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CO 2 CONTROL AND SEQUESTRATION: A RECENT EXERCISE WITH PUBLIC PERCEPTION. By Theresa Pugh Director, Environmental Services American Public Power Association Addressed To Utility Air Regulatory Group 2006 Control Technology Committee Meeting March 16-17, 2006 Denver, CO. WHAT IS APPA?.
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CO2 CONTROL AND SEQUESTRATION: A RECENT EXERCISE WITH PUBLIC PERCEPTION By Theresa Pugh Director, Environmental Services American Public Power Association Addressed To Utility Air Regulatory Group 2006 Control Technology Committee Meeting March 16-17, 2006 Denver, CO
WHAT IS APPA? • 2000 Municipal, State Utilities Which Are Community Owned • Payment In Lieu Of Taxes Returned To General City Revenue For Fire, Police, Library, Schools • Money Must Be Spent Wisely: Low Risk For Failure • Results Must Satisfy Mayors, City Council And Utility GMs Confidential: Attorney/Client Priviliged Information
APPA: PERSPECTIVE ON CO2 CONTROL • APPA Supports Voluntary CO2-Mitigating Steps • Signatory on the President’s Climate Vision Memorandum of Understanding to Reduce • GHG emissions intensity by 18% by 2018 • Power sector GHG by 3-5% below ’02-’03 baseline • APPA Tree PowerTM Program: • Provide shade, improve photosynthesis, reduce CO2 • Golden Tree Award: one tree per customer served Confidential: Attorney/Client Priviliged Information
APPA MEMBERS ACTIVE IN IGCC • Three New Plant IGCC Feasibility Studies in Progress • Key Concern: “Co-Production” of Power, Value-Added Products • Essential to economical power production? • Telecommunications public policy struggle is instructive • Scheduled Outages Harder For Public Power Communities (6 Weeks A Year?) Confidential: Attorney/Client Priviliged Information
PUBLIC NCEP COMMENTS CAUGHT APPA’s ATTENTION • November 9, 2005 Meeting of the National Commission On Energy Policy (NCEP) • What Was Said: “The Utility Sector Is Halfway There To Carbon Sequestration At An Existing IGCC Plant” • What Many Heard: “Practical CO2 Control Is Almost Commercially Available” • APPA Submitted Comments To Correct Any Misperceptions Confidential: Attorney/Client Priviliged Information
APPA RECOGNIZES IGCC OFFERS ENVIRONMENTAL ADVANTAGES • Control of Criteria Pollutants • SO2: to 99% • NOx: to < 0.05 lbs/MBtu • Particulate Matter: < 0.010 lbs/MBtu • Thermal Efficiency • Present Capability: 38-40% • Future potential: to >50% • Combustion Byproducts: 1/100th of Conventional by Volume Confidential: Attorney/Client Priviliged Information
IGCC vs. ADVANCED PC: COST1 • Basis: Cost of Generating Electricity (Amortized Capital and Production) • CO2 Control NOT REQUIRED: IGCC > Advanced PC by 15-20% • CO2 Control REQUIRED: IGCC > Advanced PC Decreases (5-10%) • Alternative: Consider Impact on Cost of CO2 Control • Advanced PC: CO2 Control - 70% premium • IGCC: CO2 Control - 25% premium 1. Source: “Coal-Fired Generation: At The Crossroads”, EPRI Journal, Summer, 2005 Confidential: Attorney/Client Priviliged Information
IGCC: GENERALIZATION • IGCC Must Be Applicable to All Coals • Current Demo Mix Limited To Narrow Range • EPRI: Matrix of Gasifier Designs Required • 3 types of entrained-flow • 2-3 transport-flow • 8 SOA Designs Needed (Coalfleet For Tomorrow) • APPA Members Have Experienced Limited Coal Choices in Recent Years • Transportation, costs, labor, force majeur, other • Will IGCC make this better or worse? Confidential: Attorney/Client Priviliged Information
IGCC: RELIABILITY • Most Reliable Demo – Wabash River – 79% • Do Public Power Towns Have To Build Two-Gasifier Designs, Or Two Separate Units? • Provisions of the National Energy Policy Act of 2005 Testify to Unproven Reliability: • $1.8 B Clean Coal Power Initiative: 70% to IGCC • APPA supports DOE funding & bonds • $800 M investment tax credits for IGCC but not eligible for APPA members since not tradable Confidential: Attorney/Client Priviliged Information
SEQUESTRATION: THE HARDEST STEP? • Greater Uncertainty Than CO2 Capture • Direct: Inject CO2 Where It Is Not (Or In Low Concentrations) • Oil/gas reservoirs • Unminable coal seams • Underground saline formations • Indirect: Improve Uptake, Absorption Into Earths Resources • Ocean • Terrestrial Confidential: Attorney/Client Priviliged Information
SEQUESTRATION: OIL/GAS RESERVOIRS • What We Know • Capped by non-porous, impermeable media • CO2 improves oil/gas recovery: value-added step but not likely to work at most public power plants • What We Don’t Know • Will higher pressure alter physical structure and prevent further influx, or prompt seepage? • Will a process to maximize (not minimize) CO2 consumption produce different results? • Will new pipelines need to be built as CO2 requirements differ compared to natural gas Confidential: Attorney/Client Priviliged Information
COAL BEDS, SALINE FORMATIONS • What We Know • Coal beds: CO2 can be used in lieu of water to displace CH4 • Saline formations: significant storage potential exists, many near generating sites • What We Don’t Know • Coal beds: high pressure CO2 injection may fracture coal, inhibit influx, or prompt seepage • Saline formations: unproven long-term storage-will CO2 migrate to surface? Confidential: Attorney/Client Priviliged Information
OCEAN SEQUESTRATION • DOE: 80-90% CO2 Contacting Ocean Is Absorbed – But Slow (CO2 peak ~100-200 yrs) • Can We Speed Up Nature? • What We Know • Oceans present significant CO2 absorbing capacity • Injecting micro/macro nutrients will accelerate • What We Don’t Know • CO2 plume consequences • Impact on ocean acidity (pH changes presently noted), consequences to biological activities, aquatic species Confidential: Attorney/Client Priviliged Information
TERRESTRIAL SEQUESTRATION • Enhance Natural Terrestrial CO2 Sinks: The Most Cost-Effective Approach? • Protect Existing Carbon Sinks • Forests, agriculture, biomass crops • Deserts, wetlands • Manipulate Ecosystems To Increase Carbon Removal • Higher density • Encourage biomass crops Confidential: Attorney/Client Priviliged Information
SUMMARY • APPA Supports Demo of IGCC: Broad Technology Array Required • Taxpayers Money: Always Requires Caution • Sequestration at Utility Sites is Highly Uncertain: Caution Should Be Exercised • Unknown consequences severe? • Long time constants: advise slow and steady • Learn From The Past • Leaking Underground Storage Tanks & Superfund • MTBE • SO3 plumes from SCR • APPA Supports IGCC Where Units Provide Collateral Benefits Confidential: Attorney/Client Priviliged Information