Clean Coal Technology in Future Energy Supply



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Clean Coal Technology in Future Energy Supply September. 10 th, 2014 Masayoshi Kitamura President J-POWER (Electric Power Development Co., Ltd.)

2 Table of Contents 1.About J-POWER 2. To Supply Stable and Cheap Electricity 3.World-Leading Clean Coal Technology ~solution for both of climate change and economical growth~ 4.R&D for Next-generation Technology ~ challenge for the future of coal-fired power generation ~

1.About J-POWER 3

Overview: Domestic Power Business The largest wholesale power company in Japan Leading coal-fired, hydroelectric and wind power generation Transmission service through the key trunk lines J-POWER s Facilities in Japan Share of Japan s Generation Capacity Coal-fired power plant 7 Hydroelectric power plant 59 Nuclear power plant * 1 Geothermal power plant 1 Transmission line approx. 2,400km * Currently under construction Others Coal Chubu Tohoku J-POWER 21% Kyusyu Chugoku Hokuriku Wind J-POWER 13% Tokyo Tokyo Kyushu Hydro 60Hz 50Hz Chubu Kansai J-POWER 20% (As of March 31, 2013) 4

Overview: Power Generation Capacity Overseas Total capacity Japan Wholesale Electric Power Business (regulated) 17 GW Our core business (Details on the next page) (As of March, 2013) 4 GW 22 GW * 18 GW Other electric power businesses (unregulated) 0.8 GW Thermal 0.5GW, Wind 0.3GW Trends in Power Generation Capacity (GW) 20 15 10 Coal-fired thermal 5 Hydroelectric 0 1950 1960 1970 1980 1990 2000 2010 Overseas Japan Established by the government (1952) Fully privatized (2004) * Capacity figures shown represent J-POWER s net ownership interest. 5

Overview: Coal-Fired Power Generation The current generation capacity is 8,412 MW (of which 4,300 MW is USC). Matsushima PS is Japan s first large-scale imported coal fired power plant, and Matsuura PS Unit 2 is the first ultra super critical (USC) coal-fired power plant. Takehara (Hiroshima) 1# 250MW(1967) 2# 350MW(1995) 3# 700MW(1983) Takasago (Hyogo) 1# 250MW(1968) 2# 250MW(1969) Ishikawa (Okinawa) 1# 156MW(1986) 2# 156MW(1987) Isogo (Kanagawa) Matsuura (Nagasaki) 1# 1,000MW(1990) 2# 1,000MW(1997) New 1# 600MW(2002) New 2# 600MW(2009) Matsushima(Nagasaki) 1# 500MW(1981) 2# 500MW(1981) Tachibanawan (Tokushima) 1# 1,050MW(2000) 2# 1,050MW(2000) Sub-critical Super critical Ultra super critical (USC) 6

2.To Supply Stable and Cheap Electricity 7

1952 1955 1960 1965 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Japan s Electricity Supply by Energy Resources After the oil crises in 1970s, Japan s energy policy has aimed an well balanced energy portfolio and was about to realize it in 2010, then Fukushima disaster happened. Challenge for Japan is to achieve a balanced energy portfolio while reducing nuclear energy. (TWh)( 億 kwh) 12,000 J-POWER Matsushima PS 10,000 8,000 新 Other エネ 等 RE Oil 石 油 等 LNG LNG 一 Hydro 般 水 力 & 揚 Pumped 水 Storage 石 Coal 炭 原 Nuclear 子 力 Commissioned in Jan. 1981 1 st laege scale imported coal-fired power plant carried out in combination with development of coal mine [2011 2012 2013] 新 Other エネ 等 Renewables 1.4 2.2% 1.6 2.2% 石 油 等 Oil 14.9% & Petro 14.4 18.3 14.9% 6,000 LNG 39.5 LNG 42.5 43.0% 43.% 4,000 2,000 Hydro & Pumped Storage 一 般 水 力 9.0 揚 水 8.4 8.5% 8.5% Coal 25.0 石 炭 27.6 30.3% 30.3% 0 原 Nuclear 子 力 10.7 1.0% 1.7 1.0% Source: Energy White Paper 2013, The Federation of Electric Power Companies of Japan (http://www.fepc.or.jp/english/index.html) ( 年 度 ) (Fiscal Year) 8

