Pay Your Money and Take Your Choicepresented byRichard Gendreau, P.E.Coal Generation Technology OptionsR. W. Beck, Inc.IPED COAL POWER CONFERENCEJanuary 18-19, 2007 St. Petersburg, FL

The Coal ParadoxOn the One Hand:Abundant >250 years of reserves in the U.S.95% of U.S. fossil fuel reservesRelatively cheapOn the Other Hand:Capital-intensiveHigher emissions than other fossil fuels

Coal: Villain or Savior?(1) EU15: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United KingdomIts reality! Deal with it!

800-Pound Gorilla Carbon Emissions

CO2 Abatement from CoalCarbon Dioxide ReductionCarbon Capture and Storage (CCS) Track 2Increased Efficiency, Biomass Cofiring, etc. Track 1- 95%- 60%BaselineMedium TermLong TermTimePossible Now- 23%20102020TRACK 1TRACK 2

Coal Generation Technology OptionsPC and CFB TechnologiesSubcriticalSupercriticalUltra-SupercriticalOxyfuel CombustionIGCC

Comparing Technology EfficienciesHHV or Higher Heating Value (U.S., Australia)LHV or Lower Heating Value (Europe, Asia)LHV Efficiencies are 5% to 10% Higher than HHV Other Factors 3% to 5% point difference between U.S. and Europe

Pulverized Coal and CFB Technologies

Modern Pulverized Coal-Fired Power Plant

Drum and Once-Through Type Boilers

Subcritical Coal-Fired Power PlantsMostly Drum Type Boilers in U.S. and Once-Through Type Boilers in EuropeLowest Capital and O&M CostsFlexible OperationHigh AvailabilityNet Plant Efficiency (HHV) 35% to 37% (9,800 to 9,200 Btu/kWh)

Increasing Cycle EfficiencySH Steam Temperature, FEfficiency, %, HHV37404547100012001400TodayUSCSC

Impact of Efficiency on CO2 EmissionsPercent ReductionCO2 Reduction

Chart1

1.0700070472

1.0385362517

1.0088637874

0.9808397933

0.9543306097

0.9292166463

0.9053905784

0.882755814

0.8612251843

0.8407198228

0.821168199

0.8025052854

0.7846718346

0.7676137513

0.7512815438

0.735629845

0.720616991

0.7062046512

Tons

Sheet4

Chart2

1.0700070472

1.0385362517

1.0088637874

0.9808397933

0.9543306097

0.9292166463

0.9053905784

0.882755814

0.8612251843

0.8407198228

0.821168199

0.8025052854

0.7846718346

0.7676137513

0.7512815438

0.735629845

0.720616991

0.7062046512

Tons

Chart3

1.00412346720

0.96443844050.0395220588

0.93688305650.0669642857

0.91085852710.0928819444

0.88624072910.1173986486

0.86291860470.140625

0.84079248660.1626602564

0.81977267440.18359375

0.79977821890.2035060976

0.78073588040.2224702381

0.7625792320.2405523256

0.74524788580.2578125

0.72868682170.2743055556

0.71284580380.2900815217

0.69767887180.3051861702

0.68314389530.3196614583

0.66920218320.3335459184

0.65581813950.346875

&A

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Subcritical

Developing

Supercritical

USC

Tons

Percent

Cycle Efficiency (HHV Bituminous Coal)

CO2 Emissions, Ton/MWh

Percent CO2 Reduction

Sheet1

LHV34.70%35.79%36.84%37.89%38.95%40.00%41.05%42.11%43.16%44.21%45.26%46.32%47.37%48.42%49.47%50.53%51.58%52.63%Btu/lb: Net CV = Gross CV - 91.2H - 10.5M - 0.34O

HHV33.00%34.00%35.00%36.00%37.00%38.00%39.00%40.00%41.00%42.00%43.00%44.00%45.00%46.00%47.00%48.00%49.00%50.00%110004.44.56.2

Btu/kWh10339.393939393910035.29411764719748.57142857149477.77777777789221.62162162168978.9473684218748.71794871885308321.95121951228123.80952380957934.88372093027754.54545454547582.22222222227417.39130434787259.57446808517108.33333333336963.26530612246824LHV10648.078

1.0459619451.01519835840.9861926910.95879844960.9328849780.90833537330.88504472270.86291860470.84187180940.82182724250.80271498110.78447145880.76703875970.7503640040.73439881250.71909883720.70442335070.6903348837

