how to deliver clean and secure power and set an example of global relevance mike farley 10.2.2009...

‘How to deliver clean and secure power and set an example of global relevance’

Mike Farley

10.2.2009Scottish Engineering /UNITE conference

Company update – Doosan Babcock and Doosan Heavy

• Doosan Babcock Energy Limited is a subsidiary of Doosan Heavy Industries and Construction of South Korea, part of the Doosan Group, and a market leader in gas, coal, nuclear power generation and desalination

• The company will offer Pre, Post combustion and Oxyfuel carbon capture and advanced supercritical boilers

• Doosan Babcock Energy has been designated the Doosan global Centre of Excellence and R+D Centre for Boilers (including Clean coal and CCS)

Nuclear Thermal Turbine & Generator

Desalination Casting & Forging Construction

PostCombustionDoosan Babcock offers HTC Purenergy amine capture technology to its global customer base in the UK.

OxyCoalTM 2

40MW pilot

in UK

R+D Plus Project developed after discussions in Korea and Glasgow between SDI and Doosan Heavy

Scottish Executive support to accelerate the growth of the R&D Centre, stretch the breadth of the R&D carried out allow more speculative, longer-term work than otherwise possible ensure Renfrew is the HQ and main hub

Project duration is 3-4 years, commencing August 2008 Project value £10M, New products and services for sustainable

power generation markets (UK, Europe and global) Major contribution to the Scottish energy R+D scene Main focus is Carbon dioxide capture

Doosan Babcock R+D Plus

1960 1980 2000 2020

35

40

45

50

55

30

Supercritical Boilers

Sub Critical Boilers

Plant efficiency

% NCV

Year

50+

50 – 55%

Doosan BabcockASC

46%

Meri PoriHemweg

New Chinese Orders

42%

Chinese fleet 38%

OlderPlants

(Lower CO2

Emissions)

38%

32%

UK

fleet

Abatement of CO2 by efficiency improvement of Pulverised Coal Plant

(-23%)

(-29%)

Best Available Advanced Supercritical Technology being supplied now

EON 50+ project at Wilhelmshaven being tendered now

International Test Centre (ITC) for CO2 Capture - World Leader in CO2 Capture and Enhanced Oil Recovery

Doosan Babcock partnership with HTC PurenergyDoosan Babcock partnership with HTC Purenergy

ITC - Natural Gas flue gas capture Centre Coal flue gas demonstration - Test Facilities at Boundary Dam

CCS1000 Modular DesignCCS1000 Modular Design

2008 Demonstration at SV Minerals - 50MW, includes 2008 Demonstration at SV Minerals - 50MW, includes new solvent (RS1), new packing material strategy, steam reduction

Absorption Column, 14 ft-6 in ID x high 119 ft

Stripper Column, 12 ft-6 in ID x 77 ft high

In September 2008, Doosan Babcock signed an agreement with HTC Purenergy of Canada to licence the company’s technology for post-combustion capture of CO2.

Doosan Babcock will offer the technology to its customer base in the UK, Europe, the Americas and China and will take advantage of the series of demonstration projects in which HTC Purenergy are involved

OxyCoal 2 - Demonstration of OxyCoalTM combustion system

• £7.4M project• Convert Doosan Babcock’s full-scale burner test facility to

oxyfuel firing• Oxygen supply

• Flue gas recycle system (fans, ducts, cooler, heater, etc.)

• Instrumentation

• Design and build full-scale utility OxyCoalTM burner (40MW)• Derived from air-firing experience, CFD modelling and

Oxyfuel R+D

• Demonstrate a full-scale utility OxyCoalTM burner• Flame stability, combustion efficiency, emissions, flame

shape, and heat transfer characteristics as function of %CO2 recycle and excess oxygen

• Start-up, shut down, transition from air to oxyfuel, load change

OxyCoalTM 2 Project

The substantial contributions of:

• the Prime Sponsor

• Sponsors

• University participants

are acknowledged by Doosan Babcock

Vattenfall

Background

• Deteriorating generation margin with major closures only a few years away (sooner in Scotland) and no adequate plans for replacements

• Focus on large percentage of renewables seems to neglect issues due to intermittency

• Clean coal and CCS alongside renewables can provide security of supplies and near zero emissions, at no greater cost

