August 06, 2008
Vol. XI, No. 16

Subscribe at http://www.worldfuels.com

 

 

TABLE OF CONTENTS

Gasification News is on Summer Holidays

Sasol: More Oryx GTL Fixes Due in 2nd-Half 2008; Plant Making Progress

 

Guest Column: CTL Diesel’s Btu/Mile Advantage Versus Crude-Diesel, Corn-Ethanol, Coal-Electric Vehicle Fuel Casts Doubt on CO2 Worries

GE Pushing IGCC/CCS Plant in Australia

Genesis Energy Takes 50% Stake in Gasification Specialist CRL Energy

Maryland Launches Coal Gasification ‘Energy Park’ Study

GTL Not Best Option for Stranded Russian Gas: World Bank Study

Franklin Mining Signs Argentina GTL Letter-of-Intent

CTL Plant Challenges: Better Efficiency, Lower Cost, CCS

Coal-to-Methanol Plant Set for West Virginia

Linc Predicts $28/Barrel Diesel from World’s First UCG-CTL Plant

Alter NRG CTL Project Could Combine Traditional, Alternative Gasification Technologies

Nymex Launches CO2 Futures Contract

UK Government Pre-Qualifies Four Companies for CCS Demo Competition

Technip, IFP Unit Team Up on CCS

U.S. Dept. of Energy Will Fund 15 CO2 Capture Projects

EU Touts ‘CO2 Sink’ Project

Praxair Eyes Oxy-Coal Test at German Power Plant; Would Enable CCS

Nexterra Wins Funds for 2 Biomass Gasification Demo Projects

News Briefs

 

Market Snapshot

 


Gasification News is on Summer Holidays

 

        Dear Reader: Gasification News is taking its regular summer holidays, so the issue that otherwise would have been published on August 20 will be skipped.

        Our next issue will be dated September 3.

        Happy Holidays! -- Jack Peckham

 

 

 

Sasol: More Oryx GTL Fixes Due in 2nd-Half 2008; Plant Making Progress

 

 

        Sasol’s latest investor report, released July 29, reveals that technical troubles at its pioneering Oryx gas-to-liquids (GTL) plant in Qatar are being overcome.

        The plant has suffered from catalyst fines slip, caused by turbulence at the top of the Fischer-Tropsch reactor. Catalyst/wax separation is crucial to avoid contamination of final product, so further filtration equipment is being installed.

        Here’s what Sasol says about Oryx in its latest report:

        “The first scheduled shutdown of the Oryx GTL plant at Ras Laffan, Qatar was undertaken during the first quarter of 2008. The shutdown was completed successfully within the scheduled timeframe with no recordable injuries.

        “Oryx GTL took advantage of the shutdown to conduct scheduled integrity maintenance and inspection work on the plant. Predefined modifications to the two Fisher-Tropsch reactors were also implemented during the first quarter of 2008.

        “After implementing the modifications the reactors have been operating at high loads and all indications are that the modifications have been successful.

        “The performance and production ramp-up of Oryx GTL is meeting our expectation. For most of June 2008, the plant operated above 85% of capacity with an average production for June of more than 22,000 barrels a day (b/d) of final product. The average production for the six months to June was about 30% higher than the previous six months.

        “The superior-quality GTL products produced at the Oryx GTL plant are well accepted by the market, with GTL diesel demanding premiums over crude derived diesel products. The GTL diesel is sold as a high-value blend component in European and Middle Eastern markets. To date, the GTL naphtha has been sold primarily as cracker feedstock to Asian ethylene producers.

        “The implementation of additional downstream filtration and related equipment is proceeding to plan and will be installed in the second half of 2008. As plant operating efficiencies increase, higher and more sustainable production levels are being achieved.”

        Meantime, the proposed Nigeria “Escravos” GTL plant remains under “review,” Sasol says, “following its expected capital cost increasing to US$6 billion and completion date delayed to 2011.”

        As for its proposed China coal-to-liquids (CTL) projects, Sasol said that it approved spending U.S. $140 million for its share of the “second phase of the feasibility studies to determine the techno-economic viability of developing an 80,000 b/d CTL plant each in the Shaanxi Province and the Ningxia Hui Autonomous region.

        “The appointment of engineering contractors should follow and we expect to complete the feasibility study within about 18 months,” Sasol said.

        As for its existing CTL production in South Africa, Sasol said that fiscal 2008 production volumes “are expected to be slightly higher than FY 2007. However, the increase was offset by the impact of flaring during the start-up of the new Project Turbo selective catalytic cracker (SCC) and lower reformer and gasifier availability.        

        “Sasol’s R14.5 billion [U.S.$1.96 billion] Turbo fuels-optimization and polymer-expansion project is largely completed with the two polymer plants running and the selective catalytic cracker (SCC) contributing to the viability of Sasol’s Secunda fuel pool, but not yet operating at full loads.

        “The SCC has operated satisfactorily for five months – and with no reportable safety incidents – to produce and dispatch products to Sasol Polymers and the Secunda fuel pool for producing high-octane petrol.

        “The SCC, the heart of Sasol Synfuels’ Turbo investment, was designed to convert almost one-million cubic meters a year of gasoline precursors into higher-octane gasoline, as well as the ethylene and propylene monomers required for the downstream production of polyethylene, polyvinyl chloride and polypropylene. The SCC commenced beneficial operation in January 2008 and has met most initial operational requirements.”

        On the retail fuel sales front in South Africa, gasoline sales growth is weakening because of higher prices, Sasol said.

        “Diesel sales, however, have been growing more vigorously because of the cumulative effect of ongoing growth in the transport and retail sectors and the increasing demand for backup electricity-generating capacity,” Sasol said.

        Similarly, “sales of jet fuel continue to grow steadily in line with the increasing air traffic volumes between Johannesburg and major cities around the world.”

        Complete fiscal 2008 results will be announced September 8, Sasol added.

-- Jack Peckham

 

 

 

 

Guest Column: CTL Diesel’s Btu/Mile Advantage Versus Crude-Diesel, Corn-Ethanol, Coal-Electric Vehicle Fuel Casts Doubt on CO2 Worries

 

        Contrary to widely held beliefs that coal-to-liquids (CTL) diesel must be much worse on net CO2 than crude-based diesel, corn-ethanol or coal-to-electric power for vehicle fuel, CTL’s vast advantage over its competitors in net Btu/mile could turn that argument on its head, a new study shows.

        Below is the complete text of a new study by Randall Harris, a former senior engineer for U.S. Dept. of Energy’s National Energy Technology Laboratory (NETL). Harris is now a technical consultant on energy projects in .

        According to Harris’s calculations, CTL easily beats the competitors in net Btu/mile, even when a CTL plant is operated without CO2 capture & storage (CCS).

        Before we get to Harris’s study itself (below), here’s his explanation to this question we posed:

        Gasification News: When you show net CO2 on CTL, are you assuming (or not assuming) CO2 capture & storage (CCS) at the CTL refinery?  Without CCS, a CTL plant is going to give off an awful lot of CO2 at the plant, because coal is so carbon-rich, compared to crude oil or corn for ethanol.  This has to be accounted-for.  How do you account for it?

        Harris: “In looking at CO2 emissions from a crude oil refinery, not all the carbon associated with the crude can be assigned to one product. It is prorated based upon the carbon content of the various products. Those refinery products that go to (for example) plastics never emit their carbon in the form of CO2.  So they are counted as carbon in the crude that ended up in the atmosphere.

         “In most of the CTL plants the same is happening. The diesel or gasoline produced, and which will be combusted, will indeed eventually emit most of their carbon content as CO2 (at a rate based upon the combustion efficiency of the engine). That portion of the carbon in the coal that goes to (for example) naphtha that is destined for the plastics industry will likewise never be emitted as carbon dioxide. 

         “There are two standards being applied to this debate. This doesn’t serve the policy makers well.

         “Some number of carbon atoms will be locked in finished products that won’t be combusted, while some will be. Only those that will be combusted should be of concern to the debate.

         “Additionally the co-feeding of a biomass with coal, as many CTL projects are contemplating, further complicates the issue as biomass comes with negative carbon credit. 

        “For instance, if you co-feed wood waste as with coal, then the carbon from the approximately 1/6 of the tree that’s used in the gasifier carries with it the credit for the carbon in the 5/6 of the tree that is either still in the ground with the roots or is now furniture etc. (This is the USDA's carbon accounting system used in biomass projections.).

