Japanese clean coal project

JAPANESE ‘CLEAN COAL’ DEMONSTRATION PROJECT TAKES A STEP FURTHER

By Tetsuo Satoh | February 1, 2020

Construction has begun on the third step of a project to demonstrate the world’s first integrated coal-gasification fuel-cell (IGFC) combined cycle power plant with CO₂ capture. The five-year, $73.3-million project is a collaboration of the New Energy and Industrial Technology Development Organization (NEDO; Kawasaki City; www.nedo.go.jp) and Osaki CoolGen Corp. (Hiroshima Prefecture, both Japan; www.osaki-coolgen.jp). IGFC technology has the potential to reach a 55% thermal efficiency (higher heating value; HHV).

The IGFC demonstration project is composed of three steps (diagram): (1) the demonstration of oxygen-blown integrated coal-gasification combined-cycle (O₂-blown IGCC), which was completed in March 2019; (2) the demonstration of O₂ -blown IGCC with CO₂ separation and capture, which started in December 2019; and (3) the demonstration of IGFC with CO₂ separation and capture.

For the first step, a 170,000 kW-class demonstration test facility was constructed within the grounds of the Osaki Power Station of The Chugoku Electric Power Co. During the demonstration tests, coal particles were used to operate a 1,300°C-class gas turbine, while using the heat generated to operate a steam turbine for combined-cycle power generation. The performance, operability, reliability, and economic feasibility as a coal-fired power generation system was verified. The targeted thermal efficiency of 40.5% HHV was achieved for an O₂-blown IGCC using a 100°C-class gas turbine. They are forecasting a net thermal efficiency of approximately 46% will be achieved for a commercial plant that uses a 1,500°C-class gas turbine. Based on these results, they are expecting to reduce CO₂ emissions by about 15% compared to ultra-supercritical (USC) pressure pulverized-coal-fired power generation.

To demonstrate the second step, construction work on the CO₂-capture unit was completed last summer, and testing started in December 2019 and will continue through 2020. Meanwhile, construction has also begun on the third step, in which the fuel cell will be added to the O₂-blown IGCC to demonstrate the complete IGFC with CO₂ capture, which should begin late 2021 and run through 2022. Ultimately, the project aims to achieve a net thermal efficiency of approximately 47%, while capturing 90% of the CO₂, and a 40% of transmission end efficiency when applied to a 500-MW-class commercial unit.

Phasing-out-fossil-fuels

Scott Morrison has failed to develop a plan for phasing out thermal coal exports and for phasing out vehicles running on fossil fuels.

Simply claiming "you can't shut these down overnight" is a nonsense answer.

IEA - World Energy Outlook, 2019 - Thermal Coal Demise

A plan for phasing out both thermal coal exports and vehicles running on fossil fuels is straightforward.

Australia has seen how such plans work. It implemented one in phasing out vehicles that ran on leaded petrol.

1. Announce a date for the ban on new vehicles that use leaded petrol. 
2. Announce a date for the ban of the supply of leaded petrol. 

The period to the date of the first ban sees a burst of investment for the supply of fuel and of vehicles to use the new energy source.

The period to the date of the second ban allows for the gradual retirement of all vehicles using the fuel being replaced, and for winding down the supply chain for that fuel.
 
From a paper by Troy Whitford, Fuel Mandates have a History of Success and a Lesson for Bio Fuels Implementation. Australian Policy and History, April 2010.
URL: http://aph.org.au/fuel-mandates-have-a-history-of-success-and-a-lesson-for-bio-fuels-implementation/

"In 1981, Australian state and federal transport ministers met to address pollution problems. Driving the shift towards unleaded petrol were vast environmental and health concerns.

During the 1980s, automobile associations were critical of the introduction of unleaded fuel. The RACV opposed the implementation believing it was too costly. The oil industry was cynical, too, arguing the introduction of unleaded fuel did not follow from a technological breakthrough but rather a decision by ministers. Without doubt, the position taken by oil companies, automobile associations and other stakeholders regarding unleaded fuel changed over time.

Despite opposition to unleaded fuel, the Transportation Council adopted a program to mandate unleaded petrol by 1985. The implementation policy for unleaded fuel was undertaken in stages. Initially, regulations were made calling for all new motor vehicles made after January 1986 (manufactured within Australia or imported) to meet the new fuel requirements. The policy then called for a complete phase out of leaded fuel by 2002. Prior to the national mandate, states had led the way on unleaded fuel of which NSW took the lead. The decision to mandate was essential for implementing unleaded fuel. It forced car manufacturers, oil producers and consumers to make the transition."

Stockpiling 96 million tonnes of coal

A mysterious change has been made in the Australian Government's forecasts of thermal coal production.

