Gasification & IGCC News:


Harsh Reality in Mississippi
Setback for Clean Coal and
IGCC Power Generation

Mississippi Supreme Court 
reverses PSC approval of 
Kemper County IGCC plant


The writing was on the wall
Even with the plant already under construction, issues regarding the cost and need for the plant persisted.   On March 16 the harsh reality came home to roost.  The high cost of a coal-based Integrated Gasification Combined Cycle (IGCC) power plant, especially in the face of cheap natural gas and low demand, has abruptly caused a major setback for the Kemper County IGCC project in Mississippi.

In a 9-0 vote the state supreme court  reversed an approval by the Public Service Commission for the $2.8 billion 582MW power generation project.

In its decision, the court said that the May 2010 approval failed to demonstrate that the plant would benefit the utility's customers, as required by law, and sent the case back to the PSC.

Plant already under construction
Mississippi Power is already building the 582-megawatt the plant, which had been awarded more than $680 million in federal grants and tax incentives, including $270 million from the U.S. Department of Energy's clean coal power initiative.

The status of these federal funds are unknown, and the DOE is yet to issue a statement.

Mississippi Power officials said that they were reviewing the court ruling but declined further comment, according to wire services.

Sierra Club Behind Challenge
The Sierra Club, which challenged the PSC approval to build the plant commented that ruling "has dealt a severe blow to the project in the sense that they (Mississippi Power) are back to square one."

"It's going to be very difficult for an unbiased observer to say that this plant is a good idea given the current state of the energy market, the natural gas market and the economy," said a Sierra Club lawyer.

A distinct possibility exists that the plant will ultimately go forward as a natural-gas fired combined cycle, using the Siemens gas turbines already purchased. There could be plans designed into the plant for future conversion to IGCC using Mississippi lignite feedstock when economic conditions can justify it.    It is noted that this is only speculation, and that neither the PSC nor Southern Company has as yet made any statement in this regard.

PSC does 'flip-flop'
Mississippi Power is the smallest utility in the Southern Company system, and has a customer base of less than 200,000.    In 2010, the three-member PSC initially ruled that the company failed to prove that the costly plant would benefit its customers.

About a month later, however, the commission voted 2-1 to allow the plant to be built under revised conditions, including raising the cost cap by nearly $500 million to $2.88 billion (almost $5000 per net kW).

The lone Mississippi PSC commissioner who voted against the project both times, called Thursday's Supreme Court ruling "a major victory" for Mississippi Power customers.

"Untried technology"?
The dissenting commissioner, Brandon Presley, claimed that the plant is based on using "untried technology," and that "the customers (of Mississippi Power) have all the risks along with a 45 percent rate hike to boot."

The plant is designed to use a gasification technology developed by Southern Co and KBR (Kellogg Brown & Root) to burn Mississippi lignite. The so-called TRIG (Transport Integrated Gasification) design is based on long-proven catalytic cracking tower design used in refineries, but has, to date, operated as a coal gasifier only at small scale at the DOE advanced systems test facility in Wilsonville, Alabama.

However, according to a September, 2009 release,  and subsequent updates, it was expected that the first commercial-scale TRIG gasifier would be operating in Guandong Province, China before the end of 2011.

Current information on the actual status of the Guandong project is still being researched.

GASIFICATION & IGCC NEWS

China to build compact
coal gasification demo
unit for P&W Rocketdyne

After decades of US development 
Chinese agree to take on commercial 
demonstration of rocket-based coal
gasification technology.

From Pratt&Whitney Rocketdyne Press Release

CANOGA PARK, Calif., Feb. 2, 2012 – Pratt & Whitney Rocketdyne (PWR) has signed a negotiation framework agreement with two Chinese energy industry companies to design, construct and operate a commercial-scale advanced gasification demonstration plant in China’s central eastern Henan Province. 

PWR, developer of the so-called "advanced compact gasification technology", says that the agreement is a "key step toward commercializing technology designed to lower the cost of coal gasification and provide an alternative fuel source that reduces water use and carbon dioxide emissions."

Under the framework agreement, Zhongyuan Da Hua Group Company Ltd. and East China Engineering Science & Technology Company will share development costs for construction and operation of a demonstration plant with PWR.

Zhongyuan Da Hua Group Company Ltd is a wholly-owned subsidiary of Henan Coal Chemical Industry Group Co. Ltd., a state-owned enterprise in China Henan Province. Henan Coal, the 2nd largest coal company in China specializes in coal-to-gas projects. 

East China Engineering Science & Technology Company, has more than 40 years of experience in coal/chemical production facility engineering, procurement and construction, and has completed more than 2,000 projects throughout China and 10 other countries.
 

According to PWR, its advanced rocket-based gasification technology provides a higher-efficiency and lower-cost alternative to current gasification systems.  Estimates are that the capital cost using PWR technology would be 10 to 20 percent less than conventional gasification plants .  In addition, it is expected that carbon dioxide emissions would be reduced by up to 10 percent and water usage by up to 30 percent. 

The PWR technology has been under development for decades.  Early phases of R&D enjoyed the support of the US government.  More recently, PWA  has collaborated with ExxonMobil Research and Engineering Company, with Canada’s Alberta Innovates – Energy & Environmental Solutions (EES) and the Illinois Department of Commerce and Economic Opportunities (DCEO).   PWR has also granted a worldwide license to Zero Emission Energy Plants, Inc. (ZEEP) to use the technology in the development of commercial facilities.

PWR, a part of Pratt & Whitney, a United Technologies Corp. company and a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and commercial building industries.

For more information, go to: www.PrattWhitneyRocketdyne.com. 

 

Gasification and IGCC in the news

A bright spot for IGCC:

DOE moves to release funding 
for Texas Clean Energy Project

According to today's Fossil Energy Techline, the US DOE issued a Record of Decision (ROD) that – along with a signed cooperative agreement – will allow federal funding to be used to help build the Summit Power Texas Clean Energy Project - an advanced first-of-a-kind clean coal power plant.

The ROD and cooperative agreement between DOE’s Office of Fossil Energy (FE) and Summit sets in motion continued federal cost-shared funds for the project, to be built just west of Midland-Odessa, Texas.

The 400MW facility is a "poly-generation" plant, combining IGCC power generation, urea production, and CO2 capture for use in enhanced oil recovery in nearby oil fields.

The project will be partially funded with $450 million from Fossil Energy's Clean Coal Power Initiative.  About half of this will come from the funds allocated by the American Recovery and Reinvestment Act of 2009 for such projects.

DOE’s action to issue the ROD was reached after considering, among other things, the project’s potential environmental impacts and the options for mitigation of the impacts.

