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Prospects for Coal and Clean Coal Technologies in Italy

Report by the IEA Clean Coal Centre, UK

Italy – setting the scene

 

Major global manufacturer: •  11th largest global economy 

•  2nd largest manufacturing country in EU

•  5th largest manufacturing country in the

world (after USA, China, Japan, Germany)

•  3rd largest economy in the Eurozone

Population 61 million + land area 301,300 km2

Founding member of G7, G8, the Eurozone and the OECD

Background

Competiveness hampered by expensive electricity: •  heavy reliance on imported natural gas and oil

(one of Europe’s biggest energy importers) •  high incentives for renewables •  electricity imports •  limited use of coal •  no nuclear power

Italy has Europe’s 2nd largest industrial sector But economic growth has been poor

In 2012, energy imports cost €65 billion

The Italian energy sector

PES (258.8 Mtoe in 2013)

Oil Consumption decreasing but still major source. Share in energy mix higher than EU average 61.8

Gas

Limited domestic production - high import dependence. Much used for power generation (~46% of Italy’s electricity)

57.8

Hydro Levels significantly increased since 2003. Four biggest plants are >1 GW 11.6

Other REs Level of deployment increasing. High incentives. Wind and solar dominate sector 13.0

Coal Low domestic production. Most demand met by imports. Biggest use is for power generation

14.6

Domestic coal

Only Carbosulcis mine in Sardinia now operational Produces high-sulphur subbituminous coal Supplied to ENEL’s Portovesme power plant •  Sulcis resources = 610-620 Mt •  Proven reserves = 10 Mt

Production fallen from >2 Mt/y in 1980s to ~80 kt/y

Coal plays a modest role in energy sector Most coal is imported – mainly for power generation

Imported coal

3rd largest coal importer in EU after Germany and UK Imports: 20-27 Mt/y of bituminous coal •  steam, coking, PCI •  imports provide ~98% of solid fuels Most coal-fired plants rely on imported coal

Makeup of generation sector

•  total capacity ~9.7 GW •  some are very clean + efficient •  high steam conditions •  fleet’s average efficiency is ~40%

•  Torrevaldaliga Nord is higher (45-46%) •  several proposed projects would be similar to Torre Nord

Natural gas, oil, coal, renewables But no nuclear – none planned

Coal-fired fleet:

Italian power generation sector - 1

Since 1970s, electricity demand has outstripped supply •  Italian plants generated 285 TWh (~87%) •  Installed capacity rose by 5.8 GW to 124.2 GW •  Renewables increased by 11.2% •  Gas provided biggest share – 125.4 TWh

- >60% of total thermoelectric production •  Coal provided 44.7 TWh (13.6%) •  Also electricity imports of ~43 TWh (~13%)

- biggest suppliers France and Switzerland - Italy is biggest electricity importer in Europe

In 2012:

Italian power generation sector - 2

•  reduced demand •  over-capacity in thermal (CCGT) sector •  increasing input from renewables •  no nuclear capacity •  limited use of coal •  heavy dependence on imported gas •  high incentives for renewables •  electricity imports

The sector is changing:

Electricity is more expensive than Euro average:

Reducing the cost of electricity

Aims to align electricity prices + costs to EU standards:

•  reducing generation costs •  reduce electricity imports •  ensuring full European integration •  fully integrating energy from renewables •  electricity consumption will be contained •  energy mix will be largely gas and renewables •  level of coal use will stay roughly the same •  oil use will fall to virtually zero

National Energy Strategy (NES) of 2013

NES anticipates that:

Potential of coal to reduce cost of electricity

Advantages of coal:

•  widely available from stable, reliable sources •  price less volatile than oil or gas •  modern plant can be reliable, clean and efficient •  modern technologies can control emissions •  coal-fired generation - often the cheapest option •  co-firing possibilities •  no intermittency issues •  can run on base load or more flexibly

Little mention of coal in NES

Carbon capture and storage will be important

Power generation mix – other countries

Advantages in having a diverse, balanced mix of technologies that includes fossil fuels, nuclear and renewables

(World Bank, 2012)

Oil Gas Nuclear Hydro Other REs

Coal

S. Korea 4.1 22.9 29.3 0.7 0.6 42.2

Germany 1.5 11.5 16.3 3.5 18.9 46.9

India 1.2 10.3 3.2 12.4 5.0 67.9

UK 1.0 27.7 19.5 1.5 10.0 39.9

USA 0.7 29.8 18.7 6.5 5.6 38.3

Italy 6.3 46.1 ------- 14.2 16.3 16.0

Clean Coal Technologies in Italy

Supercritical PCC (Torre Nord, Brindisi Sud) + proposed new units, also and oil-to-coal conversions •  Coal cleaning systems •  Co-firing coal, biomass, wastes •  Emission control systems (FGD, SCR, etc) •  CFBC •  Gasification/IGCC •  CTL •  ECBM

Commercial experience + RD&D

Carbon Capture and Storage - CCS

The report will examine:

•  pre-combustion CO2 capture •  post combustion CO2 capture •  oxyfuel combustion

CCS – important for the future of coal-fired generation

Important work under way at CO2 Technology Centre of Sulcis

Summary

§  Energy in Italy

§  Domestic & imported sources, national reserves, production etc

§  Coal production §  Now and in the future, coal upgrading

§  Electricity generation sector §  Makeup, profitability, technologies

§  Review the NES §  Look at advantages coal could bring

§  Clean coal technologies §  Programmes and projects under way §  CCS and future use of coal

IEA CCC will provide an impartial, unbiased report on energy use in Italy, concentrating on the role of coal

Contact details: Dr Stephen Mills IEA Clean Coal Centre, 14 Northfields, London SW18 1DD, UK email: Steve.J.Mills@sjmills.plus.com

Grazie per l'attenzione!