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Clean Coal Technologies in Japanand International Collaborations

February 2008

Akito TaniDirector, Coal Division

Agency for Natural Resources and EnergyMinistry of Economy, Trade and Industry

Government of Japan

FutureGen Workshop 2008

1

Contents

1. Coal in Energy Best Mix of Japan

2. Increasing Demand for Coal

3. Cool Earth 50

4. Clean Coal Technologies in Japan

5. International Collaborations

2

■Since the two oil crises in the 1970s, Japan has pursued alternative energy resources. Japan has overcome the increase of energy consumption by the use of imported coal, LNG and nuclear power.

＜Trend of Japan’s primary energy supply＞

Trend of Energy Mix of Japan

54.8%56.3%73.4% 49.0%

20.3%16.5%

19.4%16.4%

2.5%

9.4%

10.9% 13.8%1.5% 8.9% 11.9%

11.2%

5.6%

6.0%5.8%

6.2%

0

5

10

15

20

25

1970 1975 1980 1985 1990 1995 2000 2005（FY）

（1018J）

Others

Nuclear

LNG

Coal

Oil

3

Compiled by the Institute of Energy Economic, Japan

Note: As the Energy Production, Supply and Demand Statistics were abolished in December 2001, figures for FY 2000 and earlier andthose for FY 2001 and thereafter were taken from different sources. Figures for FY 2000 and earlier are based on sales volumes and those for

FY2001 and thereafter are based on delivery volumes.Source：FY 2000 and earlier—Compiled from annual reports on Energy Production, Supply and Demand Statistics

FY 2001 and thereafter—Compiled from Monthly Reports of the Current Survey of Energy Consumption with regard to demand for steel production and “others” and from Monthly Reports on Electric Power Statistics with regard to demand for power

generation

98 97106 103

119 116118126

137 140

161 166178 176

93111

113130131 130

152 154

114 115

95107

37%

41%

42%

43%

44%

43%

46%

47%

47%

48%

49%

50%

51%

53%

54%

57%

57%

58%

59%

59%

60%

62%

63%

64%

66%

71%

48%

45%

44%

42%

41%

39%

37%

35%

34%

32%

32%

30%

29%

27%

25%

23%

22%

21%

21%

22%21

%

19%

18%

16%

13%

11%

15%

14%

14%

15%

15%

18%

17%

18%19

%20

%20

%

20%

20%

20%

21%

21%

21%

21%

19%

19%19

%

19%

19%

21%21%

18%

0

20

40

60

80

100

120

140

160

180

200

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

Fiscal Year

（Million tons)

Others

Power Generation

SteelProduction

IndustryIndustry--byby--Industry Changes in Coal DemandIndustry Changes in Coal Demand

4Compiled by the Institute of Energy Economic, Japan

Trend of Ratio of Japan’s Power Resources

Coal-fired power generations (23%) are one of Japan’s major power resources, following nuclear power generations (34%) and LNG power generations (24%).

7191,172 1,237 1,345 1,348 1,529 1,732 1,894 2,093 2,244 2,397 2,529 2,241

1,639

1,918 2,037 2,146 2,2212,405

2,479 2,4752,517

2,611 2,491 2,3392,3341,951

1,510 1,391 1,126 971985

868 594812

890 798 933750

2,014

2,911 3,021 3,191 3,3223,165

3,219 3,1982,949 2,400 2,824

3,0483,3391,053

1,046 1,044 1,142 1,1561,092

1,098 1,0791,076 1,210

1,195996 1,102

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1990

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

（推定

）

100M

Kwh

Hydroelectric etc

Nuclear

Oil

LNG

Coal

5

JapanJapan’’s Coal Imports by Supplier Country and Coal Types Coal Imports by Supplier Country and Coal Type

●Within Japan’s overall primary energy supply, coal (20%) represents the second most significant energy source, following oil (49%).

●Imports of steam coal are increasing by 7.7% annually on average.●Since the 1990s, imports of fuel coal from China and Indonesia have increased significantly.●Imports of coking coal have remained almost flat, and dependence on Australia has increased by nearly

10% from the 1980s.●While imports of coking coal from the U.S. and Canada have decreased, those from Australia and China

have increased.

Steam Coal Coking Coal

Source: “Trade Statistics” Ministry of Finance, JAPAN.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

75 80 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Other

Indonesia

Russia

SouthAfrica

China

Canada

Australia

USA

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

75 80 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

USA Australia

Canada China

SouthAfrica RussiaIndonesia Other

6

World Hard Coal Trade

Japan is the largest importing country of coal, with imports amounting to more than 178 Mt of coal, equal to 22% of world’s hard coal trade.

