Electromagnetic Conversion of Coal to Oil

Transcription

1 Electromagnetic Conversion of Coal to Oil H Quest, LLC: Wave Liquefaction World CTL Conference, Shanghai April 16, H Quest Partners, LP

2 Drawbacks of CTL and GTL technologies CTL GTL } Significant CO 2 emissions H/C molar ratio } High pressure/temperature processes } Viability requires high oil prices

3 Wave Liquefaction (WL ) technology combines CTL and GTL in a novel HC Liquefaction Process H/C molar ratio Transforms coal and methane into refinable synthetic crude in a single-stage continuous operation at atmospheric pressure

4 WL : New Generation of CTL technologies utilizing efficient electromagnetic energy transfer. COAL Natural Gas EM Waves EM Waves OIL Char/Ash

5 WL Highlights: Reactor Operating parameters } Low temperature } Atmospheric pressure } Short residence time } In-situ hydrogen from CH 4 } Uses As Received (wet) coal < 200 C ~ 1 bar 100 ms No CO 2

6 WL Highlights: Product Compared to DCL outputs } Higher API gravity } Lower viscosity } Reduced asphaltene content } Reduced aromatic content } > 1.2 H/C ratio

7 WL Highlights: Environment Environmental advantages } No CO 2 emissions from reactor 1 } Little to no water consumption 2 } Option to use renewable electricity } Option to use power generation with sequestrable CO 2 stream 1 For some coals, here may be minimal CO 2 emissions due to their oxygen content 2 Water used for cooling only

8 WL vs ICL and DCL technologies Comparison of operating parameters Pressure Temperature ICL DCL WL ICL DCL WL

9 WL vs ICL and DCL technologies Thermal efficiency ICL DCL WL

10 WL vs ICL and DCL technologies Comparison of operating parameters Yield CO 2 production ICL DCL WL ICL DCL WL 1 There may be minimal CO 2 emissions for some coals due to oxygen content of the raw coal only

11 WL vs ICL and DCL technologies CAPEX comparison ICL DCL WL

12 WL Process Diagram: Purchased Power Recycle Gas Gas Recovery Treatment Minimal Light Gases Natural Gas Coal Coal Prep (grinding & milling) WL Reactor Product Recovery Fractionation Oil to Refinery Catalyst Recycle Solid Separation Char Slurry for sale Purchased power + -

13 WL Process Diagram: Power Using Char Recycle Gas Gas Recovery Treatment Minimal Light Gases Natural Gas Coal Coal Prep (grinding & milling) WL Reactor Product Recovery Fractionation Oil to Refinery Catalyst Sequestration-ready CO2 + - Power Generation ash Recycle Solid Separation Char Slurry

14 WL : Coals Tested Tests of the technology were performed with lowvolatile, high-volatile and subbituminous coals. Low-volatile bituminous Pocahontas #3 High-volatile bituminous Illinois #6 Russian high-vitrinite Pittsburgh #8 Sub- Bituminous Wyodak (PRB) Yields (on dry, ash-free basis) Gas Oil < 6% by weight typically > 60% by weight or up to 4 bbl/short ton Evidence of simultaneous liquefaction, alkylation, and hydrogenation reactions

15 Projected Economics Process modeled in AspenPlus Comparison benchmark: commercial CMSL process 1 CMSL WL Coal Feed, $/short ton $13 $13 Natural Gas Feed, $/MMBTU $4 $4 Coal AR, TPSD 35,568 23,964 Nat. Gas, MMBTU/hr C5+ Product, BPSD 63,324 63,324 Total Liquid Product, BPSD 64,969 63,894 CAPEX, $MM CAPEX, $K/bbl C5+ Liquid $68.4 $36.4 C5+ Liquid, $/BBL $53 $31 $/BBL levelized $64 $38 1 SRI International (SRI) Highly Dispersed Catalysts for Coal Liquefaction, Phase 1 Final Report 22 March 1995, Contract No. DE-AC22-91PC91039, Menlo Park, California.

