United States
                  Environmental Protection
                  Agency
 Air and Energy Engineering
 Research Laboratory
 Research Triangle Park NC 27711
                  Research and Development
 EPA/600/S7-90/017 Dec. 1990
&EPA         Project  Summary
                   Technoeconomic Appraisal  of
                   Integrated Gasification
                   Combined-Cycle Power
                   Generation
                  Malcolm D. Fraser
                   A future competitive technology to
                 current pulverized-coal  boilers
                 equipped with SO2 and NOX controls
                 is the integrated (coal) gasification
                 combined-cycle  (IGCC) system,
                 because of its potential for increased
                 thermal efficiency  and very low
                 emission rates. However, IGCC is not
                 yet a proven commercial technology;
                 this fact will influence the rate of
                 market penetration of IGCC and its
                 possible impact on future emissions.
                 Several  private  firms, working with
                 the Electric Power Research Institute
                 (EPRI), have demonstrated the first
                 IGCC plant to supply electricity to a
                 U.S.  utility system  at Southern
                 California Edison Co.'s  Cool Water
                 Generating Station near Barstow, CA,
                 using Texaco's coal  gasification
                 process. This demonstration has
                 provided significant data for process
                 improvements and has indicated the
                 basic operability  of combined
                 chemical process/power generation
                 technology.  However, remaining
                 technical  questions  include:
                 operability of the Texaco gasifier at
                 full  throughput;  materials of
                 construction; plant operation over an
                 extended period of time with  high-
                 sulfur eastern coal;  and plant
                 availability/reliability.  The  most
                 significant gasification technologies,
                 in  terms of potential application to
                 IGCC systems, appear to be Texaco,
                 Dow,  British Gas  Corporation
                 (BGC)/Lurgi,  and  Shell.  One
 advantage of IGCC systems is their
 potential for phased construction of
 partial plant capacity to more closely
 match the currently slow electricity
 demand growth. Simple comparisons
 using generic cost and performance
 data indicate  similar  electricity
 generation costs  for  IGCC and
 competing  technologies.  The
 projected market of about 57,000 MW
 for new gas turbines from 1990  to
 2010 should  provide  significant
 opportunity  for phased  IGCC
 systems.
  This  Project Summary  was
 developed  by EPA's  Air and Energy
 Engineering Research  Laboratory,
 Research  Triangle Park, NC,  to
 announce key findings of the research
 project that is fully documented in a
 separate report of the same title (see
 Project Report ordering information at
 back).

 Background
  Projections into  the next century  of
 sulfur dioxide (SO2) and nitrogen oxide
 (NOx) emissions from  U.S. coal-based
 electric generating plants are significantly
 affected  by the many  assumptions that
 must be made. These  assumptions
 include: the rate at which existing coal-
fired boilers will be retired, as opposed to
being overhauled  for life  extension
purposes; the rate at which new coal-
based generating units will be built, either
to replace retired capacity or to increase
generating capacity from current levels;
                                                               Printed on Recycled Paper

