National Energy Technology Laboratory

Gary J. Stiegel Director, Major Projects Division

U.S. DOE Gasification-based CCS Projects: Status Update

U.S. Energy-Related CO2 Emissions, 2012 Million Metric Tons

Source: “U.S. Energy Information Administration, Monthly Energy Review, Tables 12.1 -12.5 (May 2013), preliminary 2012 data, http://www.eia.gov/energy_in_brief/article/greenhouse_gas.cfm

CO2 Emissions by Major Fuel CO2 Emissions by Sector*

Coal, Oil, Gas are all large emitters Electric power is largest, but all

sectors contribute major shares

* Includes small amounts of CO2 from non-biogenic municipal solid waste and geothermal energy

2012 Total: 5299 2012 Total: 5278

Gasification Demonstration Project Summary Southern Co. IGCC

Summit IGCC Polygen Summit Texas Clean Energy CCPI-3 IGCC Polygen; EOR • Penwell, Ector County, TX • 600 MW (syngas); 400 MW (gross) power block; 200 MW (net) to electric grid 0.9 MM tonnes/yr urea • 90% CO2 capture ~2,630,000 tonnes CO2/year (2.0 MMT to EOR, 0.63 MMT to urea) • EOR: Permian basin oil fields • Operations: 2019 • Total Project: $3.85 billion; DOE share: $450 million

Southern Company CCPI-2 IGCC; EOR • Kemper County, MS • 582 MW (net) TRIG™ gasifiers, 2 Siemens combustion turbines, 1 Toshiba steam turbine • 67% CO2 capture (Selexol® process); ~ 3,000,000 tonnes CO2/year • Plant >86% complete. Peak construction labor - 6,121 • Operations: May 2015 • Total Project: $4.685 billion; DOE share: $270 million

HECA IGCC PolyGen Hydrogen Energy California (HECA) CCPI-3 IGCC Polygen; EOR • Kern county, CA • 300 MW (net), 1. MMT/yr Urea/UAN • 90% CO2 capture ~3,020,000 tonnes CO2/year (2.57 MMT to EOR, 0.45 MMT to urea) EOR: Oxy Elk Hills oil field • Operations: June 2020 • Total Project: $5 billion. DOE share: $408 million

Leucadia Leucadia Petccoke to Methanol & Hydrogen; EOR • Lake Charles, LA • 700 MM gal/yr methanol, 110 MMscfd Hydrogen • 89% CO2 capture (Rectisol®); 4,500,000 tonnes CO2/year • EOR: Denbury West Hastings oil field • Operations: December 2017 • Total Project: $436 million; DOE share: $261 million

Southern Company Services, Inc. CCPI-2 Advanced IGCC with CO2 Capture

Status Plant construction >86% complete; Peak

construction labor 6,122 CO2 off-take agreements signed Lignite mine in operation Subsystems commissioning in progress Combustion turbine startup: Sep 2013 Gasifier heat-up: 3Q 2014

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 2015

• 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 • Total DOE Project: $2.01 B; DOE Share: $270

MM (13%) • Total estimated plant cost: ~$4.685 B

Kemper IGCC Update • First gasifier heat-up targeted for mid to late summer 2014 • Combined cycle expected in-service in summer 2014 • Current cost estimate assumes in-service date extension to May 31,

2015 Kemper Project Risks

• Labor costs & productivity • Adverse weather conditions • Shortages & inconsistent quality

of equipment & materials • Labor, contractor, or supplier delay • Non-performance under construction or other agreements • Start-up activities

Gasification Area

Liberty Mine

Treated Effluent Reservoir

Lignite Storage Dome Water Treatment Area

Gas Cleanup Area Ash Management Area

Combined Cycle Area

Copyright 2013 Mississippi Power Company

Liberty Belle Dragline

Inside the Boxcut

Copyright 2014 Mississippi Power Company

Combined Cycle Unit Performance Testing

Copyright 2013 Mississippi Power Company

Control Room

Summit Texas Clean Energy CCPI-3: Advanced IGCC-Polygen

• Penwell, Ector County, TX (greenfield) • 600 MWth (syngas); 400 MWe (CC plant); 200 MWe

(net) to grid; 0.82 MMTPY Urea Fertilizer – SFG-500 gasifiers (2 x 50%) – High H2 SGCC6-5000F combined cycle (1 x 1)

• Fuel: PRB sub-bituminous coal • 90% CO2 capture – ~2.63 MMTPY CO2

– 2.0 MMTPY to EOR; 0.63 MMTPY to Urea – 2-stage Water Gas Shift, Linde Rectisol ® AGR

• EOR: Permian Basin oil fields • Total DOE Project: $1.727 B; DOE Share: $450 MM (26%) • Total Plant Cost ~$3.85 B (all in)

Key Dates Project Awarded: Jan 2010 Air Permit; Dec 2010 NEPA Record of Decision: Sep 2011 Financial Close: Mid-Late 2015 Construction Start: Late 2015 Operations Start: 2019

Status Urea contract: 2011; CO2 contracts: 2011 PPA: Dec 2011; expired Dec 2013 & being renegotiated China Exim signed for debt financing MOU: Sep 2012 Currently negotiating with a number of firms for

engineering, procurement, and construction services; anticipating multiple contracts

