INDIANA CENTER FOR COAL TECHNOLOGY RESEARCH SYNFUEL PARK FOR NSA CRANE FEASIBILITY STUDY. Marty W. Irwin, Brian H. Bowen

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1 INDIANA CENTER FOR COAL TECHNOLOGY RESEARCH SYNFUEL PARK FOR NSA CRANE FEASIBILITY STUDY Marty W. Irwin, Brian H. Bowen The Energy Center at Discovery Park Purdue University CCTR, Potter Center, 500 Central Drive West Lafayette, IN PURDUE NORTH CENTRAL WESTVILLE, INDIANA June 5th 2007 FT fuels 1

2 SYNFUEL PARK FOR NSA CRANE FEASIBILITY REPORT CONTRIBUTORS Center for Coal Technology Research, CCTR Energy Center at Discovery Park, Purdue University Marty W. Irwin, Brian H. Bowen, Devendra Canchi State Utility Forecasting Group, SUFG Energy Center at Discovery Park, Purdue University Paul V. Preckel, Zuwei Yu, Akiner Tuzuner, Sisi Guo, Sika G. Dofonsou Indiana Geological Survey, IGS Indiana University John A. Rupp, John C. Steinmetz, Fritz H. Hieb, Maria Mastalerz 2

3 NAVAL SUPPORT ACTIVITY CRANE FEASIBILITY STUDY 7 Week Feasibility Study Source: FT at NSA Crane, Feasibility Report, May 31,

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5 LAUNCHING CTL DOD & BUFF Purdue University December 2 Workshop,

6 William E. Harrison III, National Aerospace Fuels Research Complex, attends CCTR meeting, August 30, 2006 Security of Fuel Supplies Source: 6

7 William E. Harrison III, National Aerospace Fuels Research Complex, attends CCTR C meeting, August 30, 2006 Rising Costs of Fuel Supplies Source: 7

8 COAL-TO-LIQUID, CTL TECHNOLOGY = {[1] Coal-To-SynGas} + {[2] FT Process} = GASIFIER + REACTOR The FT Process (Fischer-Tropsch) is a catalyzed chemical reaction in which carbon monoxide and hydrogen are converted into liquid hydrocarbons of various forms. Typical catalysts used are based on iron and cobalt [1] Coal to SynGas [2]SynGas to FT fuel Note: ATR, Autothermal Reformer 8

9 CRITERIA FOR NSA CRANE FEASIBILITY STUDY CTL FACILITY 10 Criteria 1 Coal & natural gas availability for 10,000 B/D FT fuel 2 CO 2 sequestration potential 3 Land/real-estate requirements 4 Transportation infrastructure (rail, roads & waterways) 5 Electricity transmission lines & available power 6 Gas & oil pipelines 7 Water requirements & resources 8 Waste disposal/environmental issues 9 Labor force requirements/availability 10 Economic impact B/D = Barrels per Day FT fuels 9

10 1 COAL AVAILABILITY KNOX Crane MARTIN Indiana s Coal Resources COAL BED Danville Springfield Indiana TOTAL Original Billion Tons Available Billion Tons Knox County 1,407 Million Tons Gibson County 2,107 Million Tons GIBSON 10

11 1 COAL AVAILABILITY NSA Crane 100 sq miles MARTIN County County & Mining Type Danville & Springfield Beds Daviess Gibson Greene Knox Pike Posey Sullivan Vanderburgh Vermillion Vigo Warwick TOTAL D & S Beds Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Surface Underground Available Million Tons , , , , ,

12 2 CO 2 SEQUESTRATION POTENTIAL 12

13 2 CO 2 SEQUESTRATION POTENTIAL Mt Simon Sandstone IGS considered a 25 mile buffer zone around Crane Deep saline aquifers have the greatest potential for sequestering the CO 2 IGS has details of oil fields giving sequestration and EOR capabilities 13

14 3 LAND/REAL-ESTATE REQUIREMENTS NSA Crane has 63,000 acres in Martin County For a 10,000 B/D facility main plant needs about 120 acres which includes 50 MW of power export Crane 25 mile buffer zone Slag/ash landfill & coal storage needs for 30 years will be < 1000 acres About 1% of Crane area will be required 14