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and the technologies that will be used in
these new units. One technology that is
emerging as  a future competitor  to
current  pulverized-coal  (PC) boilers
equipped with pollution control devices
[(e.g.,  Iow-N0x  burners and  flue gas
desulfurization (FGD)] is integrated (coal)
gasification  combined-cycle  (IGCC)
systems because of their potential for
increased thermal efficiency and very low
SO2 and NOX emission rates.
  However.  IGCC plants are  not  yet  a
proven commercial  technology  with
demonstrated benefits and reliably
competitive  costs. Thus,  there  are
technical risks associated with IGCC.
Because these technical risks and the
perceived  economics of  IGCC  will
influence its actual  rate of penetration,
and its  possible impact  on  expected
future emissions, the EPA authorized an
independent technical and  economic
assessment of IGCC systems.
  This  study involved  three  tasks
corresponding to three main  objectives:
(1)  technical  evaluation  of  IGCC
technologies and systems. (2)  developing
cost and performance estimates  and
comparing  IGCC with  competing  coal-
burning technologies,  and (3) evaluating
the  potential future  market  for  IGCC
application  to new power  generating
plants.
  In an IGCC plant,  coal is fed  to  a
gasifier, where it reacts with  steam and
oxygen to  produce a  hot raw fuel  gas.
The fuel gas is then cooled and purified
to  remove  particulates and  acid  gas
(hydrogen  sulfide).  Elemental sulfur  is
recovered from the acid gas. The  clean
fuel  gas is  burned  in  a  1090+°C
combustion turbine. The hot flue gas
(480-540°C)  leaving  the combustion
turbine is  cooled   by  generating,
superheating, and reheating steam  in a
heat recovery  steam  generator. This
steam is used in a  steam  turbine. Power
is generated  from  both the combustion
turbines and  the  steam  turbines.  The
primary reason for  integrating the
gasification  system with the  combined-
cycle plant  is that doing so substantially
 improves the overall  system  energy
 efficiency or heat rate.
   Although all components (i.e., gasifiers,
 gas coolers, acid gas removal systems.
 combined  cycles)  included in an  IGCC
 configuration  have, in some  way, been
 demonstrated  to  operate at  full
 commercial  scale,   they  have  only
 recently been operated in unison  in a
 complete system  to  generate  electric
 power. Integrated control and operation of
 such plants in a commercial environment
 must be demonstrated on a  large scale
before the majority of the electric utility
industry will seriously consider adopting
IGCC  systems  for electric  power
generation. Taking a step closer to  this
goal by resolving some of these issues is
one of the central  objectives of the Cool
Water Gasification Program, an IGCC
demonstration based  on Texaco's coal
gasification technology.
Cool Water Demonstration
IGCC Plant
  The  Cool Water  Gasification  Program
is an undertaking of a number of private
entities,  led  by  EPRI,  to  design,
construct,  and  operate the nation's first
IGCC power plant to supply electricity to
a utility system. The demonstration  plant,
consisting  of  commercial-scale
components and subsystems, is at the
Cool  Water  Generating  Station of
Southern  California  Edison Company
(SCE)  near Barstow, CA, about halfway
between Los Angeles and Las Vegas in
the Mojave Desert.  The Cool Water plant
began generating electricity  on  June 24,
1984,  and is  being operated by the
program for  a  5:year  demonstration
period. It is the  goal of  the program to
demonstrate  the  environmental  and
economic characteristics of  an   IGCC
power generation plant.
  The  Cool  Water plant  uses  an
entrained-bed, oxygen-blown Texaco
gasifier to convert  1000  tons; (907  x 103
kg) of coal per  day to a imedium-Btu
synthesis gas for power  production. The
net  plant output  is 90 to 100  MW,
depending  on  operating  conditions. The
program coal is  a  specified  Utah run-of-
mine coal with approximately 0.5 wt. %
sulfur.  The program has  also tested
Illinois No. 6 coal, containing 3.1  wt. %
sulfur, and  Pittsburgh No.  8  coal,
containing 2.8 wt. % sulfur.
  Gasifier performance at the Cool  Water
plant  has  been better  them originally
expected.   Single-pass   carbon
conversions have  been  greater than 98
wt. % when the plant is operated on Utah
coal. Also, the high carbon conversions
are  being attained at  lower  reaction
temperatures than  originally  expected.
The lower gasification temperatures have
 reduced oxygen  costs and  extended
 refractory   life.  Actual  oxygen
 consumption has been 6% lower than the
 design value.  Gasifier  refractory  life is
 presently  estimated  to be 3-year  actual
 versus a  1-year design value on low-
 sulfur Utah coal.
   Plant heat rates  have  also been  in line
 with  the original projections  of  11,300
Btu,  kWh (11,920 kJ/kWh). The Cool
Water plant's high heat rate is the result
of several  early  design decisions to
reduce front-end project costs  for the
IGCC demonstration. This heat rate has
been  adjusted  by EPRI  to account for
differences  in equipment and conditions
to coincide with an estimated heat rate
for a commercial Texaco-based IGCC
plant  of 9,010  Btu/kWh  (9,500  kJ/kWh).
The  plant does not, for  example, use a
reheat steam turbine, and the gas turbine
is a less efficient current  version. Table 1
lists  the  main  differences  in equipment
and conditions between  the Cool Water
plant and  an  anticipated  commercial
plant, and the  effects  on   system
performance.  Equipment  sparing  was
also minimized.
  One major goal of the  Cool Water
demonstration plant is to  obtain a
comprehensive  package  of  data
demonstrating  the environmental
acceptability of the technology. Overall,
the environmental performance of  the
plant appears  to  be  satisfactory during
operations  with all three  of the coals
tested to  date. The  data on  overall
emissions from Cool  Water (based on
results from  continuous  monitoring
averaged over 3  to 6 hours  when  the
plant was operating at full  load) versus
the U.S.  EPA  New Source  Performance
Standards (NSPS) are shown in  Table 2.
The  Cool Water plant's SO2  emissions
are typically 10 to 20%  of the "allowable
levels under EPA's NSPS  for  coal-fired
power plants with stack-gas scrubbers.
Sulfur removal from  the synthetic  gas
(syngas) has  ranged  from  97  to 99%.
Overall sulfur recovery from the feed coal
is typically 97%. Stack emissions of NOX
and   particulates have  also  averaged
about 10% of  allowable  levels under the
NSPS. NOX emissions are  controlled by
steam injection or water  saturation of the
fuel  gas prior  to  combustion in the gas
turbine.
   The most significant operating problem
to date has been the failure of the radiant
syngas cooler  that occurred in December
 1986. A crack  appeared  in the top of the
 radiant cooler, apparently due  to a hot
 spot that developed there.  The hot spot
 was  attributed  to   plugging  in  the
 crossover duct between the radiant and
 the   convection  coolers, leading to
 maldistribution of the  hot gas in the
 radiant cooler. The crossover duct was
 redesigned to eliminate  plugging, the
 cooler was repaired,  and  the  main
 gasifier  went  back in  service  in  June
 1987. While the main gasifier was being
 repaired, the  plant continued  operating
 with the  backup quench  gasifier.

