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1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University Place Conference Center at IUPUI Indianapolis, Indiana Victor K. Der Director Office of Clean Energy Systems, Office of Fossil Energy U.S. Department of Energy

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Page 1: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

1

FutureGenFutureGen Zero Emissions Energy

Plant of the Future

FutureGenFutureGen Zero Emissions Energy

Plant of the Future

2004 Indiana Energy Conference“Perspectives on the Energy Puzzle”

September 16, 2004University Place Conference Center at IUPUI

Indianapolis, Indiana

Victor K. Der Director Office of Clean Energy Systems, Office of Fossil Energy

U.S. Department of Energy

2004 Indiana Energy Conference“Perspectives on the Energy Puzzle”

September 16, 2004University Place Conference Center at IUPUI

Indianapolis, Indiana

Victor K. Der Director Office of Clean Energy Systems, Office of Fossil Energy

U.S. Department of Energy

Page 2: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 2

FutureGenFutureGenFutureGenFutureGen

A Government/Industry cost shared partnership

Pioneer advanced hydrogen production from coal

Emit virtually no air pollutants

Capture and permanently sequester carbon dioxide

A Government/Industry cost shared partnership

Pioneer advanced hydrogen production from coal

Emit virtually no air pollutants

Capture and permanently sequester carbon dioxide

What is the FutureGen FutureGen prototype?What is the FutureGen FutureGen prototype?

A global effort to build the world’s first zero emission power plant:A global effort to build the world’s first zero emission power plant:

Other nations invited to join in this research project (~1 billion dollars over the next ten years)

FutureGenutureGen will be an international test facility for breakthrough technologies that addresses feasibility of zero emissions

Other nations invited to join in this research project (~1 billion dollars over the next ten years)

FutureGenutureGen will be an international test facility for breakthrough technologies that addresses feasibility of zero emissions

Page 3: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 3

Tomorrow’s HydrogenTomorrow’s HydrogenWhy is Hydrogen from Coal Important?Why is Hydrogen from Coal Important?

95% of U.S. hydrogen comes from natural gas

Future “Hydrogen Economy” must have more diversified sources

Over longer term, hydrogen will likely come from renewables, nuclear power, fusion, etc.

95% of U.S. hydrogen comes from natural gas

Future “Hydrogen Economy” must have more diversified sources

Over longer term, hydrogen will likely come from renewables, nuclear power, fusion, etc.

But coal can also be a major feedstockBut coal can also be a major feedstock Most abundant U.S. fossil fuel (250-yr supply); if transportation fuel today

was hydrogen, potential for additional 1.3 billion tons coal per year; by 2025 that addition could grow to 2.4 billion tons

Hydrogen from coal for transportation enhances energy/economic security

Can be environmentally clean source of hydrogen

Most abundant U.S. fossil fuel (250-yr supply); if transportation fuel today was hydrogen, potential for additional 1.3 billion tons coal per year; by 2025 that addition could grow to 2.4 billion tons

Hydrogen from coal for transportation enhances energy/economic security

Can be environmentally clean source of hydrogen

Page 4: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 4

Climate ChangeClimate Change

Carbon Management PathsCarbon Management Paths

Switch to low- & no-carbon fuels Switch to low- & no-carbon fuels

Increase energy efficiency Increase energy efficiency

Sequester carbon Sequester carbon

Renewables, Nuclear, Natural GasRenewables, Nuclear, Natural Gas

Demand-Side & Supply SideDemand-Side & Supply Side

Why is Sequestration Important?Why is Sequestration Important?

Since the world relies on fossil fuels (~ 88%), sequestration is an important option

May be only option that removes enough carbon to stabilize CO2

concentrations in atmosphere

May prove to be lowest cost carbon management option

Since the world relies on fossil fuels (~ 88%), sequestration is an important option

May be only option that removes enough carbon to stabilize CO2

concentrations in atmosphere

May prove to be lowest cost carbon management option

The FutureGenFutureGen plant will be a first-of-its-kind project by the U.S. electric power industry to prove that large-scale sequestration is safe and practicable, and one that encompasses all three carbon management paths.

