Coal in the 21st Century: Challenges and Opportunities

1. Coal in the 21st Century: Challenges and Opportunities Presented at the Electricity 2020 Forum Grand Rapids, MN Dr. Michael L. Jones Senior Research Advisor Energy & Environmental Research Center Grand Forks, ND February 14, 2007

2. Humanity’s Top Ten Problemsfor the Next 50 Years 1. ENERGY 2. WATER 3. FOOD 4. ENVIRONMENT 5. POVERTY 6. TERRORISM AND WAR 7. DISEASE 8. EDUCATION 9. DEMOCRACY 10. POPULATION 2003 -- 6.3 billion People 2050 -- 10 billion People Richard Smalley, 2003 (1996 Nobel Laureate in Chemistry)

3. Colin J. Campbell, 2004

4. “Hubbert’s Peak” by Kenneth Deffeyes (2001) • M. King Hubbert predicted U.S. oil production would peak in 1970. • It did. • The same approach predicts world oil production will peak within this decade. • It will. • The days of cheap energy from oil will then be gone.

5. Richard Smalley, 2003 (1996 Nobel Laureate in Chemistry)

6. Richard Smalley, 2003

7. U.S. Energy Resources Source: U.S. Department of Defense

8. Bottom Line – New Middle East Source: U.S. Department of Defense

9. Opportunities for Coal • Production of transportation fuels • Liquids • Hydrogen • Electricity production

10. Transportation Fuels -- Challenges • Oil resources – finite resource • Alternative fuels (including electricity) • Hydrogen • Production • Storage • Distribution • Coal – production of hydrogen, liquid fuels and electricity • CO2 sequestration

11. Electricity Generation – Challenges • Zero-emission power plants that produce electricity, chemicals, and liquid fuels cheaply • Massive long distance electricity transmission • Electrical storage

12. Coal’s Resurgence in Electric Power Generation

13. Generation Options • Conventional combustion • Coal gasification (IGCC) • Indirectly fired combined cycle

14. Conventional Combustion • Operational issues • Environmental performance • NOx • Particulate • SOx • Metals • CO2

15. 6. Low-Temperature Fouling Deposit Formation 1800°– 2400°F 1. Coal Particles † … 1200°– 1800°F ƒ-„ Coal + Air Coal + Air 2000°– 3000°F ‚  5. High-Temperature Fouling Deposit Formation Slag 2. Combustion 4. Slag Deposit Formation 3. Early Combustion Products Ash Deposition Phenomena in Utility Boilers

16. Environmental Issues • SOx • NOx • Particulate • Metals (Hg) • CO2

17. Coal Gasification

18. IGCC Diagram Source: National Energy Technology Laboratory, U.S. Department of Energy

19. Opportunities for Low-Rank Coal Gasification • High reactivity – Lower temperature gasification processes – transport reactor • High sodium and calcium – Catalyzes gasification rates • High moisture – Water for steam gasification, shift reaction, increased gas flow

20. What Is the Best Conversion Technology? Key Fuel Properties • Moisture content • Coal reactivity • Caking properties • Inorganic materials – Ash/slag and trace elements • Sulfur levels • Oxygen content

21. Lignite Gasification to Produce Liquid Fuels, Hydrogen, Electricity, and Carbon Dioxide Modified after Gray and others, 2004.

22. Fate and Impacts of Impurities on Gasification and Gas Cleanup 6 4 5 Cyclone Coal Preparation and Upgrading/Slurry 7 2 3 Recycle Gas Purification and Separation Sulfur Removal And Ammonia Removal Hot Gas Filter Syngas Cooler 1 Coal/Biomass/Pet Coke Gasifier 1 2 3 4 5 • Gas Processing/ • Cooling • Condensation • Transport • Deposition Growth • and Removal • Gasification • Fuel Reactivity • Partitioning (Vapor, Liquid, Solid) • Slag Flow • Bed/Ash Reaction • Deposition • Hot Gas Cleanup • Particulate • Hg • Na • Trace elements • Halogens • Fuel Prep and Upgrading • Slurry Prep • Drying • Mineral Removal • Blending Quartz Calcite Na+ Ca++ Pyrite 7 6 • Gas Purification and Separation • Shift Reactions • Separation and • Purification • Sulfur Removal • H2S --Metal Oxide • Impact of Na, K • Trace elements • Hg • Halogens

