Clean Coal Day in Japan 2017. China’s Strategy in... · 2017. 9. 7. · Challenges –Greater...
Transcript of Clean Coal Day in Japan 2017. China’s Strategy in... · 2017. 9. 7. · Challenges –Greater...
China’s Strategy in Efficient Development and Use of Coal
And Shenhua’s Exploration and Practice
2017.09
Dr. Ling Wen
President & CEO of Shenhua Group
Member of the Chinese Academy of Engineering
Clean Coal Day in Japan 2017
Outline
I The role of coal in China’s energy mix
and the challenges
II Strategy of clean an efficient
exploration of coal in China
III Practice in the clean and efficient
exploration of coal by Shenhua
Coal Supporting Rapid Economic and Social Growth
China’s total energy consumption in 2016 was 4.36 billion tons of
standard coal, 23% of the world total, the largest consumer in the
world.
Since the Reform and opening-up, energy supported the rapid
growth of the economy. Consumption is estimated to grow steadily
over a long time.
Energy and economic growth since the
Reform and opening-up
Energy Consumption Projection (CAE)
Coal as the Main Source of Energy in China
Proven reserves of 1.3 trillion tons, accounts for 96% of fossil energy
In 2016, coal accounted for 76% of primary energy production and
62% in consumption
Coal will still account for 55% of primary energy by 2030
----Research on the Strategy of Clean, Efficient and Sustainable Exploration
and Use of Coal in China, by CAE
Production of Coal and its Share in Primary Energy
我国煤炭产量及占一次能源消费量比例
占一次能源消费量比例
煤炭产量(亿吨) 0%
50%
100%
19900
10
20
30
40
2000 2010 2016
10.80 12.99
32.35 34.10
76.2% 69.2% 68.0%
62.0%
Fossil Energy Reserves Proportion
Coal is the Basis of China’s Energy Supply
Generates 70% of China’s electricity
Provides 86% of energy for iron and steel,
and 79% for construction
Represents about 50% of feedstock
for chemical production
Contributes to over 15% of China’s GDP
Coal supports China’s fast growth.
Coal the Cheapest and Most Reliable Energy
For the same calorific value, price ratio of coal, gas and
oil is 1:4:8
Coal-fired generation is the cheapest and most reliable
source of power
coal natural
gasdiesel
Challenges – Slowing Demand and Excess Capacity
New normal of the economy: slowing growth and restructuring leads to
weak energy demand, which only grew by 1% in 2016
Excess capacity in coal and downstream industries (coal-fired
generation, iron and steel and construction materials)
1 billion of excess coal capacity, for which rigorous policies are being
implemented
Thermal generation hours dropped from 5294 in 2011 to 4165 in 2016
Challenges – Greater Environmental Constraints
Extensive coal production damaged ground water and surface ecosystem.
West China is the main coal producing area where the destruction of ground water and
surface ecosystem represents the main environmental constraint for coal mining.
Utilization of raw coal results in air pollution.
Share of thermal coal only accounts for 53%, lower than world average (65%). The
large amount of coal burned in small boilers and households is a key contributor to air
pollution.
Challenges – Climate Change
Greater Pressure on CO2 Emission Reduction
Chinese government proposed to peak its carbon emissions as early as possible by 2030.
Coal accounts for over 80% of carbon emissions in China’s energy consumption, and is thus faced with greater mitigation pressure.
President Xi Jinping and President Obama handed over China
and US’s instruments of joining the Paris Agreement to Ban
Ki-moon, Secretary-General of UN, on September 3rd, 2016.
Outline
I The role of coal in China’s energy mix and
the challenges
II Strategy of clean an efficient exploration
of coal in China
III Practice in the clean and efficient
exploration of coal by Shenhua
Content and Goal of Energy Revolution
President Xi proposed “Energy Revolution”, including “Four
Revolutions” and “One Cooperation”, during the 6th Meeting of the
Central Fiscal and Economic Leadership Group.
The goal is to build a modern energy system that is clean, low-carbon,
safe and efficient, to provide clean, green, cheap and convenient
energies and ensure energy security of the state.
