Project Title

Water-Energy Nexus: Coal-Based Power Generation and Conversion - Saving Water 

Project Year

2014   

Project Number

EWG 08 2014A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EWG 08 2014A 

Project Title

Water-Energy Nexus: Coal-Based Power Generation and Conversion - Saving Water 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency 

Project Year

2014 

Project Session

Session 2 

APEC Funding

125,000 

Co-funding Amount

25,000 

Total Project Value

150,000 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

United States 

Co-Sponsoring Economies

Australia; China; Japan 

Expected Start Date

01/01/2015 

Expected Completion Date

30/12/2015 

Project Proponent Name 1

Scott M Smouse 

Job Title 1

Chair, Expert Group on Clean Fossil Energy 

Organization 1

US Department of Energy, National Energy Technology Laboratory 

Postal Address 1

P O Box 10940, Pittsburgh, PA 15236-0940, USA 

Telephone 1

1-412 3865725 

Fax 1

Not Applicable 

Email 1

scott.smouse@netl.doe.gov 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Scott M Smouse 

Project Summary

Most energy production and conversion methods need large amounts of water, and most methods of producing fresh water require energy. Policy-makers need to understand the links and trade-offs between water and energy, termed the nexus. This is a critical issue for China and the United States – the world’s two largest producers and consumers of coal – and all economies relying on coal to meet their energy demands. More detailed descriptions of the water-energy nexus situation in other developing economies would help understand the general needs for capacity building in this area.

This project will share information on 1) developments to make coal-based power generation and conversion to synthetic natural gas and chemicals more efficient and less-water intensive; 2) recovery and reuse of water from coal-based energy production, including use of alternative sources of water and coproduction of water with carbon capture, utilization, and storage (CCUS); and 3) policy and regulatory developments in APEC member economies related to the water-energy nexus for coal-based energy production.

Relevance

In our civilization, water and energy are intertwined. Most methods of producing and delivering fresh water require significant amounts of energy to recover, transport (sometimes across vast distances), and treat the water.  For example, in the United States, the California Aqueduct, which transports snowmelt across two mountain ranges to thirsty coastal cities, is the biggest electricity consumer in the state. China is planning to transport water from three river basins in the south thousands of miles to the water-poor north, which will require vast amounts of energy. The rapid build up of coal-fired power plants and other industrial uses of coal will impinge on freshwater supplies. A typical 500-megawatt (MW) coal-fired power plant uses over 12 million gallons per hour of water for cooling and other process requirements. Policymakers need to understand such links and the trade-offs between water and energy, termed the nexus.

The water-energy nexus is especially critical for China and the United States – the world’s two largest producers and consumers of coal – along with other economies that rely on coal to meet much of their energy demands. Understanding and proactively addressing potential energy system vulnerabilities stemming from water resource dependency is important for all nations reliant on coal to meet their energy and economic development needs.

The United States Geological Survey estimates that thermoelectric generation accounts for approximately 136,000 million gallons per day of fresh water, ranking only slightly behind agricultural irrigation as the largest use of freshwater withdrawals in the United States.

China aims to reduce coal’s share of its national energy mix to 65% by 2017, by replacing coal with natural gas, including synthetic natural gas (SNG) produced from coal. In addition to significant additions of thermal power generation, China is also planning dozens of large-scale SNG plants, many of which are to be located in arid and semi-arid regions in Xinjiang and Inner Mongolia. Other developing APEC economies face similar problems, including Thailand and Indonesia.

The challenge is to deploy new coal plants with state-of-the-art technologies that are less water-intensive.

Avoiding overlapping work in other fora is something all APEC projects are asked to do. A number of organizations have studied the impact of fossil fuel production and use on water demand, especially for coal power generation and conversion to transportation fuels and chemicals in China.  Also, water-conservation technologies have been mentioned in some conference presentations and publications, including industry magazines[1]. However, there is no known public document addressing the breadth and depth of the entire production and use cycle contained in this project proposal.  Existing information tends to be general and lacking specific project and/or technology details. While other fora are concerned with this issue, no other fora are addressing the scope of this project, especially for the range of coals and applications found in the Asia Pacific region. In fact, recognition of the criticality of this issue is what prompted this project proposal. 