The FutureGenFutureGen plant will be a first-of-its-kind project by the U.S. electric power industry to prove that large-scale sequestration is safe and practicable, and one that encompasses all three carbon management paths.

Page 5: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 5

Project Performance ObjectivesProject Performance Objectives

Design, construct and operate a full – scale prototype plant (integrated with CO2 sequestration) that produces electricity and hydrogen with essentially zero emissions

Sequester at least 90 percent of CO2 initially and 100 percent sequestered eventually

Prove the effectiveness, safety, and permanence of CO2 sequestration

Establish technology standards and protocols for CO2 measuring, monitoring, and verification

Validate the engineering, economic, and environmental viability of advanced coal-based, zero emission technologies for commercial readiness in 2020

Design, construct and operate a full – scale prototype plant (integrated with CO2 sequestration) that produces electricity and hydrogen with essentially zero emissions

Sequester at least 90 percent of CO2 initially and 100 percent sequestered eventually

Prove the effectiveness, safety, and permanence of CO2 sequestration

Establish technology standards and protocols for CO2 measuring, monitoring, and verification

Validate the engineering, economic, and environmental viability of advanced coal-based, zero emission technologies for commercial readiness in 2020

Page 6: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 6

Features of the ProjectFeatures of the Project

Coal-fueled gasification process that produces electricity and hydrogen--275 MWe [net equivalent output]

Operational rate of 1 million tons per year of CO2 captured and sequestered

Incorporates advanced technologies that will be competitive in future zero emission energy plants

Full-scale integrated operations

Coal-fueled gasification process that produces electricity and hydrogen--275 MWe [net equivalent output]

Operational rate of 1 million tons per year of CO2 captured and sequestered

Incorporates advanced technologies that will be competitive in future zero emission energy plants

Full-scale integrated operations

Page 7: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 7

Project ConceptProject ConceptRefinery

CO2 Oil

Hydrogen

Enhanced Oil Recovery Geological Sequestration

Electricity

And/Or

FutureGen

Page 8: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 8

FutureGen FutureGen Conversion Process

FutureGen FutureGen Conversion Process

Oxygen(from air)

Coal+H2O

Hydrogen + Carbon Gases (CO2 , CO)

Converting Coal into Gas is KeyConverting Coal into Gas is Key

Up to 99%+ of Clear Skies pollutants (sulfur/nitrogen/mercury) can be cleaned from gasified coal

Hydrogen is a primary product

Carbon gases are in concentrated form for easier capture and sequestration

Up to 99%+ of Clear Skies pollutants (sulfur/nitrogen/mercury) can be cleaned from gasified coal

Hydrogen is a primary product

Carbon gases are in concentrated form for easier capture and sequestration

No coal-to-gas plant in the world today is configured to optimize hydrogen production or to capture carbon. The FutureGenFutureGen prototype plant would be the world’s first.

No coal-to-gas plant in the world today is configured to optimize hydrogen production or to capture carbon. The FutureGenFutureGen prototype plant would be the world’s first.

Page 9: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 9

Technology ChallengeTechnology Challenge

Traditional Advanced Technology

Cryogenic Separation

Amine Scrubbers

Amine Scrubbers

Gas Stream Clean-Up

Syngas Turbine

Fuel Cell ($4,000/kW)

EOR based

Existing Gasifier

System Integration

Plant Controls

Traditional Advanced Technology

Cryogenic Separation

Amine Scrubbers

Amine Scrubbers

Gas Stream Clean-Up

Syngas Turbine

Fuel Cell ($4,000/kW)

EOR based

Existing Gasifier

System Integration

Plant Controls

Emerging Research Inventions

O2 Membranes

Hydrogen Membranes

“Clathrate” CO2 Separation

“Dirty” Shift Reactor

Hydrogen Turbine

SECA Fuel Cell ($400/kW design)

Sequestration Technology

Advanced Transport Reactor

“First of a Kind” System Integration

“Smart” Dynamic Plant Controls & CO2 Management Systems

Emerging Research Inventions

O2 Membranes

Hydrogen Membranes

“Clathrate” CO2 Separation

“Dirty” Shift Reactor

Hydrogen Turbine

SECA Fuel Cell ($400/kW design)

