The commercialisation of UCG

Transcription

1 The commercialisation of UCG Dr Dermot Roddy Chief Technology Officer Five-Quarter Energy Holdings Ltd 1

2 Scale of the UK opportunity c. 10,000 billion tonnes of sub-sea coal in UK sector of the North Sea [J L Knight et al., Coal thickness distributions on the UK continental shelf, Geological Society, London, Special Publications 1996, v. 109, pp ] 2

3 Scale of the global opportunity Shale Tight gas Coal 3

4 Which sector to target? Gas-to-Wire Gas-to-Liquid Fuel Gas-to-Chemicals Source: NREL/TP

5 Business niche? Owner-operator of a few assets? International licensor of technology? Roving consultancy? Some combination of the above? A diversity of business models with different implications. 5

6 Right syngas for chosen sector? Source: G R Couch, Underground Coal Gasification, IEA Clean Coal Centre

7 The right coal for the job? 7

8 The right coal for the job? Some coals are easier to deal with than others. Have you got good separation from sensitive aquifers? 8

9 Where is your competitive edge? (and is it protected?) Why should someone invest several 100m in your company? More gas with less drilling? Better syngas quality? Lower gas-processing costs? A more environmentally robust proposition? A more reliable process? Confidence in commercial capability? 9

10 Why do demonstrator projects? To burn a lot of money??? To show that you have the right coal for the job. To demonstrate that your competitive edge is real. To gather data needed for designing the commercial-scale plant. To win the confidence of investors, customers, regulators & communities. NB: Raising money to build a plant that is not designed to make money is hard work! 10

11 Scale of investment & risk RIG W A T E R G A S S H I F T Oxygen Steam AIR SEPARATION UNIT Steam BOILER SELEXOL Raw Syngas CLAUS GAS S S U E L P P A H Cleansed syngas R U R SCRUBBER A T O R WATER GAS SHIFT CO2 C O M P R E S S O R Hydrogen/CO Methane CO 2 MERCURY Gasification Raw Syngas 11

12 US shale gas is now six times lower cost than Asia, leading to a marked difference in Ethylene cost ($316/ton vs. $1,717/ton) US competitive advantage in products manufacture 12

13 Abbreviations: AN: Abbreviations: Acrylonitrile ADN: Adiponitrile HMDA: Hexamethylenediamine ACN: LPG: Liquid Acetonitrile Petroleum Gas ACH: Acetone Cyanohydrin HCN: Hydrogen Cyanide EO/EG: Ethylene Oxide/ Ethylene Glycols EOD: MMA: Methyl Ethylene Methacrylate Oxide Derivatives PET: Polyethylene Terephthalate PTA: Purified Pure Terephthalic Acid Acid KA: Ketone Alcohol AA: Adipic Acid Key: PTA DuPontSA Teesside Chemicals Cluster North Sea Crude Oil Imported Naphtha Imported Feeds Petroplus Distillation Teesside Petroplus Chemicals Cluster Product Company LPG & Naphtha Olefins (cracker) Sabic Aromatics Sabic Olefins (cracker) Huntsman Aromatics Huntsman Adiponitrile Propylene Propylene Natural Gas Ethylene Ethylene Ethylene Propylene Paraxylene Cyclohexane Cyclohexane Cyclohexane ADN EO/EG Dow Ethylene Glycol Hydrofining Acrylonitrile AN BASF HCN BASF EO/EG Dow Olefin exports PTA Artenius Paraxylene Higher Alcohols KA 4) DuPont Invista HMDA 5) DuPont Invista Ethylene Oxide Adiponitrile ADN BASF Byproduct Export ACN 1) HCN BP Imported Acetone EO EO EO EG Diesel blending Petroplus ACH ACH 2) Lucite By Product 3) HCN BASF Ethoxylates Croda Uniqema & Shell Ethoxylates Ethylene ShellOxide Derivatives EOD Dow Dow PET PTA DuPontSA Artenius Adipic AAAcid DuPont Invista HMDA BASF MMA Lucite Surfactants Croda PET DuPontSA Nylon 6,6 DuPont Invista Acrylics Olefins Chain Aromatics Chain Polyester Nylon North Sea Crude Natural Gas Refinery 6) Petroplus Feedstock, inputs various Natural gas various Ammonia Terra Ammonia Terra Benzene Benzene Nitric Acid Terra Acrylics Lucite Nitrobenzene Huntsman Nitram Terra Aniline Aniline Huntsman Huntsman Polyurethanes Ammonia Chain Fertiliser

14 Gas-to-wire Mode of running? Power Purchase Agreement? Clean Power Plant. Artist impression 14

15 Similar concept to IGCC-CCS Syngas Feedstock Block Flow Diagram 15

16 Getting the PR right Noise & Nuisance Aquifers Seismicity Gas explosions Wildfire Metal and organic substances Pollution migration and leaks Expect more intense questioning at larger scale 16

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18 Greenhouse gas issues What % of CO 2 is captured from raw syngas? Starting when? Where to store it? When? Who is accountable for CO 2 storage facilities? Mandatory or voluntary? GHG emissions arising in the gas processing plant itself? Carbon footprint of your utility supplies eg electricity for the ASU? GHG emissions during construction? Fate of CO 2 arising from use of the gases that you sell to others? Some may wish to draw the boundary much wider than your facility and compare with alternative routes to various end products from different raw materials 18

19 Products from CO 2 19

20 SHE management topics (part of licence-to-operate) Air separation unit Auditing Borehole design Borehole integrity Borehole integrity testing COMAH case Commissioning Control of plant modifications Control of drilling Decommissioning of boreholes and cavities Demonstrator unit Dispensations Effluent and waste treatment Emergency preparedness Emergency shutdown of DGW reaction Engineering/maintenance procedures Engineering standards Environmental impact of drilling Fire protection Gaseous emissions Groundwater contamination Hazard studies and design reviews Inspection and testing of pressure vessels Instrumented protection systems Isolation of equipment for maintenance Job handover processes Layers of protection analysis (LOPA) Legislation Liabilities Mitigating operational risks during DGW operations Monitoring Multilayer controls Natural gas and methane Occupational health Operating procedures Overhauls Pipelines Pressure relief Prior to drilling Regulatory authorities Reporting SHE culture Site selection Startup and shutdown procedures Storing CO 2 in DGW cavities Subsidence Syngas Tar formation and recovery Technical safety case Transport logistics Well engineering 20

21 The commercialisation of UCG Dr Dermot Roddy Chief Technology Officer Five-Quarter Energy Holdings Ltd 21