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«WORKING PAPER IMPLEMENTING CLEAN COAL TECHNOLOGIES NEED OF SUSTAINED POWER PLANT EQUIPMENT SUPPLY FOR A SECURE ENERGY SUPPLY Scientific and ...»

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DIRECTORATE-GENERAL FOR RESEARCH

WORKING PAPER

IMPLEMENTING CLEAN COAL TECHNOLOGIES NEED OF SUSTAINED POWER PLANT EQUIPMENT

SUPPLY FOR A SECURE ENERGY SUPPLY

Scientific and Technological Options Assessment Series

__________STOA 117 EN __________

WORKING PAPER

IMPLEMENTING CLEAN COAL TECHNOLOGIES NEED OF SUSTAINED POWER PLANT EQUIPMENT

SUPPLY FOR A SECURE ENERGY SUPPLY

Scientific and Technological Options Assessment Series __________STOA 117 EN __________ 12-2003 This study was requested by the European Parliament's Committee on Industry, External Trade, Research and Energy within the STOA Workplan 2002.

This paper is published in English only. However, an executive summary is included at the start of this publication in the following languages: EN/DE/FR.

Author : Decon Deutsche Energie-Consult Ingenieurgesellschaft mbH Bad Homburg (D) Responsible Official: Peter Palinkas Division for Industry, Research, Energy, Environment andSTOA Tel: (352) 4300 22920 Fax: (352) 4300 27718 E-mail: DG4-STOA@europarl.eu.int Manuscript completed in December 2003 Luxembourg, European Parliament, 2003 The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament.

Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice and sent a copy.

PE 338.431 - ii Implementing Clean Coal Technologies

TABLE OF CONTENTS

Executive Summary

Zusammenfassung

Résumé

1. Objectives and Targets

2. Introduction and Background

2.1 Challenges to Sustainable Development 3 2.1.1 Opportunities for High Efficiency Power Plant Technologies

2.1.2 Global and EU Energy and CO2 emissions Trends

2.1.3 The fuel – coal and its price

2.2 Initiatives to meet the challenges of this decade 9 2.2.1 Promoting supply security by meeting the capacity gap

2.2.2 Promoting reduction of CO2 emissions by meeting the technology gap

2.2.3 Meeting the Technology Gap under Competitive Global Market Conditions

2.3 Market Barriers for CCT 12

3. Overview on Clean Coal Technologies

3.1 State of the Art - European market survey on available Clean Coal Technologies for high-efficiency coal-fired power plants 15 3.1.1 PCF - conventional pulverised coal fired technology

3.1.2 FBC - Fluidised bed combustion

3.1.3 PFBC - Pressurised Circulating Fluidised Bed Combustion

3.1.4 IGCC - Integrated gasification combined cycle

3.2 EARLY-STAGE - coal fired power generation technologies 23 3.2.1 PPCC- Pressurised pulverised coal combustion

3.2.2 IGFC - Integrated gasification fuel cell (FC) technology

3.2.3 IFPS - Indirectly fired power systems HIPPS - performance power systems

3.2.4 MHD - Magnetohydrodynamic power generation

3.2.5 Coal diesel

3.3 European market survey on technologies for emission reduction in coal-fired power plants 26 3.3.1 Control of emissions from pulverised fuel combustion

3.3.2 Control of emissions from fluidised bed combustion

3.3.3 Outlook of emission reduction technologies

3.4 Comparative analysis of different available technologies 33 3.4.1 Comparison of efficiency of CCT

3.4.2 Comparison of emission characteristics

3.4.3 Assessment of further development potentials of available technologies

3.5 Directory of potential European key actors in the emerging market for CCT in the power plant sector 44

3.6 Overview on previous and on-going European RTD and demonstration projects in the field of CCT 44

–  –  –

TABLE OF FIGURES AND TABLES

Figure 2-1: World energy consumption

Figure 2-2: Development of the World‘s Electricity Production Fossil Fuels Dominate Power Generation

