Eskom UCGStrategic Intent

Presented at :

FFF & IEA-CCC Conference,

“Underground Coal Gasification - going forward”,

13th to 14th July 2011, Johannesburg, South Africa.

Chris GrossDr Mark Van der Riet

EPPEI, Technology DivisionEskom Holdings SOC LtdSouth Africa

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Content

1. Context

2. Eskom’s UCG Strategic Drivers

3. Majuba Coalfield, South Africa

4. Eskom UCG Program

5. Environmental Impacts

6. Risk Status

7. UCG Performance

8. Conclusions

Context

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Context

• Coal is one of South Africa’s largest primary energy resources.

• Eskom presently generates 88% of its electricity from coal.

• This predominance will decrease, with the introduction of alternative energy carriers to mitigate the impact of the continued usage of coal (refer to IRP 2010).

• Coal will however remain a dominant, albeit reducing primary energy carrier for the foreseeable future in RSA.

• Eskom has therefore run a comprehensive Clean Coal Technology research and development program for several decades, to explore, identify and demonstrate solutions for continued coal usage.

• Underground Coal Gasification (UCG) is one of the advanced clean coal technology options being demonstrated by Eskom

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Context - Eskom Primary Energy

2009/10 : 246,566 GWh Net

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Context - Policy Adjusted IRP 2010

Policy Adjusted IRP Capacity – 2010 to 2030

IRP Section 7.4 “Research into Underground Coal Gasification (UCG) should have a priority in the research agenda as there is a potential for this option to be used in place of natural gas.”

MW % MW % MW %

Coal 41071 45.9 16383 29.0 6250 14.7

OCGT 7330 8.2 4930 8.7 3910 9.2

CCGT 2370 2.6 2370 4.2 2370 5.6

Pumped Storage 2912 3.3 1332 2.4 0 0.0

Nuclear 11400 12.7 9600 17.0 9600 22.6

Hydro 4759 5.3 2659 4.7 2609 6.1

Wind 9200 10.3 9200 16.3 8400 19.7

CSP 1200 1.3 1200 2.1 1000 2.4

PV 8400 9.4 8400 14.9 8400 19.7

Other 890 1.0 465 0.8 0 0.0

Total 89532 56539 42539

Total capacity Capacity added (including

committed) from 2010 to

2030

New (uncommitted) capacity

options from 2010 to 2030

Existing 2010 capacity = 43,895 MW (including non-Eskom generators)Less decommissioning capacity (-10,902 MW up to 2030) = 32,993 MW by 2030

There is a clear intent to start moving South Africa away from coal in the next two decades

Eskom’s UCGStrategic Drivers

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Eskom’s UCG Strategic Drivers

1. Security of supply

2. Clean energy

3. Flexibility

4. Utilize Unminable Coal

5. Lower cost option

Lower C02

Emissions

Modularity, lead time

Competitive R/MWh

Potentially 350GWe

Baseload option

Better utilisation than conventional

mining

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RSA Unminable Coal Resources

Three quarters of South Africa’s coal resources are currently regarded as unminable. UCG is ideally suited to extracting such coals. UCG

is therefore a strategic energy option for the country’s future.

Map Source :

S Walker, Major Coalfields of the World,

IEA CCC/32, June 2000

UCG enables the effective extraction and use of previously unminable RSA coal resources

Majuba Coalfield,South Africa

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Majuba Colliery at closure : 1993

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Why choose Majuba for UCG ?

• Majuba coal field was found to be unminable by conventional means due to dolorite intrusions, heat affected coal and seam displacements

• Coal seam 280-300 metres deep

• Eskom owned the Mineral Rights

• Land used for cattle farming, and Eskom owns the farm land

• Study showed that gas could be co-fired with coal at Majuba power station giving a direct use for the gas.

• Study also showed that gas could be used as a fuel for a modern, high efficiency IGCC power station.

Dolorite intrusions

Majuba 4100MW power station

Eskom UCG Program

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Majuba UCG

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Eskom UCG Development Plan

2002

Scoping Study

2003

Pre-feasibility

Study

2005

Site

Characterisation

20th January 2007

Commissioned

5000 Nm3/h pilot plant

on Majuba coalfield

Done

To do

Current

28th October 2010

Commissioned

15000 Nm3/h co-firing into

Majuba power station

U2Comm

U3Comm

U4Comm

U5Comm

U6Comm

Commission

U1Comm

Apr 2009 Dec 2011 Sep 2015Mar 2015 Mar 2020 Sep 2022

ConstructionDesign

ConstructionDesign

Demonstration Plant

2100MW 1st Proof-of-Concept Plant

Provisional Future Dates

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UCG Project Progress

• UCG technology scan - April 2001

• Scoping study highlighted potential at Majuba colliery - Nov 2002

• Pre-feasibility study confirmed Majuba potential - Dec 2003

• Site characterisation study confirmed the potential - July 2005

• Commissioned a 3-5000 Nm3/h pilot plant - 20 Jan 2007

• First electricity generated from UCG gas at Majuba - 31 May 2007

Eskom flarestack – 20 Jan 2007

100 kW converted diesel gensetEskom has licenced UCG technology fromErgo Exergy Technologies Inc. (Canada)

