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APEC Project Database

Project Title

APEC Expert Workshop on Innovative Systemic Approaches to Enhancing Coal-Fired Power Generation Efficiency

Project Year

2013

Project Number

EWG 19 2013A

Project Session

Session 3

Project Type

Standard

Project Status

Completed Project

Project No.

EWG 19 2013A

Project Title

*
APEC Expert Workshop on Innovative Systemic Approaches to Enhancing Coal-Fired Power Generation Efficiency

Project Status

Completed Project

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Energy Efficiency

Project Year

2013

Project Session

*
Session 3

APEC Funding

79,998

Co-funding Amount

83,000

Total Project Value

162,998

Sponsoring Forum

*
Energy Working Group (EWG)

Topics

Energy

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States

Co-Sponsoring Economies

China; Japan

Expected Start Date

01/01/2014

Expected Completion Date

31/12/2014

Project Proponent Name 1

Mikio Ando (wef 9 September 2014)

Job Title 1

Project Overseer

Organization 1

Japan Coal Energy Center

Telephone 1

Not Applicable

Email 1

Project Proponent Name 2

Not Applicable

Job Title 2

Not Applicable

Organization 2

Not Applicable

Telephone 2

Not Applicable

Email 2

Not Applicable

Declaration

Scott M Smouse

Project Summary

Recognizing that fossil fuels will continue to play a major role in meeting the growing energy demand in the Asia-Pacific energy mix and that improved energy efficiency is one of the fastest, the most environmentally sound and cost-effective ways to address energy security, economic growth and climate change, a workshop is proposed to share the results of most up-to-date clean coal technology demonstrations and deployments in the area of lower-emission power generation through efficiency enhancement.

This 3-day workshop will share proven results of various innovative technologies and best practices to enhance coal-power power generation efficiency, reducing coal consumption and CO2 emissions, as well as ensuring a safer and more secure power grid in emergency supply disruptions. This is of particular relevance to regions where the energy-mix is dominated by coal.

This project will interface with the ongoing project EWG 02/2013A on an advanced clean coal (CCT) deployment initiative, and provide additional input and information of value to the final report of that project.

The agenda will include information on technologies to improve efficiency and lower emissions from coal-fired power generation, a visit to Shanghai Waigaoqiao Phase III (2 x 1000 MW) ultra-supercritical power station to showcase actual deployment of the technologies and best practices to improve the performance of coal-power generation.

Relevance

The global average net efficiency of coal-fired power plants is below 35%; however, technological advances have enabled coal-fired power plants deploying ultra-supercritical steam (USC) cycles with full environmental controls to achieve up to around 45% (with a resulting average coal consumption of about 280 g/kWh). To put this in perspective, the average coal consumption in China – the world’s largest consumer of coal – was 326 g/kWh in 2012, and was substantially higher (i.e., less efficient) in other developing APEC economies. China’s level has been achieved only after a more than decade of installing state-of-the-art coal-fired power plants, including many USC units, which is just now happening in other economies. If the global average net efficiency of coal-fired power generation can improve to 45%, CO2 emission can be reduced to 780 gCO2/kWh from 1200 gCO2/kWh – a 36% reduction. Also, new plant designs using advanced USC steam conditions – made possible by using new higher temperature-rated (>700oC) metals, can exceed 49% net efficiency.

The need to share information on state-of-the-art technologies and best practices for efficient coal-fired power plant operation has been recognized by several other multi-lateral organizations.  For example, under the Power Generation and Transmission Task Force of the Asia Pacific Partnership on Clean Development and Climate (APP), five of the seven workshops related to this project were held in member countries (one each in Australia, Japan, and Korea and two in the United States) from 2006 to 2010.  Following its conclusion, the APP work was transitioned to Global Superior Energy Performance Partnership (GSEP) under the Clean Energy Ministerial (CEM), which is led by the Japanese Federation of Electric Power Companies.  Several similar CEM/GSEP workshops have been held in Eastern Europe, South Africa, and Indonesia (January 2013).  However, all of these workshops, whose attendance totaled nearly 500, only sought to identify the sources of lost efficiency in the host power plants, by using standardized efficiency checklists, while sharing limited information on various means to regain the lost efficiency or to boost efficiency beyond design levels through acceptable-cost measures. Also, the International Energy Agency (IEA) has assessed the potential energy (i.e., coal) savings and resulting CO2 emissions reductions (~1.5 gigatons annually) by improving the efficiency of existing plants worldwide and by adopting state-of-the art generating technologies for all new plants.

