Panel Discussion: Economics and Risks of Scaling Up Carbon Capture and Oxyfuel

Approaches for Pulverized Coal Plants and Oxyfuel Applications

Washington, D.C.December 3-5, 2007

Carbon Capture: Status & Outlook

Anthony J. Cirillo, PE, MBAGeneral Manager, Power

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Charles (Chuck) D. McConnell Global VP, Gasification & OxyCoal; Praxair, Inc. 30 years experience in the air-gas supply/service business Professional affiliations include:

-Clean Coal Technologies Foundation of Texas-Texas FutureGen Advisory Board

BSChE, MBA

Eugene (Gene) Hernandez, P.E. VP, Marketing & Sales; Doosan Babcock Energy America LLC 25 years experience in utility consulting, project development

and major equipment sales Professional affiliations include:

-ASME Codes & Standards Division, PTC committees-Authored technical publications; ASME, EPRI, EEI

BS and MS Engineering

PanelistsPanelists

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Panel Discussion-Opening RemarksPanel Discussion-Opening Remarks

Current Events…a Harbinger? Oxyfuel Overview

– Definitions– What’s it got to do with CO2 capture?

Topics to be Explored– Competing technologies for CO2 capture– CO2 capture technology costs– CO2 capture and parasitic load burden

Challenges

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Current Events…a Harbinger?Current Events…a Harbinger?

Good: Washington DC… Feds

Backing Three Big CO2 Sequestration Projects October 2007-In a massive demonstration program seen as key to the future of coal-fired power generation, the DOE has announced its plans to invest $197 million in the nation’s first large scale carbon sequestration projects, which call for injecting CO2 into underground reservoirs in the Southwest, Southeast, and Great Plains.

Bad:Florida… Tampa Electric Cancels New IGCC Plant Due to Concerns Over GHG Requirements

October 2007 -TECo turned down a $133.5 million federal tax credit when it announced that it no longer plans to meet its 2013 need for base load generation with the construction of an IGCC power plant. The primary drivers of the decision include continued uncertainty related to CO2 regulations, particularly sequestration issues, …

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Current Events…a Harbinger (cont’d)?Current Events…a Harbinger (cont’d)?

~35% of the anthropogenic CO2 in the US comes from the power sector

Ugly: Kansas…Sunflower Electric’s Proposal to Build 2 x 700 MW Turned DownNovember 2007-They said that the expected 11 million tons of annual CO2 emissions was unacceptable. "I believe it would be irresponsible to ignore emerging information about the contribution of carbon dioxide and other greenhouse gases to climate change and the potential harm to our environment and health if we do nothing," says Rod Bremby, secretary of the Kansas Health Department.

Hideous: Florida…Southern, Orlando Muni Kills Clean Coal Plant Over CO2 ConcernsNovember 2007-Just 2 months after the project broke ground with a high profile ceremony attended by Energy Secretary Bodman and top officials from the sponsoring utilities, Southern Company and the Orlando Utility Commission announced they are terminating an advanced coal gasification power plant in Florida because of growing uncertainty about the possible imposition of federal or state greenhouse gas controls.

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Definition - Clean CoalDefinition - Clean Coal

"Clean coal technology" describes a new generationof energy processes that sharply reduce air emissions and other pollutants from coal-burning power plants.

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Definition – Capture ReadyDefinition – Capture Ready

Which is “more” capture ready?Which is “more” capture ready?

vsvs

Which is easier to capture…orWhich is easier to capture…or

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Definition – Capture [CO2] Ready (cont’d)Definition – Capture [CO2] Ready (cont’d)

Contention: While many combustion processes appear equal [i.e., capture ready], some

are more equal than others!

Premise: The end game is, “exclusive of compression, the CO2 is in a sequestration or pipeline-ready [i.e., transportable and

relatively free of water and other impurities] condition”.

Definition: Within the context of combusting, or processing a fossil fuel for combustion, the degree [i.e., purity, extent of

conversion] to which CO2 is produced while meeting the combustion objective.