4
Revolutions
Consumption1
Supply2
Technology3
Regime4
Strengthen International
Cooperation
One Cooperation
China's Transition to Green Energy
5 Concepts: Innovative, Coordinated, Green, Open, and Shared
Cut ineffective supplies & address overcapacity
More quality supplies & a larger proportion of clean energy
Expand effective supplies & facilitate the promotion of clean energy
Supply-Side Reform: Green transition is the key
Make conventional energy cleaner, and scale up clean energy
Institutional reform for a coordinated, coupled, open & shared energy system
Deleverage
Supply-side
reform
Capacity
reduction
Cost
reduction
Inventory
reduction
Shortcoming
compensation
13
Government Attention to the Clean and Efficient Use of Coal
China is a coal-rich country by nature.
We need to concentrate on coal, make
something good out of it and promote
the clean and efficient use of coal
We should improve existing capacity,
take the clean and efficient use of coal
as the foothold in and main task of
energy transition and development
-Xi Jinping, 6th Meeting of the Central Fiscal and Economic
Leadership Group, June 13 2014
-Li Keqiang, Meeting of the State Energy Commission, November 17 2016
14
Though the share will come down, but coal will still be the
cornerstone for China’s energy security
Clean and low-carbon use of coal is the important basis for a
modern energy system, and in the process active green transition of
coal is mandatory
In a Modern Energy System: the Role of Coal
Coal development
facing ecological
environment pressure
public requirement
China promotes clean&
efficient utilization of
coal
policy orientation
Coal industry facing
industrial upgrading
Technological Innovation
Green & clean utilization of coal
is the active choice & ultimate road for coal
industrial transformation & upgrading
Clean development of coal requires Four Major Transitions
Main Pathways
– Green development of coal
– Efficient and low emissions utilization
– Efficient and clean conversion
– Coal-based CCS energy
From resources driven to innovations driven
From fuel to fuel/feedstock
From extensive development to sustainable and smart development
From high emission utilization to “near-zero ”clean and efficient utilization
Clean Coal Transformation Roadmap
Clean and Efficient Coal Exploration
Green Production: protection and use of water resources, mitigation and restoration of surface ecosystem
Clean and Efficient Utilization: ultra-low emissions of major pollutants, high-efficiency coal-fired power generation, and coal-based green polygeneration
Clean Conversion: coal liquefaction, coal gasification, coal-to-olefins and other modern coal chemical industries
Coal-based Energy CCS: coal liquefaction + CCS, coal-fired power generation + CCS
Outline
I The role of coal in China’s energy mix and
the challenges
II Strategy of clean an efficient exploration
of coal in China
III Practice in the clean and efficient
exploration of coal by Shenhua
Shenhua Group was established in 1995
Operate in multiple industries including coal, power, railway,
port, shipping, and CTL with a total of 1000 billion yuan assets
In 2016, Shenhua Group, with revenue up to 247.9 billion yuan,
and the profits up to 36.1billion yuan, ranked 276th on Fortune
Global 500.
