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CLP Technology Roadmap   2
Contents                                                                                                                  ...
The Technology Roadmap points to a future where electricity                                                               ...
CLP Technology                                                                                                            ...
RenewableEnergy                                                                                                           ...
Wind Power                                                      Solar Energy                                              ...
Geothermal                                                                                                                ...
Nuclear–Generation III                                                                                                    ...
Combined Cycle                                                                                                            ...
Advanced                                                                                                                  ...
Carbon Capture                                                                                                            ...
Energy                                                                                                                    ...
Electric Storage                                                                   Fuel Cells                             ...
CLP Technology Roadmap 2010
CLP Technology Roadmap 2010
CLP Technology Roadmap 2010
CLP Technology Roadmap 2010
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CLP Technology Roadmap 2010


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The Technology Roadmap points to a future where electricity will be generated and used in a more sustainable way – avoiding the risk of catastrophic climate change, making better use of the earth’s resources and supporting an improving quality of life.

About CLP

CLP is one of the largest investor-owned power businesses in Asia. In Hong Kong, we operate a vertically integrated electricity generating, transmission and distribution business serving 80% of Hong Kong’s population.

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CLP Technology Roadmap 2010

  1. 1. CLP Technology Roadmap 2
  2. 2. Contents CEO Message 2 CLP Technology Roadmap 4 Renewable Energy 6 Nuclear 12 Natural Gas 14 Advanced Coal 16 Carbon Capture and Storage 18 About CLP Energy Efficiency 20 CLP is one of the largest investor-owned power businesses in Asia. Low-Carbon Technology & CLP 24 In Hong Kong, we operate a vertically integrated electricity generating, transmission and distribution business serving 80% of Hong Kong’s population. We also have interests in the power sector throughout the Asia-Pacific The Way Forward 26 region. We are one of the largest external investors in the electricity industries in the Chinese Mainland, Australia,3 India, Southeast Asia and Taiwan. CLP Technology Roadmap Glossary & Other Related Publications 28 CLP Technology Roadmap 4
  3. 3. The Technology Roadmap points to a future where electricity will be generated and used in a more sustainable way – avoiding the risk of catastrophic climate change, making better use of the earth’s resources and supporting an improving quality of life.CEO MessageCLP is among the first electricity companies in the world to respond to the threat ofglobal climate change by setting long-term targets for deep reductions in the carbonintensity of our entire portfolio.In November 2008, I introduced CLP’s first Technology Roadmap, explaining our views on the technologies that we intend to use to and hydro-electric generation, we have made use of well-proven and widely applied technologies. In other areas, such as nuclearmove our portfolio away from predominantly fossil-fuel power generation towards low-carbon electricity supply. power and combined cycle gas-fired generation, CLP has been amongst the earliest adopters of the technology in Asia. Others still, such as carbon capture and storage are not yet developed, proven and cost-effective to an extent that permits their commercialTwo years on, our commitment to reducing the carbon footprint of our business remains unchanged. In line with our Climate Vision application.2050, we have started to reduce the carbon emissions intensity of our generating fleet. Renewable energy sources now representover 15% of our total generating capacity, compared to only 1.3% as recently as 2005. This latest update of the CLP Technology Roadmap, as the name indicates, is a guide to the experience we have already gained along our low-carbon journey and to the road which lies ahead. A number of points stand out on the landscape. Mature renewable energyThe start of our journey to a low-carbon energy future reflects the availability of technologies to replace the conventional coal-fired sources such as wind and hydro-electric now enjoy widespread application. Amongst “newer” renewables, solar is moving towardspower plant of earlier years. We have already adopted technologies such as supercritical coal-fired plants, wind turbines and solar commercial availability whereas the exploitation of other renewable sources such as tidal, wave and geothermal remainspanels to increase our electricity output, without a corresponding rise in carbon and other emissions. In areas such as wind turbines challenging. Amongst baseload generation technologies, coal remains dominant in Asia, but with a trend towards more efficient larger units employing supercritical and ultra-supercritical technologies. Gas and nuclear are playing an increasing role and may serve as bridging technologies to provide large-scale power generation until carbon capture and storage, or some other clean fossil-CLP’s Climate Vision 2050 Targets fuel generation technology, comes on stream beyond this current decade. This revised Technology Roadmap places greater emphasis on the manner in which we consume electricity, rather than merely how it is produced. From utility efficiency, such as smart grid and high voltage direct current (HVDC) transmission through to end-use efficiency, including fuel cells and electric vehicles, we describe how new technologies are becoming available to enable major advances in the use of electricity, without adverse impact on our social and economic well-being. 0.6 kg CO2 /kWh The Technology Roadmap points to a future where electricity will be generated and used in a more sustainable way – avoiding the and risk of catastrophic climate change, making better use of the earth’s resources and supporting an improving quality of life. With the 30% non-carbon- 0.2 kg CO2 /kWh continuing backing of our stakeholders and the right policy support, CLP will play a full part in the deployment of clean technology emitting generating and the efficient use of energy – in the interests of a sustainable business and the sustainable development of the societies we serve. capacity 0.8 kg CO2 /kWh 0.45 kg CO2 /kWh Andrew Brandler Chief Executive Officer December 20102 CLP Technology Roadmap CLP Technology Roadmap 3
