Mike Eastman, Technology ManagerNational Energy Technology Laboratory
SECA Annual Workshop and Core Technology Program Peer Review
Boston, MA May 11, 2004
FutureGenFutureGen –– Electricity, Hydrogen and Carbon Electricity, Hydrogen and Carbon Sequestration from CoalSequestration from Coal
MLE-SECA-051104
Energy Use Compared to Economic Growth
GDP: History - U.S. DOC, Bureau of Economic Analysis; Forecast - Annual Energy Outlook 2004 Energy & Electricity: EIA, Annual Energy Review 2002; Annual Energy Outlook 2004
80120160200240280320360400440480
1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
2025
Inde
x: 1
973
= 10
0
Year
Real GDP
ElectricityGeneration
Total EnergyConsumption
+ 86 BkWh/year
$2.48 GDP/kWh
$3.20 GDP/kWh
$2.12 GDP/kWh
$2.21 GDP/kWh
MLE-SECA-051104Annual Energy Outlook 2004, Reference Case
Coal Expected To Provide 50% of Incremental kWhs(2003 to 2009) Despite Few Additions
Fuel Mix for Electricity Growth AEO’04
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2000 2005 2010 2015 2020
Coal Natural Gas Petroleum Nuclear Power Renewable Sources
Coal 59%of kWh Growth
2010 – 2025
Natural Gas 31%
Bill
ion
Kilo
wa t
t Hou
rs /
Y ea r
Natural Gas 33%
Coal 50%of kWh Growth
2003 – 2009
Coal 56% of Overall
kWh Growth
2003-2025
Was 43% in AEO 2003
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Increasing Natural Gas Price Forecasts
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
’99’00’01’02
’03
$/M
cf
Annual Energy OutlookPublication Year
’04
AEO 2004 Natural Gas Price Forecasts (Short-term forecasts indicate higher prices)
EIA April 2004 STEO(wellhead price forecast)
+ 30%2004 +42%
2005
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Natural Gas / Coal Competition
Increasing Desire for Energy Security0
1
2
3
4
5
6G
as p
rice
$ /
MM
Btu
Gas wins
Coal wins
• Coal wins short-term dispatch• Gas wins long-term capacity share
MLE-SECA-051104
Changing Natural Gas Generation ForecastsParadigm Shift in Fuel Use for Electricity
500600700800900
1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,000
2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
’01
’02 ’03
BkW
h/Ye
ar
Annual Energy OutlookPublication Year
’04
Gradual Recognition of Natural Gas Supply ConstraintsThree Year Decline (2020) Nearly Equal to Today’s Gas kWh Production
47% More Than ‘04
- 600BkWh
Reduced Estimate Now Supported by Substantial Increase in LNG Imports
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Changing LNG Import ForecastsShift in Imported Fuel for Gas-fired Generation
0.1
0.6
1.1
1.6
2.1
2.6
3.1
3.6
4.1
4.6
2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
’02
’03
Tcf/Y
ear
’04
Rapid Increase in LNG Supply AssumptionSupports Natural Gas Generation Potential
+ 3.3 Tcf 500% increase
+ 2.6 Tcf
Annual Energy Outlook 2002, 2003 and 2004
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North American LNG Regasification Terminals
A
C
1 3 4
28
27
6
18
20
5
11
21
12
197
14
B
D
16
17
9
28
30
29
31
10
15
22232425
2631
333413
35
FERC, December, 2003
ExistingProposed
• 4 existing terminals• 32 active proposals• 15 Tcf if all built• None under
construction• 7-year construction
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Dramatically Changed Perspectives On Infrastructure Security
Is It Safe?, Boston Globe, July 27, 2003
Tanker Docked at Everett, Massachusetts
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0
1
2
3
4
1970 1980 1990 2000
Coal Use
Contaminant Emissions Down SharplyU.S. Power Plants
Inde
x: 1
970
= 1.
