Clean Coal – CCS RD&D Overview

1. Dr. Darren Mollot
September 2013
Clean Coal – CCS RD&D Overview
Acting Deputy Assistant Secretary
Office of Clean Coal

2. 2
Office of Fossil Energy
Office of Clean Coal Vision & Mission
A SECURE, RELIABLE AND
AFFORDABLE ENERGY FUTURE WITH
THE ENVIRONMENTALLY SOUND USE
OF COAL AND FOSSIL FUELS
VISION
SUPPORT THE RESEARCH,
DEVELOPMENT & DEMONSTRATION
OF ADVANCED TECHNOLOGIES TO
ENSURE THE AVAILABILITY OF CLEAN,
AFFORDABLE ENERGY FROM COAL
AND FOSSIL RESOURCES
MISSION

3. 3
Office of Fossil Energy
Office of Clean Coal -­‐ Goals
GOALS
GOAL 1: DEMONSTRATE NEAR-­‐ZERO EMISSION FOSSIL-­‐BASED TECHNOLOGIES
GOAL 2: ACCEPTANCE BY INDUSTRY, FINANCIAL INSTITUTIONS, REGULATORS AND THE PUBLIC THAT
CO2 CAN BE SAFELY INJECTED, MONITORED AND PERMANENTLY STORED IN A VARIETY OF
GEOLOGIC FORMATIONS
GOAL 3: CONDUCT HIGH-­‐RISK, RESEARCH AND DEVELOPMENT ON ADVANCED COAL AND FOSSIL
TECHNOLOGIES INCLUDING CO2 CAPTURE AND NOVEL HIGH EFFICIENCY CYCLES
GOAL 4: DRIVE INTERNATIONAL COLLABORATION TO ENSURE WIDE-­‐SPREAD ACCEPTANCE AND
DEPLOYMENT OF CCS TECHNOLOGIES
GOAL 5: SUPPORT POLICY, LEGISLATION, AND REGULATION IMPACTING FOSSIL ENERGY BY PROVIDE
DATA AND EXPERTISE

4. 4
What Role Will Fossil Play

5. 5
World Coal Production
China – U.S.A – India – Australia -­‐ Indonesia
0
1
2
3
4
5
6
7
8
9
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Billion Short Tons
World Coal Production
China U.S.A India Australia Indonesia World
Data from U.S. Energy Information Administration

6. 6
0
2000
4000
6000
8000
10000
12000
2010 2020 2025 2030 2035 2040
Million Short Tons
World Coal Consumption
India United States China World total
Data from U.S. Energy Information Administration
World Coal Consumption
China – India – United States

7. 7
U.S. Electricity Generation
Historical Perspective
0
500
1000
1500
2000
2500
3000
3500
4000
4500
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Billion kWh
U.S. Electricity Generation
Coal Petroleum Natural Gas Nuclear Renwables Total
Data from U.S. Energy Information Administration

8. 8
U.S. Electricity Generation
Future Projections
0
1000
2000
3000
4000
5000
6000
2010
2015
2020
2025
2030
2035
2040
Billion kWh
Electricity Generation
Coal Natural Gas Total U.S. Generation Petroleum Nuclear Renewables
Data from U.S. Energy Information Administration -­‐ 2013

9. 9
Meeting global climate mitigation targets will likely require CCS
IEA’s Energy Technology Perspectives:
Gigatons of CO2
Source: International Energy Agency

10. 10
Opportunities for Large Scale Projects

11. 11
Advanced Combustion
CO2 Storage Advanced CO2 Capture and
Compression
Solvents
Sorbents
Membranes
Hybrid
Process
Intensification
Cryogenic Capture
Pressurized
O2 membrane
Chemical looping
USC Materials
Carbon Utilization (EOR)
Infrastructure (RCSPs)
Geological Storage
Monitoring, Verification
and Accounting
Gasification
Turbines
Supercritical CO2
Direct Power Extraction
Integrated Fossil Energy Solutions
Efficiencies > 45%
Capital Cost by 50%
$40 -­‐ $10/tonne CO2 Captured
Near-­‐zero GHGs
Near-­‐zero criteria pollutants
Near-­‐zero water usage
Advanced Energy
Systems
5 MWE Oxycombustion Pilot Advanced Turbines

12. 12
0%
5%
10%
15%
20%
25%
30%
35%
40%
Power Generation Penalty [% of Plant Output]
Capture Technology Progress
Performance Drives Cost
Then
(1997)
Now
(2013)
Future
(2020)
~ $150/Tonne
~ $60/Tonne
< $40/Tonne
Energy Penalty Reductions
Enable Cost Reductions

