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Dr. S. Julio Friedmann
Deputy Assistant Secretary
Office of Clean Coal and Carbon Management
Coal and the Clean Energy FutureJapan Clean Coal Day International
SymposiumSept. 8th, 2014, Tokyo
This is a time of fossil energy abundance
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Once in a generation opportunity to build
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US Energy Picture: Abundant Coal, Gas, and Oil
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Coal Use Growing Overall and Important in Many Economies
EIA Energy Outlook 2013
Continued recent growth•China•Europe•India, Japan
Increased tradeand exports
Increased CO2 emissions
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‐0.5
‐0.25
0
0.25
0.5
1 101 201 301 401 501 6011400 1500 1600 1700 1800 1900 2000
Mt. Pinatubo erupts
El Chichon erupts
Industrial revolutionbegins
French Revolutionbegins
Martin Luther’s95 theses
Fall of Constantinople;Renaissance begins
PlymouthRock
0
0.25
0.50
-0.5
-0.25
Reconstructed global average annual temperature record (Mann, 1996)plus modern temperatures
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Because of abundant fossil energy, clean coal technology remains a critical option
IEA CCS Roadmap 2013
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CCS/CCUS is the key technology for this era of fossil energy abundance
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Policy drivers
• President’s Climate Action Plan
• EPA: NSPS (draft) and ESPS (pending)
• State actions (AB32 etc.)
Technical findings (2008‐present)
• IPCC WG1 report: must read policy summary!
• Continued GHG accumulations
• Challenges will all energy scale‐ups
Global economic context
• Investors speak
• Global coal increase
• US‐China dominance
A $6B climate mitigation program at DOE
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Large Scale Integrated Projects World Wide
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20
40
60
80
100
120
140
0
10
20
30
40
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60
1972
1982
1986
1996
2000
2004
2008
2010
2013
2014
2015
2016
2017
2018
2019
2020
2022
Operate Execute Define Evaluate Cum. Volume
Num
ber
of P
roje
cts
Volum
e CO
2(m
tpa)
Data from Global CCS Institute
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DOE’s top CCS priorities
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Success of US eight commercial demonstration projects
• Bring into operation 2013‐2019
• A deep and rich set of public learning
Reimagining the coal and CCS RD&D portfolio
• Advanced combustion
• Capture and storage: incl. footprint reduction
• 2nd generation large pilots
International Partnerships
• China
• Japan
• Other key partnerships
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DOE CCUS Demonstration Projects
CCPI
FutureGen
ICCS (Area I)
Hydrogen Energy CaliforniaIGCC with EOR
$408 Million ‐ DOE$4.0 Billion ‐ Total
Summit Texas Clean EnergyIGCC with EOR
$450 Million ‐ DOE$1.7 Billion ‐ Total
NRG EnergyPost Combustion with CO2
Capture with EOR$167 Million – DOE$339 Million ‐ Total
Air ProductsCO2 Capture from Steam
Methane Reformers with EOR$284 Million ‐ DOE $431 Million ‐ Total
LeucadiaCO2 Capture from Methanol
with EOR$261 Million ‐ DOE $436 Million ‐ Total
Archer Daniels MidlandCO2 Capture from Ethanol w/ saline storage
$141 Million ‐ DOE $208 Million ‐ Total
FutureGen 2.0Oxy‐combustion with CO2 capture
and saline storage$1.0 Billion ‐ DOE$1.3 Billion ‐ Total
Southern Company ServicesIGCC‐Transport Gasifier w/CO2 pipeline
$270 Million ‐ DOE$2.67 Billion ‐ Total
Projects are sources of innovation:Technology, business, and policy
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1111
Kemper County, MSSouthern Co., 2010
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Kemper County, MSSouthern Co., 2013
(Anticipated start late 2014 or early 2015)
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Port Arthur, TXAir Products, 2013
VSA VesselsVSA Vessels
Co-Gen Unit
Blowers
CO2
Compressor & TEG Unit
CO2 Surge Tanks
Existing SMR
One million tons injected as of April, 2014
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W.A. Parrish, TXNRG/PetraNova project
Broke Ground Last Week!!
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Reimaging our RD&D portfolio
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Advanced combustion
• Materials and manufacturing
• Advanced cycles (e.g., PGC, sCO2)
Capture and Storage
• Advanced simulation (NRAP and CCSI)
• Functionalized discovery
• Mastery of the subsurface
Accelerated 2nd Gen pilots
• Computational design
• International sharing
16Pre-combustion Capture Center
Pilot Solvent Test Unit (PSTU)
0.5 Mwe(10 tpd CO2)Goal
Test technologies under realistic conditions to reduce the cost of CO2 capture
Advantages• National resource to validate
performance and operations • Consistent testing procedures and data • Very good safety and environmental
record • Platform for international partnership
and sharing
Status• New 5 year commitment to operator
(Southern Company)• >20 technologies tested• 100’s of technologies screened
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International partnerships required
Many platforms (APEC; G7; Boao; UNFCCC; WEC)
CSLF: Multinational platform– 22 countries + E.C.
– 11 years in practice
– Productive technical and policy working groups
Partnerships in Commerce– Joint ventures
– International investment
– “Showcase” projects
Accelerated deployment– Data sharing
– International Science Projects
11th CSLF MinisterialNov. 2013
Minister’s visit to Kemper projectNov. 2013
Clean Coal deployment: most urgent and important
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Not just about cost
• Costs are higher than dirty coal plants
• Costs are lower than many clean energy alternatives
Not just about technology
• Many technologies are well demonstrated
• Improvement potential is very large
Could finance many ways
• Rate recovery; feed‐in tariffs; direct grants
• Clean energy portfolios; tax‐free debt financing; others
Financing is the priority action
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• Many 10’s of billions producible in US (100’s of billions worldwide)
• Required to finance first set of projects; drive down costs through deployment
• Additional domestic supply, revenues; reduced imports B
illio
n B
arre
ls
88.1
47.4
2.30
20
40
60
80
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TechnicallyRecoverable
EconomicallyRecoverable*
AlreadyProduced/
Proven
Domestic Oil Resources
ARI, 2008
Mill
ion
Met
ric T
ons
Total U.S.CO2 Demand
NewLower-48
CO2 Demand
Net Lower-48From CapturedCO2 Emissions
0
2,000
4,000
6,000
8,000
10,000
12,000
14,00012,500
9,700
7,500
2,800* 2,200**
Market CO2 demand
EOR is a critical bridging step that brings near-term benefits to the US
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Global challenge global progress: new global solutions still required
Key unit of innovation – global engines of discovery
White Rose (UK)
Uthmaniyah (KSA)
Lula (BRA)
Quest (CAN)
ESI (UAE)
Gorgon (AUS)
GreenGen (PRC)
We just need more projects and more information
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Technology leads and informs policy
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Must build and deploy large projects
• Learning opportunity in CCS and clean fossil
• Information sharing: partnership as product
• Financing is the key challenge; many paths to success
Must develop 2nd and 3rd generation technology
Must partner with many
• Friends in the US
• Friends around the world
Once in a generation opportunity to build