In March each year the "Resources and Energy Quarterly" includes 6 year forecasts of thermal coal production and thermal coal exports. The difference between these two numbers might represent domestic consumption - which is likely to mean thermal coal burned in Australia's coal-fired power stations.

BUT... In the March 2019 edition, the amount of thermal coal produced but not exported suddenly jumped 33% above what has been shown in previous years.

This is a very large increase: up by 16 million tonnes a year from 48 million tonnes to 64 million tonnes a year.

• Where is all this extra thermal coal to go - 96 million tonnes in total over 6 years? 
• Is it to be stockpiled to avoid mines being moth-balled because production is far greater than what customers are ordering? 
• Is this a ruse being played out while the coal industry and Australian Government struggles to get the Adani coal mine out of the starting blocks?

Resources and Energy Quarterly March 2019 released today.
Thermal coal stockpiles are forecast to soar.
The excess of production over exports grows by 33%.
Up by 16 million tonnes a year from 48 million tonnes to 64 million tonnes. #mining #auspol pic.twitter.com/PhrNXkni6A

— Askgerbil Now (@Askgerbil) March 29, 2019

Coal lobbyists paid as adviser to Coalition Govt

Brendan Pearson - coal lobbyist and paid Coalition Government senior advisor

Exclusive

Minerals Council eyes Tania Constable as CEO

Jacob Greber

Apr 8, 2018 — 11.30pm

The Minerals Council of Australia may hire the head of a carbon capture and storage group as its next chief executive after major member BHP forced out the previous chief for being too coal friendly.

It is understood that Tania Constable, a former treasury official with more than 20 years experience in government industry and resources jobs, is a leading candidate for the job. An announcement is due within two weeks.

The appointment has been more than six months in the making after the nation's top resources lobby group unexpectedly parted ways with former CEO Brendan Pearson after BHP threatened to review its membership.

Tania Constable, CEO Co-operative Research Centre for Greenhouse Gas Technologies, is understood to be a favourite to take charge at the Minerals Council of Australia. Sean Davey

A spokesman for the MCA said the recruitment process is at "an advanced stage of completion" and that an announcement would be made once the process is finalised. "The MCA will not comment on rumour or speculation regarding candidates for the role."

Mr Pearson, who last week joined the office of Trade Minister Steven Ciobo as a senior trade advisor after helping Finance Minister Mathias Cormann negotiate with Senate crossbenchers on company tax cuts, was seen as being too supportive of coal interests.

The rumoured shift to Ms Constable, who would take over from acting MCA chief executive David Byers, suggests the council is continuing the shift away from the combative approach of Mr Pearson's predecessor Mitch Hooke, who spearheaded the politically tumultuous campaign against Labor's ill-fated mining tax in 2010.

Mr Pearson took over from Mr Hooke in January 2014, just as the Minerals Council absorbed the former stand-alone Uranium Association and Coal Council on the understanding it would continue to fight for coal and nuclear power in Australia.

His departure was seen as evidence of the growing impact of the global anti-coal lobby, which is putting pressure on big producers such as BHP to withdraw from the industry.

BHP said last week that it has severed ties with the World Coal Association over differences on how to combat climate change.

The resources giant – which earns around one fifth of its revenue from coal but is moving towards zero emissions from its businesses after 2050 – said it saw little benefit from staying on as a member.

The company was particularly unimpressed with remarks by WCA chief executive Benjamin Sporton in the Financial Review last September where he backed the Turnbull government's dumping of a clean energy target.

Ms Constable would come to the Minerals Council after a lengthy career as a policymaker across resources, energy and natural gas.

She was named as chief executive of CO2CRC (or the Co-operative Research Centre for Greenhouse Gas Technologies) in late 2014 by its chairman, former Labor resources minister Martin Ferguson.

CO2CRC describes its mission as developing carbon capture and storage (CCS) as a "socially, technically and commercially viable option for net zero emissions" and references research saying it won't be possible to keep global temperatures from rising by more than 2 degrees without CCS.

The MCA is a strong supporter of CCS and its website highlights that more than $300 million has been spent on projects to demonstrate the viability of CO2 capture and storage.

Prior to that post, Ms Constable was chief adviser for Treasury's personal and retirement income division, a job with a heavy tax policy focus. She was also a senior Industry Department official for more than four years where she advised the minister on oil and gas regulation, exploration and other mining activities.

She was awarded the Public Service Medal in 2014 for her work in the creation of Australia's liquefied natural gas and other energy industries.

It is understood the search for the CEO's position is being tightly managed by the MCA board.

