June 24, 2009
Vol. XII, No. 13

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TABLE OF CONTENTS

1.25 Trillion Barrels of UCG-CTL Potential: Central Petroleum

Sasol-Shenhua CTL Construction Project to Start in 2010

U.S. Senate Energy Bill Expands Loan-Guarantees, Includes CCS ‘Indemnity’ Provision

$50/Ton CO2 Tax Would Make CBTL Competitive: NRC Study

U.S. DOE Revives FutureGen IGCC Project in Illinois

Mitsubishi Wins Australia’s ‘ZeroGen’ IGCC Project

Stora Enso, Neste Launch BTL Demo Plant

Gasification WTE Bill Introduced in U.S. Senate

China Launches ‘GreenGen’ IGCC Construction

Mississippi Power Wins 1st Round in Battle over IGCC Plant

Mitsui Eyes CO2-to-Methanol Technology with ‘Green’ Hydrogen

China Moving to Standardize Methanol Blends for Cars

Shenhua Plans $58 Billion for Coal Gasification Projects

Syntech Resources Plans $1.5 Billion CTL Project in Australia

Linc in Coal Tenement Sale Talks

Foster Wheeler, MHI Win CCS Deal in UK

Tenaska Hires Fluor for Texas Supercritical Coal-CCS Project

U.S. DOE Grants $14 Million to 9 CO2 Capture Schemes for IGCC

U.S. DOE Issues 2 More ‘Funding Opportunities’ for CCS

Rentech Buys into Biomass Gasification: Gets SilvaGas, Takes 25% of ClearFuels

Global Energy Holdings Faces Amex Stock Delisting

Sasol Expects 50% Earnings Cut for Fiscal 2009

SeprOx Aims to Compete with Air Products in ‘ITM’ Oxygen Separation

FT-Like 50% ‘Bio-SPK’ Kero-Jet Wins Boeing, Pratt & Whitney, GE, Airline Endorsements

News Briefs

Market Snapshot

 


1.25 Trillion Barrels of UCG-CTL Potential: Central Petroleum

 

        Australia’s Central Petroleum announced June 9 that about 1.25 trillion barrels of coal-to-liquids (CTL) fuel could be recovered via underground coal gasification (UCG) and subsequent Fischer-Tropsch synthesis from its Pedirka Basin tenements.

        The targeted UCG area in the Simpson Desert straddling the South Australian-Northern Territory border could yield a “major source of highly marketable ultra-clean middle distillate fuels through modern underground coal gasification technologies,” according to an independent report for Central Petroleum by Mulready Consulting Services.

        Central said the findings “added weight to its goal to develop a large-scale GTL [CTL] processing plant in Alice Springs, to produce ‘ultra-clean’ diesel, jet fuel or naphtha.”

        "The Mulready report estimates that the ‘best’ case (mid-case) syngas prospective resource which may be available via UCG processes in our Pedirka Basin petroleum acreage could produce about 1.25 trillion barrels of liquid gas in a GTL plant or plants, which would be sufficient to fuel a 140,000 barrel-a-day gas-to-liquids plant for about 27,000 years," Central Petroleum managing director John Heugh said.

"The UCG technology has not been proven at large commercial scale in the west however, and the exploration target remains just that until more wells are drilled."

        The UCG-CTL prospect potentially could “attract commercial interest from one of the larger global petroleum corporations,” he added.

        The report notes that both Carbon Energy and Linc Energy have published results from pilot UCG programs in Australia. The report assumed similar production volume results could be expected from future UCG at Pedirka.

        Construction of a 140,000 barrels/day UCG-CTL plant in central Australia is estimated at about the same cost of a similar GTL plant in Qatar. The plant is assumed to produce 70% FT diesel and 30% FT naphtha.

“Total plant investment cost, excluding Darwin marine terminal, would thus be approximately US$6.3 billion,” with an assumed 15%/year capital charge, the report said. Capex per daily capacity barrel would be U.S. $45,000, with an assumed 46 million barrels/year annual capacity factor (90%).

        “It is assumed that the product would be sold into the Australian market and that the average wholesale price of GTL [CTL] fuels would be approximately US$15.5 above the Dubai crude price,” the report said.

        “A delivered cost of US$46/barrel would be the same as the landed cost of similar petroleum products imported from Singapore with Dubai crude at US$30.50/bbl,” the report said.

“At the present time when we are seeing US $60 per bbl crude prices, a net surplus of around US $30/bbl could be expected,” the report says. “If the cost of feedstock (delivered) was to double to A$4.50/GJ, then the net surplus (at US$60/bbl crude price) would drop to around US$13 /bbl. In other words, the price of crude above which the operation remains sustainable, increases to US$ 47 /bbl.” -- Jack Peckham

 

 

 

Sasol-Shenhua CTL Construction Project to Start in 2010

 

        Long-awaited construction of the proposed Sasol-Shenhua indirect coal-to-liquids (CTL) project in China could start next year, according to several news reports.

        The official Xinhua news agency and the AsiaPulse news agency both said the proposed 80,000 barrels/day project now carries an estimated $7 billion price-tag, assuming the second-phase feasibility study wins government approval.

The first-phase feasibility study started in 2004, followed by a second-phase study last year.

        “Shenhua Ningxia and Sasol are now preparing an environmental pollution evaluation report, soil and water conservation report and water resource demonstration report,” the news service said. “They'll be submitted to the NDRC [National Development and Reform Commission] for examination and approval at this year's end.”

        Asked for comment on the report, Sasol media manager Nothemba Noruwana told Gasification News: “We are still busy with the feasibility study which will asses, amongst other issues, capital cost requirements. It would not be appropriate to comment on the content of the study until it has been finalized, after which it will be studied internally ahead of any public statements.” – Jack Peckham

 

 

 

U.S. Senate Energy Bill Expands Loan-Guarantees, Includes CCS ‘Indemnity’ Provision

 

        The U.S. Senate Energy & Natural Resources Committee on June 17 voted to approve its version of a new energy bill that would expand loan guarantees for “clean” energy projects and spur CO2 capture & storage (CCS) in part through a federal “indemnity” provision for up to 10 commercial-scale CCS projects.

        According to the text of the majority Democrat bill later incorporated into the “American Clean Energy Leadership Act” passed by the Senate Energy committee last week, such indemnity originally would have applied only to demonstration projects.

        That bill would authorize U.S. Dept. of Energy (DOE) “to indemnify large-scale demonstration projects from liability for personal, property, and environmental damages in excess of their insurance coverage or other financial protection that they may be required to maintain.

“Liability resulting from the project operator’s intentional misconduct or gross negligence is expressly excluded. The Secretary [of DOE] is required to charge a fee for providing indemnification, in an amount that reflects the net present value of the payments that the Government may have to make, taking into account the likelihood of an incident requiring the Government to make indemnification payments.”

        The new bill also creates a new loan-guarantee entity within DOE: the Clean Energy Deployment Administration (CEDA).

        The new agency would “provide various types of credit to support deployment of clean energy technologies, including loans, loan guarantees and other credit enhancements as well as secondary market support, to develop products such as clean energy-backed bonds that would allow less expensive lending in the private sector,” the Energy committee said in its summary of the new bill.  

The bill also imposes a national “renewable electricity standard” (RES) forcing sellers of electric to get 3% of their power from renewable sources starting in 2011, 6% starting in 2015, 9% in 2017, 12% in 2019 and 15% in 2021.

