO2NET, CAME-GT, POWERCLEAN- Representative of European industry and researchers- EU-25 wide PowerClean

www.apgtf-uk.com


AN OVERALL PERSPECTIVE


Near Term Global Position

Significant impact of increased liberalisation, de-regulation and privatisation

3

020406080

100120140160180200220

53 58 63 68 73 78 83 88 93 98 03eOrder Year

Ann

ual O

rder

s [G

W/a

2 major growth cycles in the past led by NAM. Chinese boom in 2003?

Sources: BD/MI, RDI Newgen May 2003- GT & ST >= 3 MW , & Hydro >=10 & Diesel >= 1 MW- before 1974: data poor & excluding diesel.Hydro estimated from UDI- orders at risk of cancellation included

NAM

LAM

ChinaAsia

MEAEurope

50 Years Market DevelopmentOrder Volumes by Regions

Post WW IIeconomic

development

Oil crisisLiberalization &emerging Asia

US merchantsemerge

Market Intelligence / Market / MK 516 JN/10 12 2003

Future growth - importance of

developing countries

- upsurge in China and Asia


Long Term Energy Market

Different needs world-wide- uneven access to modern energy

Growth of Renewable Energy but ….

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

GW

Gas Coal Hydro Other renewables Oil Nuclear Fuel cells

AfricaE. AsiaChinaPacificEuropeNorth America

Middle East

Transition economies

South Asia

Latin America

0

100

200

300

400

500

600

700

800

900

$ bi

llion

(200

0 do

llars

)

IEA projections of global power station

build to 2030

Capacity

Investment

IEA World Energy Outlook 2003

Continuing reliance on fossil fuels– especially likes of China and India

Reinforced by IEA WEO 2004


0

20

40

60

80

100

120

140

1 6 11 16 21 26 31 36 41 46

OthersHydroNuclearConventional SteamGas Plant (GT & CC)

Age ofPower Plant

Source: UDI, BD/MI

GW 1054 GW >= 30 Years

1%

30%

3%

61%

5%Tot. Installed 2002 : 3791 GW

GW Volume of plants reaching 40 years of age, by year:

Average 35 GW / a

0

10

20

30

40

50

60

2000

2001

2002

2003

2004

2005

2006

2007

LAMMEAChinaAsiaNorth America

Europe

Installed Base Capacity -Aging Fleet

• Over 1/4 of world-wide capacity is more than 30 years old

….. a lot in the developed world


Power rationing threatens UK industry

Security of Supply

THE SUNDAY TIMES 24/August/03

Increasing concerns regarding supplyIncreasing concerns regarding supplyincreasing concerns regarding supplyincreasing concerns regarding supply


Environment

– Short term : Kyoto 2008-12 proving hard to meet?

Guardian Dec03

Environmental Implications

importance of environment as a driverimportance of environment as a driver

1Oct04

– Tighter regulation : EC Large CombustionPlant Directive

– Impact of Emission Trading : launch Jan/05

– Boost from Russian approval


1,9-58,3

-55,4-50,4

-28,7-27,4

-23,4-20,9

-7,4-6,3-6,1

-1,91,7

3,54,2

6,66,8

11,511,8

12,916,3

21,124,8

30,4

1,4

17,010,9

8,6

-1,4

- 70 - 60 - 50 - 40 - 30 - 20 - 10 0 + 10 + 20 + 30 + 40

EU-15Latvia

LithuaniaEstoniaPoland

HungarySlovakia

Czech RepublicUnited Kingdom

GermanySwedenFrance

LuxembourgSlovenia

NetherlandsBelgiumFinlandGreece

DenmarkItaly

AustriaIreland

PortugalSpain

Percentage points below (-) or above (+) linear target path

DTI 2002 DTI 2002 with use of Kyoto mechanisms


Kyoto Burden Share andEU-25 Trade under EU

Emissions Trading Scheme

Effectively a zero net gain in COEffectively a zero net gain in CO22 reduction for EUreduction for EU--2525

Courtesy of EC


Environment– Longer term : 60% GHG reductions by 2050?


importance of environment as a driverimportance of environment as a driver

– Importanceof engagingEmergingMarket Economies?