This project calls for more detailed description of these issues in other developing economies, which would help understand the substantial needs for capacity building in this area. Research on the topic in other developing economies and other international fora should be highlighted as part of work that this proposal calls for the project to carry out, while avoiding overlap with these other activities.

The project is to collect and share information on the latest technology developments and best practices, and policy measures, related to water use for coal-power generation and production of SNG and chemicals from coal. It falls within Rank 2 of the APEC Funding Criteria for all Projects 2014, under “Projects that directly support the APEC Leaders' Growth Strategy,” relative to “Promotion of Renewable Energy, Energy Efficiency and Low Carbon Technology,” and “Promoting Green Growth.”  Also, APEC Environment Ministers recognized the criticality of water in economic development in their 2012 meeting, by stating “We recognize that water is at the core of sustainable development and highlight its link to economic growth, poverty reduction, food security, a better sanitary state of the environment and ecosystems protection.”

Objectives

· To collect and share information on the latest developments to make coal-based energy systems, including power generation and production of SNG and chemicals more efficient and less water-intensive.

· To collect and share information on the latest developments for recovery and reuse of water from coal-based energy production, including use of alternative sources of water and coproduction of water with carbon capture, utilization and storage (CCUS).

· To collect and share information on policy and regulatory developments in APEC member economies related to the water-energy nexus for coal-based energy use.

Alignment

The Declaration by APEC Leaders, at their meeting in Bali, Indonesia, in October 2013, recognized the challenge presented by resource scarcity, by including a statement of their intention to ”address the nexus of water, energy and food security through the promotion of integrated policies and collaborative approaches”[1]. This project is part of the EWG’s response to the Leaders’ mandate.

The EWG’s mission statement contained in its draft Strategic Plan 2014-2018 is “to build the capacity of APEC members to strengthen domestic and regional energy security while lowering the carbon intensity of energy supply and use across the region”. Among the key tasks it cites to support this mission is “undertaking new analysis, research and demonstration on the water-energy nexus.” This project is formulated to respond to this EWG mandate.

TILF/ASF Justification

The objectives described above are specifically aimed at supporting the capacity building needs of APEC developing economies through the sharing of information on how to make their coal-based energy systems more efficient both in themselves and in their use of water. This will require a greater degree of coordination between government entities responsible for fossil power generation and those responsible for water resources and water management.

Beneficiaries and Outputs

Outputs:  

This is the first APEC-funded project on the water-energy nexus. As such, the end product will distinguish itself from previous work in the field by setting the water-energy nexus issues in the APEC context. The project outputs are expected to include substantive suggestions regarding the future shape of APEC work on the nexus, and to add emphasis on the role of APEC by making detailed proposals on the content of such work. Further work in the water-energy nexus area will be specified in a follow-up APEC project proposal or proposals. For example, there could be an APEC workshop or workshops as part of the follow-up.

Also, the related EWG water-energy nexus project self-funded by the USA may provide additional information that could help the policy-related aspects of future project proposals. These projects will be closely coordinated since both POs work for the US Department of Energy. 

The main project output will be a report containing information on the latest developments to make coal-based energy systems, including power generation and production of SNG and chemicals, more efficient and less water-intensive. The report will set the scene by describing the nature and magnitude of the water-energy nexus, drawing from practical examples in regions where water is scarce, and highlighting the technical, economic and institutional issues faced by power generation in such regions. A number of case studies will describe how specific power generating plants in such arid regions manage their water needs. The report will synthesize information from these case studies and other recent sources, to summarize the latest developments for recovery and reuse of water from coal-based energy production, including use of alternative sources of water and coproduction of water with carbon capture, utilization and storage. Policy and regulatory developments related to the water-energy nexus will be highlighted. 

Outcomes:  

The major outcome desired from this project is a growing recognition by individual economies of the need to a) consider the water-energy nexus in their energy planning, b) develop and enact government policy and regulatory measures to encourage, and where necessary require, deployment of more efficient and less water-intensive technologies for coal-based power generation and production of SNG and chemicals in their new energy facilities, and for retrofit of existing facilities where possible and feasible. The discussion and implementation of plans by governments to institute such measures may be expected to stimulate development and deployment of more efficient and less water-intensive coal-based technologies by the engineering and technology supply sectors. Interaction of governments and the relevant industry sector players during the development of plans to manage with the water-energy nexus could be a positive factor in ensuring the technical and economic feasibility and efficiency of approaches to dealing with the problem. 