        “The net effect is that wood credit effectively offsets some of the carbon from the coal reducing the effective carbon foot print of the project. If a CTL plant co-feeds enough biomass, then it can offset the carbon footprint enough that the CTL fuel is equal or lower in net carbon emissions to that an oil refinery for the same product.

         “Let’s sat you if you were to start with 1 ton of coal that is 75% carbon, you now have 1,500 pounds of carbon. That is typically converted to liquids in a CTL plant at rate of 2/3 diesel and 1/3 naphtha. 

        “The naphtha goes to the chemical industry for use in plastics. This leaves 1,005 pounds of carbon.

        “The carbon content of diesel is approximately 6 pounds per gallon although CTL diesel has slightly less carbon content than crude diesel (but let’s assume here it’ not worth the argument.

        “In the typical CTL plant, you get about 56 gallons of diesel per ton of coal (2 bbl * 2/3) which means that 336 pounds of the carbon leaves the plant in the fuel. That means 669 pounds are converted into energy within the plant and eventually is converted into CO2.

         “The fact most authors neglect to discuss is that to convert a barrel of crude to diesel or gasoline requires the use of a lot of electricity and natural gas. Those are not normally discussed because it is hard to get data from refineries. 

        “In this article (below) you will see that a good approximation can be made using the energy balances. In this case, Sunoco refineries were chosen as they are some of the best of the refineries when it comes to controlling emissions.

        “The short answer to your question about net-CO2 from CTL is that to convert a ton of coal to diesel you only have the coal input; the plant creates everything it needs from the coal itself. 

        “To convert a barrel of crude, especially the heavy sours we are importing now, requires electricity usually from coal, and hydrogen usually for natural gas. These generate carbon dioxide that must be added to total. You cannot just compare the carbon in a barrel of crude to the carbon in a ton of coal.”

 

 

        Gasification News welcomes science-based commentary from industry, academic and government research experts on this study. Please send the comments to: jpeckham@hartenergy.com and also to randall.j.harris@verizon.net .

        

        

Relative net energy efficiencies of transportation options

 

August 6, 2008

 

By Randall J Harris

Director of Development, Mingo Hybrid Energy LLC

randall.j.harris@verizon.net

 

(Editor’s Note: Harris formerly was Senior Engineer and Advisor to the Director for Program Development for the National Energy Technology Laboratory.  Prior to that, he was a special Assistant to the Assistant Secretary of Energy. He has worked at National Laboratory, Los Alamos National Laboratory, and Dept. of Energy’s Rocky Flats plant in various engineering management roles. He has degrees in physics, nuclear engineering and business administration). 

 

Multiple paths exist for powering our transportation future. This paper examines the relative net efficiency of the thermal conversion processes from raw material to ultimate locomotion of comparably sized passenger sedans as a function of net energy input per mile driven.

 

One option examined is from the conversion of the chemical energy to electricity to charge an all-electric vehicle and another is from the same source into synthetic diesel fuel. Yet another is the conversion of the chemical energy in corn into ethanol.

 

The vehicles chosen were passenger sedans of similar size, features and price. They included the 2009 Javlon XS500, an all electric powered sedan, the 2009 VW Jetta TDi, a diesel powered sedan, and the 2009 Chevrolet Impala LZE, an E85 powered sedan.

Results are:

The coal to diesel option resulted in 935 net Btu/mile;

The coal to electric option resulted in 1,063 net Btu/mile;

The corn to ethanol option resulted in 2,799 net Btu/mile;

The crude to diesel option resulted in 3,168 net Btu/mile.

 

While not analyzed in this paper it is believed that a liquid-fuel/electric hybrid would result in the lowering of the effective values for both the ethanol E85 and crude diesel options.

 

Energy efficiency of coal to electric transportation

 

In many previous evaluations electricity is mistakenly assigned the value of 3,412 British-thermal-units per kilowatt-hour (Btu per kWh). However, this ratio does not adequately represent the true energy that goes into a kilowatt of electricity at the point of service (household plug). Rather this relationship is one that relates the work capable of being done by the electricity expressed as Joules then converting them into Btu’s assuming one-hundred percent conversion efficiency. The correct relationship when converting the chemical energy of coal into electricity is referred to as the “heat rate.” This value relates the thermal energy of the fuel used at the power plant in Btu’s to the plant’s electrical output in kWh. In this case coal was used because it represents over 50% of electric production in the

 

Accepted average heat rates by fuel type and technology in Btu per kWh are:

 

Means of Electric Generation

Coal

Petroleum

Natural Gas

Nuclear

Steam Turbine

10,164

10,424

10,490

10,434

Gas Turbine

--

13,155

11,664

--

Internal Combustion

--

10,179

9,947

--

The average coal fired power plant has a thermal conversion efficiency of 33% and uses 10,164 Btu per kWh with the best-in-class plants using 9,854 Btu per kWh according to a 2001 report commissioned by EPA.

 

To understand the real Btu/kWh it is necessary to review each step of the process. Electric transmission line loses are reported to be 7.2% taking this further loss into account puts the energy input required at 10,964 Btu per kWh.

 

When electricity is used to charge batteries for an electric car an additional loss occurs in the charging process. Since electric cars are designed to operate at a battery charge level no less than 30% battery charge and not exceed an 80% charge level. Based upon manufacturer reports it takes 8-10 hours to reach the full charge state. National laboratory studies have shown that charging from the partially discharged state to the fully charged state results in the additional loss of 45% of the electricity from the wall to the battery. That brings our kilowatt hour in the battery to 19,935 Btu per kWh with an 8 hour charge requiring 159,482 Btu.

 

News reports indicate that all-electric sedans will range in price from $30,000 to $50,000, and most will only be able to go about 100 to 150 miles before needing a charge with one model, the Javlon, from Southern California’s Miles Automotive, claiming 150 miles before it needs a charge. This would put the Javlon at a net 1,063 Btu/mile.

 

Energy efficiency of coal to diesel transportation

 

Using indirect gasification and the Fischer-Tropsch synthesis process one ton of bituminous coal can be converted to 63 gallons of synthetic diesel.

 

Even if we discount the by-products of chemicals and electricity that would be produced, one ton of coal containing 22,000,000 Btu's (2000 lb x 11,000 Btu per lb) would yield 63 gallons of Ultra Low Sulfur Diesel containing 8,757,000 Btu's (63 gallons x 139,000 Btu per gallon. That is an efficiency of 40% for coal to diesel plants compared to 33% for coal electric plants.

 

However, from this ton of coal these facilities also produce 21 gallons of naphtha with 124,950 Btu per gal which can used to make jet fuel or plastics for 2,623,950 Btu’s and at least 300 kWh of electricity at the same time which above we saw was equal to 10,618 Btu per kWh for an additional 3,185,400 Btu’s.

 

When taking those into account the 63 gallons of diesel the effective net energy is 2,947,650 Btu's for 63 gallons or 46,788 Btu per gal,

 

The 2009 VW Jetta TDi sedan listing at $25,000 is slightly larger than the Javlon and reportedly gets 50 miles per gallon. This would result in the Jetta TDi with a net 935 Btu per mile using coal derived diesel.

 

Energy efficiency of crude to diesel

 

Understanding the energy efficiency of converting crude oil into its various products is difficult. Not only does the range of products vary from refinery to refinery, but the type of crude processed varies. Reporting inconsistencies between companies make using the aggregate data maintained by the U.S. Energy Information Agency (EIA) difficult to use in the analysis of complete energy associated with specific transportation fuel. Fortunately several companies produce sufficient information across their refineries to provide an insight. One of these is Sunoco.

 

Sunoco has taken energy conservation seriously and produces energy consumption and trends across their many refineries and chemical plants. These reports are the basis for this analysis.

 

According to the 2005 Sunoco Annual Report and its 2005 SEC 10k filing, Sunoco refineries consumed 141,996,030,000,000 Btu of energy that year to process 882,000 bbl/day or 321,930,000 bbl for the year.  That would give them an overall energy use per processed barrel of crude of 441,077 Btu.

The report indicates that 32.745% of its refinery products were in the form of middle distillates representing 46,496,600,020,000 Btu/yr for middle distillates on a simple weighted average.

The Sunoco refineries reported producing 319,500 bbl/day middle distillates which works out to 116,617,500 bbl/yr. By using the prorated energy consumption above that yields 398,710 Btu/bbl middle distillates or 9,493 Btu/gal.

Sunoco used predominately light-sweet crude, however, because of tightening supplies began using some high-acid sweet crude in 2005 accounting for some 20,440,000 bbl of its inputs or about 6%.