Figure 2-3: Segmentation of the World Market for Power Plants

Figure 2-4: World power generation

Figure 2-5: Power Generation by energy form in EU

Figure 2-6: Power plant capacities in the EU younger than 40 years

Figure 2-7: Modern fossil PP provide potential to reduce CO2-emissions

Figure 2-8: Emission reduction with improved efficiency

Figure 3-1: Overview on the different Clean Coal Technologies

Figure 3-2: Concept of conventional PCF power plant with flue gas desulphurisation (FGD)...........16 Figure 3-3: 265 MWel AFBC power plant (JEA large-scale CFB combustion project, USA).............18 Figure 3-4: Design of 137 MWel PCFB power plant (McIntosh Unit 4A, USA)

Figure 3-5: Concept of IGCC power plant

Figure 3-6: Current status of flue gas cleaning equipment of European power plants (150 GWel)..26 Figure 3-7: Wet FGD process with a spray tower

Figure 3-8: Cost of electricity: gas combined cycle versus supercritical coal

Figure 3-9: Fuel consumption in g of coal equivalents per kWh





Figure 3-10: Trend for increased efficiency

Figure 3-11: Efficiency Evolution

Figure 3-12: Net efficiency of power generation depending on upper temperature limit (Carnot process and different coal & gas technologies)

Figure 3-13: Structure of costs for electricity

Figure 3-14: Clean Coal Technology trends

Figure 3-15: Development of High Temperature Materials

Figure 3-16: Recommendations for further R&D on CCT

Figure 3-17: Approach, timelines and targets of the POWER 21 initiative

Figure 3-18: Timelines of POWER 21 and the parallel government initiative (SSA "FENCO") in the member states and their link to EU R&D Programmes

Figure 3-19: Ultra super critical power plant

Figure 3-20: Crucial components of the EU supported project AD 700 - THERMIE R&D..................48 Figure 3-21: Cost of Electricity (CoE) by Technology

Figure 3-22: Potential, Requirements and Alternatives

Figure 4-1: Conditions for a balanced energy mix

Figure 4-2: Age structure of the European power plants

Figure 4-3: Estimated employment effects (direct, +indirect, +income generated) of CCT..............59 Figure 5-1: Global CO2 emissions

Figure 5-2: Specific CO2-emisisons of coal-fired plants

Figure 5-3: Reduction of CO2 emissions by replacement of coal-fired power plants worldwide........64 Figure 5-4: Comparison of costs to avoid CO2 emissions by the replacement of old coal power plants (range indicated by upper part)

–  –  –

Figure 6-1: Overview on CO2 capture technologies

Table 3-1: Representative supercritical steam PCF power plants

Table 3-2: Commercial scale PFBC power plants

Table 3-3: Commercial scale coal-fired IGCC power plants

Table 3-4: Technical Parameters of best available technology (BAT) in CCT

Table 3-5: Brief evaluation of CCT characteristics

Table 3-6: Emission Parameters of advanced CCT (BAT)

Table 3-7: Comparison of main parameters of AD700 project

Table 3-8: The economic performance of the AD700 technology

Table 4-1: Investment and input structure for new and retrofit CCT power plants

Table 5-1: Greenhouse gas emissions (excl. land-use change and forestry) in CO2 equivalents and Kyoto Protocol targets for 2008-2012

Table 5-2: Table on estimated CO2-emissions (g/kWh) for different fuels

Table 6-1: Estimated Reservoir Capacities of CO2

Table 7-1: Check list for demonstration project site and technology (USC/PFBC...) selection........80

–  –  –

Abbreviations and Acronyms Adv Advanced AFBC Atmospheric (pressure) Fluidised Bed Combustion AGR Advanced Gas Reburn BAT Best Available Technology BFBC Bubbling Fluidised Bed Combustion BoA Advanced technology for (lignite-fired/thermal) Power Plants "Braunkohlenkraftwerk mit optimierter Anlagetechnik“ CCPP Combined Cycle Power Plant CCT Clean Coal Technology CDM Clean Development Mechanism CEEC Central and Eastern European Countries CFBC Circulating Fluidised Bed Combustion CHP Combined heat and power production (co-generation) CIS Commonwealth of Independent States CoE Cost of Electricity Conv Conventional DG Directorate General DH District Heating DoE US Department of Energy EC European Commission EP European Parliament EU European Union EESD Energy, Environment and Sustainable Development, Component within RTD FP of the EC ESP ElectroStatic Precipitator FBC Fluidised Bed Combustion FC Fuel Cell FEC Final Energy Consumption (used in energy balance) FF Fabric Filter FGD Flue Gas Desulphurisation FP Framework Programme HHV Higher Heating Value HIPPS High Performance Power Systems IEA International Energy Agency IFI International Financial Institution (e.g. WB, EBRD, KfW) IFPS Indirectly Fired Power Systems IGCC Integrated Gasification Combined Cycle (combustion) IGFC Integrated Gasification Fuel Cell (conversion) LCP Large Combustion Plant LHV Lower Heating Value LIMB Limestone Injection - Multistage Burner LNB Low NOx Burner MCFC Molten Carbonate Fuel Cell MHD MagnetoHydroDynamo Power Systems MGT Micro Gas Turbine Mtoe Mega Tonne Oil equivalent NGO Non-Governmental Organisation OFA Over-Fire Air O&M Operation and Maintenance

