1. Marcin Liszka, Andrzej Ziębik Clean Coal Technologies Meeting, Regional Office of Silesia, Brussels, 10th of June 2008 Institute of Thermal Technology, Silesian University of Technology Innovative Silesian Cluster of Clean Coal Technologies Clean Coal Power Production & Carbon Capture and Storage - thermoeconomic evaluation for Silesian conditions

2. -regional initiative open for domestic and international cooperation, aiming at development and implementation of Clean Coal Technologies in coal mining, power engineering and chemistry of coke. The funding members of the Cluster (2005) were: 1. Central Mining Institute, 2. Silesian University of Technology, 3. Institute for Chemical Processing of Coal, 4. Institute of Chemical Engineering of the Polish Academy of Sciences, 5. Southern Poland Power Company 6. Kompania Weglowa S.A. (Coal Company) 7. Jastrzebie Coal Company 8. Katowicki Holding Weglowy S.A. (Coal Holding of Katowice) 9. City of Gliwice. 10. City of Jastrzebie Zdrój. 11. City of Jaworzno. 12. City of Katowice. 13. City of Rybnik. 14. City of Tychy. SCIENCE INDUSTRY REGIONAL AUTHORITIES at present: 25 members

3. Why coal is so important? – structure of energy generation Fuel mix of power sector by (%) No other large country is as dependent on coal for its power generation as Poland. *Source: Eurostat, after Zmijewski EU- 25 coal share in fuel mix 30%

4. Important difference in specific CO2 emission kgCO2/MWh That results in a quite different final cost of electricity upon applying CCS technology and its effects national economy and competitiveness of industry.

5. Silesian Regional Foresight (2007) - results of the Energy Technology Panel Scenario of Moderate Development What to do?

6. Silesian Regional Foresight (2007) - results of the Energy Technology Panel Innovative Scenario Crucial question: What is the economics of these technologies considering new EU CO2 policy ?

7. Thermoeconomic analysis Studied cases : 1.PF plant; air combustion; supercrtical steam parameters (600/620 o C, 30 MPa); no Carbon Capture and Storage – reference case (PF_ref). 2.PF plant; steam cycle the same as for 1; post-combustion CO2 capture (chemical absorption); geological CO2 storage (PF_CA). 3.Oxy-fuel PF plant; steam cycle the same as for 1 and 2; (PF_OXY). pulverised fuel (PF) plant as example focus on hypothetical new power units located on Silesia start-up of the investment (plant construction): 2011

8. Emissions incl. 100% CO2 Thermoeconomic analysis - technology estimates PF_ref coal electricity (net) auxiliary power auxiliary substances POWER UNIT (deSOx, deNOX) PF_CA coal electricity (net) auxiliary power auxiliary substances POWER UNIT (deSOx, deNOX) auxiliary heat Emissions incl. 10% CO2 CO2 captured (90%) CO2 capture & compression

9. O2 Thermoeconomic analysis - technology estimates PF_OXY coal electricity (net) auxiliary power auxiliary substances POWER UNIT Emissions no CO2 CO2 captured (100%) CO2 compression ASU Plant typeNet energy efficiency Investment cost, Euro/kW CO2 Capture efficiency PF_ref0.4613000 PF_CA0.3320000.9 PF_OXY0.3522001

10. Thermoeconomic analysis - methodology thermodynamic modelling (net electric power 600 MW for all cases) discounted cash flow analysis according to FCFE method prices and costs typical for Silesian region PF_OXY – modelled structure Criterion for economic evaluation: Electricity price (EP) ensuring MIRR=10% (for discount rate = 7%)

11. Thermoeconomic analysis - results 34 Euro/MWh

12. Thermoeconomic analysis - results

13. Conclusions 1.Carbon Capture and Storage (CCS) rises significantly (by a factor of ca. 1.45) the cost of electricity produced in pulverised fuel (PF) units. Similar conclusion would be drawn for plants based on circulated fluidised boilers (CFB). 2.Taking into account that Polish power generating sector is based in 95% on coal, the CO2 avoidance policy is threat for our national and regional economies. 3.For these reasons the CCS and other energy directives should be evaluated carefully, particularly taking into account local European markets and final effect on their competitive economies. 4.Polish industry as well as universities and R&D organizations are actively involved in a development of CCS technologies. Identification of potential projects and associated major technical and economic challenges has already been done.

14. Governmental actions related to CCS Strategic R&D program – Advanced Technologies for Energy Generation; Ministry of Science National Program for carbon dioxide geological storage; Ministry of Environment; 2008-2011 Demo Clean Coal Program for Energy; Ministry of Economy; 2008- 2015

15. Thank you for your attention e-mial: marcin.liszka@polsl.pl