S. Smouse 10/18/04

•• Please include the following attribution when Please include the following attribution when using any part of this presentation in a report, using any part of this presentation in a report, article, presentation, etc.article, presentation, etc.Presented by Presented by Scott M. Smouse, National , National Energy Technology Laboratory, Energy Technology Laboratory, at the at the 3rd US-China Clean Energy Workshop on October 18on October 18--19, 2004 at the National Research Center for 19, 2004 at the National Research Center for Coal & Energy, Morgantown, WV. This meeting Coal & Energy, Morgantown, WV. This meeting was sponsored by the NRCCE, the U.S. was sponsored by the NRCCE, the U.S. Department of Energy, and the U.S. China Department of Energy, and the U.S. China Energy & Environmental Technology Center.Energy & Environmental Technology Center.

Scott M. SmouseInternational Coordination

Team LeaderOffice of Technology Impacts

and International Coordination

U.S. Clean Coal Demonstration Program Overview

National Energy Technology Laboratory

3rd U.S.-China Clean Energy Workshop

October 18-19, 2004

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Clean Coal RD&D Technologies Address Near- and Long-Range Needs

• Short-term: keep existing fleet in service; prepare for transition −SO2, NOx, Hg−Plant Optimization & Control−Reduced Carbon Intensity

• Long-term: add near-zero emission energy plants −IGCC’s to market −USC & advanced materials−CO2 Capture & Storage−FC Turbine Hybrids

Rev. 071404

Roadmap can be found on NETL’s website:www.netl.doe.gov/coalpower

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U.S. DOE Clean Coal Demo Programs

• Clean Coal Technology (CCT) Program− 5 solicitations (1986-1993); $1.75 billion DOE− 231 proposals, 60 selections, 50 awards, 35 completed/active

• Power Plant Improvement Initiative (PPII)− 1 solicitation (2000); $47 million DOE− 24 proposals, 8 selections, 6 active, 4 awards

• Clean Coal Power Initiative (CCPI)− 4 or 5 solicitations (2001-?); $2 billion DOE− CCPI-I: 36 proposals, 8 selections, 6 active, 4 awards− CCPI-II: 13 proposals; selection soon

Cooperative, cost-shared programs between government & industry to:

(1) demonstrate emerging coal power generation technologies(2) accelerate technology deployment to commercial use

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• Five competitive solicitations, 1985 - 1993• US$1.5B DOE and US$3.2B industry cost share

Clean Coal Technology Program

Power generationEnvironmental controlCoal processingIndustrial applications

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Tampa ElectricIGCC Power Plant

Low-NOx Burners

Advanced Pollution Controls• Now installed on 75% of U.S. coal plants• 1/2 to 1/10 costs of older systems

CCT Program Success Stories

PSI Energy Wabash River IGCC Power Plant

Proven Advanced Coal Power Systems

• 2 “super-clean” coal-based IGCC plants operating reliably

• World’s largest CFBC power plant

JEA CFBC Power Plant

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USDOE-China MOST Fossil Energy ProtocolAnnex IV: Energy and Environmental TechnologiesLow-NOx Combustion and SO2 Control Workshops• Chinese Counterpart: National Power Plant Combustion

Engineering Research Center (NPCC)• 4-day workshop with expanded (1.5 hr/presentation)

format for U.S. companies to introduce their technologies• Status

− completed November 4-7, 2003, in Shenyang, PRC − over 40 representatives from 12 U.S. companies + EPRI − over 80 Chinese representatives from MOST, China State EPA,

Chinese power groups and power plants, provincial environmental bureaus, and environmental engineering and equipment manufacturing companies

− strong interest by both U.S. and Chinese participants to repeat workshop in late 2004-early 2005, possibly in different location

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Flue Gas Desulfurization (FGD) Technology Briefing• Chinese Counterpart: State Power Corp.• 2 weeks of training on U.S. wet limestone FGD practices

− specification, design, and procurement practices (Parsons)− operations & maintenance (O&M) practices (URS Corp.)

