METHANOL, a Multi Source and Multipurpose Energy Carrier Alternative

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1 METHANOL, a Multi Source and Multipurpose Energy Carrier Alternative IEA Bioenergy / IETS: System and Integration Aspects of Biomass-based Gasification Gothenburg November 19, 2013 Ingvar Landälv Senior Project Manager LTU 1

2 AGENDA Turning alkali in the feedstock to an advantage Why has Chemrec focused Black Liquor so long? Is technology ready for commercialization? Can the BLG developments be used for other applications? Future Energy System Scenarios The need to look at the total cost of a new energy system An example from the marine sector An example from the HD vehicle sector Summary 2 11/26/

3 Today s commercial Forrest Industry has two main legs TODAY Logs Sawmill Wood Products Pulp Forest Pulp Wood Pulp Boiler Mill Recovery Pulp Mill New Value Streams from Residuals & Spent Pulping Liquors 3

4 BLG is a transformative technology converting pulp mills to biorefineries making efficient use of the third fraction from the forest TOMORROW Logs Sawmill Wood Products Pulp Forest Pulp Wood Pulp Boiler Mill Combined Recovery and Fuel Generation Recovery Pulp Mill Forest Residual Fuel New Value Streams from Residuals & Spent Pulping Liquors 4

5 BL Energy is a large renewable energy source in some areas of the World e.g. Sweden Nr Mill owner, name Nominal capacity Current capacity Year of start-up 1 Billerud, Karlsborg SCA, Munksund Smurfit Kappa, Lövholmen SCA, Obbola Husum, M-Real Approx: 5000 MW Black Liquor 1 6 Husum, M-Real Husum, M-Real Domsjö, Domsjö Domsjö, Domsjö Dynäs, Mondi Östrand, SCA Iggesund, Holmen Iggesund, Holmen Vallvik, Rottneros 760/ /1999 Close to 20 large plants Korsnäs, Korsnäs Korsnäs, Korsnäs Skutskär, StoraEnso Skutskär, StoraEnso Frövi, Korsnäs Skoghall, Stora Enso 2200/(3350) Gruvön, Billerud 2500/(3300) Billingsfors, Munksjö Bäckhammar, Wermland Paper Aspa, Munksjö Skärblacka, Billerud Värö, Södra Mönsterås, Södra Mörrum, Södra

6 BL Energy is a substantial energy source in some states in the US e.g. Georgia More than 100 suitable pulp mills In North America with MW of Black Liquor per plant 6 In the World: approx MW Black Liquor or large plants 6

7 Some basics about Black Liquor making it a very strong candidate as gasification fuel Black Liquor is a Liquid Easy to feed to a pressurized gasifier Can be atomized to fine droplets Rapid gasification rates Stable properties over time Black Liquor is an efficient gasification fuel Full carbon conversion at ~1000 deg C Virtually no tar formation Low methane formation Black Liquor is available in large quantities World BL capacity about 660 TWh Corresponds to production of ~ 10 billion gal gasoline equivalents per year Typically MW of BL per pulp mill 7

8 Chemrec technology generates good quality raw syngas with three main process steps: Gasification, Quenching and Cooling Black liquor Atomising medium Oxygen GASIFICATION Cooling water Boiler feed water* GAS COOLER OK raw syngas REACTOR LPsteam* SEPARATION OF GAS AND SMELT QUENCH Raw gas MPsteam* PARTICULATE REMOVAL AND GAS COOLING Green liquor Condensate 8 Weak wash * Cooling water in DP1

9 BL to BioDME: Well proven Concept by Chemrec and LTU in the Pilot Plant in Piteå Black Liquor OK raw syngas Raw MeOH storage BioDME O 2 DP-1 Plant Active C Abs WG Shift Amine Wash MeOH Synth. DME Synth. Distillation 9

10 Development Plant for Oxygen-blown high pressure BL gasification Located at the SmurfitKappa mill in Piteå, Sweden Oxygen-blown and operated at 30 bar(g) Capacity 20 metric tons per day of black liquor solids (3 MW(th)) Used for technical development and design verification Started up 2005 Now in operation more than hours (10/2013). Raw syngas converted to BioDME since 2011 (about 6000 h) Operations: 10 operators in 5 shifts 10

11 11 Accumulated BioDME Production is close to 600 tons in October G 400 F D E Produced BioDME, ton dec-11 jan-12 feb-12 mar-12 apr-12 maj-12 jun-12 jul-12 aug-12 sep-12 okt-12 nov-12 dec-12 jan-13 feb-13 mar-13 apr-13 maj-13 jun-13 jul-13 aug-13 H A B C A - Authority inspection B - Maintenance C - Holidays D - Repair of ceramics E - New equipment F - Catalyst replacement, change of owner G - Maintenance H - Replacement of ceramics & catalyst

