The Technology Roadmap points to a future where electricity will be generated and used in a more sustainable way – avoiding the risk of catastrophic climate change, making better use of the earth’s resources and supporting an improving quality of life. About CLP CLP is one of the largest investor-owned power businesses in Asia. In Hong Kong, we operate a vertically integrated electricity generating, transmission and distribution business serving 80% of Hong Kong’s population.

1. CLP Technology Roadmap 2

2. Contents
CEO Message 2
CLP Technology Roadmap 4
Renewable Energy 6
Nuclear 12
Natural Gas 14
Advanced Coal 16
Carbon Capture and Storage 18
About CLP Energy Efficiency 20
CLP is one of the largest investor-owned power businesses in Asia. Low-Carbon Technology & CLP 24
In Hong Kong, we operate a vertically integrated electricity generating, transmission and distribution business
serving 80% of Hong Kong’s population. We also have interests in the power sector throughout the Asia-Pacific The Way Forward 26
region. We are one of the largest external investors in the electricity industries in the Chinese Mainland, Australia,
3
India, Southeast Asia and Taiwan.
CLP Technology Roadmap
Glossary & Other Related Publications 28
CLP Technology Roadmap 4

3. The Technology Roadmap points to a future where electricity
will be generated and used in a more sustainable way – avoiding
the risk of catastrophic climate change, making better use of the
earth’s resources and supporting an improving quality of life.
CEO Message
CLP is among the first electricity companies in the world to respond to the threat of
global climate change by setting long-term targets for deep reductions in the carbon
intensity of our entire portfolio.
In November 2008, I introduced CLP’s first Technology Roadmap, explaining our views on the technologies that we intend to use to and hydro-electric generation, we have made use of well-proven and widely applied technologies. In other areas, such as nuclear
move our portfolio away from predominantly fossil-fuel power generation towards low-carbon electricity supply. power and combined cycle gas-fired generation, CLP has been amongst the earliest adopters of the technology in Asia. Others still,
such as carbon capture and storage are not yet developed, proven and cost-effective to an extent that permits their commercial
Two years on, our commitment to reducing the carbon footprint of our business remains unchanged. In line with our Climate Vision application.
2050, we have started to reduce the carbon emissions intensity of our generating fleet. Renewable energy sources now represent
over 15% of our total generating capacity, compared to only 1.3% as recently as 2005. This latest update of the CLP Technology Roadmap, as the name indicates, is a guide to the experience we have already gained along
our low-carbon journey and to the road which lies ahead. A number of points stand out on the landscape. Mature renewable energy
The start of our journey to a low-carbon energy future reflects the availability of technologies to replace the conventional coal-fired sources such as wind and hydro-electric now enjoy widespread application. Amongst “newer” renewables, solar is moving towards
power plant of earlier years. We have already adopted technologies such as supercritical coal-fired plants, wind turbines and solar commercial availability whereas the exploitation of other renewable sources such as tidal, wave and geothermal remains
panels to increase our electricity output, without a corresponding rise in carbon and other emissions. In areas such as wind turbines challenging. Amongst baseload generation technologies, coal remains dominant in Asia, but with a trend towards more efficient
larger units employing supercritical and ultra-supercritical technologies. Gas and nuclear are playing an increasing role and may
serve as bridging technologies to provide large-scale power generation until carbon capture and storage, or some other clean fossil-
CLP’s Climate Vision 2050 Targets fuel generation technology, comes on stream beyond this current decade.
This revised Technology Roadmap places greater emphasis on the manner in which we consume electricity, rather than merely how
it is produced. From utility efficiency, such as smart grid and high voltage direct current (HVDC) transmission through to end-use
efficiency, including fuel cells and electric vehicles, we describe how new technologies are becoming available to enable major
advances in the use of electricity, without adverse impact on our social and economic well-being.
0.6 kg CO2 /kWh The Technology Roadmap points to a future where electricity will be generated and used in a more sustainable way – avoiding the
and
risk of catastrophic climate change, making better use of the earth’s resources and supporting an improving quality of life. With the
30% non-carbon- 0.2 kg CO2 /kWh continuing backing of our stakeholders and the right policy support, CLP will play a full part in the deployment of clean technology
emitting generating
and the efficient use of energy – in the interests of a sustainable business and the sustainable development of the societies we serve.
capacity
0.8 kg CO2 /kWh 0.45 kg CO2 /kWh Andrew Brandler
Chief Executive Officer
December 2010
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4. CLP Technology CLP is transforming our portfolio
through low-carbon technologies
Roadmap
presented in the Roadmap to
achieve the aggressive emissions
intensity reduction targets set
out in our Climate Vision 2050.
The CLP Technology Roadmap presents the key low-carbon technologies – both
existing and new – that we will use to transform our portfolio to a low-carbon supply
and meet the targets set out in CLP’s Climate Vision 2050.
In 2008, CLP published the inaugural version of this Technology Roadmap in support of our Climate Vision 2050 announced a year In developing this Technology Roadmap, CLP has drawn upon authoritative information sources and knowledge bases including
earlier. With rapid developments in technology and a set of revised targets set for 2020, this new version provides an update of key the International Energy Agency, Energy Information Administration (part of the United States Department of Energy), World
technologies that we will continue to explore and incorporate in order to de-carbonize our generation portfolio. Energy Council, International Atomic Energy Agency, Bloomberg New Energy Finance and the international consultancy
Navigant Consulting.