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Table 1. Adjustment of Copi Water Heat Rate and Comparison with Estimate for a Commercial Plant
- - .....;.""; i-iy ';-;;.' ;.-<•-• tef :-.£•;;:: « '-'• -; ?^fa/fl %0fW
:".".'"''.•'.- •""'.:'- '.'.:."':.'- ..vJ":'.\"'.'" ;i.pi"%--'::r.J7-""""-.-:
-"• •--— -••-• - ' 	 - '•- •"-'••• •-•'•-, — .-»- - '•"" •""•' 	 -• - --- • '
- ."..'r .-•••.:--- ••-:': -•-•••:-^: -.-'•-'•'"'.'•'-'• ••_•" I;!;";;;.-.''" -."r'r.r.
Cool Water Design Heat Rate , -•••"-.- ';-.-.-";• :;' : .1 ,.':;:.

Correction for Reheat Steam Cycle 1 ,:. .^ --.;.., ;--,,-;
(Cool Water uses' non-reheat steam cycle with lower steam" temperature
compared to commercial design.) ;
Correction for Slurry Concentration
CCoo/ IVater uses 60% coa/ s/ony feed versus 66.5% for commercial
design) • -- • -' - -: 	 ,....:,. ... . ... • , , ;,,-. .,..-:,

Correction for ISO* Ambient Conditions for Gas Turbine
(Cool Water heat rate is evaluated at27"C versus J5°C ambient as a
standard condition.) , '
Corrections for Oxygen Purity, Saturator, 1105" C Gas Turbine
(Cool Water uses higher-pressure, purer oxygen than is necessary and
a 1085" C turbine.) •.'...:,. ; ,
Correction for Plant Size .'
(Scaling up Coot Water to a commercial size would reduce plant
auxiliary loads as a fraction of gross power generation.)
Correction for 1260°C Gas Turbine
hM'kWh) ,^_;^

fieajt Rate ''Adjustment
• - -~ - :. ;.--. -,: • •• --
,,•,:.'.. ..;'j ir •?!;!-.;-;
-,::,38p(401)
• , ' ----- •- 	 -
-300' (31 6)' '-

