Robert Hilton - Alstom

1. PANEL 4
THE COST OF CAPTURE: PROGRESS AND OPPORTUNITIES
Anne Margrete Blaker and Stale Aakenes – Gassnova SF
George Booras – EPRI
Robert Hilton – Alstom
Don Wharton – TransAlta

2. The Costs of Capture: Progress
and Opportunity
GCCSI Annual Meeting
Calgary, Alberta, Canada
Robert G. Hilton
October 11, 2012

3. Introduction
• IPCC 2007: Max GHG 450 ppm for +2°C scenario
⇒ reduce massively CO2 emissions in Power Gen
 Efficiency increase EUROPE - MtCO2 - 2035
New Policies Scenario
 Nuclear & Renewables and 450 Scenario (IEA-WEO 2011)
 CCS on Fossil plants COAL GAS
449
• CCS necessary because:
397
 2035: >50% of W-W TWh still fossil
 Fossil will remain strong until ~2050 159
 IEA WEO: - 2,7 GtCO2 CCS in 2035 81
 CCS on Coal and Gas
NPS 450 NPS 450
CCS needed on both Coal and Gas. Will it be competitive ?
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P3
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

4. Introduction
Alstom Cost of Electricity study on CCS
CCS experience: 16 pilots/demos Plant integration experience
(supply of turnkey power plants)
Alstom know-how for a solid
CoE study on CCS PP
Component manufacturer
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P4
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

5. CCS Cost of Electricity study
Main assumptions
Reference plants: Coal & Lignite (without CCS)
EUR NAM SEA
Fuel type Bituminous Raw Lignite Dried Lignite PRB coal Bituminous
Fuel heating value KJ/Kg LHV 24 930 10 278 21 283 20 425 20 896
Carbon content UB mass% 65% 31% 57% 56% 53%
Fuel price 2011 Euro/t 78,2 24,3 24,3 25,7 53,4
Euro/GJ 3,14 2,37 2,13 1,26 2,56
Cycle argt 2020/30 bar/°C/°C 300b/600/620°C 272b/600/605°C 300b/600/620°C 300b/600/620°C 300b/600/620°C
Cooling type °C 13°C - Direct C 18°C - Direct C 18°C - Direct C 19°C - CT 28°C - Direct C
Net Output MWe net 837 1 000 1 000 837 837
Net eff. 15/20/30 % LHV 46.2/48/48.4 % 44/-/- % w HR 47,6/48,8/49 % 44/46.2/46.7 % 41/42.7/43 %
EPC 2015/20/30 €/KW net 1421/1518/1518 1583/-/- 2070/2200/2200 1612/1722/1722 814/869/869
• Base case at 7450 hrs per a. plus sensitivity analysis
• Performance improvement considered (e.g. double reheat ST)
• Cycle arrangement in 2020/30: 300b-600°C-620°C
Realistic set of assumptions by region
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P5
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

6. Hardcoal CCS power plant
Energy Penalty (EP)
(Ref PP net MWe – CCS PP net MWe)
Energy penalty (EP) =
(Ref PP net MWe)
EUR & NAM SEA
Note : 90% capture of CCS PP CO2 emission, CCS plant and Reference plant at same net
Performance improvement and cooling temperature impacts
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P6
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

7. Hardcoal CCS power plant
CoE base case (with T&S, without CO2 price)
CoE €/MWh net EUR CoE €/MWh net NAM CoE €/MWh net SEA
90 90 90
73,5 €/MWh Oxy Oxy
80 (Post) 80 Post 80 Post
Ref PP Ref PP
70 Oxy 70 70
Post +45%
60 Ref PP (Post) 60 60
64 €/MWh 62 €/MWh
50 50 (Post) 50 (Post)
40 40 40
30 30 30
2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035
• All with T&S, on-shore saline aquifer: impact on CoE: 4,8 to 7,2 €/MWh net
EUR 2032: CCS => +45% increase in CoE; NAM/SEA: lower CoE
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P7
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

8. Hardcoal CCS power plant
Fuel, Capex/Opex and T&S contribution in CoE
CoE Ref Plant & Incremental CCS in 2032
€ / MWh net 100
T&S
90 Fuel
73,5
80 +45% Capex+Opex
70 64 62
60
50,5
50 40,5 40
40
30
20
10
0
REF POST REF POST REF POST
EUR NAM SEA
High capex, expensive coal Cheap coal, lower efficiency Low Capex, expensive coal
Regional differences in Fuel, Capex/Opex costs
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P8
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

