Office of Fossil Energy

U.S. Clean Coal and Carbon Management RD&D Program

David Mohler Deputy Assistant Secretary for Clean Coal and Carbon Management

U.S.-China Clean Coal Industry Forum 25-26 August 2015

Office of Fossil Energy Fossil Energy Makes Our Modern World Possible

Office of Fossil Energy

Fossil Fuels Have Been the Primary Energy Source for Most of Our History…

Office of Fossil Energy …They Still Provides the Lion’s Share of our Energy

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1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

History 2013

18%

33%

Projections 2025

2040

36%

18%

27%

1%

Source: EIA, Annual Energy Outlook 2015 Reference case

35%

19%

27%

8%

9%

1%

10% 18%

29%

8%

1%

Fossil fuels provide about 80% of U.S. primary energy consumption (in quadrillion Btu)

29%

8%

Natural Gas

Renewables (exc. liquid biofuels)

Coal

Nuclear Liquid biofuels

Petroleum and other liquids

8%

Office of Fossil Energy …And the World’s

Source: EIA, International Energy Outlook 2013

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15.0

30.0

45.0

1990 2000 2010 2015 2020 2025 2030 2035 2040

Coal

Natural gas

Hydropower

Nuclear

Other renewables Liquids

History Projections

World electricity generation by fuel billion kilowatt hours

Office of Fossil Energy

Unlike China, Majority of U.S. Coal Consumption is Used for Electricity Generation

U.S. Coal Consumption by End Use Sector (2013) Total 2013 Consumption: 925 million short tons

92.8%

[PERCENTAGE] 2.3%

0.2%

Electric Power Generation

Other Industrial Uses

Coke Production

Commercial & Institutional Use858 mmst

Source: EIA Annual Coal Report

Office of Fossil Energy Coal: A Reliable and Economic Energy Resource…

U.S. Electricity Production Costs 1995-2012

Office of Fossil Energy

Managing Our Fossil Energy Abundance is in the Public Interest

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1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

World energy-related carbon dioxide emissions by fuel billion metric tons

Source: EIA, International Energy Outlook 2013

Coal

Natural gas

Liquid fuels

2010 History Projections

CO2 emissions from fossil fuels, especially coal, are contributing to climate change

So managing our abundance is critical – to address climate change, ensure environmental sustainability, and secure our energy future

Office of Fossil Energy

CCS Will Be Required To Meet Our Carbon Emission Reduction Goals

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2010 2015 2020 2025 2030 2035 2040 2045 2050

Gt C

O2

CCS 19%

Renewables 17%

Nuclear 6%

Power generation efficiency and fuel switching 5%End-use fuel switching 15%

End-use fuel and electricity efficiency 38%

BLUE Map emissions 14 Gt

Baseline emissions 57 Gt

WEO 2009 450 ppmcase ETP2010 analysis

Source: International Energy Agency

New 111(b) and 111(d) regulations address CO2 under Final Clean Power Plan

Office of Fossil Energy We’ve Done This Before…

U.S. Air Pollution Has Decreased Significantly Despite Coal Use for Electricity Generation Tripling Since 1970

Clean Air Act of 1963 (extended in 1970, amended in 1977 and 1990) • Required EPA to develop and enforce regulations to protect the public from airborne

contaminants known to be hazardous to human health • Early regulations focused on pollutants, such as SO2, NOx, Mercury, and PM, from coal

plants

Office of Fossil Energy

The Office of Fossil Energy: Ensuring We Can Use All Our Energy Resources Cleanly, Safely, and Securely

Coal and Power Systems Oil and Natural Gas Strategic Petroleum Reserve

Through three major programs…

National Energy Technology Laboratory (NETL)

…And a world-class National Laboratory

Office of Fossil Energy FE is Advancing Coal Towards a Low-Carbon Future

Cost-effective carbon capture for new and existing power plants

Safe, permanent storage of CO2 from power generation and industry

Gasification, Advanced Turbines, Advanced Combustion, CBTL, and Fuel Cells

Crosscutting technology development program

Making Coal Plants More Efficient Capturing More CO2

Turning CO2 into Valuable Products Storing CO2 Underground

New pathways to utilize captured CO2

Bringing it All Together

Office of Fossil Energy

Clean Coal RD&D Progress Performance Improvement is Driving Cost Reductions

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5%

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Pow

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atio

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nalty

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Costs of capturing CO from greenfield plants excluding CO transport and storage expressed in 2011 dollars

