Global Agreements 

CATF staff tour a gasification manufacturing facility in Shanghai, China.

What Partnerships can Accomplish:

 

By bringing together the most innovative companies in Asia and the West, the deployment of a variety of promising clean energy options can be accelerated. The climate challenge will be solved by multiplying opportunities for rapid development and deployment of low-carbon generating technologies, not by restricting engagement between companies in the world’s most dynamic economies. 

 

Investments by one country reduce the cost of that technology worldwide, increasing the likelihood that CCS will be widely deployed in time to help avert the worst consequences of climate change.

 

 

What Partnerships Have to Offer:

 

Advantages China Brings to CCS:

 

Working with China can speed CCS deployment and lower costs

 

Projects in China are completed in about half the time as ones in the West.  This is not simply a function of permitting, but the entire procurement and construction schedule is faster.

 

Capital and labor costs in India and China are a fraction of their costs in the West.  These lower costs are important not just in building large projects, but the play an important role in reducing costs associated with RD&D.  The rising education levels in these countries combined with lower costs make them important potential centers of CCS innovation.

 

Investment funds, especially in China, are available for new energy projects and for innovative energy technology development.  Some individual Chinese companies have energy technology R&D budgets as large as the US DOE R&D budget.  Furthermore, CCS may be viewed as a potential export to the West which may drive CCS interest in India and China.

 

Because China has a  thriving coal gasification and power development markets, most global power system and coal gasification expansion for the foreseeable future will occur in these markets. This growth can facilitate CCS.

 

 

Advantages the West Brings to CCS:

 

The West has deep experience with CCS technology and policies that support its growth

 

North America, the EU and Australia represent CCS resources (demonstration projects, experienced companies, etc.) that can support CCS technology development/deployment in China.  

 

Climate policies in the West, while limited in many respects, have driven the development of pioneer projects with high levels of integration.  Experience with highly integrated CCS projects in lacking in the developing world.  The West has extensive experience in EOR, a technology that is not widely practiced in the developing world.  This know-how would accelerate CCS projects in Asia.

 

Longer term, the West may be more inclined to offer incentives and other policies to drive non-EOR based CCS in the developing world because they wish to be leaders on climate generally.

 

As a result partnerships could create:

  • Export opportunities for China to send CCS technology to the West
  • Dramatically lower cost technology for the West
  • Technical innovation in both the East and West
  • More CCS projects in both the East and West than would occur by working separately.

 

 

US China Partnerships:

 

Some examples of successful partnerships between the US and China are listed below:

 

AEP-Huaneng Power Group

  • AEP signed a cooperation agreement with China Huaneng, China’s largest power generation company, through which AEP, Huaneng, the U.S. Department of Energy and the National Energy Administration of China will perform the initial evaluation of a post-combustion, advanced amine carbon capture technology developed by China Huaneng for power plant applications. Additionally, the two companies will share data about power plant operation efficiencies pioneered at both companies.

AEP-State Grid

  • AEP signed a cooperation agreement with State Grid Corporation of China, the largest utility in China, through which the two companies will jointly evaluate and potentially advance six transmission and distribution technologies, including ultra-high-voltage transmission equipment, advanced energy storage technologies, smart-meter technologies, and distributed generation technologies. Experts from each company will work together to research different technologies and share data about their performance. If the technologies prove feasible, the companies will explore potential fabrication and manufacturing in the United States.

 

Southern Company / KBR – Dongguan Tianming Electric Power Company 

  • Atlanta-based Southern Company will deploy the KBR-developed Transport Integrated Gasification technology (TRIG) in a commercial-scale coal gasification plant operated by Dongguan Tianming Electric Power Co. in China.  (Coal gasification systems, including integrated gasification combined cycle facilities (IGCCs), are particularly amenable to carbon capture and sequestration, because they separate the CO2 (along with several other pollutants) from the process stream prior to combustion.
  • The terms of the agreement include technology licensing, engineering, and equipment to use TRIG technology at a new 120 MW power plant.  Operation is expected to begin in 2011.

 

Duke Energy – ENN Group

  • The initial September 2009 agreement between Duke and ENN Group of China promotes joint technology development of a variety of technologies, from CCS-relevant systems including underground coal gasification to solar, biofuels, and energy efficiency.
  • In a follow-on agreement, ENN Group agreed to make capital investments in commercial solar projects operated by Duke Energy Generation Services.

 

ZEEP – ENN Group

  • Zero Emission Energy Plants Ltd. (ZEEP) and ENN Group reached an agreement in September 2009 to design and construct a commercial-scale power plant in Shandong Province featuring Connecticut-based Pratt & Whitney’s Rocketdyne gasification system.

 

Future Fuels – Thermal Power Research Institute

  • Houston’s Future Fuels is the exclusive North American licensee of TPRI’s multi-stage, dry-feed, waterwall coal gasification system, which is also being installed at the GreenGen IGCC project in Tianjin. 
  • Future Fuels plans to use the technology at its Good Spring IGCC project in Pennsylvania, which it expects will deliver 270-megawatts of electricity while capturing over 50 percent of the CO2 output initially and nearly 100 percent by 2020.
  • The companies have also signed an agreement to share technical data from Future Fuels’ Good Spring plant and TPRI’s GreenGen facility.

 

Duke Energy – China Huaneng Group

  • Potential focus areas of technology-sharing MOU signed in August 2009 include: (1) clean coal power generation with the focus on IGCC and Ultra Supercritical power generation, (2) CO2 Capture and Sequestration (CCS) including Pre-combustion Capture, Post-combustion Capture, Enhanced Oil Recovery (EOR) and geologic sequestration, etc, (3) energy saving and emission reduction in coal-fired power plants, (4) renewable energy power generation including wind, biomass, solar and other energy sources.”
  • According to a Duke spokesperson, “We both have the scale and mass to push the global industry forward in the development of clean technologies.”

 

HTC PureEnergy – Suntracing Clean Energy

  • Canada’s HTC is working with Suntracing in China to demonstrate modular technology developed by HTC that uses CO2 captured from power applications to produce a fire-suppressing foam; the foam is then used to put out coal seam fires, which are common in China and a significant contributor to global CO2 emissions.

 

Duke Energy – State Grid Corp. (in negotiation)

  • Duke Energy and State Grid, China’s largest electricity distributor and one of the world’s largest companies in terms of revenue, are reportedly pursuing a partnership to build highly-efficient high-voltage transmission lines in the United States. 
  • The venture would also provide Duke with access to financing and to State Grid’s transmission technology and equipment, while State Grid will gain insight into the “smart grid” technology Duke is developing.

 



Fact

CATF’s China Project:

  • The Clean Air Task Force (CATF) is working in China and elsewhere in Asia to speed a global transition to low-carbon coal technology, by facilitating the development of joint business ventures between innovative energy companies and research institutions in Asia and the West.   
  • The China Project at CATF builds on China’s current leadership in low-carbon coal technologies that will be essential to addressing climate change and energy security.
  • Read more about our efforts in China here.