Strakey FG Overview for SECA

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FutureGen Status 7th Annual SECA WORKSHOP & PEER REVIEW September 12-14, 2006 Philadelphia, PA Joseph P. Strakey National Energy Technology Laboratory U. S. Department of Energy FutureGen World’s first near zero-emission, coal-based power plant to: • • • • Pioneer advanced hydrogen production from coal Emit virtually no air pollutants Capture and permanently sequester carbon dioxide Integrate operations at fullscale – a key step to proving feasibility Strakey – SECA – 09-13-06 250 Year Supply of Coal at Current Demand Levels U.S. Fossil Fuel Reserves / Production Ratio 300 258 SubBituminous & Lignite Coal Oil Natural Gas 200 100 Anthracite & Bituminous 11.7 0 9.7 Strakey – SECA – 09-13-06 Sources: BP Statistical Review, June 2004, - for coal reserves data - World Energy Council; EIA, Advance Summary U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves, 2003 Annual Report, September 22, 2004 - for oil and gas reserves data - Large Potential Worldwide CO2 Storage Capacity 200,000 Capacity (Gigaton CO2) Maximum Capacity Potential 1,200 1,000 800 600 400 200 0 24 Gigatons Deep Ocean Depleted Deep Oil & Gas Saline Formations Reservoirs Coal Seams Terrestrial Annual World Emissions Storage Option Strakey – SECA – 09-13-06 Storage Options: World Emissions: IEA Technical Review (TR4), March 23, 2004 Carbon Capture & Sequestration Program @MIT DOE/EIA, International Energy Outlook 2003, Table A10 Current “Best Case” Technologies Costly Using State-of-the-Art Scrubbing Technologies • 5 to 30% Parasitic energy loss • 30 to 100% Increase in capital cost • 25 to 100% Increase in cost of electricity Effect of CO2 Capture on Capital Cost (% Increase Resulting From CO2 Capture) Effect of CO2 Capture on Cost of Electricity (% Increase Resulting From CO2 Capture) 100 80 100 80 60 40 2012 Program Goals 72 60 87 60 40 20 0 IGCC PC NGCC 33 20 29 10 20 NGCC PC 0 IGCC Strakey – SECA – 09-13-06 Why IGCC/IGFC? R&D in the pipeline is reducing cost R&D in the pipeline is reducing cost & improving efficiency & improving efficiency • Gasifier/refractory material • Gasifier/refractory material • Low-cost oxygen • Low-cost oxygen • Gas separation membranes • Gas separation membranes • Fuel cell power • Fuel cell power • • • • • Environmentally superior coal-based power Easily adapted for CO2 sequestration High efficiency Fuel & product flexibility Promising “coal-to-hydrogen” option Strakey – SECA – 09-13-06 FutureGen IGFC with Sequestration Air Air Separation CO2, CO, H2 O2 H2O Gasifier Gas Cleaning CO2 Separation CO, H2 SOFC Anode Cathode Coal Sulfur Recovery CO2 Air Sequestration Marketable Ash/Slag By-product Marketable Sulfur By-product Enhanced Oil Recovery Unmineable Coal Beds Depleted Oil & Gas Reservoirs Deep Saline Aquifer Strakey – SECA – 09-13-06 GE IGFC Study Performance Summary 55% 54% Standard With CO2 Separation Net Efficiency (HHV Coal) 53% 52% 51% 50% 49% 48% 47% 0 2 4 6 8 10 12 14 Operating Pressure (bar) • • 53.4% (HHV) Possible with IGFC CO2 Separation penalty 2.7 points Strakey – SECA – 09-13-06 FutureGen Will Build Upon Experience from Commercial-Scale Coal-Based IGCC Power Plants Wabash River • W. Terre Haute, IN • 296 MWe (gross); 262 MWe (net) • Operations began 11/95 Tampa Electric • Mulberry, FL • 315 MWe (gross); 250 MWe (net) • Operations began 9/96 Strakey – SECA – 09-13-06 FutureGen Will Build on Two Non-Integrated One Million TPY CO2 Sequestration Projects Weyburn CO2 EOR Project • Pan Canadian Resources • 200-mile CO2 pipeline from Dakota Gasification Plant • Enhanced Oil Recovery in Canada Sleipner North Sea Project Statoil CO2 sequestered - Utsira Formation Currently monitoring CO2 migration Separates CO2 from natural gas $36–50 / tonne CO2 tax • • • • • Strakey – SECA – 09-13-06 Cutting-Edge Candidate R&D Technologies for FutureGen Traditional Technology Commercial Gasifier Cryogenic Air Separation Gas Stream Clean-Up Amine Scrubbers Syngas Turbine Fuel Cell ($4,000/kW) EOR Based Plant Controls Research Invention Examples Advanced Transport Reactor O2 Membranes Warm Gas Cleanup - Transport Desulfurizer H2 Membranes, “Clathrate” CO2 Ultra-Low NOx Hydrogen Turbine SECA Fuel Cell ($400/kW Design) Sequestration Technology “Smart” Dynamic Plant Controls & CO2 Management Systems “First of a Kind” System Integration System Integration Strakey – SECA – 09-13-06 FutureGen Industrial Alliance, Inc. Signed Cooperative Agreement with DOE on Dec. 2, 2005 • American Electric Power • AngloAmerican • BHP Billiton • China Huaneng Group • CONSOL Energy • Foundation Coal • Peabody Energy • PPL • Rio Tinto Energy America • Southern Company Strakey – SECA – 09-13-06 FutureGen Project Schedule Siting, NEPA, and Permitting Project Structuring & Conceptual Design Preliminary Design Phase 2 Cooperative Agreement Negotiations Final Design Facilities Construction Plant Start-Up & Shakedown NEPA ROD July 2007 Initial Full Scale Plant Operations Full Scale Plant Operation Continues Limited Cooperative Agreement Awarded Full Scope Cooperative Agreement Awarded Site Monitoring Final Site Selection Long Lead Time Orders September, 2007 Jan 31, 2007 Dec. 2, 2005 January 2008 Construction Start July 2009 Operations Start July 2012 July 2016 July 2018 BP- 0 BP- 1 BP- 2 BP- 3 BP- 4 BP- 5 Strakey – SECA – 09-13-06 FutureGen Funds / Estimated Costs Cost Elements Plant Definition, Baselining & NEPA Plant Procurement & Construction Shakedown & Full-Scale Operation Sequestration (Design & Construction) Site Monitoring TOTAL $ Million 81 480 188 191 10 $950 DOE Industry International Strakey – SECA – 09-13-06 620 250 80 FutureGen Status • Industry-led cooperative project with government oversight & international participation • Industry will choose project site, Tuscola Mattoon backbone technologies, etc. • DOE has invited other nations to Illinois join FutureGen • Gov’ts of India & South Korea have each pledged $10 Million Odessa Brazos Texas Strakey – SECA – 09-13-06 FutureGen Public Scoping Meetings Jewett, TX – Aug. 22, 2006 Odessa, TX – Aug. 24, 2006 Tuscola, IL – Aug. 29, 2006 Mattoon, IL – Aug. 31, 2006 Visit the FutureGen Websites • NETL website: − www.netl.doe.gov • Office of Fossil Energy website: − ww.fe.doe.gov • FutureGen Alliance website: − www.futuregenalliance.org Strakey – SECA – 09-13-06 Strakey – SECA – 09-13-06

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