“2005” “2012” “2020”

$150+/tonne (NOAK)

~ $60/tonne (NOAK)

< $40/tonne (NOAK)

Energy Penalty Reductions Enable Cost Reductions

Relative to Supercritical PC Plant w/o Capture (39.3% HHV efficiency)

Office of Fossil Energy

Partnership Project Status

1 Big Sky Carbon Sequestration Partnership

Saline storage of naturally occurring CO2 (1 million tonnes over 4 years)

Site operations; Injection 2014

2 Midwest Geological Sequestration Consortium

Saline storage of CO2 from ADM biofuel production (1 million tonnes over 3 years)

Injection began Nov. 2011

3 Midwest Regional Carbon Sequestration Partnership

EOR using CO2 from gas processing plant (1 million tonnes over 4 years)

Injection began Feb. 2013

4 Plains CO2 Reduction Partnership

1) Project 1: EOR using CO2 from ConocoPhillips Gas Plant (1 million tonnes over 2 years)

2) Project 2: Saline storage of CO2 from Spectra Energy gas processing plant (1.3 million tonnes over 2 years)

1) Injection June 2013 2) Site operations; injection 2015

5 West Coast Regional Carbon Sequestration Partnership

Regional Characterization No large-scale injection

6 Southeast Regional Carbon Sequestration Partnership

1) Project 1: Saline leg of EOR; storage natural CO2

2) (Over 3.6 million tonnes by Sept. 2014) 3) Project 2: Saline storage of amine

captured CO2 from coal-fired generation (250,000 tonnes over 2 years)

1) Injection began 2009 2) Injection began Aug. 2012

7 Southwest Regional Partnership on Carbon Sequestration

EOR storage of CO2 from fertilizer and ethanol plants (1 million tonnes over 5 years)

Site operations; injection late 2013

CO2 Storage Demonstrations 7 Regional Partnerships to Conduct CO2 Injection Projects

Injection Ongoing

2013/2014 Injection Scheduled

• Geology: Projects represent 6 of 11 identified

depositional environments in the United States

• Storage methodology: Projects include EOR and saline aquifer storage

• Preceded by 20 small-scale projects that cumulatively injected over 1 million tonnes

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Regional Carbon Sequestration Partnerships

Office of Fossil Energy

Major CCS Demonstrations 8 Projects Advancing Carbon Capture and Storage

Partnership Project Status

1 Air Products Steam Methane Reformer Hydrogen Production EOR utilization ~925,000 MT/year

Operations

2 Southern Company Services (Kemper)

Integrated Gasification Combined Cycle (IGCC) EOR utilization ~3,000,000 MT/year

Under Construction

3 Archer Daniels Midland

Ethanol Fermentation CO2 Saline storage ~900,000 MT/year

Under Construction

4 NRG Energy (Petra Nova ) WA Parish

Retrofit Pulverized Coal Plant. EOR utilization ~1,400,000 MT/year

Under Construction

5 Summit Texas Clean Energy Project

Integrated Gasification Combined Cycle Polygeneration EOR utilization ~2,200,000 MT/year

Financing

6 Leucadia Energy, LLC

Methanol from Petcoke Gasification. EOR utilization ~4,500,000 MT/year

Front End Engineering & Design

7 FutureGen 2.0 Oxycombustion Pulverized Coal Boiler Retrofit Saline storage ~1,000,000 MT/year

Front End Engineering & Design

8 Hydrogen Energy California (HECA)

Integrated Gasification Combined Cycle Polygeneration EOR utilization ~2,570,000 MT/year

Front End Engineering & Design

• Portfolio represents both EOR and storage in saline aquifers

• Portfolio includes industrial and power capture

• Portfolio includes pre-, post-, and oxy-combustion capture

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Operating / Under Construction

FEED/Financing

Major CCUS Demonstrations

Office of Fossil Energy

Wide-Ranging Partnerships At Home and Around the World Our Cooperation with China is Critically Important

Shale Gas Risk Analysis

Strategic Petroleum

Security

Bilateral Agreements

Geologic Research & Modeling

Unconventional Oil & Gas

Exploration

Multi-lateral Collaboration

CCS Knowledge Sharing

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