Sequestration Technology

Advanced Transport Reactor

“First of a Kind” System Integration

“Smart” Dynamic Plant Controls & CO2 Management Systems

(including in-situ CO2 monitoring)

Page 10: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 10

FutureGenFutureGen SystemsFutureGenFutureGen SystemsOxygenOxygen

Products/Products/ByproductsByproductsUtilizationUtilization HH22/CO/CO22

SeparationSeparationFuels/Chemicals

Fuel Cell

High Efficiency Turbine

Electricity

LiquidsConversion

ProcessHeat/Steam

GasificationGasification

GasStreamCleanup

Coal

Gas CleaningGas Cleaning

OxygenMembrane

Gasifier

H2

CO2

F igu r e 2

Enhanced Oil RecoveryCoal Seams Saline Reservoir

COCO22

SequestrationSequestration

PowerPower

Fuels and Fuels and ChemicalsChemicals

Fuel + HFuel + H22OO

Page 11: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 11

FutureGenFutureGen Research Initiative - Status

FutureGenFutureGen Research Initiative - Status

February 27, 2003 - Presidential announcement

• Received strong support from states, industry, international community and some environmentalists

April 2003 – Initial project plan developed

October 2003 - Completed DOE affirmation of Mission Need for FutureGen (zero-emission coal option)

FutureGen Program Plan submitted to Congress

Fiscal Year 2004 funding of $9 million appropriated

DOE ready to enter into negotiations with industry

February 27, 2003 - Presidential announcement

• Received strong support from states, industry, international community and some environmentalists

April 2003 – Initial project plan developed

October 2003 - Completed DOE affirmation of Mission Need for FutureGen (zero-emission coal option)

FutureGen Program Plan submitted to Congress

Fiscal Year 2004 funding of $9 million appropriated

DOE ready to enter into negotiations with industry

Page 12: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 12

Project Schedules --- Key PhasesProject Schedules --- Key Phases

Major ProjectMilestones

2003 2005 2007 2009 2011 2013Fiscal Year 2015

Supporting Research*

Design / Construction

Shakedown / Operation

Project Definition &Site Characterization

Follow-onTesting

* Supporting research includes research embedded in the FutureGen project and additional research in FE’s carbon sequestration, IGCC, turbines, and fuel cell R&D programs.

Page 13: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 13

Project Schedule Project Schedule

BP0 – Project Definition,Baselining and NEPA

Procurement

BP2 - Shakedown, Full ScaleOperation, & Sequestration

Site Monitoring & Characterization

NEPA (EIS)

Permitting

Candidate Sites Identified

Preliminary Design

BP1 – Plant Detailed Design,Procurement & Construction

Construction

Base Plant

Detailed Design

Shake-down and Start-up

Full-Scale Operation(inc. sequestration)

Sequestration (Phase 1)

Construction

Design & Procurement

Technology Assessment

Site Selection

BP3 – Site Monitoring

(FY)2004 (FY)2005 (FY)2006

Jan.

04

Apr.

Jul.

Jan.

05

Apr.

Jul.

Jan.

06

Apr.

Jul.

Jan.

07

Apr.

Jan.

08

Apr.

Jan.

09

Apr.

Jul.

Jan.

10

Apr.

Jul.

Jan.

11

Apr.

Jul.

Jul.

Jul.

(FY)2007 (FY)2008 (FY)2009 (FY)2010 (FY)2011 (FY)2012

Apr.

Jul.

Jan.

12

(FY)2013

Apr.

Jul.

Jan.

13

Oct.

Oct.

Oct.

Oct.

Oct.

Oct.

Oct.

Oct.

Oct.

Oct.

(FY)2014

Apr.

Jan.

14

Jul.

Oct.

(FY)2015

Oct.

Apr.

Jul.

Jan.

15

( to2018)

Oct.

