Overview of the DOE Industrial Carbon Capture and Storage Program

Overview of the DOE Industrial Carbon Capture and Storage ProgramStorage ProgramStorage Program

Gasification Technologies Conference 2010No ember 2 2010

Dr Darren Mollot

November 2, 2010

Dr. Darren MollotDirector, Office of Clean Energy Systems

Office of Fossil Energy

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Why Invest in CCS

“Overwhelming scientific evidence shows that CO2 emissionsOverwhelming scientific evidence shows that CO2 emissions from fossil fuels have caused the climate to change, and a dramatic reduction of these emissions is essential to reduce the risk of future devastating effects.” Sec. Chu, Science g ,Magazine, Sept. 2009

“Coal is essential as a leading source of energy for the UnitedCoal is essential as a leading source of energy for the United States and the world well into the future. But for our state and nation to remain strong and competitive, we must have a real and urgent plan to invest in new technologies, especially g p g p ycarbon capture and storage or CCS,” Sen. Rockefeller August, 2010

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Path Forward

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Carbon Capture & Storage RD&D Goals

Early low-cost, reliable and safe CCS deployment becomes a viable technology option and significant contributor to achieving

the President’s Greenhouse Gas reduction target of >80% by 2050

• Accelerate CCS deployment potential by 10 years.

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p y p y y

• Leverage R&D investment against potential savings in cost of electricity and capital investment relative to current baseline R&D.

• Complete 1st generation demonstrations addressing safe and reliable p g gintegration into power and industrial plant operations in the 2015 timeframe.

• Accelerate new, advanced 2nd Generation CCS and power plant technologies to reduce cost and be in a position to rapidly deploy low-cost CCS in post 2020 time frame.

• Expedite the development and demonstration of “transformational CCS technologies” aimed at revolutionizing the market for low-carbon power and industrial markets in the 2030 timeframe.

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American Recovery and Reinvestment Act of 2009 (Stimulus) Funding Summary( ) g y

Program/Project Activity ($ in thousands)

Clean Coal Power Initiative (CCPI) - Round 3 800,000

Fossil Energy R&D (FutureGen) 1,000,000

CCS from Industrial Sources 1,520,000

Site Characterization 50,000

Regional Sequestration Training and Research 20,000

Fossil Energy Program Direction 10,000

Total 3,400,000

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Accelerating Coal CCS Program R&D by 10 Years … Achieving the President’s GHG Reduction Targetsg g

DOE Base R&D – Enables 2nd Gen technology deployment by 2030 

• Department’s Target‐level budget provides $1.651 Billion FY11‐15 for core R&Ddi d i ifi i d b i b d h i h f d i i• Readies 2nd Generation gasification and combustion‐based pathways with CCS for demonstration in 2026 

timeframe

Accelerated R&D – Enables 2nd Gen technology deployment by 2020 (+$635M ARRA Funds) 

• Additional investment of $635 million accelerates power and industrial carbon capture technology forAdditional investment of $635 million accelerates power and industrial carbon capture technology for existing plants, oxy‐combustion for existing and new plants, advanced gasification and turbine combined cycle plants with CCS,  and carbon storage site characterization 

• Readies 2nd Generation gasification and combustion electric power production systems with CCS for demonstration in 2016 timeframe

• Establishes the Carbon Capture Simulation Initiative (NETL and other National Labs) and NETL’s Simulation‐based Engineering User Center linked with the Regional University Alliance

• Support transformation research and flexibility to integrate OS and ARPA‐E technology

• Saves the Nation $300 billion in electricity costs reduces capital investment requirements by $80 billion• Saves the Nation $300 billion in electricity costs, reduces capital investment requirements by $80 billion thru 2050  based on STEP Base Case Analysis

• Does not include benefits of applying CCS to existing or new NGCC plants, or growing benefits beyond 2050

• Maintains U.S. leadership in CCS and promotes global deployment

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Driving Down the Cost of CCS with Advanced Technology (IGCC)

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with Advanced Technology (IGCC)Cost of Electricity (COE) decreases by 30%

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CCS Demonstrations for 1st Gen Technology Location & Cost ShareLocation & Cost Share

Basin ElectricPost Combustion CO2 Capture

$287M T t l

Basin ElectricPost Combustion CO2 Capture

$287M T t l

Archer Daniels MidlandIndustrial Power & Ethanol

$164M – Total

Archer Daniels MidlandIndustrial Power & Ethanol

$164M – Total

Future GenIGCC w/ Full Carbon Capture

$3.052B – Total$1.070B – DOE

Future GenIGCC w/ Full Carbon Capture

$3.052B – Total$1.070B – DOE

Summit TX Clean EnergyCommercial Demo of AdvancedSummit TX Clean EnergyCommercial Demo of Advanced

