E.ON PowerPoint

Report
Comparing Technologies for CostEffective Emission Reduction
Colin Scoins, Director of Development, Generation,
E.ON UK
British-Norwegian CCS Workshop,
23rd April, London
Climate challenge
IEA 2006 default policy scenario
 By 2030 Global CO2 emissions will be 70% higher than they are today
 We must find ways to curb emissions growth from the developing world
Introduction to CCS
April 2008 Clean Coal
Page 2
E.ON is committed to reducing its CO2 emissions
E.ON’s specific CO2 emissions
in t/MWh
0.72
- 50 %
 Involves all technologies (with major renewables investment)
 Internal modelling suggests CCS is needed (post 2020) in all
0.49
~ 0.36
scenarios
 If there is no significant nuclear build, CCS becomes a major
part of the portfolio.
1990
2006
Target
2030
 50% reduction of CO2 emissions compared to 1990
baseline
 Reduction of CO2 emissions down to 0.36 t/MWh by
2030
Introduction to CCS
April 2008 Clean Coal
Page 3
The UK Generation Capacity Problem
 By end 2015 the UK will see ~23 GW of plant closures (LCPD and nuclear life expiry) – 30% of UK capacity. Further nuclear
closures likely 2016-2020
 With no new build, demand may exceed supply in winter peaks ~ 2011
35%
 Purely building CCGTS is not an
option
emission targets
 UK will be>75% gas dependent.
 Must remember new build stations will
last ~40 years
25%
20%
15%
10%
Capacity Margin
 UK will not meet long term CO2
30%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Euro Interconnection
Nuclear Build
Hydro
Coal Build
Gas Build
Exisiting Margin (with no New Build)
NGC - Existing & under const.
E.ON graph based on NGT 7 year plan
 23 GW of generating plant will need to be replaced by 2015
Introduction to CCS
April 2008 Clean Coal
Page 4
E.ON is active across a across all areas
Renewables
Better Fuel use
 Enhanced Efficiency
 Wind
 CHP
 Hydro
 Micro-CHP
 Biomass
Demand Reduction
 Energy efficiency
 Insulation
 Smart metering
New Large Scale Generation Technologies
 Carbon Capture
and Storage
 Nuclear
Introduction to CCS
April 2008 Clean Coal
Page 5
McKinsey view of abatement technologies
 CCS is in the mix with other needed carbon abatement methods
 CCS costs will fall as the technology matures
Introduction to CCS
April 2008 Clean Coal
Page 6
No one technology is a winner
Security of
Energy Supply
CCGT
CCGT + CCS
Supercrit
Coal + CCS
Onshore Wind
Offshore Wind
Affordability
£/MWh
Limited
reserves & number
of regional fuel suppliers
Very large reserves in
liquid global market
Free fuel but
intermittent output
Nuclear
Low cost fuel
from stable sources
Energy
Efficiency
Demand reduction will
bolster security of supply
Often just the cost of
mobilisation
 We need a range of technologies and one of them is CCS
CO2 emissions
t/MWh
Other risks
Output
Lifecycle
0.38
0.39
Proven
technology
0.04
?
Developing technology
- technical risk
0.70
0.76
Proven
technology
0.09
?
Developing technology
- technical risk
0
0.01
Proven Technology,
limited site availability
0
0.03
Developing technology
- technical risk
0
0.02
Public acceptability
-x
-x
Mobilisation is the
primary hurdle
Introduction to CCS
April 2008 Clean Coal
Page 7
The Case For Carbon Capture and Storage
1
CO2 Reductions
 Reduces fossil fuel plant emissions by 90%
 Applicable to coal based economies such as India and China which
are driving world emissions growth.
2
Security of Energy Supply
 Coal based CCS gives security of energy supply, coal can be stored &
freely traded
 Coal+CCS allows the continued burning of coal in a carbon
constrained world
 Only option for a baseload fossil-fuelled future
3
Affordability
 CCS carries a cost penalty over unabated plant
 Cost competitive form of carbon abatement
 CCS is vital to solve the global trilemma
Introduction to CCS
April 2008 Clean Coal
Page 8
3 different CCS technologies under development
1
Pre Combustion Capture (IGCC1)
Coal gasification, CO-shift, hydrogen production
and hydrogen combustion in a H2 gas turbine
FutureGen
2
Oxyfuel
Burning fossil fuels in oxygen (and recycled flue gas)
3
Post Combustion Capture
CO2 capture from power plant flue gas
(scrubbing process)
1-Integrated Gasification Combined Cycle
OxyCoal
CASTOR
Introduction to CCS
April 2008 Clean Coal
Page 9
Post Combustion Capture
Chilled Ammonia
 Innovative post combustion capture technology using chilled ammonia
 Cooperation between E.ON Nordic and ALSTOM
 Pilot Plant in Karlshamn Power Station