230(243)
601 (634)
356(376)
486(513) -
* International Standards Organization. •: : \...'
Table 2. Heat Recovery Steam Generator (HRSG) Stack Emissions from the Cool Water Plant
Datainlb/l06Btu(kg/GJ)
' ' SUFCO9 1985
Permit Limit3 EPA Test 111. No. 6 EPA Test
SO2 O.r6(0.68>
(HighS)°
SO2 0.33 (0.14) 0.018 (0.008)
(LowS)<= . - ,
NOX 6.13(0.056) 0.07(0.030)
CO 0.07(0.030) 0.004(0.002)
Particulates - 0.0-1 (6.004) 0.001 (<0.001)
0.068 (0.029)
0.004 (0.002)
0.004(0.002)
0.009(0.004)
it. -* -• * 	 rt'H ,,, -.
ZPRiAdiustedCool1
-Water Heat Rate
i-:i 1,363 (11, 986)
-'. " : ::!".:. :. . .. .?. ... ' . .
: -.•:.:.'.': :,.;. /.
9,852 (1 0,392)
9,496(10,016)
9,010(9,504)
"'• Pitts. No. 8
Source Test
0.122 (0.052)
0.066 (0.028)
<0.002 (<0.001)
0.009(0.004)
; Estimated
Commercial Plant
Heat Rate
9,490(10,000)
9,009 (9,503)
Federal NSPS"
0.6<*C0.257)
0.240(0.103)
0.6(1(0.257)
NSf
0.03 (0.013)
a Emission limits from EPA permit (based on design estimates of plant emissions).
•>New Source Performarice Standards for a coal-fired power plant burning equivalent coal as Cool Water.
0 In the context of the Cool Water plant and its permit, high-sulfur coal is defined as coal containing more than 0.7 wt % S and less than 3.5 wt % S. Low-
 sulfur coal is defined as coal containing less than 0.7 wt %S.
d Emissions controlled to 0.6 Ib/TO6 Btu.
e0.8 lb/106 Btu uncontrolled emissions x 0.03 for controlled emissions.                             :
* NS: no standard.  ;
s Southern Utah Fuels Co.
  The gasifier, heat recovery steam
generator, and gas turbine  have  all
operated  reliably.  No changes in  their
fundamental  designs  are  deemed
necessary as a result of being tested as
components of an IGCC system at Cool
Water.
  The costs of the Cool Water Project-
capital,  operating,  and  maintenance
costs — have  been  collected  and
assessed by the program, and economic
evaluations continue.  The Cool Water
plant is a  demonstration  project  of
commercial-scale components for only a
single train  and not a  complete, up-to-
date, commercial multi-train plant, using
the most  advanced  technology  and
operating in an independent commercial
environment. The plant receives financial
backing from the  U.S.  Synthetic Fuels
Corporation  in  the  form  of  price

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guarantees. Thus,  Cool Water costs
provide  only  an  indication of  what
potential costs might  be  for'  a  truly.
commercial plant.
  As a  result of the experience gained
with  the  Cool Water project, a second-
generation  demonstration  IGCC  plant
similar to Cool Water could probably be
built at lower cost, because  no problems
were encountered whose  solution
required redesign or plant modifications
leading to increased costs. For example,
it was learned  that the radiant  syngas
cooler was  grossly overdesigned since it
produces over  90%  of the total steam
produced  in the  syngas  coolers.  A
smaller  syngas cooler  could lead to a
more optimum cooler design combination
and lower costs.
  The Cool Water operation is apparently
a  successful  near-commercial-scale
demonstration in every respect. However,
because of various cost constraints, the
plant was never designed  to compete
economically and  requires financial
guarantees  to operate. On the other hand,
the Cool Water experience has provided
significant  data  leading  to process
improvements  and indicating the  basic
operability  and success of combining
chemical process technology with power
generation. Cool  Water data,  when
extrapolated and analyzed,  support the
potential of IGCC technologies
  Although the Cool Water plant has
been successful, technical questions
must be resolved  before  utilities will
embrace even Texaco-based  IGCC
technology  in a significant way. Some of
these technical questions are:

• Operability of the Texaco gasifier at full
  throughput.

• Materials of construction.

• Plant operation  over an  extended
  period of time with high-sulfur eastern
  coals.

• Plant availability/reliability.

  Only  a  successful  demonstration
designed  to  be  competitive  in  a
commercial  environment  with the
advanced technology and operated over
a satisfactorily long runtime can resolve
these questions.