"The Texas Clean Energy Project is vitally important...... and a significant step forward that demonstrates the US commitment to developing clean energy technologies and reducing emissions of greenhouse gases," said Chuck McConnell, FE’s Chief Operating Officer.

The plant will convert sub-bituminous coal into hydrogen-rich syngas and CO2. The syngas and high-quality steam will be fed to the combined-cycle plant to produce electricity.  The facility will integrate Siemens' IGCC technology and Linde Rectisol® acid-gas removal technology to capture 90 percent of the CO2 from the syngas—about 3 million tons per year.

A portion of the captured CO2 will be used to produce urea for fertilizer while most of it will be used for enhanced oil recovery  with monitoring, verification, and accounting to demonstrate the permanence of geologic storage. The CO2 will be transported through existing regional pipelines to the oil fields of the west Texas Permian Basin, the largest CO2-EOR region in the world.

Of the 400MW of electrical power generated by the combined cycle plant, about half will be used on site and the other half will be delivered to the power grid. The plant will also produce sulfuric acid, argon, and inert slag as minor products for sale in commercial markets.

According to Summit, sale of CO2  will generate about one-third of the project's gross revenues.

The project is expected to create an average of 650 jobs during construction, with a peak of 1,500 workers. The project’s operational workforce is expected to be approximately 150 workers.

The current schedule is for TCEP to become operational late in 2014 or early in 2015.  This assumes that financial closing will take place early in 2012.

Gasification & IGCC in the news:

Texas Clean Energy
IGCC Still on Track

Summit close to PRB coal

deal for Texas IGCC plant

Summit Power Group, developer of the Texas Clean Energy Project,  is "probably within a month" of closing on Powder River Basin coal supplies for its $2.7 billion Texas Clean Energy Project near Odessa.  So said a company official Wednesday, Aug. 24, at the American Coal Council's Coal Market Strategies conference in Colorado Springs, Colorado.

The TCEP involves a 400-MW integrated gasification combined cycle (IGCC) power plant -- scheduled to start construction next year and enter service in 2015.  It will use 2  million ton/year of PRB coal, says Barry Cunningham, Summit managing director of project development.

Summit is talking with three PRB producers for supplies and is finalizing a contract with one of them, Cunningham said, declining to disclose names.

The business plan for the "polygen" project relies heavily on revenue from the production of byproducts, what Cunningham termed a "diversified revenue stream."

Revenue will come from 2.7 million ton/year of compressed CO2 to be sold for oil production at nearby wells, he said. The plant will capture 90% of its CO2, making it one of the world's highest CO2-capturing plant projects, Cunningham said.

One ton of CO2 yields 2.5 to 3 barrels of additional oil production, he said.

But urea production for agricultural fertilizer is expected to be the biggest component of the plant's revenue stream at 46%, he said.

All told, the plant will yield 190 MW net for power sales to the grid, Cunningham said, elaborating on the high cost of using self-generated power for the plant's CO2-capture system. This process "cannibalizes about 50% of the electricity" production, one conference participant remarked.

 Last month, Gas Turbine World reported that someone close to the project commented that the key issue for TCEP is to keep capital costs in check as it approaches the banking community for project finance.   This positive news about a pending coal supply contract should also help move it in the right direction.

---

COAL GASIFICATION NEWS:
Texas Clean Energy IGCC being readied for financing

TCEP reaches major milestone with signing MOU for PPA

The Texas Clean Energy Project (TCEP) is nearing the point of lining up a group of banks to arrange project financing.

So says one industry leader close to the project.

"The key to achieving the next big step will be keeping capital costs in line,"  he said.

Last week, TCEP took an important step forward with the signing of a memorandum of understanding (MOU) for the purchase of half of the electricity produced by what will be one of the world’s most advanced and cleanest coal-based power plants. 

Under the 25-year agreement, CPS Energy – a municipally owned utility serving San Antonio, Texas – will purchase electricity generated by the first-of-a-kind commercial clean coal power plant starting in mid 2014.

TCEP, a 400MW IGCC facility located near Odessa, TX will capture 90% of its CO2 – approximately 3 million tons annually – more than any power plant of commercial scale operating anywhere in the world.

The project was originally proposed as the losing candidate from Texas for the ill-fated FutureGen IGCC project, which was to be built in Matoon, IL.

In January 2010, DOE awarded a cooperative agreement to Summit Texas Clean Energy to design, construct, and demonstrate an IGCC power plant that can co-produce high-value products and capture CO2.

The CO2 captured from TECP will be used for enhanced oil recovery (EOR) in the West Texas Permian Basin. EOR is a way to squeeze additional hard-to-recover oil from older fields, and is an increasingly important contributor to U.S. oil supplies.

Additionally, the plant will produce urea, a high-value chemical, and smaller quantities of commercial-grade sulfuric acid, argon, and inert slag, all of which will also be marketed.

Summit has selected Siemens gasification and combined-cycle technology for the project, and Fluor was awarded the EPC contract.

CPS Energy signed the MOU to purchase 200MW from Summit Energy's TCEP, or half of the plant's electric energy output. In announcing the agreement CPS Energy President and CEO Doyle Beneby stated that the IGCC plant will be cleanest coal-fueled power project ever permitted in Texas.

Ironically,  five years ago, the utility decided against building its own IGCC plant and instead invested $1 billion in a new 750MW conventional coal-steam plant that was just completed.  At the time, the utility commented that IGCC was "not ready for prime time".

U.S. EPA Administrator Lisa Jackson said in a statement released at the signing ceremonies that  “San Antonio is stepping up to lead Texas and our nation into a clean energy future....."

On the same day CPS announced that it plans to shut down its two-unit late-1970s vintage  JT Deely coal station  to avoid spending as much as $3 billion for environmental equipment needed to upgrade the 871MW plant to comply with pending EPA regulations.


From DOE Fossil Energy TECH LINE and other sources

Kemper County IGCC plant "on schedule and budget"

GULFPORT, Miss.

Construction of Mississippi Power Co.'s Integrated Gasification Combined Cycle (IGCC) power plant in Kemper County is on schedule and on budget, the company's head says.

Last year, the Mississippi Public Service Commission approved the company's proposal for the project and in December, ground was broken.

As a result of a law the Mississippi Legislature passed in 2008, the cost of the plant will be passed on to ratepayers in stages while the project is being built. In its approval for the project, the PSC set a cap for the cost of the plant at $2.88 billion.

In a recent speech given by Mississippi Power chief executive Ed Day he said the company aims to keep the cost below the cap. The goal is to have the plant operating in 2014.

"Internally, we really only talk about $2.4 billion," Day said.

The plant has been fought by the Mississippi Sierra Club, which has concerns over environmental aspects of the project, along with the company's plans to pass construction costs on to ratepayers. The Sierra Club contends the plant is dirty, expensive and unnecessary and that natural gas would have been a better fuel source.

