The future of clean coal -where can UCG fit in the mix?

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The future of clean coal - where can UCG fit in the mix?

Dr Lesley Sloss FRSC FIEnvSciIEA CCC, UK

Products and services offered by the Clean Coal Centre

Membership status of the IEA Clean Coal Centre at August 2014

Italy Japan

UK

BHEL

Anglo American Thermal Coal

USA

S Africa

Austria

Canada

GermanyCEC

Beijing ResearchInstitute of Coal Chemistry

Australia

Coal Association NZ

Suek

Electric Power Planning & Engineering Institute of China

Banpu

Poland

The foremost centre of excellence for all aspects of clean coal

knowledge transfer

International Workshops held in 2014

• 10th Workshop on Mercury Emissions from Coal, Clearwater, Florida, USA, 22-25 April – Lesley Sloss

• 3rd Workshop on Upgrading and improving power plant efficiency, Shanghai, China, 16-17 September –Geoff Morrison

• 2nd Workshop on Advanced Ultra-supercritical power plants development, Rome, Italy, 14-15 October –Geoff Morrison

• 4th workshop on Cofiring Biomass with Coal, State College, Pennsylvania, USA, 5-6 November – Deborah Adams

• The 3rd Workshop on Underground Coal Gasification took place on 7-8 November 2013 in Brisbane, Australia

CCT 2015

• 6th International conference on Clean Coal Technology, Krakow, Poland, May 2015 - Robert Davidson

The future of clean coal - where can UCG fit in the mix?

This presentation will cover:

• The case for coal• The drivers for cleaner coal• Current production and use• UCG – where does it fit?

The case for coal

Fossil energy resources by type

Total remaining recoverable resourcesProven reservesCumulative production to date

Coal Natural gas Oil

3 050 years

233 years178 years 142 years

61 years 54 years

World energy demand continues to rise

1 000

2 000

3 000

4 000

5 000

1980 1990 2000 2010 2020 2030 2035

MtoeOilCoalGas

Biomass

Nuclear

HydroOther renewables

Source: IEA WEO, 2013

Electricity generation in non-OECD countries is rising at an incredible rate

Electricity generation by source

2 000

4 000

6 000

8 000

10 000

1990 2035

TWhOECD

2011 1990 2035

Non-OECD

2011

Coal Renewables Gas Nuclear Oil

Source: IEA WEO, 2013

Global energy is changing

Challenge:• Developed regions are focusing on energy

efficiency and CO2 reduction

… but

• 1.3 billion people lack electricity, 2.6 billion lack clean cooking facilities whilst having access potential access to coal

Investment is needed in clean and affordable energy in emerging regions

The drivers for cleaner coal

World energy demand &related CO2 emissions by scenario

5 000

10 000

15 000

20 000

1990 2000 2010 2020 2030 2035

Mtoe

20

40

60

80 Gt

CO2 emissions (right axis):

Primary energy demand:

New Policies Scenario

Current Policies Scenario

450 Scenario

New Policies Scenario

Current Policies Scenario

450 Scenario

Change in world energy demand by fuel & scenario, 2011-2035

-1 500

-1 000

-500

0

500

1 000

1 500

2 000

Coal Oil Gas Nuclear Hydro Bioenergy Otherrenewables

Mtoe Current Policies Scenario

New Policies Scenario

450 Scenario

HELE future for coal

HELE is the means by which coal can remain in the energy mix in a carbon-constrained future

HELE = High efficiency low emission technology

• High efficiency combustion (super and ultra-supercritical and gasification options)

• State of the art flue gas cleaning• Carbon capture and storage (CCS)

HELE Technologies

+

HELE – High efficiency low emission

Legislation is evolving at different rates

Permit based limits and caps for major

pollutants, GHG trading

Relatively lenient

Relatively lenientGHG but not SO2/NOx

Relatively lenient

Relatively lenient

Japan, China and some of SE Asia have emission limits

Permits - combination of trading and emission limits

Combination of caps and emission limits

New SO2/NOx limits

Legislation in the EU

Integrated Pollution Prevention and Control

Large Combustion Plant Directive

EmissionsCeiling

Industrial Emissions Directive (IED)

What does the IED mean in practice?

All coal-fired units in the EU must have:• efficient particulate control systems• flue gas desulphurisation (FGD) or equivalent

technology to reduce emissions down to 150-400 mg/m3 or achieve over 92% removal (depending on plant size and age)

• low NOx burners and/or selective catalytic/non-catalytic reduction (SCR/SNCR) to reduce NOx emissions below 150-300 mg/m3

Plants must either meet this, work under a trading bubble or opt-out and close following limited operation until 2023 - this could mean around 1/3 of coal plants in the EU closing or fuel switching

Legislation in the US - emission limits under MATS(Mercury and Air Toxics Standards Rule)

In practice? - Retrofitting in the US

Coal plant closures, USA

Comparison of air pollution emission limits

What effect is legislation having on the coal industry?

