DEVELOPMENT OF CLEAN OIL SHALE PROCESSING TECHNOLOGY

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1 DEVELOPMENT OF CLEAN OIL SHALE PROCESSING TECHNOLOGY L. Douglas Smoot, Ralph L. Coates, Kent E. Hatfield CRE Energy, Inc. Provo, Utah ACERC ANNUAL CONFERENCE 24 February

2 INTRODUCTION PRESENTATION TOPICS WHO WE ARE TECHNOLOGY WE HAVE DEVELOPED R&D WORK COMPLETED R&D WORK PLANNED 2

3 WHO WE ARE CRE Energy, Inc. Established 2008 Spin-off from Combustion Resources, Inc. OIL SHALE WORK Combustion Resources DOE/SBIR Grants 2006, 2008 Utah Center of Excellence Grant 2008 Patents Pending Overall process 2008 Kiln design Phase II DOE, State COE grant proposals in process 3

4 OIL SHALE TEAM RALPH COATES President, PhD Chemical Engineer Invented, designed, operated 25 TPD Coal Gasifier Designed commercial cement kiln upgrade DOUGLAS SMOOT Vice President, PhD Chemical Engineer Emeritus Dean, BYU College of Engineering ( ) Founding Director, ACERC, secured $20+ millions in research grants Four books and 200+ publications on coal, energy, environment KENT HATFIELD Chief Engineer, Chemical Engineer 40 years process design, development, operations Vice President, Duetche Babcock / Ford, Bacon & Davis General manager, design and construction Larry Baxter Professor, Chemical Engineering, BYU ENGINEERS Craig Eatough PhD/ME, Scott Hill PhD/ChE, Robert Jackson MS/ME, Steven Eatough MS/ME 4

5 FACILITIES CR Energy Office/Lab Facility 20,000 sq ft Provo, Utah Coates Construction Shop 10,000 sq ft Salt Lake City, Utah 5

6 WORK COMPLETED- PAST FOUR YEARS First DOE/SBIR grant completed (March 2007) Second DOE/SBIR grant awarded (May 2008) Utah Center of Excellence Grant (May 2008) Shale oil process patent application (2008) Preliminary designs of 5 tpd pilot, 300 tpd demo, 6000 bpd commercial plants Organized new company, defined 4-phase program, initiated work (February 2008) Acquired license rights to BYU/Baxter CO 2 removal technology Constructed pilot-scale rotary kiln for Phase I work Completed firing and heating tests Rotary kiln patent application (2009) 6

7 CLEAN SHALE OIL SURFACE (C-S0S) PROCESS 2. Shale Oil Production 3. Shale Oil Upgrading 1. H 2 Production 7

8 Process Performance Characteristics Efficient, continuous plant operation Simple advanced design horizontal kiln Emissions compliant with regulations Minimal process water use Upgrading shale oil on-site - gasoline and diesel Near-complete recovery of CO 2 Low cost on-site hydrogen Compliant disposal of spent shale Process options; i.e. without gasifier or CO 2 removal 8

9 SHALE OIL PROCESS TECHNOLOGY DEVELOPMENT INDIRECT HEATING ABANDONED DUE TO LOW THROUGHPUT Retort Year Type Heating tons/day lbs/hr/ft 2 Reported Pumpherston 1927 Vertical Indirect Davidson 1961 Horizontal Indirect Paraho 1967 Vertical Direct Tosco 1975 Horizontal Recycle LLNL 1990 Vertical Recycle ATP 2003 Horizontal Combination Kiviter 2003 Vertical Direct Fushun 2006 Vertical Direct Petrosix 2006 Vertical Direct Galoter 2007 Horizontal Combination C-SOS 2008 Horizontal Indirect

10 OUR APPROACH EXTERNALLY FIRED SIMPLE ROTARY KILN CRE ENERGY TECHNOLOGY UTILIZES A ROTARY KILN FIRED INDIRECTLY WITH HYDROGEN 10

11 ADVANTAGES OF SIMPLE INDIRECT FIRED ROTARY KILNS Simple, horizontal, low fabrication cost Commercial manufacturers (without CRE Technology) CRE advanced design technology advantages High throughput rates Control of shale and oil product temperature Efficient oil shale fines processing CO 2 removal 11

12 TECHNOLOGY DEVELOPMENT PLAN PHASE I PILOT PLANT (Feb 08 June 09) Acquire, modify indirectly-fired rotary kiln Design and assemble kiln end of pilot plant Conduct kiln performance testing with inert solids Heat transfer rates Throughput capacity Particle-size dependence Hydrogen / natural gas firing behavior Demonstrate kiln process capabilities Complete design on shale oil processing system 12