Low-carbon technologies inevitably demand a higher cost and new knowledge be acquired to enable us to select the most
appropriate combinations and pace of implementation. The technologies covered in this roadmap range from commercially Although some technologies are mature and many are emerging rapidly, large-scale uptake must coincide with appropriate
competitive nuclear power and combined cycle gas plants, to proven hydro, wind and the rapidly emerging solar power that government policies that can provide clear targets and sustainable incentives for businesses. As we search for opportunities to
nevertheless still require sustainable policy support to level the playing field, to large-scale demonstration projects, such as smart apply these technologies in different business environments, we will continue to engage and work with various stakeholders to
grid, electric vehicles, and late stage developments such as hot dry rock geothermal and gasification technologies. establish the most suitable approach and business model to fit different needs.
In this roadmap, we will explain how different low-carbon technologies work, their stage of development, cost status and market
potential. We will also present in the inserts what CLP has accomplished in terms of incorporating these technologies into our
assets. Our portfolio now includes wind, hydro, solar, nuclear, advanced coal, biomass and different efficiency related low-carbon
technologies.
Emissions Intensity and Levelised Cost of Power Generation Technologies
Electricity generated by low-carbon technologies, which have low or zero CO2 emissions intensity, usually have higher levelised cost than
electricity from conventional generation.
Levelisied Cost of Electricity (USD / MWh)
Emission Intensity (tonnes of CO2 / MWh)
*Notes:
IGCC = Integrated Gasification
Combined Cycle
NGCC = Natural Gas
Combined Cycle
CCS = Carbon Capture
and Storage Source: IEA World Energy Outlook 2010, Navigant Consulting 2010, Bloomberg New Energy Finance 2010
4 CLP Technology Roadmap CLP Technology Roadmap 5

5. Renewable
Energy Market: In 2009, according to the IEA, renewable energy
contributed to about 20% of the world’s annual electricity
power generation, of which 16% was hydropower. By 2050,
Deployment: Hydropower will continue to be the
largest renewable energy source, though its market share
may slowly decline over time as fewer resources remain
renewables will likely reach 22-48%. untapped and licensing and permitting issues continue to
Renewable energy is derived from natural energy resources such as wind, sunlight, hinder large-scale development. Wind and solar energy,
underground heat, biomass, and the flow of rivers and seas. Renewable energy though accounting for a small share today, are beginning
technologies include wind turbines, flat plate solar photovoltaics (PV), concentrating What is the outlook? to gain in market share. Deployment of non-hydro
Performance: Hydropower, biomass and conventional renewables continue to be driven largely by government
PV (CPV), concentrating solar thermal power (CSP), biomass direct combustion, hydro policies such as feed-in tariffs, mandatory renewable
geothermal power are technologically mature. Their
turbines and geothermal systems. improvements in cost and performance are likely to be portfolio standards, tax concessions, cash grants, financing
incremental. Solar and wind, on the other hand, typically options made available by local governments and
have lower capacity factors as a result of the intermittent production incentives.
How does it help the climate? nature of the resource, e.g. the sun does not always shine
and the wind does not always blow. The level of integration
Renewable energy technologies generate power with no net applications, now boasts contracted projects in the hundreds of these intermittent renewables will thus be system
carbon emissions (no greenhouse gas emissions or carbon of megawatts as well. Concentrated PV technologies are dependent. Energy storage and smart grid technologies,
neutral). Using renewable energy instead of fossil fuels avoids in demonstration stage. Other technologies such as wave however are being developed to help alleviate the
emissions that would otherwise be produced to meet the power and ocean thermal energy conversion and hot dry rock intermittency issue but their costs will remain high in the
same electricity needs. geothermal technologies are in development stage. short term.
Cost: Large-scale renewable energy generally costs more
What is the status? than conventional fossil-fuel power. Hydropower, landfill gas,
biomass co-firing, and onshore wind power are commercially
Technology: Hydropower, biomass combustion, wind viable in places where there are exceptionally good natural
turbines, flat plate solar PV and CSP systems are commercially resources or government policies to promote their use. In
available, but other renewable energy technologies are in recent years, the cost of PV has declined steadily at a rate
various stages of development. The technologies also vary approximately 4-7% per year due to manufacturing economies
widely in their application size. Hydropower facilities can be of scale and technology efficiency and performance
several hundred megawatts (MW, 106 watts) in size. Flat plate improvements.
solar PV, once used mostly for residential and commercial
6 CLP Technology Roadmap CLP Technology Roadmap 7

6. Wind Power Solar Energy
Function Function
To convert wind resources To convert sunlight into electricity using
into mechanical energy to either photovoltaic or concentrated solar
generate electricity thermal methods
Economics Economics
Onshore wind power can be competitive with conventional Although flat plate photovoltaic (PV) is still more expensive CSP uses a parabolic trough / dish collector, heliostat mirror
power options if there are strong and consistent wind than most other renewable energy technologies, the price of or Fresnel reflector to concentrate solar energy on a thermal
resources. Policy mechanisms such as feed-in tariffs have solar electricity from PV facilities has seen a steady decline receiver to heat a working fluid such as synthetic oil or
promoted significant investment in wind power and have had in recent years. In the short term, the economics of PV will molten salt to temperatures as high as 1,000°C. The steam
the result of driving down the costs and increasing the size remain heavily dependent on the availability of myriad is then generated through heat exchange, or the working
of wind turbines, and nurturing an effective supply chain to government incentives. For concentrated solar thermal power fluid directly drives a steam turbine or a Stirling engine for
support large-scale deployment of wind energy. Offshore wind, (CSP), parabolic trough currently has the best economics electricity generation.
