ARTICLE IN PRESS

Energy Policy 38 (2010) 2123–2130

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Energy Policy
journal homepage: www.elsevier.com/locate/enpol

Clean coal technology development in China
Wenying Chen Ã, Ruina Xu
Energy, Environment, and Economy (3E) Research Institute, Tsinghua University, China

a r t i c l e in fo
Article history: Received 11 May 2009 Accepted 1 June 2009 Available online 21 June 2009 Keywords: China Clean coal technology Sustainable development

abstract
Coal is found in huge amounts throughout the world and is expected to play a crucial role as an abundant energy source. However, one critical issue in promoting coal utilization is controlling environmental pollution. Clean coal technologies are needed to utilize coal in an environmentally acceptable way and to improve coal utilization efficiency. This paper describes coal’s role in China’s energy system and the environmental issues related to coal use. Coal is responsible for 90% of the SO2 emissions, 70% of the dust emissions, 67% of the NOx emissions, and 70% of the CO2 emissions. But as the most abundant energy resource, it will continue to be the dominant energy supply for a long time. Therefore, the development and deployment of clean coal technologies are crucial to promote sustainable development in China. Clean coal technologies currently being developed in China are described including high efficiency combustion and advanced power generation technologies, coal transformation technologies, IGCC (integrated gasification combined cycle) and carbon capture and storage (CCS). Although China only recently began developing clean coal technologies, there have been many successes. Most recent orders of coal-fired power plants are units larger than 600 MW and new orders for supercritical and ultra supercritical systems are increasing rapidly. Many national research programs, industrial research programs and international collaboration projects have been launched to develop on IGCC and CCS systems in China. Finally, suggestions are given on how to further promote clean coal technologies in China. & 2009 Elsevier Ltd. All rights reserved.

1. China’s coal dominant energy system 1.1. Coal: the most abundant fossil energy resource China’s coal resources are estimated to be 5570 billion tons with 1018 billion tons of proven reserves and 4552 billion tons of forecasted reserves. In 2005, China’s proven recoverable reserves of coal were 114.5 billion tons or 82 billion tons of coal equivalent (tce), 12.6% of the world total. China’s proven recoverable reserves of oil and gas were only 2200 million tons (3.14 Btce) and 2350 billion cubic meters (3.13 Btce), 1.3% and 1.2% of the world total (British Petroleum, 2006). The total proven recoverable reserves for oil and gas are only 7.75% that of coal. 1.2. Coal provides around 70% of the total primary energy consumption The primary energy production in China increased steadily from 637 Mtce in 1980 to 1326 Mtce in 1996, dropped to 1243 Mtce by 1998, and then began to rebound and hit 2354 Mtce
à Corresponding author. Tel.: +86 10 62772756; fax: +86 10 62771150.

E-mail address: chenwy@tsinghua.edu.cn (W. Chen). 0301-4215/$ - see front matter & 2009 Elsevier Ltd. All rights reserved. doi:10.1016/j.enpol.2009.06.003

by 2007 (China Statistics Bureau, 2008), as displayed in Fig. 1. Although common complain about coal include its inconvenience, low efficiency and high pollution, coal is still dominant in China’s energy scheme and coal is the primary energy source at about 75% from 1990 to 1997. Coal usage declined to about 72% from 1998 to 2002, but then recovered to 75% in 2003 and reached 76.6% in 2007 with production of 1804 Mtce. China’s coal production in 2005 ranked number one in the world with 38.4% of the world’s total (British Petroleum, 2006). The primary energy consumption increased continually from 603 Mtce in 1980 to 1389 Mtce in 1996, dropped to 1322 Mtce by 1998, and then grew quickly to 2656 Mtce by 2007 (China Statistics Bureau, 2008) as illustrated in Fig. 2. The coal share of the total primary energy consumption was 74–76% from 1982 to 1996, but declined to 71.7% in 1997 and then stayed between 66% and 70% from 1998 to 2007. In 2005, China consumed 1528 Mtce of coal, ranking number one in the world with 36.9% of the world total (IEA, 2007a). The percentage of coal in China’s total primary energy consumption was 68.7%, close to the percentage of oil and gas in the world’s total primary energy consumption (59.6%). The proportion of oil and gas in China’s total primary energy consumption was only 24%, approximately equal to coal’s share in the world’s total primary energy consumption (27.7%).

