The Energy Blog

Report Finds Unconventional Fuels and Efficiency Gains Could Make a Significant Impact on required Oil Imports

In a three volume report that a DOE Task Force prepared it was concluded that "the domestic and global fuels supply situation and outlook is urgent. Increasing global oil demand, declining reserve additions, and our increasing reliance on oil and product imports from unstable foreign sources require the Nation to take immediate action to catalyze a domestic unconventional fuels industry." It further went on to say "Aggressive development by private industry, and encouraged by government, could supply all of the Department of Defense’s domestic fuels demand by 2016, and supply upwards of 7 million barrels per day of domestically produced liquid fuels to domestic markets by 2035." Their most aggressive scenario concluded that oil imports would decrease if significant efficiency gains were made.  The following is a shortened summary of the report from EV World. (click to enlarge graph)

The United States' Task Force on Strategic Unconventional Fuels (www.unconventionalfuels.org) has made public its findings and recommendations on the future role to be played by five non-petroleum energy sources found in America: shale oil, heavy crude, tar sands, coal-to-liquids and enhanced oil recovery (EOR) using captured carbon dioxide.. . .

The Task Force . . . takes a comprehensive look at the potential contribution these, heretofore under-utilized resources can make in supplementing the nation's declining petroleum production. They conclude that even under the most aggressive development scenario, these resources could produce about 7.6 million barrels a day of synthetic liquid fuel by 2035. And under current, business-as-usual, conditions -- and assuming a whole host of issues from socioeconomic to technical can be resolved -- unconventional fuels might add 2.3 mbld by 2035, about one-tenth of what America currently consumes. . . .

The contributions made by the various unconventional energy sources under three different utilization scenarios shows America continuing to be largely dependent on imported oil with energy conservation and efficiency making greater contributions then unconventional fuels put together.

TECO Cancels IGCC Power Plant

Tampa Electric yesterday announced that it no longer plans to meet its 2013 need for baseload generation through the use of integrated gasification combined-cycle technology, or IGCC. Primary drivers of the decision announced today include continued uncertainty related to carbon dioxide (CO2) regulations, particularly capture and sequestration issues, and the potential for related project cost increases. Because of the economic risk of these factors to customers and investors, the company believes it should not proceed with an IGCC project at this time.

The company remains steadfast in its support of IGCC as a critical component of future fuel diversity in Florida and the nation, and believes the technology is the most environmentally responsible way to utilize coal, an affordable, abundant and domestically produced fuel. Tampa Electric is recognized as the world leader in the production of electricity from IGCC. The company also believes that IGCC technology offers the best platform to capture and then sequester CO2. Once public policy issues regarding long-term sequestration are resolved, demonstration projects can be conducted that will lead to a better understanding of the science, technologies and economics of sequestration.

“We believe there is a role for IGCC in Tampa Electric’s future generation plans, but with the uncertainty of carbon capture and sequestration regulations being discussed at the federal and state levels, the timing is not right to utilize it for a baseload facility needed by 2013. We are not prepared to expose our customers and shareholders to that risk.” - President Chuck Black

This is but one of the many coal fired power plants that have been either canceled or put on hold - but this is the first IGCC plant I have heard of that has been canceled.  Power companies are coming under more pressure to put in environmentally friendly power plants, but the government has not moved on any regulations that require any restriction on CO2 emissions.  Several power companies have said they would back carbon capture and sequestration requirements, but they do not want to put in such plants unless their is an even playing field regarding such requirements.

Perhaps the recent development of technologies that can be applied to conventional coal fired power plants is one consideration affecting their decision.  Nuclear power is probably the safest route to go as far as not having to worry about CO2 emissions, but its capital expense is still very high and even though the approval process has been simplified, that is yet to be demonstrated in the real world.  Natural gas is also a fairly safe route, but future costs of natural gas are quite uncertain.

