Mk Plus The Next Generation Lurgi FBDB Gasification. Leipzig, 22/05/2012 Dr. Henrik Timmermann

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Mk Plus The Next Generation Lurgi FBDB Gasification Leipzig, 22/05/2012 Dr. Henrik Timmermann

Outline Air Liquide E&C Perspective Next Generation Lurgi FBDB TM Gasification Lurgi FBDB Clean Conversion Vision Next Generation Lurgi FBDB Mk Plus Reduced Capex, Opex and Environmental Footprint Gas Liquor Recovery: Zero Liquid Discharge Conclusion 2 22/05/2012

AIR LIQUIDE: CLEAN CONVERSION WITH LURGI FBDB 3 22/05/2012

Lurgi FBDB in Our Clean Conversion Vision Raw Material Syngas Syngas Purification Processes Final Products Residue Natural Gas Coal Gasification FBDB/MPG (CO 2 ) Rectisol Stage 1 PSA / Membrane CO Cold Box Chemical Synthesis DME/MTP Methanol Synthesis CO 2 H 2 for Refineries SMRs Chemicals Biomass (Sulfur) Rectisol Stage 1 N 2 Wash + H 2 Fertilizers Reforming Methanation SNG CO Shift Turbine Power Fischer-Tropsch Synfuels AL E&C Capability ASU Sulfur Recovery Syngas for DRI Sulfur 4 22/05/2012

Lurgi FBDB Coal-to-X Syngas N 2 (Fuel Gas) Air Liquide ASU Lurgi MPG Gasification Lurgi OxyClaus Sulfur Recovery Elemental Sulfur Coal CO 2 Preparation HP Steam Lurgi FBDB Gasification Lurgi CO Shift and Gas Cooling Lurgi Rectisol Gas Purification Air Liquide LNW Unit Lurgi Methanation Ammonia Syngas Syngas SNG Ash HP Steam (Rectisol Naphtha) Lurgi GLS Process Lurgi Phenosolvan & Lurgi CLL Gas Liquor Recovery and Water Treatment (Phenols) (Clear Tar / Oil) Liquid Ammonia ZLD Water Reuse 5 22/05/2012

Lurgi FBDB Gasification Gasifier top 1 0.9 0.8 Drying Coal Gas 0.7 0.6 Devolatilization 0.5 0.4 0.3 Gasification Combustion 0.2 0.1 Gasifier bottom 0 Ash 0 300 600 900 1200 1500 Temperature [ C] 6 22/05/2012

Lurgi FBDB Operating Range Coal suitability, complex function of Lump coal typically 5 50 mm with < 5% above and below Ash fluid temperature > 1200 C under oxidizing conditions Combined total ash and moisture < 50% Thermal and mechanical strength Caking in range of proven proprietary internals wt-% Ash 50 45 40 35 30 25 20 15 10 5 Angul JSPL Secunda Sasol Shanxi Tianji Henan Yima North Dakota DGC 5 8 10 15 20 25 30 35 40 45 50 wt-% Moisture Green area shows proven operating range of Lurgi FBDB TM All ranks of coal proven in operation Lignite, sub-bituminous, bituminous, anthracite 7 22/05/2012

THE NEXT GENERATION LURGI FBDB Mk Plus 8 22/05/2012

Rationale for New Development SNG and Other Growth Markets in China and Worldwide: Low rank coal capitalization Domain of Lurgi FBDB TM Gasification Environmental stewardship Major focus of Lurgi Lurgi s FBDB TM Technology and Downstream Units updated for: Competitive pricing, e.g. SNG versus Natural Gas Reduction of CAPEX Improvement of OPEX Reduction of Environmental Impact: Gas liquor treatment and water re-use (Zero Liquid Discharge) Fugitive emissions Carbon dioxide emissions mitigation 9 22/05/2012

Lurgi s New Gasification Module Mk Plus Targets of the development Improved economics by increasing capacity of Lurgi FBDB TM module Improved environmental footprint (water, carbon dioxide) of Lurgi FBDB TM Remaining safe, robust and easy to operate Using proven technology and equipment in a new and innovative way Controlled development rather as evolution Minimum risk Commercialized without building demonstration plant Risk Mk 4 Target zone for new gasification module Gain by Change 10 22/05/2012

