Project Scope and Relationship to China's Agenda 21

This project seeks to establish a demonstration power plant with high efficiency and low pollution, which will assist China to become less dependent upon coal as a source of energy. The project is based on programme areas 13A, 13B, and 13C of China's Agenda 21, and related to 18A and 19A.

1. Background

Coal has been the primary energy resource in China for many years and is used to meet 75 percent of all of China's energy needs. According to current predictions, coal will still be used to meet over 70 percent of China's energy needs by the year 2000. The ratio of burnt coal in power stations to the total production of coal in China is increasing: from the present 28 percent to around an expected 50 percent by 2030.

The process of using coal results in severe pollution to the atmosphere. In China, coal accounts for 90 percent of SO2 emissions, 70 percent of NOx emissions, and 73 percent of dust levels in the atmosphere. So, it is obvious that coal-fired power stations are one of the main air pollution sources. There is additional concern that possible further environmental pollution will be caused by China's reliance on coal, due to the continuous high speed at which China's economy is developing, and the commensurate need for more electricity.

One of the important measures to solve the environmental pollution problem caused by coal-fired power stations and, to increase their efficiency, would be the development of integrated gasification combined cycle (IGCC) power generation technology. PFBC-CC and IGCC have already become the main techniques acknowledged world-wide. PFBC-CC can burn high ash and high sulphur coal. Its investment and operating cost is lower that of IGCC, and its desulphurization efficiency (of 90 - 95 percent) is only somewhat less than that of IGCC.

Four commercial demonstration PFBC-CC plants each with 80 MWe output (one of which is 2X80MWe) have been built to date in China. The net generating efficiency of the first generation PFBC can reach 40 - 42 percent. Net generating efficiency for the more advanced second generation PFBC, which is now in pilot plant stage of operations, can reach 45-47 percent.

Research and development on PFBC-CC in China began in the early 1980's and was carried out by Southeast University as one of the National Key Technique R&D Projects. A 1 MWe PFBC test facility was built and experimental research has been conducted for more than ten years. The essential key techniques of PFBC are thus well known in China.

In 1991 China's State Planning Commission decided to establish a 15 MWe PFBC- CC pilot plant. Construction and operational testing of the whole plant are scheduled to be finished in 1995. Twenty-three units and 270 high quality researchers are involved in this work.

But to meet China's energy needs, it is more suitable to develop technologies for a 150MWe power plant.

PFBC-CC technique is at an early stage of development, so some technological difficulties will need to be overcome though the application of further research and development. Areas where technical assistance are required include control of erosion and corrosion; fouling of gas turbine; cleanup systems with high performance; long duration reliability of solid handling technique; and load regulating and controlling technique.

At present the first generation PFBC-CC is entering into its mature stage and should be commercialized by the end of this century. The first generation itself is the result of international cooperation between UK, USA, Germany, and Sweden. In the 21st century, China will require further international cooperation if it is to improve and commercialize the first generation PFBC, and if it is to develop a second and/or third generation capacity. Mutual benefits of such cooperation would be as follows:

• China's industry requires PFBC-CC power plants of not less than 100 MWe, and could accommodate a power plant of even 300 MWe in size. Therefore, in order to realize this rapidly, China should place great emphasis on international cooperation

• If clean coal technology is adopted in China, environmental benefits would accrue not only to China, but also to adjacent countries

• There is a broad market for clean coal power generation technology and equipment in China.

• Key Chinese institutions already have a solid foundation in dealing with PFBC-CC techniques, and are thus poised to accept additional international cooperation

• Long-term objectives
  • Establish a 150 MWe PFBC-CC commercial demonstration power plant.
  • In order to support the construction of this demonstration power plant, a Coal Fired PFBC-CC Technology Engineering Research Center will be set up.

3. Activities

• 3.1 In the beginning of the 21st century, a 150MWe PFBC-CC commercial demonstration power plant will be set up, in which a 125 MWe steam turbine generation system with super high parameters and a 25 MWe gas turbine generation system are used.
  • Developing a 400 t/h PFBC boiler to match 125MWe steam turbine with super high parameters

  • Developing a 25MWe gas turbine with inlet temperature 850oC and inlet pressure 10-12 bar which may be imported or produced by international cooperation

  • Verifying efficiency, economy, pollution performance and operating reliability and systematical data of the 150 MWe demonstration plant

    The duration of this activity will be six years.

• 3.2 Establishing a Coal-Fired PFBC-CC Technology Engineering Research Center.
  • Establish a second generation PFBC-CC comprehensive test facility with 1-3MWe generation ability

  • Conduct research and development of PFBC-CC key equipment and components (including simulation and scale up)

  • Conduct research and development of some high technology problems in PFBC-CC

  • Conduct a technical and economic analysis for coal-fired combined cycle generation system and the optimization of its total energy system

  • Conduct research on commercialization of PFBC-CC technology

  • Undertake cooperative research and development with foreign institutions and companies

    The duration of this activity will be five years.

    The implementing agencies are the State Planning Commission, the State Science and Technical Commission, and the Ministry of Electric Power Industry.

It is estimated that about US $87 millions is needed to carry out this project.

• 4.1 Establishing a 150 MWe PFBC-CC Commercial Demonstration Power Plant.
  • Chinese inputs
    • Most of capital construction cost will come from domestic loans
    • The Government will also support the cost of PFBC-CC plant adjustment and planning; the cost of beginning preparations and design for this plant; and the research and development costs
  • International cooperation
    • A portion of capital construction cost
    • The cost of importing technology and cooperation production
    • The cost of importing some necessary instruments, devices and parts which are not available in China
    • The expenses of foreign experts
  • Budget

    The total investment required to implement section 4.1 above of this project is US $81 million, of which international loans totalling $35 million are required. The Chinese government will provide $46 million, of which direct allocations will equal $10 million and loans will total $36 million.

• 4.2 Establishing the Coal-Fired PFBC-CC Technology Engineering Research Center.
  • Chinese inputs
    • Project management
    • The expenses for Chinese experts and other working staff, transportation, office facilities and the necessary equipment and instruments available in China
    • Technical materials and special know-how

  • International cooperation
    • The cost for some equipment and facilities which are necessary in carrying out the project but are not available in China.
    • Expenses of foreign experts;
    • Technical materials and special know-how imported from aboard.

  • Budget

    It is estimated that US $6 millions is needed to carry out this activity, of which $1 million is needed in foreign funds and the other $5 million is to be provided by Chinese government.

5. Benefits

Key environmental gains will be achieved through the establishment of the first PFBC-CC commercial demonstration power plant with high efficiency and low pollution. This plant will: save 36,000 ton of coal annually (generation efficiency being raised 3-4 percent); reduce SO2 emission by about 10,000 ton each year; reduce NOx emission by about 4,000 ton each year; and promote the new development of the boiler industry, especially gas turbine in China.

By around the year 2005, the net generation efficiency of PFBC plants in China will reach 40-42 percent, and the environmental emission will reach or approach the current standard of developed countries.

By the years 2020-2030, PFBC-CC plants should account for 20-30 percent of the market of all coal-fired power plants in China. This will result in great social and economic benefits.