Study on Clean Coal Technology Project - 経済産業省 … on Clean Coal Technology Project March 2012 The Institute of Energy Economics, Japan Preface The coal, of which deposit

Fiscal 2011

Study on Clean Coal Technology Project

March 2012

The Institute of Energy Economics, Japan

Preface

The coal, of which deposit is abundant and low price and stable supply can be expected, is an

energy source indispensable also in the future. In recent years, the energy demand accompanying

economic growth is growing in emerging countries, and especially in East Asia including China and

India, the ratio of utilization of coal as an energy source is high, and it is expected that coal demand

will grow increasingly in the future.

However, the amount of CO2 emission per unit of coal is large compared with other fossil fuels, and

air pollutants such as SOx and NOx are generated. Therefore, the challenge we face is introducing

and diffusing the clean coal technology (CCT) taking the environment into account.

In order to reduce environmental load and control the coal demand in East Asia where the steep

increase in coal demand is expected, an efficient approach is to introduce our excellent CCT. In

addition, it is important to make an attempt of clean use of low rank coal from the viewpoint of

energy security.

Therefore, in this project, aiming at diffusing excellent CCT to The Economic Research Institute

for ASEAN and East Asia (ERIA)-related countries, etc., we have considered the research of the

correspondence situation to any and all barriers and problems which interfere the spread of CCT in

ERIA-related countries and the arrangement of an information-sharing system concerning CCT and

the quality of low rank coal among ERIA-related countries. Furthermore, after arranging every

factor which may influence CCT introduction and CCT introduction plan in each country, we have

considered the measures towards promotion of CCT introduction and spread.

In addition, in this project, we held a review meeting (working group) consist of experts from main

coal utilization countries in implementing a research, and while sharing information on efforts and

problems in each country for diffusing CCT, we have discussed problems and solutions. We would

like to take this opportunity to express our thanks to all of participating members.

March 2012

i

Contents

1. Barriers and Problems Which Interfere the Development and Spread of CCT ..........................1

1.1 Low Rank Coal Utilization Technology .................................................................................1

1) Development Status of the Low Rank Coal Utilization Technology ..................................2

2) Measures against Barriers and Problems Which Interfere Development and Introduction of Low Rank Coal Utilization Technologies ..................................................9

1.2 High Efficiency Coal-Fired Thermal Power Generation Technology...................................15

1) Situations for the Introduction and Promotion of High-Efficiency Coal-Fired Thermal Power Generation..............................................................................................................16

2) The barriers and problems against the introduction of high efficiency coal-fired

thermal power generation technology and their measures ................................................22

2. Factors Concerning Development, Introduction and Spread of CCT and Possibilities

for Technology Dissemination ..................................................................................................29

2.1 Factor Analysis and Introduction Plan Concerning Development and Introduction of Low Rank Coal Utilization Technology ...............................................................................29

1) Australia............................................................................................................................29

2) China.................................................................................................................................31

3) Indonesia...........................................................................................................................32

4) Thailand ............................................................................................................................33

5) Korea.................................................................................................................................35

6) Japan .................................................................................................................................37

2.2 High Efficiency Coal-Fired Thermal Power Generation Technology...................................39

1) Analysis of Factors Relating to Introduction ....................................................................39

2) Development and Introduction Plan .................................................................................47

3. Future Policy toward Introduction and Promotion of CCT.......................................................57

3.1 Optimization and Standardization of Property Analysis of Low Rank Coal.........................57

1) Analysis Methods in Each WG Member Countries ..........................................................57

2) Necessity of Optimization and Standardization ................................................................60

3.2 Properties of Low Rank Coal and Its Sharing.......................................................................62

3.3 Organization of Technical Information and Its Sharing ........................................................63

ii

List of Figures

Figure 1.1 Structure of Low Rank Coal Utilization Technology ........................................................1

Figure 1.2 Distribution of the Installed Capacities of Coal-Fired Thermal Power Plants by the Steam Condition ........................................................................................................15

Figure 1.3 Changes in Average Generation Efficiencies...................................................................15

Figure 1.4 Components of Electric Energy in Australia (2010)........................................................16

Figure 1.5 Steam Conditions for Coal-Fired Thermal Power Plants in Australia .............................16

Figure 1.6 Components of Electric Energy in China (2010).............................................................17

Figure 1.7 Steam Conditions of Coal-Fired Thermal Power Plants in China ...................................17

Figure 1.8 Components of Electric Energy in India (2010)..............................................................18

Figure 1.9 Steam Conditions of Coal-Fired Thermal Power Plants in India.....................................18

Figure 1.10 Components of Electric Energy in Indonesia (2010).....................................................19

Figure 1.11 Steam Conditions of Coal-Fired Thermal Power Plants in Indonesia ...........................19

Figure 1.12 Components of Electric Energy in Thailand (2010) ......................................................20

Figure 1.13 Steam Conditions of Coal-Fired Thermal Power Plants in Thailand.............................20

Figure 1.14 Components of Electric Energy in Korea (2010) ..........................................................21

Figure 1.15 Steam Conditions of Coal-Fired Thermal Power Plants in Korea .................................21

Figure 1.16 Components of Electric Energy in Japan (2010) ...........................................................22

Figure 1.17 Steam Conditions of Coal-Fired Thermal Power Plants in Japan..................................22

Figure 2.1 Coal-fired Thermal Power Plants in Australia (by Capacity and Years of Service) ........30

Figure 2.2 Road Map of Sumatra SNG Project ................................................................................33

Figure 2.3 Clean Coal Development Plan (2012-2021) in Thailand.................................................34

Figure 2.4 Development Schedule of Moving Fluidized Bed Gasification Technology of SKI.......36

Figure 2.5 Road Map for SNG Project of POSCO ...........................................................................36

Figure 2.6 JCOAL/CCT Roadmap....................................................................................................38

Figure 2.7 Prediction of Coal-Fired Thermal Power Generation in Australia ..................................48

Figure 2.8 China's Power Plan (the 12th five-year plan, 2015) ........................................................50

Figure 2.9 Power Plant Capacity Development Plan (2011-2020) ...................................................52

Figure 2.10 Power Supply Plan of Indonesia....................................................................................52

Figure 2.11 PLN’s Perspective on Energy Technologies Roadmap..................................................53

Figure 2.12 Thailand Power Development Plan 2010-2030（PDP2010）......................................54

Figure 2.13 Technology Roadmap of Korea (R&D).........................................................................55

Figure 3.1 Moisture Content in Lignite ............................................................................................61

iii

List of Tables

Table 1.1 LRC Utilization Technologies Are Under Development in Each Country..........................2 Table 1.2 Classification of Low Rank Coal in China..........................................................................4 Table 1.3 Indonesian Definition of Low rank Coal (Indonesia National Standard Basis) ..................5

Table 1.4 Indonesian Definition of Low Rank Coal (ASTM Basis) ...................................................5 Table 1.5 Low Rank Coal Utilization Technologies Which May Be Commercialized in Indonesia ..6 Table 1.6 Measures against Barriers and Problems Which Interfere Development and Diffusion

of Low Rank Coal Utilization Technologies.....................................................................14 Table 1.7 Measures against Barriers Which Interfere Introduction and Diffusion of High

efficiency Coal Thermal Power ........................................................................................28

Table 2.1 Recent Bids for Coal-Fired Thermal Power Plants in Indonesia ......................................40 Table 2.2 Air Pollution Standards of Each Country ..........................................................................41 Table 2.3 Air Pollution Standards of Australia..................................................................................42

Table 2.4 Air Pollution Standards of China ......................................................................................42 Table 2.5 Air Pollution Standards of India........................................................................................42 Table 2.6 Air Pollution Standards of Indonesia ................................................................................43

Table 2.7 Air Pollution Standards of Thailand..................................................................................43 Table 2.8 Air Pollution Standards of korea .......................................................................................43 Table 2.9 Air Pollution Standards of Japan.......................................................................................44

Table 2.10 Electric Rate in Each Country.........................................................................................44 Table 2.11 Electric Rate of Australia (Sydney).................................................................................45 Table 2.12 Electric Rate of China (Beijing)......................................................................................45

Table 2.13 Electric Rate of India (New Delhi) .................................................................................46 Table 2.14 Electric Rate of Indonesia (Jakarta) ................................................................................46 Table 2.15 Electric Rate of Thialand (Bangkok) ..............................................................................47

Table 2.16 Electric Rate of Korea (Seoul) ........................................................................................47 Table 2.17 Prediction of Electricity Demand in Australia (2029-30)................................................48 Table 2.18 Demonstration Projects in Australia (2030) ....................................................................49

Table 2.19 Coal-fired Power Plants in Thailand (Existing and Planned Plants) ...............................55 Table 3.1 Main Coal Analysis Methods in Australia.........................................................................58 Table 3.2 Main Coal Analysis Methods in China .............................................................................58

Table 3.3 Main Coal Analysis Methods in Indonesia .......................................................................59 Table 3.4 Main Coal Analysis Methods in Thailand (ASTM is adopted) .........................................59 Table 3.5 Main Coal Analysis Methods in Korea .............................................................................59

Table 3.6 Main Coal Analysis Methods in Japan..............................................................................60 Table 3.7 Main Coal Analysis Methods of ISO ................................................................................60 Table 3.8 Moisture Analysis Method of Each Standard....................................................................61

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1. Barriers and Problems Which Interfere the Development and Spread of CCT

1.1 Low Rank Coal Utilization Technology

In this section, based on the research of the present state of development of the low rank coal utilization technology in WG member countries, we summarized what kind of barriers we may face with in development and spread of such technology. Moreover, we summarized how each country would cope with such barriers and problems in the present condition. The low rank coal utilization technology can be classified into 3 categories; direct utilization, upgrading, and conversion (Figure 1.1). In the present status, most of low rank coal is directly utilized, i.e., as fuel for power generation. In each country, the present status is that the low rank coal utilization technology is under development according to the situation in each country, such as the present status of spread and the expected utilization in the future of low rank coal (Table 1.1).

Figure 1.1 Structure of Low Rank Coal Utilization Technology

(Drying)

Gasification Syngas

Conversion

MethanationAmmonia SynthesisMethanol Synthesis

SNGFertilizerMethanol

ConbusionDirectUtilization

Heating

IGCC

PowerGeneration

UpgradingUpgrading Coal（UBC, Briquette）

Slurry（CWM）

Liquefaction Direct Liquefaction

Iindirect LiquefactionTransportationFuel

Principal Use

BrownCoal

Source: The Institute of Energy Economics, Japan

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Table 1.1 LRC Utilization Technologies Are Under Development in Each Country

Development Status Country

Under developmentAustralia, Japan, Korea, Indonesia(with technical cooperation of Japan )

Commercial plant for pretreatment of gasification is inoperation (2,800t/d x 3)

China

Upgraded Brown Coal (UBC) F/S for 1st commercial plant in South SumatraIndonesia(with technical cooperation of Japan, China,etc.)

Coal Upgrading Technology (CUT) Pilot Plant (150 t/d; discontinued) Indonesia

Binderless Coal Briquetting (BCB) Commercial plant (1 million t/y; discontinued)Indonesia(with technical cooperation of Australia)

Demonstration plant (10,000 t/y) under commissioningIndonesia(with technical cooperation of Japan)

IDGCC Demonstration Project in final stages for commitment. Australia

TIGARTesting with Pilot Plant (6t/d) completed.Prototype Plant (50 t/d) under design (construction from2012)

Indonesia(with technical cooperation of Japan)

Flash drying and Gasigfication 1 t/d unit scaled-up to pilot plant (3t/d) Korea

Liquid fuel Testing with pilot plant completed Indonesia(with technical cooperation of Japan)

Direct method Demonstration plant planned (discontinued)Indonesia(with technical cooperation of Japan)

Indonesia(with technical cooperation of South Africaunder negotiation)

China(with technical cooperation of South Africa)

Circulating Fluidized Bed Combustion (CFBC) Under development Australia, Korea

Application of existing technology Indonesia, China

Application of existing technology Thailand

Dir

ect

Uti

liza

tio

n

Mine-mouth thermal Power generation

Air pollution prevention measures

Application of existing technology

Technology

Gasification

Drying / de-watering

Coal Water Fuel

Up

gra

din

g

Liquefaction

Indirect method

Co

nve

rsio

n

Source: JCOAL

1) Development Status of the Low Rank Coal Utilization Technology

(1) Australia

a) Definition of Low Rank Coal

In Australia, according to the analysis method provided in the Australian Standard (AS), low rank coal is classified as follows:

Volatile matter: 47 to 55 % (dry ash free basis, daf)

Carbon content: 65 to 72 % (dry ash free basis, daf) Bed moisture: 40 to 70 % Specific energy: 6 to 15 MJ/kg (1,433 to 3,583 kcal/kg)

Reflectance in oil: 0.2 to 0.4 %

b) Development Status of the Low Rank Coal Utilization Technology

In Australia, in order to utilize effectively low rank coal including lignite in the State of Victoria, lignite liquefaction technique was developed in collaboration with Japan in the 1980s. Then, development of the utilization technology has been implemented in the basic study phase. Since around 2005, in attempting to reduce CO2 and utilize effectively low rank coal by using the clean coal technology, development of low rank coal utilization technologies including drying technology towards the improvement in efficiency and DME production are being continued. In particular, since drying/dewatering technology is important for the improvement in efficiency,

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the Coldry process and the technological development are being advanced by Exergen, GTLEnergy and others, and each technological development has reached at the validation phase in a pilot plant. Moreover, application of the WTA method under development in Germany is considered as a drying technology for pretreatment of lignite-fired power generation. A plan to undertake a demonstration project in the State of Victoria is also pursued for the autothermal recuperation type drying technology and the ECOPRO gasifying method which are low rank coal utilization technologies of Japan. Furthermore, economical efficiency is a challenge, though the plan of IDGCC incorporating a drying process is also advanced. The technological development status in each state relating to the utilization of low rank coal is as follows. (a) Victoria

Direct liquefaction of lignite : Development of liquefaction technology has been worked on in cooperation with Japan early in the 1980s.

Cooperative research concerning the utilization of lignite (Cooperative Research Centre: CRC): - Circulating fluidized bed combustion (CFBC) test by a pilot plant : 1999-2000 - Gasification by a pressurization fluid bed: The Electric Power Agency of the State

Victoria/HRL - Gasification by transport reactors: 2003

DME production from lignite: Monash Energy, Co. (pending)

Evaluation of DME production from lignite

Drying and dewatering of lignite: Monash Univ., State Electric Power Agency/HRL, Lignite CRC, Exergen, RWE/International Power, and others

Evaluation of oxygen burning (Oxy-fuel): Monash University, electric power producers in the State of Victoria

Present measures : The development of the lignite utilization technology is undertaken by the Victoria state government (ETIS, BCIA, Clean Coal Victoria) in cooperation with electric power producers.

(b) South Australia

Evaluation of gasification of low rank coal: Bowmanscoal, Lochielcoal, Kingston coal - Undertaken by Electricity Trust of South Australia, Lignite CRC, and Hybrid Energy

Australia - Tests in Australia, Germany, and the United States

Evaluation of GTL with Kingston coal

Syngas Australia is carrying out FS about lignite utilizing CTL.

Examination by the CFBC pilot plant using Lochiel coal : Lignite CRC

Potential evaluation of coal bed methane (c) West Australia

Evaluation of gasification: Collie coal, Entrained flow gasification

Direct gasification of Esperance coal: the situation is unknown.

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(2) China


In China, according to the Chinese National Standards (Guo jia Biao zhun: GB) GB/T 5751-2009, lignite and sub-bituminous coal are classified into 2 types and 3 types respectively as shown in the following table.

Table 1.2 Classification of Low Rank Coal in China

Coal Type SymbolCaking Index

(G)Volatile Matter

(Vdaf, %)Transmittance

(PM, %)Calorific Value(Qgr, daf, MJ/kg)

Brown coal 1 HM1 > 37.0 0 ~ 30 －

Brown coal 2 HM2 > 37.0 > 30 ~ 50 ≤ 24

Long flame coal CY < 35 > 37.0

Non-caking coal BN < 5 > 20.0 ~ 37.0

Weakly caking coal RN > 5～30 > 20.0 ~ 37.0

Note: Vdaf: yield of volatile matter as moisture and ash free basis Qgr, daf: gross calorific value as moisture and ash free basis

Source: Data provided by WG members

b) Development Status of Low Rank Coal Utilization Technologies

In China where low rank coal resources are abundant and the economic development is remarkable, many low rank coal utilization technologies are under development. The drying equipment is operated as a pretreatment equipment of a commercial gasification plant. In addition, fuel oil alternative to petroleum, raw materials for chemical products, indirect liquefaction aiming at SNG, and gasification technology are under examination. Moreover, as part of upgrading low rank coal, a commercialization plan by using the thermal cracking technology in which a chemical products, coke materials and gas can be produced are also considered. At present, main technologies for which practical application is advanced are as follows.

(i) Drying technology (drying, briquetting)

(ii) Combustion technology (co-combustion with steam coal, sole combustion)

(iii) Upgrading technology (CWM, deashing)

(iv) Thermal cracking technology (Tar production, semi-coking, gas production, etc.)

