Presentation toAPPA Climate Change Task Force

Oct. 17, 2006

FutureGen and Technology Challenges for Climate Change

Michael J. MuddChief Executive Officer

FutureGen Industrial Alliance

GasifierGasifier

Coal, Water and OxygenCoal, Water and Oxygen

Sulfur RemovalSulfur Removal

Solids and Co-ProductsSolids and Co-ProductsSulfurSulfur

Clean SyngasClean Syngas

Other Chemical ProductsOther Chemical Products

ElectricityElectricity

ElectricityElectricity

SteamSteam

WaterWater

Cooling WaterCooling WaterAirAir

Advantages of IGCC• Potential for lower emissions and higher efficiencies

• Allows coal to benefit from gas turbine technology improvements

• Easier to permit than new pulverized coal

• Versatile - feedstock flexibility and multiple products (electricity, chemicals - including hydrogen, transportation fuel, or "synthetic" natural gas)

• Potential to reduce incremental cost of CO2 capture

Advantages of IGCC• Potential for lower emissions and higher efficiencies

• Allows coal to benefit from gas turbine technology improvements

• Easier to permit than new pulverized coal

• Versatile - feedstock flexibility and multiple products (electricity, chemicals - including hydrogen, transportation fuel, or "synthetic" natural gas)

• Potential to reduce incremental cost of CO2 capture

IGCC: Innovative Technology

Transitioning from NGCC to IGCC Adds Cost and Complexity

CombinedCycle

GASTURBINE

STEAMTURBINE

CONDENSER

TO STACK

HP, SUPERHEATEDSTEAMCONDENSATE

Heat Recovery Steam GeneratorCO

CA

TALY

ST

SC

R

POWER

Natural gas

POWER

TRIG™ Simplified Flow Diagram

CombinedCycle

GASTURBINE

STEAMTURBINE

CONDENSER

TO STACK

HP, SUPERHEATEDSTEAMCONDENSATE

Heat Recovery Steam GeneratorCO

CA

TALY

ST

SC

R

POWER

POWER

GasifierIsland

COAL PILE

PROCESSAIR

COMPRESSOR

PARTICULATECOLLECTION

HIGHTEMPERATURE

SYNGASCOOLING

LOWTEMPERATURE

SYNGASCOOLING

SULFURREMOVAL AND

RECOVERY

COALMILLING &DRYING

HIGHPRESSURE

COALFEEDING

SOURWATER

TREATMENT

AMMONIARECOVERY

SYNGASRECYCLE

SYNGAS

SYNGAS

SYNGAS

VENT GASANHYDROUS

AMMONIA

SULFURSYNGAS

G-ASH HP BFW

HP STEAM

MERCURYREMOVAL

TRANSPORTGASIFIER

AIR

F-ASH

EXTRACTION AIR

GasifierIsland

CombinedCycle

COAL PILE

PROCESSAIR

COMPRESSOR

PARTICULATECOLLECTION

HIGHTEMPERATURE

SYNGASCOOLING

CO2 and SULFURREMOVAL AND

RECOVERY

COALMILLING &DRYING

HIGHPRESSURE

COALFEEDING

SOURWATER

TREATMENT

AMMONIARECOVERY

GASRECYCLE

GASTURBINE

STEAMTURBINE

LOWTEMPERATURE

GASCOOLING

CONDENSER

SYNGAS

Hydrogen/ Nitrogen

EXTRACTION AIR

VENT GASANHYDROUS

AMMONIA

SULFUR

GAS

G-ASH

G-ASH

HP BFW

HP STEAM

TO STACK

HP, SUPERHEATEDSTEAMCONDENSATE

MERCURYREMOVAL

TRANSPORTGASIFIER

AIR

Heat Recovery Steam GeneratorCO

CA

TALY

ST

SC

R

POWER

POWER

F-ASH

WATER GASSHIFT

REACTION

CO2

TRIGTM with Carbon Separation Technology Added

Coal Gasification to Produce SNG(North Dakota)

Petcoke Gasification to Produce H2

(Kansas)

Sour

ce:

Dak

ota

Gas

ifica

tion

Sour

ce:

Che

vron

-Tex

aco

Examples of Syngas CO2 Capture Systems

CO2 Storage

Variety of Reservoir Types

Courtesy of Peter Cook, CO2CRC

Commercialization Pathway

ExistingCommercial IGCC

IGCC w/CarbonCapture & Storage

Challenges: …………..