Japan is the largest importing country of coal, with imports amounting to more than 178 Mt of coal, equal to 22% of world’s hard coal trade.

Source： IEA, “Coal Information 2007”

その他欧州Other Europe

44.0Mt

南米Latin America

19.3Mt

北米N. America

51.6Mt

OECD欧州OECD Europe

246.7Mt

32.0Mt

9.3Mt

9.0Mt

6.5Mt

8.8Mt

23.5Mt

5.3Mt

24.1Mt

16.7Mt

10.5Mt

7.2Mt

12.3Mt

9.3Mt104.2Mt 78.2Mt

105.7Mtアフリカ・中東

Africa & Mid. East18.0Mt

28.3Mt19.6Mt

16.6Mt

54.8Mt

3.1Mt

4.4Mt

米国United States

44.9Mt

OECD欧州OECD Europe

246.7Mt日本Japan

177.9Mt

中国China63.3.Mt 19.0Mt

37.4Mt

インドネシアIndonesia129.3Mt

その他アジアOther Asia240.3Mt

カナダCanada27.4Mt

ポーランドPoland16.6Mt

ロシアRussia92.1Mt

カザフスタンKazakhstan

25.7Mt

25.7Mt

豪州Australia231.3Mt

6.6Mt

57.9Mt

3.5Mt 3.5MtコロンビアColombia59.7Mt

3.1Mt

南アフリカSouth Africa

68.8Mt

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●Consumption of coal is expected to increase from 2.39 billion tons in 2003 to 3.65 billion tons in 2010 (1.5 times or 6.2% annually), and to 4.61 billion tons in 2020 (1.9 times or 3.9% annually). 65% and 22% of the increase will be observed in China and India, respectively.

●China, which had been a supplier country, has become a coal-importing country. The supply-demand relationship has become tighter due to a significant increase in coal consumption in Asia.

Demand for Coal in Asia (by Country)

0

1,000

2,000

3,000

4,000

5,000

1980 1990 2000 2010 2020

(Million tons)

Others

Indonesia

Chinese Taipei

South Korea

Japan

India

China

Actual consumption Estimate

2.22 billion tons

Increase between 2003 and 2020

0.14.8

0.2

14.4

0.5 1.0 1.3

China India Japan KoreaChinese Taipei Indonesia Others

（100 million tons)

65%

19%

4%

70%

4%

16%

65%

17%5%

66%

15%

68%

13%

8HP of Prime Minister of Japan and His Cabinet

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Innovative Technologies for Significant Reductions of CO2 EmissionsInnovative Technologies for Significant Reductions of CO2 EmissiInnovative Technologies for Significant Reductions of CO2 Emissionsons

1. Innovative Zero-emissions Coal-fired Power Generation

2. Advanced Reactors for Nuclear Power Generation

3. Innovative Technology for High-efficiency and Low-cost Solar Power Generation

4. Innovative Technology for the Use of Hydrogen

5. Ultra High Energy Efficiency Technology

The combination of the efficiency improvements of coal gasification power generation and CO2 capture and storage (CCS) technology to realize zero-emissions coal-fired power generation, which currently accounts for around 30% of the global emissions

The development and commercialization of next generation light water reactors, small and medium reactors, high temperature gas-cooled reactors, and fast breeder reactors (FBR) to significantly increase zero-emissions nuclear power generation

A significant improvement in the efficiency of solar power generation to reduce its cost to the level of thermal power generation, together with the capacity increase and cost reduction of rechargeable batteries

The cost reduction and efficiency improvements of fuel cells for the wide use of fuel cell vehicles to realize zero emissions in the automobile sector, which currently accounts for nearly 20% of the global emissions

Ultra high energy efficiency technologies for production processes and equipment to realize significant energy saving and emission reductions, e.g. iron and steel making technology to partially substitute hydrogen for coke as a reducer

HP of Prime Minister of Japan and His Cabinet

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Japanese Clean Coal Technologies

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Reducing environmental

load (Reduction of CO2, etc.)