Assuming that middle distillate fuels are mostly diesel that would mean an efficiency of 93.17% if you looked at it as energy consumed over energy produced.

While this is often the approach taken when discussing refinery efficiency it neglects several critical components of the refinery process. In this analysis we will start with the chemical energy in the crude and see how that changes through the refinery process.

 

We therefore start with the 5,800,000 Btu/bbl commonly used value for crude oil and say that 32.745% of it was converted to middle distillates which would mean 1,899,210 Btu/bbl or 45,219 Btu/gal was converted to the standard 139,000 Btu/gal diesel fuel. That must mean that the energy content of the diesel had to have been enhanced by 93,781 Btu. In a refinery this is done with the addition of hydrogen which has an energy content of 51,500 Btu/lb, therefore, 1.82 lbs of hydrogen was chemically added to the liquid as it passed through chemical reactors in the refinery.  Since that value far exceeds the energy use reported on the Sunoco reports we must assume that the Sunoco reporting excluded it as an energy input and must consider, as most refineries do, hydrogen as a chemical input.  


Whether bought from a pipeline or made on site, the extra hydrogen most likely came from natural gas and since a catalytic autothermal reformer (ATR) used to convert natural gas to hydrogen achieves an average 90% conversion efficiencies, to add 93,781 Btu of hydrogen with natural gas at 1,027 Btu/scf and a 90% efficiency one would need at least 101 scf of natural gas not including the energy input of the ATR which is about 16 kWth. However, we will assume that all this energy came from recovered refinery heat. The result is an additional 103,727 Btu/gal to the net energy balance.

In summary, we have 45,219 Btu/gal from the crude plus 103,727 Btu/gal from the natural gas plus 9,493 Btu/gal from the refinery energy share for a total of 158,439 Btu/gal input.  That yields a diesel product with 139,000 Btu/gal. Dividing that by the 158,439 Btu/gal net input we find an 87.7% thermal efficiency.

Again using the 2009 VW Jetta TDi sedan and its reported 50 miles per gallon fuel efficiency, this would yield the Jetta TDi at a net 3,168 Btu per mile on crude derived diesel.

 

Energy efficiency of corn ethanol transportation

 

The analysis of energy efficiency of corn conversion to ethanol is more complex as corn has alternative uses, mainly cattle feed, and the byproducts of the conversion, Distillers Dried Grains with Solids (DDGS), are also cattle feed. Thus care must be exercised when assigning energy used in production of ethanol to the main and co-products of the process. In the literature, there are multiple attempts to estimate the energy efficiency of ethanol production and the results vary widely depending on the assumptions made.

 

On analysis by Lorenz and Morris (1995) showed that the process energy used to convert corn into ethanol was on average essentially equivalent to the energy content of the ethanol itself. Table 1 shows the average, best practice, and state of the art values for ethanol production as of 1995. The efficiency of the process will have undoubtedly been increased since then.

 

Energy Used to Make Ethanol From Corn and Cellulose (BTU’s per Gallon of Ethanol)

 

Corn Ethanol (Industry Avg)

Corn Ethanol (Industry Best)

Corn Ethanol (State-of-the-Art)

Cellulosic Crop-Based Ethanol

Fertilizer

12,981

7,542

3,869

3,549

Pesticide

1,060

643

406

437

Fuel

2,651

1,565

1,321

8,120

Irrigation

7,046

6,624

6,046

--

Other (Feedstock)

3,395

3,248

3,122

2,558

Total (feedstock)

27,134

19,622

14,765

14,663

Process Steam

36,732

28,201

26,185

49,075

Electricity

14,444

7,300

5,148

8,925

Bulk Transport

1,330

1,100

800

1,330

Other (process)

1,450

1,282

1,050

2,100

Total (processing)

53,956

37,883

33,183

61,430

TOTAL ENERGY INPUT

81,090

57,504

47,948

76,093

Energy in Ethanol

84,100

84,100

84,100

84,100

Co-product Credits

27,579

36,261

36,261

115,400

TOTAL ENERGY OUTPUT

111,679

120,361

120,361

199,500

Net Energy Gain

30,589

62,857

72,413

123,407

Percent Gain

38%

109%

151%

162%

 

The above analysis makes several assumptions that need to be addressed. First, corn is essentially 60% starch and 40% protein and fat. Therefore the feedstock energy needs to be partitioned between the starch and the other corn components. This can be done on a weight basis although other assignment methods may also be applicable. Second, although the protein and fat have energy content on a calorific basis, they are ultimately cattle feed and therefore are not converted into heat energy for a useful purpose other than for feed. In fact, energy is expended on drying the DDGS to prepare it for feed purposes in most instances.

 

A more appropriate energy analysis for the production of ethanol using the Lorenz/Morris data is shown in the table below. In this analysis, energy for feedstock production is split between the starch content of the corn and the protein/fat content. Per Maier, Reisling, and Briggs (1997), corn is between 55 and 65% starch. A value of 60% is used in this analysis. Energy for ethanol production from starch is assigned to ethanol itself as the DDGS is cattle feed and there is no net energy involved in the direct use of corn as cattle feed which is the low energy pathway to providing corn to cattle. This analysis follows guidelines for LCA analysis of co-product emissions assignment.

 

 Analysis Element

Corn Ethanol (Industry Average)

Corn Ethanol (Industry Best)

Corn Ethanol (Theoretical Best)

Fertilizer

12,981

7,542

3,869

Pesticide

1,060

643

406

Fuel

2,651

1,565

1,321

Irrigation

7,046

6,624

6,046

Other (Feedstock)

3,395

3,248

3,122

Total (feedstock)

27,133

19,622

14,764

Allocated to Starch@60%

16,280

11,773

8,858

Process Steam

36,732

28,201

26,185

Electricity

14,444

7,300

5,148

Bulk Transport

1,330

1,100

800

Other (process)

1,450

1,282

1,050

Total (processing)

53,956

37,883

33,183

TOTAL ENERGY INPUT

70,236

49,656

42,041

Energy in Ethanol

84,100

84,100

84,100

Co-product Credits

0

0

0

TOTAL ENERGY OUTPUT

84,100

84,100

84,100

Net Energy Gain

13,864

34,444

42,059

Percent Gain

20%

69%

100%

 

In this analysis, the energy content of the feed stock is not considered. Corn has an energy content of 8000 to 8500 btu/lb of dry matter by bomb calorimetry. On a wet basis, with 15.5% moisture content which is typical of corn and the median value of 8250 btu/lb, moist corn contains 6970 btu/lb. As with any energy analysis, the energy of the raw material and the energy used to produce the raw material must be considered in the energy balance. The details of this analysis are as follows:

 

Using an average yield of 2.5 gallons ethanol per bushel of corn, 22.4 lbs of corn per gallon of ethanol produced or 27,725 Btu of corn energy per pound of ethanol and including 31,068 Btu of energy that are used to convert corn starch into ethanol and distill to 100% EtOH. Together that is 58,793 Btu/gal of corn derived ethanol.

 

Total inputs are energy content of corn plus energy of corn production, plus energy for conversion of corn to ethanol including distillation to fuel grade ethanol. Output is one pound of fuel grade ethanol. Dividing the output energy by the input energy gives the efficiency of the process which is about 22%.

 

Several companies produce E85 sedans of similar size and performance as those used in the above reference cases. General Motors (GM) has made a major effort to offer E85 vehicles in all classes with the 2009 Chevy Impala LZE being closest to the two previously chosen sedans achieving an EPA rated 21 mpg on the highway. Since these vehicles use 15% regular unleaded gasoline we have to adjust for its energy contribution. Regular unleaded gasoline contains 114,100 Btu/gal.

 

If we take weighted averages of the two fuels on volume basis you get 85% of 58,793Btu/gal plus 15% of 114,100 Btu/gal or 67,089 Btu/gal. Using the EPA 21 mpg value published for the 2009 Chevy Impala LZE E85 yields an energy efficiency of 2,799 Btu/mi.