(v) Direct liquefaction technology (fuel oil, chemical products)

(vi) Coal gasification technology for syngas production (syngas production) (In order to obtain methane, hydrogen, ammonia, methanol, dimethl ether, olefin (polyethylene, polypropylene), ethylene glycol, etc.)

(3) Indonesia

a) Definition of low rank coal

The Indonesian government defines low rank coal by the 2000 President Decision No. 13 and the 2004 governmental regulation No. 45. According to them, low rank coal is the coal with high moisture content (35% or more), and of which calorific value is less than 5,100 kcal/kg (adb) (Table 1.3). In addition, it is classified as follows based on the standards established by American Society of Testing and Materials: ASTM) (table 1.4).

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ASTM Carbon content: 69% or less (anhydrous and mineral free base) Volatile matter: 31% or less (anhydrous and mineral free base) Specific energy: 10,500 BTU/lb or less (5,833 kcal/kg or less)

Table 1.3 Indonesian Definition of Low rank Coal (Indonesia National Standard Basis)

Low ～ 5,100

Medium 5,100 ～ 6,100

High 6,100 ～ 7,100

Very High 7,100 ～

kcal/kg, (Air Dry Basis)

Calorific ValueClass


Table 1.4 Indonesian Definition of Low Rank Coal (ASTM Basis)

Subbituminous Subbituminous A coal 10,500 （5,833）～ 11,500 （6,389）

Subbituminous B coal 9,500 （5,278）～ 10,500 （5,833）

Subbituminous C coal 8,300 （4,611）～ 9,500 （5,278）

Lignite Lignite A 6,300 （3,500）～ 8,300 （4,611）

Lignite B ～ 6,300 （3,500）

Class Group

Calorific Value Limits

(Moist,B Mineral-Matter-Free Basis)BTU/lb（kcal/kg）

Equal or Greater Than Less



Indonesian low rank coal is not only abundant in resources, but also it is competitive with its low ash and low sulfur contents. For this reason, the demand from emerging countries actively consuming energy, including India and China, is increasing. On the other hand, Indonesia is advancing development of the utilization technology through joint development or technical cooperation with overseas firms in order to utilize such low rank coal efficiently. The technologies under development now are as shown in Table 1.5. As for upgrading technology, as shown in the table below, commercialization of those which are not yet perfectly commercialized is a matter of time. In addition, if the control of the gross-calorific-value based export is enforced by the government as scheduled, there is a high possibility that commercialization of the upgrading technology under verification or already verified will be accelerated.

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Table 1.5 Low Rank Coal Utilization Technologies Which May Be Commercialized in Indonesia

Name of technology

Name of firms concerned

Scale of operation Coal utilized Characteristics Progress

BCB (Binder- less Coal Briquetting) process

White Energy (Australia), CSIRO, Bayan (Indonesia)

0.2t/h (basic process) -> 10 t/h-> 100 Mt/h (commercial plant, in trial operation)

Low rank coal from South Kalimantan (commercial plant)

Since drying time is short, it is appropriate for sub-bituminous coal/processing conditions can be eased.

Although it is in a validation phase, the plant is shutdown now.

UBC (Upgraded Brown Coal)

KOBELCO 5 t/d (pilot) -> 600 t/d (demonstration: METI/JCOAL project)

South Kalimantan

Processing conditions can be eased most /Stabilization by adsorption by heavy fuel

Under negotiation about the commercial plant No.1 in Indonesia.

Hydrothermal upgrading-cs method

JGC, Co. 10,000 t/y (demonstration: NEDO project)

Lignite from Australia, 2 type of sub-bituminous coal from Indonesia

Also available for carbonization of biomass.

Demonstration project is in progress

Indirect liquefaction

Sasol (South Africa)

Unpublished (The Investment Coordinating Agency and Sasol concluded MOU in 2009.)

Low rank coal from Indonesia

Technologically established

TIGAR IHI, Sojitz, PT Pursi

6 t/d (pilot) -> 50 t/d (Demonstration is planned)

Low rank coal from Indonesia

Adaptation to high-moisture coal is possible with 2 tower-type fluid bed gasifies. Relatively low cost.

A demonstration project is under consideration in response to the result of the pilot project undertaken in 2010 to 2011 with support from the Ministry of Economy, Trade and Industry.

Upgrading technology

Firm name unknown (China)

Not yet determined

Not yet determined

Heating to 450oC tekMIRA visited the plant under commercial operation in Nei Mongol, and the introduction to Indonesia is under consideration.

Drying technology

Geocoal Not exactly known Not exactly known

Not exactly known

PLN is also participating. A pilot plant is under construction in Labuan plant (we have information that its operation will be commenced in May).

Steam tube drier

Tsukishima Kikai, BPPT

Not yet determined because it is at the pre-FS phase

Not yet determined because it is at the pre-FS phase

Indirect drying by heating

Drying/handling examination of low rank coal, burning test of dried coal, commercial utilization test for a power generation plant, etc. are under consideration.

Gua Hua (China)

Unknown Unknown Unknown South Kalimantan

Upgrading technology

Unknown Unknown Unknown Unknown Under development in Bunyu Island in South Kalimantan

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(4) Thailand


In Thailand, brown coal (lignite) is regarded as low rank coal, and specified with its calorific value and sulfur content.

Calorific value: 3,000 kcal/kg or less

Sulfur content: 2% or more


Although the briquette technology was introduced as a model project from Japan in 2000 for effective utilization of lignite, it did not spread due to its low economic efficiency. After that, FS of lignite upgrading technology, CWM as heavy oil substitution for industrial boilers, and basic research of gasification are being performed.

(5) Korea


South Korea is importing sub-bituminous coal mainly from Indonesia as fuel for coal-fired power generation, and utilizing it by mixing with bituminous coal, not for sole combustion. The typical sub-bituminous coal imported from Indonesia by South Korea is KIDECO coal (4,200 - 5,800 kcal/kg calorific value, arb), and this class coal is defined as a low rank coal.


With the low rank coal utilization technology under development in South Korea, a pilot plant test using oil similar to UBC of Japan for dewatering and upgrading technology and fluid-bed-type drying technology is planned in 2012. Moreover, as gasification technologies, the gasifying method in which rapid heating is incorporated in the pretreatment or that which can cope with low rank coal has been developed, and all of such technologies are in the pilot plant stage at 3 t/d. In addition, a commercial plant for SNG production by gasification of ConocoPhillips using sub-bituminous coal is under construction and an IGCC demonstration plant is in the planning stage. The main low rank coal utilization technologies under development at present are as follows.

(i) Fluid bed drying: Multistage-fluid bed drying technology under development by KIER (Korean Institute of Energy Research). A 10 t/d pilot plant test was performed in 2012, and a 500 t/d demonstration plant is planned from 2013 in Indonesia.

(ii) Oil adsorption & evaporation drying: A technology under development by KIER. The process consists of dewatering in oil, oil recovery, and briquetting, similar to UBC. The scale-up to a 5 t/d pilot plant is planned in 2012.

(iii) Rapid drying + gasification: A technology under development by KIER and SKI. It is the process of gasification, after the rapid drying by heating in tubes. A pilot test of 1 t/d of the drying portion in 2010 and that of 3 t/d combined with the gasification portion from 2012 are planned.

(iv) Gasification of low rank coal: A low rank coal gasification technology under development by SKI, After completion of a bench plant of 0.05 t/d, construction and operation of 3 t/d in 2010, and scaling-up to the demonstration or commercial plant of 100 t/d or more from 2013 are planned.

(v) IGCC: 300 MW IGCC using a 3,000 t/d gasification plant with sub-bituminous coal is planned in Taean.

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(6) Japan


Although there is no special definition, since bituminous coal is usually used as boiler fuel, it can be said that sub-bituminous coal and lignite are categorized as low rank coal. According to the classification of Japanese coal in JIS (Japanese Industrial Standards) M1002, sub-bituminous coal and lignite are classified as follows.

Sub-bituminous coal (D-class): Pure coal’s calorific value is more than 7,800 kcal/kg to 8,100kcal/kg or less (anhydro- and mineral free base (dmmf.))

Lignite (F1- class): Pure coal’s calorific value is more than 6,800 kcal/kg to 7,300 kcal/kg or less (ditto)

(F2- class): Pure coal’s calorific value is more than 5,800 kcal/kg to 6,800 kcal/kg or less (ditto)


In Japan, although development of the lignite liquefaction technology aiming at developing a substitute fuel for petroleum was performed in the 1980s and development of low rank coal upgrading technologies, such as DK process and fluid bed, as well as CWM process by hydrothermal dewatering, was performed from the 1980s to the 1990s, such activities have been completed in the pilot stage because of the stable supply and demand of coal or due to the problem of economical efficiency. Then, because of an increase in coal demand and a steep rise in coal price, etc. the necessity for effective use of low rank coal has increased for the stable supply of coal, and the development of technologies to be applied to low rank coal, such as upgrading, drying and gasification, has been continued since 2000. The main low rank coal utilization technologies under development at present are as follows.

(i) Dewatering & drying: The coal autothermal recuperation drying technology is under development at a bench plant stage. In addition, application of the tube drier which is an existing technology to low rank coal is also considered.

(ii) Upgrading: The commercialization of the UBC process for drying-in-oil is under consideration. In addition, For the HWT-cs method for producing coal slurry by the hydrothermal dewatering method, a demonstration plant of 10,000 t/y will be constructed in Indonesia, and its operation will be started in 2012.

(iii) Gasification: The test of the pilot plant of 6 t/d for TIGAR of 2-tower type circulating fluid-bed gasification has been completed, and as a gasification technology applicable to low rank coal, the construction and operation of 50 t/d demonstration plant is planned in the 2012 fiscal year in Indonesia.

Moreover, the two-step entrained-bed-gasification furnace used as a gasification furnace of IGCC of Japan and the coal partial hydrogenation thermal cracking technology (ECOPRO) are gasification technologies corresponding to bituminous coal from sub-bituminous coal, and since such technologies can be applied to low rank coal by incorporating the drying technology for pretreatment, construction of a demonstration plant or a commercial plant in Indonesia or in Australia is considered.

(iv) Briquetting: Using semi coke made from low rank coal which was processed by low-temperature carbonization as raw material, briquettes are produced by mixing clay and a coking agent, however, there are a kiln-type and a fluid-bed dry distillation type as a pyrolysis furnace, and a flue-bed dry distillation type is introduced in Indonesia and the Philippines as a NEDO's model project and is also commercially used.

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2) Measures against Barriers and Problems Which Interfere Development and Introduction of Low

Rank Coal Utilization Technologies

About barriers and problems which may interfere with development and introduction of low rank coal utilization technologies as well as measures against them, we have arranged from policy, financial, and technological aspects.

(1) Australia

a) Policy Aspect

A carbon tax bill passed the Parliament in October 2011, and the taxation of “23A$/ton of CO2” will be started on July 1, 2012.

The resource tax bill (taxable item profits x 30%) which has passed the House of Representatives, and the taxation from July 2012 is likely to be decided the 1st quarter in 2012 if all goes smoothly.

The federal government is planning to abolish plants of 2,000 MW which emission more than 1,100 kg-CO2/MWh, and to promote abolition by offering a subsidy.

In the State of Victoria, although it is not planned to permit construction of any new thermal power plant which will emission more than 800 kg-CO2/MWh, this policy is being reviewed now.

b) Economic Aspect

The moisture content of lignite in the State of Victoria is high (60 to 70%) and the associated high dewatering/drying cost is a big barrier. Although 30 or more kinds of dewatering/drying methods are proposed, under the present circumstances, the economical drying method is not established on a commercial scale.

Since a large amount of capital investment is needed for the development of low rank coal utilization technology, in the State of Victoria, the state government is offering a subsidy support for the technological development.

For the technological development, because there are also budgetary restrictions for any of individual countries, the technological development is promoted as a bilateral or multilateral cooperation project.

c) Technological Aspect

Commercial, economical and efficient dewatering/drying technologies have not been developed. Pilot and verification tests for the development of dewatering, drying and gasification technologies are continued. Moreover, the development of an innovative fluid bed technology based on fundamental kinetics or hydrodynamic analysis and the start of an international cooperation project at a pilot scale are desired.

Dried lignite has properties to trigger spontaneous combustion, and since it becomes an obstacle at the time of transportation, in order to control spontaneous heat generation, production of a liquid fuel by gasification of lignite, etc. are promoted.

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(2) China

a) Policy Aspect

It is said that the central government is considering the introduction of a carbon tax during the 12th five-year plan (2011-15).

Research and development and introduction of technological know-hows of low rank coal are promoted at various levels of government agencies, and there is a special policy which approves the research and development program of pilot plants and demonstration projects for lignite upgrading and conversion technologies.

Moreover, since these government agencies are gradually increasing the financial support and promoting investment for research and development, verification and spread of the utilization technology of lignite to be carries out by business enterprises.

b) Economic Aspect

Since the place of production of low rank coal is inland, cost of ensuring safety and transportation will be high.

As for the utilization technology, the amount of capital investment is large and a high licensing fee is needed in introducing any new technology. Moreover, as compared with these input costs, the energy efficiency of lignite processing equipment is low. The above-mentioned policies are taken to cope with such problems.


Although there are needs of immediately implementing the development of lignite upgrading and conversion technologies, the development of drying/dewatering technology in a commercial scale or thermal cracking technology is at a demonstration phase. The above-mentioned policies are taken to cope with such problems.

(3) Indonesia

a) Policy Aspect

The plan "as the Indonesian government, to incorporate the technology established into the policy" has been clarified.

Moreover, the Indonesian government announced MP3 EI (Master Plan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia (Indonesian economic development expansion/promotion master plan)) in May 2011, and the construction plan of the coal related infrastructure in both Sumatra and Kalimantan islands was specified in it.

b) Economic Aspect

There is a problem of the cost involving infrastructure development, technological development, and their introduction and utilization.


In addition to its own development, development of the utilization technology through joint development or technical cooperation with overseas firms is being promoted.

- 11 -

(4) Thailand

a) Policy Aspect

Although there are the support and the incentive system of the Thai government for the development of utilization technology of low rank coal, these are limited only to the incentive measure to capital investment, and the incentive measure to the research and development is not taken.

It is said that, when making an application to seek the governmental support, the process from the application to the approval is complicated.

In Thailand, the environmental tax (carbon tax) is not imposed now.

It is considered effective to make the incentive measure satisfactory concerning research and development of the technology for promoting the clean use of coal including low rank coal and to give an incentive for private enterprises to perform research and development concerning the utilization of use.

b) Economic Aspect

Low rank coal utilization equipment is expensive in general. Although there are some kinds of cheap low rank coal utilization equipment, a problem exists in its low efficiency of operation. Moreover, since there is no manufacturer of equipment for low rank coal in Thailand, when using equipment, it is necessary to purchase expensive imported ones.

The Thai government is considering to make the incentive measure to clean use of coal satisfactory and to enrich the support to the capital investment in efficient coal utilization equipment which is generally expensive.


In Thailand, although low rank coal produced in Mae Moh coal mine in Thailand is used in the Mae Moh thermal power plant near the mine now, there are neither other low rank coal utilization technologies nor plant O&M experts.

The reliability of the low rank coal utilization technology in the business community in Thailand is low.

For training of experts detailed on clean coal utilization technology and plant O&M experts, the Thai government is considering providing a research system and is seeking for technology exchange with countries advanced in the coal utilization technology.

d) Others

The biggest barrier concerning the coal utilization including low rank coal is the public acceptance. This problem was caused by the pollution damage to local residents by effluents from Mae Moh power generation plant, and the opposition movement of the peripheral people and NGOs to the construction of a new coal-fired power plant continues even now.

The Thai government is planning strengthening the activity to promote the public understanding about energy or CCT including coal. And aiming at establishment of a public participation mechanism, "Bureau of Public Participation Coordination" will be established in the Department of Energy in 2012.

- 12 -

(5) Korea

a) Policy Aspect

In South Korea, there is no obstacle in the policy aspect about the spread of low rank coal utilization technology.

Although any environmental tax (carbon tax) is not imposed and introduction of the carbon tax is not considered now, in the mid- and long-term viewpoint, the government has expressed that it will consider the introduction of the tax.

In response to the request of the business community, the South Korean government has made clear that it is preparing to support the research and development of the utilization of low rank coal.

The South Korean government has made clear that it is preparing to support the research and development of the utilization of low rank coal, especially to support all bilateral or multilateral cooperation projects for the development of low rank coal utilization technology.

b) Economic Aspect

Since the moisture content of low rank coal is high, it is used at power generation plants, being mixing with high rank coal. In order to use low rank coal solely, a new investment cost for equipment improvement and the maintenance expense are required.

Although there are BCB (Binderless Coal Briquette) and UBC (Upgraded Brown Coal) as the existing lignite upgrading and (briquette) production technologies, under the present circumstances, there is a problem in commercialization of such technologies at economical efficiency, and it has not resulted in the spread of the utilization technology.

The above-mentioned policies are taken to cope with such problems.


Because of high moisture content of low rank coal, in the existing coal-fired power plants, since it cannot be used for sole combustion unless equipment improvement, under the present circumstances, it is used mixed with high rank coal.

Although private companies are undertaking the development of low rank coal use technologies including dewatering/drying technology to utilize low rank coal, in the present situation, any technology has not reached to the commercial phase.

