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CCTR & Indiana’s Clean Coal InitiativeASME Central Indiana Section

Indianapolis, January 16, 2008

Brian H. Bowen, Marty W. Irwin765-494-1873 bhbowen@purdue.edu

Indiana Center for Coal Technology ResearchLocated in the Energy Center at Discovery Park, Purdue University

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Coal

http://www.purdue.edu/dp/energy/

Click here

CCTR was

created bystate

legislation SB 29

in 2002

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CCTR Mission & OverviewThe goal and purpose of the Center for Coal Technology Research (CCTR) is to address the vital issue of determining suitable coal technologies which will meet the economic & environmental priorities of Indiana

Key issues, affecting coal projects, that are being most considered include (1) gasification technology

(2) infrastructure expansion(3) carbon management

http://www.purdue.edu/dp/energy/CCTR/

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Note A: Relatively Stable Coal Prices in Real Terms; Prices of Other Energy Sources Continue to Rise

Real Cost of Energy

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Note B: Delineation of Indiana Coal Resources Using USGS Availability System

2007 Indiana Geological Survey Data

Current production = 35MTons/year

17.5Billion/35Million= 500 years

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Note C: Indiana Electric Requirement, SUFG45.9% Increase in Demand in Next 17 years

25,000MW = Indiana’s Capacity

Coal (Low price, $1-2/MBtu)Nuclear (12 - 15 years?)Natural gas (High price, $8/MBtu)

Where is the futurebase load power to come from?

45.9% increase

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1. GASIFICATION

• Support creative commercial projects - Coal is still the most stable and cheapest energy source

• Wabash Valley IGCC Developments – Wabash, Edwardsport, FutureGen at Mattoon (IL & IN MOU)

• CTL and creation of CFA (Midwest Coal Fuel Alliance) in 2005, Purdue Teams (Chem Eng, Mech Eng, Economics), latest development at Crane (Martin County)

• CTL interest by DOD – Air Force Energy Bill (Fuel) exceeds $10M per day. Every $10/barrel increase drives up AF fuel costs $600M per year – security of supplies

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GASIFICATION

• Gasification has the major benefit of making it easier to capture CO2 - BIGGEST issue is legislation uncertainty

• CCTR is building up teams of CTL advisorsCoal characteristics – Maria Mastalerz, John Rupp,

IGS, BloomingtonClean coal technology – Ron Rardin, Ind Eng, PurdueCTL economics - Wally Tyner, AgeCon Dept, PurdueCTL Site selection – Paul Preckel, Zuwei Yu, SUFG, PurdueFischer Tropsch – Fabio Ribeiro, Nick Delgas et al

Chem Eng, PurdueCTL engine testing – Bob Lucht et al, ME, Purdue

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CCTR What is Coal Gasification?

Gasification consists of heating the feed material coal in a vessel with (or without) the addition of oxygen. Water may (or may not) be added. Decomposition reactions take place, & a mixture of hydrogen and CO are the predominant gas products, along with water, slag, & CO2

Gasification

Syngas

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CCTR What is IGCC?IGCC = Integrated Gasification Combined Cycle

In the IGCC power plant the coal is gasified to produce a synthetic gas (syngas), pollutants are removed, then electricity is generated using a combined cycle, consisting of three steps: (1) a gas combustion turbine (CT) burns the syngas, (2) heat from the gasification & the exhaust heat from the gas turbine are used to create steam & (3) the steam is used to power a steam turbine-generator

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IGCC Initiatives in the Wabash Valley

FutureGen, Mattoon, ILNear zero emissions IGCC

1995 Fully operational Wabash IGCC, Terre Haute, IN2007 Only two IGCC plants exist in the United States

2012 Edwardsport IGCC, INLargest IGCC in United States

Unit #1 is the IGCC 292MW unit, 191MW Gas Turbine, 100MW Steam Turbine (Total generation at site is 960MW)

630MW IGGC, CO2 capture

275 MW IGCC, H2, CO2capture & storage

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U.S. increases dependence on

imports

Why CTL (Coal To Liquids)?U.S. Dependence on Energy Imports

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CCTR What is the CTL Process?

Fischer Tropsch Reactor- discovered in 1923- catalytic hydrogenation- highly exothermic & designed for heat removal

Various production options

Coal Gasification Fischer-Tropsch (FT)

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10 Criteria1 Coal & natural gas availability for 10,000 B/D FT fuel2 CO2 sequestration potential3 Land/real-estate requirements4 Transportation infrastructure (rail, roads & waterways)5 Electricity transmission lines & available power6 Gas & oil pipelines7 Water requirements & resources8 Waste disposal/environmental issues9 Labor force requirements/availability10 Economic impact

* Many other potential sites in Indiana

CCTR Special Study - Criteria for NSA Crane 2007 Feasibility Study for Coal-To-Liquids

http://www.purdue.edu/dp/energy/CCTR/

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2. INFRASTRUCTURES

• Indiana is home to roughly 22% of the domestic base steel production for the United States. One essential raw material needed by this industry is coke. Initial CCTR project results indicate that it is possible to use blended coal with up to 40% Indiana coal in a non recovery coke oven.

• Over 95% of Indiana’s electricity is generated from coal & 50% of the coal consumed in the state is imported (WY, IL, WV, VA, PA). How can we encourage greater use of Indiana coals?

• There are bottlenecks in the rail system as well as in the power grid. The export and import of electricity is limited by the load capabilities of the lines. MISO is planning the regional power grid. What is the scope for increased coal use in the MISO plans?