the number dropped from 65. OECD countries consumed much more energy from the clean energy sources. 1998.5% in 1995 to 72. China’s Primary Energy Production from 1980 to 2007. The total energy consumption by sector did not experience as much change as the fuel mix.3 GW new capacity added annually on average. 2006. the percentage of thermal power from coal has remained at about 75% of the total while the percentage of electricity generated from coal has remained at 80–83%.9% in 1991 to 29. In contrast. China’s primary energy consumption from 1980 to 2007.9% in 2005. Coal Consumption and Percentage in the total final energy consumption from 1991 to 2005. Coal consumption for power has increased from 196 Mtce in 1991 to 684 Mtce in 2005. Coal consumption in end-use demand sectors Fig. From 1991 to 2005. and the ratio of coal used for power generation relative to the total coal consumption increased from 26. 800 Primary Energy Consumption (Mtce) Consumption (Mtce) 3000 Coal 2500 2000 1500 1000 500 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 Fig. nuclear & wind 600 500 400 300 200 100 0 50 40 30 20 10 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Fig.0% to 44.4% in 2005 and it is expected that the share of thermal power plants with unit capacities above 300 MW will increase from 45. 2. Xu / Energy Policy 38 (2010) 2123–2130 Primary Energy Production (Mtce) Coal 2000 1500 1000 500 Oil NG Hydro. the industrial sector increased from 67% to 70%. Oil NG Hydro. and to gradually close small stations with capacities less than 100 MW. Coal used for power supply (Mtce) 800 700 600 500 400 300 200 100 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 60 Coal used for power supply Share 50 Share (%) 40 30 20 10 0 in 1990 and further to 377 gce/kW h in 2005. The energy consumption per kW h is expected to drop further to 360 gce/kW h by 2010 and 320 gce/kW h by 2020 (NDRC. gas and electricity. resulting in a total of 713 GW in 2007.6% in the same period (China Statistics Bureau. than from coal with the share of coal in the total final energy consumption being only 3% in 2005 (IEA. to develop cogeneration power plants. 2007b). as displayed in Fig.nuclear & wind Coal consumption for power supply (gce/kWh) 2500 500 450 400 350 300 250 200 150 100 50 0 1980 1985 1990 1995 2000 2005 2010 2020 Japan 2000 0 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 Fig. Taking into account coke. to retrofit medium-sized stations with capacities ranging from 100 to 300 MW per unit. 2007). Power sector consumed nearly half of the coal China’s total installed power capacity increased from 66 GW in 1980 to 319 GW in 2000. The thermal power generation efficiency has increased significantly in the last two decades with the energy consumption per kW h decreasing from 448 gce/kW h in 1980 to 427 gce/kW h Although China’s coal consumption increased from 755 Mtce in 1991 to 1528 Mtce by 2005. 2007). 2001. 4. Fig. 5. while residential dropped from 18% to 10%. 1.8% in 2005 (China Statistics Bureau. oil. 4. as shown in Fig.7% in 1991 to 43. 1. Since 1990. The percentage of thermal power generation stations with unit capacities larger than 100 MW increased from 62. It has then more than doubled from 2000 to 2007 with 56. coal used in end-use sectors remained in the range of 300–520 Mtce in the same period.ARTICLE IN PRESS 2124 W. Coal consumption per kW h electricity. 1. 3. 2001. 3. 5. The main contribution to the decrease is the government’s policy to develop supercritical (SC) or ultra supercritical (USC) units with unit capacities over 600 MW and large combined cycle units. as indicated in Fig.33 gce/kW h from 1990 to 2005. the share of energy consumption in both the agriculture and commercial sectors remained around 5%. 2006. the transportation sector increased from 5% to 10%. The share of coal in the total final energy consumption decreased from 56. Chen. The annual decline averaged as high as 3. The share of coal in each end use sector’s final energy consumption declined steadily Share in total final energy consumption (%) 700 Coal Coal & Coke Coal share Coal & coke share 70 60 . R. 1998.5% in 2005 to over 60% in 2010. 2007). Coal consumption for power and the % of coal used for power in the total coal consumption.4. Coal-fired power plants accounted for over 97% in the total thermal power capacity.3.