which to date has mostly been deployed in Europe, is more among different CSP technologies but its development is
expensive to build and operate than onshore wind, but has Main components of a wind turbine limited to regions with plenty of direct sunlight. Concentrated CPV uses mirrors or lenses to focus sunlight on high-efficiency
good potential in the future owing to its higher capacity factor. PV (CPV) is still in demonstration phase. PV solar cells. The concentrated sunlight makes it worth the
and variable rotational speeds to maximise energy output; usage of more expensive, efficient and higher complexity
improvements in the gearing and power electronics to raise PV cells, such as multi-junction cells using three different
Market Potential efficiency and increasing the hub height to higher wind speeds. Market Potential material compositions, with conversion efficiencies often
Wind power generation is undergoing rapid growth, driven The market for PV is poised for significant growth over the twice as high as the efficiencies of conventional solar panels.
largely by policy support. In China and India, wind power The energy output of a wind turbine is proportional to the next five years as total installed system costs continue to
is expected to continue to grow substantially as electricity swept area of the blades. Doubling the length of the blade decline at about 4-7% per year and more utility companies
demand increases and local manufacturing capability increases the swept area by a factor of four. The dependency and consumers accept the technology as a viable power
increases. However, some developments may be limited by on wind speed is even stronger – doubling the wind speed option. In addition, PV systems can be widely deployed in
transmission constraints and/or local requirements (e.g. wildlife increases the output by a factor of eight. In addition, remote areas with both direct and diffuse sunlight. Development of
or aviation considerations). Wind energy supplied about 1.5% of sensing technologies (e.g. satellite imaging) and sophisticated CSP and CPV is however limited to regions with strong solar
global electricity production in 2009 but could supply up to 12% computer simulation models (e.g. computational fluid dynamic) resources, i.e. with plenty of direct sunlight. Despite major
by 2050. have also enabled better wind resource assessments, forecasts CSP announcements that have been made around the world,
and wind farm designs. project finance, cost uncertainty, and access to transmission
may still be the major hurdles for CSP.
How It Works
Wind turbines transform the horizontal motion of air into
rotational torque which drives a generator to produce How It Works
electricity. Different turbine designs have been used, including PV converts incident solar radiation into electricity. PV cells
vertical or horizontal axis machines, and single to multiple made of either crystalline silicon or thin film materials are
blades. The most common wind turbines use three blades assembled into modules and panels. Panels can be mounted
around a horizontal axis. The nacelle, which houses the on a roof or the ground. An inverter box to convert DC power
generator, turns so that the turbine will always face into the from the PV panels to AC power to the load/grid completes the
maximum wind direction. Advances in wind and aeronautic system. Other balance-of-system items such as the optional
technologies have led to high-tech composite blade materials tracking devices could increase efficiency and power output.
to increase endurance and reduce weight; variable pitch blades
8 CLP Technology Roadmap CLP Technology Roadmap 9

7. Geothermal Marine
Energy Function
To harness energy from the ocean to
Function generate electricity
To convert the earth’s underground heat
to generate electricity
Economics Economics
At good resource sites, conventional geothermal technology to watch since it can tap deeper into geothermal Current costs of marine energy technologies are higher Wave energy devices harness the potential energy created
(hydrothermal) can be commercially viable. Moreover, the resources worldwide. than that of other renewables because most marine energy from the up and down motion of waves. This potential energy
geothermal energy from the earth is generally constant thus technologies are still in early-stages of development. can be converted into power through mechanical means such
making the output of such a plant well suited for baseload Although tidal barrage is a mature technology, it has only as pistons and hydraulic pumps.
applications. How It Works been deployed in a few places around the world. Current
Conventional geothermal systems draw naturally occurring development is mainly supported by government incentives Ocean thermal energy conversion (OTEC) devices make use of
hot water or steam from wells which are drilled into an in places with good marine energy resources. the temperature difference between warm surface water and
Market Potential underground reservoir of porous or fractured rock. There are cold deep ocean water. Warm surface water can be used to
Currently, there are roughly 11 gigawatts (GW, 109 watts) of three major types of geothermal power cycle currently in use, vaporise a fluid to drive a turbine to generate electricity. The
hydrothermal installed capacity in 24 countries, which is 20% namely flash steam, dry steam and binary cycles. Of these, the Market Potential cold water from the deep ocean is then used to condense the
higher than in 2005. While flash steam and dry steam plants flash steam cycle is the most commonly used. fluid for reuse. Salinity gradient technologies capture energy
Although there are abundant resource potentials globally,
are more mature than binary cycles, some industry experts as water flows due to osmotic pressure across the boundary
considerable efforts are still needed to map out commercially
are pointing to enhanced geothermal systems (EGS) as a key between freshwater and saltwater. The most promising
EGS also known as hot dry rock, enable the utilisation of viable sites with detailed marine resources, landscape and
methods use semi-permeable membranes between the
geothermal heat at depths of 4,000 metres or more. In a operating environment to support deployment of marine
freshwater and saltwater.