• Status− Completed training in September 2003 (Beijing and Chongqing)

• 75-100 Chinese participants for each week of training− Developing new briefing focused at expert level to be delivered in

early 2005• U.S. FGD Technology Manual delivered mid-2004

− update and expand existing USEPA manual with information on additional/new technologies, new cost information, information on available FGD economic models, and vendor contact information

USDOE-China MOST Fossil Energy ProtocolAnnex I: Advanced Power Systems

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De-NOx Study• Chinese Counterpart: National Power Plant Combustion

Engineering Research Center (NPCC)• U.S. consultants (ARCADIS and Andover Technologies) to

analyze cost, performance, and reliability of U.S. post-combustion NOx control technologies applied to Chinese coal power plants

• Jointly funded by NETL and U.S.-China Energy and Environmental Technology Center (EETC)

• Based on 2 case studies: China Power Investment’s new 2 x 600-MW Kanshan ultrasupercritical plant and existing 200-MW subcritical plant

• Coordinate with TDA’s $304K feasibility study to select best NOxcontrol option for Zhejiang Energy Group’s Beilun power plant

USDOE-China MOST Fossil Energy ProtocolAnnex IV: Energy and Environmental Technologies

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USDOE-China MOST Fossil Energy ProtocolAnnex I: Advanced Power Systems

IGCC Technology Briefing• Chinese Counterparts: State Power Corp., Huabei Design

Institute, Yantai Power Plant, Shandong Power Group, Thermal Power Research Institute, Electric Power Planning & Engineering Institute

• Provide information on IGCC operations and performance to aid in selecting technology for proposed 300-MW Yantai IGCC Project

• IGCC Briefings for 11 Chinese Participants (June 2002)− Southern Company Service’s Power System Development Facility

(PSDF, Wilsonville, AL)− Tampa Electric Company’s Polk Station IGCC (Tampa, FL)

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• Objective: Develop near-term technological solutions to increase performance of existing coal-fired power generating facilities

• Funded through Congress mandated redirection of US$95 million from CCT Program in FY-2001

• 24 Proposals Received• 8 Proposals Selected Valued >US$110 million

− US$55 million Industry + US$47 million DOE− two proposals withdrawn by participants− 4 Cooperative Agreements awarded + 2 under negotiation

Power Plant Improvement Initiative (PPII)

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PPII Projects

CONSOL EnergyMulti-PollutantControl System

$14.5 Million - DOE$18.3 Million - Consol

Sunflower Electric PowerNOx Reduction

$2.8 Million - DOE$3.0 Million - Sunflower

Tampa ElectricNeural Network Control

$0.9 Million - DOE$1.5 Million - Tampa

TIAXHybrid Pollution Control

$15 Million - DOE$15.6 Million - TIAX

Otter Tail Power Co.Fly Ash Capture

$6.5 Million - DOE$6.9 Million - Otter

Universal Aggregates LLCSludge Utilization$7.2 Million - DOE

$10.8 Million - Universal

Cooperative Agreements Awarded to Date Delayed

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Otter Tail PowerDemonstration of Full-Scale Retrofit

of Advanced Hybrid Particulate Collector

• Potential to collect 99.9999% of fine (0.01-50 micron) particulate, and associated heavy metals

• Technology originally developed by UND EERC• Previously tested at 2.5-MW slipstream at Big Stone Plant

burning subbituminous PRB coal• Results to date:

excellent particulate control even at the smallest sizes, but pressure drop has been a problem 450-MW Big Stone Plant

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Tampa ElectricBig Bend Power Station Neural Network

Sootblower Optimization• Optimize sootblower operation at 445-MW p.c. unit using

Pegasus neural network software system integrated in plant’s distributed control system

• Expected to improve heat rate by 2%, reduce NOxemission by up to 30%, and reduce particulate emissions by up to 5%

445-MW Big Bend Power Station

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Universal AggregatesCommercial Demonstration of Manufactured Aggregate

Processing Technology Utilizing Sprayer Dryer Ash

• Joint venture between CONSOL and SynAggs, LLC for demonstration at 250-MW Birchwood Power Facility

• Convert spray dryer ash into lightweight building materials• Can be used for both wet or dry FGD byproducts or flyash• Aims to increase FGD byproduct utilization in U.S. from

current levels (30% of wet and 40% of dry)

