Clean Coal Technology

Current Progress, Future Promise

National Mining Association

101 Constitution Avenue, NW

S u i t e 5 0 0 E a s t

W a s h i n g t o n , D C 2 0 0 0 1

202/463-2600 | www.nma.org

Last updated: March 2003

p h o t o s : D O E / N R E L , N E T L

1

Coal

is vital to present and future U.S. economic and

energy security — it currently

provides more than half of

the nation’s electricity generation

and will continue as the

largest single source of electricity supply through 2020 and
beyond (source: Annual Energy Outlook 2002, EIA).

Clean coal technologies

(CCT) — the products of research

and development conducted over the past 20 years —

have

resulted in more than 20 new, lower-cost, more efficient
and environmentally compatible technologies

for electric

utilities, steel mills, cement plants and other industries
(source: U.S. DOE, Office of Fossil Energy).

CCT helped make it possible for U.S. utilities to meet more
stringent Clean Air Act requirements

while continuing to

utilize America’s most plentiful domestic energy resource
— coal.

The original Clean Coal Technology Program, which began
in 1986, focused on commercializing processes that helped
reduce sulfur dioxide and nitrogen oxide emissions and
demonstrating more efficient and environmentally friendly
alternatives to traditional pulverized coal boilers.

New

programs — such as the Clean Coal Power Initiative
(CCPI) — are essential for building on the progress of
the original CCT Program, finding solutions for reducing
trace emissions of mercury; reducing or eliminating carbon
dioxide emissions; and increasing fuel efficiencies.

Over

the longer term, research will be directed toward developing
coal-based hydrogen fuels. If coupled with sequestration,
this will allow greater use of coal with zero emissions.

HIGHLIGHTS

Clean Coal Technologies

provide abundant,

cleaner electric power

at less cost.

5000

0

1000

2000

3000

4000

2002p

2005

2010

2015

2020

Projected Electricity Supply by Generators, 2002-25

b

illi

o

n KwH

Total

Coal

source: U.S. Energy Information Administration, Annual Energy
Outlook 2003, Table 8. p=projection

2025

6000

2

WHAT ARE
CLEAN COAL
TECHNOLOGIES?

New, coal-based technological innovations are environmentally superior
and more operationally efficient than technologies in common use today.
In general, they fall into the following categories:

C o m b u s t i o n

P o s t - C o m b u s t i o n

C o n v e r s i o n

Combining coal with other

substances in the boiler to

improve efficiency and remove

impurities. An example would be

fluidized-bed combustion, where

limestone or dolomite are added

during the combustion process to

mitigate SO

2

formation.

Using “scrubbers” (flue gas

desulfurization), chemical cleaning

or precipitators to remove large

quantities of sulfur, other impurities

and particulate matter (dust and

ash) from emissions before they

are released into the atmosphere.

Using heat and pressure to convert

coal into a gas or liquid that can be

further refined and used cleanly.

An example would be Integrated

Gasification Combined Cycle, and

other gasification and liquefaction

technologies.

Basic Fluidized-Bed Combustion

Flue Gas Desulfurization

Integrated Gasification Combined Cycle

I l l u s t r a t i o n s : U . S . D e p a r t m e n t o f E n e r g y,
C l e a n C o a l Te c h n o l o g y C o m p e n d i u m ,
w w w. l a n l . g o v / p r o j e c t s / c c t c

3

CLEAN COAL TECHNOLOGY
PROGRAM – HISTORY

Projects were selected and technology

d e m o n s t r a t i o n s c o n d u c t e d b e t w e e n

1986-93 — a jointly funded effort by

government and industry to demonstrate

and commercialize new, lower cost options

for controlling emissions of sulfur dioxide

(SO

2

), nitrogen oxides (NOx) at coal-

based power plants, as well as to improve

power plant performance and efficiencies.

The program resulted in 38 pioneering

projects in 18 states that eventually

produced 22 commercial successes

(defined by DOE as resulting in domestic

or international sale of the technology,

or the technology continuing to operate

economically at the plant site).

By law, private industry is required to fund

at least 50% of each project — the reality:

industry provided two-thirds of the funding

— $3.5 billion of a total of $5.3 billion.

Private Indu

Government

4%

$3.5 billion

$1.8 billion

Funding of Original Clean Coal Technology Program

source: U.S. Department of Energy, Office of Fossil Energy, http://www.fe.doe.gov

4

CLEAN COAL SCORECARD

Project

Company

Location

Gas Suspension Absorption

AirPol

W. Paducah, KY

Confined Zone Dispersion

Bechtel

Seward, PA

LIFAC Sorbent Injection

LIFAC

Richmond, IN

Adv. Flue Gas Desulfurization

Pure Air

Chesterton, IN

CT-121 Flue Gas Scrubber

So. Co. Services

Newnan, GA

NOx Control - Wall-Fired

So. Co. Services

Coosa, GA

Coal Reburning

B&W Co.