$287M – Total$100M – DOE$287M – Total$100M – DOE

$$99M – DOE

$$99M – DOE

$$

Commercial Demo of AdvancedIGCC w/ Full Carbon Capture

$1.727B – Total$350M – DOE

Commercial Demo of AdvancedIGCC w/ Full Carbon Capture

$1.727B – Total$350M – DOE

AEPPost Combustion CO Capture

AEPPost Combustion CO Capture

NRGPost Combustion CO2 Capture

$334M – Total

NRGPost Combustion CO2 Capture

$334M – Total

Southern CompanyIGCC-Transport Gasifier Southern CompanyIGCC-Transport Gasifier

HECACommercial Demo of Advanced

IGCC w/ Full Carbon Capture$2.840B – Total$308M DOE

Post Combustion CO2 Capture$668M – Total$334M – DOE

Post Combustion CO2 Capture$668M – Total$334M – DOE

$167M – DOE$167M – DOE

w/Carbon Capture$2.880B – Total$270M – DOE

w/Carbon Capture$2.880B – Total$270M – DOE

$308M – DOE

Air ProductsH2 Production$384M – Total$259M – DOE

Air ProductsH2 Production$384M – Total$259M – DOE

Leucadia EnergyMethanol

$432M – Total$259M – DOE

Leucadia EnergyMethanol

$432M – Total$259M – DOE

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Cl C l P I iti ti (CCPI)Clean Coal Power Initiative (CCPI)

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USDOE CCS Utility Demonstration ProjectsBasin ElectricBasin Electric

Post Combustion • 120 MWe Slipstream from

Existing PC Plant• Capture 1 Million TPY CO2

Inject in Saline Reservoir

AEP MountaineerPost Combustion

• 235 MWe Slipstream from Existing PC Plant

C t 1 5 Milli TPY CO

Hydrogen Energy California IGCC Inject in Saline Reservoir

• HTC Purenergy Amine • Mar 2011 - Oct 2013

$100M DOE $287M Total

• Capture 1.5 Million TPY CO2 Inject in Saline Formation

• Chilled Ammonia• Jan 2013 – Dec 2015

$334M DOE $668M Total

• 257 MWe Net, 75% Coal/ 25% Petcoke

• 90% Capture - 2 Million TPY CO2for EOR

• Feb 2012 – Nov 2016

Southern Company ServicesIGCC-Transport Gasifier

$308M DOE $2,840M Total

S C

• 582 MWe Net, Lignite• Designed for 67% Capture –Initially 1 million TPY For EOR• June 2010 – May 2014

$294M DOE $1,625MTotal

NRG EnergyPost Combustion

• 60 MWe Slipstream from Existing PC Plant• 90% Capture- 400,000 TPY CO2 for EOR

Summit Texas Clean EnergyIGCC

• 400 MWe Net, Coal• 90% Capture – 3 Million TPY CO2

for EOR

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• Fluor Economine FG Plus (advanced)• Ramgen Advanced Compressor• Dec 2012 – Dec 2014

$167M DOE $334M Total

• Oct 2010 – July 2014$350M DOE $1,726M Total

F t G 2 0FutureGen 2.0

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FutureGen 2.0

FutureGen Goals:• Provide a clean coal repowering program and carbon dioxide (CO2) storage network.

The world’s first commercial scale oxy combustion power plant• The world’s first, commercial-scale, oxy-combustion power plant• Will help to open up the over $300 billion market for coal unit repowering and

position the nation’s electric power sector to utilize technologies that could capture and sequester significant amounts of CO2

• To repower Ameren’s 200 megawatt Unit 4 in Meredosia Illinois with advanced oxy-• To repower Ameren s 200 megawatt Unit 4 in Meredosia, Illinois with advanced oxy-combustion technology. The plant’s new boiler, air separation unit, CO2 purification and compression unit will deliver 90 percent CO2 capture and eliminate most SOx, NOx, mercury, and particulate emissions.

• Cooperative agreements have being negotiated that awarded $1 billion in Recovery A t f di t th F t G Alli A E R B b k & WilAct funding to the FutureGen Alliance, Ameren Energy Resources, Babcock & Wilcox, and American Air Liquide.

• In addition, the project partners, working with the State of Illinois, will establish a regional CO2 storage site and a CO2 pipeline network that will transport and store more than 1 million tons of captured CO2 per year.

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p 2 p y• Project partners estimate the program will bring 900 jobs to downstate Illinois and

another 1,000 to suppliers across the state.

