The Development of IGCC, Co-production and CCS in China

The Development of IGCC, Co-production and CCS in China Xiao, Yunhan Head, The National Joint Expert Group for IGCC and Co-Production Demonstration Engineering of China Director General, Research Center for Energy and Power, CAS Vice President, Nanjing Branch, CAS Presented at 2009 U.S.-China Coal Conversion and Carbon Management Workshop West Virginia University Morgantown West Virginia, USA December 3-4, 2009

Contents Challenges and a Solution The Evolution of IGCC/Co-production/CCS in China Clean Energy Innovation Park Project in Lianyungang International Collaboration 2

Real Facts for Challenges Conventional oil & gas… not enough resources? Coal… not enough atmosphere? Biomass… not enough land? Wind & hydro… not enough good sites? Photovoltaics… too expensive? Nuclear fission… too unforgiving? Nuclear fusion… too difficult? Hydrogen… energy to make it? means to store it? End-use efficiency… not enough smart end users … No “silver bullet” for challenges

Low Carbon Scenario

Real facts • More than ever, to be the end, It's got to be coal • To 2050, 100B tce coal will have to be consumed, of which coal for power will be increased by 70% • Direct combustion results in serious emissions • 70%-80% regional emissions • Very difficult to combat CO2

IGCCS Solution Coal to chemical Fuel/Chemical Production Coal (biomass, waste） Fuel Chemical Cleanup conditioning gasification Material and energy exchange IGCC electricity CS Combined Cycles vs. PC (SOx,NOx,PM2.5,Hg, CO2)? • IGCC is ultra clean and efficient coal power, and the low cost path to combat CO2 • IGCC co-producing clean fuels, chemicals and materials to make efficiency, economics and emissions breakthrough limited by individual industry • IGCC improve the efficiency, availability and economics of chemicals production • Co-production improve the load-following, economics and efficiency of IGCC • Flexible feedstock and products

Chemicals Fuel CTL Air Combined cycle Electricity Gas Turbine HRSG Steam Turbine Nitrogen ASU IGCC Oxygen Coal Gasification Co-production Syngas Electricity FC Shift H2 Separation Clean up Zero emissions Heat recovery H2 Sulfur Recovery Sulfur CO2 The solution– IGCC/Co-production/CCS NG

Investment in power industry According to IEA projection, China will invest 3600 billion US dollars in energy infrastructure from 2006—2030, three fourths of which will invest in power sector, 2700 billion US dollars International cooperation between CAS and McKinsey Company Goal: to transform the global energy and environmental landscape through a joint China-U.S. collaboration of unprecedented scale and scope IGCC+CCS is the primary focus If IGCC installed capacity would reach 880 GW with CO2 capture rate 85% by 2050, CO2 would reduce 3.1 billion tons, incremental investment is 360 billion US dollars than conventional power plant 8

IEA Energy Technology Perspective 2008 • IGCC installed capacity would be up to 100 GW by 2030 and to 550 GW by 2050, if CO2 emissions return to 2005 levels by 2050 • CO2 emissions would reduce 0.66 billion tonnes per year by 2050 • From 2005 to 2030, RDD&D investment cost of China and India would reach 50~60 USD billion • From 2030 to 2050, commercial investment cost of China and India would reach 120~130 USD billion RDD&DInv. CostUSD bn 2005-2030 CommercialInv. CostUSD bn2030-2050

The Evolution of Co-production/IGCC in China Development IGCC and co-production Yankuang 60MW IGCC/co-production 863 key project– Co-Production 863 Knowledge Innovation Engineering The U.S. and PRC Expert Report 973 863 Yantai IGCC 200-400MW 95 Gongguan 6 ministry leading Suzhou IGCC Pilot 85 Gongguan 4 ministry level institutions leading 1980 1985 1990 1995 2000 2005 2010 Year 11

IGCC/Co-Production Breakthrough • 2×1150 TPD new style slurry fed, entrained bed • 60MWe syngas-fired CC • Total investment: 1580 million RMB • Put into commercial operation since May of 2006 12

The efficiency of coproduction plant reaches 57.16%, 3.14 percentage point higher than independent production system The capability of methanol production exceeds 25% of the same independent production The utilization of 750 thousand tons of high sulfur coal per year Operational status of Yankuang Demonstration Project 13 13

Availability, Reliability and Economics Availability=Online Time/Yearly time Reliability=Online Time/（Yearly Time-Planned Down Time） 14

IGCCS Roadmap in China • Overall goal • To form the clusters of advanced coal technologies, support the development of China’s energy equipment manufacturing industry, and achieve the efficient, clean, and affordable use of coal. • Stage goal • 2010— • RD&D of key technologies • Commercial demonstration of IGCC power plant • Demonstration of coal gasification based co-production of oil and power

