IEA Clean Coal Centre: building a

pathway to efficient, low emissions

coal use worldwide

Dr Andrew Minchener

General Manager

Presentation to two Joint Minerals Council of Australia

and ACA Low Emissions Technologies Roundtables

On 23 and 24 April 2014

Scope of presentation

• Overview of the IEA Clean Coal Centre

• Global challenges for coal utilisation

• Overview of global energy use to 2035

• Coal vs gas worldwide

• CCT HELE initiatives as precursors to CCS implementation

• Overview of the CCS technology options

• Broad comment on regional CCS programmes

• Hurdles to be overcome

• Final thoughts

IEA Clean Coal Centre

mission statement

The IEA CCC will disseminate to a wide community objective analysis

and information on the efficient, low emissions use of coal worldwide

according to a programme agreed by the Membership: In order to

achieve this objective, the focus of the IEA CCC activities comprises

three broad categories:

Towards zero emissions – including carbon abatement, emissions and effects, pollution

control technology, residues.

Coal utilisation and analysis – including coal properties, fuel handling, power generation

technologies, coal conversion technologies, and industrial uses of coal.

Economics and markets – including supply, transport and markets development,

country studies, capital and operating cost reviews of current and new build

technologies, including comparisons with non-coal options.

Services will be delivered through direct advice, review reports,

workshops and conferences, facilitation of R&D, provision of networks

and web based instruments.

Members of the IEA Clean Coal

Centre

Italy Japan

Republic

of Korea

UK

Glencore Xstrata

BHEL

Anglo American

Thermal Coal

USA

S Africa

Austria

Canada

Germany CEC

Beijing Research

Institute of Coal Chemistry

Australia

Coal

Association

NZ

Suek Electric Power Planning &

Engineering Institute of China

Banpu

Poland

Some of the products and services

offered by the Centre

Webinars

• 10th Workshop on Mercury Emissions

from Coal, Clearwater, Florida, USA, 22-

25 April 2014

• 3rd Workshop on Upgrading and

improving power plant efficiency,

Shanghai, China, 16-17 September 2014

• 2nd Workshop on Advanced Ultra-

supercritical power plants development,

Rome, Italy, 14-15 October 2014

• 4th workshop on Cofiring Biomass with

Coal, State College, Pennsylvania, USA,

5-6 November 2014

• 7th International Conference on Clean

Coal Technology, Krakow, Poland, May

2015

External initiatives

• Support with existing members

• More general outreach activities

• New member initiatives

• Possible collaborations

• Commercial contracts

Support with existing members

• Participation at BCIA Brown Coal

Seminar, Australia

• Participation at the 3rd Low Rank Coal

Symposium, Australia, and

• Participation in the young engineer

support programme

• Implementation of UCG workshop in

Australia

• Member visits to Australia

• Participation at UNEP BAT/BEP Working

Group on Minamata Convention in

Canada

• Discussions re clean coal power

efficiency improvements and events

opportunities in China

• Attendance at CIAB and WPFF meetings,

IEA, France

• Participation in various VGB events in

Germany

• Participation in Step Trec Conference,

India

• Member visits to New Zealand

• Attendance at International Coal and

Climate Summit, Poland

• Participation at 59th EXCO, Thailand

and in BANPU clean coal seminar

• Participation in the UK Team review

meeting

• Attendance at the Coal Research

Forum Combustion Meeting, UK

• Participation in Zimbabwe Energy

Conference, held in South Africa

• Participation in US EPA-AWMA

Information Exchange Meeting in USA

• Implementation of MEC 10 workshop in

USA

More general outreach activities

• Participation at the World CTX 2014

Conference, Beijing, China

• Participation at the International Power

Summit 2014, Munich, Germany

• Participation at the Asian Subbituminous

Coal Users Meeting, Penang, Malaysia

• Participation at the International Coal

Markets Seminar, Singapore

• Participation at the IChemE New

Horizons in Gasification Conference,

Rotterdam, The Netherlands

• Participation at the IEA/ESI coal

roundtable in Singapore

• Attendance at the IEA World Energy

Outlook presentation by Dr Fatih Birol,

London, UK

• Participation in the SCI event: A New

Age for Coal with Carbon Capture and

Storage, London, UK.

• Input to the 2nd Conference Organising

Committee Meetings for ECCRIA 10,

Nottingham, UK

• Participation in The Changing Dynamics

of Global Energy Markets meeting,

Chatham House, London UK

• Meeting at the US Embassy in UK to

discuss general coal technology and

CCS issues

• Participation at the IHS Pacific Basin

Coal Conference, Kauai, USA.

