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Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written.

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Presentation on theme: "Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written."— Presentation transcript:

1 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Clean Coal Commercialization Progress and Opportunity GE Energy University of Texas – Austin September 14, 2011 By: Doug Heguy Commercial Leader Gasification Licensing

2 Agenda Introduction to GE Gasification (“Clean(er) Coal”) Technology Description Comparison to conventional coal Clean(er) Coal Project Developments Commercial realities/policy implications Profile of a government program 3 cases Summary/Policy implications General Discussion Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner.

3 Power & Water Energy Services Oil & Gas Aviation Healthcare Transportation Aviation Financial Commercial Finance Energy Financial GE Money Treasury Appliances Lighting Cable, Film, Network International Sports & Olympics GE – corporate overview Energy Technology Infrastructure GE Capital Media, Home & Business Solutions More than 300,000 employees 2010 revenue of $150.2B Founded 125 years ago & operating in 100 countries Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner.

4 Drilling & Production Refinery/Petrochemical LNG and Pipeline Pipeline Solutions Industrial power generation Global Services GE Energy Gas and Steam turbine generators Renewable energy Gas engines Nuclear Energy Gasification Water & Process Technologies Smart grid Solutions for measurement and control technology Contractual Services Environmental services Parts & Repair Transmission and Distribution Power & WaterOil & GasEnergy Services More than 90,000 employees 2010 revenue of $37.5B Operating in 140 countries Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner.

5 GE Power & Water … power generation platforms Gas turbines –Heavy duty (40–500MW) –Aeroderivatives (18-100MW) –Combined cycle systems Coal –IGCC –Gasification Licensing –Steam turbines ABWR & ESBWR Adv nuclear fuel CANDU fuel & services Reactor & field services Performance services Nuclear isotopes Wind –Land based –Offshore Solar –Grid connected –Stand alone Jenbacher –Gas engines 0.3-3MW –Fueled with waste gas Thermal Renewables Nuclear Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner.

6 GE Gasification Profile Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. World leader in Gasification Technology 73 licensed facilities in commercial operation 21 licensed facilities in engineering, design & construction Duke Edwardsport Indiana coal 618 MWe net electricity Commissioning – 4Q 2011

7 Duke Energy: Edwardsport IGCC plant November 2010

8 The Basic Chemistry of Gasification C x H y + H 2 O + O 2 → aH 2 + xCO For example: 4 CH + 2 H 2 O + O 2 4 H 2 + 4 CO (Hydrocarbon) (Water) (Oxygen) (Hydrogen) (Carbon Monoxide) Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Water Shift Reaction: CO + H 2 O => CO 2 + H 2

9 9 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Gasification Technology Refineries Chemicals Coal to liquids Ammonia Oxochemicals:Butanol, Ethylhexanol Hydrogen Steam Power Methanol Formaldehyde MTBE Acetic acid Amine DME Urea Ammonia nitrate/sulfate Syngas (H 2 + CO) Power (IGCC) Greenfield Polygen Refueling Site repowering Transportation fuels Gasification MethanationSubstitute natural gas Feedstocks Coal Pet coke Asphalt Heavy Oil Vacuum Residue Natural Gas

10 10 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Typical Gasification Facility Five basic systems Gasification Syngas Cooling Water Shift Reator Syngas clean-up Air separation system Power NH 3 Methanol H 2 Separation Coal Slag Air Air/N 2 CO 2 Sulfur Hg Clean fuel Heat Electricity or O2O2 Chemical products

11 11 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Efficient pollutant removal Pre-Combustion PM, Hg, Su Pulverized coal Pollutants are removed after the coal is burned The gas volume treated is 300 times the gas volume of an IGCC plant Combustion produces large quantities of waste & consumes more water than IGCC IGCC Gasification cleans the syngas before combustion High pressure & low volume provide favorable economics for pollutant removal IGCC offers increased fuel diversity, reduced emissions, and increased siting & permitting flexibility Boiler SCR ESP/ FF Carbon Injection FF FGD WESP CO 2

12 12 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Advanced PC/SCPC IGCC NGCC 0.00 0.05 0.10 0.15 SO 2 NOx Average of Recent Permit Data Best Individual Plant Level Lb/MMBTU Water Consumption Mercury Removal PCIGCC With IGCC, Coal can Approach Natural Gas Emissions… 50%- 90% 90%+ PCIGCC 30% Less Source: GE internal data, average of 28 permits granted, applications and publicly reported emissions PM10