9. CCS Cost of Electricity study
Main assumptions
Gas Reference Combined-Cycle Power Plants (without CCS)
EUR NAM SEA
Fuel type Natural gas Natural gas Natural gas
Fuel heating value KJ/Kg LHV 50 000 50 000 50 000
Carbon content mass% 75% 75% 75%
Fuel price 2011 Euro/GJ 7,2 2,8 3,8 (subs.)
Cycle argt 2020/30 1-1 SS 2-1 MS 1-1 SS
Cooling type °C 13°C - Direct C 19°C - CT 28°C - Direct C
Net Output 15/20/30 MWe net 600/650/700 850/900/950 538/583/628
Net eff. 15/20/30 % LHV 61/62/63 % 60/61/62 % 60/61/62 %
EPC cost 15/20/30 €/KW net 558/544/529 452/441/429 473/461/449
• Base case combined cycle at 6570 hrs per a.
• Performance improvement considered
Combined cycles realistic set of assumptions
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P9
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

10. Gas Combined Cycle CCS Power Plant
CoE base case (with T&S, without CO2 price)
CoE €/MWh net EUR CoE €/MWh net NAM CoE €/MWh net SEA
80 80 80
COE - EUROPE COE - NAM COE - ASIA
75 75 75
68,5 €/ MWh ) Post FGR, 90% capt
70 70 Post FGR, 90% capt 70
Ref plant
65 65 Ref plant 65
60 Ref plant
+28% 60 60
55 55 55
50 50 50
45 Post FGR, 90% capt 45 45
40 Ref plant 40 40 Ref plant +32%
35 35 35
30 30 Ref plant +42% 30
25 25 25
2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 2015 2020 2025 2030 2035
• Gas price at 7,2 Euro/GJ • Lowest gas price at 2,8 €/GJ • Subsidized gas price 3,8 €/GJ
=> offsets Capex advantage
• -5 % reduction with FGR
Note : 90% capture of CCS PP CO2 emissions, CCS plant net output de-rated vs Reference plant (energy penalty)
Difference in gas price between regions drives CoE level
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P 10
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

11. Gas Combined Cycle CCS Power Plant
Fuel contribution in CoE
€ / MWh net
CoE Ref Plant & Incremental CCS in 2032
100
Fuel
90 Capex+O&M+T&S
80 68,5
+28%
70
60 53,6
45,4
50 37,7 +32%
+42%
40 34,4
26,6
30
20
10
0 REF POST REF POST REF POST
EUR NAM SEA
Smaller % increase in CoE than for coal due to
higher fuel cost contribution
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P 11
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

12. CCS competitiveness against other low
carbon alternatives in Europe in 2012-17
CoE Low Carbon technologies – New PP over next 5 years Up to 45€
cents/kWh
€ / MWh
300
EUROPE 300
250 250
Reference case
200 200
150 150
Low case
CSP Tower
100 with storage 100
86 79
50 (82 for Ref 50
CCS Oxy)
0 0
Hardcoal w Gas CCPP Nuclear Hydro Geo- Wind Wind Solar Solar PV
CCS Post w CCS thermal Onshore Offshore Thermal
2017 2017
Source : Alstom analysis 2012. CCS w Post amine 2017 costs, including on shore T&S & CO2 price (Flue Gas Recirculation for CCS Gas CC)
CoE do not include “externalities” of Intermittent power (Back-up cost, balancing cost, grid enhancement if required)
Under realistic assumptions and with a conservative variation
range, CCS is already in the “mix” of low carbon alternatives
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P 12
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

13. Technology and Scale
• CCS technology is proven and is technologically feasible.
• CCCS is not commercially available as it has not been demonstrated at
commercial power plant scale
• Demonstration at commercial scale is critical to define risks, optimize
process and achieve cost reduction to support commercial contracting
• The CCS technology requires both policy direction and financial support to
be demonstrated at commercial scale
• CCS could be competitive on a level playing field in a free market
• EOR will help close the gap on financing particularly on early move
projects.
• Other products may be helpful depending on markets
• Stronger Governmental support is required
CoE of coal & gas CCS power plants – 14 June 2012
© ALSTOM 2012. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or P 13
should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial
circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties without

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