• …..and represent a major economic opportunity for Scotland

CCS offers an opportunity for economic benefit on the scale of the oil industry

• Global market for thermal power plant is 1041 Bn $ to 2015, 75% coal• Global CCS market will be £100Bn/year• Lord Oxburgh (former chairman of Shell) “CCS will be an industry as big as the oil industry

world wide”

• Scotland is well placed to benefit– Oil and gas industry

– Edinburgh and Heriot Watt Universities and BGS Scotland

– Consultancies including Mott Macdonald, SKM

– Doosan Babcock for power plant boilers and carbon capture

The scale of the challenge for target emissions reductions (UKCCC)

UK CCC Page 38, Figure 2.1

UKCCC Report Nov2008Overall judgement on global deployment of electricity technologies

Page 54, Figure 2.10

Global power generation abatement in 2050 (IEA BLUE Map scenario)

Page 71, Figure 2.23

80 CCS power projects/year

(eg 28 x 800MW coal and 52 x 500MW gas) from about 2020

Implications for Policy - UK and Scotland

• Consenting process to require all large combustion plant/fossil fuel power plant emitting more than 1Mt CO2/yr to be built capture-and-storage-ready

• Seek international agreement to make CCR mandatory for both coal and gas

• UK CCS regulations in place by 2010• Three coal and one gas large scale CCS demonstration projects in UK, operational

by 2015 (an appropriate share to meet EU, G8 and IEA objectives and maintain a leadership position for UK industry) funded from EU 300M EUAs and auction revenues

• Develop strong incentives by 2010, in addition to the carbon price, to support a second tranche of CCS projects (to be committed by 2015 and operational by 2020)

• Development of a strategy to implement CCS on all CCR plants (coal and gas) on fast- track timescales– eg enabling legislation for an EPS of 150g/kwh for all plants (new and CCR) emitting above

a tonnage threshold

– must also recognise need to retain some older coal and gas power plants on the system to provide back up

A commensurate ambition for CCS in Scotland

• Two CCS demonstrations in Scotland by 2015, one coal and one gas• 2.4GW advanced supercritical coal with CCS to replace Longannet by 2020• 1.2 GW CCGT/CHP with CCS to replace Peterhead by 2020/5• And one other 1GW plant to replace Torness - to be decided around 2018

• Delivers a power generation mix for Scotland that – Would be near- zero emissions by 2025

– Ensures security of supplies (gas issues) and firm power on demand (cf wind intermittency)

– Sets an example that other major users of fossil fuels could copy

• All should use CCS technologies from Scottish companies capable of exploiting the global market and generating economic benefit and employment here on a scale comparable to the oil and gas industry

• Create many thousands of skilled jobs in construction and operation of CCS plants

CCS and Renewables in Scotland - an Alternative Scenario “Carbon Clean”

• We have modelled the electricity system in Scotland and looked at how to achieve– decarbonisation by 2025

– security of supplies

– firm generation in response to demand

– and a more economic mix

• Principles– Sufficient capacity in Scotland to meet peak demand and export clean electricity

– Utilise existing grid and power plant sites

– Kick-start CCS as a basis for a major new industry in Scotland

– Set an example to the world

• Alternative Scenario “Carbon Clean” compared to Existing plant mix and the two Scenarios explored by SKM in their report of Nov 2008 for the Scottish Government

2010…… Carbon Clean Scenario…. 2030 SKM, 2030Existingmix

0

2

4

6

8

10

12

14

16

18

SKM BaseCase

SKMDominant

Renewables

2005 2010 2016 2020 2025 2030 2030 2030

GW

Imports

Coal

Gas

Coal CCS

Gas CCS

Tidal

Onshore wind

Offshore wind

Nuclear

Storage

Hydro

Generation Capacity Installed

Carbon Clean Scenario SKMExisting

Intermittency of wind generation – impact has to be recognised

• SKM report:

“Combined Scottish wind generation output will be 10% or less for around 20% of the time (ie one in five winters on average will experience wind power levels of 10% or less at times of peak demand)”

So for one winter in five or one day in five we must completely (90% or more) backup the wind capacity with firm power

• Turner UKCCC report also recognises that renewables will need full backup by firm power but requires this to be clean

• And the backup power generation must be able to follow daily variations in demand and balance the wind generation

-50% in 5 hours

Almost zero wind generation on the coldest day of the winter

Sources: VdN, UCTE

Flexible fossil power needed to provide instant power to balance intermittency of renewables and variations in demand

