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Page 1 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved. “Carbon Capture & Storage” A solution for sustainable energy supply Nicolas Vortmeyer CEO New Technologies, Siemens Energy Fossil Division CCT 2009, Dresden 19 May 2009 “Carbon Capture & Storage” A solution for sustainable energy supply Nicolas Vortmeyer CEO New Technologies, Siemens Energy Fossil Division CCT 2009, Dresden 19 May 2009

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Page 1: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 1 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

“Carbon Capture & Storage”

A solution for sustainable energy supply

Nicolas VortmeyerCEO New Technologies, Siemens Energy Fossil Division

CCT 2009, Dresden 19 May 2009

“Carbon Capture & Storage”

A solution for sustainable energy supply

Nicolas VortmeyerCEO New Technologies, Siemens Energy Fossil Division

CCT 2009, Dresden 19 May 2009

Page 2: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 2 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Siemens Environmental Portfolio

* Status in fiscal 2008, reviewed by PwC

Renewable Power

Generation

Fossil

Power Generation

Building Technologies

Lighting (OSRAM)

Power Distribution

Power Transmission

IT Solutions and Services

Water Technologies MobilityHealthcare Solutions

for Industry

Nearly one quarter of our revenue is generated by products and solutions that make a direct, quantifiable contribution to environment and climate protection* (~ €19 billion).

By 2011, income from our environmental portfolio should grow to €25 billion.

In fiscal 2008, products and solutions in our environmental portfolio saved about 148 million tons of CO2 for our customers...

...which equals the total CO2 emitted by New York, London and Hong Kong

19 billion Euro investment (in 2008) in renewables, environmental technologies and energy efficiency saved 148 million tons of CO2

emissions

Renewables, environmental technologies and energy efficient products: Our Environmental Portfolio

Page 3: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 3 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

... also makes an important contribution to climate protection.

Efficiency increase in coal fired generation, e.g. through upgrading measures ...

Upgrading of the steam turbine train

New rotor equipped with 3DS blading

New vanes and inner casing

Refurbishing of I&C system

Mehrum

Upgrading the Steam Turbine

AdvantagesIncreasing the turbine efficiency: 30MW more power output (previously 712MW)

Reduction of CO2 emissions: by as much as 200,000t/a

Reduction of coal consumption: by up to 80,000t/a

Savings potential: up to 7 million EUR/a

Page 4: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 4 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Efficiency increase along the entire energy conversion chain is the “safe bet”

for reducing carbon emissions

Efficiency up

to ~50%

for All electric O&G

Efficiency up

to more than ~60%for CCPP

Output up

Average energy

production / year

Efficiency up

in power transmission

Emissions

downCO2

reduction

with Siplink

Output up

through upgrades

~20%

Current ø

up to

~50%

for All

Electric

Siemens

O&G

~58%

Ø

state of the art GT in

CCPP

> ~60%

Siemens

CCPP

512MW477MW

Example:

NPPBorssele

35 MW increase

in 35 days!

4.6 GWh

7.8 GWh

Siemens

2.3 MW turbine with 101m rotor

Capacity of average

wind turbine

Siemens

800 kV

UHVDC

system

~93-95%~96-97%

Efficiency

in current

AC-

systems

ships with own

engines running

per Ship/Day

in harbor

….but will it be enough to reach global carbon emissions reduction targets ?

+150% +70%- 40%

losses-12t CO2

+7%

Page 5: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 5 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Scenario: Fossil fuels remain the backbone but renewables gain in importance

2008 2030

21,000 TWh

37,000 TWh

2.6 % p.a.

