Clean Coal Technology in Japan

September 6, 2017

Hideyuki UmedaDeputy Director, Clean Coal Division,

Agency for Natural Resources and Energy,Ministry of Economy, Trade and Industry

1 The role of coal in Japan

1

Though coal is not the only the most abundant fossil fuel, it exists worldwide.

In many parts of the world, coal is the low-cost and stable energy resource.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2001年 2003年 2005年 2007年 2009年 2011年 2013年 2015年

原油 一般炭 ＬＮＧ

（yen/1,000kcal）Fuel Cost （CIF in Japan) Fuel reserve locations

40 61

227

40.6 65.1

155

46 59

118

54 64

112

53 56

109

53.3 55.1

113

Oil Natural Gas Coal

2000 2005 2010 2011 2012 2013

Recoverable reserves (year)

OIL COAL

13.7%6.5%

27.5%

19.4%

4.1%

1.6%

9.1%

31.0%

34.8%

47.7% 42.7% 0.1%

7.6%

7.6%

3.6%

2.5%8.2%

32.3%

0%

20%

40%

60%

80%

100%

Oil Natural Gas

Coal

North America Latin America EuropeMiddle East Africa Asia Pacific

1-1. Advantages of Coal

2

3

1-2. Target for “3E + S”

6% (Now)

Energy Security(Self-sufficiency)

Environment(GHG emission)

safety

【target 】25%

Electricity tariff increase after Great East Japan Earthquake(The renewable energy surcharge of FY2015 is ¥1.3trillion)

【target】Lower the Current tariff level

CO2 emission increase- Increase in thermal power generation - Nuclear power plant suspended

【target】Set out ambitious reduction target

Economic Efficiency(Power cost)

• Japanese government set out Japan’s energy mix toward 2030 in July, 2015

• The basic principles of “3E+S” is to achieve 3E+S (Safety, Energy security, Economic efficiency, Environment) simultaneously, and to materialize balanced electricity configuration.

1-2. Target for “3E + S” (2)

Energy Mix (Supply & Demand Outlook)To secure ‘Safety+3E’ of Japan’s Energy supply and demand:Foremost condition: Nuclear safety ⇒Safety

1. Improved energy self-sufficiency (about 25%) ⇒Energy Security2. Lower electricity costs ⇒Economic Efficiency3. Set a GHG reduction target and lead the world ⇒Environment

1. Self Sufficiency ↑up

3. CO2 Emission ↓down2. Electricity Costs ↓down

Use Renewable Less LNG More Coal

Max Renewable Use LNG Less Coal

No more inefficient Coal-fired Power PlantsMore Clean Coal technologies

Image of the capacity of thermal plant, in order to realizing the energy mixture

Source: WG on Criteria for judgment for thermal power plant 5

1-3. Realization of “Long-term Energy Supply and Demand Outlook” by operating thermal power plants In order to realize the Energy mixture in “Long-term Energy Supply and Demand

Outlook” by improving its thermal efficiency into the level of USC (Ultra Super Critical)

– LNG thermal plant: improve its efficiency at the level of Gas Turbine Combined Cycle (GTCC)

– Coal fired plant: use and operate IGCC or IGFC which has the latest technology

– Low efficient thermal plant: replace the worse one by better one

Generated energy (kWh) 284.5 billion

Operation rate (10 thousand kW) 80 %

281.0 billion

68 %*

* Decline of operation rate based calculation using the energy mixture

USC

SC

Sub-CNewly

establish(under

assess and supply plan)

USC

Renewable energy

2013 2030

47 million kW

40 million kW

50%

50%

2. R&D for Clean Coal Technology

6

Photos by Mitsubishi Heavy Industries, Ltd., Joban Joint Power Co., Ltd., Mitsubishi Hitachi Power Systems, Ltd., and Osaki CoolGen Corporation

65％

60％

55％

50％

45％

40％

Gas Turbine Combined Cycle (GTCC)Power generation efficiency: Approximately 52%CO2 emissions: 340 g/kWh

Power generation efficiency

GTFC

IGCC（Verification by blowing air)

A-USC

Ultra Super Critical (USC)Power generation efficiency :

Approximately 40%

CO2 emissions: Approximately 820g/kWh

1700 deg. C-class IGCC

1700 deg. C-class GTCC

IGFC

LNG thermal power

Coal-fired power

2030Present

Integrated coal Gasification Combined Cycle (IGCC)