TonsPercentPercent0.80458611160.7844714588

33%1.000%0.9633%

34%0.964%0.9234%

35%0.947%0.8935%

36%0.919%0.8736%

37%0.8912%0.8437%

38%0.8614%0.8238%

39%0.8416%0.8039%

40%0.8218%0.7840%

41%0.8020%0.7641%

42%0.7822%0.7442%

43%0.7624%0.7243%

44%0.7526%0.7144%

45%0.7327%0.6945%

46%0.7129%0.6846%

47%0.7031%0.6647%

48%0.6832%0.6548%

49%0.6733%0.6449%

50%0.6635%0.6250%

Sheet2

Sheet3

Modern Supercritical BoilersHigh Efficiency (38% to 41%)Lower Fuel CostsLow Specific Emissions (lb/kWh)Variable (sliding) Pressure Operation to Low LoadsGood Steam Temperature Control Over the Load Range Rapid Load Change and StartupFOF Similar to Subcritical (~4%)

Ultra-Supercritical TechnologyNo Clear Definition, 4350 psia, 1112 F/1112 F (300 bar, 600 C/600 C)Possible Efficiencies up to 46 Percent and HigherOngoing Materials Research and DevelopmentHigh Nickel Alloys Will Be Required and Will Significantly Increase Cost

CFB Technology

CFB Technology is MatureFully Commercial TechnologyOver 500 Units WorldwideUnits in Service for Over 28 Years300 MWe Units in Service460 MWe Supercritical Unit in ConstructionSingle 600 MWe Unit With Full Commercial Guarantees Being OfferedSubcritical and Supercritical CyclesDemonstrated High Availability

Oxyfuel Combustion Technology

Oxyfuel Combustion

Integrated Gasification Combined-Cycle Technologies

Integrated Gasification Combined-Cycle2H2S+O2 2H2O + 2S

Advantages of IGCC Compared to SC PCEfficiencies Comparable to Current Supercritical PC TechnologiesSomewhat Lower Air Emissions Lower Water ConsumptionLower Solid Waste Potential to Capture CO2 at Lower Cost Potential for Polygeneration Including Production of Fertilizer and Transportation Fuels

IGCC Power Market Challenges Unfamiliar Technology to Power Industry: Chemical Plant, not Combustion BoilerHigher Capital and Operating Costs Standard Designs and Guarantee Packages not yet Fully DevelopedReluctance to Assume Technology Risks Lingering Availability/Reliability Concerns Questions About Feasibility and Cost Using Low-rank Coals, Particularly PRB and LigniteThe 800-lb. Gorilla May Help to Change these Perceptions

Efficiency of Current Coal TechnologiesSubcritical PC (1)Supercritical PC (1)1. Bituminous Coal

IGCC (1)CFB (1)USCFuture IGCC

Chart1

1.045961945

1.0151983584

0.986192691

0.9587984496

0.932884978

0.9083353733

0.8850447227

0.8629186047

0.8418718094

0.8218272425

0.8027149811

0.7844714588

0.7670387597

0.750364004

0.7343988125

0.7190988372

0.7044233507

0.6903348837

Tons

Sheet4

Chart2

1.045961945

1.0151983584

0.986192691

0.9587984496

0.932884978

0.9083353733

0.8850447227

0.8629186047

0.8418718094

0.8218272425

0.8027149811

0.7844714588

0.7670387597

0.750364004

0.7343988125

0.7190988372

0.7044233507

0.6903348837

Tons

Chart3

1.0459619450

1.01519835840.0294117647

0.9861926910.0571428571

0.95879844960.0833333333

0.9328849780.1081081081

0.90833537330.1315789474

0.88504472270.1538461538

0.86291860470.175

0.84187180940.1951219512

0.82182724250.2142857143

0.80271498110.2325581395

0.78447145880.25

0.76703875970.2666666667

0.7503640040.2826086957

0.73439881250.2978723404

0.71909883720.3125

0.70442335070.3265306122

0.69033488370.34

&A

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Subcritical

Developing

Supercritical

USC

Tons

Percent

Cycle Efficiency (HHV Bituminous Coal)

CO2 Emissions, Ton/MWh

Percent CO2 Reduction

Chart4

10339.3939393939

10035.2941176471

9748.5714285714

9477.7777777778

9221.6216216216

8978.947368421

8748.717948718

8530

8321.9512195122

8123.8095238095

7934.8837209302

7754.5454545454

7582.2222222222

7417.3913043478

7259.5744680851

7108.3333333333

6963.2653061224

6824

Btu/kWh

Cycle Efficiency

Heat Rate, Btu/kWh

Sheet1

LHV34.70%35.79%36.84%37.89%38.95%40.00%41.05%42.11%43.16%44.21%45.26%46.32%47.37%48.42%49.47%50.53%51.58%52.63%Btu/lb: Net CV = Gross CV - 91.2H - 10.5M - 0.34O

