A presentation from the 2013 Costs of CCS Workshop.

1. CCS Cost Workshop
Jean-François Léandri
IEA Paris
6-7/11/2013

2. Alstom : three main activities in four sectors
Equipment & services for power generation
Alstom Thermal Power
Equipment & services for power transmission
Alstom Grid
Alstom Renewable Power
Equipment & services for rail transport
Alstom Transport
Clean Power, Clear Solutions - 05/11/2013 – P 2

3. Portfolio of power technologies
GAS
COAL
OIL
HYDRO
NUCLEAR (conventional island)
WIND (offshore and
onshore)
SOLAR
GEOTHERMAL
BIOMASS
TIDAL
...for new plants or installed base
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4. Carbon Capture and Storage
OPERATING
TESTS COMPLETE
Completed
AEP Mountaineer
USA – 58 MWth
Chilled Ammonia, Coal
EoN Karlshamn
Sweden - 5 MWth
Chilled Ammonia, Fuel
WE - Energie
USA WI - 5 MWth
Chilled Ammonia, Coal
Vattenfall Schwarze Pumpe,
Germany
30 MWth, Oxy - Lignite
Total Lacq
France - 30 MWth
Oxy - Gas
Alstom BSF Windsor
US - 15 MWth
Oxy - Coals
2nd Gen
P4
DOW Chemical Co.
USA, WV
Adv. Amines - Coal
DOE/Alstom Windsor
US - 3 MWth
Chemical Looping, Coal
OPERATING
TCM Mongstad Norway
40 MWth, Chilled Ammonia, CHP
& Refinery Offgas (RCC)
OPERATING
Alstom GPU Pilot (Mobile)
0.3 MWth
Alstom Labs Växjö
Sweden – 0.25 MWth
Post C.-multi purpose
2nd Gen
RFCS EU - Darmstadt
Germany - 1 MWth
Chemical Looping - Coal
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
Clean Power, Clear Solutions 05/11/2013 – P 4
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
EDF Le Havre
France - 5 MWth Adv.
Adv. Amines - Coal
LARGE-SCALE PROJECTS
(under development)
White Rose CCS Project
UK - 426 MWe
Oxy Hardcoal

5. Learning curve or not learning curve ?
Limitation of the learning curves
To what extend are the historical empirical data valid for CCS technologies?
Where to start on the curve when zero commercial units sold?
Source Global CCS Institute
P5
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
Clean Power, Clear Solutions 05/11/2013 – P 5
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

6. Alstom approach to estimate cost of CCS technologies
Many factors involved in cost reductions:
technological advances, patchwork of technical fields
rapid changes in policies & regulations
economies of scale, process improvements,
…..
Conventional
scope
CCS
integration
Alstom approach:
CCS
Capture
Learning disaggregated into:
conventional and CCS plants
then into performance and volume
CCS CO2
Comp
then into CCS sub-systems
Estimations based on technical analysis and expert judgment
Detailed performance and cost analysis of each CCS sub-items
P6
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
Clean Power, Clear Solutions 05/11/2013 – P 6
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

7. Conventional reference plant
Setting the stage for future evolutions
“Increasing intermittent Power ”
•
•
Will reduce thermal capacity factor
Efficiency at part load, emissions
Improvement net efficiency LHV vs load
(conventional hardcoal plant – Europe)
53%
Eff. @ 100% load
Eff. @ 60% load
Eff. @ 35% load
51%
“Unaffordable Fuel bill , too low elec. prices”
•
•
Increase efficiency
Fuel characteristics (carbon %, FHV)
49%
710g/KWh
47%
45%
“increasing water scarcity & cost of water”
•
Cooling temperature (ACC, hybrid CT)
745g/KWh
785g/KWh
43%
41%
“Budget squeeze & tougher access to capital”
•
•
Scaling-up size
Standardization & Modularization
875g/KWh
39%
37%
2010
2015
2020
2025
2030
2035
Fossil plant operation and performance could change several times over its lifetime
P7
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
Clean Power, Clear Solutions 05/11/2013 – P 7
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

8. Conventional reference plant
Capex estimation
Capex
30
€/KWh
Flexibility
Volume
Size/Leadtime
25
Efficiency
20
15
10
5
0
Ref 15-20
Ref 30-35
Cost of efficiency and flexibility performance improvements
Volume effect (could also be negative: e.g. less coal PP w/o CCS sold)
Cost reduction through shorter lead time (design & manufacturing) and
size increase (exponential scaling factor)
P8
Flexibility will have a cost
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
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liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

9. Capture system
CCS
integration
Performance improvements - Auxiliary consumption
CCS
Capture
Analysis for each sub-systems
CCS CO2
Comp
(Hardcoal illustration)
100%
90%
80%
70%
2015
CCS Integration
ASU EPC
GPU
Post capture
2020
2025
2030
2035
Starting Point: system performance as at starting year
Rates: potential level of improvement from system experts: ex: analysis of post
capture GJ/tO2 achievable and requirements (roadmap, IB, risks…)
Rates applied in addition to efficiency improvement of the reference plant
Rates could be customised by region/coal type
P9
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
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liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
-P9