        Utilities selling less than 4 million megawatt hours per year would be exempt.

        Qualifying “renewables” in the bill are wind, solar, ocean, geothermal, biomass, landfill gas, incremental hydropower, hydrokinetic and “new hydropower at existing dams with no generation.”

        Ways of meeting the “renewable” standard include producing the target amount of electricity or efficiency savings; purchasing renewable energy or efficiency savings; purchasing renewable energy credits or energy efficiency credits; or making alternative compliance payments to DOE at a rate of 2.1 cents/kilowatt-hour.

        The bill also would force DOE to hold at least 30 million barrels of the total 1-billion-barrel strategic petroleum reserve inventory in refined petroleum products “such as gasoline and diesel fuel,” the committee said.

        The bill also would increase the amount of federal guarantees available for financing of the proposed Alaska natural gas pipeline (to the lower 48 U.S. states) to $30 billion.

        The legislation also sets qualifying criteria that will “help to ensure that critical early-mover projects will be conducted safely while addressing the growing concerns of reducing greenhouse gas emissions from industrial facilities, such as coal and natural gas fired utilities, cement plants, refineries and other carbon intensive industrial processes,” the committee said. – Jack Peckham

 

 

 

$50/Ton CO2 Tax Would Make CBTL Competitive: NRC Study

 

The U.S. National Research Council (NRC) found in a new study that combined coal/biomass to liquids (CBTL) plants would be cost-competitive with conventional oil refineries – especially if a $50/ton CO2 tax is imposed in the U.S.

The study, “Liquid Transportation Fuels from Coal and Biomass,” (see: link to source document), points out that the U.S. has plenty of coal and lots of non-food biomass that could be converted into liquid transportation fuels.

The study, funded by U.S. Dept. of Energy, BP, Dow Chemical, GE Energy, General Motors, Intel and two charitable foundations, was headed-up by retired ExxonMobil researcher Michael Ramage and a host of academics at Princeton, MIT, Penn State and others.

The study panel “concluded that alternative liquid fuel technology can be deployable and supply a substantial volume of clean fuels for U.S. transportation at a reasonable cost,” especially with a hefty CO2 tax.

Here are the key economic conclusions in the report:

 

 

 

The study looked at biochemical (enzymatic conversion) as well as gasification-based (thermochemical) transformation of coal and biomass into liquid fuels.

        “Cellulosic biomass—obtained from dedicated fuel crops, agricultural and forestry residues, and municipal solid wastes—could potentially be sustainably produced at about 400 million dry tons per year with today’s technology and agricultural practices and with minimal adverse impacts on U.S. food and fiber production or on the environment,” the panel found.

Similarly, the U.S. has enough coal reserves to meet expected demand for at least another 100 years, they found.

“If all necessary conversion and distribution infrastructure is in place, 550 million dry tons of biomass can in theory be used to produce up to 30 billion gallons of gasoline equivalent fuels,” they said.

        As for coal-to-liquids (CTL), “requiring geologic CO2 storage with these processes would have a relatively small effect on engineering costs and efficiency. However, the viability of geologic CO2 storage has yet to be adequately demonstrated on a large scale in the United States, and unanticipated costs could occur.”

        If coal and biomass were gasified together for CBTL, “overall CO2 life-cycle emission is lower than that from coal because the CO2 emission from the coal is countered by the CO2 uptake by biomass during its growth,” they said.

“If 550 million tons of biomass are combined with coal (60% coal and 40% biomass on an energy basis), production of 4 million barrels per day (60 billion gallons per year) of gasoline equivalent is technically feasible. That amount of fuel represents about 45% of the current volume of liquid fuels used annually for light-duty vehicles in the transportation sector.

“Conversion of combined coal and biomass to liquid fuels at that ratio without geologic CO2 storage yields CO2 life-cycle emission similar to that of gasoline. With geologic CO2 storage, it yields close to zero CO2 life-cycle emission.”

        To boost commercialization of such plants, “the federal government should continue to partner with industry and independent researchers to determine the costs, safety, and effectiveness of geologic CO2 storage on a commercial scale,” the report says.

“If such demonstrations are initiated immediately and geologic CO2 storage is proved viable and safe by 2015, [then] the first commercial plants could be operational in 2020.” -- Jack Peckham

 

 

 

U.S. DOE Revives FutureGen IGCC Project in Illinois

 

        U.S. Secretary of Energy Steven Chu announced June 12 that the stalled FutureGen integrated gasification combined cycle (IGCC) demonstration project would go forward in Mattoon, Ill., as originally favored by the industry-led FutureGen Alliance.

        The project fell apart in early 2008 when the Department of Energy (DOE) decided that the federal contribution would better be spent on several projects instead of the single Illinois site, where project costs were estimated to have skyrocketed.

        Since then, former Illinois senator Barack Obama (who supported the project) was elected U.S. President.

DOE Secretary Chu said of the new agreement: “The FutureGen project holds great promise as a flagship facility to demonstrate carbon capture and storage at commercial scale. Developing this technology is critically important for reducing greenhouse gas emissions in the US, and around the world.”

"The agreement that was reached by the Department of Energy and the FutureGen Alliance is an historic moment for both our state and our country," said assistant Senate Majority Leader Dick Durbin (D-IL).

Under the terms of the provisional agreement between DOE and the FutureGen Alliance, DOE said it will issue a record of decision on the project “by the middle of July, with the following activities to be pursued from the end of July 2009 through early 2010:

-- Rapid restart of preliminary design activities.

-- Completion of a site-specific preliminary design and updated cost estimate.

-- Expansion of the Alliance sponsorship group.

-- Development of a complete funding plan.

-- Potential additional subsurface characterization.”

 

Following completion of the detailed cost estimate and fund-raising, DOE and the Alliance “will make a decision either to move forward or to discontinue the project early in 2010.”

“Both parties agree that a decision to move forward is the preferred outcome and plan to reach a revised cooperative agreement that will include a funding plan for the full project. Funding will be phased and conditioned based on completion of NEPA review.”

DOE’s anticipated financial contribution for the project is $1.073 billion, $1 billion of which comes from Recovery Act funds for CO2 capture & storage (CCS) research.

The FutureGen Alliance’s total anticipated financial contribution is $400 million to $600 million, based on a goal of 20 member companies each contributing a total of $20 million to $30 million over four to six years.

“The Alliance, with support from DOE, will pursue options to raise additional non-federal funds needed to build and operate the facility, including options for capturing the value of the facility that will remain after conclusion of the research project, potentially through an auction of the residual interests in the late fall,” DOE said. – Jack Peckham

 

 

 

Mitsubishi Wins Australia’s ‘ZeroGen’ IGCC Project

 

        Mitsubishi Heavy Industries (MHI) confirmed June 22 that it won a feasibility study order for Australia’s proposed “ZeroGen” 530-MW integrated gasification combined cycle (IGCC) project with CO2 capture & storage (CCS).

MHI and its corporate parent said the plant would aim to begin operations in 2015.

 

 

 

Artists’ conceptual drawing of ZeroGen's IGCC + CCS plant

 

The CCS portion of the estimated $2.2 billion IGCC project aims to store CO2 in deep subsurface brine aquifers, MHI said.

MHI will be the “exclusive manufacturer, supplier and builder of the IGCC facility, including CO2 recovery and storage systems,” the company said.