The company contends that the price of natural gas is much less predictable than that of lignite coal, which the plant will use. The company says lignite is abundant in Mississippi and represents the best option.

Day said there's a chance large fuel cost savings by using the coal could result if natural gas prices rise substantially over the next few years. Typically, about 50 percent of a ratepayer's power bill goes toward fuel costs.

"We know what (price) the coal will be mined at, within a small tight range, it's just now a matter of what will gas do, and how high will it go," Day said. "There's got to be a natural fuel savings to the customer over long periods of time. That's kind of what wins the day."

The increase on a customer's power bill could range from as much as 33 percent, according to the company, to as high as 48 percent, according to the Sierra Club.

Mississippi Power has said those increases could be phased in over 10 years.

Editor's note: At $2.4 billion, the nominal 600MW Kemper County plant will cost $4000/kW to build. A new natural gas fired combined cycle plant would cost less than one-quarter of that amount. For the total cost of energy (covering investment, fuel cost and other operating expenses) to be the same, natural gas price would have to climb from the current $4 per million Btu to about four times that level. Although those high prices are paid for natural gas today in places like Japan, plentiful supplies in the US are expected to keep the price low for the foreseeable future.

2010 GTC Conference Wrap-up:

IGCC on the move
despite obstacles

Five US IGCC power projects under construction or being developed will add almost 2500MW over the next 3-5 years.


Once again, a large and far-reaching turnout was attracted by the annual Gasification Technologies Council/EPRI conference attesting to the continued broad interest in the status of project and technology development connected with gasification of coal and other feedstock. 

More than 600 attendees gathered from all over the world attended the 3-day Washington DC event.  The range of topics presented over covered the gamut - from the booming commercial coal-to-chemicals industry in China to the emergence of new gasification-based technologies for the conversion of biomass to synthetic natural gas and liquid fuels.

The November-December issue of Gas Turbine World magazine features comprehensive coverage of  key presentations made at the conference, with focus on major commercial-scale projects under construction and actively under development.  A copy of this convenient wrap-up is now available at this link.

Summit Clean Energy Texas
coal-based IGCC / Polygen
plant gets air-quality permit

First-of-a-kind project passes
major regulatory hurdle


The proposed $2.2 billion "clean coal" plant in West Texas has passed a major regulatory hurdle, receiving approval from the Texas Commission on Environmental Quality for an air-quality permit earlier this week.

Summit Power Group's project is to use Wyoming coal while employing integrated gasification combined cycle (IGCC) technology to convert the coal to a clean "syngas", which will be used to produce electricity and other products, such as urea for fertilizer production. The plant is also designed to capture 90 percent of carbon dioxide emissions from the process and will be a "first-of-a-kind" plant in Texas, Summit said in announcing the permit.

"This is a milestone moment for America's energy economy and this project," said Summit Chairman Donald Hodel, who was energy secretary during the Reagan administration.

"We are delighted to be building this project in Texas, where federal, state and local elected officials have all worked effectively toward the same objective, namely to bring near-zero-emissions coal technology to the world marketplace," Hodel said.

Construction to start 2nd half 2011

The plant is to be built on 600 acres in Penwell, 15 miles southwest of Odessa. Construction is to begin in the second half of 2011 and operations should start in late 2014, said Laura Miller, Texas projects director for Summit and the former Dallas mayor.

The project "will be an economic boon to West Texas, creating more than 1,500 jobs at the peak of construction, 150 high-wage permanent jobs when the plant is operational, and 200 additional jobs in periods of major maintenance," Summit said.

The project has had a high profile because of the advanced technology it will employ. It has received $450 million in federal grants and therefore must undergo an environmental impact assessment, which is under way.

Earlier this year, Summit announced that the West Texas plant will employ technology and equipment for both the gasification process and the combined cycle power generating unit to be supplied by Siemens Corp.

"Overall cleanest" coal plant

Summit said the plant will be "overall the cleanest coal-fueled power project ever permitted in Texas," capturing not only the bulk of CO2 emissions, but also 99 percent of the sulfur, more than 95 percent of the mercury and more than 90 percent of nitrogen oxides.

Chemical processes will convert coal into clean-burning industrial gases used to generate electricity. The process creates a "pure stream" of CO2 that will be captured and sequestered, according to Summit.

The captured CO2 will be diverted to West Texas oil fields to boost oil recovery. This will complement or replace naturally occuring CO2 currently being supplied by pipeline from outside of the area. Reportedly, approximately one-third of the project's operating revenue will be derived from the sale of CO2 for this purpose.

The Summit plant is rated at 400MW gross generating capacity, but that is reduced to 214MW net output as a result of the heavy on-site plant power consumption to support the conversion process and the processing of plant byproducts. That still is enough capacity to power more than 200,000 homes, based on an often-cited yardstick of each megawatt providing enough power for 1,000 homes, Miller said.

Source: Ft. Worth Star Telegram
jzsmith@star-telegram.com

Miss. Power breaking ground
on Kemper County IGCC plant

Source: WLOX DeKalb, MS

Mississippi Power will break ground today on its next generation of power plants.

The company touts the $2.4 billion Kemper County Integrated Gasification Combined Cycle ("IGCC") Plant as a step toward energy independence in Mississippi.

The company fought a long battle to get to this stage, including questions from the state Public Service Commission and protests from environmental groups. One of the big issues was how Mississippi Power would pay for the plant.

The company had originally proposed that it be allowed to pass along construction costs to customers right away. After hearings with the PSC, the company reached an agreement to delay adding those costs to power bills until 2012.

Mississippi Power selected Kemper County for the plant site because it has huge lignite coal reserves that remain largely untapped. Mississippi Power will take the lignite and turn it into a gas to be used to produce electricity.

Construction of the Kemper County plant will create about 1,000 jobs. Mississippi Power expects to create 260 permanent jobs. The first two stages of construction are scheduled to take all of 2011, with construction of the plant in 2012 and 2013. The Kemper County plant is expected to begin operations in 2014.

Miss. Power's website says "the local lignite will provide decades of low-cost fuel and avoid huge price swings associated with uncontrollable fuel markets. It is the lower cost fuel available - and with a 4 billion ton reserve in Mississippi - we Mississippi Power can secure a stable fuel source while reducing our dependence on foreign fuel for future generations, due to its abundance and affordability."

Ed note: The nominal 600MW (net) IGCC plant will utilize the Southern Co/KBR "TRIG" air-blown gasifier integrated with two Siemens SGT6-5000F gas turbine generators, the hot exhaust of which produces steam to drive a steam turbine generator. Southern Co. is the parent company of Mississippi Power. The project will enjoy a substantial financial boost from Federal tax credit incentives. The South Mississippi Electric Power Association has agreed to take a minor equity stake in the project.

