1. 1 ZERO-EMISSION ENERGY PLANTS Dr. Robert ‘Bob’ Wright Senior Program Manager Office of Sequestration, Hydrogen and Clean Coal Fuels Office of Fossil Energy U. S. Department of Energy Washington, DC The Energy Advancement Leadership Conference Global Energy Management Institute University of Houston Houston, Texas 18 November 2004 Dr. Robert ‘Bob’ Wright Senior Program Manager Office of Sequestration, Hydrogen and Clean Coal Fuels Office of Fossil Energy U. S. Department of Energy Washington, DC The Energy Advancement Leadership Conference Global Energy Management Institute University of Houston Houston, Texas 18 November 2004

2. 2 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 America Depends on Fossil Energy AEO 2004: Table A1 2025 136 Quads +39% (1.5% pa) Fossil fuels provide 85.6% of energy 2002 98 Quads Fossil fuels provide 87.2% of energy

3. 3 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Coal Use Contaminant Emissions Down Index: 1970 = 1 Electricity Generation Nitrogen Oxides Sulfur Dioxide Particulate Matter Natural Gas Use EPA, National Air Quality and Emissions Trends Report, 1999 (March 2001) DOE, EIA Annual Energy Review Year U.S. Power Plants

4. 4 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 CO 2 Concentration On The Rise From ~280 ppm to 370 ppm over the last 100 years

5. 5 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Coal-Fired Power Plants Produce 1/3 of CO 2 CO 2 from Combustion in U. S. Residential Commercial Industrial Transportation Electric Tg CO 2 Eq. Natural Gas Petroleum Coal Relative Contribution by Fuel Type U.S. Territories Table 2-3, EPA 430-R-03-004, April 2003 Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2001

6. 6 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 The Case for Hydrogen Energy Security Response DIVERSE DOMESTIC RESOURCES Environment Response ZERO/NEAR ZERO GHG and other EMISSIONS Biomass Hydro Wind Solar Coal Nuclear Natural Gas Oil S e q u e s t r a t i o n Biomass Hydro Wind Solar Biomass Hydro Wind Solar Coal Nuclear Natural Gas Oil Power Generation Transportation Industry H2H2H2H2

7. 7 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Why Hydrogen From Coal? nU.S. reserves are huge –250 year supply nH 2 can be produced cleanly nH 2 from coal is economical nCarbon capture and storage addresses climate change nDiversifies the source of H 2 nProvides the bridge to production of H 2 from renewable sources and nuclear nU.S. reserves are huge –250 year supply nH 2 can be produced cleanly nH 2 from coal is economical nCarbon capture and storage addresses climate change nDiversifies the source of H 2 nProvides the bridge to production of H 2 from renewable sources and nuclear 1 -- Proved oil and gas reserves, and recoverable coal reserves Quads Fossil Energy Reserves 1

8. 8 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 FutureGen nNearly $1 billion (U.S.), 10-year demonstration project to create the world’s first coal-based, zero-emission electricity and hydrogen plant –Test new technologies –Nominal 275-MWe –1 million tonnes CO 2 per year –Sequester the CO 2 –Produce H 2 nNearly $1 billion (U.S.), 10-year demonstration project to create the world’s first coal-based, zero-emission electricity and hydrogen plant –Test new technologies –Nominal 275-MWe –1 million tonnes CO 2 per year –Sequester the CO 2 –Produce H 2

9. 9 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 FutureGen Gasification with Cleanup and Separation System Integration Carbon Sequestration Platform for Emerging Technologies Optimized Turbines Fuel Cells H 2 Production

10. 10 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 “Traditional” IGCC Coal Central Power Gas Turbine Combined Cycle O2O2 Syngas H 2 / CO Coal Gasifier O2 Plant Sulfur Gas Cleanup

11. 11 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 IGCC in FutureGen Central Power H 2 Turbine Combined Cycle Transportation Fuel Cells IC Engine Geologic Sequestration Distributed Power Fuel Cells H2H2 CO 2 Sulfur Gas Cleanup and Separation Coal O2O2 Gasifier O 2 Plant H 2 / CO Shift H 2 / CO 2

