Sixth Annual Conference on Carbon Capture & Sequestration

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1 Sixth Annual Conference on Carbon Capture & Sequestration Session Title: Retrofitting of Existing Coal-Fired Plants MHI s Post Combustion CO 2 Recovery Process for Coal Fired Power Stations: Requirement for a Large Scale Demonstration Plant Ronald Mitchell Environmental Plant Department - Mitsubishi Heavy Industries, Ltd. May 7-10, 2007 Sheraton Station Square Pittsburgh, Pennsylvania

2 INTRODUCTION The Issues The issue of Climate change is now in the homes and businesses of communities throughout the world Energy demand is young and cheap oil is becoming scarce Future impact of high prices and energy security? Recent expansion of global carbon markets Market mechanisms are a realistic way to deal with CO 2 emission reduction CO 2 industry regulation is coming - which side of the fence will you be sitting?

3 BACKGROUND Coal looks certain to remain the principal fossil fuel for Power Generation in the foreseeable future Clean coal technology development is great but what about the existing plants? CO 2 capture retrofit ability is critical MHI offers a solution today a commercially proven, high performance CO 2 capture process which has led to the construction of four CO 2 capture plants in the past 5 years CO 2 capture has a penalty but we can create a side revenue stream CO 2 sales for EOR now & emission trading later

4 COMMERCIAL DELIVERY RECORD Malaysia Petoronas 1999~ 200 t/d Urea Japan Chemical Co. 2005~ 330 t/d General use India IFFCO Dec 2006~ 450 t/d Urea India IFFCO Dec 2006~ 450 t/d Urea OTHER PROJECTS Project Status Flue Gas Source Expected on stream CO2 Capture Capacity (T/D) UAE China India Middle East FEED Complete Nat. Gas. Reformer FEED Complete Nat. Gas. Boiler Awarded Project Nat. Gas. Reformer Awarded Project Nat. Gas. Reformer

5 Evolution of MHI R&D Flue Gas CO 2 Recovery Projects Evolution ~ Nanko Pilot Plant (2 Tonnes/day) R&D for Process Improvement 1 Ton/Day Pilot Test Completed Long Term Demo. Plant Coal Fired Flue Gas Test Starts Large Scale Plant Design Ready Coal Fired Demo Plant Results Increased understanding of the effects of impurities on the system Nanko Pilot Plant 1 Ton/Day Pilot Plant Identifying and incorporating countermeasures for each impurity >4,000 hours of operation and experience Long Term Demo. Plant 10Ton/Day (1.4MW th ) Test results will facilitate scale up CO 2 capture for coal fired boilers 3000 Ton/Day (428MW th ) Design Completed Scale Up 6000 Ton/Day (956MW th ) Design 3000 Tonnes /Day Plant Large Scale Test Plant (2004~)

6 Coal Fired Long Term Demonstration Plant DEMO PLANT OUTLINE Client : Power Station, Japan Solvent : KS-1 Capacity : 10 T/D Feed Gas : Coal Fired Boiler (14.1 v% CO 2 ) Start-up : July 2006 Location : Nagasaki, Japan Development Results Increased understanding of the effects of impurities on the system (dust, SOx, NOx, etc.) Identifying and incorporating countermeasures for each impurity >4,000 hours of operation and experience Test results will facilitate scale up CO 2 capture for coal fired boilers This program is supported by the Japanese Government through Research Institute of Innovative Technology for the Earth (RITE) and J-POWER s cooperation.

7 Large Scale Coal-Fired CO 2 Capture Demonstration Plant WHY MHI? MHI has completed extensive R&D programs which features 17 years of robust initiatives leading to technology refinement and an advanced understanding of CO 2 capture from flue gas streams After successful completion of our small scale coal fired demo plant we are well placed to apply this technology to a larger scale coal fired demo plant. This will advance our understanding of the impacts and efficiencies of larger volumes of flue gas MHI has comprehensive experience and commercial delivery of CO 2 capture and large capacity FGD units

8 PROCESS FLOW FOR AMINE ABSORBTION Feature of Process: Comparison with MEA Process MEA KS-1 Circulation Rate Flue Gas Outlet CO 2 Purity : 99.9 % Regeneration Energy Solvent Degradation Solvent Loss Corrosion Inhibitor Yes No ABSORBER STRIPPER (Regenerator) C.W. Existing FGD Deep FGD Flue Gas Cooler or FGD + Deep FGD Flue Gas C.W. C.W. Reboiler Steam Pre-Treatment Facility for Coal Fired Flue Gas

9 CO 2 EOR in NTH AMERICA WHY? Large Number of oil fields in production decline Existing CO 2 infrastructure and mature downstream technology Regional reliance on cheap, local fossil fuels (coal) for power generation Recent Government shift regarding climate change policy (support through tax incentives for efficient coal use) Expected future inception of CO 2 regulation

10 CO 2 WHAT CAN WE DO? PROBLEM The issue of CO 2 and global warming is evolving faster than the world anticipated R&D requires significant time and resources How should we prepare for future CO 2 regulation? SOLUTION MHI offers a phased, realistic approach The logical next step is to apply a proven technology (such as MHI s) to a larger scale demonstration plant ( t/d) Then we move to commercial scale (~5000 t/d) and create a CO 2 business (electricity & CO 2 sales)

11 MHI s Proposed Phased Approach to Commercialization of CO2 Capture Technology for Coal Fired Boilers MHI s Operating Experience 1 t/d 2 t/d 10 t/d 200 t/d 330 t/d 450 t/d 800 t/d t/d 3000 t/d 5000 t/d Pilot & small scale demonstration experience (Nat. Gas & Coal) Commercial Experience with Natural Gas fired flue gas FEED Complete (Nat. Gas) Large Scale Demo (Coal) Basic Design Complete (Nat. Gas) Commercial (Coal)

12 Electricity & CO 2 Sales Model Evaluation CO 2 Capture Case + Electricity Sales + CO 2 Sales - CAPEX/OPEX - Energy Penalty Vs Business As Usual + Electricity Sales - Site Utilities (30 MW) Site utilities CO 2 Capture & Compression CO 2 Sales Price Feasible Zone of CO 2 capture case $20 $50 Sales Revenue ($M) 500 MW Total power output Electricity Price (c / kwh) 8 9

13 CONCLUSIONS Coal has a number of advantages distinguishing it from other fuels (price, stable supply & abundance) It will take a suite of technologies to make a difference. MHI s post combustion CO 2 capture process is available new and for retrofit and, most importantly, is commercially proven Governments must continue to play an important role in the promotion of large scale CCS demonstration projects and provide incentive for commercial application Large scale demonstration is an important step for solution of our energy (through EOR) and CO 2 problems we have the technology but do we have the aptitude?

14 Are you ready to tackle CO 2 emissions? Courtesy: The Age Illustration: Ron Tandberg THANK YOU

15 Further information; Ronald Mitchell Manager Business Development Environmental Plant Department Mitsubishi Heavy Industries Ltd., Yokohama, JAPAN Phone: Cell Phone: Web:

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