Gasification Systems
  It  is  possible  to design  an  IGCC
system  in a variety of configurations with
a  number  of different technologies  to
meet various  objectives.  The  most
important technology choice influencing
system performance  and  costs is,
however, the gasification  technology.
Several  different  types  of gasifiers  are
actively being developed  and  are in
different stages  of demonstration. EPRI
has sponsored a series of design  and
cost-estimate  studies  that illustrate  the
merits of each technology arid its recent
status  of development. In addition, a
comprehensive  evaluation  and
comparison  of  coal gasification
technologies is available in the relatively
recent literature.
  The  most  important gasification
technologies  (based  on their state of
development), in terms  of their near- or
mid-term potential application to IGCC
systems, appear to  be Texaco, Dow,
British Gas Corporation/Lurgi, and  Shell.
  Other technologies  have   been
evaluated for  this application but  appear
to be less well known or less developed,
with fewer resources  being available to
support their  full development. Table 3
compares the  most important gasification
technologies in terms of their commercial
and development status.
  The  technological  status of  IGCC
design  is  a  function  of the type of
gasification  system.  The several
gasification technologies   being
developed  for IGCC  application  are in
different stages of  development with
different kinds and amounts of technical
risk.

• Texaco-based systems are  further
  along  in  being  demonstrated at
  commercial scale  and so  carry  less
  risk,  although certain questions remain
  to be resolved.

• Less advanced in being demonstrated,
  the  Shell gasifier is still in the  pilot-
  plant stage, and the BGC/Lurgi  gasifier
  has reached prototype size. Scale-up
  of these  gasifiers  to  commercial  size
  may  yet  reveal  serious  problems
  requiring R&D for their resolution.

• The  Dow  system  is   being
 •demonstrated at commercial scale but
  cannot be considered  commercial
  because no information is available on
  its operation and financial  guarantees
  (from the Synthetic Fuels Corporation)
  were apparently required to make the
  technical  and economic risks involved
  acceptable.

  At this point in  time,  there  do not
appear to  be  any  insurmountable
development  requirements which might
prevent IGCC technology from achieving
its technical potential.
Advanced Gas Turbines
  Since the  efficiency of gas  turbines
increases as the inlet gas temperature is
increased, recent  developments  in
advanced materials and designs have led
to stationary turbines that operate at ever
higher  temperatures.  The  current
commercially  available General Electric
(GE) Model MS7001F gas turbine has an
operating temperature  of 1260°C. This
model  recently   replaced  Model
MS7001E, which operated  at  1095°C.
This new turbine incorporates the latest
technology  in  the   compressor,
combustion system, and turbine designs.
  The only emissions currently controlled
with the Federal NSPS for gas turbines
are NOX emissions. For  utility turbines
generating more than  9 MW  (30  MW
thermal), NOX generation  is  restricted to
75 ppm. The older  Model MS7001E gas
turbine  in an  IGCC setting generated
about 40  ppm, while the newer  Model
MS7001F  generates about  50 ppm  of
NOX.

Environmental Characteristics
  Sulfur removal  and recovery  is an
integral part of IGCC and, in fact, is one
of the inherent advantages of IGCC  over
other coal-based  electric  generating
technologies.  Direct coal  combustion
requires removal of sulfur as SO2  in a
dilute flue gas stream at low pressure.
The costs for flue gas desulfurization are
relatively high, compared to  the costs of
sulfur removal from coal gases. IGCC, on
the other  hand, involves  the removal of
sulfur principally as H2S  plus some COS
from the high-pressure, medium-Btu fuel
gas produced  in the coal gasifiers.  The
H2S is removed from  the coal gas and
then converted to elemental sulfur.  This
removal and recovery is  relatively cheap
and extremely efficient. Furthermore,
numerous H2S removal  and  sulfur
recovery  processes are commercially
used throughout the oil, chemical,  and
natural gas industries.
  IGCC  designs  all  have  excellent
environmental  characteristics compared
to  other power generation  systems, in
terms  of  S02, NOX, and   particulate
emissions, and solid wastes,  and there
are  solid  technical  reasons for IGCC's
environmental superiority.

