1 Asia-Pacific Partnership on Clean Development and Climate JapanRepublic of Korea United States IndiaChinaAustralia Scott M. Smouse International Coordination Team Leader U.S. Department of Energy/Office of Fossil Energy National Energy Technology Laboratory

2 President’s Statement: July 27, 2005 The United States has joined with Australia, China, India, Japan, and South Korea to create a new Asia-Pacific partnership on clean development, energy security, and climate change. This new results-oriented partnership will allow our nations to develop and accelerate deployment of cleaner, more efficient energy technologies to meet national pollution reduction, energy security, and climate change concerns in ways that reduce poverty and promote economic development. The six Asia-Pacific partners will build on our strong history of common approaches and demonstrated cooperation on clean energy technologies.

3 Significance  64.7% of World GDP (MER)  49.8% of World GDP (PPP)  45.2% of World Population  51.0% of World Total Primary Energy Consumption  49.4% of World CO 2 Emissions from the Fossil Fuel Consumption and Flaring  64.5% of World Coal Production Six Asia-Pacific Partners in 2003 accounted for:  63.6% of World Coal Consumption  45.6% of World Petroleum Consumption  55.6% of World Net Conventional Thermal Electricity Generation  49.3% of World Total Net Electricity Generation  30.1% of World Dry Natural Gas Consumption Source: Energy Information Administration, International Energy Annual 2003

4 Vision Statement  Undertake voluntary practical measures to create new investment opportunities, build local capacity, and remove barriers to introduction of clean, more efficient technologies  Help each country meet nationally designed strategies to improve energy security, reduce pollution, and address long-term challenge of climate change  Promote development and deployment of existing and emerging cleaner, more efficient technologies and practices that will achieve practical results in areas such as: Energy Efficiency Clean Coal Natural Gas Bioenergy Methane Capture/Use Civilian Nuclear Power Geothermal Agriculture/Forestry Rural/Village Energy Systems Advanced Transportation Hydro/Wind/Solar Power Building & Home Construction

5 8 APP Task Forces Established and Meet  Power Generation & Transmission  Cleaner Fossil Energy  Coal Mining  Renewable Energy & Distributed Generation  Buildings and Appliances  Steel  Cement  Aluminum Inaugural Meeting Held in Berkeley in April 2006 Ÿ Agreement on Draft Action Plans Ÿ Initial Action Plans to be Finalized by end of August 2006

6 Efficient Power Generation  Collaboration: USAID-USDOE-NTPC  Focus on improving efficiency and environmental performance of existing coal-fired power plants  Established Center for Power Efficiency and Environmental Protection (CENPEEP) with NTPC  Expanded CenPEEP – Delhi, Patna, Lucknow, Mumbai – and gained international recognition  Over 8.0 million tons of CO 2 avoided since 1996

7 Electricity Generation by Fuel Type in 2005 (%) China, India, and USA CountryTotal Capacity (MW)Coal Capacity (MW) INDIA116,86067,296 USA991,794327,551 CHINA379,895272,243

8 Age of Existing Fossil-Fired Capacity in 2005 (MW) India, China, and USA Data Source: Platts UDI, 2005

9 Age of Existing Coal-Fired Capacity in 2005 (MW) India, China, and USA Data Source: Platts UDI, 2005

10 Average Coal-Fired Power Plant Efficiencies India, China, and USA Country Average Efficiency (%) OECD36 USA33-35 China29-32 India~30 Data Sources: India CEA, IEA India Note: Efficiencies are expressed in LHV and reported at the plant level (instead of units). Does not specify how much > 30% they have reached.

11 U.S. & Indian Coal-Fired Power Plants Heat Rates India U.S. Net heat rate (India) assumes 12% parasitic load for < 500 MW and 7% for ≥ 500 MW power plants Data Sources: USEPA (NEEDS) 2004 CEA-India

12 Indian Coal-Fired Power Plant Load Factors (PLF) by Year Source: MoP, India

13 U.S. and Indian Coal-Fired Power Plants Capacity/Plant Load Factors India U.S. Data Sources:USDOE-EIA 2003 CEA-India

14 Power Generation & Transmission Task Force Ÿ Focus on Best Practices for: –Power Generation –Transmission & Distribution –Demand Side Management Ÿ Through: –Site/plant visits –Workshops –Expert reviews –Case studies –Training/capacity building –Deployment

15 Identification and Implementation of Applicable Best Practices for Power Generation Ÿ Efficiency improvements Ÿ Emissions reduction Ÿ Operation and maintenance Ÿ Life extension and/or retrofit

16 Potential Activities of Interest for India & China Ÿ Human Resource Development Ÿ Total Quality Management (TQM) Ÿ Artificial Intelligence Systems Ÿ Instrumentation & Control Ÿ On-Line Diagnostic Monitoring Ÿ Continuous Emissions Monitoring Systems (CEMS) Ÿ Inspection Techniques & Tools Ÿ Power Plant Equipment Life Optimization Program Ÿ Generation Reliability Improvement Ÿ Combustion Optimization Ÿ Heat Rate and Efficiency Monitoring Ÿ Cooling Tower Performance

17 Potential Activities of Interest for India & China Ÿ Streamlined Reliability Centered Maintenance Ÿ Risk Evaluation and Prioritization (REAP) – for maintenance planning and capital overhauls Ÿ Boiler Tube Failure Reduction Programs Ÿ Generator/Transformer Programs – inspection, procedures, diagnostic tools, and maintenance Ÿ Overhauling Planning – work scope development, materials management, staffing, etc. Ÿ Welding Procedures – specialized applications & critical locations Ÿ Selective Non-Catalytic Reduction (SNCR) Ÿ Ash Utilization

18 Initial U.S. Power Plant Training Ÿ American Electric Power and other U.S. utilities (through Edison Electric Institute) offering to conduct wide range of practical power plant and environmental performance improvement training Ÿ Initial 1-2 week training at AEP’s Muskingam Power Plant in mid-September Ÿ Follow-on training to be developed Ÿ All Indian and Chinese utilities are invited to send several engineers and managers

19 Cleaner Fossil Energy Task Force Ÿ Integrated gasification combined cycle –facilitate establishment of IGCC demonstration plant in India –facilitate link to FutureGen Ÿ Oxy-fuel combustion Ÿ Post combustion capture Ÿ Carbon capture and storage project (sources and sinks study) Ÿ Other higher efficiency systems, including reduced air emissions Ÿ Liquefaction (coal and heavy residues) Ÿ Development of enhanced coal bed methane Ÿ Analysis of clean fossil fuel technology costs across APP Ÿ LNG market growth Ÿ LNG gas technology Ÿ Gas/Power (distributed/remote area power systems)