texas clean energy project: igcc power polygen with 90 percent co2 capture

7/31/2019 Texas Clean Energy Project: IGCC Power Polygen with 90 Percent CO2 Capture

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S U M M I T P O W E R

Texas Clean Energy Project

A 400MW Power/Polygen ProjectWith 90 percent carbon capture

RECS -- Research Experience in Carbon

Sequestration

June 11, 2012

Birmingham, Alabama


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S U M M I T P O W E R 2

Summit Power

Summit Power Group is a Seattle-based developer of clean energy projects

Founded 21 years ago by former U.S. Secretary of Energy Don Hodel & COOof Department of Energy Earl Gjelde

Summits projects:

Over 7,000 MW completed

Over 2,000 MW in development

Summits principal project types:

Wind power

Solar power

Natural gas-fired power plants

Carbon capture projects

Projects Completed ,

Under Construction, or

Approved by PUCs


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Texas Clean Energy Project (TCEP):A 400 MW polygen IGCC plant

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Coal2mm tpy

Coal Gasification andGas Cleanup

Steam

Wyoming Coal viaRailroad

High Hydrogen PowerTurbine

2/3 ofSyngas

1/3 ofSyngas

Coal and Steam Input,Main Outputs are

Syngas (Hydrogenand Carbon Monoxide)

and Pure CO2

1/6 ofCO2

5/6 ofCO2

Ammonia/UreaComplex

CO2 Delivered to OilFields via Pipeline

195 MW lowcarbon power

delivered to Cityof San Antonio

(30% ofrevenues)*

500,000+tons/yr delivered

to FertilizerCompany (45%of revenues)*

2.5mm tons peryear delivered

to OilCompanies

(20% ofrevenues)*

Non-drinkable Water

* Remaining 5% of revenue from byproduct sales


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Five Siemens gasifiers of

TCEP-type on line in China


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The Siemensgasifier


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All key permitting is now complete: Record of Decision from US DOE on 9/29/11 (completes NEPA/EIS process)

Air permit issued 12/28/10 (no opposition/request for hearing)

Off-take agreements are now complete & signed:

100% of power sold to CPS Energy for 25 years (contract signed in December) 100% of CO2 sold for 30 years (three different buyers; market remains strong)

100% of urea sold for 15 years (buyer is a huge fertilizer/chemical company)

EPC & O/M contracts signed as of 12/23/2011: Siemens (power) + Linde & SK E&C (chemical) are the EPC contractors

Lump-sum, fixed-price, turnkey EPC contracts (power block + chemical block)

Siemens + Linde JV warrant availability & performance under 15 year contract

IRR range attractive for equity investors, and RBS-led bank lender groupexpects to be able to provide & obtain the project debt

TCEP financing readiness& shovel-readiness


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Where is the Project?


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Site Location and

Infrastructure


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The 600-acre site

(after a rain)


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10AV20100391

Site Configuration

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1. We havent succeeded yet we must still finance TCEP successfully Development tasks are completed; financing is the key remaining task

2. Good fortune accounts for some key TCEP advantages

Example: size mismatch between Siemens gasifiers & high-H2

combustionturbine created extra syngas; this compelled polygen & led to urea production

3. TCEP could not be built without US DOE financial support

Although designed to be project financed, TCEP is still a first-of-a-kind plant

DOEs $450 million significantly reduces the netcost to be project financed

Yet TCEP is also a reference plant we believe can be replicated elsewhere

4. Support from national environmental groups has been essential

NRDC, EDF, CATF have supported from the outset

This has been immensely valuable in terms of process, not just politics

Four necessaryacknowledgments


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Summit went to Texas at request of environmental groups

Key motivation: 90+ percent CO2 capture with sequestration

Resulting CO2 emissions will be worlds lowest from fossil fuel

Power block will be air-cooled, not water-cooled Water for gasifiers & urea will be from on-site desalinization

TCEP itself will be a zero liquid discharge (ZLD) facility

Lowest permit limits for SOx, NOx, particulates & mercury

As a result, air permit was obtained in eight months; no onerequested a hearing on air permit (or any other permit)

Commitment to independent Carbon Management AdvisoryBoard of scientists & NGO representatives also important

Environmental support:What accounts for it?


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Benefits (TCEP) from not burning coal: negligible SOx, NOx, PM

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Benefits (TCEP) from not burning coal: negligible Mercury (Hg)

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Benefits (TCEP) from not burning coal: worlds lowest CO2

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Context for forming

Summit Carbon Capture

It is important to commercialize CO2 capture at large scale

Capturing large volumes of CO2 at a power plant is feasible

Problem is where to put the CO2 and how to pay for its capture

Waxman-Markey bill promised $90/120 per ton but didnt pass

Today, U.S. (basically) doesnt pay for CO2 capture & sequestration So today, EOR is the sole source for substantial CCS revenues

(algae farms need CO2 but consume relatively little)

Moreover, building long new CO2 pipelines eats up the revenue

So Stage 1 of large-scale CCS involves (1) locating capture plants

where EOR infrastructure exists, and (2) dealing with oil producers

Oil producers prefer natural (geological) CO2 for several reasons

TCEP provides lessons in how to compete with natural CO2

Major national environmental organizations support CO2 /EOR


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CO2/EOR = CCS + a bridge

CO2/EOR has safe, reliable, high-volume history since 1972

Especially in Permian Basin, this is not an experiment withmore than 3,000 miles of dedicated pipelines

CO2/EOR with MVA can be highly reliable form of CCS

CO2 can remain sequestered for more than 1,000 yrs (the TX

standard)


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Job Creation

TCEP will create:

1,500 to 2,000 construction jobs (groundbreaking 2012)

200 full-time plant jobs (management, administration,

operators, maintenance est.) when plant opens 2015-2016

200 additional skilled personnel during major maintenance

periods every 3 years

8,000 ancillary jobs created by TCEP vendors (manufacturing,

engineering, permitting, administrative, shipping, purchasing,

R&D positions)


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Local Financial Support

Local financial incentives include:

$5 million jobs grant from Odessa Development

Corporation (approved 1/25/10)

Donation of 600-acre site in Penwell by ODC (3/31/10)

100 percent tax abatement for 10 years beginning 2013

Ector County (approved 5/23/11)

Odessa Junior College District (approved 6/23/11)

Ector County Hospital District (approved 7/12/11) Ector County ISD (per Texas Tax Code, Chapter 313.025;

approved 12-13-11)

S U M M I T P O W E R


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Contact information

Summit Power Group, LLC: www.summitpower.com

Texas Clean Energy Project: www.texascleanenergyproject.com

Contact Laura Miller, Director of Projects, Texas, for Summit:

[email protected]
http://www.summitpower.com/http://www.texascleanenergyproject.com/http://www.texascleanenergyproject.com/http://www.summitpower.com/

texas clean energy project: igcc power polygen with 90 percent co2 capture

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