Economic and Environmental Barriers to Implementing Coal-to-Liquid Energy Clean Energy Workshop

Transcription

1 Economic and Environmental Barriers to Implementing Coal-to-Liquid Energy 2014 Clean Energy Workshop Richard D. Boardman, Ph.D. Chem. Eng. Manager, Energy Systems Integration September 14-15, 2014 Taiyuan, Shanxi Province

2 Work Sponsored by Wyoming State

3 Wyoming Coal Deposits Strippable Coal (million of short tons) * Powder River Basin 570,000 Greater Green River 2,700 Hanna-Carbon 7,200 * USGS, 1999 Resource Assessment 2

4 Major Barriers to implementing CLT Environmental Risks of Pollutant Emissions and Water Withdrawals Technical Risk Associated with Syngas Cleanup and Fuels Synthesis Custom Equipment Supply Chain and Limited Construction Experience Operational Control Risks Associated with Complex, Highly Co- Dependent Plant Operations Economic Pro-forma Uncertainty Relative to Conventional Oil Capital Investment Competition with Subsidized Energy Sources 3

5 Coal Gasification and Conversion to Fuels & Chemicals Indirect Liquid Fuel Synthesis (CTL & C/MTG) Methane Synthesis Liquids Tail gas SNG Transportation Fuels & Chemical Feedstock Gas Pipeline CO 2 for EOR or Sequestration CO 2 CO H 2 Ammonia Synthesis Combined Gas & Turbines NH 3 Ammonium Nitrate Clean Electrical Power Syngas Cleanup & Conditioning N 2 Coal & Biomass Gasification (Syngas Production) CO, H 2, CO 2 O 2 Air Separation O 2 and N 2 Air 4

6 Coal to Methanol & Methanol to Gasoline Process Air Cryogenic ASU N2 Ar Coal Condenser Purge Gas Coal Drying O2 Compressor Rectisol Process + Sulfur Guard Beds (H2S, CO2 Removal) CO, H2 Compression Pulverizer Coal (Dried & Sized) (jacket) Entrained Flow Gasifier Slag (jacket) Syngas Syngas Cooler Syngas Cyclone Recycle Quench Gas Water Scrubber Sour Shift Reactors Shift Bypass Water Activated Carbon Bed (optional) SCOT Process Claus Tail Gas Elemental Sulfur Byproduct CO2 Byproduct H2S, CO2 Claus Process SCOT Offgas Pump Compression CO2 Compression TEG Dehydration Unit MeOH Reactor DME Reactor MTG Reactor E-329 Fly Ash Black Water System Soot Tail Gas Gas Cooler Separation Finished Gasoline Stack Separation Blending Exhaust Gas Condensing and Saturated Turbines HRSG Superheated Exhaust Gas Air Tail Gas C2 Fuel Gas DeEthanizer Column LPG Depropanizer Column A Gasoline Column Light Gasoline LPG Depropanizer Hydro- Treater Column B Generator Generated via Heat Recovery Gas Turbine Generator Treated Gasoline Heavy Gasoline Pump Hydrogen 5

7 Coal to Methanol & Methanol to Gasoline Process Coal Air Coal Drying Pulverizer Cryogenic ASU O2 Slag N2 Ar Syngas Compressor Gasification Coal (Dried & Sized) Entrained Flow Syngas and Gasifier Hydrogen Recycle Cooler Quench (jacket) (jacket) Gas Adjustment Syngas Cyclone Water Scrubber Sour Shift Reactors Shift Bypass Purge Gas Condenser Rectisol Process + Sulfur Guard Beds CO, Syngas H2 (H2S, CO2 Removal) Activated Carbon Bed (optional) H2S, CO2 CO2 Cleanup: Claus Claus Tail Compression Process Sulfur Gas & SCOT SCOT Process Offgas 2 TEG Dehydration Unit Elemental Sulfur Byproduct Separation CO2 Byproduct for EOR Compression Pump Water Compression MeOH Reactor Methonal, Oxygenate DME Reactor DME, Synthesis MTG Reactor E-329 Fly Ash Black Water System Soot Tail Gas Gas Cooler Separation Finished Gasoline Stack Exhaust Gas HRSG Power Generation Air Exhaust Condensing and Saturated Superheated Gas Turbines (CO 2 emissions) Separation Tail Gas C2 Fuel Gas DeEthanizer Column Blending Light LPG LPG Motor Gasoline Depropanizer Gasoline Depropanizer Column A Column Hydro- Treater Column B Production Generator Generated via Heat Recovery Gas Turbine Generator Treated Gasoline Heavy Gasoline Pump Hydrogen 6