Lurgi FBDBTM Mk Plus Development Basis Starting point: Mark 4 from Jindal Steel & Power Ltd. (JSPL) Angul project Step 1 Lessons learned from 30 years of Sasol (Secunda, RSA) and DGC (North Dakota, USA) Latest JSPL (Angul, India) 40 barg design pressure Increase of the diameter Step 2 Capacity Gain Definition point: Mark 5 Sasolburg 1980 s and 1990 s Rich references of Mk4 101 gasifiers globally Continuous technology improvement 1970s-2010) Quantify influence of diameter increase Latest MK4 (Design pressure: 40barg) Design improvement based on experience from Mk5 Continuous technology improvement for MK4 MK4 MK5 Increase of the operating pressure Step 3 Quantify benefits of high pressure gasification Capacity, efficiency, environmental footprint, direct methane gain Optimum design pressure: 60 barg for capex and scale-up risk Process validation from extensive Ruhr 100 large pilot tests Gasification database under high pressure and some special design features MK+-Lurgi new FBDB Gasifier 11 22/05/2012 Ruhr-100 pilot plant maximum operation pressure: 100bar)

Lurgi FBDBTM Mk Plus Development Basis Starting point: Mark 4 from Jindal Steel & Power Ltd. (JSPL) Angul project Step 1 Lessons learned from 30 years of Sasol (Secunda, RSA) and DGC (North Dakota, USA) Latest JSPL (Angul, India) 40 barg design pressure Increase of the diameter Step 2 Capacity Gain Definition point: Mark 5 Sasolburg 1980 s and 1990 s Rich references of Mk4 101 gasifiers globally Continuous technology improvement 1970s-2010) Quantify influence of diameter increase Latest MK4 (Design pressure: 40barg) Design improvement based on experience from Mk5 Continuous technology improvement for MK4 MK4 MK5 Increase of the operating pressure Step 3 Quantify benefits of high pressure gasification Capacity, efficiency, environmental footprint, direct methane gain Optimum design pressure: 60 barg for capex and scale-up risk Process validation from extensive Ruhr 100 large pilot tests Gasification database under high pressure and some special design features MK+-Lurgi new FBDB Gasifier 12 22/05/2012 Ruhr-100 pilot plant maximum operation pressure: 100bar)

The Lurgi FBDB Gasifier LURGI FBDB Mark 4 Gasifier Outside diameter: 4.13 m Height: 12.5 m Design pressure: 40 barg Raw Gas Loading, dry: up to 60000 Nm³/h Secunda, DGC, Tianji, Yima, Angul LURGI FBDB Mk Plus Gasifier Outside diameter: 5.05 m Height: 17.0 m Design pressure: 60 barg Raw Gas Loading, dry: up to 120000 Nm³/h Next Generation 1950s - 2010 2011 - > 13 22/05/2012

The Lurgi FBDB Gasifier Sketch Twin Coal Lock Reactor Gas Off-take Wash Cooler Rotating Grate Ash Lock 14 22/05/2012

Twin Coal Lock System Mk4 coal lock limited capacity insufficient for the factor 2 in coal rate required Operating frequency not practical beyond 6 cycles/hour Increased Mk4 coal lock size has negative impact on tightness and lifetime of the larger cones High risk option, therefore not pursued Twin locks system implemented Standard proven design of Mk4 coal lock Standard proven design of Mk4 cone valves Standard proven operating cycle frequency Limited increase in the thickness of the lock Saves 2/3 of the pressurization gas Modified coal feed arrangement References Ruhr 100 large pilot FBDB gasifier, Dorsten (Germany) 1979-1985 Slagging gasifier (70 barg design pressure), Westfield (Scotland) 1991 SVZ (32 barg design pressure), Schwarze Pumpe (Germany) 2000-2007 15 22/05/2012

Effect of the Mk Plus on undisclosed project Impact of pressure specific figures per ton dry, ash free Coal data Moisture, ar 8% Ash, ad 20% Volatiles, daf 43% FC, daf 57% AFT 1500 C CH4 Nm3 / tdaf Mk4 Mk Plus + 20.3% 223 268 CO2 Nm3 / tdaf Mk4 Mk Plus HP Steam kg / tdaf Mk4 Mk Plus - 4.5% 574 548-7.6% 1181 1091 CH4 + (CO+H2)/4 Mk4 Mk Plus Nm3 / tdaf O2 Nm3/ tdaf Mk4 Mk Plus - 9% 290 264 GL to unit 6 kg / tdaf Mk4 Mk Plus + 2.4% 524 537 HHV dry gas MJ / tdaf Mk4 Mk Plus - 15% 983 835 + 0.9% 25471 25709 16 22/05/2012