0
ElectricityGeneration
Nitrogen Oxides
Sulfur DioxideParticulateMatter
Natural Gas Use
EPA, National Air Quality and Emissions Trends Report, 1999 (March 2001)DOE, EIA Annual Energy Review
Year
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Cradle to Grave: The Environmental Impacts from Coal,Clean Air Task Force, Boston, MA,June 2001
Broad Environmental Concerns About Coal
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Comparison of Emissions Between IGCC and other Coal-Fired Technologies
0
2
4
6
8
10
12
IGCC Plant(without SCR)
AFBC Plant (with SNCR) PFBC Plant (withoutSNCR)
PC-Fired Plant with FGD& SCR
SO2 (lb/MWh) NOx (lb/MWh) PM10 (lb/MWh)CO2 (10E-3 lb/MWh) Total Solids , (10E-2 lb/MWh)
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February 27, 2003FutureGen Initiative --“…the United States will sponsor a $1 billion, 10-year demonstration project to create the world's first coal-based, zero-emissions electricity and hydrogen power plant …”
Presidential Initiatives
January 28, 2003Hydrogen Fuel Initiative – “Tonight I’m proposing $1.2 billion in research funding so that America can lead the world in developing clean, hydrogen-powered automobiles.”
February 14, 2002Clear Skies Initiative -- calls for “… new tough standards to dramatically reduce the three most significant forms of pollution from power plants, sulfur dioxides, nitrogen oxides, and mercury.”
Climate Change Initiative – “will set America on a path to slow the growth of our greenhouse gas emissions and, as science justifies, to stop and then reverse the growth of emissions.”
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FutureGen• Integrated Sequestration,
Hydrogen, and Power Research Facility
All ProgramAll ProgramElements Elements SupportSupport
Presidential Presidential InitiativesInitiatives
Demonstration Program• Clean Coal Power Initiative
Elements of Coal & Power Program
Core R&D Program• Innovations for
Existing Plants• FutureGen Support
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Clean Coal Technology Roadmap Addresses Near- and Long-range Needs
• Short-term: existing fleet− Cost-effective
environmental control technologies to comply with current and emerging regulations
• Long-term: future energy plants− Near-zero emissions
power and clean fuels plants with CO2management capability
Can be found on CURC website
www.coal.organd NETL
www.netl.doe.gov/coalpower
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2000 2005 2010 2015 2020 2025 2030O2
Membrane
AdvancedGasifier/
Combustor
SequestrationReady Integrated
Adv. Power System
Near-Zero Emission Plants with
Sequestration
Integrated Adv. Power System
Sequestration Ready Near-Zero Emission Power
Plants
Integrated Adv. Power System w/Fuel Cell
IGCC &CFB
Demos
Envr. Control(Hg, water, byproducts)
Gas Cleaning Advances in System
ComponentsATS Syngas Turbine
SECA Fuel Cell
ATS Turbine
CO2 Capture
CO2 Sequestration
Sequestration ReadyNear-Zero Emission
Plants w/CoproductionPower/Fuel
Coproduction Liquids
H2Membrane
Fuel Cell/IGCC Test
IGCC Demos
FutureGen-Coproduction Hydrogen/Power/Sequestration
Technology Roadmap – Future Energy Plants
Technology Module Demos
Integrated Plant Demos
Near-Zero Emission Plants
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FutureGen Project Description
Pioneer advanced hydrogen production from coalEmit virtually no air pollutantsCapture and permanently sequester carbon dioxideIntegrate operations at full-scale –a key step to proving feasibility
World’s first near-zero emission, coal-based power plant to:
Goals1) Operate a full-scale (275 MW) integrated research plant2) Capture >90% of CO2 and permanently sequester (1 million tons/year)3) Prove effectiveness, safety and permanence of CO2 sequestration4) Test and validate cutting-edge technologies in “living laboratory”5) Push toward Clean Coal Technology Roadmap 2020 near-zero
emission targets
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Why FutureGen Is Needed• FutureGen is a key step to creating a zero emission
