Clean Coal Technology in Future Energy Supply

September. 10th, 2014

Masayoshi Kitamura

President J-POWER

(Electric Power Development Co., Ltd.)

2

１．About J-POWER

２． To Supply Stable and Cheap Electricity

３．World-Leading Clean Coal Technology

～solution for both of climate change and economical growth～

４．R&D for Next-generation Technology

～ challenge for the future of coal-fired power generation ～

Table of Contents

3

１．About J-POWER

J-POWER’s Facilities in Japan

Tokyo

60Hz 50Hz

The largest wholesale power company in Japan

Leading coal-fired, hydroelectric and wind power generation

Transmission service through the key trunk lines

Share of Japan’s Generation Capacity

Chubu

Tohoku

Others

KyusyuChugoku

Hokuriku

Kansai

Chubu

Kyushu

Tokyo

Coal

Hydro

J-POWER

21%

J-POWER

20%

Wind J-POWER

13%

Coal-fired power plant

Hydroelectric power plant

Nuclear power plant *

Geothermal power plant

Transmission line

7

59

1

1

* Currently under construction

approx. 2,400km

(As of March 31, 2013)

Overview: Domestic Power Business

4

Overview: Power Generation Capacity

Total capacity

22 GW *

Overseas

4 GW

Japan

18 GW

17 GW

0.8 GW Thermal 0.5GW, Wind 0.3GW

0

5

10

15

20

1950 1960 1970 1980 1990 2000 2010

Established by the government (1952) Fully privatized (2004)

Hydroelectric

Coal-fired thermal

Overseas

Trends in Power Generation Capacity

(GW)

Our core business (Details on the next page)

Japan

Wholesale Electric Power

Business (regulated)

Other electric power

businesses (unregulated)

(As of March, 2013)

* Capacity figures shown represent J-POWER’s net ownership interest. 5

6

Overview: Coal-Fired Power Generation

The current generation capacity is 8,412 MW (of which 4,300 MW is USC). Matsushima PS is Japan’s

first large-scale imported coal fired power plant, and Matsuura PS Unit 2 is the first ultra super critical

(USC) coal-fired power plant .

Takasago (Hyogo)

1# 250MW(1968)

2# 250MW(1969)

Isogo (Kanagawa)

New 1# 600MW(2002)

New 2# 600MW(2009)

Tachibanawan (Tokushima)

1# 1,050MW(2000)

2# 1,050MW(2000)

Sub-critical

Super critical

Ultra super critical (USC)

Takehara (Hiroshima)

1# 250MW(1967)

2# 350MW(1995)

3# 700MW(1983)

Ishikawa (Okinawa)

1# 156MW(1986)

2# 156MW(1987)

Matsuura (Nagasaki)

1# 1,000MW(1990)

2# 1,000MW(1997)

Matsushima(Nagasaki)

1# 500MW(1981)

2# 500MW(1981)

7

２．To Supply Stable and Cheap Electricity

0

2,000

4,000

6,000

8,000

10,000

12,000

1952

1955

1960

1965

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

新エネ等

石油等

ＬＮＧ

一般水力・揚水

石炭

原子力

(億kWh)

(年度)

原子力1.0%

石油等14.9%

LNG43.%

石炭30.3%

一般水力

揚水8.5%

新エネ等2.2%

(TWh)

Other RE

Oil

LNG

Hydro & Pumped Storage

Coal

Nuclear

8

Japan’s Electricity Supply by Energy Resources

After the oil crises in 1970s, Japan’s energy policy has aimed an well balanced energy portfolio and was about to realize it in 2010, then Fukushima disaster happened.

Challenge for Japan is to achieve a balanced energy portfolio while reducing nuclear energy.

J-POWER Matsushima PS

・ Commissioned in Jan. 1981

・ 1st laege scale imported coal-fired

power plant carried out in combination

with development of coal mine

Other Renewables

1.4 ⇒ 1.6 ⇒ 2.2％

Oil & Petro

14.4 ⇒ 18.3 ⇒ 14.9％

LNG

39.5 ⇒ 42.5 ⇒ 43.0％

Hydro & Pumped Storage

9.0 ⇒ 8.4 ⇒ 8.5％

Coal

25.0 ⇒ 27.6 ⇒ 30.3％

Nuclear

10.7 ⇒ 1.7 ⇒ 1.0％

Source: Energy White Paper 2013,

The Federation of Electric Power Companies of Japan (http://www.fepc.or.jp/english/index.html) (Fiscal Year)

[2011 ⇒ 2012⇒2013]

9

Capacity Factor by Fuel (10 power utilities total)

Nuclear PS and coal PS are supplying power as Base Load due to their economical

advantage. In Japan. Especially coal PS has stably maintained higher capacity factor.