Power generation efficiency: Approximately

46 to 50%CO2 emissions: 650 g/kWh (1700 deg. C-class)

Power generation efficiency: Approximately

46%CO2 emissions: Approximately 710 g/kWh

Advanced Ultra Super Critical (A-USC)

Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC)

Power generation efficiency: Approximately

55%

CO2 emissions: Approximately 590 g/kWh

Gas Turbine Fuel Cell Combined Cycle (GTFC)

Power generation efficiency: Approximately

63%CO2 emissions: Approximately 280 g/kW

Power generation efficiency : Approximately 57%

CO2 emissions: Approximately 310 g/kWh

Ultrahigh Temperature Gas Turbine Combined Cycle

Power generation efficiency: Approximately 51%CO2 emissions: 350 g/kWh

Advanced Humid Air Gas Turbine (AHAT)

Around 2020

Reduction of CO2 by approximately 20%

Reduction of CO2 by approximately 30%

Reduction of CO2 by approximately 10%

* The prospect of power generation efficiencies and discharge rates in the above Figure were estimated based on various assumptions at this moment.

7

2-1. The prospect of highly efficient and low-carbon next-generation thermal power generation technology

Reduction of CO2 by approximately 20%

8

• In IGCC, coal is gasified and burned at a “gas turbine”, and heat is recovered by combined cycle steam turbine.

• Thermal efficiency is approximately 46 to 50% and CO2 emissions can be reduced to approx. 700 g/kWh.

2-2. Integrated Coal Gasification Combined Cycle (IGCC)

Fukushima Revitalization Power540MW Nakoso IGCC (COD: Sep.2020)540MW Hirono IGCC (COD: Sep.2021)

Joban Joint Power Co.250MW Nakoso #10(Demo.2007-, Commercial 2013-)

Osaki CoolGenOsaki CoolGen Project(Demo 2016-)

IGCC Projects in Japan

Overview

○ Osaki CoolGen Project aims to realize innovative low-carbon coal-fired power generation that combines CO2 separation and capture with IGFC, which is the ultimate high-efficiency coal-fired power generation technology. Demonstration operation started on August 16, 2016.

(1) Technical feature

Thermal Efficiency Target: 55% (up from 40% of USC)※net, HHV

CO2 capture & storage through Oxygen-blown IGCC(2)Project entity: Osaki CoolGen Corporation

(Joint Venture of J-POWER and Chugoku Electric Power)

(3)Project Schedule: FY2012 to FY2021

Plant image

Project Outline

Project Schedule

9

FY 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

<1st stage>Oxygen blown

IGCCDemonstration

<2nd stage>CO2 Capture

with IGCCDemonstration

<3rd stage>CO2 Capture

with IGFCDemonstration

Demonstrationtest

Oxygen blown IGCCDesign, Manufacturing and Construction

Demonstrationtest

CO2 CaptureDesign, Manufacturing

and Construction

Feasibility study

Demonstration test

CO2 Capture with IGFCDesign, Manufacturingand Construction

Feasibility study

Waste water treatment unit

(Existing)

Coal gasification

unitGas clean up

unit

Waste water treatment unit(new)

CO2 capture unit

Air separation

unit

Gas turbine unit

Project Site: Osakikamijima cho, Toyota gun, Hiroshima

2-3. IGFC Demonstration Project (Osaki CoolGen)

The technology for storingseparated and captured CO2 in theground.

Although it is expected that largeamounts of CO2 can be treated, theacquisition of real operatingcapability and the selection of placeavailable for storage are the issues.

The research and development aswell as verification test are in theprocess toward the realization ofCCS technology around 2020.

Thermal power plant Placing CO2 separation and capture systems in thermal

power up to more than 90% of CO2 can be capturedwithplants captures out being released.

CO2 capture（ Carbon dioxide Capture ）

Separated and captured CO2

CO2 Utilization (CCU: Carbon dioxide Capture and

Utilization)

CO2 storage(CCS: Carbon dioxide Capture and Storage)

The technology for producingvaluables such as alternativefuels to oil and chemical rawmaterials using captured CO2.

The expansion of the applicationfor utilizing a large amount ofCO2, the establishment of themechanism for generating profit,and the efficiency of treatmenttechnology are the issues.