Most air pollution results from coal combustion and coal is the source of 90% of the SO2 emissions.3 million tons in 2005. 2. R. China should encourage development of cogeneration power plants and centralized boilers to replace small.34 KgC/US$2000 in 1980 to 0. Direct costs amounted to about 3% of GDP. Carbon emissions and carbon intensity (Exchange Rate) from 1980 to 2005. but low-NOx emission systems have been required in newly built.5 600 1 300 1980 1985 1990 1995 2000 2005 0. 1500 emission 1200 intensity 2. about 5 times higher than . 2004.2% annually. Coal is the source of about 70% of the CO2 emissions.1% for commercial. 14% of the total coal consumption. Fig.95 million tons in 2010.6% of the world total. The power sector also has accounted for about half of the national SO2 emissions. while soot emissions decreased from 14.5% of the total coal consumed.3% reached the national ambient air quality standard grade II in 2005.63% (Chen and Wu. 8. The residential sector is the second largest coal consumer. The residential sector consumed 64 Mtce in 2005. this is still much higher than other countries. as well as energy efficiency improvements and changes to low.49 million tons in 2005. However.1. 6. 52. from 1991 to 2005 from 42. Chen et al. 35. an annual decrease of 4. The power sector has contributed to one third of China’s NOx emissions. By the end of 2005. after the industrial sector.4% to 27.3% to 3. Chen. 70% of the dust emissions and 67% of the NOx emissions. expanded or retrofitted power plants since 2004. 6.ARTICLE IN PRESS W. Xu / Energy Policy 38 (2010) 2123–2130 2125 100 90 80 70 60 50 40 30 20 10 0 Agriculture Industry 2500 Emissions(10 ktons) 1991 2000 1995 2005 SO2 Soot 2000 1500 1000 500 0 Coal share (%) Transportation Commercial Residential 1981 1985 1990 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010 Fig. such as circulating fluidized beds. There were about 500 thousand small and medium size industrial boilers with unit capacities of only 2. but the World Bank warned pollution could cost 13% of GDP by 2020. as displayed in Fig. However.80 KgC/US$2000 in 2005. Coal share in each end-use sector’s total final energy consumption. scattered boilers for space heating. At the same time. more than 200 GW of power plants using FGD systems were under construction (including contracts signed) in 2005. The average sulfur removal rate was 92.. 18. 2008). have been applied to retrofit small and medium size coal-fired industrial boilers and kilns.8% to 9.82 million tons (China Environment Protection Agency. Chen.and non-carbon energy sources.5% with SO2 emission reductions of 2. and coal saving potentials estimated to be around 70 million tons (50 Mtce) annually. owing to structural adjustments in the economy. and 86. only 60. China should adopt a clean urban energy strategy by increasing electricity consumption with increased use of natural gas and coal gas in the residential and commercial sectors. 2005.9% for transportation. 2007).. 2007). 2005. To achieve this goal. The commercial sector is the third largest coal consumer. SO2 and Soot Emissions from 1981 to 2005. Pollution has caused severe ecological damage as well as severely affected people’s health. In 2005. as shown in Fig.4% for industry.2.5 Intensity/(KgC/2000US$ Carbon emission/MtC 2 900 1.5 t/h and operating efficiencies of about 65%.5 Fig. The Chinese government has set the SO2 emissions target as 22. from 387 MtC in 1980 to 1376 MtC in 2005 (Chen. 7. Clean coal technologies. 8. 10% less emissions than in 2005. the capacity of power plants with Flue Gas Desulfurization (FGD) systems reached 53 GW with China’s average SO2 emissions per kW h 40% less than in 1990.5 million tons to 11. as illustrated in Fig. industry and industrial products. Ninety percent of these boilers were coal-fired with an annual coal consumption of 350–400 million tons (250–290 Mtce). Chen et al. China’s growing primary energy consumption and the nearly constant coal-dominated structure has caused its carbon emissions to increase by 5. 52. Among the cities monitored.8% to 22. 2007). 7. Acid rain effects have extended from the Southwest to south of the Yangtse River to form four major acid rain control areas. Carbon emissions China’s total SO2 emissions increased from 14 million tons in 1981 to 25. accounting for 30–40% of the national area. The district heating rate is expected to increase from 30% in 2005 to 40% by 2010 with 40 GW new cogeneration plants for space heating with annual coal savings reaching 25 Mtce (NDRC. sharing 4% of the total final coal consumption. with expected efficiency improvements of 5% for boilers and 2% for kilns with annual coal savings of 25 million tons for boilers and 10 million tons for kilns from 2005 to 2010 (NDRC. China’s carbon emissions per unit GDP (exchange rate) decreased dramatically from 2. Most of the coal was consumed in the industrial sector. 2. Local air pollution Soot emissions from the power sector have been effectively controlled with a 32% reduction in 2005 compared to 1980 due to the popularization of high-efficiency electric dust removal systems with removal efficiencies as high as 99. industry consumed 78.3% for residential.1% to 24. Coal: the major source of local air pollution and carbon emissions 2. 2007).7% for agriculture.6%.

