1. Technologies for Energy Production and Utilization in a Carbon Constrained World Rodney Andrews, PhD PE Director Center for Applied Energy Research University of Kentucky

2. 0 2 4 6 8 12 200020502100 0 200 400 600 800 1000 1200 1400 Population (Billions) Energy Consumption (Qbtu / yr) World Population Population of Developed Countries World Energy Consumption 19501900 10 Year Source: USDOE World Energy Use Growing Dramatically with Population

3. Affluence Poverty Annual Commercial Energy Consumption per Capita (kWh / person) GDP per Capita ($ / yr / person) Japan Bangladesh China Poland Mexico South Korea UK France U.S. Source: USDOE Universal Need for Affordable Energy

4. CARBON CONSTRAINTS The world is getting smaller, and fossil energy is a bigger target

5. AEO 2008

6. Annual Energy Outlook 2009

7. International Energy Outlook 2009

8. Energy in Kentucky 92% of Ky electricity from coal Ky is 1.4% of US population –Produces 2.3% of US Electricity Ky uses 2% of US Energy –1.7% Residential 40% electric home heat vs 30% national average. –2.7% Industrial –1.4% Commercial –3.7% Carbon Dioxide EIA, Oct 15, 2009

9. CARBON MANAGEMENT Can technology keep up with political reality?

10. Technology and Innovation Can Lead to Reductions in Carbon Emissions Fuel Switching Improve Efficiency Demand Side Supply Side Natural Gas Nuclear Sequester Carbon Reduce Population Reduce GDP Capture & Storage Enhance Natural Sinks Renewables Photo art: A. Benlow Utilization or Conversion???

11. Reductions in Carbon Emissions By Adoption of New Power Generation Technologies PC (2000) IGCC (2000) PC (2010) Coal Generation Technology NGCC (2010) NGCC (2000) Gas IGCC (2010) Percent Reduction in CO 2 Emissions (Relative to Average PC Plant in 1999) Source: NETL, Scott Klara All Technologies with Sequestration

12. Fuel Switching: Not a Simple Solution Biofuels present new challenges – Monoculture, transportation, fossil infrastructure Natural gas could become single fuel option Heat, electricity, chemicals and food Nuclear has unfortunate legacy Solar is yet to be realized Fossil energy is not going away soon – How do we extract with as little impact as possible – How do we return to beneficial state – How do we deal with emissions and wastes

13. 13 Utility Asset Matrix – Aging Units Across Kentucky

14. CARBON CAPTURE FROM FOSSIL FUEL POWER PLANTS Algae Farm

15. CO 2 Capture from Electricity Generation

16. Lowering the Energy Penalty of CO 2 Capture Post-Combustion Capture: PC + MEA (28-34%) – Steam consumption for stripper: 20% of gross power output – Booster fan and agent pump for MEA scrubber: 3-4% of gross power output Pre-combustion Capture: IGCC (total 15-24%) – ASU + oxygen compression: 8-12% of gross power output – Selexol CO 2 separation: 2% of gross power output In-situ Capture: Oxy-Fuel Combustion (total 22-32%) – ASU: 15-20% of gross power output – Flue gas recirculation: 2% of gross power output – Possible CO2 further enrichment (unknown) ** Compression Train: 5-10% of gross power output Cost Related to CCS Capture: 60% Transport: 20% Injection &Storage: 20%

17. Current Status of IGCC Mature technology for gasifier New wave pushed by GE, Shell and ConocoPhillips OEMs teamed with engineering companies to wrap RD&D – New catalyst/shift-reactor process to reduce H 2 O/CO ratio – Membrane separation – Sorbent development – Process integration – Oxygen production