system of parallel wells, water from the surface is forced into a energy technologies. Currently, the reliability and survivability
well and enters the fractured rock. Through the fissures, water of marine devices in the harsh sea environment remain a
is heated and then extracted at a much higher temperature challenge on large-scale deployment. Uncertainties on the
from another well. The acquired heat content is then extracted ecological impact of large-scale deployment could also be a
to drive a turbine to generate electricity. show stopper in some cases.
How It Works
Marine technologies can take advantage of the potential,
kinetic, and thermal energy available in the ocean to generate
electricity. Tidal barrage systems make use of the water height
difference between high and low tides. A dam or barrage
structure is constructed across a tidal bay or estuary to
collect water during high tide. Then during low tide the water
is released through turbines to generate electricity. Marine
current devices capture the kinetic energy from natural
ocean currents. The movement of ocean currents can power
mechanically-driven devices to generate electricity.
Enhanced geothermal system (hot dry rock geothermal)
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8. Nuclear–Generation III
Function
Nuclear To generate electricity using heat produced by nuclear fission
reaction with the inclusion of passive safety control features
Nuclear power is generated from
uranium through controlled nuclear
fission reaction. The heat produced
from the fission reaction is used to
generate electricity.
How does it help the climate? Economics
Nuclear power can produce a large quantity of electricity
with virtually no greenhouse gas emissions. For developed What is the outlook? Nuclear power can be cost-competitive with fossil-fuel
generation. Because operation and fuel costs are at the low
Generation III reactors are an evolution of Generation II
reactors, involving upgrades in fuel and thermal efficiency,
countries, nuclear power offers a bridging option towards a Performance: Most of the operational reactors around end of the cost spectrum of generation technologies, nuclear safety, operational flexibility, and reactor life. Several designs
low-carbon generation portfolio. For developing countries, the world are of Generation II technologies and the major plants are most suitable as baseload power suppliers. The cost with Generation III technologies are available in the market,
nuclear power offers a proven low-carbon solution to meet technology suppliers include the US, France, Japan, Canada of electricity from Generation III plants is expected to fall in such as European Pressurised Water Reactors, Advanced
the rapid growth in demand for energy. and Russia. A number of Generation III reactors have been the same range as conventional fossil power, once the market Boiling Water Reactors, Advanced Heavy Water-Cooled
operating in Japan. More of these units, aiming at optimising reaches large-scale production. Reactors etc. Some Generation III reactors incorporate passive
safety, reliability and operational economics are under safety features which allow the reactors to shut down safely
What is the status? construction in China and in Europe, such as Westinghouse’s even if their emergency systems were to fail, by using natural
Technology: Nuclear technologies may be grouped into AP1000 model and Areva’s European Pressurised Water Market Potential forces such as convection, gravity and the natural response
Reactor. of materials to high temperatures to slow or stop the nuclear
four generations. Generation I were prototype reactors which Many countries with existing nuclear power programs have
are now obsolete. Generation II reactors are the most mature plans to build new power reactors beyond those now under fission reaction.
and currently most common in operation. Evolutionary
Deployment: The potential for global growth in
construction. The installed capacity is expected to be between
nuclear power is significant, due to the increasing demand
improvements have led to Generation III reactors with 511 GW and 807 GW in 2030.
for affordable and reliable low emission generation. In
improved safety features. They are currently in commercial
many respects, the deployment of nuclear technologies is
development and deployment. Generation IV designs, with
some under trial, are currently under active research and
dependent on the institutional governing structure that
exists (or is being built) with respect to regulation, licensing,
How It Works
development. Nuclear fuel is formed as a uranium oxide into pellets and
construction, technical capability and waste management.
Such national institutions are necessarily the pre-requisite encased in long slender rods. Fission is initiated by neutron
Cost: Compared to fossil-fuel generation, nuclear power for a country freshly embarked on nuclear deployment that bombardment, splitting the nuclei of individual uranium
has higher capital costs, longer project development time atoms into different elements, and releasing more neutrons.
requires international support and co-operation. Local and
but lower operating costs. The higher capital costs are due The continuous cycle is called a chain reaction. In most
political acceptance to siting nuclear power stations is also a
to multiple factors such as sophisticated safety and back- reactors, water serves as both a moderator and a coolant. As
factor that influences future deployment.
up plant operating and control systems, and regulatory a moderator, water “slows down” the high energy neutrons
requirements. Plant decommissioning and waste disposal are released during fission until they are at the right energy
required as a safety and regulatory necessity and their costs level to be captured by another nucleus and trigger another
are managed under the overall cost structure. fission reaction. As a coolant, water flows through the reactor,
carrying with it the heat absorbed from nuclear processes
Market: At the end of 2009, nuclear power contributes in the reactor. The heat is used to generate steam to drive a
about 14% of the world’s annual electricity power generation. turbine-generator to produce electricity.