5 times higher than the world average for the year 2005 (IEA. China’s per capita carbon emissions increased by 4. and solar energy. Comparison of per capital carbon emissions and carbon intensity.5 2 1. unit 3 in 2007. 2007). To meet the national target while continuing the robust development of China’s power industry. sustainable development requires the development and deployment of clean coal technologies such as supercritical and ultra-supercritical boilers. These two plants both utilize high-efficiency dust removal and desulphurization with operating conditions reaching international standards. 2005. High efficiency combustion and advanced power generation technologies Recognizing that resources and the environment are major constraints to China’s further development.1 gce/kW h less than the national average in 2006 (339 gce/kW h). from 2004 to 2007. 2007. this was still only 1 3 of OECD countries. 2007c).ARTICLE IN PRESS 2126 W.5 0 Carbon intensity (PPP) Fig. China is facing heavier and heavier pressure such as the ‘‘voluntary commitment of greenhouse gases reduction’’ from developed countries in international negotiations on global climate change. Units 1 and 2 went on line on 28th November. Chen et al. 2006 and unit 2 on 5th July. nuclear energy. 3. Although. Localization of the technology significantly reduced the cost with Qinbei’s cost only about 4000 RMB/KW.6 GW of 600 MW supercritical units were installed.4 gce/kW h less than the national average in 2006. the most abundant energy resource. wind energy. with unit 4 in 2008.5 program linked decommissioning of inefficient small units with the commissioning of efficient. When unit 4 is working.6 0. operated by the China Huaneng Group which is China’s largest power producer. circulating fluidized bed combustion.2 0.1. Then. More than 150 supercritical or ultra-supercritical units with capacities of 600 MW or more have been put into operation or are under construction (Deng. By 2010 supercritical and ultra-supercritical units will account for over 40% of the total newly built thermal power generating units.1. the gap is considerably less in terms of PPP (Purchasing Power Parity). promoting renovation with energy-saving technologies. Chen. To reduce energy-related CO2 emissions as well as to improve the local environment. The units were imported from Switzerland and the USA.3 0. it was close to the world average (1. economic growth.05 tC per capita). The program also required installation of FGD systems on all new coal power projects and accelerated desulphurization retrofits to all coal based generating units larger than 135 MW. and integrated gasification combined cycles. The 3. R. China must adopt a sustainable energy development strategy.9. There are 2 Â 1000 MW ultra-supercritical units at China Huadian Corporation’s Zouxian power plant in Shandong Province with unit 1 put into operation on 4th December. new power plants with unit capacities of 600 MW and more will all be required to be supercritical and about half of the newly built power generating units will be . about 123. the government stipulated a targeted 20% reduction in the energy consumption per unit GDP in 2010 relative to that in 2005 and a 10% reduction in SO2 emissions. R&D and demonstration on carbon capture and storage technologies should also be encouraged (Chen et al. OECD countries and 2. urbanization and a booming transportation sector. In the 11th Five-year Plan for National Economic and Social Development (2006–2010). Their coal consumption rate was 311 gce/kW h and their generation efficiency was 39.. In addition. Supercritical and ultra-supercritical systems Research on supercritical and ultra-supercritical systems in China started relatively late but has developed rapidly in recent years. Therefore. 2006). as displayed in Fig. improved energy utilization efficiencies. China Huaneng Group’s Yuhuan power plant (4 Â 1000 MW) in Zhejiang Province is China’s first commercially operated power plant using domestically made 1000 MW ultra-supercritical pressure boilers. will continue to be dominant in China’s energy scheme for a very long time.1 0 China OECD World Carbon intensity (exchenge rate) Carbon emission per capita Carbon intensity (KgC/2000 US$) 3 2. hydropower. the site will generate 22 billion kW h of electricity per year. Current status and development of clean coal technologies in China 3.1. 9. which emphasizes changes in the energy consumption structure with the development of new sources such as natural gas. China’s future carbon emissions will continue to increase (Chen. However. and limiting the development of energy intensive industries using inefficient technologies (Chen and Wu. The program of substituting large units for small units and other government policies to develop supercritical or ultrasupercritical units with capacities over 600 MW and large combined cycle units contributed greatly to reducing the energy consumption per kW h electricity supply in Fig. The first application of supercritical boilers in China was in 1992 with the start up of 2 Â 600 MW units at Shidongkou.5% in 2000.7 0. The two units belong to the Shanghai Shidongkou Second Power Plant. Per capita emission (tC/cap) 3. popularization of advanced technologies. The generation efficiency of the Yuhuan power plant is 45% and the coal consumption per kW h is 285.8 0.05 tC per capita in 2005.4 0. This program intends to phase out most of the existing 114 GW of small units by decommissioning about 50% of these inefficient small units by 2010. Energy conservation should also be emphasized through better energy management. Driven mainly by population expansion. 9. The development and status of the key high efficiency combustion and advanced power generation technologies such as supercritical and ultra-supercritical technologies. reaching 1.5 0. In December 2004. 66. large power projects.6 gce/kW h which is 80. 2006.03% per year from 1980 to 2005. circulating fluidized beds and flue gas desulphurization and NOx removal technologies will be introduced in this section. These reductions would be higher if they were replaced by 600 or 1000 MW units.8 million tons and CO2 by 220 Mt. The replacement of the existing 114 GW of small units in China with 300 MW class subcritical units will reduce coal usage by 90 Mtce and cut emissions of SO2 by 1. 2004). the supercritical unit at China Huaneng Group’s Qinbei Power Plant in Henan Province was put into operation as the first domestically made 600 MW supercritical unit in China.. The power generation efficiency of the Zouxian power plant is 45% and the gross coal consumption rate is 272. the Chinese government is attaching great importance to energy conservation as fundamental national policy.5 1 0. Xu / Energy Policy 38 (2010) 2123–2130 0. 4. 2008). From 2010 to 2020. a program was implemented to replace small units with large units in 2007. Coal.

