Riding the Innovation Wave - The Hunter’s opportunity to provide sustainable energy solutions to the global economy James McGregor Energy Systems Manager CSIRO Division of Energy Technology 15th June 2011

Overview The Next Innovation Wave Megatrends Enabling Technology Snapshot Solar thermal power Carbon capture and storage Smart grids The Opportunity for the Hunter Region

Kondratieff Cycles

Megatrends More from less – a world of limited resources A personal touch – personalisation of products and services Divergent demographics – older, hungry and more demanding On the move – Urbanising and increased mobility iWorld – digital and natural convergence

International electricity generation – CP-Low Source: CSIRO projection

Enabling Technologies – solving the energy puzzle

Carbon Capture and Storage (CCS) CSIRO Research Activities CAPTURE TRANSPORT STORAGE Post-combustion capture (new/retrofit) Oxyfuel combustion capture (new/retrofit) Pre-combustion capture (new)

Carbon Capture - Post Combustion Capture Boiler Generator Pure CO2 Electricity Low CO2 flue gas CO2 C.W. Coal Absorber Stripper C.W. Flue gas pretreatment Fly-ash C.W. Flue Gas C.W. Reboiler This is schematic of a pf plant with a CO2 capture plant added to the flue gas outlet.  This is post combustion capture (PCC). In this configuration, the CO2 is extracted from the flue gas (about 13-15% of the flue gas is CO2, the rest is nitrogen from the combustion air) using a specially designed solvent. The solvent is regenerated and sent round the loop again. The extracted, pure CO2 is compresses, liquefied and piped off for sequestration. This is the most flexible of the CCTs as it can be scaled to take up any desired proportion of the CO2 required.  The drawbacks, are that the operation of the plant requires energy and the overall efficiency is reduced (we have to burn more coal per unit of power produced). The plant capital cost is also higher. Benefits End of pipe technology readily integrated with existing power stations. Modular design. Allows for variable CO2 removal. Research Challenges High capture cost. Loss of generation efficiency. Conventional processes sensitive to O2, SOx and other flue gas constituents. Large increase in cooling water requirement.

PCC Pilot Plant Locations Gaobeidian Power Station, Beijing (Operational) Tarong Power Station, QLD (Construction phase) Munmorah Power Station, NSW (Operational) Loy Yang Power Station, VIC (Operational)

Solar Thermal Power

ASI Foundation Project

Solar Brayton Systems Scalable from micro-turbines up to large gas turbines Distributed generation option for CSP Spinning mass reduces the impact of transient output Can be co-fired with supplementary energy source such as natural gas providing high availability Only inputs required are air and sun Large capacities can be met by clustering individual units 1 2 3 4 4 Slide 12 Solar Tower Project

Smart Grids

Opportunity for the Hunter Region US EU China 16% 14% 11% 11% Japan 23% 17% 3% India 5% 8% 5% ASEAN 6% % share GHG 2005 % share Primary Energy demand 2030 (source IEA)

The right mix of ingredients Technological Innovation Growing demand for sustainable energy solutions EXTERNAL FACTORS DRIVING CHANGE Skilled workforce and Industry Capability Strong international energy market linkages NEWCASTLE CAPABILITY Market Opportunities for Sustainable Energy Solutions Merger of Opportunity and Capability Newcastle a World Leader in provision of Sustainable Energy Solutions Economic, social, political, regulatory, and environmental forces R&D + Education Capabilities – CSIRO, Newcastle University, TAFE

Conclusion The coming together of a critical mass of social, economic, and environmental drivers are setting the conditions for a new wave of innovation that has the potential to transform the way we do business. The Hunter Region has all of the key ingredients of R&D and education capability, business networks, and a skilled workforce to become a global leader in the supply of sustainable energy solutions to the global economy

Thank you CSIRO Energy Technology James McGregor Energy Systems Manager Phone: +61 2 4960 6000 Email: james.mcgregor@csiro.au Web: www.csiro.au/energy Thank you Contact Us Phone: 1300 363 400 or +61 3 9545 2176 Email: Enquiries@csiro.au Web: www.csiro.au