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INFRASTRUCTURES (continued)

• Indianapolis Star: “People call us the Saudi Arabia of coal. But if you don’t get it to the power plants, it doesn’t matter.” “Over the years, NIPSCO has routinely reviewed the potential of burning Indiana coal; however, it has not been economical to do so, primarily from a transportation perspective.” Coal shipment is a critical issue. A CCTR project is examining the coal transportation infrastructure relative to power plant operations. How to ship coal north to Schahfer (and MI and WI)?

• Developing research networks: Interdisciplinary CTL testing, collaboration with ICCI (IL), CAER (KY), training at Vincennes & other venues.

CCTR researchers: Bob Kramer, Purdue Calumet; Tom Brady, Purdue North Central; Melanie Thom, Baere Aerospace Consulting Inc; Bob Luchtet al Purdue

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Coal By Destination - Indiana

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Coke & Coal By Rail

Railroad Study: Specific logic for each station in the timetable according to the notation and interlock columns are included in the simulation. Train speed, with appropriate random factors are also defined by the timetable on a station-by-station basis.

World Coke Production: 2005 forecasts indicate that the US would produce 11.5 MTons of coke, but required 17.0 MTons for blast furnace, foundry, and related uses. At present no IN coal is being used.

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Location of Top 10 Congested MISO Lines in 2005

Midwest ISOis planning transmissionexpansionsto provideinterconnectionfor huge wind powerpotentialin ND & SD

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Synfuels: 1-2 barrels of oil from 1ton of coal

USAF, December 2007, C-17 cargo plane was first aircraft to fly across the continental US fueled by a 50/50 synfuel mixture composed of standard JP-8 & FT fuels. South African airways uses these fuels.

Coal To Transportation Liquids, CTL

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• October 2002 Certified ISB 5.9 L Cummins Diesel –EGR & VGT (with Cummins Calterm II 7.63)

• 800 hp Eddy Current Dynamometer w/ Dyn-Loc IV Controller

Diesel Engine & Gas Turbine Combustor Test Facilities at Purdue

• Air flow at 950 F inlet temperature at 9 lb/sec & 700 psi

• Recently upgraded emissions monitoring system, state-of-the-art FTIR and flame ionization detector installed

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3. EMISSIONS

Considerable reductions in SOx, NOx & Hg. The uncertaintyis now about CO2 regulations (global warming debate). Planners & investors are in limbo. The magnitude of the costs for carbon management will be huge. Considerable debate on CO2 trading, tax, capture & storage in coming years. Currently there is no CO2 regulation. Come to March 6CCTR Meeting in Indianapolis to learn more.CO2 capture is easier & cheaper with pre-combustion (IGCC)than with post-combustion on existing power plants. Oxyfuelis another option being developed.

Steve Son – Purdue, John Rupp – IGS Bloomington

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Coal & Emissions ReductionsBut What About CO2

CAIR & CAMR further impact

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Possibly the Most Relevant Slide for 2008!Typical Coal-Fired Power Plant Emissions

Indiana Power Plants produce148 Million Tons of CO2/ year

INDIANAEMISSIONS

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CO2 Capture Technologies & Costs

Indiana’s utilities in 2002 emitted 148 Million Tons CO2

(A) If $25/Ton CO2 , penalty cost $3.7B/yrIf $50/Ton CO2 , penalty cost $7.4B/yr

(IGCC)

(B) What about CO2 Cap & TradeIf 4% CO2 reduction in 2012 (below2005 level) & 1.8% reduction/yearuntil 2025 = 30% total reduction

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CO2 Capture&

Sequestration

Is theresomething

better?

CO2 The Huge Challenge

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CCTR Part of all CCTR Initiatives -How to use One Ton of Coal?

• It can be used to generate 2100 kWh of electricity, which if sold at 6 cents/kWh, would add $126 to the state’s economy, OR

• It can be used to produce 63 gallons of diesel fuel, which, if sold at $3.00/gallon would add $189 to the state’s economy - a 50% increase

• Is human capacity building taking place to cope with new technology options? In all coal related initiatives there is reported need for training

Yuan Zheng, Purdue

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Investment in Indiana

• Indiana Gross State Product is $211 Billion (2005)• Coal adds $750+ Million and 2,836 jobs to the Indiana economy ($2B total impact & 11,000 direct /indirect jobs)• Coal, unlike petroleum or natural gas, has its entire economic impact within the state’s borders• Coal is mined, washed, transported, consumed & the waste is recycled or disposed within the state; each phase generating jobs & revenue streams• The coal dollar multiplies faster & further than any other industrial economic activity. How best to use it?

* Expanding the Utilization of Indiana Coals, page 20

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Conventional & Future Fuel Use

Wally Tyner - Purdue

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CO2 Cost

• Analysis conducted at NETL shows that CO2capture & compression using amines raises the cost of electricity from a newly-built supercritical PC power plant by 84 %, from 4.9 cents/kWh to 9.0 cents/kWh.

• NETL analysis also shows that CO2 capture & compression using Selexol raises the cost of electricity from a newly built IGCC power plant by 25 %, from 5.5 cents/kWh to 6.5 cents/kWh.

(Selexol solvent process dissolves the acid gases from the feed gas & can operate selectively to recover H2 and CO2 as separate streams)

Source: ”Carbon Sequestration and CO2 Capture”: NETL

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More Coal – But are We Ready

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CCTR Reports, Presentations & Data Files

2008 CCTR Advisory Panel Meetings (a forum at which all are welcome) discuss & prioritize coal projects:

March 6, IndianapolisJune 5, Bloomington September 11, Vincennes December 11, West Lafayette

http://www.purdue.edu/dp/energy/CCTR/