16 Projected Economics CMSL data based on Black Thunder coal (Wyoming) WL data based on similar Powder River Basin coal (Wyoming) CMSL WL Coal Feed, $/short ton $13 $13 1 Natural Gas Feed, $/MMBTU $4 $4 2 Coal AR, TPSD 35,568 23,964 Nat. Gas, MMBTU/hr C5+ Product, BPSD 63,324 63,324 Total Liquid Product, BPSD 64,969 63,894 CAPEX, $MM CAPEX, $K/bbl C5+ Liquid $68.4 $36.4 C5+ Liquid, $/BBL $53 $31 $/BBL levelized $64 $38 1 EIA reports average price of $10.25 /short ton in Mar 2013 ( 2 EIA reports average price of $4 / MMBTU in Mar 2013 (

17 Projected Economics For same output, coal and natural gas consumption is 33% less CMSL WL Coal Feed, $/short ton $13 $13 Natural Gas Feed, $/MMBTU $4 $4 Coal AR, TPSD 35,568 23,964 Nat. Gas, MMBTU/hr C5+ Product, BPSD 63,324 63,324 Total Liquid Product, BPSD 64,969 63,894 CAPEX, $MM CAPEX, $K/bbl C5+ Liquid $68.4 $36.4 C5+ Liquid, $/BBL $53 $31 $/BBL levelized $64 $38 33% less 33% less same

18 Projected Economics These reductions translate into sharply (by almost 50%) reduced capital expenditures CMSL WL Coal Feed, $/short ton $13 $13 Natural Gas Feed, $/MMBTU $4 $4 Coal AR, TPSD 35,568 23,964 Nat. Gas, MMBTU/hr C5+ Product, BPSD 63,324 63,324 Total Liquid Product, BPSD 64,969 63,894 CAPEX, $MM CAPEX, $K/bbl C5+ Liquid $68.4 $36.4 C5+ Liquid, $/BBL $53 $31 $/BBL levelized $64 $38 47% less 47% less

19 Projected Economics and total costs per barrel (including 12% IRR) CMSL WL Coal Feed, $/short ton $13 $13 Natural Gas Feed, $/MMBTU $4 $4 Coal AR, TPSD 35,568 23,964 Nat. Gas, MMBTU/hr C5+ Product, BPSD 63,324 63,324 Total Liquid Product, BPSD 64,969 63,894 CAPEX, $MM CAPEX, $K/bbl C5+ Liquid $68.4 $36.4 C5+ Liquid, $/BBL $53 $31 $/BBL levelized $64 $38 40% less 40% less

20 WL Solution Gas and coal } cheap to produce, but expensive to transport } conventional liquefaction processes are environmentally harmful and economically costly WL technology promises to transform gas and coal into synthetic crude with improved economics and reduced environmental impact.

21 WL Opportunities: Coal Bed Methane China s coal bed methane resources } 9.14 TCM 1 at depths of 300m 1000m Methane emissions by China s coal mines } billion m 3 in 2000 } 60% of the world total 1. WL technology may provide a path to productive and profitable utilization of currently uneconomical or stranded gas resources 1 Zhang Binchuan, Huang Shengchu, Hu Yuhong, Liu Wenge, Liu Xin, China Coal Information Institute, 2004 International Coalbed Methane Symposium

22 WL Opportunities: Australian Lignites At a glance: } High (48%-70%) water content 1 } Latrobe Valley reserves: 65 bln tonnes 1 } Current cost: ~ $5-$15 USD / short ton } Low efficiency power generation with high CO 2 emissions 1 } Coal-seam methane reserves in Australia: 33 tcf 2 WL technology may be the key to profitable development of Australian brown coal and coalseam methane deposits

23 Wave Liquefaction Summary Process } Conversion of coal and methane into synthetic crude } Direct application of electromagnetic energies } Continuous at atmospheric pressure and low temperatures } 50%-70% (daf) liquid yield in a single stage Advantages } Sharply reduced operating and capital costs } Smaller environmental footprint } Product constitutes refinable synthetic crude

24 Wave Liquefaction Technology H Quest Partners, LP (Managed by H Quest, LLC) Has exclusive rights to the Wave Liquefaction technology owned by Battelle. Factual data in this presentation has been extracted from work done at PNNL by Battelle. H Quest, LLC is wholly responsible for its presentation and interpretation. (See disclaimer following)

25 Disclaimer } } } Battelle manages PNNL. The original work on the development of WL was performed under contract for the Defense Advanced Research Projects Agency (DARPA). Recently, H Quest Partners, LP through its Managing Partner, H Quest, LLC (H Quest) has contracted to fund the development of this WL technology and, through that program, has the exclusive option to licence it. (WL technology includes both existing and pending patents.) Information contained in this document results from active and on-going research and development activities and is by its nature incomplete, subject to change and high risk. Neither Battelle nor the United States Department of Energy endorses any particular technology or company, and makes no representation or warranty whatsoever as to the commercial or technical viability, potential markets or future prospects for any technology or company. The reader is cautioned that any decision made with respect to any technology or company should not be made in sole reliance on any information provided in this document. Battelle is not selling, offering for sale, or assisting in the solicitation of offers to purchase any securities of any company, and nothing said or done by Battelle shall be construed as such. The English version of this presentation prevails over any translation, authorized or not.

26 Electromagnetic Conversion of Coal to Oil Questions?