Lurgi FBDB Benefits of Mk Plus - Opex Higher efficiency & reduced cost 10 % decrease of the SNG cost by example Carbon conversion > 99% Thermal efficiency (exiting gasifier) > 94% Cold gas efficiency > 87% Lower coal consumption Lower oxygen consumption per t of coal Reduced steam consumption per t of coal Higher methane yield per t of coal Reduced gross tar yield per t of coal Increased oil and naphtha yield per t of coal Increased gasification rate per gasifier x-area Gain on compression of SNG 17 22/05/2012

Lurgi FBDB Benefits of Mk Plus - Capex Number of Lurgi FBDB TM modules Example, only 20 Mk Plus for 4 BCMY SNG (compare to 40 Mark4) Reduction of over 300 equipment numbers for a 4 BCMY SNG project Reduction of plot size Reduction of capex ~20% across the Lurgi FBDB TM process chain Savings in downstream units CO Shift & Rectisol Reduced capex due to higher operating pressure and process effects Reduced capex due to gas composition improvement Reduced refrigeration requirement (more efficient high pressure absorption) Reduced methane Loss (optimized process scheme, co-absorption) Gas Liquor Separation, Phenosolvan, Lurgi CLL TM and Waste Water Treatment Reduced capex due to less gas liquor Methanation Reduced capex due to higher operating pressure Reduced recycle because of higher methane content in feed gas Smaller reactor as half of the feed is methane (CH 4 ) 18 22/05/2012

LURGI FBDBTM GASIFICATION ISLAND GAS LIQUOR RECOVERY 19 22/05/2012

From Gas Liquor to Zero Liquid Discharge Full chain of purification of the water Coal HP Steam Lurgi FBDB Gasification CO Shift & Gas Cooling Raw syngas Acid Gas CO2, H2S, HCN Organics Lurgi GLS Process Gas Liquor Phenosolvan Phenols Recovery Dephenolized Gas Liquor Lurgi CLL NH 3 Recovery Stripped Gas Liquor Waste Water Treatment Zero Liquid Discharge Mud liquor CO2, H2S, solvent Clear Tar / Oil Crude Phenols Liquid Ammonia 20 22/05/2012

Waste Water Treatment Bio Treatment Particular care of high Chemical Oxygen Demand (COD) and higher phenols Complete re-use of waste water in the process Zero Liquid Discharge Bio-treatment followed by reverse osmosis technology Alternative specification of water effluent to country standards Part of the LURGI FBDB TM Coal Gasification Island Stripped Gas Liquor Bio-treatment Dual sludge system with recycle and proprietary carrier material Post-treatment Special reverse osmosis Crystallization unit Cooling water Make-up ~99% Recovery Sludge excess Sludge excess Salts 21 22/05/2012

CONCLUSION 22 22/05/2012

Lurgi FBDB Mk Plus Gasification Proven Operation Innovative use of referenced technology for no scale-up risk Safe and forgiving operation Beneficial for low rank coal Financially Secure Investment Track record On-stream factor (availability) Fewer Mk Plus gasification modules for same output High Efficiency and Reduced Cost of SNG Reduced steam consumption and lower oxygen consumption (per t of coal) Higher direct methane production Approximately 10% decrease of the SNG cost Roughly 20% CAPEX reduction across the Lurgi FBDB TM process chain Environmental Compliance Complete process water re-use Zero Liquid Discharge World bank standards met 23 22/05/2012

4 000 Air Liquide E&C Colleagues Thank You E-mail: daniel.vandermerwe@airliquide.com 24 22/05/2012

Air Liquide E&C in Perspective Industrial Merchant Large Industries Electronics Healthcare Gas and Utility Supply 89% Revenue 14.5 billion 5% Technologies Engineering Services 25 22/05/2012

Lurgi FBDB Project Execution Project Ma anagement E P C Engineering - Study - FEED - Licensing - Basic and detailed engineering Procurement - Global sourcing - Purchasing of equipment, bulks and spare parts - Sub-contracting - Expediting and Inspection - Logistics Construction - Site advisory and management - Site fabrication - Installation - Commissioning and start-up..your Support for Lifetime Project Success 26 22/05/2012