12 Chemrec technology ready for industrial scale and can be built by world-class EPCs with adequate risk allocation EPC 1: one of few mature and feasible technologies for large-scale production to produce fuels from forest-based biomass... EPC 2:...in principle willing to provide customary EPC wrap around guarantees... EPC 3:...LSTK service with customary wrap around guarantees... Oil major evaluation (10 experts): No showstoppers for industrial scale-up. Piteå demo plant producing methanol and DME using commercial processes. New Bern, 1 st gen, hrs Piteå, 2 nd gen, > hrs 12

13 Chemrec Status as per January 2013 Dec 31, 2012: Chemrec Piteå companies including pilot plants sold by Chemrec AB to LTU Holding AB, Jan 1, 2013: 17 pilot plant staff employed by LTU. Dec 31, 2012: License agreement between licensor Chemrec AB & HaldorTopsøe with LTU and LTU Holding. Technology rights stay with licensors. Jan 30, 2013: Consortium Agreement between parties involved in continued R&D. Chemrec has reduced staff awaiting long term stable regulations for advanced biofuels. Two Chemrec Stockholm staff temporarily on leave assigned to LTU Continued operation of the plants as part of LTU Biosyngas Program Black Liquor Atomizing medium Oxygen GASIFIER QUENCH C.W BFW GAS COOLER BFW Raw Syngas LP- St. White/Green Liquor MP-Steam SULPHUR ABSORPTION CLEAN SYNGAS FLARE 13 GREEN LIQUOR Weak Wash 1 Condensate 10/18/

14 14 LTU Biosyngas Centre Program

15 The BL to BioDME facility is the backbone in the LTU Biosyngas Centre Program Black Liquor BioDME O 2 DP-1 Plant Active C Abs WG Shift Amine Wash MeOH Synth. DME Synth. Distillation 15

16 LTU Biosyngas Program planned for WP2 Powder Torrefied Mtrl Pyrolysis oil Black Liquor WP6 Existing facilities DP-1 Plant ETC EF gasifier Cleaning WP4 Membranes bar > 100 bar Active C Abs Distillation Electrolysis WG Shift O 2 H 2 CO, H 2 Future development The Renewable Syngas Highway WP1 WP3 WP8 WP1 Pilot scale experiments WP2 Catalytic gasification WP3 Solid fuel gasification WP4 Novel syngas cleaning WP5 Catalytic conversion WP6 Containment materials WP7 Field tests WP8 Electrofuels and new concepts Fuel Cells Amine Wash CO 2 H 2 O MeOH Synth. Catalytic Process Development DME Synth. WP5 WP7 Others BioMeOH BioDME

17 Biomass flow from the forest can be increased adding pyrolysis oil to the black liquor flow TOMORROW (3) Logs Sawmill Wood Products Pulp Forest Pulp Wood Pulp Boiler Mill Combined Recovery and Fuel Generation Recovery Pulp Mill Forest Residues Fuel PO Production 1711/26/

18 WP2: Co-gasification BL/PO some impressions from the lab TGA and DTF lab activities during spring 2013 PO/BL mixing study Lignin precipitation needs to be considered above 20-25% PO No solids up to 20% PO 18

19 WP 2: Co-gasification of BL and PO offers many potential advantages All calculations thus assume that BL/PO can be gasified at same temperature as BL is today. Syngas Capacity increases about 100% by adding about 25% PO to the BL (by weight) Energy efficiency for gasification of added PO is 80-85% 400% 100% 350% 95% Production (syngas energy) 300% 250% 200% 150% 100% CGE 90% 85% 80% 75% 70% 65% 60% SF-LHV total H2CO total SF-LHV incr PO H2+CO incr PO 50% 55% 0% 0% 10% 20% 30% 40% 50% PO mix (part of total feed) 50% 0% 10% 20% 30% 40% 50% PO mix (part of total feed) Figure shows simulated increased production of final liquid biofuel product at fixed BL feed (i.e. for specific mill) Figure shows simulated gasifier energy efficiency of total mixed feed (solid) and for added PO (dashed) 19

20 WP 2: Key physical properties of PO/BL mixtures are promicing based on lab tests Viscosity Surface tension 1 000,00 100, Hanging droplet 100 C Shear viscosity(pa s) 10,00 1,00 0,10 0% 10% 20% 30% Surface tension (mn/m) Black liquor 10% pyrolysis oil 20% pyrolysis oil 30% pyrolysis oil 0,01 0, Shear rate(s-¹) Time (s) 20

