Feasibility Studies with the Aim of Developing a Bilateral Offset Credit Mechanism FY2011 Studies for Project Development and Organization Indonesia Sumatera SNG Project Feasibility Study of Low rank coal to SNG New Energy and Industrial Technology Development Organization (NEDO) Mitsubishi Heavy Industries, Ltd.
Indonesia Sumatera SNG Project Feasibility Study of Low rank coal to SNG 2012/5
1. Outline of Sumatera SNG Project Project Outline (1/1) SNG Plant 11.4M ton/yr ガス化炉 SGC Low rank coal Coal Supplier Pre- Drying Coal Gasifier (Oxygen blown) 石炭 石炭 リダクタ コンバスタ 4.55 Mton/yr Gas purification Synthesis gas SNG Synthesis CO 2 CO 2 Compression SNG Compression CO2 EOR/CCS 150MMSCFD SNG To existing pipeline
1. Outline of Sumatera SNG Project Project Outline (2/2) South Sumatera is promising plant location. SNG plant is constructed beside Low Rank Coal mine. SNG product is transported to West Java with exiting pipeline. Byproduct CO 2 is injected existing oil fields for EOR and CCS. Singapore Oil Plant SNG Plant SNG Plant JAKARTA CO2 Injection Low Rank Coal Mine NG Pipeline Oil CO2 CO2 JAKARTA EOR Concept
2. Outline of Feasibility Study Design of coal gasification and SNG synthesis process with Low Rank Coal Estimation of Plant Capital and Operating Cost Oxygen-blown gasification test with Indonesian Low Rank Coal at Gasification Pilot Plant in Nagasaki Japan Study of EOR and CCS opportunity of CO 2, byproduct SNG Plant Study of application for Bilateral Offset Credit Mechanism (BOCM)
3. Feasibility Study Result Coal Gasification Pilot Plant Test(1/2) Oxygen-blown Gasification test using Indonesian Low Rank Coal was conducted at 50ton per day class Pilot Plant in MHI s Nagasaki R&D center. Test results such as main syngas components and gasification efficiency, will be reflected to the design of Commercial class gasifier. Gasifier Coal Feeder Control Room Appearance of 50 t/d class Coal Gasification Pilot Plant
3. Feasibility Study Result Coal Gasification Pilot Plant Test(2/2) Coal gasification test was completed successfully. Slag is discharged very stably. No unburned carbon falls down from slag hole. Discharged Slag is grassy. (Good appearance) Discharged slag Combustor Slag hole camera Slag Water bathe camera slag hole camera Slag Water Bathe Gasifier Vessel water bathe camera
3. Feasibility Study Result Initial Screening Study of CO 2 /EOR - Initial CO 2 EOR/CCS Screening Study was completed. The study was screening of oil fields in South Sumatera Basin of 100km radius of SNG plant. - The study collected data of half of oil fields in the radius. 2/3 of reservoirs show CO 2 /EOR miscible flooding. - Detail study for CO 2 /EOR for one representative reservoir was conducted. The study of core sampling, slim tube test and geological simulation was carried out. Increment oil recovery is estimated to be 28.8%.
3. Feasibility Study Result BOCM / CO2 Emission Reduction Calculation (1/1) <Coal Gasification> ER y : 2,975,874 tco 2 /yr GHG emissions reductions at the Coal Gasification Plant in year y BE y : 10,582,242 tco 2 /yr Baseline emissions reductions in year y PE y : 7,606,368 tco 2 /yr Project emissions reductions in year y LE y : 0 tco 2 /yr Leakage in year y <CCS-EOR> ER y : 3,316,404 tco 2 /yr GHG emissions reductions in year y by CCS-EOR BE y : 4,560,270 tco 2 /yr Baseline emissions reductions in year y PE y : 1,243,866 tco 2 /yr Project emissions reductions in year y LE y : 0 tco 2 /yr Leakage in year y <Combined Result> ER y : 6,292,278 tco 2 /yr GHG emissions reductions by coal gasification and CCS-EOR in year y BE y : 10,582,242 tco 2 /yr Baseline emissions reductions in year y PE y : 4,289,964 tco 2 /yr Project emissions reductions in year y LE y : 0 tco 2 /yr Leakage in year y
3. Feasibility Study Result Sensitive Analysis (1/2) Base Condition for Sensitive Analysis of SNG Price Item Unit Price 1 EPC Plant Cost MM USD 2,920 ~ 3,650 (100% ~125%) 2 Coal Price $/ton 13 ~ 16 3 Target SNG Price $/MMBtu < 10 4 CO 2 Off Take Price $/ton 5 BOCM Credit Price $/ton 30 ~ 50 (25 years) 0 10 (10 years) 6 Finance Repayment %p.a./ Year 5% / 18 7 Return on Equity (ROE) % 12.5 8 Project Period Year 30 9 Availability % 90
3. Feasibility Study Result Sensitive Analysis (2/2) Coal Price CAPEX CO2 Price ( US$/ ton) SNG Price (US$ / MMBtu) Off-Take BOCM Credit Project Target @ 13 US$ / ton 3,302 MM US$ (EPC 2,920 + O/C 208 + IDC 174) EPC Cost High @ 13 US$ / ton 4,073 MM US$ (EPC 3,650 + O/C 208 + IDC 215) Coal Price High @ 16 US$ / ton 3,302 MM US$ (EPC 2,920 + O/C 208 + IDC 174) 30 10 10.0 30 10 12.1 30 10 10.8 CO 2 Credit Price Zero @ 13 US$ / ton 3,302 MM US$ (EPC 2,920 + O/C 208 + IDC 174) 30 0 10.8 CO2 Off Take Price High 1 @ 13 US$ / ton 3,302 MM US$ (EPC 2,920 + O/C 208 + IDC 174) 50 10 7.9 CO2 Off Take Price High 2 @ 13 US$ / ton 4,073 MM US$ (EPC 3,650 + O/C 208 + IDC 215) 50 10 10.0 O/C : Owner s Cost, IDC : Interest during Construction
4. Feasibility Study Summary The product price of SNG is 10 $/MMBtu calculated by sensitive analysis. This price is equivalent to import LNG CIF price. Coal gasification test was completed successfully. Slag was discharged very stable. No unburned carbon fell down from slag hole. Initial CO 2 EOR/CCS Screening Study around the potential low rank coal mine was completed. The study was screening of oil fields in South Sumatra Basin of 100km radius of SNG Plant. The study collected data of half of oil fields in the radius. 2/3 of reservoirs show CO 2 /EOR miscible flooding. The reduction potential volume of CO 2 was calculated and the methodology of CO 2 reduction for Indonesia SNG/EOR plant was summarized. Possible CO 2 Reduction volume in this plant will be about 6.29 M t/y.