Disposition of coal ash

Potentiality of new utilization methods of coal

Resource constraints

Technology for enhancing efficiency

Enhancement of quality and

technology for effective utilization of low quality coal

Technology for converting to raw

fuels

Effective utilization of ashless coal and

coal ash

◇Ashless coal technology (Hyper-coal)

◇Technology for upgrading low quality coal (UBC)

◇Integrated coal gasification fuel cell combined cycle (IGFC)

◇Next-generation highly-efficient coal gasification technology

◇Technology for direct coal liquefaction◇Coal flash partial hydropyrolysis technology

(ECOPRO) ◇Hydrogen producing technology for using coal and

recovering CO2◇Technology for convering catalyst-free coal

carbonization gas

Efforts for Environmentally-Conscious Coal Utilization Technology (Clean Coal Technology)

Efforts for EnvironmentallyEfforts for Environmentally--Conscious Coal Utilization Technology Conscious Coal Utilization Technology (Clean Coal Technology)(Clean Coal Technology)

● In order to deal with the future expansion of global demand for coal, it is necessary to promote development and dissemination of environmentally-conscious coal utilization technology (Clean Coal Technology: CCT) in securing a stable coal supply.

12

Comparison of heat efficiency of coalComparison of heat efficiency of coal--fired power plants by countryfired power plants by country

Superiority of Japan’s Coal-Fired Power PlantsSuperiority of JapanSuperiority of Japan’’s Coals Coal--Fired Power PlantsFired Power Plants

23.0

25.0

27.0

29.0

31.0

33.0

35.0

37.0

39.0

41.0

43.0

1990 1992 1994 1996 1998 2000 2002 2004

China France Germany Japan United States

UK + Ireland Nordic countries India South Korea Australia

出典：INTERNATIONAL COMPARISON OF FOSSIL POWER EFFICIENCY

JapanNordic countries

U.S.

Australia

England

India

Korea

China

France

Germany

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JapanJapan’’s Integrated Coal Gasification Combined s Integrated Coal Gasification Combined Cycle (IGCC) Cycle (IGCC)

• Transmission end efficiency target: 48%

• Reduction of CO2 : 20%• Sep. of FY2007: Initiate

250MW demonstration test• Consortium: 11 power

corporations • 30% subsidy by METI• Gasifier : Air blown

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JapanJapan’’s Integrated Coal Gasification Fuel Cell s Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC)Combined Cycle (IGFC)

• Coal Energy Application for Gas, Liquid and Electricity (EAGLE)

• Test operation (STEP2): FY 2007～ FY 2009

• Continuous operation performance: 1,000 hours

• CO2 reduction : 30%• Adaptability test for three

types of coal• Main organization :

JPOWER

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EAGLE炉（現状）

ガス化可能確認範囲

EAGLE炉ガス化目標拡大範囲

Extension range of targeted types in adaptable coal for EAGLE gaExtension range of targeted types in adaptable coal for EAGLE gasifiersifier

1100 1200 1300 1400 1500 1600 1700

0.50

1.00

1.50

2.00

2.50

Ash melting point：ＪＩＳ method [℃]

Fuel ra

tio [

-]

Gas

ifica

tion;

mor

e di

fficu

ltG

asifi

catio

n; e

asie

rExtension range of targeted gasification for EAGLE gasifier

EAGLE （current situation）Range of possible gasification

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Compression StorageTank

Coal-fired Power Generation■Demonstration to increase kinds of the coal to apply■Development & Demonstration of ASU

Combustion gasCO2concentration

：7～40％

Off-gas(Returned tothe stack)

LiquefierInjection

well

ポンプ＆気化器

StorageTank

＜＜InjectionInjection＞＞＜＜TransportTransport＞＞＜＜SSeepaparationration & & CaptureCapture＞＞

Vessel■The conceptual design of the Japanese model transport by vessels

＜＜Coal GasificationCoal Gasification

/Combustion/Combustion＞＞

CO2 Capture unit

■The investigation such as storage potential, the cost

■Base study project

CO2CO2

■System conceptual design

■CO2 Separation & Capture by the chemical absorption method

About CCS of CO2 occurring from a coal-fired power station, how to be realistic about the transportation is an important problem. During a present base study, We plan the realization of the total system.

Innovative Zero-emissions Coal-fired Power Generation

Injection

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Features・Direct CO2 recover.・Higher plant efficiency is expected for CO2 recover.・Flue gas treatment equipment are small-sized or non-installed.・NOx and SO2 emissions are reduced greatly.

Flue gas recirculation

P.C.

