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The prospects for coal: Where to go from here

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The prospects for coal:

Where to go from here

The prospects for coal:

Where to go from here

Moderator:

Honorable Kara Brighton Fornstrom

Wyoming Public Service Commission

Panelists:

Jason Begger — Wyoming Infrastructure Authority, Executive Director

Maury Galbraith — Western Interstate Energy Board, Executive Director

Joe Hoerner — Pacificorp, Vice President of Energy Supply Management

Mayor John Williams— Colstrip, Montana

Next Generation Technologyfor Today’s Energy

Jason Begger, Executive Director

Wyoming Infrastructure Authority

The ITC• One of the world’s largest post-combustion demonstration scale test facilities

• 20+ MW of coal derived flue gas from the Dry Fork Power Station

• Simple design minimizes costs, provides flexibility & quick turnaround times

• Designed for maximum flexibility and scalability for testing

Credit: Basin Electric Cooperative

Who is invested in the ITC?• State of Wyoming - $15 million

• Basin Electric – Host at Dry Fork Station

• Tri-State G&T - $5 million

• National Rural Electric Cooperatives Association - $1 million

• Wyoming Infrastructure Authority – Managing Entity

• Black Hills Corp. and Rocky Mountain Power providing

technical expertise and in-kind contributions

• XPRIZE Foundation – First tenant

Construction

Photo Credit: Basin Electric Cooperative

• Multi-phase, started in

2016 during DFS shutdown

• Completed in May 2018

• Approximately $2.5 million

(17%) under budget

• Cost savings rolled into

O&M over eight-year lease

Site of XPRIZE competition - Small Test Bays

XPRIZE is a temporary tenant of the ITC and at the completion of the competition, the space will be

available to new testers.

Small Test Bay

XPRIZE competition

XPRIZE is a temporary tenant of the ITC and at the completion of the competition, the space will be

available to new testers.

Breathe (Bangalore, India) – Led by Dr. Sebastian Peter, the team is producing methanol, a common fuel and petrochemical feedstock, using a novel catalyst.

C4X (Suzhou, China) – Led by Dr. Wayne Song and Dr. Yuehui Li, the team is producing chemicals and bio-composite foamed plastics.

Carbon Capture Machine (Aberdeen, Scotland) – Led by Dr. Mohammed Imbabi, the team is producing solid carbonates with applications to building materials.

CarbonCure (Dartmouth, Canada) –Led by Jennifer Wagner, the team is producing stronger, greener concrete.

Carbon Upcycling UCLA (Los Angeles, CA, USA) –Led by Dr. Gaurav Sant, the team is producing building materials that absorb CO2 during the production process to replace concrete.

Large Test Bay

Large Test Bay

JCOAL – KHI Test

• July 2016 – State of Wyoming - JCOAL (Japan

Coal Energy Center) MOU

• April 2017 – WY delegation meetings in Japan

• Sept. 2017 – JCOAL/UWSER conference in

Gillette

• March 2018 – WY delegation meetings in

Japan

• April 2018 – Announcement of JCOAL-KHI

(Kawasaki Heavy Industries) test at ITC – dry

sorbent, fixed bed technology

• May 2018 – Japan Ministry of Environment,

JCOAL and KHI trip to Gillette

Partnership Development

• University of Wyoming School of

Energy Resources

• International Carbon Capture Test

Center Network

• American Jobs Project

• Center for Carbon Removal –

Carbon Recycling Labs

• National Carbon Capture Center

Financing and pathway to commercialization is critical!

Dedication – May 16, 2018

Next Steps

• Additional Tenants

• Partnership opportunities with CarbonSafe, EORI, others

• Promote ITC to potential tenants

• Finalize operations and business plans

• Provide technical assistance to tenants

• Explore alternative financing mechanisms

• Accounting

• Investment products

Stay in Touch!

Jason Begger

Executive Director

Wyoming Infrastructure Authority

[email protected]

(307) 256-0098

wyomingitc.org

twitter.com/WyomingITC

facebook.com/WyomingITC

Changing Operation of Coal Units in the West

Maury Galbraith

Western Interstate Energy Board

2018 Western Conference of Public Service Commissioners

Boise, Idaho

June 6, 2018

17

Baseload vs. Flexible Operation

Western Interstate Energy Board 18

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0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Genera

tion (

MW

h)

Operating Hour

Average Hourly Generation at Centralia Coal Plant -

November 2001

Unit 1 Unit 2

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0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Genera

tion (

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Average Hourly Generation at Centralia Coal Plant -

November 2016

Unit 1 Unit 2

Western Coal Fleet – 2001

Western Interstate Energy Board 19

Western Coal Fleet – 2016

Western Interstate Energy Board 20

WIDAP Dashboard – Intermountain Unit 1

Western Interstate Energy Board 21

Essential Reliability Services

Western Interstate Energy Board 22

Page 3CREPC-WIRAB – Fall 2017

Comparison of Flexibility and Reliability Attributes of Power Generating Technologies

Nuclear Coal Gas Wind Solar Hydro

Construction Duration (Years)16 6 3 3 1 3

Heat Rate (Btu/kWh)110,452 10,062 6,682 (CC) - 10,033 (CT)

Planned Outage Rate (%)16% 12% 5% (CT) - 6% (CC) 0.6%2 2%2 1.9%2

Forced Outage Rate (%)14% 8% 3% (CT) - 4% (CC) 5%2 0%2 5%2

Minimum Load (%)1100% 50% 0%

Frequency Response3

Voltage Control3

Regulation Ramp3

Contingency Ramp3

Load Following3

Not Fuel Limited3

On-Site Fuel Inventory3

Flexible Cycle3

Short Min. Run Time3

Startup/Notification Time <30 Min.3

Black Start Capable3

Notes and Sources: Full Capability

[1] "2016 Annual Technology Baseline," NREL, 2016. A base year of 2014 is provided for all results. Partial Capability

[2] "Cost Report: Cost and Performance Data for Power Generation Technologies," NREL, February 2012. No Capability

[3] "PJM's Evolving Resource Mix and System Reliability," PJM, March 30, 2017.

Frequency Resp.

Voltage Control

Regulation Ramp

Contingency Ramp

Load Following

Not Fuel Limited

On-Site Fuel Inven

Flexible Cycle

Short Min Run Time

<30 Min Start Up

Black Start Cap

Nuclear Coal Natural Gas Wind Solar Hydro

re·li·a·bil·i·tyrəˌlīəˈbilədē/

noun

Hibbard, Tierney, Franklin, “Electricity Markets, Reliability and the Evolving U.S. Power System,” June 2017

The Role of Coal in the West

Western Interstate Energy Board 23

• Unit-days of baseload operation decreased from 52% in 2001 to 22% in 2016

• Unit-days of shutdown increased from 9% in 2001 to 21% in 2016

• “Plants that aren’t on-line much don’t provide frequency response.”

– Alison Silverstein, Fall 2017 Joint CREPC-WIRAB Meeting.

• WIEB Webinar: https://westernenergyboard.org/category/webinars/

Western Interstate Energy Board 24

Thank You

Maury [email protected]

2018 Western Conference of Public Service Commissioners

The Prospects for Coal: Where to go from hereJune 6, 2018

Joseph HoernerVice President

Energy Supply Management

Paradigm Shift in Western Energy Markets

Responsive Coal and its Benefits

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2012 2013 2014 2015 2016 2017

Mill

ion

s o

f To

ns

CO

2

2012-2017 Annual Emissions

Short Tons CO2

The prospects for coal:

Where to go from here