  4. 4. CLP Technology CLP is transforming our portfolio through low-carbon technologiesRoadmap presented in the Roadmap to achieve the aggressive emissions intensity reduction targets set out in our Climate Vision 2050.The CLP Technology Roadmap presents the key low-carbon technologies – bothexisting and new – that we will use to transform our portfolio to a low-carbon supplyand meet the targets set out in CLP’s Climate Vision 2050.In 2008, CLP published the inaugural version of this Technology Roadmap in support of our Climate Vision 2050 announced a year In developing this Technology Roadmap, CLP has drawn upon authoritative information sources and knowledge bases includingearlier. With rapid developments in technology and a set of revised targets set for 2020, this new version provides an update of key the International Energy Agency, Energy Information Administration (part of the United States Department of Energy), Worldtechnologies that we will continue to explore and incorporate in order to de-carbonize our generation portfolio. Energy Council, International Atomic Energy Agency, Bloomberg New Energy Finance and the international consultancy Navigant Consulting.Low-carbon technologies inevitably demand a higher cost and new knowledge be acquired to enable us to select the mostappropriate combinations and pace of implementation. The technologies covered in this roadmap range from commercially Although some technologies are mature and many are emerging rapidly, large-scale uptake must coincide with appropriatecompetitive nuclear power and combined cycle gas plants, to proven hydro, wind and the rapidly emerging solar power that government policies that can provide clear targets and sustainable incentives for businesses. As we search for opportunities tonevertheless still require sustainable policy support to level the playing field, to large-scale demonstration projects, such as smart apply these technologies in different business environments, we will continue to engage and work with various stakeholders togrid, electric vehicles, and late stage developments such as hot dry rock geothermal and gasification technologies. establish the most suitable approach and business model to fit different needs.In this roadmap, we will explain how different low-carbon technologies work, their stage of development, cost status and marketpotential. We will also present in the inserts what CLP has accomplished in terms of incorporating these technologies into ourassets. Our portfolio now includes wind, hydro, solar, nuclear, advanced coal, biomass and different efficiency related low-carbontechnologies. Emissions Intensity and Levelised Cost of Power Generation Technologies Electricity generated by low-carbon technologies, which have low or zero CO2 emissions intensity, usually have higher levelised cost than electricity from conventional generation. Levelisied Cost of Electricity (USD / MWh) Emission Intensity (tonnes of CO2 / MWh) *Notes: IGCC = Integrated Gasification Combined Cycle NGCC = Natural Gas Combined Cycle CCS = Carbon Capture and Storage Source: IEA World Energy Outlook 2010, Navigant Consulting 2010, Bloomberg New Energy Finance 20104 CLP Technology Roadmap CLP Technology Roadmap 5
  5. 5. RenewableEnergy Market: In 2009, according to the IEA, renewable energy contributed to about 20% of the world’s annual electricity power generation, of which 16% was hydropower. By 2050, Deployment: Hydropower will continue to be the largest renewable energy source, though its market share may slowly decline over time as fewer resources remain renewables will likely reach 22-48%. untapped and licensing and permitting issues continue toRenewable energy is derived from natural energy resources such as wind, sunlight, hinder large-scale development. Wind and solar energy,underground heat, biomass, and the flow of rivers and seas. Renewable energy though accounting for a small share today, are beginningtechnologies include wind turbines, flat plate solar photovoltaics (PV), concentrating What is the outlook? to gain in market share. Deployment of non-hydro Performance: Hydropower, biomass and conventional renewables continue to be driven largely by governmentPV (CPV), concentrating solar thermal power (CSP), biomass direct combustion, hydro policies such as feed-in tariffs, mandatory renewable geothermal power are technologically mature. Theirturbines and geothermal systems. improvements in cost and performance are likely to be portfolio standards, tax concessions, cash grants, financing incremental. Solar and wind, on the other hand, typically options made available by local governments and have lower capacity factors as a result of the intermittent production incentives.How does it help the climate? nature of the resource, e.g. the sun does not always shine and the wind does not always blow. The level of integrationRenewable energy technologies generate power with no net applications, now boasts contracted projects in the hundreds of these intermittent renewables will thus be systemcarbon emissions (no greenhouse gas emissions or carbon of megawatts as well. Concentrated PV technologies are dependent. Energy storage and smart grid technologies,neutral). Using renewable energy instead of fossil fuels avoids in demonstration stage. Other technologies such as wave however are being developed to help alleviate theemissions that would otherwise be produced to meet the power and ocean thermal energy conversion and hot dry rock intermittency issue but their costs will remain high in thesame electricity needs. geothermal technologies are in development stage. short term. Cost: Large-scale renewable energy generally costs moreWhat is the status? than conventional fossil-fuel power. Hydropower, landfill gas, biomass co-firing, and onshore wind power are commerciallyTechnology: Hydropower, biomass combustion, wind viable in places where there are exceptionally good naturalturbines, flat plate solar PV and CSP systems are commercially resources or government policies to promote their use. Inavailable, but other renewable energy technologies are in recent years, the cost of PV has declined steadily at a ratevarious stages of development. The technologies also vary approximately 4-7% per year due to manufacturing economieswidely in their application size. Hydropower facilities can be of scale and technology efficiency and performanceseveral hundred megawatts (MW, 106 watts) in size. Flat plate PV, once used mostly for residential and commercial6 CLP Technology Roadmap CLP Technology Roadmap 7
