Energy Research at DOE Was It Worth It? Energy Efficiency and Fossil Energy Research 1978 to 2000 (2001) / Chapter Skim
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4 Evaluation of the Fossil Energy Programs
4 Evaluation of the Fossil Energy Programs
Pages 44-61
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From page 44... ...
These are logical groupings of the technologies included in the fossil energy research portfolio over roughly two decades. Coal and gas conversion and utilization includes the following six technologies: · Atmospheric and pressurized fluidized-bed combustion for electricity production, · Integrated gasification combined cycle (IGCC)
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From page 45... ...
Environmental characterization and control include the following four technologies: and · Flue gas desulfurization, · NOX emissions controls, · Coal combustion waste management and utilization, · Emissions of mercury and other air tonics. Electricity production includes the following three technologies: · Advanced turbines · Fuel cells, and · Magnetohydro dynamic electricity pro ducti on .
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From page 46... ...
Some of these alternatives evolved into large-scale commercial demonstrations supported by the now-defunct Synthetic Fuels Corporation, but there was also significant funding for magnetohydrodynamic (MHD) electricity generation, industrial fluidized-bed combustion, shale oil, and fuel cells.
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From page 47... ...
As shown in Table 4-2, cost sharing for the fossil energy programs throughout the study period is estimated to have been approximately $9 billion, or 46 percent of overall funds spent. This includes $3 billion in cost sharing for oil shale demonstrations and $1 billion for direct liquefaction demonstrations in the late 1970s and early 1980s.
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From page 48... ...
Program DOE Costs Private Industry Costs Private Industry Cost Share (%) Oil and gas production and upgrading 1,467.6 3,616 71 Drilling, completion, and stimulation 79.3 32 29 Coal-bed methane 28.6 10a 26 Downstream technology 48.2 6 11 Eastern gas shales 137.4 35 20 Enhanced oil recovery 177.1 47 21 Field demonstrations 259.0 368 59 Oil shale 447.6 3,000b 87 Seismic technology 105.5 109 51 Western tight gas sands 184.9 9 5 Coal conversion and utilization 6,148.6 4,464 42 Coal preparation 292.1 15c 5 Direct liquefaction 2302.5 1,200 48 Fluidized-bed combustion 843.0 800~ 49 Gas-to-liquids 42.4 85 50 Indirect liquefaction 320.4 164 34 Integrated gas combined cycle 2,348.2 2,200 48 Environmental characterization and control 410.2 450.1 52 Flue gas desulfurization 223.6 301 57 Mercury and other air tonics 42.4 6.2 13 NO controls 67.2 42.9 39 x Waste management and utilization 77.0 100 56 Electncity production 2,502.0 537 18 Advanced turbines 314.7 155 33 Fuel cells 1,167.1 292e 20 Magnetohydrodynamics 1,020.2 90 8 Total 10,571.0 9,067.1 46 aCost sharing was "significant," but DOE provided no data.
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From page 49... ...
Similarly, DOE is credited with 900,000 tons of NOX reductions over a 30-year life cycle for AFBC plants that were constructed because of their inherently low NOX emissions compared with the NOX control requirements that existed at the time. Also, the committee credits DOE with realized environmental benefits associated with reducing mounds of anthracite culm in Pennsylvania.
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From page 50... ...
and, in the case of indirect coal liquefaction, a lesser role offer large potential economic and environmental benefits. Indirect liquefaction has the potential to produce gasoline, diesel, methanol, and other superclean fuels cleanly and therefore also has potential security benefits.
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From page 51... ...
In these and in other areas, 51 the RD&D conducted by DOE has resulted in technological options and knowledge that are being used by EPA and others to set environmental requirements and by utilities to assess their compliance options. DOE's significant involvement in second-generation NOX control technologies primarily stems from the role it played in the cost sharing of demonstrations (DOE's share was 56 percent)
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From page 52... ...
As shown in FigAdvanced turbine systems ~ 13% \ Fuel cells 46% FIGURE 4-6 Reported budgets for electricity production technologies, FY 1978 to FY 2000 ($2502 million)
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From page 53... ...
· For stationary source fuel cells, DOE has played the major role in cost-shared research, development, and demonstration of phosphoric acid, molten carbonate, and solid oxide systems. · For MHD power generation, DOE provided over $1 billion for research and pilot-scale tests of the major components of the system.
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From page 54... ...
Coal-bed methane 2% Downstream technology 3% :~ Field demonstrations 18% Eastern gas shales 9% Enhanced oil recovery 12% FIGURE 4-7 Reported budgets for oil and gas production research, FY 1978 to FY 2000 ($1468 million)
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From page 55... ...
· Enhanced gas production. DOE played a significant role in supporting the development of technology to produce gas from coal beds, technology for fracturing Western tight gas sands, and technology for the development of Eastern gas shales.
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From page 56... ...
It is estimated that DOE's involvement will result in 1290 million barrels of incremental oil production and 1740 Bcf of incremental gas production over the period from 1996 to 2005. This resulted in realized economic benefits from royalties on federal lands and increased state severance taxes estimated by the committee to be $2.2 billion.
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From page 57... ...
C— Damage reduction estimated to be $200 millions Fewer oil/gas wells and dry holes; smaller footprints Security benefits Increased oil reservese and costs Wide range of coal, oil, gas, and shale oil technologies available as market conditions charge. Future avoided costs from air tonics information and control technologies.
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From page 58... ...
These emission reductions derive from the atmospheric fluidized-bed combustion program, the flue gas desulfurization program, and the NOX reduction program. The emissions reductions are in excess of those required by regulation (in the case of NOX control technology, the reduction is relative to current New Source Performance Standards (NSPS)
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From page 59... ...
The sliding-scale approach to cost sharing, in which the industrial participants share more costs as the project matures from the exploratory research stage to the commercial demonstration stage, was found to be a successful approach and has been used successfully in many recent programs. For example, it was successfully applied in the advanced turbine systems program, where it helped to ensure that the best concepts were brought for59 ward.
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From page 60... ...
While this is to be expected in all R&D programs, the costs can be minimized by recognizing market and commercialization constraints and focusing efforts on addressing those constraints before committing to or continuing large-scale spending. A current example is the stationary fuel cell program, which has a history of partial technological success but has failed to achieve expectations in market penetration.
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From page 61... ...
Many of the planning and management techniques discussed in the committee's findingssuch as sliding-scale cost sharing, partnerships with industry, managing a balanced portfolio have been successfully implemented by DOE. The committee believes that implementing a periodic, independent, and critical review of the programs, particularly when considering expenditures for the scale-up of technology, would be beneficial.
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