atlantic council - darren mollot

Dr. Darren Mollot

September 2013

Clean Coal – CCS RD&D Overview

Acting Deputy Assistant Secretary Office of Clean Coal

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Office of Fossil Energy Office of Clean Coal Vision & Mission

A SECURE, RELIABLE AND AFFORDABLE ENERGY FUTURE WITH THE ENVIRONMENTALLY SOUND USE OF COAL AND FOSSIL FUELS VI

SION

SUPPORT THE RESEARCH, DEVELOPMENT & DEMONSTRATION OF ADVANCED TECHNOLOGIES TO ENSURE THE AVAILABILITY OF CLEAN, AFFORDABLE ENERGY FROM COAL AND FOSSIL RESOURCES M

ISSION

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Office of Fossil Energy Office of Clean Coal -‐ Goals

GOALS

GOAL 1: DEMONSTRATE NEAR-‐ZERO EMISSION FOSSIL-‐BASED TECHNOLOGIES GOAL 2: ACCEPTANCE BY INDUSTRY, FINANCIAL INSTITUTIONS, REGULATORS AND THE PUBLIC THAT

CO2 CAN BE SAFELY INJECTED, MONITORED AND PERMANENTLY STORED IN A VARIETY OF GEOLOGIC FORMATIONS

GOAL 3: CONDUCT HIGH-‐RISK, RESEARCH AND DEVELOPMENT ON ADVANCED COAL AND FOSSIL

TECHNOLOGIES INCLUDING CO2 CAPTURE AND NOVEL HIGH EFFICIENCY CYCLES GOAL 4: DRIVE INTERNATIONAL COLLABORATION TO ENSURE WIDE-‐SPREAD ACCEPTANCE AND

DEPLOYMENT OF CCS TECHNOLOGIES GOAL 5: SUPPORT POLICY, LEGISLATION, AND REGULATION IMPACTING FOSSIL ENERGY BY PROVIDE

DATA AND EXPERTISE

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What Role Will Fossil Play

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World Coal Production China – U.S.A – India – Australia -‐ Indonesia

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1

2

3

4

5

6

7

8

9

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Billion

Sho

rt To

ns

World Coal Production

China U.S.A India Australia Indonesia World

Data from U.S. Energy Information Administration

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0

2000

4000

6000

8000

10000

12000

2010 2020 2025 2030 2035 2040

Million Short Ton

s

World Coal Consumption

India United States China World total


World Coal Consumption China – India – United States

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U.S. Electricity Generation Historical Perspective

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500

1000

1500

2000

2500

3000

3500

4000

4500

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Billion

kWh

U.S. Electricity Generation

Coal Petroleum Natural Gas Nuclear Renwables Total


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U.S. Electricity Generation Future Projections

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1000

2000

3000

4000

5000

6000

2010

2015

2020

2025

2030

2035

2040

Billion

kWh

Electricity Generation

Coal Natural Gas Total U.S. Generation Petroleum Nuclear Renewables

Data from U.S. Energy Information Administration -‐ 2013

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Meeting global climate mitigation targets will likely require CCS IEA’s Energy Technology Perspectives:

Gigatons of C

O2

Source: International Energy Agency

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Opportunities for Large Scale Projects

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Advanced Combustion

CO2 Storage Advanced CO2 Capture and

Compression

Solvents Sorbents Membranes Hybrid Process

Intensification Cryogenic Capture

Pressurized O2 membrane Chemical looping USC Materials

Carbon Utilization (EOR) Infrastructure (RCSPs) Geological Storage Monitoring, Verification and Accounting

Gasification Turbines Supercritical CO2 Direct Power Extraction

Integrated Fossil Energy Solutions

Efficiencies > 45% Capital Cost by 50%

$40 -‐ $10/tonne CO2 Captured Near-‐zero GHGs Near-‐zero criteria pollutants Near-‐zero water usage

Advanced Energy Systems

5 MWE Oxycombustion Pilot Advanced Turbines

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0%

5%

10%

15%

20%

25%

30%

35%

40%Po

wer Gen

eration Pe

nalty

[% of P

lant Outpu

t]

Capture Technology Progress Performance Drives Cost

Then

(1997)

Now

(2013)

Future

(2020)

