Flexible and efficient coal-fired generation in relation to EU energy policy

Ad Hoc Group of Experts on Cleaner Electricity Production from Coal and Other Fossil Fuels

8th Session
UNECE, Geneva 14-15 November 2011 Brian RICKETTS Secretary-General, EURACOAL

EURACOAL: 35 members from 20 countries

COALPRO - Confederation of UK Coal Producers (GBR) DEBRIV - Deutscher Braunkohlen-Industrie-Verein (DEU) GVSt - Gesamtverband Steinkohle (DEU) MMI - Mini Maritza Istok (BGR) PPC - Public Power Corporation (GRC) PPWB - Confederation of the Polish Lignite Producers (POL) ZPWGK - Polish Hard Coal Employers Association (POL) ENEL (ITA) ZSDNP - Czech Confederation of Coal and Oil Producers (CZE) APFCR - Coal Producers and Suppliers Association of Romania (ROU) BRGM - French Geological Service (FRA) CARBUNIN - Federation of Spanish Coal Producers (ESP) CoalImp - Association of UK Coal Importers (GBR) D.TEK (UKR) EPS - Electric Power Industry of Serbia (SRB) GIG - Central Mining Research Institute (POL) HBP - Hornonitrianske bane Prievidza (SVK) ISFTA Institute for Solid Fuels Technology & Applications (GRC) Mtrai Kraftwerke (HUN) PATROMIN - Federation of the Romanian Mining Industry (ROU) Premogovnik Velenje (SVN) RMU Banovici D.D. (BIH) Swedish Coal Institute (SWE) TKI - Turkish Coal Enterprises (TUR) Ukrvuglerobotodavtsy - All-Ukrainian Coal Employers Association (UKR) Vagledobiv Bobov dol EOOD (BGR) VDKI - Verein der Kohlenimporteure (DEU) Coaltrans Conferences Limited (GBR) EMAG (POL) Finnish Coal Info (FIN) Golder Associates (GBR) Geocontrol (ESP) ISSeP - Institut Scientifique de Service Public (BEL) KOMAG (POL) University of Nottingham (GBR)

UNECE, Geneva, 14-15 November 2011, slide 2 EURACOAL, 2011

A new publication from EURACOAL

EU hard coal production: 133 Mt EU lignite production: 396 Mt EU coal imports: 188 Mt
Coal and lignite are the European Unions most important energy resources.
UNECE, Geneva, 14-15 November 2011, slide 3 EURACOAL, 2011

Growth rates in primary energy use, 2000-2010

CAGR

150
140 130 120

4.0%

coal natural gas

2.8% 2.6%

hydro oil

1.2% 110 100 90 2000 0.7% nuclear

2005

2010

source: BP Statistical Review of World Energy, June 2011, BP, London

Absolute world coal demand is growing faster than any other energy source.
UNECE, Geneva, 14-15 November 2011, slide 4 EURACOAL, 2011

Global energy resources, reserves and use

Resources 21 000 Gtce
oil, 0.7% thorium, 0.4% uranium, 0.9% unconv. oil, 2.1% natural gas, 1.5% lignite, 8.1%

Production 16 Gtce

unconv. gas, 16.9%

R/P = 87 years

Reserves 1 400 Gtce 3.2% 1.0% 8.1% 16.9%

7.0% 18.3%

45.0% 0.4%

hard coal, 69.5%

UNECE, Geneva, 14-15 November 2011, slide 5 EURACOAL, 2011

source: Annual Report 2010 Reserves, Resources and Availability of Energy Resources, Bundesanstalt fr Geowissenschaften und Rohstoffe

Fuel sources for electricity generation, 2009

World: 20 055 TWh
other

EU-27: 3 178 TWh (15.8%)

lignite 3.4% + hard coal 37.1% = 40.5%
lignite 10.6% + hard coal 16.1% = 26.7%

hydro

other hydro nuclear

oil nuclear gas

gas

oil
sources: IEA Key World Energy Statistics 2011 and IEA databases

UNECE, Geneva, 14-15 November 2011, slide 6 EURACOAL, 2011

Coal-fired generation in selected countries, 2010

* 2009 data for non-OECD countries

source: IEA databases

UNECE, Geneva, 14-15 November 2011, slide 7 EURACOAL, 2011

World commercial energy use to 2030

source: BP Statistical Review of World Energy, June 2011, BP, London

Coal, oil and gas shares converge at around 25-27% in 2030 (others = 7%).
UNECE, Geneva, 14-15 November 2011, slide 8 EURACOAL, 2011