ZeroGen, wholly owned by the Queensland state government, will select potential sites in Queensland both for the IGCC plant and for a carbon transport and storage area, and also will handle other areas such as infrastructure, coal supply, stakeholder engagement and environmental studies.

Mitsubishi Corp. (MC) pointed out that it already possesses “considerable” coal interests in Australia and has been looking for a CCS opportunity, in part because of its membership in the Global Carbon Capture and Storage Institute (GCCSI).

GCCSI was established by the Australian federal government to support commercialization of CCS.

“MC proposed that the ZeroGen project be promoted with support from the government” through the GCCSI, the company said. “In addition to supplying the plant together with MHI, MC aims to contribute to the project in many areas, including coal and pipeline supply and emissions trading in the future.”

MHI's IGCC system is based on air-blown gasification technology, which the company “has further refined to achieve the world's highest transmission end power generation efficiency,” MHI boasts.

For the ZeroGen project, MHI will install a water-gas shift reactor to maximize CO2 capture from syngas.

MHI earlier delivered a 250-MW IGCC demonstration plant to Clean Coal Power R&D Co., in Iwaki, Fukushima Prefecture, a group that includes 10 domestic electricity providers. “The demonstration plant has already completed more than 2,000 hours of continuous operation and has proved its high reliability and operational availability,” MHI said.

At last year’s Gasification Technologies Council annual meeting (see Gasification News 11/12/08), Mitsubishi bragged that its 250-MW demonstration IGCC plant in Japan has higher thermal efficiency than oxygen-blown IGCC.

        “We get the best net efficiency in the world, around 42% today,” as Yoshitaka Ishibashi of Clean Coal Power R&D explained. With improved turbines, efficiency could be boosted even more, he showed.

In a separate GTC 2008 presentation, Mitsubishi deputy general manager Koichi Sakamoto pointed out that Mitsubishi also has oxygen-blown gasification technology under development at a pilot plant in Nagasaki, targeting substitute natural gas (SNG), chemicals and coal-to-liquids (CTL) applications.

But the air-blown IGCC scheme would be lower in cost of electricity as well as more efficient, he said.

While the engineering, procurement & construction (EPC) cost on an oxygen-blown gasifier would be slightly lower in cost than an air-blown scheme, the power consumption penalty of a large air-separation unit would penalize net power output, he said. So, on a dollars/kilowatt basis, air-blown is “much more advantageous,” he said.

The scheme for an air-blown 450-MW IGCC (with G-class turbine) or 500-MW (with F-class turbine) plant would be capable of 60-65% CO2 capture, he said.

However, if a >90% CO2 capture mandate is imposed, then oxygen-blown gasification would be more practical than air-blown, Sakamoto told us. -- Jack Peckham

 

 

 

Stora Enso, Neste Launch BTL Demo Plant

 

        Finland-based forest industry giant Stora Enso and Neste Oil on June 11 announced the inauguration of a demonstration-scale biomass-to-liquids (BTL) plant that would produce Fischer-Tropsch diesel.

        The plant, at Stora Enso’s Varkaus, Finland mill, is the result of a 50/50 joint venture called NSE Biofuels Oy.

        The plant includes a 12-MW gasifier that will tap bark and other wood residue feedstocks from sawlogs and pulpwood.

The plant “will be used to develop technologies and engineering solutions for a commercial-scale plant,” Stora Enso said. “The demonstration process units will cover all stages, including drying of biomass, gasification, gas cleaning and testing of Fischer-Tropsch catalysts.”

While Stora Enso CEO Jouko Karvinen didn’t reveal the production capacity of the demo plant, he hinted that it would be about 5,000 tons/year of FT liquids.

Matti Lievonen, CEO of Neste Oil, said the new plant “is an important development step for us in our efforts to discover new renewable raw materials for traffic fuels, and forms an integral part of our contribution to helping society reach the climate-related goals set for traffic by the EU."

        The Finnish Funding Agency for Technology and Innovation (Tekes) provided R&D funding for the project through its “BioRefine” program, while the Finnish Ministry of Employment and the Economy provided finance, Stora Enso said.

        Two years ago, Stora Enso estimated the demo project would cost about €14 million.

        “By 2020, 10% of the [European Union] fossil fuel for transport should be replaced by biofuel to reduce greenhouse gas emissions,” Stora Enso’s Karvinen noted in a speech at the inauguration. “It is estimated that this would require about 30 million tons of biofuels, which corresponds to the output of about 300 commercial-scale plants of this new technology being tested here . . .

“An industrial-scale production plant [of 100,000 tons/year] would be at least twenty times bigger [than the demo plant], and need about 1 million cubic meters of raw material per year,” he said.

        Technical Research Centre of Finland, engineering company Foster Wheeler and “other equipment suppliers” were credited with helping to launch the project, but Stora Enso refused to name all those involved.

Asked by Gasification News for clarification about which companies will be providing the gasification, syngas cleanup and FT synthesis technologies, Stora Enso spokesman Lauri Peltola told us that “the planned technology is next generation Fischer-Tropsch,” without providing further details. – Jack Peckham

 

 

 

Gasification WTE Bill Introduced in U.S. Senate

 

        U.S. Sen. Sen. Sherrod Brown (D-Ohio) announced June 9 the introduction of what he called the “Rubbish to Renewables Act of 2009” (S. 1172), aiming to spur U.S. Dept. of Energy to “facilitate the production of clean, renewable energy from municipal solid waste."

The bill was referred to the Senate Energy and Natural Resources Committee.

The bill defines an “eligible project” for DOE-supported waste-to-energy as including “technologies such as anaerobic digestion, plasma arc, or thermal gasification (including pyrolysis).” But the bill specifically excludes any “oxidizing technology, such as combustion or incineration.”

“Municipal solid waste” as defined in the bill means household wastes, construction & demolition waste, hotel/motel wastes, and certain commercial or industrial wastes “not subject to regulation as a hazardous waste under subtitle C of the Solid Waste Disposal Act,” the bill says.

        Besides ordinary food waste, “municipal solid waste” also would include certain appliances, clothing, consumer product packaging, cosmetics, debris resulting from construction, remodeling, repair, or demolition of a structure, disposable diapers, food containers made of glass or metal, food waste, household hazardous waste, office supplies, paper; and yard waste.

        Excluded from qualifying as “municipal solid waste” would be hazardous wastes and recyclable material, “including scrap rubber to be used as a fuel source,” and any solid waste from an industrial plant or segregated medical waste, the bill says.

 

 

 

MARKET SNAPSHOT

 

 

 

 

 

 

 

 

 

INTEGRATED GASIFICATION COMBINED CYCLE NEWS


China Launches ‘GreenGen’ IGCC Construction

        China will start construction of its first, 250-MW integrated gasification combined cycle (IGCC) plant combined with CO2 capture & storage (CCS) on June 26, according to a report from the official China.org news service.

        “This pioneer project would be country's first commercial-scale ‘clean coal’ power plant,” the report said.

“It will gasify coal to extract the hydrogen while sequestering the CO2 emissions, popularly known as CCS – carbon capture and storage. The carbon dioxide will then be pumped into oil wells to aid in petroleum recovery.”


Artist’s Conception of China’s 250-MW ‘GreenGen’ IGCC Project


 

        "All engineering and design work has been completed. Major items of [the] plant have been selected and are on order, and site preparation and foundation work is ready," the report quoted Lin Kai, GreenGen's associate manager, as saying.

GreenGen’s major shareholder is China's largest power producer Huaneng Group, the report noted.

