Dr. Darren Mollot

September 2013

Clean Coal – CCS RD&D Overview

Acting Deputy Assistant Secretary

Office of Clean Coal

2

Office of Fossil EnergyOffice of Clean Coal Vision & Mission

A SECURE, RELIABLE AND

AFFORDABLE ENERGY FUTURE WITH

THE ENVIRONMENTALLY SOUND USE

OF COAL AND FOSSIL FUELSVIS

ION

SUPPORT THE

RESEARCH, DEVELOPMENT & DEMONSTRATION OF ADVANCED

TECHNOLOGIES TO ENSURE THE

AVAILABILITY OF CLEAN, AFFORDABLE

ENERGY FROM COAL AND FOSSIL

RESOURCES

MIS

SIO

N

3

Office of Fossil EnergyOffice of Clean Coal - Goals

GOALS

GOAL 1: DEMONSTRATE NEAR-ZERO EMISSION FOSSIL-BASED TECHNOLOGIES

GOAL 2: ACCEPTANCE BY INDUSTRY, FINANCIAL INSTITUTIONS, REGULATORS AND THE PUBLIC THAT

CO2 CAN BE SAFELY INJECTED, MONITORED AND PERMANENTLY STORED IN A VARIETY OF

GEOLOGIC FORMATIONS

GOAL 3: CONDUCT HIGH-RISK, RESEARCH AND DEVELOPMENT ON ADVANCED COAL AND FOSSIL

TECHNOLOGIES INCLUDING CO2 CAPTURE AND NOVEL HIGH EFFICIENCY CYCLES

GOAL 4: DRIVE INTERNATIONAL COLLABORATION TO ENSURE WIDE-SPREAD ACCEPTANCE AND

DEPLOYMENT OF CCS TECHNOLOGIES

GOAL 5: SUPPORT POLICY, LEGISLATION, AND REGULATION IMPACTING FOSSIL ENERGY BY PROVIDE

DATA AND EXPERTISE

4

What Role Will Fossil Play

5

World Coal ProductionChina – U.S.A – India – Australia - Indonesia

0

1

2

3

4

5

6

7

8

9

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Bill

ion

Sh

ort

To

ns

World Coal Production

China U.S.A India Australia Indonesia World

Data from U.S. Energy Information Administration

6

0

2000

4000

6000

8000

10000

12000

2010 2020 2025 2030 2035 2040

Mill

ion

Sh

ort

To

ns

World Coal Consumption

India United States China World total

Data from U.S. Energy Information Administration

World Coal ConsumptionChina – India – United States

7

U.S. Electricity GenerationHistorical Perspective

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Bill

ion

kW

h

U.S. Electricity Generation

Coal Petroleum Natural Gas Nuclear Renwables Total

Data from U.S. Energy Information Administration

8

U.S. Electricity GenerationFuture Projections

0

1000

2000

3000

4000

5000

6000

20

10

20

15

20

20

20

25

20

30

20

35

20

40

Bill

ion

kW

h

Electricity Generation

Coal Natural Gas Total U.S. Generation Petroleum Nuclear Renewables

Data from U.S. Energy Information Administration - 2013

9

Meeting global climate mitigation targets will likely require CCS IEA’s Energy Technology Perspectives:

Gig

ato

ns

of

CO

2

Source: International Energy Agency

10

Opportunities for Large Scale Projects

11

Advanced Combustion

CO2 StorageAdvanced CO2 Capture and Compression

Solvents Sorbents Membranes Hybrid Process Intensification Cryogenic Capture

Pressurized O2 membrane Chemical looping USC Materials

Carbon Utilization (EOR) Infrastructure (RCSPs) Geological Storage Monitoring, Verification

and Accounting

Gasification Turbines Supercritical CO2

Direct Power Extraction

Integrated Fossil Energy Solutions

Efficiencies > 45%

i Capital Cost by 50%

$40 - $10/tonne CO2 Captured

Near-zero GHGs

Near-zero criteria pollutants

Near-zero water usage

Advanced Energy Systems

5 MWE Oxycombustion Pilot Advanced Turbines

12

0%

5%

10%

15%

20%

25%

30%

35%

40%P

ow

er

Ge

ne

rati

on

Pe

nal

ty [

% o

f P

lan

t O

utp

ut]

Capture Technology ProgressPerformance Drives Cost

Then(1997)

Now(2013)

Future (2020)