8 Coal Conversion to Fuels by Fischer-Tropsch Process 7

9 Coal Conversion to Fuels by Fischer-Tropsch Process Gasification and Hydrogen Adjustment Syngas Cleanup: Sulfur & CO 2 Separation for EOR Fuels Synthesis (Co Catalyst) Power Generation (CO 2 emissions) 8

10 INL Submodels Based on Test Results of Commercial Gasifiers GE-CVX (Texaco) EGAS (Destec) Siemens (Noell) Fixed-Bed (Lurgi) Shell (SGP) Uhde (Prenflow) GTI (U-Gas, fluid bed) Developing gasifiers: KBR Transport Rocketdyne GE dry feed 9

11 F-T: Anderson-Schulz-Flory Product Distribution F-T models in FORTRAN Fixed-Bed or Slurry-Bubble-Column reactor models Based on catalyst performance data given chain growth probability and product selectivity data

12 Methanol Conversion to Alcohols & Oxygentates Methanol CO 2 +3H 2 CH 3 OH + H2O CO + 2H2 CH 3 OH Di-Methyl Ether 2CH 3 OH CH 3 OCH 3 + H 2 O (DME) Gasoline nch 3 OCH 3 C x H y O z + nh 2 O (ZSM-5 catalytic MTG) Developed by ExxonMobil Methanol and MTG Reactor Submodels calibrated to published data

13 Simplified Chilled Methanol Gas Cleanup Modeled in FORTRAN with custom thermodynamic data H 2 S and CO 2 selectively separated Problem: CO 2 stripping column modification necessary to achieve CO 2 purity for liquefaction (97.5% attained) Solution: Strip CO 2 with steam and less N 2 Impact: Increases methanol reflux chiller electrical duty 12

14 Aspen Process Modeling Results for Wyoming Coal Coal / FT Coal / MTG Coal Feed Rate (ton/day) 36,300 31,100 Liquid Product Summary 49,000 bbl/day 60,400 bbl/day Diesel (bbl/day) 35,200 - Gasoline (bbl/day) - 52,200 Naphtha(bbl/day) 12,700 - LPG (bbl/day) 2,000 8,200 Electrical Power (MW) (+) 103 (-) 462 (Export Required) (Import Required) Total CO 2 Produced (MMSCFD) Capturable CO 2 (MMSCFD) CO 2 Emitted (MMSCFD) Water Summary (plus power plant emissions) Water Consumed (gpm) 23,700 15,900 Potential Water Recovery from Coal Drying (gpm) 8,000 1,200

15 Economic Pro Forma Example: Methanol to Fuels Methanol/MGT process capital equipment costs Scaled and factored cost adjusted $5.6 Billion Total Capital Investment (TCI) $92,000 per barrel installed Greater than 50% of capital cost is associated with gasification and syngas clean-up unit operations 14

16 Economic Pro Forma Example: Methanol to Fuels Price Consumed Annual Cost Direct Costs Materials Coal $/ton 31,124 ton/day $105,069,447 Fly Ash Disposal $/ton 648 ton/day $3,122,064 Rectisol Solvent 1.10 $/gal 4,628 gal/day $1,760,861 Makeup H 2 O Treatment $/k-gal 28,027 k-gal/day $237,120 Wastewater Treatment 1.41 $/k-gal 8,138 k-gal/day $3,701,736 Claus Catalyst $/ft ft 3 /day $36,969 SCOT Catalyst 0.16 $/ft ft 3 /day $40 Carbon, Hg Guard Bed 5.56 $/lb 35 lb/day $62,960 Zinc Oxide 300 $/ft ft 3 /day $100,397 WGS Catalyst 825 $/ft lb/day $102,483,481 Iron Sorbent (Zeolite) $/lb 43 lb/day $140,356 Methanol Catalyst 750 $/ft ft 3 /day $0 DME Catalyst 840 $/ft ft 3 /day $99,209 MTG Catalyst $/lb lb/day $71,182 HGT Catalyst 2500 $/ft ft 3 /day $41,436,215 CO 2 Sequestration $/ton 30,794 ton/day $1,047,014 Utilities Electricity 1.67 $/kw-d 436,000 kw $283,924,432 Water 0.05 $/k-gal 27,735 k-gal/day $414,109 Royalties $1,050,694 Labor and Maintenance $234,219,262 Indirect Costs Overhead $152,242,520 Insurance and Taxes $84,657,564 Manufacturing Costs $1,170,730,270 Coal feed costs range from 10-30% of CTL costs Catalysts range from 15-25% of CTL operating costs Electricity costs are 25% of manufacturing costs 75% of electrical power duty is associated with oxygen supply, gas cleaning, and CO 2 processing (compression) 15

