What s in the Pipeline? New Projects and Opportunities

Size: px
Start display at page:

Download "What s in the Pipeline? New Projects and Opportunities"

Transcription

1 What s in the Pipeline? New Projects and Opportunities 1999 Gasification Technologies Conference October 18-20, 1999 The Westin St. Francis Hotel San Francisco, CA Neville Holt - EPRI

2 Gasification Markets Feedstock Market Sector Petroleum Residuals Biomass / Wastes Coal Power Co-generation Petroleum Refining Chemicals Forest Products Metals

3 Petroleum Residuals Heavy Oil / Pitch Older Units Worldwide for H2, NH3, CH3OH Now IGCC Polygeneration in Europe New Projects worldwide - particularly Asia-Pacific Petroleum Coke Production primarily U.S. - but ROW growing Current projects in U.S. - Motiva, Exxon, etc. New candidates internationally and in U.S. particularly in PADD districts 3, 5 and 2. Some competition from AFBC

4

5 Biomass and Wastes Biomass Projects in Europe Now Varnamo - Pressurized In Construction ARBRE, Bioelectrica Planned Brazil Atmospheric Pressure feeding is easier, but has efficiency penalty 10-15% gross power. Biomass IGCC generally needs feedstock Atmospheric Pressure preparation and drying to achieve gas HV suitable for GT Currently needs subsidy

6 Biomass and Wastes Parallel Gasification Locate Atmospheric fluidized bed gasifier adjacent to large boiler (coal, oil, or gas) Biomass energy contributes to more efficient cycle than in a smaller dedicated biomass plant. Pre-drying and gas cooling generally not required. Some emissions (NOx, SO2) reduction. No increase of CO. Biomass ash is kept separate from coal ash. Plants in Finland (Lahti), Italy (Biococomb) and the Netherlands (Amercentrale) Simpler and lower cost than IGCC. Foster Wheeler estimates MWth of biofuels / Wastes are available in Europe within 50 km of most power plants.

7 Co-Gasification Briquetting or Pelletizing of solid wastes often with coal for use in fixed bed Lurgi or BGL gasifiers Now practised at SVZ in Germany Planned for Global Energy IGCC projects in Fife, Scotland and Kentucky, U.S. Liquid or plastic wastes can be gasified in entrained flow gasifiers (now at SVZ with MGP, Texaco at El Dorado, KS and planned in the Netherlands.)

8 Forest Products IGCC Initiative Background Size of U.S. Forest Products Industry Aging of Tomlinson black liquor boilers Initiative Three demonstration projects planned Black liquor and wastewood (bark, etc.) gasification could turn typical paper mill from being a net importer to an exporter of power

9 Gasification Opportunities in the Metallurgical Industries Pressure in OECD countries to reduce coke oven emissions. New technologies emerging, including direct reduction with syngas, that can eliminate use of blast furnaces and the need for coke. Midrex Lurgi COREX - a blast furnace type coal gasifier using gas for direct reduction

10 Coal Based IGCC Natural gas dominates new generation in OECD. Higher financing costs for IGCC than PC or AFBC. Several projects planned. All will require subsidy to proceed. United States Global Energy in Kentucky. Possibly co-production. 3 DOE IGCC co-production studies (Waste Management, Dynegy and Texaco NG) Europe RJB/National Power, Scottish Power, BNFL, Fife Vresova (HT Winkler) Sulcis - Sottocarbo, etc. Asia Japan, China-Yantai, South Korea

11 Sectors of Coal Consumption in China: 1990, 1997 and 2005 Sector 1990 % 1997 % 2005 % Power Industrial Boilers Metallurgy Chemicals Residential Construction Materials Locomotive Others, losses, etc Total

12 Coal Gasification in China ~ 8% (105 million tons/year) of Chinese coal is gasified ~ 75 million tons is used by Chemical Industry, mainly for fertilizer. ~ 8000 gasifiers. ~ 4000 coal gasifiers and water gas sets. Mostly medium and small scale atmospheric fixed bed gasifiers using coke, sized lump anthracite and non-caking coals, anthracite briquettes. ~ 20 Lurgi dry ash, 9 U Gas, 6 Texaco gasifiers. Also 8 Texaco and 5 Shell heavy oil gasifiers. All used in non-power sector for ammonia, fuel gas, towns gas, methanol and oxo-chemicals manufacture. Majority of equipment for non-power sector can be supplied from Chinese manufacturers. Not yet so for IGCC. Non-power sector in China is major market opportunity for Coal Gasification.

13 Coal Gasification in China With increasing mechanization of mining the proportion of fine coal is increasing. Need gasification technologies for fine coal (fluid bed, entrained). Much of the coal is high ash (average 25-30%) and of high ash fusion temperature. Viable pressurized fluid bed gasifier much needed. (Also needed for high ash coals of India, South Africa, etc. and low rank coals worldwide.)

14 Coal Gasification in China Now 852 small (15-60 kt/a) 92% coal based 55 medium ( kt/a) 70% coal based 28 large (> 300 kt/a) 12% coal based Total ammonia production 30 Mt/a, ~ 60% coal based Small and medium plants with water gas sets using prepare feedstocks coke and anthracite briquettes. Ammonia fertilizer industry is major opportunity for modern coal gasification. Coal usage per ton ammonia could be halved and emission reduced by orders of magnitude. Coproduction of power, steam and chemicals is another major opportunity being explored.

15 United States - Coal Currently power produced is 56% coal + 20% nuclear Increasing dependence on older smaller units Repowering to maintain strategic use of sites Environmental pressures from EPA (NOx, SOx, PM 2.5, Hg etc.) on old plants. New coal plant opportunity as old coal and nuclear close. Desire to keep coal to maintain strategically diverse fuel security. Challenge to IGCC from Ultrasupercritical PC plants. Japan has many 1000 MW 28 MPa / 600ºC / 600ºC plants on line and in construction. Also in Europe.

16 Coal Plant Size US Coal Plants % Number of Units % 15% 10% 5% Percentage of Capacity >1000 Size Range (Mw) 0%

17 Coal Plant Age US Coal Power Plant Distribution Number of Units >60 51 to to to to to 20 6 to 10 0 to 5 Age in Years Category

18 United States - Coal IGCC plant costs will continue to be reduced. The IGCC polygeneration plants based on petroleum residuals will further improve experience, confidence and reduce costs. Introduction of G, H and ATS gas turbines and advanced cycles will improve efficiency and reduce costs. Some incentives for FOK (e.g. CURC) may still be needed. Integration of low cost quench gasification with compressed air storage via the CASH humidified air cycle is attractive cycling unit with continuous gasification operation. If emissions (externalities), including CO2 are monetized IGCC will gain. Longer term coal based polygeneration will become increasingly important.