Energy & the Environment: a Way Forward for Coal

Total Page:16

File Type:pdf, Size:1020Kb

Energy & the Environment: a Way Forward for Coal Energy & the Environment: A way forward for coal - the Kemper project Ed Holland Mississippi Power President and CEO October 9, 2014 Kemper: 582-MW Integrated Gasification Combined Cycle facility with pre-combustion carbon capture How it works: Fully Integrated Design Liberty Mine Zero Liquid discharge: Process Water Output Byproducts Kemper: Redefining Energy Sustainability 25% Coal 75% • Fuel diversity Natural Gas • Fuel price stability • Secure, reliable power 2020 energy mix without Kemper • Zero liquid discharge 20% 25%Coal 20% • Captured carbon used in enhanced Coal Lignite oil recovery 60% • Byproduct revenue Natural Gas * Includes unit retirement and fuel switch announcements (7/4/14) 2020 energy mix with Kemper * CO2 Utilization – Commodity not Waste Kemper: Why it works in Mississippi • Lignite mine mouth – 31,000 acre mine site • Enhanced oil recovery – 60 mile CO2 Pipeline for EOR • Meridian treated effluent – 30 miles of treated effluent pipeline • Transmission – 70 new miles • Off Gulf Coast – 80% Current Generation on Gulf Coast Safety • Industry leaders in maintaining a safe workplace – through every area of the company • .54 Project Recordable Incident Rate – 3-5 times safer than Construction Industry Average • 28 Million Man-hours – 14,000 FTE for a year Economic Benefits • $1 Billion in Mississippi contracts • 12,000 direct and indirect jobs • 500 Mississippi companies • 500 permanent employees • $75 Million state and local taxes during construction • $30 Million state and local taxes annually in operation Project Current Status Construction • Essentially complete except for heat tracing & insulation. Support for startup and operations now through COD Startup • Gasifier first-fire is expected in the 4th quarter. Operations • Plant staff at 173, planning for 220 by COD. Operation and Maintenance training in progress. Team participation in startup and commissioning Combined Cycle • CC in service Aug. 9, 2014 Mine • Mine staffing at 120, estimated 220 at full operations. ~890,000 tons of lignite mined International Considerations for Advanced Coal Technologies 11 National Natural Gas Market Overview: World LNG Landed Prices Federal Energy Regulatory Commission • Market Oversight • www.ferc.gov/oversight World LNG Estimated September 2014 Landed Prices UKUK UK UK$ 8$8.75.7$58 .75 $ 6.60 Be BeBelgiulgiummlgiu m Canaport Korea Cove Point lgium$ 6.78 $ 2.78 $ 10.50 $ 2.44 $8$8.84$.88 4.99 Japan Spain Korea CoCovevePoPoinLtintake Charles Cove Point $13.10 $ 10.50 $4$4.50.50 $ 9.15 $ 3.4$04.4 0 KoKorearea China Altamira SpSpainaiSnpain JapanJapan India $1$12.42.400 $ 10.10 $ 10.18 $9$9.05.0$59.15 $1$12.42.4Japa0n0 AltamiraAltamira $ 10.15 LaLakLeakeChkaeChCha arlesrlersles Altamira $13.10 $3$3.9$63.9.936 $4$4.6$04.6.570 IndiaIndiIndiaa Rio de Janeiro $1$11.$511.1.5 555 $ 9.92 Bahia Blanca $ 10.20 Source: Waterborne Energy, Inc. Data in $US/MMBtu Note: Includes information and Data supplied by IHS Global Inc. and its affiliates (“IHS”); Copyright (publication year) all rights reserved. Updated August 2014 3024 "We're going to need not 10, maybe 100 more of these plants across the country." – U. S. Secretary of Energy Ernest Moniz, Nov. 8, 2013 .