Shenhua Group Cooperation Limited. with a preliminary design of a 1000 t/d gasifier now completed.. 3.2. Flue gas desulphurization and NOx removal In 2005. Jinan Boiler Works and Wuxi Boiler Works. Tsinghua University developed and patented an advanced water-cooled square cyclone featuring a curved inlet to accelerate particles to increase the separation efficiency with boilers having capacities of 75 and 150 t/h (Lu et al. Both production lines begin commercial operation in 2008. 2007–2008). 3. which will reduce SO2 emissions by 4. twostage dry feed entrained flow bed coal gasification. Sichuan Boiler Works. whose main shareholders are the State Power Grid and the Sichuan Bashu Electric Power Development company. China has made great progress on coal liquefaction technology in recent years. Chen. nonslag and slag two-stage entrained flow bed coal gasification. 2007. In 2006. Therefore. the localization rate of desulphurization equipment is constantly increasing.16 million tons of indirect oil production by the end of 2007. With support from the State Economic and Trade Committee of China (SETCC). the market has extensive competition.2. gasification is one of the most important links among the coal transformation technologies. experts estimate that the installation rate of SCR systems for power generation will reach 10% in 2010. including at the China Huaneng Group’s Kaiyuan power plant consisting of two lignite-fueled 300 MW CFBs. would be the largest CFB plant in the world. LTD in Ordos. with the engineering done in France and the manufacturing being shared between Alstom and the Dongfang facilities (Morin. or biomass. the National Development and Reform Commission and the Ministry of Environment Protection jointly issued the 11th Five-Year Plan for SO2 Pollution Control for Existing Coal-fired Power Plants. 3. Hangzhou Boiler Works. Xu / Energy Policy 38 (2010) 2123–2130 2127 ultra-supercritical. Several selective catalytic reduction (SCR) demonstration projects are in operation with about 6000 MW of SCR units under construction. coal-water slurry gasification with opposed multi-burners. Shenhua Group Cooperation Limited will finish their first production line of 1. An intermediate test facility with a 36 t/d 2-stage dry-feed pressurized gasification plant has been built by the Xi’an Thermal Power Research Institute. there were more than 100 desulphurization companies operating in China with more than 40 desulphurization companies having finished projects with capacities over 200 MW. In addition.3. R. The multi-nozzle striking flow coal slurry-feed gasifier was successfully developed by Huadong Science and Technology University. 2004). Circulating fluidized beds The fluidized bed combustion process facilitates power plants firing a wide range of fuels while meeting stringent pollutant emission requirements. China is currently building a 600 MW CFB plant that.9 million tons of (China Desulphurization Industry Report. and coal-water slurry gasification with multiple materials. 2007).2. 221 projects.2. Consequently. into carbon monoxide and hydrogen by reaction of the raw material at high temperatures with a controlled amount of oxygen and/or steam. At the end of March. DME (dimethyl ether). Currently. with oil imports increasing each year to 164 million tons by 2006. the Institute of Engineering Thermophysics. such as coal. At present. Inner Mongolia have been in good condition since 2004. The China Coal Research Institute. The capital cost of desulphurization has fallen from 1000 RMB/kW in the 1990s to about 200 RMB/kW now. the Chinese Academy of Sciences. Gasification Gasification is a process that converts carbonaceous materials. 