coal energy option• FutureGen will enable us to:
− Meet our growing energy needs with zero-emissions coal
− Secure this country’s economic and energy future through the clean use of coal, our most abundant, strategic, domestic energy resource
− Remove all environmental concerns over coal’s use including climate change concerns by sequestering carbon dioxide emissions from coal power plants, and
− Produce clean low-cost hydrogen with zero emissions for power generation or for transportation
• Integration of concepts and components is the key to proving the technical and operational viability
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Weyburn CO2 EOR Project• Pan Canadian Resources• 200-mile CO2 pipeline from Dakota
Gasification Plant• 130M barrels oil over 20-year project• $28M
Sleipner North Sea Project• Statoil• Currently monitoring CO2 migration• $80M “incremental cost”• $35/ ton CO2 tax
Geologic Sequestration Highlights(1 Million TPY CO2 , ~ 100 MW Coal Power Plant)
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Sequestration R&D• Barrier Issues
• Health, safety and environmental risks • Permanence and large scale verification• Capacity evaluation• Infrastructure• Uncertain regulatory frameworks• Protocols for identifying amenable storage sites
• Pathways• Depleting oil reservoirs• Unmineable coal seams• Saline formations• Enhanced terrestrial uptake• Ocean fertilization and injection• Regional Partnerships
Figure 2
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Gasifier
Coal
H2O
AirSeparation
Air
N2
O2
MarketableAsh/Slag By-product
SulfurRecovery
Gas Cleaning and Shift
Conversionto H2
H2O
MarketableSulfur
By-product
Gasifier
Coal
H2O
AirSeparation
Air
N2
O2
MarketableAsh/Slag By-product
Gasifier
Coal
H2O
AirSeparation
Air
N2
O2
MarketableAsh/Slag By-product
SulfurRecovery
Gas Cleaning and Shift
Conversionto H2
H2O
MarketableSulfur
By-product
FutureGen Flow Diagram
Deep Saline Aquifer
Depleted Oil & GasReservoirsUnminable
Coal BedsEnhanced
Oil Recovery
CO2
Refinery
Transportation
Air
SteamTurbine
H2 Turbine
Electricity
CO2Separation
H2Separation
H2 RichStream
H2 Product
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Hydrogen From Coal --- Objectives• Production: Central Pathway --- By 2015, demonstrate a 60% efficient , zero emissions, coal-fueled hydrogen and power co-production facility that reduces the cost of hydrogen by 25% compared to current coal-based technology (~$6/MM Btu)
• Production: Hydrocarbon Pathway --- By 2010, complete tests and evaluations of most promising hydrogen-rich, coal-derived liquids for reforming applications
• Storage --- By 2015, work with other DOE Offices to develop safe, affordable technology capable of storing 9 wt. % hydrogen
• Utilization --- By 2010, complete tests & evaluations of H2/natural gas mixtures in modified and advanced internal combustion engines
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Hydrogen Production --- Technology Hurdles• Production…Gasifier Reliability, Air Separation Cost and
Efficiency, Hydrogen Separation Cost and Efficiency, Co-Production Process Integration, Multi-contaminant Gas Cleaning, Syngas Convresion reactor Design and Performance, Catalyst-Wax Separation
• Storage…Materials
• Utilization: H2/natural gas combustion in ICEs, Performance and emissions control
• Process Engineering: Process Intensification
• CO2 Sequestration – Capture and sequester impact on cost of cost of electricity, MMV
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FutureGen Technology Developments & Challenges
Traditional Advanced Technology
Cryogenic SeparationAmine ScrubbersAmine ScrubbersGas Stream Clean-UpSyngas TurbineFuel Cell ($4,000/kW)EOR basedExisting GasifierSystem IntegrationPlant Controls
Research InventionsO2 MembranesHydrogen Membranes“Clathrate” CO2 Separation“Dirty” Shift ReactorHydrogen TurbineSECA Fuel Cell ($400/kW design)
Sequestration TechnologyAdvanced Transport Reactor“First of a Kind” System Integration