 

Values for the corn ethanol analysis calculation are available from internet sites footnoted or are common units:

 

Quantity

Description

56

lbs shelled corn per bushel

47.32

Equivalent dry weight of corn

2.5

gallons per bushel ethanol yield

22.4

Lbs shelled corn per gal ethanol

13.44

Lbs starch per gal of ethanol at 60% starch content

6970

btu/lb corn 15.5% moisture basis

27134

BTU Energy Input to produce corn for 1 gal of ethanol

4105

BTU Energy Input to produce corn for 1 lb of ethanol

156128

BTU content of corn used to produce ethanol per gallon

23620

BTU Content of corn used to produce ethanol per lb of ethanol

27725

Raw Material and energy for production of one lb of ethanol

84100

HHV BTU content of Ethanol

6.61

lbs/gal ethanol

12723

BTU/lb ethanol HHV

8459

BTU/lb content of DDGs

5.82

lbs of DDGs produced per gallon of ethanol

0.88

Lbs of DDGSs produced per lb of ethanol

49231.38

BTU of DDGS per gallon of ethanol

7448

BTU of DDGs per pound of ethanol produced

81,089

Average BTU expended to produce one gallon ethanol +DDGS

31,068

Average BTU expended to produce one pound of Ethanol (corn + energy)

58,793

Input BTU for one lb of ethanol and DDGS production

0.216406004

Energy Efficiency

 

 

 

 

 

 

 

MARKET SNAPSHOT

 

 

 

 

 

 

 

 

 

INTEGRATED GASIFICATION COMBINED CYCLE NEWS


GE Pushing IGCC/CCS Plant in Australia

        General Electric (GE) reportedly is promoting a $3 billion, 800-MW integrated gasification combined cycle (IGCC) power plant with CO2 capture & storage (CCS) in Australia.

        According to a report from Australian Business quoting GE’s global clean coal power business head Keith White, GE is hoping to win fiscal support from the Australian government on the CCS portion of the project.

        The plant would be built in New South Wales or Queensland, the report said.

        “But any plant agreement would probably rely on government help with the cost of storing the greenhouse gases, depending on the final outcome of the federal government's planned emissions trading scheme,” the report said.

        "The likelihood of carbon prices on day one of a national emissions trading scheme being enough to support a plant is small," the report quoted White as saying.

        CO2 storage credits of $40-$50 a ton “would make the GE plants viable,” the report said.

        However, the government’s recent “green paper” on carbon trading – due to start in 2010 – estimates that initial carbon prices would be about half that, or $20 a ton, the report said.

        If GE’s proposed IGCC plant gets an OK this year, then start-up could be in 2014. However, clear rules on CCS in Australia would be required, GE said.

        Debate in Australia continues on where to put the CO2. Offshore oil & gas project developers don’t want CO2 close to their fields for fear of “souring” the field with CO2, while on-shore farmers worry that CO2 might eventually percolate upward, possibly damaging agricultural production, the report said.

        GE didn’t immediately respond to a Gasification News request for comment on the report. -- Jack Peckham

 

 

 

 

Genesis Energy Takes 50% Stake in Gasification Specialist CRL Energy

        CRL Energy, which describes itself as “New Zealand’s leading research company of low-emission coal technologies,” on July 21 announced the purchase of a 50% stake in its company by big New Zealand electric utility, Genesis Energy.  

        “All parties see the transaction as a significant boost for research and development of low-emission coal technologies in New Zealand,” CRL said.

        “These technologies, which include high efficiency coal gasification, carbon capture and storage, and hydrogen manufacture, will provide New Zealand with the option to make sustainable, low-emission power and vehicle fuel from the country’s vast coal reserves.”

        CRL Energy Chairman Alan Broome added that Genesis Energy’s investment was a “vote of confidence in the organization led by Chief Executive Rob Whitney, and reflected the world-class caliber of its researchers and research program.

        “The involvement of Genesis Energy means we can advance our coal research programs along the pathway to eventual commercial application.”

        Genesis Energy purchased the 50% shareholding in CRL Energy from the National Institute of Water & Atmospheric Research (NIWA).

         “As the largest thermal generator of electricity in the country, we need to be able to address the effects our operations have on the environment,” Genesis Energy Chief Executive Murray Jackson commented. “That’s why we are investing in CRL Energy – to promote the development of new thermal power technologies with fewer emissions and greater efficiency.

        “We are looking at opportunities to work with CRL Energy to scale up this technology so it can be used with carbon capture and storage in future low-emission power generation from thermal sources.”

        Asked whether Genesis is interested in integrated gasification combined cycle (IGCC) technology, Genesis spokesman Richard Gordon told Gasification News: “Not really, is the short answer.

        “We own and operate a 1,000-MW coal-fired power station in New Zealand as well as a 400-MW CCGT and 500-MW of assorted renewable assets.

        “Our long term intention is to reduce our reliance on coal through the development of more high efficiency gas generation and more renewable electricity generation.

        “We have been quite interested in carbon capture and sequestration (CCS) and CRL is doing some work in this field. However, the prognosis for retrofitting CCS is looking less and less commercially attractive.

        “We have no intentions at this stage to explore or develop IGCC. The New Zealand Government has recently released an Energy Strategy which calls for a 90% renewable electricity supply system by 2025. (Currently it is around 65%, depending on rain inflows).

        “As a State-Owned Enterprise, we need to be aligned to Government policy and while we may have some concerns about the ambitious target and timeline for 90% renewable, we agree with its sentiment.” -- Jack Peckham

 

 

 

 

Maryland Launches Coal Gasification ‘Energy Park’ Study

        Maryland Coal Association (MCA) met with government officials and power utilities in late July to jump-start a process that could eventually lead to construction of a coal gasification “energy park” in the eastern U.S. state.

        Such a park potentially could include integrated gasification combined cycle (IGCC) or some other clean-coal technology, as well as coal-to-liquids (CTL) fuels production.

        As MCA executive director Adrienne Ottaviani explained to Gasification News, studies on the proposed “Casselman Basin Clean Coal Project” are still in “very early stages,” with technical and financial subcommittees yet to be organized.

        Once organized, those subcommittees would study the possibility of clean-coal power and CTL fuels options. Then, these subcommittees would present formal reports at a future meeting with government officials and interested utilities.

        “We’re hoping that if all the planets align, there could be an energy park” in Maryland, Ottaviani said. Such a “park” could include electric generation, CTL and CO2 capture & storage (CCS), she said.

        The proposed plant would tap area mines for coal supplies, and potentially inject the resulting CO2 into shale deposits for enhanced methane recovery, an initial plan outline suggests.

        Maryland Department of Business and Economic Development said it’s interested in helping the project along, if follow-up studies show it’s feasible.

        Some 40 state, county and energy industry officials gathered at a meeting organized by MCA to discuss the project, an AP report explained. Any CTL plant and CCS scheme would require government funding support, officials said.

        Big electric utility Pepco was quoted in the report as expressing skepticism about the power plant’s proposed location, given lack of transmission capacity from that area to the biggest nearby markets in metro Baltimore and Washington, D.C.

        However, both Pepco and Allegheny Energy are working to build new transmission lines in the region, the report added. – Jack Peckham

 

 

 

 

 

LIQUEFIED NATURAL GAS NEWS


 

GAS TO LIQUIDS NEWS


GTL Not Best Option for Stranded Russian Gas: World Bank Study

        Russia’s associated-gas producers seeking the highest possible return on investment would only choose a gas-to-liquids (GTL) option if current price and pipeline access controls remain, according to a new report for the World Bank by PFC Energy.

        Rather than pushing GTL, the study (see: link to source document) instead recommends that Russia liberalize its current laws that largely restrict the access of stranded associated gas, which must pass through the Gazprom monopoly pipeline system.

        “Comprehensive measures, including both effective flaring regulation and more transparent access for independent gas producers to Russia’s gas transportation system, will be required to unlock the value of Russia’s gas associated with oil production,” the World Bank said.

        “The new study estimates that Russian oil producers annually flare some 38 billion cubic meters (bcm) or 1.3 trillion cubic feet (tcf), or some 45% of the country’s associated gas production. In addition, it is estimated that some 10 bcm is flared from gas condensate production.”

        The study estimates that it would be economically viable to utilize up to 80% of Russia’s flared gas, “generating several billion US dollars in annual value and eliminating up to 80 million tons of carbon dioxide emissions per year,” the World Bank found.

        However, “utilization requirements and flaring penalties alone will not significantly reduce flaring as long as the barriers inhibiting commercialization of the associated gas remain in place,” said Anastasiya Rozhkova of the World Bank’s Global Gas Flaring Reduction (GGFR) partnership.

        “Gradually raising domestic gas prices to stimulate investment and ensuring transparent access to the transportation network are also important steps in the right direction.”

         As for GTL, here’s what the report found:

        “At current [low] prices, GTL and EOR [enhanced oil recovery] may appear to be better economic options than GPPs [gas processing plans] for using APG [associated petroleum gas, currently flared]. But Russia as a whole can gain more value by processing the gas and exporting it to Europe.

        “This value would need to be shared with field owners to make utilization economic.”