(GW)

0

10

20

30

40

50

60

70

6

Time (h)

Co

nsu

mp

tio

n (

GW

)

Other Power

Germany,

March 18th, 2007

20

40

60

0

10

30

50

70

Wind Power

Best Case Scenario

for Wind generation in a day

12 18 240

Sources: VdN, UCTE


(GW)

Time (h)

Co

nsu

mp

tio

n (

GW

)

Wind Power

Other Power

Germany,

April 13th, 2007

Average day for Wind generation

0

10

20

30

40

50

60

70

6 12 18 240

20

40

60

0

10

30

50

70

Sources: VdN, UCTE


(GW)

Time (h)

Co

nsu

mp

tio

n (

GW

)

Wind Power

Other Power

Germany,

June 11th, 2007Worst case scenario

for Wind generation in a day

0

10

20

30

40

50

60

70

6 12 18 240

20

40

60

0

10

30

50

70


0

1

2

3

4

5

6

7

8

9

SKM BaseCase

SKMDominant

Renewables

2005 2010 2016 2020 2025 2030 2030 2030

GW

Imports

Gas

Coal

Gas CCS

Coal CCS

Tidal

Onshore wind

Offshore wind

Nuclear

Storage

Hydro

De-rated generation capacity vs peak winter demand

Peak Demand- Average Winter


0

10

20

30

40

50

60

SKM BaseCase

SKMDominant

Renewables

2005 2010 2016 2020 2025 2030 2030 2030

TW

h

Imports

Coal

Gas

Coal CCS

Gas CCS

Tidal

Onshore wind

Offshore wind

Nuclear

Storage

Hydro

Annual Electricity Generation

Scottish demand

Future demand

Exports

Emissions Intensity for Overall System

0

50

100

150

200

250

300

350

400

SKM BaseCase

SKMDominant

Renewables

2005 2010 2016 2020 2025 2030 2030 2030

g/k

Wh


Annual Emissions from Power Generation

0

2

4

6

8

10

12

14

16

SKM BaseCase

SKMDominant

Renewables

2005 2010 2016 2020 2025 2030 2030 2030

Mt

Gas CCS

Gas

Coal CCS

Coal

Existing Carbon Clean Scenario SKM

- 90%

Demonstration Phase Requires Funding to Fill the Economic Gap

0

10

20

30

40

50

60

70

80

90

€/tonne CO2

Ec

on

om

ic

ga

p

DEMO PHASE (~4GW)

EARLY COMMERCIAL PHASE

(~20 GW installed capacity)

MATURE COMMERCIAL PHASE

(~ 80 GW installed capacity)

Demonstration phase:CCS not economically viable. Public contribution necessary for some portion

Carbon price forecast; impact of new policy not included

Estimated costs of CCS Commercial phase:CCS expected to be commercially viable, as costs and CO2 price reach similar levels

26

Average Cost of Electricity Generation (COE)

0

10

20

30

40

50

60

70

80

90

SKM BaseCase

SKMDominant

Renewables

2005 2010 2016 2020 2025 2030 2030 2030

£/M

Wh


Early opportunities for CCS Demonstration – are we ready?

• UK CCS competition –underway. SP are one of three short listed bidders• EU programme for 10-12 demos funded from 300M EUAs from the new entrant reserve

– Call in late 2009

• EU proposed economic regeneration package has earmarked 250M euro for UK CCS– Early spend sought if package approved

• EU voluntary agreement to spend 50% of Auction revenues on climate change mitigation and adaptation

• RDAs, especially Yorkshire Forward, are developing CCS schemes• Conservatives policy statement “The low carbon economy – security, stability and green

growth” proposes to fund– Pipeline networks

– 5000MW of CCS Demonstration projects

– CCS costs for additional coal power plant

• We need more urgent action within Scotland to prepare for these opportunities

Tomorrow’s WorldHow to deliver clean and secure power and set an example of global relevance

Doosan Babcock are committed to development and global implementation of

cleaner power plants - clean coal, clean gas, nuclear and renewables as rapidly as the

market allows

We can set an excellent example to other countries which will build fossil fuel power

plant if we insist on building all coal and gas plants capture and storage ready in parallel

with actions to demonstrate, and then implement, properly regulated and monitored

CCS

Thank you for your attention

how to deliver clean and secure power and set an example of global relevance mike farley 10.2.2009...

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