  6. 6. Wind Power Solar Energy Function Function To convert wind resources To convert sunlight into electricity using into mechanical energy to either photovoltaic or concentrated solar generate electricity thermal methodsEconomics EconomicsOnshore wind power can be competitive with conventional Although flat plate photovoltaic (PV) is still more expensive CSP uses a parabolic trough / dish collector, heliostat mirrorpower options if there are strong and consistent wind than most other renewable energy technologies, the price of or Fresnel reflector to concentrate solar energy on a thermalresources. Policy mechanisms such as feed-in tariffs have solar electricity from PV facilities has seen a steady decline receiver to heat a working fluid such as synthetic oil orpromoted significant investment in wind power and have had in recent years. In the short term, the economics of PV will molten salt to temperatures as high as 1,000°C. The steamthe result of driving down the costs and increasing the size remain heavily dependent on the availability of myriad is then generated through heat exchange, or the workingof wind turbines, and nurturing an effective supply chain to government incentives. For concentrated solar thermal power fluid directly drives a steam turbine or a Stirling engine forsupport large-scale deployment of wind energy. Offshore wind, (CSP), parabolic trough currently has the best economics electricity generation.which to date has mostly been deployed in Europe, is more among different CSP technologies but its development isexpensive to build and operate than onshore wind, but has Main components of a wind turbine limited to regions with plenty of direct sunlight. Concentrated CPV uses mirrors or lenses to focus sunlight on high-efficiencygood potential in the future owing to its higher capacity factor. PV (CPV) is still in demonstration phase. PV solar cells. The concentrated sunlight makes it worth the and variable rotational speeds to maximise energy output; usage of more expensive, efficient and higher complexity improvements in the gearing and power electronics to raise PV cells, such as multi-junction cells using three differentMarket Potential efficiency and increasing the hub height to higher wind speeds. Market Potential material compositions, with conversion efficiencies oftenWind power generation is undergoing rapid growth, driven The market for PV is poised for significant growth over the twice as high as the efficiencies of conventional solar panels.largely by policy support. In China and India, wind power The energy output of a wind turbine is proportional to the next five years as total installed system costs continue tois expected to continue to grow substantially as electricity swept area of the blades. Doubling the length of the blade decline at about 4-7% per year and more utility companiesdemand increases and local manufacturing capability increases the swept area by a factor of four. The dependency and consumers accept the technology as a viable powerincreases. However, some developments may be limited by on wind speed is even stronger – doubling the wind speed option. In addition, PV systems can be widely deployed intransmission constraints and/or local requirements (e.g. wildlife increases the output by a factor of eight. In addition, remote areas with both direct and diffuse sunlight. Development ofor aviation considerations). Wind energy supplied about 1.5% of sensing technologies (e.g. satellite imaging) and sophisticated CSP and CPV is however limited to regions with strong solarglobal electricity production in 2009 but could supply up to 12% computer simulation models (e.g. computational fluid dynamic) resources, i.e. with plenty of direct sunlight. Despite majorby 2050. have also enabled better wind resource assessments, forecasts CSP announcements that have been made around the world, and wind farm designs. project finance, cost uncertainty, and access to transmission may still be the major hurdles for CSP.How It WorksWind turbines transform the horizontal motion of air intorotational torque which drives a generator to produce How It Workselectricity. Different turbine designs have been used, including PV converts incident solar radiation into electricity. PV cellsvertical or horizontal axis machines, and single to multiple made of either crystalline silicon or thin film materials areblades. The most common wind turbines use three blades assembled into modules and panels. Panels can be mountedaround a horizontal axis. The nacelle, which houses the on a roof or the ground. An inverter box to convert DC powergenerator, turns so that the turbine will always face into the from the PV panels to AC power to the load/grid completes themaximum wind direction. Advances in wind and aeronautic system. Other balance-of-system items such as the optionaltechnologies have led to high-tech composite blade materials tracking devices could increase efficiency and power increase endurance and reduce weight; variable pitch blades8 CLP Technology Roadmap CLP Technology Roadmap 9
  7. 7. Geothermal Marine Energy Function To harness energy from the ocean to Function generate electricity To convert the earth’s underground heat to generate electricityEconomics EconomicsAt good resource sites, conventional geothermal technology to watch since it can tap deeper into geothermal Current costs of marine energy technologies are higher Wave energy devices harness the potential energy created(hydrothermal) can be commercially viable. Moreover, the resources worldwide. than that of other renewables because most marine energy from the up and down motion of waves. This potential energygeothermal energy from the earth is generally constant thus technologies are still in early-stages of development. can be converted into power through mechanical means suchmaking the output of such a plant well suited for baseload Although tidal barrage is a mature technology, it has only as pistons and hydraulic pumps.applications. How It Works been deployed in a few places around the world. Current Conventional geothermal systems draw naturally occurring development is mainly supported by government incentives Ocean thermal energy conversion (OTEC) devices make use of hot water or steam from wells which are drilled into an in places