        However, “even though it may be economic to capture much of the flared gas, investors may have better alternative uses for the capital. Other incentives and/or penalties may therefore be required,” the study cautions.

        What’s more, “large fields will be easily able to make economic investments in APG utilization infrastructure, but there will be others that cannot economically justify the investments to capture the APG that they are currently flaring.

        “Connection costs for smaller fields (0.04< billion cubic meters/year) will be prohibitively high (>$60/ 1,000 cubic meters). It is important that Russian field owners seek ways of increasing the economies of scale in delivering this gas to market – e.g. by pooling their flows. Doubling these flows can reduce unit costs by around 40%.” -- Jack Peckham

 

 

 

 

Franklin Mining Signs Argentina GTL Letter-of-Intent

        U.S.-based Franklin Mining announced Aug. 5 that it signed a letter of intent to build a 20,000 barrels/day gas-to-liquids diesel and kero-jet plant in Tierra del Fuego, Argentina.

        “Under terms of their letter, the Provincial government [of Tierra del Fuego] will provide a daily allotment of six million cubic meters of natural gas per day for the duration of the agreement,” Franklin said.

Further details on the deal would be released “within 90 days,” the company said.

 

 

 

 

 

COAL TO LIQUIDS NEWS


CTL Plant Challenges: Better Efficiency, Lower Cost, CCS

        Coal-to-liquids (CTL) plants may have a future as an alternative to conventional crude oil refining. But several huge challenges must be overcome, according to a new study by SRI Consulting.

        One key challenge: Finding better ways to utilize the large amount of waste heat generated. About 65% of the coal energy is wasted, the study found.

        Another big challenge: Cost.

        Gasification News asked SRI for an estimate of how much a 50,000 barrels/day CTL plant would cost today, if including CO2 capture & storage (CCS). Here’s what SRI vice president Russell Heinen told us:

        “Our current study does not present CTL costs including CO2 capture and storage. We are working on these economics in some other reports related to coal-fired electric power generation.

        “The cost of a 50,000 bpd CTL plant is estimated to be roughly $3.5 to 4 billion depending on the process selected.”

        Asked whether CTL plants would be able to be built in the U.S. prior to the U.S. Congress and President agreeing to some new CO2 legal control scheme (covering carbon credits trading, CO2 tax) along with a new, federal legal liability-limits scheme for stored CO2, here’s what Heinen said:

        “While the uncertainty associated with CO2 is a significant factor limiting CTL plants from being built in the U.S., this is not the only hurdle that needs to be overcome before we see any CTL plants built in the U.S. Other hurdles include economic assistance and infrastructure requirements which will also need governmental intervention.

        “Given the current political climate in the U.S., it appears unlikely that a CTL plant could be approved without carbon capture and sequestration.

        “With the large capital outlays required it is difficult to imagine an investor assuming first-mover carbon capture risk in addition to all the other risks associated with such a project.

        “This means that CTL will probably have to wait until one or more electric utility projects have validated CC&S and these will not go forward until the uncertainties around carbon value and long term liability for sequestered carbon are resolved by the Federal government.

        “There are other hurdles that must be overcome. The capital investment requirements are such that government loan guarantees will probably be needed, if not price supports and other incentives. In addition, there are significant challenges in acquiring the quantities of water needed, especially in the U.S. Mountain West.”

        The new SRI study covers both direct and indirect methods for coal liquefaction. One chapter is “devoted to a robust economic analysis of a plant for naphtha and diesel production using a generic integrated coal gasification and indirect liquefaction through the Fischer-Tropsch (F-T) synthesis reaction,” SRI says. – Jack Peckham

        

 

 

 

Coal-to-Methanol Plant Set for West Virginia

        U.S. coal giant Consol Energy and gasification project developer Synthesis Energy Systems (SES) last week announced a proposed $800 million coal-to-methanol joint venture at Benwood, W. Va.

        The two companies have formed Northern Appalachia Fuel LLC (NAF) to develop their first U.S. coal gasification and liquefaction project. Respective boards of directors have authorized funds for development activities including the front-end engineering design (FEED) package. Each member company will contribute equally to this phase of the project.

        The FEED (tapping the services of Aker Solutions US) is slated to include a CO2 management strategy that will focus on carbon sequestration in a deep saline aquifer.

        Consol’s nearby Shoemaker complex is expected to directly supply a blended feedstock of run-of-mine coal and coal otherwise not recovered in the normal preparation process. Coal will initially be trucked in with the possibility of overland conveyor belts in the future. The site can be served by rail or barge.

        SES’s proprietary ‘U-Gas’ technology will be used to convert coal to synthetic gas, which will be used to produce about 720,000 metric tons per year of methanol, suitable for use as feedstock for the chemical industry.

        Officials say they expect the project eventually could yield about 100 million gallons per year of 87 octane gasoline, assuming they obtain technology rights. NAF is in negotiations with ExxonMobil Research and Engineering to license the proprietary methanol-to-gasoline technology.

        The partner companies say that the U-GAS gasification offers proven technology, scalability and “flexibility to efficiently gasify a range of locally available fuels including high ash and high sulfur coals, biomass and wastes,” according to Lara Ramburg, director of communications for West Virginia Gov. Joe Manchin.

        According to NAF, approximately 3,000 tons of coal will be used per day to create methanol and liquefied petroleum gas, including propane, ethane and butane. The facility will make sulfur, CO2, LPG and industrial gas by-products, as well as ash suitable for building materials, which will be hauled by truck to Consol-operated waste impoundments.

        The Benwood complex, located in West Virginia’s northern panhandle, is expected to break ground in the first half of 2009, with a two-year construction phase and anticipated completion in 2011. It is expected the facility will have a minimum 20-year lifespan. Approximately 300-500 jobs will be created in the construction phase with roughly 60 permanent jobs once operational in 2012.

        Long-term financing options remain under discussion, including a memorandum of understanding between Consol and SES with the state of West Virginia and its partner, the Regional Economic Development Partnership. The MOU provides for financing and tax incentives to the project over a 10-year period. – Amber Corrin

 

 

 

 

Linc Predicts $28/Barrel Diesel from World’s First UCG-CTL Plant

        Australia’s Linc Energy announced that mechanical completion is nearly done on its Chinchilla underground coal gasification (UCG)/coal-to-liquids (CTL) plant.

        “All plant units are now effectively mechanically complete,” Linc said, saying that remaining work would take only a few days.

        “When this work is complete, Linc will then begin its final phase of commissioning, culminating in liquids production as soon as possible.

        “Linc Energy will shortly be the only company in the world to have demonstrated how to take stranded coal resources and using its UCG technology in combination with the demonstration GTL [CTL] plant, turn these resources into low cost, high quality diesel and jet fuels.

        “Linc Energy estimates that this can be accomplished for approximately U.S. $28 per barrel (18 cents per liter) of liquid fuel.”

        A key to the company’s technology progress is its affiliation with Yerostigaz, a former Soviet Union (FSU) company with long experience in UCG. Linc now owns 60% of Yerostigaz. – Jack Peckham

 

 

 

 

Alter NRG CTL Project Could Combine Traditional, Alternative Gasification Technologies

        Canada’s first proposed coal-to-liquids (CTL) project by Calgary-based Alter NRG (see GN 7/23/08) potentially could involve a combination of different gasification technologies, including Alter NRG’s own, proprietary plasma gasification technology.

        In an interview with Gasification News, Alter NRG’s CEO Mark Montemurro said that the company has examined a variety of potential technologies for the proposed $4.5 billion, 40,000 barrels/day, mine-mouth CTL plant at Fox Creek, Alberta.

        Internal studies by the company have looked at the possibility of employing the well-established gasification technologies of GE, Siemens and Shell, Montemurro told us.

        One key reason: Financing for such a CTL plant requires minimizing technology risk. So, the principal gasification technology at the plant might be from one of the major gasification vendors, to ease banker concerns.

        Potentially, some of the more difficult coals could be run through Alter NRG’s plasma gasifier, in parallel with the traditional gasifiers, he explained.

        “To get bank financing, [the major technology vendors] have the credibility that we don’t yet have. But it may be possible to integrate our gasifier with others. Ours is especially suited to handling low-quality coal,” he said.

        As for the Fischer-Tropsch conversion of the syngas coming from the gasifiers, the company’s internal study assumed a Rentech (iron-based) FT catalyst technology – although Alter NRG hasn’t gone through any FT licensing process yet, he said.

        Another key objective is finding a “strategic partner” for the project, which potentially could involve a major gasification technology company, he said. Once such a partner has been found, the company would later issue a request for a front end engineering & design (FEED) study, he said.