“Other than the gas turbine power unit, which is to be imported, all components will be domestically produced, including the core feature, a novel gasifier designed by the Thermal Power Research Institute in Xi'an,” the report said, quoting Lin.

The project will be developed in the Lingang Industrial Park of Tianjin, some 150 km southeast of Beijing. The site has nearby supplies of coal, water, and direct electricity.

“The presence of a large number of chemical plants located in the Industrial Park also creates favorable conditions for the poly-generation system by providing opportunities to utilize their byproducts,” the report said.

The first phase of the GreenGen plant is expected on line in 2011. The project includes three phases for additional generation and capture, expanding to 650 megawatts by 2016 via 3,500 tons/day of coal gasification. – Jack Peckham

 

 

 

Mississippi Power Wins 1st Round in Battle over IGCC Plant

        The Mississippi Public Service Commission (PSC) this month threw out petitions by the state attorney general, Entegra Power, Magnolia Energy and the Sierra Club to halt proceedings on whether Mississippi Power (MP) should be allowed to pursue an integrated gasification combined cycle (IGCC) project in the state.

        The $2.2 billion, 582-MW plant would tap the KBR/Southern Company “TRIG” (transport gasifier) technology, if built.

        The PSC order says that “it is in the best interest of the public to continue an orderly administration” on the MP petition, which includes a request for a special electricity rate to pay for construction of the proposed plant.

        The attorney general earlier tried to claim that MP’s IGCC project was a “chemical plant” outside the jurisdiction of the PSC, while the Sierra Club is trying to block any coal-fired power plant (see Gasification News GN 5/13/09, 4/29/09).

        Entegra and Magnolia, both natural-gas-fired power producers, see the IGCC plant as unwanted competition.

        The PSC said the opponents of the IGCC project “offer no suggestion about how to timely address” the issues and so it denied their motions to “stay” (halt) the proceedings.

        Gasification of lignite to make syngas for IGCC is “part and parcel” of the power plant project, hence it can’t be termed a “chemical plant,” PSC found.

        The commission recognizes that questions remain on technology, fuel price, supply, federal legislation on greenhouse gas emissions and MP’s request for cost-recovery via a novel rate scheme.

        A “phase one” proceeding will look at the need for extra baseload power in the state, while a “phase two” proceeding will examine costs of various power-production or demand-reduction schemes.

        A phase-one decision is planned by Oct. 9, 2009, while the phase-two decision should be issued by May 1, 2010, the PSC said. – Jack Peckham

 

 

 

 

LIQUEFIED NATURAL GAS NEWS


 

GAS TO LIQUIDS NEWS


Mitsui Eyes CO2-to-Methanol Technology with ‘Green’ Hydrogen

        Mitsui Chemicals sees potential for converting CO2 with “green” hydrogen to make low-CO2 methanol.

        According to a Nikkei news service report, Mitsui is still in testing stage with the new scheme, involving CO2, hydrogen and a special catalyst.

        “The pilot plant can produce 100 metric tons of methanol a year,” the report said. The methanol is turn would be used to produce formaldehyde, ethylene and propylene.

“The secret is Mitsui Chemical’s catalyst, which is made from a mix of copper and zinc oxides. These are packed solid and placed inside a cylinder that functions like a filter, allowing the passage of CO2 and hydrogen while catalyzing the reactions that yield methanol.

“Catalysts of this kind typically break down after around a year, but Mitsui has developed a catalyst that can work continuously for several years.

“This is not the first technology that has been developed to make resins and plastics from CO2. Companies like Asahi Kasei Corp. are ahead on that score. But their processes require the burning of heavy oil to reach the high temperatures required for cracking. In any event, the purpose is not to reduce CO2 emissions.”

The report quoted Mitsui executive Terunori Fujita as saying: "What we have is a dream technology that absorbs CO2 and limits the generation of CO2."

The pilot plant produces methanol while reducing the amount of CO2 it releases by about 40% compared to conventional procedures that make methanol from natural gas.

However, “the system is not yet a net user of CO2 because CO2 is emitted by the heating equipment required to obtain the hydrogen used in the reaction,” the report said.

“To fully realize the net-user dream, several large hurdles must be overcome, not the least of which concerns the need for hydrogen. Mitsui now procures the hydrogen from outside sources, but it is working on ways to make hydrogen itself, again with the help of catalysts.

“The company is considering two methods. The first involves the use of a zeolite catalyst on the methane from natural gas to yield hydrogen and benzene. The second method uses photocatalysts and solar cells to make hydrogen and oxygen from the electrolysis of water . . .

        “If Mitsui can develop the second method, its overall process of making plastics from CO2 will leave behind even less of a carbon footprint. However, the electrolysis of water based on photocatalysts and solar cells will require new technological innovations.

“Another major hurdle is cost. The methanol made in the pilot plant is expensive compared to that made the conventional way of using methane from natural gas.”

 

 

 

 

China Moving to Standardize Methanol Blends for Cars

        The Chinese government has released national standards for automotive methanol fuel, according to a report last week from SinoCast.

        “China would approve national standards for methanol gasoline which contains more than 85% methanol, in an effort to develop substitutes to oil-derived fuels,” the report said.

Methanol remains cheap compared to gasoline, at just CNY 5.37 per liter at a fuel station in Taiyuan, the capital city of the northern province of Shanxi. That’s CNY 0.16 lower than that of ordinary gasoline.

Shanxi retail stations make such fuel available all over the province.

Meantime, “methanol production capacity had grown at a yearly pace of 25% from 2000 to 2008 and is expected to reach 29.5 million to 30 million tons nationwide in 2010,” the report said. “The figure will even surpass 50 million tons during the period from 2011 to 2015,” it added.

 

 

 

 

 

 

COAL TO LIQUIDS NEWS


Shenhua Plans $58 Billion for Coal Gasification Projects

        China coal giant Shenhua plans to invest some $58.5 billion in various coal gasification projects over the next decade, according to a Xinhua news agency report.

        The schemes would convert coal to fuels, synthetic natural gas (SNG) and methanol.

        Shenhua already began trial runs at its direct coal liquefaction plant in Inner Mongolia earlier this year and has a second, indirect coal-to-liquids (CTL) project in the works.

        A Shenhua official was quoted by Xinhua as saying the company plans to start more trial runs at the direct liquefaction plant in July. That plant aims to convert 3.5 million tons/year of coal to 1.08 million tons of diesel and naphtha.

        In total, Shenhua aims to create CTL capacity for production of some 30 million tons/year of chemicals and fuels by 2020, said Zhang Diankui, vice president, Project Planning, of Shenhua Coal Liquefaction Corp (Beijing).

        Shenhua plans to invest “400 billion yuan to build seven coal chemical production bases in regions, including Inner Mongolia, Ningxia, Xinjiang, Shaanxi and Shanxi,” he added.

 

 

 

Syntech Resources Plans $1.5 Billion CTL Project in Australia

        Australia’s Syntech Resources, a subsidiary of German investor group, Direct Invest, announced this month that it aims to put $500 million into a Surat Basin coal mine as part of a planned $1.5 billion coal-to-liquids (CTL) project.

        According to an announcement from Australia’s trade minister Simon Crean, obtained by Gasification News, Direct Invest has already invested $250 million in the Surat Basin coal project and will invest a further $250 million to make the mine operational.

“Construction on the [first phase of the project] will start in July, creating 100 jobs, while a further 100 jobs will be created once the mine opens,” Crean said.

