FutureGenFutureGen Status

7th Annual SECA WORKSHOP & PEER REVIEW

September 12-14, 2006

Philadelphia, PA

Joseph P. Strakey

National Energy Technology Laboratory U. S. Department of Energy FutureGenFutureGen

World’s first near zero-emission, -based power plant to: • Pioneer advanced hydrogen production from coal • Emit virtually no air pollutants • Capture and permanently sequester carbon dioxide • Integrate operations at full- scale – a key step to proving feasibility

Strakey – SECA – 09-13-06 250 Year Supply of Coal at Current Demand Levels

U.S. Fossil Fuel Reserves / Production Ratio 300 258 Coal

Sub- Bituminous 200 & Oil Lignite

Natural Gas

100 Anthracite & Bituminous

11.7 9.7 0

Sources: BP Statistical Review, June 2004, - for coal reserves data - World Energy Council; Strakey – SECA – 09-13-06 EIA, Advance Summary U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves, 2003 Annual Report, September 22, 2004 - for oil and gas reserves data - Large Potential Worldwide CO2 Storage Capacity

200,000 ) 2 Maximum Capacity Potential 1,200 CO 1,000

800 (Gigaton 600

400 24 Gigatons

Capacity 200

0 Deep Deep Depleted Coal Terrestrial Annual Ocean Saline Oil & Gas Seams World Formations Reservoirs Emissions Storage Option

Storage Options: IEA Technical Review (TR4), March 23, 2004 Strakey – SECA – 09-13-06 Carbon Capture & Sequestration Program @MIT World Emissions: DOE/EIA, International Energy Outlook 2003, Table A10 Current “Best Case” Technologies Costly Using State-of-the-Art Scrubbing Technologies • 5 to 30% Parasitic energy loss

• 30 to 100% Increase in capital cost

• 25 to 100% Increase in cost of electricity

Effect of CO2 Capture on Capital Cost Effect of CO2 Capture on Cost of Electricity

(% Increase Resulting From CO2 Capture) (% Increase Resulting From CO2 Capture)

100 80 100 2012 Program Goals 80 72 87 60 60 60 40 40

33 20 29 20 20 10 0 0 IGCC PC NGCC IGCC NGCC PC

Strakey – SECA – 09-13-06 Why IGCC/IGFC?

R&DR&D inin thethe pipelinepipeline isis reducingreducing costcost && imprimprovingoving efficiencyefficiency •• Gasifier/refractoryGasifier/refractory materialmaterial •• Low-costLow-cost oxygenoxygen •• GasGas separationseparation membranesmembranes •• FuelFuel cellcell powerpower

• Environmentally superior coal-based power

• Easily adapted for CO2 sequestration • High efficiency • Fuel & product flexibility • Promising “coal-to-hydrogen” option

Strakey – SECA – 09-13-06 FutureGenFutureGen IGFC with Sequestration

Air Air Separation CO2, CO, H2

O 2 SOFC CO, H CO 2 H O Gas Cleaning 2 2 Separation Anode Gasifier Cathode Coal Air

Sulfur CO2 Recovery

Sequestration Marketable Marketable Unmineable Depleted Oil & Gas Ash/Slag Sulfur Coal Beds By-product By-product Reservoirs

Enhanced Oil Recovery Deep Saline Aquifer

Strakey – SECA – 09-13-06 GE IGFC Study Performance Summary 55% Standard 54% With CO2 53% Separation

52%

51%

50%

49% Net Efficiency (HHV Coal) 48%

47% 0 2 4 6 8 10 12 14 Operating Pressure (bar)

• 53.4% (HHV) Possible with IGFC

• CO2 Separation penalty 2.7 points

Strakey – SECA – 09-13-06 FutureGenFutureGen Will Build Upon Experience from Commercial-Scale Coal-Based IGCC Power Plants

Wabash River • W. Terre Haute, IN • 296 MWe (gross); 262 MWe (net) • Operations began 11/95

Tampa Electric • Mulberry, FL • 315 MWe (gross); 250 MWe (net) • Operations began 9/96