13. 13
Creating a Bridge to Affordable CCS Technology

14. 14
MAJOR DEMONSTRATIONS

15. 15
Major CCS Demonstration Projects
Project Locations & Cost Share
CCPI
ICCS Area 1
FutureGen 2.0
Southern Company
Kemper County IGCC Project
Transport Gasifier w/ Carbon Capture
~$2.01B – Total, $270M – -­‐DOE
EOR – ~3.0 MM TPY 2014 start
NRG
W.A. Parish Generating Station
Post Combustion CO2 Capture
$775 M – Total
$167M – DOE
EOR – ~1.4 MM TPY 2016 start
Summit TX Clean Energy
Commercial Demo of Advanced
IGCC w/ Full Carbon Capture
~$1.7B – Total, $450M – DOE
EOR – ~2.2 MMTPY 2017 start
HECA
Commercial Demo of Advanced
IGCC w/ Full Carbon Capture
~$4B – Total, $408M – DOE
EOR – ~2.6 MM TPY 2019 start
Leucadia Energy
CO2 Capture from Methanol Plant
EOR in Eastern TX Oilfields
$436M -­‐ Total, $261M – DOE
EOR – ~4.5 MM TPY 2017 start
Air Products and Chemicals, Inc.
CO2 Capture from Steam Methane Reformers
EOR in Eastern TX Oilfields
$431M – Total, $284M – DOE
EOR – ~0.93 MM TPY 2012 start
FutureGen 2.0
Large-­‐scale Testing of Oxy-­‐Combustion w/ CO2 Capture
and Sequestration in Saline Formation
Project: ~$1.77B – Total; ~$1.05B – DOE
SALINE – 1 MM TPY 2017 start
Archer Daniels Midland
CO2 Capture from Ethanol Plant
CO2 Stored in Saline Reservoir
$208M – Total, $141M – DOE
SALINE – ~0.9 MM TPY 2014 start

16. 16
8 active projects
1 in operation, 2 under construction, 5 in
engineering/finance
5 electricity generation, 3 industrial
3 IGCC, 4 post-­‐processing, 1 oxycombustion
Feedstock: 4 coal, 1 petroleum coke,
1 coal/coke, 1 natural gas, 1 ethanol
2 polygeneration
Storage: 6 EOR, 2 saline formations
Major CCS Demonstration Projects

17. 17
8 active projects
1 in operation, 2 under construction, 5 in
engineering/finance
5 electricity generation, 3 industrial
3 IGCC, 4 post-­‐processing, 1 oxycombustion
Feedstock: 4 coal, 1 petroleum coke,
1 coal/coke, 1 natural gas, 1 ethanol
2 polygeneration
Storage: 6 EOR, 2 saline formations
Major CCS Demonstration Projects

18. 18
Projects
CCPI
ICCS Area 1
FutureGen 2.0
Major CCS Demonstration Projects
Project Locations & Cost Share
Southern Company
Kemper County IGCC Project
IGCC-­‐Transport Gasifier
w/Carbon Capture
~$2.0B – Total CCPI project
$270M – DOE
EOR – ~3M MTPY 2014 start
NRG
W.A. Parish Generating Station
Post Combustion CO2 Capture
$775 M (est.) – Total
$167M – DOE
EOR – ~1.4M MTPY 2016 start
Summit TX Clean Energy
Commercial Demo of Advanced
IGCC w/ Full Carbon Capture
~$1.7B – Total
$450M – DOE
EOR – ~2.2M MTPY 2017 start
HECA
Commercial Demo of Advanced
IGCC w/ Full Carbon Capture
~$4B – Total, $408M – DOE
EOR – ~2.6M MTPY 2019 start
Leucadia Energy
CO2 Capture from Methanol/H2 Plant
EOR in TX & LA Oilfields
$436M -­‐ Total, $261M – DOE
EOR – ~4.5M MTPY 2017 start
Air Products and Chemicals, Inc.
CO2 Capture from Steam Methane Reformers
EOR in Eastern TX Oilfields
$431M – Total, $284M – DOE
EOR – ~0.93M MTPY 2012 start
FutureGen 2.0
Large-­‐scale Testing of Oxy-­‐Combustion w/ CO2 Capture
and Sequestration in Saline Formation
Project: ~$1.77B – Total; ~$1.05B – DOE
SALINE – 1M MTPY 2017 start
Archer Daniels Midland
CO2 Capture from Ethanol Plant
CO2 Stored in Saline Reservoir
$208M – Total, $141M – DOE
SALINE – ~0.9M MTPY 2014 start

