MHI's Commercial Post Combustion CO2 Capture Experiences in a Carbon Constrained World

1. MHI's Commercial Post Combustion CO2 Capture Experiences in a Carbon Constrained World Ronald Mitchell Mitsubishi Heavy Industries, Ltd. International Workshop on Power Generation with Carbon Capture and Storage in India 22-23 January 2008, Ashok Hotel, Delhi, India

2. CONTENTS • Introduction & Concept of Post Combustion CO2 Capture • MHI’s CO2 Capture Experience • MHI’s Flue Gas CO2 Recovery Technology • CO2 Recovery from Coal-fired Boilers • MHI’s scope in a CCS Project • Path Forward - Government incentives for CCS

3. 1. Introduction • Coal will persist as a dominant fuel for power generation well into this century • MHI has commercialized an advanced post combustion CO2 capture technology process • MHI has an expanding list of commercial deliveries mainly in the fertilizer production industry • MHI has conducted demonstration testing of CO2 capture from coal fired boilers • Government support is needed to encourage large scale CCS deployment – how?

4. 1. Concept of Post Combustion CO2 Capture Concept of Flue Gas CO2 Recovery, Sequestration and EOR Fertilizer Production in India Source: IPCC

5. 1. Concept of Post Combustion CO2 Capture Advantages of Post Combustion CO2 Capture • Is applicable for the current, global PC fleet • Offers high degree of flexibility – is adaptable and cost competitive with other technologies • Operation at atmospheric pressure – safe and does not require exotic materials • Produces highly purified CO2 – important environmental consideration for transport and disposal • Easy to transfer post combustion technology to developing countries – simple process and configuration • Allows for future zero emission use of coal

6. 2. MHI’s Experience MHI’s Commercial CO2 Capture Plants Malaysia Petoronas 1999~ 200 t/d Urea India IFFCO Dec 2006~ 2 x 450 t/d Urea Japan Chemical Co. 2005~ 330 t/d General use

7. 2. MHI’s Experience Example of a Commercial Project in India Plant Outline Client : Indian Farmers Fertilizer Co. Solvent : KS-1 Solvent Capacity : 450 T/D x 2 units Feed Gas : Natural Gas and Naphtha Reformer Flue Gas Use of CO2:Urea Production Start-up : 2006 Process Description • CO2 is recovered from steam reformer flue gases. • CO2 is compressed and then used for urea synthesis. • Includes a Deep FGD caustic soda wash in the quencher to remove SOx • Flue gas is cooled and then SOx is removed before entering the CO2 absorber.

8. 2. MHI’s Experience Coal Fired Long Term Demonstration Plant Plant Outline Solvent : KS-1 Capacity : 10 T/D Feed Gas : Coal Fired Boiler (14.1 v% CO2) Start-up : July 2006 Location : Nagasaki, Japan Process Description • Increased understanding of the effects of impurities on the system (dust, SOx, NOx, etc.) • Identifying and incorporating countermeasures for each impurity • >4,000 hours of operation and experience • Test results exceeded expectations and will facilitate scale up CO2 capture for coal fired boilers • Confirms that the MHI CO2 capture process can be applied to coal fired flue gas streams

9. Absorber Stripper Cooling Tower Deep FGD Flue Gas Duct 2. MHI’s Experience Large Scale CO2 Capture Plant (3000 T/D Plant)Basic design complete

10. 3. MHI’s Flue Gas CO2 Recovery Technology Process Flow for Amine Absorption Feature of Process: Comparison with MEA solvent Flue Gas Outlet CO2 Purity : 99.9 % ABSORBER STRIPPER (Regenerator) C.W. Flue GasCooler Flue Gas C.W. Combustion flue gas from a fossil fuel fired power station C.W. Steam Pre-Treatment Facility (Deep FGD) required for Coal Fired Flue Gas MHI’s proprietary KS-1 solvent Reboiler

11. 4. CO2 Recovery from Coal-fired Boilers MHI’s Proposed Phased Approach to Commercialization of CO2 Capture Technology for Coal Fired Boilers MHI’s Operating Experience MHI’s operating experience includes an expanding number of commercial plants in a range of countries, combined with a strong foundation of pilot and small scale demonstration plant experience for both natural gas and coal fired flue gas application. Medium-large scale demo Full scale commercial 1 t/d 2 t/d 10 t/d 200 t/d 330 t/d 450 t/d 800 t/d 500-3000 t/d 3000 t/d ～5000 t/d Pilot & small scale demonstration experience (Nat. Gas & Coal) Commercial Experience with Natural Gas fired flue gas FEED Complete (Nat. Gas) Phase 1 (Coal) Basic Design Complete (Nat. Gas) Phase 2 (Coal)

12. 5. MHI’s Scope in a CCS Project The CO2 Supply Chain • The supply chain for a complete CCS project is complex • Requires integration of a number of industry segments • A carbon price creates incentives to drive CCS project execution • Regulatory framework is in the pipeline CO2 Injection EOR etc Long term Monitoring Projects Flue gas pre-treatment CO2Compression Dehydration CO2Capture CO2Transport CO2 Credit Generation Power Plant / Industrial Source MHI Scope Single Contractor

13. 6. Path Forward – Government Incentives for CCS Governments must create incentives which will encourage industry investment and widespread CCS – How? • Funding for CCS demonstration projects – to reduce risk • Establish regulatory certainty – do not delay further • Create tax credits/subsidies for downstream application of anthropogenic CO2(act as an initial industry driver) • Legislate to include CCS within emission trading schemes to ensure there are ‘rewards’ for industrial CCS projects • Establishing a carbon price will create additional incentives for CCS deployment – contribute toward project finance

14. Further Information Ronald Mitchell Manager Business Development Carbon Abatement Project Origination Environmental Plant Department Mitsubishi Heavy Industries, Ltd. 3-3-1 Nishi-ku, Yokohama, JAPAN, 220-8401 Office Ph: +81-45-224-9400 | Cell Ph: +81-90-4420-3941 E-mail: ronald_mitchell@mhi.co.jp MHI Web: http://www.mhi.co.jp MHI CO2 Recovery Process: http://www.mhi.co.jp/mcec/product/recov_co2/