APEC funding was approved during the second round of 2013 for the project EWG 02/2013A: An APEC Initiative for Deploying Advanced Clean Coal Technologies. Its objectives are to assess plans for new coal-based energy facilities in several developing APEC economies; identify the technical, economic and institutional challenges limiting near-term adoption of clean and efficient coal technologies; highlight government policies and incentives needed to accelerate advanced CCT deployment; suggest best practices for application to new and existing power plants; and identify APEC efforts needed to promote CCT deployment.

This 3-day workshopwill interface with the ongoing project EWG 02/2013A in the context of the advanced CCT deployment initiative, and will provide additional input and information of value to the final report of that project. The workshop will share proven results of various innovative technologies and best practices, including low-cost measures that are applicable to nearly every coal-fired power plant, to enhance power generation efficiency, reducing coal consumption and CO2 emissions.

Objectives

a)   Develop training materials, organize and hold a 3-day workshop to share the most recent technological experience in coal-fired power generation efficiency enhancement and in ensuring a safer and more secure power grid in the event of emergency supply disruptions. Workshop topics will include:

i)  Information on state-of-the-art technology demonstrations and deployments aimed at lower-emission power generation through efficiency enhancement.

ii)  Applicability and transferability of these technologies to existing and future coal-fired power plants in regions where the energy-mix is dominated by coal.

iii) Systemic and holistic approaches to enhance coal-fired power generation efficiency through innovations in optimizing operating procedures and residual thermal resource recycling.

b)  Provide timely input to the finalization of the EWG 02/2013A project on advanced CCT deployment.

Alignment

This project responds to APEC Energy Ministers’ instruction to the EWG in their 2010 Fukui Declaration to develop an initiative for deploying advanced CCTs, such as USC and Integrated Gasification Combined Cycle, to make coal-fired power plants more efficient. This instruction was reinforced in the St. Petersburg EMM Declaration: “We also instruct the EWG and EGCFE to further pursue initiatives for deploying advanced clean coal technologies such as Ultra Super Critical (USC) and Integrated Gasification Combined Cycle (IGCC) to make coal-fired power plants more efficient.”

This project will assist in funding capacity-building activities, with special emphasis on developing APEC economies. It falls within Rank 2 of the APEC Funding Criteria for all Projects in 2012, under the heading: “Projects that directly support the Action Plan in the APEC Leaders' Growth Strategy,” within the areas Sustainable Growth and Secure Growth, and specifically “Energy security”, Emergency preparedness and natural disasters, “Reducing energy intensity and promoting energy-efficient technologies” and “Climate change mitigation and adaptation.”

Discussions on ensuring more secure power grid in the event of emergency supply disruptions will be included in the workshop, to contribute to the APEC Energy Security Initiative (ESI) - the principal mechanism through which the EWG addresses the short- and long-term energy security challenges in a sustainable manner in APEC. The ESI comprises a series of short-term measures to respond to temporary energy supply disruptions and longer-term policy responses that are practical and achievable to address the broader challenges facing the region's energy supply. More efficient generation will contribute to longer-term goals by freeing resources for other needs, including grid upgrading/expansion, building additional generating facilities (including renewable energy), make more coal available to other generators, reduce coal imports by some economies (which will improve their balance of trade), etc.

Beneficiaries and Outputs

The end products of the project will consist of the workshop proceedings as well as a summary report that will provide an appropriate contribution to the finalization of the EWG 02/2013A project. The relevant subject matter of the summary report will be integrated into the final report of the latter project.

The intended project beneficiaries and stakeholders are expected to be:

·   Key government officials of developing APEC economies involved in decision-making on clean coal technologies; fossil power generation strategies; greenhouse gas mitigation; and relevant environmental/regulatory issues

·   Power generation sector decision-makers

·   Power engineering and technology supply sectors

·   Other international fora active in this topic area (e.g., IEA/OECD and CEM/GSEP), which will be able to share more broadly the products of this workshop around the globe.

·   The general public and potentially future generations.

They will benefit in a number of ways:

·   Energy, coal and power generation policymakers will benefit from up-to-date information on clean coal technology demonstrations and deployments aimed at lower-emission power generation through efficiency enhancement.

·   Governments and the power generation sector in developing APEC economies will benefit from capacity building through improved knowledge and access to this information.

