Advanced Coal Technologies in a Sustainable Energy System Preparing and Preserving the Appropriate Technological Options in China

A Workshop Report

Guodong Sun

Report on a workshop jointly organized by the Energy Technology Innovation Project of the Belfer Center for Science and International Affairs, Kennedy School of Government, Harvard University, the Expert Committee on Clean‐Coal Technologies of the 863 High‐tech Research and Development Program of the Ministry of Science and Technology, China, and the China Coal Research Institute.

This workshop was held at Harvard University in Cambridge, Massachusetts on September 19‐20, 2005. Introduction and motivation

China’s energy infrastructure is expanding at an unprecedented speed. About 127 gigawatts (GW) of new power generation capacity—including 50.6 GW in 2004—were added from 2000 to 2004, which is more than the total installed capacity of India (~120 GW in 2002) or of Germany (~115 GW in 2002). China plans to build an additional 400- 450 GW of new power generation capacity by 2020, a large fraction of which will consist of coal-fueled plants. China has also been actively pursuing coal-liquefaction technologies and capacities because of the soaring demand for liquid fuel in the face of flat domestic oil production.

New infrastructure, where choice of energy technology will be shaped largely by current regulatory regimes, will be in use for many decades especially because such investments will be too expensive to replace prematurely. Future changes in market conditions (such as the deregulation of electricity industry and a more integrated energy infrastructure), more strict requirements for local and regional environmental protection, and, perhaps most important, the need to reduce carbon dioxide emissions because of concerns over global climate change, have not been fully considered or addressed due to a combination of institutional, capability, and resource constraints. The consequence could be that China locks into a coal-based energy system where future reductions in emissions of carbon dioxide (CO2) and other environmental pollutants would lead to significant cost and efficiency penalties.

Given this background, the workshop discussions were framed by the following overarching question: “What near-term measures should be taken to prevent China from locking into situations in which carbon dioxide from coal-based energy systems can only be captured and sequestered at very high costs?”

Accordingly, the primary objectives of this workshop were to (1) identify and analyze the key technological, policy, and institutional issues related to the innovation and use of coal-based poly-generation system in China; (2) develop an understanding of China’s CO2-storage capacities; (3) discuss the possible roles of coal in a hydrogen economy. The United States and other industrialized countries are facing similar issues, and part of the aim of the workshop was to discuss, and learn from, these international experiences.

This workshop was organized in three main sessions: (a) improvement and deployment of poly-generation technologies in China, (b) carbon capture and storage, and (c) hydrogen economy and role of coal-based hydrogen.

The Chinese delegation was led by Dr. Yong Shang, Vice Minister of the Ministry of Science and Technology. Other members included China’s leading experts on clean-coal technologies and senior representatives from academia, business, and government. Key members of the Expert Committee on Clean-Coal Technology (CCT) of China’s 863 High-tech Research and Development Program and the chief engineers of China’s major CCT projects took part in the workshop.

1 Twenty experts from U.S. and European universities, firms, and governmental agencies also shared their experience and knowledge—encompassing advanced-coal technologies, innovation management, and energy and environmental policies—with the Chinese delegation.

The Energy Technology Innovation Project in the Belfer Center for Science and International Affairs in the Kennedy School of Government of Harvard University hosted this workshop. A list of participants, complete with biographies, is attached.

Synthesis of discussions

The workshop discussions resulted in a number of insights and suggestions on what steps China and the international community should take in the near-term to prevent China from locking into a coal-based energy system where the costs of capturing and sequestering CO2 at some future point would be prohibitively high.

Major challenges

• Coal provides over half of China’s primary energy needs, but Chinese coal also produces about one-seventh of the total CO2 emissions from world fossil fuels. China will continue to rely on coal, the most carbon-intensive fossil-fuel, to meet much of its energy-demand increase, including for liquid fuels. While it is not clear yet when and at what level China will cap its CO2 emissions, it is inevitable that China eventually will make a serious commitment to GHG-emission restraints in the context of a global approach to the problem. This will likely happen in the post-Kyoto phase of global climate negotiations—i.e., post-2012 – but probably not later than 2015 to 2020. That means that coal-burning plants that go into operation in China in the next 10 to 15 years will be under intense pressure, early in their life expectancies, to be retrofitted to capture carbon or to be retired prematurely.

• Coupled with carbon capture and storage technologies, coal-based poly-generation has the potential to reconcile increasing coal use with reducing carbon emissions. It is therefore an appropriate long-term choice for China’s coal-based energy system in a carbon-constrained world and for deregulated energy markets. 1 The challenge is to accelerate the deployment of poly-generation technology, even before China embraces mandatory carbon restraints, in order to avoid the lock-in of high emissions from and/or premature retirement of conventional coal-burning power plants between now and then.

• China is among world’s leaders in the demonstration and use of coal-gasification technologies and coal-based poly-generation technologies. China’s first industrial- scale poly-generation system (the Yanzhou Coal project) was put into operation in

1 Innovative combustion technologies—such as oxyfuel and chemical looping—are at the early stage of development but may find future application in power generation under a CO2-capture requirement. But they do not have the product-flexibility that poly-generation technology provides. Such flexibility is an advantage in future deregulated energy markets (liquid fuels, electricity, etc) that are subject to price uncertainties. 2 2005, and several others are in various stages of development. A number of technological challenges, however, need to be addressed to lower the capital costs and to improve the reliability of coal gasification/polygeneration (for example, raising the single-train availability to 90% or higher for utility application and 97% or higher for refineries and chemical complexes). These challenges include improving system integration, reducing excessive downtime from key components of the gasifier, developing new gasification technologies for low-rank coals and smaller-scale applications, developing deep-cleaning technologies to meet more stringent environmental regulations at competitive costs, and developing high-efficiency but low-cost air-separation technologies.