13 COMPUTER MODEL PATENT-PENDING DESIGN TOOL KILN AXIAL ELEMENTS 13

14 COMPUTER MODEL APPROACH KILN RADIAL ELEMENTS 14

15 COMPUTER MODEL Steady-state, angular and axial dimensions Rate-controlled oil release from shale kerogen (Burnham, et al., 1996) Mass and energy balances inside kiln Carrier gas, shale kerogen, shale inerts, product oil and gas Shale bed heat transfer coefficient (Li, et al., 2005) f ( k, L, n, R, φ, a, k, X, d b w g ) 15

16 COMPUTATION RESULTS Demonstration size kiln (5 x 72 ), 226 tons/day 16

17 PHOTO OF USED KILN 17

18 PILOT PLANT KILN INCONEL TUBE View following modifications 18

19 EXPERIMENTAL WORK FIRING, HEATING TESTS MATERIALS Quartz size 0.4mm Quarry rock size 5 mm Kiln slope 1.1 degrees Kiln rotation rate 8 19 rpm Fill fraction 8% 9% Feed rates tons/day Firing rates thousand btu/hr 19

20 PILOT PLANT KILN View of run with 5 mm rock particles 20

21 EXPERIMENTAL RESULTS Comparison with model predictions 21

22 5 STEPS FOR CONTROL OF CO 2 1. INDIRECT-FIRED ROTARY KILN WITH H 2 /AIR COMBUSTION 2. CONTROLLED PEAK SHALE ORE KILN TEMPERATURES 3. NO RECOVERY OF SPENT SHALE CARBON 4. RECYCLE OIL SHALE OFF GASES TO GASIFIER 5. SHIFT GASIFIER SYNGAS TO H 2 /CO 2 AND CAPTURE CO 2 22

23 STEP 2. CARBONATE DECOMPOSITION Dolomite, (CaCO 3 MgCO 3 ), Calcite (CaCO 3 ), % s First Order Reaction Decomposition Rate Controlled dc dt carb = kc carb k = Aexp / A, E from data (Hanson, F.V., Univ. Utah, 2004) Time (t), Temp (T) from kiln code [ E RT] 23

24 STEP 2. CARBONATE DECOMPOSITION 63 Tons Ore/Day; 3/8 in. Ore 600 Li Model for Wall Heat Transfer Coefficient dp = 10 mm 63 tons/day % TEMP Ts, C Tg, C Tw,C % Reacted % Calcite Reacted % Dolomite Reacted Kiln Axial Position / Kiln Length 24

25 CO 2 EMISSION CONTROL tons CO 2 / ton shale UNCONTROLLED FINES PROCESSING C-SOS EMISSION CONTROL Step 1 Fire kiln with hydrogen 0 Step 2 Limit kiln temperature to 1050F Step 3 Do not burn carbon in spent shale 0 Step 4 Remove CO 2 from process streams Total % reduction C-SOS EMISSION CONTROL (Natural gas, no gasifier ) % reduction 25

26 Summary of Projected Water Uses in C-SOS Process Bbl water used/bbl shale oil produced Process Unit C-SOS Process 1 Conventional 2 1. Hydrogen for upgrading Hydrogen for plant fuel Plant cooling (Ref. 2,3) Steam generation and Direct process contact Total Full process (Figure 1): H 2 from coal for process and oil upgrading use 2 Natural gas production of hydrogen for upgrading; Natural gas for process heat; Water cooling; Normal direct contact water purge rate 26

27 Four-Phase Business Plan Phase I 5 tons/day kiln (nearly complete) Design, construct, operate kiln Verify design method Phase II 5 tons/day pilot plant with oil shale Modify kiln seals, discharge Construct oil recovery section Demonstrate overall process Phase III 150 tons/day demonstration plant Demonstrate process scale-up capability Phase IV tons/day commercial scale kiln Demonstrate process economics SEEK STRATEGIC PARTNERS 27

28 THANK YOU Acknowledgment Coauthors Coates and Hatfield U.S. Department of Energy/SBIR Grant (Chandra Nautiyal, NETL) State of Utah Center of Excellence Grant (Nicole Toomey Davis) Professor Larry Baxter, BYU Andrew Baxter, SES, LLC., Licensor Annual ACERC Conference 24 February