Fossil fuels

60%68%

Gas21%

Water13%

Nuclear13%

Coal36%

Renewables (excl. hydro)

in 2030: 5,200 TWh(14% of total)

Geo-

thermal

Solar Biomass

Wind

Others 1%

Source: Siemens Energy Sector

¹

Terawatt-hours

28%

49%

19%

3%

Power generation (in 1000 TWh¹)

Oil3%

14%

22%

15%

13%

42%

3%

5%

Biomass

Wind

Geo-

thermalSolar 2%

47%28%

13%

Renewables (excl. hydro)

in 2008: 600 TWh(3% of total)

Renewables

There is no alternative to continued and increased use of coal in power generation -

without CCS global carbon emissions reduction targets can not be

reached

Page 6: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 6 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Δ

CO2basis-11%

>-16%>-90%

Efficiency1992:

42 %2007:

47 %2020 target: >50 %With CCS

>43 %

Efficiency1992:

52 % 2010:

>

60 %2020 target:

>

62 %

Efficiency1992:

42 %2007:

47 %2020 target: >

50 %With CCS > 41 %

Δ

CO2

basis-13%

>-16%

Δ

CO2

basis-11%

>-16%>-90%

Reference STPP (>600 MW)

47%

Irsching

4 plant (530 MW)

>60%

Hard coal-fired steam power plant

Combined cycle power plant, H-class

Development of efficiency and reduction of CO2 emissions

Siemens Fossil Energy Solutions:

Technology options for tomorrow

IGCC >400MW with CO2

capture

47%

IGCC with and without CO2

capture

Efficiency increase until 2020 can contribute maybe 5% further CO2

emissions reduction, compared to > 80 % potential contribution by CCS

>43% with CO2 capture

Page 7: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 7 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Integrated GCC combines the best of both worlds: Highly efficient CCPP technology, flexible feedstock

SGT5-8000H

Siemens gas turbine technology has world’s highest efficiencies:Irsching CCPP with SGT5-8000H: 60%Gasification offers high fuel flexibility, e.g.:Lignite, hard coal, petcoke, biomassIGCCs have highest environmental standards

PuertollanoIGCC plant

50

750

50

400

650

19

240170

30

200200

168

134

NOx

2000

SO2

Puertollano IGCCEUUSAAsiaWorld bank

Dust

Emission limits of coal fired power plants >300MWth

vs. Puertollano emissions in mg/Nm3

at 6% O2

(2005)

The superior environmental performance and fuel flexibility of IGCC in coal fire generation is undisputed.

Page 8: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 8 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Gasification combined cycle with pre-combustion capture incorporates proven technologies and plant concepts

Gas Island CCPP

Pel

air

coal

Heat N2

diluted

H2

H2

O

H2

O CO2

Optional heat

/ air

integration

GCC

IGCC

(Higher

complexity)

Comparable plant technology in chemical industry (e.g. ammonia, urea, hydrogen, methanol…)Already >50,000 t/day coal gasification in Chinese chemical industry

Annual production with gas turbine and GT combined cycles > 4500 TWh

in 2008Siemens installed GT/CCPP fleet > 175 GWSiemens experience with syngas gas turbines > 500.000 h for > 40 yearsInnovation dynamics are carried over from natural gas turbine to coal fired generation

Pel

Q

GCC ±

CCS is proven, mature technology with new potential for cost reduction and reduced complexity

Page 9: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 9 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

China –

the largest coal to chemicals and gasification combined-cycle market

More than 80GWth equivalent expected CTC new build to start operation between 2008 and 2010

15 new IGCC plants such as “GreenGen”

considered by NDRC

GCC-CCS can now build on Chinese commitment to coal gasification

April 2009

Siemens 500MWth dry feed coal gasifiers

Ningxia coal base

Customer: Shenua

Ningxia Coal Group

Reference: China Coal Chemical Industry development report 2008-2010

Page 10: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 10 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

CO2

Scrubbing proven technology in chemical

processing

industries

CO2 Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industriesLicensed technology is integrated in the chemical production processes The climate change/carbon capture discussion has initiated a word wide technology development push

Physical Absorption Chemical Absorption

integrated in chemical plant

For Post-combustion carbon capture new or

modified solvents and processes are needed

For Pre-combustion carbon capture in IGCC proven gas treatment processes are available