An example of separation and capture system

工場等

CO2は岩石中の隙間に貯留される

CO2

CO2Shielding layer

Storage layer

Storage layer

Conceptual diagram of

CCS

Shielding layer

CO2

2-4. CCU and CCS• The technologies for capturing, storing or effectively utilizing CO2 emitted from

power plants (CCUS) can be a key to reduce CO2 emissions from power plants to almost zero.

• In order to realize these technologies, several barriers should be overcome, such as ensuring low costs and storage areas.

• Japan promotes various research, development and demonstration projects related to CCUS towards realizing drastic CO2 emission reduction after 2030.

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AA

Projects / FY 2015 2016 2017 2018 2019 2020～

A

Con-struction

CO2 Injection100,000-

200,000t/year

Post Injection

Monitoring

R&Ds(2) CO2 Capture Technologies

Tomakomai

Demo Pj.

Practical use of

CCS tech.

Drilling Exploration wells

CCS Site Survey

Geological Survey

A(1) Safety Evaluation Technologies

Verifying Safety Evaluation Technologies

Cost Reduction

Identifying CO2 Storage Site

Achieving Operation Abilities

Confirming CCS safety

2-5. Japan’s CCS Policy

To aim the practical use of CCS technology around 2020, METI conducts Tomakomai Demonstration Project, R&D projects of elemental technologies for CCS, and survey for potential CO2 storage site.

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3. Overseas Deployment of CCT

12

3-1. World Coal Power Demand

• Coal fired Power Generation accounts for 41% in the world. As the electricity demand is expected to increase significantly over the next few decades, coal remains the major source of stable and economical electricity generation.

13Source: WEO2015

800gCO2/kWh

709gCO2/kWh

593gCO2/kWh

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1990 2013 2020 2025 2030 2035 2040

other RE

wind

Bio+waste

Hydro

Nuclear

Gas

Oil

Coal

World Electricity Generation (New Policies Scenario)

(TWh)

Source: IEA World Energy Outlook 201５

EU(185GW→77GW)

Russia(49GW→33GW)

Middle East(0GW→2GW)

Africa(42GW→85GW)

Eastern Europe(57GW→43GW)

India(154GW→４38GW)

Asia Pacific(excl. China & India)

(198GW→389GW)

USA(322GW→208GW)

South America(8GW→１8GW)

China(826GW→1,175GW)

Upper : Country or Region

Lower : Change in Generation Capacity (201２ → 2040)

: Year 2012, : Year 2040

Projection of Capacity of Coal-Fired Power Generation in the World

3-2. Clean Coal Technology for Global Environment

For some countries, adopting high efficiency coal power generation technology is a realistic and effective choice for environmental protection. Japan has a long history of the development of the CCT.

R:177G:151B:211

R:255G:190B:60

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CO2 Emissions/kWh by Fuels for Power Generation

800gCO2/kWh

709gCO2/kWh

593gCO2/kWh

International comparison of the amount of SOx, NOx per thermal power generation

(g/kWh) Synthesis of Coal, Oil, Gas Power Coal Power

Source:

overseas: emission／OECD Stat Extract Complete database available via OECD’s iLibrary

electricity generation／IEA ENERGY BALANCES OF COUNTRIES 2012 EDITION

Japan: Federation of Electric Power Companies investigation J-POWER・Isogo: actual data at 2012

India World Oil LNG LNG

(JPN Ave.) Combined*

Coal (JPN Ave.)U.S.

CO2 emissions from coal-fired power generation in foreign countries

CO2 emissions from coal-fired power generation in Japan

*The average of the conventional, 1300

degrees C, and 1500 degrees C classes

Source: Figures in Japan were estimated based on the report by the Central Research Institute of Electric Power Industry (2016) and development goals of each research project.Figures in foreign countries were taken from “CO2 Emissions from Fuel Combustion 2016“.

