Pathway to Low Emission Power Generation using Fossil Fuels

: an EU Technology Perspective

Nick Otter

International Workshop on “Power Generation with CCS in India”

Ashok Hotel, New Delhi, India

22nd January 2008

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 2

Power Generation: Equipment & Service

Key figures 2006/07:

• Orders: €13.6 bn

• Sales: €8.9 bn

• Operating margin: 8 %

• Employees: 40,000

an international company trading worldwide

a strong and growing presence in India

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 3

Agenda

1st topic the importance of the issue

2nd topic the technologies involved

3rd topic a consensus view within Europe

4th topic some concluding remarks

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 4

Agenda

1st topic the importance of the issue

2nd topic the technologies involved

3rd topic a consensus view within Europe

4th topic some concluding remarks

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 5

CO2 emission targets cannot be achieved without CCS

Global Energy Demand and Renewable Energy

?

• Rising energy demand cannot be met by Renewables alone

• CO2 reduction targets can’t be met by Renewables & energy efficiency alone

• CCS could reduce CO2 emissions by 50% by 2050

CCS is a key solution for combating climate change, within a portfolio of solutions

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 6

Agenda

1st topic the importance of the issue

2nd topic the technologies involved

3rd topic a consensus view within Europe

4th topic some concluding remarks

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 7

Pathway to zero emission fossil fuel power

CarbonReduction

Time

Zero EmissionsTarget

Near-term Mid-term Long-term

High efficiency plant, one key element of zero emission

power generation

Framework/Market?Policy/Regulation?Geography?

Capture ready concept90%

20%

Storage of CO2

EnhancedOil Recovery

an integrated approach to “zero emission”

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 8

CO2 impact of efficiency increase

- 35% CO2- 35% CO2

Status of Technology

Worldwide Average

- 42%- 42%

Advanced SteamPower Plant (700°C)

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 9

Power Plant with CO2 Capture

PipelineUndergroun

dStorage

CO2 CO2

Process Chain of Carbon Capture and Storage

Saline Aquifers

Enhanced Oil Recovery

Storage Options

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 10

Carbon Capture Technologies

• Accepted need for a portfolio approach

• All technologies need to be addressed

• Retrofit and new plant application

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 11

30

40

50

60

70

80

90

1 2 3 4 5 6 7 8 9 10 11 12 13 14

CoE

($

/ M

Wh

net)

IGCC with Capture

SCPC with Ammonia Capture

Oxy PC SCPC without Capture

IGCC without Capture

SCPC with Advanced Amine

Capture

Oxy CFB

Cost discovery zone

Carbon capture technology comparison

A portfolio of technologies must be validated at large scale

** Based on a 400 MWnet design, versus 650 Mwnet for other technologies

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 12

CO2 Transport and Storage

Key Issues

Infrastructure Requirement

Cost Reduction

Public Acceptance

Safe and Effective Storage

Developing the Legal, Regulatory & Fiscal Framework

Safety and acceptance of CO2 storage

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 13

Agenda

1st topic the importance of the topic

2nd topic the technologies involved

3rd topic a consensus view within Europe

4th topic some concluding remarks

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 14

4th October 2007 ZEP Overview OTTER IFP CCS Conference Paris 4

ETP ZEP :Set-up and Vision

• Primary task to set and implement strategic research agenda (SRA) and deployment document (SDD) as a major European action

• Advisory Council formed in June 2005, updated June 2007 : individuals represent

– 6 Generators: E.ON, Endesa, Enel, Energi E2, RWE, Vattenfall – 6 Equipment suppliers: Ansaldo, ALSTOM, Air Liquide, Foster Wheeler, Doosan

Babcock, Siemens– 5 Oil and Gas: BP, Shell, Statoil, Total, Schlumberger– 6 Research: BGS, CIRCE, IFP, Polish CMI, GEUS, TU-Hamburg– 3 NGOs: Bellona, E3G, WWF– 1 Financeer: Morgan Stanley– Chair: Kurt Haege/Vattenfall Vice-Chairs: Olivier Appert/IFP, Gardiner Hill/BP, Charles

Soothill/ALSTOM, Frederic Hauge/Bellona

• Formally launched : 1st December 2005

• First General Assembly, Brussels : 12-13th December 2006• Second General Assembly, Paris : 3rd October 2007

The Vision: To enable European fossil fuel power plants to have zero emission of CO2 by 2020.

MAJOR EUROPEAN ACTION

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 15

21st January 2008 ZEP Overview OTTER EU India CCT WG Delhi India 5

ZEP Advisory Council

TaskforceDemo&Implementation

Taskforce Technology

Taskforce Policy&Regulation

TaskforcePublic Communication

Coordination Group Secretariat

Government Group

IMPLEMENTATION OF SRA AND SDD

SRA : Strategic Research Agenda SDD : Strategic Deployment Document

ETP ZEP :Organisation and Support

High level of commitment and support from ~200 individuals in 19 countries

57% industry, 39% research, 4% NGOs

Government Group

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 16

21st January 2008 ZEP Overview OTTER EU India CCT WG Delhi India 7

ETP ZEP :Strategic Recommendations

• Urgently implement 10-12 integrated large scale CCS demonstration projects EU-wide

