Gasification: A Key Technology Platform for Western Canada s Coal and Oil Sands Industries

Transcription

1 Gasification: A Key Technology Platform for Western Canada s Coal and Oil Sands Industries Twenty-Fifth Annual International Pittsburgh Coal Conference Westin Conference Center September 20 October 2, 2008 Pittsburgh, PA USA Duke du Plessis Senior Advisor and Research Manager Alberta Energy Research Institute Alberta Finance and Enterprise Calgary, Alberta Canada

2 Alberta Energy Research Institute (AERI) (Energy Technology Arm of the Alberta Government) Mission: Enhance the development of clean energy resources through research, technology and innovation. Mandate: Position Alberta for the future in energy Add value to Alberta s energy resources Strategy: Invest in technology development projects with industry Partnerships & International collaboration Focus on Technology Platforms such as Gasification and CSS

3 Presentation Outline Drivers for gasification applications in Western Canada IGCC with CO 2 capture- Canadian Clean Power Coalition Gasification applications in oil sands developments Next generation gasifiers Conclusions

4 Fossil Reserves Concentrated in Western Canadian Sedimentary Basin Oil Gas Bitumen Coal 10 9 bbls cu.ft bbls 10 9 tonnes Remaining Reserves Annual Production Reserves/Production, years

5 Gasification Drivers, Opportunities & Challenges Drivers and Opportunities Large coal resources Electricity demand growth Aging coal plants Oil sands developments Natural gas replacement GHG regulations Proximity of EOR and sequestration sites Gasification of coal & oil sands residues offers sustainable solutions, BUT face significant challenges Capital cost Reliability CO 2 & water management Performance with low quality fuels Challenges

6 Oil Sands Growth: Production, Upgrading & Natural Gas Requirements Upgrading Capacity by 2015 Kbpd Existing Expansions New Total Declining Natural Gas Reserves Source: EUB Oil Sands Technology Road Map

7 Canadian Coal-based Electric Generating Capacity Anticipated Growth in IGCC MW Anticipated Growth in IGCC MW Other coal-based generation Other coal-based generation Coal-Fired Power Generation: A Perspective; National Energy Board, Canada, July 2008 Decline in national coal-based generation due to phasing out of coal plants in Ontario Anticipated growth in IGCC due to replacement of old coal plants in Alberta with IGCC including CO 2 capture

8 Alberta s CO 2 Challenge 2004 Emissions by Industry Type Power Plant 46% (49 Mt) Fertilizer 5% (5 Mt) Petroleum Refining 5% (6 Mt) Facilities Contributing < 5% of Emissions* 6% (6 Mt) Chemicals 6% (7 Mt) Source: Alberta Environment Oil Sands 18% (19 Mt) Heavy Oil 6% (7 Mt) Gas Plant 8% (9 Mt)

9 Gasification Feedstocks Feedstock Coals Oil Sands Residues Type Sub-bituminous Coal Beneficiated coals Petroleum Coke Asphaltenes Forestry waste Biomass Blended Feeds Agriculture waste Municipal Waste Above Combinations

10 Joint AERI-Industry Gasification Projects Coal-Based electric power generation with CO 2 capture Canadian Clean Power Coalition(CCPC)AERI/EPRI EPCOR/CCPC/AERI/Fed. Gov.FEED study Gasification of coal, coke and coal-coke blends for hydrogen production. Sherritt Gasification of oil sands residues to replace natural gas as a source of hydrogen and fuel gas Technology developers/licensors and oil sands companies Gasification of municipal waste demonstration to replace landfill City of Edmonton

11 The Canadian Clean Power Coalition (CCPC) An association of Canadian and U.S. coal and coal-fired electricity producers Goal: Demonstrate that coal-based electricity generation can effectively address all environmental issues projected in the future, including CO 2 Provide flexible fuel capability bituminous, subbituminous, lignite, and petroleum coke

12 Generating Clean Power from Coal Technology Options IGCC, Amine Scrubbing, Oxy-fuel Oxygen Coal IGCC Gasification Shift conversion CO2 Capture H 2 CO 2 to clean-up and compression Combined Cycle Plant Electricity Post-combustion Amine Scrubbing Air Coal Supercritical Boiler Flue Gas Steam Turbines Amine Scrubbing Electricity CO 2 to clean-up and compression Oxygen Coal Oxy-fuel Combustion Oxygen Fired Boiler Flue Gas Recycle,97% CO2 Steam Turbines CO2 Separation Electricity CO 2 to clean-up and compression

13 Coal Types Evaluated Type Moisture % AR Ash % AR Fixed Carbon, % Volatiles Dry, % Heating Value, MJ/kg Bituminous Subbituminous Lignite

14 CCPC Technologies Considered & Evaluated Gasification Technologies Phase 1- High & low rank coals GE Energy Shell ConocoPhillips British Gas Lurgi EAGLE High Temperature Winkler Sasol-Lurgi KBR Transport Gasifier Performance & Cost estimates Phase 2- Low rank coals Advanced slurry feed gasifier Advanced dry feed gasifier CO 2 Capture Technologies Gasification Amine scrubbing Oxyfuel combustion 90 % CO 2 Capture Other emission levels equivalent to NGCC plants

15 Phase II Subbituminous Coal Advanced Slurry Feed Entrained Flow Gasifier Advantages 2-stage entrained bed slagging gasifier Slurry feed Suitable for low rank coals High efficiency High pressure operation Disadvantages Early stage of development High water content of feed slurry Refractory lined Higher methane content (could limit CO 2 recovery) No water quench