• While China has acquired manufacturing capabilities related to the manufacture of equipment for poly-generation systems, key technologies (especially gasification technologies) used in current projects were licensed from foreign technology providers. A major challenge facing China’s business and government is to develop new—and improve existing—indigenous gasification-technologies that are less expensive and better suited to Chinese coals.

• The wide deployment of coal-based poly-generation systems in China—especially into the power generation sector—requires a higher degree of integration of traditionally separated energy infrastructures (electricity, liquid fuel, heat, etc), markets, and regulatory systems. A successful integration requires that a number of conditions be satisfied, including the appropriate pricing mechanism and that there be no significant barrier for market entry.

Current efforts and issues

• Tremendous efforts have been made in China in the innovation and use of clean-coal technologies (CCTs). Since 2001, the central government has invested, through the “863” Program, about 320 million yuans 2 in the research, development, and demonstration (RD&D) of clean-coal technologies. This program also leveraged about 1 billion yuans of investment from industry and other governmental funds.

• Significant progress has been achieved in a number of areas that were supported by the “863” program. These include coal-gasification technologies (e.g., development and demonstration of a coal-slurry, entrained-flow gasifier and early development of a two-stage dry feed gasifier); coal-liquefaction technologies (e.g., field-tests of two Fischer-Tropsch units with respective capacities of 5000 tons/year and 750 tons/year, construction of a 6 tons/day direct-coal-liquefaction process development unit, and development of a direct-coal-liquefaction catalyst); coal-based poly-generation technology (e.g., supported the demonstration of advanced technologies in a poly- generation plant); ultra-supercritical power generation technology (e.g., supported the demonstration of two 26.25 MPa/600°C/600°C units); and SO2 and NOx control technologies.

2 Yuan is the unit of Chinese currency, Renminbi. 1 yuan is about 0.125--0.122 U.S. dollar in 2005. 3 • A number of Chinese institutions are conducting basic research on carbon-capture technologies including oxy-fuel combustion, membrane separation, and chemical looping combustion. China’s interests in enhanced oil recovery (EOR), enhanced coal-bed methane (CBM) production, and products requiring CO2 as feedstock have led to modest RD&D efforts in CO2 utilization, which are helpful in preparing China for future innovation in technologies to be used in large-scale CO2 storage.

• Three key issues, however, remain. First, China’s research, development and demonstration (RD&D) agenda for advanced-coal technologies (ACTs)3 has been largely shaped by concerns over oil security, energy efficiency, and local air-pollution control. The climate issue has not been a major factor thus far. Second, China’s RD&D efforts are severely constrained by a lack of financial support. While the central government is interested in having newer and advanced technologies and technologies that can address long-term challenges, the limited financial support it can provide restrains its influence on the technology choices made by firms, which favor options that have less technological uncertainty and have better market potential in the near-term. Third, there is no substantial international aid to China’s RD&D in carbon management for its coal-based energy system in spite of its enormous global implications.

Carbon capture and storage

• Carbon capture and storage (CCS) is a key technology pathway to reduce CO2 emissions while the world, including China, continues to rely on fossil fuels. Publicly available information indicates that China has good prospects for geologic CO2 storage. But capacity estimates without detailed geological assessments (including examining seismic and well data) are of limited value. Detailed geological assessments are needed to quantify the storage capacity.

• The cost of geological assessment is a very small fraction of the total cost of capturing and sequestering CO2, which includes, from high to low contributions, the costs of capture, transportation and injection, monitoring and verification.

• Because CO2 transportation and storage account for a large fraction of the whole cost of CCS, close proximity between source and sink is an important criterion in ranking storage sites, in addition to other criteria including porosity, permeability, and seals. In the Asian-Pacific region, China (especially its northeast regions) has a relatively good match between large, concentrated CO2 sources and storage sites with good prospects. The six largest point sources of CO2 emissions in the world (all power stations with capacities over 3.6 GW each) are located in China.

• An assessment of China’s CO2-storage capacity would require a long and large-scale efforts because of its complex geology. Costs of assessing several basins that matter

3 Advanced coal technologies refer to clean-coal technologies (CCTs) and carbon capture and storage (CSS) technologies for coal-based energy system. CCTs are developed to improve coal-use efficiency and to lower the emissions of environmental pollutants including SOx, NOx, particulate matters, mercury. Mitigating CO2 emission is not a primary target of CCTs. 4 the most, however, should be relatively low. Such basins are those that are near large and concentrated CO2 sources and appear to have favorable geologic conditions. They include Songliao, Bohainan-Liaodong, Sichuan, Jianghan, Ordos, and Subei. With proper cooperation from Chinese government, they could be assessed fairly quickly and easily.

The hydrogen economy

• China’s central government has chosen “hydrogen and fuel cell technologies” as one of the eight priority areas in its energy-technology-innovation strategy through 2020, which aims to address a number of energy and environmental issues including energy supply, oil security, local and regional environmental pollution, and greenhouse-gas emissions. This strategic choice was based on the understanding that hydrogen is a clean energy carrier and is a fundamental measure to reduce China’s reliance on oil and its CO2 emissions. A specific goal of the government is to achieve commercial use of hydrogen fuel-cell vehicles by 2020. To achieve this goal, the central government will support the R&D of highly-efficient, low-cost hydrogen production and storage technologies, as well as the core technologies of hydrogen fuel cells for both vehicle and stationary uses.