~ $150/Tonne

~ $60/Tonne

< $40/Tonne

Energy Penalty Reductions

Enable Cost Reductions

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Creating a Bridge to Affordable CCS Technology

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MAJOR DEMONSTRATIONS

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Major CCS Demonstration Projects

Project Locations & Cost Share

CCPI ICCS Area 1 FutureGen 2.0

Southern Company Kemper County IGCC Project

Transport Gasifier w/ Carbon Capture ~$2.01B – Total, $270M – -‐DOE EOR – ~3.0 MM TPY 2014 start

NRG

W.A. Parish Generating Station Post Combustion CO2 Capture

$775 M – Total $167M – DOE

EOR – ~1.4 MM TPY 2016 start

Summit TX Clean Energy Commercial Demo of Advanced IGCC w/ Full Carbon Capture ~$1.7B – Total, $450M – DOE EOR – ~2.2 MMTPY 2017 start

HECA Commercial Demo of Advanced IGCC w/ Full Carbon Capture ~$4B – Total, $408M – DOE

EOR – ~2.6 MM TPY 2019 start

Leucadia Energy

CO2 Capture from Methanol Plant EOR in Eastern TX Oilfields $436M -‐ Total, $261M – DOE EOR – ~4.5 MM TPY 2017 start

Air Products and Chemicals, Inc.

CO2 Capture from Steam Methane Reformers EOR in Eastern TX Oilfields

$431M – Total, $284M – DOE EOR – ~0.93 MM TPY 2012 start

FutureGen 2.0 Large-‐scale Testing of Oxy-‐Combustion w/ CO2 Capture

and Sequestration in Saline Formation Project: ~$1.77B – Total; ~$1.05B – DOE

SALINE – 1 MM TPY 2017 start

Archer Daniels Midland

CO2 Capture from Ethanol Plant CO2 Stored in Saline Reservoir $208M – Total, $141M – DOE

SALINE – ~0.9 MM TPY 2014 start

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8 active projects 1 in operation, 2 under construction, 5 in engineering/finance 5 electricity generation, 3 industrial 3 IGCC, 4 post-‐processing, 1 oxycombustion Feedstock: 4 coal, 1 petroleum coke, 1 coal/coke, 1 natural gas, 1 ethanol 2 polygeneration Storage: 6 EOR, 2 saline formations


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8 active projects 1 in operation, 2 under construction, 5 in engineering/finance 5 electricity generation, 3 industrial 3 IGCC, 4 post-‐processing, 1 oxycombustion Feedstock: 4 coal, 1 petroleum coke, 1 coal/coke, 1 natural gas, 1 ethanol 2 polygeneration Storage: 6 EOR, 2 saline formations


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Projects

CCPI ICCS Area 1 FutureGen 2.0

Major CCS Demonstration Projects Project Locations & Cost Share

Southern Company Kemper County IGCC Project

IGCC-‐Transport Gasifier w/Carbon Capture

~$2.0B – Total CCPI project $270M – DOE

EOR – ~3M MTPY 2014 start

NRG

W.A. Parish Generating Station

Post Combustion CO2 Capture $775 M (est.) – Total

$167M – DOE EOR – ~1.4M MTPY 2016 start

Summit TX Clean Energy Commercial Demo of Advanced IGCC w/ Full Carbon Capture

~$1.7B – Total $450M – DOE

EOR – ~2.2M MTPY 2017 start

HECA Commercial Demo of Advanced IGCC w/ Full Carbon Capture ~$4B – Total, $408M – DOE

EOR – ~2.6M MTPY 2019 start

Leucadia Energy

CO2 Capture from Methanol/H2 Plant EOR in TX & LA Oilfields

$436M -‐ Total, $261M – DOE EOR – ~4.5M MTPY 2017 start

Air Products and Chemicals, Inc.