Cassville, WI

Low-NOx Cell Burner

B&W Co.

Aberdeen, OH

Gas Reburning/Low-NOx Burn.

EERC

Denver, CO

Micronized Coal Reburning

NYSEG

Lansing, NY

Selective Catalytic Reduction

So. Co. Services

Pensacola, FL

NOx Control - T-Fired

So. Co. Services

Lynn Haven, FL

SNOX Flue Gas Cleaning

ABB

Niles, OH

LIMB SO

2

/NOx Control

B&W Co.

Lorain, OH

SOx-NOx-ROx Box

B&W Co.

Dilles Bottom, OH

Gas Reburning/Sorbent Inj.

EERC

Two sites - IL

Milliken Clean Coal Project

NYSEG

Lansing, NY

Dry NOx/SOx Control Sys.

Pub. Service CO

Denver, CO

McIntosh PFBC Project (4A)

City of Lakeland

Lakeland, FL

McIntosh PFBC Project (4B)

City of Lakeland

Lakeland, FL

JEA Fluidized Bed Project

JEA

Jacksonville, FL

Tidd PFBC Project

Ohio Power Co.

Brilliant, OH

Nucla CFB Project

Tri-State

Nucla, CO

Kentucky Pioneer Project

Kentucky Pioneer

Trapp, KY

Pinon Pine Power Project

Sierra Pacific

Reno, NV

Tampa Electric IGCC Project

Tampa Electric

Mulberry, FL

Wabash River Repowering

Dynegy/PSI

W. Terre Haute, IN

Clean Coal Diesel

AD Little

Fairbanks, AK

Healy Clean Coal Project

AIDEA

Healy, AK

Liquid Phase Methanol

Air Products

Kingsport, TN

Adv. Coal Conversion

Western Syncoal

Colstrip, MT

Coal Quality Expert

CQ Inc. & ABB

Multiple Sites

ENCOAL Mild Gasification

ENCOAL Corp.

Gilette, WY

Integrated Coal/Ore Reduction

CPICOR

Vineyard, UT

Pulse Combustor

MTCI

Baltimore, MD

Blast Furnace Injection Sys.

Bethlehem Steel

Burns Harbor, IN

Cyclone Combustor

Coal Tech Corp.

Williamsport, PA

Cement Kiln Scrubber

Passamaquoddy

Thomaston, ME

Commercial Successes to Date

(Domestic or international sales made, or technology
continues to operate commercially at plant site)

1986-93 Clean Coal Technology
Project Selections

38 Projects – 18 States
$1.8 Billion – Federal Government
$3.5 Billion – Private Industry/States
$5.3 Billion – Total Cost

for more information, visit www.lanl.gov/projects/cctc/factsheets/fs_loc.html

5

MAJOR TECHNOLOGICAL
BENEFITS OF CCTP

Technology

Impact

Low Nitrogen Oxide (NOx)
Burners

• Now on 75 percent of U.S. coal-based power plants.

• 1/2-to-1/10th the cost of older systems.

• Helped utilities comply with more stringent January 2000 Clean Air Act NOx emission

requirements.

• Between 1980-2000, NOx emissions from coal power plants declined 56 percent,

measured by pounds of emissions per kilowatt hour — low NOx burners have played an
increasing role in this success story.

Selective Catalytic Reduction
(SCR)

• Achieves NOx reductions of 80-to-90 percent or more.

• Technology today costs half what it did in the 1980s.

• Systems are on order or under construction on 30 percent of the existing U.S. coal-

fired generating capacity.

Flue Gas Desulfurization (FGD)

• FGD systems now cost one-third what they did in the 1970s.

• More than 400 commercial units have been deployed.

• SO2 emissions from coal-based power plants declined 61 percent between 1980-2000

(based on lbs. of emissions per kWh) — while coal use by utilities rose 74 percent over
the same period. FGD systems have played an important role.

Fluidized Bed Combustion (FBC)

• Now over 170 operating FBC units in the U.S. and 400 worldwide.

• Commercialized — more than $6 billion in domestic sales and nearly $3 billion

in overseas sales have resulted from U.S. public and private investment in FBC
technology research, development and demonstration.

• Removes SO2, NOx inside the boiler — no additional controls necessary.

