Fernando Luiz Zancan Associação Brasileira do Carvão Mineral - ABCM Climate Change - Coal Overview Salvador - 10 September 2008
BRAZILIAN COAL INDUSTRY Resources: 31,7 billion ton (90% RS) Production - ROM (2007): 12,1 million ton; 60 % SC Saleable Coal 6,0 million ton - 51 % RS Companies: 15 PR (1) SC (11) RS (3) Number of Employees (2007): 5.010 Market Share (2007): 81,67 % Power Generation Revenues (2007): R$ 617 million
Sedimentary Basins in Brazil Incomplete geologic survey
BRAZILIAN COAL RESOURCES UF Jazida Recursos (10 6 t) % Paraná Cambuí 44 0,14 Sapopema 45 0,14 89 0,28 Santa Catarina Barro Branco 1.045 3,29 Bonito 1.601 5,04 Pré-Bonito 414 1,30 3.060 9,64 Cambuí Sapopema Rio Grande do Sul Candiota 12.275 38,67 Leão 2.439 7,68 Charqueadas 2.993 9,43 Iruí/Capané 2.688 8,47 Murungava 3.128 9,86 Santa Terezinha/Torres 5.068 15,97 28.591 90,08 PR RS SC Barro Branco Bonito Pré-Bonito Total (PR, SC e RS) 31.740 100,00 Santa Terezinha Source: Informative of Coal Industry DNPM / 2000 Mining Areas Candiota Leão Iruí / Capané Charqueadas Murungava
Candiota Mine - CRM
MINING RECLAMATION Copelmi Mineração
Underground Mining - SC
BRAZILIAN ENERGY MATRIX Wood and Biomass 13,1% Sugar Cane 13,9% Other renewable 2,7% % 100 80 60 40 20 0 14 86 World 45 55 Brazil Uranium 1,2% Coal 6,4% Renewable OCDE 2003 7,1% Non Renewable Natural Gas 9,3% Oil 38,4% Fonte: MME - 2006
BRAZILIAN ELECTRIC POWER MATRIX World: 2003 Hydro 16,3% Other Renewables 1,1% Coal 39,9% Brazil: 2005 Nuclear 15,7% Biomass 0,8% Natural Gas 19,3% Oil 6,9% Biomass 3,9% Natural Gas 4,1% Coal : 1,6 % Oil 2,8% Nuclear 2,2% 100 80 89,3 82,2 Non Renewable 60 40 20 10,7 17,8 Renewable Hydro 85,4% 0 Brasil (2005) Mundo (2003) Source : MME
Energy Consumption 500 400 300 Energy Grow 1970 2005 2,9% ao ano 1980 2005 2,3% ao ano (2005-2030) A B1 B2 C 4,3% 3,7% 3,1% 2,5% Cenário A Cenário B1 Cenário B2 million toe 474,5 2,87 X 402,8 356,5 309,3 1,87 X 200, Cenário C 100 59,1 165,0 (2005) 0 1970 1980 1990 2000 2010 2020 2030 Source : MME
Energy Offer (%) MATRIZ DE OFERTA DE ENERGIA (%) 100% 2,9 13,8 9,1 OUTRAS RENOVÁVEIS (4,3 H-BIO&BIODIESEL) 80% 13,0 18,5 5,5 PRODUTOS DA CANA LENHA&C.VEGETAL 60% 40% 1,2 14,8 13,5 6,3 3,0 9,4 6,9 15,5 HIDRÁULICA NUCLEAR CARVÃO MINERAL Coal GÁS NATURAL 20% 38,7 28,0 PETRÓLEO 0% 2005 2030 219 milhões tep e 44,5% renováveis 557 milhões tep e 46,6% renováveis Source :MME
ELETRIC MATRIX 100% 2,3% 2,3% 1,5% Derivados do Petróleo 95% 90% 85% 0,0% 0,1% 80% 75% 70% Source: MME 9,9% 10,1% 1,6% 1,9% 2,7% 2,3% 2,6% 3,3% 1,1% 1,3% 4,1% 83,9% 101 mil 84,0 % 80,8% 143 mil 83,2 % 9,3% 2,9% 76,1% 2005 2015 2030 Gás Natural Carvão Carvão = 3,69 X Nuclear Eólica e Outros Biomassa Hidráulica 221 mil Total (MW): 83,1 % Renewable energy:
Growth of Capacity HydroPower X Water Storage (reservoir) 80.000 Potência Hidráulica Instalada 300 Capacidade de Armazenamento (Usinas Representando 75%do Armazenamento Total) [MW] 70.000 60.000 50.000 40.000 30.000 20.000 10.000 Armazenamento em [GWmês] 250 200 150 100 50 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Shows more thermal power generation operating in base load Source: ONS, ANEEL
Fertilisers Amonium Sulfate 1.000 toneladas 1200 1000 800 600 400 200 Sulfato de Amônia - Produção Doméstica e Importação Consumption 2007: 3 million ton Production 10 % 0 1994 1995 1996 1997 1998 Importada Doméstica USITESC = 300.000 a 400.000 tpy