Beneficiaries: 

The project beneficiaries are expected to be:

·  Key government officials involved in decision-making on freshwater resources management (production, transportation and distribution), fossil energy and water use; and relevant environmental and regulatory issues

·   Power generation sector decision makers

·   Coal-based SNG and chemicals sector decision makers

·   Institutes and academia involved in economic and policy analysis in this area

·   Industry sector representatives with interests in this topic

·   Other international fora active in this topic area (e.g., IEA/OECD)

·   The general public and potentially future generations

They will benefit in a number of ways:

·   Energy, coal, and power generation policymakers will benefit from up-to-date information on clean coal technology demonstrations and deployments aimed at reducing water use in power generation and production of SNG and chemicals.

·   Governments and the coal-based energy sector in developing APEC economies will benefit from capacity building through improved knowledge and access to current information.

·   The engineering and technology supply sectors will be better placed to identify new opportunities for deployment of more efficient and less water-intensive coal-based energy technologies in developing APEC economies.

·   The public stands to benefit through reduced emissions of environmental pollutants due to the use of more efficient and less polluting coal technologies, as well as less risk of water scarcity in susceptible regions.

.   Future generations may benefit from increased sustainability due to better availability of water resources, as well as the beneficial effects on global climate of reduced accumulation of CO2 in the atmosphere due to cleaner and more efficient coal use.

Dissemination

One key element of the success of any APEC project is its visibility within and beyond APEC, which depends to a significant extent on the dissemination strategy. It is proposed that following contractor selection and during the launching of the work the Project Overseer should make a brief presentation to the Energy Working Group during one of its meetings, preferably prior to the launch.

As noted in Section 5 above, the project results are expected to include proposals for more detailed work to be done and identify barriers to be overcome. The Energy Working Group will have been made aware of the project from the beginning (see above). When the project is complete and the outputs available, the EWG should be again consulted and invited to pronounce on whether there is a possible role for SCE, Senior Officials or Ministers in giving the report and recommendations sufficient standing and impetus that the recommendations will be acted upon?

The products of this project, including the final report and other materials, will be posted on the APEC, EWG, and EGCFE websites for viewing and downloading, and linked to other websites dealing with water issues related to coal-based energy production. 

The results of the project will be shared with the Carbon Sequestration Leadership Forum (CSLF), the Global CCS Institute, the IEA/OECD, and other international fora active in this area.

The project results are targeted mainly at the potential beneficiaries identified in Section 7 above.

There is no intention to sell outputs arising from this project.

Gender

The EWG and EGCFE always encourage participation of women from all APEC members in all its committees, projects, and activities. Women have served in the past as the principal investigators/lead authors of several EGCFE projects. Participation by women in the project steering committee will be encouraged, and the committee will encourage women to participate actively in the project.

The project will be carried out by a consultant in response to a tender. The RFP will stress the need to involve women in both planning and implementation stages. In the evaluation of submitted bids in response to the project RFP, specific attention will be given to qualified women proposed by the bidder. The EGCFE members involved will ensure that the winning submission adheres to the priorities of the Framework for the Integration of Women in APEC (“Accelerate the progress of integrating women in the mainstream of APEC processes and activities” and “Promote and encourage the involvement of women in all APEC fora”). The APEC Framework, as well as the Gender Analysis Guide and other relevant documents, will be made available to those involved in all aspects of the project; their application will be monitored throughout the project.

Having an adequate, dependable, and efficient supply of energy and clean water in the APEC Region benefits men and women equally with regards to economic development and protection of the environment. To the extent that the results of the project assist in reducing stress between water resources and energy availability, women in developing APEC economies may benefit through more adequate availability of provision of water resources and an improved environment through cleaner, more efficient coal use.

Work Plan

The project will be conducted by a contractor under the guidance of an APEC Project Steering Committee, which will be composed of EGCFE members, and possibility other government and industry representatives.