Summit Texas Clean Energy

Permitted Air Emissions, metric tons/year

CO 1,064.000

Pb 0.018

NOx 204.300

PM 377.500

PM10 349.300

PM2.5 338.700

SO2 233.200

VOCs 35.900

Carbonyl sulfide 2.380

Formaldehyde 2.690

Hydrochloric acid 1.260

Hydrofluoric acid 0.750

Hg 0.009

NH3 329.300

H2S 2.900

H2SO4 13.200

ParticulateRemoval

SyngasCleanup

ShiftReactor

Gasifier

Generator

ElectricPower

ElectricPower

Heat RecoverySteam Generator

Air

Steam

Steam Turbine

StackSteam

Air

GasTurbine

Oxygen

SlagBy-product

Syngas

Solids

Generator

Nitrogen

HydrogenSeparation

Clean Syngas

Ammonia/UreaProduction

MercuryRemoval

Moisture

ASUPRB Coal ~5,252 TPD

Inert Slag ~410 TPD

CO2 (EOR) ~6,609 TPD CO2 (Urea)

~1,814 TPD

H2SO4 ~53 TPD

Granulated Urea ~2,483 TPD

Syngas Composition, %

Hydrogen, H2 91

Nitrogen, N2 6

Carbon Monoxide, CO < 3

Other < 1

Electricity Generation/Use, MWe

Faceplate (comb. cycle) 400

Site Conditions* -84

Auxilary Loads -120

Products -75

Duct Burner (on NG) +75

Net to Grid 196

*Factors: shaft limit, average 82o day and site elevation

Argon ~119 TPD

Quantities are in metric tons per day (TPD) except as otherwise indicated.

Summit Texas Clean Energy Annual Revenues (30-yr avg)

59.85% 18.81%

18.81%

1.72% 0.69%

0.43% 0.21% 0.18%

Revenues

UreaCarbon DioxidePowerArgonBrine WaterSlagNitrogenSulfuric Acid

Summit Texas Clean Energy, LLC Plant Site

Kinder Morgan CO2Interconnect Northwest Border of Pennwell Site (Facing East)

Hydrogen Energy California Advanced IGCC-Polygen

• Kern County, CA (greenfield) • Up to 300 MWe (net) with load following; 1.0 MMT/yr urea/UAN

– MHI oxygen-blown gasifier (1 x 100%) – MHI G-class air cooled combustion turbine (1)

• Fuel: Sub-bituminous coal/petcoke • 90% CO2 capture – 3,020,000 tonnes CO2/year

– 2.57 MM tonnes EOR; 0.45 MM Urea production – 2-stage Water Gas Shift, Linde Rectisol ® AGR

• EOR: Elk Hills oil field • Use of brackish water for power production; ZLD • Total DOE Project: $4.028 B; DOE - $408 MM (10%) • Total Plant Cost: ~$5 B

Key Dates Project Awarded: Sep 2009 New Owner, SCS Energy: Sep 2011 Financial Close: Jun 2015 Construction: Jul 2015 Start of Operation: Jun 2020

Status Power/Fertilizer/CO2/EPC discussions in

progress FEED completion: Apr 2013 Draft PSA/EIS: Jun 2013 Final Determination of Compliance (air permit):

Jul 2013

IGCC Poly-generation with Integrated Carbon Capture & Sequestration

HECA Plant Layout

HECA Site Location

Project Site

Power Line CO2 Pipeline

Elk Hills Oil Field

Bakersfield 20 miles northeast

Water Wells

Process Water Line

Leucadia Energy, LLC ICCS Area 1 Petcoke Gasification to Methanol

• Lake Charles, LA • GE Energy Gasification (4 gasifiers: 3 hot/1 spare) • 700 MMgal/yr methanol; 110 MMSCFD H2

• Fuel: Petcoke • 89% CO2 capture (Rectisol® process);

4,500,000 tonnes CO2/year • CO2 to Denbury pipeline for EOR in Texas

at West Hastings oil field • Total Project: $436 MM; DOE Share: $261

MM (60%) Key Dates Phase 2 awarded: Jun 17, 2010 Complete CCS FEED: Jul 2011 NEPA ROD: Dec 2013 Financial close: Jul 2014 Construction: Jul 2014 Operation: Dec 2017

Status Product off-take contracts finalized (BP,

APCI) Record of Decision – Issued Dec 2013 FEED in progress for gasification plant

Leucadia Site

Site preparation and drainage - Completed

Current Site Cleared

Site to be raised to 10 Ft above Sea Level (Post Rita Flood Level)

Panoramic View of Current Site Cleared Looking South

• Carbon mandates/monetization would be beneficial • Government financial incentives not a panacea • Initial estimates of project costs are overly optimistic

– Costs increase as project develops through FEED and construction; Labor markets are critical

– Do more value and detailed engineering during FEED • Fixed price EPC contracts are difficult

– Volatile labor market requires Large contingencies – Availability of cranes and other heavy equipment

• Construction schedules need to be realistic • Reaching financial close for debt and equity financing takes

longer than expected. • Permitting of CO2 storage for geologic sequestration or EOR

is potentially problematic

Observations/Lessons Learned

Be Conservative!!!!

For Additional Information

Office of Fossil Energy www.fe.doe.gov

NETL www.netl.doe.gov

Gary J. Stiegel 412-386-4499

gary.stiegel@netl.doe.gov