1. Verify Capex / OpEx2. Prove electricity costs3. Validate design decisions4. Verify operability

Carbon CaptureChallenges:

1. Incremental Capex and OpEx costs

2. Additional design andoperational complexity

Sequestration Challenges:

1. Uncertainty in sequestration science

2. Permitting and compliance for long-term.

AEP IGCC PlantFutureGen

• Commercial-scale, 275-MWe Plant

• Minimum of 1 million tons/year CO2 captured and sequestered

• Production of electricity from hydrogen• “Living laboratory” to test and validate cutting-edge

technologies• Public-private partnership• Stakeholder involvement• International participation

FutureGen ProjectKey Features

FutureGen Project Benefits

• Supports a technology-based climate change strategy

– Mitigates the financial risks of climate change

• Validates the cost and performance of an integrated near-zero emission coal-fueled power plant

– Advances IGCC technology

– Advances carbon capture, sequestration, and hydrogen-production technologies

– Sets groundwork for CO2 sequestration siting and licensing

• Creates the technical basis to retain coal U.S. energy mix with a long-term goal of zero emissions

• Enables the public and private sector to share the cost and risk of advanced technology demonstration

– Platform for emerging technology demonstration

The FutureGen Alliance

• An international, non-profit consortium of some of the largest coal and utility companies in the world

• Partnering with US Department of Energy to design, construct and operate the facility

FutureGen Site Selection Underway

12 Sites in 7 States

C. Davidson 2006

Candidate Sites

FutureGen ProjectAddress the Technology Challenges

• Establish the technical, economic, and environmental viability of near-zero emission coal plants by 2015; thus, creating the option for multiple commercial deployments by 2020

• Adopting aggressive goals:

– Sequester >90% CO2 with potential for ~100%

– Extensive control of other emissions

• >99% sulfur removal

• <0.05 lb/mmbtu NOx

• <0.005 lb/mmbtu PM

• >90% Hg removal

– Integrate new equipment, yet achieve commercial availability

– With potential for a Nth plant commercial cost no more than 10% greater than that of a conventional power plant

FutureGenIndustry’s View of the Facility

Air

Advanced Electricity

Generation

Research “User Facility”

Advanced Gas Clean-Up

SyngasSyngas CO2H2

Advanced CO2 separation

O2 SyngasSyngas H2CO2Coal

Air

Slag

AirSeparation

UnitGasification Gas Clean-Up**

CO2 Separation**

ElectricityGeneration**

Transportation and

other H2 uses

CO2 Sequestration &

Monitoring

Electricity/Hydrogen Generation “Backbone” with CO2 Sequestration/Monitoring System

Advanced Oxygen

Separation

**Candidate for Multiple Technology Upgrades over FutureGen’s Lifetime.

Other Technologies

Electricity,H2, or

other Products

Advanced Coal

Conversion

Full-Scale Gasification

Research Platform

Sequestration

Sub-scaleResearch

User Facility

POWER

H2

POWER

• Requires diffusion type burner due to H2 flame speed• Operations will require fuel flexibility

H2, syngas, NG

• 15 ppm NOx is achievable with H2 / diluent Will need SCR

• Combustor technology improvements needed:– Fuel flexibility– Catalytic & premix based combustion

H2 / N2 Flame

Hydrogen Combustion Is Challenging

Gen

H2 / Diluent 24%

Air - 100%

Gas Turbine

Natural Gas 2%NG Exhaust 102%

H2 Exhaust 124%

Hydrogen Fuel Affects Gas Turbine Operations

• Gas turbines are 'mass flow' machines– More mass throughput = more power – Current design geometries based on NG

