NH3 Fuel Conference 2018

NH3 Energy+ Topical Conference in AIChE Annual Meeting

Cost Evaluation Study on Low Carbon

Ammonia and Coal Co-Fired Power
Generation

Oct. 31st, 2018

JGC Corporation
K. Hiraoka, Y.Fujimura, Y.Watanabe, M.Kai
Institute of Applied Energy
K.Sakata, Y.Ishimoto, Y.Mizuno
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 Contents

1.  Background
-  Objective of Ammonia Introduction as Fuel
-  Our Definition of Low Carbon Ammonia in This Study

2.  Premise of Study

-  Gas Price as Feedstock and Utility in Ammonia Production
-  Cost of CCS in UAE and in Japan

3.  Results and Discussion

-  Cost Estimation of Ammonia Production and Supply to Japan
-  Cost Estimation of Power Generation by NH3-Coal Co-Firing and NH3 Firing

4.  Summary

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 Objective of Ammonia Introduction as Fuel

Increase of threat due to Movement for reduction of CO2

global warming issue emissions has gained momentum.

Technology for stable firing of ammonia and low NOx emissions

has been developed in Japanese national project(SIP*).

CO2 emissions from power generation sector are large in Japan.

(Approx. 1/3 of total CO2 emissions are from power generation sector)

Application to ammonia-fired thermal power generation

is desired to reduce the large amount of CO2 emissions
* SIP stands for Cross-ministerial Strategic Innovation Promotion Program

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 Our Definition of Low Carbon Ammonia
① Production from Fossil Fuel Integrated with CCS

Feedstock:Fossil Fuel NH3 Production Marine Thermal

CO2
Transportation Power Station
Natural Gas
CO2 from feedstock CCS
and utility is stored. Electricity Cost?
Scope of Study
②Production from Renewable Energy
Water Nitrogen

NH3 Production
Renewable H2 Production CO2 Marine Thermal
Energy CCS Transportation Power Station
CO2 from utility is stored.
( In the case that fossil fuel is used as fuel for production) 4
Supply Chain of Low Carbon Ammonia

Overseas (UAE)

Natural Gas Ammonia Ammonia

Loading
(Feedstock) Production Liquefaction

Cost of CCS Marine

Cost of CCS
in UAE Transportation
in Japan

Power Ammonia
Electricity Unloading
Generation Re-evaporation
ü  NH3-Coal Co-Fired
ü  NH3 Fired Domestic (Japan)

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 Premise of Study (1/3)
Items Values
NH3 Supply Amount in Japan 1.27 Million Ton/Year
Ratio of NH3 and Coal Co-firing 20 %-NH3 on HHV Basis
in Power Generation
Efficiency of Power Generation on 36.5 % on HHV Basis
NH3-Coal Co-firing/Coal firing at Power Generation End
(Boiler power generation)
Efficiency of Power Generation on 50 % on HHV Basis
NH3 firing (Gas-turbine power generation) at Power Generation End
Operation Period 30 Years
Capacity Utilization Ratio Power Generation：80 %
Other Facilities：90 %
Currency Exchange Rate 121 JPY/USD
ü  Scope of CAPEX/OPEX
CAPEX*：Plant Construction Cost, Decommissioning Cost
OPEX*　：Feedstock Cost, Utility Cost, Labor Cost, O&M Cost
　　　　　　Taxes, Insurance Fees, Overhead Costs, Cost of CCS
* CAPEX/OPEX were set by taking information from public reports and hearing of experts into consideration.6
 Premise of Study(2/3)
ü  Determination on Price of Feedstock and Utility
Timing of large NH3-coal co-fired power generation commercialization
is assumed to be around 2025.
　→ Price has been determined taking future market into consideration.
Items Unit Value
Natural Gas Price in UAE 2.6 USD/MMBtu
Electricity Price in UAE 7.1 US cent/kWh
Electricity Price in Japan 10.3 US cent/kWh

Marine Fuel Oil 4.5 US cent/1,000 kcal

Pure Water 4 USD/t
Industrial Water 1 USD/t
Coal Price in Japan 60 USD/t-Coal
ü  Levelized cost calculation method
∑ t ((CAPEX + OPEX ) × (1 + α ) −t / ∑ t (β × (1 + α ) −t )) α:Discount ratio（5 %）
β：Annual NH3 amount or
　　 annual electricity volume 7
Supply Chain of Low Carbon Ammonia

Overseas (UAE)

Natural Gas Ammonia Ammonia

Loading
(Feedstock) Production Liquefaction

Cost of CCS Marine

Cost of CCS
in UAE Transportation
in Japan

Power Ammonia
Electricity Unloading
Generation Re-evaporation

Domestic (Japan)