CO2

Scrubbing in the Processing Industries

“high partial pressure of CO2”“lower partial pressure of CO2”

Page 11: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 11 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Siemens Post-Combustion Technology Development

Basis: Amino Acid Salt Formulations

Siemens Post-Combustion Carbon Capture Technology for Steam Power Plants

Page 12: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 12 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

CO2

Post Combustion Capture Experience

14 years operation of CO2 post-combustion capture of flue gas from a NG fired Siemens gas turbine

Page 13: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 13 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Improved CO2 Post-combustion Capture Process Based on Amino Acid Salts

Competitive benchmark for reduction of steam power plant efficiency loss by amine-based processes is < 10% points

Efficiency Loss Reduced to

-9.2%

SOx

levels at 99% FGD

Siemens CO2 compressor

solutions

2.7 GJ / ton CO2 captured,approx. 40% of LP steam

Low degradation (O2

)

Solvent slip nearly zero

approx. 120°C

90-105°C

CO2

concentration 99% pressure 200 bar

40-45°C

CH

NCH

R

R’O

O

K+ -

Amino acid salt

No thermodynamic solvent emissions

Not flammable•

Not explosive•

Odorless•

No inhalation risk•

Chemically Stable•

Naturally Occurring

Salts have no vapor pressure

Page 14: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 14 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

“Capture Ready Requirements”

All Measures Defined -

Reference Siemens Steam Power Plant Layout SSP5-6000

Steam Turbines•

Extraction of approx. 50 % of LP cross over steam

Options for modification of turbines depend on operation modes

(part load, full load capability w/o CO2 capture, other plant and site conditions)

Steam Turbine BuildingSufficient space/foundation for:• Modification of turbines• Steam and condensate pipes• Installation of heat exchangers

Siemens Offer Proposal:Siemens Offer Proposal:

Integration of carbon capture unit into theIntegration of carbon capture unit into thepower plantpower plant

““Capture Ready / Retrofit SolutionsCapture Ready / Retrofit Solutions””

FGD•

Consider capacity extension in column design

Or provide space for additional FGD unit

Air HeatingOptional: space for installation of heat exchanger(s) for lowest grade heat utilization

Exhaust Ducts•

Consider Δp from CO2

absorption unit •

Later flue gas connection to capture unit (T-branch)

Flue Gas Fan•

Upgradeable design•

Or additional space for installation of second fan downstream of FGD

Electrical Auxiliary LoadSufficient space for:•

Additional auxiliary transformer(s)•

Switchyard•

Cable routes

Condensate SystemSufficient space for:•

Heat exchangers for low grade heat utilization

Additional piping routes with supporting structure / racks

Cooling SystemSufficient space for:•

Additional circulation pumps•

Service water system•

Sufficient cooling capacity of cooling tower

Raw Water and Cooling Water Supply / Waste Water Treatment• Sufficient space for enlargement• Secure water utilization rights

Page 15: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 15 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Conclusion

Reaching CO2 emissions reduction targets only possible with coal + CCS

Synergies with China CTC & IGCC program, newly available advanced gas turbines and 40 year+ IGCC operating experienceRecent progress in post-combustion efficiency loss, extensive industry experience with CO2 scrubbers and now available integrated power plant designs

This can only be achieved through demonstration plants

Efficiency increase and renewables is a good start, but not enough

With commercial technology available from many suppliers major cost reduction potential will be in the reduction of first-of-its-kind plant project risks

GCC with pre-combustion capture and steam power plants with post-combustion capture are low technology risk CCS options ready for implementation

Page 16: “Carbon Capture & Storage” A solution for sustainable ... · Absorption/Desorption is proven technology in the chemical processing and in the oil & gas industries Licensed technology

Page 16 CCT 2009 Keynote / Dr. Vortmeyer Copyright © Siemens AG 2009. All rights reserved.

Thank you for your attention