The South Korean government , through the Ministry of Commerce, Industry and Energy of the are undertaking the development of low rank coal utilization technologies including dewatering/drying technology for promoting the utilization of low rank coal.

(6) Japan

a) Policy Aspect

While strengthening the countermeasures against global warming by a taxation system in the outline for tax reform (December 16, 2010 Cabinet decision) in the 2011 fiscal year, the government decided to introduce “the tax for the countermeasures against global warming” in the 2011 fiscal year from a viewpoint of implementing the measures for emission control of energy-origin CO2. The tax rate of coal is 670 yen per ton and that of the petroleum-coal tax with added rate will be 1,370 yen (however, there are transitional measures as follows: 920 yen in 2011, 1,140 yen in 2013, and 1,370 yen in 2015).

- 13 -

Such taxation revenue serves as a source of revenue for the measures against a stable fuel supply and for the sophistication of the energy supply-demand structure, and since it is used for various technological development projects which aimed at developing the utilization technology of coal including low rank coal, introducing and increasing the petroleum-coal tax are not necessarily an aspect which will be a political barrier.

In order to support the overseas spread of CCT, the Japanese government is supporting the activities of Japanese companies in the area of utilization of coal through expenditure of a subsidy, etc.

b) Economic Aspect

To use low rank coal in Japan, it is necessary to carry out a long-distance transportation by bulk from coal producing countries, however, compared with bituminous coal, the transport efficiency on a calorific value basis will be low.

There are also means to import products to Japan, by offering the gasification technology to produce SNG, liquid fuel, chemical products, etc. to coal producing courtiers or districts, however, in such a case, it is necessary to attain optimization of the technology suited to the properties of low rank coal.


There is a high possibility of spontaneous combustion during storage of coal or at the transportation stage.

Since bituminous coal of high- calorific value is used as a design coal in many cases, when using low rank coal as fuel, optimization in consideration of the difference in the pulverization characteristic or the difference in burning behavior is required.

- 14 -

Table 1.6 Measures against Barriers and Problems Which Interfere Development and Diffusion of Low Rank Coal Utilization Technologies

Australia China Indonesia South Korea Thailand

Environmental tax (carbon tax,coal petroleum tax, etc.)

○ A carbon tax bill has passed the Diet in October 2011, andthe taxation of 23A$/ton of CO2 will start from July 1, 2012.○ The amount of carbon tax to be paid by Loy Yang PS is450 millionA$ (equivalent to 2/3 of annual income).○ A resource tax bill (taxable item profits x30%) passed theHouse of Representatives. The taxation from July, 2012 isexpected to be decided during the 1st quarter of 2012.○ The federal government has a plan to decommissionpower generation plants which discharge of more than1,100kgCO2/MWh, totaling about 2,000 MW.○ Although the State of VIC has a policy not to permit thenew construction of thermal power plants which will emission800kgCO2/MWh or more, this plan is under review now.

○ About the carbon tax, there is also resistance of theindustry and it was not concretely decided.Prospect by the Research Institute: It expects that a concretevision may come out during the 12th five-year plan period.

○ No environmental tax (carbon tax) is imposed. ○ No environmental tax (carbon tax) is imposed.○ Although the government does not consider introduction ofthe carbon tax in the near future, it expressed that it has anintention to consider introduction in a mid- and long-termviewpoint.

○ No environmental tax (carbon tax) is imposed.

Protection of intellectualproperty rights

○ The Intellectual Property Protection Law is enacted. ○ Intellectual property protection laws (Patent Law,Trademark Law, Copyright Law) are enacted.

○ The intellectual property protection laws (the intellectualproperty related protection laws , such as Patent Law, areenacted after the 2000 No. 30 trade secret law) are enacted.

○ The intellectual property protection laws are enacted. ○ The intellectual property protection laws（Patent Act 2522(1979), Copyright Act 2537 (1994), and Trademark Act 2534(1991)) are enacted.

Governmental support fortechnological development

○The VIC state government has already committed thepositive support for technological development (400 millionA$from 2007 to 2016).○The VIC state government is contributing 16 million A$ from2010 to 2013 to support the lignite utilization technologydevelopment through Brown Coal Innovation Australia (BCIA).

○ In the 12th five-year plan, emphasis is on the utilization oflignite especially, and various projects have support. The typewhich combined dewatering as a coal pretreatment.○ In government support projects, multifuel-fired boiler areinstalled in Jilin and Yunnan for coal combustion /improvement study.○ There is a powerful support for the clean use of low-rankcoal. For scientific technology projects, there are 973 plans,natural science supporting examinations, etc.

○ While high-rank coal is considered to be reserved forexport, low-rank coal is to be used domestically, and thereservation for domestic demand is politically supported(DMO, added value improving measures, etc.)○ The implementation of joint development with Japan for thesupport of commercialization of coal liquefaction, and ofimprovement and gasification technology.

○ On the request of the industry, the government issupporting research and development of the use technologyof low-rank coal.

○ Although the Thailand government has established theincentive measures (preferential tax rates and soft loan) tosupport the investment in high-efficient equipment, technicaldevelopment is excluded from the incentive measures.

Others

○ Tax benefits can be received for equipments in some inter-governmental base projects.

○ Political obstacles are rarely found. ○ The Thailand government has decided upon neither thestrategy for development and promotion of low-rank coalutilization technology, nor the policy.

Eco

nom

ic a

spec

t

Cost problems

○ Low-rank lignite contains high moisture content (60-70%),and dewatering / drying cost is high.○ Although 30 or more kinds of drying technology areproposed, any technology at the commercial stage is not yetestablished.

○ Since the locality of lignite is inland, the cost of thetransportation including safety measures is a problem. Themethod of transportation after improvement of coal is underconsideration.○ Dewatering equipment cost, briquette-izing, and reductionof binder expense.○ The price of lignite will not rise for the time being from theview point of stock or usage (Research Institute's view).

○ If a development area is located inland, an infrastructureinvestment is required, and development is difficult when nopublic financing can be received.○ Since the technology/equipment expense may becomelarge, it is required to secure the public financing and thefinancial support from technical possession countries whenintroducing the technology/equipment.

○ In order to use low-rank coal solely, since investment costfor facility renovation investment and maintenance cost arenewly required, low-rank coal is mixed and used.○ Although as the existing briquette production technology,there are BCB (bindeless coal briquettete) and UBC, forcommercialization, there is a problem in economicalefficiency, and it has not resulted in spread.

○ The manufacturing industry usually invests in cheaperequipment and machinery rather than high-efficient andexpensive equipment.○ High-efficient technology must be imported from overseas.

Technical issues

○ Commercial, economical, and efficient dry technology isunderdeveloped.○ In particular, shift to the pilot examination anddemonstration examination for dewatering and gasificationtechnology development is desired.○ Dried lignite tends to naturally generate heat, and becomesan obstacle at the time of transportation. In order to controlnatural generation of heat, manufacture of the liquid fuel bygasification of lignite is important.

○ In Nei Mongol and the eastern part, the 20 or more projectsare ongoing. Many of them aim at improvement in the calorificvalue by drying.○ Intended main uses of CWM (Coal Water Mixture) of low-rank coal are power generation, material for chemicalindustry, fuel manufacture, etc. In power generation, CWM isfor boiler combustion, in chemical industry and liquid fuelproduction, it is used for gasification or indirect liquefactionprocess.

○ It is not yet established as a commercialized technology. ○ Since the moisture content of low-rank coal is high, unlessequipment renovation, it is not applicable solely to combustionin existing coal-fired power generation plants.○ Dewatering / Drying technology for using low-rank coal hasnot reached at the commercial stage.

○ Low-rank coal is mostly used only for electric powergeneration.○ The industry possesses lower reliability on low-rank coalutilization technology and the quality of low-rank coal.

Dewatering / drying technologyand transportation of low-rankcoal

○ The moisture content of low-rank lignite is high (60-70%)so that dewatering and drying cost will be high. Although 30 ormore kinds of drying methods are proposed, the technology atthe commercial stage is not yet established.- The view of Dr. Sankar of Monash University is that "SteamFluidized-bed Technology" is the most promising as dryingtechnology.- HRL's view is that "IDGCC" is the most promising as dryingtechnology.

○ The targets of improvement of lignite are 10% of moisture,and 4500 kcal/kg calorific value. Particularly, the developmentof dewatering / drying technology with less energyconsumption by using exhaust heat is aimed at.○ In southern provinces, research and development of CWMusing low cost, easy-to-transport (pipelining), and easy-to-store low-rank coal is active.

○ Coal improvement technology is at the demonstration -commercialization stage (UBC, BCB, HWT) .○ FS of application in the plant of dewatering / dryingtechnology and demonstration plant development are inprogress.○ Introduction of the drying technology under developmentin Nei Mongol in China is under consideration.

○ Supported by the government, research and developmentof the following dewatering /drying technologies are ongoing.　- Fluidized-bed drying - Oil deposition and evaporative drying - Flash drying

○ Most of domestic coal is used for local electric powergeneration, and the necessity of investment in equipment foruse of low-rank coal is not felt.

Technical personnel trainingprogram and national support

○ BCIA is supporting lignite related doctoral course studentswith scholarship provision of the 50,000 Australian dollars /year (for 3 years) for cultivation of engineers.○ BCIA will urge young engineers to attend the low-rank coalinternational symposium to be held in Melbourne in April,2012, and it will support the traveling and lodging expensesfor 20 persons for network making-promotion.

○ In coal mining and coal-chemical industries, there aresome companies which have their own training organizationand those seeking for senior engineers.

○ It is at the education / training phase for the time ofindividual introduction of technological know-hows, etc., andthere is no particular national supporting measures.

○ The issue of human resources, such as shortage ofengineers, is unmentioned.

○ There is no national technical personnel training plan forthe utilization of low-rank coal.

Industrial structure and low-rank coal market

○ The low-rank coal market except that of power generationand briquettete are small in Australia.○ It is the actual condition that low-rank coal cannot getahead of competition with ammonia, fertilizer and methanolfrom natural gas, except for electric power generation andbriquettete .

○ The low-rank coal (lignite) market (usage) is at a level ofabout 200 millionT/yr.○ The main fields of market are coal-chemistry industry andelectric power where the demand and the market areincreasing.

○ While high-rank coal is considered to be reserved forexport, low-rank coal is to be used domestically, and thereservation for domestic demand is politically supported(DMO, added value improving measures, etc.)○ Since low-rank coal of 5700 kcal (AD)/kg or below maybecome impossible to be exported, it is required to increase incalorific value by improvement, etc.

○ The amount of consumption of low-rank coal (subbituminous coal) in 2010 was 40 million tons which is equal to40% of the total amount of imported coal.○ Most of imported low-rank coal is used as blended coal forelectric power generation.

○ The amount of low-rank coal consumed in Thailand is 18million tons (2010). Of them, 16 million tons of coal is used forelectric power generation, and 1,900,000 t for the cementindustry .○ In the Electric Power Development plan (2010), importedfuel coal will be used for newly constructed coal-fired electricpower plants.

Public acceptance (PA) of coalutilization

○ Coal always receives the public criticism.○ A continuous dialog with local residents is very important.

○ No particular problem. ○ No particular problem. ○ No particular problem. ○ People and NGO are always opposed to construction ofcoal-fired power plants including also the utilization of coal inmanufacturing processes.○ In order to promote national understanding of energyincluding coal, "Bureau of Public Participation Coordination"will be established in the Department of Energy in 2012.

Others

○ There is no system which steps on a step towardscommercialization from the pilot phase to the technicaldevelopment.○ Since a deforestation is performed in the coal minedevelopment by open cut mining, there is regulation from theenvironmental aspect.

Barriers

Oth

ers

Te

chni

cal a

spe

ctP

olic

y as

pect

- 15 -

1.2 High Efficiency Coal-Fired Thermal Power Generation Technology

This section outlines the current status of the introduction and promotion of high-efficiency coal-fired thermal power generation in WG member countries and details of barriers to introduction and promotion. Also outlined are the current responses to the barriers and problems. As of now, high-efficiency coal-fired thermal power (supercritical: SC, ultra-supercritical: USC) plants have already been introduced in Japan, China, Korea, etc. On the other hand, construction and planning of SC and USC are ongoing in India, Indonesia, Thailand, etc.

Figure 1.2 Distribution of the Installed Capacities of Coal-Fired Thermal Power Plants

by the Steam Condition

29%

12%

5%

44%

59%

3%

18%

10%

14%

16%

89%

42%

57%

49%

83%

13%

13%

11%

58%

39%

28%

7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Japan

Korea

Thailand

Indonesia

India

China

Australia

USC SC Subcritical Unknown

Source: Created based on the data from IEA Clean Coal Centre (November 2010)

Judging from the changes in generation efficiencies, the average generation efficiencies have continued to improve in all countries. Though it is necessary to consider the influence of the coal type used, etc., comparison with the efficiency of Japan, the highest one, shows that there may still remain room for improvements in generation efficiencies.

Figure 1.3 Changes in Average Generation Efficiencies

15

20

25

30

35

40

45

50

197

1

197

3

197

5

197

7

197

9

198

1

198

3

198

5

198

7

198

9

199

1

199

3

199

5

199

7

199

9

200

1

200

3

200

5

200

7

200

9

（％）

Australia China India Indonesia Thailand Korea Japan

Source: Created based on the data from IEA (2011)

- 16 -

The situations for coal-fired thermal power generation equipment in each country shown below are created based on the data from IEA Clean Coal Centre (November 2010).

1) Situations for the Introduction and Promotion of High-Efficiency Coal-Fired Thermal Power

Generation

(1) Australia

In Australia, power generation using coal accounts for 76% of the total generated energy (of which power generation using lignite accounts for about 30%). The most popular installed capacity is the over 600 MW level accounting for 29%. The main steam condition is the steam temperature of around 540°C and the steam pressure of 16 to 17 MPa. The power plants which currently adopt supercritical pressure in Australia are Kogan Creek Power Plant (750 MW), Millmerran Power Plant (840 MW), Callide C Power Plant (900 MW) and Tarong North Power Plant (450 MW).

Figure 1.4 Components of Electric Energy in Australia (2010)

Hydro5%

Oil1%

Natural Gas16%

Others2%

Coal76%


Figure 1.5 Steam Conditions for Coal-Fired Thermal Power Plants in Australia

8

411

8

3

6 33

1

1

22

1

17

400

450

500

550

600

0 10 20 30 40

Steam pressure (MPa)

Ste

am

tem

pera

ture

(℃

)

83%

10%7%

SC

Subcritical

Unknown

Note: The circle in the right figure shows the number of plants. Source: Created based on the data from IEA Clean Coal Centre (November 2010)

- 17 -

For exhaust gas treatment, electric dust collectors are installed in about 80% of coal-fired thermal power plants. Denigration equipment is installed in about 30% of coal-fired thermal power plants. As for desulfurization equipment, installation is confirmed only in the Redbank Power Plant (constructed in 2001, 150 MW).

(2) China

In China, power generation using coal accounts for about 80% of the total generated energy. New coal-fired thermal power plants are constructed in a rapid pace. In general, the major steam condition is subcritical, but ultra-supercritical and supercritical large-scale coal-fired thermal power plants have been constructed in these days. In China, the main pairs of the steam temperature and the steam pressure are 538°C/17 MPa, and 540°C/14 MPa.

Figure 1.6 Components of Electric Energy in China (2010)

Others1%

Hydro17% Coal

79%

Oil0%

Natural Gas1%

Nuclear2%


Figure 1.7 Steam Conditions of Coal-Fired Thermal Power Plants in China

378

5415

6

7

317

12077

54

1

2

400

450

500

550

600

0 10 20 30 40


Ste

am

tem

pera

ture

(℃

)

49%

5%

18%28%

USC

SC

Subcritical

Unknown


- 18 -

(3) India

In India, power generation using coal accounts for about 70% of the total generated energy. As for the installed capacity, the scales of the power plants are gradually becoming larger. Most of the steam conditions are subcritical pressure; the main steam temperature and the steam pressure are 540°C/14 MPa. As for exhaust gas treatment equipment, electric dust collectors are installed in many power plants, but just a few power plants are equipped with desulfurization/denitration equipment.

Figure 1.8 Components of Electric Energy in India (2010)

Coal69%

Others2%

Hydro12%Nuclear

2%

Natural Gas12%

Oil3%


Figure 1.9 Steam Conditions of Coal-Fired Thermal Power Plants in India

4

11

26

2

213 29

122

2

2

400

450

500

550

600

0 10 20 30 40


Ste

am

tem

per

atur

e (

℃)）

58%

39%

3%

SC

Subcritical

Unknown


(4) Indonesia

In the components of electric energy in 2010, coal-fired thermal power generation is the highest, 42% of the total generated energy. Recently, constructions of large-scale coal-fired thermal power plants have been increasing and 40% of them are over 600 MW. All of the steam conditions are subcritical and future introduction of supercritical pressure and ultra-supercritical pressure are planned. As for exhaust gas treatment equipment, electric dust collectors are installed in all power plants, but still few power plants are

- 19 -

equipped with desulfurization/denitration equipment.