·   The power engineering and technology supply sectors will be better placed to identify new opportunities for deployment of more efficient coal-fired generation technologies in developing APEC economies.

·   The public stands to benefit through reduced emissions of environmental pollutants due to the use of more efficient and less polluting coal technologies.

·   Future generations may benefit from increased sustainability due to the beneficial effects on global climate of reduced accumulation of CO2 in the atmosphere as a result of cleaner and more efficient coal use.

The RFP for this workshop project will require the contractor to place significant emphasis on selecting appropriate participants with the right skills sets and expertise through developing selection criteria and ensuring that there is a good mix of both developed and developing economy participants. While it is expected that governments and utilities will nominate participants to the workshop, the contractor will be required to develop criteria (e.g., position, seniority, and education level) that will be provided to governments and utilities to assist them in identifying and selecting participants that not only will benefit from the workshop, but also be able to put their learnings from the workshop into practice.

If successful, similar workshops will be proposed in other economies, likely starting in the 3rd round of 2014 funding.

Dissemination

The final report and proceedings of the workshop will be posted on the APEC, EGCFE, and EWG websites for viewing and downloading. The results of the project will be shared with other international fora active in this area, including the IEA and CEM/GSEP. The results will be presented at an EGCFE Clean Fossil Energy Technical and Policy Seminar following project completion.

The target audience includes:

·  Key government officials involved in decision-making with regard to coal-fired power generation, including energy and environmental ministries/agencies

·  Technical and financial decision-makers in the power generation sector

·  Technical experts

·  Other electric utility and related industry sector representatives

·  Research and policy research organizations.

There is no intention to sell outputs arising from this project.

Gender

The EWG always encourages participation of women from all APEC members in all its committees, projects, and activities.  While the official representative of each economy to the EGCFE changes occasionally, several economies are represented by women or have women in support management and/or technical roles. Women have served in the past as the principal investigators/lead authors of several EGCFE projects. Participation by women in the PSC will be encouraged, and while each economy is responsible for designating its own representatives, the PSC will encourage women to participate actively in the project. 

The EWG always encourages participation of women from all APEC members in all its committees, projects, and activities. Women have served in the past as the principal investigators/lead authors of several EGCFE projects. Participation by women in the project steering committee will be encouraged, and the committee will encourage women to participate actively in the project.

The project will be carried out by a consultant in response to a tender. The RFP will stress the need to involve women in both planning and implementation stages. In the evaluation of submitted bids in response to the project RFP, specific attention will be given to qualified women proposed by the bidder. The EGCFE members involved will ensure that the winning submission adheres to the priorities of the Framework for the Integration of Women in APEC (“Accelerate the progress of integrating women in the mainstream of APEC processes and activities” and “Promote and encourage the involvement of women in all APEC fora”). The APEC Framework, as well as the Gender Analysis Guide and other relevant documents, will be made available to those involved in all aspects of the project; their application will be monitored throughout the project.

The degree of women involvement, in terms of responsibility and numbers, can be evaluated objectively at the conclusion of the project. Of particular interest in this regard, apart from the number and qualifications of women experts in the project, will be their input to the analysis, and the consequences of their input for the project results and conclusions, both as far as gender is concerned and in general.

The primary objective of the project is information transfer related to the more efficient and environmentally sustainable use of coal for energy development in the APEC region.  Having an adequate, dependable, and efficient supply of energy in the APEC Region benefits men and women equally with regards to economic development and protection of the environment.  Populations at the lowest economic levels of society can benefit the most, e.g., women can be uplifted by provision of electricity to replace direct use of domestic fuels, such as wood or coal, for cooking and space heating, and freed from the daily time-consuming efforts to secure and use these fuels. In addition, harmful health impacts from exposure to pollution from uncontrolled combustion at the household level can be significantly reduced.

Work Plan

The project will be conducted by a consultant team in close coordination with the APEC project steering committee (PSC) for the project EWG 02/2013A.

The consultant team’s qualifications would be expected to include the following:

a)  A high level of technical and business knowledge and expertise in CCT projects in the APEC region, with particular reference to their deployment in APEC developing economies.

b) Evidence of prior experience in putting together international seminars/workshops involving this topic area, and of current familiarity with and contacts in government agencies and companies involved in new coal-fired power generation decision-making in APEC developing economies.

c)  Understanding of prior experience with the adoption of advanced clean coal technologies for power generating plants in developed economies worldwide, including the issues involved in decision-making, management of the risks, interaction with environmental regulations, and incentives offered or required.

d) In-depth technical and business knowledge and experience in the region, related to power sector plans for new generation, and to existing and likely future regulations concerning coal-fired power generation in different APEC member economies.

e) Evidence of current familiarity with and contacts in government agencies and companies involved in new coal-fired power generation decision-making in APEC developing economies.

f) Prior evidence of the capability to deliver high-quality products on time and within budget.