        Carbon capture & storage (CCS) and enhanced oil recovery (EOR) are other key features of the project. Some 30 nearby oil fields would be interested in getting the CO2 from the plant, he said.

        While Alberta has plenty of petroleum coke available from oil-sands cokers, rail movements from Fort McMurray to the proposed plant site don’t look practical, at least not now, he said. The existing rail line has insufficient capacity to move much petcoke.

        What’s more, the cost of rail movement of coke doesn’t look as economical as using mine-mouth coal, he explained.

        Alter NRG holds a lease on coal resources near the town of Fox Creek. In total, the company says it has ownership of 468 million tons of proven plus probable coal reserves and 876 million tons of coal resource.

        Besides the ultra-low sulfur diesel that would result from the plant, the naphtha would have special value to oil-sands bitumen shippers that need more diluent for pipeline shipping.

Jack Peckham

 

 

 

 

CARBON STORAGE


Nymex Launches CO2 Futures Contract

        New York Mercantile Exchange (Nymex) announced July 28 that it will launch a Regional Greenhouse Gas Initiative (RGGI) carbon dioxide (CO2) allowance futures contract on Aug. 24, for the Aug. 25 trade date.

        Nymex also will list a RGGI options contract for trade date Aug. 26.

        “The listing of these products on NYMEX is a Green Exchange initiative, which will provide a trading platform for environmental commodities,” Nymex said.

        “The new futures contract, with commodity code RJ, will be physically delivered to the RGGI CO2 Allowance Trading System (RGGI-COATS). It will be available for trading on the CME Globex electronic trading platform.

        “Additionally, off-exchange transactions can be submitted for clearing via NYMEX ClearPort. The size of the futures contract will be 1,000 RGGI CO2 allowances with a minimum price fluctuation of $0.01 per allowance. It will expire at the termination of the third business day prior to the first business day of the contract month.

        “The RGGI options contract, with contract code OR, will be an American-style option that exercises into the underlying RGGI futures contract. The options will expire three business days prior to the expiration of the underlying RGGI futures contract.

        “There will be five strike prices in increments of $0.50 per allowance above and below the at-the-money strike price. The minimum price fluctuation will be $0.01 per allowance. The contract will trade on the NYMEX trading floor. Additionally, off-exchange options transactions can be submitted for clearing via NYMEX ClearPort.

        “December 2009 will be the first listed month for both the futures and options contracts, with additional contract months to be added.”

        Nymex noted that RGGI is a cooperative effort of 10 U.S. northeastern states to reduce CO2 emissions. Participating states have pledged to reduce by 2010 greenhouse gas emissions to 10% below 1990 levels.

        “RGGI states have put in place a regional cap-and-trade system to regulate CO2 emissions from power plants, and the trading of carbon allowances under this program has begun in the over-the-counter market,” Nymex said.

        “RGGI plans to begin quarterly auctions of allowances on September 25, 2008, and the launch of the NYMEX RGGI futures and options contracts are expected to provide the market with a valuable tool for hedging price risk.” -- Jack Peckham

 

 

 

 

UK Government Pre-Qualifies Four Companies for CCS Demo Competition

        UK Department for Business, Enterprise, and Regulatory Reform (BERR) last month unveiled a list of four bidders that have pre-qualified for its carbon capture and storage (CCS) demonstration competition.

The winners at this stage are BP Alternative Energy International Limited, E.ON UK Plc, Peel Power Limited and Scottish Power Generation Limited, selected from a short-list of nine contenders.

The BERR competition aims to select and fund a commercial-scale CCS project utilizing post-combustion capture technology on a coal-fired power plant, with a target date of operations in 2014.

BERR’s funding would be limited to the capture of 90% of the CO2 emitted by the equivalent of 300-400MW generating capacity (see GN, 06/25/2008).

 

CCS Competition Entries

BERR official Rachel Crisp told Gasification News that the criteria for pre-qualification assessment were bidders’ technical capability and financial robustness.

Thus, specific projects were not assessed at this stage. BERR plans to select a final list with a specific project in 2009, after a negotiation process on commercial, contractual, and financial issues.

Among the pre-qualified bidders, only E.ON UK has a specific project in the planning stage.

E.ON UK’s proposed project is the £1 billion 1600-MW Kingsnorth supercritical coal-fired power plant, which would replace the existing coal-fired capacity in Medway Estuary, Kent.

The new Kingsnorth power plant would have two 800-MW units that are designed to be 20% more efficient than the existing capacity, translating into an annual reduction of 2 million tons CO2 in emissions.

E.ON UK filed for regulatory approval of the new plant in 2006. The company said the plant would be the first supercritical coal-fired plant in England, and the first coal-fired plant to be built there in 20 years.

E.ON UK’s entry is supported by a number of partners, including Fluor and MHI as carbon capture technology suppliers and Tullow Oil for CO2 storage.

Scottish Power’s bid is supported by Marathon Oil and CCS technology providers Aker Clean Carbon and Aker Solutions of Norway. The consortium would employ Aker’s “Just Catch” post-combustion proprietary technology.

Aker Clean Carbon will complete a demo CCS plant in Karsto, Norway this year.

Peel Power Limited is a partnership between England’s infrastructure Peel Holdings and Denmark’s power plant developer Dong Energy.

This consortium includes CCS consultancy Senergy Alternative Energy, oil and gas company Atkins-Boreas, and engineering firm Mott MacDonald.

BP spokesman Robert Wine told Gasification News that the company would offer its knowledge of CCS “from our Algerian project, In Salah, and the engineering design work we did for our own proposed projects - Scotland and Australia (since cancelled for technical and/or timing reasons), and California and Abu Dhabi.”

 

CCS Readiness Consultation

On July 1, BERR also opened a 12-week public consultation period on measures to promote CCS in the UK, EU, and globally.

Specifically, the document solicits views on actions to conform with the January 2008 draft EU directive on carbon capture readiness that relates to designing carbon capture ready new power plants with capacity exceeding 300MW.

The BERR consultation asks public comments on:

1) what carbon capture readiness CCR means and to which combustion plants it should apply;

(2) whether CCR should be addressed by developers when designing new combustion plant and be taken into account by the regulatory authorities when deciding whether or not to consent to such plant;

(3) how such requirement would be incorporated into the existing regulatory consenting process in England and Wales.

The consultation announcement noted that the negotiations on the EU draft directive are underway, and the Directive is expected to be adopted in May 2009.

 

Hatfield IGCC Update

Powerfuel Power’s Hatfield proposed 900-MW Integrated Gasification Combined Cycle (IGCC) project in South Yorkshire did not pre-qualify for the CCS competition despite having made the short-list in March.

Powerfuel Power Director Michael Gibbons told Gasification News that the Hatfield project was still on track “with excellent progress” and that it would be “the most advanced CCS project in Europe.”

Hatfield IGCC is designed to capture CO2 at the pre-combustion stage, when it goes into operation in 2013-2014 (see GN, 06/25/2008, 05/02/2007). -- Haik Gugarats

 

 

 

Technip, IFP Unit Team Up on CCS

        Big French energy engineering company Technip announced an agreement with IFP subsidiary Geogreen that will allow the companies “to offer clients studies for integrated solutions for the entire carbon (CO2) capture, transport and storage chain.”

        “This partnership teams Technip’s know-how in CO2 capture, transport and gas compression for injection into underground structures, with Geogreen’s expertise in CO2 transport and geological storage,” Technip said.

        “It strengthens the positions of both companies on this high-potential market. CO2 capture and storage technologies can be applied in many of Technip’s sectors of activity including oil field developments, hydrogen production units and treatment of natural gas.”

        Geogreen describes itself as an “international services company specialized in CO2 transport and storage offering its clients strategic studies in the areas of CO2 capture, transport and storage in addition to engineering studies and technical assistance relating to CO2 transport and geological storage.” -- Jack Peckham

 

 

 

 

U.S. Dept. of Energy Will Fund 15 CO2 Capture Projects

        U.S. Department of Energy (DOE) last week announced it will provide $36 million for 15 projects for CO2 capture from existing coal-fired power plants.   

        The 15 projects will focus on five areas of interest for CO2 capture: membranes, solvents, sorbents, oxycombustion (flue gas purification and boiler development) and chemical looping. 

        For the membrane R&D work, research projects will focus on overcoming challenges including large flue gas volume, relatively low CO2 concentration, low flue gas pressure, flue gas contaminants, and the need for high membrane surface area. 

