coal/lignite 69%
DESCRIPTION
November 5, 2009 Louisiana Tech University Energy Systems Conference Transformation to the Energy Resource Mix of the Future Nicholas Akins Executive Vice President – Generation. Company Overview. Nat. Gas/Oil 20%. Nuclear 6%. Pumped Storage/ Hydro/Wind 5%. Coal/Lignite 69%. - PowerPoint PPT PresentationTRANSCRIPT
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November 5, 2009Louisiana Tech University Energy Systems Conference
Transformation to the Energy Transformation to the Energy Resource Mix of the Future Resource Mix of the Future
Nicholas AkinsExecutive Vice President – Generation
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Coal/Lignite
69%
Nat. Gas/Oil
20%Nuclear
6% Pumped Storage/ Hydro/Wind
5%AEP’s Generation
Fleet
>38,000 MW Capacity
Company Overview
5.2 million customers in 11 statesIndustry-leading size and scale of
assets:Asset Size
IndustryRank
Domestic Generation ~38,300 MW # 2Transmission ~39,000 miles # 1Distribution ~213,000 miles # 1
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U.S. Policymaker Goals
Addressing rising electricity demand while reducing power plant emissions
Ensuring electricity remains affordable, reliable and secure from domestic sources
Moderating electricity price increases Sustaining the engine of economic growth Increasing environmental protection
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Key Points
No silver bullet – Portfolio mix of resources will be required to satisfy future energy needs
Expected federal environmental policy will require further emissions reductions from existing and future coal and natural gas fired power plants
Carbon capture and storage and EOR are critically needed technologies for baseload generation to comply with anticipated federal CO2 emissions reduction requirements
Financial market recovery is necessary to enable the transformation of a decarbonized portfolio
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Electricity Generation: U.S. Government Forecast
3875 TWh 4777 TWh
2006 2030
Reference case from EIA “Annual Energy Outlook 2009”
23% Growth
Coal49%
Natural Gas20%
Nuclear 19%
Other1%Renewable
Sources9%
Petroleum2%
Coal46%
Natural Gas20%
Nuclear 18%
Other1%
Petroleum1%
Renewable Sources
14%
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Waxman-Markey emission reductions
Total US GHG Emissions vs. Legislative Caps
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
US
GH
G (
MM
met
ric to
ns)
1990 Levels
Lieberman-Warner-Boxer
Waxman-Markey
Dingell-Boucher
BAU_AEO 2009 Update
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7
2009 EPRI Prism
2007 EIA Base Case
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8
2009 Prism Technology Targets
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Generation Mix & Electricity Costs--2030
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Generation Mix & Electricity Costs--2050
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How can these reductions be achieved?
Technology developed and quickly deployed
Establishing enabling public policies
Financing through public/private partnerships
Investment recovery from ratepayers
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CO2 Capture Techniques
Post-Combustion Capture Conventional or Advanced Amines, Chilled Ammonia Key Points
Amine technologies commercially available in other industrial applications Relatively low CO2 concentration in flue gas – More difficult to capture than other approaches High parasitic demand
Conventional Amine ~25-30%, Chilled Ammonia target ~10-15% Amines require very clean flue gas
Modified-Combustion Capture Oxy-coal Key Points
Technology not yet proven at commercial scale Creates stream of very high CO2 concentration High parasitic demand, >25%
Pre-Combustion Capture IGCC with Water-Gas Shift – FutureGen Key Points
Most of the processes commercially available in other industrial applications Turbine modified for H2-based fuel, which has not yet been proven at commercial scale Creates stream of very high CO2 concentration Parasitic demand (~20%) for CO2 capture - lower than amine or oxy-coal options
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Mountaineer CCS demonstration project
Project Validation 20 MWe scale
(Scale-up of Alstom/EPRI 1.7 MW field pilot at WE Energies)
~100,000 tons CO2 per year In operation 3Q 2009 Approximate total cost $80 – $100M Using Alstom “Chilled Ammonia” Technology Located at the AEP Mountaineer Plant in WV CO2 for geologic storage
Mountaineer Plant (WV)
2009 Commercial Operation
Chilled Ammonia
CO2 (Battelle)
Alstom
Will capture and sequester 100,000 metric tons of
CO2/year Photo courtesy of Astom and AEP
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Gas to StackChilled
Water
Gas Cooling
and Cleaning
Flue Gas from FGD
CO2
Cooled Flue Gas
CO2
CO2 Regenerator
CO2
AbsorberCO2
Clean CO2 to Storage
Reagent
Heat and Pressure
Reagent
CO2
Reactions:CO2 (g) == CO2 (aq)(NH4)2CO3 (aq) + CO2 (aq) + H2O == 2(NH4)HCO3 (aq)(NH4)HCO3 (aq) === (NH4)HCO3 (s)(NH4)2CO3 === (NH4)NH2CO2 + H2O
Graphics curtsey of Alstom Power
Alstom’s Chilled Ammonia ProcessPost-Combustion Capture
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Mountaineer Storage andMonitoring System Design
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Major issues
Storage issues: Property rights Liability Permit requirements USEPA designation of
CO2
State cooperative agreements/consistency
Capture issues: CO2 absorption Steam requirement for
liberation of CO2 Power plant integration
and optimization Parasitic load
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Complimentary Technologies Toward a Cleanly Powered Grid
AEP is investing in these new technologies: New advanced coal technologies to gasify coal and carbon capture to
retrofit to existing and new coal and natural gas units with storage or for enhanced oil and natural gas recovery;
Renewable energy (especially Wind, Biomass); Supply and demand side energy efficiency; New nuclear units; New transmission infrastructure to make our system more efficient; Offsets (Forestry, Methane)
Power to Change Deployment Plan at www.wbcsd.orgMidwest Governors Association Energy Stewardship Platform At
www.midwesterngovernors.org
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Why change now?Generation profile is shifting and will continue to
shift dramatically: New large scale renewables need to be
interconnected that are today largely electrically isolated
Environmental requirements may require retirement of large fossil units, potentially at a magnitude never before faced in this country
Generation needs to be deliverable to load not simply interconnected. Attention must be focused on the robustness of the grid.
The search for a “bright line” between reliability and economic projects is increasingly artificial.
What needs to change?A new energy supply paradigm requires a
different type of transmission planning to enable greater capacity and flexibility.
Cost allocation principles must be broadened to encompass this strategic new build.
Siting processes which are aligned with state, regional and national energy policy objectives.
Today’s Challenges….
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Efficiency of 765-kV Transmission
Advanced transmission enables energy savings through efficiency.
Advanced transmission enables energy savings through efficiency.
A US 765-kV transmission overlay would reduce peak load losses by more than 10 GW and CO2 emissions
by some 15 million metric tons annually.
A US 765-kV transmission overlay would reduce peak load losses by more than 10 GW and CO2 emissions
by some 15 million metric tons annually.