Future of Gas for Power Generation Workshop

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June 14, 2004 IEA, IGU Joint Workshop, Paris Tony Kaiser Introduction EU Turbines - a newly launched association for the voice of European Gas and Steam Turbine manufacturers and a partner to discuss R&D and policy issues CO2 policy and regulation – impact on investment behaviour Press Conference European Association of Gas and Steam Turbine Manufacturers Barcelona, May 26, 2004 Presence in Europe General Secretary Dr. Claudia Weise Lyoner Strasse 18 60528 Frankfurt am Main, Germany Phone +49 69 66 03 - 17 48 Fax +49 69 66 03 - 15 66 President Gérard Brunel Lyoner Strasse 18 60528 Frankfurt am Main, Germany Manager European Affairs Udo Kremer Diamant Building, Boulevard A. Reyers 80 1030 Brussels, Belgium Phone +32 2 706 - 82 11 Fax +32 2 706 - 82 10 E-Mail claudia.weise@vdma.org E-Mail udo.kremer@mcm.be Founder Members Mission EUnited Turbines is the voice of the Gas and Steam Turbine Industry in Europe, bringing together the industry leaders. EUnited Turbines is the key contact to the European Union, representing the Turbine Manufacturers’ view on core issues such as energy, environmental and R&D policy. EUnited Turbines is the platform for co-operation between all stakeholders - from customers to universities. R&D Concepts for future Power Plant Technology 2050 Vision Zero emission power plant 2020 Time Scale Steam Turbine PP η = 55% HybridCombined Solutions Cycle η ≥ 65% Gasification Steam Turbine PP Air Fractionation η = 50% Oxyfuels Combined Cycle η ≥ 60% 2015 Prospects Confirmed Targets R&D Forecast Source: Federal Ministry of Economics and Labour Germany 2003 2010 Efficiency 2005 Priority: Reduction of Emissions Operating Efficiency CO2Separation Priority: Zero Emission Short-term Medium-term Long-term Turbo-Power for Europe Sustainable and long-term energy supply Gas and Steam Turbines are essential elements. form the basis for the world-wide power generation and oil & gas transportation. are the platform for renewable and conventional energy technology due to the capability of using all types of resources - from biomass to hydrogen, from gas to coal. have high potential to increase further process efficiency as they are the efficiency-critical component. Increase of process efficiency is the key to sustainable energy supply. saving resources results directly in CO2 reduction and economic benefit. is the key driver for competitiveness which is pre-requisite for acceptance of new technologies. Conventional energy sources (gas, coal or oil) will continue to be the major contributor to world energy supplies for decades yet- gas and steam turbines provide the most environmental-friendly, economic and effective conversion. Zero emission power is possible with conventional energy sources through an efficiency increase together with an intelligent carbon management strategy. Turbo-Power for Europe Sustainable and long-term energy supply Conclusions for R&D activities A critical mass European R&D activity for gas and steam turbines is essential for a sustainable and long-term energy supply. The research concept shall reflect the crucial role of process efficiency throughout Power Generation, Oil & Gas and Process Industries. By joint effort with the European Union, the European Gas and Steam Turbine Industry will maintain its world-wide technology leadership, enhance its global competitiveness and contribute significantly to the European CO2 reduction target. Regulatory Framework Power plants Long lifetime, huge investments Missing or unclear regulations - e.g. rules for CO2 trading - lead to Uncertainty in future CO2 cost Delayed investments, “boom-bust risk” Higher risk for investors Pressure on depreciation period, short pay back Potential risk to supply security Future Gas Supply Gas Quality Constant quality at low price levels? Fuel flexibility to mitigate commercial risks from volatile gas prices? GT technology will be available if gas suppliers and users talk to each other early and on a regular basis (EU Turbines) Increase of efficiency Power Plant Technology 70 65 Net efficiency [%] 60 55 50 45 40 35 2020 Gas & Oil fired Gas Turbine Gas & Oil fired Gas + Steam Turbine Target 2050 Status Gas + Steam Turbine Coal Gasification Coal-fired Steam Turbine Legend: 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 components plants Temperature [°C] Source: Federal Ministry of Economics and Labour Germany 2003 Our industry is innovative and solution-orientated. World-wide energy production Source: World Energy Council 1999 24.800 3% Renewables Hydro Nuclear Natural Gas Oil 24.000 Terra-Watt-hours (TWh) 21.000 18.000 15.000 12.000 9.000 6.000 3.000 0 19.400 2% 20% 16% 15% 8% 38% 15.200 11.700 1% 19% 17% 12% 12% 39% 1990 1% 19% 17% 13% 31-35% 11% 39% 2000 Year 16% 16% 17% 9% 40% 2010 Coal 2020 We are committed to an integrated energy approach utilising the advantages of fuel and technology diversity. Organisation General Assembly Gérard Brunel (President) Dr. Josef Meyer (Vice-President) Mark Papworth (Vice-President) Manager European Affairs Udo Kremer General Secretary Dr. Claudia Weise Public Relations Committee Press, Fairs, Internet Technology Committee Energy Policy, R&D, Standardisation European Affairs Committee Directives, Policy External Affairs Market Committee Turbine Market Survey R&D Working Group ... Emission Working Group .... Turbo-Power for Europe Sustainable and long-term energy supply Two major challenges in Europe are: The Lisbon aim is to make Europe the most competitive and dynamicbased economy in the world by 2010. The Kyoto Protocol is one of the most advanced environmental treaties in the world. The European Gas and Steam Turbine Manufacturers are strongly committed to these ambitious targets. They are key industry players as they provide the highly sophisticated core component for Power Generation, Oil & Gas and Process Industries. This Industry is successful in the global marketplace due to its technology leadership. A sustainable and long-term energy supply in Europe needs an energy and technology mix using all resource options. The European Gas and Steam Turbine Manufacturers commit themselves to an integrated energy approach utilising the advantages of fuel and technology diversity.

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