15 4 TRANSPORTATION INFRASTRUCTURE Elnora Crane Bedford From Elnora to Bedford is the main rail track that passes through the NSA Crane MARTIN From Jeffersonville This track can carry coal from the neighboring counties The rail track from Jeffersonville on the River Ohio will bring in the large equipment 15

16 4 TRANSPORTATION INFRASTRUCTURE Coal supplies - the Indiana Rail Road (80% owned by CSX) owns the Bedford to Elnora trackage exclusively - purchased this route from Canadian Pacific Railway (Soo Line) in They are the only company which operates that right-of-way Gasifiers and FT reactors are large and heavy. Jeffboat LLC in Jeffersonville is capable of handling large equipment needs Finished products (FT diesel, military jet fuels, naptha, sulfur) can be shipped out by rail and truck. Waterways are the most cost effective 16

17 4 RAIL TRANSPORTATION If 1 Ton of coal produces about 2.0 B/D of FT fuel then 10,000 B/D of FT needs 1.8 MTons of coal/year (If 1 Ton gives 1.5 B/D FT fuel then 2.5 MTons coal/year) 1.8 MTons of coal will need to be moved by railcar. A railcar holds 131 Tons of coal, compared to 25 tons of coal per truck 5,000 Tons/day of coal will require 38 railcars/day Either 200 trucks or just one train per day 17

18 5 ELECTRICITY TRANSMISSION LINES & AVAILABLE POWER Crane Crane is connected to the grid through two substations - owned by the Hoosier Energy System and the Duke Energy Indiana System. There are three 345 kv lines in close proximity to Crane 18

19 6 NATURAL GAS PIPELINES Crane is connected to natural gas via a 16 inch pipeline owned by Texas Gas Trans Corp. Current loading of pipeline is only about 30% & therefore sufficient for an increased demand from Crane with FT production 19

20 7 WATER RESOURCES There are a number of water sources available: East Fork of White River (mean value of 5000 cu ft/sec at Shoals), Lake Greenwood (3 Billion gallons), or West Fork of White River. Less than 2% of river capacity needed 20

21 7 WATER RESOURCES & REQUIREMENTS 10,000 B/D of FT fuel requires 150,000 B/D of water Average water requirement = 73 cu ft/sec Mean flow along the East Fork River at Shoals is about 5,000 cu ft/sec 21

22 8 WASTE DISPOSAL & ENVIRONMENTAL ISSUES Precise composition of wastes from a CTL plant with power co-production is unknown. No CTL plant currently exists in the U.S. Wabash IGCC plant meets all requirements Major advantage of gasification is the relative ease of separating CO 2 and other chemicals before entering the atmosphere. Slag is inert and saleable Under provision of the Military Base Protection Act (MBPA, IN General Assembly 2005) permitting at Crane can be fast-tracked 1 MTon = 1 Million Tons 22

23 9 LABOR FORCE REQUIREMENTS & AVAILABILITY The next generation of coal technologies will require a workforce trained in quite a different set of skills than those they now possess. Coal gasification plants & FT units are two technologies that set Coal-To-Liquid technology apart from existing commercial facilities 1.8 Million Tons of coal will require about 150 direct mine jobs & 760 secondary/ancillary jobs. The Crane FT plant for 10,000 B/D could have a total direct employment of up to 144 jobs (WMPI s FT plant, PA, is developing 5,000B/D plant) 23

24 10 ECONOMIC IMPACT The overall economic impact of mining 1.8 Million Tons of extra coal is over $108 Million per year The estimated value of 10,000 B/D production (daily production of over 5,500 barrels of diesel, 4,400 barrels of naphtha, 1,200 MWh & 180 Tons of elemental sulfur) exceeds $266 Million per year 24

25 10 ECONOMIC IMPACT STATE PLAN The Hoosier Homegrown Energy Plan commits Indiana to using new & emerging technologies to convert Indiana coal, corn, soy & other renewable sources to energy & reduce Indiana s dependency upon imports. The NSA Crane CTL project exemplifies the meaning of Indiana s Strategic Energy Plan, using local resources to meet local, regional & national energy needs 25

26 NSA CRANE & FT FUELS WHAT NEXT Generally good technical grounds to consider construction of an FT facility at NSA Crane There are challenges but no insurmountable problems that deter the interests for an in-depth technical and financial evaluation Feasibility Report goes onto the CCTR website later this week 26