Zero Emission Power Plants and Global Warming

Zero Emission Power Plants and Global Warming An EPPSA View PowerGen Europe, Madrid 27 June 2007 Patrick Clerens, Secretary General Outline • • • • • EPPSA Presentation EU Aims Facts Possible Legal EU Framework EPPSA Recommendations PowerGen Europe 27.06.2007 (0507), Pg 2 EPPSA Members This leading technology branch has more than 100.000 employees and an annual turnover of over € 20 billion PowerGen Europe 27.06.2007 (0507), Pg 3 Introducing EPPSA • The European Power Plant Suppliers Association is the voice, at European level, of companies both manufacturing components for power plants and constructing turnkey power plants • EPPSA actively promotes projects aimed at increasing efficiency and environmentally friendly improvements in power generation, particularly zero or near zero emission power generation • EPPSA believes that increased investment in Research, Development and Demonstration (R,D&D) is a key factor in driving EU competitiveness as well as assuring an adequate power supply for European consumers EPPSA represents the suppliers of over 60% of the European Power Generation (Thermal) PowerGen Europe 27.06.2007 (0507), Pg 4 Outline • • • • • EPPSA Presentation EU Aims Facts Possible Legal EU Framework EPPSA Recommendations PowerGen Europe 27.06.2007 (0507), Pg 5 New Energy Policy • WHY? – – – – Tackle Climate Change Stronger competition and dependency of EU on external energy supply EU energy policy linked to sustainable economic development € 900bn needed for new electricity capacity during the next 25 years • European Commission’s Energy Package (10th of January 2007) – 20% CO2 Reduction by 2020 – 10-12 CCS demonstrations operational by 2015 • European Council’s Conclusions (8th of March 2007) – – – – 20% CO2 Reduction by 2020 20% Energy Savings by 2020 20% Renewable Energy in overall consumption by 2020 10% Biofuels PowerGen Europe 27.06.2007 (0507), Pg 6 Outline • • • • • EPPSA Presentation EU Aims Facts Possible Legal EU Framework EPPSA Recommendations PowerGen Europe 27.06.2007 (0507), Pg 7 EU 25 Energy Demand for Power & Heat Generation Source: IEA World Energy Outlook. Fossil fuels will remain the backbone (62%) PowerGen Europe 27.06.2007 (0507), Pg 8 Future EU 25 CO2 Emissions PowerGen Europe 27.06.2007 (0507), Pg 9 Urgent Actions Needed for Zero CO2-Emissions by 2020 TWIN TRACK SOLUTION CO2 CAPTURE & STORAGE EFFICIENCY IMPROVEMENT AT THE SAME TIME PowerGen Europe 27.06.2007 (0507), Pg 10 Outline • • • • • EPPSA Presentation EU Aims Facts Possible Legal EU Framework EPPSA Recommendations PowerGen Europe 27.06.2007 (0507), Pg 11 Steps and Support Urgently Needed for CCS • Legal Framework for CCS • Demonstration Plants – Operation of 10-12 large-scale demo plants for an integrated “CO2 Capture Transportation & Storage Concept” – Cost-effective CO2 capture technologies with limited efficiency penalty • Exploration of geological sites that are potentially safe for CO2 storage • Inform European public regarding CCS reliability • Extension of EU’s support in R,D&D for next-generation technologies • Coordinated support to R,D&D cooperation between the European Union, its Member States and the International Community • New European funding schemes PowerGen Europe 27.06.2007 (0507), Pg 12 Commission Identified Hurdles • Storage legislation TOP priority • Size of investments and risks very large – Small players not capable (e.g. public entities) – External Funding needed (e.g. EIB, EBRD, State Aid) • Higher running costs compared to plants without CCS – ETS primary instrument – Feed-in tariffs – “Carbon Options” guarantee a fixed CO2 price after 2012 • Uncertainty of best technology => Develop all • Development of a CO2 infrastructure • Public Perception PowerGen Europe 27.06.2007 (0507), Pg 13 Possible Legislative Framework Under Discussion • New CCS Legal Possibilities – Either: Integrate CCS into existing Integrated Pollution Prevention Control (IPPC) measure – Or: Concentrate all adjustments for environmental legislation and CCS into one single specific directive • Possible Additional Legislative Points – Further regulation for the modernisation of coal fired power generation for • Efficiency Minimums • CO2 Emissions Limits • Clear timeframe when or if CCS and Capture Readiness will be compulsory • Clear and simple criteria to decide whether a plant is capture ready after e.g. 2012 PowerGen Europe 27.06.2007 (0507), Pg 14 Possible Ways to Support Demonstration • Joint Undertaking (JU) – Supra-level body integrating all kinds of stakeholders – e.g. Galileo Global Navigation Satellite System Project • Joint Technology Initiative (JTI) – More efficient R,D&D programmes for technological developments and demo plants administrated from Brussels – e.g. JTI for the European Hydrogen and Fuel Cell Technology Platform (HFPeurope) • Flagship Programme – Using the existing structures to define criteria in order to receive “CCS demonstration” label for a specific project – e.g. Zero Emission Fossil Fuel Power Plants Technology Platform (ZEP) PowerGen Europe 27.06.2007 (0507), Pg 15 Outline • • • • • EPPSA Presentation EU Aims Facts Possible Legal EU Framework EPPSA Recommendations PowerGen Europe 27.06.2007 (0507), Pg 16 EPPSA Members Already Invest in CCS Examples amongst others • Oxyfuel Firing – Insertion of O2 in the burning chamber or in the burner in order to optimise the oxidation process (flame control) – New approach using Chemical Looping Combustion (Metal Oxide) as an O2 carrier, avoiding ASU and consuming less energy – Oxyfuel Firing Combustion Chamber (1700°C) External to Boiler – RETROFIT for Oxyfuel firing currently under demonstration • Post-Combustion Capture – EPPSA Members are reducing the costs for post-combustion capture through new solvents needing less energy for the desorption process and releasing CO2 at higher pressure PowerGen Europe 27.06.2007 (0507), Pg 17 EPPSA also supports CCS Capture Ready Recommendations 1 • Efficiency Penalty – Efficiency improvements: Mostly the Least costly method for direct CO2 reduction – Reduction of flue gas volume reduces capital/operation costs for equipment • Space requirements should take into account – Need for improved cleaning of flue gas where required – Space for ASU for IGCC and Oxyfiring and O2 storage – Space for extension cooling water systems CO2 cleaning, compression/storage – Space for flue gas recirculation ductwork for Oxyfiring PowerGen Europe 27.06.2007 (0507), Pg 18 EPPSA also supports CCS Capture Ready Recommendations 2 • Compatibility of Capture and Storage Plants with new processes – Gas stream properties are substantially different and plants must be designed accordingly in pre-combustion IGCC – Heat demand increase for desorption process (solvent scrubbing in post-combustion) – Plant design needs modification for CO2 rich flue gases in Oxyfiring • Location – Power Plant located near an existing CO2 pipeline or storage infrastructure will be of advantage (approval, transportation costs, etc) PowerGen Europe 27.06.2007 (0507), Pg 19 Conclusions • EU very active and Commission understood priorities regarding CCS • Crucial that R,D&D and deployment of advanced, innovative technology is adequately supported • Implementation of next-generation technology; new combustion and capture technologies still requiring a lot of research before being commercially available • Research & Technological development in this sector benefits the whole society, therefore, the whole society should contribute to make it happen • CCS is complementary to RES and not competition PowerGen Europe 27.06.2007 (0507), Pg 20 Avenue de l’Opale 80 B - 1030 Brussels Belgium Tel: +32 2 743 2986 Fax: +32 2 743 2990 www.eppsa.org - info@eppsa.org