There are 437 nuclear power reactors in operation worldwide,
with a total capacity of 371 GW, and 56 new power reactors
under construction in 14 countries. Of these, China alone has
20 units committed.
12 CLP Technology Roadmap CLP Technology Roadmap 13

9. Combined Cycle
Gas Turbine
Natural Gas Function
To generate electricity from a gas turbine and use the waste
heat to make steam to generate additional electricity from
a steam turbine
Natural gas is a gaseous fossil fuel
consisting primarily of methane. It is
the cleanest fossil fuel used for power
generation.
How does it help the climate? Economics
Electricity generation with natural gas produces about Natural gas prices vary internationally, but the cost of In between the two cycles, heat recovery steam generators
one-third to one-half as much carbon dioxide (CO2) as coal electricity from a combined cycle gas turbine is generally capture the waste heat from the gas turbine exhaust and
for the same amount of electricity. Owing to the flexibility of higher compared to conventional coal power plants. Although produce steam to drive the steam cycle. The gas turbine
gas turbines, it can also be a compliment to the intermittent the cost of a gas plant is less than that of a coal plant, typically produces about two thirds of the total output, with
renewable energy such as wind and solar when the resources the price of gas relative to coal generally outweighs this the remainder being generated by the steam cycle.
suddenly die down or become unavailable. advantage. An open-cycle gas plant requires even less capital
than combined cycle, but uses more gas for the same amount Integration of the two power cycles operating in different
of electricity. For occasional peaking power, open-cycle may temperature ranges raises overall efficiency. New CCGT plants
What is the status? be cheaper, whereas for baseload with high utilisation hours, can have efficiency of 50% to 60%, relative to open-cycle
Technology: Open-cycle gas turbine plant efficiencies are have significantly reduced natural gas prices since their peak CCGT may be more cost effective. plants in the 30% to 45% range, and the best new coal plants in
in the range of 30% to 40%. With advanced designs involving in 2008 and have the potential to lower international LNG the 40% to 50% range.
recuperation and intercooling, the efficiency can achieve prices in the medium to long term. Natural gas is well suited to
45% and higher. Combined cycle gas turbines (CCGT) are small CHP applications, where overall energy efficiency can be Market Potential
technologically mature with high overall energy conversion very high. CCGT transformed the US and some other markets in the
efficiency, ranging from 35% to 55%. Advanced combined 1990s, displacing coal as the fuel of choice during a period of
cycle generators have potential to achieve efficiencies up to low gas prices. As gas prices have risen in recent years, coal
and exceeding 60%. In applications where waste heat can be What is the outlook? has once again become the least cost option. Nevertheless,
utilised, combined heat and power (CHP) can achieve up to Performance: Gas turbines are mature and commercially world gas generation capacity continues to grow due to its
90% energy efficiency. competitive technologies. Natural gas combined cycle plants low capital cost and low carbon intensity. In addition, the
are improving incrementally over time, and with recent operational flexibility of CCGT could also be used to support
Cost: Natural gas plants benefit from lower capital costs advances can now achieve net efficiencies of over 60%. New intermittent renewable generation.
and shorter construction times relative to conventional applications of CHP will drive greater end-use efficiency
coal. However, natural gas prices can be quite volatile, and and more distributed generation. Hybrids combining small
it is generally more expensive than coal but less expensive gas turbines and high temperature fuel cells are under How It Works
than most renewables. Recent developments on shale gas development, with the aim of reaching even higher efficiency. A CCGT plant integrates two power generation cycles. The
technologies (e.g. horizontal drilling) will make it an attractive higher temperature cycle is driven by a gas turbine where
option where resources are accessible. Deployment: Globally, natural gas power generation combustion takes place. The other cycle is driven by a steam
could double by 2050. As the supply of natural gas diminishes turbine, which can be on the same axis as the gas turbine and
Market: Natural gas currently contributes to about 21% in areas of demand, there will be a growing need to transport drive the same generator.
of the world’s annual electricity power generation. The natural gas over long-distances from regions with available
development of an international market for liquefied resources. In the long-term, world supplies of conventional
natural gas (LNG) has brought additional gas within reach gas and petroleum will decline, increasing their costs, and the
of more countries. Technological advancements have electricity sector will need to rely on other sources of energy.
significantly increased the amount of shale gas available,
particularly in the US. These discoveries, and lower demand,
14 CLP Technology Roadmap CLP Technology Roadmap 15

10. Advanced Advanced Coal
Coal Power Technology
Advanced coal technologies include
supercritical, ultra-supercritical (USC), Function
To generate electricity from coal with higher efficiency
integrated gasification combined cycle and lower emission technologies
(IGCC) and further possible increases
in steam temperatures and pressures
in the future. These technologies may
be combined with carbon capture
and storage in the form of oxyfuel
combustion, pre- or post-combustion
capture to achieve substantial reductions
in CO2 emissions. Economics
Supercritical coal plants have higher capital cost than Integrated Gasification Combined Cycle: IGCC plants use
conventional subcritical pulverised coal plants, but make up a gasifier to convert coal to syngas (a gas mixture mainly
How does it help the climate? Market: Advanced coal technologies make up a small part
of today’s generating capacity. Currently, subcritical coal
the difference in energy savings. Their market share in new- consisting of hydrogen and carbon monoxide), which drives
Increased efficiency of advanced coal technologies reduces build plants is rising rapidly. USC plants may follow a similar a combined cycle turbine. Once the syngas has been cleaned
plants still represent the majority of operating coal-fired course. IGCC and oxyfuel costs are significantly higher than to remove impurities, including CO2 , the syngas fuels a gas
the amount of coal consumed per unit of electricity generated
plants, but the supercritical coal plants are being developed turbine to produce electricity. Waste heat is recovered to drive
in comparison with conventional and subcritical coal conventional plants, and would only be competitive if CCS
rapidly in new-build plants due to the high efficiencies. China a steam turbine, completing the combined cycle system.