Coal
Power Railway
Port
CTL
Shipping
1986
1997
2003
2009
1999
Shenhua Group Profile
1985
Main Business–––Coal
Xinjiang
Ningxia
Zhungeer
Shendong
Baorixile
Baotou
Wuhai
BeidianshengliDayan
9 coal companies in 5 provinces, with a total capacity of 500 million
tons. Production in 2016 was 430 million tons. Safety and technical
indicators is taking the lead in the world
Guohua
Guoshen
Shenwan Energy
Fujian Energy
Sichuan Energy
2016 total installed capacity : 82.99 GW
Installed coal-fired capacity 75.18 GW: 5th largest in China
Main Business–––Power
Shenhua’s coal-fired plants distribution
2nd largest corridor for “Coal from west to east”
2155 km dedicated railway in 2016
Baoshen
Shenshuo
Shuohuang
Dazhun
Main Business–––Railway
Zhuhai Gaolan port: 40mn tons
Main Business–––Port
Huanghua port:200 mn tons
Tianjin coal terminal: 45mn tons
Three ports with 300 million tons throughput
40 vessels in 2016, 3rd largest seaborne volume capacity in China
Main Business––Shipping
The world’s first mega-tonnage DCL and 600kt/a MTO demo project
The world’s first single unit 4 million tonnage indirect coal liquefaction
Main Business–––Modern Coal to Chemicals
1.DCL 2.MTO
Million-ton capacity with independent IPR World’s first 600 kt/a MTO project
3. Indirect Coal Liquefaction 4.MTP
4 million/a indirect coal liquefaction 500kt/a methanol-to-propylene project
Installed capacity of 7.81 GW of renewables in 2016 (wind, solar,
hydro)
Strategic cooperation with Shanghai Electricity and MANZ to invest
in CIGS research and industrialization, and actively promote the
application of integrated CIGS solar buildings
Main Business–––New Energies
Shenhua’s wind farms distribution
‘
Shenhua CIGS distribution
Staged Coalmine Water Underground Treatment
Technology
Multi-layer Distributed Underground Reservoir Cluster of
Shenhua's Daliuta Coalmine
Green Production – Ground Water Conservation
Pre-entry
depositionMine water
Incoming mine water
Internal
purificationOutgoing clear water
Treatment of heavily
contaminated mine
water
Water treatment
plant
Power plant
Surface
production Work and living Landscaping
No.1
underground
reservoir
No.2
underground
reservoir
No.3
underground
reservoir
No.4 underground
reservoir (under
construction)
Coal mine underground reservoir stores water and supplies the
whole mining area with mine water
35 underground reservoirs built in Shendong, supplying over 60
million m3 of water annually to mines, neighbouring power plants
and coal chemical facilities, turning mines from big water
consumers to water supply bases .
Ecological restoration technology for
subsidence area
Guided Restoration Modes for Different Areas
Superlarge-working face Coal Mining Technology Based on
Surface Ecology Damage Reduction
(Shenhua's Shendong Mining Area)
Subsidence
boundary
S t a b l e
subsidence areaR e p e a t e d l y
disturbed area
Conventional Working
Face's Subsidence
Stable subsidence area Stable subsidence area
S t a b l e
subsidence area
Sta
ble
su
bsid
en
ce
are
a
Superlarge Working Face's
Subsidence
Subsid
ence a
rea
boundary
Non-uniform subsidence area – artificially guided restoration
Uniform subsidence area
-Natural closure
restoration Dynamic
fractures
Work
ing face b
oundary
Surface Ecology Self-restoration
Promotion
Before mining
After mining
Shendong Mining Area's vegetation coverage was
3~11%.
Shendong Mining Area's vegetation coverage was up
to 70%.
Stable subsidence area
Green Production – Mitigation and Restoration of
Surface Ecosystem
Better-than-before ecological environment
thanks to innovation
Coal Mining Process Based on Active Surface Ecosystem Mitigation
Surface Ecosystem Restoration and Microorganism Growth Promotion Technologies
Green Exploration of Coal——Key National Lab
Key National Lab in coal exploration and protection of water
resources
Established in October 2015 on the approval of the Science Ministry,
being the only key lab that engages in the green exploration of coal
Three focuses: water protection in coal mining, treatment and use of
mine water and the restoration of surface ecology
Water Protection Treatment and Use Surface Restoration
Smart Coal Mining——Intelligent Mines
Created an unmanned intelligent coal mining interface and
integrated intelligent mine control technology
An intelligent demonstration mine in Shenhua Jinjie coal area, first
in the world, has 57,000 real-time control points, enables intelligent
control of 2,000 equipments
Intelligent System of
Integrated EquipmentJinjie Intelligent Demo Coal Mine
Pollutants
(mg/Nm3)Dust SO2 NOx
Standard for Coal
(General ) 30 100 100
Standard for Coal
(Key Areas of China) 20 50 100
Standard for Coal
(US) 20 184 135
Standard for Gas
(China) 5 35 50
Emission Standards for Coal and Gas-fired Power Generation in
China and US (newly built)
Coal-fired power generation with ultra-low emissions: pollutants emission
equivalent to or lower than that of gas-fired generation.
Clean and Efficient Utilization- Ultra-Low Emissions
In 2014, China's first ultra-low emission coal unit wascommissioned in Shenhua's Zhoushan Power Plant
Shenhua's ultra-low emission upgrading cost is just ¥ 0.01/kWh.