Air separationunit

CO2 recovery system

O2

(CO2, H2O…)

(CO2,H2O…)

CO2

H2O…

Boiler

N2

Air

(N2, O 2)

(C, H…)

Japan and Australia are working together about The Callide A project. This project, the world’s first demonstration of oxy-fuel combustion with CO2 storage will make a significant contribution to the development of technology that can be retrofitted to power stations to capture greenhouse fas emissions.

Callide Oxyfuel Project

*In terms of Japan, this project is conducted by JCOAL and others subsidized by METI.

Australia

Brisbane

QLD

Sequestration site

Power generationsite

18

300t /d Plant in Indonesia

Low-Rank Coal Upgrading Process (UBC Process) Scheme

Low-Rank Coal Upgrading Technology (UBC Process)

19

Brown Coal Liquefaction

20

CCT Transfer ProjectIntroduction support projects

21

Introduction Support Projects

22

CFB Applied to low grade coal

Site Place

Russia

Mongol

China

Japan

Korea

23

Low –grade Coal Combustion System

24

Summary of Low grade coal fired CFB

ESP CFB

◆Use ofLow Grade Coal

◆ Compact Design& Reliable Design

To reduce Operation CostTo reduce Operation CostTo reduce OperatorTo reduce Operator’’s Loads LoadTo reduce Environmental LoadTo reduce Environmental Load

◆Low NOx/SO2

emission

25

Coal Cleaning in Ha Long bay

26

Quality control for Coal CleaningJapan is following up on a support project to introduce and advanced cleaning system that was implemented at the Cuo Ong

coal preparation plant in Viet Nam, Ha Long bay region.While the coal consumption is increasing rapidly, this system will be disseminated and it must become one of the most powerful strategies to prevent the environmental disruption in Viet Nam.

The Cuo Ong coal preparation plant, Viet Nam

Jig Washers after Modification

27

CCT Training in Japan

Number of Trainees

64634317389120108191Total

6013494109112006

5985961010112005

57351061011122004

61241181014122003

61276899202002

78668121111242001

58981210192000

445977161999

5169118171998

67111811271997

508128221996

TotalIndiaMalaysiaVietnamPhilippinesIndonesiaThailandChinaFiscal Year

64634317389120108191Total

6013494109112006

5985961010112005

57351061011122004

61241181014122003

61276899202002

78668121111242001

58981210192000

445977161999

5169118171998

67111811271997

508128221996

TotalIndiaMalaysiaVietnamPhilippinesIndonesiaThailandChinaFiscal Year

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Renovation for Existing Conventional Coal Firing Plants in China

＜Renovation＞

Pollution control facilities・FGD・SCR

Renovation for boiler・Cleaning tubes and AH elements・Equipping soot blowers・Automating control of burner nozzles・Injecting additives for preventing ash adhesion

Renovation for turbine・Replacement of turbine rotor and/or inner casing・Equipping advanced blades・Exchange of seal fines

② diagnoses ③Planning for renovation andfinance including CDM projection

④Implementation and estimation

①Selection for coalfiring power plants

＜Procedure＞

China Side

Japan Side

・Support for estimation ofdata from operation plant・Analyses using combustionsimulator

・ Support for renovation・Proposal for finance

and ＣＤＭ projection

＜Background＞●Coal firing power generation capacity in China is 300 million kW, accounting for 70%. It is eight times as much as in Japan.

●Technologies for high efficiency and environmental protection are not introduced for under 400MW units in China,accounting for 90%(100 to 400MW units are over 800 units ).

●Japanese advanced CCTs including diagnoses and renovations are strongly needed.●It is expected for 300MW unit to be 5% of higher efficiency, 0.1 million tones of coal conservation and 0.2 million

tones of CO2 reduction.

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ＦｉｎａｎｃｉａｌＦｉｎａｎｃｉａｌ ｂｒｉｄｇｅｂｒｉｄｇｅ ｆｒｏｍｆｒｏｍ ｄｉｒｔｙｄｉｒｔｙ ｔｏｔｏ ｃｌｅａｎｃｌｅａｎ((ＦＴＦＴ February 8February 8，，2008)2008)

The writers are the finance ministersThe writers are the finance ministersfor the US,UK and Japanfor the US,UK and Japan

• US, UK and Japan have risen to the challenges by establishing a multibillion-dollar fund to accelerate the development of clean technologies and help the developing world deal with climate change.

• The clean technology fund will be launched as national engage in United Nations negotiations to design a post-2012 framework to address climate change.

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Thank you for your kind attention!