SYNGAS-FIRED ALLAM CYCLE PROJECT UPDATE

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1 Energy & Environmental Research Center (EERC) SYNGAS-FIRED ALLAM CYCLE PROJECT UPDATE Presented at the Global Syngas Technologies Conference October 28 30, 2018 Joshua J. Stanislowski and Jason D. Laumb Energy & Environmental Research Center Xijia Lu and Mike McGroddy 8 Rivers Capital, LLC 2018 University of North Dakota Energy & Environmental Research Center.

2 ENERGY & ENVIRONMENTAL RESEARCH CENTER (EERC) Nonprofit branch of the University of North Dakota focused on energy and environmental solutions. More than 254,000 square feet of state-of-the-art laboratory, demonstration, and office space. EERC Heart of North Dakota Energy Industry

3 INDUSTRY NEED AND POSITION Carbon dioxide considered a commodity in North Dakota: Cost-effective carbon capture and storage (CCS) needed. Industry has/is researching many possible technical solutions for carbon on existing and new coal facilities. Allam Cycle promising technology: Integrated CO 2 capture = high efficiency. CO 2 ready for enhanced oil recovery (EOR) applications. Developed by 8 Rivers Capital. Greatly benefits North Dakota industry: Oil and gas industry. Lignite power generation.

4 WHAT IS THE ALLAM CYCLE? The Allam Cycle is any supercritical CO 2 Brayton cycle that: Is oxy-fueled and direct-fired. Recuperates turbine exhaust heat via a recycle stream. Is able to use a heat source in addition to the turbine exhaust. Uses a turbine inlet temperature above 800 C ( C optimal) and inlet pressure above 80 bar ( bar optimal). 8 Rivers Capital, LLC NET Power, LLC. 4

5 CORE NATURAL GAS ALLAM CYCLE DEMONSTRATION BY NET POWER 50-MWth natural gas demonstration plant located in La Porte, Texas. Mirrors design of commercial plant to ensure scalability. Includes all components of the Allam Cycle. Oxygen will be pulled from a pipeline as opposed to a dedicated air separation unit. Plant will undergo full performance evaluation. Construction complete. Full plant start-up in Will test performance, reliability, controllability, and safety. $140 million raised for engineering, construction, and testing. 300-MWe commercial plant under development. Pre-FEED study completed on full commercial plant. Beginning FEED and early development work. Toshiba well progressed on commercial turbine design. Working with customers in power, oil, and gas industries on development opportunities. 8 Rivers Capital, LLC NET Power, LLC.

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7 THE COAL-FIRED ALLAM CYCLE SIMPLIFIES POWER FROM COAL GASIFICATION Existing, Mature, Proven Technology Core Allam Cycle Natural Gas Process Efficiency HHV Gross Turbine Output 72.5% Coal Prep & Feed -0.2% ASU -9.7% CO 2, Syngas Comp. -8.7% Other Auxiliaries -6.1% Net Efficiency 47.8% High efficiency with existing gasifier technologies. Minimal gasifier integration required, low complexity. Near-zero emissions. No additional capture or compression equipment needed. 8 Rivers Capital, LLC NET Power, LLC.

8 KEY AREAS REQUIRED TO MITIGATE ADDITIONAL RISKS FOR COAL 1. Metallurgy/corrosion Evaluation of tolerance of downstream system to potential impurities. Dependent on gas cleanup system and coal type. 2. Gasifier selection Optimized system selection based on site and fuel. Select for lowest LCOE, lowest-risk system. Consider downstream implications. 3. Gas cleanup Evaluation of existing vs. proposed cleanup systems. Coal- and gasifier-dependent. 4. Syngas combustor Key equipment development. Dependent on gasifier output, fuel type, and required flexibility. 5. Large pilot-scale system development

9 TASK 1 DYNAMIC CORROSION TEST SYSTEM Heat Exchange Section High- Temperature Reactor Acid Removal/Sampling Section Gas Preheater

10 ALLOY CONDITIONS AFTER 750 HOURS OF EXPOSURE Test Gas Composition (mole fraction) SO2 H2O O2 3 ppm 2% 1% NO 20 ppm CO2 Balance Before Exposure Haynes 282 alloy before and after 750 hours of exposure; 1000x magnification showing chromium oxide surface layer. After Exposure

11 TASK 2 GASIFIER SELECTION 22 SYSTEMS CONSIDERED Gasifier Name SCGP SFG ECUST/Slurry SE Dry Vendor Shell Siemens ECUST ECUST/Sinopec Commercial Readiness Operation History with Lignite Applicable to Lignite Notional Cost Thermal Integration System Reliability Systems will be ranked from 1 to 5 in each category according to the following guidelines: Ranking 1 5 Commercial Readiness Pilot work only More than ten gasifiers deployed commercially Operational History with Lignite Pilot work only More than ten gasifiers deployed commercially Applicability to Lignite Will not work for lignite Expected to work well for lignite Notional Cost High cost Low cost Thermal Integration Low likelihood of integration with Allam Easily integrated with Allam System Reliability <60% availability expected >95% availability expected Ultimately, three systems were selected for detailed vendor studies.