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CCPI Program StatusRound 1

• January 2003 – 8 of 36 proposals selected−Power generation−Co-production−Multi-pollutant emissions control−Advanced control systems & by-product

utilization

• Total value: US$1.35 billion−DOE share: US$317 million (24%)− Industry share: US$1.03 billion (76%)

CCPI supports President’s

National Coal Policy

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NeuCo, Inc. Integrated Optimization Software

$8M – DOE $10M – NeuCo

Projects in CCPI – Round 1Great River Energy

Lignite Fuel Enhancement$11M – DOE$11M – GRE

U. of Kentucky Research FoundationMulti-Product Coal Utilization

$4M – DOE $5M – UK

Western GreenbrierClean Coal Co-Production

$107M – DOE $107M – WGC

Wisconsin Electric Power Co.TOXECON Multi-Pollutant Control

$25M – DOE $25M – WEP

WMPI PTY., LLC Coal-to-Clean Fuels and Power

$100M – DOE $512M – WMPI

Rev. 071404

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Western Greenbrier Co-Generation, LLC• 85-MWe CFB combustor with advanced multi-pollutant control

Gob Pile

Reclaimed Land

Eco Park

• Anchor tenant in environmentally balanced industrial “Eco Park”

• Funding: US$215 million (US$107 million DOE)

– 1610 tons/day waste coal + 220 tons/day coal– 300 tons/day of structural bricks and beneficial ash

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• Improved industrial ecology−Hot water for district heating −Steam for hardwood drying in adjacent mill

• Remediation of WV’s largest gob (waste coal) pile (total of 400 million tons throughout state)

• Use alkaline ash to remediate acid mine drainage, presently costing state $300,000/yr

• High-quality, long-term employment at plant and Eco Park

• Successful integration of these technologies and development of this facility can serve as model for waste coal remediation in U.S. and abroad

Potential Benefits

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Great River EnergyIncreasing Power Plant Efficiency – Lignite Fuel Enhancement• 2-stage fluidized bed dryer system using waste heat • Applicable to power plants burning inherently high-moisture coals • Full-scale test on 546-MW units at Coal Creek Station• Funding: $25.6 million ($11 million DOE)

Coal Creek Station Underwood, ND

Lignite Coal

Coal Creek Station

Hopper

Two-Stage Fluidized Bed Dryer System using Waste Heat

To Boiler

Cyclone

Fluidized Bed 2

Feeder

Wet Coal

Baghouse

Fluidized Bed 1

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• Improve efficiency of power plants burning high-moisture coals38% (as received) 29.5% (after processing) = +2.8% efficiency increase

• Reduce emissions:− Less coal is burned to produce same amount of power,

resulting in less SO2, NOx, Hg, CO2, and flyash emissions• Important to U.S. utilities because plants burning low-

rank coal represent more than half of country’s coal generating capacity

– 29 plants burn lignite (15.3 GW)– 150 plants burn Powder River Basin (PRB) subbituminous

coal (> 150 GW)

Potential Benefits

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Potential Benefits• Significant economic benefit at estimated savings of

US$0.70 per MWh:− US$3 million/yr for Coal Creek Station− US$84 million/yr for all U.S. lignite units− US$840 million/yr for all U.S. PRB units

• Improved economics for lignite-fired power plants− lower O&M costs− increased generation capacity− better performance− increased reliability

• Increased value and use of nation’s low-rank coal reserves

Benefits Analysis www.NETL.DOE.GOV/coalpower/CCPI/Index.html

} Total Possible Savings of

~US$1 billion/yr

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NeuCo, Inc.• Integrated Optimization Software to reduce emissions, increase

efficiency, and increase reliability• 5 Optimization Modules: cyclone combustion, sootblowing, SCR

operations, performance, and profit optimization• Demonstration at Dynegy Midwest Generation’s Baldwin Energy

Complex 3 x 600 MW units• Funding: $19.1 million ($8.6 million DOE)

Dynegy Midwest Generation’s Baldwin Energy Complex

NeuCo’s Integrated Optimization Software Strategy

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PRB Coal

Waste Management and Processors Inc.(WMPI PTY., LLC)

• 1st U.S. power plant to gasify waste coal and low-value fuels to produce electricity, thermal energy, and liquid fuels