technologies. A lower consumption of coal reduces CO2 becomes available and necessary.
is currently the major world market for the construction of
emissions.
new supercritical and ultra-supercritical power plants. Oxyfuel Combustion: Coal oxyfuel combustion burns the coal
Market Potential in a mixture of re-circulated flue gas and oxygen, rather than
What is the status? What is the outlook? Of the advanced coal technologies, the most promising
in air. The water is easily separated, producing a stream of CO2
ready for capture and storage.
Technology: Supercritical technology is commercially Performance: Overall efficiency in coal power plants technologies for near term growth are supercritical and ultra-
available and a proven technology. A number of countries supercritical technologies, particularly in China and India.
has improved incrementally over the years, with each
including the US, Russia, Japan, and the Chinese Mainland
successive generation displacing its predecessors. Despite
have deployed these units. Ultra-supercritical technologies
have just entered the market in recent years, initially in
these improvements, coal remains the most greenhouse gas
intensive fuel in power generation. Given this, the potential
How It Works
the EU countries and Japan. IGCC plants are under early
for market transformation in advanced coal is inherently Supercritical & Ultra-supercritical: Water vaporises at 100°C
deployment with over 15 plants globally either in operation
tied to national regulations pertaining to greenhouse gas under the standard atmospheric pressure of 101.3 kilopascal.
or under planning. Oxyfuel combustion technologies are
emissions. The success of IGCC and oxyfuel lies in their However, at a significantly higher temperature (374°C) and
currently being scaled up from pilot demonstrations to larger
compatibility with carbon capture and storage (CCS) should pressure (220 times atmospheric pressure), water vaporises
demonstration projects.
CCS systems become economic (or simply mandated) in the without actually boiling. This is called the critical point.
future. Higher efficiency is particularly important in CCS Supercritical steam generators create such conditions by
Cost: Supercritical coal plants can be competitive with systems because the CCS process entails a significant parasitic raising the steam pressure and reheat temperatures to 540-
conventional subcritical pulverised coal (PC) plants, with
loss of power output. 580°C. This results in higher energy conversion efficiencies
higher efficiencies and lower operating costs, although its
than conventional coal units. Ultra-supercritical steam
capital cost is higher. Ultra-supercritical coal plants are still
Deployment: Deployment of coal-based technologies generators raise the temperature to 700°C or higher.
under early commercial application and the cost is still high.
in developed countries is hampered by ongoing regulatory
IGCC and oxyfuel are significantly more expensive than other
uncertainty with respect to emission controls. Also the
coal technologies.
currently depressed price of natural gas makes gas-fired
power plants more economically compelling. The deployment
of advanced coal will increase as demand grows for more
energy efficient plants and cleaner power. Due to their higher
efficiency, advanced coal options will be preferred for new
16 CLP Technology Roadmap plants with carbon capture and storage. CLP Technology Roadmap 17

11. Carbon
Capture Carbon Capture
and Storage
and Storage Function
To capture CO2 from fossil-fuel power generation
Carbon capture and storage (CCS) is a and store it underground
process of separating CO2 and storing
it permanently rather than releasing it
into the atmosphere.
How does it help the climate? Economics
CCS technology can remove and store permanently up to European Union committed € 1 billion in six CCS projects in Currently, the incremental cost for a power plant with CCS Other carbon capture technologies include adsorption on
90% of the CO2 emissions normally generated by fossil-fuel 2009 and the US also committed US$ 1 billion in the FutureGen is well above the cost for carbon emissions in international solids such as activated carbon, selective filtration through
generation, particularly coal-fired plants. 2.0 project in 2010. Currently, there are over 200 active or markets. Deployment of CCS will depend on direct regulation polymer or zeolite membranes, and cryogenic distillation in
potential CCS projects globally including those in China and of emissions, direct subsidy of the plant itself, and/or a which the CO2 is condensed.
Australia. significant rise in the market price of carbon.
