Global CCS Institute - Day 1 - Panel 1 - International Progress on CCS Projects
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Global CCS Institute - Day 1 - Panel 1 - International Progress on CCS Projects

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Laura Miller - Summit Power

Laura Miller - Summit Power

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Global CCS Institute - Day 1 - Panel 1 - International Progress on CCS Projects Global CCS Institute - Day 1 - Panel 1 - International Progress on CCS Projects Presentation Transcript

  • PANEL 1INTERNATIONAL PROGRESS ON CCS PROJECTSLen Heckel – Shell QuestLaura Miller – Summit PowerHans Schoenmakers – ROAD
  • Texas Clean Energy Project A 400MW Power/Polygen Project With 90 percent carbon capture Global CCS Institute International Members’ Meeting: Calgary 2012 October 10, 2012SUMMIT POWER
  • Summit Power• Summit Power Group is a Seattle-based developer of clean energy projects• Founded 21 years ago by former U.S. Secretary of Energy Don Hodel & COOof Department of Energy Earl Gjelde Projects Completed ,• Summit’s projects: Under Construction, or – Over 7,000 MW completed Approved by PUCs – Over 2,000 MW in development• Summit’s principal project types: – Wind power – Solar power – Natural gas-fired power plants – Carbon capture projectsSUMMIT POWER 3
  • Texas Clean Energy Project (TCEP): High Hydrogen Power Turbine A 400 MW “polygen” IGCC plant 195 MW low carbon power delivered to City of San AntonioWyoming Coal via 2/3 of (30% of Railroad Syngas revenues)* Coal Gasification and Coal Gas Cleanup 2mm tpy Ammonia/Urea Complex 1/3 of Syngas 500,000+ tons/yr delivered to Fertilizer 1/6 of Company (45%Non-drinkable Water CO2 of revenues)* Steam CO2 Delivered to Oil Fields via Pipeline Coal and Steam Input, Main Outputs are 5/6 of Syngas (Hydrogen CO2 2.5mm tons per and Carbon Monoxide) year delivered and Pure CO2 to Oil Companies (20% of revenues)* * Remaining 5% of revenue from byproduct sales 4
  • Five Siemens gasifiers ofTCEP-type on line in China
  • The Siemens gasifier
  • TCEP financing readiness & shovel-readiness• All key permitting is now complete: – Record of Decision from US DOE on 9/29/11 (completes NEPA/EIS process) – Air permit issued 12/28/10 (no opposition/request for hearing)• Off-take agreements are now complete & signed: – 100% of power sold to CPS Energy for 25 years (contract signed in December) – 100% of CO2 sold for 30 years (three different buyers; market remains strong) – 100% of urea sold for 15 years (buyer is a huge fertilizer/chemical company)• EPC & O/M contracts signed as of 12/23/2011: – Siemens (power) + Linde & SK E&C (chemical) are the EPC contractors – Lump-sum, fixed-price, turnkey EPC contracts (power block + chemical block) – Siemens + Linde JV warrant availability & performance under 15 year contract• IRR range attractive for equity investors, and RBS-led bank lender groupexpects to be able to provide & obtain the project debt
  • Where is the Project?
  • Site Location andInfrastructure
  • The 600-acre site(after a rain)
  • Site Configuration N AV20100391 11
  • Four necessary acknowledgments1. We haven’t succeeded yet – we must still finance TCEP successfully – Development tasks are completed; financing is the key remaining task2. Good fortune accounts for some key TCEP advantages – Example: size “mismatch” between Siemens gasifiers & high-H2 combustion turbine created extra syngas; this compelled polygen & led to urea production3. TCEP could not be built without US DOE financial support – Although designed to be project financed, TCEP is still a first-of-a-kind plant – DOE’s $450 million significantly reduces the net cost to be project financed – Yet TCEP is also a “reference plant” we believe can be replicated elsewhere4. Support from national environmental groups has been essential – NRDC, EDF, CATF have supported from the outset – This has been immensely valuable in terms of process, not just politics
  • Environmental support: What accounts for it?• Summit went to Texas at request of environmental groups• Key motivation: 90+ percent CO2 capture with sequestration – Resulting CO2 emissions will be world’s lowest from fossil fuel• Power block will be air-cooled, not water-cooled• Water for gasifiers & urea will be from on-site desalinization• TCEP itself will be a zero liquid discharge (ZLD) facility• Lowest permit limits for SOx, NOx, particulates & mercury• As a result, air permit was obtained in eight months; no onerequested a hearing on air permit (or any other permit)• Commitment to independent Carbon Management AdvisoryBoard of scientists & NGO representatives also important
  • Benefits (TCEP) from not burning coal: negligible SOx, NOx, PM 14
  • Benefits (TCEP) from not burning coal: negligible Mercury (Hg) 15
  • Benefits (TCEP) from not burning coal: world’s lowest CO2 16
  • Context for formingSummit Carbon Capture• It is important to commercialize CO2 capture at large scale• Capturing large volumes of CO2 at a power plant is feasible• Problem is where to put the CO2 – and how to pay for its capture• Waxman-Markey bill promised $90/120 per ton – but didn’t pass• Today, U.S. (basically) doesn’t pay for CO2 capture & sequestration• So today, EOR is the sole source for substantial CCS revenues (algae farms need CO2 but consume relatively little) - NEORI• Moreover, building long new CO2 pipelines eats up the revenue• So “Stage 1” of large-scale CCS involves (1) locating capture plants where EOR infrastructure exists, and (2) dealing with oil producers• Oil producers prefer natural (geological) CO2 for several reasons TCEP provides lessons in how to compete with natural CO2 SUMMIT POWER•• Major national environmental organizations support CO2 /EOR 17
  • CO2/EOR = CCS + a bridge • CO2/EOR has safe, reliable, high-volume history since 1972 – Especially in Permian Basin, this is not an experiment with more than 3,000 miles of dedicated pipelines • CO2/EOR with MVA can be highly reliable form of CCS – CO2 can remain sequestered for more than 1,000 yrs (the TX standard) 18
  • Job Creation• TCEP will create: – 1,500 to 2,000 construction jobs (groundbreaking 2012) – 200 full-time plant jobs (management, administration, operators, maintenance est.) when plant opens 2015-2016 – 200 additional skilled personnel during major maintenance periods every 3 years – 8,000 ancillary jobs created by TCEP vendors (manufacturing, engineering, permitting, administrative, shipping, purchasing, R&D positions) 19
  • Local Financial Support• Local financial incentives include: – $5 million jobs grant from Odessa Development Corporation (approved 1/25/10) – Donation of 600-acre site in Penwell by ODC (3/31/10) – 100 percent tax abatement for 10 years beginning 2013 • Ector County (approved 5/23/11) • Odessa Junior College District (approved 6/23/11) • Ector County Hospital District (approved 7/12/11) • Ector County ISD (per Texas Tax Code, Chapter 313.025; approved 12-13-11)SUMMIT POWER
  • Contact informationSummit Power Group, LLC: www.summitpower.comTexas Clean Energy Project: www.texascleanenergyproject.comLaura MillerDirector of Projects, TexasSummit Power GroupDallas, Texaslmiller@summitpower.com SUMMIT POWER 21