To make up reduced nuclear power generation, coal-fired power generation is now

furthermore important for its stable fuel supply as well as economical advantage.

Source: Agency for Natural Resources and Energy ”Outline of electric power supply and demand(2003,2005,2010)”

Japan Electric Power Survey Committee “Japan Electric Power Survey Report”

Coal Oil LNG Nuclear

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0 2 4 6 8 10 12 14 16 18 20 22 240 2 4 6 8 10 12 14 16 18 20 22 24

Peak

Middle

Base

Change in Power Stations’ Operation

LNG (Middle Load)

Coal (Base Load)

Nuclear (Base Load)

Oil (Peak Load)

Hydro Power

Consumption for

pumping-up

Pumped Storage

Run-off River, Geothermal

Coal (Base Load) reduced

to zero

Before Fukushima Accident, LNG was used for the middle load and oil for the peak.

After Fukushima Accident, LNG is also used for the base, and oil for the middle, as nuclear for the base

load has disappeared.

before Fukushima after Fukushima

Run-off River, Geothermal

10

LNG (Base and Middle )

Oil (Middle and Peak)

11

Characteristics of Energy Resources for Power Generation

Energy resource portfolio for power generation is planned in balanced manner to achieve long term,

stable, economical and clean supply of electricity considering pros and cons of each energy resource.

It is necessary to understand not only the strong points but also possible weaknesses of each energy

resource when discussing the energy portfolio of power generation.

Energy Resource Fuel Supply

Security Economics

Global

Warming

Flexibility

of Power

Generation

Note

Pump Storage / Dam Hydro △ △ ○ ○

Possible to accommodate rapid change of Power Demand

Oil △ △ △ ○ Production is concentrated in Politically unstable countries.

Natural Gas（LNG） △ △ ○ ○

Caution is required to Global demand growth and competition. Require Large Discharging Facilities and Pipelines.

Coal ○ ○ △ ○

Working to reduce CO2 emission such as CO2 Capture and Gasification.

Dispersive construction of large plants are possible.

Nuclear ○ ○ ○ △ Necessary to upgrade safety measures and increase national acceptance.

Geothermal ○ ○ ○ △ Too small compared with Fossil Fuel Generation.

Anticipated to grow under Renewal Energy Law. Run of River Hydro △ ○ ○ △

PEAK

MIDDLE

BASE

12

３．World-Leading Clean Coal Technology

～solution for both of climate change and economical growth～

Isogo Power Station

13

14

0.50

0.75

1.00

1998 1999 2000 2002 2003 2004 2005 2006 2007Fisical year

Em

issio

n F

acto

r (k

g-C

O2/kW

h,n

et)

30

35

40

45

Energ

y E

ffic

iency（％

）

New unit 1

Old unit 1＆2

Emission Factor

gross efficiency

net efficiency

Emission Factor

New Isogo: World-leading USC Coal-fired Power Plant

Isogo Coal-Fired Power Plant

opened in1967

Numbers in （ ） are for Unit #1

New Isogo Coal-Fired Power Plant

Unit1 opened in 2002, Unit2 in 2009

17% of CO2 Intensity

improvement

Capacity 530MW 1200MW

(265MW×2） （600MW×2 ）

SOx 60ppm 10ppm (20)

NOx 159ppm 13ppm (10)

PM 50mg/m3N 5 mg/m3N (10)

Steam Subcritical Ultra-Supercritical

Efficiency (gross HHV) 38% 43%

CO2 Intensity (Net) 100 (base) 83

History of J-POWER’s Energy Efficiency Improvements

We achieved the world’s highest level of thermal efficiency at Isogo PS unit 2 as a result of our

continuous R&D for energy efficiency improvement for decades.