USITESC 440 MW Metropolitana Carvão- ROM Água ENERGIA Amônia Criciúma Carvão-ROM Produção de rejeitos Rejeitos Existentes Calcário Termelétrica USITESC Cinzas Uso Industrial Produção de Fertilizante Uso Agricultura Sulfato de Amonia (Fertilizante) Distribuição Fertilizante Recuperação ambiental 15 Disposição
New Technologies Coal to liquids (CTL) and fertilisers + CCS CBM methane and ECBM UCG- In Situ Gasification + CCS Source: LLNL/USA CONSOL/Pensilvania/US
Brazilian Coal Power Projects Associação Brasileira do Carvão Mineral PARANÁ Figueira (repotenciação) 127 MW (CFBC) SANTA CATARINA USITESC 440 MW (CFBC) RIO GRANDE DO SUL Candiota III (CGTEE) 350 MW (PC) Jacuí 357 MW (PC) Seival 500 MW (PC) CTSUL 650 MW (PC) Seival I (Uruguai) (Tractebel) 340 MW (PC) Seival II (MPX) 600 MW ( PC) 3.364 MW Imported Coal : 1.080 MW (PC)
CONSIDERATIONS Energy for developing countries, like Brazil, must be affordable, environmental friendly and available to all. (9,0 million people is without energy and 75 million with energy subsidized) The World must figure out a way to permit growth in developing nations while restricting emissions in the world. The world must understand that pollution has no frontiers and misery still is the worst environmental problem.
Important Issues to Consider Associação Brasileira do Carvão Mineral It s necessary to create a global alliance and establish new trade models, development and technological financial assistance for the developing countries to apply CCTs and CCS deployment. Create a Financing Vehicle - Carbon Fund under the UN Convention UNFCCC to pay marginal costs. Others specific financial instruments: green funds; loan guarantees or direct loans, extended payment periods, tax exemptions and/or credits; direct subsidies for construction and/or production; export credit insurance; improvement of political and credit risks. Above all, predictable and non-discriminatory energy policies. Establish partnerships and create financial assistance to promote R&D&D and Human Resources in developing countries. No CO 2 taxes in developing countries fossil fuels until the technology for CCS is cost effected and can be in a commercial scale.
We need: The Brazilian Coal Industry View to develop and adapt technologies CCTs and CCS suitable for local conditions. It needs international help. Capacity building, Clean Coal Research Center and networks for R,D&D The fossil Industry is doing its voluntary contribution and looking ahead with actions: - Coal and Oil network to develop technology for Carbon Capture and Storage is being started. - To increase public perception on CCS in Brazil - International and Brazilian Conferences on CCS and Climate Change - R&D Centers creation for : CCTs and CO 2 storage
Key Strategic Technologies CO Emissõe CO2 2 Emissions Série1 Série2 Série3 Série4 Série5 Série6 Série7 60.000 Efficiency Improvements Fuel Mix Ren ewab le s Hy drog en 50.000 Carbn Cpture and Storage Efficiency 40.000 Nu c lea r 30.000 CCS 20.000 10.000-1990 2000 2010 2020 2030 2035 2050 Fonte IEA, Energy Technology Perspectives: Scenarios and Strategies to 2050, 2006
Brazilian Hydrotermic Electric System Coal is not in base load, low CO 2 for the integrated electric system for the total energy production. Coal is flexible, can be stored system. and maximize the electric At this moment, there is a market to Export Electricity to Uruguai and Argentina - Coal Power is helping. Brazil is so dependent from hydropower, climate change effects can change the rain regime and cause problems to the security of electricity supply. Back up fossil might be important in the future, and coal can play a important role.