“Initial [coal] shipments are expected to start in the second half of 2010 with an annual capacity of 1.5 million tons.”

Phase 2 of the Surat Basin project is expected to commence in 2013 with total employment expected to expand up to 600 jobs, he said.

“Direct Invest also announced that it will significantly increase its investment in Australian clean coal projects, including coal-to-liquid (CTL), gas-to-liquid (GTL), as well as carbon capture and storage,” Crean added.

“Direct Invest says that its investment in Australian clean coal technology projects is likely to rise to more than $1.5 billion over the next 5 years. The first project is the Sunstate CTL/GTL project, also located in the Surat Basin, and the second project to be located in New South Wales is in the preparatory stages.

“Direct Invest received support from the Australian Government’s trade and investment development agency, Austrade, and from the Queensland government . . .

        “Direct Invest has interests in clean coal technologies – coal to liquid, gas to liquid and developments in CCTL (Clean Coal to Liquids) that enables carbon capture and storage [with] more than $7 million investments to date with the potential to invest more than $1.5 billion dollars in this technology development over next 5 years,” he added.

In a separate report from Business Day (Australia), Direct Invest director, Erik Schaefer, was quoted as saying that the schemes would be “viable in a carbon-constrained economy with no need for government subsidies.”

Sunstate GTL has been touted by Australia’s Pacific GTL Ltd. as an (A)$1.5 billion coal-seam methane conversion scheme, aiming to produce 17,000 barrels/day of Fischer-Tropsch liquids (mostly diesel).

The proposed plant would be located in the Darling Downs area west of Brisbane and, according to Pacific GTL, would employ Syntroleum FT technology. – Jack Peckham

 

 

 

Linc in Coal Tenement Sale Talks

        Linc Energy announced June 24 that it has appointed UBS Investment Bank to advise on divestment of an estimated 5 billion tons of company coal tenements in mining areas at Emerald (Teresa), Galilee and Pentland, all in Queensland, Australia.

Funds from an eventual sale would support Linc’s planned underground coal gasification (UCG) and coal-to-liquids (CTL) projects.

“Linc Energy will duly discontinue its current exclusive negotiation with Chinese coal group Yanzhou Coal and related entities,” Linc announced. “Linc has decided that, though negotiations have been ongoing, the buyer's timetable to complete a purchase is no longer in the best interests of Linc Energy and its shareholders.

“With interest from potential bidders increasing and the overall confidence in the coal sector improving significantly, Linc Energy views the best mechanism for delivering value to shareholders for these assets would be via a competitive sales process conducted by UBS instead of continuing the existing negotiation.

“The divestment of any of these Queensland assets will not delay or adversely impact Linc's UCG/GTL commercialization strategy in South Australia or overseas.” Jack Peckham

 

 

 

CARBON STORAGE


Foster Wheeler, MHI Win CCS Deal in UK

Foster Wheeler on June 17 inked a technical services agreement for a pre-front-end engineering design (pre-FEED) for a proposed flue-gas CO2 capture project in the UK.

CO2 capture would be part of E.ON’s proposed supercritical-technology conversion of a coal-fired power station in Kent, England.

Consortium partner for the project is Mitsubishi Heavy Industries (MHI), which is supplying its “KM CDR” amine solvent-based CO2 capture technology.

MHI says this scheme offers “low energy consumption, low solvent degradation, and reduced corrosion within the equipment.”

E.ON is asking the UK government for CO2 capture & storage (CCS) funding as part of its Kingsnorth Power Station conversion project.

Some 2 million tons/year of CO2 from the retrofitted plant would be stored within a depleted North Sea gas reservoir. – Jack Peckham

 

 

 

Tenaska Hires Fluor for Texas Supercritical Coal-CCS Project

        U.S. power producer Tenasaka announced June 18 that it chose Fluor for engineering, procurement & construction (EPC) on its proposed 600-MW (net) “Trailblazer” supercritical pulverized-coal power plant in Nolan County, Texas.

The plant would include up to 90% CO2 capture & storage (CCS). Tenaska told Gasification News that it hasn’t yet selected a CO2 capture technology.

        A final decision whether to move ahead with Trailblazer will be made next year.

        New Texas legislation offers financial incentives for clean-coal plants that involve CO2 capture & storage (CCS), Tenaska pointed out. The new legislation also includes grant funds to help pay for front-end engineering & design (FEED) studies for CCS.

        The $3.5 billion plant, if built, “is expected to be the first conventional commercial coal-fueled power plant in the United States, and possibly worldwide, to produce electricity while designed to capture 85 to 90% of the CO2 emissions and providing for its use in enhanced oil recovery (EOR) and geologic storage,” Tenaska said.

Trailblazer has already received a draft air permit from the Texas Commission on Environmental Quality (TCEQ) and has received a “screening study” from the Electric Reliability Council of Texas (ERCOT).

Plant construction could begin as early as 2010, with operation in 2015, Tenaska said.

-- Jack Peckham

 

 

 

U.S. DOE Grants $14 Million to 9 CO2 Capture Schemes for IGCC

        U.S. Dept. of Energy (DOE) on June 11 announced selection of nine CO2 capture schemes for future integrated gasification combined cycle (IGCC) plants.

        The selected schemes include high-temperature membranes, with the following universities and a commercial producer:

·University of Minnesota, Minneapolis, Minn.—This project aims to develop defect-free, contaminant-resistant, hydrothermally stable molecular sieve membrane films with minimally tortuous path for diffusion of the preferred hydrogen molecules from the shifted synthesis gas mixtures (DOE share: $793,775; recipient share: $199,997; duration: 48 months).

·Pall Corp., Cortland, N.Y.—Pall Corporation will leverage its proprietary combinatorial membrane fabrication technology to screen a large number of potential ternary palladium (Pd)-alloys for sulfur-tolerant, phase-stabilized hydrogen transport membrane candidates for separating hydrogen from shifted synthesis gas mixtures (DOE share: $1,207,289; recipient share: $310,000; duration: 36 months).

·Arizona State University, Tempe, Ariz.—Researchers at Arizona State will integrate the water gas shift reaction with a CO2 selective membrane to separate CO2 from shifted synthesis gas (DOE share: $656,316; recipient share: $164,088; duration: 48 months).

Another selected scheme is for high-efficiency solvents:

·SRI International, Menlo Park, Calif.—SRI will use aqueous NH4CO3 based solvents to capture high-pressure CO2 at lower solvent cost and with an efficient regeneration process (DOE share: $1,998,455; recipient share: $399,691 [will be increased to $499,613 to meet the 20% requirement]; duration: 24 months).

A third scheme is for solid sorbents, involving two companies:

·TDA Research, Inc., Wheat Ridge, Colo.—TDA will develop novel mesoporous carbon with Lewis base functionalized groups that remove CO2 via physical adsorption (DOE share: $2,000,000; recipient share: $500,000; duration: 24 months).

·URS Group, Austin, Texas—Using a molecular computational approach to formulate and then fabricate superior sorbent material, URS Group will combine modeling and experiments to tailor sorbents properties for optimum CO2 capture (DOE share: $1,999,934; recipient share: $684,462; duration: 36 months).

DOE also solicited “novel ideas” on CO2 capture. Winning grantees include:

·Gas Technology Institute, Des Plaines, Ill.—GTI will couple an engineered plastic contactor with an appropriate solvent to potentially achieve 60% operating cost and 70% capital cost reduction (DOE share: $999,607; recipient share: $273,846; duration: 24 months).

