Presentation Identifier (Title or Location), Month 00, 2008

Clean Coal TechnologyThomas A. SarkusSenior Management & Technical Analyst

Office of Major Demonstrations

2

Energy = Quality of Life Poverty Reduces Global Security

World Resources Institute Database, accessed June 1, 2005http://earthtrends.wri.org/searchable_db/

Affluence

Poverty

Eritrea

Congo

Peru

Bulgaria

South Africa

Mexico

UK

Bahrain

U.S.

Qatar

100

1,000

10,000

100,000

100 1,000 10,000 100,000

GD

P p

er C

apit

a($

/ p

erso

n /

yr)

Annual Energy Consumption per Capita(kgoe / person / yr)

3

Coal-fired generation and GDP have grownat nearly the exact same pace over last 30 years

80

120

160

200

240

1970 1980 1990 2000Year

Ind

ex

: 1

97

3 =

10

0Coal Use Linked to Economic Growth

GDP: U.S. DOC, Bureau of Economic AnalysisEnergy & Electricity: EIA, Annual Energy Review 2003

ElectricityGeneration

Total EnergyConsumption

GDPCoal-FiredGeneration

4

U.S. Electricity Generation, by Source(Billion KiloWatt-Hours)

0

500

1000

1500

2000

2500

3000

3500

4000

450019

49

1954

1959

1964

1969

1974

1979

1984

1989

1994

1999

2004

CoalNuclearNatural GasHydroPetroleumRenewablesOther

5

U.S. Capacity & Generation

2007 Nameplate 2007 Net GenerationCapacity (MWe) (000 MW-hrs)

Coal 336,040 - 30.9% 2,016,456 - 48.5%

Natural Gas 449,389 - 41.3% 896,590 - 21.6%

Nuclear 105,764 - 9.7% 806,425 - 19.4%

Hydro 77,644 - 7.1% 247,510 - 6.0%

Petroleum 62,394 - 5.7% 65,739 - 1.6%

Renewables 32,676 - 3.0% 105,238 - 2.5%

Other 23,884 - 2.2% 18,788 - 0.4%

Total 1,087,791 - 99.9% 4,156,745 - 100%

6

1) Wyoming’s bar is 1/3 height because of vertical limitations2) Alaska produced 1.3 million short tons

153.

543.4

65.0

115.

3

41.9

25.3

36.4 32

.4 35.0

22.6

24.3

24.5

WY

MTND

UTCO

AZ NM

TX

OK

KS MO

ILIN

KY

OH

WV

PA

VA MD

AL

MS

LA

TN

2007 U.S. Coal Mining Production by State

29.6

8.0

3.1

1.6

0.4 0.2

3.5

2.7

2.3

19.3

453.

6

(Million Short Tons)

AR0.10.1

7

1) Hawaii produces 1.6 megaWatt-hours x 100,0002) Alaska produces .6 megaWatt-hours x 100,000

MT

UT

AL

2007 U.S. Coal-Derived Electric Generation by State

MS

MI

PAOH

IL

IN

NY

ND

MO

OK

133

123

123

95

71

75

NC

80

FL

68

34

KS

36

38

IA

MN

NE

20

29 32

4

17

AK

LA

SD

3

18

26

30

MD

TX

147

41

AZNM

28

NV

CA

OR

WA

ID

WY

CO TN

60

23

2

4

.1

36

VA

35

SC

42

WV

92

KY

90

21

AL

78

GA

WI

40

43

9

ME

12

4

10

6

CT

MA

NH

NJ

DE

.4

(MegaWatt-hours x 100,000)