0

1 0 0 0

2 0 0 0

3 0 0 0

4 0 0 0

5 0 0 0

6 0 0 0

7 0 0 0

8 0 0 0

9 0 0 0

1 0 0 0 0

1 9 9 0 2 0 0 0 2 0 1 0 2 0 2 0 2 0 3 0

Mt o

f CO

2

E u ro p e a n U n io n E U & A c c e s s io n C o u n t rie sU S A B ra z i lIn d ia C h in aJa p a n

Forecasted CO2 IncreasesSource: EC/EEA, 2004


All measures will be required– different solutions in different parts of the world

No one single winning technology– complementary actions

Broad portfolio approach necessary– energy efficiency, REN, fossil, nuclear

Development of energy technology will be essential

Clean use of fossil fuels : a critical transition for decades yet in getting to a

sustainable energy future

`Helicopter` Viewpoint


STRATEGY FOR CLEAN FOSSIL FUELS

A full Carbon Abatement Technology approach


Strategic Trajectories

CarbonReduction

Time

ÌncreasedEfficiency`Trajectory

`Zero Emissions`Trajectory

Near-term Mid-term Long-term

High efficiency combined with `Capture ready` concept?

Value of CO2?Geography?

Flexible strategy to cover uncertain future


Carbon Management Strategy for Fossil Fuels

Must be developed with the following in mind– Long term time frame : out to 2030 and beyond– Technology needs to be ìn-tune` with market to engage investors– Needs of different markets and countries

Must embrace non-technical issues as well as

technical

Research and Technology

Validation of Technology

CO2 Protocol, Legal, Health, Safety, Perception,..

2010 2020 2030LighthouseProjects

Non technicalissues

Technology

Increasing complexity in-tune with market development

Must contain the overall approach of– Increased efficiency, fuel flexibility and re-powering– Near-zero emission with CO2 capture and storage– Link to Hydrogen issues or long term sustainable `vision`

Must include aspects of– Research and technology development– Component and system validation– Demonstration/`Lighthouse` Projects– Deployment mechanism


Clean Fossil Fuel Technologies firmly established as key component of carbon reduction strategy

– 18% reduction in Carbon Intensity by 2012, backed by RTD and D initiatives in fossil fuels

– Clean Coal Plant Improvement programme : 2b US$ over next decade– `Futuregen` Project launched with 1b US$, 80% from USDOE : electricity

and hydrogen plant with CO2 sequestration – CO2 Capture and Storage budget for 2004 requested at ~50m US$ from a

`zero` position less than 5 years ago with US regional networks established

“Snap Shot” of US Position

Strong competition from USA on world marketsStrong competition from USA on world markets

US Co-operative Initiatives- Carbon Sequestration Leadership Forum [CSLF] : started

in June/03 involving now 16 countries plus EC- complementary to International Partnership for an

Hydrogen Economy [IPHE]


European Countries– Germany : new

COORETEC action addressing fossil fuels

“Snap shot” of European Position

Increasingly strong EU interest in Carbon AbatementIncreasingly strong EU interest in Carbon Abatement

European Commission/EU– EC Framework 6 (2003-2006) Theme of “CO2 Capture and Storage associated with Clean Power Generation from Fossil Fuels”

………importantly FP7 now being addressed

2010 2020 2030 .... 2050 TimeM

id-te

rmLo

ng-te

rm

decentralized

VisionCombined

C+H Economy

Pressurized Conceptsη = 55%

Good Economics

Gasification Concepts with CO2 Capture

η > 50%

Fuel Cell with Micro Gas Turbine

STC η = 50%GTCC η = 65%

Shor

t-ter

m STC η = 55%GTCC η = 70%

Priority CO2 Capture

Priority Economics

centralized

Power PlantClose to

Zero Emissions

– UK : CAT strategy for fossil fuels planned forearly 2005

– Other Member Statesaddressing CAT issues


• Some other Country Actions outside Europe- Australia : CO2 Capture and Storage TRM, COAL21- Canada : Canadian Clean Power Coalition, Coal TRM

• Other relevant International Initiatives- IEA : GHG RTD and Clean Coal Centre- IEA : Working party on Fossil Fuels- CCP : Carbon Capture Project of Òil Majors`; continuation phase into most likely cost-effective capture technologies

Other Country Actions


• Some other Country Actions outside Europe- Australia : CO2 Capture and Storage TRM, COAL21- Canada : Canadian Clean Power Coalition, Coal TRM

• Other relevant International Initiatives- IEA : GHG RTD and Clean Coal Centre- IEA : Working party on Fossil Fuels- CCP : Carbon Capture Project of Òil Majors`; continuation phase into most likely cost-effective capture technologies

Other Country Actions

Backed by new Australian Energy fund ~500m A$ launched in Jun/04 out to 2020


CO2 Protocol and related issues

Part of an overall strategic framework addressing clean fossil fuels as a key element of a sustainable energy portfolio

Improve EfficiencyZero Emission including CO2

Capture

Transport and storage

of CO2

Fuels Cells

Use of CO2eg EOR

Fuel Cell and Hydrogen Initiatives

Clean Fossil Fuel

InitiativesHydrogen

IPHECSLF

International Strategic Fit


AN INDUSTRY TECHNOLOGY POSITION

What is happening in industry?

