4-1 Construction of Integrated Gasification Combined Cycle Demonstration Power Plant Project Scope and Relationship to China's Agenda 21 This project seeks to promote research, development, and diffusion of the advanced coal fired integrated gasification combined cycle (IGCC) power generation technology in order to meet requirements of pollution control, and to promote higher coal utilization efficiency which saves energy and reduces the emission of pollutants. The project is based on programme areas 13A, 13B, and 13C of China's Agenda 21, and is related to programme areas 2B, 12C, 18A, and 18C. 1. Background China's energy situation is characterized by a lack of energy sources and electric power supply, and by the existence of serious environmental pollution problems. The vast majority of power in China is generated by the use of steam turbines, and relies heavily on fossil fuels for its power supply (84 percent), of which coal is the most dominant. China is so dependent on coal as an energy source that China accounts for approximately one fourth of coal consumed in the world. This reliance on coal causes three problems. First, the coal consumption rate, with a mean rate of 415 g/kWh, is 30 percent higher than in developed countries. Second, large pollutant emissions cause widespread harm to the environment. Third, coal based energy production faces water scarcity in rather dry areas where it has to share water with other industries. In that China's national economy is developing at a rapid speed, the present thermal power electric network of 165,000 MWe capacity will need to be expanded further. If advanced technologies are not introduced to retrofit China's existing power plants and to construct additional ones, China's reliance on and use of less clean forms of energy will expand. Therefore, without the introduction of new clean technology, China's problems of energy waste and pollution will intensify, thus causing severe environmental concerns for China and the world. A solution to these problems is the so called integrated gasification combined cycle (IGCC). IGCC is an advanced power generation system which combines a higher coal electricity production efficiency with clean coal combustion technology. It is anticipated that IGCC technologies have the capacity to replace the steam turbine in the fossil fired power plant, as a key development direction in fossil fired power generation. China fully recognizes the problems of sustainable development and gives much attention to the retro fitting of aged power plants by introducing advanced technologies and new models of power generation. China has already imported more than ten sets of oil fired or gas fired combined cycle units. China also conducts research on clean coal combustion technology and the thermal system of the combined cycle. In addition, China's Ministry of Electric Power has emphasized the power generation technology of IGCC by placing it on the agenda of its plan for middle term and long term development of electric power. Part of this plan is to build an IGCC demonstration power plant in the near future. An advanced IGCC demonstration power plant imported from abroad can serve as the foundation for a large scale application and diffusion of IGCC technology in China. Such a demonstration project would also provide a solid base for international exchanges and cooperation in this field. 2. Objectives Long term Objectives To conduct research on, and to promote the development and diffusion of, advanced coal fired IGCC power generation technology, and to retrofit and replace China's steam turbine power system with IGCC in a step-by-step process. Not only to meet the requirement of pollution control, but also to have a higher coal utilization efficiency which saves energy and reduces the emission of pollutants. Immediate Objectives To establish a high-level Chinese leading group and a group of experts to plan, organize, and coordinate the research, development, and diffusion of IGCC technology. To construct an IGCC demonstration power plant of 200 MWe, which will reach 42 47 percent of thermal efficiency and bring the emission of harmful pollutants NOx, CO2, SO2, and dust within the national standard. To develop an IGCC test base and design a plan for developing and diffusing IGCC technology in China. The base will make use of the IGCC demonstration plant and will rely on existing research, equipment, and installations in China. 3. Activities 3.1 Establish a leading group at state level and an expert group for IGCC and evaluate the technical feasibility. Establish a state level leading group for IGCC, composed of representatives from the State Science and Technology Commission, the State Planning Commission, the State Economic and Trade Commission, and the Ministry of Electric Power, the Ministry of Machinery Industry, and the Ministry of Coal Industry. This group will organize and coordinate the work of relevant research institutes, universities, manufacturers, and utilities. It will also design a plan for importing IGCC equipment and technology, for applying research, and development of IGCC in China, for the manufacturing of equipment, for demonstrations and tests, and for the commercial identification and diffusion of IGCC. Establish a state level group of high level experts from both China and abroad. This group will take responsibility for technical decision making and consultancy regarding such matters as the import of technology, the evaluation, and identification of relevant plans, the development of implementation schemes and feasibility reports, and the development of proposals related to IGCC for consideration by the government and industrial sectors. Organize an IGCC feasibility study by the IGCC expert group, under the leadership of the IGCC leading group. The duration of this activity will be two years. 