Jacob writes about American politics, economics and business from our Washington bureau. He earlier was the Canberra-based economics correspondent and has held reporting jobs in Sydney, Zurich and Brisbane across more than two decades. Connect with Jacob on Twitter. Email Jacob at jgreber@afr.com.au

Successful transition from old to new technology

The transition from leaded to unleaded transport fuels begun in 1981 with a target end-date of 2002 is a good example of how the adoption of a long-term policy simplifies the making of investment decisions of stakeholders for new plant and equipment.

From a paper by Troy Whitford, Fuel Mandates have a History of Success and a Lesson for Bio Fuels Implementation. Australian Policy and History, April 2010.
URL: http://www.aph.org.au/fuel-mandates-have-a-history

"In 1981, Australian state and federal transport ministers met to address pollution problems. Driving the shift towards unleaded petrol were vast environmental and health concerns.

During the 1980s, automobile associations were critical of the introduction of unleaded fuel. The RACV opposed the implementation believing it was too costly. The oil industry was cynical, too, arguing the introduction of unleaded fuel did not follow from a technological breakthrough but rather a decision by ministers. Without doubt, the position taken by oil companies, automobile associations and other stakeholders regarding unleaded fuel changed over time.

Despite opposition to unleaded fuel, the Transportation Council adopted a program to mandate unleaded petrol by 1985. The implementation policy for unleaded fuel was undertaken in stages. Initially, regulations were made calling for all new motor vehicles made after January 1986 (manufactured within Australia or imported) to meet the new fuel requirements. The policy then called for a complete phase out of unleaded fuel by 2002. Prior to the national mandate, states had led the way on unleaded fuel of which NSW took the lead. The decision to mandate was essential for implementing unleaded fuel. It forced car manufacturers, oil producers and consumers to make the transition."

Both renewable and fossil fuel investments for generating and distributing electricity can be utilised at close to full capacity to provide electricity for recharging electric battery powered vehicles.

Both of these investments can also be used to manufacture hydrogen for fuel-cell powered electric vehicles.

Vehicle manufacturers at present face considerable uncertainty in predicting which of the emerging clean fuel transport systems will win out in the long run.

Fuel cell electric vehicle with battery for short trips

Adopting a policy for the introduction of electric vehicles would reduce that uncertainy. Allowance can still be made for competing technologies that are quickly evolving. Fuel cells for instance that produce electric power from, say, hydrogen, are not that dissimilar from batteries that store and recharge electrolyte in situ. Vehicles using either, or both, of these energy supply systems are powered by electric motors regardless of which these two evolving technologies provides the electricity. One version of electric vehicles might use a battery for short trips and activate a hydrogen fuel cell on longer trips after the battery charge is depleted.

This plan would encourage continuing expansion and technological advances in renewable energy without the need to immediately write off substantial capital invested in fossil fuel power plants.

Hydrogen to Substitute Natural Gas

Australia recently examined the development of a hydrogen industry - Briefing Paper: Hydrogen's for Australia's Future.
Converting hydrogen to methane can reduce CO₂ emissions from electricity generation - in the short term at least - while production capacity of hydrogen is growing.

The arithmetic analysis.
If a region is considering thermal power options to provide electricity, two options may be:

1. Three coal-fired power plants running at 40% efficiency or
2. Two combined-cycle gas turbine power stations running at 60% efficiency.

An assumption is that each power plant consumes fuel with the same amount of chemical energy.

Because the coal-fired power plants are only two-thirds as efficient as the combined-cycle gas turbine power plants, a third coal-fired power plant is needed to produce the same electricity output as the two combined-cycle gas turbine power plants.

The CO₂ emissions are about 900 grams per kilowatt-hour generated for the coal-fired power plants and only 310 grams per kilowatt-hour for the combined-cycle gas turbine power plants.

NOTE: A reduction of two-thirds use of coal by 2030 is required to limit global warming to 1.5°C.
This ratio of CO₂ emissions of 310 to 900 grams per kilowatt-hour is equivalent to a 65% reduction in coal use.

By 2030 utilities would have to cut 2/3 of the coal they burn now to hold global warming to 1.5 degrees Celsius. The cut is more than twice as steep as the boldest scenario outlined by the International Energy Agency. https://t.co/UyDjjfYl9p

— Janae Steville (@StevilleJanae) October 1, 2018

If sufficient hydrogen was produced to fuel one combined cycle gas turbine power plant, when three coal-fired power plants were the option being used, then one and a half coal-fired plants could be idled. This would cut coal-use in half and cut CO2 emissions from electricity generation in half. Average CO2 emissions for all electricity generation - from the coal-fired plants and the hydrogen-fueled combined cycle gas turbine power plant - would be 450 grams per kilowatt-hour.