Economics of IGCC Systems
  The  most recent and detailed  cost
estimates readily available  in   the
literature  for commercial  IGCC  plant
designs  appear   to  be  the  costs
developed in EPRI's most recent series
of  IGCC design studies for  the three

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Table 3. Status of Second-Generation Gasification Technologies for IGCC Systems

        Process                   Type                            Operating Units
                                                                       Date of Operation
     Texaco
     Dow


     BGC/Lurgi - Slagging

     Shell
Entrained Flow        •  Cool Water; 2 x WOO-TPD<> Coal: 117-MWe IGCC
                    •  UBE, Japan; 4 x 500-TPD
     .   .-•_.    ,      •  Tennessee Eastman; 2 x 900-TPD
                    •  fluhrchemie, Germany; 1 x 800-TPD

Entrained Flow        •  160-MWe IGCC at Plaquemine, LA
                       2 x 2400-TPD Gasifiers

Fixed Bed            •  600-TPD Unit at Westfield,  Scotland

Entrained Flow        •  250-TPD Pilot Plant in Texas
                       1984
                       1984
                       1983
                       1986

                       1987
                        1986

                        1987
 1 TPD = 907 kg/day.
major systems being developed (Texaco,
BGC/Lurgi, and Shell).  To  facilitate
comparative studies  of these  IGCC
designs and  different power generation
technologies, EPRI  has examined the
original  figures  and  made certain
adjustments to  bring all the costs to a
common basis expressed in common
dollars at a common location.
  Performance  estimates  and  costs
adjusted  to January 1987  dollars are
shown in Table 4 for PC plants and the
three  IGCC  designs.  These  cost
estimates indicate that the capital  costs
for IGCC systems appear to be within the
same  range as the capital  costs for
conventional  PC plants  and for AFBC.
Because  capital  cost  estimates,
especially for'new immature technologies
that do  not  have  long  commercial
histories, are not precise  and are often
optimistic, this conclusion is the only one
that  can be  drawn from  these generic
data. In. a specific  situation utility- and
site-specific factors  must be considered
to determine which technology is  more
economic. The capital costs for the three
IGCC designs show a significant range
that is dependent upon gasification
technology and design.
  Another  means of .comparing  power
generation technologies is to compare
the cost of the electricity generated. This
comparison is usually done via "busbar
costing  methodology": _to  compute  a
levelized cost of electricity (COE) over
the life of the plant. The levelized COEs
calculated by EPRI are consistently lower
for IGCC than for conventional PC under
the limited range of assumptions made.
However, these  differences in the  value
of the COE between PC  and  IGCC are
not significant and, by themselves, would
not be enough incentive for a utility  to
invest in an  IGCC system,  which  is
perceived at this point to be technically
risky compared to PC.
               One  of the  advantages  of  IGCC
             systems  is  that they  can  be highly
             modular  (i.e.,  contain  several parallel
             trains  of  gasification and gas turbine
             components). Therefore, IGCC plants can
             be  constructed  in  relatively  small
             increments (200 to 250 MW), resulting in
             the  important capability  for a utility  of
             conserving  capital.  The  modular
             characteristic of IGCC systems also leads
             to high potential equivalent availabilities.
             This characteristic also  leads to capital
             conservation  (by reducing reserve margin
             requirements)  and results  in  lower
             revenue requirements as  plants can be
             dispatched at higher capacity factors.
               Another  advantage  of  IGCC's
             modularity is that IGCC  can be added in .
             phases of partial capacity to more closely
             match load growth. There appears to be
             an economic incentive to add capacity in
             phases when  net present  values  of
             expenditures are  compared. Phased
             capacity  addition also appears to offer
             other benefits  compared to unphased
             capacity addition. These benefits include
             increased flexibility, the  ability to recover
             from sudden and unforeseen changes in
             load demand, reduction in (and deferral
             of)  "at-risk"  capital, and earlier entry of
             capital into the rate base.
               The value  of phased capacity addition
             may be  seen  by  comparing the  net
             present value of capital expenditures for
             all phases with the net  present value of
             capital  expenditures for an  unphased
             plant. In a recent study, the net present
             value  of capital  expenditures  was
             calculated for each of three load growth
             scenarios (5, 7, and 10 years) for adding
             the  capacity of one unphased IGCC plant.
             Savings due to phased  capacity addition
             ranged between about $200 and $400/kW
             for these examples.
               On the basis of simple comparisons
             using generic cost and performance data,
             the  economics of IGCC and competing
technologies  are  very  comparable, the
most economic choice  being determined
by  utility- and  site-specific  factors. To
obtain more  detailed information" on the
effects of these factors on the potential
cost-competitiveness of IGCC,  the Utility
Coal Gasification Association (UCGA) and
EPRI are each sponsoring  a  series  of
utility-specific  studies. The results  of
these studies should support more
definitive conclusions on'the economics
of IGCC and its acceptability to  utilities.
  Seven  such UCGA studies have been
concluded; and "organized  into a report.
Six of these 'studies included IGCC and
'conventional PC  plants  among  the
alternatives considered, and five of the
six found  phased  IGCC to  be more
attractive economically  than conventional
PC plants. Three  of the five found  even
unphased IGGC to be .more attractive; the
other two did not make this  comparison.
The sixth-study concluded that  PC was
more attractive; than unphased IGCC.
  Site-specific arid cost studies of IGCC
show sufficient potential for a number of
utilities to begin  preliminary planning
studies for  IGCC (e.g., 18).  However,
since  little additional baseload capacity
must be implemented now, many utilities
are  waiting  to  see how IGCC and the
various gasification technologies continue
to develop before seriously considering
the technology.