Recommended publications
  • COVER SHEET May 2010
    COVER SHEET May 2010 LEAD AGENCY COOPERATING AGENCY U.S. Department of Energy (DOE) U.S. Army Corps of Engineers (USACE) TITLE LOCATION Kemper County Integrated Gasification Combined-Cycle Kemper County, Mississippi (IGCC) Project, Final Environmental Impact Statement (EIS) (DOE/EIS-0409) CONTACTS Additional copies or information concerning this Draft EIS can be obtained from Mr. Richard A. Hargis, Jr., National Environmental Policy Act (NEPA) Document Manager, U.S. Department of Energy, National Energy Technology Laboratory, 626 Cochrans Mill Road, P.O. Box 10940, Pittsburgh, Pennsylvania, 15236-0940. Telephone: 412-386-6065. E-mail: Kemper- [email protected]. For general information on DOE’s NEPA process, contact Ms. Carol M. Borgstrom, Director, Office of NEPA Policy and Compliance (GC-54), U.S. Department of Energy, 1000 Independence Avenue, Southwest, Washington, DC, 20585-0001. Telephone: 202-586-4600, or leave a toll-free message at 1-800-472-2756. ABSTRACT This Final EIS assesses the potential environmental impacts that would result from a proposed DOE action to provide cost-shared funding and possibly a loan guarantee for construction and operation of advanced power generation plant in Kemper County, Mississippi. The project was selected under DOE’s Clean Coal Power Initiative to demonstrate IGCC technology. DOE also invited Mississippi Power Company to submit an application for the Kemper County IGCC Project to the Loan Guarantee Program during 2008. Assessment of a prospective loan guarantee is currently in progress. The power genera- tion components (i.e., coal gasifiers, synthesis gas [syngas] cleanup systems, combined-cycle unit, and supporting infrastructure) would convert coal into syngas to drive gas combustion turbines, and hot exhaust gas from the gas turbines would generate steam from water to drive a steam turbine.
    [Show full text]
  • COPELAND COOK TAYLOR & BUSH Gg
    COPELAND COOK TAYLOR & JOHN H. GEARY, JR. 601.427.1461 BUSH [email protected] July 24, 2015 Katherine Collier Executive Secretary/MSPSC gg Woolfolk State Office Building \08 501 North West Street, Suite 201A g\ O Jackson, Mississippi 39201 RE: Notice of Intent of Mississippi Power Company for a Change in Rates Supported by a Conventional Rate Filing or, in the Alternative, by a Rate Mitigation Plan in Connection with the Kemper County IGCC Project Docket No. 2015-UN-80 Dear Ms. Collier: Greenleaf CO2 Solutions, LLC filed today, electronically, a Motion to Dismiss in the above styled Docket. Enclosed please find the original and twelve (12) copies of this Motion. A copy of the first page of the Response is also enclosed. I would appreciate your file-stamping this page and returning it to me in the stamped, addressed envelope. Thank you for your assistance. Sincerely, H. Geary, Jr. Mr. Virden Jones Shawn Shurden, Esq. Chad Reynolds, Esq. All parties of record JACKSON i RIDGELAND 600 Concourse, Suite 100 1076 Highland Colony Parkway Ridgeland, Mississippi 39157 P.O. Box 6o2o Ridgeland, MS 39158 Tel (601) 856-7200 Fax (601) 8s6-7626 GULF COAST i HATTIESBURG www.copelandcook.com * Electronic Copy * MS Public Service Commission * 7/31/2015 * MS Public Service Commission * Electronic Copy* FILED JUL 2 4 2015 SERVICE BEFORE THE MISSISSIPPI PUBLIC SERVICE COMMISSIOMISS.PUBUC COMMISSION MISSISSIPPI POWER COMPANY DOCKET NO. 2015-UN-80 EC-120-0097-00 IN RE: NOTICE OF INTENT OF MISSISSIPPI POWER COMPANY FOR A CHANGE IN RATES SUPPORTED BY A CONVENTIONAL RATE FILING OR, IN THE ALTERNATIVE, BY A RATE MITIGATION PLAN IN CONNECTION WITH THE KEMPER COUNTY IGCC PROJECT MOTION TO DISMISS Pursuant to RP 6.121 of the Public Utilities Rules of Practice and Procedure ("Rules") of the Mississippi Public Service Commission ("Commission"), Greenleaf CO2 Solutions, LLC ("Greenleaf"), moves to dismiss the above-numbered Docket.
    [Show full text]
  • Kemper IGCC Project November, 2017
    IM Monthly Report Mississippi Public Service Commission Kemper IGCC Project November, 2017 URS Corporation 600 Carondelet Street New Orleans, LA 70130-3587 Tel: 504.586.8111 Fax: 504.522.0554 www.urscorp.com Confidential IM November 2017 Report Mississippi Public Service Commission Kemper IGCC Project Executive Summary URS Corporation (URS), later acquired by AECOM, was requested by the Mississippi Public Service Commission (MPSC) to provide Independent Monitoring services for the Kemper Integrated Gasification Combined Cycle (IGCC) Project located in Kemper County, MS. The scope of services includes monthly reporting by URS (AECOM) and its subcontractors, the Independent Monitor (IM), of the status and prudency of the on-going engineering, procurement, construction and startup activities performed by Mississippi Power Company (MPC or the Company), its parent Southern Company and subsidiary Southern Company Services (SCS), and its subcontractors on the project. This IM Monthly Report provides the results of this assessment for the reporting period of November, 2017, and review of the project status reported by MPC for the period of September and October, 2017 (September 2017 accounting records and October 2017 PSC Report). During this reporting period, the IM has conducted weekly status review meetings with MPSC staff. Other meetings and reviews were also conducted, as described below (refer to other Report Sections where referenced for more details): November, 2017 – Accounting audit of financial records from end of August, 2017 through end of September, 2017 held at MPC offices in Gulfport, MS (Appendix C). November, 2017 – Daily monitoring of on-going site activities at the jobsite (Appendix E). Project Status through November, 2017 (Unless Noted Otherwise) Engineering - The gasification island design performed by KBR, and the SCS design of the combined cycle island and the balance of plant (BOP) work, is 100% complete for base scope.