~ $150/Tonne

~ $60/Tonne

< $40/Tonne

Energy Penalty Reductions Enable Cost Reductions

13

Creating a Bridge to Affordable CCS Technology

14

MAJOR DEMONSTRATIONS

15

Major CCS Demonstration ProjectsProject Locations & Cost Share

CCPI

ICCS Area 1

FutureGen 2.0

Southern CompanyKemper County IGCC Project

Transport Gasifier w/ Carbon Capture~$2.01B – Total, $270M – -DOEEOR – ~3.0 MM TPY 2014 start

NRGW.A. Parish Generating Station

Post Combustion CO2 Capture$775 M – Total$167M – DOE

EOR – ~1.4 MM TPY 2016 start

Summit TX Clean EnergyCommercial Demo of Advanced

IGCC w/ Full Carbon Capture~$1.7B – Total, $450M – DOEEOR – ~2.2 MMTPY 2017 start

HECACommercial Demo of Advanced

IGCC w/ Full Carbon Capture~$4B – Total, $408M – DOE

EOR – ~2.6 MM TPY 2019 start

Leucadia EnergyCO2 Capture from Methanol Plant

EOR in Eastern TX Oilfields$436M - Total, $261M – DOE

EOR – ~4.5 MM TPY 2017 start

Air Products and Chemicals, Inc.CO2 Capture from Steam Methane Reformers

EOR in Eastern TX Oilfields$431M – Total, $284M – DOE

EOR – ~0.93 MM TPY 2012 start

FutureGen 2.0Large-scale Testing of Oxy-Combustion w/ CO2 Capture

and Sequestration in Saline FormationProject: ~$1.77B – Total; ~$1.05B – DOE

SALINE – 1 MM TPY 2017 start

Archer Daniels MidlandCO2 Capture from Ethanol PlantCO2 Stored in Saline Reservoir$208M – Total, $141M – DOE

SALINE – ~0.9 MM TPY 2014 start

16

• 8 active projects

• 1 in operation, 2 under construction, 5 in engineering/finance

• 5 electricity generation, 3 industrial

• 3 IGCC, 4 post-processing, 1 oxycombustion

• Feedstock: 4 coal, 1 petroleum coke, 1 coal/coke, 1 natural gas, 1 ethanol

• 2 polygeneration

• Storage: 6 EOR, 2 saline formations

Major CCS Demonstration Projects

17

• 8 active projects

• 1 in operation, 2 under construction, 5 in engineering/finance

• 5 electricity generation, 3 industrial

• 3 IGCC, 4 post-processing, 1 oxycombustion

• Feedstock: 4 coal, 1 petroleum coke, 1 coal/coke, 1 natural gas, 1 ethanol

• 2 polygeneration

• Storage: 6 EOR, 2 saline formations

Major CCS Demonstration Projects

18

Projects

CCPI

ICCS Area 1

FutureGen 2.0

Major CCS Demonstration ProjectsProject Locations & Cost Share

Southern CompanyKemper County IGCC Project

IGCC-Transport Gasifier w/Carbon Capture

~$2.0B – Total CCPI project$270M – DOE

EOR – ~3M MTPY 2014 start

NRGW.A. Parish Generating Station

Post Combustion CO2 Capture$775 M (est.) – Total

$167M – DOEEOR – ~1.4M MTPY 2016 start

Summit TX Clean EnergyCommercial Demo of Advanced

IGCC w/ Full Carbon Capture~$1.7B – Total$450M – DOE

EOR – ~2.2M MTPY 2017 start

HECACommercial Demo of Advanced

IGCC w/ Full Carbon Capture~$4B – Total, $408M – DOE

EOR – ~2.6M MTPY 2019 start

Leucadia EnergyCO2 Capture from Methanol/H2 Plant

EOR in TX & LA Oilfields $436M - Total, $261M – DOEEOR – ~4.5M MTPY 2017 start

Air Products and Chemicals, Inc.CO2 Capture from Steam Methane Reformers

EOR in Eastern TX Oilfields$431M – Total, $284M – DOE

EOR – ~0.93M MTPY 2012 start

FutureGen 2.0Large-scale Testing of Oxy-Combustion w/ CO2 Capture

and Sequestration in Saline FormationProject: ~$1.77B – Total; ~$1.05B – DOE

SALINE – 1M MTPY 2017 start

Archer Daniels MidlandCO2 Capture from Ethanol PlantCO2 Stored in Saline Reservoir$208M – Total, $141M – DOE