19 Texaco gasifiers are in service in China with 12 Shell gasifiers under construction or put into service in 2006.. Since then about 40% of the new units have been fitted with FGD systems. China’s first large scale CFB.1. the first 210 MW CFB 1025 t/h boiler was successfully put into commercial operation in Jiangxi. 90% in 2020 and 95% in 2030. with a 1150 t/d gasifier put into operation in October 2005. 3. Thus. including Tsinghua University. with the specific purpose of proving Alstom’s capability to successfully design and build large CFB boilers in China. Alstom supplied the CFB in cooperation with Dongfang Boiler. supercritical units will account over 15% of the total power capacity by 2010 and 30% by 2020 (Huang. The primary gasification technologies being developed in China are ash agglomerating fluidized bed coal gasification. 2003). The oil demand is expected to increase considerably due to significant growth of the energy consumption in the transportation sector. China Datang Group’s Honghe power plant and China Huadian Group’s Xunjiansi power plant.1. with significant growth of highway transport and dramatic growth of car usage. Demonstration projects by the Shenhua Group Cooperation Limited and Yitai BIHI-TECH Co. Shanxi Coal Chemistry Institute of the Chinese Academy of Sciences. China. and the Yankuang Group have developed direct or indirect coal liquefaction technologies. A major milestone in the process of CFB technology transfer is the Baima project. In 2007. Gasification is a very efficient method for extracting energy from many different types of organic materials and also has applications as a clean waste disposal technique. covering . and hydrogen (Chen and Wu. with the oil mainly coming from the Middle East. if successful. 47% of China’s domestic oil consumption.08 million tons of direct oil production and Yitai BIHI-TECH Co.. This plant is now in operation as a 300 MW demonstration plant. There are also many research institutes and companies researching CFB technologies. For energy security reasons. the ease of scale-up. 30% in 2020 and 50% in 2030. The core coal liquefaction technologies have been mastered and are ready for industrialization. China’s existing coal-fired power plants are required to install flue gas desulphurization units with a total capacity of 137 GW.2. petroleum. the capital and operating costs of high-efficiency NOx removal technologies is relatively high. Coal transformation 3. of which 208 GW had been put into operation. Based on the development trends. with substantial opportunities for further development in the CFB field. coal-fired power generation units with FGD systems accounted for 30% of the total installed thermal capacity. There are several 300 MW CFB units in operation.ARTICLE IN PRESS W. coal. According to this plan.1. LTD will finish their first production line of 0. the total capacity of contracted projects by desulphurization companies was 374 GW. In addition there are many other 300 MW CFB projects in China planned for implementation on a co-production or license basis. At the end of 2006. low emissions capabilities and fuel flexibility make circulating fluidized beds (CFB) a serious option in China for mid-sized (300–450 MW) and larger (400–600 MW) utility units. to develop alternative transportation fuels including methanol. large oil imports should be avoided and China should use its most abundant resource. The Baima plant belongs to the Sichuan Baima CFB Demonstration Power Plant Co Ltd. 2008). while the installation rate of FGD systems will reach 80% in 2010. Liquefaction A steadily increasing demand for oil has made China a net oil importer since 1993.