The plant will include capture of 65% of the carbon in the lignite feedstock, giving it a carbon footprint approximately equal to that associated with a natural-gas fired combined cycle plant. The captured CO2 is expected to be fed into a pipeline for use in enhanced oil recovery or other uses.

2010 Gasification Technologies Council
Annual Conference Papers Now Available On Line

The 2010 GTC conference is now history, and quite an event it was. It took place November 1-3 in Wash DC and there were plenty of important project updates and technology developments that highlighted jam-packed program.

The event attracted more than 600 attendees from all over the world, and from a myriad of industries related to the growing application of gasification technologies as a preferred way to utilize a variety of energy feedstock.

With permission of the GTC, we are providing a copy of the conference program and direct links to all of the presentations.

Look for special coverage of the conference highlights in the upcoming issue of Gas Turbine World Magazine.

Conferences Conference Presentations

Jump to a date:
Monday, November 1	Tuesday, November 2	Wednesday, November 3

Sunday, October 31
1:00 - 3:30 pm	GTC Fall Membership Meeting
4:00 - 7:00	Conference Registration - Registration Desk
5:00 - 7:00	Opening Reception - Exhibit Hall
top ↑

Monday, November 1
7:00 am	Conference Registration and Check-In - Registration Desk Continental Breakfast - Exhibit Hall
8:00 am	Opening Sessions & Introductions - Marriott Ballroom
8:30 am	Keynote Address
Matthew L. Wald The New York Times
9:00 am	Project & Technology Updates I Session Chair: Lee Schmoe, Bechtel Corporation
E-Gas Technology 2010 Outlook Phil Amick, ConocoPhillips Updates on Key Projects on Three Continents Keith White, GE Energy - Gasification Heavy Residue Gasification in Today's World Michiel Mak, Shell Gasificaion & Clean Coal Energy Siemens Technology Advances and Project Development Activities Harry Morehead, Siemens Energy, Inc. KBR’s Transport Gasifier - Technology Advancements & Recent Successes Siva Ariyapadi, Kellogg Brown & Root
10:30 am	Break - Exhibit Hall
11:30 am	Project & Technology Updates II Session Chair: David Denton, Eastman Chemical
Further Developments and Commercial Progress of the BGL Gasification Technology Hans Hirschfelder, Envirotherm GmbH Update on New Projects & Design Development with the Lurgi FBDB Gasifier Max-Michael Weiss, Lurgi GmbH Technical Update of the MHI Air Blown and Oxygen Blown Gasifier Hiromi Ishii, Mitsubishi Heavy Industries Overview of the Kemper County IGCC Project Using Transport Integrated Gasification Randall Rush, Southern Company Gasification OMB Gasification - Industrial Application Updates of Slurry Feeding and Developments of Dry Feeding Prof. Haifeng Liu, Institute of Clean Coal Technology
1:00 pm	Lunch - Exhibit Hall
2:30 pm	Emerging Biomass & Secondary Materials Gasification Opportunities I Session Chair: R.A. Olliver, Aplethora Energy Services
PRB Coal and Coal/Biomass Gasification Activities at Emery Energy Company's New Pilot Facility Benjamin Phillips, Emery Energy Uhde Biomass and Coal Gasification: Applying Fluidized Bed and Entrained Flow Gasification Karsten Radtke, Uhde Corporation Biomass Gasification for the Production of SNG: A Practical Route through Available and New Technologies Rosa Domenichini, Foster Wheeler S.p.A.
4:00 pm	Break - Exhibit Hall
5:00 pm	Emerging Biomass & Secondary Materials Gasification Opportunities II Session Chair: R.A. Olliver, Aplethora Energy Services
Plasma Gasification: Integrated Facility Solutions for Multiple Waste Streams Pieter van Nierop, Alter NRG Corp. Poornima Sharma, Technip USA, Inc. TPRI Technology and Future Fuels Projects Updates William Douglas, Future Fuels LLC Coskata's Syngas-to-Ethanol Platform Ralph Corley, Coskata, Inc.
6:00 pm	Adjourn
6:00 - 8:00 pm	Reception - Exhibit Hall
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Tuesday, November 2
7:00 am	Conference Registration and Check-In - Registration Desk Continental Breakfast - Exhibit Hall
8:00 am	Keynote Address
Donald Hodel Chairman and Senior Vice President, Summit Power
8:30 am	Energy Market & Environmental Gasification Drivers Session Chair: Neville Holt, EPRI
Coal to SNG via Gasification: Efficiency, Environmental and Economic Benefits Dale Simbeck, SFA Pacific Implications of Greater Reliance on Natural Gas for Electricity Generation Catherine M. Elder, Aspen Environmental Group POSCO Gwangyang SNG Project Cliff Keeler, ConocoPhillips A New Look at Lignite: A Central European Perspective Wojtek Ksiazkiewicz, SNC Lavalin A Strategic Fuel Switch From Natural Gas to Local Lignite: Development of the Komsomolsk Gasification Project Marco Kanaar, Gasification Solutions
10:00 am	Break - Exhibit Hall
11:00 am	Gasification's Carbon Management Advantage Session Chair: Michael DeLallo, WorleyParsons
Overview of the DOE Industrial Carbon Capture & Storage Program Darren Mollot, U.S. Department of Energy, Fossil Energy Pathways to Improved IGCC Performance and Economics with Carbon Capture and Storage Ron Schoff, EPRI Advanced Hydrogen and CO2 Capture Technology for Sour Syngas Jeff Kloosterman, Air Products & Chemicals, Inc. CCS Options & Cost Reductions with New SELEXOLTM Flow Schemes Raj Palla, UOP LLC Wandoan IGCC with CCS Project - Development Challenges & Opportunities Chris Walker, Stanwell Corporation
12:30 pm	Lunch - Exhibit Hall
2:00 pm	In Situ Coal Gasification Session Chair: George Gruber, Black & Veatch
Update on the Linc Energy Chinchilla UCG Project Don Schofield, Linc Energy Swan Hills in Situ Coal Gasification and Power Generation Doug Shaigec, Swan Hills Synfuels
3:00 pm	Break - Exhibit Hall
4:00 pm	Addressing Project Economics Session Chair: Doug Todd, Process Power Plants LLC
Coal Gasification: Delivering Performance in Chinese Operations & Developing Technology Deployment Solutions Jim Volk, Shell Gasification & Clean Coal Energy The Cost Estimating Process for the Taylorville Energy Center Jim Welniak, Tenaska Revving Up Reliability, Availability & Maintainability: Applying Experience to Improve Plant Performance DeLome Fair, GE Energy - Gasification New Technologies and Projects Based on Topsoe's Knowledge of Downstream Gasification Technologies Jens Perregaard, Haldor Topsoe A/S Cleanly Unlocking the Value of Low Rank Coal Carrie Thompson, Synthesis Energy Systems Reduction of CAPEX in Coal Milling and Drying Units Tobias Korz, Loesche GmbH
5:30 pm	Adjourn (evening open)
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Wednesday, November 3
7:00 am	Conference Registration and Check-In - Registration Desk Continental Breakfast - Exhibit Hall
8:00 am	Advances in Gasification Technologies I Session Chair: Jenny Tennant, U.S. DOE/NETL
ConocoPhillips E-STR Technology Development for Lignite Gasification Albert Tsang, ConocoPhillips Scale-up of the RTI Warm Syngas Cleanup Process at the Polk Power Station IGCC Raghubir Gupta, RTI International Accelerating Commercialization and Deployment of Advanced Gasification Technology Through Multiphase Modeling Chris Guenther, U.S. DOE/NETL Ion Transport Membrane (ITM) Technology for Lower-Cost Oxygen Production Robert Steele, EPRI Building on History: the Next Generation of Technology Joe Zuiker, GE Energy, Gasification
9:30 am	Break - Exhibit Hall
10:30 am	Advances in Gasification Technologies II Session Chair: Phil Amick, ConocoPhillips
Compact Gasification Development & Test Status Alan K. Darby, Pratt & Whitney Rocketdyne Results and Evaluations of the 5,000 Hour Durability Test at the Nakoso Air Blown IGCC Plant Tsutomu Watanabe, Clean Coal Power R&D Co., Ltd. Low-Swirl Combustion Technology for Advanced IGCC Systems David Littlejohn, U.S. DOE/LBNL Rectisol Wash Acid Gas Removal for Polygeneration Concepts Downstream of Gasification Thomas Haberle, Ulvi Kerestcioglu, Linde Engineering
12:00 pm	Conference Adjourns
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FUTUREGEN IGCC + CCS
ALIVE AND WELL - IN TEXAS
WHILE MATTOON GETS SHAFT