Its on-grid tariff is ¥ 0.3-0.4 per kWh, much lower than the tariffof ¥ 0.7-0.8 per kWh for gas-fired power plants.
Dust SO2 NOx
(mg/Nm3) (mg/Nm3) (mg/Nm3)
Zhoushan Unit No.4 2.46 2.76 19.8
Emission Standard for Gas 5 35 50
Emission Standard for Coal
(Key Area) 20 50 100
Pollutant Emissions of No.4 Unit of Shenhua's Zhoushan Power Plant
Clean and Efficient Utilization- Ultra-Low Emissions
Clean and Efficient Use of Coal-Ultra-Low Emission
94 ultra-low generator sets by August 2017, altogether 51.25 GW,
70% of total installed capacity of Shenhua
The Standing Committee of the State Council requires ultra low
emission for all generators by 2020, when the emission of main
pollutants will decrease by 90% in 2013
Clean and Efficient Utilization —Efficient Coal-fired Generation
High-parameter 2×1000MW ultra-supercritical units, it is the first time that China adopts units with
parameters of 28MPa/600/620℃
High efficiency: coal consumption 273g/kWh; power supply efficiency higher than 46%.
Low emission: ultra-low emission, which is 14% lower than China's CO2 emission average.
Low cost: static unit investment is only ¥3000/kW.
Shenhua's Anqing Power Plant - World's leading high-
efficiency and low-emission (HELE) power plant
Shenhua's Anqing Power Plant Coal Generator at Anqing
Clean and Efficient Utilization – CFB Technology
600MW Supercritical CFB (Baima),CFB Unit of
Largest Scale and Highest Parameter in the World350MW Supercritical CFB (Hequ)
CFB is an important technology to realize efficient utilization of low CV coal. Shenhua
now operates the world’s largest CFB unit (8.92 GW).
Shenhua owns 600 MW supercritical CFB technology and runs the world’s only
demonstration project.
Shenhua is working on the 660 MW USC CFB technology, with an estimated gross
efficiency of 42%.
High-Efficiency CFB Technology
Clean and Efficient Utilization – Coal-Based Green Polygeneration
Given China’s conditions, using electricity generated by coal rather than burning coal as
an end-use energy source can increase efficiency and reduce emissions through large-
scale centralized utilization and pollutants treatment .
To build CCHP units in areas such as cities with central heating and industrial parks,
realizing high efficiency coal use via cascade energy use.
To introduce distributed energy and a complementary energy mix; build integrated utility
pipelines to ensure end-to-end supply; full replacement by clean energy on the
consumption side.
Clean and Efficient Utilization – Fuping Model
2×350 MW supercritical unit realized ultra-low-emission polygeneration, with 76% energy efficiency.
Use renewable energies to supplement the coal-fired power; establish regional smart energy system to balance off large power grid.
Provide EV and smart chargers to consumers, replace oil and natural gas with electricity, replace small boilers with cogeneration systems.
Bird view of Fuping project
Clean Conversion – Modern Coal Chemical Industry
Coal
Direct CTL
Natural Gas
DME
Ethylene
Glycol
Methanol
Indirect CTL
Aromatics
Gasification Olefins
Final
Consumption
or Chemical
Uses
Oil & Chemicals
Oil & Chemicals
Modern Clean Conversion and Processing of Coal
Technical Process of Modern Coal to Chemicals
(Shenhua involved in green area)
Clean Conversion – Direct Coal Liquefaction Project
Completed the world's first 1Mt/a DCL demo project with own IP
rights
Energy conversion efficiency increases continuously.
Oil products 5mn tons, conversion efficiency 58.0%.
Waste water treatment and water saving technologies improved
greatly. Water consumption per ton of oil dropped from 10t to 5.8t
with zero waste water discharge.
Replace groundwater with mine water as the source
Clean Coal Conversion -Indirect CTL
The largest single unit of 4mn tons indirect CTL, with total
investment of 55 billion yuan
Industrial scale-up by 25 times; integrated 71 units of the process
and 13000 equipments. First domestic production of 2,000
tons/day pulverized coal gasifier and 100,000 Nm3/h air
separation unit
Line A commissioned successfully in the end of 2016, produced
on-spec oil and has reached production targets. Line B has started
commissioning.