FutureGen 2.0

Project Details:• Cooperative Agreement signed on September 28, 2010• Preparations are underway for the repowering of Unit 4 at the Ameren facility in Meredosia,

with construction set to begin in 2012with construction set to begin in 2012.• The Project scope includes the project definition, design, procurement, manufacture,

installation, startup, commercial operation and testing of an integrated oxy-fired coal plant with CO2 capture, purification and compression.

• The plant will generate approximately 202 MW gross output with a plant net output of 139 MW• The plant will generate approximately 202 MW gross output with a plant net output of 139 MW. • Validate the technical and financial feasibility of the use of the oxy-combustion technology for

utility power plant applications • Be a Near Zero Emissions Plant (NZEP)

Treat 100% of the flue gas and remove 90+% of the CO resulting in the capture of• Treat 100% of the flue gas and remove 90+% of the CO2 resulting in the capture of approximately 1.3 million tonnes (1.3MMT) per year of CO2 from the plant

• The CO2 will be cleaned and compressed for transport and delivered to a terminal point for transfer to the FutureGen 2.0 Pipeline and Regional CO2 Storage Reservoir Project.

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FutureGen 2.0

Project Details:• Cooperative Agreement signed on September 27, 2010• The sequestration component includes the development of a geologic storage facility

integrated with the operations of the oxy-combustion surface facility to be located atintegrated with the operations of the oxy-combustion surface facility to be located at Meredosia, Illinois. The scope of this project includes: – the selection of a suitable sequestration site– the development of the subsurface sequestration field

the development of any necessary CO2 transport infrastructure (e g pipeline)– the development of any necessary CO2 transport infrastructure (e.g., pipeline)– the design and construction of associated visitor research and training and education

facilities.• A site selection process is being conducted to locate a site for the carbon sequestration

research repowering workforce training facility visitor center and long-term COresearch, repowering workforce training facility, visitor center, and long-term CO2repository.

– 10/28/2010 - Site Selection Bidders and Public Information Meetings (Springfield, IL)– 11/15/2010 - Site Offeror’s formal proposal due to FGA

• A state-of-the-art international training center will prepare future operators for careers in

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• A state-of-the-art international training center will prepare future operators for careers in coal plant repowering, future CO2 pipeline networks, and storage facility development.

I d t i l C b C tIndustrial Carbon Capture & Storage (ICCS)g ( )

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Industrial CCS Project LocationsLarge-scale CCS from Industrial Sources (Area 1)

Objectives

Large scale CCS from Industrial Sources (Area 1)

• Demonstrate advanced CCS technologies• To progress beyond the R&D stage of readiness

I t ti ith h i M it i• Integration with comprehensive Monitoring, Verification & Accounting (MVA)

• Demonstrate sequestration optionDemonstrate sequestration optionTarget

• Industrial sources• Industries may produce heat, fuels, chemicals,

hydrogen or other useful products with or without electricity production

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electricity production• 1MM tons/yr of CO2 emission from each plant for CCS

USDOE Industrial CCS Projects (Area 1)Archer Daniels Midland

Ethanol Plant• 95% Capture – over 1 Million TPY CO2

Stored in Saline Formation• Capture using dehydration w/tri-ethylene

glycol & compression• April 2011 – Aug 2012

$101M DOE $166M Total

Leucadia EnergyMethanol Plant

• 90% Capture 4 5 Million TPY COAir Products

Steam Methane Reformers • 90% Capture – 4.5 Million TPY CO2for EOR

• Rectisol Capture• Late 2011 – Early 2014

$260M DOE $433M Total

Stea et a e e o e sat Hydrogen Plant

• 90% Capture – 1 Million TPY CO2for EOR

• Vacuum Swing Adsorption Capture• July 2011 – Nov 2012

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July 2011 Nov 2012$284M DOE $431M Total

Air Products and Chemicals, Inc. Steam Methane Reforming with CO CaptureSteam Methane Reforming with CO2 Capture

• Port Arthur, Texas (Hydrogen plant located inPort Arthur, Texas (Hydrogen plant located in Valero Refinery)

• 90% CO2 capture (Vacuum Swing Adsorption) from 2 steam-methane reformers (SMRs) ( )yielding >1,000,000 tons CO2/year

• Installation of ~20 MWe cogeneration unit (with HRSG) to supply ~100,000 lbs/hr makeup steam to SMRs

• EOR in West Hastings oil field (Start: 2012)• Total Project - $431 Million j $

(DOE - $284 Million) Air Products H2 Production Plant& Valero Refinery, Port Arthur, TX

(>200 MMscfd H2)

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Archer Daniels Midland Company ICCS Area 1CO Capture from Biofuel PlantCO2 Capture from Biofuel Plant

• Decatur, Illinois• Up to 95% CO2 capture - dehydration p 2 p y

(via tri-ethylene glycol) and compression (1,000,000 tons CO2/year)