DOE shifts FutureGen technology to oxy-combustion
boiler retrofit and moves plant site to Meridosa IL


On August 5, the news was finally out in the open: the US DOE and the FutureGen Alliance had quietly struck a new deal that totally changes the face of the FutureGen project.

They are calling it "FutureGen2".


Enter oxy-combustion retrofit
Instead of continuing along the rocky path that effectively duplicates Summit Energy's Texas Clean Energy (IGCC) Project - already receiving some $350 million in DOE funding -and other IGCC+CCS projects, FutureGen2 will take the form of an oxy-combustion boiler retrofit of an existing 200 MWe pulverized coal-steam plant in Meridosa, IL – some 150 miles west of Mattoon.

So, what is left for little old Mattoon - the official winner of the original competition for the FutureGen IGCC project?

Well it could be worse. With FutureGen2 they get more than they would have gotten the first time the project was killed back in December, 2007.

But now, rather than providing a site for a new $2 billion state-of-the-art power plant, they get to host the end of a pipeline carrying the CO2 collected at the Meridosa plant, and to supply a place for the long-term storage deep under 400 acres of rural farmland.

The good news
Perhaps Mattoon feels otherwise, but the good news is that the announcement of FutureGen2 is a big step forward.

The announcement actually included the naming of a bona-fide host utility (Ameren Energy), and the major contractors - B&W and Air Liquide - to supply the new oxy-combustion boiler system that will produce steam to power one of the now-idle 200 MWe steam turbine generators at the Meridosa site.

The other good news - to this observer - is that the US DOE - in spite of the expected political fireworks - has shown signs of some real strategic thinking going on behind the scenes.

And for Mattoon, the region will be at the hub of a regional CO2 transportation infrastructure now being given a jump start by the project.

Change was coming
The fact that the Texas Clean Energy (IGCC) Project had received a $350 million award under Round 3 of DOE's Clean Coal Initiative, and is moving ahead nicely with a front-end engineering design (FEED) study being carried out by Siemens and Fluor - made it virtually impossible for the DOE to continue support of FutureGen as a parallel "state-of-the-art" IGCC project.

Other IGCC+CCS projects in Mississippi and California also appear to be moving ahead with DOE funding and/or other forms of government financial support.

Clearly, FutureGen missed it's window of opportunity and the choice was clear - kill it again or have it emerge in a different form. Opting for change has again saved the project.

Oxy-combustion retrofit of existing coal-steam plants is recognized globally as an important option for the future of coal-based power generation in a carbon-restrained world.

In that light, the announcement of FutureGen2, although coming as a surprise, immediately made a lot of sense to anyone keeping an eye on the situation.

US needs oxy-combustion demo
Supporters of IGCC technology (as well as those in and around Mattoon) might bemoan the loss of what might have been substantial government support of another new IGCC+CCS plant.

But, in my opinion, the change in FutureGen's direction is the right way to go.

DOE's own studies have shown the economic benefits of oxy-fuel combustion technology as a means for retrofitting existing coal plants to achieve real reductions in CO2 emissions.

Moreover, there are already a number of significant oxy-combustion demonstration projects underway in Europe, where it is widely accepted that retrofit for CO2 capture is an imperative.

Yes, Mattoon, it may be difficult to swallow yet another disappointment, but the US needs to support the development of its own oxy-combustion technology, and to support a commercial-scale demonstration of the technology.

With so many old coal-steam plants scheduled to be shut down due to their high emissions and huge carbon footprint, it could be that retrofit with new oxy-combustion boilers will prove to be the most cost effective way to keep these old plants online.

Is oxy-combustion ready?
At the very least, the parallel development of the Texas Clean Energy Project and FutureGen2 will provide an excellent way to obtain actual field data from the two main competing clean-coal technologies, operating at commercial scale, thus helping the US map out the future of coal-based power generation.

Is oxy-combustion technology ready for the scale-up to 200 MWe? Some think not - and say that FutureGen2 may be doomed to failure without more R&D. But B&W has already operated a pilot test unit, and the scale-up risk is considered to be manageable.

It looks like we'll all find out before too long - as long as FutureGen2 can get on track and avoid missing this new window of opportunity.

Dr. David H. Archer
Father of coal-based IGCC
1928-2010

Dave Archer, IGCC Pioneer - Westinghouse R&D
Adjunct Professor - Carnegie Mellon University

I guess that it's a personal thing with me, but the way I see it was Westinghouse's Dave Archer ("Dr. Dave") who should be considered as the father of the IGCC power plant concept.

And I'm saddened by the passing this past Thursday of an old friend, a nice guy and a technology pioneer.