with good marine energy resources. the temperature difference between warm surface water andMarket Potential underground reservoir of porous or fractured rock. There are cold deep ocean water. Warm surface water can be used toCurrently, there are roughly 11 gigawatts (GW, 109 watts) of three major types of geothermal power cycle currently in use, vaporise a fluid to drive a turbine to generate electricity. Thehydrothermal installed capacity in 24 countries, which is 20% namely flash steam, dry steam and binary cycles. Of these, the Market Potential cold water from the deep ocean is then used to condense thehigher than in 2005. While flash steam and dry steam plants flash steam cycle is the most commonly used. fluid for reuse. Salinity gradient technologies capture energy Although there are abundant resource potentials globally,are more mature than binary cycles, some industry experts as water flows due to osmotic pressure across the boundary considerable efforts are still needed to map out commerciallyare pointing to enhanced geothermal systems (EGS) as a key between freshwater and saltwater. The most promising EGS also known as hot dry rock, enable the utilisation of viable sites with detailed marine resources, landscape and methods use semi-permeable membranes between the geothermal heat at depths of 4,000 metres or more. In a operating environment to support deployment of marine freshwater and saltwater. system of parallel wells, water from the surface is forced into a energy technologies. Currently, the reliability and survivability well and enters the fractured rock. Through the fissures, water of marine devices in the harsh sea environment remain a is heated and then extracted at a much higher temperature challenge on large-scale deployment. Uncertainties on the from another well. The acquired heat content is then extracted ecological impact of large-scale deployment could also be a to drive a turbine to generate electricity. show stopper in some cases. How It Works Marine technologies can take advantage of the potential, kinetic, and thermal energy available in the ocean to generate electricity. Tidal barrage systems make use of the water height difference between high and low tides. A dam or barrage structure is constructed across a tidal bay or estuary to collect water during high tide. Then during low tide the water is released through turbines to generate electricity. Marine current devices capture the kinetic energy from natural ocean currents. The movement of ocean currents can power mechanically-driven devices to generate electricity.Enhanced geothermal system (hot dry rock geothermal)10 CLP Technology Roadmap CLP Technology Roadmap 11
  8. 8. Nuclear–Generation III FunctionNuclear To generate electricity using heat produced by nuclear fission reaction with the inclusion of passive safety control features Nuclear power is generated from uranium through controlled nuclear fission reaction. The heat produced from the fission reaction is used to generate electricity.How does it help the climate? Economics Nuclear power can produce a large quantity of electricity with virtually no greenhouse gas emissions. For developed What is the outlook? Nuclear power can be cost-competitive with fossil-fuel generation. Because operation and fuel costs are at the low Generation III reactors are an evolution of Generation II reactors, involving upgrades in fuel and thermal efficiency, countries, nuclear power offers a bridging option towards a Performance: Most of the operational reactors around end of the cost spectrum of generation technologies, nuclear safety, operational flexibility, and reactor life. Several designs low-carbon generation portfolio. For developing countries, the world are of Generation II technologies and the major plants are most suitable as baseload power suppliers. The cost with Generation III technologies are available in the market, nuclear power offers a proven low-carbon solution to meet technology suppliers include the US, France, Japan, Canada of electricity from Generation III plants is expected to fall in such as European Pressurised Water Reactors, Advanced the rapid growth in demand for energy. and Russia. A number of Generation III reactors have been the same range as conventional fossil power, once the market Boiling Water Reactors, Advanced Heavy Water-Cooled operating in Japan. More of these units, aiming at optimising reaches large-scale production. Reactors etc. Some Generation III reactors incorporate passive safety, reliability and operational economics are under safety features which allow the reactors to shut down safelyWhat is the status? construction in China and in Europe, such as Westinghouse’s even if their emergency systems were to fail, by using natural Technology: Nuclear technologies may be grouped into AP1000 model and Areva’s European Pressurised Water Market Potential forces such as convection, gravity and the natural response Reactor. of materials to high temperatures to slow or stop the nuclear four generations. Generation I were prototype reactors which Many countries with existing nuclear power programs have are now obsolete. Generation II reactors are the most mature plans to build new power reactors beyond those now under fission reaction. and currently most common in operation. Evolutionary Deployment: The potential for global growth in construction. The installed capacity is expected to be between nuclear power is significant, due to the increasing demand improvements have led to Generation III reactors with 511 GW and 807 GW in 2030. for affordable and reliable low emission generation. In improved safety features. They are currently in commercial many respects, the deployment of nuclear technologies is development and deployment. Generation IV designs, with some under trial, are currently under active research and dependent on the institutional governing structure that exists (or is being built) with respect to regulation, licensing, How It Works development. Nuclear fuel is formed as a uranium oxide into pellets and construction, technical capability and waste management. Such national institutions are necessarily the pre-requisite encased in long slender rods. Fission is initiated by neutron Cost: Compared to fossil-fuel generation, nuclear power for a country freshly embarked on nuclear deployment that bombardment, splitting the nuclei of individual uranium has higher capital costs, longer project development time atoms into different elements, and releasing more neutrons. requires international support and co-operation. Local and but lower operating costs. The higher capital costs are due The continuous cycle is called a chain reaction. In most