• CO2 is a by-product in the production of fuel grade ethanol via anaerobic fermentation

• Sequestration in the Mt. Simon Sandstone, a saline reservoir (Start: April 2013)

• T t l P j t $207 Milli

ADM’s Agricultural Processing and Biofuels Plant, Decatur, IL

• Total Project - $207 Million (DOE - $141 Million)

• Status

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(350 Million G/YR capacity ethanol plant)– Design initiated– NEPA EA in progress

Leucadia Energy, LLC

• Project will be developed at Leucadia’s new industrial cogeneration plant in Lake Charles, LAcogeneration plant in Lake Charles, LA

• 90% CO2 capture (4,500,000 tons/year) using Rectisol• CO2 sent to Denbury pipeline for EOR in West Hastings and/or 2 y p p g

Oyster Bayou oilfields in eastern Texas• Total - $433 million

DOE - $260 millionDOE - $260 millionPhase 2 Awarded: June 17, 2010

Construction: Late 2011

Operation: Early 2014

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R i l C b S t tiRegional Carbon Sequestration Partnerships (RCSP)p ( )

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National Atlas Highlights (Atlas II) Adequate Storage Projected

U.S. Emissions ~ 6 GT CO2/yr all sourcesAdequate Storage Projected

h A i CO S i l

Saline Formations

North American CO2 Storage Potential (Giga Tons)

Sink Type Low HighS li F ti 3300 13000

Hundreds of Years of

Oil and Gas Fields Unmineable Coal Seams

Conservative Saline Formations 3300 13000Unmineable Coal Seams 160 180

Oil and Gas Fields 140 140

Years of Storage Potential

Resource Assessment

22Available for download at http://www.netl.doe.gov/technologies/carbon_seq/refshelf/atlasII/atlasII.pdf

Regional CarbonSequestration PartnershipsSequestration Partnerships

Representing: • >350 Organizations• 43 States • 4 Canadian Provinces

3 Indian Nations

Creating Infrastructurefor Wide Scale Deployment:

Characterization Phase• 24 months (2003-2005)

• 3 Indian Nations • 39% cost share

for Wide Scale Deployment:

Validation Phase• 4 years (2005 - 2009)• 7 Partnerships (41 states)• 25 Geologic field validation

tests

Deployment PhaseDeployment Phase • 10 years (2008-2017)• Several large injection tests

in different geology

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RCSP DevelopmentPhase III - Scaling Up Towards Commercialization

Fiscal Year2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Phase III Scaling Up Towards Commercialization

Stage 1.

Site selection and characterization Permitting and NEPA compliance;

W ll l ti d t ti

Scale up is required to provide insight into several operational and technical i th t diff f f ti tWell completion and testing;

Infrastructure development.

Stage 2

issues that differ from formation to formation

Stage 2.

CO2 procurement and transportation; Injection operations; Monitoring activities.

Stage 3.

Site closure; Post-injection monitoring; Project assessment.

RCSP Development Phase – 10+ years (FY 2008-2017+)

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RCSP Development Phase – 10+ years (FY 2008-2017+)

Regional Carbon Sequestration Partnerships Phase III: Development Phase

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Injection Well Drilled

Core Sampling Taken

pLarge-Scale Geologic Tests

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31

2

4

9

Nine large-volume testsInjections scheduled 2011/2015

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9Partnership Geologic Province Type

Big Sky Triassic Nugget Sandstone / Moxa Arch Saline

MGSC Deep Mt Simon Sandstone Saline

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2 MGSC Deep Mt. Simon Sandstone SalineMRCSP St. Peter Sandstone Saline

PCORBell Creek Field Oil Bearing

Devonian Age Carbonate Rock Saline

2

3

4

5

Injection Started

g

SECARBLower Tuscaloosa Formation

SalinePaluxy Formation

SWP Regional Jurassic & Older Formations Saline

Injection Ongoing

Injection Scheduled 2011/2015 7

8

6

5

Note: Some locations presented on map may differ from final injection location

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FormationsWESTCARB Central Valley Saline9

differ from final injection location

Observations and Challenges

• Technology is available today for carbon capture from new and retrofitted coal-fired IGCC and PC power plants, however:retrofitted coal fired IGCC and PC power plants, however:– It is very expensive– Parasitic load is very high– Reliability needs to be provenReliability needs to be proven

• DOE RD&D program is targeting the key issues – Improve efficiency of system (low hanging fruit)

Lower cost advanced technology (R&D program)– Lower cost, advanced technology (R&D program)– Proving sequestration (sequestration program, Regional

Partnerships)– Integration (FutureGen CCPI ICCS)Integration (FutureGen, CCPI, ICCS)

• Wide scale deployment of CCS technology will be difficult unless a value is placed on carbon.

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