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Dr. S. Julio Friedmann

Deputy Assistant Secretary

Office of Clean Coal and Carbon Management

Coal and the Clean Energy FutureJapan Clean Coal Day International

SymposiumSept. 8th, 2014, Tokyo

This is a time of fossil energy abundance

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Once in a generation opportunity to build

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US Energy Picture: Abundant Coal, Gas, and Oil

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Coal Use Growing Overall and Important in Many Economies

EIA Energy Outlook 2013

Continued recent growth•China•Europe•India, Japan

Increased tradeand exports

Increased CO2 emissions

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‐0.5

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1 101 201 301 401 501 6011400 1500 1600 1700 1800 1900 2000

Mt. Pinatubo erupts

El Chichon erupts

Industrial revolutionbegins

French Revolutionbegins

Martin Luther’s95 theses

Fall of Constantinople;Renaissance begins

PlymouthRock

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Reconstructed global average annual temperature record (Mann, 1996)plus modern temperatures

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Because of abundant fossil energy, clean coal technology remains a critical option

IEA CCS Roadmap 2013

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CCS/CCUS is the key technology for this era of fossil energy abundance 

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Policy drivers

• President’s Climate Action Plan

• EPA: NSPS (draft) and ESPS (pending)

• State actions (AB32 etc.)

Technical findings (2008‐present)

• IPCC WG1 report: must read policy summary!

• Continued GHG accumulations

• Challenges will all energy scale‐ups

Global economic context

• Investors speak

• Global coal increase

• US‐China dominance

A $6B climate mitigation program at DOE

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Large Scale Integrated Projects World Wide

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Operate Execute Define Evaluate Cum. Volume

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Data from Global CCS Institute

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DOE’s top CCS priorities

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Success of US eight commercial demonstration projects

• Bring into operation 2013‐2019

• A deep and rich set of public learning

Reimagining the coal and CCS RD&D portfolio

• Advanced combustion

• Capture and storage: incl. footprint reduction

• 2nd generation large pilots

International Partnerships

• China

• Japan

• Other key partnerships

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DOE CCUS Demonstration Projects

CCPI

FutureGen

ICCS (Area I)

Hydrogen Energy CaliforniaIGCC with EOR

$408 Million ‐ DOE$4.0 Billion ‐ Total

Summit Texas Clean EnergyIGCC with EOR

$450 Million ‐ DOE$1.7 Billion ‐ Total

NRG EnergyPost Combustion with CO2

Capture with EOR$167 Million – DOE$339 Million ‐ Total

Air ProductsCO2 Capture from Steam 

Methane Reformers with EOR$284 Million ‐ DOE $431 Million ‐ Total 

LeucadiaCO2 Capture from Methanol  

with EOR$261 Million ‐ DOE $436 Million ‐ Total 

Archer Daniels MidlandCO2 Capture from Ethanol w/ saline storage

$141 Million ‐ DOE $208 Million ‐ Total 

FutureGen 2.0Oxy‐combustion with CO2 capture

and saline storage$1.0 Billion ‐ DOE$1.3 Billion ‐ Total  

Southern Company ServicesIGCC‐Transport Gasifier w/CO2 pipeline

$270 Million ‐ DOE$2.67 Billion ‐ Total

Projects are sources of innovation:Technology, business, and policy

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1111

Kemper County, MSSouthern Co., 2010

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Kemper County, MSSouthern Co., 2013

(Anticipated start late 2014 or early 2015)

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Port Arthur, TXAir Products, 2013 

VSA VesselsVSA Vessels

Co-Gen Unit

Blowers

CO2

Compressor & TEG Unit

CO2 Surge Tanks

Existing SMR

One million tons injected as of April, 2014

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W.A. Parrish, TXNRG/PetraNova project

Broke Ground Last Week!!

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Reimaging our RD&D portfolio

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Advanced combustion

• Materials and manufacturing

• Advanced cycles (e.g., PGC, sCO2)

Capture and Storage

• Advanced simulation (NRAP and CCSI)

• Functionalized discovery

• Mastery of the subsurface

Accelerated 2nd Gen pilots

• Computational design

• International sharing

16Pre-combustion Capture Center

Pilot Solvent Test Unit (PSTU)

0.5 Mwe(10 tpd CO2)Goal

Test technologies under realistic conditions to reduce the cost of CO2 capture

Advantages• National resource to validate

performance and operations • Consistent testing procedures and data • Very good safety and environmental

record • Platform for international partnership

and sharing

Status• New 5 year commitment to operator

(Southern Company)• >20 technologies tested• 100’s of technologies screened

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International partnerships required 

Many platforms (APEC; G7; Boao; UNFCCC; WEC)

CSLF: Multinational platform– 22 countries + E.C.

– 11 years in practice

– Productive technical and policy working groups

Partnerships in Commerce– Joint ventures

– International investment

– “Showcase” projects

Accelerated deployment– Data sharing

– International Science Projects

11th CSLF MinisterialNov. 2013

Minister’s visit to Kemper projectNov. 2013

Clean Coal deployment: most urgent and important 

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Not just about cost

• Costs are higher than dirty coal plants

• Costs are lower than many clean energy alternatives

Not just about technology

• Many technologies are well demonstrated

• Improvement potential is very large

Could finance many ways

• Rate recovery; feed‐in tariffs; direct grants

• Clean energy portfolios; tax‐free debt financing; others

Financing is the priority action

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• Many 10’s of billions producible in US (100’s of billions worldwide)

• Required to finance first set of projects; drive down costs through deployment

• Additional domestic supply, revenues; reduced imports B

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Domestic Oil Resources

ARI, 2008

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Total U.S.CO2 Demand

NewLower-48

CO2 Demand

Net Lower-48From CapturedCO2 Emissions

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2,000

4,000

6,000

8,000

10,000

12,000

14,00012,500

9,700

7,500

2,800* 2,200**

Market CO2 demand

EOR is a critical bridging step that brings near-term benefits to the US

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Global challenge global progress: new global solutions still required

Key unit of innovation – global engines of discovery

White Rose (UK)

Uthmaniyah (KSA)

Lula (BRA)

Quest (CAN)

ESI (UAE)

Gorgon (AUS)

GreenGen (PRC)

We just need more projects and more information

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Technology leads and informs policy

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Must build and deploy large projects

• Learning opportunity in CCS and clean fossil

• Information sharing: partnership as product

• Financing is the key challenge; many paths to success

Must develop 2nd and 3rd generation technology

Must partner with many

• Friends in the US

• Friends around the world

Once in a generation opportunity to build