Integrated Gasification Combined
Cycle (IGCC)

• Over 1,500 megawatts of coal-based generation operating today; another 1,900

megawatts are gasifying refinery wastes; another 2,200 megawatts are in design.

• 16,500 MWw (megawatt equivalent) of IGCC is expected to be operating in the United

States by 2020.

source: U.S. Department of Energy, Office of Fossil Energy

for more information, visit www.fe.gov/coal_power/cct/

6

ENVIRONMENTAL BENEFITS
DURING THE CCTP ERA

Year

Coal Use for Electricity Generation

(Million Short Tons)

Coal NOx Emissions

(Pounds of Emissions per MWh)

Coal SO

2

Emissions

(Pounds of Emissions per MWh)

1980

569

10.54

27.67

1985

694

7.48

22.30

1990

781

7.09

19.13

1991

784

6.99

18.97

1992

795

6.88

18.29

1993

832

6.80

17.19

1994

838

6.66

16.93

1995

850

6.53

13.58

1996

897

6.24

13.64

1997

921

6.12

13.67

1998

937

5.80

13.31

1999

941

5.15

12.42

2000

986

4.61

10.78

2001

967

4.38

10.46

COAL

USE

UP

70%

COAL

NOx

EMITTED

DOWN

58%

COAL

SO

2

EMITTED

DOWN

62%

Note: Figures are rounded. Total emissions reductions are due to several factors, which include increased commercialization and deployment of clean coal technologies.
(Sources: Energy Information Administration, Environmental Protection Agency, National Air Quality and Emissions Trends Report, 2001.)

7

SO2 Emission Rate from

Electricity Generation (lbs/MWh)

NOx Emission Rate from

Electricity Generation (lbs/MWh)

CCT IS IMPORTANT,
NOW AND IN THE FUTURE

Electricity demand will increase 53.4 percent over the next 25 years.

Meeting this rising growth rate will require the construction of the equivalent of more than 1,200 new power
plants of 300 megawatts each — the equivalent of about 65 plants each year.

Coal will remain the largest single source of electricity — accounting for 51 percent of power generation in
2025.

(source: Table 8, Annual Energy Outlook 2003)

Clean coal technologies will help meet these needs, plus continue the decline in SO

2

and NOx emissions

already underway.

EQUALLY IMPORTANT …

CCT will help utilities
comply with more stringent
environmental standards
and help address climate
change concerns in the
years ahead.

10.5

6.6

4.4

3.0

2001

2025p

2001

2025p

p = projection. These data include emissions from coal and other fuel sources. Estimates
assume no changes to current Clean Air Act requirements. Source: Annual Energy Outlook
2003, Reference Case, Energy Information Administration.

The recently announced FutureGen project takes Clean Coal further. FutureGen, a plant to produce
hydrogen from coal and sequester emissions, will be the world’s first zero emission coal-fired plant.

8

Develop a zero emission coal

based hydrogren production facility

incorporating carbon sequestration.

FUTURE CCT FOCUS AREAS

Meet increasingly stringent environmental

challenges and expectations that were

not part of the original CCT program

— especially in the areas of mercury

control and carbon sequestration — while

continuing reductions in SO2 and NOx.

How much coal does the U.S. have?

U.S. recoverable coal reserves are 274 billion tons (according to U.S. EIA),
enough to last 280 years at present rates of use

Did you know…

Coal represents 95 percent of U.S. fossil fuel reserves?

Nine out of every 10 tons of coal is used to make electricity?

The energy contained in 2001 U.S. coal production exceeded the
combined energy of U.S. oil imports and domestic oil production?

Provide continually improving

efficiencies, cost benefits and

processes that take advantage of

coal’s diversity as a liquid, gas or

solid energy resource.

Allow the continued use of plentiful

domestic coal resources to meet

growing electricity demand.

9

Ozone

By May 2004,

EPA regulations to

reduce the regional

transport of ozone

will require utilities

in 20 Eastern states

and the District

of Columbia to

sharply reduce NOx

emissions below

levels specified in

the 1990 Clean Air

Act Amendments.

Enforcement

In November 1999,

EPA filed lawsuits

against seven

utilities and issued an

administrative order

against an eighth,

charging violation of

New Source Review

(NSR) requirements.

All the civil actions

seek retrofit of state-

of-the-art control

technologies on more

than 10 percent of

total U.S. coal-based

capacity.

Mercury

EPA will promulgate

new mercury control

regulations for

coal-based power

plants by December

2004. Currently, the

removal of mercury

from commercial

technology varies

by coal type and

is highly variably

within each type,

making compliance

problematic with

regulatory options

under consideration.