Activities will include review of current activities in other international fora regarding the relationship between energy and water as far as power generation is concerned, and other emerging areas of interest involving U.S.-China collaboration (see below)

a) January 2015: RFP issued.
b) February 2015: Deadline for submission of proposals.
c) March 2015: Selection of contractor and negotiation of contract with APEC.
d) April 2015: Contractor submits detailed timeline for the project and proposed outline of the final report.
e) October 2015: Preliminary draft of the final report submitted for review by the project steering committee.
f) December 2015: Finalization of the project report for publication by APEC.

Risks

Potential risks that the Project may face include:

·  Timely identification and selection of the most appropriate consultant via an RFP.

· Ability to obtain appropriate and timely information on the source and use of water resources in coal-fired power generation production of SNG and chemicals, especially in areas where water is scarce.

· Identification of examples of water-saving technologies and measures at facilities for coal-fired power generation and production of SNG and chemicals, limitations in obtaining agreement to share information.

·  Timely project completion and publication of the results.

· Appropriate follow-up on implementation of the project recommendations.

As the project progresses, additional risks may emerge requiring mitigation and management.

The EGCFE has developed a set of criteria and scoring methodology for assessment of responses to RFPs and consultant selection. Use of this process facilitates objective assessment by a team of EWG/EGCFE experts and achievement of consensus on the appropriate choice among RFP responders.

Following consultant selection, the project steering committee and the consultant selected to carry out the project will be aware of the potential risks, as well as others that may be identified in the process, and will work together to avoid or minimize them. Appropriate follow-up will be discussed in the EGCFE EWG.

Monitoring and Evaluation

Evaluation indicators for the outputs could include the number of APEC economies who introduce substantive work on aspects of the water-energy nexus in their economy, and the number and nature of new proposals for dealing with related issues identified.

Feedback from members of the project steering committee, EGCFE members, and EWG members will be an indicator of success in the medium term.  The longer-term measures of success will be use of the project results by developing APEC economies in supporting their decision-making on how to handle the implications of the water-energy nexus and what policy measures are implemented to conserve scarce water resources while developing needed clean and efficient coal-fired power generation and production of SNG and chemical from coal. Feedback on this will be sought via significant coal-using EGCFE and EWG members, and from coal technology and water supply industry experts.

The response to question 9 above dealt with the measures taken to ensure the participation and engagement of women in the project. As regards gender, the degree of women involvement, in terms of responsibility and numbers, can be evaluated objectively at the conclusion of the project. Of particular interest in this regard, apart from the number and qualifications of women experts in the project, will be their input to the analysis, and the consequences of their input for the project results and conclusions, both as far as gender is concerned and in general.

Linkages

This project will benefit from and assist in updating the results of previous EGCFE projects on clean coal technologies, such as the ongoing EGCFE project entitled “APEC Initiatives for Deployment Advanced Clean Coal Technologiesand previous EGCFE projects, including “Permitting issues related to new coal-based power plants, including carbon capture and storage in developing APEC economies”; “Planning and cost assessment guidelines for making new coal-fired power generation plants in developing APEC economies CO2 capture ready”; “Technology status and project development risks of advanced coal power generation technologies in APEC developing economies”; “Reducing trade, regulatory, and financing barriers to accelerate the uptake of clean coal technologies by developing economies in the Asia Pacific region”; and “How can environmental regulations promote clean coal technology adoption in APEC developing economies?” It should draw from the results and recommendations of these previous projects, particularly setting their products in the context of the water-energy nexus.

A self-funded APEC project under the APEC Energy Working Group involving the energy-water nexus is being developed entitled “Clean and Efficient Use of Energy and Water Resources: Initiating an APEC Road Map and Best Practices for the Energy-Water Nexus”. In that project, the United States and China, under APEC’s Energy Smart Communities’ Initiative (ESCI), will develop modelling capabilities to examine water use in energy production and energy use in water production to identify potential vulnerabilities, particularly in urban areas. The goals are to 1) standardize definitions and data collection to improve data and analysis, 2) gather relevant data from APEC economies, 3) determine data gaps, and 4) identify potential vulnerabilities along with adaptive strategies to help mitigate energy-water nexus impacts.