“Smart” Dynamic Plant Controls & CO2 Management Systems
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Project Cost & Cost-sharing• Total project cost is $950 million• $500 million (53%) -- direct project funding from DOE• $120 million (13%) -- from DOE sequestration program
DOE will use its best efforts to achieve or exceed a minimum 80/20 cost share for this R&D portion from partners outside the existing consortium
• $250 million (26%) -- direct funding is expected to be provided by the industry consortium
• $80 million (8%) -- to be provided by International partners
950Total10Site Monitoring
191Sequestration (design and construction)188Shakedown and Full-Scale Operation 480Plant Procurement and Construction 81Plant Definition, Baselining, and NEPA
EstimatedCosts ($M)
Cost Element
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Project Schedule --- Key Events
Major ProjectMilestones
2003 2005 2007 2009 2011 2013Fiscal Year 2015
Supporting Research*
Design / Construction
Shakedown / Operation
SiteCharacterization
Follow-onTesting
* Supporting research includes research embedded in FutureGenproject and additional research in FE’s carbon sequestration, IGCC, turbines, and fuel cell R&D programs
MLE-SECA-051104
Project Schedule
BP0 – Project Definition,Baselining and NEPA
Procurement
BP2 - Shakedown, Full ScaleOperation, & Sequestration
Site Monitoring & Characterization
NEPA (EIS)
Permitting
Candidate Sites Identified
Preliminary Design
BP1 – Plant Detailed Design,Procurement & Construction
ConstructionBase Plant
Detailed Design
Shake-down and Start-up
Full-Scale Operation(inc. sequestration)
Sequestration (Phase 1)
ConstructionDesign & Procurement
Technology Assessment
Site Selection
BP3 – Site Monitoring
(FY)2004 (FY)2005 (FY)2006
Jan.
04
Apr.
Jul.
Jan.
05
Apr
.Ju
l.
Jan.
06
Apr.
Jul.
Jan.
07
Apr
.
Jan.
08
Apr
.
Jan.
09
Apr
.Ju
l.
Jan.
10
Apr
.Ju
l.
Jan.
11
Apr
.
Jul.
Jul.
Jul.
(FY)2007 (FY)2008 (FY)2009 (FY)2010 (FY)2011 (FY)2012
Apr.
Jul.
Jan.
12
(FY)2013
Apr.
Jul.
Jan.
13
Oct
.
Oct
.
Oct
.
Oct
.
Oct
.
Oct
.
Oct
.
Oct
.
Oct
.
Oct
.
(FY)2014
Apr
.Ja
n. 1
4
Jul.
Oct
.
(FY)2015
Oct
.
Apr
.Ju
l.
Jan.
15
( to2018)
Oct
.
Phase 2 Sequestration
BP0 $61MM BP1 $571MM BP2 $308MM BP3 $10MM
FE R&D Advanced Technology(base plant design)
Continuous PowerFirst Plant Revenue
Cooperative Agreement Award
NEPA Record of Decision
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Progress to Date• February 27, 2003 - Presidential announcement
− Received strong support from states, industry, international community and some NGOs
• April 2003 - Project plan developed, RFI in Federal Register
• October 2003 - Completed departmental Critical Decision (CD)-0 process and later for CD-1 Acquisition Strategy
• October 2003 - Congress provided $9M for FutureGen for first year; subject to submission of FutureGenProgram Plan
• March 4, 2004 – Submitted FutureGen Program Plan to Congress
• Ongoing: Internally working on negotiations strategy, drafting selection criteria, test planning, and start of NEPA and project development
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FutureGen Test Plan• Base plant technologies
−Oxygen production−Gasification−Gas separation & clean-up−Steam and combustion turbines−Alternate feedstocks (coal types)
• Advanced cutting edge technologies (“living laboratory”)− ITM oxygen production−Hydrogen production−Hydrogen combustion turbines−Fuel cells and hybrids
• Sequestration system (Phase 1 & 2)• Integrated Plant Performance Verification• Long-term monitoring
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FY04 Activities($9M DOE)
(Assuming an award is made to industry in late 2004)
− FutureGen preliminary design activities will be initiated. − $2 million - Work on a draft Environmental Impact
Statement (EIS) will be initiated.− $1 million - Consortium will identify candidate sites and
gather environmental information so that potential sites can be fully characterized and analyzed.
