cost evaluation study on low carbon ammonia and coal co ... · 3 objective of ammonia introduction...

Cost Evaluation Study on Low Carbon Ammonia and Coal Co-Fired Power

Generation

JGC Corporation K. Hiraoka, Y.Fujimura, Y.Watanabe, M.Kai

Institute of Applied Energy K.Sakata, Y.Ishimoto, Y.Mizuno

1

NH3 Fuel Conference 2018 NH3 Energy+ Topical Conference in AIChE Annual Meeting

Oct. 31st, 2018

Contents

1.  Background

2.  Premise of Study

3.  Results and Discussion

4.  Summary

2

-  Objective of Ammonia Introduction as Fuel -  Our Definition of Low Carbon Ammonia in This Study

-  Cost Estimation of Ammonia Production and Supply to Japan -  Cost Estimation of Power Generation by NH3-Coal Co-Firing and NH3 Firing

-  Gas Price as Feedstock and Utility in Ammonia Production -  Cost of CCS in UAE and in Japan

3

Objective of Ammonia Introduction as Fuel

Movement for reduction of CO2 emissions has gained momentum.

CO2 emissions from power generation sector are large in Japan. (Approx. 1/3 of total CO2 emissions are from power generation sector)

Increase of threat due to global warming issue

Application to ammonia-fired thermal power generation is desired to reduce the large amount of CO2 emissions

Technology for stable firing of ammonia and low NOx emissions has been developed in Japanese national project(SIP*).

* SIP stands for Cross-ministerial Strategic Innovation Promotion Program

Our Definition of Low Carbon Ammonia

4

CCS

Feedstock:Fossil Fuel CO2 Thermal Power Station

Thermal Power Station

NH3 Production

Renewable Energy

Water Nitrogen

Marine Transportation

H2 Production NH3 Production

CCS

CO2

CO2 from feedstock and utility is stored.

CO2 from utility is stored. ( In the case that fossil fuel is used as fuel for production)


Scope of Study

① Production from Fossil Fuel Integrated with CCS

②Production from Renewable Energy

Natural Gas

Electricity Cost?

5

AmmoniaProduction Loading

MarineTransportation

UnloadingPowerGeneration

NaturalGas(Feedstock)

Electricity

AmmoniaLiquefaction

AmmoniaRe-evaporation

Overseas(UAE)

Domestic(Japan)

Cost of CCS in UAE

Cost of CCS in Japan

Supply Chain of Low Carbon Ammonia

ü  NH3-Coal Co-Fired ü  NH3 Fired

Items Values NH3 Supply Amount in Japan 1.27 Million Ton/Year Ratio of NH3 and Coal Co-firing in Power Generation

20 %-NH3 on HHV Basis

Efficiency of Power Generation on NH3-Coal Co-firing/Coal firing (Boiler power generation)

36.5 % on HHV Basis at Power Generation End

Efficiency of Power Generation on NH3 firing (Gas-turbine power generation)

50 % on HHV Basis at Power Generation End

Operation Period 30 Years Capacity Utilization Ratio Power Generation：80 %

Other Facilities：90 % Currency Exchange Rate 121 JPY/USD

6

Premise of Study (1/3)

ü  Scope of CAPEX/OPEX CAPEX*：Plant Construction Cost, Decommissioning Cost OPEX*　：Feedstock Cost, Utility Cost, Labor Cost, O&M Cost 　　　　　　Taxes, Insurance Fees, Overhead Costs, Cost of CCS

* CAPEX/OPEX were set by taking information from public reports and hearing of experts into consideration.

Premise of Study(2/3)

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Items Unit Value Natural Gas Price in UAE 2.6 USD/MMBtu

Electricity Price in UAE 7.1 US cent/kWh

Electricity Price in Japan 10.3 US cent/kWh

Marine Fuel Oil 4.5 US cent/1,000 kcal

Pure Water 4 USD/t

Industrial Water 1 USD/t

Coal Price in Japan 60 USD/t-Coal

ü  Determination on Price of Feedstock and Utility Timing of large NH3-coal co-fired power generation commercialization is assumed to be around 2025. 　→ Price has been determined taking future market into consideration.