• A similar goal—making the wide use of hydrogen-fueled fuel-cell vehicles by 2020 practical and cost-effective—was announced by U.S. President George W. Bush in his Hydrogen Fuel Initiative (2003) and FreedomCAR Initiative (2002). The U.S. DOE Hydrogen from Coal Program was designed to support the Hydrogen Fuel Initiative, DOE’s goals in the Hydrogen Posture Plan, and the FutureGen project. Through joint public and private research, development and demonstration, this program will develop advanced technologies to produce, store, deliver, and utilize affordable coal-based hydrogen. One of its primary goals is to demonstrate, by the end of 2015, a 60-percent efficiency, near-zero emissions, coal-fueled hydrogen and power co-production facility that reduces the cost of hydrogen by 25 percent compared to current coal-based technology. In the utilization area, this program will support the development of a hydrogen and/or hydrogen/natural-gas mixture fuel protocol and engine modifications for advanced engine systems that have the potential to act as interim technologies until fuel cells advance to the point of commercial viability.

• Wide use of hydrogen-fueled fuel-cell vehicles faces a number of major barriers and requires revolutionary breakthroughs in hydrogen production, storage, and utilization technologies: (1) the cost of fuel cells is still too high for practical application in vehicles; (2) the most mature on-board hydrogen-storage technologies (liquefied hydrogen and compressed hydrogen gas) are not long-term practical options for light- duty vehicles; (3) wide use of hydrogen by the public poses safety risks, and hence liability issues, that remain to be fully understood; (4) hydrogen is a very expensive alternative to gasoline and diesel; (5) the infrastructure for hydrogen delivery is extreme costly, which leads to a “chicken-and-egg” problem; (6) hydrogen cars have low promise as a CO2-mitigation option because of their lack of cost-effectiveness; (7) hydrogen cars have little or no apparent advantage over hybrid vehicles (especially

5 electric hybrids that can be plugged into grid) in the near term in terms of first cost, cost of operation, convenience in fueling, or environmental performance.

• Transitioning to a hydrogen economy will take several decades. Even with technological breakthroughs and stringent greenhouse-gas caps, hydrogen vehicles are unlikely to penetrate the transportation sector in a major way—or have noticeable impact—in next 30-40 years.

Policy suggestions

The workshop generated a number of suggestions on near-term actions that have the potential to facilitate China’s transition to a coal-based energy system that has the appropriate capability to respond to future climate-change policy while still being able to provide affordable energy services. It was felt that highest priority should be given to measures in two broad categories: (1) producing the well-informed, balanced, and independent assessments that are needed to improve the understanding of China’s long- term energy challenges and the potential of a variety of technologies; and (2) enhancing the research, development, and demonstration of technologies with high potential to facilitate this transition.

• Rigorous assessments of potential post-Kyoto arrangements addressing global climate change and their implications for China’s energy systems are needed. Two questions are particularly important: (1) When will China decide to cap its emissions of CO2?, (2) What demands will such caps make on the electricity sector as a function of time?

• Current Chinese energy-technology strategies need critical review to identify gaps between what is now in place and what will be needed to meet the demands of plausible greenhouse-gas-reduction scenarios. Developing new strategies requires a good understanding of a variety of technological options that have been well assessed for circumstances in OECD countries, but not in China. The potential of these technologies for addressing China’s long-term energy challenges and the difficulties in acquiring them—either through technology transfer or domestic innovation—are particularly important.

• A nation-wide roadmap needs to be developed—and regularly reviewed during the course of implementation—for developing and deploying the advanced-coal technologies that China will need. Among many objectives of the roadmapping process, two major ones are (1) to unify and integrate industry-wide roadmaps (e.g., electricity industry, coal industry, chemical industry, environmental agencies and organizations) and (2) to provide guidance to firm-level technology roadmaps. The nation-wide roadmap needs to specify technology destinations, targets for their performance and costs, critical technology needs, and implementation strategies.

• The central government needs to integrate current funding sources for the RD&D of advanced-coal technologies. In order to sufficiently and efficiently support the implementation of the technology roadmap, governmental funding needs to be significantly increased to an appropriate level. Favorable policies need to be adopted

6 to encourage firms to increase their investments in RD&D for newer and riskier advanced-coal technologies.

• Broad incentives need to be adopted in China to facilitate the deployment of the best advanced-coal technologies. Possible incentives include low-carbon portfolio standards, performance standards, putting a price on carbon emissions (tax or tradable permits), targeted subsidies for construction & production, loan guarantees, subsidized loans, compensation for delays and below-expectation performance, and per-kWh production subsidies.

• Capacity building in a number of areas—including research, assessment, finance, construction, operation and management—is also needed to effectively implement the suggestions listed above.

7

Advanced-Coal Technologies in a Sustainable Energy System: Preparing and Preserving Appropriate Technological Options in China

September 19--20, 2005 John F. Kennedy School of Government, Harvard University, Cambridge, MA

Agenda

Monday morning, September 19, 2005 in Taubman ABC

8:00‐‐8:30 Continental breakfast 8:30–8:40 John P. Holdren, Harvard University, Welcome & Opening Remarks 8:40–8:50 SHANG Yong, Ministry of Science and Technology, Welcome & Opening Remarks 8:50–9:00 Guodong Sun & LI Wenhua, Goals and Agenda of the Workshop 9:00–10:30 Session 1: New Developments in Energy Policy in China and the United States Moderator: Henry Lee (Harvard University) Presentation 1: John P. Holdren (Harvard University), Recent Trends in U.S. Energy and Climate Change Policy Presentation 2: LI Wenhua (CCRI & MOST), Recent Progress of CCTs in China under the Support of 863 Program 10:30–11:00 Coffee Break 11:00–12:30 Session 2: Poly‐Generation: The Major Technological Challenges Moderator: LI Wenhua (China Coal Research Institute) Presentation 1: Neville Holt (EPRI), Advanced Coal and Gasification Technologies for China Presentation 2: SUN Qiwen (Yanzhou Coal), Polygeneration of Chemicals, Liquid Fuels and Power: Strategy and Its Implementation Presentation 3: Gary Stiegel (NETL), Technology Issues and R&D Needs 12:30—14:00 Guest Speaker: Gardiner Hill, Manager of Environmental Technology, BP Buffet Lunch

