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Company update – Doosan Babcock and Doosan Heavy

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Presentation on theme: "Company update – Doosan Babcock and Doosan Heavy"— Presentation transcript:

0 ‘How to deliver clean and secure power and set an example of global relevance’
Mike Farley Scottish Engineering /UNITE conference

1 Company update – Doosan Babcock and Doosan Heavy
Nuclear Thermal Turbine & Generator Desalination Casting & Forging Construction 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) OxyCoalTM 2 40MW pilot in UK PostCombustion Doosan Babcock offers HTC Purenergy amine capture technology to its global customer base in the UK.

2 Doosan Babcock R+D Plus
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

3 Supercritical Boilers
Abatement of CO2 by efficiency improvement of Pulverised Coal Plant EON 50+ project at Wilhelmshaven being tendered now Plant efficiency % NCV Best Available Advanced Supercritical Technology being supplied now 50 – 55% (Lower CO2 Emissions) 55 (-29%) 50+ 50 46% Doosan Babcock ASC Supercritical Boilers (-23%) 45 42% Meri Pori Hemweg New Chinese Orders 40 38% UK fleet Chinese fleet 38% 35 32% Sub Critical Boilers Older Plants 30 Year 1960 1980 2000 2020

4 Doosan Babcock partnership with HTC Purenergy
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 International Test Centre (ITC) for CO2 Capture - World Leader in CO2 Capture and Enhanced Oil Recovery Coal flue gas demonstration - Test Facilities at Boundary Dam ITC - Natural Gas flue gas capture Centre Absorption Column, 14 ft-6 in ID x high 119 ft Stripper Column, 12 ft-6 in ID x 77 ft high CCS1000 Modular Design 2008 Demonstration at SV Minerals - 50MW, includes new solvent (RS1), new packing material strategy, steam reduction

5 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

6 OxyCoalTM 2 Project Vattenfall The substantial contributions of:
the Prime Sponsor Sponsors University participants are acknowledged by Doosan Babcock Vattenfall

7 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

8 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

9 The scale of the challenge for target emissions reductions (UKCCC)
UK CCC Page 38, Figure 2.1

10 UKCCC Report Nov2008 Overall judgement on global deployment of electricity technologies
Page 54, Figure 2.10

11 Global power generation abatement in 2050 (IEA BLUE Map scenario)
80 CCS power projects/year (eg 28 x 800MW coal and 52 x 500MW gas) from about 2020 Page 71, Figure 2.23

12 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

13 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

14 2010…… Carbon Clean Scenario…. 2030
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 for the Scottish Government 2010…… Carbon Clean Scenario…. 2030 SKM, 2030 Existingmix

15 Generation Capacity Installed
Existing Carbon Clean Scenario SKM

16 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

17 -50% in 5 hours Almost zero wind generation on the coldest day of the winter

18 for Wind generation in a day
Flexible fossil power needed to provide instant power to balance intermittency of renewables and variations in demand Germany, March 18th, 2007 20 40 60 10 30 50 70 (GW) Best Case Scenario for Wind generation in a day 70 60 50 40 Consumption (GW) Other Power 30 20 10 Wind Power 6 12 18 24 Time (h) Sources: VdN, UCTE

19 Average day for Wind generation
Flexible fossil power needed to provide instant power to balance intermittency of renewables and variations in demand Germany, April 13th, 2007 20 40 60 10 30 50 70 (GW) Average day for Wind generation 70 60 50 40 Consumption (GW) Other Power 30 20 10 Wind Power 6 12 18 24 Time (h) Sources: VdN, UCTE

20 for Wind generation in a day
Flexible fossil power needed to provide instant power to balance intermittency of renewables and variations in demand Germany, June 11th, 2007 Worst case scenario for Wind generation in a day 20 40 60 10 30 50 70 (GW) 70 60 Flexible fossil power needed to provide instant power to balance intermittency of renewables and variations in demand 50 40 Consumption (GW) Other Power 30 20 10 Wind Power 6 12 18 24 Time (h) Sources: VdN, UCTE

21 De-rated generation capacity vs peak winter demand
Existing Carbon Clean Scenario SKM Peak Demand- Average Winter

22 Annual Electricity Generation
Scottish demand Exports Future demand

23 Emissions Intensity for Overall System
Existing Carbon Clean Scenario SKM

24 Annual Emissions from Power Generation
Existing Carbon Clean Scenario SKM - 90%

25 Demonstration Phase Requires Funding to Fill the Economic Gap
€/tonne CO2 Demonstration phase: CCS not economically viable. Public contribution necessary for some portion Estimated costs of CCS Commercial phase: CCS expected to be commercially viable, as costs and CO2 price reach similar levels Economic gap Carbon price forecast; impact of new policy not included CCS is not economically viable today, hence the need to pair public funding with corporate investments. This slide shows a schematic presentation of the development of CCS costs. Like all major new technology initiatives, the cost of an EU Demonstration Programme will be high and unrecoverable, but experience, technology development and economies of scale should drive the costs of CCS down. Indeed, for the current level of €60-€90 per tonne of CO2 for CCS is expected to fall to €35-€50 tonne per CO2 in the early commercial phase (2020+), when the total installed capacity will be ~20 GW. Further increase in the installed capacity to ~80GW will mature the learning curve, after which CCS costs are expected to fall even further to €30-€45 per tonne of CO2. DEMO PHASE (~4GW) EARLY COMMERCIAL PHASE (~20 GW installed capacity) MATURE COMMERCIAL PHASE (~ 80 GW installed capacity) 26 25

26 Average Cost of Electricity Generation (COE)
Existing Carbon Clean Scenario SKM

27 Early opportunities for CCS Demonstration – are we ready?
UK CCS competition –underway. SP are one of three short listed bidders EU programme for 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

28 Thank you for your attention
Tomorrow’s World How 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 28

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