Potential Future Market for
IGCC Systems
  Projections of the total installed power
generation capacity  of various types  of
systems were obtained from base runs of
EPA's Advanced Utility Simulation Model
(AUSM).  According to  these projections,
made with  EPA's interim  base  case
scenario, the total installed  capacity for
coal-steam  plants  will  increase by
200,000 MW and  gas turbine capacity by
57,000 MW from 1990 to 2010.    .',,

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Table 4. Summary of Comparative Costs and Performance Estimates for PC and IGCC plants          :

                                Capacity—500 MWe; Illinois #6 Coal; Constant January 1987 Dollars
*.-..'•
Reference Coal-Fired,
Steam Plant
Sulfur Removal, %
NOX Emission, pprnv*
Heat Rate. BtulMJh>>
Total Capital, $lkWc
Levellzed Cost of Electricity at 65% capacity
factor, millslkWh
90
150
, 9,850
1,390
54.9
• Texaco Partial Shell Coal
Oxidation Gasification Process
95-97
50-75
9,010
1,540
52.7 '
90-99
50-75
8,720
1,490
50.8
,_ -IL
BGC/Lurgi Slagging
Gasifier
95-97
50-75 '"-
8,660
1,300
48.9
* 15% Excess O2, Heat Rate Corrected; 1260°C Combustion Turbine for IGCC Plants.
»1 BtufkWH - 1.055 kJ/kWh.
"Includes working capital, start-up costs, spare parts, land, royalties, and allowance for funds used during construction (AFUDC—all IGCC plants
 rated at 31°C.
  The  potential application  of IGCC
systems in this future power generation
market will be influenced by a variety of
factors, the most important of which  may
be  a  satisfactory  commercial
demonstration :of IGCC and IGCC's cost-
competitiveness. Utilities  must  have
adequate  incentive to  accept  the
technical risk associated with IGCC's lack
of a long operating history, The situation
that  appears  to  provide  the most
economic  incentive is  the concept  of
phased implementation.  As explained
above, phased implementation provides a
number of benefits in addition  to lower
overall revenue requirements, and  it is
possible that  IGCC will  be implemented
initially via this path.
  Thus, since  phased implementation
begins  with  purchasing  combustion
turbines  initially to provide  peaking
capacity,  it  is suggested  that  the
estimated  market for gas turbines  may
provide  a clue to the potential initial
market for IGCC. The projected market of
about 57,000  MW for new gas turbines
from  1990 to 2010 should  provide
significant opportunity for phased IGCC
systems. When the cost of natural gas
rises sufficiently to  make coal-derived
gas  cost-competitive,  gasification
systems and  steam turbines could be
added  to  form complete  IGCC plants.
Thus,  some   of  this future  peaking
capacity could gradually evolve  into
IGCC baseload capacity  that would
satisfy part of the anticipated market for
new  coal/steam  plants.  Additional
opportunities  for application  of IGCC
include repowering of existing coal-fired
steam plants  and complete IGCC plants
that  might be built as an  unphased
capacity addition in competition   with
conventional  PC or other  technblogies
such  as  atmospheric  iluid^bed
combustion (AFBC).