21 WP2: Drop tube furnace experiments shows carbon conversion of PO/BL mixtures to be at least as good as BL alone Gasification ash microscopy (same magnification) BL at 1000 C BL at 1200 C PO(20) /BL(80) at 1000 C 21

22 WP2: Techno-economic study co-gasification - preliminary results indicate good profitability Case study: Rottneros Vallvik medium sized pulp mill good data from black liquor gasification study available Methanol plant alternatives evaluated Black liquor gasification ~200 MW BL Two co-gasification alternatives Extend methanol production by adding 25% and 50% pyrolysis oil Preliminary results indicate very favorable production cost for realistic pyrolysis oil price scenarios Economies of scale and high efficiency contribute 22

23 WP2: Techno-economic study co-gasification - preliminary results indicate good profitability Case study: small/medium sized pulp mill Methanol plant alternatives Black liquor gasification ~200 MW BL Two co-gasification alternatives 25% and 50% pyrolysis oil MeOH production cost [SEK/ton] Realistic price scenario Pessimistic price scenario MeOH production cost Case 25 Case PO cost [SEK/MWh] MeOH production cost First plant CAPEX@10% annuity Nth plant will give lower CAPEX MeOH price reference levels for low-blend into gasoline Pessimistic 6500 SEK/t based on 2011 Rotterdam EtOH price volume equivalence Realistic 8500 SEK/t projection based on RED and proposed ETD (biofuel mandate) 23

24 Potential to test Liquid Organic Waste (LOW) in the LTU Green Fuels Plant Powder Torrefied Mtrl Pyrolysis oil LOW ETC EF gasifier Cleaning Others BioMeOH Black Liquor Membranes bar > 100 bar BioDME DP-1 Plant Active C Abs WG Shift Amine Wash MeOH Synth. DME Synth. Distillation O 2 H 2 CO, H 2 Catalytic Process Development Existing facilities Electrolysis CO 2 Future development Fuel Cells 24 The Renewable Syngas Highway H 2 O

25 Fuels and chemicals from organic waste - liquefaction opens new opportunities?? Methanol DME Gasoline Diesel Liquefaction Gasification Synthesis Fertilizer 25

26 Fuels from organic waste - via liquefaction, gasification, synthesis Organic waste Liquefaction (alkali, heat) Catalytic gasification (oxygen, 1000 C) Catalytic synthesis Fuels or chemicals Recycled alkali Liquefied organic waste Synthesis gas Fertilizer 26

27 According to lab tests LOW liquids gasifies more easy than black liquor The analysis above is based on a first order model fitted to the gravimetric data TGA gasification rate 0,06 0,05 0,04 0,03 0,02 LOW1 LOW2 LOW3 LOW4 LOW1: Pig manure LOW2: Meat and bone meal LOW3: WWT sludge LOW4: Meat and bone meal BL LOW2 LOW3 LOW4 0,01 LOW Temperature 27

28 Feedstock study fuel from organic waste (IVL Swedish Environmental Research Institute) Selected feedstocks Liquid manure Chicken manure Slaughterhouse waste Biogas digestate WWT sludge Selected countries Potential Price Alternative use 28

29 Many potential applications of catalytic gasification long term research BL LOW Now: Black liquor Pyrolysis oil + black liquor (BL) PO Alk SB Potential future developments: Liquefied organic waste (LOW) Pyrolysis oil + liquefied organic waste Pyrolysis oil + Alkali salts (ALK) Solid biomass (SB) impregnated with alkali salts Alkali containing feedstock Alkali addition or co-gasifiaction 29

30 Future Energy System Scenarios The need to look at the total cost of a new energy system An example from the marine sector An example from the HD vehicle sector 30

31 From Page 2: (European Commission Proposal dated January 24, 2013) From Page 3, under leagel elements: 31

32 Well to Wheel Qualitative Cost / Complexity Analysis Typical comment: The fuel must comply with existing infrastructure Implying: Very complicated/costly with new infrastructure -Costs -Env. friendly FEEDSTOCK -Efficiency -Costs -Env. friendly CONVERSION -Costs -Env. friendly DISTRIBUTION (incl. to vehicle) -Efficiency -Costs -Env. friendly USE Cost / Complexity High Low Perspective of the energy companies Perspetive of the end user 32

33 Well to Wheel Qualitative Cost / Complexity Analysis DME: fossil / renewable Cost / Complexity High -Costs -Env. friendly FEEDSTOCK -Efficiency -Costs -Env. friendly CONVERSION -Costs -Env. friendly DISTRIBUTION (incl. to vehicle) -Efficiency -Costs -Env. friendly USE Low 33