Strakey – SECA – 09-13-06 FutureGenFutureGen Will Build on Two Non-Integrated One Million TPY CO2 Sequestration Projects

Weyburn CO2 EOR Project • Pan Canadian Resources

• 200-mile CO2 pipeline from Dakota Gasification Plant • Enhanced Oil Recovery in Canada

Sleipner North Sea Project • Statoil

• CO2 sequestered - Utsira Formation

• Currently monitoring CO2 migration

• Separates CO2 from natural gas

• $36–50 / tonne CO2 tax

Strakey – SECA – 09-13-06 Cutting-Edge Candidate R&D Technologies for FutureGenFutureGen

Traditional Technology Research Invention Examples

Commercial Gasifier ÆÆÆÆÆÆAdvanced Transport Reactor

Cryogenic Air Separation ÆÆÆÆÆO2 Membranes

Gas Stream Clean-Up ÆÆÆÆÆÆWarm Gas Cleanup - Transport Desulfurizer

Amine Scrubbers ÆÆÆÆÆÆÆH2 Membranes, “Clathrate” CO2

Syngas Turbine ÆÆÆÆÆÆÆUltra-Low NOx Hydrogen Turbine

Fuel Cell ($4,000/kW) ÆÆÆÆÆÆSECA Fuel Cell ($400/kW Design)

EOR Based ÆÆÆÆÆÆÆÆSequestration Technology

Plant Controls ÆÆÆÆÆÆÆ“Smart” Dynamic Plant Controls &

CO2 Management Systems

System Integration ÆÆÆÆÆÆ“First of a Kind” System Integration

Strakey – SECA – 09-13-06 FutureGenFutureGen Industrial Alliance, Inc. Signed Cooperative Agreement with DOE on Dec. 2, 2005

• Foundation Coal • AngloAmerican • Peabody Energy • BHP Billiton • PPL • Huaneng Group • Energy America • CONSOL Energy •

Strakey – SECA – 09-13-06 FutureGen Project Schedule

Siting, NEPA, and Permitting

Project Final Design Structuring & Conceptual Design Facilities Construction

Preliminary Design Plant Start-Up Phase 2 & Cooperative Shakedown Agreement Negotiations NEPA ROD Initial Full Scale Plant Operations Full Scale Plant Operation Continues July 2007

Limited Full Scope Site Monitoring Cooperative Cooperative Final Site Selection Agreement Agreement Long Lead Time Orders Awarded Awarded September, 2007

Construction Jan 31, 2007 Start Operations Start July 2016 July 2009 July 2012 July 2018 Dec. 2, 2005 January 2008

BP- 0 BP- 1 BP- 2 BP- 3 BP- 4 BP- 5

Strakey – SECA – 09-13-06 FutureGenFutureGen Funds / Estimated Costs

Cost Elements $ Million Plant Definition, Baselining & NEPA 81 Plant Procurement & Construction 480 Shakedown & Full-Scale Operation 188 Sequestration (Design & Construction) 191 Site Monitoring 10 TOTAL $950

DOE 620 Industry 250 International 80

Strakey – SECA – 09-13-06 FutureGenFutureGen Status

• Industry-led cooperative project with government oversight & Tuscola international participation • Industry will choose project site, Mattoon backbone technologies, etc. • DOE has invited other nations to join FutureGen • Gov’ts of India & South Korea have each pledged $10 Million Odessa Brazos

Texas

Strakey – SECA – 09-13-06 FutureGenFutureGen Public Scoping Meetings

Jewett, TX – Aug. 22, 2006 Odessa, TX – Aug. 24, 2006 Tuscola, IL – Aug. 29, 2006 Mattoon, IL – Aug. 31, 2006 Visit the FutureGenFutureGen Websites

• NETL website: − www.netl.doe.gov

• Office of Fossil Energy website: − ww.fe.doe.gov

• FutureGen Alliance website: − www.futuregenalliance.org

Strakey – SECA – 09-13-06 Strakey – SECA – 09-13-06