18. Current Status of Scrubbing Amine: commercial-implementation on NG, food and chemical production – Kerr-McGee/ABB Lummus Crest Process – Fluor Daniel ECONAMINE FG Process – MHI’s KM-CDR process with KS solvent – Ongoing RD&D for utility flue gas University of Texas at Austin European Union integrated project “CO 2 from Capture to Storage” (CASTOR) International Test Center (ITC) at University of Regina, Canada MHI UK CAER Ammonia: Commercial for fertilizer production – Ongoing RD&D for Utility’s flue gas Alstom/EPRI 5MWth pilot plant at WE Energy - Pleasant Prairie Plant Powerspan/NETL 1MWth slipstream at FirstEnergy’s Burger station UK CAER/E-ON US 0.1MWth pilot plant

19. UNIVERSITY OF KENTUCKY PROGRAMS ON CARBON MANAGEMENT AND STORAGE New technologies are necessary if Kentucky wants to compete in this new world.

20. CAER’s Post-combustion CO 2 Capture Pilot Plant Initiated by EON-US $1.5 million grant 0.1 MW(th) Pilot Scrubber System Largest at a university Platform for testing – New chemistries – New scrubber designs Focus on lower energy penalty – Estimates of 60% cost increase – 1/3 power output of plant

21. Carbon Management Research Group State-UK-Industry consortium Build on E.ON US investment in carbon management and emissions control Develop more energy and cost effective carbon management technologies Address specific materials, controls and waste management solutions Allow early adoption of technologies by Kentucky’s electric utilities $1 Million/yr match provided by State AEP/KP, Duke, EKPC, EON-US, EPRI – negotiating with others.

22. DEVELOPMENT OF AN ALGAE SYSTEM FOR MITIGATION OF CO 2 FROM COAL-FIRED POWER PLANTS Center for Applied Energy Research Biosystems and Agricultural Engineering KY Department of Energy Development and Independence $3.5 million / 3 years EON has agreed to host demonstration phase

23. Algae for Carbon Capture Uses CO 2 as feedstock – Improved CO 2 footprint for coal Robust and easily produced High solar efficiency May have a high oil (lipid) content – As high as 65% by mass (dry) – Converts to biodiesel

24. Media Drying Dewatering Coal Power Plant Biomass Fractionation Proteins Carbohydrates Lipids CO 2 Lean Gas Recovered Nutrients (N,P,K) Recovered Media Recovered Water Algae Cultivation Overall Process

25. Algae Scrubber Demo 25 http://www.caer.uky.edu/greenhouse/ home.shtml

26. KENTUCKY GEOLOGICAL SURVEY CARBON SEQUESTRATION RESEARCH

27. Carbon Sequestration Research Western KY Seq. State* $1.35 M Industry $6.0 M** Other $0.5 M TOTAL $ 7.85M Eastern KY Seq. $1.35 M $0.5 M$3.2 M EOR$0.85 M $0.5 M$2.20 M EGR$0.85 M $4.90 M $0.85 M$0.5 M$2.20 M 15.45 M *UK is cost sharing their F & A indirect costs of about $1.0 million **EON US, Peabody, ConocoPhillips, TVA

29. W Ky. Deep CO 2 Injection Well Summary KGS #1 Blan well drilled to 8,126 ft total depth in Hancock County Successful injection tests into Knox Group – over 23,000 barrels water injected – 323 tons of CO 2 injected at pump capacity (~7 hours) Injection rates suggest high permeability fractures connect matrix porosity Funding received from U.S. DOE for 2 nd phase of research in 2010

30. WHAT DOES THIS MEAN FOR COAL?

31. What may happen? We pay the penalties – 30-40% increase in generation (minimum) – 30% more coal mined – Delivered cost increases ~60% We buy power

32. What should happen? We change our model – Base regulation on efficiency – Allow “real future cost” in best price option – Clean Coal We innovate – New technologies to deal with carbon – Efficiency improvements – Renewable and alternative Sources

33. Questions? For further information: Rodney Andrews UK Center for Applied Energy Research 2540 Research Park Drive Lexington, KY 40511 andrews@caer.uky.edu Ph 859-257-0305 www.caer.uky.edu