Coal in the 21st Century: Challenges and Opportunities Presented at the Electricity 2020 Forum Grand Rapids, MN Dr. Michael L. Jones Senior Research Advisor Energy & Environmental Research Center Grand Forks, ND February 14, 2007

Humanity’s Top Ten Problems for the Next 50 Years 1. ENERGY 2. WATER 3. FOOD 4. ENVIRONMENT 5. POVERTY 6. TERRORISM AND WAR 7. DISEASE 8. EDUCATION 9. DEMOCRACY 10. POPULATION 2003 -- 6.3 billion People 2050 -- 10 billion People Richard Smalley, 2003 (1996 Nobel Laureate in Chemistry)

Colin J. Campbell, 2004

“Hubbert’s Peak” by Kenneth Deffeyes (2001) M. King Hubbert predicted U.S. oil production would peak in 1970. It did. The same approach predicts world oil production will peak within this decade. It will. The days of cheap energy from oil will then be gone.

Richard Smalley, 2003 (1996 Nobel Laureate in Chemistry)

Richard Smalley, 2003

Source: U.S. Department of Defense U.S. Energy Resources Source: U.S. Department of Defense

Bottom Line – New Middle East Source: U.S. Department of Defense

Opportunities for Coal Production of transportation fuels Liquids Hydrogen Electricity production

Transportation Fuels -- Challenges Oil resources – finite resource Alternative fuels (including electricity) Hydrogen Production Storage Distribution Coal – production of hydrogen, liquid fuels and electricity CO2 sequestration

Electricity Generation – Challenges Zero-emission power plants that produce electricity, chemicals, and liquid fuels cheaply Massive long distance electricity transmission Electrical storage

Coal’s Resurgence in Electric Power Generation

Generation Options Conventional combustion Coal gasification (IGCC) Indirectly fired combined cycle

Conventional Combustion Operational issues Environmental performance NOx Particulate SOx Metals CO2

Ash Deposition Phenomena in Utility Boilers 1. Coal Particles 2. Combustion 3. Early Combustion Products 4. Slag Deposit Formation 5. High-Temperature Fouling Deposit Formation 6. Low-Temperature Fouling Deposit Formation Coal + Air 1800°– 2400°F 1200°– 1800°F 2000°– 3000°F Slag  ‚ ƒ-„ … †

Environmental Issues SOx NOx Particulate Metals (Hg) CO2

Coal Gasification

IGCC Diagram Source: National Energy Technology Laboratory, U.S. Department of Energy

Opportunities for Low-Rank Coal Gasification High reactivity – Lower temperature gasification processes – transport reactor High sodium and calcium – Catalyzes gasification rates High moisture – Water for steam gasification, shift reaction, increased gas flow

What Is the Best Conversion Technology? Key Fuel Properties Moisture content Coal reactivity Caking properties Inorganic materials – Ash/slag and trace elements Sulfur levels Oxygen content

Lignite Gasification to Produce Liquid Fuels, Hydrogen, Electricity, and Carbon Dioxide Modified after Gray and others, 2004.

Fate and Impacts of Impurities on Gasification and Gas Cleanup 6 4 Cyclone 5 Coal Preparation and Upgrading/Slurry 7 2 3 Recycle Sulfur Removal And Ammonia Removal Gas Purification and Separation Syngas Cooler Hot Gas Filter 1 Coal/Biomass/Pet Coke Gasifier 1 2 3 4 5 Gasification Fuel Reactivity Partitioning (Vapor, Liquid, Solid) Slag Flow Bed/Ash Reaction Deposition Gas Processing/ Cooling Condensation Transport Deposition Growth and Removal Hot Gas Cleanup Particulate Hg Na Trace elements Halogens Quartz Fuel Prep and Upgrading Slurry Prep Drying Mineral Removal Blending Calcite Na+ Ca++ Pyrite 7 6 Sulfur Removal H2S --Metal Oxide Impact of Na, K Trace elements Hg Halogens Gas Purification and Separation Shift Reactions Separation and Purification