However, if the same amount of hydrogen was reacted with carbonaceous material, such as coal, to produce synthetic methane, the resulting fuel would be sufficient to run two combined cycle power plants: all three coal-fired plants could be shut down. This would cut coal-use by two-thirds and cut CO2 emissions from electricity generation by two-thirds. Average CO2 emissions for all electricity generation - from the synthetic methane-fueled combined cycle gas turbine power plant - would be 310 grams per kilowatt-hour.

This process results in a greater cuts in CO₂ emissions. It also doubles the energy value that the hydrogen possessed before it was combined with carbon to form methane.

That is, it is preferable from both commercial and environmental perspectives.

The benefits are greater than just the cuts in CO₂ emissions arising from electricity generation.

In December 2018 the Australian Government released a document on projected CO₂ emissions - Australia’s emissions projections  2018.
This shows substantial fugitive emissions arise from natural gas production and from coal mining.

Out to 2030, several LNG plants are expected to source gas from new basins as current feed gas sources deplete. As the percentage of CO₂ is higher for some of these new feed gas sources the overall emissions intensity of Australia’s LNG projections increases which increases emissions.

Fugitive emissions for natural gas (other than LNG) are projected to be 17 million tonnes of CO_2-e each year from 2018 to 2030. The fugitive emissions from LNG production are projected to rise from 11 million tonnes of CO_2-e a year in 2018 to 13 million tonnes of CO_2-e a year in 2030.

The Australian Government's National Greenhouse Accounts Factors - July 2017 shows fugitive emissions from open cut coal mines in NSW are 200 times greater per tonne of raw coal mined than those of open cut coal mines in Victoria. The brown coal available in Victoria is also far cheaper than thermal coal mined in NSW.

As an indication of the amounts of fugitive emissions involved: Australia burns about 60 million tonnes of black coal a year for electricity generation. If sourced from open cut NSW coal mines, the fugitive emissions would be 60 million x 0.054 = 3.24 million tonnes of CO_2-e.

Total electricity generated in Australia from black coal in 2016-2017 was about 120 thousand gigawatt-hours. At an emission intensity of 900 grams of CO_2-e per kilowatt-hour (1 gigawatt-hour is 1 million kilowatt-hours), the generation of this much electricity from black coal would result in annual emissions of about 108 million tonnes of CO_2-e.

In  2016-2017 Australia also burned about 57 million tonnes of brown coal to generate about 44,000 gigawatt-hours of electricity. At an emission intensity of 1,100 grams of CO_2-e per kilowatt-hour (1 gigawatt-hour is 1 million kilowatt-hours), the generation of this much electricity from brown coal would result in annual emissions of about 44.8 million tonnes of CO_2-e.

The conversion of brown coal to synthetic methane with hydrogen would be commercially attractive in upgrading the value of this low-cost fuel stock and environmentally superior - cutting fugitive emissions that arise in both coal-mining and natural gas production.

Transition from thermal coal exports

Australia exports 200 million tonnes of thermal coal each year.

Japan is the largest importer, importing 80 million tonnes per year. In planning to eliminate its reliance on fossil fuel imports, Japan is looking to CO2-free hydrogen to replace its imports of coal and LNG, used primarily for electricity generation, and oil, used primarily for road transport.

One step in the 20-year transition timetable is to invest in large solar PV installations in Saudi Arabia and construction of a 'hydrogen pipeline" to deliver hydrogen produced by electrolysis to Japan.

Another step is the construction of combined-cycle gas turbine power stations that have integrated gasification plants to convert imported coal to gas to fuel them. These plants can later run on hydrogen when sufficient supply is available.

Australia and Japan could co-ordinate projects in this transition of Japan's energy systems.
One of the benefits of co-ordination is that Australia's industry and workforce has a planned transition in how it prepares energy for export, adapting employment skills and infrastructure as the plan progresses.

Another of the benefits is that part of the infrastructure development is undertaken by Australia, sharing the effort so that Japan can focus its investments on the most efficient technology to use the energy it imports.

The long-term transition would see Australia's coal export terminals replaced with hydrogen export facilities and the fleet of bulk ore carriers replaced with specialised hydrogen shipping vessels. The coal mining workforce would gradually be replaced with a workforce that constructs and operates hydrogen production plants.

During the early years of the transition it may be beneficial to convert hydrogen and coal to methane and make use of existing natural gas pipelines, LNG export terminals and LNG tankers to transport the hydrogen to Japan's existing LNG import facilities.

One benefit for Japan would be to avoid the time and cost of building integrated coal-gasifiers with new combined-cycle gas turbine power stations and fuel cell generators. The gasification can be carried out in Australia before exporting the coal with hydrogen as LNG.