July 2016, Visit by President Xi
Clean Conversion of Coal—MTO
The first 600,000-ton MTO demonstration project in the world. x 110
scale-up of core process, integrating 46 units and 4108 equipment
Success in the trial running, turning into commercial operation after 6
months, with annual profits over 1 billion yuan
680,000-ton MTO project using Shenhua’s proprietary process was built
in Xinjiang and commissioned successfully
CCS - China’s Roadmap
China’s CCUS Roadmap Jointly Released by NDRC and ADB
(2015.11 Paris)
China’s CCUS is still in demonstration stage, striving to reduce emissions
by 10 mn tons (EOR mainly) by 2020 with commercialization by 2040.
CCS – Coal Liquefaction
Shenhua’s CCS Technologies
CO2 emission’s concentration is above 80%, capture cost 1/3-1/4 of
that of power plants.
Shenhua implemented a 100,000t/a CCS demo project, mastered
core technology of storing CO2 in saline acquifer. 302,600 tons CO2
store so far.
The whole-process CCS cost for Mt scale project is about ¥ 150/ton.
Shenhua's Direct Liquefaction CCS Demo ProjectDCTL ICTL SNG MTO
CO2 Emissions of Main Coal Chemical Processe
CCS – Coal-Fired Power Generation
Post-combustion: New generation of CCS process development with MOST
subsidies
Oxy-Combustion: Joint 2MW platform trial with HUST
Whole-process Project: Shenhua started a 150,000 t/a whole-process demo project
combining post combustion & geological storage, to be commissioned in 2018
Plans in the future: cooperation with oil companies; pilot project of 1 m
tons/year post-combustion CCS + EOR at Jinjie Plant
Shenhua Jinjie Power Plant150,000ton/a whole process CCS technology
Development Trend - Hydrogen
Coal-to-
Hydrogen
Hydrogen Fuel CellsHydrogen EV
Material Coal Natural Gas Heavy Oil Curtailment
Cost (RMB/m3) 0.6~0.7 1.21 1.66 0.9~1.2
Hydrogen Production Cost
Hydrogen is the cleanest energy, Coal-to-hydrogen and CCS together can realize near-zero CO2 emission
To produce hydrogen with curtailed wind and solar power can provide cheap
and zero-carbon-emission hydrogen, greatly reducing CO2 emission from coal
chemical production.
+
Focus in the future—Extracting Aluminum and Gallium from Coal Ash
4 bn tons of aluminum resources in Junger coal field, 7 times of the basic resources of
aluminum oxide in China; 0.86 mn tons of gallium, 80% of total proven gallium resources
in the world
4,000 tons/year pilot scale factory is built, successfully recovering aluminum oxide,
purity>99.35%, gallium purity ≥ 99.99%
500,000 tons of aluminum extracting from fly ash and 1 mn tons of high-purity gallium
demonstration projects are being planned
Development Trend -IGFC
IGFC Distributed Power Generation Technologies
SOFC Power Generation System: using MOST’s fund, Shenhua will demonstrate
China’s 1st 100KW IG-SOFC power generation system, with 50% efficiency.
Generation with efficient and low-cost CCS of CO2
Future-Coal-Based Smart Polygeneration
Solar + Wind + Nuclear
Biomass
Coal
Garbage
Power OutputHydrogen Power
New-Type Coal-Based
Polygeneration + Internet
of Things
Fuel
ChemicalsShale Gas
Smart energy system integrating coal-based energy and non-fossil fuels to
maximize efficiency, minimize emissions and cost.
2030 Key Projects—Clean and Efficient Use of Coal
To become a leading state of innovation by 2030, China implements 2030
projects focusing on the key needs
Clean and efficient use of coal is one of the first 16 2030 projects, with
research, development and demonstration in green exploration of coal,
clean generation, clean conversion of coal and CCS of coal-based energy
Shenhua as leader of the project will continue to lead innovation and
contribute to green and sustainable development of coal
Thank You