 Flue Gas (7,5 MWth) of an oil-fuelled Aux. Boiler
 Total Budget: ~7Mio. €
 Start-of-Operation mid 2008
Small Scale amines
CASTOR/CESAR
European consortium testing post combustion technologies at an existing coal fired
power plant (1 t CO2/h, different solvents, maintenance and material costs)
CATO
Testing of post combustion technologies at existing coal fired power plant, solvent
tests, membrane contactors, start of operation mid 2008
Projects have also been announced with Siemens and Hitachi
Introduction to CCS
April 2008 Clean Coal
Page 10
Pre Combustion Capture projects (IGCC)
FutureGen
 Public-private partnership to build a 275 MW IGCC plant with CCS
 Multiple site and CO2 sink options still being considered.
 All sinks are onshore saline aquifer formations
 Project currently under review due to funding issues
Killingholme, E.ON UK
 Single unit IGCC+CCS, net output estimated at 370 MW
 Pre-FEED study completed Sept 07
 Highly promising net efficiency of circa 36-37%
 90% CO2 capture is achievable
 Ideal storage sites identified in depleted gas fields in SNS
 Development currently suspended due to the UK Government’s decision to fund only
post-combustion CCS
COORIVA
 E.ON is involved in the EU-funded COORIVA FP6 project which is looking at
solutions for the development of an IGCC power plant demo project (CO2 capture,
“State of the art IGCC full scale technology”, H2 turbine, coal gasification and gas
treatment)
Introduction to CCS
April 2008 Clean Coal
Page 11
Oxyfuel Combustion projects- Full scale single burner
Full Scale burner
Oxyfuel UK Phase II Innovative 40MWth oxycoal Doosan Babcock burner test rig
 Operational 2008/9
 E.ON will have access to tests and significant budget to monitor them
 1 MWth E.ON test rig at Ratcliffe, UK will underpin the large scale testing by
studying deposition and corrosion
Small Scale Oxyfuel projects
ADECOS
Development of components for an coal/lignite fired power plant with
O2/CO2 atmosphere (burner, CO2 capture, preparation pilot plant)
Oxycoal Aachen
Component development for a coal fired power plant with O2/CO2
atmosphere (high temperature membrane for air separation, burner, turbo
components)
Introduction to CCS
April 2008 Clean Coal
Page 12
Post Combustion
2016
2015
2014
2013
2012
Small innovative pilot 1 MW
New solvents
& processes
Large innovative pilot 30…60 MW
Feasibility
300 MW Amine scrubber UK
FutureGen 275 MW US
Pre Combustion
ADECOS Pilot
Oxyfuel
Technology
CO2 Storage
2011
2010
2009
2008
2007
E.ON Progressive Deployment Vision
Laboratory
Screening
Studies, Tests
OXYCOAL 10 MW
Exploration
Design & Construction
CCS Projects & Pilot
Operation
 The deployment vision will enable E.ON to roll out CCS in 2020
 By 2020 the EU ETS price needs to be high enough to drive investments in CCS
Introduction to CCS
April 2008 Clean Coal
Page 13
UK Government Competition for Subsidy
 To support CCS, HMG have launched a Competition for Subsidy
 HMG will support up to 100% of the capital and operating cost of the CCS demo.
Demo plant support criteria:
 300MW scale, Operational by 2014
 Utilise post-combustion capture on a supercritical coal plant
 Store CO2 offshore in UK waters
Timescales
17th Nov 2007
31st March 2008
Aug 2008
Jan 2009
March 2009
June 2009
September 2009
Rules issued
Deadline for pre-qualification questionnaires
Outline bid (with indicative prices)
Detailed bid
Final bid (with firm prices) to Government
Preferred bidder selected
Contract signature, project start date.
 HMG competition will accelerate the development of CCS
 Hopefully funding from other MS/ EU Commission will be forthcoming
Introduction to CCS
April 2008 Clean Coal
Page 14
Large scale post-combustion capture entry into UK Government CCS Competition





Up to 300MWe amine scrubber fitted to one of the planned 2x800MW supercritical coal-fired units at Kingsnorth
Capturing circa 2.5Mt/y CO2
CO2 storage in the Southern North Sea
Offshore pipeline transport
If bid successful, project operational 2014 at the earliest
 Kingsnorth could be capturing and storing CO2 by 2014
Introduction to CCS
April 2008 Clean Coal
Page 15
Conclusion
 We need a range of technologies to meet our CO2 reduction challenge
 CCS is one of the key tools in that armoury
 Too early to choose the winning CCS technology
Introduction to CCS
April 2008 Clean Coal
Page 16

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