− $6 million - ‘Preliminary design’, consisting of early or conceptual design and engineering activities, can proceed in advance of NEPA-related activities. NEPA precludes DOE sharing in any design and/or construction costs that extend beyond preliminary design, until after NEPA is completed. (cost shared activity)
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Next Steps• Department completed initial internal management
review requirements− Department may now begin negotiations with an
industry partner -- forecast awarding the cooperative agreement in late 2004
• Department will begin NEPA process • High priority -- develop a set of technical siting
criteria that will be used in an open, fair, and transparent competitive process
• Proposed sites will be qualified for consideration based on the technical and environmental criteria
• Qualified sites will be further evaluated on the technical criteria in parallel with the NEPA process for the project
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Key Issues• Consortium development awaiting outcome of
DOE out-year funding commitment− Impacts pre-award engagement− Need to identify key business issues and path
forward (liability, title ownership, intellectual property, revenue treatment, site selection…)
• Cost-sharing− Industry indicated willingness to invest $200M
for “missionary work” with no expectation of return on investment
• Sequestration introduces complexities− Site selection, ES&H issues, NEPA issues
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CoalGasification
Coal HydrogenFuel CellsIC Engines
Geologic CO2 Sequestration
Zero Emission H2
FutureGen Opens Door to “Reuse” of Coal in Transportation Sector
CoalGasification
High Quality Diesel Fuels
Clean Diesel Fuel
Shift and Separation
Fischer-Tropsch
Synthesis
H2
COCoal
H2
CO
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In Summary• Goal: By 2015, a 60
percent efficient, zero emissions, coal-fueled hydrogen and power co-production facility is operational
• Benefits:−Energy security−Early source of hydrogen
for fuel cell vehicles−Reduced emissions of
pollutants and GHGs
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Visit NETL Websitewww.netl.doe.gov
Also:www.fe.doe.gov
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Background Information
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Fossil Fuels with Sequestration
Renewables
Dream Source• Fusion• Thermochemical• Photochemical
Biomass photo: NREL, Calvert Cliffs Nuclear Plant
Hydrogen Production Options
Nuclear Power
Sources of Heat to Sources of Heat to Drive ReactionDrive Reaction
Water
Sources of Sources of HydrogenHydrogen The U.S. uses 14MM BPD of
oil for transportation14MM BPD = 220MM TPY of H2 at current efficiencies
Increasing annual coal production by 33% (330MM
tons) would provide 50MMTPY of H2
50MM TPY of H2 = 50% of our current
transportation requirements at Freedom Car efficiencies Biomass
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Hydrogen Production…How important is Coal?The National Academy of Engineering recently completed
a year long study of: “The Hydrogen Economy: Opportunities, Costs, Barriers and R&D Needs”
Key Findings…General and those specific to coal:
• Hydrogen could fundamentally transform the U.S. energy system; therefore a robust, ongoing hydrogen program is important
• Fossil Fuels will be one of the principal sources of hydrogen for the hydrogen economy…but carbon capture and storage technologies will be required
• The U.S. has vast coal resources…hydrogen from coal can be inexpensive…and…coal must be a significant component of R&D aimed at making very large amounts of hydrogen.
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Hydrogen from Coal Program Roadmap
* Incorporates technology being developed under the complementary Advanced Gasification and Sequestration for carbon dioxide capture and storage programs
2005 2010 2015
Advanced gas separation technology including membranes tolerant to trace contaminants identified
Determine optimum liquids and reforming parameters; initiate advanced liquids production research
Complete tests of sulfur-tolerant membranes and design of separation modules (CCPI)
Complete engineering designs and tests of advanced reforming and syngas processes
Complete tests of H2/nat’l gas mixtures in conventional and advanced ICEs)
Complete bench tests and design of prototype hydrogen storage module
Central Production
Utilization
Complete Commercial Scale Demonstrations*
FreedomCARand other
Applications
Liquids Production
Infra-structure
Complete lab tests of hydrogen storage …carbon and/or metal organic –based
Perform exploratory research on use of H2/nat’l gas mixtures in ICEs
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Water Gas Shift - Hydrogen Separation Membrane Reactor
CO + H2O CO2 + H2
H2
Membrane Tube Reactor Shell
catalyst
•Removal of hydrogen drives reaction to completion•Carbon dioxide stream at high pressure, ready for sequestration•Hydrogen available as a clean energy source
MLE-SECA-051104
GasificationCarbon Capture and Sequestration