–  –  –

Executive Summary This study addresses the present and future role of high efficiency power plants based on Clean Coal Technologies (CCT). The overall objective of the study is to analyse the short and medium-term demand for the deployment of a low emission and high efficiency power plant using currently available CCT. The use of current available technology potential provides a basis for ensuring the applicability and viability of new technologies.

In order to promote the above-mentioned objectives, the study’s main aim will be to detail

and clarify the potential of CCT along with the ways with which to exploit it, by means of providing:

· the strategic and socio-economic significance of a large-scale CCT project, · reasons for why CCT fits into Europe's climate and RTD policies, · the selection criteria for short and medium-term RTD activities to further develop CCT and ensure the viability of related projects, · the basic understanding for cooperation between public and private decision makers, and · suggestions gained from exploring financial resources for new CCT RTD projects The demand and arguments for the further support of the development of European CCT are summarised with the aim to initiate commitment for new CCT projects at a very early stage prior to project identification. This is very important for liberalised power generators under harsh cost competitive conditions, as it is vital, before launching a full-scale demonstration project, to have prior proof of demand, availability and viability for such a CCT project.

The main focus of this study is given to coal combustion and gasification processes in the power plant because this is the specific technological challenge. Of course, the improvement in efficiency of other power plant components, such as the turbine, generator, heat exchangers, cooling system, etc. can contribute considerably to the increase in the gross efficiency of the power plant as a whole. These non-combustion components are not the specific focus of this study as these technology improvements can be applicable in all types of large scale power plants with a steam cycle.

Challenges, opportunities and demand for high efficiency power plants In the EU today, energy supply is very much dependent on oil and gas, energy resources which have to be imported mostly from non-EU countries. The EU therefore faces the danger of steering towards a situation where its economic growth relies on a fuel/energy supply from a small number of non-member countries and is thus further away from self-sufficiency. At current levels, secured coal reserves are estimated to last for more than 200 years. This means that coal users can secure their energy supply in the long run, and can do so at competitive prices.

The real structural change of the European energy sector is based on the liberalisation of the electricity (and other energy carrier) markets, and secondly on the support of renewable energy technologies. Electricity production facilities not only have to meet the faster changing power demand but must also, to a certain extent, promote short-term solutions with stricter cost-benefit calculations than long-term investments with less calculable risks even though they might be environmentally more benign. Contrary to CCT on a large scale, smaller gasfired units with short planning and construction periods and lower capital commitment are flexible to meet this criterion, despite the higher and less calculable fuel costs, the higher dependencies from a few exporting gas producers and the more limited gas reserves. Additionally, gas is an ideal fuel for households and decentralised smaller users, as complex flue gas cleaning (only economic on a large-scale) is hardly needed.

In contrast, coal offers the advantage of secured supply and prices, but requires a more complex flue gas cleaning process which is only economical for large-scale plants. In order

–  –  –

An increase in energy efficiency on the consumer-side along with extensive renewable energy exploitation will not be enough to saftisfy the EU’s energy demand in the coming decades.

The decision to shut-down nuclear power plants (with mostly CO2-free electricity production) by several member states will widen the need for alternative generation facilities and thus increase the need for using conventional fuels. This however will lead to increasing CO2emissions instead of reducing them unless the average power plant efficiency can be increased and/or CO2 separation and sequestration technologies are applied (which are not yet available).

–  –  –

Technical Parameters of best available technology (BAT) in CCT (Source: 7. Fachkongress Zukunftsenergien, Essen, 12.02.2003 and BREF documents of EPPSA)

–  –  –



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