Phase 2 Sequestration

BP0 $61MM BP1 $571MM BP2 $308MM BP3 $10MM

FE R&D Advanced Technology(base plant design)

Continuous PowerFirst Plant Revenue

Cooperative Agreement Award

NEPA Record of Decision

Page 14: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 14

Potential For State and Local Participation

Potential For State and Local Participation

Compete for the FutureGen host site Offer incentives to Industrial Participants (e.g., streamline siting

and permitting process, offer subsidies if project is sited in the state, offer land for the site)

Cost-share in the project with the Federal Government Conduct outreach and education; provide geologic data and

services via State geological offices Continue participation in Sequestration Regional Partnership

program to assess and characterize future potential sites

Compete for the FutureGen host site Offer incentives to Industrial Participants (e.g., streamline siting

and permitting process, offer subsidies if project is sited in the state, offer land for the site)

Cost-share in the project with the Federal Government Conduct outreach and education; provide geologic data and

services via State geological offices Continue participation in Sequestration Regional Partnership

program to assess and characterize future potential sites

Page 15: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 15

Potential For International Participation

Potential For International Participation

Participation on a cost-shared basis can be either on the industry side or on the government side.

Interest in participation from Carbon Sequestration Leadership Forum members encouraged

Mechanisms for participation can be through existing, modified, or new international agreements or protocols

Benefits and information negotiable depending on extent of cost-shared participation.

FutureGen International Participation Prospectus

Benefits to worldwide use of coal is enormous if zero emissions coal option is proven and accepted.

Participation on a cost-shared basis can be either on the industry side or on the government side.

Interest in participation from Carbon Sequestration Leadership Forum members encouraged

Mechanisms for participation can be through existing, modified, or new international agreements or protocols

Benefits and information negotiable depending on extent of cost-shared participation.

FutureGen International Participation Prospectus

Benefits to worldwide use of coal is enormous if zero emissions coal option is proven and accepted.

Page 16: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 16

FutureGenFutureGen Near-Term Next Steps

FutureGenFutureGen Near-Term Next Steps

Begin Environmental (NEPA) process for project Begin development of competitive site selection criteria and process Complete selection process for industry Consortium

Once cooperative agreement in place with Consortium:

Develop test scope for validating FutureGen Assess cutting-edge technology readiness Site characterization, evaluation and selection Start preliminary design work Conduct permitting activities

Begin Environmental (NEPA) process for project Begin development of competitive site selection criteria and process Complete selection process for industry Consortium

Once cooperative agreement in place with Consortium:

Develop test scope for validating FutureGen Assess cutting-edge technology readiness Site characterization, evaluation and selection Start preliminary design work Conduct permitting activities

Page 17: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 17

Summary Remarks

FutureGen is a key research step towards proving the feasibility of a zero-emission coal option.

The goals are very challenging and it will collectively require our best minds and resources to meet these goals.

The cooperation and support of all stakeholders (federal state, and local governments, industry; environmental; NGO’s; and international) will be needed for FutureGen to be successful and accepted.

The potential benefits of a zero-emission coal option are enormous with respect to energy, environmental and economic security.

FutureGen is a key research step towards proving the feasibility of a zero-emission coal option.

The goals are very challenging and it will collectively require our best minds and resources to meet these goals.

The cooperation and support of all stakeholders (federal state, and local governments, industry; environmental; NGO’s; and international) will be needed for FutureGen to be successful and accepted.

The potential benefits of a zero-emission coal option are enormous with respect to energy, environmental and economic security.

Page 18: 1 FutureGen FutureGen Zero Emissions Energy Plant of the Future 2004 Indiana Energy Conference “Perspectives on the Energy Puzzle” September 16, 2004 University

U.S. Department of Energy 18

Web Sites For Additional InformationWeb Sites For Additional Information

GENERALwww.fe.doe.govwww.netl.doe.govwww.eia.doe.govwww.epa.govwww.climatescience.gov

SPECIFIChttp://fossil.energy.gov/techline/tl_cslf_print.htmlhttp://fossil.energy.gov/techline/tl_futuregen1_print.htmlhttp://fossil.energy.gov/events/speeches/03_sec_futuregen_022703.shtmlhttp://www.netl.doe.gov/coalpower/sequestration/index.html