What is the status? After capture, the CO2 can be liquefied and injected under
Technology: Most of the main elements needed for CCS pressure into geologic formations such as oil and gas
are proven and employed in various industrial activities What is the outlook? Market Potential reservoirs, un-mineable coal beds and deep saline reservoirs.
including enhanced oil recovery and chemical production. Performance: There is a significant energy penalty This is regarded as permanent storage because these
The market potential for CCS is determined by regional
However, it is still in the R&D and Demonstration phases when associated with CCS using current technologies. The focus formations have held oil or other contents for millions
storage capacity as well as the use of carbon based fuels. If
it comes to power generation. Large-scale demonstration of on-going research is on reducing the amount of energy of years. Other alternatives include converting CO2 into
regulatory requirements necessitate reduction of emissions,
projects are underway across the globe. required to capture CO2 as well as the amount of CO2 leakage carbonate compounds which could turn into construction
the market potential for CCS could be huge. For example,
that can occur. CCS technology is expected to be commercially materials.
both China and India use a significant amount of coal-fired
Cost: A power plant with CCS will always cost more than a available after 2020. generation and have significant storage potential.
power plant without CCS. Without additional policies that put
a price on carbon or regulate carbon emissions, CCS will not Deployment: The deployment of CCS will be dependent
be economical. The estimated cost of CCS varies based on the
type of technology employed, but could increase cost up to
on carbon pricing or carbon regulation policies as well as
technology advancements. The widespread availability
How It Works
80% compared to conventional coal. and low cost make coal a strategically important fuel, and Before carbon can be injected underground for long-term
therefore CCS is a critical technology for a low carbon future. storage, it has to be separated from other gases in the power
Market: The current market for CCS power generation Economic incentives such as subsidies, special tariffs, and/ plant. Carbon can be captured by post-combustion means
is limited to demonstration projects. Commitments and or carbon credits will be needed to promote uptake of this from the flue gas in an otherwise conventional plant. In a
investigation of additional projects continue. For example, the technology. gasification plant, CO2 can be separated from hydrogen and
other components via pre-combustion means. Gasification
plants have the advantage of higher CO2 concentrations while
post-combustion capture has the advantage of being able to
be retrofitted to existing plants.
Solvent absorption is the most common method proposed
for carbon capture. In the case of a retrofit, flue gas would be
bubbled through chemical solvent such as monoethanolamine
in an absorber column. In new gasification plants, synthetic
gas would be mixed with gaseous solvent in an absorption
chamber. In both cases, the CO2 would subsequently be
released from the solvent in a separate low pressure and/or
low temperature process, so that the solvent could be re-used.
Carbon capture and storage with enhanced oil recovery
18 CLP Technology Roadmap CLP Technology Roadmap 19

12. Energy What is the outlook?
Efficiency Performance: Conventional coal-fired plants have
an efficiency of around 35-38%. Supercritical and ultra-
supercritical can reach 40-45%. Further advanced cycles
may reach 50%. The latest combined cycle gas turbines have
percent. DERs such as micro-turbines and fuel cells are now
able to achieve 25-35% efficiency. If waste heat is reused,
the efficiency can reach up to 50% or higher. However, the
availability of fuel supply such as natural gas and hydrogen,
claimed efficiencies up to the high 50s and even 60%. HVDC varies, and its price is subject to fluctuation.
Energy Efficiency spans a wide range of is a mature technology but its higher efficiency, e.g. 3% loss
options, including generation, delivery per 1,000 kilometres, will only be realised with long distance Deployment: The deployment of energy efficiency
and end-uses. Technologies can reduce bulk power transmission. Large-scale trials on smart meters technologies is mainly driven by government policy and
are beginning to emerge in some developed countries. It is incentives. Different technologies are available but the
consumption, delivery losses, and even believed that the savings will range from 5-10% but regulatory benefits are not necessarily the most apparent and attractive,
help change consumers’ behavior leading and institutional changes are needed. More importantly, nor easily allocated to the contributors and/or participants.
to lower emissions. customer acceptance is yet to be demonstrated. The key challenge is to allocate adequate and appropriate
resources to educate the public and encourage consumer
Despite a higher cost, solid-state lighting is highly efficient adoption. Many emerging end-use technologies are, at best,
How does it help the climate? as it uses only one-sixth of the energy compared with
conventional incandescence lights. Sensors and automation
in the “early adopter” stage of development, and without
supporting policies and innovative business models, they will
By selecting the most sustainable and efficient generation
devices can further reduce the consumption by a few not reach mass commercialisation.
mix and associated technologies, emissions can be most
effectively reduced and controlled at the source. Making the
grid smarter can increase the intake of renewables, enable
customers’ engagement, improve operation efficiency and
reduce losses. Adoption of new end-use technologies not only However, end-use efficiency can be improved more rapidly
reduces consumption but also could bring disruptive changes because the products typically have a much shorter life span
to conventional markets. For example, solid-state lighting can
reduce consumption and offer more durability and flexibility
in lighting needs. Electric vehicles (EV) can provide a lower
and are replaced more frequently. The success of certain
emerging products, such as solid-state lighting is quickly
emerging. Market acceptance of EVs and fuel cells will hinge on
Electric Vehicles
emission alternative to gasoline-based vehicles . significant performance improvements, regulatory policy and
incentives. Function
To replace combustion engines in
What is the status? Market: Demand for more efficient and cleaner conventional conventional automobiles by electric motors
Technology: There are many technologies available and power plants will remain high, particularly in developing
powered by rechargeable batteries
many more emerging to improve efficiency. From the utility countries. China is currently the major market for supercritical
side, for example, advanced coal technologies, as mentioned and ultra-supercritical developments. Together with combined
in a previous section, enable coal-fired plants to generate cycle gas turbines, these three will be the main efficiency
electricity more efficiently; High voltage direct current (HVDC) technologies used on the generation side.
