MayMay

3, 20103, 2010

Koichi SakamotoKoichi Sakamoto Deputy GM, IGCC & GasificationDeputy GM, IGCC & Gasification

Progress Update of Progress Update of MMHIHI AirAir--blown blown IGCC &IGCC & O2O2--blown Gasificationblown Gasification

Note: This document is the property of and contains confidential proprietary information of MITSUBISHI HEAVY INDUSTRIES, LTD. This document shall not be reproduced, used, disclosed or transmitted in whole or in part unless authorized in writing by MITSUBISHI HEAVY INDUSTRIES, LTD.

Photo : 250MW IGCC Demonstration Plant @Nakoso, Japan

11

• Air-Blown Gasifier with High Temp. GT for IGCC (i.e. for the Power) at the Highest Plant Efficiency and Economical Merits

Contribute to Both of the Power Generation and the Chemical Industries

Business Portfolio Business Portfolio

• O2-Blown Gasifier for Chemical Products (i.e. SNG, CTL, NH3, etc.) at the Minimum Utility Consumption Including Aux. Power

22

1980 1990 2000 20101985 1995 20051

10

100

1,000

5

50

500

5,000

Fuel

Cap

acity

(ton

/day

)

2t/d PDU (CRIEPI)

200t/d Pilot Plant(Nakoso)

Pilot Test Plant(MHI Nagasaki)

3,600t/d Commercial Plant

20202015

10,000

2025

AirAir--Blown GasifierBlown Gasifierfor IGCCfor IGCC

O2O2--Blown GasifierBlown Gasifier for Chemical Productsfor Chemical Products

MHI IGCC / GasificationMHI IGCC / Gasification Technology DevelopmentTechnology Development

1,700t/d / 250MWDemo. Plant

Clean Coal PowerR&D, Ltd.

500MW or MoreCommercial Plant

PDU : Process Development UnitCRIEPI : Central Research Institute of Electric Power Industry

33

• Minimum Utility Consumption by MHI O2-Blown Gasifier for Syngas Production

• Effective Utilization of By-Product like Discharged Molten Slag, Recovered Sulfur, etc.

• High Plant Efficiency by “G” Type High Temp. GT and High Reliability from Abundant “Low BTU Gas Firing” GT

Realizes the Lowest Cost with Various Advantages

• Flexibility for Variety of Coal Including Brown Coal Because of 2-Staged Dry Coal Feed and “Fine” Coal Pulverizing System

• Higher Reliability & Easier Maintainability with Membrane Waterwall Configuration

Features of MHI IGCC / GasifierFeatures of MHI IGCC / Gasifier

• Highest Plant Efficiency Because of Air-Blown Gasifier for IGCC

44

1. 2-Staged Gasification - Combustor / Reductor Configuration① Stable Syngas Production for Wide Variety

of Coal ② Smooth Slag Discharge Capability ③ No Necessity of Quench Gas

2. Char Recycling System ① Minimize Unburnt Carbon in Slag ② No Black Water from Gasifier

Chemical Quench (w/o Quench Gas) occurs at 2nd Stage

Temperature

Reductor

Combust or

１

２

Coal

HP SteamHP Steam

Syngas

CoalCombustor

Reductor

SGCSGCGasifierGasifier

Char

Air or O2

Same 2-Staged Gasifier as Air-Blown Nakoso IGCC Project Applied to O2-Blown- Without changing the basic design of the existing gasifier in operation - Reducing O2 consumption by 15-25% - SGC, as monolithic structure with gasifier, producing steam and supplying aux. power

needed in plants

Features of MHI Features of MHI GasifierGasifier

55

•• Innovating Innovating Clean Coal TechnologyClean Coal Technology -- Heightening Thermal EfficiencyHeightening Thermal Efficiency -- Enhancing Commercialization of Enhancing Commercialization of CO2 CaptureCO2 Capture

•• Utilization of Low Grade Utilization of Low Grade -- High Moisture CoalHigh Moisture Coal (Discussion)(Discussion)

TopicsTopics –– Current Activity and Future PossibilityCurrent Activity and Future Possibility

•• Realization of Commercially Viable Realization of Commercially Viable ProjectsProjects

66

6

Gas Clean-Up

Gasifier

HRSG

GT / ST

NagasakiTakasago

Tokyo

Yokohama

Nakoso

Single Point Responsibility(EPC Turn-Key Contract)

METI

Clean Coal Power R&D Co., Ltd.

30% Subsidy

Hokkaido EPCo.Tohoku EPCo.Tokyo EPCo.Chubu EPCo.Hokuriku EPCo.Kansai EPCo.Chugoku EPCo.Shikoku EPCo.Kyushu EPCo.J-PowerCRIEPI

70%Contribution

Researchers

Ministry of Economy, Trade and Industry

MHI

Joint Project Agreement

Project is Going Project is Going on Scheduleon Schedule.. Operation Started September, 2007September, 2007.20102010200620062004200420022002 2008200820032003 2007200720052005 2009200920012001 20102010200620062004200420022002 2008200820032003 2007200720052005 2009200920012001

Design Construction (Construction (3636M)M) Operation

Current Status ofCurrent Status of 250MW IGCC Demonstration 250MW IGCC Demonstration ProjectProject

77

Targets & AccomplishmentTargets & Accomplishment

*

* 2.4%/min already achieved.

