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Prospects for Coal and Clean Coal Technologies in Turkey

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Prospects for Coal and Clean Coal Technologies in Turkey Prospects for coal and clean coal technologies in Turkey Author: Dr Stephen Mills IEACCC Ref: CCC/239 ISBN: 978–92–9029–560–0 Copyright: © IEA Clean Coal Centre Published Date: July 2014 IEA Clean Coal Centre Park House 14 Northfields London SW18 1DD United Kingdom Telephone: +44(0)20 8877 6280 www.iea-coal.org IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Turkey 2 Preface This report has been produced by IEA Clean Coal Centre and is based on a survey and analysis of published literature, and on information gathered in discussions with interested organisations and individuals. Their assistance is gratefully acknowledged. It should be understood that the views expressed in this report are our own, and are not necessarily shared by those who supplied the information, nor by our member countries. IEA Clean Coal Centre is an organisation set up under the auspices of the International Energy Agency (IEA) which was itself founded in 1974 by member countries of the Organisation for Economic Co-operation and Development (OECD). The purpose of the IEA is to explore means by which countries interested in minimising their dependence on imported oil can co-operate. In the field of Research, Development and Demonstration over fifty individual projects have been established in partnership between member countries of the IEA. IEA Clean Coal Centre began in 1975 and has contracting parties and sponsors from: Australia, Austria, Canada, China, the European Commission, Germany, India, Italy, Japan, New Zealand, Russia, South Africa, Thailand, the UK and the USA. The Service provides information and assessments on all aspects of coal from supply and transport, through markets and end-use technologies, to environmental issues and waste utilisation. Neither IEA Clean Coal Centre nor any of its employees nor any supporting country or organisation, nor any employee or contractor of IEA Clean Coal Centre, makes any warranty, expressed or implied, or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed, or represents that its use would not infringe privately-owned rights. IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Turkey 3 Abstract Turkey has one of the world’s fastest growing economies. Rapid economic expansion, rising population, and growing industrialisation have triggered a general increase in energy demand. During the last decade, natural gas and electricity requirements have soared. Over the next ten years, the current level of energy demand is expected to double. In order to meet this, significant investment in the energy sector will be required. Like many countries, Turkey faces energy supply issues. Indigenous energy resources are limited almost exclusively to lignite and smaller amounts of hard coal. As a result, there is a heavy dependence on imported sources of energy. More than 90% of Turkey’s oil and 98% of its natural gas is imported, as is much of the hard coal consumed. The cost is considerable, accounting for around a quarter of the country’s overall annual import bill. A major government objective is to reduce this, particularly through the greater use of domestic lignite, widely available in many parts of the country. To help facilitate this, the government is pursuing a coal strategy and has introduced incentives to encourage the greater utilisation of this resource. Many new power generation projects are in the pipeline, a significant number fired on lignite. However, there are also a number of major projects that will rely on imported hard coal. Many existing state-owned coal-fired power assets (and coalfields) are in the process of being transferred to the private sector. Some power plants require modernising and this is being factored into their selling price. The current coal-based generating fleet comprises plants based on conventional pulverised coal or fluidised bed combustion technology. Some newer projects plan to use supercritical steam conditions and all major power plants will be required to install effective emission control systems. The further development and application of a range of clean coal technologies is being pursued by a number of Turkish utilities, technology developers, and universities. There is increasing involvement with international projects and, in many cases, growing links with overseas counterparts. Acknowledgements Pelin Haberal Ministry of Energy and Natural Resources of Turkey Dr Nejat Tamzok Turkish Coal Enterprises Ayse Ceri Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) Dr Jürgen Fröhlich STEAG GmbH Hasan Guerpinar Hitachi Power Europe GmbH Gülben Gülcan ISKEN-Iskenderun