Conclusions
  The  following conclusions  were
reached as a result of this study:

  1.  IGCC designs  all have excellent
     environmental  characteristics
     compared to   other  power
     generation  systems,  in terms  of
     SOa,  NOX,  particulate emissions,
     and solid wastes.

  2.  The  several   gasification
     technologies being developed for
     IGCC application  (Texaco,  Shell,
     BGC/Lurgi,  Dow) are in different
     stages  of  development  with
     different  kinds  and  amounts  of
     technical risk.
                          I
  3.  The  Cool Water  plant, a  Texaco-
     based system, is apparently a very
     successful near-commercial-scale
     demonstration  for Western  low-
     sulfur coal  under  baseload
     conditions. Because of various cost
     constraints, the plant was  never
     designed  to compete economically
     and requires financial guarantees to
     operate. However, Cool Water data,
     when  extrapolated and  analyzed,
     support the future potential of IGCC
     technologies.

  4.  Nevertheless,  several  technical
     questions remain  to  be  resolved
     before utilities will embrace even
     Texacp-based IGCC technology in
     a significant way, such as:

     —Operability of the Texaco gasifier
       at full throughput.
   —Materials of construction.

   —Plant operation for at least a year
     with high-sulfur Eastern coals.

   —Plant availability/reliability

   Only  a successful commercial
   demonstration  with advanced
   technology,  operated  over  a
   satisfactorily  long  runtime, can
   resolve these questions.

5. A  number  of utilities  have
   conducted preliminary  planning
   studies for IGCC. However, many
   utilities  are  waiting to  see how
   IGCC and the various gasification
   technologies  develop  before
   seriously  considering the
   technology. Many feel that oil and
   gas   prices   must increase
   sufficiently relative  to that  of coal
   before coal gasification will  be
   economically competitive.

6. Phased  implementation may give
   IGCC  significant economic
   advantages. However, a utility must
   have access to oil or natural gas to
   be  able to take  advantage  of
   phased implementation, and must
   be  prepared  to   assume the
   economic risk of Increased reliance
   on natural gas or oil.

7. Simple cost comparisons of IGCC
   with  competing  technologies
   indicate that capital  costs may  all
   be within  the same range. The
   higher  energy efficiency of IGCC
   may  result  in slightly   lower
   levelized  costs  under a  limited
   range of assumptions.

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Recommendations
  This technoeconomic  appraisal  of
IGCC power generation  led to the
following recommendations:


  1. Because  of the  significant work
    which is  currently being done  to
    evaluate IGCC systems, it would  be
    desirable  to  follow up this current
    appraisal  with periodic updates and
    analyses.
2. Because utility attitudes, perceptions,
  and requirements are  of paramount
  importance  in determining  the
  potential implementation of IGCC, it
  would  be  desirable that  more
  extensive discussions  be held  with
  utilities regarding IGCC.
3. It is also desirable that the potential
  role  of  IGCC in repowering  be
  examined in  detail. However, site-
  specific  conditions are  particularly
  important,  and  studies  being
  conducted by  EPRI  could  be an
  important  future  source of
  information regarding the repowering
  potential of IGCC.
4. Since  phased implementation is an
  important concept  affecting the
  potential  employment of  IGCC,  it
  would  be desirable to incorporate
  phased  implementation  into  EPA
  utility models.

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   M. Fraser is with Science Applications International Corporation, McLean,  VA
     22102.
   Julian W. Jones is the EPA Project Officer (see below).
   The  complete  report, entitled "Technoeconomic Appraisal of Integrated
     Gasification Combined-Cycle Power Generation," (Order  No.  PB  90-272
     071 IAS; Cost: $23.00, subject to change) will be available only from:
            National Technical Information Service
            5285 Port Royal Road
            Springfield, VA 22161
            Telephone: 703-487-4650
   The EPA Project Officer can be contacted at:
            Air and Energy Engineering Research Laboratory
            U.S. Environmental Protection Agency
            Research Triangle Park, NC 27711
United States
Environmental Protection
Agency
Center for Environmental Research
Information
Cincinnati OH 45268
      BULK RATE
POSTAGE & FEES PAID
        •EPA
   PERMIT No. G-35
Official Business
Penalty for Private Use $300
EPA/600/S7-90/017

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