The Institute of Coal Chemistry of the Chinese Academy of Sciences is providing technical support to the Shenhua Group. In 2006. China. These institutes are cooperating with foreign companies. such as Texaco/General Electric (GE). 2008a). methanol-to-olefins (MTO) or methanol-topropylene (MTP) plants. Fig. The fly ash filters can be made by the Dalian Jizhong Co. and the balance of the plant control and instrumentation system. China is now beginning research and development of low heating value gas turbines. the gas and steam turbine combined cycle consisting of a 171 MW gas turbine. Since 1994. The Shanghai Boiler Works.6 Mt/a of DME is produced from methanol and demonstration plants for MTO/MTP are planned by the government (Chen et al. the Yitai BIHI-TECH Co. Tianjin. understanding and using foreign technology. China aims to develop domestic IGCC plants by importing. The 5 Â 104 Nm3/h air separation units can be made domestically with a 6 Â 104 Nm3/h air separation unit being designed and fabricated in China. Ltd. operating the plant with near zero carbon emissions to prove the economic viability of the GreenGen plant to prepare for commercialization. and the Lu’an Mining Group (China Securities News.) and Siemens. build a 400 MW IGCC plant. 3. optimize the gasification technology and develop an H2 and CO2 separation system. The third stage from 2013–2015 will build a 400 MW GreenGen demonstration plant including H2 production and fuel cell and H2 power generation with CCS. 300 and 400 MW IGCC power units are preferred based on the current gas turbine capacity. a 110 MW steam turbine. 2007).3. total methanol consumption in China was around 8. The internal parts of the gasifier are still manufactured abroad and then assembled in China. the first near-zerocarbon-emission IGCC power plant in China. and a syngas purification system with a processing capacity of 160. Tanggu District. the IGCC was selected as one of the key technologies for future power generation in China according to the National Program for Medium-to-Long-Term Scientific and Technological Development (2006–2010) issued by the State Council of China. Ltd. There are now 18 IGCC power plants with a total capacity of 4200 MW in operation and 12 IGCC power plants with a total capacity of 3800 MW under construction worldwide. Domestic electric power design institutes now have the ability to produce general designs of IGCC power projects. . Xu / Energy Policy 38 (2010) 2123–2130 Demonstration projects will be built by the Yankuang Group. Shell. The main projects are the coal gasifier with a processing capacity of 2000 tons per day. clean. This demonstration project with an investment cost of 1. and affordable use of coal. However. 10. with increased localization. Lu’an Mining Group. the Dalian Jinzhong Works and others can manufacture the outside shell of the gasifier with fabrication facilities for 2000 t/d gasifiers. The first stage from 2006 to 2009 is to develop a 250 MW IGCC power plant and to further investigate the polygeneration options. eleven domestic research institutes have started to studies of the IGCC technical feasibility under the IGCC research leadership group. This project has three stages. and others. The first IGCC demonstration power plant was built in the 1980s. The Huaneng Group launched the GreenGen project in Haror Industrial Park.. F class gas turbine power plants designed by domestic power design institutes have been put into service. MHI (Mitsubishi Heavy Industries. Combined Cycle Islands. Integrated gasification combined cycle (IGCC) The IGCC technology has been under development since the 1960s worldwide. The second stage from 2010–2012 will improve the IGCC and polygeneration systems. Chen. About 0. R. Since 2003 China has imported manufacturing for E class and F class gas turbines from GE.739 m3/h. especially pilot testing of hydrogen production and fuel cell power generation.ARTICLE IN PRESS 2128 W. a waste heat boiler.86 Mt. Not only does it offer an alternative vehicle fuel. and the Asian Development Bank to develop this technology. but it can also be used as a feedstock for dimethylether (DME). Methanol is an important chemical feedstock that can also be used as an alternative liquid fuel to oil. Location of planned IGCC projects. of which around 65% was produced from coal. domestic manufacturers are now capable of fabricating the internal parts from the fabrication drawings. China’s overall goal is to form clusters of these advanced coal technologies and support the development of China’s energy equipment manufacturing industry to achieve efficient.58 billion RMB went into operation in April. In 2006. Key technology innovations in the Institute of Engineering Thermophysics of the Chinese Academy of Sciences helped the Yankuang company build the first coal gasification-based polygeneration system with an output of 60 MW and 240 thousands tons of methanol per year.

