Luncheon and Registration

Introduction, Objectives, Agenda
Tim Cornitius, editor, Syngas Refiner

CO2 Sequestration Siting, Storage Issues
Mark Holtz, Associate Director, Bureau of Economic Geology, Gulf Coast Carbon Center, University of Texas, Austin
The Gulf Coast Carbon Center conducts large-scale field projects that demonstrate the viability of CO2 geologic sequestration and is establishing best practices of CO2 monitoring, measurement and verification using risk analysis. The center conducts economic modeling of the future Gulf Coast CO2 value chain and uses next-generation reservoir characterization to optimize CO2 for enhanced oil recovery (EOR). The center's Frio 1 field demonstration project has been successful in using monitoring and modeling techniques to measure subsurface storage of CO2, assure public and environmental safety and effectiveness of this process. The project has demonstrated the significance of two-phase trapping in assuring permanence of CO2 storage and developed enhanced screening methodology for EOR prospects. The center is also studying how to convert CO2-EOR to storage by permanently storing CO2 in the reservoir after EOR has been completed. This involved reservoir characterization and simulation for long-term storage as well as long-term measurement, monitoring and verification systems.

Building IGCC Plant with CO2 Capture/Carbon Management
Mary Zando, manager, AEP
AEP is building the first integrated-gasification combined-cycle (IGCC) power plant built in the US in nearly 10 years in Meigs County, OH. The 629-MW facility will be the first US commercial IGCC plant since Tampa Electric's Polk Power Station came online in 1996. Advances such as higher-efficiency gas turbines have moved IGCC technology forward since that time. GE Energy and Bechtel signed a front-end engineering design (FEED) agreement with AEP last fall and the Public Utilities Commission of Ohio approved cost recovery for the FEED this spring. If awarded the next-phase contract, GE would supply IGCC technology while Bechtel performs engineering, procurement and construction. GE and Bechtel's standard US IGCC project commercial offering allows for a single-point project-developer contact. AEP plans to build a second IGCC plant in New Haven, WV or Lewis County, KY. AEP is the largest US power generator and needs additional generation. Company officials said they believe an IGCC plant offers the right environmentally responsible, cost-effective customer plan. Reliability, capital costs and environmental results of modern gasification technologies have been extensively documented. CO2 is removed before the syngas is fed to the gas turbines in IGCC plants and can be economically captured for disposal in deep underground reservoirs or used in enhanced oil recovery or to produce coalbed methane.

Break

CTL Technology Reduces CO2 Output
Kelly Kindig, senior VP, chief scientist, Alchemix Corp.
Diversified Energy and Alchemix are accelerating the development of HydroMax, a large-scale gasification technology capable of converting hydrocarbons into liquid fuels and electricity. Preliminary projections indicate that liquid fuels can be economically produced via the technology when oil is less than $20/bbl and one plant can produce 242 million gallons/year of transportation fuel. Diversified Energy develops advanced renewable energy and alternative fuel systems, projects and technologies. Alchemix is a development stage firm that invented and patented the technology that is expected to reduce CO2 output over conventional coal gasification perhaps as much as 58%. The company has already spent $20 million on the technology that was invented in 2000 and patents filed for it in 2001. Kindig will explain how the technology can significantly reduce CO2 emissions and how the process can be made commercial as well as explain the overall mass and energy balances. A $30 million demonstration plant must be built and operated for six months to provide data needed to build the first commercial plant. It will take 18 months to complete the program so engineering contractors will have enough data to provide completion and performance guarantees. Financing will be done on the strength of long-term, off-take contracts and loan guarantees provided by the US Energy Policy Act of 2005 for coal-to-liquids plants. It will take about 30 months to complete detailed design, permitting and construction.

Generating Carbon Reduction Credits
Albert Lau, chief engineer, AES
The AES Corp. plans to invest $1 billion to expand its alternative energy business and bring to market new projects and technologies to reduce or offset greenhouse gas emissions (GGE). AES intends to expand its alternative energy business in wind power generation, biomass and the development of LNG terminals, and invest in projects and technologies that reduce GGE or create emission offsets under the Kyoto Protocol's Clean Development Mechanism. AES has committed to $100 million in investments that will generate over 17 million metric tons of carbon reduction credits through 2012. It is evaluating future investments in solar power, wave technologies, ethanol, biodiesel, methane-capture/conversion projects, synfuels and technologies to reduce GGE. AES started its climate-change business last year and is pursuing offset projects in the agricultural, reforestation, landfill gas and coalmine methane emission reduction sectors. It intends to become one of the largest producers of these credits within the next three years. The European Union's Emission Trading System and Kyoto Protocol require industrialized countries to reduce or offset GGE and will be increasingly important in the global effort to preserve the earth's ecosystem. They have also created a market for new, clean technologies and carbon emission offset credits. AES plans to become one of the largest producers of emissions offsets and realize an attractive financial return in this new market that represents a market size of about $10 billion a year.