        The companies getting membrane CO2 R&D grants:

        • Membrane Technology and Research Inc. (Menlo Park, Calif). “The new research will involve the construction of an approximately one ton of CO2/day membrane skid for use in a 6 month pilot-scale field test with real coal-fired flue gas. (DOE share: $3,437,119; recipient share: $957,630; duration: 24 months).

        • Research Triangle Institute (Research Triangle Park, N.C). RTI will research “novel fluorinated polymer membranes with a focus on total process design and integration of the membrane-based CO2 separation technology into an existing coal-fired power plant. RTI researchers will focus on novel high-performance membrane materials, improved hollow-fiber membrane module design, and process development.” (DOE share: $1,944,821; recipient share: $486,205; duration: 24 months).

        For the solvent R&D, research will focus on “technical challenges to solvent-based CO2 capture such as large flue gas volume, relatively low CO2 concentration, flue gas contaminants, and high parasitic power demand for solvent recovery.”

        Grantees include: 

        • Georgia Tech Research Corporation (Atlanta, Ga.). This R&D will focus on "reversible ionic liquids" to capture CO2 from coal-fired power plant flue gas. “Reversible ionic liquids are essentially ‘smart’ molecules that change properties abruptly in response to some stimulus,” DOE said. “Investigators will focus on the synthesis, characterization, and testing of novel reversible ionic liquids, and then use structure/property relationships to optimize their physical and thermodynamic properties for CO2 capture. (DOE share: $1,620,479; recipient share: $413,072; duration: 36 months).

        • GE Global Research (Niskayuna, N.Y.). Researchers will use both computational and laboratory methods to “identify and produce novel oligomeric solvents for post-combustion capture of CO2.” (DOE share: $2,546,303; recipient share: $636,575; duration: 24 months).

        • Board of Trustees of the University of Illinois, Illinois State Geological Survey (Champaign, Ill.). Illinois State Geological Survey (ISGS) plans to develop an integrated vacuum carbonate absorption process (IVCAP) for post-combustion CO2 capture. “This process employs potassium carbonate as an absolvent and can be uniquely integrated with the power plant steam cycle by using the waste steam or low-quality steam from the power plant. Researchers aim to confirm IVCAP process parameters through laboratory testing, identify an effective catalyst for accelerating CO2 absorption rates, and develop an additive for reducing the stripping heat,” DOE says. (DOE share: $691,191; recipient share: $339,259; duration: 36 months).

        In the solid sorbents R&D, “possible configurations for contacting the flue gas with the solid particles include fixed, moving, and fluidized beds. The projects selected in this area of interest will address key technical challenges to sorbent-based systems such as large flue gas volume, relatively low CO2 concentration, flue gas contaminants, and high parasitic power demand for sorbent recovery,” DOE says.

        Grantees include:

        ADA-ES, Inc. (Littleton, Colo). “Criteria for optimal sorbents will include availability of raw material, ability to manage disposal costs, CO2 working capacity, interaction with flue gas constituents and sufficient hardness to mitigate attrition. Test results will aid in the development of the conceptual design for integration of the sorbent system into a coal-fired power plant,” DOE says. (DOE share: $2,000,000; recipient share: $500,000; duration: 36 months).

        • SRI International (Menlo Park, Calif.). SRI International will develop a novel, high-capacity carbon sorbent with moderate thermal requirements for regeneration, DOE says. “Specific objectives are to validate the performance of the sorbent concept on a bench-scale system, to perform parametric experiments to determine optimum operating conditions, and to evaluate the technical and economic viability of the technology.” (DOE share: $1,799,962; recipient share: $450,000; duration: 36 months)

        • TDA Research Inc. (Wheat Ridge, Colo.). TDA will produce and evaluate its low-cost solid sorbent developed in prior laboratory testing. “A bench-scale CO2 capture unit will be designed and constructed using the developed sorbent, and it will be tested on a coal-derived flue gas. Mass and energy balances for a commercial-scale coal-fired power plant retrofit with the CO2 capture system will also be determined,” DOE says. (DOE share: $1,097,839; recipient share: $276,541; duration: 36 months).

        Oxy-combustion flue-gas R&D will focus on methods to reduce water, excess oxygen, nitrogen, sulfur oxides, nitrogen oxides, mercury, and other contaminants in the flue gas.

        Grantees include:

        • Air Products and Chemicals Inc. (Allentown, Pa.). Focus of this R&D will be on “acidic impurities within the captured CO2 product such as sulfur oxides, hydrogen chloride and nitrogen oxides. In commercial application, it may be necessary to remove these acidic impurities from the CO2 stream before the purified CO2 is introduced into a pipeline in order to prevent corrosion or problems at the geologic sequestration site,” DOE says. (DOE share: $1,003,995; recipient share: $251,000; duration: 24 months).

        Praxair Inc. (Tonawanda, N.Y.). This project aims to “cost-effectively capture more than 95% of CO2 emissions from a boiler with high air ingress. Atmospheric emissions of sulfur oxides and mercury will be reduced by at least 99%, and emissions of nitrogen oxides will be reduced by greater than 90% without the need for wet flue gas desulfurization and selective catalytic reduction,” DOE says. (DOE share: $3,241,989; recipient share: $2,161,326; duration: 36 months).

        Oxycombustion boiler R&D will focus on flame characteristics, burner and coal-feed design, and analyses of the interaction of oxycombustion products with boiler materials, DOE says.

        Grantees include:

        • Alstom Power Inc. (Windsor, Conn). This R&D program will develop an oxycombustion system for “tangentially fired (T-fired) coal boiler units.”

        T-fired boilers make up 44% of the installed base of utility boilers in the world and 41% in the U.S., DOE says. “The project aims to develop an innovative oxycombustion system for existing T-fired boiler units that minimizes overall capital investment and operating costs by measuring the performance of these systems in pilot-scale tests at Alstom’s 15 megawatt T-Fired Boiler Simulation Facility and its 15 megawatt Industrial Scale Burner Facility,” DOE says. (DOE share: $5,000,000; recipient share: $2,229,966; duration: 24 months).

        • Foster Wheeler North America Corp. (Livingston, N.J.). Foster Wheeler will “conduct an in-depth test program to determine how oxycombustion will affect the life of electric utility boiler tube materials. The program will involve computational fluid dynamics modeling to predict the gas compositions that will exist throughout and along the walls of oxycombustion boilers, laboratory testing to determine the effects of oxycombustion conditions on conventional boiler tube materials and coverings, and laboratory testing the determine the effects of oxycombustion on alternative higher-alloy tube materials and coverings,” DOE says. (DOE share: $1,593,437; recipient share: $398,357; duration: 36 months).

        • Reaction Engineering International (Salt Lake City, Utah). This R&D will investigate “mechanism development and computational fluid dynamics modeling, to elucidate the impacts of retrofitting existing coal-fired utility boilers for oxycombustion. Test data will be obtained from oxycombustion experiments at 0.1 kilowatt, 100 kilowatt and 1.2 megawatt scale,” DOE says. (DOE share: $2,376,443; recipient share: $617,767; duration: 36 months).

        For the chemical looping R&D, DOE notes that chemical looping “involves the use of a solid oxygen carrier particle in the combustion of fuels. The oxygen carrier particle is oxidized in one reactor and is used to combust the fuel in another reactor. “Projects in this area of interest will advance the development of chemical looping systems by addressing key issues such as solids handling and oxygen carrier capacity, reactivity, and attrition.” 

        Grantees include:

        • Alstom Power Inc. (Windsor, Conn.). Alstom uses a limestone-based oxygen carrier to create power from coal while creating a concentrated CO2 flue gas. “Researchers will design, construct, and operate a prototype facility that includes all of the equipment required to operate the chemical looping plant in a fully integrated manner, with all major systems in service,” DOE says. (DOE share: $4,999,614; recipient share: $1,249,900; duration: 24 months).

        • Ohio State University Research Foundation (Columbus, Ohio). OSU’s coal direct chemical looping (CDCL) technology “can be retrofitted to existing pulverized-coal power plants to efficiently convert coal while capturing CO2 through the assistance of a patented iron oxide–based composite oxygen carrier particle,” DOE says.

        “Development of the CDCL system will be conducted through experimental testing under bench and sub-pilot scales.”  (DOE share: $2,860,141; recipient share: $1,126,513; duration: 36 months). – Jack Peckham

 

 

 

 

EU Touts ‘CO2 Sink’ Project

        The European Commission’s research commission on July 28 touted details of its “CO2Sink” project aimed at ensuring that captured CO2 can be safely stored underground.