8 Monday afternoon, September 19, 2005 at Taubman ABC

14:00–15:30 Session 3: Policy, Economic, and Institutional Issues for Poly‐Generation Moderator: Jeff Miller (The Tremont Group) Presentation 1: REN Xingkun (Shenhua Group), Shenhua Coal Conversion Technology Research and Industry Development Presentation 2: Bill Rosenberg (Harvard University & Carnegie Mellon University), Gasification as a Strategic Energy and Environmental Option Presentation 3: XU Shisen (TPRI), Green Coal-based Power Generation (GreenGen) for Tomorrow’s Power 15:30–16:00 Coffee Break 16:00–17:30 Session 4: Carbon Capture and Storage Moderator: Dan Schrag (Harvard University) Presentation 1: Julio Friedmann (LLNL), Carbon Capture and Geological Storage: Technology Status and Opportunities in China Presentation 2: Jennie Stephens (Clark University), CO2 Storage Potential in Geologic Formations in China Presentation 3: CAI Ningshen (Tsinghua University), R&D Status for CO2 Capture and Utilization in China 17:30 Adjourn 18:30 Reception and Dinner Hosted by ETIP/Harvard Tuesday morning, September 20, 2005 at Taubman ABC

8:00—8:30 Continental Breakfast 8:30–10:00 Session 5: The Hydrogen Economy Moderator: Kelly Sims Gallagher (Harvard University)

Presentation 1: Joseph Romm, The Car and Fuel of the Future Presentation 2: ZHENG Fangneng (MOST), Development Strategies for China’s Energy Technologies Presentation 3: Robert Wright (DOE), Coal-based Hydrogen Production 10:00–10:30 Coffee Break 10:30–11:30 Session 6: Discussions on near‐term measures for long‐term challenges Chair: John P. Holdren (Harvard University) 11:30–11:40 Closing Remarks from SHANG Yong and John P. Holdren 11:40‐‐ Informal Buffet Lunch

9 Participants

China

(Family names of Chinese participants are in CAPITAL letters.)

The Honorable SHANG Yong, Vice-Minister of the Research and Development Center of the Ministry of Ministry of Science and Technology, China. Mr. SHANG Science and Technology (MOST) until 2004. is the Vice Minister for Science and Technology in China, where he is responsible for the formulation of strategies JIN Ju, Minister-Counsellor (Science and Technology), for China's science and technology development and Embassy of the People’s Republic of China in the United research. Prior to joining the Ministry of Science and States. Mr. JIN Ju is currently the Minister-Counsellor for Technology, he was Associate Professor and Deputy Science and Technology in the Embassy of People’s Dean of the Graduate School of China University of Republic of China. Before he was assigned to the post, he Mining, where he also received his PhD in mechanical had been working as the Deputy Director-General in the engineering. Department of International Cooperation in the Ministry of Science and Technology of China from 2000-2005 and CAI Ningsheng, Professor, Tsinghua University. Dr. Cai served as Science Counsellor in the Chinese Embassy in is professor and deputy director of Department of Australia from 1998-2000 and as First Secretary in the Thermal Engineering at Tsinghua University, Beijing, Chinese Embassy in USA from 1995-1997. He received China. He holds a doctoral degree in thermal engineering bachelor degree of mechanical engineering in China and from Southeast University (SEU) of China. He is also master degree of Technology Management in SPRU of deputy director of the National Engineering Research England. His interests are in science policy and energy Center of Clean Coal Combustion, and chief expert of policy. expert group for gas turbine technology of the National High-tech R&D (863) Program of Ministry of Science LI Wenhua, Director of Expert Group for Clean Coal and Technology (MOST) of China. His expertise Technologies, China High-tech Research and encompasses clean coal combustion combined cycle Development Plan, Ministry of Science and Technology; power generation, energy systems analyses, gas turbine, and Deputy Director, Beijing Research Institute of Coal hydrogen and fuel cells. Prior to joining the Tsinghua Chemistry. Dr. Wenhua Li chairs the Expert Committee University, Dr. Cai was professor and director of Thermo- for Clean-Coal Technologies in China’s National High Energy Engineering Research Institute at the SEU, and Technology R&D Program (“863” Program), Ministry of chief expert of expert group for clean coal technology Science and Technology. He is also the Deputy Director R&D of the 863 Program of MOST of China. He was of the Beijing Research Institute of Coal Chemistry. He is awarded a prize on scientific and technological an expert on coal chemistry, coal gasification and achievement by the Ministry of education of China for the liquefaction. He holds a PhD degree in Coal Chemistry Pressurized Fluidized Bed Combustion Combine Cycle from China Coal Research Institute. (PFBC-CC) pilot plant R&D as a principal researcher.

LI Wuqiang, Counsellor for Science and Technology, CHEN Shuoyi, Consul, The Consulate General of the The Consulate General in New York of the People’s People’s Republic of China in New York. Mr. Chen is Republic of China. Dr. LI graduated from Xi'an Jiaotung Counsel for Science and Technology at the Chinese University, got his doctorate in Orsay University in Paris. Consulate General in New York. He received his B.S He worked as first secretary and counselor in the Chinese degree in mechanics from the Shanghai University of Mission to the EU in Brussels and the Chinese Embassy Technology in 1982. After graduation, he worked for ten in Denmark. Before he was assigned to the present post, years as an engineer in Shanghai and Beijing, first at he had been working as Deputy Director-General in the Shanghai Electric Power Equipment Research Institute High and New Technology Department of the Ministry of and later Beijing Research Institute of Coal Chemistry. Science and Technology of China, responsible for R&D From 1991 to 1998, he served as Deputy Division of information technology and advanced manufacturing. Director in the Department of Industry of the State Science and Technology Commission and managed the R&D programs in clean-coal technology. After that, he REN Xiangkun, Senior Engineer, Shenhua Group. Mr. was the Director of Energy Division in the High-tech REN graduated from Shangdong Chemical Engineering Institute in 1983. He has been engaged in R&D and technical management work on coal chemical process and