Figure 1.10 Components of Electric Energy in Indonesia (2010)

Oil23%

Natural Gas22%

Hydro7%

Others6%

Coal42%


Figure 1.11 Steam Conditions of Coal-Fired Thermal Power Plants in Indonesia

3

6

6

400

450

500

550

600

0 10 20 30 40


Ste

am

tem

pera

ture

(℃

)

42%

58% Subcritical

Unknown


(5) Thailand

In the components of the generated energy in Thailand, natural gas-fired thermal power generation is the highest and accounts for 71% followed by coal-fired thermal power generation which just accounts for 20%. All of the coal-fired thermal power plants are subcritical and no plant over supercritical has been constructed as of now. Gheco-One, a supercritical pressure plant using imported coal, is to start operation in 2012. The scales of coal-fired thermal power plants constructed recently are becoming larger. As for exhaust gas treatment equipment, low NOx burners, wet smoke exhaust desulfurization equipment and electric dust collectors are installed to meet the environmental standard values.

- 20 -

Figure 1.12 Components of Electric Energy in Thailand (2010)

Hydro5%

Natural Gas71%

Others4%

Oil0%

Coal20%


Figure 1.13 Steam Conditions of Coal-Fired Thermal Power Plants in Thailand

2

2

4

8

400

450

500

550

600

0 10 20 30 40


Ste

am

tem

pera

ture

(℃

)

89%

11%

Subcritical

Unknown


(6) Korea

In the components of the electric energy in Korea in 2010, coal-fired thermal power generation is the highest, accounting for 44%. In Korea, many coal-fired thermal power plants are 500 MW-scale and the ratio of the ultra-supercritical/supercritical power plants is high. As for the steam condition, the main steam temperature and steam pressure are 538°C/24 MPa. Korea Western Power Co. is planning to introduce IGCC (0.3 million kW of output) in the Taean Power Plant in 2015.

- 21 -

Figure 1.14 Components of Electric Energy in Korea (2010)

Oil3%

Natural Gas20%

Coal44%

Nuclear31%

Hydro1%

Others1%


Figure 1.15 Steam Conditions of Coal-Fired Thermal Power Plants in Korea

4

1 11 4

4

16

6

400

450

500

550

600

0 10 20 30 40


Ste

am

tem

pera

ture

(℃

)

16%

12%

59%

13%

USC

SC

Subcritical

Unknown


(7) Japan

In the components of the generated energy in Japan in 2010, each of coal, natural gas and nuclear power accounts for 27%. More than half of the generating equipment is large power sources over 600 MW and high-efficiency supercritical/ultra-supercritical pressure power plants account for a little more than 70% of the total. As for exhaust gas treatment equipment, because very strict environmental regulations are applied, electric dust collectors and desulfurization/denitration equipment are widely used.

- 22 -

Figure 1.16 Components of Electric Energy in Japan (2010)

Coal27%

Natural Gas27%

Hydro7%

Others3%

Nuclear27%

Oil9%


Figure 1.17 Steam Conditions of Coal-Fired Thermal Power Plants in Japan

2 6

25

1

2 7

3

8

4 1

3

13

71

400

450

500

550

600

0 10 20 30 40


Ste

am t

empe

ratu

re (

℃)

29%

44%

14%

13%

USC

SC

Subcritical

Unknown


2) The barriers and problems against the introduction of high efficiency coal-fired thermal power

generation technology and their measures

The barriers and problems against the development and introduction of low rank coal utilization technology and their measures are discussed in terms of policy, economy and technology.

(1) Australia

a) Policy Aspect

A carbon tax of 23 Australian dollars/t-CO2 was implemented from July 2012 to June 2015. After its abolition in July 2015, a carbon trading system is to be introduced. Since the determined introduction of carbon tax and carbon trading market is a disincentive for coal consumption, the spread of CCT may gain momentum. Certainly, if the burden of coal-fired thermal power is moderate in comparison with other power sources, such as gas-fired thermal power, it will help spread high efficiency coal-fired power generation technology. But an excessive burden of coal-fired thermal power may prevent the use of the coal-fired thermal power itself, causing a shift to gas-fired thermal

- 23 -

power or renewable energy.

For the development of IGCC or CCS, several plans are in progress under government support; there is also a positive attitude toward international collaborative projects.

It follows from these points that there is no policy barrier against the spread of high efficiency coal-fired thermal power.

b) Economic Aspect

High efficiency coal-fired power generation technology is more expensive in the initial investment than conventional systems.

Lower power rates as compared with other countries are another barrier against the introduction of a new technology.


For large-scale power generation technology, Australia is in the position to introduce a technology from overseas or catch up with an advanced technology; it is relatively weak in the field of manufacturing technology. In particular, the manufacture of boilers, steam turbines, generators, pumps, control boards, etc. is its weak point.

On the other hand, project planning, operation and maintenance are abundant with human resources in electric power providers and engineering, which is a strong point for Australia.

d) Others

The Australian people have a strict opinion of environmental pollution and do not understand enough the high efficiency coal-fired power generation technology.

(2) China

a) Policy Aspect

China has been powerfully advancing SC/USC technologies as a national policy and rapidly expanding high efficiency coal-fired thermal power plants. At the same time, the promotion of the “Big ones over small ones” policy to replace small-scale power plants under 100 MW with large-scale ones has created demand for SC or USC technology. Therefore, there is no policy barrier in China.

b) Economic Aspect

The high efficiency coal-fired thermal power plant remains more expensive than the coal-fired thermal power plant which uses the existing technology.

However, as stated above, there is a strong political support to spread high efficiency coal-fired thermal power generation. Moreover, China is seeking a large cost reduction by standardizing specification. Therefore, it is unlikely that any economic problem will be a barrier.


China has received the technology in connection with high efficiency coal-fired thermal power generation from Japanese, European and American companies to make it domestic. As a result, it has grown able to manufacture 1,000 MW USC coal-fired thermal power on its

- 24 -

own account.

China has the major three heavy electric manufacturers of Harbin, Shanghai and Dongfang. Thanks to technology transfer from overseas manufacturers, the three companies can manufacture SC or USC-compatible boilers and turbines.

It follows from this situation that there will be no special barrier when standard problem plants based on technology transfer become widespread. However, the technology which can support various coals is a future challenge and there remain software problems including operation and maintenance management to keep highly efficient.

To address these problems, China seeks cooperation abroad.

(3) India

a) Policy Aspect

India predicts an economic growth of 8 to 9% per year with its power demand increasing from 220 GW (2011) to 861 GW (2031). Specifically, an additional program of power equipment includes 100,000 MW in the 12th plan (2012-2016) and 102,000 MW in the 13th plan (2017-2021).

India’s basic power policy is spreading and promoting of high efficiency coal-fired power generation technology, such as SC, in order to increase half the coal-fired thermal power newly installed during the 12th plan to more than SC and all the coal-fired thermal power newly installed during the 13th plan to more than SC. If these plans go smoothly, high efficiency coal-fired thermal power plants will become significantly widespread.

Therefore, in India, there is no obvious policy barrier against the spread of high efficiency coal-fired power generation technology.

b) Economic Aspect

At present, the National Thermal Power Corporation (NTPC) which is a wholesale power and large supply company operated by the federal government has an after-tax sales profit ratio of about 16% and enough cash for construction of thermal power plants.

However, power rates for agriculture etc. are sometimes set under the electric power generation cost at the hand of the State Electricity Board responsible for in-state retail; there is an example of the state government compensating deficits. In such a case, the remaining ability of the State Electricity Board to invest would be insufficient, causing high efficiency coal-fired power generation technology with costly initial investment to be avoided.


Indian coal is very high ash and low calorific. Therefore, it needs to be refined so that it may be suitable for the pretreatment technology, such as coal cleaning, or the utilization of high ash coal.

In addition, for the technologies to produce boilers or turbines, several manufacturers have created joint ventures with overseas firms in order to acquire such technologies.

d) Others

Using coal-fired thermal power poses problems such as high CO2 emissions as compared with other power sources, ash disposal with the use of high ash domestic coal, and railroad capacity to transport coal.

- 25 -

In particular, ash disposal is a fundamental problem for coal-fired thermal power because the introduction of high efficiency coal-fired thermal power generation gives no effective solution to the coal ash problem.

(4) Indonesia

a) Policy Aspect

Indonesia has a voluntary target to reduce CO2 emissions by 26% by 2020 to expand high efficiency coal-fired thermal power generation in terms of global warming issue and coal resources saving. Moreover, the bidding for large-sized coal-fired thermal power plants after 2008 is conditional on the adoption of SC/USC.

It follows from these points that there is no obvious policy barrier against the spread of high efficiency coal-fired thermal power.

There are no special financial aids (subsidy, tax break) to introduce high efficiency coal-fired thermal power. However, the import of infrastructure equipment is nontariff.

b) Economic Aspect

Too low power rates affect the fund shortage for investments and the choice of power generation technologies for IPPs. Now that the energy price rise is increasing the subsidy expenditure with a financial stress, abolishing subsidies and raising to appropriate prices are under consideration.

For the introduction of high efficiency coal-fired thermal power, it is pointed out that relatively high initial costs lead to the increase of power rates.

Moreover, as seen in the first crash program, there is an example of project delay for which fund raising is a cause: finance is considered to be a barrier.


To introduce high efficiency coal-fired power generation technology in Indonesia, it is necessary to master the operating technique and the management ability for complicated equipment. Also, as low rank coal is being used for power generation, a high efficiency power generation technology suited to the coal quality used needs to be developed.

In addition, an opportunity for human resource development is created by including in the contracts with IPPs or manufacturers the provision to train workers in the design, operation and maintenance.

d) Others

For a country which receives technological support for high efficiency coal-fired power generation, site acquisition may be included in the scope of service provision in an IPP project. In that case, the entry hurdle is higher.

It is a condition peculiar to Indonesia that large-sized power generation equipment is not suitable for island districts due to smaller power demand.

(5) Thailand

a) Policy Aspect

Although gas-fired thermal power generation accounts for about 70% of the power generation

- 26 -

in Thailand at present, it has made a policy to advance the use of high efficiency coal-fired power generation technology in the future in order to diversify the fuel for power generation.

According to “Thailand Power Development Plan 2010-2030 (PDP2010),” it plans to construct nine 800 MW power plants using SC or USC technology between 2019 and 2030.

b) Economic Aspect

Since high efficiency power generation technology is more expensive in the initial investment than conventional coal-fired thermal power, fund raising for plant construction may be a barrier.


It is pointed out that the construction of a large-sized coal-fired thermal power plant with more than 800 MW requires strengthening of transmission network.

While the number of skilled technicians is enough for the planning, development, construction, operation and maintenance concerning the construction of thermal power plants, it is estimated that the engineers engaged in direct manufacturing are insufficient because there is no domestic manufacturing technology for main equipment (boilers, steam turbines, generators, pumps, adjusters, etc.).

For the training of technicians and operators which is key to introducing CCT, a place for receiving lectures from manufacturers with high technology is set up. Additionally, efforts are made to acquire knowledge of construction, operation and maintenance through seminars or training courses held in high tech countries such as Japan.

d) Others

Due to the past pollution problem caused by the Mae Moh plant of EGAT, there is a strong opposition against coal-fired thermal power among the people in Thailand.

The people are very environmentally conscious, making it difficult to construct a new coal-fired thermal power plant: public acceptance of coal-fired thermal power is the largest barrier in Thailand.

(6) Korea

a) Policy Aspect

South Korea has announced a policy to increase the ratio of nuclear power and renewable energy as the main initiative for reducing CO2. But the 5th (2010-2024) plan for power demand and supply includes the construction of 15 coal-fired thermal power plants (totaling 12,090 MW): coal remains a major fuel for power generation.

Besides, the R & D of high efficiency coal-fired power generation technology is actively promoted as a national project.

Therefore, in South Korea, there is no obvious policy barrier against the spread of high efficiency coal-fired power generation technology.

b) Economic Aspect

In South Korea, the setting of power rates is significantly affected by the government policy: the setting level can be a barrier to spreading high efficiency coal-fired power generation technology which is costly.

- 27 -

Korea Western. Power Co. started its construction of IGCC in November 2011 with a view to introducing an advanced technology with high initial costs by receiving a certain support from the country.


Although USC technology will be adopted in the coal-fired thermal power to be constructed in the future, it is a weak point that main equipment or materials remain to be developed.

(7) Japan

a) Policy Aspect

In the Basic Energy Plan revised in June 2010, higher efficiency and lower carbon are sought by promoting efficiency improvement and biomass mixed combustion in the existing coal-fired thermal power, the installation of the latest facilities through replacement of obsolete coal-fired thermal power in order to reduce CO2 emissions per unit of electricity generated. For new and additional or renewed coal-fired thermal power, its CO2 emissions are to be kept as low as the level of IGCC in principle for some time. Aiming at further innovation of its world’s highest coal-fired thermal power technology, Japan plans to develop and demonstrate advanced technologies, such as IGCC and Advanced Ultra-Supercritical Pressure (A-USC), through the public and private cooperation.

Toward zero emission coal-fired thermal power in the future, Japan also intends to accelerate the technical development to commercialize CCS by 2020 while considering the introduction of CCS Ready for new and additional coal-fired thermal power to be planned in the future. Besides, Japan is ready to consider introducing CCS into the coal-fired thermal power by 2030 on the premise of its commercialization. Thus, there is no obvious policy barrier against the expansion of high efficiency coal-fired power generation technology in Japan.

b) Economic Aspect

With SC and USC plants already spread widely, Japan has no economic barriers in terms of commercialized technologies. In the case of introducing advanced technologies, such as IGCC and A-USC, however, their high costs can be a barrier.


Although IGCC has been tested for demonstration at the CCP facilities in Nakoso, further improvement in reliability is essential to introduce commercial plants. Moreover, A-USC plants require the development of materials capable of operation under high temperature and high pressure.

- 28 -

Table 1.7 Measures against Barriers Which Interfere Introduction and Diffusion of High efficiency Coal Thermal Power

Barrier Australia China India Indonesia Thailand South Korea Japan

Policy aspect

・Development of coal gasificationtechnology or CCS technology issupported.

・Siting of large-sized and high-efficientcoal fired electric power plants ispromoted.

・ In the 12th 5-year plan, the target isset to operate half of newly constructedcoal-fired electric power plants at abovethe supercritical, and in the 13th plan, allplants will be operated at above thesupercritical.

・In some tenders for IPP by PLN, eachproposed plant will have to becontingent on operating at above thesupercritical.

・The level of importance of coal-firedelectric power generation in the electricpower development is low. (Priorities arerenewable power source, electric powerimport, gas-fired power generation,nuclear power generation, and coal-firedpower generation, in the order)

・The increase in coal-fired powergeneration is planned in the electricpower development plan.・Research and development of CCT aresupported.

・The significance is found in coal-fire powergeneration from a viewpoint of energysecurity, however, in term of utilization of low-carbon power source aimed atsimultaneously, coal-fired power generation isdisadvantageous.・Tightening of regulation on CO2 emission isintended by means of environmental tax andemissions trading, etc.

Energy savingmeasures, CO2, NOx,a SOx reduction targetand regulation

・Electric dust collector are installed inabout 80% of coal-fired power plant.Although the percentage of installationof NOx removal equipment is about30%, it is higher in plants constructedsince the 1980s.

・ In 2006, to each of five majorelectricity producers and six nationalpower grid companies, the installationwritten oath of desulfurization equipmentwas forced to be submitted.・ In March 2007, "The 11th five-yearplan for sulfur-dioxide-emission controlof the existing coal-fired-power-generation installation" was be

d

・Electric ash collectors are installed inmany plants as measures against airpollution, however, plants equipped withdesulfurization and NOx removalequipment are only a few.

・Electric dust collector are installed in allcoal-fired power plants. There are stillfew plants equipped with desulfurizationand NOx removal equipment.

(e.g.) In New GHECO-One plants, NOx:56ppm, SOx: 53ppm, and ash dust:

55mg/m3N

・Introduction of desulfurizationequipment, NOx removal equipment,and electric dust collectors isprogressing.

・ Each plant has concluded a pollutioncontrol agreement with a respectivelocal community. (e.g.) No.2 unit of theIsogo thermal power plant whichcommenced the commercial operation inJuly, 2009, emissions; NOx: 13ppm,

SOx: 10ppm, and ash dust: 5mg/m3N.

Existence ofenvironmental tax orpetroleum/coal tax

・July 2012 - June 2015The carbon tax of 23 Australian dollars / CO2t will

be introduced・July 2015 -

A carbon trading system will be introduced afterabolition of the carbon tax.

・Currently, there is no carbon tax. ・Currently, there is no carbon tax. ・Currently, there is no carbon tax. ・Currently, there is no carbon tax. ・Currently, there is no carbon tax. ・A tax is imposed by 700 yen/t for coal.

Protection ofintellectual propertyrights

・The intellectual property protectionlaws (Intellectual Property Law) areenacted.

・The intellectual property protectionlaws (Patent Law, Trademark Law,Copyright Law) are enacted.

・ The intellectual property protection laws areenacted. Based on Agreement on TRIPS(Trade-Related Aspects of IntellectualProperty Rights), India which is a WTOmember country is performing legal revisionso that it may consistent with the agreement.