17 $1.20 $1.25 $1.35 $1.38 $1.40 $1.45 $1.50 $1.60 $1.70 $1.80 $1.90 $2.00 $2.10 $2.20 $2.30 $2.40 $2.50 Financial Sensitivity CO 2 emissions offset cost PRB Coal Natural Gas ($/MMBtu) CO2 Sequestration Internal Rate of Return (%) 7 20 Total Capital Investment -30 $50/ton $100/ton 9.00 CO 2 penalty risks are a significant barrier to CTL Capacity Factor (%) Debt to Equity Ratio Plant Life (yrs) /45 20 Loan Period (yrs) Natural Gas ~$.50/gal taxes ~$0.15/gal distrib. ~$0.15 profit = $0.80 add at pump 16

18 Life-Cycle Greenhouse Gas Emissions Assessment Emissions from production, transportation, conversion, and end use 17

19 Life-Cycle Assessment (LCA) of Greenhouse Gas Emissions CTL CTL + 30% BM CTL + CCS CTL + NG + CCS Relative CO 2 LCA Footprint (50,000 bbl/day FT Plant) Compared to LCA for conventional petroleum refining fuels Problem: Life-Cycle CO 2 emissions exceed petroleum fuels baseline Solutions: 1. Use more biomass 2. Capture CO 2 in flue gas discharge 3. Replace water-gas-shift 4. Use clean-power hybrid systems Impact: May increase cost depending on capital and operating cost tradeoffs

20 Clean Hydrogen Production Alternatives Hydrogen through hydrocarbon conversion Reforming CH 4 + H ½ O 2 = CO 2 + 3H 2 Shift Reaction CO + H 2 0 = CO 2 + H 2 Water splitting using electrical and/or clean (nuclear) sensible heat: Electrolysis Thermal/Chemical Electro/Thermal (e.g. plasma) Electro/Chemical 19

21 Methane Reforming versus Nuclear-Assisted High Temperature Electrolysis Nuclear reactor provides clean electricity and heat for high temperature steam electrolysis Oxygen co-product is used for gasification of coal 20

22 Coal to Liquids Integration with Nuclear-Electrolysis Plant Reduces Life-Cycle GHG emissions to minor combustion sources only, such as local fired-heaters 70% reduction in coal use Reduces number of gasifiers and gas cleanup capital and operating costs 21

23 Alternative Solution: Thermal-Chemical Hydrogen Production 1,500 C Flame T Heat Transfer GE-CVX (Texaco) US Patent No. 8,366,902 B2 for HTSE (Idaho National Lab) Various thermal-chemical looping schemes are possible Syngas cooler design change require 22

24 Small Modular Reactor Study Results Small Modular Reactor Technology Pressurized Light Water Reactors in the near term High Temperature Reactors in the future >$12 per MMBtu in China ~$6.0 per MMBtu projected for U.S. Nuclear produced hydrogen is economically feasible for China with new nuclear reactors U.S. market depends on time-of-use electricity price 23

25 Clean Coal Synfuels Renewable: Hybrid with Grid CO 2 to EOR Nuclear SMR Possible Power Converter ELECTICAL GRID Coal Power Plant Wind Farm Oxy-fire Electricity Fuels O2 High T. Electrolysis H2 Fuels Synthesis Water Coal and Biomass Firms renewables (wind and solar) on the electricity grid Optimizes capital equipment utilization factor Transfers low GHG energy into transportation fuels 24

26 Plant Design, Fabrication, Construction, &Operation Heavy wall plate rolling Stress relieving Highway and rail limitations 14-ft diameter in U.S. Photos: High Country Fabrication, Inc. Casper, Wyoming Problem: 1 st -of-kind plants involve expensive pressure vessels engineering, fabrication & operational certainty risks Solution: Modular equipment fabrication and supply chain; Stream-line engineering, permitting and construction Impact: Reduces cost; ensures high on-line capacity factors 25

27 RDD&D Partnerships Investment State Infrastructure Authority * Industry Investment * U.S. DOE Labs * Chinese Academy of Sciences Product to Market Industrial Deployment Manufacturing Supply Chain RDD&D Work- Force * University Research * Computational Simulations * Applied R&D * Pilot Demonstrations * Deployment * 26

28 Opportunity Requires Vision and Strategy Short-Term Profits Driven Plan Insurance against short-term oil shortages caused by economic disruption and oil supply interdiction Strategic Holistic Energy Plan Long range energy planning for production of domestically derived replacement fuels, and hybrid systems with all energy resources OR Term Insurance Whole Life Insurance 27