10 equipment. From 1983 to 2002, he was the Vice President XU Shisen, Thermal Power Research Institute. Dr. Xu of Northwest Chemical Engineering Research Institute Shisen is Deputy Chief Engineer of Thermal Power and Adjunct Professor at Northwest University and Xian Research Institute of China. He received doctor degree in Jiaotong University. He was the manager of the Coal thermal power engineering from the Xi'an Jiaotong Liquefaction Technology Department of Shenhua Group University of P.R.China. He has eighteen years of Corporation Ltd from 2002 to 2003. Since 2003, he has experiences on coal combustion, gasification and IGCC. been the Deputy General-Manager of Research Center He was in charge of the study project on IGCC's key Company of China Shenhua Coal Liquefaction and technologies that funded by Ministry of Science and directing the Shenhua Coal Liquefaction Research Center, Technology of China. Now he is the research group and Chairman of the Board of Shenhua Coal Liquefaction director of “GreenGen” project of China Huaneng Group Research Center Company Ltd, in charge of technology Corporation. R&D. Mr. Ren Xiangkun worked as chief scientist of 863 coal gasification project of the state. During working ZHENG Fangneng, Director, Division of Energy, period in Shenhua, Mr. Ren Xiangkun is the responsible Department of High-tech Research, Development and person of technology and R&D of coal liquefaction Industrialization, Ministry of Science and Technology. Mr. project, presides the development of Shenhua Direct Coal ZHENG graduated from Tsinghua University in 1985 Liquefaction Process, the development of product oil with a BS degree in Electrical Engineering, and gained a quality upgrading and work-up technology and molten MS degree in 1988 from Electric Power Research residue gasification scheme of coal liquefaction etc. Institute of China (EPRI, China). Before joined in the Ministry of Science and Technology (MOST) of China in SUN Qingyun, Research Assistant Professor, Natural 1994, he had engaged in electric power system studies at Resource Analysis Center, and Resource Management EPRI of China for about 6 years. He used to work at Department, West Virginia University. different Departments in MOST, such as at the Department of International Cooperation as a program officer, at the General Office as an assistant to the former SUN Qiwen, Yanzhou Coal. He earned his Ph. D. from vice minister. Right now, Mr. ZHENG is the director of the East China University of Science and Technology Energy Division of the Department of Hi-Tech and did his post-doc study in the Netherlands. He has Development and Industrialization, MOST, in charge of been working in the area of CTL for more than 10 gears, Clean Coal Technology (CCT) program. As a coordinator first at Sasol and now with Yankuang. He is specialized in for CCT of MOST, Mr. ZHENG visited the United States reaction engineering, methanol synthesis and FT synthesis. many times and is now coordinating a joint research He has published more than 30 articles in journals like project on Roles of Government in the Innovation and “Chemical Engineering Science”. Use of CCT in China and US between his Department and Harvard University.

The United States (invited speakers, moderator and special guests)

Julio Friedmann, Carbon Management Program, depositional systems, basin & range tectonics and Energy & Environmental Directorate, Lawrence sedimentation, paleoclimatology, sequence stratigraphy, Livermore National Laboratory. Julio received his B.S and landslide physics. and M.S. degrees from M.I.T., followed by a Ph.D. at the University of Southern California. After graduation, he Neville Holt, Technical Fellow - Advanced Coal worked for five years as a senior research scientist in Generation Technology, Electric Power Research Houston, first at Exxon and later ExxonMobil. He next Institute. Neville Holt joined EPRI in 1974 and is worked as a research scientist at the University of currently Technical Fellow– Advanced Coal Generation Maryland, affiliated with the Joint Global Change Technology managing a program of Future Coal Research Institute (JGCRI) at the University of Maryland, Generation Technology Options. In recent years he has and the Colorado Energy Research Institute at Colorado been increasingly involved in generating technical and School of Mines. Recently appointed head of the Carbon economic information and analysis on various options for Management Program for Lawrence Livermore National reduction of CO2 emissions to inform discussions of the Laboratory, he was invited by MIT to joint their team on Global Climate issue. He has provided assistance to U.S. the Future of Coal Energy Report. He is the senior science DOE, U.S.AID, the World Bank and the Asian coordinator for the Teapot Dome National Carbon Development Bank in evaluation of Clean Coal Storage Test Center. His research interests include carbon Technology opportunities in China and India and has sequestration, hydrocarbon systems, deep-water