• Fuel input is part of total mass flow through hot section

– Changing from NG to H2 affects flows and output

– H2 / Diluent has higher mass flow

– Unbalanced mass flow in turbine section can impact compressor stability

• Turbine impacts of H2 firing:

– Higher H20 in exhaust reduces life

– Requires reduced firing temperatures (lost efficiency)

Other Required Process Operations

• Water Gas Shift Reactors– convert CO in syngas to

CO2 and H2

Syngas in

Absorption at processpressure

CO2-lean solvent

Pure CO2

Steam

Clean gas out

CO2-rich solvent

Regeneration T/P depends on solvent properties

Compression

~830°F

~550°F

~555°F

~600°F

~550°F

~550°F

Syngas in

water quench or steam addition

CO + H2O CO2 + H2

COS + H2O CO2 + H2S

• Carbon Separation Equipment– remove CO2 and H2S

from H2

+53%+38%+63%Cost of

Electricity

-20 to 25%-18% to 22%-30% to 35%Efficiency

+85% to 90%+30% to 40%+65% to 75%Capital Cost

NGCCIGCCPulverized Coal

Impact of Adding CO2 Capture

CO2 Capture - Eastern Coal

Carbon capture (“scrubbing”) is a difficult and expensive process:– CO2 is a very stable molecule– CO2 concentration is very low

in flue gases– Amine processes (MEA) are

the only currently proven approach - high capital cost

– A large amount of steam is required to regenerate the amine (strip the CO2 from the “carbon getter”) – large efficiency penalty

0

500

1000

1500

2000

2500

PC w/o CO2 PC w/CO2 IGCC w/oCO2 IGCC w/CO2

Capital Cost$/kW Heat Rate x10 (BTU/kWh)

Source: AEP , EPRI, and US DOE

3000

IGCC RD&D Implementation Path for Cost Reduction Case: Slurry-fed gasifier, Pittsburgh #8 coal, 90% availability, 90% CO2 capture, 2Q 2005 dollars

1200

1400

1600

1800

2000

2200

2005 2010 2015 2020 2025 2030

Near-Term • Add SCR• Eliminate

spare gasifier• F-class to

G-class CTs• Improved Hg

Detection

Mid-Term• ITM Oxygen• G-Class to H-class

CTs• Supercritical HRSG• CO2-Coal Slurry• Dry Ultra-low-NOX

combustorsLong-Term• Membrane

separation• Warm gas

cleanup

Longest-Term• Fuel cell

hybrids

To

tal P

lan

t C

ost

($/

kW)

Courtesy EPRI

IGCC RD&D Implementation Path for Efficiency Improvement Case: Slurry-fed gasifier, Pittsburgh #8 coal,

90% availability, 90% CO2 capture, 2Q 2005 dollars

30

32

34

36

38

40

2005 2010 2015 2020 2025 2030

Near-Term • Add SCR• Eliminate

spare gasifier• F-class to

G-class CTs• Improved Hg

Detection

Mid-Term• ITM Oxygen• G-Class to H-class

CTs• Supercritical HRSG• CO2-Coal Slurry• Dry Ultra-low-NOX

combustorsLong-Term• Membrane

separation• Warm gas

cleanup

Longest-Term• Fuel cell

hybrids

Pla

nt

Net

Eff

icie

ncy

(H

HV

)

Courtesy EPRI

FutureGenProject Schedule

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Alliance Established

Full Scale Plant Operations

Siting, Environmental Review & Permitting

Project Structuring and Conceptual Design

Design

Facility Construction

Plant Startup

Summary – Issues to address

• Barriers to commercialization of CCS

– Cost Penalty CO2 Capture

– Efficiency Penalty of CO2 Capture

– Need to prove integration of CCS systems

– Need to conduct meaningful injections (>1MTPY)

– Need to provide liability protection for first several projects

The FutureGen project is addressing many of these issues