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 Premise of Study（3/3)
【Block Flow of Ammonia Production】 CO2 Applied to“Process
Applied to“Utility CO2
Natural Gas from Fuel Cost of CCS” Cost of CCS”
from Feedstock
(Feedstock)
CO2 from feedstock
is already
NG Shift CO2
separated.
Desulfurization Reforming Reaction Capture

Natural Gas
(Fuel) NH3 Liquified
Purification NH3 Production
Liquefaction
Ammonia

Cost of CCS Unit Value

Process Cost of CCS in UAE 35 USD/t-CO2 (without capturing cost)
Utility Cost of CCS in UAE 50 USD/t-CO2
Cost of CCS in Japan 125 USD/t-CO2
* These values were set by taking information from public
reports and hearing of experts into consideration. 9
Supply Chain of Low Carbon Ammonia

Overseas (UAE)

Natural Gas Ammonia Ammonia

Loading
(Feedstock) Production Liquefaction

Cost of CCS Marine

Cost of CCS
in UAE Transportation
in Japan

Power Ammonia
Electricity Unloading
Generation Re-evaporation

Domestic (Japan)
Supply Chain Cost

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 Estimation of NH3 Supply Chain Cost
Equivalent to
400 392
26.7 JPY/Nm3-H2
Distribution Unloading by heat-based conversion
350
Marine 80 USD/t-NH3
310 Re-evaporation
Ammonia Supply Chain Cost [USD/t-NH3]

300 Transportation
Unloading
250 Marine
Transportation Loading
200

150 NH3
Production Approx. 70 %

100 NH3
Production
50

0
Without With
Cost of CCS Cost of CCS
Estimated NH3 supply chain cost is lower than the target of H2 cost
(30 JPY/Nm3-H2 in 2030) from “Basic Hydrogen Strategy”, Japan 11
Supply Chain of Low Carbon Ammonia

Overseas (UAE)

Natural Gas Ammonia Ammonia

Loading
(Feedstock) Production Liquefaction

Cost of CCS Marine

Cost of CCS
in UAE Transportation
in Japan

Power Ammonia
Electricity Unloading
Generation Re-evaporation
Electricity Cost
LCA Domestic (Japan)

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 Estimation of Electricity Cost
(Comparison with Coal Fired Power
25
Generation) With Cost of CCS
21.7 JPY/kWh
20.2 JPY/kWh (18.0 US cent/kWh)
(16.7 US cent/kWh) 18.6 JPY/kWh
20
(15.4 US cent/kWh)
Electricity Cost in Japan [JPY/kWh]

Power
Cost of CCS Distribution Generation
15 in Japan
Re-evaporationUnloading
Cost of CCS Marine
in Japan Transportation
Loading 15.6 JPY/kWh
10 from NH3 Cost
Power
Lower than
Generation
Re-evaporation target：17 JPY/
NH3
/Distribution kWh (2030)
5 Production
Power from “Basic
Generation Unloading Marine Hydrogen
NH3 Transportation Strategy”,
Loading Japan
Production
0
Coal fired NH3-coal co-fired NH3 fired*
(NH3: 20% on HHV Basis)
Intermediate goal Ultimate goal 13
*Compared to other two case (boiler power generation), gas-turbine power generation is introduced for
 Comparison in Terms of Life Cycle CO2
emissions
1200
FF Extraction & Processing
FF Liquefaction
FF Local Transportation
1000 FF Marine Transportation
NH3 Supply Chain
Power Generation
Coal Ash Treatment
CO2 Emissions [g-CO2/kWh-e]

800 -52 % CCS in Japan

-69 %
600 -74 %
-81 %
400

-90 %
200

0 Coal-NH3 LNG Firing

Coal Firing LNG Firing Coal Firing NH3 Firing
Without CCS Without CCS With CCS Co-Firing With CCS With CCS
With CCS
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Calculated using the method presented by AIST at the 13th Int. Conf. on EcoBalance , October 11 2018, Tokyo, Japan
 Summary
•  NH3 cost difference between the case with and without the cost of CCS was
80 USD/t-NH3 in supply chain cost estimation.
The estimated cost meets the target of H2 supply chain cost in 2030 set
by the “Basic Hydrogen Strategy” in Japan by the conversion on heat basis.

•  Electricity cost of NH3-coal co-fired power plant is estimated as competitive

compared to that of coal power plant in the case of the cost of CCS is included.
Regarding NH3 fired power generation, that is the ultimate goal, electricity cost
originated from NH3 supply chain cost meets the target set by the “Basic Hydrogen
Strategy”.

•  Moreover, both NH3-coal co-fired and NH3 fired power generation brings the benefit
of CO2 reduction in terms of LCA.

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 Thank You for Your Attention!

This study was supported by the Council for Science, Technology and Innovation
(CSTI), Cross-Ministerial Strategic Innovation Promotion Program(SIP),
“Energy Carriers” (Funding agency: JST)

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