12. 12 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 CO 2 Storage

13. 13 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Geo-Sequestration Advantages nMay be only option that removes enough carbon to stabilize CO 2 concentrations in the atmosphere nOnly approach that doesn’t require countries to overhaul their energy infrastructures—continue to use fossil fuels nMay prove to be the lowest cost carbon management option nMay be only option that removes enough carbon to stabilize CO 2 concentrations in the atmosphere nOnly approach that doesn’t require countries to overhaul their energy infrastructures—continue to use fossil fuels nMay prove to be the lowest cost carbon management option Carbon Management Paths  Switch to low- & no-carbon fuels  Increase energy efficiency  Sequester carbon Renewables, Nuclear, Natural Gas Terrestrial Geologic Demand Side & Supply Side

14. 14 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Storage Options: IEA Technical Review (TR4), March 23, 2004 / Carbon Capture & Sequestration Program @MITWorld Emissions: / DOE-EIA, International Energy Outlook 2003, Table A10 200,000 Deep Ocean Deep Saline Formations Depleted Oil & Gas Reservoirs Coal Seams TerrestrialAnnual World Emissions 6.5 Gtc Range of Potential Capacity Worldwide Storage Capacity Capacity (Gtc)

15. 15 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Adapting to Climate Change Target 1990201520402100 Emissions Reduction in carbon intensity (environmental incentives) Creation of materially new energy sectors (economic growth incentives) Reference Case Chris Mottershead, British Petroleum

16. 16 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Stabilization nStabilization of atmospheric concentrations of CO 2 in 2050 requires a new zero emissions energy sector almost equal in size to the current primary 14 12 10 8 6 4 2 0 Fossil Fuel Emissions (Gtc/yr) Continued Fossil Fuel Emissions Stabilization Wedges 1 Wedge = 1 Gtc 200020102020203020402050 S. Pacala, R. Socolow, Presentation, May 4, 2004

17. 17 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 What is Scale of 1 Gtc Wedge? BUSINESS SECTOR1 Gtc per YEAR WEDGEWEDGES Fuel switching1400 GW fueled by gas instead of coal1 Coal-fired plants w/ CCS1400 500-MW(e) power plants1-3 Geological sequestration3500 Sleipners (1 Mt CO2 /yr)1-3 Hydrogen fuel1 billion H 2 cars displace 30 mpg cars1 Efficiency improvementsCarbon intensity [$GNP] drops 0.2% faster than in past 1-3 Improve ICE efficiency2 billion cars go from 25 mpg to 50 mpg1 Solar PV displaces coal1000 X current capacity, i.e., 5 Mha1 Wind displaces coal70 X current capacity1 Nuclear displaces coal700 1-GW(e) plants, i.e., 1.5 X current capacity 1-3 Biofuel displaces petroleum 200 Mha growing at 7.5 tc/ha per year (= US agro land) 1 Re-forestation700 Mha growing at 2 tc/ha per year1

18. 18 WRIGHT / Zero-Emission Energy Plants / The Energy Advancement Leadership Conference / Houston, Texas / 18 November 2004 Thank You nR. Patrich of SaskPower –“We are moving into a carbon-managed world, not a carbon constrained world.” nWeb sites –www.fe.doe.govwww.fe.doe.gov –www.netl.doe.govwww.netl.doe.gov –www.netl.doe.gov/coalpower/sequestrationwww.netl.doe.gov/coalpower/sequestration nEmail addresses –robert.wright@hq.doe.govrobert.wright@hq.doe.gov –lowell.miller@hq.doe.govlowell.miller@hq.doe.gov nR. Patrich of SaskPower –“We are moving into a carbon-managed world, not a carbon constrained world.” nWeb sites –www.fe.doe.govwww.fe.doe.gov –www.netl.doe.govwww.netl.doe.gov –www.netl.doe.gov/coalpower/sequestrationwww.netl.doe.gov/coalpower/sequestration nEmail addresses –robert.wright@hq.doe.govrobert.wright@hq.doe.gov –lowell.miller@hq.doe.govlowell.miller@hq.doe.gov