FUTURE EU ENERGY MIX
- WILL COAL PLAY AN IMPORTANT ROLE?
International Conference in Gliwice
29 May 2006
Matthias Dürr
RWE AG
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Diversity of the Energy Mix will be key
 Each individual energy source has its own advantages and
disadvantages
 In a world of general uncertainties, no one knows how the costs and
supply conditions will evolve – including economic and social costs
 Therefore, a well thought-out strategy calls for a diversification of the
energy mix in order to reduce dependence on the current polluting and
imported sources
 This also includes greater efficiency in power plants and in the
deployment of plant and equipment, sparing use of valuable resources
 Lignite is the only indigenous fuel available in Germany that can be
extracted cost-effectively and without subsidies in the long term
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Facts on lignite
 Lignite is a domestic, zero-subsidy resource that is mined at the site of
its utilization
 Germany is the world’s number one lignite mining nation with 182
million tons of in 2004
 92% of the lignite mined are used for power production and it
accounted for 26.1 % of Germany’s total power production
 Commercially attractive lignite resources in the „Rheinland“ alone
account for ca. 50 billion barrels of oil equivalents (boe)
 This energy content exceeds the remaining oil and gas resources in
the entire north sea by the factor 1.3 (estimated at 40 billion barrels of
oil equivalents)
 At the current rate of depletion, resources in the Rhineland are
expected to last for more than 200 years
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Significant fossil energy sources in the
future energy mix
World electricity generation in bn MWh
25.8
Increasing world energy
consumption requires more use of
fossil energy sources
4.9
+ 55 %
3.0
16.7
Water etc.
Nuclear
energy
Fossil
Global climate protection requires
efficient technologies and policies
1.3
3.0
+ 62 %
2.6
Oil
1.2
Natural gas
3.2
6.8

Global solutions

Inclusion of threshold and
developing countries

Implementation of JI and CDM

Intelligent technology
solutions for CO2 reduction
9.8
Coal
6.7
2003
2020
Source: IEA, World Energy Outlook, 2004 Edition
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Lignite is a modern energy
The CO2 emission penalization is a challenge for power generators, but modern
lignite technology can turn the challenge into commercial advantage
Available today:
Upgrade options
The near future:
Increased efficiencies
The future:
Zero-CO2 emissions plan
CO2-”cleaning” for modern
steam technology
Pre-dried lignite
Zero-CO2 IGCC power plant
5
Our vision: Power production with CO2 separation
and storage: RWE pursues IGCC* technology
RWE is the only company that combines coal power plant and gasification know-how (RWE Power)
with the theoretical knowledge of CO2 storage in e.g. depleted gass wells (RWE Dea) in Europe.
Key data for the envisaged pilot plant:
450 MWel
40% efficiency with CO2 separation**
2.3 million tons of CO2 storage per annum
In production***
2014
€ 1 billion investment
* IGCC = Integrated Gasification Combined Cycle
** without CO2 separation, above 51% thermal efficiency can be achieved
*** assuming full cooperation of government agencies in approving partially new technology
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Swift implementation by 2014 calls for
parallel development of power plants
and CO storage facilities
today
Power plant
8/2007
Project development
2010
Engineering,
approval
Decision
Energy source/location
CO2 storage site
Construction, commissioning
Approval
Decision to build
Screening, exploration, approval
2014
Start of operation
Construction, commissioning
Approval
Start of operation
The geological conditions found in the storage site will determine what amounts of CO2 can
be fed at the start and how they can be increased
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Back-up
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RWE has a strong Carbon Footprint
due to Coal based Activities
Germany: Power Produced in 2005 in TWh
( own plants only)
Lignite
70.91)
Nuclear energy
45.1
Hard coal
16.7
Gas
12.52)
Others
Total
Hard coal
Gas
3.3
148.5
CO2 emissions in 2005
120 million tons
1) Including plant consumption
2) Inlcuding CHP
UK: Power Produced in 2005 in TWh
17.8
14.82)
Others
Oil
0.5
0.3
Total
33.4
CO2 emissions in 2005
22.7 million tons
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Lighthouse Project of RWE‘s Climate
Strategy: The zero-CO2 power plant
Drying
Coal gasification
Gas treatment
CO2 capture
Gas and steam
turbine
Power
Dry coal
Raw coal
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Power generation with CO2 capture and
storage: RWE is pushing forward the
IGCC technology
RWE has the in-house know-how in power plant and gasification processes (RWE Power) and
basic knowledge for CO2 storage (DEA)
IGCC*
Oxygen
Gasification
Hydrogen
Coal
CO2
Gas and steam
turbine
Power
450 MWgross
can also be used as H2,
or to produce SNG,
methanol, fuel
per pipeline to
CO2 storage facility
* IGCC = Integrated Gasification Combined Cycle
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CO2 storage at the IGCC power plant
CO2 is liquefied in the power plant using high pressure, transported per pipeline and
permanently stored at great depths underground.
H2O
Coal
IGCC power plant
Power
CO2
Depth: approx.
1,000 – 3,000 m
Aquifer, old oil, gas field
(North German basin)
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RWE is strenghtening its development
of CO2 scrubbing - for lignite and hard coal
Technology suitable for retrofitting existing power plants and those being built
Air
Coal
Power
Zero-CO2 flue gas
Advanced steam
power plant
CO2 scrubber
Power
CO2
per pipeline to
CO2 storage site
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Development steps towards
early availability of the CO2 scrubber
 Development of new scrubbing agents
in the context of the EU CASTOR
project/test facility at Esbjerg PP (DK)
 Creation of partnerships with suppliers
and chemical industry for development
and optimization
 Plant trialling in lignite-fired power
plant of RWE
– until 2008: pilot project
– from 2009: demonstration plant
(start of engineering)
 RWE budget: approx. € 90 mill.
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