• Establish a robust technology action across whole of CO2 chain

• Kick start the CO2 value chain with urgent short and long term commercial incentives

• Establish a regulatory framework for storage

• Gain public support through a comprehensive public information campaign

SRA : set a major R&D action to reduce costs and risks of deployment

SDD : accelerate the market for efficient zero emission power plant

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 17

ETP ZEP :Scope of the EU Flagship Programme

Type of CO2

Infrastructure Plant

technology

Trapping mechanism

(single phase gravitational, dissolution, residual, mineral; over different

timescales)

Storage geology

(cap rock and reservoir quality, overall

properties, volume etc)

Storage type (aquifers, exhausted

petroleum structures, EGR, EOR,

CBM/ECBM)

Fuel type

Capture technology

Public perception

(factors influencing the public

acceptance)

Geographical

location

Portfolio of up to 12

demonstration plants give sufficient

confidence to do CCS at

scale

Retrofit and new plant application

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 18

7

Why an EU Flagship Programmeis essential

• Kick-start the wide-scale deployment of CCS in Europe – and beyond

• Ensure a geographical & technological spread of projects

• Avoid duplication of effort

• Ensure scope for trans-national projects

• Drive down the costs of CCS so less than the price of carbon

10

11

1 2

3

8

9

6

7

5

4

12

“A highly visible, integrated set of projects, Europe-wide”

2

1

3

“Disparate projects with no strategy for sharing”

The EU Flagship Programme

The goal: to make CCS commercially viable by 2020

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 19

21st January 2008 ZEP Overview OTTER EU India CCT WG Delhi India 13

ETP ZEP :Urgency of issue – no time to lose

2007 20252010 2015

Demo plants with storage

Commercialplants

Infrastructure

Learningperiod

Construction and/or

retrofitting of the

commercially viable demo

plants (4 yrs)

Include CCS under ETS

Design, develop & get local permits

2012

Change legislation

Defin

e E

U fl

ag-

ship

pro

gra

mm

e

Finish design

and start construc-

tionLocal

permitting process

Permitting of pipeline infrastructure (+/ -5

yrs)

Construction of mainpipe line infrastructure

(3 to 5 years)

Design of new plants

Implement pro-gram

2020

Defin

e E

U

infr

ast

ruct

ure

Pro

duce

E

U

infr

ast

ruct

ure

pla

n

New plants could

be made “cap-ture

ready”

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 20

Agenda

1st topic the importance of the issue

2nd topic the technologies involved

3rd topic a consensus view within Europe

4th topic some concluding remarks

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 21

Industry getting ready ………… many projects being announced …… but the right regulatory

and fiscal conditions needed

…………industry oriented actions

Acknowledgement to RWE, EON, SSE, NUON, Vattenfall, TOTAL,

Statoil

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 22

…….. preparing the way forward via CO2 “Capture Ready” Plant

Improve gas clean upOr possibility to add cleaning

Provisions for steam extractionsIncluding provisions for adding stagesIn the IP cylinder of the steam turbine

Control system adaptation

Provisions in arrangement planning

Provision for auxiliaryPower consumption

OptimisationOf the cooling systemRecovery of heat in the CO2 capture and compression

Optimisation of theBoiler surfaces accordingModifications of the heat load sharing

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 23

……….. compliant with multi-pollutant control

• Integrated APC system based around commercially proven and reliable technologies

• Uses readily available reagents

• Produces reusable byproduct(s)

• Superior cost/performance ratio:−Extremely compact design−Fewer moving parts reduces maintenance −Superior environmental performance

• Targeted emissions levels:−SO2: 0.02 lb/MMBTU (> 99.5%)−Hg: 1.0 lb/TBTU (> 90%)−PM: 0.01 lb/MMBTU (99.99%)−NOx: 0.05 lb/MMBTU w/SCR

Controls SOx, PM10/PM2.5 Mercury & NOx

Not just CO2

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 24

Construction

….. overall system performance and reliability

Air Preheater

Mills

Low NOx Systems - LNCFS - TFS 2000TM

- Fuel Switching

Burner NOx Retrofits- RSFC™- P2™

Research andDevelopment- Air Modeling Capabilities- CFD Modeling

Environmental Systems- SNCR- FGD- Precipitators- Scrubbers

Transformer

Steam Turbine

ExisitingFGD

ExistingStack

2 stageCooling

Chiller

CO2Absorber

Regenerator

HX

CO2

HPPump

Wash

Wash

Reboiler

Schematic of Ammonia-based CO2 Capture System

Flue Gas

Water

Rich Slurry

Lean Slurry

CO2

Flue Gas

Purge

Lean AC

Rich ABC

120F

35F

Cooling & Cleaning of FG CO2 Absorption CO2 Regeneration

CO2 Capture

Importance of system integration : more complex plant

© ALSTOM 2007. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

An EU Perspective OTTER PG & CCS Seminar New Delhi, 22-23 January 2008 : 01/01/2007 P 25

Importance of clean use of fossil fuels, especially coal

Importance of accelerating the take-up of clean fossil

Importance of addressing issue worldwide

Clean Fossil Fuel : a critical element of portfolio to getting to a sustainable future

critical transitional issue for a sustainable energy future

an essential part of the portfolio

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