34 Well to Wheel Qualitative Cost / Complexity Analysis Methanol: fossil / renewable Cost / Complexity High -Costs -Env. friendly FEEDSTOCK -Efficiency -Costs -Env. friendly CONVERSION -Costs -Env. friendly DISTRIBUTION (incl. to vehicle) -Efficiency -Costs -Env. friendly USE Low 34

35 Well to Wheel Qualitative Cost / Complexity Analysis Cost / Complexity High -Costs -Env. friendly FEEDSTOCK Hydrogen -Efficiency -Costs -Env. friendly CONVERSION -Costs -Env. friendly DISTRIBUTION (incl. to vehicle) -Efficiency -Costs -Env. friendly USE Low 35

36 Well to Wheel Qualitative Cost / Complexity Analysis LNG: fossil / renewable Cost / Complexity High -Costs -Env. friendly FEEDSTOCK -Efficiency -Costs -Env. friendly CONVERSION -Costs -Env. friendly DISTRIBUTION (incl. to vehicle) -Efficiency -Costs -Env. friendly USE Low 36

37 Vision for a Methanol based Energy System 1. today Natural gas Methanol plants Fossil MeOH Via Ports Chemical industry 37

38 Vision for a Methanol based Energy System 2. + methanol as bunker fuel Natural gas Methanol plants Fossil MeOH Via Ports Ports 1 2 n nn M e t a n o l Chemical industry Marine sector 38

39 An example where an international agreement results in a fundamental rethink: IMO, International Maritime Organization, on new sulphur levels in bunker fuels coming into force 1 January

40 Background to the new sulphur emission legislation: The Shipping sector s part Fuel in the total sulphur emissions is very big 11% 15% 73% Road traffic Aviation Shipping 12% 15% CO2 74% 42% NOx 54% 73% SOx 27% 1% 40 Source: ScandiNAOSAB 5%

41 Upcoming regulations for Marine Fuels Sulphur level in bunker fuels must be < 0.1% by 2015 gnox/kwh IMO NOx Technical code NOx Tier II (Global) 12 NOx Tier III (NOx emission control areas) rpm 41 Source: ScandiNAOSAB

42 Price scenarios for Alternative Bunker Fuels Ex works: 25 /MWh METHANOL Freight: USD/t Port price: 34 /MWh GOTHENBURG Alongside ship: 37 /MWh Well head: 10 /MWh 4 USD/MMBtu Ex works: 20 /MWh LNG FOB Zeebrugge: 30 /MWh GOTHENBURG Alongside ship: 46 /MWh Brent Crud landed: 47 /MWh 110 USD/bbl CRUDE OIL BASED FUELS MGO Port price: 57 /MWh GOTHENBURG HFO Port price: 38 /MWh 42 Source : Stena and Chemrec

43 Stena Methanol Pilot Project, Gotheburg Item LNG Methanol Handebility Storage Cost of main storage in port Feedership R dam - Gbg Liquid at -163 C, Atmosperic P Cryogenic handling; Space demanding 500 MSEK *) 50MSEK *) Liquid at ambient T and P Can be stored as bunker oil 500 MSEK *) 0 MSEK; With today s methanol tankers Bunker vessel 300 MESK *) 15 MSEK *) Rebuilt of ship, total 25 MW 250 MSEK 100 MSEK Total cost diff 1550 MSEK / 180 MEUR 165 MSEK / 20 MEUR 43 Source: Stena *) First time investment

44 Stena Germaica is planned to run on Methanol starting early 2015 Fuel: tons of MeOH / year 44 Source: Stena

45 Stena s Global Methanol Project (Initial timeplan for converting Stena s SECA fleet) Methanol consumption Will approach 1 million tons By 2018 Source: STENA and Effship 45

46 Vision for a Methanol based Energy System 3. + methanol to DME for HD trucks and industry Natural gas Methanol plants Fossil MeOH Via Ports Ports 1 2 n nn Energy usage DME DME M e t a n o l Distribution Chemical industry Marine sector Heavy transports 46

47 Extended Volvo field test 8 trucks, to (1000 Km / 1000 mi) Status Target June 2014 Total mileage 970 / / truck 200 / / 186 Total Field test mileage km Extended field test Date 47

48 Fuel Distribution Available technology modified for DME Safety regulations based on LPG ~200 k per filling station (+33% vs diesel) Easy to achieve Piteå 200 m 3 storage tank in Piteå 34 m 3 trailer Göteborg Stockholm Jönköping Four filling stations European Project BioDME 7th Framework Programme