90

37

7

8

Coal Usage Translates to Reliable, Affordable Electricity

10.3¢

30%

7.1¢

63%

6.4

93%

6.4¢

8%

6.3¢

61%

5.3¢

95%

7.8¢

67%

7.0¢

8%

6.8¢

72%

7.4¢

77%

10.0¢

22%12.8¢

1%

6.4¢

82%

6.9¢

43%

10.1¢

36%

6.8¢

76%

7.4¢

59%

7.3¢

47%

6.6¢

82%

8.5¢

48%

8.5¢

36%

8.5¢

63%

7.0¢

47%

8.4¢

25%

8.5¢

63%

6.5¢

94%

7.9¢

86%

14.6¢

2%

15.2¢

15%

8.0¢

35%

7.6¢

54%

7.9¢

62%

7.2¢

40%

5.8¢ 93%

7.1¢

45%

9.1¢

54%

5.3¢

98%

7.8¢

61%7.1¢ 63%

5.1¢

1%

13.3¢

9% 21.3¢

14%

NH 14.0¢ 17%RI 13.1¢ 0%CT 16.4¢ 11%NJ 13.0¢ 16%MA 15.2¢ 26% VT 12.0¢ 0%DE 11.4¢ 66%MD 11.5¢ 59%

¢ = Average Retail Price per KiloWatt-Hour

% = Percent of Total Generation from Coal

<7.9¢

8¢ - 11.9¢

>12¢

Hydro DOE/EIA Form EIA-861, 2007 data, average retail price of electricity by State

DOE/EIA Form EIA-906, 2007 data, percent of total generation from coal

9

United States

World

Energy Demand Today

U.S. data from EIA, Annual Energy Outlook 2007, years 2006 and 2030; world data from EIA, World Energy Outlook 2006, years 2004 and 2030

475 QBtu / Year 80% Fossil Energy

725 QBtu / Year81% Fossil Energy

Energy Demand 2030

Fossil Energy Will Continue to Dominate

131 QBtu / Y ear86% Fossil Energy

101 QBtu / Year85% Fossil Energy

United States

World

10

U.S. Coal Usage & Air Emission Trends1970-2005

0

0.5

1

1.5

2

2.5

1970 1975 1980 1985 1990 1995 2000 2005

SO2NoxCoal

11

Some Clean Coal Successes

• Advanced SO2 Scrubbers

– Pure Air (Bailly), CT-121 (Yates) & S-H-U (Cayuga)• NOx Control Technologies

– Low-NOx burners, Reburning, SNCR & SCR

• Hazardous Air Pollutants

– Focus on Hg• Fluidized Bed Combustion

– Fuel flexibility; can handle even waste coal• IGCC

– Wabash River & Tampa/Polk

12

U.S. Coal-Fired Power PlantsAir Pollution Control Device Summary

MWe % of MWe No. Units % UnitsParticulate Controls ESP 261,411 84% 888 69% Fabric Filter 32,187 10% 164 13% Others 16,116 5% 244 19%Total PM 309,714 100% 1,296 100%

SO2 Controls Wet Scrubber 129,445 42% 289 22% Dry Scrubber 15,176 5% 51 4% Reagent Injection 5,828 2% 75 6%Total SO2 150,449 49% 415 32%

Post-Combustion NOx Controls SCR 100,099 32% 199 15% SNCR 18,358 6% 100 8%Total NOx 118,457 38% 299 23%

Source: U.S. EPA Nat’l Electrical Energy Data System for 2006 (NEEDS 2006)

13

Evolution of Air Pollution Controls

• Particulate Matter (PM), 1950s-1960s

• Sulfur Dioxide (SO2), 1970s-1990s

• Nitrogen Oxides (NOx), 1990s-2000s

• Mercury (Hg), 2000s-2010s

• Carbon Dioxide (CO2), 2010s-2020s

14

Annual CO2 Emissions Extremely Large

Emissions Total Release in the U.S., short tons per year

Mercury 120

Sulfur Dioxide (SO2) 15,000,000

Municipal Solid Waste 230,000,000

Carbon Dioxide (CO2) 6,300,000,000

Data sources: Mercury - EPA National Emissions Inventory (1999 data); SO2 - EPA air trends (2002 data); MSW - EPA OSWER fact sheet (2001 data); CO2 - EIA AEO 2004 (2002 data)