Coordination of the activities in the EGCFE energy-water nexus initiative described in this Proposal with the above project will be assured. The two projects approach the nexus from different viewpoints, with the emphasis of the EGCFE project being on technological issues for the more efficient use of water in energy production, while that of the EWG project is identification of potential vulnerabilities, particularly in urban areas.

The project has a potential to lead to future inward investment in projects in the coal-based energy sectors in developing APEC economies. The earlier deployment of clean and more efficient coal technologies for new energy facilities will also interface with APEC projects on carbon capture and sequestration (CCS), because plants using these technologies can be built so that they are capable of adding CCS in the future if necessary. In a number of APEC regions, the availability of water resources can be a barrier to the development of coal-based energy facilities.  This project may help to define ways to address such obstacles and facilitate investments.

For these reasons, APEC is an appropriate forum to undertake this project and this is a very appropriate use of APEC funds.

Sustainability

Taken together with the results of the previous projects cited above, the project’s long-term intended impacts are to put developing APEC economies with rapidly growing use of coal for electricity generation and production of SNG and chemicals in position to deploy more efficient clean coal technologies as effectively and economically as possible, and to build professional capabilities and capacity for achieving this. Long-term sustainability is a key objective of the EWG forum. The results of the project are likely to identify more detailed work needed on specific aspects of clean coal technology deployment in developing APEC economies, including the availability and utilization of needed water resources, which could be the object of future APEC projects. The results are likely to identify more clearly the barriers to CCT deployment due to the water-energy nexus in the situations different APEC economies find themselves, and further APEC work may be necessary to resolve the issues and find the most efficient way forward.

Project Overseers

The main point of contact will be Scott M. Smouse of the United States Department of Energy’s National Energy Technology Laboratory, who is the EGCFE Chair.

Mr. Smouse has over 30 years experience in nearly every aspect of fossil energy utilization and power generation, especially coal-based technologies. Since 1996, he has coordinated all of NETL’s international activities, including working with senior Department and other U.S. government officials on a wide variety of bilateral and multilateral initiatives and projects. He has worked with senior government officials, industry, and academia from over 30 countries on a wide range of cooperative research, development, and demonstration projects; technology and market assessments; technology transfer; and policy analyses, primarily related to fossil energy production and utilization. He has chaired the APEC’s Expert Group on Clean Fossil Energy for about a dozen years and has served as the Lead Coordinator on Annex IV: Energy & Environmental Control Technologies under the Fossil Energy Cooperation Protocol between U.S. DOE and China’s Ministry of Science & Technology (MOST) since 2001. Also, he served a technical expert and U.S. representative on the Power Generation and Transmission and Cleaner Fossil Energy Task Forces of the Asia Pacific Partnership on Clean Development and Climate. He is also a representative to the Power Working Group under the Global Superior Energy Performance Partnership of the Clean Energy Ministerial.  He is a member of the U.S. Executive Committee to the International Energy Agency’s Clean Coal Centre and the Executive Board of the U.S.-China Energy & Environmental Technology Center. Mr. Smouse also provides crosscutting support to Carbon Sequestration Leadership Forum (CSLF), especially the Capacity Building and Finance Task Forces. He was the lead author of the international sections of the 2010 report by the Carbon Capture & Storage Task Force to U.S. President Obama. He coordinates NETL’s interaction with other organizations with international objectives, including United States Energy Association, World Energy Council, Atlantic Council, Edison Electric Institute, and multilateral development banks. He holds a B.S. in Chemistry from Fairmont State College and a M.S. in Fuel Science (Combustion) from Penn State University. He previously held several positions in the U.S. private sector, with Pope, Evans & Robbins, Inc.; DUSCO Division of Dearborn Chemical Company, a W.R. Grace subsidiary; and Babcock & Wilcox Company.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Direct labour funded by APEC will consist of the consultant team and their secretarial assistance. Total estimated hours are shown above. The consultant will be selected competitively via an APEC RFP.

Dispensation of funds for consultant’s fees will be as follows: 20% upon submission of detailed timeline for the project and proposed outline of the final report; 40% upon provision of the preliminary draft report to the project steering committee for review; the remaining 40% upon publication of the final report.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

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PMU Field 3

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