11 conducted seminars in the Asia Pacific region. He also significant transactions in the early stages of the industry. manages the Gasification Users Association (GUA) and is Prior to joining Goldman Sachs, he led a revenue bond the author an Encyclopedia article on IGCC. He has also rating group with Standard & Poor’s Corporation. Mr. organized or co-organized the Annual Conference on Miller is a member of the boards of Alliance Resource Gasification Technology for the past 23 years. He is a Partners LP, Longhorn Partners Pipeline LP, Nexant Inc., graduate (MA Chemistry) of Cambridge University. His Powerspan Corp., the World Resources Institute, and the previous employment includes stints at Cities Service Oil Yale Alumni Fund; and is a member of the Gas Co., C.F.Braun and the APV Co.(UK). Technology Institute’s Strategic Advisory Council and the Advisory Committee for MIT’s Study of the Future of Coal. Mr. Miller received his BA from Yale University, Gardiner Hill, Manager Group Environmental and his MPA from the John F. Kennedy School of Technology, Group Technology, BP. Mr. Hill is Manager Government, Harvard University. of Group Environmental Technology for Group Technology in BP, responsible for developing strategies and new technologies that the business can implement to Joseph (Joe) Romm, Dr. Joseph Romm is a leading support delivery of BP’s commitments on environmental expert on clean energy and advanced vehicle technology. performance and brand values. In addition to this, He is author of,"The Car and Fuel of the Future," for the Gardiner is Chairman of the board for the International National Commission on Energy Policy and The Hype Joint Industry cooperative project, called the CO2 Capture About Hydrogen: Fact and Fiction in the Race to Save the Project (CCP), Vice Chair of the EU 7th Framework Climate, named one of the best science and technology Technology Platform for Zero Emissions Fossil Fuel books of 2004 by Library Journal. Romm was Acting Power Plants and is also the BP manager responsible for Assistant Secretary at DOE's billion-dollar Office of the BP/Ford/Princeton Carbon Mitigation Initiative (CMI), Energy Efficiency and Renewable Energy during 1997. at Princeton University. Prior to his current position, he He is currently executive director of the Center for was the CO2 Program manager in Group Technology. Energy and Climate Solutions (www.cool-companies.org), Gardiner has held a wide range of Petrotechnical, Project and a principal with the Capital E Group (www.cap- and Relationship management roles, as well as technical e.com). Dr. Romm holds a Ph.D. in physics from M.I.T. roles. Recent roles have included; Development Manager for BP’s Western North Slope Business Unit, EOR Scott M. Smouse, International Coordination Team Program Manager at MPU Business Unit, Delivery Leader, Office of Major Demonstration Projects, Manager for the Wytch Farm oilfield in the UK, and Head Strategic Center for Coal, National Energy Technology of Production Technology and Operations in Aberdeen. Laboratory. Over 25 years experience in nearly every Mr. Hill possesses 20 years of technical and managerial aspect of fossil energy utilization and power generation. experience that is directly relevant to technology, business Since 1996, coordinated all of NETL’s international and project management. He holds MSc. and BSc. activities, working with senior Department and other U.S. degrees in petroleum and civil engineering from Heriot- government officials on a wide variety of bilateral and Watt University in Scotland. multilateral initiatives and projects. Worked with senior officials from about 30 countries on a variety of Jeff Miller, The Tremont Group. Jeff Miller is a partner cooperative research, development, and demonstration of The Tremont Group, a private investment firm based in (RD&D) projects; technology and market assessments; Boston with a focus on energy and the environment. He technology transfer; and policy development activities. is also partner and co-head of The Beacon Group Energy Since 2002, served as Chair of the Expert Group on Clean Funds, a portfolio of over 30 private equity investments Fossil under the Asia Pacific Economic Cooperation globally, throughout the energy industry, ranging from (APEC) forum. Serves as the Technical Advisor to senior traditional (oil & gas, coal mining, petrochemicals, management in DOE’s Office of Fossil Energy on the pipelines), to early-stage venture (micro-turbines, High-Level U.S.-India Energy Dialogue. flywheels, power technology, fuel cells, environmental controls). He was a founding Partner in 1993 of The Jennie Stephens, Assistant Professor of Environmental Beacon Group, a private investment and merger advisory Science and Policy, Department of International firm, which was acquired by JPMorgan Chase in 2000. Development, Community, and Environment, Clark Most recently, he was a Partner with JPMorgan Partners, University. Dr. Stephens' current research focuses on the private equity arm of JPMorgan. Prior to the government involvement in the advancement of climate formation of The Beacon Group, Mr. Miller was with change mitigation technologies, particularly technologies Goldman, Sachs & Co. for 15 years. At Goldman Sachs, associated with CO2 capture and storage. Other research he responsible for all non-public energy financing; and he interests have included assessing chemical approaches to was the founder and global head of the non-regulated carbon storage as well as analyzing the strategic use of power generation group, financing many of the most scientific and technical information in government-

12 industry interactions during the development and refining of coal-derived liquids. Mr. Stiegel has a implementation of environmental regulations. She Bachelors and Masters degree in chemical engineering maintains an affiliation and continues research and a Masters in Business Administration from the collaborations with the Energy Technology Innovation University of Pittsburgh. Prior to joining the Department Project (ETIP), where she has been a research fellow. of Energy, Mr. Stiegel was a process engineer for Union She was a visiting lecturer at the Massachusetts Institute Carbide Corporation. During his career, Mr. Stiegel has of Technology in 2004-2005, and she has also taught at published over fifty technical articles on various aspects both Boston University and Tufts University. She earned of coal conversion and reactor engineering and is a her Ph.D. (2002) and M.S. (1998) in Environmental registered Professional Engineer in Pennsylvania. Science and Engineering at the California Institute of Technology and her B.A. (1997) in Environmental Robert J. Wright, Senior Program Manager, Office of Science and Public Policy at Harvard. Sequestration, Hydrogen and Clean Coal Fuels, Office of Fossil Energy, U. S. Department of Energy. Dr. Wright Gary J. Stiegel, Technology Manager, Gasification, has more than forty years of experience in energy National Energy Technology Laboratory. Mr. Gary J. technologies and electrical power generation, both fossil Stiegel has been with the Department of Energy’s fuels and nuclear. He is responsible for providing support National Energy Technology Laboratory over twenty-nine to decision makers for programs and policy addressing years and is currently Technology Manager for global climate change, hydrogen production and geologic Gasification. In this capacity, he is responsible for carbon sequestration. These efforts focus on zero strategic planning, budget formulation, program emissions technologies for energy production that development and oversight, and outreach activities for emphasize fossil fuels. Dr. Wright has represented the DOE’s Office of Fossil Energy’s gasification program. United States in discussions with both domestic Prior to his present assignment, Mr. Stiegel served as the organizations and foreign countries with regard to the Program Coordinator for the Department’s Indirect benefits of the Carbon Sequestration Leadership Forum, Liquefaction and Gas-to-Liquids programs and spent ten the FutureGen project and the International Partnership years in R&D focusing on coal hydrogenation and the for the Hydrogen Economy.