Examples of Current Experience Eastman Chemical Company's coal gasification plant High-sulfur Appalachian bituminous – 1300 ton/day Acetyl chemicals Over 22 years of operation Tampa Electric's Polk Power Station GE Energy (Texaco) gasifier – slurry-fed, single-stage, entrained flow Pittsburgh Basin and Appalachian coals, petcoke, and biomass – 2200 ton/day Medium-Btu syngas fired to produce electricity – 250 MWe DOE Clean Coal Project – 4- to 5-year demonstration Commercial operation began in 1995 SG Solutions – Wabash River E-gas (ConocoPhillips) slurry-fed, two-stage, entrained-flow gasifier Illinois Basin coal, petroleum coke 262 MWe (net) of electricity GE Energy (Texaco) gasifiers – slurry-fed, single-stage, entrained-flow quench gasifier

Examples of Current Experience (cont.) Shell Gasification (Nuon) Buggenum – Netherlands Shell gasifier – entrained flow with dry fuel feeding and recycled syngas cooling Range of bituminous coals 253 MWe of electricity Operation since 1998 Elcogas – Puertollano, Spain Prenflo gasifier entrained-flow system with dry fuel feeding Coal and petroleum coke 298 MW of electricity Began operating in 1998 Schwarze Pumpe Gmbh Future Energy Gmbh – entrained flow with dry dry feeding cooling screen design 130 MWth brown coal before 1992; waste oil slurries after Operation since 1984

Examples of Current Experience (cont.) Piñon Pine IGCC Power Project (Sierra Pacific) KRW fluidized-bed gasifier Utah bituminous, 0.5%–0.9% sulfur coal – 90 MW DOE Clean Coal Project – Problems during start-up and project was not completed HTW Demonstration Berrenrath, Germany High-temperature Winkler fluidized bed with dry feed 140 MWth of dried brown coal Methanol production Started operation in 1986, shutdown in 1997 with 67,000 hours GTI U-Gas Process Shanghai, China 1000 TPD, 8 gasifier low-pressure using bituminous coal Fuel gas for coke oven Started operation in 1995, currently moth-balled 70,000 hours

Advantages of Indirectly Fired Combined Cycles (IFCC) Operations very similar to pc-fired boilers Nearer-term technology Higher efficiencies – 45% when firing coal, over 50% with NG supplement Half the water usage of a typical steam-based plant because of the Brayton cycle Slagging heat exchangers are self-cleaning Much lower loss of heat transfer due to fouling Much less overconstruction

IFCC Schematic Coal Air Steam Generator Turbine Gas Hot Air Efficiency, 47.3% GT output, 161 MW ST Output, 150 MW Coal/Gas 65%/35% Generator Steam Turbine Ash Slag Coal Gas Radiant Air Heater Convective Selective Noncatalytic Reactor Zone Heat Recovery Steam Generator FGD Hot Air Air Key: FGD: Flue Gas Desulfurization GT: Gas Turbine ST: Steam Turbine

Technologies for CO2 Capture Absorption Adsorption Membranes Cryogenics Others Caustics Rectisol Others Physical Selexol Amines Chemical Inorganic Membrane Metallic Polysulphone Polyamide Organic Membrane Ceramics Others Cellulose derivatives Chemical Looping CO2 Hydrate Microbial /Algae Electro-chemical Pump Others Chemical (TSA) Zeolites ACs Physical (PSA,TSA) Metal Oxides Si/Al Gels

Methods for Reducing GHG Emissions Renewable energy technologies Advanced high-efficiency energy systems Improve efficiency on existing systems Reduce consumption of energy Sequester GHG emissions

PCOR Partnership Phase II Goals Increase public understanding of CO2 sequestration Perform field validation tests that develop: - MM&V protocols - Regional sequestration strategies - Best separation/source matches - Regulatory and permitting strategies - Environmental benefits and risks - Information needed to monetize C credits Continued regional characterization Regional partnership program integration

Regional Carbon Sequestration Partnerships The Regional Carbon Sequestration Partnership (RCSP) Program represents more than 216 organizations in 40 states, three Indian nations, and four Canadian provinces.

Partnership Benefits (cont.) Breaking news on our four regional field verification activities.

Summary Clean coal will be part of our future energy mix. Coal gasification will be one option. CO2 capture and sequestration will be part of future coal development activities. A range of power generation options will be used to meet our future energy needs.

Contact Information Energy & Environmental Research Center University of North Dakota 15 North 23rd Street Stop 9018 Grand Forks, North Dakota 58202-9018 www.undeerc.org Telephone No. (701) 777-5000 Fax No. (701) 777-5181 Dr. Michael L. Jones Senior Research Advisor (701) 777-5152 mjones@undeerc.org