Capacity Factor by Fuel (10 power utilities total) Nuclear PS and coal PS are supplying power as Base Load due to their economical advantage. In Japan. Especially coal PS has stably maintained higher capacity factor. To make up reduced nuclear power generation, coal-fired power generation is now furthermore important for its stable fuel supply as well as economical advantage. 90.0% Coal Oil LNG Nuclear 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Agency for Natural Resources and Energy Outline of electric power supply and demand(2003,2005,2010) Japan Electric Power Survey Committee Japan Electric Power Survey Report 9

Change in Power Stations Operation Before Fukushima Accident, LNG was used for the middle load and oil for the peak. After Fukushima Accident, LNG is also used for the base, and oil for the middle, as nuclear for the base load has disappeared. before Fukushima after Fukushima Peak Hydro Power Consumption for pumping-up Pumped Storage Oil (Peak Load) Oil (Middle and Peak) Middle LNG (Middle Load) LNG (Base and Middle ) Coal (Base Load) Base Nuclear (Base Load) Run-off River, Geothermal reduced to zero Coal (Base Load) Run-off River, Geothermal 0 2 4 6 8 10 12 14 16 18 20 22 24 0 2 4 6 8 10 12 14 16 18 20 22 24 10

Characteristics of Energy Resources for Power Generation Energy resource portfolio for power generation is planned in balanced manner to achieve long term, stable, economical and clean supply of electricity considering pros and cons of each energy resource. It is necessary to understand not only the strong points but also possible weaknesses of each energy resource when discussing the energy portfolio of power generation. Energy Resource Fuel Supply Security Economics Global Warming Flexibility of Power Generation Note Pump Storage / Dam Hydro Possible to accommodate rapid change of Power Demand PEAK Oil Production is concentrated in Politically unstable countries. MIDDLE Natural Gas (LNG) Coal Caution is required to Global demand growth and competition. Require Large Discharging Facilities and Pipelines. Working to reduce CO2 emission such as CO2 Capture and Gasification. Dispersive construction of large plants are possible. BASE Nuclear Geothermal Run of River Hydro Necessary to upgrade safety measures and increase national acceptance. Too small compared with Fossil Fuel Generation. Anticipated to grow under Renewal Energy Law. 11

12 3.World-Leading Clean Coal Technology ~solution for both of climate change and economical growth~

Isogo Power Station 13

Emission Factor (kg-co2/kwh,net) Energy Efficiency(%) New Isogo: World-leading USC Coal-fired Power Plant Isogo Coal-Fired Power Plant opened in1967 New Isogo Coal-Fired Power Plant Unit1 opened in 2002, Unit2 in 2009 17% of CO2 Intensity improvement 1.00 Old unit 1&2 gross efficiency net efficiency New unit 1 45 Capacity 530MW 1200MW (265MW 2) (600MW 2 ) 0.75 40 SOx 60ppm 10ppm (20) NOx 159ppm 13ppm (10) PM 50mg/m3N 5 mg/m3n (10) 0.50 Emission Factor Emission Factor 1998 1999 2000 2002 2003 2004 2005 2006 2007 Fisical year 35 30 Numbers in ( ) are for Unit #1 Steam Subcritical Ultra-Supercritical Efficiency (gross HHV) 38% 43% CO2 Intensity (Net) 100 (base) 83 14

Installed gross thermal efficiency (%, based on HHV) 45% History of J-POWER s Energy Efficiency Improvements We achieved the world s highest level of thermal efficiency at Isogo PS unit 2 as a result of our continuous R&D for energy efficiency improvement for decades. Sub-critical Super-critical (SC) Ultra-supercritical (USC) Measures for improving generation efficiency Improve steam conditions Enlarge plant scale Tachibanawan (1,050MW x 2 Units) 600 / 610 25.0MPa Isogo New No.2* (600MW) 600 / 620 25.0MPa 40% Takasago (250MW x 2 Units) 566 / 538 16.6MPa Matsushima (500MW x 2 Units) 538 / 538 24.1MPa Takehara No.3 (700MW) 538 / 538 24.1MPa Matsuura No.1 (1,000MW) 538 / 566 24.1MPa Ishikawa (15.6MW x 2 Units) 566 / 566 14.6MPa Matsuura No.2 (1,000MW) 593 / 593 24.1MPa Isogo New No.1* (600MW) 600 / 610 25.0MPa [Legend] Power plant names (Capacity, number of units) Steam temperature / Reheat steam temperature Main steam turbine pressure Takehara No.1 (250MW) 566 / 538 16.6MPa 500MW (1981) Trends in capacity per unit 1,000MW (1990) 1,050MW (2000) 35% 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 * Isogo No.1 (started operation in 1967) and No.2 (1969) have been replaced with cutting-edge units. 15