49 Truck Application FH-787 Regional and local haul FH-711 long haul FH-842 local start/stop Volvo US DME truck Volvo through their US branch on June 6, 2013 decided to start commercial production of DME fuelled vehicles in the US in See various films at: The link includes: DME The future is here Gross weight Typical FC DME It is all around us (Min/Max/Avg) Diesel Equivalent and other material. (l /10 km & mi/gal)) Fuel consumption 14/26/21 ton 2.3 / /50/ ton 4.1 / /57/53 ton 6.1 / 3.8 See also: BioDME Video cf1f7lufpnc#t= European Project BioDME

50 Vision for a Methanol based Energy System 4. + providing system with renewable methanol from biomass Natural gas Biomass Pyrolysis Biomass Biomass Methanol plants Fossil MeOH Gasification Pulp mill MeOH Renewable MeOH Gasification of biomass MeOH Via Ports Ports 1 2 n nn Energy usage DME DME M e t a n o l Distribution Chemical industry Marine sector Heavy transports 50

51 Scenario for Introduction of DME as a Fuel in Sweden combined with fossil / renewable methanol DME Fuel Station BioMethanol Production DME Production DME Terminals Fossil MeOH Source : Chemrec

52 Scenario for Introduction of renewable / fossil DME and methanol in Europe MeOH bunker terminals/ DME Production Green Methanol Production Fossil Methanol Import 52 Source : Chemrec

53 Vision for a Methanol based Energy System 5. + providing system with renewable methanol from waste Natural gas Wastes Biomass Pyrolysis Biomass Biomass Methanol plants Fossil MeOH Liquefact. Nutrients Gasification MeOH Gasification Pulp mill MeOH Renewable MeOH Gasification of biomass MeOH Via Ports Ports 1 2 n nn Energy usage DME DME M e t a n o l Distribution Chemical industry Marine sector Heavy transports 53

54 Fuels from organic waste - via liquefaction, gasification, synthesis Organic waste Liquefaction (alkali, heat) Catalytic gasification (oxygen, 1000 C) Catalytic synthesis Fuels or chemicals Recycled alkali Liquefied organic waste Synthesis gas Fertilizer 54

55 Vision for a Methanol based Energy System 6. + providing system with renewable methanol solar and wind Natural gas Wastes Biomass CO 2, H 2 O, electr. Methanol plants Fossil MeOH Liquefact. Nutrients Pyrolysis Gasification Biomass MeOH Gasification Pulp mill MeOH Renewable MeOH Biomass Gasification of biomass MeOH SOEC* MeOH Via Ports Ports 1 2 n nn Energy usage DME DME M e t a n o l Distribution Chemical industry Marine sector Heavy transports 55

56 Sun Energy + CO 2 + H 2 O 56 Source : Stena Rederi

57 Maybe an interesting area to study for the Industrial Energy-Related Technologies and Systems Natural gas Wastes Biomass CO 2, H 2 O, electr. Methanol Industry Methanol plants Waste Management Industry Liquefact. Nutrients Gasification MeOH Gasification MeOH Pyrolysis Biomass Pulp mill Renewable MeOH Biomass Renewable Fuels Industry Gasification of biomass MeOH SOEC* MeOH Harbor Companies Ports 1 2 n nn Clean energy providers Via Ports DME DME M e t a n o l Distribution Chemical Industry 57 Shipping Companies Heavy transports HD Transport Industry

58 In Summary Part 1 Black liquor (BL) gasification works. Presence of alkali in the BL fuel results in complete carbon conversion at around 1000 deg C gasification temperature Laboratory work indicates that pyrolysis oil can be mixed with BL in significant amounts and that the catalytic effect still results in full carbon conversion at around 1000 deg C At a mix of 25% PO in 75% BL (dry basis) the syngas generation increases with about 100% Lab scale tests indicates that alkali supported gasification can be extended to other feedstocks such as manure, WWT sludge and meet and bone meal. 58

59 In summary Part 2 New SECA regulation demands new, low sulphur bunker fuels Methanol can become a cost effective bunker fuel alternative, cheaper and simpler to use than LNG Bunker Methanol infrastructure in harbors can stimulate DME production at optimum locations from a distribution point of view BioMethanol can be transported to the bunker Methanol infrastructure / DME production facilities and make the DME (and methanol) partly renewable It is cost effective and comparably simple to introduce a new fuel in the HD transport sector which uses about 25% of all transportation fuels (relates to Sweden but is similar in rest of Europe) 59

60 Research partners and sponsors from 2001 until today 60