Brazil fossil fuels perspectives Problems to make new hydro permitting process. difficult and long Constrains to supply natural gas to South of Brazil coal gasification and methane production has an opportunity. Fossil fuels could be a backup for climate change influence in renewable energy systems. There is synergy among Coal and Oil Industries to increase energy security and mitigate climate change. Petrobras has expertise in deep reservoirs to survey and produce oil and gas that may be applied in coal industry. Coal resources underestimated : incomplete inventory.
Climate Change The Fossil Strategy Coal, Oil and Gas : sources of CO 2. Carbon Capture and Storage (CCS) is the route for Climate Change Mitigation and we need to address in a voluntary way. To develop CCS, the fossil industry have common interests: capture (pre and post combustion) and geological storage in depleted oil reservoirs and saline formations or coal seams, with ECBM. Map the CO 2 sinks and sources (ex. coal seams). We should work in an integrated view to maximize resources
Coal Mining GHG Mitigation & CH 4 - CDM project
Coal Mining GHG Associação Brasileira do Carvão Mineral Mitigation & CH 4 Copelmi Mineração/RS
CO 2 Storage & Geology As we have stopped our geological survey for coal in 1982, it is needed to review all the data under the light of the new technologies and an integrated view. Work to analyze all available data: cartography, geophysics, geological studies, sedimentary rocks characterization associated with the coal seams, etc. We should start a geologic survey project in the Parana Basin, including the continental platform (REMPLAC) looking for information to underground coal gasification, methane production and CCS.
Geological Survey for Coal REMPLAC Program Ministry of Marine and Brazilian Geologic Service
Brazilian Map for CCS (Petrobras/PUCRS). under development Data Base of sources and sinks in Brazil for CO 2. Localization of power plants oil and coal. CO 2 Sinks Coal Seams the geology survey helps the evaluation of the coal deposits and methane production CBM and ECBM. Capacity Building in CO 2 storage for local conditions Large network with Universities, Industries and R&D Centers under construction.
CO 2 Capture Need to choose and adapt or develop technology for Brazilian conditions. Pre - combustion gasification pathway - short term benefits: domestic gas production for the south industrial markets. Technological development for SNG - CTL and for hydrogen common for solids fuels (biomass, petcoke, refineries residues). Pos combustion CO 2 stationary sources. capture studies for other
CARBOMETANO The goal: CO 2 Storage and methane production from south Brazilian coal seams. Develop technology of Enhanced Coal Bed Methane CO 2 storage. Ex.: Santa Terezinha Coal Seam: 4.328 10 9 t for 5 seams at depths range from 400 950 m CBM Potential: 19 Billion m 3 methane estimated first drilling completed. Pilot project to ECBM to be determined after geologic survey.
Adapted from RECOPOL
Underground Coal Gasification UCG a) Utilize Brazilian deep coal resources and unmineable coal seams. a) Produce clean fuels in a sustainable way CO2 pre capture process. b)provide another source of energy for the Brazilian needs in the future. c) Develop UCG technology for low grade fuels that can turn resources in reserves with competitive advantage around the world.
