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GasificationTechnologies 2001
San Francisco, CAOctober 7-10, 2001
DOE’s Gasification Industry Interviews:Survey of Market Trends, Issues, and R&D Needs
Gary J. Stiegel, Stewart J. Clayton, and John G. WimerU.S. Department of Energy
Presentation Outline
• Interview Process• Gasification Markets• Environmental Issues• Technology Issues/Needs• Where Do We Go From Here?
Interview Process
Purpose of Interviews
• Evaluate the current DOE gasification program− Is the program focused on industry needs?−What are the weak points in the program?
• Obtain gasification industry’s perspective on:−Future markets and opportunities−Current and anticipated technology needs−Related environmental issues and trends−Priorities−Key performance criteria
Intended Benefits
• Provide Federal officials with a clearerunderstanding of technology trends andresearch needs
• Assist in establishing Federal fundingpriorities for gasification and relatedtechnologies
• Provide industry decision makers with a broadspectrum of creative opinions and forward-looking insights from industry experts
Interview Discussion Structure
• Markets (present – 2015)−Strategic business opportunities−Factors/hurdles that limit/enhance gasification−Viable feedstocks
• Environmental (present – 2015)−Major environmental hurdles/issues
• Technology Needs (present to 2015)−Key issues and performance requirements−Areas for development (feed handling, gasification,
cleaning, separation, utilization, by-products, etc.−Timing requirements
• Integration Issues• Engineering Analyses/Model Development
Participating Organizations
• Air Liquide• Air Products & Chemicals,
Inc.• Allegheny Energy Supply• Bechtel/Nexant LLC• Citgo/Lyondell-Citgo• Dakota Gasification Company• Dow Chemical Company• Eastman Chemicals Company• Enron• Fluor Daniel• Foster Wheeler• Gas Technology Institute
• General Electric Company• Global Energy, Inc.• Praxair, Inc.• Shell Global Solutions• Siemens-Westinghouse
Power• Southern Company• Tampa Electric Company• Tennessee Valley Authority• Texaco Global Gas & Power• UOP LLC
Gasification Markets
Overall Market – Factors/Complexities
• Economics• Energy and environmental policies• Regulatory Reforms• Resource Utilization issues• R&D funding – availability and prioritization• Partnering requirements and team formulation• Speed of innovation/acceptance to
competition
Factors Affecting Gasification
• Favorable− High NG prices− Low quality feedstocks− Feedstock flexibility− Market risk
management− Ultra-clean fuels− Superior efficiency and
environmentalperformance (requiresmonetization of benefits)
• Unfavorable− Low NG prices
(commodity marketuncertainties)
− Poor reliability− Uncertainties in
environmentalregulations
− Lack of Investorconfidence
− Real/perceived risks− Project cost, size, and
development time− Large footprint− Public perception of coal
Markets – Short Term (to 2010)
• Function of steady, incremental improvementsin unit economics and operation
• Affected by price/supply outlook for NG andportfolio diversification requirements (assethedge against volatility)
• Niche opportunities – simple economics andmarket fit−Low cost feedstocks (petroleum coke/residue)−Marketable products (electricity, hydrogen,
chemicals, etc.)−Waste recycling and disposal
• Overseas market not lucrative (infrastructure,project development schedules, financing)
• Limited opportunities for biomass
Long-Term Market Hurdles and Drivers• Hurdles
− Low reliability− Relatively high capital and operating costs− Regulatory uncertainties− Protracted EPC schedules− Perception of complexity, lack of technology maturity
• Drivers− Need for increased energy security− Requirements to capture and sequester CO2
− Environmental considerations in the pulp and paper, steel,and transportation industries
− Development of a hydrogen economy and infrastructure− Siting – reduced footprint and water consumption− Increasing emphasis on synergistic applications and waste
disposal/recycling technology
Environmental Issues
Environmental Benefits
• Most efficient and environmentally superior ofsolid fuel technologies
• Unique advantages in dealing with CO2(efficiency, means/cost of capture)
• Converts wastes (e.g., petcoke, refinery waste,and hazardous wastes) into useful products
• Waste recycling/disposal technology superiorto incineration/combustion (i.e., no dioxinsproduced)
Environmental Hurdles• Regulatory Uncertainty (NOX, GHG, Hg, solid
wastes)−Cost effective business development is contingent
upon on knowing if/when/how new regulations arenecessary
−Current approach of measuring emissions on fuel inputbasis – does not capture efficiency advantages
• Development Time (Permitting)• Misperceptions of Regulators (IGCC vs.
