Bureau of Economic GeologyJackson School of Geosciences

The University of Texas at Austin

Texas FutureGen:Texas FutureGen:A win for the region A win for the region

Ian Duncan

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Per

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Year

1850 1900 1950 2000

H/C>4 (Natural Gas, Hydrogen, Nuclear, Sustainables)

H/C<1 (Wood, Coal)

H/C~2 (Oil)

U.S. Data: Annual Energy Review 1999 (EIA, 2000)World Data: International Energy Annual 1999 (EIA, 2000)

Global Consumption Trends

THE US IS THE SAUDI ARABIA OF COAL

What are the Implications for the Oil Industry

• High oil prices and National Security will drive gasification of coal and production of synthetic diesel for DOD

• Environmental NGO’s driving power companies to decarbonize fuel…. CO2 sequestration

• Relatively cheap CO2 available for EOR

FutureGenPreliminary Federal Requirements

• Design, construct, operate a 275-megawatt plant to produce electricity, hydrogen, and > one million metric tons per year of CO2 with near-zero emissions.

• Establish capability to sequester at least 90 percent of plant’s CO2 emissions.

• Demonstrate fuel flexibility (coal, lignite etc)

• Prove the effectiveness, safety, and permanence of CO2 sequestration.

• Establish standardized protocols for CO2 measuring, monitoring, and verification.

FutureGenCommercial Details

• $1 billion DOE award

•$750 million from DOE

•$250 million from a private consortium

• Initial RFP expected early 2006

• 30 day review and comment period

• 120 day proposal preparation period

• 120 day proposal evaluation period

• Award of the project is expected late summer of 2006

• This is subject to change…..

FutureGenIGCC w/ CO2 Capture

Coal

Petroleum Coke

Refinery Co-products

Gasifier

Oxygen

Modified from Eastman Chemical

Slag/Soot

Electricity

Steam

Syngas

Combustion Turbine

SteamTurbine

Sulfur

Hydrogen

Particulate Removal

Solids and Co-products

SteamShift

ReactorH

CO2

CO2

Sulfur

FutureGen Texas - Overview•Early leadership by Commissioner Michael Williams and the Clean Coal Council and Foundation

•Commissioner Williams created FGT team and asked the Bureau of Economic Geology to lead

•Legislative action in 2005 session and support from state leadership

• State wide selection process, level playing field

• Broad stakeholder involvement and community buy-in

FutureGen Texas – The Texas Advantage

Texas holds great cards: • excellent geology for sequestration success,

• largest coal user in country, • largest hydrogen market,• largest producer of methanol and ammonia,

• most extensive hydrogen pipeline, • most experience in CO2 pipelines,

• largest CO2 sequestration and EOR potential

Honorable Rick PerryGovernor of Texas

Texas FutureGen Advisory Board

Honorable Michael Williams Chair

Operations Site Selection Proposal ResponseLegal Relations

BEG Strategic Coordination – Scott W. Tinker

•Federal

•State

•Public

•CO2

•Permitting

•EOR

•IGCC

•Fuels

•Transport

Subsurface Thickness

Data SourceBEG

CO2 Brine Storage

CO2-EOR CO2-EOR Qualified ReservoirsQualified Reservoirs

Data SourcesBEGRRC

EOR Candidates

Data SourceBEG

Coal Resources

Data SourcesBEGRRC

USGS

Half of the nation’s reserves are in low btu coal, lignite and

pet coke

Refineries

Transmission Line Density

More dense

Less dense

Coal-firedPowerplantCoal-firedPowerplant

Refineries

Transmission Line Density

More dense

Less dense

Additional Parameters

•Refineries: Oil and Gas Journal, Dec. 23, 2002 issue •Non-attainment areas: TCEQ•Transmission line density: ERCOT and CEE•Pipelines: Texas Railroad Commission digital database•Summer Load, peak 2005: ERCOT and CEE•Railroads, Power plants: TXDOT digital database, Public Utility Commission of Texas•Lignite belt: Kaiser, W. R., Ayers, W. B., Jr., and La Brie, L. W., 1980, Lignite resources in Texas: BEG RI 104, 52 p.•Lignite mines: Texas Railroad Commission, digital data base•Fort Worth Sub-bituminous Basin: USGS digital data base

Preliminary Screening

600 km0

200 400 mi0

Alberta

Mexico

Commercial Propagation

For FutureGen to succeed:

For an impact on a scale that matters

in a time frame that matters —

Requires:

(1) flexible fuels

(2) near-term propagation of FutureGen-like facilities.

Needs

• National support for national problem…

• Outreach and Public Education

• Talented well trained work force

• Knowledge of what happens when we scale from 1 Mt to 1 MMt to 1 GT?

Summary• Climate change is the driver• Governments create incentives

and support research• Industry implements at

commercial scales• Science and engineering are vital

– implementation costs are huge– timing is critical– missteps are costly

• Start in regions where impact can be felt the soonest and the most

Thanks!