Enerji Üretim ve Tic. A. Berker Yetisti CVP Machinery Marketing Ind. & Foreign Trade Ltd. Co, Izmir Ş IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Turkey 4 Acronyms and abbreviations BAT best available technology BFBC bubbling fluidised bed combustion BOO build-own-operate BOP Balance of plant BOT build-own-transfer BP British Petroleum CAGR compound annual growth rate CBM coalbed methane CBTL coal-biomass-to-liquids CCGT combined cycle gas turbine CCS carbon capture and storage CCT clean coal technologies CFBC circulating fluidised bed combustion CFBG circulating fluidised bed gasification CMEC China Machinery Engineering Corporation CNEEC China National Electricity and Engineering Company CTL coal-to-liquids CV calorific value ECBM enhanced coalbed methane recovery EIA environmental impact assessment EMRA Turkish Energy Market Regulatory Authority ENGR enhanced natural gas recovery EOR enhanced oil recovery EPC engineering, procurement and construction EPDK Energy Market Regulatory Agency ESP electrostatic precipitator EU European Union EÜAŞ Electricity Generation Company FBC fluidised bed combustion FDI foreign direct investment FGD flue gas desulphurisation FT Fischer-Tropsch GE General Electric Corporation GHG greenhouse gas GMI Global Methane Initiative HWBR hot windbox repowering IÇDAŞ Icdas Elektrik Üretim ve Yatirim AS IEA International Energy Agency IED Industrial Emissions Directive IGCC integrated gasification combined cycle IPCC Intergovernmental Panel on Climate Change IPPC integrated pollution prevention and control ISPAT Republic of Turkey Prime Ministry Investment Support and Promotion Agency ITU Istanbul Technical University LAP Turkish Lignite Exploration Mobilization Project LCPD EU Directive on Large Combustion Plants LHV lower heating value IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Turkey 5 LNB low NOx burner LNG liquefied natural gas MAM (TÜBITAK) Marmara Research Center (Marmara Araştirma Merkezi; sometimes referred to as MRC) MENR Ministry of Energy and Natural Resources METU Middle East Technical University MHI Mitsubishi Heavy Industries MTA Turkish General Directorate of Mineral Research Exploration Mtoe million tonnes of oil equivalent MU Muğla University NCCAP National Climate Change Strategy for Turkey NGCC natural gas combined cycle O&M operations and maintenance OECD Organisation for Economic Co-operation and Development OIB Turkish Privatization Administration PCC pulverised coal combustion PCI pulverised coal injection PFBC pressurised fluidised bed combustion PV photovoltaic SCR selective catalytic reduction SCST Supreme Council for Science and Technology SNG synthetic natural gas TAEK Turkish Atomic Energy Authority TEAS Turkish Electricity Generation and Transmission Corporation TEYDEB Technology and Innovation Support Programs Directorate TKI Turkish Coal Enterprises TL Turkish Lira (1 Lira = US$0.47 – as of April 2014) TPAO Turkiye Petrolleri A.O. TPES total primary energy supply TTK Turkish Hardcoal Enterprises TÜBİTAK The Scientific and Technological Research Council of Turkey TURKSTAT Turkish Statistical Institute UCG underground coal gasification UNDP United Nations Development Programme UNFCC United Nations Framework Convention on Climate Change USTDA US Trade and Development Agency WEC World Energy Council IEA Clean Coal Centre – Prospects for coal and clean coal technologies in Turkey 6 Contents Preface 3 Abstract 4 Acronyms and abbreviations 5 Contents 7 List of Figures 9 List of Tables 10 1 Introduction 11 2 The Turkish energy sector 15 2.1 Oil 15 2.2 Natural gas and liquefied natural gas (LNG) 16 2.3 Nuclear energy 17 2.4 Renewable energy sources 18 2.5 Growing international involvement in the Turkish energy sector 24 3 Turkish coal 27 3.1 Lignite 28 3.2 Private sector lignite producers 33 3.3 Hard coal 33 3.4 Lignite and hard coal characteristics 36 3.5 Hard coal imports 37 3.6 Coal preparation 40 3.6.1 Lignite cleaning 40 3.6.2 Hard coal cleaning 44 4 Turkish power generation sector 46 4.1 Coal-fired power generation 50 4.1.1 Lignite-fired generating capacity 51 4.1.2 Hard coal-fired generating capacity 53 4.2 Fluidised bed combustion 55 4.2.1 Bubbling fluidised bed combustion 56 4.2.2 Circulating fluidised bed combustion 56 4.2.3 Commercial fluidised bed power plants 57 4.2.4 FBC projects in development or under construction 58 4.2.5 Fluidised bed combustion of coal and oil shale combinations 60 4.3 Environmental issues 61 4.3.1 Emission control systems on hard coal- and lignite-fired power plants 61 4.3.2 Utilisation of combustion wastes 65 4.3.3 Utilisation of FGD residues 66 4.4 New coal-fired power plant developments 67 4.5 Power plant modernisation and rehabilitation 69 4.5.1 Industry efforts 70 4.6 Turkish power
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