political acceptance to siting nuclear power stations is also a to multiple factors such as sophisticated safety and back- reactors, water serves as both a moderator and a coolant. As factor that influences future deployment. up plant operating and control systems, and regulatory a moderator, water “slows down” the high energy neutrons requirements. Plant decommissioning and waste disposal are released during fission until they are at the right energy required as a safety and regulatory necessity and their costs level to be captured by another nucleus and trigger another are managed under the overall cost structure. fission reaction. As a coolant, water flows through the reactor, carrying with it the heat absorbed from nuclear processes Market: At the end of 2009, nuclear power contributes in the reactor. The heat is used to generate steam to drive a about 14% of the world’s annual electricity power generation. turbine-generator to produce electricity. There are 437 nuclear power reactors in operation worldwide, with a total capacity of 371 GW, and 56 new power reactors under construction in 14 countries. Of these, China alone has 20 units committed.12 CLP Technology Roadmap CLP Technology Roadmap 13
  9. 9. Combined Cycle Gas TurbineNatural Gas Function To generate electricity from a gas turbine and use the waste heat to make steam to generate additional electricity from a steam turbineNatural gas is a gaseous fossil fuelconsisting primarily of methane. It isthe cleanest fossil fuel used for powergeneration.How does it help the climate? EconomicsElectricity generation with natural gas produces about Natural gas prices vary internationally, but the cost of In between the two cycles, heat recovery steam generatorsone-third to one-half as much carbon dioxide (CO2) as coal electricity from a combined cycle gas turbine is generally capture the waste heat from the gas turbine exhaust andfor the same amount of electricity. Owing to the flexibility of higher compared to conventional coal power plants. Although produce steam to drive the steam cycle. The gas turbinegas turbines, it can also be a compliment to the intermittent the cost of a gas plant is less than that of a coal plant, typically produces about two thirds of the total output, withrenewable energy such as wind and solar when the resources the price of gas relative to coal generally outweighs this the remainder being generated by the steam cycle.suddenly die down or become unavailable. advantage. An open-cycle gas plant requires even less capital than combined cycle, but uses more gas for the same amount Integration of the two power cycles operating in different of electricity. For occasional peaking power, open-cycle may temperature ranges raises overall efficiency. New CCGT plantsWhat is the status? be cheaper, whereas for baseload with high utilisation hours, can have efficiency of 50% to 60%, relative to open-cycleTechnology: Open-cycle gas turbine plant efficiencies are have significantly reduced natural gas prices since their peak CCGT may be more cost effective. plants in the 30% to 45% range, and the best new coal plants inin the range of 30% to 40%. With advanced designs involving in 2008 and have the potential to lower international LNG the 40% to 50% range.recuperation and intercooling, the efficiency can achieve prices in the medium to long term. Natural gas is well suited to45% and higher. Combined cycle gas turbines (CCGT) are small CHP applications, where overall energy efficiency can be Market Potentialtechnologically mature with high overall energy conversion very high. CCGT transformed the US and some other markets in theefficiency, ranging from 35% to 55%. Advanced combined 1990s, displacing coal as the fuel of choice during a period ofcycle generators have potential to achieve efficiencies up to low gas prices. As gas prices have risen in recent years, coaland exceeding 60%. In applications where waste heat can be What is the outlook? has once again become the least cost option. Nevertheless,utilised, combined heat and power (CHP) can achieve up to Performance: Gas turbines are mature and commercially world gas generation capacity continues to grow due to its90% energy efficiency. competitive technologies. Natural gas combined cycle plants low capital cost and low carbon intensity. In addition, the are improving incrementally over time, and with recent operational flexibility of CCGT could also be used to supportCost: Natural gas plants benefit from lower capital costs advances can now achieve net efficiencies of over 60%. New intermittent renewable generation.and shorter construction times relative to conventional applications of CHP will drive greater end-use efficiencycoal. However, natural gas prices can be quite volatile, and and more distributed generation. Hybrids combining smallit is generally more expensive than coal but less expensive gas turbines and high temperature fuel cells are under How It Worksthan most renewables. Recent developments on shale gas development, with the aim of reaching even higher efficiency. A CCGT plant integrates two power generation cycles. Thetechnologies (e.g. horizontal drilling) will make it an attractive higher temperature cycle is driven by a gas turbine whereoption where resources are accessible. Deployment: Globally, natural gas power generation combustion takes place. The other cycle is driven by a steam could double by 2050. As the supply of natural gas diminishes turbine, which can be on the same axis as the gas turbine andMarket: Natural gas currently contributes to about 21% in areas of demand, there will be a growing need to transport drive the same generator.of the world’s annual electricity power generation. The natural gas over long-distances from regions with availabledevelopment of an international market for liquefied resources. In the long-term, world supplies of conventionalnatural gas (LNG) has brought additional gas within reach gas and petroleum will decline, increasing their costs, and theof more countries. Technological advancements have electricity sector will need to rely on other sources of energy.significantly increased the amount of shale gas available,particularly in the US. These discoveries, and lower demand,14 CLP Technology Roadmap CLP Technology Roadmap 15