    [Show full text]
  • Direct Testimony of Bruce C. Harrington on Behalf of Mississippi Power Company Page 1 of 15
    1 DIRECT TESTIMONY 2 OF 3 BRUCE C. HARRINGTON 4 On Behalf of 5 MISSISSIPPI POWER COMPANY 6 BEFORE THE MISSISSIPPI PUBLIC SERVICE COMMISSION 7 DOCKET NO. 2016-AD-0161 8 9 Q. Would you please state your name, position and business address? 10 A. My name is Bruce C. Harrington. I am the Plant Manager, Kemper County 1 11 Integrated Gasification Combined Cycle (IGCC) Plant (Kemper Plant or the Plant ) 12 for Mississippi Power Company (MPC or the Company). My business address is 13 5935 Highway 493 P.O. 369, DeKalb, MS. 14 Q. Please describe your education and professional experience. 15 A. I received my Bachelor of Science degree in Mechanical Engineering and my Masters 16 of Business Administration from the University of Tennessee, Knoxville in 1989 and 17 1991, respectively. I obtained my Master of Science in Mechanical Engineering from 18 Carnegie Mellon University in 1996. I have been an employee of Southern Company 19 Services, Inc. (SCS) and MPC for a cumulative fifteen years and have served in a 20 variety of positions of increasing responsibilities in the areas of plant engineering, 1 The Kemper Project Plant is a lignite-fueled solid-fuel base load electric generating plant, comprised of a two- on-one integrated gasification combined cycle with a net summer capacity of 582 megawatts (Plant) and the environmental equipment for the reduction of various emissions from the facility, including but not limited to, equipment and facilities for the capture of approximately 65% of the carbon dioxide emissions from the Plant. Direct Testimony of Bruce C.
    [Show full text]
  • Holy Grail of Carbon Capture Continues to Elude Coal Industry
    Holy Grail of Carbon Capture Continues to Elude Coal Industry November 2018 David Schlissel, Director of Resource Planning Analysis Dennis Wamsted, Associate Editor Table of Contents Executive Summary ................................................................................................................................ 2 Major North American Carbon-Capture Projects ............................................................................. 5 Boundary Dam/SaskPower ................................................................................................................ 5 Petra Nova/NRG Energy .................................................................................................................... 7 Kemper/Southern Co. ........................................................................................................................ 8 Edwardsport/Duke Energy .............................................................................................................. 11 CCS Also Would Require Extensive New Infrastructure to Compress, Transport and Inject Captured CO2 ...................................................................................................................................... 15 The Changing Electricity-Generation Environment ......................................................................... 16 Coal’s Aging-Fleet Problem ............................................................................................................ 17 The Surge in Natural Gas-Fired Generation
    [Show full text]
  • Review of the Taylorville Energy Center's Facility
    REVIEW OF THE TAYLORVILLE ENERGY CENTER’S FACILITY COST REPORT PRESENTED TO THE ILLINOIS COMMERCE COMMISSION BY BOSTON PACIFIC COMPANY, INC. AND MPR ASSOCIATES, INC. Boston Pacific Company, Inc. MPR Associates, Inc. Craig R. Roach, Ph.D. Jim Bubb, P.E. [email protected] [email protected] 1100 New York Avenue, NW, Suite 490 East 320 King Street, Suite 400 Washington, DC 20005 Alexandria, VA 22314 (202) 296-5520 (703) 519-0200 June 8, 2010 BOSTON PACIFIC COMPANY, INC. TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................TAB 1 TASK 1 REPORT – A BACKGROUND REVIEW OF IGCC AND CARBON CAPTURE AND SEQUESTRATION PROJECTS TO DATE .............................................TAB 2 TASK 2 REPORT – AN ASSESSMENT OF TAYLORVILLE’S COMPLIANCE WITH THE ILLINOIS CLEAN COAL PORTFOLIO STANDARD LAW .........................TAB 3 TASK 3 REPORT – ASSESSMENT OF REASONABLENESS OF CAPITAL COSTS AND OPERATION COSTS FOR THE PROPOSED TAYLORVILLE ENERGY CENTER ................................................................................................................TAB 4 TASK 4 REPORT – ASSESSMENT OF POTENTIAL FOR THE TAYLORVILLE ENERGY CENTER TO COME ON-LINE AS PLANNED AND WITHIN THE PROPOSED TIMEFRAME ...................................................................................................TAB 5 TASK 5 REPORT – AN ASSESSMENT OF THE ABILITY TO FINANCE THE TAYLORVILLE FACILITY ..................................................................................................TAB