Harvard University

Ananth Chikkatur, Research Fellow, Belfer Center for research in ocean acoustics at Columbia and later served Science and International Affairs, Kennedy School of as Director for Nuclear Test Detection, and Deputy Government, Harvard University. Ananth Chikkatur Director of the Advanced Research Projects Agency joined ETIP as a post-doctoral research fellow in October (ARPA) in the Department of Defense, Assistant 2004. Chikkatur is formally trained as an experimental Secretary of the Navy for Research and Development atomic and optical physicist. He received his doctorate in (ASNR&D), Assistant Executive Director of the United February 2003 from Massachusetts Institute of Nations Environment Programme (UNEP), Associate Technology (MIT), where he explored the physics of Director for Applied Oceanography of the Woods Hole dilute gas Bose-Einstein condensation with Nobel Oceanographic Institution (WHOI), Administrator of Laureate Prof. Wolfgang Ketterle. Dr. Chikkatur received NASA, President of the American Association of his Bachelor degree in Physics from the University of Engineering Societies (AAES), and Vice President of Rochester in 1997. Upon completing his dissertation, Dr. General Motors Corporation (GM) in charge of Research Chikkatur spent a year in India travelling to various Laboratories. He retired from GM in 1993 before joining villages and institutions to study the many complexities of the Kennedy School of Government at Harvard sustainable energy development. Dr. Chikkatur’s current University. He is a member of the National Academy of research interests include implementing cleaner coal Engineering, the American Academy of Arts and Sciences, technologies and advanced biomass gasifiers in India, a Foreign Member of the UK Royal Academy of rural electrification, and international climate change. Engineering, and a fellow or member of a number of professional societies.

Robert A. Frosch, Senior Research Fellow, Belfer Center for Science and International Affairs, Kennedy Kelly S. Gallagher, Director of ETIP, Belfer Center for School of Government, Harvard University. Dr. Frosch is Science and International Affairs, Kennedy School of a theoretical physicist by education. He conducted Government, Harvard University. She has a M.A.L.D.

13 and Ph.D. in International Affairs from the Fletcher private and public organizations (including the School of Law and Diplomacy at Tufts University. Her Department of Energy, Interior, U.S. EPA, the National research interests include energy technology innovation, Park Service, the Pew Foundation, the Brazilian National international energy cooperation, energy policy, climate Development Bank, the Inter American Development change policy, international environmental policy, and Bank), and has served on several corporate boards. His technology transfer/economic development questions. She research interests have focused on electricity and water has an A.B. in international affairs and environmental privatization, environmental management, global climate studies from Occidental College. She speaks Spanish and change, and the political economy of energy. He is the basic Mandarin Chinese. Her book, China Shifts Gears: editor of Shaping Responses to Climate Change, the Automakers, Oil, Pollution, and Development, will be report of the Harvard Global Environment Policy published by MIT Press in 2006. Program and is the author of recent reports on Electricity Restructuring and the Environment, and Distributive

Electricity Generation. John P. Holdren, Teresa and John Heinz Professor of

Environmental Policy; Director of the Program on Science, Technology, & Public Policy, Belfer Center for Hongyan Oliver, Research Fellow, Belfer Center for Science and International Affairs, Kennedy School of Science and International Affairs, Kennedy School of Government, Harvard University. He is also a faculty Government, Harvard University. Hongyan He Oliver member in Harvard’s Department of Earth and Planetary holds a Ph.D. from the Civil and Environmental Sciences and Director of the Woods Hole Research Engineering Department, Stanford University (2005), and Center. Trained in engineering and plasma physics at MIT a Master’s degree (1999) and a Bachelor’s degree (1996) and Stanford, Dr. Holdren co-founded in 1973 and co-led from the Environmental School, Peking University. Her for 23 years the interdisciplinary graduate program in current research focuses on sustainable transportation in energy and resources at the University of California, China, in particular, technologies and policies concerning Berkeley. His work has focused on causes and vehicle pollution control and fuel efficiency consequences of global environmental change, analysis of improvement. Her general research interest includes energy technologies and policies, ways to reduce the environmentally friendly technology transfer, dangers from nuclear weapons and materials, and the environmental policy design, and policy implementation interaction of content and process in science and evaluation. technology policy. He is a member of the National

Academy of Sciences (NAS), the National Academy of Engineering (NAE), the American Academy of Arts and William Rosenberg, Senior Fellow, Belfer Center for Sciences, and the Council on Foreign Relations, and in Science and International Affairs, Kennedy School of February 2005 he became the President-Elect of the Government, Harvard University; and Professor, American Association for the Advancement of Science. Department of Engineering and Public Policy, Carnegie Dr. Holdren served as a member of President Clinton's Mellon University. Appointed by President George Bush, Committee of Advisors on Science and Technology from Mr. Rosenberg was the Deputy Administrator of the U.S. 1994 to 2001 and in that capacity led studies requested by Environmental Protection Agency and led EPA’s Clean the President on protection of nuclear-explosive materials, Air Program. Working with Roger Porter, Mr. Rosenberg the U.S. fusion energy program, U.S. energy R&D implemented the Clean Air Act Amendments of 1990. He strategy for the challenges of the 21st century, and was specifically responsible for making market based international cooperation on energy. From 2002 until the programs work within the EPA's regulatory framework. present he has been Co-Chair of the foundation-funded, Mr. Rosenberg's research at the Kennedy School of bipartisan National Commission on Energy Policy. Government is focused on developing a financing and regulatory plan to support large-scale investment in