Coal in gas turbines?
It was fall, 1973, when I joined the Westinghouse Gas Turbine Systems Division, and the Arab Oil Embargo was just taking effect. My first assignment, I soon learned, was to join the marketing effort that was going to save our business.

The days of cheap oil were over, and the buzz was all about "alternative fuels" for gas turbines. I was told to call Dr. David Archer at our R&D Center and learn all about the one idea that was going to save us. I soon learned that he was working on new ways to use coal in gas turbines!

Coal in gas turbines? Of course. What else? Cheap and plentiful domestic coal.


Combined cycles just taking hold
Ironically, the nascent concept of combined cycle power generation using large oil- or gas-fired gas turbines was just beginning to take hold. Record levels of orders were rolling in from all over the country. But almost all of these orders were now being canceled due to uncertainties in the global fuels market.

At the same time, the Clean Air Act of 1972 had just been passed, and the pressure was on the industry to find a way to cleanly use high sulfur coals. The use of scrubbers on exhaust stacks was seen as technically unsound, and much too expensive.

Were these parallel major developments to mean the end for both large coal-fired steam plants and for combined cycle plants at the same time?

Was nuclear power really the only answer? (Anyone remember "Power too Cheap to Meter"?)

Was my career in gas turbines going to be a short one?

Luckily, there were believers
Luckily for Westinghouse gas turbines (and for Siemens some 25 years later?) there were at least a few in upper management who strongly believed in the future of the combined cycle power plant. Even if traditional fuel sources were now in question, they saw ways for the concept to survive and grow. (Remember, this was even before the word "cogeneration" was invented.)

At the same time, these foresighted people saw how the combined cycle power plant could even provide an alternative way - through the use of gasification - to use high sulfur coal and still meet the tough new emission standards that were about to be promulgated under the Clean Air Act.

Enter Dr. David Archer - and IGCC
At the time Dave Archer, a manager at the Westinghouse R&D Center, was heading a group of mostly chemical engineers working on advanced concepts of integrating both fluidized bed coal combustion and air-blown fluidized bed coal gasification with combined cycle power generation.

When I called him to learn about the alternative fuels path for survival I felt that I was talking with the guru - and the creator of a great new concept that was not only going to save Westinghouse gas turbines but also give my new job a whole new meaning.

Although this all happened well before the coining of the term Integrated Gasification Combined Cycle, and the acronym "IGCC" (by EPRI? GE? both?), we were there - almost 40 years ago - at the beginning of a great idea.

Westinghouse was already testing low-BTU syngas fuel in modified W501B combustors, with DOE support, and we really thought that we were onto something very special.

A marketing strategy was developed to convince customers to stick to their plans to install our new PACE combined cycle plants. Our theme (sound familiar, even for today?):

• Gas or Oil - Now
• Syngas from Coal - Later

An idea that has come and gone - and come again
Well, a lot of water has flowed over the dam since then - and the idea of IGCC has come and gone and come again as the greatest thing since who-knows-what for improving the technology of coal-based power generation.

Entire careers in IGCC development and commercialization have also come and gone since I was first introduced to the idea by Dave Archer.

My own career with Westinghouse gas turbines lasted some 30 years. Unexpectedly, and thanks to Gas Turbine World, it returned to the promotion of IGCC about 5 years ago, shortly after I retired from Siemens-Westinghouse.

Happily, I heard again from Dave Archer when he saw the series of articles that we were publishing in support of gasification and IGCC. He was still working as adjunct professor at CMU teaching advanced power generation to graduate students.

In fact, it was only a few months ago that I last heard from him.

We had just posted the news item on the EPA putting pressure on the developers of the Kemper County (KY) IGCC project to consider natural gas as the primary fuel for their power plant, and their announcement that their IGCC plant was going "hybrid" - that is, separating the coal-to-gas plant from the gas-fired combined cycle plant.

Dave's comment - some 40 years after he fathered the concept as an answer to the Clean Air Act:

"It seems that EPA really wants to strangle IGCC before it takes a real breath.
Keep the faith?"

Fondly remembering Dr. Dave.

Harry Jaeger
Gasification Editor
Gas Turbine World Magazine


The following is reprinted from the Pittsburgh Post-Gazette:

ARCHER DR. DAVID H.
On Thursday, June 24, 2010, age 82 of Ross Township formerly of West View.

Beloved husband of the late Justine (Garnic) Archer. Loving father of Catherine Archer, Miriam (Mac) McCann, Amy Archer & Marsi (Lance) Thrash; brother of Miriam Jeske, proud grandfather of Charles, Andy, Justine & Vivian McCann, and Jordan David, Tim & Bailey Thrash; also survived by 6 great-grandchildren; longtime friend & companion of Myrna Rombach.

Family will welcome friends Monday 2-4 & 6-8 p.m. at the SCHELLHAAS FUNERAL HOME, INC., 388 Center Ave., West View 15229. Service will be in Emanuel's Ev. Lutheran Church, 10 N. Fremont Ave., Bellevue 15202 on Tuesday at 11:00 a.m.

Dr. Archer was retired, Westinghouse Electric Corp.; Adjunct Professor, Carnegie Mellon University; Organist and Music Director, Emanuel's Ev. Lutheran Church; Member, National Academy of Engineers; Member, American Guild of Organists.

If desired memorials may be made in Dr. Archer's name to the Intelligent Workplace Program, Carnegie Mellon University, P.O. Box 371525, Pgh., PA 15251-7525 or Emanuel's Ev. Lutheran Church.

Memorable Memorial Day for

Kemper County IGCC Project

Mississippi Power announces that it will move forward to construct a 582MW IGCC power plant as Public Service Commission relaxes financial restrictions on the project.

May 28, 2010

Mississippi Power, a wholly owned subsidiary of Southern Company, said that it will formally accept the terms of the revised order of the state regulators allowing for the construction of an advanced design IGCC power plant, which is expected to come online by 2014.

The utility said that the proposed plant would use Mississippi lignite. This locally available and relatively low-cost energy source will be added to its existing fuel mix of natural gas and coal, and will allow the company to mitigate the volatility and growing costs associated with other fuels.

Mississippi Power had asked the Mississippi Public Service Commission to reconsider conditions it had previously placed on the utility's plan to build the 582MW plant, including a recoverable cost cap of $2.4 billion.

The utility had claimed that the $2.4 billion price cap along with other conditions "created unacceptable risks to the company, our customers, our lenders and our investors."

After rehearing the case, the commission voted 2-1 to raise a price cap it placed by nearly $500 million to $2.88 billion and to allow the utility to begin charging customers for some plant costs starting in 2012, at least 2 years before it is expected to begin producing electricity.

Commission Chairman Brandon Presley, who opposed the plant in April as too risky for ratepayers, voted against the revised order. In a dissenting opinion, Presley criticized the action by the other two commissioners in acquiescing to the utility's objections.

