Workshop on Gasification Technologies March 2-3, 2006 Tampa, Florida

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Workshop on Gasification Technologies March 2-3, 2006 Tampa, Florida

Getting off the Natural Gas Habit Coal to Nitrogen Fertilizers Neal Barkley, P.E. Plant Manager

Coolwater Demonstration Project

Coffeyville Nitrogen Plant

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

Block Flow Diagram BOC Gases ASU Nitrogen Ammonia Synthesis Hydrogen UAN Plant NH 3 Product UAN Product Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

BOC Gases Air Separation Unit

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Slag Sulfur Recovery H 2 S

Refinery Cokers

Coke Handling

Coke Conveyor and Rod Mill Structure

Main and Spare Gasifier Structures

Main Gasifier Vessel

Slag

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle CO Shift/ Gas Cooling Raw H 2 CO 2 Purification CO 2 Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

CO 2 Absorber

H2S Concentrator and Stripper

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Tessenderlo Kerley Sulfur Recovery H 2 S

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen CO2 Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 Purification CO2 Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle CO Shift/ Gas Cooling Raw H 2 CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

PSA Vessels

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis UAN Plant UAN Product Hydrogen Oxygen Quench Gasifier Pressure Swing Absorption (PSA) Syn-gas Scrubbing Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

Ammonia Synthesis and Refrigeration

Syn-gas and Refrigeration Compressors

Ammonia Storage Tank

Block Flow Diagram NH 3 Product ASU Nitrogen Ammonia Synthesis Ammonia UAN Plant UAN Product Oxygen Quench Gasifier Syn-gas Scrubbing Hydrogen Pressure Swing Absorption (PSA) Recycle Raw H 2 CO Shift/ Gas Cooling CO 2 CO 2 Purification Acid Gas Removal (Selexol) CO 2 Vent Coke Grinding Slurry Preparation Sulfur Recovery H 2 S

UAN Plant

UAN Rail Loading Facility

Operators at work in the control room

Nitrogen Fertilizer 101 Nitrogen is a basic nutrient for all plants. It does not build up in the soil, so it needs to be applied each growing season. Ammonia is the basic building block for nearly all fertilizers that contain nitrogen. In 2005, the US produced 8.7 million tons of ammonia. In 2005, the US consumed 14.7 million tons of ammonia. Nearly all was produced using natural gas!

Nitrogen Fertilizer 102 Ammonia cash cost build-up (example) Gas Cost $ 6 per mmbtu x Gas consumption 33 mmbtu per short ton = Gas cost $198 per short ton + other production costs $20 per ton = Total Cash Cost $218 per ton

Natural Gas Cost Since 1985 16 14 12 10 8 6 4 2 0

Nitrogen Fertilizer Market Global market Ammonia and urea are imported into the US US Production is in decline primarily due to low cost gas overseas Due to infrastructure limitations (pipelines, rail cars), domestic plants continue to operate when the demand (and price) support it. US Demand is set by acres of corn (primarily) and wheat (to a lesser extent).

US Coal Reserves

US Coal Prices 1985-2004 30 25 20 15 10 5 0

Coal or Coke to Ammonia Ammonia cash cost build-up (example) Coke or coal 1.1 tons per ton x Delivered cost $30 per ton coke Raw material cost $33 per ton Electricity 1,250 kwh per ton x Electricity cost $0.05 per kwh Total electricity $62.27 per ton

Coal or Coke to Ammonia Ammonia cash cost build-up (example) Raw material cost $33 per ton Total electricity $62.27 per ton Other direct costs $70 per ton Debt (SWAG) $50 per ton Total cost $215.27 per ton Equivalent of $5.90 per mmbtu natural gas

The future looks bright for Gasification!