Innovative Process Technology for Refining Lignite R&D needs

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Innovative Process Technology for Refining Lignite R&D needs IBI Innovative Braunkohlen Integration in Mitteldeutschland (Innovative Lignite Integration in Middle Gemany) 17 th European Round Table on Coal Horizon 2020: best use of fossil fuels Brussels, June 6 th 2012 Prof. Mathias Seitz page: 1

Topics Opportunities for Refining Lignite - Stable price for lignite - Increasing national added value in Europe - Using carbon footprint method, lignite seems to be better than natural gas with regard to CO 2 equivalents - Value chains show higher efficiency than one technique alone - The conversion of lignite to chemicals enables reasonable integration of renewables Needs - Development of value chains with new technologies - Chemical parks as technology bases for testing (demonstration plants) - Guaranty in planning page: 2

In the Long Term only Lignite will be a price stable and available Feedstock Price in % Basis year 2000 Oil (crude + fuel) Natural gas Coal (import) Lignite (briquette + dust) 300 250 200 150 100 50 0 1994 1996 1998 2000 2002 2004 2006 2008 2010 Ref.: www.kohlenstatistik.de page: 3

Raw materials Costs of logistics Capital costs Fixed costs & catalysts Utilities & consumables Added Value Raw materials Costs of logistics Capital costs Fixed costs & catalysts Utilities & consumables Added Value Exporter Increasing National Added Value in Europe has an Effect on Growth and Employment Naphtha-Cracker Propylene Lignite to Olefines 20% Europe 100% 100% 80% 60% oil 40% 20% lignite 0% Ref.: BASF page: 4

CO 2 Emissions for the Production of Hydrogen from Lignite and Natural Gas The comparison is based on a 100 % conversion from lignite or natural gas to hydrogen. carbon footprint Earlier emissions Direct emissions benchmark lignite natural gas page: 5

ibi-value Chain and Projects Possible reduction from about 4.4 to < 2.1 kg CO 2 /kg hydrocarbon (using the whole value chain instead of only gasification) Deposit Exploration Mining Lignite Processing Extraction Low-Temperature Conversion Gasification Modelling Selective Mining Quality 1 Quality 2 Quality 3 Lignite is too precious just to be burnt! Innovative concepts for making the most of lignite. Lignite Processing Extraction Homogenisation Low-Temperature Conversion Conditioning Gasification Montan Waxes Hydrocarbons Syngas Feed and energy integration at the chemical site page: 6

Need to develop new integrated Technology Parks at Chemical Sites for testing Value Chains lignite media CO 5 m expert system deposit exploration 10 15 m demonstration plant mining 25 m demonstration plant lignite processing 30 m demonstration plant extraction gasification 5 10 MW 10 m HP-Pox smal-scale plant 10 m SNG*1 5 m 10 m gas conditioning power plant/ downstream H 2 2x 15 m small-scale plant catalytic cracking and reactive extraction 5 m oxo-synthesis CO 2 15 m coal liquefaction 105 m 55 m total sum 160 m * 1 Synthetic Natural Gas page: 7

lignite expert system deposit exploration olefines/ aromates plastics e.g. CO 2 -to-use e.g. polycarbonate demonstration plant mining CO 2 H 2 MTO methanol CO/H 2 H 2 CO 2 - electrochemistry/ electrolysis H 2 -regenerative electrolysis renewables demonstration plant lignite processing demonstration plant catalytic cracking and reactive extraction gasification/ polygeneration/ IGCC CO hydrocarbons oxo-synthesis carboxylation FT cracker aldehydes acetic acid waxes /fuels process heat chemical storage of renewables (e.g. methanol) excess energy (wind, solar) value chain for lignite flexible usage of chemicals CO 2 -integration and use of excess current page: 8

Future Needs for Research - Development of value chains in lignite conversion to enhance process efficiency (small-scale and demonstration plants) - Integration of renewable energies - Development of flexible power plants, gasifiers and downstream processes considering fluctuating renewable energies - Use of chemical parks as technology bases for investigating the synergies of value chains with integration of renewables (system of building blocks of small-scale and demonstration plants) - Development of value chains for coal to chemicals as a part of Horizon 2020 - Bundling of lignite research and development in the EU page: 9

Lignite is too precious just to be burnt! Innovative concepts for making the most of lignite. Thank you very much for your attention! page: 10

page: 11

The use of lignite for chemicals enables the integration of renewable energies! The use of lignite produces CO 2. Renewable energies show different capacities (wind, solar). How can excess energy be used? How can a lack of energy be balanced out? Examples: 1.) Inverse SOFC: Production of H 2 /CO from CO 2 and H 2 O Integration in methanol production Syngas chain and chemical usage is necessary 2.) Electrolysis of H 2 O: H 2 use for hydrogenation reactions e.g. aromatics to cycloalkanes 3.) Combined cycle produces electrical power if renewables are weak or it produces syngas in the case of a low electrical power demand Syngas chain and chemical usage is necessary page: 12