Other project critics -- owners of merchant power plants in the region and at least one environmental organization -- said the utility was counting on high natural gas prices to justify the plant's economics at a time when the US natural gas supply is climbing with new production that should keep costs in check.

The Kemper County plant will employ an advanced air-blown circulating fluidized bed "transport" gasifier (the "TRIG" system) developed by Southern Company and KBR, in conjunction with the US Department of Energy. It will be the first commercial-scale application of the technology in the US.

An earlier attempt by Southern, KBR and the DOE to develop a commercial-scale demonstration plant in Orlando, Florida had failed to materialize.

In September 2009, KBR announced that it had been awarded a license and services contract in China with Beijing Guoneng Yinghui Clean Energy Engineering Co., Ltd that is expected to result in the first commercial scale installation of the TRIG system.

DOE/NETL Defines
Technology Pathways
to Lower IGCC Costs

Final report on benefits of advanced IGCC technologies now available


Back in early October this site reported on a study by the DOE/NETL Office of Analysis and Planning of the potential of advanced technologies currently under development to lower the cost of coal-based IGCC power plants with high levels of carbon capture.

Study results, presented at the 2009 Gasification Technologies Council (GTC) conference held Oct. 4-7 in Colorado Springs, predict that significant improvements are indeed possible. Now the final study report dated, November 2009, is available for downloading at the DOE/NETL website.

Severe economic impact of CCS
A number of studies supported by EPRI and the DOE/NETL (see Jan-Feb 2009 Gas Turbine World), have focused on the severity of the economic impacts of carbon capture and sequestration (CCS) for all forms of coal-based power generation.

For example, the impact of 90% CO2 capture on typical current-technology IGCC plants is to increase HHV heat rate by more than 16 percent (i.e. reducing plant efficiency from around 38% to below 32%). And the additional parasitic plant loads associated with CO2 processing and compression reduce net plant output by more than15 percent.

The combined overall effect is to increase total plant capital cost ($ per net kW) by over 35 percent and add at least 35% to the 20-year levelized cost of electricity (COE).

R&D aims at recouping CCS losses
In a drive to recoup losses in IGCC plant efficiency, and mitigate increases in plant capital costs due to adding CCS, the DOE has several advanced technologies under development with a well defined technology pathway for both near term and longer term improvements.

The NETL report "Current and Future Technologies for Gasification-Based Power Generation" (DOE/NETL- 2009/1384) provides estimates of the benefits of each element of DOE's broad portfolio of advanced power systems technology programs.

Presented roughly in order of expected commercial deployment, these programs are shown to significantly improve process efficiency, cut capital costs and substantially lower the COE for coal-based IGCC plants operating with 90% CCS.

Largest returns are expected of the following R&D efforts which are targeted at specific advances in design and performance:

• Advanced hydrogen turbine. Increases in efficiency and power rating will lower emissions and reduce $/kW total plant cost.
• Warm gas cleanup. Eliminates thermal penalty of conventional cold cleanup and reduces capital cost. Included is application of high temperature hydrogen transport membranes for CO2 separation.
  
• Ion transport membrane oxygen. "ITM" oxygen production greatly reduces power penalty and cost of cryogenic air separation.
• Gasifier technology. Improved gasifier materials, instrumentation and controls improves plant reliability and availability. Increasing plant time on-line goes directly toward lowering energy production cost per kWh.
  

Starting with a nominal 600 MW current-technology FA-Class IGCC plant with slurry-fed gasification, cold gas cleanup, and 90% CO2 capture and compression, progressive application of these advanced technologies is shown to more than restore plant efficiency to pre-CCS levels (to better than 40%), and to reduce capital cost ($/kW) and COE ($/MWh) by 32% or more.

The Nov-Dec issue of Gas Turbine World magazine features a summary abstract of the DOE/NETL study, highlighting the benefits of the various advanced programs being supported by the DOE.

Additional savings on horizon
Additional savings are on the horizon with progress being made in the development of other advanced IGCC technologies outside of the DOE R&D program.

One example is the revolutionary Pratt & Whitney Rocketdyne (PWR) compact gasification process, which involves the innovative application of rocket-based technology for the production of coal-derived syngas at high pressure and temperature.

Operating conditions result in improved process efficiency and greatly reduced pressure vessel volume (by 90%), leading to an estimated 50% reduction in gasification system cost. This would clearly have a major positive impact on IGCC economics.

In another presentation at the 2009 GTC conference, PWR reported on the status of their program, including their partnership with ExxonMobil and the Alberta Energy Research Institute. As scheduled, the 18 tpd compact gasification pilot test unit started operations at the Gas Technology Institute research facility near Chicago on November 5. Hot-gas testing is now underway, and initial results have reportedly been very satisfactory.

With their process pilot plan now in operation, PWR is said to be close to announcing plans for a commercial-scale demonstration project.

Gas Turbine World is looking forward to presenting an update of the progress of this very promising advanced gasification technology program, including initial test results and design performance data, in our upcoming 2010 IGCC Reference Guide.

Progress reported at 2009 GTC conference in spite of challenging times for coal gasification and IGCC

Construction of Edwardsport IGCC and progress of other key projects and technology improvements overshadow continuing uncertainty over CO2 regulations.

In the face of an extended period of globally cheap natural gas, economic downturn and capital shortages, topped by continuing uncertainty over pending greenhouse gas regulations, this year’s annual Gasification Technologies Council (GTC) conference kicked off in Colorado Springs with a message of a positive future for the industry.

Conference co-hosts Jim Childress, GTC executive director, and EPRI’s venerable Neville Holt each delivered opening remarks with a message of “difficult and challenging times” mixed with optimism over technology developments underway to address both economic and environmental obstacles.

Childress noted that, despite the down economy, registered attendance of almost 750 people demonstrates continued interest and strength in the industry.

The highlights of the conference were indeed positive and forward looking:

• Construction of the 630MW Edwardsport IGCC plant is more than 25% complete
• China continues to lead in new gasification installations and development
• FutureGen, ZeroGen and GreenGen are all progressing
• Cost-cutting advanced technologies moving ahead

This is the first of several postings planned to report on the 2009 GTC conference.

Visit the GTC website for access to all conference presentations.


Wyoming strikes sharp keynote
Keynote speaker, Hon. David Freudenthal, Governor of Wyoming, showed extraordinary insight into today’s challenging energy and environmental situation.

Wyoming, US’ leading coal producer, is in a “great position” to meet the energy needs, says the governor, “but we need more from the Federal government to put its words and promises into action.

All that we have gotten so far from Washington is symbolic crumbs – not substance.”