13 13 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. GE carbon island* option Option to GE’s IGCC Up to 90% pre-combustion carbon capture … flexible Full integration with GE’s IGCC solution Mark** VIe Interoperability with CO 2 transportation & storage Small footprint … 2 acres Delivers high purity CO 2 Reliable CO 2 separation process Install as greenfield or as a retrofit up to 65% CO 2 capture * Carbon Island is a trademark of the General Electric Company. ** Mark is a trademark of the General Electric Company Carbon Island

14 14 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Plant modifications for retrofit Shift integrated with LTGC Larger AGR Feed Prep. Gasifier RSC Internal Quench HRSG H 2 upgraded 7F GT G13 ST Carbon Island™ Retrofit Low temp. gas cooling (LTGC) AGR Feed Prep. Gasifier RSC Internal Quench HRSG 7F GT G13 ST Reference Plant CO2 Enrichment & Compression Compressed CO2

15 15 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Tradeoff: CO 2 versus Capital Cost 1 GEB reference plant baseline +30% Source: GE Energy internal data

16 16 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Carbon Island™ performance Total installed cost +~10% 585 MW output (from 630 MW) 33% efficient (from 38.5%) Tie-ins matched GT outages (Minimum plant downtime) Output/ Efficiency Drop ~ ($40 MM/yr) NG Eq. CO 2 Footprint Simple Cycle: 50% carbon capture (~1,100 lb/MWh) Combined Cycle: 65% carbon capture (~770 lb/MWh) Note: Illinois Basin Coal on ISO site with proven technology…Performance and CAPEX are coal- dependant

17 17 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Gasification US Project Realities Typical Project Profile Project Developer Led Limited resources (OPM) Banks define risk and uncertainty Pre-FC spending tension 5 years - $100 Million to get to NTP 3-4 years; $1.7 Billion – $ 3 Billion to construct 30 years to operate Sources of Project Uncertainty Time Market Interest rates/Credit availability Credit Energy prices New energy developments Regulation changes Permit changes EPC Risk Changes in policy goals Changes in client goals and management Uncertainty in Gov. Programs First-come-first-serve allocation process Can’t take award to a bank Funds commitment date

18 18 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Government Programs Supporting Gasification

19 19 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Example Government Program DOE Federal Loan Guarantee EPACT 2005 Support debt financing for projects that reduce GHG emissions; advanced coal, renewable energy, advanced T&D Process Selection as “Finalist” Government due diligence Draft term sheet Execute loan agreement ProjectProject StatusFunding Status Excelsior Masaba IGCCChanged to NGCC TX Energy (Eastman Chemical)Project modified and sold Tenaska TaylorvilleIllinois legislature has not issued Authority to Negotiate for this project Midwest Coal to SNG Permits and offtakes in place Revising project definition to include CO 2 solution Received draft term sheet Negotiating a conditional term sheet Mississippi Gasification Petcoke to SNG Negotiating offtakesReceived draft term sheet Western State CTLCompleting FEED on reduced scale project Stalled

20 20 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Ex. 1: Gulf Coast Petcoke to Chemicals Gasification License: 3Q 2008 Value Proposition Government Programs Status / Challenges Past Challenges CO 2 Solution

21 21 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Ex. 2: Midwest Coal to SNG Gasification License: Not signed Value Proposition Government Programs Status / Challenges Past Challenges CO 2 Solution

22 22 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Ex. 3: Western State CTL Gasification License: 1Q 2006 Value Proposition Government Programs Status / Challenges Past Challenges CO 2 Solution

23 23 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner. Summary/Discussion Points Summary: Gasification projects are expensive, long- term long-lead time projects. Risk management is critical. Government programs should explicitly identify what risks the government is absorbing, why, and the impact on the project being developed. CO 2 /EOR is critical element of successful coal projects at this time. Government programs can play an important role in encouraging development, but understanding project development dynamics and client are critical to achieving desired impact Discussion Points: What roll should coal play in the US energy industry? When contemplating coal use, how should the government weigh economic and security issues with environmental issues? Can coal use be contained? The US is building its first gasification plant in 25 years. China is building 1/month. Why? What are the long term implications? What is the CO 2 /EOR potential in the US? What role should the government play in developing CO 2 /EOR? Can/Should government choose winners and losers? What role should energy policy play in developing industrial policy, and vice-versa? Future Trends: Overseas investments in US projects

24 24 Copyright 2011 General Electric Company. All Rights Reserved. This material may not be copied or distributed in whole or in part, without prior written permission of the copyright owner.


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