SALINE – ~0.9M MTPY 2014 start

19

Southern Company Services, Inc. CCPI-2Advanced IGCC with CO2 Capture

Status

Plant construction >60% complete; >5,400 construction personnel on site

CO2 off-take agreements signed

Lignite mine under development

Subsystems (water treatment, cooling towers) to begin pre-commissioning

Combustion turbine startup: Sep 2013

Gasifier heat-up: Dec 2013

Key Dates

Project Awarded: Jan 30, 2006

Project moved to MS: Dec 5, 2008

NEPA Record of Decision: Aug 19, 2010

Initiate excavation work: Sep 27, 2010

Operations: May 2014

• Kemper County, MS

• 582 MWe (net) with duct firing; 2 TRIGTM

gasifiers, 2 Siemens combustion turbines, 1 Toshiba steam turbine

• Fuel: Mississippi lignite

• 67+% CO2 capture (Selexol® process); 3,000,000 tons CO2/year

• EOR: Denbury Onshore LLC, Treetop Midstream Services LLC

20

Lessons Learned

21

BIG SKY

WESTCARB

SWP

PCOR

MGSC

SECARB

MRCSP

Regional Carbon Sequestration PartnershipsDeveloping the Infrastructure for Wide Scale Deployment

Seven Regional Partnerships400+ distinct organizations, 43 states, 4 Canadian Provinces

• Engage regional, state, and local governments

• Determine regional sequestration benefits

• Baseline region for sources and sinks

• Establish monitoring and verification protocols

• Address regulatory, environmental, and outreach issues

• Validate sequestration technology and infrastructure

Development Phase (2008-2018+)

9 large scale injections (over 1 million tons each)

Commercial scale understanding

Regulatory, liability, ownership issues

Validation Phase (2005-2011)

20 injection tests in saline formations, depleted oil, unmineable coal seams, and basalt

Characterization Phase (2003-2005)

Search of potential storage locations and CO2 sources

Found potential for 100’s of years of storage

22

Large-Scale CO2 Storage Tests

• 8 large scale tests ongoing/planned for 6 of 7 Regional Partnerships

• Tests based on strong core R&D program and 20 smaller field tests.

• Injection schedule: 3 currently injecting, 3 starting 2013, 2 during 2014-2015

• Storage: 5 EOR, 3 saline formations

• 7 of the 8 will inject between 1 – 2.9 million tonnes CO2

• CO2 sources: NG processing plants, coal power plants, ethanol production plant, natural CO2 source

• All tests have extensive MVA

• Results will inform Best Practice Manuals

23

8

7

3

1

2

4

6

5

9

RCSP Geologic ProvinceInjection Volume

(metric tons)

BIG SKYKevin Dome-

Duperow FormationTBD

MGSCIllinois Basin-

Mt. Simon Sandstone>380,000

MRCSPMichigan Basin-

Niagaran ReefMarch 2013

PCOR

Powder River Basin-

Muddy SandstoneApril 2013

Horn River Basin-

CarbonatesTBD

SECARB

Gulf Coast -

Tuscaloosa Formation>3,000,000

Gulf Coast –

Paluxy Formation>30,000

SWPAnadarko Basin-

Morrow SandstoneSept 2013

WESTCARB Regional Characterization

Injection Ongoing

2013 Injection Scheduled

Injection Scheduled 2014-2015

1

2

3

4

7

8

6

9

5

Three projects currently injecting CO2

Three Additional Scheduled for 2013

Remaining injections scheduled 2014-2015

Injection Began Nov 2011

Injection Began April 2009

Core Sampling Taken

Note: Some locations presented on map may

differ from final injection location

Injection Began August 2012

RCSP Phase III: Development PhaseLarge-Scale Geologic Tests

Injection began February 2013

Injection began June 2013Seismic Survey Completed

24

Best Practices ManualVersion 1(Phase II)

Version 2(Phase III)

Final

Guidelines(Post

Injection)

Monitoring, Verification

and Accounting2009/2012 2016 2020

Public Outreach and

Education2009 2016 2020

Site Characterization 2010 2016 2020

Geologic Storage

Formation Classification2010 2016 2020

**Simulation and Risk

Assessment2010 2016 2020

**Carbon Storage Systems

and Well Management

Activities

2011 2016 2020

Terrestrial 20102016 – Post MVA Phase

III

CCS Best Practices Manuals Critical Requirement For Significant Wide Scale Deployment -

Capturing Lessons Learned