1 MHI's Commercial Post Combustion CO2 Capture Experiences in a Carbon Constrained World Ronald Mitchell Mitsubishi Heavy Industries, Ltd. International Workshop on Power Generation with Carbon Capture and Storage in India January 2008, Ashok Hotel, Delhi, India

2 1.Introduction & Concept of Post Combustion CO 2 Capture 2.MHI’s CO 2 Capture Experience 3.MHI’s Flue Gas CO 2 Recovery Technology 4.CO 2 Recovery from Coal-fired Boilers 5.MHI’s scope in a CCS Project 6.Path Forward - Government incentives for CCS CONTENTS

3  Coal will persist as a dominant fuel for power generation well into this century  MHI has commercialized an advanced post combustion CO 2 capture technology process  MHI has an expanding list of commercial deliveries mainly in the fertilizer production industry  MHI has conducted demonstration testing of CO 2 capture from coal fired boilers  Government support is needed to encourage large scale CCS deployment – how? 1. Introduction

4 Concept of Flue Gas CO 2 Recovery, Sequestration and EOR 1. Concept of Post Combustion CO 2 Capture Source: IPCC Fertilizer Production in India

5 ① Is applicable for the current, global PC fleet ② Offers high degree of flexibility – is adaptable and cost competitive with other technologies ③ Operation at atmospheric pressure – safe and does not require exotic materials ④ Produces highly purified CO 2 – important environmental consideration for transport and disposal ⑤ Easy to transfer post combustion technology to developing countries – simple process and configuration ⑥ Allows for future zero emission use of coal Advantages of Post Combustion CO 2 Capture 1. Concept of Post Combustion CO 2 Capture

6 Malaysia Petoronas 1999~ 200 t/d Urea Japan Chemical Co. 2005~ 330 t/d General use India IFFCO Dec 2006~ 2 x 450 t/d Urea OTHER PROJECTS Abu Dhabi ChinaIndiaBahrain Project Status FEED Complete FEED Complete Awarded Project Flue Gas Source Nat. Gas. Reformer Nat. Gas. Boiler Nat. Gas. Reformer Expected on stream CO 2 Capture Capacity (T/D) MHI’s Experience MHI’s Commercial CO 2 Capture Plants

7 Example of a Commercial Project in India Client:Indian Farmers Fertilizer Co. Solvent:KS-1 Solvent Capacity:450 T/D x 2 units Feed Gas:Natural Gas and Naphtha Reformer Flue Gas Use of CO 2 :Urea Production Start-up:2006 CO 2 is recovered from steam reformer flue gases. CO 2 is compressed and then used for urea synthesis. Includes a Deep FGD caustic soda wash in the quencher to remove SOx Flue gas is cooled and then SOx is removed before entering the CO 2 absorber. 2. MHI’s Experience Process Description Plant Outline

8 Coal Fired Long Term Demonstration Plant Solvent : KS-1 Capacity : 10 T/D Feed Gas: Coal Fired Boiler (14.1 v% CO 2 ) Start-up: July 2006 Location: Nagasaki, Japan  Increased understanding of the effects of impurities on the system (dust, SOx, NOx, etc.)  Identifying and incorporating countermeasures for each impurity  >4,000 hours of operation and experience  Test results exceeded expectations and will facilitate scale up CO 2 capture for coal fired boilers  Confirms that the MHI CO 2 capture process can be applied to coal fired flue gas streams 2. MHI’s Experience Process Description Plant Outline

9 Large Scale CO 2 Capture Plant (3000 T/D Plant) Basic design complete 2. MHI’s Experience Cooling Tower Deep FGD Stripper Absorber Flue Gas Duct

10 3. MHI’s Flue Gas CO2 Recovery Technology C.W. Steam Reboiler C.W. ABSORBER Flue Gas Cooler CO 2 Flue Gas Outlet Flue Gas STRIPPER (Regenerator) Purity : 99.9 % Combustion flue gas from a fossil fuel fired power station Pre-Treatment Facility (Deep FGD) required for Coal Fired Flue Gas MEAKS-1 Circulation Rate 10.6 Regeneration Energy Solvent Degradation 10.1 Solvent Loss 10.1 Corrosion Inhibitor YesNo Feature of Process: Comparison with MEA solvent Process Flow for Amine Absorption MHI’s proprietary KS-1 solvent

11 2 t/d200 t/d 330 t/d450 t/d800 t/d3000 t/d Commercial Experience with Natural Gas fired flue gas Basic Design Complete (Nat. Gas) MHI’s Operating Experience MHI’s operating experience includes an expanding number of commercial plants in a range of countries, combined with a strong foundation of pilot and small scale demonstration plant experience for both natural gas and coal fired flue gas application. 1 t/d10 t/d Pilot & small scale demonstration experience (Nat. Gas & Coal) FEED Complete (Nat. Gas) ～ 5000 t/d t/d Phase 1 (Coal) Phase 2 (Coal) Medium-large scale demoFull scale commercial MHI’s Proposed Phased Approach to Commercialization of CO2 Capture Technology for Coal Fired Boilers 4. CO2 Recovery from Coal-fired Boilers

12 Power Plant / Industrial Source CO 2 Capture CO 2 Compression Dehydration CO 2 Transport CO 2 Injection EOR etc CO 2 Credit Generation Long term Monitoring Projects  The supply chain for a complete CCS project is complex  Requires integration of a number of industry segments  A carbon price creates incentives to drive CCS project execution  Regulatory framework is in the pipeline MHI Scope Single Contractor Flue gas pre-treatment 5. MHI’s Scope in a CCS Project The CO2 Supply Chain

13 A)Funding for CCS demonstration projects – to reduce risk B)Establish regulatory certainty – do not delay further C)Create tax credits/subsidies for downstream application of anthropogenic CO 2 (act as an initial industry driver) D)Legislate to include CCS within emission trading schemes to ensure there are ‘rewards’ for industrial CCS projects E)Establishing a carbon price will create additional incentives for CCS deployment – contribute toward project finance Governments must create incentives which will encourage industry investment and widespread CCS – How? 6. Path Forward – Government Incentives for CCS

14 Ronald Mitchell Manager Business Development Carbon Abatement Project Origination Environmental Plant Department Mitsubishi Heavy Industries, Ltd Nishi-ku, Yokohama, JAPAN, Office Ph: | Cell Ph: MHI Web: MHI CO2 Recovery Process: Further Information