Clear Skies Act

Proposal would

reduce and cap NOx,

SO

2

and mercury

emissions from

power generators

at 70% below 1990

Clean Air Act levels

by 2018. Specific

technologies will need

to be developed and

commercialized to

achieve reductions

of multiple emissions

and pollutants.

Particulate Matter

Promulgated in

1997, revised

National Ambient

Air Quality

Standards (NAAQS)

are intended to

reduce the levels of

airborne particulate

matter — including

fine particles,

requiring further

reductions in these

emissions.

FUTURE CHALLENGES —
TECHNOLOGY CAN PROVIDE SOLUTIONS

The bottom line: Clean Coal Technology development will be more essential
than ever in meeting new long-term Clean Air Act requirements while
providing cost savings to the American consumer.

10

Development

and demonstration of

a zero emission coal based power plant

through the “Integrated Squestration

and Hydrogen Research Initiative,” the

FutureGen project.

Sequestration — CO2

capture and storage.

Currently, only “carbon

sinks” (forests, oceans,

etc.) have been shown to

be effective.

Mineralization

(injecting CO2 into

rocks, which absorb it)

and reuse.

Development and

demonstration of

combustion plant and

gasification plant

separation.

Improvements in

power plant operating

efficiencies.

CLIMATE CHANGE: CARBON DIOXIDE
MITIGATION & MANAGEMENT

It is important to address climate change

with technology, while preserving

economic growth. Possible options

include:

11

Improved operating efficiencies of new
power generation technologies from the
Clean Coal Technology program are 30-to-
40% higher than a conventional coal plant —
this translates to a nearly equal percentage
reduction in carbon dioxide emissions.

(source: U.S. Department of Energy)

MORE EFFICIENT POWER PLANTS
HELP REDUCE CO

2

EMISSIONS

Increased power generating

efficiencies, in effect, mean

generating more megawatts

of electricity from the same

amount of fuel. The result

is lower power costs and

reductions in greenhouse

gas emissions.

11

12

CLEAN COAL TECHNOLOGY NEEDS
CONTINUED FEDERAL SUPPORT

To continue the research

momentum generated

by the original CCTP,

which provided numerous

technological innovations

currently benefitting society.

To assure continued

research, development and

demonstration of a new

generation of advanced

technologies that are

promising, but too high-risk to

be financed solely by private

industry.

To allow America to take full

advantage of its vast, 280-

year supply of coal resources

to meet burgeoning

electricity demand and

encourage economic growth,

while meeting more stringent

environmental objectives.

13

Efficiency improvements at existing power plants.

New computerized controls, improved burner designs, better

emissions cleaning systems, higher performance turbines.

Advanced high efficiency combustion and gasification cycles.

Generating systems with increased operating temperature.

High efficiency fuel cells operating on synthetic gas.

Hydrogen production — a clean energy carrier — via gasification.

Prevention, reduction and then capture and/or storage of CO

2

(sequestration).

Reduction of mercury emissions to required levels.

FOCUS AREAS FOR NEW
TECHNOLOGY R&D

DOE/NREL

14

MOVING FORWARD

Emphasis on coal utilization technology development
must continue over the next decade.

Funding needs

$2 billion

each from

government (as
contained in the
“Clean Coal Power
Initiative”) and
industry.

$1 billion

for

the industry/
government
FutureGen
project.

15

“Clean Coal Power Initiative (CCPI)” proposed by President Bush: $2 billion
for CCT over 10 years

Both Senate and House included CCPI in bills passed in 107th Congress
as well as investment and production tax incentives for advanced clean
coal technologies – bills did not get out of conference.

CCPI and CCT incentive package still has strong bi-partisan support.
Both will be included in stand-alone bills as well as in comprehensive
energy legislation in the 108th Congress.

Fiscal year 2002 budget for DOE included $150 million for CCT research.
This was combined with FY 2003 funding of $150 million for a combined
$300 million CCT solicitation.

On January 15, 2003, eight projects were awarded a total of $317 million dollars
for CCPI’s first phase. Industry will contribute over $1 billion – well beyond the
50 percent cost share requirement. Projects focus on reductions in mercury,
SO

2

and NOx; on increasing efficiency and reducing GHG emissions; and on

using coal waste.

A $130 million budget request has been made for FY 2004.

POSITIVE INITIATIVES
NEED SUPPORT

for more

information, visit

www.nma.org

Support for the the Department of Energy’s FutureGen, a $1 billion venture to
build a prototype of the fossil fuel plant of the future that will combine coal-
based electricity with hydrogen production in a zero emission process.