Strategic considerations for the IEACCC

• Greater emphasis on Asia, emerging economies and

developing countries

• Advancing the HELE concept as consistent with the case for

CCS

• Building up the dissemination and outreach activities

• Need to ensure that we can address the issues through the

continued provision of high quality, impartial information to

all stakeholders

Global challenges for coal utilisation

• Overview of IEA projections

• HELE initiatives

• Lending attitudes for new coal plant

• Regional variations for coal use

• Issues arising

IEA WEO 2013: Fossil energy resources by

type

The world's remaining energy resources will not constrain the projected energy demand growth to 2035 & beyond, but large-scale of investment is required

Total remaining recoverable resources

Proven reserves

Cumulative production to date

Coal Natural gas Oil

3 050 years

233 years 178 years

142 years

61 years 54 years

IEA WEO 2013: World energy

demand by fuel

Demand increases for all forms of energy, with gas growing the most; the share of fossil fuels in the world’s energy mix falls from 82% to 76% in 2035

1 000

2 000

3 000

4 000

5 000

1980 1990 2000 2010 2020 2030 2035

Mtoe Oil Coal Gas

Biomass

Nuclear

Hydro Other renewables

IEA WEO 2013: Growth in total primary

energy demand

Today's share of fossil fuels in the global mix, at 82%, is the same as it was 25 years ago; the strong rise of renewables only reduces this to around 75% in 2035

500 1 000 1 500 2 000 2 500 3 000

Nuclear

Oil

Renewables

Coal

Gas

Mtoe

1987-2011

2011-2035

the strong rise of renewables only reduces this to around 75% in 2035

IEA WEO 2013: Energy demand growth

continues to move to non-OECD Asia

Primary energy demand, 2035 (Mtoe)

China is the main driver of increasing energy demand in the current decade, but India takes over in the 2020s as the principal source of growth

4%

65%

10%

8%

8% 5%

OECD

Non-OECD Asia

Middle East

Africa

Latin America

Eurasia

Share of global growth 2012-2035

480

Brazil 1 540

India

1 000 Southeast

Asia

4 060

China

1 030

Africa

2 240 United States 440

Japan

1 710

Europe 1 370

Eurasia

1 050 Middle East

North America coal power

• In the USA, coal use has shown

a significant decline due to

displacement by lower cost

shale gas, leading to a boom in

low cost coal exports to EU and

Asia.

• However, current gas

availability in USA is actually in

decline as prices do not make it

economic to drill new wells to

maintain production levels. If

prices rise, consumers revert to

coal

• Gas exports may be essential

to ensure further development

of the US shale gas sector

• Diminishing returns to scale

and depletion of high

productivity low cost production

in the USA (EIA 2013) makes

future predictions very

uncertain

.

Coal power in Asia

Projection looks to be a significant

underestimate, just based on likely

capacity additions planned for

China and India

Coal power in China planned to

grow in absolute terms but fall in

relative terms in overall power

sector energy mix.

India’s plans less convincing but

the intention is to grow coal use

significantly, including use of

imports.

In both countries, coal use for

non-power applications is

expected to increase

considerably.

Projections need to better factor in

increase in coal use in SE Asia

Coal power in Europe

Within EU, low priced imports of

USA coal are fuelling a surge in

demand. New coal plants being

built and planned in Holland,

Germany and Poland. In many

countries, natural gas use is

squeezed between lower priced

coal and renewables obligations.

In Eastern Europe and the

Balkans, new coal plants are being

built with large market prospects.

Turkey represents a major market

for new coal power plant, both

using imported hard coal and

indigenous low grade coal.

Lignite keeping many of the lights

on in Germany

RWE’s WTA lignite drying process

Lignite drying

Vattenfall’s PFBD process

There should be cost savings in a new boiler that will largely offset

the cost of the drier (including elimination of beater mills and hot

furnace gas recycle systems, smaller flue gas volume). It will also

allow plants to have greater turndown

Coal power in ANZ-Oceania

Different drivers to EU but similar

trends.

Domestic gas prices rising due to

LNG demand for export.

Domestic gas use being squeezed

by the ongoing renewables

mandate and lower cost coal

power.

Comparative changes in coal, oil

and gas prices (World Bank 2013)

Shale gas facts of fiction?

Is shale gas plentiful, cheap and more climate

friendly than coal?

• IEAGHG study suggests that carbon footprint is quite high due to

methane escaping during fracking process

• USA shale gas is perceived to be cheap but elsewhere likely

extraction and transport costs will be higher

• In USA, wells produce at an average of $4/1000scf ($14/100 m3)

• If selling price falls below $2.50/1000scf, then almost no wells are

profitable

• Prices need to rise to $5-6 to make currently paid for leases

profitable from now on

• Prices need to rise to $7-8 to make new leases worth pursuing

• Diminishing returns to scale and depletion of high productivity low

cost production in the USA (EIA 2013)

Role of clean coal technology

High efficiency low emissions technologies are critical to maintain

coal based energy security and as a precursor to the longer term

deployment of CCS

Essential to assist developing countries in making this choice as

part of their efforts to escape from poverty through access to

reliable sources of power

Lending criteria by multi-lateral donors not overly helpful

Towards 50% cycle efficiency with

advanced USC technology

Metals used in boiler and turbine hot spots:

• Steels well proven in USC at 600ºC

• Nickel based alloys proving capable in

A-USC at 700ºC

Flue gas

Turbine

Mill Boiler

De-NOx EP De-S

Generator Condenser

Steam Water

Coal

CO2 Storage Pollutants to be reduced

•SO2, NOx, •Particulate matter

CO2

CO2 Capture

(2) Reducing non-GHG emissions

(3) Carbon Capture and Storage

(1) Reducing coal consumption

Technologies for cleaner coal generation

EP: Electrostatic Precipitator

HELE Technologies

Focus on technologies to reduce both GHG and non-GHG (NOx, SO2, PM) emissions.