Takehara No.1

（250MW）

566 / 538℃

16.6MPa

Matsushima

（500MW x 2 Units）

538 / 538℃

24.1MPa

Matsuura No.1

（1,000MW）

538 / 566℃

24.1MPa

Tachibanawan

（1,050MW x 2 Units）

600 / 610℃

25.0MPa

Isogo New No.2*

（600MW）

600 / 620℃

25.0MPa

Sub-critical Super-critical (SC) Ultra-supercritical (USC)

Measures for improving generation efficiency

Improve steam conditions

Enlarge plant scale

Isogo New No.1*

（600MW）

600 / 610℃

25.0MPa

Trends in capacity per unit

45%

40%

35%

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Takasago

（250MW x 2 Units）

566 / 538℃

16.6MPa

Takehara No.3

（700MW）

538 / 538℃

24.1MPa

Ishikawa

（15.6MW x 2 Units）

566 / 566℃

14.6MPa

Matsuura No.2

（1,000MW）

593 / 593℃

24.1MPa [Legend]

Power plant names

(Capacity, number of units)

Steam temperature / Reheat steam temperature

Main steam turbine pressure

* Isogo No.1 (started operation in 1967) and No.2 (1969) have been replaced with cutting-edge units.

500MW

（1981）

1,000MW

（1990）

1,050MW

（2000） Inst

alle

d g

ross

therm

al effic

iency

(%, base

d o

n H

HV)

15

USC Plant; World top class plant efficiency

Gross Energy Efficiency = 45% (LHV)

#1：MST＝600ºC RST = 610ºC

#2：MST＝600ºC RST = 620ºC

16

17

Japanese Clean Coal Technology : Energy Efficiency

Energy efficiency of Japan’s coal-fired power generation is higher in comparison with other

countries including China, India and USA. Isogo PS marks the highest level in the world.

磯子火力

25%

27%

29%

31%

33%

35%

37%

39%

41%

43%

45%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Gro

ss T

herm

al E

ffic

iency (

%,

LH

V)

Isogo

J-POWER (total)

JAPAN

Nordic countries

Germany

USA

China

India

Thermal efficiency of coal-fired power generation in major countries (1990-2009)

Source: Ecofys “Ｉｎｔｅｒｎａｔｉｏｎａｌ Ｃｏｍｐａｒｉｓｏｎ of Fossil Power Efficiency and CO2 Intensity”

Dry type DeSOx system

Activated cokes feed

Activated cokes outlet

Processed gas outlet

Exhaust gas inlet

18

Merit of Dry-type DeSox System compared

to conventional Wet Scrubber

-Nearly 100% SOx removal possible

-Smaller water usage (<1/10)

-Smaller waste water to treat (<1/4)

-Space-saving for waste water treatment

19

Source: overseas: emission／OECD StatExtract 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

SOx and NOx emission from Isogo PS is fur less than those of fossil-fired power generation in

other developed countries due to advanced DeSOx and DeNOx system.

Coal Power Synthesis of Coal, Oil, Gas Power

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

（g/kWh）

Japanese Clean Coal Technology: DeSOx and DeNOx

0

50

100

150

200

250

300

350

Dus

t Em

issi

on (m

g/m

3N)

DeSOx+DeNOx+ESP:Coal DeSOx+LowNOx+ESP:Coal ESP:Coal DeSOx+LowNOx+ESP:Lignite ESP:Lignite

20 Source: “Preparation of the review relating to the Large Combustion Plant Directive”, prepared for European Commission Environment DG, July 2005

Dust Emission from Coal/Lignite-fired Power Plants in Europe and Isogo PS

by Type of Environmental Control Facility

Japanese Clean Coal Technology : Dust Removal

Dust emission from Isogo PS is fur less than those of coal/lignite-fired power plant in Europe

due to triple-stage environmental control system; Dry DeSOx + DeNOx + ESP.

* Other than Isogo, each power station is shown in reference number in the source (no plant name nor country identified)

* LowNOx means conventional NOx abatement measures including low NOx burner, air staging or flue gas recirculation without NOx removal facility

21

Coal is supplying 41%, the largest share of world total power generation.

Especially in China, India and USA, countries with greater energy demand, coal has higher share..

Even in renewable energy conscious Germany and Denmark, coal has the largest share more than 40%.

In Japan, coal is supplying 27% of total power generation.

Power Generation Portfolio in Selected Countries（2011）

Source: IEA ”World Energy Outlook2013”, IEA ”Electricity Information 2013”

Japan

Russia

EU

UK

World

Germany

Denmark

US

India

China

Coal Oil Gas Nuclear Hydro Bio+waste Wind Other RE

22

Coal-fired Power Generation to increase in Non-OECD Asia

As steady growth of Asian power demand continues, coal-fired power generation remains major role

to supply stable and cheap electricity.

⇒ Both of power generation and capacity will double by 2030 according to IEA.