·Membrane Technology and Research, Inc., Menlo Park, Calif.—Membrane Technology and Research will develop a novel polymer membrane(s) for the separation of hydrogen from shifted synthesis gas (DOE share: $952,764; recipient share: $240,061; duration: 24 months).

·New Jersey Institute of Technology, Newark, N.J.—Researchers propose a pressure swing absorption approach to capture CO2 using an ionic liquid incorporated in either a ceramic hollow tube or polytetrafluoroethylene (PTFE) fiber membrane (DOE share: $805,819; recipient share: $206,017; duration: 36 months).

 

 

 

U.S. DOE Issues 2 More ‘Funding Opportunities’ for CCS

        U.S. Dept. of Energy on June 15 unveiled an amended “round 3” funding opportunities announcement (FOA) for CO2 capture & storage (CCS) under the “Clean Coal Power Initiative” program.

“DOE anticipates making multiple awards under this FOA and may be able to provide up to $1.4 billion to be distributed among projects selected under both the previous closing date of January 20, 2009 and the new closing date of August 24, 2009,” DOE said.

“Of the total amount, approximately $800 million in DOE funding is being made available under the Recovery Act. The projects will be cost-shared, with the award recipient(s) providing at least 50% of funds for the project. . . .

        “Notable modifications made under this amendment include the following: Carbon capture technologies must operate at 50% carbon capture efficiency and make progress toward a target CO2 capture efficiency of 90%t in a gas stream containing at least 10% CO2 by volume.

“Projects must use domestic mined coal or coal refuse for at least 55% of energy input. . . .

“Per a legislative change contained in the Omnibus Appropriations Act of 2009, 70% of program funds are no longer required to be used to fund projects on coal-based gasification technologies.

“Applicants, including those who wish to re-submit or modify their submission from the January 20, 2009 closing date, must apply under the August 24, 2009 closing date. Selection announcements are anticipated for October 2009.”


-- Industrial CO2 FOA

Meantime, DOE unveiled yet another CO2 “FOA,” this time including projects that would use captured CO2 for “beneficial use.”

“DOE anticipates making multiple awards under this FOA,” the agency said. “The projects will be cost-shared, with the award recipients providing at least 20% of the total funding required for each project. DOE expects to provide more than $1.4 billion to the selected projects . . .

“Projects will be selected in two technology areas:

·Large-scale industrial carbon capture and sequestration projects from industrial sources ($1.3 billion)—The objective of this technology area is to demonstrate advanced technologies that capture CO2 emissions from industrial sources—such as cement plants, chemical plants, refineries, steel and aluminum plants, and manufacturing facilities—and store the CO2 in deep saline formations and deep geologic systems including basalts, operating or depleted oil and gas fields, and unmineable coal seams. In the evaluation process, greater weight will be given to projects that propose to capture and sequester 1 million tons of CO2 per plant per year by 2015 as an integral component of commercial operation.

·Innovative concepts for beneficial CO2 use ($100 million)—The objective of this technology area is to demonstrate innovative concepts for beneficial CO2 use, where ‘use’ is defined as the permanent conversion of CO2 from flue gas into another form such as solid carbonates, plastics, and fuels. These breakthrough concepts have the potential to mitigate CO2 emission in areas of the country where geologic storage may not be an optimal solution.”

The closing date for applications is August 7, 2009. Selection announcements are anticipated in September 2009, DOE said.

 

 

 

In Other Sectors


Rentech Buys into Biomass Gasification: Gets SilvaGas, Takes 25% of ClearFuels

        Los Angeles based synthetic fuels developer Rentech announced June 24 that it just bought 100% of biomass gasification technology SilvaGas and 25% of bioenergy project developer ClearFuels.

        “These agreements represent major steps forward in Rentech’s strategy of offering integrated solutions for the conversion of various types of urban and rural biomass feedstocks into high-value energy products such as renewable synthetic jet fuel, diesel fuel and electric power,” Rentech said.

“With the SilvaGas acquisition, Rentech acquires a biomass gasification technology that has operated at commercial scale and is planned for deployment at Rentech’s Rialto Renewable Energy Center under a licensing agreement with SilvaGas,” Rentech said. “The SilvaGas gasifier can handle urban waste streams that are more varied than the virgin biomass streams that the ClearFuels gasifier has been optimized to convert.”

ClearFuels’ technology, in contrast, “can convert rural virgin biomass feedstocks into syngas that is cleaner and requires less conditioning, leading to highly efficient conversion into synthetic liquid fuels,” Rentech said. “Commercial deployment of the ClearFuels technology first requires the construction and operation of a demonstration scale facility, on which Rentech and ClearFuels will collaborate by placing a ClearFuels gasifier at Rentech’s PDU [process development unit] in Colorado.”

Integration of the gasification technologies with Rentech’s syngas conditioning and cleanup technology and its Fischer-Tropsch fuels technology “will enable Rentech to offer integrated packages for renewable fuels and power production. These offerings can be tailored to optimize the conversion of a variety of renewable feedstock types into ultra-clean diesel fuel, jet fuel and electric power,” the company said.

Recent U.S. federal “renewable fuel standard-2” rules mandating 21 billion gallons of “advanced” biofuels open opportunities for biomass-to-liquids (BTL) fuels schemes, the company pointed out.

Meantime, parallel U.S. legislation expected to create a Renewable Portfolio Standard (RPS) for electric power also would favor biomass gasification power, Rentech said.

Hunt Ramsbottom, Rentech CEO, said: “With the acquisition of SilvaGas’ biomass gasification process, Rentech will own a complete technology offering for the production of renewable fuels and power. This biomass gasification technology provides us with the flexibility to choose from multiple low-value urban feedstocks to produce any of several high-value products such as jet and diesel fuels and power, depending on the market we are in.” – Jack Peckham

 

 

 

Global Energy Holdings Faces Amex Stock Delisting

Atlanta-based Global Energy Holdings Group announced June 9 that it received notice from the NYSE Amex stock exchange that Global Energy is not in compliance with the continued listing standards.

Reason for the listing: it has sustained losses or its financial condition has become so impaired that it appears questionable, in the opinion of NYSE Amex, as to whether Global Energy will be able to continue operations or meet its obligations as they mature.

Global Energy has until July 3, 2009 to submit a plan to achieve compliance with the Amex rules.

If Global Energy does not submit a plan, or if the plan is not accepted by NYSE Amex, or if Global Energy does not achieve compliance by December 3, 2009, then Global Energy’s common stock will be subject to delisting procedures.

NYSE Amex further notified Global Energy that due to the continued low trading price of its common stock, NYSE Amex deems it appropriate for Global Energy to effect a reverse stock split.

“If Global Energy does not complete the reverse stock split within a reasonable amount of time, NYSE Amex may suspend dealings in Global Energy’s common stock or initiate delisting procedures,” Global Energy Holdings said.

Global Energy Holdings describes itself as a developer of renewable energy projects, including biomass gasification and landfill-gas-to-energy projects. – Jack Peckham

 

 

 

Sasol Expects 50% Earnings Cut for Fiscal 2009

        Sasol announced June 19 that it expects to report earnings declines of between 40-50% for the fiscal 2009 year ending June 30.

        “The expected decrease in earnings is mainly due to the lower crude oil and chemical prices . . . together with a considerable reduction in refining margins and a further deterioration in chemical markets,” Sasol said.

