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COAL The Essential Fuel Advances in Clean Coal and Control of CO2 December 9, 2008 ISMR Presentation Jasper, Indiana

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Title: DRIVING INDIANA GROWTH BY COAL DEVELOPMENT Author: Tom Last modified by: John C. Voigt Created Date: 9/7/2006 11:25:01 PM Document presentation format – PowerPoint PPT presentation

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Title: COAL The Essential Fuel Advances in Clean Coal and Control of CO2 December 9, 2008 ISMR Presentation Jasper, Indiana


1
COALThe Essential FuelAdvances in Clean
Coal and Control of CO2 December 9, 2008 ISMR
PresentationJasper, Indiana
Indiana Center for Coal Technology
ResearchLocated in the Energy Center at
Discovery Park, Purdue University
  • Marty W. Irwin, Director
  • Indiana Center for Coal Technology Research

2
Are we using to much Energy?
  • Population Energy GDP Energy/GDP
  • 1000Btu/
  • USA 6 25 33 .758
  • ROW 94 75 67 1.12
  • Do the Math
  • US population consumes 5.26 times the energy of
    the average person in the rest of the World
  • But we produce 7.7 times the goods and services
    of the Rest Of the World.
  • The USA only 67 of the energy per unit of GDP as
    does the rest of the world.
  • We are the model of energy efficiency, (only
    Japan and Lichtenstein are better).
  • Per capita energy is of no value to measure, to
    reduce your per capita consumption you need only
    add population.
  • It is what you do with the energy that matters.
  • 33 of the world has never used a telephone
  • 40 of China population have no electricity or
    indoor plumbing
  • 50 of the population of the world is on a
    subsistence economy
  • How do you compare the energy us of a Bushman in
    the Kalahari trying to feed his family with a
    Hoosier farmer who uses his 255 acres to feeds
    150 people?
  • Its not how much you use, its what you do with
    it.

3
Indiana Primary Energy ConsumptionSource
Sector, 2006
  • . Trillion Btus Trillion Btus

Source
Sector
ELECTRIC POWER 1,237.4 INDUST 524.9 RES 349.0
COMM 247.2 TRANS 0.2 EXPORT 116.1
COAL 1,547.5 52.6
76.9
96.2
0.4
22.6
0.4
2.9
0.5
0.0
PETROLEUM 890.7 29.7
0.6
42.6
22.9
INDUSTRIAL 1346.3 46.7
24.8
Energy for electricity in each sector is included
4.2
29.8
72.2
2.8
NATURAL GAS 512.1 17.1
7.1
47.8
2.5
RESIDENTIAL COMMERCIAL 532.3 353.1
885.4 30.7
44.1
13.1
1.0
78.1
6.3
40.2
9.3
97.6
31.8
RENEWABLES 46.3 1.5
0.0
TRANSPORTATION 648.7 22.5
18.6
0.8
1.6
Net inter-state flow of electricity/losses
-116.1
Total 2.88 Quads (1015 Btu) 75 of energy
imported
http//www.eia.doe.gov/emeu/states/state.html?q_st
ate_ainq_stateINDIANA
http//www.eia.doe.gov/emeu/states/sep_use/total/p
df/use_in.pdf
4
How Important is Manufacturing to
Indiana?Manufacturing as of Indianas GDP
  • 1997 GDP 2006 GDP
  • Durable Goods 18.1 20.5
  • Non-Durable Goods 10.2 10.0
  • Total Manufacturing 28.3 30.5
  • In 1997 Indianas 18.1 durable goods as part of
    GDP was the highest in the nation. (2006 Indiana
    ranked 3rd).
  • 2006 Total Manufacturing of 30.5 is highest in
    the nation.
  • Your CO2 Footprint is large if you live in
    Indiana because we are a Manufacturing State CO2
    and Energy use measurements do not account for
    where the final product is consumed, only where
    it is produced.
  • Indiana is a manufacturing state
  • Indianas industrial sector provides about 1/3 of
    the state GDP consumes nearly 1/2 of total
    energy

Source Indiana Business Review, Spring 2008
5
Who uses coal in Indiana?When you use
Electricity you use Coal.
  • When you allocate the coal used to make
    electricity to the electricity user
  • Coal consumed in Indiana
  • Sector of total Million Tons Used
  • Industrial 55.2 38.8
  • Residential 21.7 15.3 10 tons /household
  • Commercial 15.8 11.1
  • Export 7.3 5.1
  • Total 100.0 70.3
  • http//www.eia.doe.gov/emeu/states/state.html?q_st
    ate_ainq_stateINDIANA