Large-scale solar farms are currently built with inverters that are a significant part of the cost.
The inverters change direct-current electricity produced by the solar panels into alternating-current electricity for distribution on the electricity grid.

Inverters aren't needed when the goal is to produce hydrogen by electrolysis with the electricity generated.

A second income-stream from renewable electricity production will assist farmers struggling with drought near coal-mining regions. Solar PV installations could be designed to be "stock-friendly" for Australian livestock producers, and not copies of European installations where fields are covered with closely-spaced solar panels just above ground level.

Cattle and solar PV systems

The renewable energy generated would be fed to electrolysis units creating hydrogen.
The hydrogen is to be transferred into methanation units that have pulverised coal handling equipment where the hydrogen and coal is transformed into methane, ready for transfer to LNG export terminals.

Thyssenkrupp coal handling system

Gasification technologies

See Thyssenkrupp Australia - "Power-to-gas: Storing wind and sun [energy] in natural gas"

The 2015 Japanese government report "Overview of Assessment by Power Generation Cost Verification Working Group", Institute of Energy Economics, Japan (IEEJ) explained that renewable energy costs are higher in Japan than in other countries, and showed Australia has a comparative advantage in large-scale wind and solar installations.

"Unit construction costs for solar PV and wind power generation systems in Japan are higher than in other countries. ...Apparent factors behind the cost gap include higher personnel costs, complex topography and FIT scheme introduction backgrounds in Japan." (at pages 8-9)

"Saudi Arabia and Japan's SoftBank expanded their partnership on Tuesday, announcing the world's biggest solar power generation project at a press conference in New York."
The 200 gigawatt solar power project was estimated to cost $200 billion. https://t.co/MOsH9HvsMG

— Askgerbil Now (@Askgerbil) August 10, 2018

"This new material provides superior hydrogen production with lower energy requirements. This enables hydrogen production from renewable energy sources such as solar and wind generated power." @UNSW https://t.co/rZBIg7PDjz #ausbiz #jobs #ausunions @CFMEU_ME

— Askgerbil Now (@Askgerbil) August 7, 2018

Related posts:

Australian energy exports

Keeping waste plastic out of landfill

 

Coal burns up research millions

If an industry needs to separate CO2 from different sources the first place to look is existing suppliers and projects that use their technology.

• Xebec Adsorption Inc. in Canada sells equipment to remove CO2 from biogas: "Xebec to supply Sapio Group with biogas upgrading plants".
• Audi operates plants to upgrade CO2 to methane and to upgrade CO2 mixed with biogas to methane using hydrogen made from renewable energy: "New method for producing the synthetic fuel Audi e gas".
• Great Plains Synfuel Plant operated by Dakota Gasification Company has been separating CO2 from synthetic natural gas for 25 years: Products > Pipeline and Liquified Gases > Carbon Dioxide
• The ExxonMobil Longford Gas Conditioning Plant removes 1 million tonnes of CO2 a year from raw natural gas to make it suitable for injection into natural gas pipelines: "EPA grants works approval to Esso gas plant".

Reinventing the Wheel

"...the investment in research programs will yield industry
applicable technologies and methodologies in the near term."

Australian governments are spending millions to find out how to separate CO2 from different sources. This process is commonly referred to as "reinventing the wheel".

Why this is so remains an unexplained mystery.

"...our capture research has also made progress on several fronts. CO2CRC won a competitive $1.2 million grant from the NSW government’s Coal Innovation Fund to develop cost-effective carbon capture technology at the Vales Point power station in NSW. The plant has been relocated from the closed Hazelwood power station in Victoria to Vales Point and is currently being modified to use both solvent and membrane technologies. The funding enables us to combine the advantages of both solvent absorption and membrane gas separation methods of capturing CO2, while overcoming the drawbacks of both technologies.

Capture projects were also significantly enhanced in October when we installed our proprietary capture skid at the Otway National Research Facility. The capture plant has been designed for use in offshore natural gas applications, with varying percentages of CO2 content. It has been made to be robust, small and efficient, and will also applicable to different capture requirements in the future.

These developments are the result of our deep commitment to cutting-edge research. In 2016-17 we extended our research base through the opening of several new Australian CCS Research Laboratories Network (CCSNet) facilities.

In September 2016, we opened new capture, CCS modelling, and storage laboratories at The University of Melbourne.

The $7.56 million facility was opened just 12 days after the Minister for Infrastructure and Transport, the Hon Darren Chester MP, opened CCSNet’s $2.3 million analytical laboratory at Federation University.

And, in November, the Minister for Education and Training, Senator the Hon Simon Birmingham, opened our $5.04 million storage research facilities at the Australian National University.