The pilot project is capable of recovering more than 85% of the carbon dioxide from the power plant flue gases and can. According to the IPCC special report on CCS and other publications. 3. 10. and research on thermal-to-power conversion processes in gas turbines. industrial projects and international projects have been launched to develop CCS in China. basic research on high efficiency catalytic reforming of natural gas and syngas. Also. but IGCC offers better air pollution control. and lower costs to add CO2 capture (to a new plant). 2005. phase two is defining and designing a demonstration project from 2010 to 2011. MOST signed two Memoranda of Understanding (MoU) on Carbon Dioxide Capture and Storage with the UK in December. IGCC offers a similar efficiency to that of USC plants.3. MOST is organizing experts to design a ‘‘Program for CCS Technology Development in China’’. The solution can be recycled for reuse. thus. The costs of the various coal-fired power generation methods in China are listed in Table 1 (Electric Power Planning and Design Institute. which plays a dominant role in the Chinese oil and gas industry. The center will build 2 Â 660 MW USC units with CO2 capture at Shanghai Shidongkou Power Plant. Chen. 3. 3. CO2 storage and utilization in the Jilin oil field and to provide technical support for CO2 storage and enhanced oil recovery (EOR). with all of its equipment domestically made. The National Key Technology R&D Program has supported strategic studies on CCS with emphasis placed on the applicability of CCS in China and its impact on energy systems and GHG emissions. National science and technology programs for CCS in China There are three major national science and technology programs in China sponsored by the Ministry of Science and Technology (MOST): the National Key Technology R&D Program. Xu / Energy Policy 38 (2010) 2123–2130 2129 Table 1 Cost comparison of different coal-fired power generation systems in China. 2008.4. including research on enhanced oil recovery. the possibility for polygeneration. Zhejiang Province. PetroChina. the largest oil and gas producer and distributor in China. carbon capture absorption. The table indicates that the IGCC unit cost is still much higher than that of other kinds of coal-fired power generation plants. the cost of electricity from an IGCC plant with carbon capture appears to be less than from a normal pulverized coal (PC) plant with carbon capture (comparing new plants built from the outset to do this). The EU-China Joint Declaration on Climate Change was published at the EU-China Summit held in September. In addition there are many other IGCC projects in China planned for implementation.99%. The cost per ton of avoided CO2 emissions is likewise lower for IGCC systems with carbon capture and storage.4. The system uses a chemical solution (MEA) to absorb and separate carbon dioxide from fuel gases at high temperatures. lower water demand. Both MoUs contain common objectives to be completed under the three phases of the collaboration: phase one is exploring the options for near-zero emissions coal technology through CCS in China during 2006–2009. 2008). and phase three is constructing and operating a demonstration project from 2012 to 2015.7 IGCC 400 Class 7751 504 CFB 300 4799 354. basic research on polygeneration systems with syngas co-production from coal gas and coke oven gas. The COACH project selected the Bohai basin to investigate the storage potenial with Shandong Province selected to assess CO2 emission sources (Vincent et al. 2005 and with the Europe Committee in February.ARTICLE IN PRESS W. will build a 200 MW IGCC power plant and retrofit a 120 MW combined cycle power plant to use IGCC in Dongguan. However. reduced solid waste. marking the formal start of innovative research led by the Chinese government. Unit type Capacity (MW) Unit cost (RMB/kW) Reference electricity price (RMB/MW h) PC+FGD 300 4596 352. The USC plants are cheaper. The overall objective of COACH is to prepare for large-scale use of coal for poly-generation with CCS. Ltd. with the current technology. and the National High-tech R&D Program (863 Program). Here. The declaration stated that ‘‘we will aim to achieve the following co-operation goals by 2020: to develop and demonstrate in China and the EU advanced. has operated China’s first CO2 storage and usage project at the Jilin Oil Field since 2006.4. Four key projects are been implemented under the 973 Program.8 2006. Subsequently. China’s industrial development of CCS Some Chinese companies have already started their own CCS research.7 SC+FGD 600 3919 321. China Huaneng Group and Shanghai Electric Company set Greenhouse Gas Reduction Research Center in December. Carbon capture and storage technology Carbon capture and storage (CCS) is one of the potentially most important technological options to address climate change in the future. carbon capture adsorption. COACH involves 20 participants including 12 European partners and eight Chinese partners. and its success has laid the foundation for long-term development of IGCC and polygeneration systems in China. International partnerships on CCS China is one of the initial members of the Carbon Sequestration Leadership Forum (CSLF) and MOST actively represents China within this forum. 2007 involves . Three research areas have been funded by 863 Program.1.. 2006. The primary goal of this project is to develop the key technologies for the exploitation of CO2-containing natural gas. To support the first phase of the cooperation. The China Huadian Corporation will build a 200 MW Banshan IGCC power plant in Hangzhou. the standard coal price is assumed to be RMB 430/t and the annual operating time is 5000 h. Moreover. the National Basic Research Program (973 Program). 2006). The project was designed and developed by the Xi’an Thermal Power Research Institute. Guangdong province. The locations of these IGCC projects are shown in Fig. the Europe Committee has supported the Cooperation Action within the CCS China-EU (COACH) project while the UK has supported the Near Zero Emissions Coal (NZEC) initiative. R.4. 3. 2008 put into operation in Beijing a post-combustion carbon capture facility at their Beijing thermal power plant that has successfully captured carbon with a purity of 99.0 USC+FGD 1000 3924 310. and carbon storage technologies. The China Huaneng Group on 16th July. trap 3000 tons of CO2 annually.2. near-zero emissions coal technology through carbon capture and storage’’. Dongguan Electricity and the Chemicals Industry Co. Many national research programs. The NZEC Initiative launched in November.

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