CO2 Capture from Steam Methane Reformers EOR in Eastern TX Oilfields

$431M – Total, $284M – DOE EOR – ~0.93M MTPY 2012 start

FutureGen 2.0 Large-‐scale Testing of Oxy-‐Combustion w/ CO2 Capture

and Sequestration in Saline Formation Project: ~$1.77B – Total; ~$1.05B – DOE

SALINE – 1M MTPY 2017 start

Archer Daniels Midland

CO2 Capture from Ethanol Plant CO2 Stored in Saline Reservoir $208M – Total, $141M – DOE

SALINE – ~0.9M MTPY 2014 start

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Southern Company Services, Inc. CCPI-‐2 Advanced IGCC with CO

2 Capture

Status Plant construction >60% complete; >5,400 construction personnel on site

CO2 off-‐take agreements signed Lignite mine under development Subsystems (water treatment, cooling towers) to begin pre-‐commissioning Combustion turbine startup: Sep 2013 Gasifier heat-‐up: Dec 2013

Key Dates Project Awarded: Jan 30, 2006 Project moved to MS: Dec 5, 2008 NEPA Record of Decision: Aug 19, 2010 Initiate excavation work: Sep 27, 2010 Operations: May 2014

Kemper County, MS 582 MWe (net) with duct firing; 2 TRIGTM gasifiers, 2 Siemens combustion turbines, 1 Toshiba steam turbine Fuel: Mississippi lignite 67+% CO2 capture (Selexol® process); 3,000,000 tons CO2/year EOR: Denbury Onshore LLC, Treetop Midstream Services LLC

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Lessons Learned

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BIG SKY

WESTCARB

SWP

PCOR

MGSC

SECARB

MRCSP

Regional Carbon Sequestration Partnerships Developing the Infrastructure for Wide Scale Deployment

Seven Regional Partnerships 400+ distinct organizations, 43 states, 4 Canadian Provinces

Engage regional, state, and local governments Determine regional sequestration benefits Baseline region for sources and sinks Establish monitoring and verification protocols Address regulatory, environmental, and outreach issues Validate sequestration technology and infrastructure

Development Phase (2008-‐2018+) 9 large scale

injections (over 1 million tons each)

Commercial scale understanding

Regulatory, liability, ownership issues

Validation Phase (2005-‐2011)

20 injection tests in saline formations, depleted oil, unmineable coal seams, and basalt

Characterization Phase (2003-‐2005)

Search of potential storage locations and CO2 sources

Found potential for 100’s of years of storage

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Large-‐Scale CO2 Storage Tests

8 large scale tests ongoing/planned for 6 of 7 Regional Partnerships Tests based on strong core R&D program and 20 smaller field tests. Injection schedule: 3 currently injecting, 3 starting 2013, 2 during 2014-‐2015 Storage: 5 EOR, 3 saline formations 7 of the 8 will inject between 1 – 2.9 million tonnes CO2

CO2 sources: NG processing plants, coal power plants, ethanol production plant, natural CO2 source All tests have extensive MVA Results will inform Best Practice Manuals

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8

7

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1

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6

5

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RCSP Geologic Province Injection Volume (metric tons)

BIG SKY Kevin Dome- Duperow Formation TBD

MGSC Illinois Basin- Mt. Simon Sandstone >380,000

MRCSP Michigan Basin- Niagaran Reef March 2013

PCOR

Powder River Basin- Muddy Sandstone April 2013

Horn River Basin- Carbonates TBD

SECARB

Gulf Coast - Tuscaloosa Formation >3,000,000

Gulf Coast – Paluxy Formation >30,000

SWP Anadarko Basin- Morrow Sandstone Sept 2013

WESTCARB Regional Characterization

Injection Ongoing

2013 Injection Scheduled

Injection Scheduled 2014-‐2015

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4

7

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9

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Three projects currently injecting CO2 Three Additional Scheduled for 2013 Remaining injections scheduled 2014-‐2015

Injection Began Nov 2011

Injection Began April 2009

Core Sampling Taken

Note: Some locations presented on map may differ from final injection location

Injection Began August 2012

RCSP Phase III: Development Phase Large-‐Scale Geologic Tests

Injection began February 2013

Injection began June 2013 Seismic Survey Completed

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Best Practices Manual Version 1 (Phase II)

Version 2 (Phase III)

Final Guidelines

(Post Injection)