N2, H2O

Decrease generation from subcritical Install CCS* on plants over supercritical

Increase generation from high-efficiency technology (SC or better)

Glo

ba

l co

al-

fire

d e

lectr

icity

genera

tion (

TW

h)

Supercritical

HELE Plants with CCS*

USC

Subcritical

*CCS (Post-combustion, Oxyfuel, Pre-combustion CO2 capture)

IGCC

Improve efficiency, then deploy CCS (IEA 2012)

* CCS fitted to SC

(or better) units.

Three processes essential to achieve a low-carbon scenario

Data for hard coal-fired power plants from VGB 2007; data for lignite plants from C Henderson, IEA Clean Coal Centre; efficiencies are LHV,net

CO2 emissions reduction by key

coal utilisation technologies

Energy Efficiency makes big change but deep cuts of CO2 emission can be done only by Carbon Capture and Storage (CCS)

>2030

but deep cuts only by CCS

Average worldwide hard coal

30.0%

1116 gCO2/kWh

38%

881 gCO2/kWh

EU av hard coal

45%

743 gCO2/kWh

State-of-the art PC/IGCC hard coal

50%

669 gCO2/kWh

Advanced R&D Hard coal

Latrobe Valley lignite (Australia)

28-29.0%

1400 gCO2/kWh EU state-of- the-art lignite

43-44%

930 gCO2/kWh

55%

740 gCO2/kWh

Advanced lignite

Drax, UK’s most recent 6*660MWe

Torrevaldaliga Nord 3*660MWe

Shar

e o

f C

CS

(1=1

00

%)

Efficiency improvement

CO2

abatement by CCS

Avera

ge C

O2 in

tensity f

acto

r in

2D

S

(gC

O2/k

Wh)

33% 34% 37% 42% 43%

Raising efficiency significantly reduces the CO2/kWh

emitted (source: IEA HELE Roadmap, Dec 2012)

Efficiency in 2DS

Impact of efficiency improvement

on CO2 abatement

Unhelpful policy drivers

• The World Bank has amended its lending policies for new coal-fired

power projects, restricting financial support to countries that have

"no feasible alternatives" to coal, as it seeks to balance

environmental efforts with the energy needs of poor countries.

• The European Bank for Reconstruction and Development has a

pragmatic approach to lending for coal power projects in that they

are supportive where a country has indigenous coal supplies, with

few alternative options, but intend to ensure acceptable

environmental compliance and an awareness of CCS. This could

be reflected in loans for new power plants being linked to some

level of CCS-readiness being included.

Boiler Air and coal Amine

scrubbing CO2 to

storage

N2, excess

O2, H2O, etc

De-NOx,

FGD, ESP

Post combustion

Flue gas scrubbing

Boiler Oxygen and

coal

Moisture

removal

CO2 to

storage

Recycle

combustion

gases

Oxyfuel combustion

Contaminants

removal

Gasification Shift reaction CO + H2

H2O

CO2 + H2 Separation

H2

CO2 to

storage Oxygen, steam

and coal

Pre-combustion

First generation CO2 capture processes

CCS status worldwide

Extensive activities under way in Europe, USA, Canada,

Australia, Japan and China

Some work beginning in Indonesia and elsewhere in SE

Asia

Very large amount of R&D on all aspects of CO2 capture

and CO2 storage characterisation

Several industrial scale pilot projects under way

Increasing focus on legal and regulatory issues

Many large scale integrated projects proposed (GCCSI) but,

apart from some EOR based initiatives, limited progress

being made to establish commercial prototype

demonstrations

Possible hurdles for CCS deployment

Technical issues are not the main worry. All three capture

routes will work; they will get better and cheaper from

learning by doing

Big issues are non-technical

Regulation – especially long term liability for storage

Finance – incentives are needed for investment

Public acceptance of overland transport and

underground storage

The way forward

• Coal extraction and utilisation are set to continue to expand over the next 2

decades

• Coal has an important role in a secure and sustainable energy future but it

will ultimately need to be a low carbon future

• Increasingly, the focus for coal use will be China, India and the rest of Asia

• While China is taking very significant steps to improve efficiency and limit

environmental impact, there is considerable scope to do better in many of

the other Asian countries by creating conditions to enable the use of

advanced, cleaner, more efficient technologies

• Need to incentivise best practice, high efficiency and low emissions, rather

than just focus on CCS.

• Knowledge transfer will remain important and the Clean Coal Centre can

fulfil a key role in disseminating technical, policy and regulatory information

on a global basis

For further information:

Visit: www.iea-coal.org

Phone: +44 (0) 20 8877 6280

Email: Andrew.Minchener@iea-coal.org