・ The intellectual property protectionlaws are enacted （Intellectual propertyrelated protection laws, such as thePatent Law, are enacted after theenactment of the 2000 No. 30 tradesecret law.)

・The intellectual property protectionlaws（Patent Act 2522 (1979), CopyrightAct 2537 (1994), and Trademark Act2534 (1991)) are enacted.

・The intellectual property protectionlaws are enacted.

・The intellectual property protection lawis enacted. (Intellectual property law).

Economic aspect

・Since various kind of power sourcesare competing in the wholesaleelectricity market, in power sourceselection, cost will be an importantelement.・By introducing the environmental taxand emission trading, etc., when thecost burden of CO2 becomes excessivein comparison with other power sources,the cost competitiveness of coal-fired

ti d li

・ A cost reduction is progressing bymeans of domestic production of CCTand creation of domestic demand.・The CCT introduction policy isadvanced and it is possible that theproblem of economical efficiency is not abarrier.

・Some power rates including those foragriculture are set at a level lower thanelectric power generation cost, andthere is some examples for which thestate government has filled up thedeficit. In such a case, the shortage ofremaining capacity for investment mayarise and CCT with a large initialinvestment may be backed away from.

・ Financing is an issue in promoting theelectric power development.・ There is concern whether introductionof CCT may lead to the rise in electricitycosts.

・Financing may become an issue inpromoting the electric powerdevelopment.

・ As conversion to cost of CO2, such asenvironmental tax, emission trading, etc.becomes clear, if it is too heavy, coal-fired power generation will bedisadvantageously.

・Since the coal supply is depending onimport and there is a severeenvironmental control, the problem ofeconomical efficiency is not a barrier.

Cost

Electricity rate level

・ Compared to foreign countries, theelectricity rate level is low.

・A negative net worth compared to thewholesale charge exists due to the increasein price of domestic produced coal. If therewill be no increase in price from now on, theintroduction of high-initial cost CCT willbecome disadvantageous.

・ Some of power rates, those foragriculture are, for example, are lowerthan electric power generation cost.

・Remaining capacity to develop powersources is insufficient, because the subsidy isinjected in order to control the domesticelectric power price.・ A cheap electric power price may become abarrier to investment.

- ・ The power rate level is low. -

Shortage of the numberof engineers

・ The production technology is a weakpoint. Human resources are alsoinsufficient.

- - ・ Technologies and engineers involvedwith operation and maintenance areinsufficient.

・ The number of engineers directlyengaging in manufacture is supposed tobe insufficient.

- -

Technical aspect

・ There is no domestic productiontechnology of high-efficient powergeneration installation.

・ Although it has production technology, asthe technology for operation and maintenanceas well as engineers are insufficient, it issupposed that it is difficult to maintain highefficiency.

・ High-efficient power generation technology suitablefor domestic coal (low grace, high ash content) needsto be developed.・ Technology of producing boilers and turbines isunder acquisition by JVs with overseas firms.

・ It has no technology of domestic productionof high-efficient power generation installation.・ The technology of blending various coalsand getting uniform quality is required.

・ It has no technology of domesticproduction of high-efficient powergeneration installation.・ Technical development is insufficient.

・ It has technology of domesticproduction of high-efficient powergeneration installation.・ There is a weak point with raw materialtechnology and others.

・ Although it has the technology ofworld's highest level at present,problems are its succession anddevelopment.

Possibility of establishment ofmaintenance managementsystem

・ It has sufficient knowledge ofoperation and maintenance.

・ Problems may remain in theoperation and maintenancetechnology.

- ・ The operation technique and themanagement ability of complicatedequipment need to be acquired.




Others

・ People's opinion to environmentalpollution is severe.

- ・ In order to use high ash-content coal, aproblem exists in the ash handling system.・ The bottleneck of coal supply is the railwaytransport capacity.

・ The electricity demand in islands issmall and large-sized powergeneration installation is unsuitable.

- - -

Level of understanding ofcoal-fired electric powergeneration

・ An opposition faction exists to coal-fired power generation, but it is in aminority.

- - - ・ The opposition to coal-fired powergeneration is strong because there was apollution problem which Mae Moh plantcaused in the past.

- ・ The consciousness to environmentalprotection has increased and the imageof coal fire-power generation is bad.

Measures

・ IGCC and CCS are underdevelopment with the governmentalsupport・Coal consumption is controlled byintroducing a carbon tax and a carbontrading system. ->To the incentive ofCCT introduction

・　While attempting to promote theintroduction of CCT as a national policy,development of domestic industries isprogressed through licensing oftechnology from overseas.・ Technical cooperation for operationand maintenance is received fromJCOAL and the Chugoku Electric PowerCo., Inc.

・ In the manufacturing area, two or moredomestic manufacturers will establish JV withoverseas firms having production technologyin order to acquire the production technology.・It is received the technical support which willcontribute to the improvement of thermalefficiency including operation andmaintenance of equipment from Japaneseelectric power companies.

・ The subsidy is reduced / abolishedand the rise in electricity rate isconsidered.・ On the occasion of CCT introduction,training of working staff about designing,operation and maintenance will be laiddown in the clauses of each contractwith IPP or manufacturers, and the placeof personnel training will be created.

・ The place which receives lectures frommanufacturers, etc. who have hightechnology is prepared. In addition,through seminars or training courses tobe held in some countries having hightechnologies, such as Japan, and strivesfor the knowledge acquisition aboutconstruction, operation andmaintenance.

・ Korean Western Power Co. intends tointroduce the advanced technology ofhigh initial cost by receiving a certainsupport from the government for IGCCof which construction work has started inNovember 2011.

-

・ Compared to the existing technology, high-efficient power generation technology requires a large amount of initial investment.

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2. Factors Concerning Development, Introduction and Spread of CCT and Possibilities for Technology Dissemination

2.1 Factor Analysis and Introduction Plan Concerning Development and Introduction of Low

Rank Coal Utilization Technology

This section discusses main factors (introduction-related policy, low rank coal market, dewatering or drying technology, human resource development) which are considered to affect the development and introduction of low rank coal utilization technology in the WG member countries. In addition, the development and introduction plans of low rank coal utilization technology in the countries are presented.

1) Australia

(1) Introduction-related Factors

a) Introduction-related Policy

It is only the State of Victoria that has a clear policy concerning the policy related to the promotion of utilization of low rank coal in Australia. This state’s government has been actively supporting the development of low CO2 emission technology toward clean utilization of brown coal with a financial assistance of the joint research and development program of brown coal for the brown coal industry through the Energy Technology Innovation Strategy (ETIS) Scheme formulated in 2005. Moreover, the Brown Coal Innovation Australia (BCIA) was established in 2009 under the financial assistance of the Victorian government, and it is continuing the research and development program for the clean utilization of brown coal. “Support from the Victoria state government”

The financial supports by the Victorian government for the development of brown coal utilization technology are as follows:

ETIS 1: 180 million Australian dollars (2007 to June 2010)

ETIS 2: 110 million Australian dollars (for six years after 2011), Carbon Dioxide Capture and Storage Project

BCIA: 16 million Australian dollars (for four years after 2010) The relationship of brown coal technology development in ETIS is shown in Figure 2.1.

- 30 -

Figure 2.1 Coal-fired Thermal Power Plants in Australia (by Capacity and Years of Service)

Source: Victorian Government, Department of Primary Industry’s Data (December 2010)

b) Low Rank Coal Market

The Australian low rank coal market is small by itself, and the coal is not capable of competition with natural gas-derived ammonia, fertilizer and methanol unless it is used for electric power and briquette. It is mostly used for local power generation. In the future, the market of low rank coal, especially brown coal, will remain mainly for the purpose of local power generation. However, if upgraded coal products based on drying and dewatering can be used as an alternative fuel to general coal, an export market for brown coal products will be created.

c) Dewatering or Drying Technology

Due to its high water content (60 to 70%), brown coal is expensive in dewatering or drying cost. Efforts for the development of brown coal drying or dewatering technology are continued in Monash university, Victorian State Electricity Board/HRL, Brown Coal CRC, Exergen, RWE/International Power, etc. Although more than 30 kinds of drying methods are proposed, no commercially viable drying method has been established yet. The establishment of a brown coal drying or dewatering technology will accelerate the development of conversion technologies including gasification and liquefaction. Moreover, it will expand the direct applications of the upgraded coal products based on drying and dewatering.

d) Human Resource Development

In the State of Victoria, BCIA provides a scholarship of 50,000 Australian dollars/year (for three years) to the students in brown coal related doctoral course. In addition, while encouraging young technicians to be present at the “Low Rank Coal Conference” to be held in Melbourne in April 2012, it will help in the traveling and lodging expenses for 20 persons in order to promote a youth-based network.

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(2) Development and introduction plan

a) Road map

In the State of Victoria, the Department of Primary Industry (DPI) is preparing a road map of brown coal which it announced will be published in the “Low Rank Coal Conference” in Melbourne in April 2012.

b) Future Policy

The following development will be promoted:

Development of efficient and commercially viable drying technology

Assessment and demonstration of entrained bed gasification and assessment of supercritical pulverized coal-fired power

Assessment of oxygen blown coal-fired thermal power

Assessment of oxygen blown circulating fluidized bed

Development of CTL (DME, methanol, diesel) technology Moreover, with regard to the carbon tax bill and the policy to close power plants with CO2 emissions of more than 1,100 kg/MWh, consideration is given to continuing the operation of such plants with the equipment modified.

2) China



R & D and technological introduction of low rank coal are encouraged by various levels of governmental organizations with a special policy to approve research and development programs of pilot plants or demonstration projects for upgrading and conversion technology of brown coal. Moreover, these governmental organizations are gradually increasing its financial support and encouraging investments for the purposes of R & D, demonstration and dissemination of brown coal utilization technology which are implemented by companies.


In China, the coal chemicals market is expected to expand and an advanced coal chemistry industry is promoted with an intention to exploit its own lower-priced coal resources and produce chemicals at lower costs. Also, many advanced coal chemical industrial plants will be demonstrated during the period of the 12th five year plan. It is expected that the market demand of advanced coal chemicals which can replace oil, such as ethylene and propylene, will increase.


For drying technology, many projects are in practice mainly in eastern Inner Mongolia which is a coal field area. The goal of brown coal upgrading is 10% of moisture and 4,500 kcal/kg calorific value, and the upgrading method is mainly based on dewatering and drying. In particular, the development of dewatering or drying technology is sought which consumes less energy through the use of exhaust heat etc. Many of projects aim at drying and briquetting.

- 32 -


The National Institute of Clean-and-low-carbon Energy (NICE) founded under the support of the central government in 2010 is a national research organization managed by Shenhua Group. NICE facilitates cooperation among government, industry and academia to accelerate innovation, R & D, etc. under corporate support. It is also a platform for the international cooperation of energy technologies and a bridge between China and foreign countries.

(2) Development Introduction Plan

a) Road Map

A road map of overall energies was created at the end of the period of the Eleventh Five-Year Plan. It includes a road map of overall coal. In addition, the Central Coal Mining Research Institute is responsible for preparing the road map of coal exploitation, energy saving and waste reduction.

b) Future Policy

For coal processing as the main use of low rank coal, the National Energy Administration has developed a “model project proposal of advanced coal processing.” This proposal tightens the environmental standards for energy efficiency, coal consumption, water consumption, etc., defines focused model projects of 7 items and 17 types on technological equipment, encourages companies and local governments to improve efficiency and added values, and sets out the reduction of pollutant discharge and the optimization of the total system.

3) Indonesia



No policy support is planned at present.


Potential for utilization of low rank coal is found in the sectors of power, metallurgy, cement, fertilizer and fiber in the secondary industry that are subject to the domestic supply quota system which was started by the Indonesian government in 2010. Moreover, with the international coal price continuing at a high level and Indonesia’s GDP staying around 6%, it is certain that the country’s domestic demand for low rank coal will continue to increase.


New power plants under the crash program have had many troubles probably caused by mishandling of low rank coal, raising interests in dewatering or drying technology. While examining its construction plan of well-head power plants, PLN (Indonesia Power Company) is implementing a prefeasibility study of dewatering or drying technology which is economically viable in the power plants at home.


In Indonesia, the training of technicians in low rank coal utilization technology is mostly designed for technologies under development or under demonstration and is based on the concept that it is implemented for each individual technology.

- 33 -


a) Road Map

At present, there is no so-called road map illustrating how to advance the technology development and introduction at a national level. This is because the Indonesian government has a basic policy of “choosing and promoting technologies from the options in the market.” There is currently a gasification technology shown by tekMIRA as a road map to commercialization of feasible individual technology.

Figure 2.2 Road Map of Sumatra SNG Project

Year 2010 2011 2012 2013 2014 2015 2016 2017

Milestone

DevelopmentTime-Line

Start of FS Start of FEED EPC Contract Commercial Operation

Pre‐Study FS

FEEDEPC Phase


b) Future Policy

The Indonesian government has promoted development, demonstration and commercialization of low rank coal utilization technologies jointly with the organizations and companies of relevant countries and domestic companies. Some of them is at a standstill just before commercialization. In the future, it is necessary to advance toward commercialization with market cultivation. In addition, it is very likely that implementing the export regulations of low rank coal will help coal utilization technologies to be commercialized.

4) Thailand



Incentive measures (preferential tax rates and soft loan) for investments in high efficiency equipment are in place as an policy to introduce low rank coal utilization technologies in Thailand. But technology development is excluded from the incentive measures.


Imported general coal is mainly used in the industry. The consumption in 2010 of domestic low rank coal (brown coal) is 18 million tons, of which 16 million tons are for power generation and 1,900,000 tons for the cement industry. Low rank coal is expected to be less consumed in the future. The domestic brown coal resources that are consumed especially for power generation will be more and more used up. According to PDP2010, the consumption of brown coal for power generation in Thailand will begin to decrease in 2024, down to 6,900,000 tons in 2030.


Low rank coal (brown coal) consumed in Thailand is mostly used for local power generation

- 34 -

without being dewatered or dried.


The Thai government conducts no special training of technicians in low rank coal utilization technology.


a) Road Map

A road map is the "Clean Coal Development Plan (2012-2021)" prepared by the Department of Alternative Energy Development and Efficiency (DEDE).

Figure 2.3 Clean Coal Development Plan (2012-2021) in Thailand

12 13 14 15 16 17 18 19 20 21

Research/ development

Promote CCT

Publicity

Public Relation

Clean Coal Development Plan 2012 –2021

PromoteCCT

Coal to liquid

Underground coal gasification

Advanced Clean Coal Technology

Efficiency improvement of the emission reduction

Demonstration and promotion of synthesis fuel from coal

Rules and Regulations Improvement Demonstration and promotion of high efficiency technologies

with low emission pollutions

CCT project achievement publicity /create the network

Clean Coal Technology Training and Technology Transfer Project

Campaign to provide the right knowledge and proper understanding for the public


b) Future Measures

The biggest problem of coal utilization in Thailand including low rank coal is public acceptance. The Thai government believes that a three-way cooperation among government, industry and people is important to the promotion of public understanding of energy including coal. It plans to set up an organization called the “Bureau of Public Participation Coordination” within the Ministry of Energy as early as in 2012.

- 35 -

5) Korea



Although no special policy for low rank coal utilization has been developed in South Korea, the energy technology team of the Ministry of Knowledge Economy has been expressing interest in the import surge of low rank coal and its utilization technology in recent years. With the increase of demand for low rank coal in the future, the government support toward the development of its utilization technology will be strengthened.


South Korea imported about 40 million tons of low rank coal (sub-bituminous coal) in 2010 which was equivalent to approximately 40% of its total import. Most of imported low rank coal is used as blend coal for power generation. As future demand for low rank coal will increase in South Korea and its price will remain lower than general coal, the import of low rank coal is expected to rise. Moreover, although its practical use requires technology development, there is a need for low rank coal to manufacture syngas in the iron industry.


A commercial, economic and efficient dewatering technology of low rank coal remains to be established. Dewatering or drying technology development is shifting to pilot test and demonstration in line with the research and development program of the South Korean government.


The South Korean government conducts no special training of technicians in low rank coal utilization technology.


a) Road Map

The road map of the low rank coal technology whose development is being furthered in South Korea is as follows: (a) Road Map Of Dewatering Or Drying Technology Development And Introduction

Multi-stage fluidized bed drying (Korea Institute of Energy Research: KIER)

2012: 10 tons/day pilot plant started. 2013: 500 tons/day demonstration plant installed.

2018: 3,000 tons/day commercial plant constructed in Indonesia.

Oil adsorption technology spontaneous combustion drying (KIER)

2012: 5 tons/day pilot plant started.

2015: 500 tons/day demonstration plant installed. 2018: 3,000 tons/day commercial plant constructed in Indonesia.

Flash drying (KIER and SKI (SK Innovation Co.))

2011: Test with 1 ton /day started.

- 36 -

2012: Scale-up to 3 tons/day and pilot plant (combination with gasification furnace) started. 2013: 100 tons/day demonstration plant constructed in China.

(b) Road Map of Gasification Technology Development And Introduction

Moving fluidized bed gasification (SKI)

2010: Test with 1 ton /day started. 2013: 100 tons/day demonstration or commercial plant constructed in China.