As CCS research gains momentum, we also remain focussed on ensuring government and key decision makers understand the value that CCS has to Australian emissions reduction and national energy security. Our detailed and costed retrofit studies, submissions to government and presentations to senior decision makers were well received by governments.

With the commitment from staff, the collaboration of our research partners and the support of our members and the community, CO2CRC has reached a pivotal point where the investment in research programs will yield industry applicable technologies and methodologies in the near term. Thank you for sharing our vision for CCS.

Tania Constable
Chief Executive Officer
CO2CRC Annual Report 2016/17

Three-eighths of a coal power station

Some notable milestones to pass on the way to 100% renewable energy are one-quarter, one-half, and three-quarters renewable electricity generation.

The average CO2 emissions per kilowatt-hour for all electricity generated at each of these milestones might be 660 grams, 440 grams and 220 grams respectively.

But they could be much less.

We'll look at the halfway milestone to see why this is so:

At this milestone, one-half of all electricity is delivered from renewable energy sources with no fossil-fuel CO2 emissions - solar PV and solar thermal, wind farms, hydroelectric including pumped hydroelectric storage, and battery storage.

The other half of electricity is delivered from fossil fuel power generators. These power plants are only dispatched at times when total demand exceeds the total capacity of all the available renewable energy sources.

These fossil fuel power plants may have average CO2 emissions per kilowatt-hour of electricity of 880 grams.

Average CO2 emissions and efficiency of a coal-fired power plant

In this case the average CO2 emissions per kilowatt-hour for all electricity generated at the halfway milestone will be 440 grams: (Zero for the half from renewable energy sources plus 880 grams for the half from fossil fuel power plants) divided by two.

It isn't necessary for the CO2 emissions from the electricity generated by fossil fuels to be nearly this high. They can be reduced to three-eighths of 880 grams per kilowatt-hour of electricity.

A way of doing this allows the use of power plants that are far more efficient than coal-fired power plants, are far cheaper to build, and are able to start more quickly in response to increases in demand.

A further advantage is that they use only three-eighths of the coal to generate each kilowatt-hour of electricity so the cost of mining and transporting coal for electricity generation is cut to just three-eighths of the cost with the less efficient, more expensive coal-fired power plants.

This way of supplying electricity at the halfway milestone reduces the average CO2 emissions for all electricity generated to just 165 grams: (Zero for the half from renewable energy sources plus 330 grams for the half from fossil fuel power plants) divided by two.

Average CO2 emissions and efficiency of a combined cycle power plant

The reduced quantity of coal for fuel for the combined cycle power plants can converted to methane by a reaction with hydrogen. The hydrogen can be produced by electrolysis using excess renewable energy generated whenever total demand is less than the output of renewable energy sources.

A coal-fired power plant that is emitting 880 grams of CO2 per kilowatt-hour burns coal containing 240 grams of carbon for one kilowatt-hour of electricity. Coal containing just 90 grams of carbon (three-eighths of 240 grams) is all that's needed for a combined cycle power plant to generate a kilowatt-hour of electricity.

Coal may be converted directly to methane by reacting it with hydrogen:

Hydrogen - A Key to the Economics of Pipeline Gas from Coal, C. L. Tsaros, Institute of Gas Technology, Chicago, Illinois

The objective in manufacturing supplemental pipeline gas is to produce high- heating-value gas that is completely interchangeable with natural gas - essentially methane.

The basic problem in making methane from coal is to raise the H2/C ratio. A typical bituminous coal may contain 75% carbon and 5% hydrogen, a H2/C mole ratio of 0.4:1; the same ratio for methane is 2:1. To achieve this ratio it is necessary to either add hydrogen or reject carbon. The most efficient way is to add hydrogen. The hydrogen in the coal can supply about 25-30% of the required hydrogen, but the bulk must come by the decomposition of water, the only economical source of the huge quantities needed for supplemental gas.
…
In the second, or direct, method, methane is formed directly by the destructive hydrogenation of coal by the reaction:

C + 2H2 → CH4

There is a steadily growing list of commercially available systems to produce hydrogen using excess renewable energy:

Clean and Low-cost Hydrogen for Industry

The Sunfire steam electrolysis system, based on solid oxide cell (SOC) technology, promises lower onsite hydrogen production costs compared to legacy technologies. The ability to supply steam directly to the electrolysis module is unique and maximises efficiency.

National Energy Guarantee and known pitfalls

A Japanese study released in October 2017 warns of costly European policy mistakes when investment in renewable energy is increasing.

Though details of the National Energy Guarantee policy are still under discussion, the Japanese study is worth checking so that Australia doesn't fall into any of the pitfalls it warns of.

This is an extract with some of the warnings in the Japanese study.