  10. 10. Advanced Advanced CoalCoal Power Technology Advanced coal technologies include supercritical, ultra-supercritical (USC), Function To generate electricity from coal with higher efficiency integrated gasification combined cycle and lower emission technologies (IGCC) and further possible increases in steam temperatures and pressures in the future. These technologies may be combined with carbon capture and storage in the form of oxyfuel combustion, pre- or post-combustion capture to achieve substantial reductions in CO2 emissions. Economics Supercritical coal plants have higher capital cost than Integrated Gasification Combined Cycle: IGCC plants use conventional subcritical pulverised coal plants, but make up a gasifier to convert coal to syngas (a gas mixture mainlyHow does it help the climate? Market: Advanced coal technologies make up a small part of today’s generating capacity. Currently, subcritical coal the difference in energy savings. Their market share in new- consisting of hydrogen and carbon monoxide), which drives Increased efficiency of advanced coal technologies reduces build plants is rising rapidly. USC plants may follow a similar a combined cycle turbine. Once the syngas has been cleaned plants still represent the majority of operating coal-fired course. IGCC and oxyfuel costs are significantly higher than to remove impurities, including CO2 , the syngas fuels a gas the amount of coal consumed per unit of electricity generated plants, but the supercritical coal plants are being developed turbine to produce electricity. Waste heat is recovered to drive in comparison with conventional and subcritical coal conventional plants, and would only be competitive if CCS rapidly in new-build plants due to the high efficiencies. China a steam turbine, completing the combined cycle system. technologies. A lower consumption of coal reduces CO2 becomes available and necessary. is currently the major world market for the construction of emissions. new supercritical and ultra-supercritical power plants. Oxyfuel Combustion: Coal oxyfuel combustion burns the coal Market Potential in a mixture of re-circulated flue gas and oxygen, rather thanWhat is the status? What is the outlook? Of the advanced coal technologies, the most promising in air. The water is easily separated, producing a stream of CO2 ready for capture and storage. Technology: Supercritical technology is commercially Performance: Overall efficiency in coal power plants technologies for near term growth are supercritical and ultra- available and a proven technology. A number of countries supercritical technologies, particularly in China and India. has improved incrementally over the years, with each including the US, Russia, Japan, and the Chinese Mainland successive generation displacing its predecessors. Despite have deployed these units. Ultra-supercritical technologies have just entered the market in recent years, initially in these improvements, coal remains the most greenhouse gas intensive fuel in power generation. Given this, the potential How It Works the EU countries and Japan. IGCC plants are under early for market transformation in advanced coal is inherently Supercritical & Ultra-supercritical: Water vaporises at 100°C deployment with over 15 plants globally either in operation tied to national regulations pertaining to greenhouse gas under the standard atmospheric pressure of 101.3 kilopascal. or under planning. Oxyfuel combustion technologies are emissions. The success of IGCC and oxyfuel lies in their However, at a significantly higher temperature (374°C) and currently being scaled up from pilot demonstrations to larger compatibility with carbon capture and storage (CCS) should pressure (220 times atmospheric pressure), water vaporises demonstration projects. CCS systems become economic (or simply mandated) in the without actually boiling. This is called the critical point. future. Higher efficiency is particularly important in CCS Supercritical steam generators create such conditions by Cost: Supercritical coal plants can be competitive with systems because the CCS process entails a significant parasitic raising the steam pressure and reheat temperatures to 540- conventional subcritical pulverised coal (PC) plants, with loss of power output. 580°C. This results in higher energy conversion efficiencies higher efficiencies and lower operating costs, although its than conventional coal units. Ultra-supercritical steam capital cost is higher. Ultra-supercritical coal plants are still Deployment: Deployment of coal-based technologies generators raise the temperature to 700°C or higher. under early commercial application and the cost is still high. in developed countries is hampered by ongoing regulatory IGCC and oxyfuel are significantly more expensive than other uncertainty with respect to emission controls. Also the coal technologies. currently depressed price of natural gas makes gas-fired power plants more economically compelling. The deployment of advanced coal will increase as demand grows for more energy efficient plants and cleaner power. Due to their higher efficiency, advanced coal options will be preferred for new16 CLP Technology Roadmap plants with carbon capture and storage. CLP Technology Roadmap 17
  11. 11. Carbon Capture Carbon Capture and Storage and Storage Function To capture CO2 from fossil-fuel power generation Carbon capture and storage (CCS) is a and store it underground process of separating CO2 and storing it permanently rather than releasing it into the atmosphere. How does it help the climate? Economics CCS technology can remove and store permanently up to European Union committed € 1 billion in six CCS projects in Currently, the incremental cost for a power plant with CCS Other carbon capture technologies include adsorption on 90% of the CO2 emissions normally generated by fossil-fuel 2009 and the US also committed US$ 1 billion in the FutureGen is well above the cost for carbon emissions in international solids such as activated carbon, selective filtration through generation, particularly coal-fired plants. 2.0 project in 2010. Currently, there are over 200 active or markets. Deployment of CCS will depend on direct regulation polymer or zeolite membranes, and cryogenic distillation in potential CCS projects globally including those in China and of emissions, direct subsidy of the plant itself, and/or a which the CO2 is condensed. Australia. significant rise in the market price of carbon.What is the status? After capture, the CO2 can be liquefied and injected under Technology: Most of the main elements needed for CCS pressure into geologic formations such as oil and gas are proven and employed in various industrial activities What is the outlook? Market Potential reservoirs, un-mineable coal beds and deep saline reservoirs. including enhanced oil recovery and chemical production. Performance: There is a significant energy penalty This is regarded as permanent storage because these The market potential for CCS is determined by regional However, it is still in the R&D and Demonstration phases when associated with