An illustration of some of ALSTOM Power activities

• efficiency improvements

• fuel switch/retrofitting/repowering

• zero emission


50 %32 %

12 %

16 %41 %76 %

34 %27 %12 %

0%

20%

40%

60%

80%

100%

120%

1 2 3

O & M costs

Fuel costs

Capital costs

Natural gas CC Coal-fired Nuclear

100 %Cost ofelectricity

Coal: Balanced cost structureNatural Gas: Dependence on the fuel priceNuclear: High capital costs share

Structure of the Cost of Electricity

Cost Remains Important

001 750p Source: VGB 4/2001, p. 27 -31

Different situations exist

in different countries


CCT CO2 Mitigation

100% coal

◄ Thermie Ultimo

◄ Thermie SR

◄ Average Europe

◄ Reference plant

10% biomass

20% biomass

400

500

600

700

800

900

1000

1100

1200

25 30 35 40 45 50 55 60

Net efficiency (lhv, %)

CO

2 em

issi

on (g

/kW

h)

% biomass on LHV

Impact of Efficiency Improvement on CO2 Reduction


Retrofit Technology

Figure 8Test results of earlier retrofit to modernise 660MWunits (HHH sister units at Hinkley, Hartlepool and

H h )

Sustained increase in plant output/efficiency improvement


Brown Coal firedSupercritical Boilers

011 454p

± 0,0 m

+ 161,5 m

PS Schwarze Pumpe 2 x 800 MW

+ 167,5 m

± 0,0 m- 6,5 m

PS Niederaußem 1,000 MW


Plant Efficiency Development

001 758p

η Net

(NCV)

50

45

40

351970 1980 1990 2000 2010

Year

EC AD700

Shidongkou PRC 600 MWHemweg 8 NL 680 MWMeri Pori FIN 590 MWStaudinger/Rostock D 550 MWAmer 9 NL 650 MWEsbjerg DK 417 MWMai Liao TW 600 MWSchwarze Pumpe D 800 MWNiederaussem D 1,000 MWLippendorf D 930 MW

Shidongkou PRC 600 MWHemweg 8 NL 680 MWMeri Pori FIN 590 MWStaudinger/Rostock D 550 MWAmer 9 NL 650 MWEsbjerg DK 417 MWMai Liao TW 600 MWSchwarze Pumpe D 800 MWNiederaussem D 1,000 MWLippendorf D 930 MW

Double RHDouble RHAvedoere DK475 MWAvedoere DK475 MW

Skærbæk DKNordjylland DK413 MW

Skærbæk DKNordjylland DK413 MW


Gas Turbine Technology

Gas Turbine will be a key prime mover for 21st Century


CO2 Capture Options

• “Tail-end” CO2 captureadsorption/stripping processusing MEA, physical absorbents, ….

• Oxygen combustioninternal (membrane) or external(ASU) oxygen supply

• Novel/Pre-combustionIGCC based systemscarbonate capturechemical looping

Towards Zero Emissions at the right price

CirculatingFluidized Bed Boiler

O2

EOR

CO2N2

Air

Fuel• Pet. Coke• Coal• Biomass

Recirculation

Steam

Steam

CO2 cycle gasout

Flue Gasfromgas

turbine

CO2 depletedflue gas toheat recovery unit

CO2 cycle gasin

CO2 ab-/desorbingcoating

Heatinsulatingmaterial

Rotorcorematerial Element structure


Environmental Control

Low risk & proven key technologies & products

Largest installed base in air pollution control:– Over 60,000 MW in FGD (Flue Gas Desulferization)

– Over 28,000 MW in SCR (Selective Catalytic Reduction)

– Over 168,000 MW in Particulate Control

Active RTD programmes in all areas

Not just Carbon Dioxide - also SOx, NOx, Particulates …….


Some Concluding Remarks


Ùncertainty and Change` will continue– difficult to forecast future; no one single winning technology;

broad balanced portfolio approach– fossil fuels will continue to play a major role for decades yet– clean use of fossil will be a key transitional issue– impact of a real value for CO2 - Emission Trading/Tax

implications; market could change dramatically

Final Concluding Thoughts

2005 - a Year of Opportunity– UK will have leadership of G8 and the EU– real chance to influence on the European and world arena– importance of Global Climate Change– engagement of Emerging Market Economies

Innovation and continued technology development will be Innovation and continued technology development will be essential to meet complex demands of the futureessential to meet complex demands of the future

www.alstom.com

The Transition towards Zero Emission Power Generation ... · The Transition towards Zero Emission Power Generation - Technology Implications Nick Otter Director of Technology and

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