19. 19
Southern Company Services, Inc. CCPI-­‐2
Advanced IGCC with CO2 Capture
Status
Plant construction >60% complete; >5,400
construction personnel on site
CO2 off-­‐take agreements signed
Lignite mine under development
Subsystems (water treatment, cooling towers) to
begin pre-­‐commissioning
Combustion turbine startup: Sep 2013
Gasifier heat-­‐up: Dec 2013
Key Dates
Project Awarded: Jan 30, 2006
Project moved to MS: Dec 5, 2008
NEPA Record of Decision: Aug 19, 2010
Initiate excavation work: Sep 27, 2010
Operations: May 2014
Kemper County, MS
582 MWe (net) with duct firing; 2 TRIGTM
gasifiers, 2 Siemens combustion turbines, 1
Toshiba steam turbine
Fuel: Mississippi lignite
67+% CO2 capture (Selexol® process);
3,000,000 tons CO2/year
EOR: Denbury Onshore LLC, Treetop Midstream
Services LLC

20. 20
Lessons Learned

21. 21
BIG SKY
WESTCARB
SWP
PCOR
MGSC
SECARB
MRCSP
Regional Carbon Sequestration Partnerships
Developing the Infrastructure for Wide Scale Deployment
Seven Regional Partnerships
400+ distinct organizations, 43 states, 4 Canadian Provinces
Engage regional, state, and local governments
Determine regional sequestration benefits
Baseline region for sources and sinks
Establish monitoring and verification protocols
Address regulatory, environmental, and outreach issues
Validate sequestration technology and infrastructure
Development Phase (2008-­‐2018+)
9 large scale
injections (over 1
million tons each)
Commercial scale
understanding
Regulatory, liability,
ownership issues
Validation Phase (2005-­‐2011)
20 injection tests in saline formations, depleted oil, unmineable
coal seams, and basalt
Characterization Phase (2003-­‐2005)
Search of potential storage
locations and CO2 sources
Found potential for 100’s of
years of storage

22. 22
Large-­‐Scale CO2 Storage Tests
8 large scale tests ongoing/planned for 6 of 7 Regional Partnerships
Tests based on strong core R&D program and 20 smaller field tests.
Injection schedule: 3 currently injecting, 3 starting 2013, 2 during
2014-­‐2015
Storage: 5 EOR, 3 saline formations
7 of the 8 will inject between 1 – 2.9 million tonnes CO2
CO2 sources: NG processing plants, coal power plants, ethanol
production plant, natural CO2 source
All tests have extensive MVA
Results will inform Best Practice Manuals

23. 23
8
7
3
1
2
4
6
5
9
RCSP Geologic Province
Injection Volume
(metric tons)
BIG SKY
Kevin Dome-­
Duperow Formation
TBD
MGSC
Illinois Basin-­
Mt. Simon Sandstone
>380,000
MRCSP
Michigan Basin-­
Niagaran Reef
March 2013
PCOR
Powder River Basin-­
Muddy Sandstone
April 2013
Horn River Basin-­
Carbonates
TBD
SECARB
Gulf Coast -­
Tuscaloosa Formation
>3,000,000
Gulf Coast –
Paluxy Formation
>30,000
SWP
Anadarko Basin-­
Morrow Sandstone
Sept 2013
WESTCARB Regional Characterization
Injection Ongoing
2013 Injection Scheduled
Injection Scheduled 2014-­‐2015
1
2
3
4
7
8
6
9
5
Three projects currently injecting CO2
Three Additional Scheduled for 2013
Remaining injections scheduled 2014-­‐2015
Injection Began
Nov 2011
Injection Began
April 2009
Core Sampling Taken
Note: Some locations presented on map may
differ from final injection location
Injection Began
August 2012
RCSP Phase III: Development Phase
Large-­‐Scale Geologic Tests
Injection began
February 2013
Injection began
June 2013 Seismic Survey Completed

24. 24
Best Practices Manual
Version 1
(Phase II)
Version 2
(Phase III)
Final
Guidelines
(Post
Injection)
Monitoring, Verification
and Accounting
2009/2012 2016 2020
Public Outreach and
Education
2009 2016 2020
Site Characterization 2010 2016 2020
Geologic Storage
Formation Classification
2010 2016 2020
**Simulation and Risk
Assessment
2010 2016 2020
**Carbon Storage Systems
and Well Management
Activities
2011 2016 2020
Terrestrial 2010
2016 – Post MVA Phase
III
CCS Best Practices Manuals
Critical Requirement For Significant Wide Scale Deployment -­‐
Capturing Lessons Learned