In the EU, North America, Japan and China, plants which wish to continue operating into the next decade must have efficient controls for particulates, SO2 and NOx (all regions) and mercury (N America and China, incoming elsewhere)

Despite coal being “cheap”, maintaining a compliant coal plant is becoming expensive and some older plants do not merit the investment to remain open

New plants – must meet even stricter emission limits including, in some regions, either efficiency standards or CO2 limits

Proposed CO2 limits for new build coal plants

Country Proposed CO2 limit

EIB target* 550 kg/MWhUSA 500 kg/MWh (1,100 lbs/MWh)Europe 500/450 kg/MWhCanada 420 kg/MWh

Current averagefor coal plant >900 kg/MWh

* Proposed target by the European Investment bank above which funding will not be given

Stricter legislation is resulting in capacity change

Capacity additions & retirements by selected region, 2013-2035

500

1 000

1 500

2 000

2 500

2012

GW Renewables

Nuclear

Fossil fuels

United States2012

European Union2012

China

Addi

tions

Retir

emen

ts

Retir

emen

ts

Addi

tions

Retir

emen

ts

2035Ad

ditio

ns2035 2035

Source: IEA WEO, 2013

Getting funding is challenging

Last year the World Bank announced a new directive to limit financing of coal-fired power plants to “rare circumstances” (although this may be reviewed)

Similar policies issued by the Obama Administration have sought to prevent investments into coal-fired power plants by the Treasury Department and the Export-Import Bank

But … South Africa alone has some 30 billion t of coal reserves. Zimbabwe has another 500 Mt. Tanzania and other countries also have plentiful coal resources

…. BUT coal-fired fleet to grow considerably (an extra 600-700 Mt of coal demand?)

Platt’s Power Station Database, as of 2013

• 363 stations (711 units) are under construction (or repowered)

• Totalling ~293 GWe• versus 41 GWe of gas-fired new builds

Of the new coal projects:• 109 GWe in India• 106 GWe in China• 5-13 GWe in each of the following countries:

Germany (8), Indonesia (13), Korea (6), S Africa (10), Taiwan (5), Vietnam (13)

New challenges for coal

The current focus in the OECD is moving from traditional pollutants (particulates, SO2 and NOx) to GHG, especially CO2

Many regions have targets for renewables, efficiency and CO2 reduction

Coal faces a challenge to be seen as a feasible option in a carbon-constrained future

The future for coal?

In the developed world, the challenge is compliance - methods of coal combustion will need to change to meet HELE requirements to remain part of the future energy mix

In the emerging world, the challenge is often funding and accessibility, with environmental challenges for conventional coal

Will unconventional coal and gas be important?

Current production and use of unconventional coal and gas

Unconventional coal and gas options

• Fracking and shale gas

• Coal bed methane (CBM)

• UCG

Unconventional resources are widely distributed

Remaining unconventional gas resources in selected regions, end-2012 (tcm)

History of fracking in the USA

• Fracking since late 1800s and early 1900s to stimulate wells in hard rock

• Legislation to protect ground water introduced in 1970s by EPA

• Unconventional gas resources explored in 1970-80s

• 1999 – Barnett shale in Texas starts the modern high pressure process of fracking –by 2004 EPA queries environmental impacts

• 2005 – the most important date, Energy Policy Act exempts fracking from key legislative obstacles; but investigations into harmful impacts continue

Image: Wikimedia Commons/Ruhrfisch

Growth in US shale gas since 2005

• Discovery of shale gas has boosted US gas reserves by 750 tcf to 2300 tcf (+30% over conventional reserves); and 24 billion bbls of oil

• And production boosted by 20% over the last few years

Global transportation market as an application of CBM, market estimates and forecast

Can UCG be a means of moving coal into the “healthier” gas market?

Majuba

Anti-UCG propaganda

“Setting fire to coal underground could answer our energy prayers, or start an environmental disaster on a bigger scale than ever before.

If you thought shale gas was a nightmare, you ain't seen nothing yet ….To the horror of anyone concerned about climate change, modern miners want to set fire to these deep coal seams and capture the gases this creates for industry and power generation. Some say this will provide energy security for generations to come. Others warn that it is a whole new way to fry the planet.”

New Scientist, March 2014

But UCG can be cleaner than conventional coal

Can UCG be seen as a HELE option?

IEA comments:

• UCG using state of the art gas turbines could approach the efficiencies achieved by IGCC (up to 45% or more)

• UCG might offer a relatively simple and low-cost way of storing CO2; given favourable geological conditions, CO2from reacted syngas could be stored underground in the cavities created by the UCG process

Significant work on UCG continues

New developments being announced

• Linc Energy (MoU) for a 400 MW UCG project in Tanzania to provide power to the Tanzanian electricity grid by 2017 (announced 6th Aug 2014)

• On the 4th August 2014, it was announced that the Indian Government are preparing a draft policy on UCG. Several coal blocks have been identified for UCG purpose for government companies in the state and the applications for the same have been invited http://coal.steelguru.com/india/16921/india_govt_preparing_draft_policy_on_underground_coal_gasification

Challenges for UCG

• funding towards commercialisation

• prove potential as an unconventional gas source

• improved media and public perception

• proof of CCS potential and inclusion as a HELE option

Bridging required

HELE …. We’re only half way to where we need to be

HELE = High efficiency coal + CCSHELE = UCG + commercialisation + CCS

Thank you for listening

Dr Lesley Slosslesleysloss@gmail.com

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