Figure 2.4 Development Schedule of Moving Fluidized Bed Gasification Technology of SKI

Bench(0.05T/D)

July 2010

Pilot Plant(3T/D)

Oct. 2010 2013~

Demo or Commercial PlantPDP (>100T/D)


SNG process development by low rank coal gasification （POSCO）

Construction of a 5,500 tons/day gasification furnace licensed by ConocoPhillips was started in June 2011 with a scheduled commencement of commercial operation in 2014.

Figure 2.5 Road Map for SNG Project of POSCO

‘14‘12 ‘13‘11‘10

‘14.1Q ~ ‘14.2Q- Commission

-Procurement

-Construction

- Engineering

▪ PDP

▪ FEED

▪ Detail

‘10.2Q ~ ‘11.2Q

‘10.2Q ~ ‘11.3Q

’10.3Q ~ ’12.2Q

’11.4Q ~ ’13.2Q

’11.2Q ~ ’13.12


b) Future Measures

No commercial, economic and efficient dewatering technology of low rank coal has been established yet; shift to the pilot test and demonstration of dewatering or drying technology is planned with the development of the technology based on the research and development program of the South Korean government The South Korean government understands that mutual assistance for multilateral and bilateral R&D is necessary for the introduction and dissemination of low rank coal utilization technology in the Asian region and intends to support international cooperation.

- 37 -

6) Japan



The tax rate1 determined in the 2012 large package of tax revisions (increasing the tax rate step-by-step to 1,370 yen per a ton of coal by 2015) is to be relatively higher in heat quantity than that on low rank coal whose calorific value is low. Therefore, the users of coal will lose their motives to use low rank coal. However, the tax revenue is also being used for various technology development projects aiming at developments of technologies to use coal including low rank coal, so the introduction of and increase in the petroleum and coal tax will not necessarily become a political barrier. The Japanese government is proceeding with international technical cooperation and cooperation in promotion of CCT in order to promote the developments and introduction of technologies to use low rank coal under cooperation with coal-producing countries. To implement it, the government is providing incentives such as subsidies to entrepreneurs.


Indonesian sub-bituminous coal is increasingly used for blast furnace fuel (PCI) for power generation and steel industries, and fuel for industrial boilers of cement kilns, paper factories, etc. It is assumed that low rank coal with a high moisture content will be increasingly used in the future. However, it is necessary to adjust the conventional systems to use coal to low rank coal considering its high moisture content, high reactivity, high flammability and comminution characteristics different from that of the conventional one. Therefore, it is unlikely that the use of low rank coal will increase.


Japan is trying to develop technologies to use low rank coal and introduce them in countries producing low rank coal in order to stabilize the energy supply by producing exportable coal, gas, etc. To do so, Japan is promoting joint researches and commercialization plans for drying technologies, UBC, modification technologies of HWT-cs, ECOPRO, TIGAR, etc. in Australia and Indonesia.


Japanese companies involved in developments of technologies to use low rank coal are trying to pass on skills to and cultivate younger engineers by bringing them into teams led by engineers with rich experience toward acquisition of experienced young engineers.


a) Road Map

JCOAL created the Clean Coal Technologies Roadmap for Japan. This roadmap assumes that developments of technologies to use low rank coal such as lignite drying, gasification technologies of TIGAR and ECOPRO, and coal slurry will be promoted toward 2020.

1 It was determined to introduce the "tax against global warming" in 2011, which add 700 yen/ton to the petroleum and

coal tax.

- 38 -

Figure 2.6 JCOAL/CCT Roadmap

2010 2020 2030 2040 2050CO2Reduction ratio：25% CO2 Reduction ratio：80 %

Global environmental protection

Securing coal resources

Tightness of coking coal→Tightness of bituminous coal→An era of low rank coal

High efficient and hybrid generation・A-USC(700℃)・Lignite Drying・Gasification

(TIGAR,ECOPRO）＊HWT

・CMM・ECBM・ECMM

＊Post Combustion＊Oxyfuel (Callide)＊Pre-Combustion

Combustion & Gasification

Low rank coal

CCS

Coal gas

Steel making

Low carbon generation

・UA-USC(760℃)・CO2 Capture IGCC・Poly-Generation・Lignite Coal Gasification

＋CCS・Ad-Post Combustion・Ad-Pre-Combustion・Ad-Oxyfuel (Ad: Membrane

Separation)・Chemical looping

・ECBM

Zero-emissiongeneration

・ IGFC+CCS・A-IGCC+CCS・Hydrogen Production

Sustainability generation

・A-IGFC+CCS・Carbon Recycling System

Tightness of oil and natural gas

Changes of Electric power demand

Replacement of existing coal fired power station

Co-combustion of biomass and coal

Domestic circumstances of coal technology R&D

Commercialization of CCS

＜TechnologyDiffusion＞・USA－USC, IGCC

・Canada－CCS・EU－USC, IGCC・China－Eco-Coal Town, ECBM・Indonesia－UBC・Vietnam－USC(SC), CFBC・India－High Ash Coal Use, Coal Ash Use・Mongolia－Lignite Gasification, Coke Making

＜Demo for Int. ・Australia－Lignite Gasification + CCSCoop.＞・Indonesia－TIGAR, HWT, Coke Making from Lignite

＜Modification＞・India－High Ash Coal Use

International Markets for Japan’s CCT

Step up for development in 2010-2020

①Demo Test： A-USC, COURSE50TIGAR, ＥＣＯＰＲＯ

②PP Test： ECBM, Lignite Drying③Element Test： Chemical Looping

・The point of allow means commercialization・＊ means government support projects

・COURSE50(Hydrogen Reduction, Coke treatment)

Source: Material created by JCOAL

b) Future Measures

Japan is trying to develop technologies to use low rank coal and introduce them in countries producing low rank coal in order to stabilize the energy supply by producing exportable coal, gas, etc. To do so, Japan is promoting joint researches and commercialization plans for drying technologies, UBC, modification technologies of HWT-cs, ECOPRO, TIGAR, etc.

- 39 -

2.2 High Efficiency Coal-Fired Thermal Power Generation Technology

This section outlines the major factors (relevant policies, environmental measures, air pollution standards, electricity rates, electric power development plans, etc.) considered to influence the prevalence of high-efficiency coal-fired thermal power plants in WG countries. Also, we made a trial calculation of the cost of high-efficiency coal-fired thermal power generation.

1) Analysis of Factors Relating to Introduction

(1) Policies Relating to Introduction

The political matters of each country which seem to influence introduction of high-efficiency coal-fired thermal power generation are as follows.

a) Australia

Australia imposed a carbon tax of 23 Australian dollars/t-CO2 from July 2012 to June 2015, and decided to introduce a carbon-trading scheme after abolishing the tax system in July 2015. Australia has already decided to introduce a carbon tax and carbon-trading market, so the restraining incentive on the coal consumption may promote the prevalence of CCT. However, if the burden on coal-fired thermal power generation is appropriate considering other power sources such as gas-fired power generation, it will promote the prevalence of technologies of high-efficiency coal-fired thermal power generation, but if the burden is excessive, it may reduce the use of coal-fired power generation itself and promote the shift to gas-fired power generation or renewable energy. In Australia, various projects have been proceeded with under governmental support toward developments and commercialization of coal gasification and CCS technologies. Specific examples are as follows.

Integrated Drying Gasification Combined Cycle (IDGCC): There is a plan to construct the Latrobe IDGCC Demo Plant with 550MW of the maximum output in Latrobe, Victoria, which is a lignite production area.

Oxyfuel Combustion: The project of the Callide A coal-fired thermal power plant is ongoing under cooperation of CS Energy (Queensland State-managed power company), Japanese companies such as J-POWER, IHI, Mitsui & Co., Ltd., etc.

Post Combustion Capture (PCC): The pilot project is ongoing in Loy Lang, Munmorah, Tarong and Hazelwood.

b) China

China is positively promoting the domestication of advanced technologies to cultivate domestic industries while proceeding with the “Shangdayaxiao” policy, in which small-scale power plants are replaced with large-scale power plants, as a national policy. Adopting SC and USC is determined for the construction of large coal-fired thermal power plants.

c) India

In the 12th five-year plan (2012 to 2017), India clarifies the policy to use supercritical equipment for half of the coal-fired thermal power plants newly constructed as one of the five items concerning the low-carbon growth strategy. In the following 13th five-year plan (2017 to 2022), it

- 40 -

is planned to adopt a high-efficiency technology more advanced than supercritical ones for all of the coal-fired thermal power plants newly constructed.

d) Indonesia

Indonesia has not adopted a subsidy or tax break as an introduction support measure for technologies of high-efficiency coal-fired thermal power generation, but has been promoting high-efficiency coal-fired thermal power generation considering the global warming issue and necessity to save coal resources. Therefore, the adoption of supercritical pressure/ultra supercritical pressure has been set as a condition for bids for large coal-fired thermal power plants since 2008.

Table 2.1 Recent Bids for Coal-Fired Thermal Power Plants in Indonesia

Bid Year Plant Installed Capacity Bid Condition

2006 Suralaya 1 × 625 MW Subcritical pressure

or supercritical pressure

2006 Paiton 1 × 660 MW Subcritical pressure

or supercritical pressure

2008 Adipala 1 × 660 MW Supercritical pressure

2008 Cirebon IPP 1 × 660 MW Supercritical pressure

2011 Central Java IPP 2 × 1,000 MW Supercritical pressure

or ultra supercritical pressure

Not determined yet Indramayu 1 × 1,000 MW Ultra supercritical pressure

Source: Created based on the materials provided by WG members (from the materials for WG held on January 27, 2011)

e) Thailand

In the current electricity policy of Thailand, the dependence on gas in the power sources is high. So, Thailand is planning to diversify the power sources by reducing gas-fired thermal power generation and expanding power generation with coal, renewable energy and nuclear power from the viewpoint of energy security. Considering pollution problems caused by coal-fired thermal power generation in the past, the policy on planned construction of new coal-fired thermal power plants is to promote the use of high-efficiency power generation technologies.

f) Korea

The Korean government formulated the fifth electric power supply and demand plan2 in December 2010 and announced the policy to increase the shares of nuclear power generation and renewable energy as a main policy to reduce the CO2 emissions. Though the relative share of coal-fired thermal power generation will decrease, the total output is expected to increase from 24,205 MW in 2010 (the share in all power sources: 32.1%) to 31,445 MW in 2024 (the share: 27.9%), which is about 30% higher. Therefore, it will continue to play a major role in electricity supply in the country. In this situation, the government is supporting 70 to 90% of the research and development cost of basic technologies which contribute to improvements in efficiency of coal-fired thermal power generation. In addition, the Ministry of Knowledge Economy, the energy authority of the government, formulated the Green Energy Strategy Roadmap in May 2009 and announced the policy to support basic researches and demonstration tests of IGCC and CCS in order to realize a low carbon society and cultivate industries related to renewable energy.

2 The sixth electric power supply and demand plan is to be issued in December 2012.

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g) Japan

In the Basic Energy Plan of June 2010, Japan determined to improve efficiency and reduce carbon emissions through improvements in the efficiency of the coal-fired thermal power plants in operation and promotion of introduction of up-to-date equipment by replacement of biomass co-combustion and old coal-fired thermal power plants. As for the coal-fired thermal power plans to be constructed newly or updated, in principle, the CO2 emissions is to be reduced to an IGCC level for the time being. In addition, Japan is planning to develop and demonstrate advanced technologies such as IGCC and advanced ultra supercritical pressure (A-USC) through cooperation between the government and private sectors. Moreover, Japan will accelerate developments of technologies for commercialization of CCS by 2020 toward realization of coal-fired thermal power plants with no emission in the future as well as consider introduction of CCS Ready for coal-fired thermal power plants planned to be constructed newly. Also, Japan will consider introduction of CCS to coal-fired thermal power plants by 2030 assuming commercialization.

(2) Environmental Measure and Air Pollution Standards

Firstly, we show the air pollution standards of each country from the data of IEA Clean Coal Centreno. Compared to Japan and Korea, the standard values of each country are becoming stricter, but those of China, India, Indonesia and Thailand are still high.

Table 2.2 Air Pollution Standards of Each Country

SOx NOx Particulate

Australia n.a. < 30MW 800 mg/m3 > 30MW 350 mg/m3

80 mg/m3

China 400 to 1200 mg/m3 450 to 1500 mg/m3 50 to 200 mg/m3

India n.a. n.a. > 500MW 150 mg/m3 < 500MW 220 mg/m3

Indonesia 750 mg/m3 750 mg/m3 150 mg/m3

Thailand 180 to 320 ppm 200 to 350 ppm 80 to 120 mg/m3

Korea 228.8 to 286 mg/m3 164 to 307.5 mg/m3 20 to 40 mg/m3

Japan Average 0.04 ppm/day

and Average 0.1 ppm/hr

Average 0.04 to 0.06 ppm/day

Average 0.1 ppm/day and

Average 0.2 ppm/hr

Source: IEA Clean Coal Centre, Emission Standards, Thailand: WG member material, Japan: Ministry of Environment

The following describes the air pollution standards and measures against global warming in each country. Since coal emits a large amount of CO2, introduction of coal-fired thermal power generation needs a high-efficiency power generation technology with a high generating efficiency.

a) Australia

In July 2011, Australia announced the “Clean Energy Future Plan” and decided to set a reduction over 5% from the year of 2000 level as a CO2 emissions reduction target and raise the reduction target by 2050 from 60% to 80% compared to the 2000 level. The bill stipulating the specific measure passed the Parliament in November 2011. The specific measure is to firstly introduce a carbon tax (23 Australian dollars/t-CO2) from July 2012 to June 2015 and shift to a greendhouse gas emission trading scheme from July 2015.

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Table 2.3 Air Pollution Standards of Australia

SO2* NOx Particulate

n.a. <30 MW 800 mg/m3 >30 MW 350 mg/m3

80 mg/m3

Note: *Limit only for Tasmania: 7,200 mg/m3 Source: IEA Clean Coal Centre

b) China

In China, recently environmental regulations has been becoming more strict as seen in the imposition of an obligation to install desulfurization equipment in holding facilities, due to the increasing interest in environmental measures along with the increase in coal-fired thermal power plants.

Table 2.4 Air Pollution Standards of China

SOx NOx Particulate

400 to 1,200 mg/m3 450 to 1,500 mg/m3 50 to 200 mg/m3

Source: IEA Clean Coal Centre

In COP17, China announced a voluntary target framework to reduce the greenhouse gas emissions per GDP by 17% and 40 to 45% from the 2005 level by 2015 and 2020, respectively. Though there is no tax system which falls into the definition of the carbon tax, China is plannng to consider introduction of a carbon tax within the period of the 12th five-year plan. Environments for introduction of high-efficiency coal-fired thermal power generation is being prepared for environmental regulations and measures against global warming.

c) India

Most of the coal-fired thermal power plants in India have electric dust collectors, but only a few power plants adopt desulfurization/denitration equipment. India announced a voluntary target to reduce 20 to 25% of the greenhouse gas emissions per GDP by 2020 as a measure against global warming. As of now, neither carbon tax nor emission trade market has been introduced.

Table 2.5 Air Pollution Standards of India

SOx NOx Particulate

n.a n.a. > 500 MW 150 mg/m3 <500 MW 220 mg/m3


d) Indonesia

In all coal-fired thermal power plants in Indonesia, electric dust collectors are adopted, but desulfurization/denitration equipment has not become common yet. As stated above, there is a fixed target of a greenhouse gas reduction per GDP, but as of now neither carbon tax nor emission trade market has been adopted.

- 43 -

Table 2.6 Air Pollution Standards of Indonesia

SOx NOx Particulate

750 mg/m3 750 mg/m3 150 mg/m3

Source: IEA Clean Coal Centre. The data for NOx is from an interview with WG members.

e) Thailand

As stated below, Thailand is planning to reinforce regulations regarding the air pollution standards from now on, which encourages introduction of CCT. As for measures against global warming, Thailand signed the Kyoto Protocol on February 2, 1999 and ratified it on August 28, 2002, but she does not assume an obligation to reduce CO2 emissions since she is a developing country.

Table 2.7 Air Pollution Standards of Thailand

SO2 NOx Particulate

Existing coal-fired thermal power plants 320 ppmvd 350 ppmvd 120 mg/m3

Newly-constructed coal-fired thermal power plants

180 ppmvd 200 ppmvd 80 mg/m3

Gheco-One 53 ppmvd 56 ppmvd 55 mg/m3

High-efficiency coal-fired thermal power plants run by EGAT

144 ppmvd 72 ppmvd 13 mg/m3

Note; *ppmvd: part per million by volume, dry basis Source: WG material (Mr. Mochamad Prayudianto, February 2012)

f) Korea

The air pollution standards of Korea are strict among those of surveyed countries, so desulfurization/denitration equipment and electric dust collectors are widespread and enough environmental measures have been implemented. In addition, Korea has set a GHG emission reduction target of 30% compared to BAU toward 2020. As of February 2012, no carbon tax has been introduced, but following the enactment of the "Low Carbon and Green Growth Act" in April 2010, Korea created a guideline toward introduction of domestic emission trading by cap-and-trade by the end of that year.