transmission systems enable bulk power transmission over Economics How it Works
long distances with less loss and offer more versatile power On power delivery, HVDC is a mature technology but very
The current cost of electric vehicles is not significantly higher An EV runs on one or more electric motors which draw energy
flow controls. expensive. It is only competitive if the energy transmission
than conventional cars but EVs are not yet widely available. from an on-board battery system. Today, the lithium-ion
distance is above one thousand kilometres and the power
The range and reliability of EVs, lack of standardisation and battery is most commonly used because of its high power and
Smart grid technologies such as smart metering, advanced exceeding thousands of megawatts. With rapid development of
ease of access to the charging network are typical concerns of energy density, as well as its lower cost. The most commercially
metering infrastructure (AMI) and demand response enable large-scale renewables worldwide, HVDC lines and associated
consumers. Government incentives can dramatically improve available EVs can travel 200-300 kilometres after being fully
greater interaction with customers. From the end-user side, network reinforcements are becoming a key tool of building a
investment economics. charged. A typical full recharge will take about 6-8 hours
efficient lighting systems, such as solid-state lights and smart smart grid in developing countries, particularly in China. Smart
on normal household supply (single phase) but is reduced to
controls, use less energy to provide lighting needs, and use it meter deployment requires both long-term policy support and
minutes on fast charging station (three-phase).
a sustainable market environment. With its high initial cost and
more intelligently.
extensive communication infrastructure coverage required, Market Potential
EVs use advanced battery and power electronics technologies only countries with major government subsidies, mature Potential markets for EVs are vast and include vehicles of
to offer a cleaner means of transportation; distributed energy market environment and mandatory requirements would make every size, from the smallest and light-duty vehicles
resources (DER) such as small renewables, storage devices the deployment/trials possible. (automobiles and light trucks) to commercial and even the
and fuel cells enable a more decentralized and efficient heaviest trucks, likely for individual or fleet applications.
means of supplying electricity. Even in conventional electrical End-use technologies to save energy in one form or another are The large-scale EV deployment is also dependent on the
appliances, there are continuous improvements in their available to consumers in most markets. The most attractive availability of charging infrastructure.
energy efficiency over time. market is typically the large energy consumers, such as
commercial and industrial customers, whose energy savings
Cost: The costs of energy efficiency products and/or services can have a significant impact on the total electric/gas bill.
vary. Investments at the utility level are usually substantial Because of the up-front investment costs and/or availability of
(e.g. hundreds of millions) with a longer pay-back period. local resources, the cost of conventional alternatives is likely to
remain considerably lower without any government subsidies.
20 CLP Technology Roadmap CLP Technology Roadmap 21

13. Electric Storage Fuel Cells
Function Function
To store / release electric energy by To use natural gas or hydrogen to generate electricity through
different means for various power and an electrochemical process
energy applications
Economics Economics
Energy storage technologies can provide a range of energy generate electricity as required. CAES uses compressors to The current cost of end-use, stationary fuel cells is significantly
and power capabilities for different uses. Pumped hydro force air into an underground storage reservoir at high higher than conventional alternatives. However, some
storage (PHS) and compressed air energy storage (CAES) are pressures, and then release the compressed air for governments are providing R&D funding and incentives to
the least expensive for large-scale applications. Flywheels and electricity generation. Electrochemical batteries take drive technology and improve investment economics. The
supercapacitors can be competitive in applications that advantage of the electricity generated / absorbed from reduced price of natural gas in some markets may improve the
require high power for a short time. Electrochemical different reversible chemical reactions to generate and economics for fuel cells as well.
batteries can offer different power and energy range but store electricity. Flywheels spin at high speed using a
their costs vary and they are usually very expensive for high motor and then release the kinetic energy when the motor
energy applications. is switched into a generator mode. Market Potential
Primary applications for end-use fuel cell products are
buildings, universities and hospitals or residential complexes
Market Potential with relatively high and coincident electric and hot water /
The worldwide installed capacity of PHS is over 110,000 MW. space heating demand.
There are only two commercial CAES facilities worldwide.
Underground CAES offers a lot of advantages but is limited to
sites with appropriate geological cavities. For electrochemical How It Works
batteries, although sodium sulfur (NaS) batteries have Fuel cells are electrochemical devices that convert a fuel
commercial products, many other technologies, such (typically hydrogen or natural gas) and oxygen into generating
as flow batteries, are still evolving and are mostly in the electricity and water. The main advantages of fuel cells are
demonstration or early commercialisation stage. However, that unlike turbines and engines, they emit low amounts of
there are many utility-scale storage applications such as carbon dioxide (none if hydrogen is used) and also have high
renewable integration, peak looping, load shifting, grid efficiencies (approaching 40% or more). Some fuel cell Typical schematic of proton exchange membrane fuel cell
operational and stability improvements, if the economics and technologies can also recover unused thermal energy system
regulatory environments are favourable. resulting in a combined heat and power (CHP) configuration
that could increase the efficiency to over 70%.
How It Works
PHS pumps water from a lower reservoir to an upper
reservoir during off peak hours, and reverses the flow to
22 CLP Technology Roadmap CLP Technology Roadmap 23