electricity generation from coal gasification, carbon Henry Lee, Jaidah Family Director of Environmental dioxide sequestration, and hydrogen production and Natural Resource Program, Belfer Center for Science and utilization. Mr. Rosenberg’s career has also spanned International Affairs, KSG, Harvard University. Mr. Lee fourteen years as a corporate lawyer and energy is also Faculty Co-Chair of the School’s International environmental consultant, eleven years as a real estate Infrastructure Program, and a Lecturer in Public Policy. developer and venture capitalist and thirteen years of Before joining the School in 1979, Mr. Lee spent nine public service. years in Massachusetts state government as Director of the State's Energy Office and Special Assistant to the Governor for environmental policy. He has served on Ambuj Sagar, Senior Research Associate, Energy numerous state, federal, and private advisory committees Technology Innovation Project (ETIP) at the John F. on both energy and environmental issues, works with Kennedy School of Government, and the Assistant Dean

14 for Strategic Planning at the Division of Engineering and 2000 – 2004, Stowe worked in business, most recently in Applied Sciences (DEAS) at Harvard University. Dr. project management and sales with Human Factors Sagar’s current research mainly focuses on various International (HFI). HFI is one of the world’s leading aspects of energy technology development and firms in the field of software and Web usability. Among deployment, global climate change, and high-tech other projects with HFI, he co-managed a large Web innovation, with a particular focus on India. Dr. Sagar has design project for the Singapore government. Stowe holds also published on other issues including industrial a Ph.D. in political science from MIT, where he studied ecology, energy and environmental policy, environmental with Eugene B. Skolnikoff, a leading scholar in the field justice, and human development. Dr. Sagar holds a Ph.D. of science, technology, and international affairs. His B.A. and an M.S. in Materials Science, and an M.S. in is in physics from Harvard. He taught political science Technology and Policy, from the Massachusetts Institute and public policy at Maharishi University of Management of Technology. (MUM) in Iowa from 1990-95, and has been a visiting member of the faculty since 1983. He also served as

Director of Policy Development for MUM’s Institute of Daniel Schrag, Director of Harvard University Center Science, Technology and Public Policy. Stowe’s research for the Environment, Harvard University. Daniel Schrag has dealt with the applications of science and technology is Professor of Earth and Planetary Sciences at Harvard for development and on the domestic political University and the Director of the Harvard University determinants of foreign technical assistance. Center for the Environment. Schrag studies climate and climate change over the broadest range of Earth history. He has examined changes in ocean circulation over the Guodong Sun, Research Fellow, Belfer Center for last several decades, with particular attention to El Niño Science and International Affairs, Kennedy School of and the tropical Pacific. He has worked on theories for Government, Harvard University. Guodong applies tools Pleistocene ice-age cycles including a better and insights from engineering, natural science, economics, determination of ocean temperatures during the Last and management science to address policy issues in Glacial Maximum, 20,000 years ago. He has also energy systems, environmental management, and developed the Snowball Earth hypothesis, proposing that technology-policy interactions, paying particular attention a series of global glaciations occurred between 750 and to China. Using interdisciplinary approaches, Guodong 580 million years ago that may have led to the evolution has studied a variety of real-world problems. His recent of multicellular animals. He is currently working with research includes an analysis of the robustness of economists and engineers on technological approaches to advanced coal-based power-generation and fuel- mitigating future climate change. Among various honors, production technologies under deep uncertainties, an Schrag was awarded a MacArthur Fellowship in 2000. assessment of China’s innovation system for advanced Schrag came to Harvard in 1997 after teaching at energy technologies. His previous experiences included Princeton, and studying at Berkeley and Yale. integrated assessment of advanced energy technologies and strategies for China’s air pollution control at Carnegie

Mellon University, conducting research and advising Robert (Rob) Stowe, Assistant Director of the Program Chinese government on matters of energy and global for Science, Technology and Public Policy, Kennedy climate change policy at the National Development and School of Government, Harvard University. Rob Stowe Reform Commission. Guodong received his doctoral has worked in non-profit, academic, and business degree in Engineering and Public Policy at Carnegie organizations. In the late 1980s, he was Vice-President for Mellon University. He also earned a master’s degree in Programs for the Citizens Network for Foreign Affairs, System Engineering and a bachelor degree in Thermal which provides assistance in agriculture and agribusiness Turbomachinery from Tsinghua University, China. He to developing countries. He later served as a consultant to was the first E7 Scholar in Sustainable Energy CNFA in Russia and Ukraine. He has consulted to the Development. World Bank on agricultural projects in Uganda. From

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This workshop report was prepared by Guodong Sun. The interpretations of the presentations and remarks made in the workshop are his own.

This workshop was part of a collaborative research project on clean-coal technologies between the Energy Technology Innovation Project of Belfer Center for Science and International Affairs, Kennedy School of Government, Harvard University, the Department of High Technology of China’s Ministry of Science and Technology, and the China Coal Research Institute. Dr. Guodong Sun was the principal organizer of this workshop, in collaboration with Dr. Li Wenhua of the Beijing Research Institute of Coal Chemistry of the China Coal Research Institute. Guodong Sun and Li Wenhua are also leaders of this collaborative project on the U.S. side and Chinese side, respectively. An electronic copy of this report is also available online at http://bcsia.ksg.harvard.edu/energy. If you have any question regarding this workshop or the collaborative effort, please contact:

Dr. Guodong Sun Belfer Center for Science and International Affairs Kennedy School of Government, Harvard University 79 JFK Street Cambridge, MA 02138 USA Tel: (617) 384-9244 Fax: (617) 495-8963 Email: [email protected] or [email protected] (supports Chinese email) http://bcsia.ksg.harvard.edu/energy

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