Adapted from LLNL
R&D+I & Capacity Building Clean Coal = manage R&D and capacity building programs support from MCT and Industry. Research Centers working in network with international support SATC/SC e PUC/RS Agreements: Central Mining Institute/PO (VAM/ECBM/UCG); Ecole de Mines de Saint Etienne/FR (Mineração/ECBM); NETL/USA (CCS and gasification); MCT : U$ 26 million 2008/2010 SC : Law 14.127/07 2008.. => U$ 0,8 million/year
CLEAN COAL CENTER - CTCL SATC Criciúma/SC
Clean Coal Center- Criciúma/SC
Goals Develop technologies for coal mining and utilization in a sustainable way CCS Add value to coal R&D for high value products including CTL to hydrogen Optimized all process related to the coal economic chain Capacity Building for all the technologies Manage the R&D + I resources Knowledge Management Central Increase partnership: CPRM, CETEM, Petrobras, Eletrobras, private companies, universities network
Tecnologic Plataform Associação Brasileira do Carvão Mineral Coal ECBM Methane Adapted from: Sotacarbo, IEA/GHG
CTCL
Galpão para matéria-prima Galpão para matéria-prima Central de utilidades Almoxarifado Vestiários e sanitários 68 + 46m²=114,00m² Capac. 80 pes. 12 144,00m² Cantina Capacidade: 150 pessoas Área: 336,00 m2 12 Laboratório Área: 288m² 24 Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Área de convívio e divulgação de trabalhos A: 360m² Laboratório Área: 288m² 24 12 Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² 18 Recepção c/ apoio S. reuniões fornecedores Sanitários especiais + M/F Espera A.: 130,00m² Incubadora Area: 1200,00m2
Clean Coal Center Criciúma/SC
Sala de con fe rê ncias p / 42 pe ssoas S ala de R euniões A :18,67M2 S ala de R euniões A :18,67M2 S ala de R euniões A :18,67M2 S. r eun iões 10 pessoas S ala der euniões A :34.21 m2 S. r eun iões 1 0 p essoas S. r eu niões 10 pessoas S. re un iõ es p/ 28 p esso as S. re un iõ es 1 0 pe sso as S ala de R euniões A:33.54 m2 S ala de R euniões A:27.81M2-68,42 S. reu niõe s p/ 28 p essoa s 17 16 15 14 13 12 11 1 0 1 0 11 12 13 14 15 16 17 Banho Fem. A:18,07m2 Espel ho F ixo D epósito A:9,16m2 Copa A :8,60m2 Espel ho F ixo 9 9 B anho F em. A :18,07m2 18 8 8 18 19 7 7 19 20 20 21 6 5 6 5 2 1 22 4 4 22 23 3 3 23 24 2 2 24 25 1 1 25 B anho Masc. A : 23,85m2 B anho Masc. A : 23,76m2 B anho D eficientes A :4,50m2 B anho D eficientes A:4,50m2 Infor matica A: 23,45m2 Mapoteca A :15,60 m2 Sala de Reuniões A :15,60 m2 Sala de Reuniões A :15,60 m2 Associação Brasileira do Carvão Mineral Estacionamento 124 vagas Galpoes para matéria-prima A = 216,00m2 (2 unidades) Vestiários e sanitários 68 + 46m²=114,00m² Capac. 80 pes. 114,00m² Estacionamento 90 vagas Central de utilidades A.: 220,00m² Cantina Capacidade: 150 pessoas Área: 336,00 m2 Ampliação Cantina Área: 192,00 m2 Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Área de convívio e divulgação de trabalhos A: 360m² Incubadora Area: 1200,00m2 Laboratório Área: 288m² 24 Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Laboratório Área: 288m² Recepção c/ apoio S. reuniões fornecedores Sanitários especiais + M/F Espera A.: 130,00m² Area: 336,00m2 Auditório para 1000 pessoas Sanitários M/F Foyer - Recepçâo Total: 2.000,00 m² Acesso de serviços
NEW DESIGN GREEN BUILDING Associação Brasileira do Carvão Mineral Eletrobras/UFSC/SATC CTCL PROCEL EDIFICA
CCS in Brazil CO 2 Storage Research Center - Petrobrás/PUC/RS
Social Responsability - S A T C Associação Brasileira do Carvão Mineral 7.000 sudents Criciúma/SC
EDUCATION ISO 14001 Certification
EDUCATION 70.000 children in 4 years
KEY POINTS To increase the use of the Brazilian coals it is necessary to address the technology issues regarding the use of low grade coals for conversion into clean fuels. Geologic survey, mining technologies, coal characterization and utilization, environmental technologies and capacity building for all the economic chain, should be done. The need of a new coal industry will lead us to an integrated view of climatechangeless technologies. With this integrated view we can maximize the utilization of the Brazilian Coal Resources. Thus, climate change shall not be a problem for the coal industry in a long term perspective. It can bring the opportunity to give to the Brazilian coal a new scenario.
Conclusion High energy demand in the world low offer = high prices => look for domestic energy sources Brazil will need all sources of energy and coal is important. ABCM is compromised to contribute to an sustainable energy security future to Brazil and CCS is the bridge for this the future.
When they agree about climate change we should be ready.
THANK YOU FOR THE ATTENTION Directions : zancan@carvaomineral.com.br 048-34317600 www.carvaomineral.com.br