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PostPost-Combustion-CombustionCapture ProcessCapture Process

-Conventional Fossil Fired -Conventional Fossil Fired Power Plants, inc PCsPower Plants, inc PCs-Chemical or Physical -Chemical or Physical Absorption ProcessesAbsorption Processes

Definition - OxyfuelDefinition - Oxyfuel

A hydrocarbon-based fuel, combusted A hydrocarbon-based fuel, combusted through oxidation using a high purity through oxidation using a high purity

oxygen stream, and where the products of oxygen stream, and where the products of combustion are essentially Hcombustion are essentially H22O and COO and CO22..

OxyfuelOxyfuelIntegratedIntegratedCaptureCaptureProcessProcess

PrePre-Combustion-CombustionCapture ProcessCapture Process

-aka, Decarbonization-aka, Decarbonization-IGCC, with/w-o Water-Gas-IGCC, with/w-o Water-Gas

Shift Reactor and AcidShift Reactor and AcidGas RemovalGas Removal

-SNG; Pipeline-ready-SNG; Pipeline-readySynthetic Natural GasSynthetic Natural Gas

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What do you do after you capture CO2?What do you do after you capture CO2?

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200

400

600

800

1000

25 50 75 100

Usable Storage Capacity, %

Years

of

Sto

rag

e

Once it’s captured, ample CO2 storage capacity likely exists.

It is impractical and/or uneconomical for all existing, or all new, power plant CO2-emitting sources to:– Capture, transport and

geologically sequester their CO2.

– Capture, transport and market their CO2 for EOR.

Yet, the promulgation of CO2 regulation and legislative efforts continue

Potential US/CanadaPotential US/CanadaGeologic Storage Capacity*Geologic Storage Capacity*

•Source: US Department of Energy, Phase I, President’s ClimateSource: US Department of Energy, Phase I, President’s ClimateChange Technology Initiative identified about 3,600 Gtons ofChange Technology Initiative identified about 3,600 Gtons ofpotential geologic storage. Power plant and other large industrialpotential geologic storage. Power plant and other large industrialsources are producing about 4 Gtons annually.sources are producing about 4 Gtons annually.

Potential Storage-3,600 gigatons

Life of knownUS coal reserves

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“What’s it have to do with CO2 capture?”“What’s it have to do with CO2 capture?”

Oxyfuel combustion…– Produces a high quality [CO2 concentration] flue

gas stream, which makes it easy to capture– Other benefits/attributes include:

• Represents an in-situ combustion process which, through increased thermal efficiency, reduces CO2 formation

• Can be retrofit on existing PC units• Has multi-pollutant removal potential• Is cost competitive with post-combustion capture

processes• Uses established component technologies

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Challenges-Oxyfuel…Panel DiscussionChallenges-Oxyfuel…Panel Discussion

Boilers: New Designs/Retrofits– Extremely hot flame temperatures– Air-tight furnace– Flue gas recycle %

O2 Production– High purity– Capacity: Several multiples over what exists

today

Costs ($/Kw): Capital and Operating– Burner modifications, flue gas recirculation– Gas plant; O2, CO2

– Parasitic load

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Discussion Areas-OxyfuelDiscussion Areas-Oxyfuel

Challenges (see prior slide) Oxyfuel application to:

– Boiler Type• New Plant vs Retrofit• Technology

– Pulverized Coal– Circulating Fluidized Bed

• Unit Size, MW• Fuel Type

– Coals-E. Bit, Lignite, PRB, Anthracite– Petroleum Coke– Biomass-Sawgrass, Wood Chips

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Discussion Areas-Broad Context (cont’d)Discussion Areas-Broad Context (cont’d)

CO2 Regulatory Uncertainty– How; What form, e.g., cap and trade– When– Who; Federal, State, etc

CO2 Capture & Disposal…it’s not widely, practically, applicable to many power plants– Sequestration– EOR– Commercial Use

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AppendixAppendix

Conventional PC-Oxyfuel simplified PFD Proxy: CO2 capture costs

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Conventional PC w/an Oxyfuel ConfigurationConventional PC w/an Oxyfuel Configuration

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Proxy: CO2 capture costs* for PC unitsProxy: CO2 capture costs* for PC units

Conventional PC

Oxy-fueled PC

Capital Cost Spread, w/ and w/o CO2 Capture ($/Kw)

Up to $950 Up to $1,300

Cost of CO2 Captured ($/ton)

Up to $34 Up to $27

Energy Penalty for Capture (% Mwnet)

Up to 27% Up to 25%

* 2004 cost data, encompassing plant sizes from 400-1200 Mw