CCS using current technologies. The focus formations have held oil or other contents for millions storage capacity as well as the use of carbon based fuels. If it comes to power generation. Large-scale demonstration of on-going research is on reducing the amount of energy of years. Other alternatives include converting CO2 into regulatory requirements necessitate reduction of emissions, projects are underway across the globe. required to capture CO2 as well as the amount of CO2 leakage carbonate compounds which could turn into construction the market potential for CCS could be huge. For example, that can occur. CCS technology is expected to be commercially materials. both China and India use a significant amount of coal-firedCost: A power plant with CCS will always cost more than a available after 2020. generation and have significant storage potential. power plant without CCS. Without additional policies that put a price on carbon or regulate carbon emissions, CCS will not Deployment: The deployment of CCS will be dependent be economical. The estimated cost of CCS varies based on the type of technology employed, but could increase cost up to on carbon pricing or carbon regulation policies as well as technology advancements. The widespread availability How It Works 80% compared to conventional coal. and low cost make coal a strategically important fuel, and Before carbon can be injected underground for long-term therefore CCS is a critical technology for a low carbon future. storage, it has to be separated from other gases in the powerMarket: The current market for CCS power generation Economic incentives such as subsidies, special tariffs, and/ plant. Carbon can be captured by post-combustion means is limited to demonstration projects. Commitments and or carbon credits will be needed to promote uptake of this from the flue gas in an otherwise conventional plant. In a investigation of additional projects continue. For example, the technology. gasification plant, CO2 can be separated from hydrogen and other components via pre-combustion means. Gasification plants have the advantage of higher CO2 concentrations while post-combustion capture has the advantage of being able to be retrofitted to existing plants. Solvent absorption is the most common method proposed for carbon capture. In the case of a retrofit, flue gas would be bubbled through chemical solvent such as monoethanolamine in an absorber column. In new gasification plants, synthetic gas would be mixed with gaseous solvent in an absorption chamber. In both cases, the CO2 would subsequently be released from the solvent in a separate low pressure and/or low temperature process, so that the solvent could be re-used. Carbon capture and storage with enhanced oil recovery18 CLP Technology Roadmap CLP Technology Roadmap 19
  12. 12. Energy What is the outlook?Efficiency Performance: Conventional coal-fired plants have an efficiency of around 35-38%. Supercritical and ultra- supercritical can reach 40-45%. Further advanced cycles may reach 50%. The latest combined cycle gas turbines have percent. DERs such as micro-turbines and fuel cells are now able to achieve 25-35% efficiency. If waste heat is reused, the efficiency can reach up to 50% or higher. However, the availability of fuel supply such as natural gas and hydrogen, claimed efficiencies up to the high 50s and even 60%. HVDC varies, and its price is subject to fluctuation. Energy Efficiency spans a wide range of is a mature technology but its higher efficiency, e.g. 3% loss options, including generation, delivery per 1,000 kilometres, will only be realised with long distance Deployment: The deployment of energy efficiency and end-uses. Technologies can reduce bulk power transmission. Large-scale trials on smart meters technologies is mainly driven by government policy and are beginning to emerge in some developed countries. It is incentives. Different technologies are available but the consumption, delivery losses, and even believed that the savings will range from 5-10% but regulatory benefits are not necessarily the most apparent and attractive, help change consumers’ behavior leading and institutional changes are needed. More importantly, nor easily allocated to the contributors and/or participants. to lower emissions. customer acceptance is yet to be demonstrated. The key challenge is to allocate adequate and appropriate resources to educate the public and encourage consumer Despite a higher cost, solid-state lighting is highly efficient adoption. Many emerging end-use technologies are, at best, How does it help the climate? as it uses only one-sixth of the energy compared with conventional incandescence lights. Sensors and automation in the “early adopter” stage of development, and without supporting policies and innovative business models, they will By selecting the most sustainable and efficient generation devices can further reduce the consumption by a few not reach mass commercialisation. mix and associated technologies, emissions can be most effectively reduced and controlled at the source. Making the grid smarter can increase the intake of renewables, enable customers’ engagement, improve operation efficiency and reduce losses. Adoption of new end-use technologies not only However, end-use efficiency can be improved more rapidly reduces consumption but also could bring disruptive changes because the products typically have a much shorter life span to conventional markets. For example, solid-state lighting can reduce consumption and offer more durability and flexibility in lighting needs. Electric vehicles (EV) can provide a lower and are replaced more frequently. The success of certain emerging products, such as solid-state lighting is quickly emerging. Market acceptance of EVs and fuel cells will hinge on Electric Vehicles emission alternative to gasoline-based vehicles . significant performance improvements, regulatory policy and incentives. Function To replace combustion engines inWhat is the status? Market: Demand for more efficient and cleaner conventional conventional automobiles by electric motors Technology: There are many technologies available and power plants will remain high, particularly in developing powered by rechargeable batteries many more emerging to improve efficiency. From the utility countries. China is currently the major market for supercritical side, for example, advanced coal technologies, as mentioned and ultra-supercritical developments. Together with combined in a previous section, enable coal-fired plants to generate cycle gas turbines, these three will be the main efficiency electricity more efficiently; High voltage direct current (HVDC) technologies used on the