“This earnings guidance includes the impact of the non-cash charges relating to the Sasol Inzalo BEE transaction and the administrative penalties paid to the European Commission and the South African Competition Commission” over price-fixing charges.

“Overall group production volumes are up mainly due to increased production volumes at the Oryx GTL plant and the additional production volumes at the Arya Sasol Polymers plant,” Sasol said.

“The Synfuels operations in Secunda, South Africa, are expecting production volumes to be about 4% lower than last year.

“The overall deterioration in market conditions will also result in negative stock effects, net realizable value stock write-downs and impairments.”

Meantime, “growth plans remain unchanged” but “we have reprioritized our planned capital expenditure to R16 billion for 2009 in light of the changed market conditions,” the company said.

Official FY 2009 results will announced on September 14, Sasol said. – Jack Peckham

 

 

 

SeprOx Aims to Compete with Air Products in ‘ITM’ Oxygen Separation

        Woodlands, Texas-based SeprOx announced June 10 that it won a $250,000 grant from Texas Emerging Technology Fund (ETF) for its version of a proposed ion transport membrane (ITM) oxygen-production technology.

The SeprOx scheme effectively would aim to compete with the existing Air Products ITM oxygen scheme for various types of gasification plants.

        SeprOx said it potentially could win another $750,000 grant for a total $1 million from the ETF.

        SeprOx was established in 2008 as a wholly owned subsidiary of Trans Ionics Corporation (TIC) to “scale up and commercialize groundbreaking technology capable of separating virtually pure oxygen from air using a proprietary membrane material under exclusive license from the University of Houston,” SeprOx said.

“Applications of the technology range from small medical oxygen generators to large industrial oxygen systems for clean coal combustion and gasification. The company expects to complete fabrication of a working prototype of its five-liter-per-minute portable medical oxygen generator.”

The company points out that existing ITMs selectively separate pure oxygen from air at temperatures between 900°C and 1,000°C.

“In these membrane systems, oxygen from the air is reduced to oxygen anions which diffuse across the non-porous film under the influence of a pressure gradient and are oxidized to reform pure oxygen and electrons on the downstream side,” SeprOx said.

“Electrons formed in this oxidation step diffuse in the reverse direction through the film thus eliminating the need for wires. These mixed ionic electronic conducting (MIEC) membranes have been shown to have high oxygen production rates and produce >99.95% pure oxygen; and the use of ITMs is expected to reduce the cost of oxygen production by 30-50% versus cryogenic distillation

        “One of the debits of existing ITM systems, however, is their high operating temperatures, which result in higher manufacturing costs (because of more exotic materials of construction, etc). Like solid oxide fuel cells, the goal for these oxygen separation systems for some time has been the development of a membrane that operates effectively in the 400-700 °C range. Until now, however, such materials have not been available.

        “A recent discovery by researchers at the University of Houston’s Texas Center for Superconductivity (TcSUH) has resulted in a paradigm shift in MIEC materials and ushered in the age of low temperature oxygen separation. Research has shown that certain layered mixed metal oxides called ‘A-site-ordered double perovskites’ have unusually high oxygen mobility because the oxygen atoms in the lattice are arranged in planes.

“More importantly, this high oxygen mobility occurs at temperatures between 400 and 700°C or up to 600°C lower than in similar membranes currently under development by other companies. Operation at these ‘moderate’ temperatures allows for the first-time the use of standard materials of construction like stainless steel and nickel for the housings and other non-membrane construction thus further reducing the cost of manufacturing.” – Jack Peckham

 

 

 

FT-Like 50% ‘Bio-SPK’ Kero-Jet Wins Boeing, Pratt & Whitney, GE, Airline Endorsements

        Hydrotreating vegetable oils into “bio-derived synthetic paraffinic kerosene” (Bio-SPK) yields a fuel that is chemically near-identical to Fischer-Tropsch kero-jet fuel.

Except for aromatics, both “Bio-SPK” and FT-jet likewise are near-identical to petroleum-based kero-jet fuel.

Now, 50% “Bio-SPK” blends have just won huge industry endorsements from last week’s annual Paris Air Show.

        There’s historical precedent supporting Bio-SPK: For years, Fischer-Tropsch jet fuel (also very low in aromatics and highly paraffinic) has been blended at 50% ratio into petroleum kero-jet for commercial airlines traveling to and from South Africa.

        The 50% blend limit is to ensure that there’s enough aromatics in the blended jet fuel to maintain seal swell in aircraft fuel systems, as “green jet fuel” technology developer UOP told us.

Another boost to Bio-SPK blend: Its potential to slash CO2 emissions from aircraft by roughly 40%, according to a new study endorsed by major aircraft industries.

The “Bio-SPK” aviation industry study (“Evaluation of Bio-Derived Synthetic Paraffinic Kerosene”), released June 17, just won endorsement from Boeing, refinery technology provider UOP, GE Aviation, CFM International, Pratt & Whitney, Rolls-Royce, Air New Zealand, Continental Airlines, Japan Airlines and Virgin Atlantic.

Bio-SPK is NOT biodiesel, contrary to what some uninformed press reports have suggested.

Rather, it’s an all-hydrocarbon, refinery hydrotreated vegetable oil (HVO), virtually identical (except for ultra-low aromatics) to normal, petroleum-based kero-jet fuel, according to the joint industry report obtained by Hart Energy Publishing.

        Bio-oils from jatropha, algae or camelina are among the potential source feedstocks for Bio-SPK, the report points out. But the resulting jet fuel is nothing like the fatty acid methyl esters (FAME) of conventional biodiesel.

        At the Paris Air Show last week, Bill Glover, Boeing commercial airplane managing director of environmental strategy, said that the industry study showed the Bio-SPK fuel blends used in the test flight program “met or exceeded all technical parameters for commercial jet aviation fuel. Those standards include freezing point, flash point, fuel density and viscosity, among others.

“The tests revealed that using the Bio-SPK fuel blends had no adverse effects on the engines or their components. They also showed that the fuels have greater energy content by mass than typical petroleum-derived jet fuel - which potentially could lower fuel consumption per mile. Renewable jet fuels from bio-derived sources are being considered because of their ability to reduce carbon dioxide (CO2) emissions.”

Glover revealed the key fuel properties of several types of Bio-SPK versus conventional petroleum kero-jet:

 

 

Source: Boeing

 

Glover pointed out that while these bio-based jet fuels can meet commercial jet fuel operating requirements, they still have several problems to overcome.

Algae-based jet biofuel, for example, isn’t expected to be commercially ready until 8-10 years from now, he said. “Technological innovation is needed for processing” algae into bio-jet-fuel, he explained.

        Meantime, jatropha-oil jet-biofuel might be ready for commercial output in two to four years. But production is “limited to warm climates only and mechanical harvesting isn’t mature,” he said.

        As for camelina-based Bio-SPK, this oilseed-based feedstock is “ready now” but challenges include “a limited total potential owing to yield” plus the economic problem of being “somewhat tied to grain market swings,” he said.

        To further the case for Bio-SPK, the aircraft industry partners “are preparing a comprehensive report for submittal to ASTM International fuel approval process” and they’re “anticipating ASTM approval in 2010 in support of industry goal to accelerate availability and use,” he said. This would involve 50-50 blends of Bio-SPK and ordinary kero-jet.