16 USC Plant; World top class plant efficiency Gross Energy Efficiency = 45% (LHV) #1:MST=600ºC RST = 610ºC #2:MST=600ºC RST = 620ºC

Gross Thermal Efficiency (%, LHV) Japanese Clean Coal Technology : Energy Efficiency Energy efficiency of Japan s coal-fired power generation is higher in comparison with other countries including China, India and USA. Isogo PS marks the highest level in the world. Thermal efficiency of coal-fired power generation in major countries (1990-2009) 45% 43% 41% 39% 37% 35% 33% 磯 子 火 力 Isogo J-POWER (total) JAPAN Nordic countries Germany USA China India 31% 29% 27% 25% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Source: Ecofys International Comparison of Fossil Power Efficiency and CO2 Intensity 17

Dry type DeSOx system Activated cokes feed Processed gas outlet Merit of Dry-type DeSox System compared to conventional Wet Scrubber -Nearly 100% SOx removal possible -Smaller water usage (<1/10) -Smaller waste water to treat (<1/4) -Space-saving for waste water treatment Exhaust gas inlet Activated cokes outlet 18

Japanese Clean Coal Technology: DeSOx and DeNOx SOx and NOx emission from Isogo PS is fur less than those of fossil-fired power generation in other developed countries due to advanced DeSOx and DeNOx system. (g/kwh) International comparison of the amount of SOx, NOx per thermal-power-generation electric energy Synthesis of Coal, Oil, Gas Power Coal Power Source: overseas: emission/oecd StatExtract Complete database available via OECD s ilibrary electricity generation/iea ENERGY BALANCES OF COUNTRIES 2012 EDITION Japan: Federation of Electric Power Companies investigation J-POWER Isogo: actual data at 2012 19

Dust Emission (mg/m3n) Japanese Clean Coal Technology : Dust Removal Dust emission from Isogo PS is fur less than those of coal/lignite-fired power plant in Europe due to triple-stage environmental control system; Dry DeSOx + DeNOx + ESP. 350 300 Dust Emission from Coal/Lignite-fired Power Plants in Europe and Isogo PS by Type of Environmental Control Facility 250 200 150 100 50 0 DeSOx+DeNOx+ESP:Coal DeSOx+LowNOx+ESP:Coal ESP:Coal DeSOx+LowNOx+ESP:Lignite ESP:Lignite * Other than Isogo, each power station is shown in reference number in the source (no plant name nor country identified) * LowNOx means conventional NOx abatement measures including low NOx burner, air staging or flue gas recirculation without NOx removal facility Source: Preparation of the review relating to the Large Combustion Plant Directive, prepared for European Commission Environment DG, July 2005 20

Power Generation Portfolio in Selected Countries(2011) Coal is supplying 41%, the largest share of world total power generation. Especially in China, India and USA, countries with greater energy demand, coal has higher share.. Even in renewable energy conscious Germany and Denmark, coal has the largest share more than 40%. In Japan, coal is supplying 27% of total power generation. Japan Russia EU UK World Germany Denmark US India China Coal Oil Gas Nuclear Hydro Bio+waste Wind Other RE Source: IEA World Energy Outlook2013, IEA Electricity Information 2013 21

Coal-fired Power Generation to increase in Non-OECD Asia As steady growth of Asian power demand continues, coal-fired power generation remains major role to supply stable and cheap electricity. Both of power generation and capacity will double by 2030 according to IEA. In Asian coal-fired power plant market, majority was low efficiency sub-critical type, but it is now set to shift to high efficiency plants due to save energy resources and to curve CO2 emissions. Clean Coal Technologies contribute to sustainable development in Asia Source: IEA World Energy Outlook 2013 22