)

Current Status ofCurrent Status of 250MW IGCC Demonstration 250MW IGCC Demonstration ProjectProject

88Current Status ofCurrent Status of Australian ZeroGenAustralian ZeroGen ProjectProject

2008 2009 2010 2011 2012 2013 2014 2015 2016

Key Mile StonesKey Mile Stones

Project ScheduleProject Schedule

AwardPre-Study

Comm.FS Feed EPC

Scoping Study

AwardFS

CommencingFEED

ContractEPC

Start Commissioning COD

Pre- Study 8

HRSGHRSG

GASIFIERGASIFIER

GAS CLEAN UPGAS CLEAN UP

GT/STGT/ST

CoalCoal Australian Hard CoalAustralian Hard CoalOutputOutput 530 MWgross530 MWgrossGasifierGasifier Air Blown. Dry FeedAir Blown. Dry FeedGas TurbineGas Turbine M701G2 GT (1 on 1)M701G2 GT (1 on 1)Carbon CaptureCarbon Capture 6565--90%90%CO2 StorageCO2 Storage 22--3 Mil.ton/yr3 Mil.ton/yr

Principal Specification

99

2. CO2 Capture

IGCC: Integrated Gasification Combined Cycle

2025

Gro

ss T

herm

al E

ffici

ency

(LH

V%)

Gro

ss T

herm

al E

ffici

ency

(LH

V%)

40

45

50

55

60

65

70

1990 1995 2000 2005 2010 2015

USC(coal)USC(coal)USC(coal)

2020

NGCC (Natural Gas)

NGCCNGCC (Natural Gas)(Natural Gas)

IGCCIGCCIGCC

Ultra High temp. GT(1,700oC)

Ultra High temp. GTUltra High temp. GT(1,700(1,700ooCC))

J type GTJJ type type GTGT

1,700oC GT1,7001,700ooC C GTGT

Hot gas Clean-upSystem

Scenario of MHIScenario of MHI’’ss Clean Coal TechnologyClean Coal Technology InnovationInnovation

FuelFuel

COCO2 2 GenerationGeneration ((Power Station)Power Station)

COCO2 2 CaptureCapture

COCO2 2 TransportationTransportation(Pipe Line, etc)(Pipe Line, etc)

COCO2 2 StorageStorageOcean &

Underground

MHI High efficiencyMHI High efficiency Power PlantPower Plant

MHIMHICOCO22 Capture Capture technologytechnology----Low Energy Low Energy CaptureCapture

MHI High Pressure MHI High Pressure COCO22 Compressor Compressor for CCS Plantfor CCS Plant

1. Heightening Thermal Efficiency

IGFCIGFCIGFC

1010

Japan CCS Co., Ltd. started a “Feasibility Study on a Total System from Electric Power Generation to CO2 Storage,” as a part of the “Innovative Zero Emission Coal Gasification Electric Power Project” funded by NEDO in 2008.

Scheme of Scheme of CCS Demonstration at NakosoCCS Demonstration at Nakoso

Japan CCS Co., Ltd., founded in 2008 upon investment from 29 companies, including electric utility companies and oil companies.

TEPCO (Tokyo Electric Power Company) has been in charge to perform a study for CCS demonstration system at Nakoso IGCC site under the Feasibility Study.

Source: Japan CCS CO., Ltd. RITE CCS Workshop 2008http://www.nedo.go.jp/activities/portal/gaiyou/p08020/h21jisshi.pdf

1111

0

10

20

30

40

0 10 20 30 40

Total Moisture (wt%-as received)

Ash

(wt%

-as

drie

d)

Dry Feed

Current Technology forCurrent Technology for High Moisture CoalHigh Moisture Coal UtilizationUtilization

Expected Applicable ZoneMHIMHI’’s Gasification s Gasification

ExperienceExperience

Pulverizer Experience

Slurry Feed

Dry Feed system brings ;• High efficiency

- Low Heat Loss due to Moisture Free• Flexibility for variety of coal

- No need to make slurry ⇒

Advantageous to high moisture coal

Same Pulverizer as Conventional Boiler is used ;

• Proven by much experience in variety of coal

Demo.PlantDesign

Demo.PlantActualDemo.PlantActual

AirAir--BlownBlownO2O2--BlownBlown

PRB

Indonesian Lignite

Texas Lignite

Dakota Lignite

Near-future effort being made for more highly moistened coal

1212Scenario ofScenario of High Moisture CoalHigh Moisture Coal UtilizationUtilization

Synthesis (or other Chemical) Plant

GasifierPrePre--DryingDrying

Mine-mouth IGCC Mine-mouth Synfuel/Chemical Production

＋＋ ＋＋

Diesel Engine

GTCC

Indonesia(4.3 bil. ton)

Other Asia(41.9 bil. ton)

ChinaChina(114.5 (114.5 bilbil. ton). ton)

Russia(157.0 bil. ton)

India(56.5 bil. ton)

Australia(76.6 bil. ton)South AfricaSouth Africa

(48.0 (48.0 bilbil. ton). ton)

Other Africa(0.2 bil. ton)

Canada(6.6 bil. ton)

U.S.A(242.7 bil. ton)

Colombia(7.0 bil. ton)

Other South America

(9.3 bil. ton)World Total(844.1 bil. ton)

Bit.

Sub-Bit.

Lignite

PresentApplicability

Future Expanding

Europe(78.1 bil. ton)

Source : WEC Survey of Energy Resources 2008 BP Statistical Review of World Energy 2008

MHI Technology

High Moist. Coal : 41.2 bil.ton - Scenario of utilization -

PrePre--DryingDrying

＋＋

Synfuel NH3, etc.

1313

“Mitsubishi’s Contribution for

Energy and Environment Solutions”