    [Show full text]
  • Lessons Learned from CCS Demonstration and Large Pilot Projects
    Lessons Learned from CCS Demonstration and Large Pilot Projects An MIT Energy Initiative Working Paper May 2016 Howard Herzog1* [email protected] *Corresponding Author 1MIT Energy Initiative, Massachusetts Institute of Technology MIT Energy Initiative, 77 Massachusetts Ave., Cambridge, MA 02139, USA MITEI-WP-2016-06 Table of Contents Summary 3 Overview 4 Background 5 Review of CCS Demonstration Programs 9 Analysis of Selected CCS Projects 24 Lessons Learned 38 References 43 H. Herzog, 2016 Acknowledgement The Carbon Sequestration Initiative, an industrial consortium housed in the MIT Energy Initiative (MITEI), has been tracking the progress of large-scale Carbon Dioxide Capture and Storage (CCS) projects for many years.1 The knowledge and data obtained in that project formed the basis of this paper. The original version of this paper was done for the Coal Utilization Research Council (CURC). It was one of three white papers for a CURC report entitled “Analysis Of Options For Funding Large Pilot Scale Testing Of Advanced Fossil-Based Power Generation Technologies With Carbon Capture And Storage.” This project was sponsored by the New Energy and Industrial Technology Development Organization (NEDO) of Japan. Disclaimer This paper contains significant information about dozens of CCS pilot and demonstration projects worldwide. Every effort was made to be as accurate as possible. However, many of these projects are in a state of flux and the references used are quite varied. Therefore, some of the project details may have changed or be in error. However, any such problems will not change the analyses or findings in this paper. 1 See http://sequestration.mit.edu/tools/projects/index.html 2 H.
    [Show full text]
  • Proposes to Revise
    The EPA Acting Administrator, Andrew R. Wheeler, signed the following notice on 12/6/2018, and EPA is submitting it for publication in the Federal Register (FR). While we have taken steps to ensure the accuracy of this Internet version of the rule, it is not the official version of the rule for purposes of compliance. Please refer to the official version in a forthcoming FR publication, which will appear on the Government Printing Office's FDSys website (http://gpo.gov/fdsys/search/home.action) and on Regulations.gov (http://www.regulations.gov) in Docket No. EPA-HQ-OAR-2013-0495. Once the official version of this document is published in the FR, this version will be removed from the Internet and replaced with a link to the official version. 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 60 [EPA-HQ-OAR-2013-0495; FRL-] RIN 2060-AT56 Review of Standards of Performance for Greenhouse Gas Emissions from New, Modified, and Reconstructed Stationary Sources: Electric Utility Generating Units AGENCY: Environmental Protection Agency (EPA). ACTION: Proposed rule. SUMMARY: The Environmental Protection Agency (EPA) is proposing amendments to the rulemaking titled “Standards of Performance for Greenhouse Gas Emissions from New, Modified, and Reconstructed Stationary Sources: Electric Utility Generating Units (EGUs),” which the EPA promulgated by notice dated October 23, 2015 (i.e., the 2015 Rule). Specifically, the EPA proposes to amend its previous determination that the best system of emission reduction (BSER) for newly constructed coal-fired steam generating units (i.e., EGUs) is partial carbon capture and storage (CCS). Instead, the EPA proposes to find that the BSER for this source category is the most efficient demonstrated steam cycle (e.g., supercritical steam conditions for large units and subcritical steam conditions for small units) in combination with the best operating practices.