10. Capture system
Consolidated energy penalty (Hardcoal PP)
28%
28%
EUROPE
% MWe net
% MWe net
Oxy
26%
NAM
Oxy
26%
Amines
Amines
24%
24%
22%
22%
20%
20%
18%
18%
16%
16%
14%
2005
2010
2015
2020
2025
2030
2035
• Amine: high starting point (3,5 GJ/tCO2)
14%
2015
2020
2030
2035
• Impact of higher cooling temperature
• Coal characteristics not as good as EUR
Note: Energy penalty = (Net Output Ref PP – Net Output CCS PP)/ Net Output Ref PP
P 10
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
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liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
- P 10
2025

11. Capture system
CCS
integration
Capex improvement
CCS
Capture
CCS CO2
Comp
CCS plant drivers
Volume effect applies differently on conventional scope and on capture scope
Starting point for the Capture scope: large scale demo or FoaK commercial
Optimum economical size for capture train and number of trains
Risk provisions on first of a kind technology
100%
Volume effect
Rate derived from installed base
volume forecast (linked to years)
90%
80%
70%
Specific rates considered by capture
sub-system (integration, ASU, GPU /
Compr. CO2, post capture)
CCS Integration
ASU
60%
GPU / Compression CO2
Adv. Amine
Same rates applied for all regions
50%
40%
2015
2020
IC0
P 11
2025
IC1
2030
IC2
Year
2035
IC3
Inst. capacity
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
Clean Power, Clear Solutions 05/11/2013 – P 11
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
- P 11

12. Capture system
O&M cost improvement
First method: disaggregate and estimate of the different cost reductions
Variable O&M:
• lower solvent cost due to cheaper solvents
• less solvent consumed with better reclamation and reduced waste cost
Fixed O&M:
• less manual chemical lab services, less dedicated process operators
• more automated analysis & process
Second method (selected): apply a full and aggregated O&M learning curve
to all the incremental fix/variable O&M CCS cost (excl. conventional plant)
P 12
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
Clean Power, Clear Solutions 05/11/2013 – P 12
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

13. CCS Plant
LCoE – illustration hardcoal plant Europe
100
CoE €/KWh
(*) Excluding CO2 Transport & Storage
90
80
70
60
50
40
-15 %
+32 %
+ 240 %
(50€/t)
CO2 cost
(14 €/t)
Avoided
Incremental
CO2 cost
CCS cost *
90% capture
FUEL
Avoided
CO2 cost
90% capture
Incremental
CCS cost *
- 5%
30
20
10
OPEX
+ 1%
CAPEX
+ 7%
Efficiency, flexibility, lead time,
scaling-up, volume
0
Ref PP
CCS CO2
2015 - 2020
P 13
CCS Others
Ref PP
CCS CO2
CCS Others
2030 - 2035
Cost of CCS plant as a result of a full consolidation
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
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liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

14. CCS Plant
Sensitivity LCoE – illustration hardcoal plant Europe (1/2)
CCS Opex
-20%
Re-boiler duty (1,8 GJ/tCO2)
1,75 GJ
CO2 compression
Economic life (25 yrs)
Fuel cost (78,2 €/t)
50%
Eff 49,4%
Eff 47,4%
-50%
50%
Rate 80%
Rate 92,7%
Wacc 7%
Wacc 5,5%
40 yrs
20 yrs
Conventional plant contribution
-25%
-10%
10%
-35%
Capex Transport (200 km)
WACC w/o inflation (6%)
10%
-10%
Capex Storage
Capture rate (90%)
2,0 GJ
-10%
CCS Capex
Ref plt net efficiency (48,4%)
5%
-5%
0%
5%
LCoE CCS PP 2030-35
Example: 74 €/KWh
(w no CO2 price applied)
P 14
Performance and cost of CCS Sub-systems to be put in
perspective with other dimensions ….
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
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CCS
+25%
10%

15. CCS Plant
Sensitivity LCoE – illustration hardcoal plant Europe (2/2)
50 €/t (+6,1%)
Applying CO2 Price in 2030-35
Plant load (100% load)
Conventional plant portion
103%
CF @ full load (7446 hrs) 8000
-5%
110 €/t Impact from the 10% CO2 not captured on CCS PP
30 €/t
Conventional plant portion
0%
5%
10%
CCS portion
CCS portion
15%
20%
25%
60%
5000
30%
35%
LCoE CCS PP 2030-35
Example: 74 €/KWh
(w no CO2 price applied)
….in particular with CO2 market price and trend for flexibility.
P 15
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
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liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.
40%

16. Conclusions
Capex: Detailed performance and cost analysis of each CCS
sub-items
Opex: O&M learning curve applied
Benchmark with Learning curve method
CCS systems evaluated as part of a global gas or coal plant
Key trends in generation anticipated (intermittency,
environnement…)
Optimisation of the global performance and cost of the plant
CCS plant flexibility and its related cost will be key
P 16
© ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will-apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
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liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

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