Technologies to reduce global CO2 emissions

source: Energy Technology Perspectives 2010, International Energy Agency, OECD/IEA, Paris

CCS and efficient coal-fired power generation are key future technologies.
UNECE, Geneva, 14-15 November 2011, slide 9 EURACOAL, 2011

Why is efficiency important?

A one percentage point (1%-age point) improvement in coal-fired power plant efficiency would save 0.23 GtCO2 per year the total CO2 emissions from the Netherlands and Denmark. Best practice at all plants would save 1.7 GtCO2 per year.

source: Power Generation from Coal - measuring and reporting efficiency performance and CO2 emissions, OECD/IEA Coal Industry Advisory Board, Paris, 2010.

The energy supply chain: energy resources to meeting consumer needs.

UNECE, Geneva, 14-15 November 2011, slide 10 EURACOAL, 2011

G8 Gleneagles Summit, 2005

G8 leaders agreed to support efforts to improve the efficiency of traditional coal-fired power stations, through a programme of work by the IEA to identify and promote the use of leading-edge technology and operating practice. Scenarios & strategies aimed at a clean, clever & competitive energy future.
UNECE, Geneva, 14-15 November 2011, slide 11 EURACOAL, 2011

IEA / CIAB report on power plant efficiency

International Energy Agency Coal Industry Advisory Board working group: E.ON (lead) , RWE, VGB PowerTech, EPRI, World Energy Council, IEA Clean Coal Centre, FEPC, KETEP, Eskom, J Power, Polish Ministry of Economy, Rio Tinto, Suek, Shenhua Coal, Arch Coal, Epcor, Leonardo Technologies. Recommendations:

International database of coal-fired plant efficiency should be established with non-commercial data reconciled centrally on a consistent basis.
Global coal fleet efficiency tool identify opportunities, future projections.
UNECE, Geneva, 14-15 November 2011, slide 12 EURACOAL, 2011

Energy flows in a typical 500 MW power plant

source: Power Generation from Coal - measuring and reporting efficiency performance and CO2 emissions, OECD/IEA Coal Industry Advisory Board, Paris, 2010.

UNECE, Geneva, 14-15 November 2011, slide 13 EURACOAL, 2011

Development of coal-fired power plant efficiency

source: Efficiency Improvements in coal-fired power plants, Dr. Rainer Quinkerz, IEA Workshop on Energy Efficiency and Clean Coal Technologies, Moscow, 25-27 October 2010

Coal-fired power plant efficiency should rise above 50% in the near future.
UNECE, Geneva, 14-15 November 2011, slide 14 EURACOAL, 2011

Specific CO2 emissions from coal-fired plants

source: Power Generation from Coal - measuring and reporting efficiency performance and CO2 emissions, OECD/IEA Coal Industry Advisory Board, Paris, 2010.

Improving efficiency reduces CO2 emissions with certainty and at a low cost.
UNECE, Geneva, 14-15 November 2011, slide 15 EURACOAL, 2011

CO2 emissions from coal-fired power plants

SUBCRITICAL
2000

SUPER- ULTRACRITICAL SUPERCRITICAL / IGCC

1500
gCO 2/kWh

Indian new build Chinese new build

India China OECD state-of-the-art

1000

500

fleet averages single plants

0 15% 25% 35% 45% efficiency (LHV)

RD&D

55%

Rich developed countries are lagging behind the emerging economies.