ü  Levelized cost calculation method ∑ ∑ −− +×+×+ )))1((/)1()(( t

tt

t OPEXCAPEX αβα α:Discount ratio（5 %）

β：Annual NH3 amount or 　　 annual electricity volume

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Electricity

AmmoniaLiquefaction


Overseas(UAE)

Domestic(Japan)

Cost of CCS in UAE



Premise of Study（3/3)

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Cost of CCS Unit Value Process Cost of CCS in UAE 35 USD/t-CO2

Utility Cost of CCS in UAE 50 USD/t-CO2

Cost of CCS in Japan 125 USD/t-CO2

* These values were set by taking information from public reports and hearing of experts into consideration.

Applied to“Process Cost of CCS”

Applied to“Utility Cost of CCS”

(without capturing cost)

DesulfurizationNG

ReformingShift

ReactionCO2

Capture

Purification NH3Production LiquifiedAmmonia


NH3

Liquefaction

NaturalGas(Fuel)

CO2fromFeedstock

CO2

fromFuel

CO2 from feedstock is already separated.

【Block Flow of Ammonia Production】

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Electricity

AmmoniaLiquefaction


Overseas(UAE)

Domestic(Japan)

Cost of CCS in UAE



Supply Chain Cost

Estimation of NH3 Supply Chain Cost

11

0

50

100

150

200

250

300

350

400

Ammon

iaSup

plyCh

ainCo

st[U

SD/t-NH3]

Without Cost of CCS

With Cost of CCS

NH3 Production



NH3 Production

Unloading

Unloading

Loading

Re-evaporation

Distribution

310

392

Approx. 70 %

80 USD/t-NH3

Equivalent to 26.7 JPY/Nm3-H2 by heat-based conversion

Estimated NH3 supply chain cost is lower than the target of H2 cost (30 JPY/Nm3-H2 in 2030) from “Basic Hydrogen Strategy”, Japan

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Electricity

AmmoniaLiquefaction


Overseas(UAE)

Domestic(Japan)

Cost of CCS in UAE



Electricity Cost LCA

13

Estimation of Electricity Cost (Comparison with Coal Fired Power

Generation)

0

5

10

15

20

25

Electricity

CostinJapan[JPY/kWh]

Coal fired NH3-coal co-fired (NH3: 20% on HHV Basis)

NH3 fired*

With Cost of CCS

20.2 JPY/kWh (16.7 US cent/kWh)



*Compared to other two case (boiler power generation), gas-turbine power generation is introduced for NH3 fired case.

Power Generation

Power Generation

Power Generation

NH3 Production

NH3 Production


Unloading Cost of CCS

in Japan

Re-evaporation /Distribution

Unloading

Loading


Loading

Re-evaporation

Distribution

15.6 JPY/kWh from NH3 Cost

Lower than

target：17 JPY/kWh (2030) from “Basic Hydrogen Strategy”,

Japan


Intermediate goal Ultimate goal

14

0

200

400

600

800

1000

1200

CO2Em

issions[g-CO2/kW

h-e]

FFExtraction&Processing

FFLocalTransportationFFMarineTransportationNH3SupplyChainPowerGenerationCoalAshTreatmentCCSinJapan

FFLiquefaction

Comparison in Terms of Life Cycle CO2 emissions

Coal Firing Without CCS

LNG Firing Without CCS

Coal Firing With CCS

Coal-NH3 Co-Firing With CCS

LNG Firing With CCS

NH3 Firing With CCS

Calculated using the method presented by AIST at the 13th Int. Conf. on EcoBalance , October 11 2018, Tokyo, Japan

-52 %

-69 %

-74 %

-81 %

-90 %

Summary

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•  NH3 cost difference between the case with and without the cost of CCS was 80 USD/t-NH3 in supply chain cost estimation. The estimated cost meets the target of H2 supply chain cost in 2030 set by the “Basic Hydrogen Strategy” in Japan by the conversion on heat basis.

•  Electricity cost of NH3-coal co-fired power plant is estimated as competitive

compared to that of coal power plant in the case of the cost of CCS is included. Regarding NH3 fired power generation, that is the ultimate goal, electricity cost originated from NH3 supply chain cost meets the target set by the “Basic Hydrogen Strategy”.

•  Moreover, both NH3-coal co-fired and NH3 fired power generation brings the benefit

of CO2 reduction in terms of LCA.

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Thank You for Your Attention!

This study was supported by the Council for Science, Technology and Innovation (CSTI), Cross-Ministerial Strategic Innovation Promotion Program(SIP), “Energy Carriers” (Funding agency: JST)

cost evaluation study on low carbon ammonia and coal co ... · 3 objective of ammonia introduction...

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