The Ways Forward for Japan EPCOs in the New Energy Paradigm

October 2017

Renewable Energy Institute, The Ways Forward for Japan EPCOs in the New Energy Paradigm (Tokyo: REI, 2017), 76 pp.

at https://www.renewable-ei.org/en/activities/reports/20171006.html

…

Executive Summary

…

Japan electric power companies(EPCOs) have essentially been focusing on their domestic market so far. Yet, business opportunities also exist overseas. ... Critical to successful internationalization of Japan EPCOs business will be their ability to deploy cost efficient Renewable Energy (RE).

To make their way through this new energy paradigm, Japan EPCOs have the chance to learn critical lessons from their European peers.

European EPCOs have already faced similar challenges to those Japan EPCOs are now confronted with. And European EPCOs have failed to adapt quickly. Japan is lagging behind, and that is not necessarily a bad thing. Indeed, it means that Japan EPCOs may benefit from their European peers painful experiences.

Struggling, several European EPCOs posted record losses and saw their market capitalization collapse in recent years. They were victims of low wholesale electricity prices resulting from sluggish electricity demand and dramatic expansion of wind and solar power with lower marginal cost, leading to overcapacity and pushing fossil power plants out in the competitive market merit order. (page 1)

…

Key Challenges Faced by Japan’s EPCOs

In the past two years RE accounted for the majority of new power capacity globally driven by dramatic cost reductions in wind and solar, and globally for the past three years the increase in RE electricity generation has been higher than the increase in fossil electricity generation. (Page 15)

…

European EPCOs Failed to Adapt Quickly

These overall negative performances result from the European EPCOs failure to quickly adapt to the energy transition, at the generation level especially. While electricity consumption stagnated, significant expansion of close to zero marginal cost wind and solar power, in which European EPCOs did not sufficiently invest, took place in Europe. The latter helped lowering wholesale electricity prices due to the merit order effect. At the same time, conventional power capacity did not significantly decrease which combined with stagnating electricity consumption and the expansion of RE resulted in overcapacity further reducing wholesale electricity prices (Chart 31). European EPCOs conventional power plants were thus outcompeted due to their higher marginal costs and suffered from low wholesale electricity prices, thus significantly affecting European EPCOs profitability. (page 26-27)

…

In Europe, several EU Member States including France, Germany, Italy, Spain, and the UK, notably, have introduced rewards for making capacity available, in the form of capacity mechanisms. However, capacity mechanisms are considered problematic because they risk distorting electricity markets. Inappropriate designs of mechanisms may for instance result in existing uneconomic power plants receiving financial support and disturbing the transition to a low-carbon economy – a failure. ³¹  The UK and Germany offer telling examples of far from perfect capacity mechanisms. (page 28)

…

In Germany, from this year 2.7GW of largely inflexible and high-emitting lignite capacity will be placed into an emergency stand-by reserve, only to be used as back-up when required for a period of four years, after which these plants will be permanently retired. ³³  This comes at an estimated cost of €1.6 billion to the German government to compensate for lost revenues from the electricity market during these years of security stand-by. ³⁴

These flawed designs are unsurprising insofar as it has been found that many of EU Member States did not adequately assess the need or cost-effectiveness before introducing such mechanisms. ³⁵

In addition, it has also been recognized that capacity mechanisms implementation must be accompanied by appropriate market reforms. ³⁶

Thus, before adding gigawatts of new conventional power plants and/or pushing for the implementation of a capacity mechanism in Japan, Japan EPCOs should thus be well aware of these painful lessons learnt in Europe (page 29)

ENDNOTES

³¹   European Parliament, “Capacity mechanisms for electricity – May 2017” (accessed 28 August 2017)  

³³   The Economist Intelligence Unit, “Is Germany’s Energiewende cutting GHG emissions? – 20 March 2017” (accessed 31 August 2017)

³⁴   Overseas Development Institute, Rethinking Power Markets: Capacity mechanisms and decarbonisation (London, United Kingdom: ODI, 2016), 46 pp

³⁵   European Parliament, op. cit. note 31

³⁶   Ibid.

Coal industry wild optimism failed

The Australian Government's "Coal" information in 2018 produced in 2011

The information below was on an Australian Government web site on 30 May 2018: "Department of Industry, Innovation and Science - Resources"

It shows "forecasts" of coal exports for the years 2011/12 to 2016/17. It was evidently created in 2011 and has never been updated.

The wildly optimistic "forecast" of thermal coal exports for 2016/17 - 267.9 million tonnes - is 25 per cent above the actual amount that was exported in 2016/17 - just 201.7 million tonnes.

Forecasts of thermal coal production were even more fantastic. In 2016/17 Australian coal mines were to produce 332.9 million tonnes when the actual figure was only 250.0 million tonnes.