        Meantime, Bio-SPK advocates are “working across the industry on regional biofuel commercialization projects” and “continuing lifecycle analysis to verify sustainability of feedstocks and methods,” he added.

        Jet-engine maker Pratt & Whitney, and Continental Airlines, separately announced last week that they’re also endorsing the Bio-SPK study results.

        Flight tests with Boeing and Japan Airlines “generated valuable data to support certification of Bio-SPK at a 50 percent blend ratio," said Alan Epstein, Pratt & Whitney’s VP-technology & environment.

According to the study, a series of laboratory, ground and flight tests conducted between 2006 and 2009 indicated the test fuels performed as well as or better than typical petroleum-based Jet A. The testing included several commercial airplane engine types using blends of up to 50% petroleum-based Jet A/Jet A-1 fuel and 50% biofuels. -- Jack Peckham

 

 

 

News Briefs

 

Topsoe Wins Research Grant for Di-Ethyl Ether Diesel Substitute

        Haldor Topsoe and Danish Technology Institute announced June 10 that they have jointly won a €1 million research grant from Danish Energy Agency for a project aiming to turn bioethanol into di-ethyl ether (DEE).

The funding is part of the “Energy Development and Demonstration Program” aimed at the development and demonstration of energy technologies.

“Diesel engines cannot run on bioethanol, because the cetane number is too low, meaning that the motor cannot start,” Topsoe noted in a press announcement.

“The project goal is to uncover how bioethanol can be converted into diethyl ether using a catalytic process: The diethyl ether may subsequently be applied as diesel fuel.”

“We expect to draw on our experience from diesel catalysis as well as industrial production of dimethyl ether [DME],” said Pär Gabrielsson, Project Manager in Topsoe’s Research and Development department.

Topsoe said a DEE scheme would be 30-40% more efficient than running an engine on gasoline. DEE also would be a cheaper type of biofuel, Topsoe figures.

However, DEE, like DME, is a volatile fuel requiring an LPG-like vehicle fueling system as well as a completely new refueling infrastructure, since it’s not compatible with diesel fuel.

 

Mitsubishi to Build $1.5 Billion Coal-to-Chemicals Plant in Indonesia

According to an Asia Pulse report quoting local newspaper Investor Daily, Mitsubishi aims to build a coal gasification chemical plant in East Kalimantan.

The U.S. $1.5 billion plant would produce some 500,000 tons/year of chemical products from coal gasification, the report said.

Quoting chemicals association (FIKI) chairman Hidayat Nyakman, the report said Mitsubishi “has already completed feasibility study and is now seeking land around 37 hectares needed to build the factory.” East Kalimantan was selected “probably as it is one of the largest coal producing areas in the country,” the report said.

 

Marion County, Fla. Sets July 22 Deadline for Gasification WTE Proposals

Marion County and the city of Ocala, Fla., want potential bidders on a gasification-based waste-to-energy (WTE) scheme to get their proposals in before July 22.

According to a report from the Ocala (Fla.) Star-Banner, the county is trying to come up with alternatives to trash landfilling.

City Council Pro-Tem Kent Guinn was quoted as saying that he’s interested in “how the city and county could work together to address solid waste issues, or even regionally with, perhaps, Alachua, Levy and Citrus counties. The city's contract for trash hauling is up in three years and the county's landfill reportedly has capacity for six years,” the report noted.

The county's “request for proposals for waste energy and gasification technology is due July 22,” the report said. “City Manager Ricky Horst said the city has been working with Florida Municipal Power Agency and Progress Energy to see if they would be interested in buying any power that might be generated from the waste energy process.”

 

Westralian Drilling Program Aims to Support Coal-Gasification Projects

Australia’s Westralian Gas and Power announced June 11 that it has inked a drilling contract with Wallis Drilling to explore what it called the “coal-rich Boyup Basin,” in a run-up to a possible coal-gasification project.

The drilling program “is operated by the Oswest Energy Pty Ltd Joint Venture which is 75% owned by Oswal Resources Pty Ltd and 25% owned by Westralian Gas and Power Limited,” Westralian said.

“The joint venture intends to develop shallow coal for export to India or to feed a large scale ammonia/urea/fertilizer plant, utilizing coal gasification technology as an energy source.”

 

Europlasma Appoints 1st-Ever Board of Advisors

        France-based gasification waste-to-energy (WTE) project developer Europlasma announced June 14 that it has appointed its first-ever Board of Advisors to guide company strategy.

        “The first three members appointed to serve on the Advisory Board – Pierre Catlin, François Marchal and Bernard Virton – have experienced profiles that fit together effectively in a number of relevant areas for Europlasma: waste processing, setting up and development of commercial and industrial real estate projects, financial markets and specific issues related to listed companies,” Europlasma said.

Catlin brings some 25 years experience in executive management positions within the Suez Group’s European subsidiaries, while Marchal spent more than 10 years as chief commercial officer and head of sales for French equities at Société Générale. Virton meantime has decades of experience in commercial real estate and large-scale projects, Europlasma said

 

U-Wyoming OK’s ‘High Plains Gasification Advanced Technology Center

The University of Wyoming (UW) Board of Trustees on June 15 approved the final step in a site selection process for the High Plains Gasification-Advanced Technology Center (HPG-ATC) to be built in the Cheyenne Business Parkway in east Cheyenne.

The real estate transfer agreement details a property transfer from Cheyenne LEADS, the economic development corporation for Cheyenne, and Laramie County, to the University of Wyoming.

“The HPG-ATC will consist of a small-scale gasification system that would allow UW and GE Energy researchers to develop and validate advanced coal gasification technology solutions for Powder River Basin and other Wyoming coals,” UW said.

“The plant is expected to allow engineers to gain experience in advanced coal gasification processes, which offer a method to generate electricity from coal with fewer emissions and the ability to capture carbon for future sequestration. It also will provide students an opportunity to learn about coal gasification.”

Construction on the $100 million project is expected to take about 2-1/2 years, UW said.

 

Chemrec Boasts of Naming to ‘European Tech Tour’

Sweden’s Chemrec, developer of a pulp-mill black-liquor gasification scheme focused on dimethyl ether (DME) production, announced last week it was named among Europe’s most innovative and promising technology companies at for the “European Tech Tour Cleantech Summit.”

“The European Tech Tour organizes conferences to bring together growth companies like Chemrec and key European, U.S. and Asian investors and professionals who can assist in their global expansion,” Chemrec said.

“From a pool of more than 300 applicants, Chemrec was one of just 24 firms invited to present its technology to a delegation of clean-tech investors and professionals from across Europe at the June 17-18 event in Geneva, Switzerland. Chemrec was chosen due to the maturity of its technology, attractive niche focus, flexible bioproducts output and its seasoned management team.”

 

Technip Wins LNG EPC Contract for China

        Technip announced June 22 that it won a lump-sum contract from Ningxia Hanas Natural Gas Company for an 800,000 tons/year liquefied natural gas (LNG) plant to be built in Yinchuan, China, for start-up in second-half 2011.

        The contract covers the engineering, supply of main equipment, procurement and construction management services for facilities for natural gas pre-treatment, liquefaction, LNG storage and loading, utilities, offsites, buildings and other infrastructure.

        “This LNG plant will be the largest facility of its kind in China,” Technip said. “It will have two trains with a capacity of 400,000 tons per year each, based on an Air Products liquefaction process. The LNG will be distributed to the Chinese market to help meet the growing demand for clean energy.”