In Asian coal-fired power plant market, majority was low efficiency sub-critical type, but it is now set to

shift to high efficiency plants due to save energy resources and to curve CO2 emissions.

Clean Coal Technologies contribute to sustainable development in Asia

Source: IEA “World Energy Outlook 2013”

Proven CCTs with

Preferred Finance,

Technical Transfer,

Joint Venture etc.

Wide

deployments

of latest CCTs

Coal saving and

CO2 emissions

reduction

CCTs

Commercialization

Further

Development of

CCTs

CO2 Credit etc.

Developing

Countries

Developed

Countries

CCTs Contribute to Global CO2 Reduction

Deploy latest proven CCTs to newly-built plants and the replacements

for old/low efficiency power plants so that energy saving and CO2

reduction can be achieved.

Clean coal technologies could effectively contribute to such rapid growing infrastructure building

and climate change mitigation in Asia through its CCTs and financial support.

23

24

４．R&D for Next-generation Technology

～ challenge for the future of coal-fired power generation ～

Development of Next Generation Coal-fired Power Plant

We aim to significantly increase energy efficiency and reduce CO2 emissions through the application of

oxygen-blown integrated coal gasification combined cycle.

Pulverized coal-fired Coal Gasification

<Aging plants>

Sub-critical

<Latest plants>

Ultra Super Critical

Advanced-USC

Integrated Coal

Gasification Combined

Cycle

Integrated Coal

Gasification Fuel Cell

Combined Cycle

(USC) (A-USC) (IGCC) (IGFC)

Efficiency*1: 36% 41% 46% 46% to 48% 55% or more

Steam temperature:

approx. 560℃ Approx. 600℃ Approx. 700℃

Gas temperature:

approx. 1500℃

Approx. 1500℃

or more

建設状況 （2013年1月現在）

*1 Net efficiency, based on HHV *2 Actual results through the replacement of J-POWER’s Isogo Thermal Power Plant

ST

Boiler

Next generation technologies Existing technologies

ST: Steam Turbine, GT: Gas Turbine, FC: Fuel Cell

25

STGasifier

GT

STGasifier

GT

FC

Development of Oxygen-blown IGCC

EAGLE project

1995

|

2013

Development of Japanese oxygen-blown entrained bed coal

gasifier

Establishment of gas clean-up technology

Coal type expansion

Establishment of CO2 capture technology (chemical absorption

and physical absorption)

Results

Developed coal gasifier with the world’s top-grade efficiency of

gasification.

Cut CO2 capture energy consumption by 30% (2 points up in power

generation efficiency) compared to conventional technology

(chemical absorption).

Osaki CoolGen project (170MW-class IGCC power plant)

Objective Verifying reliability, economy and operation of oxygen-blown

IGCC power plant for practical application.

2009 – 2012 Environmental assessment and feasibility study

2012 – 2016 Design and construction

2016 – 2018 Demonstration of IGCC

2019 – 2020 Demonstration of IGCC & CO2 capture

After 2020 Demonstration of IGFC & CO2 capture

Area of facilities for CO2 separate & capture trials

Area of facilities for IGCC trials

EAGLE pilot plant

(Fukuoka prefecture)

Construction site

(Hiroshima prefecture)

26

Development of CO2 Capture Technologies

Research and Demonstration Tests CO2 Capture Methods

Pre-combustion capture

CO2 separation and capture from the gas produced by IGCC before combustion in gas turbine.

Post-combustion capture

CO2 separation and capture from the gas produced by coal combustion in boiler.

Oxyfuel combustion

CO2 separation and capture from the gas produced by coal combustion in boiler, to which oxygen is supplied instead of air.

Coal

Gasification

Pulverized

Coal-fired

EAGLE Project

Organization J-POWER/ NEDO

Test period FY2001 to FY2009

Osaki CoolGen Project

Organization Osaki CoolGen Corporation

Test period From FY2018 (planned)

Matsushima Power Plant

Organization J-POWER/ Mitsubishi Heavy Industries, Ltd.

Test period FY2007 to FY2008

Callide Oxyfuel Project

Organization Oxyfuel Joint Venture (Japanese partners: J-POWER, Mitsui & Co., Ltd., and IHI Corporation, Australian partners: CS Energy, the Australian Coal Association, Xstrata Coal, Schlumberger

Location The Callide A Power Station in Queensland (Capacity: 30MW)

Test period From FY2012 (approx. 2 years)

27

Thank you for your attention.

http://www.jpower.co.jp/english/index.html