generation side. transmission systems enable bulk power transmission over Economics How it Works long distances with less loss and offer more versatile power On power delivery, HVDC is a mature technology but very The current cost of electric vehicles is not significantly higher An EV runs on one or more electric motors which draw energy flow controls. expensive. It is only competitive if the energy transmission than conventional cars but EVs are not yet widely available. from an on-board battery system. Today, the lithium-ion distance is above one thousand kilometres and the power The range and reliability of EVs, lack of standardisation and battery is most commonly used because of its high power and Smart grid technologies such as smart metering, advanced exceeding thousands of megawatts. With rapid development of ease of access to the charging network are typical concerns of energy density, as well as its lower cost. The most commercially metering infrastructure (AMI) and demand response enable large-scale renewables worldwide, HVDC lines and associated consumers. Government incentives can dramatically improve available EVs can travel 200-300 kilometres after being fully greater interaction with customers. From the end-user side, network reinforcements are becoming a key tool of building a investment economics. charged. A typical full recharge will take about 6-8 hours efficient lighting systems, such as solid-state lights and smart smart grid in developing countries, particularly in China. Smart on normal household supply (single phase) but is reduced to controls, use less energy to provide lighting needs, and use it meter deployment requires both long-term policy support and minutes on fast charging station (three-phase). a sustainable market environment. With its high initial cost and more intelligently. extensive communication infrastructure coverage required, Market Potential EVs use advanced battery and power electronics technologies only countries with major government subsidies, mature Potential markets for EVs are vast and include vehicles of to offer a cleaner means of transportation; distributed energy market environment and mandatory requirements would make every size, from the smallest and light-duty vehicles resources (DER) such as small renewables, storage devices the deployment/trials possible. (automobiles and light trucks) to commercial and even the and fuel cells enable a more decentralized and efficient heaviest trucks, likely for individual or fleet applications. means of supplying electricity. Even in conventional electrical End-use technologies to save energy in one form or another are The large-scale EV deployment is also dependent on the appliances, there are continuous improvements in their available to consumers in most markets. The most attractive availability of charging infrastructure. energy efficiency over time. market is typically the large energy consumers, such as commercial and industrial customers, whose energy savingsCost: The costs of energy efficiency products and/or services can have a significant impact on the total electric/gas bill. vary. Investments at the utility level are usually substantial Because of the up-front investment costs and/or availability of (e.g. hundreds of millions) with a longer pay-back period. local resources, the cost of conventional alternatives is likely to remain considerably lower without any government subsidies.20 CLP Technology Roadmap CLP Technology Roadmap 21
  13. 13. Electric Storage Fuel Cells Function Function To store / release electric energy by To use natural gas or hydrogen to generate electricity through different means for various power and an electrochemical process energy applicationsEconomics Economics Energy storage technologies can provide a range of energy generate electricity as required. CAES uses compressors to The current cost of end-use, stationary fuel cells is significantly and power capabilities for different uses. Pumped hydro force air into an underground storage reservoir at high higher than conventional alternatives. However, some storage (PHS) and compressed air energy storage (CAES) are pressures, and then release the compressed air for governments are providing R&D funding and incentives to the least expensive for large-scale applications. Flywheels and electricity generation. Electrochemical batteries take drive technology and improve investment economics. The supercapacitors can be competitive in applications that advantage of the electricity generated / absorbed from reduced price of natural gas in some markets may improve the require high power for a short time. Electrochemical different reversible chemical reactions to generate and economics for fuel cells as well. batteries can offer different power and energy range but store electricity. Flywheels spin at high speed using a their costs vary and they are usually very expensive for high motor and then release the kinetic energy when the motor energy applications. is switched into a generator mode. Market Potential Primary applications for end-use fuel cell products are buildings, universities and hospitals or residential complexesMarket Potential with relatively high and coincident electric and hot water / The worldwide installed capacity of PHS is over 110,000 MW. space heating demand. There are only two commercial CAES facilities worldwide. Underground CAES offers a lot of advantages but is limited to sites with appropriate geological cavities. For electrochemical How It Works batteries, although sodium sulfur (NaS) batteries have Fuel cells are electrochemical devices that convert a fuel commercial products, many other technologies, such (typically hydrogen or natural gas) and oxygen into generating as flow batteries, are still evolving and are mostly in the electricity and water. The main advantages of fuel cells are demonstration or early commercialisation stage. However, that unlike turbines and engines, they emit low amounts of there are many utility-scale storage applications such as carbon dioxide (none if hydrogen is used) and also have high renewable integration, peak looping, load shifting, grid efficiencies (approaching 40% or more). Some fuel cell Typical schematic of proton exchange membrane fuel cell operational and stability improvements, if the economics and technologies can also recover unused thermal energy system regulatory environments are favourable. resulting in a combined heat and power (CHP) configuration that could increase the efficiency to over 70%.How It Works PHS pumps water from a lower reservoir to an upper reservoir during off peak hours, and reverses the flow to22 CLP Technology Roadmap CLP Technology Roadmap 23