12 SUMMARY OF VENDOR DATA Gasification Technology SE (ECUST) BGL SES SGT Overall Allam Cycle Efficiency, HHV 39.6% 39.0% 40.3% Design Output, MW (thermal) Gasifier Units, trains required Gasifier Type Entrained flow, slagging Fixed bed, slagging Fluid bed, agglomerated Syngas Flow (after cleanup), kg/h 165, ,910 Gasifier Operating Pressure, bar Gasifier Operating Temperature, C Syngas Composition at Outlet, dry basis H % 24.9% 32.8% CO 65.2% 58.2% 30.3% CO 2 6.1% 6.0% 27.2% H 2 S 0.5% 0.6% 0.5% COS 0.04% 0.02% 0.01% CH % 8.5% 8.5% N 2 + Ar 0.5% 0.9% 0.4%

13 TASK 3 IMPURITY MANAGEMENT Precombustion Proven technologies Low risk Higher cost Postcombustion Simplified removal Higher risk Lower cost

14 POSTCOMBUSTION TESTING The EERC has completed initial testing of the 8 Rivers DeSNO x process for postcombustion sulfur and NO x removal. The DeSNO x process uses only water in a packed spray column to remove sulfur and nitrogen species through oxidation reactions. Summary of findings: >99% of sulfur can be removed with adequate residence time. 90% of NO x is removed if oxygen levels are 5%. Under nominal Allam Cycle conditions with precombustion sulfur removal, 99% of residual sulfur and 50% NO x removal are expected.

15 TASK 4 SYNGAS COMBUSTION High-level design and modeling work has been conducted for a syngas combustion test unit. Results from natural gas combustion testing at the NET Power site will inform the team on design needs for a syngas combustor. Detailed results to be included in the final project report.

16 TASK 6 CONCEPTUAL COST Based on a 250-MWe system: Case 1-SES Gasifier. Case 2-SE Gasifier. Updated CO 2 sensitivity: SES No CO 2 sales, LCOE = $ $50/ston CO 2 sales, LCOE = $ SE No CO 2 sales, LCOE = $111. $50/ston CO 2 sales, LCOE = $70.30.

17 LARGE PILOTS DEMONSTRATION The EERC and 8 Rivers Capital were awarded under DE-FOA , Fossil Fuel Large-Scale Pilots, Phase I. The goal of Phase I is to determine the scope, scale, location, and cost of a large coalbased Allam Cycle pilot plant. Period of Performance Maximum DOE Funding Share Cost Share Number of Anticipated Awards Objective Phase I 1 year $1,000,000 Minimum 20% 8 10 Project scoping, site selection Phase II 1 year $3,000,000 Minimum 20% 4 5 FEED (front-end engineering and design) Phase III 5 years $40,000,000 Minimum 20% 2 Construction and operation

18 SITE AND SCOPE Team has chosen a 5-MW demonstration scale. Three locations currently being considered: Great Plains Synfuels Plant, Dakota Gasification Company (DGC). EERC. NETPower Allam Cycle demonstration site, La Porte, Texas.

19 POSSIBLE DGC LOCATIONS 19

20 EERC OPTION A 5-MW system could be housed in the EERC s Fuels of the Future facility or TRDU tower. Team is currently evaluating high-level needs to determine how this could be implemented. 20

21 CURRENT NET POWER SITE

22 FUTURE WORK Work will continue on the development of a host site for a large pilot-scale demonstration: Site selection by October 31, Detailed cost estimate for selected site. Completion of Environmental Information Volume. Development of project team. Phase II application to be submitted by March 31, 2019.

23 NDIC DISCLAIMER This report was prepared by the EERC pursuant to an agreement partially funded by the Industrial Commission of North Dakota, and neither the EERC nor any of its subcontractors nor the North Dakota Industrial Commission (NDIC) nor any person acting on behalf of either: (A) Makes any warranty or representation, express or implied, with respect to the accuracy, completeness, or usefulness of the information contained in this report or that the use of any information, apparatus, method, or process disclosed in this report may not infringe privately owned rights; or (B) Assumes any liabilities with respect to the use of, or for damages resulting from the use of, any information, apparatus, method, or process disclosed in this report. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the North Dakota Industrial Commission. The views and opinions of authors expressed herein do not necessarily state or reflect those of the North Dakota Industrial Commission.

24 CONTACT INFORMATION Energy & Environmental Research Center University of North Dakota 15 North 23rd Street, Stop 9018 Grand Forks, ND (phone) (fax) Joshua J. Stanislowski Principal Process Engineer