Hydrogen power plant agreement signed
HECA, which is owned by Hydrogen Energy International, BP Alternative Energy and Rio Tinto, plans to construct an advanced integrated gasification combined cycle (IGCC) plant that will produce power by converting fuel — a blend of 75 per cent coal and 25 per cent petroleum coke — into hydrogen and CO2.
The hydrogen will be used to fuel a combustion turbine, enabling net generation of 250MW of electricity, which is claimed to be enough power for more than 150,000 homes.
Approximately 90 per cent of the CO2 produced from the gasification process (approximately two million tons per year) will be transported via pipeline to the nearby Elk Hills oilfield where it will be sequestered.
The estimated capital cost for the project is approximately $2.3 billion. Sequestration of two million tons per year of CO2 is slated to begin by 2016.
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Shell is one of the largest global investors in China's energy sector, with business covering gas production, petrochemicals and a retail fuel network. A leading supplier of liquefied natural gas, it has recently expanded into low-carbon business such as hydrogen power and electric vehicle charging.
In a rare assessment of the country's energy sector by an international oil major, Shell said China needed to take quick action this…
