Cheap natural gas from shale might dominate the
business pages these days but much of America’s
electricity is still supplied by coal and coal’s
future is interlaced with commercial development of
technology to use the fuel more cleanly.
This was the central theme of both a June 20
briefing designed to educate congressional staff on
coal technology innovation as well as a new report
calling for more investment in coal and carbon
control technology.
The Coal Utilization Research Council (CURC) and
Electric Power Research Institute (EPRI) made
available copies of their updated June 2012
“Technology Roadmap” during the Washington, D.C.
event.
“The central goal of the Roadmap is to reduce the
cost to install the CO2 capture system as well as
reduce the consumption of energy from the power
plant that is needed to operate the CO2 capture
system,” according to the document. The groups
believe the current high cost of carbon capture and
storage (CCS) can be reduced 30% to 40% through new
technology.
The head of the U.S. Department of Energy’s Office
of Clean Energy Systems, Darren Mollot, told the
June 20 gathering that the federal government
remains eager to see commercial development of CCS
technology. After a much-debated CO2 cap-and-trade
plan failed to make it through Congress a couple of
years ago, DOE and industry must look for other
incentives to spur CCS development, Mollot said.
In the near-term, use of captured carbon dioxide for
enhanced oil recovery (EOR) might provide CCS with
an early market niche, Mollot said. Enhanced oil
recovery is certainly “the big hitter right now” in
helping commercialize CCS, Mollot said.
A Southern Co.(NYSE: SO) subsidiary’s
integrated gasification combined-cycle (IGCC) power
plant in Mississippi; Summit Power Group’s IGCC
project in Texas; SCS Energy’s Hydrogen Energy
California (HECA) project IGCC in California all
plan to employ CCS technology that would provide
captured CO2 for enhanced oil recovery, according to
the new “roadmap” document. The same goes for a
carbon capture project at NRG Energy’s (NYSE: NRG)
existing Parish coal plant in Texas.
But two other much-reported advanced power projects,
Duke Energy’s (NYSE: DUK) Edwardsport IGCC and
Tenaska’s Taylorville project, don’t currently
include a carbon capture component, according to the
report. Tenaska, incidentally, recently said it
would shelve the coal gasification part of the
Taylorville project, instead opting for regular
natural gas as the power plant's fuel for at least
the first few years of operation.
During a question-and-answer session with
participants, the DOE’s Mollot acknowledged that
technology breakthroughs are needed to drive down
the cost of compressing and capturing CO2.
Despite increased use of natural gas for power
generation, better CO2 control technology must still
be developed in order to achieve policy goals that
call for dramatically slashing greenhouse gas
emissions from 2005 levels by 2020, Mollot said.
The key is “getting the stuff deployed sooner rather
than later,” Mollot said.
A parade of 19 different speakers then gave
five-minute presentations on technology innovations
that should lead to cleaner, more efficient ways to
burn coal or deal with carbon dioxide.
They ranged from General Electric (NYSE: GE) to the
Gasification Technologies Council to a newly-formed
private alliance that wants to backfit an existing
U.S. coal plant with oxy-combustion carbon controls.
CURC: Federal coal R&D pays off
In the new “roadmap” document, CURC and EPRI say
that investing in coal technology is a wise
investment. According to the document, federal
research and development spending on coal has
returned $13 to the taxpayer for every $1 spent.
The two organizations suggest an annual investment
in coal technology of between $400m and $500m per
year through 2025. Investment should then average
another $190m per year through 2035. “Using the
traditional public and private sector cost-sharing
ratio, industry would contribute 20% of these costs
and the federal government would contribute 80%,”
according to the report.
“Despite its strong historic and current role as a
primary energy resource in the United States, coal
faces multiple challenges today,” the report said.
These include case-by-case determinations of CO2
limitations for new coal plants to the array of
various EPA standards to further decreases
in emissions of SO2, NOx and mercury.
Today’s new coal plants emit 95% less SO2 and NOx
and 90% less mercury compared to coal plants built
in the 1970s, according to the report.
In addition, new coal power plants require at least
seven years to design, permit and construct, the
report said. This is occurring at a time of weak
growth in U.S. electric demand.
An earlier Roadmap was published by CURC and EPRI in
2008. A copy of the prior roadmap is currently
available on the CURC website, which is
www.coal.org.
Barber is chief of generation at Generation Hub, a
unit of Energy Central
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