(R&D)

China Germany

(g-CO2/kWh)

Plant Unit Size(Gross)

Large Medium Small

Steam Condition ＞500MW ≧300MW ＜300MW

USC≧593℃＞240Bar

Maximum repayment terms

12 yearsMaximum repayment terms

12 yearsMaximum repayment terms

12 years

SC＞550℃＞221Bar

Ineligible

10 years [IDA-eligible countries,

Low electrification ratio,Geographically isolated location (islands area) ]

10 years [IDA-eligible countries,

Low electrification ratio,Geographically isolated location (islands area) ]

SUB-C221Bar＞ Ineligible Ineligible

10 years [IDA-eligible countries,Geographically isolated location (islands area) ]

3-3. OECD Sector Understanding on Export Credits for Coal-fired Electricity Generation Projects agreed in Nov-2015

Effective 1 January 2017

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3-4. High efficiency & High reliability of USC

Energy efficiency of Japan’s coal power plants is higher than those of other countries. Furthermore, Japan’s coal power plants keep high energy efficiency for a longer term based on sophisticated maintenance technology, which will sustain stable energy supply in Japan.

Source： Energy balances of OECD/Non-OECD countries-2012

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Japan

Korea

Indonesia

China

Australia

India

Germany

U.S.A

Changes in the efficiency of coal fired power generation by countryThermal efficiency(%, LHV)

Source: IEA World Energy Outlook 2015 17

3-5. CO2 Reduction Potential by Efficiency Improvement

316 288

1596

1308

4204

3539

886

658

0

500

1000

1500

2000

2500

3000

3500

4000

4500

実績 BP ｹｰｽ 実績 BP ｹｰｽ 実績 BP ｹｰｽ 実績 BP ｹｰｽ

日本 米国 中国 インド

CO

2em

issi

on （M

t-C

O2）

(▲28)

(▲665)

(▲288)

(▲228)

＋▲288 (Mt)＋▲665 (Mt)

＋▲228 (Mt)1.2Gt

• The CO2 reduction potential through applying the Japanese USC power plant to existing coal-fired power plants in the USA, China and India is 1.2Gt in total, based on the 2013 data.

Japan USA China India

Actual Actual Actual ActualBAT BAT BAT BAT

18

3-6. IGCC (Integrated coal Gasification Combined Cycle)Thermal efficiency and CO2 reduction of IGCC

IGCC is the latest technology for coal-fired power plant.

IGCC’s thermal efficiency will be 48% up from 42% of USC, which will also lead to reduce CO2 emission by 13% compared with USC.

42

48

35

40

45

50

USC IGCC

Efficiency

0.815

0.706

0.65

0.7

0.75

0.8

0.85

USC IGCC

CO2 Emissions

６％UP(15% more efficient)

13％DOWN

(kg-CO2/kWh)(LHV, net %)

19

3-7. IEA Energy and Air Pollution (WEO Special Report)

“Air pollution is a major public health crisis, with many of its root causes and cures to be found in the energy sector. Around 6.5 million deaths are attributed each year to poor air quality.”

The IEA proposes a Clean Air Scenario to cut pollutant emissions by more than half compared with WEO’s New Policy Scenario. Clean Air Scenario recommends;1. Setting an ambitious long-term air quality goal.2. Putting in place a package of clean air policies for the energy sector to achieve the long-term goal.3. Ensuring effective monitoring, enforcement, evaluation and communication.

(Source: IEA Energy and Air Pollution: WEO Special Report)

“State-of-the-art ESPs can achieve dust removal efficiencies of 99%, but reaching such high levels requires a sound configuration of the control device with the plant’s operational characteristics and the coal type. Introducing strict monitoring of plant emissions is a necessary stepin the face of widespread lack of compliance with pollution control regulations.”

20

0

20

40

60

80

100

120

140

160

180

Before After

NOx

0

10

20

30

40

50

60

70

Before After

SOx

0

10

20

30

40

50

60

Before After

PM

83%Down92%Down 90%Down

Before (Capacity 256MW×２)

ppm ppm mg/m3N

After (Capacity 600MW×2)

1967～2001

2002～

3-8. Air Pollutant Reduction TechnologyIsogo Coal power plant, Yokohama City

• Isogo coal power plant is located near residential areas in Yokohama City. Air pollutants are reduced drastically by using CCT.

3-9. Support for CCT project in developing countries

HR development

Invite people from government/power companies to Japan to understand cutting edge CCT.

Provide O&M training program for engineers, through inviting them to Japan.

Projectformulation

Plant Construction

PlantOperation

Send Japanese coal expert to hold a seminar or to diagnosis old coal power plants.

Projectorigination

F/S support

Financial support

O&M skill training

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Agency for Natural Resources and Energy

Thank you for your attention!

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