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UCG Project Progress

Co-firing :

• Commissioned new co-firing gas treatment plant – Jun 2010

• Commissioned new 7km x 600mm NB pipeline to Majubapower station – Jun 2010

• Gas co-fired into Majuba U4 - 28 Oct 2010

UCG-OCGT demo plant :

• Design study underway for a demonstration plant comprising 250,000 Nm3/h gas production and a 100 – 140 MW gas turbine plant 15,000 Nm3/h gas

treatment plant

Gas Pipeline to Majuba

power station

© Eskom

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UCG Phased Development

This figure explains UCG modularity, and the technology roll-out

Pilot Demo 1st Proof-of-Concept Plant

5-15,000 Nm3/h

250,000 Nm3/h

3,800,000 Nm3/h

100-140 MW OCGT Approx 250-350 MW CCGT per unit X multiple units = approx. 2100 MW

+ +

Environmental Impacts

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Environmental Impacts : Water

• Baseline water sampling performed of aquifers, including coal seam

• Water from surrounding aquifers monitored from shallow and deep boreholes, in concentric rings surrounding the process

• UCG is monitored extensively with piezometers (for measuring pressure & temperature)

• No UCG contamination evident

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Environmental Impacts : Air

• Baseline air quality tests done prior to UCG

• Permanent meteorological station on the UCG site monitors wind speed/direction, ambient temperature, barometric pressure

• Eskom’s continuous ambient emission monitoring stations monitor meteorological parameters, SO2, NO2, O3, PM10 etc.

• Additional comprehensive audit completed for : meteorological parameters, CO, CO2, SO2, H2S, NO, NO2, BTX, NH3, PM10 , PM2.5etc.

• Permanent monitoring site to be established

• UCG-IGCC promises a reduction in greenhouse gas emissions, compared to conventional power stations

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Environmental Impacts : Land

• Comprehensive plan in place with management and rehabilitation procedures. Regular audits done.

• Baseline flora & fauna survey and soil tests done prior to UCG starting up

• Majuba site shows natural vegetation re-establishes rapidly after drilling disruption

• Surface impact minimal post-gasification

• Subsidence is being monitored at Majuba using devices for conventional underground monitoring. The potential strata collapse has also been modelled.

• No subsidence observed yet.

Risk Status

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Risk Status – Feb 2011

Risk Rank Mitigation

Environmental HighMonitoring, design,engagement

Permitting &Licences

High Engagement

Cost Creep &Financial

Medium Project management

Resources &Skills

Medium Recruitment & training

ScheduleCreep

Medium Project management

UCG Performance

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Coal Seams

Majuba Seam Detail

Details in another Eskom presentation

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Eskom’s UCG Production Data

Operating Data - 20 Jan 2007 to 20 Jan 2011 :

• Total coal consumed/gasified = 34 663 tons

• Total gas produced = 131 719 400 m3

• A representative CV of the gas was 4.2 MJ/Nm3

• The average efficiency is 72 % (coal @ 20 GJ/ton)

• Current gas production rate = 11500 m3/hr (6768 cfm)

• Average well exit temperature = 168 ºC (344 ºF)

• Maximum well exit temp (normally temporary) = 430 ºC (806ºF)

• Average water consumption = 0.58 litre per kg of coal.

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UCG Gas Composition Range

• Gas composition varies with the lifetime of the production well, and between production wells.

• Gas composition depends on the operating parameters such as P and flow, and also on the design of the underground gasifier.

• Incorrect gasifier design or operation can result in the gasifier running in combustion mode.

• The final volume of gas is a blended average from several production wells.

UCG Gas - major components only

Composition (% by vol)

Hydrogen H2 15 - 19

Oxygen O2 0.2

Water Vapour H2O 5

Atm. Nitrogen N2 47 - 55

Carbon Monoxide CO 7 - 12

Carbon Dioxide CO2 17 - 19

Methane CH4 3 - 5

Calorific Value LHV MJ/Nm3 3.5 - 5.1

Conclusions

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Conclusions

• UCG is a promising clean coal option which allows the effective extraction and use of previously unminable RSA coal resources

• UCG has a role to play in the reduction of greenhouse gases and has possible potential for carbon capture and storage

• The Eskom UCG pilot has been operating reliably since Jan 2007 – 53 months and counting !!

• No environmental concerns have been noted to date

• Eskom has embarked on the phased research, development and demonstration of the technology, culminating in the 1st Proof-of-Concept Plant comprising approximately 2100 MW

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THANK YOU

Eskom UCG website URL :

http://www.eskom.co.za/c/14/underground-coal-gasification/