CCTs Contribute to Global CO2 Reduction Clean coal technologies could effectively contribute to such rapid growing infrastructure building and climate change mitigation in Asia through its CCTs and financial support. Developed Countries Further Development of CCTs CCTs Commercialization CO2 Credit etc. Proven CCTs with Preferred Finance, Technical Transfer, Joint Venture etc. Developing Countries Coal saving and CO2 emissions reduction Wide deployments of latest CCTs Deploy latest proven CCTs to newly-built plants and the replacements for old/low efficiency power plants so that energy saving and CO2 reduction can be achieved. 23

24 4.R&D for Next-generation Technology ~ challenge for the future of coal-fired power generation ~

Development of Next Generation Coal-fired Power Plant We aim to significantly increase energy efficiency and reduce CO2 emissions through the application of oxygen-blown integrated coal gasification combined cycle. Existing technologies Pulverized coal-fired Next generation technologies Coal Gasification <Aging plants> Sub-critical <Latest plants> Ultra Super Critical Advanced-USC Integrated Coal Gasification Combined Cycle Integrated Coal Gasification Fuel Cell Combined Cycle (USC) (A-USC) (IGCC) (IGFC) Efficiency* 1 : 36% 41% 46% 46% to 48% 55% or more Steam temperature: approx. 560 Approx. 600 Approx. 700 Gas temperature: approx. 1500 Approx. 1500 or more FC Boiler ST Gasifier GT ST Gasifier GT ST *1 Net efficiency, based on HHV *2 Actual results through the replacement of J-POWER s Isogo Thermal Power Plant ST: Steam Turbine, GT: Gas Turbine, FC: Fuel Cell 建 設 状 況 (2013 年 1 月 現 在 ) 25

Development of Oxygen-blown IGCC EAGLE project 1995 2013 Results Development of Japanese oxygen-blown entrained bed coal gasifier Establishment of gas clean-up technology Coal type expansion Establishment of CO2 capture technology (chemical absorption and physical absorption) Developed coal gasifier with the world s top-grade efficiency of gasification. Cut CO2 capture energy consumption by 30% (2 points up in power generation efficiency) compared to conventional technology (chemical absorption). EAGLE pilot plant (Fukuoka prefecture) Osaki CoolGen project (170MW-class IGCC power plant) Objective Verifying reliability, economy and operation of oxygen-blown IGCC power plant for practical application. 2009 2012 Environmental assessment and feasibility study 2012 2016 Design and construction Area of facilities for CO2 separate & capture trials Area of facilities for IGCC trials 2016 2018 Demonstration of IGCC 2019 2020 Demonstration of IGCC & CO2 capture Construction site (Hiroshima prefecture) After 2020 Demonstration of IGFC & CO2 capture 26

Development of CO2 Capture Technologies CO2 Capture Methods Research and Demonstration Tests EAGLE Project Coal Gasification Pre-combustion capture CO2 separation and capture from the gas produced by IGCC before combustion in gas turbine. Organization Test period Organization J-POWER/ NEDO FY2001 to FY2009 Osaki CoolGen Project Osaki CoolGen Corporation Test period From FY2018 (planned) Post-combustion capture CO2 separation and capture from the gas produced by coal combustion in boiler. Organization Test period Matsushima Power Plant J-POWER/ Mitsubishi Heavy Industries, Ltd. FY2007 to FY2008 Pulverized Coal-fired Oxyfuel combustion CO2 separation and capture from the gas produced by coal combustion in boiler, to which oxygen is supplied instead of air. Organization Location Callide Oxyfuel Project Oxyfuel Joint Venture (Japanese partners: J-POWER, Mitsui & Co., Ltd., and IHI Corporation, Australian partners: CS Energy, the Australian Coal Association, Xstrata Coal, Schlumberger The Callide A Power Station in Queensland (Capacity: 30MW) Test period From FY2012 (approx. 2 years) 27

Thank you for your attention. http://www.jpower.co.jp/english/index.html