Accelerating Clean Coal Technology Diffusion in China · 2021. 4. 25. · Opportunity: CTG, CTL and...
Transcript of Accelerating Clean Coal Technology Diffusion in China · 2021. 4. 25. · Opportunity: CTG, CTL and...
T h e C h i n a S u s t a i n a b l e E n e r g y P r o g r a m中 国 可 持 续 能 源 项 目
Accelerating Clean Coal Technology Diffusion in China
May 6, 2008Fuqiang YANG
Reducing energy intensity by 20% by 2010 implies 1.6 Gt CO2 emission reduction
Coal Update by March 2008 • Coal output +13% • Net coal importation, 11.3 m
(i)/10.2 m (e)• Coal price at mine + 25%• Power generation profit
-55%, shut down 14.5 GW in 2007 and 13 GW in 2008
• 360 m coke consumption in China, 60% of global total
• Output of iron and steel +13.9%
Desulfurization in the Guohua Power Group
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国华电力历年脱硫安装率
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国华电力SC/USC发电技术应用
TotalSuperUtra Super
Super and Ultra-Super Power in the Guohua Power Group
Opportunity: CTG, CTL and Polygeneration with CCS
• Electricity/Coke/Chemical– IGCC/Polygeneration/CCS– Allows removal of pollutants– Higher thermal efficiency– Generating valuable byproducts– CO2 capture and sequestration– Cheap and technology availability
• CTL/liquid Fuels– Indirect liquefaction/CCS– Allows removal of pollutants– CO2 capture and sequestration
Two Scenarios for Primary Energy Supply
Coal Polygeneration
Technology BAU Scenario Advanced CCS Technology Scenario, 30% oil and gas importation
Carbon Emission Reduction 6.6 Gt
Source: Ni Weidou, Tsinghua
Polygeneration Development Policy
• Polygeneration is a key technology in National long term science and technology development plan
• National polyfeneration demonstration is in the list of 863 national program
• State budget 360 million yuan and enterprise investment 30 billion yuan
• 7 different types of polygeneration demonstration pilots
9 key technology demonstration projects2000 tone/day liquid coal mix technology2000 tone/day high pressure dry coal powder technology1500 tone/day CTL for high contents of ash, sulfur and temperatures Retrofit technology for gas turbine with low pollutant syngas
Polygeneration Key Technology
100,000 – 1 million tons of syngas F-T liquid fuel technologyPolygeneration operation and control technologyPolygeneration system optimization and design technologyLiquid products and polygeneration system testing demonstration IGCC system demonstration and testing
Polygeneration Key Technology
200 MW IGCC demonstration pilot in Tianjin by 2012400 MW Commercial IGCC by 2015R&D of CCS in the national labs
Private Sector Involvement - Huaneng
• Market-based Instruments– Green Credit Policy– Green Insurance– Environmental scrutiny of IPOs
• Judicial Enforcement– Independent Environmental
Court• Training Program• Over All Policy Analysis
– All-in Cost Pricing• Health Impact Analysis• Database build up• Methodology to estimate
Economic Analysis of health impact damage
– EIA / RIA / etc
Strengthen Environmental Regulatory Program
• Strengthen capacity building for environment regulatory system
• Build up strong legal system
• Promote clean coal energy technology development, energy efficiency and CCS
Total True Cost of Coal: Price, Fiscal and Tax
Price, Fiscal and Tax • Price and Internalize
Cost• Reserve Tax• Environmental Tax• Energy Tax• Ecological
Compensation• Carbon Tax
China Low-Carbon Finance: A Key for CCT and CCS
Scenarios & National Energy Policies:
• China’s National Energy Law• China’s 2050 Energy and
Climate Scenario Research• Post-Kyoto Climate Policy
Response
• MOST Climate Change Technology Roadmap 2008
Financial Needs:
• $100-200 billion by 2020
• $200-300 billion by 2030
• $400 billion by 2050
• MOST 7 Billion Yuan for EE, CCT/CCS and mitigation
Investment resource of environmental protection and energy efficiency
• Reform in financial systems aims to support sustainable development, such as quota requirement for banks, venture capital and stock market
• To Enlarge the governmental budget Pie in EP and EE categories and legalize proportion of government budget in EP and EE
• Policy bank and investment institution should take EP and sustainable energy development as a main strategic program
• Policies and regulations will encourage commercial banks to support and invest in EP and EE with quota requirement in loans
• Governmental discount and tax Policies, such as higher depreciation rate to EP and high energy efficiency equipments
• To diversify investment resources and encourage private sector to invest in EP and EE
• To increase levy gradually, impose energy tax, environmental tax and carbon tax
• International financial market, GEF and CDM• To establish development fund for the
environmental protection and energy efficiency• New investment and financing channels, such
as VC
Investment Resource in the Environmental Protection and Energy Efficiency
Carbon Fund and Trade Market
• Create carbon trade market with $1 -2 trillion
• The carbon trade market covers one third of the total carbon emissions
• Pilot demonstration in Shanghai and Guangdong
• The carbon trade agency in Tianjin
• In 2007, SFB, CNPC and China Green Forest Fund established China Green Foundation for Forest Development with RMB 300 million. It should be increase above $100-200 billion.