“With the likes of the Sierra Club being supported by the natural gas industry to fight coal utilization, large-scale clean-coal projects – and gasification in particular – need to succeed,” he continues.

For this to happen, he says, there needs to be CO2 legislation passed to provide some clarity to investors. “There is too much money sitting on the sidelines waiting for clarity, and there remains a lot of work to be done by Congress since current bills won’t do the trick.”

There is also a need for the same type of financial commitment for clean coal that the government has made to support wind energy, which is enjoying investment tax credits and other forms of financial support.

“Coal needs a level playing field,” concludes Gov. Freudenthal, “it is still our lowest cost option.”

Illinois on the move
Since gasification-based technology gives new promise to the use of high sulfur eastern coals, states such as Indiana, Illinois and Kentucky are proven to be very favorable locations for projects that will help revive their coal industries.

An upbeat presentation by Bart Ford of Tenaska described how strong state support is helping keep the Taylorville Energy Center project in Illinois on a forward tack.

That project, currently estimated to cost around $3.5 billion, is now configured as a “hybrid IGCC”, says Ford, where the gasification island will be operated to produce pipeline quality SNG, and the stand-alone 730MWe power block can be fired with SNG produced on site or from the natural gas pipeline. Sixty percent of the CO2 normally vented by the methanation process will be captured and delivered to a pipeline for remote geologic storage or for enhanced oil recovery

Ford praised supportive state policies that are enabling the Taylorville project to obtain favorable financing terms. For one thing, the project has qualified under the Illinois Clean Coal Portfolio Standard Law, which establishes a framework for developing coal gasification projects with carbon dioxide (CO2) capture and storage. The law, says Ford, requires emissions from these plants to be as clean as natural gas – and at least 50% CO2 capture.

Importantly, the law mandates 30-year power purchase agreements with qualifying “initial clean coal facilities”, and this has put the Taylorville project on track for financial closing early in 2010, according to Ford.

In a separate announcement, Harry Morehead, Manager of Gasification and IGCC Marketing at Siemens Energy, told the conference that Siemens Fuel Gasification technology has been selected by Tenaska to supply the gasifiers for the project. There was no similar announcement regarding the supply of the power block. Unconfirmed reports are that the owner’s engineer, Burns & McDonnell, is expecting to handle that under their scope.

FutureGen reborn
More optimism was displayed during a conference session dedicated to gasification power projects in development with carbon capture.

FutureGen Industrial Alliance’s David Brown talked about the “rebirth” of the advanced nominally 250MWe IGCC project to be sited in Mattoon, Illinois.

“It’s the right technology, and the right time”, says Brown about the US DOE-supported project that was all but killed at the close of the Bush administration due to its escalating costs. But with a new administration, and a correction in the way that the cost increase was determined, the project seems to be back on track.

Site selection and the environmental impact statement are completed, according to Brown, and a comprehensive cost estimate for a re-configured design will soon be published.

“The plant will initially operate at 60% carbon capture (i.e. natural gas equivalence) and will go to 90% capture in the third year of operation”, explains Brown. “At that level the advanced gas turbine will be operating on high-hydrogen syngas that will push well beyond demonstrated limits.”
The RFP for a turnkey gasification island was issued in September and selection of a contractor is pending further evaluation and budget approval. The new FutureGen project schedule shows startup late in 2013, and commercial operation a year later.



In next installment: ZeroGen (Australia) and GreenGen (China) make progress.

Bringing down the cost of IGCC
plants with Carbon Capture

By now, industry observers and especially regular readers of Gas Turbine World Magazine and this blog well understand the negative impact on coal-based power plant performance and costs associated with the various technical and regulatory proposals aimed at lowering CO2 emissions and to dispose of the waste CO2.

Several recent studies, notably those supported by EPRI and the DOE/NETL (see Jan-Feb 2009 GTW), have been focused on the severity of the economic impacts of carbon capture and sequestration for all forms of coal-based power generation.

For example, the impact of 90% CO2 capture on typical current-technology slurry-fed IGCC plants is to reduce HHV efficiency by more than 15 percent (from around 38% to below 32%).

And the additional parasitic plant loads reduce net plant output of 15 percent. Combined, the net effect is to increase total plant capital cost ($ per net kW) by over 35 percent and add at least 35% to the 20-year levelized cost of electricity (COE).

IGCC has advantage
NETL estimates that the impact for pulverized coal plants with 90% CCS is even a larger penalty - a whopping 85% increase in COE -- emphasizing a true advantage of IGCC technology in a carbon constrained world.

In a drive to recoup losses in IGCC plant efficiency, and mitigate increases in costs, the DOE has several advanced technologies under development with a well defined technology pathway for both near term and longer term improvements.

Most recent studies published by NETL show that the cumulative impacts of advanced technology programs are expected to improve the efficiency of IGCC+CCS plants by 8 percentage points and reduce capital cost and COE by over 30 percent.

Progress reported
Progress being made on a broad portfolio of DOE/NETL advanced technology development programs promises to significantly improve process efficiency, cut capital costs and substantially lower the cost of energy produced by coal based IGCC plants operating with carbon capture and sequestration.

Largest returns are expected of the following projects which are targeted at specific advances in design and performance:

• Warm gas cleanup. Eliminates the thermal penalty of cold cleanup and reduces capital cost of the process.
• Ion transport membrane oxygen. "ITM" oxygen production reduces power penalty and cost of cryogenic air separation.
• Advanced hydrogen turbine. Advanced gas turbine increases efficiency and power rating, lowers emissions and reduces $/kW total plant cost.
• Gasifier technology. Improved gasifier materials, instrumentation and controls improves plant reliability and availability.

At the 9th Greenhouse Gas Technologies Conference held in Washington DC late last year, Julianne Klara, a senior analyst with NETL, Pittsburgh, discussed the potential for these technologies to reduce costs in future IGCC plants.

An updated presentation of study results will be made at the 2009 Gasification Technologies Council conference being held in Colorado Springs, next week Oct 4-7.


Natural gas as the "bridge fuel"
The focus of DOE’s Clean Coal R&D program is on restoring the economic viability of coal-based power generation with carbon capture and sequestration (CCS) by applying advanced technologies to a gasification-based configuration.

Because of the steep environmental challenges currently frustrating new coal-based projects in the US, she maintains, the situation has created a dilemma for coal. Almost all new generating capacity being added is based on using natural gas fuel.

Although the use of this “bridge fuel” by utilities and developers alike is seen as the only viable alternative for reducing CO2 emissions at this time, recent history tells us that this alternative is fraught with risk of fuel cost volatility relative to coal.

The long-term solution for coal, according to the NETL study, is the technology needed to achieve the cost reductions and performance improvements to make coal-based IGCC plants with CCS more competitive with natural gas fired combined cycle plants.