The project timeline will be the following (all dates are end of month):

- January 2014:  Issue RFP

- February 2014:  Selection of a consultant to organize the workshop.

- February 2014:  APEC representatives invited to nominate experts and active participants to attend the workshop.

- First half 2014:  Workshop and site visit held at Shanghai Waigaoqiao Phase III Power Station, which was selected because this 2 x 1000-MW ultra-supercritical plant operates at higher than design efficiency efficiency by adopting a combination of best practices and state-of-the-art technologies.

- December 2014:  Workshop proceedings and final summary report, including presentations, papers and other relevant information, prepared and submitted to APEC for publication on the web. Consultant ensures coordination of the workshop findings with the consultant responsible for preparation of the final report of the EWG02/2013A project. The report will include recommendations for follow-on work on the advanced CCT deployment initiative. 

Government and industry experts will be engaged via the PSC and the selected consultant, and appropriate speakers at the workshop identified. Also, EWG delegates will be invited to identify key government and industry representatives in their economies, some of whom might present on either their needs in this area or their work in improving the efficiency of coal-fired power generation in their economy. The project includes funding for travel and per diem for speakers and active participants from developing APEC economies.

Some activities in other international fora on clean coal technologies may have relevance for this project. An example of such activities is the work in progress in the International Energy Agency on high efficiency low emissions (HELE) technologies. The project proponent will ensure contact with the relevant IEA Secretariat officials in order to ensure an appropriate level of coordination.  Representatives from the IEA and the Global Superior Energy Performance Partnership of the Clean Energy Ministerial (CEM/GSEP) who are engaged in similar work will be invited to more broadly share experiences.

The APEC consultant team will be encouraged to make contact with appropriate International Energy Agency experts during the course of the work, in order to exchange information, avoid unnecessary duplication of effort, sharpen the focus, and progress of the project towards achieving its objectives.

Representatives of these organizations may be invited to participate in the work of the PSC.

Industry will potentially be an important player in CCT deployment. Early in the project it would be useful to consult with relevant coal technology and power generation industry representatives via the PSC and the Energy Business Network in order to identify potential additional expert input from industry to contribute to the project’s relevance and success of the results.

With regard to the final report, the consultant’s attention will be drawn to the fact that all documents/ reports need to comply with the APEC publication guidelines before final payment is made.

Risks

Among risks faced by the Project may be the following:

a) Timely Identification and selection of the most appropriate consultant team via an RFP.

b) Identification of appropriate examples of coal-fired power generation efficiency enhancement for potential deployment in APEC developing economies, and obtaining agreement from the entities involved for information from the potential projects to be used.

c) Identification of appropriate speakers.

d) Close coordination with the workshop host economy and local host organization.

e) Timely project completion, publication of the proceedings, and coordination of the summary report with that being prepared for the project EWG 02/2013A.

f) Appropriate follow-up on implementation of the project recommendations concerning policies and actions to promote innovative approaches to enhancing coal-fired power generation efficiency.

As the project progresses, additional risks may emerge requiring mitigation and management.

The EGCFE has developed a set of criteria and scoring methodology for assessment of responses to RFPs and consultant selection.  Use of this process facilitates objective assessment by a team of EGCFE experts and achievement of consensus on the appropriate choice among RFP responders.  Following selection, the PSC and the consultant team selected to carry out the project will be aware of the potential risks, as well as others that may be identified in the process, and will work together to minimize them.  Appropriate follow-up will be discussed in the EGCFE and in its periodic Clean Fossil Energy Seminars.

Monitoring and Evaluation

Feedback from members of the PSC, EGCFE and EWG will be an indicator of success in the short term.  The longer-term measures of success will be use of the project results by developing APEC economies in supporting their decision-making on possible innovative approaches to enhancing coal-fired power generation efficiency through advanced CCT deployment projects applied to new coal-fired power generation projects in their economies. Feedback on this will be sought via significant coal-using EGCFE and EWG members, and from coal power generation and technology supply industry experts. Feedback will also be sought by consulting with the International Energy Agency’s CCT experts.