1 million metric tons of CO2:• Every year would fill a volume of 32 million cubic feet• Close to the volume of the Empire State Building

15

Comparison of Coal-Based Power Generation Platform Technologies

• Pulverized Coal (pc) Boilers– Commercialized in 1920s-1930s– 5000 units world-wide; >1100 in US– Unit sizes up to ~1400 MW

• Fluidized Bed Combustion (FBC) Boilers– Commercialized in 1970s-1980s– 500 units world-wide; 150 in US– Unit sizes up to ~300 MW– Costs ~5-10% higher than pc units

• Integrated Gasification Combined-Cycle (IGCC) Power Plants– Commercialized in 1980s-1990s– 6 coal-based units world-wide; 2 in US– Unit sizes up to ~300 MW– Costs ~ 10-20% higher than pc units

16

Next Steps for Coal-Based Power Generation Platform Technologies

•Pulverized Coal Combustion– Tightened emissions controls– Post-combustion CO2 capture– Oxy combustion, temperature, pressure

•Fluidized Bed Combustion– Supercritical CFB– Pressurized CFB

•IGCC– Larger units, low cost O2 supply, low rank coals,

improved refractory, nth plant designs– CO2 capture & sequestration, efficiency

17

Why IGCC?

•Potential for lower emissions & higher efficiencies•Allows coal to benefit from improvements in gas turbine technology•Versatile – feedstock flexibility & multiple products possible (e.g.,electricity, chemicals, transportation fuels, synthetic natural gas)

•Promising “coal-to-hydrogen” option•Easily adapted for CO2 sequestration

R&D Pipeline Reducing Cost & Improving Efficiency

•Gasifier/refractory material•Low-cost oxygen•Gas separation membranes

R&D Pipeline Reducing Cost & Improving Efficiency

•Gasifier/refractory material•Low-cost oxygen•Gas separation membranes

Producing concentrated stream of CO2 at high pressure• Improves sequestration economics• Reduces efficiency penalty

Producing concentrated stream of CO2 at high pressure• Improves sequestration economics• Reduces efficiency penalty

18

U.S. Commercial-Scale Coal-Based IGCC Power Plants

Wabash River• W. Terre Haute, IN• Operations began 11/95• 1996 Powerplant Award• 296 MWe (gross); 262 MWe (net)

Tampa Electric• Mulberry, FL• Operations began 9/96• 1997 Powerplant Award• 315 MWe (gross); 250 MWe (net)

