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China and Australia plan to build the world's first commercial power plant using the technology of integrated gasification combined cycle (IGCC) in Australia, said sources from the National Development and Reform Committee (NDRC).

 

"China will be in charge of equipment production, and Australian will provide the technology," said Jiang Kejun, from the China Energy Research Institute of the NDRC, at a forum held in Beijing recently.

 

IGCC is a power plant technology using synthetic gas (syngas) as a source of clean fuel. Syngas is produced in a gasification unit built for combined cycle purposes, hence the integrated name.

 

Steam generated by waste heat boilers of the gasification process is utilized to help power steam turbines. Heavy petroleum residue and coal with a high sulphur content and even biomass are possible feeds - raw materials - for the gasification process.

 

There are only a handful of IGCC plants in operation for power generation. These plants are by far the most environmentally friendly in the use of coal.

 

The IGCC power plant in Australia is expected to be completed in 2008, with a total investment of 670 million Australian dollars (US$507 million). The designed capacity is 400,000 kilowatts.

 

Australia has promised to support the development of clean energy technology with 100 million Australia dollars (US$76 million), according to Jiang.

 

The equipment provider, Harbin Electric Power Equipment General Plant in northeast China's Heilongjiang Province, will invest 4 billion yuan (US$500 million) in production.

 

"Through such cooperation, China can master the technology of producing IGCC equipment," said Jiang.

 

"And the country can export the equipment and explore the global market, which has great potential."

 

However, Jiang was not optimistic when looking into the profit prospects of commercial IGCC power plants. "The main inhibiting factor for IGCC plants is the high costs," Jiang said.

 

For a conventional coal power plant, the cost, including construction and equipment, for per kilowatt stays at 5,000 yuan (US$625); however, for IGCC power plants, the cost can be double and even reach US$1,400 per kilowatt.

 

The power generation industry is yet to be convinced about the reliability of IGCC technology, as the demonstration facilities that have gone into operation have not consistently demonstrated capacities comparable to conventional combined cycle gas turbines (CCGTs) or coal-fired power plants.

 

"But this clean energy technology shows the future orientation of energy development," Jiang said.

 

Especially for China, a country with huge coal consumption, developing such technology holds great importance to curb its emissions of sulphur dioxide (SO2) and to clean its air.

 

SO2 emissions have risen 27 percent since 2000, according to figures from the State Environmental Protection Administration (SEPA).

 

Each ton of SO2 discharged may cause up to 20,000 yuan (US$2,500) in economic losses.

 

In the 11th Five-Year Plan period (2006-10), China has promised a 10 percent cut in the country's total SO2 emissions by 2010, compared with the end of 2005.

 

In this way, the country now is actively seeking ways of developing clean energy, including clean fuel, solar energy and wind power.

 

(China Daily October 30, 2006)