    [Show full text]
  • Storing CO2 Through Enhanced Oil Recovery
    Storing CO2 through Enhanced Oil Recovery Combining EOR with CO2 storage (EOR+) for profit The views expressed in this paper do not necessarily reflect the views or policy of the International Energy Agency (IEA) Secretariat or of its individual member countries. The paper does not constitute advice on any specific issue or situation. The IEA makes no representation or warranty, express or implied, in respect of the paper’s content (including its completeness or accuracy) and shall not be responsible for any use of, or reliance on, the paper. Comments are welcome, directed to [email protected]. © OECD/IEA 2012 © OECD/IEA, 2015 INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 29 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change.
    [Show full text]
  • A BOON for KEMPER Table of Contents
    COAL TAX SUBSIDIES: A BOON FOR KEMPER Table of Contents A. Introduction ..................................................................................................................................................................... 3 B. CCS Tax Credit ................................................................................................................................................................ 4 C. Kemper County Energy Facility and 45Q ............................................................................................................ 5 D. More Subsidies? ............................................................................................................................................................. 7 E. The Economics of CCS ................................................................................................................................................ 7 F. Conclusion ........................................................................................................................................................................ 8 G. Methodology ................................................................................................................................................................... 8 H. References ....................................................................................................................................................................... 9 SOURCE: BRIAN SAMSON BRIAN SOURCE: Acknowledgements Report authored by Friends of the Earth
    [Show full text]
  • Environmental Protection Agency
    Vol. 80 Friday, No. 205 October 23, 2015 Part II Environmental Protection Agency 40 CFR Parts 60, 70, 71, et al. Standards of Performance for Greenhouse Gas Emissions From New, Modified, and Reconstructed Stationary Sources: Electric Utility Generating Units; Final Rule VerDate Sep<11>2014 18:25 Oct 22, 2015 Jkt 238001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\23OCR2.SGM 23OCR2 mstockstill on DSK4VPTVN1PROD with RULES2 64510 Federal Register / Vol. 80, No. 205 / Friday, October 23, 2015 / Rules and Regulations ENVIRONMENTAL PROTECTION in hard copy at the EPA Docket Center FOAK First-of-a-kind AGENCY (EPA/DC), Room 3334, EPA WJC West FR Federal Register Building, 1301 Constitution Ave. NW., GHG Greenhouse Gas 40 CFR Parts 60, 70, 71, and 98 Washington, DC. The Public Reading GHGRP Greenhouse Gas Reporting Program GPM Gallons per Minute [EPA–HQ–OAR–2013–0495; EPA–HQ–OAR– Room is open from 8:30 a.m. to 4:30 GS Geologic Sequestration 2013–0603; FRL–9930–66–OAR] p.m., Monday through Friday, excluding GW Gigawatts legal holidays. The telephone number H2 Hydrogen Gas RIN 2060–AQ91 for the Public Reading Room is (202) HAP Hazardous Air Pollutant HFC Hydrofluorocarbon Standards of Performance for 566–1744, and the telephone number for the Air Docket is (202) 566–1742. HRSG Heat Recovery Steam Generator Greenhouse Gas Emissions From New, IGCC Integrated Gasification Combined FOR FURTHER INFORMATION CONTACT: Dr. Modified, and Reconstructed Cycle Stationary Sources: Electric Utility Nick Hutson, Energy Strategies Group, IPCC Intergovernmental Panel on Climate Generating Units Sector Policies and Programs Division Change (D243–01), U.S.
    [Show full text]
  • Coal Tax Subsidies: a Boon for Kemper
    COAL TAX SUBSIDIES: A BOON FOR KEMPER Frequently Asked Questions Q: What exactly is the Kemper project? A: Kemper is a coal facility under construction in De Kalb, Mississippi. Utility giant Southern Company designed the project to turn coal into a gas, burn the gas for electricity, and capture an estimated 65 percent of the associated carbon dioxide emissions through a process called carbon capture and sequestration (CCS). Once captured, the emissions will be piped to nearby oil fields and pumped underground to help stimulate production as part of a process called enhanced oil recovery (EOR). The long-controversial project was originally projected to cost $2.4 billion and to come online in 2014, but the price tag now stands at $6.9 billion—and after repeated delays, the latest placed in service date has been pushed to December 31, 2016. Q: What exactly is the CCS tax credit under section 45Q and what does it have to do with Kemper? A: The Emergency Economic Stabilization Act of 2008—better known as the Wall Street bailout – created one of the biggest tax breaks for CCS on the books. Known as 45Q, the provision allows power plants like Kemper and other industrial emitters to claim a tax credit for every ton of CO2 they capture. The credit is worth $20 per metric ton CO2 captured and stored underground and $10 if the CO2 is captured and used for EOR. Congress never intended the subsidy to be permanent, and timed it to expire after 75 million credits had been claimed—a benchmark expected as soon as 2019.
    [Show full text]