19

CCPI

PPII & CCPI Demonstration ProjectsLocations & Cost Share

Excelsior Energy IGCC$2,155M – Total

$36M – DOE

Excelsior Energy IGCC$2,155M – Total

$36M – DOE

NeuCo, Inc. Integrated Optimization Software

$19M – Total $8.5M – DOE

NeuCo, Inc. Integrated Optimization Software

$19M – Total $8.5M – DOE

Great River EnergyLignite Fuel Enhancement

$31.5M – Total$13.5M – DOE

Great River EnergyLignite Fuel Enhancement

$31.5M – Total$13.5M – DOE

Wisconsin Electric Power Co.TOXECON Multi-Pollutant Control

$53M – Total $24.9M – DOE

Wisconsin Electric Power Co.TOXECON Multi-Pollutant Control

$53M – Total $24.9M – DOE

Emission Control

Fuel

Advanced Power Systems

Pegasus TechnologiesAdv. Sensor / Optimization

Hg / Multi-pollutant$15.5M – Total$6.1M – DOE

Pegasus TechnologiesAdv. Sensor / Optimization

Hg / Multi-pollutant$15.5M – Total$6.1M – DOE

CONSOL/GreenidgeMulti-Pollutant Control

$32.7M – Total $14.3M – DOE

CONSOL/GreenidgeMulti-Pollutant Control

$32.7M – Total $14.3M – DOE

Southern CompanyIGCC-Transport Gasifier

$1.623B – Total$294M – DOE

Southern CompanyIGCC-Transport Gasifier

$1.623B – Total$294M – DOE

20

Technological Carbon Management OptionsPathways for Reducing GHGs -CO2

ImproveEfficiency

SequesterCarbon

• Renewables• Nuclear• Fuel Switching

• Demand Side• Supply Side

• Enhance Natural Sinks

• Capture & Store

Reduce CarbonIntensity

All options needed to: Affordably meet energy

demand Address environmental

objectives

21

North American CO2 Storage Potential

(Billion Metric Tons)

Sink Type Low High

Saline Formations 3,300 12,600

Unmineable Coal Seams 160 180

Oil & Gas Fields 140 140

Available for download at http://www.netl.doe.gov/publications/carbon_seq/refshelf.html

U.S. Emissions ~ 6 Billion Tons CO2/yr all sources~ 2.1 Billion Tons CO2/yr coal-fired power plants

Hundreds of Years

Storage Potential

National Atlas Highlights - 2008

Saline Formations

Oil and Gas Fields Unmineable Coal Seams

Conservative Resource

Assessment

22

Enhanced Oil Recovery – Beneficial Use of CO2

• EOR increasing its role in domestic oil production– EOR: 650,000 bbls/day

→ 13% of domestic production

– CO2-EOR: 237,000 bbls/day& growing

– 90 billion barrels of light oil can yet be recovered in the U.S. using EOR

• Reduces cost of CCS• Lowers carbon footprint of

transportation sector– Oil produced with “next generation”

CO2-EOR may be well-better than carbon neutral

• Increases energy security

23

Seismic Imaging of Sleipner CO2 Plume

24

Regional CarbonSequestration Partnerships

Characterization Phase• 24 months (2003-2005)

Validation Phase• 4 years (2005 - 2009)• 7 Partnerships (41 states)• 25 Geologic field validation

tests

Deployment Phase • 10 years (2008-2017)• Several large injection tests

in different geology

Representing: >350 Organizations41 States 4 Canadian Provinces3 Indian Nations 39% cost share

Creating Infrastructurefor Wide Scale Deployment:

25

Regional Carbon Sequestration Partnerships

California Energy Commissionhttp://www.westcarb.org/

New Mexico Institute of Mining and Technologyhttp://www.southwestcarbonpartnership.org/

Montana State Universityhttp://www.bigskyco2.org/

University of North Dakota, Energy & Environmental Research Center

http://www.undeerc.org/pcor/

University of Illinois, Illinois State Geological Surveyhttp://www.sequestration.org/

Battelle Memorial Institutehttp://www.mrcsp.org/

Southern States Energy Boardhttp://www.secarbon.org/

26

Regional Carbon Sequestration PartnershipsDeployment Tests

WESTCARBWESTCARB

Big SkyBig Sky

PCORPCOR MRCSPMRCSP

MGSCMGSC

SECARBSECARB

Test location

Injection ofCO2 into

Moxa Arch

Williston Basin CO2

Seq. and EOR Test

Large-VolumeSeq. Test

Ethanol PlantSource

Large-ScaleCO2 Storagein Mt. SimonSandstone

SalineFormation

Demonstration

Fort NelsonCO2 Acid Gas

InjectionProject

Seq. of CO2

from Oxy-Combustion

Deep SalineDeployment

Project

SWPSWP

27

Source: 2007 data Global Energy Decisions – Velocity Suite2002 – 2005 data – Previous NETL Tracking New Coal-Fired Power Plants Reports

Delays in Implementation

Past Capacity Announcements vs. Actual

Historically, actual capacity has been shown to be significantly less than proposed capacity. For example, the 2002 report listed 11,455 MW of proposed capacity for the year 2005 when actually only 329 MW were constructed.

28

Our Workforce & Skills Challenge

A Two-Decade Gap

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Thank you for your kind attention!