IGCCS Roadmap in China • Stage goal • 2015— • At least 3 demonstration plants of coal gasification based co-production of oil and power (300MWe,1 million tons of fuels and chemicals) • The pilot plant of hydrogen and power Co-production with the near zero emissions of CO2 • 2020— • Installed capacity of IGCC to reach 20 GWe～100 GWe • Clean fuel (Synthetic oil, SNG, Methanol, DME) and chemicals substitute directly and indirectly 55 million tons of crude oil on annual basis • Demonstration of hydrogen and power Co-production with the near zero emissions of CO2

IGCCS Roadmap in China

1 Million t/a CTL and IGCC Co-Production Yankuang Group Project Coal Mine 160 Kt/a CTL and IGCC Co-Production Shanxi Lu’an Group Project Coal Mine 250MW IGCC Huaneng Group Project Bohai Rim 120MW(Retrofit) & 4X200MW IGCC Dongguan Electricity and Chemical Industry Ltd. Project Pearl River Delta 200MW IGCC Huadian Group Project Yangtze River Delta 18

Research Center for Energy and Power IGCCS Facilities System Facilities for R&D of IGCC, Co-production and CCS Technologies

Demonstration of Integrated Clean Energy, Iron & Steel, and Petrochemical Plant in Lianyungang The Standing Committee of State Council endorsed “The development plan for Jiangsu coastland” on June 10th, 2009. ‘Actively support the collaboration on energy and power between Jiangsu Province and CAS, and build clean energy innovation park.’ 21

Clean Energy Innovation Park Project Advanced IGCC 1200MW 650~700℃ USC 2x1300MW High temperature thermal solar power 10MW Co-generation (heat, power, cooling) Co-production (SNG 5.38×108 Nm3, liquids, hydrogen) CO2 capture for EOR and sequestration demo Inherent Cyclical Economy by integrating with oil refinery & chemicals, and iron & steel as well Located in Clean Energy Innovation Industrial Park in Lianyungang, Jiangsu Province 22

CO2 field CO2 treatment CO2 storage and transport Oil extraction CO2 injection

Policy Study Linking Climate Policy with Development Strategy in Brazil, China and India by the William and Flora Hewlett Foundation IGCC policy study by Energy Foundation The Path to Near-Zero Emissions Coal-Fired Power Generation Technology in China by Energy Foundation Promoting the Development of Concentrated Solar Power (CSP) Technology in China by Energy Foundation Advantages, Barriers and Strategies Study on Gasification-Based Co-Production by NRDC Roadmap for the Development of Coal Gasification-Based Co-Production Technologies in China by NRDC 25

Cooperation among NETL, PNNL and CAS • Establish joint RD&D to advance the clean fossil energy technologies • Technical areas: • High volume CO2 capture and sequestration • Advanced gasification and gas turbine • Advanced syngas conversion

2009'Joint Workshop on Promoting the Development and Deployment of IGCC/Co-production/CCS Convened by: Department of High and New Technology Development and Industrialization, MOST Bureau of High Technology Research and Development, CAS Organized by: the Energy Technology Innovation Policy research group, Harvard Kennedy School CEP, CAS the National Joint Expert Group for IGCC and Co-Production Demonstration Engineering of China Participants: Ministry of Science and Technology, CAS, Local governments, Academia, Manufacturers, Engineering companies, Power companies, Coal companies 27 27

The Context for Advanced Coal and CCS in the United States and China John P. Holdren Assistant to the President for Science and Technology and Director, Office of Science and Technology Policy Executive Office of the President of the United States Presentation for the Workshop on China-US Cooperation on Coal Harvard Kennedy School ▪ 16 April 2009

Key conclusions • The fast path to deployment of advanced coal technologies is only possible with the help of international cooperation. • Cooperation between the USA and China is the most important part of this. • The current state of this cooperation is that it is quite extensive “on paper” (MOUs), but not enough is happening “on the ground”. • The Harvard-MOST-CAS collaboration can make a big contribution by helping define the specific activities that now should be added.

Ideas for Sino-U.S. Cooperation on Advanced Coal and CCS Technology and Policy for Formalizing Joint Platform to Push Innovation Explore the idea of co-financing joint demonstration of commercial-scale IGCC and Co-Production in China Assess the adaptability of certain advanced technologies Joint R&D of IGCC and CCS among national laboratories of two countries Establish at least two large-scale joint carbon sequestration demonstration projects Arrange a study tour of selected U.S. carbon sequestration demonstration sites for Chinese researchers Carbon storage capacity assessments Develop mechanisms for sharing RD facilities Technology Policy research on effective policies for IGCC/Co-Production/CCS demonstration deployment Study the efficiency of current U.S.-China energy cooperation, and how to improve it Policy research on legal issues related to demonstration and early deployment of CCS in the United States compared with China Study on suitability of policy harmonization Joint Workshop on Sequestration RD&D Policy Gather, standardize, and share data on government investments in energy research, development, demonstration, and deployment Study of barriers to technology transfer for coal gasification, co-production, and CCS Policy Education Continue and expand CAS-MOST-Harvard annual workshops Student and faculty fellowships for exchanges 30

Thank you for your attention！ xiao_yh@mail.etp.ac.cn

The Development of IGCC, Co-production and CCS in China