25. 25
EXTRA SLIDES

26. 26
…And Broad Potential for CO2-­‐EOR

27. 27
World Coal Consumption
China – India – United States
0.0
50.0
100.0
150.0
200.0
250.0
2010 2020 2025 2030 2035 2040
Quadrillion BTU
World Coal Consumption
India United States China World total
Data from U.S. Energy Information Administration

28. 28
Drivers: EPA Regulations Impacting Coal
Issue Federal Regulation/Compliance
Air SOx & NOx crossing state lines Cross-­‐State Air Pollution Rule (CSAPR)
finalized 7.7.2011; amendments proposed 10.2011;
supplemental rule expected early 2012; 12.30.2011, DC Circuit
stay of CSAPR; 8.21.2012, DC Circuit decision vacating CSAPR
(subject to possible EPA challenge)
Compliance: Unknown
Mercury and Hazardous Air
Pollutants (HAPs)
Mercury and Air Toxics Standards (MATS) Rule for
Electric Generation Units
Finalized effective: 4.16.2012
Compliance: ~2015
GHG emissions
GHG New Source Performance Standards (NSPS)
Proposed rule comments currently under review (new baseload
and intermediate load units potentially impacted as of proposal
date)
Compliance: Unknown
Water Cooling Water Intake
Structures – impact on aquatic
life
CWA §316(b)
final rule expected 11.2013
Compliance: Within 8 Years
Surface water discharges;
Surface impoundments
Steam Electric Effluent Limitations Guidelines
proposed rule went out for public comment 4.2013
Compliance: Unknown
Waste
Coal Combustion Residuals
(e.g., coal ash, boiler slag)
Coal Combustion Residuals (CCR) Rule proposed rule
comments currently under review
Compliance: Unknown
Near-­‐term (through 2015-­‐
2016) Compliance Horizon
for EPA regulations may
create potential localized
reliability issues
Local reliability issues can
be managed with timely
notice and coordination on
retirement and retrofit
decisions
States and regions will play
a valuable role in
addressing EPA regulation
impacts
Non-­‐transmission
alternatives can help
alleviate reliability impacts
when/where available
EPA regulations are only
one aspect impacting the
future of our electricity
system

29. 29
CCS Specific Regulations
CO2 Injection
Safe Drinking Water Act
Two “classes” of injection, pertain to CO2,
Class II covers EOR and Class VI covers
long-­‐term CO2 storage
Class II has been governing CO2 EOR for
decades
Class VI was finalized in December 2010,
and has been accompanied by a series of
guidance documents pertaining to various
aspects of compliance
– Site Characterization
– Area of Review and Corrective Action
– Testing and Monitoring
– Project Plan Development
– Well Construction
– Financial Responsibility
– Well Plugging, Post-­‐Injection Site Care and Site
Closure (draft)
Clean Air Act
Pursuant to the Clean Air Act, EPA collects
and disseminates data on economy of CO2
emissions through its Mandatory
Reporting Rule
– Two sub-­‐parts, RR & UU, apply to CO2 injection
– RR applies to geologic sequestration of CO2, Class
VI wells and Class II wells that “opt-­‐in” to
reporting
– RR uses a mass balance approach to calculate
stored CO2
– UU applies to other injection of CO2, typically
business as usual EOR, and only requires reporting
of quantities of delivered CO2

30. 30
Addressing Challenges of Carbon Management
Creating knowledge today … for building a better tomorrow
Then -­‐ Recognition of the Problem
Very little was known about carbon storage strategies
CO2 capture technologies were very expensive and energy intensive
1997, FE/NETL initiated CCS R&D responding to international GHG initiatives
By 2007, DOE R&D Program exhibited global leadership in CCS development
Now -­‐ Focusing Resources
Broad capture and storage R&D program underway
Capture costs have been reduced
Significant insights into storage developed
Regional Partnerships -­‐ building CCS infrastructure
Seven Best Practice Manuals -­‐ spreading knowledge
Carbon Sequestration Atlas -­‐ clarify storage potential
Future -­‐ Transforming
Complete large-­‐scale storage tests and integrated CCS demonstration projects
U.S. leadership in developing advanced power systems with CCS -­‐ providing affordable
options needed to power the economies of the world