Table 2.8 Air Pollution Standards of korea

SO2 NOx Particulate

（>500MWe）Existing coal-fired

thermal power plants

until 2004 since 2005

429mg/m3 / 700 ppm 286mg/m3 / 100 ppm

717.5mg/m3 / 350 ppm 307.5mg/m3 / 150 ppm

50 mg/m3

40 mg/m3

Newly-constructed coal-fired thermal

power plants

until 2004 since 2005

343.2mg/m3 / 120 ppm 228.8mg/m3 / 80 ppm

- 164mg/m3 / 80 ppm

50 mg/m3

20 mg/m3


g) Japan

The air pollution standard values of Japan are strict compared to the global standard, and power plants also conclude agreements with the municipalities in which they are located, different from the standard values specified by the country. In addition, the Kyoto Protocol imposes Japan an obligation to reduce 6% of the greenhouse gas emissions compared to 1990, and Japan announced

- 44 -

an international commitment to reduce 25% by 2020. Japan has already imposed the petroleum and coal tax on the purchase volume of fuel; the tax rate of coal is 700 yen/t. The emission trade market is at the trial stage.

Table 2.9 Air Pollution Standards of Japan

SOx NOx Particulate

Daily average 0.04 ppm Hourly average 0.1ppm

Daily average 0.04 to 0.06 ppm

Daily average 0.1 ppm Hourly average 0.2 ppm

Source: Ministry of the Environment

As of February 2012, the Gheco-One Power Plant which adopts the supercritical pressure technology for the first time in Japan started a test operation. In the Thailand Power Development Plan 2010-2030 (PDP2010) announced in April 2010, it showed a plan to introduce nine 800-MW-scale supercritical/supercritical pressure plants from 2019 to 2030.

(2) Electricity Rate

Firstly, Table 2.9 shows the electric rate in each country. The electric rates in the countries are cheaper than that of Japan. Some countries are compensating for them by subsidies which discourage introduction of high-efficiency coal-fires thermal power plants with a high construction cost.

Table 2.10 Electric Rate in Each Country

Power purchase system Price regulation Price level

Australia Compete at wholesale market No Sidney, 2010 General : 0.19 $/kWh Industrial : 0.19 $/kWh

China

Unbundled T&D company buy electricity from generation co. No competition in power generation

Yes Beijing, 2010 General : 0.07 $/kWh Industrial : 0.12 $/kWh

India

State authority buy electricity from generation company and distribute it to end consumer. Long term PPA (Power Purchase Agreement).

Yes (below cost: some sector)

New Delhi, 2010 General : 0.06 - 0.11 $/kWh Industrial : 0.10 $/kWh

Indonesia PLN buy electricity from IPP. Long term PPA.

Yes (below cost) Jakarta, 2010 General : 0.09 $/kWh Industrial : 0.08 $/kWh

Thailand EGAT is dominant. EGAT buy electricity from IPP.

Yes Bangkok, 2010 General : 0.0.06 – 0.10 $/kWhIndustrial : 0.12 $/kWh

Korea KEPCO group is dominant. KEPCO buy electricity from IPP and KPX.

Wholesale :No (KPX) Retail :Yes (below cost)

Seoul, 2010 General : 0.083 $/kWh Industrial : 0.058 $/kWh

Japan

Vertically integrated power companies are dominant. PPS: Sell directly to end customer IPP: Sell to power company

>50kW :No <50kW :Yes (cost+)

2010 General : 0.232 $/kWh Industrial : 0.154 $/kWh JEPX spot : 0.107$/kWh

Source: Australia, China, India, Indonesia, Thailand, Korea - Survey of Investment-Related Cost Comparison in Major Cities and Regions in Asia (Japan External Trade Organization, April 2011) Japan - IEA Energy Tax and Price

- 45 -

a) Australia

Electricity has been fully liberalized in NSW, Victoria, South Australia, QLD, Tasmania and Capital Territory. In Australia, all electricity generated is traded in wholesale markets, the wholesale price, not the retail price, is the key for the electricity rate which provides an indication of introduction of high-efficiency coal-fired thermal power generation. The wholesale price in 2010 is low; 0.028 Australian dollars/kWh.

Table 2.11 Electric Rate of Australia (Sydney)

US dollar Local currency

(Australian dollar)

Industrial electricity rate Basic monthly rate: 26.60/kW 1kWh rate: 0.19

Basic monthly rate: 26.70/kW 1kWh rate: 0.19

General electricity rate Basic monthly rate: 14.14/kW 1kWh rate: 0.19

Basic monthly rate: 14.19/kW 1kWh rate: 0.19

Currency rate 1 dollar = 1.00361 Australian dollars Inter-bank rate (2011/1/14)

Source: Survey of Investment-Related Cost Comparison in Major Cities and Regions in Asia (Japan External Trade Organization, April 2011)

b) China

China adopts a regulated rate system for both wholesale and retail. According to the "Survey of Investment-Related Cost Comparison in Major Cities and Regions in Asia" of the Japan External Trade Organization (April 2011), though there are some differences among regions, the electricity rate of Beijing in 2010 was 0.07 dollars/kWh for domestic use and 0.12 dollars/kWh for industrial use. This is relatively high among the surveyed countries. In addition, recently, a negative spread phenomenon with the wholesale rate has been observed due to increasing price of domestic coal, so if a price hike is admitted in the future, introduction of high-efficiency equipment will become easier and it will lead to incentive to reduce fuel consumption.

Table 2.12 Electric Rate of China (Beijing)


(RMB)

Industrial electricity rate Basic monthly rate: none 1kWh rate: 0.12

Basic monthly rate: none 1kWh rate: 0.781

General electricity rate Basic monthly rate: none 1kWh rate: 0.07

Basic monthly rate: none 1kWh rate: 0.4883

Currency rate 1 dollar = 6.5896 RMB Inter-bank rate (2011/1/14)


c) India

In India, the electricity rate is politically kept low and it has been difficult to invest in electric power business. Especially the support for the household and agricultural sectors is strong and the electricity rate is kept low.

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Table 2.13 Electric Rate of India (New Delhi)

US dollar Local currency (Indian rupee)

Industrial electricity rate Basic monthly rate: 1.10/kW 1kWh rate: 0.10 (from Apr. to Sep.) 0.10 (from Oct. to Mar.)

Basic monthly rate: 50/kW 1kWh rate: 4.62 (from Apr. to Sep.) 4.52 (from Oct. to Mar.)

General electricity rate Basic monthly rate: 0.26/kW 1kWh rate: 0.06 - 0.11

Basic monthly rate: 12/kW 1kWh rate: 2.57 - 4.88

Currency rate 1 dollar = 45.30 Indian rupee Inter-bank rate (2011/1/14)


d) Indonesia

Its low electricity rate leads to insufficient funds for investment and influences the selection of power generation technologies. The electricity rate is politically kept low for social security, but the high initial cost of introduction of high-efficiency coal-fired thermal power generation may raise the electricity rate. The regulating agency recognizes that the subsidies putting pressure on the finance should be reduced or abolished in the future, so if the people's living is improved along with economic growth, the electricity rate may be set to an appropriate standard. According to the Energy Prices and Taxes of IEA, the electricity rate in 2010 is 0.06 dollars/kWh for domestic use and 0.07 dollars/kWh for industrial use.

Table 2.14 Electric Rate of Indonesia (Jakarta)


(Rupiah)

Industrial electricity rate Basic monthly rate: - 1kWh rate: 0.08

Basic monthly rate: - 1kWh rate: 680

General electricity rate Basic monthly rate: - 1kWh rate: 0.09

Basic monthly rate: - 1kWh rate: 795

Currency rate 1 dollar = 9,064 Rupiah Inter-bank rate (2011/1/14)


e) Thailand

Electricity Generating Authority of Thailand (EGAT) acquires electricity from its own power plants, IPP, etc. and distributes it to power distribution companies and bulk power consumers. According to the Energy Prices and Taxes of IEA, the electricity rate in 2010 is 0.07 dollars/kWh for industrial use and 0.11 dollars/kWh for domestic use.

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Table 2.15 Electric Rate of Thialand (Bangkok)


(Baht)

Industrial electricity rate Basic monthly rate: 7.48 1kWh rate: 0.12

Basic monthly rate: 228 1kWh rate: 3.62

General electricity rate

Basic monthly rate: 1.34 1kWh rate:

1 - 150 kWh: 0.06 151 - 400 : 0.09 401 - : 0.10

Basic monthly rate: 41 1 - 150 kWh: 1.80 151 - 400 : 2.78 401 - : 2.98

Currency rate 1 dollar = 30.489 Baht Inter-bank rate (2011/1/14)


f) Korea

Though the fully distributed cost method is adopted for the rate system, so far the government has been keeping the electricity rate low as a part of social security system, which has made an increase in the debt of KEPCO. A further increase in the electricity rate will be unavoidable due to the future electric industry restructuring and the fuel cost staying at a high level. The government is planning to introduce a rate structure reflecting the costs in the future.

Table 2.16 Electric Rate of Korea (Seoul)


(Won)

Industrial electricity rate Basic monthly rate: 4.14 1kWh rate: 0.06

Basic monthly rate: 4,610 1kWh rate: 62

General electricity rate Basic monthly rate: 4.74 1kWh rate: 0.07

Basic monthly rate: 5,280 1kWh rate: 75

Currency rate 1 dollar = 1,114 Won Inter-bank rate (2011/1/14)


g) Japan

The Japanese electricity market has been monopolized regionally, but stepwise retail liberalization has been proceeded with, and now consumers of over 50 kW are subject to liberalization. This measure creates potential competitiveness though suppliers are not changing frequently, which led to a little less than 20% decrease in the rate after liberalization of the electricity rate. According to the Energy Prices and Taxes of IEA, the electricity rate in 2010 is 0.154 dollars/kWh for industrial use and 0.232 dollars/kWh for domestic use.

2) Development and Introduction Plan

(1) Australia

a) Electric Power Development Plan

The electric demand of Australia is expected to increase from 247 TWh in 2007-08 to 366 TWh in

- 48 -

2029-30, about 1.5 times higher (1.8% increase per year). The increase in the demand will be covered by gas-fired thermal power generation and renewable energy (excluding hydropower).

Table 2.17 Prediction of Electricity Demand in Australia (2029-30)

Source: ABARE web site “Australian Energy Resources Assessment”

b) Position of Coal-Fired Thermal Power Generation

In Australia, the current share of coal-fired thermal power generation is high, about 76%. On the other hand, as stated above, gas-fired thermal power generation and renewable energy is expected to increase from now on to achieve the GHG emission reduction target, and the share of the electric energy from coal-fired thermal power plant in 2029-30 is expected to decrease to about 43%. However, the future position of coal-fired thermal power generation seems to depend on the comparison between the generation cost of using coal with a low carbon technology and that of renewable energy. As of now, the cost is not clear and influenced by the future political trend.

Figure 2.7 Prediction of Coal-Fired Thermal Power Generation in Australia

Source: Materials provided by WG members (from the materials of WG held on February 27, 2012)

- 49 -

c) Technology Development Trend

Australia is actively promoting CCS and playing a leading role in promotion of global introduction of CCS. The reasons are as follows and the ongoing demonstration projects in Australia are shown in the table. In this situation, developments of oxygen burning and lignite IDGCC have been developed for high-efficiency power generation.

Currently, about 80% of electricity supply is acquired from coal-fired thermal power generation.

32% of emissions in Australia are from coal-fired thermal power generation.

The land and sea storage capabilities are excellent.

Table 2.18 Demonstration Projects in Australia (2030)


(2) China


Recently, the electricity demand has expanded drastically and the total generated energy is 4.2 trillion kWh (2010), over four times higher than that of Japan. The electric power is mainly acquired from thermal power generation and the installed capacity of thermal power generation is 0.71 billion kW, accounting for three fourths of the total the installed capacity of power generation at the end of 2010 (0.966 billion kW). Most of the thermal power plants are using coal, which causes air pollution. Efforts are expected to proceed further in the 12th five-year plan started from 2011 (2011 to 2015). It is estimated that the electricity demand will increase by 8.5%/year and the generated energy and the installed capacity of power generation will be 6.27 trillion kWh and 1.4 billion kW, respectively, as of 2015.

- 50 -

Figure 2.8 China's Power Plan (the 12th five-year plan, 2015)

Nuclearover 40

million kWWind

over 100million kW

Hydro290 million kW

(20%)

Gas30 million kW

Coal933 million kW

(65%)

Source: Asiam HP


In China, the use of nuclear power generation, natural gas and renewable energy is expected to increase, but coal-fired thermal power generation will continue to perform the central role in electricity supply even in the future.


China is promoting domestication of technologies receiving licensing concerning high-efficiency coal-fired thermal power generation from Japanese and European companies. As a result, China has come to be able to produce ultra supercritical coal-fired thermal power plants of 1,000 MW at home. From now on, China is planning to export cost-competitive SC/USC power plants and expected to play a role to promote high-efficiency power generation technologies in Asian countries. It is a reason for the low price of Chinese plants that China is trying to drastically reduce the cost by standardizing the specifications. However, there will be no significant problem in the stage of promoting standardized plants which received licensing, but the development of a technology to handle various types of coal is a challenge for the future and some software problems also remain such as operation and maintenance management. In addition, though the price is excellent, the durability of the plants, and after-sales service, etc. are yet to be evaluated.

(3) India


In India, the energy and electricity demands are drastically increasing along with its rapid economic growth. The Planning Commission which formulates five-year plans expects that the electricity demand will become five to seven times larger by 2030 than that in 2006. On the other hand, electric power developments are delayed to a large extent due to problems such as difficulties in funding, procurement of fuel and site acquisition, and complexity of associated procedures. In these ten years, the annual average rate of increase in the installed capacity of power generation has been staying at 5% and lagging behind the rapid economic growth. The 12th five-year plan to be started from April 2012 sets the electric power development target of 0.1 billion kW by the end of FY2016 (2016-2017).

- 51 -


Coal-fired thermal power generation is the main electric supplier in India. Its coal reserve is 267.2 billion tons (BP statistics), which accounts for about 10% of the world total, and coal-fired thermal power generation covers 70% of electricity supply. However, the ash-content is high, about 40%, so the quality is not good. Moreover, due to the increase in the energy and electricity demands associated with the recent rapid economic growth, the coal demand cannot be covered only by domestic coal and depends on imports. Even in the future, coal-fired thermal power generation will continue to be the main electricity source in India, and the “Integrated Energy Policy” (2006) of the government, which shows the energy policy toward 2030, specifies the plan to continue to use coal as the main electricity source even in 2030.


In developments of coal-fired thermal power generation, currently the plan called the “Ultra Mega Power Project (UMPP)” is ongoing, in which 16 large-scale coal-fired thermal power plants with the total capacity of 4 million kW are to be constructed. However, the overall progress is long-delayed due to delays in procedures such as land acquisition, fuel transport and environmental permission as well as difficulties in funding, etc. occurring in many cases. The electric power development roadmap regarding coal-fired thermal power generation in India is as follows.

Will not construct a subcritical pressure power plant after 2010.

Start operation of USC plants over 600°C by 2016.

Start operation of USC plants (A-USC) over 700°C by 2020.

Place IGCC based on Indian domestic coal by 2014.

Achieve a total IGCC power generation capacity of 15,000 MW by 2032.

Achieve 20,000 MW of a renewable energy power generation capacity by 2032.

Reduce 25% of carbon emissions by 2032.

(4) Indonesia


The following figure shows the Electric Power Development Plan of Indonesia. The plan is to increase the generation capacity by 5,400 MW/year on average and achieve 53,509 MW (PLN: 31,676 MW, IPP: 21,834 MW) by 2020.

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Figure 2.9 Power Plant Capacity Development Plan (2011-2020)



The “Rencana Umum Penyediaan Tenaga Listrik 2010-2019” enacted in the Power Supply Plan of Indonesia (Decision by the Minister of Energy and Mineral Resources No. 2026/July 8, 2010) predicts the electricity demand in 2019 will be 327 TWh and plans to newly develop generating equipment of 55.484 million kW from 2010 to 2019. Coal-fired thermal power plants account for a little less than 60% of the total equipment, 32.697 million kW. It is planned to construct large high-efficiency coal-fired thermal power plants using low rank coal which occurs domestically in affluence is planned.

Figure 2.10 Power Supply Plan of Indonesia


- 53 -


In Indonesia, coal-fired thermal power plants using the SC technology has already been constructed increasingly and constructions of two USC coal-fired thermal power plants of 1,000 MW are planned. In addition, CCT is being promoted toward introduction of IGCC in the 2020s.

Figure 2.11 PLN’s Perspective on Energy Technologies Roadmap


(5) Thailand


In the Thailand Power Development Plan 2010-2030 (PDP2010), Thailand is planning to increase the ratios of coal-fired thermal power generation and renewable energy and introduce nuclear power generation in order to revise the electricity source structure dominated by gas from the viewpoint of energy security. The PDP2010 is being reviewed now and the revised version is to be announced in the spring of 2012.