The RFP for the project will require the contractor to specify ways in which the later use of this project’s results by developing APEC economies, together with those of the ongoing EWG02/2013A project and of earlier related EWG projects in this area, should be tracked/measured and collected; and what mechanisms might be suggested to collect and analyze this information systematically. Of particular interest in this regard would be any capacity building developments in developing APEC economies that these CCT projects may have stimulated.

Linkages

The APEC region, especially developing APEC economies, has the highest projected growth for new electricity generation, and is projected to rely heavily on coal for much of this new generating capacity. Owing to this rapid growth in coal-fired generation, it is desirable that high efficiency, low polluting CCT projects be implemented in these economies in the future. There is a clear need for capacity building in this area in developing APEC economies, and to bring their government and industry representatives into the international discussion. This is especially the case for Southeast Asian economies, which have rapidly increasing CO2 emissions.

The information generated by this  workshop, together with the results of the EWG 02/2013A project, contribute significantly to these capacity building needs. The workshop will benefit from and assist in updating the results of previous EGCFE projects on clean coal technologies, specifically “Permitting issues related to new coal-based power plants, including carbon capture and storage in developing APEC economies”; “Planning and cost assessment guidelines for making new coal-fired power generation plants in developing APEC economies CO2 capture ready”; “Technology status and project development risks of advanced coal power generation technologies in APEC developing economies”; “Reducing trade, regulatory, and financing barriers to accelerate the uptake of clean coal technologies by developing economies in the Asia Pacific region”; and “How can environmental regulations promote clean coal technology adoption in APEC developing economies?”

The project links with a number of previous APEC projects are further described in Section 11 below, and its specific linkage with the ongoing project related EWG 02/2013A is clearly described in the Section 1 above and in the Work Plan (see Section 7). The contractor selected to carry out this project will be asked to take into account the final reports of the above projects, as well as those of the recent EWG training workshops on carbon capture and sequestration (CCS), when developing a program for this workshop.

The workshop proceedings will provide a substantial up-to-date set of useful information and data regarding innovative systemic approaches to generation efficiency enhancement. The quality and utility of the workshop results will be enhanced by their inclusion in a summary report that will also contribute to the results of the ongoing EWG 02/2013A project.Sections 8 and 10 above have referred to the engagement with other relevant fora during the course of the project, specifically with regard to the International Energy Agency and APEC’s Energy Business Network. Representatives of these organizations may be invited to participate in the work of the PSC.

The project has a potential to lead to future inward investment in projects in the power generation sector in APEC developing economies. The earlier deployment of clean and more efficient coal technologies for new power plants will also interface with APEC projects on carbon capture and sequestration (CCS), because plants using these technologies can be built so that they are capable of adding CCS in the future if necessary.

For these reasons, APEC is an appropriate forum to undertake this project and this is a very appropriate use of APEC funds.

Sustainability

The project’s long-term intended impacts are to put developing APEC economies with rapidly growing use of coal for electricity generation in a position to deploy more efficient clean coal technologies as effectively and economically as possible, and to build professional capabilities and capacity for achieving this. Long-term sustainability is a key objective of the EWG forum. The results of the project are likely to identify more detailed work needed on specific aspects of CCT deployment in developing APEC economies, which could be the object of future APEC projects. The results are likely to identify more clearly the barriers to CCT deployment in the situations different APEC economies find themselves, and further APEC work may be necessary to resolve the issues and find the most efficient way forward.

The EGCFE work on deployment of more efficient CCTs also dovetails with its ongoing activities in carbon capture and storage (CCS), which is likely to be central to any substantial effort to reduce the growth of global CO2 emissions from coal-fired power generation. The results of the present project will be integrated with the body of knowledge developed in APEC’s CCS capacity-building projects. The project may also help to advance deployment of CCS by favoring selection of coal-fired power generating technologies that result in a purer and more concentrated CO2 gas stream, such as integrated gasification combined cycle and oxy-fuel combustion.

A related APEC project on CCUS-EOR (carbon capture, utilization for enhanced oil recovery, and storage) was approved in the second round of project proposals of 2013, and an RFP for that project will be issued in the near future. The project will identify near-term CCUS opportunities in APEC regions, analyze project economics, discuss policy/regulatory requirements, and identify opportunities for further capacity building. It will consist of two expert workshops (possibly in Canada and China).

Direct Labour

The contractor will develop training materials, organize workshop, handle logistics of site visit, and prepare the report.

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