        “The European Commission is committed to encouraging industry to reduce its carbon dioxide (CO2) emissions and research plays a vital role in that,” said the European Science and Research Commissioner, Janez Potocnik (see: link to source document).

        The European Union-backed project CO2SINK, with €8.7 million EU financing, aims to help the EU meet the goal of cutting CO2 emissions 8% between 2008-2012.

        “CO2 capture and geological storage . . . seems to be the only solution that has the potential to achieve substantial reductions in a cost effective manner over the next few decades,” the commission said. “And the CO2SINK project is at the forefront of developing the appropriate technologies to achieve CO2 storage.”

        The research project involves injecting CO2 into a saline aquifer near the town of Ketzin, west of Berlin.

        “Up to 60,000 tons will be stored at a depth of more than 600 meters during the next 2 years,” the commission said.

 

 

        “CO2SINK aims to make full use of the physical properties of CO2 and the changes it undergoes at extreme pressures. At the pressures encountered deep underground, CO2 is dense and behaves more like a liquid than a gas. What this means is that large quantities can be stored in a relatively small volume. Most of what is stored in this manner occupies the spaces in porous rock.

        “To allay public fears over the safety of the project, numerous safeguards have been put into place. These include two observation wells which have been successfully lowered to depths of 800 meters. These have been equipped with the most modern sensor technology. The safety of the underground store is supported by extensive survey reports.
        “Meanwhile, to guarantee the safety of storage, the State Office for Mining, Geology and Minerals of Brandenburg (LBGR) have supported the project in technical and safety-related issues during the prospecting, development and examination of the storage location Ketzin, and have issued the required legal mining-authorizations.

        “Any leakage at the Ketzin site is highly unlikely. The risk of a sudden, large-scale release of CO2 has been avoided using the same precautions that are applied to handling other gases, such as avoiding unsuitable or geologically unstable sites. The geology in the area surrounding Ketzin is very stable.” – Jack Peckham

 

 

 

 

Praxair Eyes Oxy-Coal Test at German Power Plant; Would Enable CCS

        Praxair Deutschland announced July 24 that it has signed an agreement with Vattenfall AB of Sweden to provide technology and engineering in the joint development of oxy-coal technology at a German electricity plant.

        “The project involves a conceptual study for a possible 500-megawatt combined heat and power plant in Germany that would incorporate Praxair’s oxy-coal technology. This technology will enable the capture of more than 90% of the carbon dioxide generated by coal-fired boilers,” Praxair said.

        “The project would require approximately 8,000 tons per day of oxygen. Praxair will develop the conceptual design, cost and performance estimates for the oxygen production facilities as well as for the carbon dioxide processing unit.

        “The captured carbon dioxide would be transported by pipeline to a sequestration site or enhanced oil recovery field.”

        Praxair said it also has a multi-year agreement with Foster Wheeler North America to “jointly pursue specific clean-coal demonstration projects that will integrate oxy-coal technology with the combustion systems of new and existing coal-fired electric generating plants.”

-- Jack Peckham

 

 

 

In Other Sectors


Nexterra Wins Funds for 2 Biomass Gasification Demo Projects

        Vancouver, B.C.-based Nexterra Energy announced that the British Columbia government has chosen Nexterra to anchor two biomass gasification projects, tapping the province’s Innovative Clean Energy (ICE) Fund.

        As Nexterra explained in a press statement, the $25 million ICE Fund supports the BC Energy Plan, which includes the government’s goals of electricity self-sufficiency by 2016 and cutting greenhouse gas emissions 33% by 2020.

        Nexterra’s gasification technology converts wood residue into renewable synthesis gas for use in heat and power at industrial and institutional sites.

        “Nexterra is thrilled to be a part of this B.C. clean energy showcase,” said company President and CEO Jonathan Rhone. “We look forward to working with University of Northern British Columbia (UNBC), Kruger and other BC companies to develop gasification projects that meet their energy needs in ways that significantly reduce both costs and greenhouse gas (GHG) emissions.”

        Descriptions of the two projects:

        • The UNBC project, which would get $3.5 million in ICE funding, proposes to “implement a system to gasify mountain pine beetle infested biomass, producing heat to fire a boiler at the power plant on campus to heat university buildings,” Nexterra said.

        “This showcase project, the first of its kind at a Canadian university, will be a catalyst for replication, research and economic development. Biomass gasification could displace up to 80% of the fossil fuel currently used to heat buildings on the UNBC campus.”

        • The Kruger Products project, which would get $1.5 million in ICE funding, involves a direct-fired boiler.

        “Nexterra Energy Corporation will work with FP Innovations and Kruger Products Ltd. to apply its biomass gasification technology for industrial use. The consortium will demonstrate a direct fired biomass gasification system (turning forest/wood waste into gas to produce heat) for use at the Kruger tissue mill in New Westminster. ICE Fund support will help achieve replication and commercialization of the process.” – Jack Peckham

 

 

 

News Briefs

 

Battelle to Consult with Japan CCS Company on Carbon Capture, Storage

        U.S. Dept. of Energy-funded Battelle Energy Technology – which touts itself as “one of the world's leaders in the design and demonstration of carbon dioxide capture and storage (CCS)” – announced that Japan CCS Company “is tapping into Battelle Energy Technology's knowledge base on CCS.”

        Some 25 Japanese companies “have banded together to take the step from research to demonstration in that country and Battelle is cooperating with them in a consultant capacity,” Battelle said.

        “The members of Japan CCS include power companies (11), petroleum companies (5), engineering businesses (4), petroleum resource development companies (2), iron and steel manufacturing concerns (2) and a chemical company, all with expertise in specialized areas needed for CCS.”

        The company's mission will be to “support the Japanese government, which has called for major reductions in CO2. It said this year that it aims to reduce by 60 to 80% Japan’s current CO2 emissions.”

 

Japan Groups to Pursue New Coal Gasification Power Technology

        According to a Jiji Press news service report, Japan’s New Energy and Industrial Technology Development Organization announced that it selected five groups of companies “to pursue a new technology in coal gasification power generation.”

        The scheme would involve carbon capture & storage (CCS), the report said.

        “The five groups will study the feasibility of the technology and complete the work in two to three years.

        “The five groups include the one that brings together Chugoku Electric Power and Hitachi Ltd,” the report said.

 

Australian Coal Group Calls for Gasification, CCS Study

        According to a report from Australian Broadcasting Corporation (ABC) news service, “the Collie Coal Futures Group is calling for expressions of interest from researchers interested in conducting a study into [CO2] geo-sequestration in Western Australia's south-west.

        “Geo-sequestration is already being trialed in rural Victoria and group chairman Mick Murray says the coal industry can take advantage of the technology.”

        The study would involve using use existing bore holes to explore potential sites to store CO2 from coal gasification, the report said.

        "In the south-west there are a lot of bore holes that are being used for studies on the aquifers and we're able to use those, so we can do the desktop stuff on the available data from the logs on those bore holes," ABC quoted Murray as saying.

 

More Competition in Poland for Coal-Gasification Nitrogen Projects

        According to a report from Polish News Bulletin, in addition to the coal gasification project proposed by nitrogen company ZA Pulaway (see GN 6/25/08), another nitrogen competitor – ZA Kedzierzyn -- “has similar plans, and seems to be even closer to their realization.”

        The report quoted Krzysztof Jalosinski, the president of Kedzierzyn, as saying that construction of the coal gasification system “could start in 2010- 2011, as the company has already completed the first part of a feasibility study and the second part has recently been ordered.

        “Pulawy, whose study is being prepared by Bechtel, has also completed the first and started the second part. Construction in Pulawy could start next year, and the system could operate in 2014, but the company must find one more partner apart from the coal mine Bogdanka to supply the project with energy.

        “Kedzierzyn already has a potential energy supplier: PKE. The construction in both cases is to cost about ZL2bn.

        “Part of the cost can be covered by the EU, but the support can be given only to the company which finishes its project first,” the report said.

 

Sasol Hedges 30% of South African Synthetic Fuels Production

        Sasol announced Aug. 1 that it is hedging the cost of 16.4 million barrels of oil (equivalent to about 30% of its planned South African synfuels production) for the remainder of the 2009 financial year.

        “The hedge will provide downside protection should monthly average dated Brent crude oil prices decrease below US$90/ bbl (put level) on the hedged portion of synfuels production,” Sasol said. “Conversely, Sasol will incur opportunity losses on the hedged portion of production should monthly average oil prices exceed a volume weighted average US$228 / bbl (call level).”