UNECE, Geneva, 14-15 November 2011, slide 16 EURACOAL, 2011

Parameters that influence efficiency

Design, fuel selection and location factors: Cooling medium temperature and system type

Fuel moisture, ash and sulphur content

Ambient temperature Export/import of heat (cogeneration & CHP) Use of flue gas desulphurisation and low-NOx combustion systems Operational factors:

Average load and load factor

Operating regime, transients, unit starts Maintenance related factors:

Average level of deterioration from new

Equipment reliability and availability
UNECE, Geneva, 14-15 November 2011, slide 17 EURACOAL, 2011

Evolution of coal-fired power plant efficiency

annual data and 5-year moving averages

source: Power Generation from Coal - measuring and reporting efficiency performance and CO2 emissions, OECD/IEA Coal Industry Advisory Board, Paris, 2010.

UNECE, Geneva, 14-15 November 2011, slide 18 EURACOAL, 2011

State-of-the-art coal-fired power plants

Genesee 3, Canada (570C/570C, 41.4%)

Isogo New Unit 1, Japan (600C/610C, 42%)

Niederaussem K, Germany (580C/600C, 43.7%) Nordjyllandsvrket 3, Denmark (582C/580C/580C, 47%) Younghung, South Korea (566C/566C, 43.3%)
source: Fossil-fired Power Generation case studies of recently constructed coal- and gas-fired power plants, OECD/IEA, Paris, 2007.

E.ON Wilhelmshaven Kraftwerk 50plus, Germany (700C, >50%)

UNECE, Geneva, 14-15 November 2011, slide 19 EURACOAL, 2011

EURACOAL response to DG Energy consultation

Power plant renewal and modernisation in short term, highest efficiencies in medium term, strong drive towards CCS in long term. EU Emissions Trading Scheme: an objective assessment of its impact on global emissions and EU industry should inform policy decisions about its future. Introducing command & control emission limits would undermine the scheme. Energy storage is vital to energy security. The cheapest virtual store of electricity is coal stocks at power plants. Power system flexibility to balance intermittent renewables requires flexible backup and incentives, e.g. capacity payments.

Energy efficiency should extend beyond end-use to upstream efficiency where gains can be large and easily realised.
Biomass co-firing at coal power plants is the most efficient way to convert biomass into electricity.
DG Energy must balance security, sustainability and affordability.
UNECE, Geneva, 14-15 November 2011, slide 20 EURACOAL, 2011

Power plant flexibility

source: RWE

Gas-fired CCGT: 10 MW/min to 38 MW/min ramp rates

Coal-fired power plants are flexible and complement intermittent renewables.

UNECE, Geneva, 14-15 November 2011, slide 21 EURACOAL, 2011

Modernisation and CO2 capture & storage

average CO2 emissions per unit of electricity generated at coal-fired power plants (g/kWh)
1,200

world EU

1,000

800

state-ofthe-art

700C

600

400

200
4 400 MW Bechatw power plant, Poland

CCS
2010 2020

0 2000 source: VGB PowerTech e.V., Essen

Continuous power plant modernisation and new CCS-ready plants.

UNECE, Geneva, 14-15 November 2011, slide 22 EURACOAL, 2011

Conclusions
Coal and lignite are super abundant: 80% of EU fossil fuel reserves. Coal is No.1 today and will remain an important pillar of competitive electricity supplies tomorrow.

A balanced energy mix is a winning policy: switching from coal to gas imposes an enormous economic burden with price and supply risks, while lower end-use emissions come at the expense of higher upstream emissions. Continuous investment is needed to modernise power plants across the EU a clean coal investment strategy can reduce emissions by one third from older plants.
CO2 capture & storage (CCS) is a vital part of the international response to climate change: it is expected to deliver almost 20% of very ambitious CO2 reductions by 2050. EURACOAL supports the European Commissions efforts to demonstrate a wide range of CCS technologies, including in heavy industry.

Governments should guarantee non-discriminatory access to a CO2 transport infrastructure and ensure sufficient CO2 storage capacity in the future.
UNECE, Geneva, 14-15 November 2011, slide 23 EURACOAL, 2011

Thank you!
Brian RICKETTS, Secretary-General European Association for Coal and Lignite AISBL 168 avenue de Tervueren, Bte 11 BE-1150 Brussels Belgium ricketts euracoal.org www.euracoal.org