23. Examples of Current Experience • Eastman Chemical Company's coal gasification plant • High-sulfur Appalachian bituminous – 1300 ton/day • Acetyl chemicals • Over 22 years of operation • Tampa Electric's Polk Power Station • GE Energy (Texaco) gasifier – slurry-fed, single-stage, entrained flow • Pittsburgh Basin and Appalachian coals, petcoke, and biomass – 2200 ton/day • Medium-Btu syngas fired to produce electricity – 250 MWe • DOE Clean Coal Project – 4- to 5-year demonstration • Commercial operation began in 1995 • SG Solutions – Wabash River • E-gas (ConocoPhillips) slurry-fed, two-stage, entrained-flow gasifier • Illinois Basin coal, petroleum coke • 262 MWe (net) of electricity • DOE Clean Coal Project – 4- to 5-year demonstration • Commercial operation began in 1995 • GE Energy (Texaco) gasifiers – slurry-fed, single-stage, entrained-flow quench gasifier

24. Examples of Current Experience (cont.) • Shell Gasification (Nuon) Buggenum – Netherlands • Shell gasifier – entrained flow with dry fuel feeding and recycled syngas cooling • Range of bituminous coals • 253 MWe of electricity • Operation since 1998 • Elcogas – Puertollano, Spain • Prenflo gasifier entrained-flow system with dry fuel feeding • Coal and petroleum coke • 298 MW of electricity • Began operating in 1998 • Schwarze Pumpe Gmbh • Future Energy Gmbh – entrained flow with dry dry feedingcooling screen design • 130 MWth brown coal before 1992; waste oil slurries after • Operation since 1984

25. Examples of Current Experience (cont.) • Piñon Pine IGCC Power Project (Sierra Pacific) • KRW fluidized-bed gasifier • Utah bituminous, 0.5%–0.9% sulfur coal – 90 MW • DOE Clean Coal Project – Problems during start-up and project was not completed • HTW Demonstration Berrenrath, Germany • High-temperature Winkler fluidized bed with dry feed • 140 MWth of dried brown coal • Methanol production • Started operation in 1986, shutdown in 1997 with 67,000 hours • GTI U-Gas Process • Shanghai, China • 1000 TPD, 8 gasifier low-pressure using bituminous coal • Fuel gas for coke oven • Started operation in 1995, currently moth-balled 70,000 hours

26. Advantages of Indirectly Fired Combined Cycles (IFCC) • Operations very similar to pc-fired boilers • Nearer-term technology • Higher efficiencies – 45% when firing coal, over 50% with NG supplement • Half the water usage of a typical steam-based plant because of the Brayton cycle • Slagging heat exchangers are self-cleaning • Much lower loss of heat transfer due to fouling • Much less overconstruction

27. Air Gas Turbine Steam Turbine Generator Generator Gas Hot Air Heat Recovery Coal Steam Generator FGD Convective Air Heater Radiant Air Heater Selective Noncatalytic Reactor Zone Efficiency, 47.3% GT output, 161 MW ST Output, 150 MW Coal/Gas 65%/35% Slag Ash IFCC Schematic Key: FGD: Flue Gas Desulfurization GT: Gas Turbine ST: Steam Turbine

28. Chemical Chemical (TSA) Chemical Looping Organic Membrane Amines Metal Oxides Polysulphone CO2 Hydrate Caustics Polyamide Others Others Cellulose derivatives Others Electro-chemical Pump Physical (PSA,TSA) Physical Inorganic Membrane Zeolites Selexol Metallic Microbial /Algae ACs Rectisol Ceramics Si/Al Gels Others Others Technologies for CO2 Capture Others Absorption Adsorption Membranes Cryogenics

29. Methods for Reducing GHG Emissions • Renewable energy technologies • Advanced high-efficiency energy systems • Improve efficiency on existing systems • Reduce consumption of energy • Sequester GHG emissions

30. PCOR Partnership • Phase II Goals • Increase public understanding of CO2 sequestration • Perform field validation tests that develop: • - MM&V protocols • - Regional sequestration strategies • - Best separation/source matches • - Regulatory and permitting strategies • - Environmental benefits and risks • - Information needed to monetize C credits • Continued regional characterization • Regional partnership program integration

31. Regional Carbon Sequestration Partnerships The Regional Carbon Sequestration Partnership (RCSP) Program represents more than 216 organizations in 40 states, three Indian nations, and four Canadian provinces.

32. Partnership Benefits (cont.) • Breaking news on our four regional field verification activities.

33. Summary • Clean coal will be part of our future energy mix. • Coal gasification will be one option. • CO2 capture and sequestration will be part of future coal development activities. • A range of power generation options will be used to meet our future energy needs.

34. Contact Information Energy & Environmental Research Center University of North Dakota 15 North 23rd Street Stop 9018 Grand Forks, North Dakota 58202-9018 www.undeerc.org Telephone No. (701) 777-5000 Fax No. (701) 777-5181 Dr. Michael L. Jones Senior Research Advisor (701) 777-5152 mjones@undeerc.org