3.2 Construct a 200 MWe IGCC demonstration power plant. In view of the actual conditions in China, it is proposed to import such a plant, although some research, and manufacturing will be accomplished domestically. Seek international assistance; conduct international exchanges; participate in technical and commercial negotiations; define the system configuration and the scheme of the complete IGCC system; and determine needs and methods for importing and developing the necessary technological equipment. Import and develop equipment, including power generating equipment of the combined cycle; gasification equipment; hot dry cleaning system; control system; necessary accessories (coal handling, treatment, and reutilization of discharges), etc. Field construction, installation, testing, and acceptance of equipment. Commercial identification operation. The duration of this activity will be six years. This primary implementing agency will be the Ministry of Electric Power. The Ministry of Machinery Industry will also participate. 3.3 Establish an IGCC testing base and draft a plan for the development and diffusion of IGCC power generation technology in China. Train personnel for planning, management, and engineering implementation of IGCC power plant. Establish key technical laboratories (pilots) for IGCC. Develop a plan for adapting key technologies, and for designing relevant technical development, and research programme. Design an implementation scheme for importing, producing, and domestic manufacturing of IGCC equipment in China. Design a conceptual plan for importing and disseminating IGCC technology. Design a conceptual plan to repair the existing steam turbine power plant by using IGCC technology, and constructing a demonstration power plant. The implementing agency is the state-level IGCC Leading Group. The duration of this activity will be six years. 4. Inputs 4.1 Chinese Inputs Project management Chinese experts and other staff, communication and transportation, office facilities, equipment Demonstration of IGCC power plant 4.2 International Cooperation Assistance in capacity building - Construction of test bases - Technology and experience exchange - Technology consulting and personnel training Technical cooperation - Cooperative research such as on new thermal cycle and system, and integrity of system - Technology imports such as gasification, hot dry cleaning, and advanced gas turbine Construction of the demonstration IGCC power plant - Capital, equipment, and technology Obtaining international grants and loans of low interest from financial organizations, and joint investments from manufacturers and business companies 4.3 Budget The total amount of money required is based mainly on the estimated costs of construction of a 200 MWe IGCC power plant. The total costs is about US$311 million, Of which 50 percent (US$155.5 million) comes from the Chinese Government, power plants, and domestic loans, and the other 50 percent is from international support. Budget (in million US dollars) Activity Chinese Input External Input Total Activity 1 Consultants Survey and training Appraisal studies 0.1 0.4 0.2 0.3 0.3 0.3 0.4 Activity 2 Equipment Installation & testing 90.0 60.0 130.0 20.0 220.0 80.0 Activity 3 Key laboratories Technology cooperation Personal training Study & planing of diffusion 0.5 2.5 1.0 1.0 2.5 1.5 1.0 3.0 4.0 2.0 1.0 Total 155.5 155.5 311.0 5. Benefits The implementation of this project will establish a good foundation for investigation, development, and application of the advanced IGCC generation technology in China. It is expected that the average thermal efficiency of fossil-fired power set which use IGCC technology for both existing power plants' retro-fitting and new-style generation plant construction will be increased from about 30 percent to over 40 percent. The CO2 emissions per unit of megawatt produced will decrease by about 30 percent from the present emission level caused by fossil-fired power plants. The discharge of SO2 and dust will decrease by several times. The NOx pollution will be reduced to 25 ppm. Since IGCC technology has remarkable implications for energy conservation and environmental protection, indirect economic, and social benefits are substantial. The application of IGCC power technology in China will not only promote the development of the national economy, but also make an important contribution to the improvement of the global environment. 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