Incineration/Combustion)• Held to higher environmental standard than PC• Misperceptions of the Public (NIMBY)
GHG Emissions
• No strong consensus regarding the “if, whenand how” of U.S. GHG regulations
• High uncertainty - potential for U.S. GHGregulations already impacted the energy market
• Companies seriously considering GHG issue asthey plan and position for the future−Projects being screened for potential GHG liability
• Timing and structure of GHG regulations iscritical− If poorly conceived, massive switch to natural gas
would devastate the power and coal industries
NOx, Hg, Solid Waste Issues• NOx emissions may be limited to 3-5 ppm levels
−Rectisol and SCR required – increase capital cost• Most companies expect mercury regulations will
be issued in the near-term−Methodology/technology for measuring Hg not well
demonstrated−Control technology for capture Hg−Disposal of Hg-containing waste
• Solid waste−Extension of proposed EPA rule for syngas from
refinery waste to other industries−Applications other than landfill – qualification
Water Issues
• Permitting will become more difficult−Zero water discharge likely−Trace metals limits – arbitrary and often below
detectable limits− Inability to gasifier certain wastes could be an
obstacle to gasification growth
Technology Issues/Needs
Technology Issues• Gasification – Reliability• Gas Cleanup – Cost, contaminant removal• Gas Separation – Cost and performance• By-Products – Cost, CO2 sequestration• Instrumentation - Numerous• Utilization – Low NOx combustor, cost,
synthesis gas performance• Integration – Modularization, standardization,
reliability• Heat Recovery – Cost and reliability• Feedstocks – Preparation• Models - Minimal
Reliability: Gasification’s “Achilles’ Heel”
• Reliability identified as the key technicalchallenge!!!−Unable to meet performance milestones on which
economics are based−Single train availabilities must be at least 85-90%
for utility applications and greater than 95% forrefineries and chemical complexes
−EPCs unwilling/unable guarantee integratedperformance and risk huge liquidated damages
−Must phase out multiple trains to improveeconomics
−Standardize/modularize plants to optimize cost andreliability
Key Gasifier Priorities• Burners
− Extend burner life from 2-6 months to >12 months− Define factors leading to failure− Dry versus wet feed− Material development− Multi-fuel capability− Variable orifice burners – turndown during load changes− CFD modeling around burner
• Refractory− Tradeoff between carbon conversion and refractory life− Extend refractory life from 6-18 months to >3 years− Reduce material costs by 50%− New materials, on-line instrumentation for wear required− Eliminate the need for refractory
Additional Gasifier Priorities• Instrumentation
−Temperature measurement – extend life beyond 30-45 days
−On-line feed (fuel switching) and product analyses−On-line slag property analyses
• Ash/Slag Handling−Better knowledge of flux effectiveness−New fluxing agents to lower ash fusion temperature−Database of gasification properties of various coals
and solid fuel blends (ash fusion temperature, slagviscosity, feed reactivity)
Synthesis Gas Cleanup – Priorities• Deep cleaning technologies required to meet
future environmental regulations− “Meet Rectisol performance at equal or lower cost
than amine systems”• Better definition of contaminants and required
levels (particulates, H2S, COS, CO2, NH3,volatile metals, carbonyls)
• Need to operate closer to downstreamprocess requirements (e.g., gas turbine,syngas conversion)
• High cost of particulate and chemical removal(need fewer unit operations)
Synthesis Gas Cleanup Priorities• Cold Gas Cleanup (ambient)
−Opportunities to improve conventional technologies−Removal of heat stable salts−Need to develop new approaches
• Warm Gas Cleanup (300-700 oF)−Develop technologies that operate above the dew
point of the gas stream – more efficient operation−Development of technologies for multi-contaminant
removal (e.g., mercury, arsenic, selenium,ammonia, particulates, etc.)
• Particulate Filtration−Development of more durable, reliable, and cost
effective filters (Useful life - three years)−Simpler, cheaper approaches to solids removal
Gas Separation – Air Separation
• Cost of O2 ℵ $15/ton from cryogenic technology(12-15% of capital cost of IGCC plants)
• Oxygen purity requirements: 95-98%• Cost reduction and efficiency improvements
required• Ceramic-based membranes viewed favorably
−Air extraction design for gas turbines - priority• New technologies are needed
−Current ASU technologies primarily cryogenic−High temperature ASU being developed− intermediate temperature ASU may be desirable (-50
to 350 oF)
Gas Separation – Hydrogen/CO2
• First Priority: CO2 sequestration/utilizationtechnologies need proven−Need storage options before removal is mandated
• Preferred new technologies - produce bothhydrogen and CO2 at high pressures−Most technologies provide one or the other, not both
• Preferred temperature of operation <800 oF• Cost and efficiency improvements required• Also, considerable interest in membrane-
based separation technologies forapplications at lower pressures
Where Do We Go From Here?
Next Steps
• Complete comprehensive report and makeavailable to stakeholders (target 12/01)
• Develop gasification technology roadmap−Possibly with further industry input−Reestablish budget priorities
• Define competitive solicitations to addresshigh priority research needs
Possible FY 2002 Procurements
• Gasification Technologies Research Consortium−Provide opportunities to identify and address key
technology issues at the proof-of-principal levelthrough novel ideas and creative approaches
−Collaborative participation of multiple universities− Industry management council provides direction
• Gasifier Reliability/Performance Enhancements−Materials development (i.e., refractory)− Improved burners− Instrumentation (i.e., thermocouples, on-line analyzers,
flow measurements, feed systems, etc.)
Acknowledgements
• James Childress, Executive Director,Gasification Technologies Council−Obtaining support of GTC membership−Many helpful suggestions−Personal interest in the success of the process
• Participating organizations−Willingness to share thoughts with the DOE−Extensive preparation prior to meetings−Very productive meetings− Interest in results−Continued support of the gasification program