- 54 -

Figure 2.12 Thailand Power Development Plan 2010-2030（PDP2010）

0

40,000

80,000

120,000

160,000

200,000

240,000

280,000

320,000

360,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Diesel

Renewable

Heavy Oil

Power Import

Natural Gas

Coal

Lignite

Nuclear

Hydro

GWh

Yr

68% 66% 64% 64% 64% 62% 59% 59%59%

58%54%

49%48%

47%46%

45%43% 44%

39% 39%39%

8% 9% 10% 10% 11% 12% 11% 11% 10% 11% 12%13% 13%

15% 14% 13% 17% 16%19% 20% 21%

11% 11% 10% 10% 9% 9% 9% 8% 8% 8%7%

7% 7% 6%6%

5% 4% 4%4%

6%6%

6%6%

6%6%

6%6%

6%6%

6%6%

6%

6%6%

6% 6% 8% 11% 10% 10% 12% 11% 11%6%

14%14% 15%

16%17%

17%17%

18%18%

18%18%

19% 19%

13%13%

7%7%

6% 8%

7%

5%5%

5%6%

PDP2010PDP2010

3% 2%

3%

Source: Materials provided by WG members (from the materials of WG held on January 27, 2011)


Thailand is planning to construct coal-fired thermal power plants to diversify the electricity sources from the viewpoint of energy security. However, due to the past pollution problems caused by coal-fired thermal power generation, the people strongly dislike coal, so acquisition of the acceptance of the local citizens (Public Acceptance) is a challenge in construction of coal-fired thermal power plants.


As for planned construction of new coal-fired thermal power plants in the future, Thailand is planned to use high-efficiency power generation technologies to improve the generation efficiency and reduce the environmental load. SC or USC coal-fired thermal power generation are planned to be introduced and nine power plants with a capacity of 800 MW are to be constructed from 2019 to 2030. For coal, sub-bituminous coal of 5,500 kcal/kg (GAR) is to be exported and used.

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Table 2.19 Coal-fired Power Plants in Thailand (Existing and Planned Plants)


(6) Korea

The following table shows the research and development roadmap of CCT in Korea. The technologies to be developed intensively are (i) improvement in efficiency, (ii) CCT (reduction of CO2: IGCC, CCS, CFB, Oxyfuel), (iii) cost reduction, (iv) extension of the power plant lifecycle, etc.

Figure 2.13 Technology Roadmap of Korea (R&D)

Source: Materials provided to WG members (from the materials of WG held on February 27, 2012)

(7) Japan

Japan led the world in practical application of 600°C-class USC and achieved 42% of the generation efficiency (transmission end, HHV). The generation efficiency of the latest USC (Maizuru power plant Unit 2) has become 43%. The “Cool Earth Innovative Energy Technology Program--Technology Development Roadmap” announced by the Ministry of Economy, Trade and Industry in March 2008 is a technology

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development roadmap concerning high-efficiency coal-fired thermal power generation. According to it, the development targets of each high-efficiency power generation technology are as follows.

Advanced ultra supercritical pressure power generation (A-USC): Developing 700°C-class A-USC and aiming to achieve 46% of the generation efficiency by around 2015 and 48% by around 2020.

Integrated gasification combined cycle (IGCC): Aiming to achieve 46% of the generation efficiency by around 2010 and 48% by around 2015. In addition, Japan announced a target to achieve 50% of the generation efficiency in 2025 and 57% after 2030 by developing a 1,700°C-class turbine.

Integrated coal gasification fuel cell combined cycle (IGFC): Aiming to achieve 55% of the generation efficiency in 2025 and 65% in the longer term.

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3. Future Policy toward Introduction and Promotion of CCT

Sharing information between ERIA member countries (technology-developing countries and technology-introducing countries) seems to be an important factor to encourage technology developments, introduction and promotion of CCT. As stated above, with regard to the major coal-producing/consuming countries among ERIA-related countries, we organized 1) situation for the developments and promotion of CCT and future policy, 2) barriers disturbing the developments and promotion of CCT, and 3) major factors to promote the developments and promotion of CCT and plans for developments, introduction and promotion. In addition to sharing of information mentioned above, the developments of technologies to utilize low rank coal seem to be streamlined by a) optimization and standardization of analysis methods for low rank coal which occurs in each country and 2) sharing properties of low rank coal. It also seems important to share the developmental status of utilization technologies for low rank coal and high-efficiency coal-fired thermal power generation. This chapter outlines the current status of these factors.

3.1 Optimization and Standardization of Property Analysis of Low Rank Coal

In using low rank coal with a high moisture content and developing utilization technologies for low rank coal under the cooperation between each countries, it is desirable to grasp the properties of coal existing in ERIA-related countries by a common analysis method and to share the data. Therefore, in this section, we explore analysis methods in the related countries, especially the methods suitable for low rank coal with a high moisture content, and discuss necessity of standardization.

1) Analysis Methods in Each WG Member Countries

Most of the current analysis methods including those in the WG member countries are for bituminous coal, etc. traded internationally, and there is almost no standardized analysis method for low rank coal like lignite which can be used at home. However, in some of the WG member countries, standards have been established and the lignite standards of ISO are applied for the analysis of the moisture content, volatile portions, etc. from the properties of lignite. The analysis methods for low rank coal in each county are as follows. The underlined analysis methods in the table for the coal analysis methods in each country are standardized for lignite.

(1) Australia

Though the Australian Standard (AS) is used for the coal analysis in Australia, the analysis method for the properties of lignite considered is standardized separately from the analysis of bituminous coal, etc. because Australia has and is using affluent lignite resources in Victoria. Differences from the analysis methods for bituminous coal, etc. are moisture content and volatile portions. The moisture content of bituminous coal is dried in air but that of lignite is dried in a nitrogen atmosphere. The volatile portions of bituminous coal is measured in a single step using a furnace of 900°C but that of lignite with a high volatile content is measured in two steps using furnaces of 400°C and 900°C.

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Table 3.1 Main Coal Analysis Methods in Australia

Sample Methods Sample Methods

Sampling/Preparation AS4264.3 Ultimate analysis (C,H) AS2434.6

Total moisture AS2434.1 Ultimate analysis (N) AS2434.6

Moisture AS2434.7 Total sulfur AS2434.6

Ash AS2434.8 Ash analysis AS1038.14

Volatile matter AS2434.2 Ash fusion temperature AS1038.15

Heating value AS1038.5 HGI AS1038.2

Note: The underlined standards are standardized for lignite.

(2) China

In China, the coal analysis is based on the Chinese National Standards (GB). The standards for the analysis of moisture content and elements stipulate the analysis method for lignite, etc. The standards dedicated to lignite include benzene solubles, humic acid content, etc. but there is no standard dedicated to the property analysis.

Table 3.2 Main Coal Analysis Methods in China


Sampling/Preparation GB/T481,GB474 Ultimate analysis (C,H) GB/T476

Total moisture GB/T211 Ultimate analysis (N) GB/T476

Moisture GB/T212 Total sulfur GB/T214

Ash GB/T212 Ash analysis GB/T1574

Volatile matter GB/T212 Ash fusion temperature GB/T219

Heating value GB/T213 HGI GB/T


(3) Indonesia

For the coal analysis in Indonesia, the international standard, ISO (International Organization for Standardization), and American standard, ASTM, are used. ISO has standards dedicated to lignite, but the analysis methods presented by the Indonesian WG members are for all kind of coal and do not include any standards dedicated to lignite.

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Table 3.3 Main Coal Analysis Methods in Indonesia


Sampling/Preparation ISO1988

ASTMD2013 Ultimate analysis (C,H)

ISO625 ASTMD3178

Total moisture ISO11722

ASTMD3173 Ultimate analysis (N)

ISO332 ASTMD3179

Moisture ISO11722

ASTMD3173 Total sulfur ASTMD4239

Ash ISO1171

ASTMD3174 Ash analysis -

Volatile matter ISO562 Ash fusion temperatureISO5074

ASTMD409

Heating value ASTMD5865 HGI ISO5074

ASTMD409

Source: Materials provided by WG members

(4) Thailand

In Thailand, the Thai Industrial Standards Institute which is under the control of the Ministry of Industry is proceeding establishment of the Thai Industrial Standard (TIS), but there is almost no standard for coal-related analyses, etc. Therefore, ASTM is used in Thailand, but ASTM has almost no standard dedicated to lignite.

Table 3.4 Main Coal Analysis Methods in Thailand (ASTM is adopted)


Sampling/Preparation ASTMD346 ASTMD2013

Ultimate analysis (C,H) ASTMD5373

Total moisture ASTMD3302 Ultimate analysis (N) ASTMD5373

Moisture ASTMD3173 Total sulfur ASTMD3177 ASTMD4239

Ash ASTMD3174 Ash analysis ASTMD2795

Volatile matter ASTMD3175 Ash fusion temperature ASTMD1857

Heating value ASTMD5865 HGI ASTMD409

(5) Korea

The coal analysis in Korea is standardized by the Korean Standard (KS). There are Korean standards for steam coal such as bituminous coal, and coking coal, but the standard for lignite is a Korean one adopting ISO.

Table 3.5 Main Coal Analysis Methods in Korea


Sampling/Preparation KS E ISO5069-1,2 Ultimate analysis (C,H) -

Total moisture KS E ISO589 Ultimate analysis (N) KS E ISO333

Moisture KS E ISO1015/5068 Total sulfur KS E ISO351

Ash KS E3705 Ash analysis KS E3716

Volatile matter KS E ISO5071-1 Ash fusion temperature KS E3716

Heating value KS E3707 HGI KS E ISO5074


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(6) Japan

The method specified by JIS is used for the coal analysis in Japan, but there is no standard dedicated to lignite. In Japan, lignite is currently not used for an industrial purpose except research and development, so it has not been standardized. However, in promoting the compatibility between JIS and ISO, the lignite analysis method of ISO for moisture content and volatile portions is incorporated into the current standard.

Table 3.6 Main Coal Analysis Methods in Japan


Sampling/Preparation JIS M8811 Ultimate analysis (C,H) JIS M8813／M8819

Total moisture JIS M8820 Ultimate analysis (N) JIS M8813／M8819

Moisture JIS M8812 Total sulfur JIS M8813／M8819

Ash JIS M8812 Ash analysis JIS M8815

Volatile matter JIS M8812 Ash fusion temperature JIS M8801

Heating value JIS M8814 HGI JIS M8801


(7) ISO

Among the ERIA-related countries, only Australia which has affluent domestic lignite resources has established a standard dedicated to lignite and most of the other countries apply the lignite standard of ISO. For reference, we show the main coal analysis methods of ISO.

Table 3.7 Main Coal Analysis Methods of ISO


Sampling/Preparation ISO5069-1,2 Ultimate analysis (C,H) ISO609/625/29541

Total moisture ISO5068-1 Ultimate analysis (N) ISO29541

Moisture ISO5068-1,2 Total sulfur ISO334/351/19579

Ash ISO1171 Ash analysis -

Volatile matter ISO5071-1 Ash fusion temperature ISO540

Heating value ISO1928 HGI ISO5074


2) Necessity of Optimization and Standardization

(1) Comparison of Lignite Analysis Methods

It is moisture that is pointed out most frequently as a challenge and problem in the lignite analysis. Since the total moisture of lignite is 40% or more, the results are expected to vary according to differences in the analysis devices and measurement conditions. We compared the moisture analysis methods for the analysis standards adopted in the countries (Table 3.8) and found that ISO and AS are almost the same in method details and ASTM and GB are also similar, but Japan uses different devices from those of the other standards. However, the temperatures and grain sizes which are important in moisture measurements are almost the same, so it is estimated that acquired results are not that different.

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Table 3.8 Moisture Analysis Method of Each Standard

ISO Australia ASTM China Japan

ISO 5068-2AS 2434.7

(indirect method)ASTM D3173 GB/T 212 JIS M8812

Brown coal and lignite Lower rank coal Coal and Coke All coal Low rank coal

Standard ISO 5069-2 AS 4264.3 D2013 GB/T 474 JIS M8811

Coal sample size < 0.212mm < 0.212mm < 0.250mm < 0.2mm < 0.250mm

Atmosphere air drying air drying air drying air drying air drying

Apparatus/Oven same as ISO Similar to ASTM

Atmosphere Dry N2 Dry N2 Dry air Dry N2 He

Sample weight 1～2g 1g 1g 1g 1g

Heating temperature 105～110℃ 105～110℃ 104～110℃ 105～110℃ 107℃±2℃

Heating time > 3hr > 3hr 1hrBituminous: 1.5hr

Lignite / anthracite: 2hr1hr

Repeatability 0.30%　Moisture <5%： 0.10% 　 ≧5%： 0.15%

0.09+0.01X%X：average of two single

test results

　Moisture <5.0%： 0.20% 　 5.0-10.0%： 0.30% 　　　>10.0%： 0.30%

　Moisture <5.0%： 0.20% 　 5.1-10.0%： 0.30% 　 10.1-16.0%： 0.30% 　 >16.1%： 0.40%

Standard

Applicable coal

Samplepreparation

method

Analyticalmethod

Source: Materials created by JCOAL

Lignite has porous structure; the moisture content of lignite is composed of the moisture retained inside coal and on the surface of lignite or between particles as shown in Figure 3.1. The moisture on the surface and between particles changes depending on the temperature and humidity of the atmosphere, so the moisture of lignite varies according to the environment and conditions of measurements. The coal moisture measurements are for the total moisture, which includes both internal and surface moisture and the inherent moisture, which is measured after preparation in the air-dried state. The inherent moisture is analyzed by samples prepared in a certain condition, so there are little differences in the results. On the other hand, as for the total moisture measurement, sampling and sample preparation methods for analyses are standardized, but it is expected that the measurement results vary according to the increase or decrease in the surface moisture caused by the preparation conditions from sampling to measurement.

Figure 3.1 Moisture Content in Lignite

Source: Materials provided by WG members

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(2) Necessity of Optimization and Standardization

The result of study on analyses and sample preparations which are pointed as challenges in the analysis of low rank coal (especially lignite), compared in the previous section, indicates that the analysis methods for the moisture content and sample preparation methods for analysis are standardized by ISO and each country’s standards, and there is no big difference in the method contents. It is estimated that the differences and variations for the total moisture among different analysis sites are influenced by conditions such as the atmosphere at the time of sample preparations, etc. Therefore, it will not be necessarily getting consistent moisture measurement results by unifying the analysis and sample preparation methods which have already been standardized in each country, among related countries for optimization and standardization of the method. The analysis test methods in each country may be standardized or based on ISO, the international standard. The international common standard has already been being established by ISO. From these, there would be little necessity for optimization inside the ERIA-related countries.

3.2 Properties of Low Rank Coal and Its Sharing

It is desirable to share the properties of the low rank coal in each country in order to utilize low rank coal and develop technologies to utilize it through cooperation among each country from now on. However, as of now, due to its limited utilization, the information on low rank coal is not shared. Sharing the properties of low rank coal requires organization of collected data, databasing, and establishment of an organization and system for sharing in ERIA-related countries. However, it is a big challenge to determine what kind of scheme is to be used and who will take the lead in implementation of the system. It is a possibility to establish the organization in ERIA. It is also possible to implement it in APP, GSEP or APEC, frameworks in which each country is currently proceeding with in cooperation. In addition to collection of property data and databasing, it is desirable to establish a coal bank for low rank coal with which property data and samples necessary for developments of utilization technologies can be used, if necessary, by collecting and managing samples from each country for preservation, in the future. As of January 2012, the coal bank of the National Institute of Advanced Industrial Science and Technology in Japan has 112 types of coal samples and six types of coal ash samples, and data of industry analyses, element analyses, organization analyses, ash property analyses, etc. as property data, and published some of the data. However, there are few lignite samples since most of coal technology developments in Japan so far have been dedicated to high rank coals. In the future, it may become useful to establish a system similar to this coal bank in the cooperation framework of the related countries. Even if the disclosure and distribution of the data and samples accumulated are limited so far, it may be possible to effectively construct a coal bank by the use of the equipment and know-how of sample preparation. The current scope of low rank coal covers low carbonized sub-bituminous coal and lignite. In the future, the coal bank can be improved by including low rank coal such as high-ash coal and high-sulfur coal in the scope.

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3.3 Organization of Technical Information and Its Sharing

In order to encourage the developments and promotion of CCT (utilization technologies for low rank coal and technologies of high-efficiency coal-fired thermal power generation) in ERIA-related countries, it is desirable to share information in each country regarding what kinds of technologies have been and are being developed, to what extent the developments have proceeded, etc. In addition, sharing of information would contribute to creation of the development and introduction roadmap in each country. This report briefly describes the developmental status of low rank coal “1.1 Low Rank Coal Utilization Technology” in Chapter 1 and the prevalence status of high-efficiency coal-fired thermal power generation on “1.2 High Efficiency Coal-Fired Thermal Power Generation Technology” in Chapter 1. The future developmental/prevalence status of these technologies in Japan is shown in Exhibit “Overview of Utilization Technologies for Low Rank Coal and Technologies of High-Efficiency Coal-Fired Thermal Power Generation.” From now on, it will be necessary to perform updates such as periodic revision of information on related technologies and addition of new technologies, and to organize the technology developmental status and prevalence status in each country in order to share information in ERIA-related countries. For updating and sharing information, it will be possible to publish on web sites, etc. by using the framework of ERIA, APP, GSEP and APEC as in the low rank coal properties mentioned above.

Documents

Study on Clean Coal Technology Project - 経済産業省 … on Clean Coal Technology Project March 2012 The Institute of Energy Economics, Japan Preface The coal, of which deposit