16 Phase II: Lignite Siemens Gasifier Advantages Dry feed entrained bed slagging gasifier Cooling screen Water quench Developed for low rank coals Disadvantages Drying of coal Lack of operating experience at high pressure

17 CCPC Phases I and II Results : Cost of Electricity $/MWh Bituminous Subbituminous Lignite Cost Escalation 50 0 PC Reference Plant Amine Scrubbing Oxyfuel IGCC Reference IGCC Capture Ready IGCC Capture IGCC Phase I Results (2004) IGCC costs highly dependent on fuel quality: lignite vs subbituminous coal Low incremental cost of adding CO 2 capture to IGCC base plant Capital cost escalation impacts COE Uncertainty in economic comparisons: different maturity levels

18 New Technology Deployment Trajectory - Coal Power Plants Anticipated Cost of Full-Scale Application Research Development Demonstration Deployment Mature Technology Advanced USCPC Plants 760 C 620 C+ CO 2 Capture Source: Electric Power Research Institute APP April 2008 USCPC Plants Oxyfuel CO 2 Storage IGCC Plants Time 620 C+ 600 C Expected availability can increase with time/learning <600 C 565 C SCPC Plants Lower costs estimates for early stage technologies but error bands are higher Challenge comparing technologies at different levels of maturity

19 Conclusions IGCC with CO 2 Capture IGCC technology is commercially available for liquid residues, bituminous coal and pet coke. Technology enhancements needed to make it more competitive especially for low rank western coals. IGCC with CO 2 capture needs to be demonstrated at full scale to prove the designs and optimize performance Site specific FEED studies are needed to improve reliability of cost estimates. E.g. EPCOR project.

20 Existing Site at Genesee EPCOR FEED Study- IGCC with CO2 Capture Siemens Gasifier Conceptual Siting of 275 MW Plant Courtesy ECOR

21 EAST Bitumen Gasification Applications in Oil Sands Uprading & Refining SCO Refined Products Oil Producer SAGD Facility Oil Sand Formation Steam Injector X Steam Chamber Slots Steam Flow Oil Flow Imported Natural Gas SAGD Fuel Gas Steam CO 2 Coke Pitch Gasifier m illion to n n es X Imported Natural Gas Hydrogen Fuel Gas Coke production ~ 20,000 TPD; Future (2015): ~ 40,000 TPD

22 Canada s First Commercial Gasification Plant - Integrated with SAGD EAST Opti Nexen Long Lake Project Joint Opti-AERI Project Optimum CO 2 capture schemes for existing and future phases Shell Gasification Process CO2 Capture SAGD Facility SAGD Oil Producer Steam Injector Steam Chamber Slots Oil Sand Formation Steam Flow Oil Flow

23 Opti Long Lake Plant Long Lake Upgrader Facility (April 2007 One of four gasifier trains Largest Shell liquid fed gasifier trains in the world (when designed)

24 Next Generation Clean Bitumen Upgrading Technologies AERI-Industry program screened some 100 concepts for breakthrough potential Selected 8 technologies for stage-gated development in partnership with process developers and first commercial adopters Includes 3 gasification technologies

25 Pratt and Whitney-Rocketdyne (PWR) Gasifier Based on rocket engine design High mass flux Advanced materials Size and cost reduction Development path Stage-gated piloting, scale-up and demonstration Courtesy PWR

26 PWR Enabling Technologies Status of Pilot Facility Rapid Mix Burner Cooled Liner Spray Quench PWR Enabling Technology High Pressure Solids Feed Pump (Conceptual) Pilot Facility at GTI 8/15/08

27 Great Point Energy (GPE) Catalytic Gasification Features Converts petcoke/coal to methane (SNG) in single stage reactor Steam instead of oxygen saves cost Captures CO 2 Coal/Coke + Catalyst Courtesy Great Point Energy Development path Stage-gated piloting Scale-up and commercial demonstration

28 GPE Pilot Gasifier Courtesy: Great Point Energy Des Plaines, IL Leased facility from Gas Technologies Institute Operated successfully with PRB coal and pet coke Catalyst added, removed and recovered successfully

29 AlterNRG Plasma Gasification Features Based on Westinghouse plasma technology Feedstock flexibility including high solids Controlled slagging Intermediate size modular design Development Path Develop pressurized oxygen blown design Build and operate pilot unit

30 Other potential game changing advances Ion Transport Membrane for oxygen generation: Air Products and Chemical Inc. High pressure dry solids feed pumps: GE and PWR Enhanced CO 2 capture technologies

31 Conclusions Gasification for hydrogen and power generation with CO 2 capture offers potentially attractive solutions to sustainable development of Alberta s coal and oil sands resources. Need for on-going innovation to reduce costs and improve reliability and environmental impacts. Demonstration plants are needed to embark on the learning process- Learning by doing A number of pace-setting industry and government initiatives have been launched

32 The Oil Sands Model Learning by Doing Technology advances over 25+ years have reduced mined oil sands production costs from > US$30 to < $10/barrel Source: Syncrude Ltd.

33 AERI-City of Edmonton Municipal Waste Gasification Plant FEED ISLAND PRE-TREATMENT ISLAND GASIFICATION AND PRODUCT OPTIONS Waste Receiving Area 1 Synthesis Methanol Ethanol Biofuels Gasifier tonnes/day Shredder /screens Shredder Gas Clean- Up Clean Synthetic Gas Power Generation /screens Gasifier 2

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