6
Real Cost of Energy
7
Econ 666Demand Increases as Price Increases
  • From 1995 to 2006
  • Coal price per MMBTU increased 21.1
  • Demand increased 14.0
  • N G price per MMBTU increased 250.5
  • Demand increased 26.7
  • Petroleum price per gallon 107.5
  • Demand increased 14.9
  • Electricity in Indiana price increased
    23.5 Demand increased 21.3

8
2006 COAL DESTINATION INDIANA
Coal Destined for Indiana 72,346 (Thousand short
tons) Methods of Transportation
In state 32,965 Total 30,532 Electricity
Generation Rail 17,021 River
30 Conveyer 3,606 Truck 12,308 2,379
Industrial Plants Truck 54
Residential-Commercial Truck
Wyoming 11,927 Total 11,686 Electricity
Generation Rail Industrial 240 River

Indiana Coal
Montana 2,226 Total 2,226 Electricity
Generation Rail
Ohio 195 Total 188 Electricity Generation Rail
73 River 96 Truck 19 7 Industrial Plants
Truck
Colorado 153 Total 109 Electricity Gen, Rail,
44 Industrial
Utah 164 Total 164 Industrial Rail
Pennsylvania 546 Total 475 Electricity
Generation Rail 223 River 251 68
Industrial Plants Truck
Illinois 6,450 Total 5,347 Electricity
Generation Rail 4,672 River 428 Truck 589 761
Industrial Plants Rail 675 Truck 86
Virginia 670 Total 670 Coke Plants Rail
West Virginia 7,942 Total 2,111 Electricity
Generation Rail 1,114 River 968 Truck 28 4,634
Coke Plants Rail 4,163 River 420, Truck
51 1,197 Industrial Plants Rail 949 River 246
Truck 2
Kentucky 1,371 Total 882 Electricity
Generation Rail 530 River 352 489 Industrial
Plants Rail 392 Truck 97
60,582 Power Generation (9,300
from Synfuel) 6,140 Coke Plants 5,932
Industrial Plants
Alabama 946 Total 944 Coke Rail
Source http//www.eia.doe.gov/cneaf/coal/page/coa
ldistrib/coal_distributions.html
9
Why Coal?Because that is what we have in
Indiana,and lots of it
10
Coal is the Answer to the emissions
problem.Increasing the use of electricity puts
the emissions controls at the Utility. You rent
pollution control when you buy electricity
Unintended consequences of spending Billions on
Pollution Control? Nitrogen based fertilizer
applications increase 44.4 from 1983 to 2004.
NOx emissions fell 44 during same time period.
(Correlation Coefficient 99.1) Australian
Scientist has proposed putting SOx in the
atmosphere to reduce global warming IS GLOBAL
WARMING THE RESULT OF INCREASING THE CO2
EMISSIONS OR THE REDUCTION OF SOX?
11
Sun, Temperature, CO2 Correlations or Cause and
Affect
Source Arthur B. Bobinson et al,, Journal of
American Physicians and Surgeons (2007) 12, 79-90.
12
Climate Sensitivity Reconsidered by Dr.
Christopher Monckton Peer reviewed and Published
in Physics and Society, August 2008
  • The IPCCs 2007 climate summary overstated CO2
    impact on temperature by 500-2000
  • CO2 will add little more than 0.6 degrees F. to
    global mean temp. by 2100, if at any at all
  • Not one of the three variables whose product is
    climate sensitivity can be measured directly
  • The IPCCs value for the three keys is taken from
    4 published articles not 2,500
  • Global Warming stopped 10 years ago, and
    surface temperature have been falling for 7 years
  • Not one of the computer models used by the IPCC
    predicted this cooling period
  • The IPCC inserted a table into the scientists
    draft overstating the effects of the ice-melt by
    1000
  • It was proved 50 years ago that predicting
    climate more than 2 weeks ahead is impossible
  • Mars, Jupiter, Neptunes largest moon, and Pluto
    warmed at the same time as Earth
  • In the past 70 years the Sun was more active than
    at almost any time in the past 11,400 years

