Making CCS Affordable

Results from CATF’s “Coal Without Carbon” Report

An Investment Plan for Federal Action

EXPERT REPORTS ON RESEARCH, DEVELOPMENT,

AND DEMONSTRATION FOR AFFORDABLE CARBON

CAPTURE AND SEQUESTRATION

CCTR Advisory Panel Meeting

West Lafayette, IN

December 3rd, 2009

Clean Air Task Force is a non-profit organization dedicated

to reducing atmospheric pollution through research,

advocacy, and private sector collaboration.

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Motivation for Report

• Scientific consensus emerging that averting catastrophic climate

change requires deep carbon reductions of close to 100% by 2030-50.

• Coal power generation represents 40% of global energy CO2

emissions.

Nearly a third of the world’s coal plants are less than 10 years old

(most are less than 30 years old) and will not be retiring anytime

soon.

Global coal plant capacity is expected to double over the next 30

years, even with aggressive pursuit of energy efficiency and non-

fossil fuel power.

• There will be no solution to the climate problem without

implementing carbon removal and storage from existing and new

coal plants at large scale.

• However, current carbon removal technologies are relatively expensive

– so R,D and D to spur better, cheaper technologies is essential.

• “Coal without Carbon” is a roadmap for US R,D and D to accomplish

this goal.

Slide 3

Key Points

Coal Without Carbon

Cost cuts of 50% possible for reducing coal’s

carbon emissions

Report details specific federal policy

recommendations

• Specific areas of technology investment

• Expanded federal role in commercializing new

technologies

Slide 4

Study Areas

• Underground coal gasification

Lower pollution

Technology could dramatically reduce needed state/federal incentives

• Advanced, above-ground, coal gasification technologies

May cut carbon emissions of conventional coal by 90 percent or more

Could reduce costs of this emissions reduction by 40 percent

• Federal role for commercialization

A new multi-billion dollar public-private investment fund to develop a

broader array of cheaper carbon reducing coal strategies than traditional

funding allows.

• Post-combustion capture (PCC)

Needed to lower carbon emissions from the current global coal plant fleet

Report describes “pipeline” for developing breakthrough technologies

• Geologic carbon sequestration- needed for all capture technologies

Report describes federal role to move develop large scale sites

Slide 5

The Authors

• Kelly Fennerty

Director, Commercial Transactions, Summit Power Group Inc.

• Dr. S. Julio Friedmann

Director, Carbon Management Program, Lawrence Livermore National Laboratory

• Mike Fowler

Climate Technology Innovation Coordinator, Clean Air Task Force

• Dr. Alan Hattan

Ralph Landau Professor of Chemical Engineering Practice, Massachusetts Institute of

Technology

• Dr. Howard Herzog

Principal Research Engineer, Laboratory for Energy and the Environment, Massachusetts

Institute of Technology

• Dr. Jerry Meldon

Associate Professor of Biological and Chemical Engineering, Tufts University

• Dr. Robin Newmark

Deputy Program Director, Energy and Environmental Security Directorate, Lawrence

Livermore National Laboratory

• Eric Redman

President, Summit Power Group Inc.

Slide 6

Underground Coal Gasification (UCG)

Underground Coal Gasification

• Converts coal to “syngas” directly in deep seams

Air or oxygen and steam are injected through wells

Hydrogen-rich synthesis gas is extracted

Based on development in the 70s – 80s

Current projects in Australia, China, South Africa

• Very promising for CCS development

Raw syngas costs ~ $1.62/MMBtu for Wyoming site!

Standard equipment to remove CO2 adds cost, but still appears

competitive (lower capital and operation costs overall)

Reduces impacts of coal mining, water use, and pollution

• Needs federal program

Create core knowledge and science

Avoid environmental hazards

Integrate with CCS systemsSlide 8

Mobilizing Advanced Gasification for CCS

Advanced Gasification Technologies

• IGCC with CCS: available today & very important

Proven & warranted technologies from big companies

Fed’l help needed for 1st plants: grants, loans, ITC, etc.

Reflects newness, costs, recession, no carbon credits

• But “advanced” technologies also merit support

Possibility of significantly lower costs (BAH, 2008)

Also: efficiency, fuel flexibility, modularity, availability

• Some examples of “advanced” technologies

Catalytic coal-to-methane (e.g., GreatPoint Energy)

Molten bath gasification (e.g., Ze-gen, Alchemix)

Very high temperatures (e.g., ThermoGen Hague)

Slide 10

First Project Commercialization Fund

• A public-private partnership for 1st commercial

projects whose minimum scale requires debt

Funded by fed’l loans (via Treasury) + private money

Fund would provide direct investment, loans, and/or loan

guarantees as “keystone” of a financing “arch”

Lets key technologies be proven at commercial scale

Self-sustaining fund, if allowed to keep “upside” gains

If these technologies reduce CO2 emissions, society has

keen interest in speeding deployment & acting when private

funding would otherwise be incomplete

Management structure and implementation are key

Slide 11

Advancing Post-Combustion Capture

The Challenge

• CO2 capture and compression (CCC) targeting

80-90% of flue gas CO2

• Critical technology for retrofits of existing coal

fleet

• Projected costs with current technology for Nth

plant: $50-75/ton of CO2 avoided

First-of-a-kind plant > $100/ton of CO2 avoided

• Large CCC parasitic energy load (about 25% of

plant output) is a major contributor to costs

• The goal is to halve the costs

Slide 13

Meeting the Challenge

• Pilot and demonstration plants planned, under

construction or in operation; for example:

MHI and Fluor – amine scrubbing

Alstom Power and Powerspan – ammonia scrubbing

• Need for federal $ for demonstration plants

• Need for federal $ for R&D targeting more

efficient amine and ammonia-based – and

alternative – technologies

• Need to engage chemical engineering

community

Slide 14

Next Generation PCC

• Proposed federally supported research,

development & demonstration (RD&D) “pipeline”

Laboratory research through proof-of-concept

Pilots to scale up promising technologies

Demonstration plants for winning technologies

Simulation and analysis of the various technologies in

the pipeline

• Approaches

Improved chemical absorption processes and solvents

Alternate traditional separation processes (e.g.,

membranes)

New separation processes and materials

Slide 15

Next Generation PCC (continued)

• Promising alternatives already in R&D pipeline

Solid adsorbents, with and without immobilized

amines

Metal-organic frameworks

Ionic liquids

Structured materials

• Realistic to expect 50% cost reductions relative

to today’s commercial technology (MEA

scrubbing)

Slide 16

Geological Carbon Sequestration

Geological Carbon Sequestration

• Ready based on commercial analogs &

infrastructure

EOR/oil field experience

Acid gas injection

CO2 pipelines

• Challenges & uncertainties remain for scale-up

Pressure management in saline formations

Understanding and managing risks and hazards

Injection and monitoring in many geological settings

• Publically-funded large injections are required to

Accelerate learning and development of practices

Provide common frameworks

Reduce uncertainties and costs Slide 18

For More Information

• Download the full report from the web at:

www.coaltransition.org

• Contact CATF directly:

Slide 19

Kurt Waltzer

(614) 884-3768(w)

(614) 296-3710(c)

kwaltzer@catf.us