Renewable energy, especially for large base load plants is not generally accepted as the answer.  I would think with TECO's load growing at 150 megawatts per year it might be possible to establish a policy of installing renewable energy incrementally to meet its needs.  Florida is situated where solar power, offshore wind and someday wave power might be considered.  By installing a mix of renewable energy technologies which have different time periods of peak output, the resulting power production is considerably leveled out to provide a more continuous flow of power.  Solar, with about four hours of storage, matches the peak load for most areas. The large load for air conditioning and a fairly small industrial load would seem to me to make a good case for solar power in Florida. Florida Power and Light recently made a commitment to solar power, so at least one utility thinks Florida is a suitable location for solar power.

Low-Swirl Combustion Cleans the Air

A unique type of clean-burning combustion technology called, low-swirl injection (LSI), for fuel-flexible near-zero-emission gas turbines, developed by Robert Cheng and David Littlejohn of Berkeley Lab’s Environmental Energy Technologies Division, along with scientists from San Diego-based Solar Turbines. The technology is now entering the marketplace after years of research and development.

LSI  technology, recently won a 2007 R&D 100 award for 2007 from R&D magazine as one of the top 100 new technologies of the year.

LSI is a technology that significantly reduces greenhouse gas emissions and pollution from gas turbines used to produce electricity, or from any stationary combustion system in which it is incorporated.  Burners using this technology produce 10 to 100 times lower emissions of nitrogen oxides than conventional burners, making it easier and more economical for industries to meet clean air requirement.

In the 1980s, new combustion technologies reduced nitrogen oxides (NOx) from more than 100 parts per million (ppm) to the current standard of less than 25 ppm. Now, the low swirl Injector emits less than 2 ppm. It is the only technology that can affordably reduce NOx emissions to this near-zero level.

FutureGen Engineering and Construction Management Firm Selected

The FutureGen Alliance has selected Washington Group International (NYSE: WNG) to provide architectural, design, and engineering support services for the FutureGen initiative. The $1 billion project is an approximate 275-megawatt Integrated (coal) Gasification Combined Cycle (IGCC) power plant that will will generate hydrogen to produce electricity while capturing and permanently storing carbon dioxide, a greenhouse gas, deep underground.

The project includes development of a large-scale engineering laboratory and research platform for evaluating and testing new technologies for the conversion of coal to fuel gases, for the capture of carbon dioxide, and for the clean production of power.

The initial technology selection, design, and engineering work is scheduled for completion in March 2008.

As the engineering and construction management provider, Washington Group International will assist the Alliance in the evaluation and selection of technologies for coal gasification and for gas and power generation, as well as integrate the selected technologies and packages for the processes across the facility.

The FutureGen Initial Conceptual Design Report, May 2007, describes the project’s objectives and the conceptual design for the entire FutureGen project, including the technical activities that will lead to design, construction and operation of the plant, and the management approaches that will direct and fund those technical activities.

Site selection has been narrowed down to two sites in Illlinois and two in Texas with final site selection scheduled for late 2007. 

The facility is scheduled to go online by 2012.

My previous post "About IGCC Power Plants" has a more detailed description of IGCC power plants.

Powerfuel (UK) Signs Licence with Shell for 900 MW Power Plant

U.K.-based coal producer and power generator Powerfuel PLC, which is 30% owned by Russian coal miner Kuzbassrazrezugol, has signed an agreement with Royal Dutch Shell PLC to use Shell's patented technology to build a near-zero carbon emissions coal-fired power station. The project is expected to cost about GBP1.1 billion to GBP1.2 billion (US$2.2 to US$2.4) to build.

Construction will take three to four years and may involve building a pipeline to transport carbon dioxide to storage sites in the North Sea.

From the Shell press release:

The UK unit of oil giant Shell has signed a license agreement with Powerfuel that entitles the company to use Shell’s proprietary gasification technology in its proposed 900MW integrated gasification combined cycle coal-fired power station in Hatfield, South Yorkshire.

According to Shell UK, the purpose of this approach is to enable carbon capture and storage to take place at the lowest cost using current technology. The partnership could see Powerfuel become the first commercial-scale coal-fired power generator with carbon capture in the world.

Shell commented that coal gasification is the cleanest method for converting coal’s energy potential into electricity. The process takes coal and turns it into a hydrogen-rich synthesis gas, which, in this case, will facilitate the separation of the carbon dioxide prior to combustion in the turbine generators.