13
A High- Resolution, Interactive Map of U.S. CO2
Emissions and Density from Fossil Fuels
13
14
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15
We must get the Science Right, or We will get
the Policy Wrong.
Problem We have a need for lots of energy we
produce stuff used elsewhere. We have a lot of
coal We have real issues with CO2 Regardless
of whether there is any legitimate environmental
basis for the concerns or not. We are shipping
out 1 billion a year to buy coal from other
states and bring it to Indiana What would
resolve all of the issues? Use Indianas own coal
in a way that would 1) Retain energy
capital, 2) Create jobs for Hoosiers, 3) Leave
the environment cleaner than it is now, 4)Reduce
the cost of the goods manufactured in the state
(especially steel), 5) Turn CO2 into a
desirable resource
16
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17
Economic ResultsOf CO2 Removal and Sequestration
With make-up power at 12/kWh hCOE by gt400
With make-up power at 6.5 /kWh hCOE by gt300
Base power plant cost for an existing plant
obtained from Energy Velocity ranged from 2 to 3
cents/kWh. 6.5 /kWh assumes make-up power from
a new non-capture supercritical PC plant 12.0
/kWh assumes make-up power from a new
supercritical PC plant with 90 capture
Source Jared Ciferno, DOE NETL 401/110907
18
What choice do we have? Change the way we produce
power and energy
19
Wabash RiverOne of the Cleanest Coal FiredPower
Plants in the WorldGasification operations
require more space than the original power plant
20
Extensions  and  Existing  CO2  Pipelines  in
 Relation  to  Gasification  Projects
21
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22
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23
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24
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26
Direct Affect of Coal Mining In Indiana
  • In 2007, Indianas coal mining industry
  • Employed 2968 people at 44 mines in 9 counties
  • Mined 34.231 million tons of coal valued at 985
    million
  • This represents 0.1 of state employment, and
    0.47 of state GDP, about 1 of southwest
    regional employment

27
Full Affect of Coal Industry In Indiana
  • The direct effect understates the full regional
    impact, as workers and owners locally spend
    their earnings
  • This full impact is measured by a regional
    multiplier, which measures the full spending
    impact of each direct effect dollar
  • The value of the regional multiplier for coal
    mining in Indiana is currently 2.2
  • Thus, the full impact of coal mining on
    Indianas economy is 2167 million, not 985
    million

28
Develop an in-depth scenario involving new rail
infrastructure development USING INFRASTRUCTURE
TO REDUCE AIR EMISSIONS
Infrastructure changes including the missing
Links will enable Indiana coal to be moved north
but by-passing Terre Haute, Indianapolis and
Chicago Allows for the access of Indiana coal to
the northwest region. Connects Indianas North
and South Ports via rail. Increase Indiana coal
export market potential
29
Southwest/Northwest Indiana Economic Development
Plan
  • Future Idea Areas
  • Indiana Coal Production Potential
  • Indiana coal to make coke
  • reducing cost of steel production, reducing air
    emissions in the region 2.1 million tons
  • NiSource coal replacement potential 6.8
    million tons
  • TOTAL Indiana Coal Potential 8.9 million
    tons
  •  
  • Producing 8.9 million tons of coal adds
  • 742 direct mine workers
  • 2967 Ancillary workers employment to
    South West IN  
  • Total added annual economic activity in South
    West Indiana 530.3 million
  • Estimated cost of the Indiana/Illinois order
    rail line 50.0 million
  • B) Newport Military Base transfer to
    Indiana/Purdue University
  • Biomass to Energy test site
  • Wind Energy gasification supplement site
  • Provide syngas to Cayuga making it more usable
    during peak demand times
  •   

30
Evaluate every suggestionTrust but verify
Clean Wind Energy?
31
Indiana Center for Coal Technology
ResearchLocated in the Energy Center at
Discovery Park, Purdue University
  • We welcome visits
  • Indiana Center for Coal Technology Research, CCTR
  • 500 Central Dr., Potter 326
  • Purdue University
  • West Lafayette, IN 47907-2022
  • Phone 765-494-7037
  • Fax 765-494-6298
  • http//www.purdue.edu/dp/energy/CCTR
  • Marty W. Irwin, Director
  • mwirwin_at_purdue.edu
  • Dr. Brian Bowen, Deputy Director
  • bhbowen_at_ecn.purdue.edu
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