Monitoring, Verification

and Accounting 2009/2012 2016 2020

Public Outreach and

Education 2009 2016 2020

Site Characterization 2010 2016 2020

Geologic Storage

Formation Classification 2010 2016 2020

**Simulation and Risk

Assessment 2010 2016 2020

**Carbon Storage Systems

and Well Management

Activities 2011 2016 2020

Terrestrial 2010 2016 – Post MVA Phase III

CCS Best Practices Manuals Critical Requirement For Significant Wide Scale Deployment -‐

Capturing Lessons Learned

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EXTRA SLIDES

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…And Broad Potential for CO2-‐EOR

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World Coal Consumption China – India – United States

0.0

50.0

100.0

150.0

200.0

250.0

2010 2020 2025 2030 2035 2040

Qua

drillion BT

U

World Coal Consumption

India United States China World total


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Drivers: EPA Regulations Impacting Coal Issue Federal Regulation/Compliance

Air SOx & NOx crossing state lines Cross-‐State Air Pollution Rule (CSAPR) finalized 7.7.2011; amendments proposed 10.2011; supplemental rule expected early 2012; 12.30.2011, DC Circuit stay of CSAPR; 8.21.2012, DC Circuit decision vacating CSAPR (subject to possible EPA challenge)

Compliance: Unknown

Mercury and Hazardous Air Pollutants (HAPs)

Mercury and Air Toxics Standards (MATS) Rule for Electric Generation Units Finalized effective: 4.16.2012

Compliance: ~2015

GHG emissions

GHG New Source Performance Standards (NSPS) Proposed rule comments currently under review (new baseload and intermediate load units potentially impacted as of proposal date)

Compliance: Unknown

Water Cooling Water Intake Structures – impact on aquatic life

CWA §316(b) final rule expected 11.2013

Compliance: Within 8 Years

Surface water discharges; Surface impoundments

Steam Electric Effluent Limitations Guidelines proposed rule went out for public comment 4.2013

Compliance: Unknown

Waste

Coal Combustion Residuals (e.g., coal ash, boiler slag)

Coal Combustion Residuals (CCR) Rule proposed rule comments currently under review

Compliance: Unknown

Near-‐term (through 2015-‐2016) Compliance Horizon for EPA regulations may create potential localized reliability issues

Local reliability issues can be managed with timely notice and coordination on retirement and retrofit decisions

States and regions will play a valuable role in addressing EPA regulation impacts

Non-‐transmission alternatives can help alleviate reliability impacts when/where available

EPA regulations are only one aspect impacting the future of our electricity system

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CCS Specific Regulations CO2 Injection

Safe Drinking Water Act Two “classes” of injection, pertain to CO2, Class II covers EOR and Class VI covers long-‐term CO2 storage Class II has been governing CO2 EOR for decades Class VI was finalized in December 2010, and has been accompanied by a series of guidance documents pertaining to various aspects of compliance – Site Characterization – Area of Review and Corrective Action – Testing and Monitoring – Project Plan Development – Well Construction – Financial Responsibility – Well Plugging, Post-‐Injection Site Care and Site

Closure (draft)

Clean Air Act Pursuant to the Clean Air Act, EPA collects and disseminates data on economy of CO2 emissions through its Mandatory Reporting Rule – Two sub-‐parts, RR & UU, apply to CO2 injection – RR applies to geologic sequestration of CO2, Class

VI wells and Class II wells that “opt-‐in” to reporting

– RR uses a mass balance approach to calculate stored CO2

– UU applies to other injection of CO2, typically business as usual EOR, and only requires reporting of quantities of delivered CO2

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Addressing Challenges of Carbon Management Creating knowledge today … for building a better tomorrow

Then -‐ Recognition of the Problem

Very little was known about carbon storage strategies CO2 capture technologies were very expensive and energy intensive 1997, FE/NETL initiated CCS R&D responding to international GHG initiatives By 2007, DOE R&D Program exhibited global leadership in CCS development

Now -‐ Focusing Resources

Broad capture and storage R&D program underway Capture costs have been reduced Significant insights into storage developed

Regional Partnerships -‐ building CCS infrastructure Seven Best Practice Manuals -‐ spreading knowledge Carbon Sequestration Atlas -‐ clarify storage potential

Future -‐ Transforming

Complete large-‐scale storage tests and integrated CCS demonstration projects U.S. leadership in developing advanced power systems with CCS -‐ providing affordable options needed to power the economies of the world