HHV33.00%34.00%35.00%36.00%37.00%38.00%39.00%40.00%41.00%42.00%43.00%44.00%45.00%46.00%47.00%48.00%49.00%50.00%110004.44.56.2

Btu/kWh10,33910,0359,7499,4789,2228,9798,7498,5308,3228,1247,9357,7557,5827,4177,2607,1086,9636,824LHV10,648

1.0459619451.01519835840.9861926910.95879844960.9328849780.90833537330.88504472270.86291860470.84187180940.82182724250.80271498110.78447145880.76703875970.7503640040.73439881250.71909883720.70442335070.6903348837

TonsPercentPercent0.80458611160.7844714588

33%1.050%

34%1.023%Btu/kWh

35%0.996%33%10,339

36%0.968%34%10,035

37%0.9311%35%9,749

38%0.9113%36%9,478

39%0.8915%37%9,222

40%0.8618%38%8,979

41%0.8420%39%8,749

42%0.8221%40%8,530

43%0.8023%41%8,322

44%0.7825%42%8,124

45%0.7727%43%7,935

46%0.7528%44%7,755

47%0.7330%45%7,582

48%0.7231%46%7,417

49%0.7033%47%7,260

50%0.6934%48%7,108

49%6,963

50%6,824

Sheet2

Sheet3

Clean Coal Is Not an Oxymoron!Dramatically Reduced Emissions!Removal Efficiency

Escalating Power Plant CostsRecent 700 MWe Supercritical Coal Project - $1,800 to $2,000/ kWhAEP Announced They are Searching for Ways to Reduce the Costs of Two 600-MW IGCC Plants It Wants to Build in Ohio & West Virginia. AEP had Placed Tentative Price Tags of $1.2 Billion to $1.3 Billion Each on the Two Plants, but a Long-awaited Study Found Project Costs Greatly Exceeded Previous Estimates.

SummaryThe 800-Pound Gorilla is Driving Greater Interest and Development in Supercritical and Ultra-supercritical PC, IGCC, Oxyfuel, Carbon Capture and Other TechnologiesSupercritical Technology is a Well Proven, Low-risk Technology with Efficiencies Approaching 41 Percent (8,300 Btu/kWh) Today with Bituminous Coals Developments in New Materials are Expected to Increase USC Cycle Efficiencies above 45 Percent (

SummaryGasification and Related Processes Have Been Used Successfully for Decades in the Process and Petrochemical IndustriesThe COE from Currently Offered IGCC Technology is Generally Estimated to be 10% to 20% Higher than the COE from PC. This Difference is Greater with Low Ranked Coals, Such as, PRB and Lignite.Broad Acceptance of IGCC Technology in the Power Industry Awaits the Completion and Operation of Currently Planned IGCC Projects.

SummaryCarbon Capture from Coal Gasification Derived Syngas is Commercially Mature Oxyfuel and Other Technologies are Under Development to Reduce the Cost of Carbon Capture from PC and CFB Technologies But at What Cost?!!!!!

The 800-Pound Gorilla?

QuestionsRichard Gendreau, P.E.R. W. Beck, Inc.rgendreau@rwbeck.com(508) 935-1810IPED COAL POWER CONFERENCE

Gasification Basics

Gasification Basics

As Nick indicated, coal is critical part of our energy mix because it is abundant On the one hand:CheapAbundant >250 years of reserves in the US95% of US fossil fuel reservesOn the other hand:Capital-intensiveHigher emissions than other fossil fuelswe have over 250a years very major part of ourCare must be taken when comparing the reported cycle efficiencies of different technologies and data from different parts of the world:

HHV or Gross Heating Value Correct way to report the energy in different fuels ignores the processStarts/Returns at the Reference Temperature (77 F, 25 C)LHV or Net Heating ValuePractical rather than fundamentally sound recognizes boiler backend temperature limitsStarts at the Reference Temperature of 77 F (25 C) and is cooled to the arbitrarily temperature of 302 F (150 C)Differences depends on the chemical composition of the fuel - increase with increased hydrogen content in the fuelConservation of energy means that cycle efficiencies reported in LHV are higher than HHVUS uses HHV except for simple and combined cycle applications where LHV is usedEurope and Asia primarily use LHV exclusively Other factors Cooling water temperaturesCoal quality allows lower back end temperatures 40 to 50 FAuxiliary power consumption and boundariesStages of feedwater heating, reheat and other design optimization