• Unique integration of technologies to convert 4,700 tpd of coal waste into 41 MW of clean power and 5,000 bpd of ultra-clean transportation fuels

• Funding: US$612 million (US$100 million DOE)

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• Long-standing problem with existing coal waste piles and operating mine wastes significantly reduced (~1 M tons/yr of waste coal to be processed at Gilberton)

• Process flexibility allows use of coal, coal wastes, petroleum coke, or biomass, alone or as blends

• FT process produces ultra-clean transportation fuels containing no sulfur or aromatics:− High-cetane diesel fuel − Naphtha - can be upgraded to clean-burning reformulated

gasoline and is excellent feed-stock for olefin production or reforming feed for fuel cells

• Technology could be applied across U.S., and in other countries, enabling land reclamation on a broad scale and move one step closer to energy independence

Potential Benefits

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Tentative Priority TechnologiesFuture CCPI Rounds

Technologies For Zero-Carbon

Emission Plants

• Advanced Power Technologies− Improved efficiency/lower capital cost−Sequestration friendly

• Sequestration

Technologies for Clear

SkiesCompliance

• Emission control−Mercury−NOX

Round 2 Round 3 Round 4 Program Goals

Round 2 Closed on June 15, 2004Rev. 071404Round 2 Final Solicitation Closed on February 13, 2004

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Response to CCPI-II Solicitation

• 13 applications received (February 13, 2004)• Proposed DOE cost share: ~ $1 billion • Proposed Participant cost share: ~ $ 5 billion• Key technology areas:

− Gasification: IGCC power generation− Gasification: co-production: H2, diesel, naphtha− Mercury and multi-pollutant emissions control

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13 CCPI-II Applications

Clear Stack CombustionAdv. Comb. / Mulit-pollutant

$13.1 M – Total $6.6 M – DOE

AK Cowboy Coal PowerFB Dryer / Upgraded LRC

$37.4 M – Total$16.6 M – DOE

Pegasus Adv Sensor/ Optimization

Hg / Multi-pollutant$12.2 M – Total$6.1 M – DOE

Southern . CompanyIGCC-Transport Gasifier

$557 M – Total$235 M – DOE

Peabody EnergyAirborne Process

FGD/Fertilizer$78.9 M – Total$19.5 M – DOE

Breen Energy SolutionsNOx/CO/Hg Control

$27.3 M – Total$13.7 M – DOE

NeuCo, Inc. Integrated Adv. Opt. Software

$12.6 M – Total$6.3 M – DOE

Fuel Cell EnergyFuel Cell / Turbine Hybrid

$53.3 M – Total$26.6 M – DOE

Basin ElectricHybrid Gasification/Combined Cycle$756 M – Total $140 M – DOE

EnviResIGCC/H2

$254 M – Total $127 M – DOE

Excelsior EnergyIGCC

$1,185 M – Total $150 M – DOE

Medicine Bow F&PIGCC/Liquid

$2,759 M – Total $200 M – DOE

Minnesota PowerIGCC/CoGen

$120 M – Total $50 M – DOE

Gasification Based

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• CCPI is…..−Part of DOE’s integrated coal & power RD&D strategy spanning

laboratory-scale experiments to full-scale demonstrations−Key element in President’s National Energy Policy

• Supports Presidential initiatives in Clear Skies, Climate Change, FutureGen, Hydrogen, and Sequestration

• Provides path forward to use coal in potential future carbon-constrained world

• Builds on earlier CCT and PPII Programs• Round 1 underway with resultsexpected soon

• Future rounds will target priority technologies to meet roadmap goals

Closing Comments on CCPI

S. Smouse 10/18/04

• Coal must play a key role in securing healthy U.S. economy− Recognized in Presidential-level initiatives: Clear Skies,

Climate Change, FutureGen, Hydrogen, Sequestration• Regulatory uncertainty improving (e.g., NSR)

− New coal plants needed soon.− What kind will we build?

• Must maximize existing fleet performance as bridge to the future

• CCT Roadmap charts challenging but “doable” path forward for coal− best ideas and projects needed− sustain Federal and private sector investments

Closing Comments

Rev. 061404