If the excess of thermal coal produced over exports is assumed to be domestic consumption, then the "forecast" domestic consumption for 2016/17 is shown as 65.0 million tonnes. The actual figure was only 48.3 million tonnes.

The Federal Government talks up the prospects of new thermal coal mines in Australia, seemingly encouraged by out-dated and unrealistic forecasts created in the distant past.

Running blind

Cutting numbers of staff in the Department of Energy has left the Australian Government in a position of not knowing which way is up. Its Ministers promote investment in declining industries as a result of being under the spell of wildly optimistic, wrong forecasts.

Leaving wrong forecasts available on Government web sites is not without consequences. It invites costly investment decisions to be made by mistake across the entire economy -

Newcastle's giant T4 #coal port expansion scrapped as demand fails to rise https://t.co/ytcgf6bZRt via @smh

— Peter Hannam (@p_hannam) May 31, 2018

Coal

Coal is a fossil fuel accounting for around 40 per cent of total world power generation.¹ Coal is primarily a mixture of carbon and hydrogen atoms, with very small amounts of sulphur (bound with carbon or iron) and other elements.

Australia provides around 30 per cent of the world coal trade.

In 2011, Australia was the world's largest exporter of metallurgical coal and the second largest exporter of thermal coal. Australia is also the fourth largest producer, and has the fifth largest resources of black coal in the world.

Australia's accessible economic demonstrated resources are sufficient to sustain current black coal production rates for nearly 100 years.² Brown coal accessible economic resources are estimated to be able to sustain current brown coal production for over 500 years.²

Coal is Australia's largest energy export earner. In 2010–11, Australia exported 283 million tonnes (Mt) of metallurgical and thermal coal to world markets worth A$43.7 billion. Total coal (black, saleable) production in Australia in 2010–11 is estimated to have been 345 Mt. Over the medium term, total Australian metallurgical and thermal coal exports are forecast to increase by nearly 72 per cent: from 283 Mt in 2010–11 to 486 Mt, valued at $56.5 billion, in 2016–17.

The majority of Australia's metallurgical and thermal coal exports were exported to the Asian region in 2011. This leading position has grown over many years of coal trade, based on the quality of Australian coal resources and the ability of Australian industry to meet and respond to the needs of its customers.

In 2011, Australia's top four export markets for metallurgical coal were Japan (40.8 Mt), India (28.9 Mt), Republic of Korea (16.5 Mt) and China (13.7 Mt). Australia's top four export markets for thermal coal were Japan (65.4 Mt), the Republic of Korea (29.5 Mt), China (19.9) and Taiwan (19.1 Mt).

Australian brown coal (lignite) production, mainly from the Latrobe Valley in Victoria, was 68.75 Mt in 2009–10. Brown coal is used domestically in electricity production. Coal, both black and brown, accounted for over 75 per cent of Australian electricity generation in 2009–10.

Australian coal production and exports

Production

Australian financial years	2008–09	2009–10	2010–11	2011–12 (f)	2012–13 (f)	2013–14 (f)	2014–15 (f)	2015–16 (f)	2016–17 (f)
Thermal coal	209.7	198.3	206.1	224.8	238.2	271.6	290.2	319.0	332.9
Metallurgical coal	130.0	163.0	146.0	152.0	169.0	180.0	195.0	213.0	222.0

Exports

Australian financial years	2008–09	2009–10	2010–11	2011–12 (f)	2012–13 (f)	2013–14 (f)	2014–15 (f)	2015–16 (f)	2016–17 (f)
Thermal coal	136.4	135.0	143.3	162.6	173.1	206.6	225.2	254.0	267.9
Metallurgical coal	125.0	157.0	140.0	148.0	166.0	176.0	191.0	209.0	218.0
Total	261.4	292.0	283.3	310.6	339.1	382.6	416.2	463.0	485.9

Export Value (A$m, nominal)

Australian financial years	2008–09	2009–10	2010–11	2011–12 (f)	2012–13 (f)	2013–14 (f)	2014–15 (f)	2015–16 (f)	2016–17 (f)
Thermal coal	17 885	11 886	13 956	17 846	17 641	19 943	20 390	21 635	21 604
Metallurgical coal	36 813	24 526	29 793	31 094	30 122	33 321	34 757	34 754	34 932
Total	54 698	36 412	43 749	48 940	47 763	53 264	55 147	56 389	56 536

Source: ABARE Australian Commodities March Quarter 2010 and BREE Resources and Energy Quarterly March quarter 2012. (f) forecast.

¹IEA's Paper on Power Generation from Coal 2011—Ongoing Developments and Outlook
²Based on 2010 rate of production.