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IGCC (Integrated Gasification Combined Cycle) Technology Overview Presentation to World Bank Presentation to World Bank February 22, 2007 February 22, 2007 Washington DC Washington DC : Dr. Tan-Ping Chen Sr. Vice President, Energy Technology Nexant, Inc. San Francisco Phone: 415-369-1077 [email protected]

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Page 1: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

IGCC (Integrated Gasification Combined Cycle)

Technology Overview

Presentation to World BankPresentation to World BankFebruary 22, 2007February 22, 2007

Washington DCWashington DC

:

Dr. Tan-Ping ChenSr. Vice President, Energy Technology

Nexant, Inc.San Francisco

Phone: [email protected]

Page 2: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Presentation Outline

§ Brief Introduction of Nexant

§ IGCC Technology Background

§ Comparison of Performance, Cost, and Emission with Other Generation Technologies

§ Potential Technical Advancements for IGCC Plants

§ Expansion of IGCC for Poly-Generation

§ Barriers of Using IGCC in India and China

§ Conclusions

Page 3: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Brief Introduction of NexantBrief Introduction of Nexant

:

Dr. Tan-Ping ChenNexant, Inc.

Page 4: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

What is Nexant?

§ Used to be Bechtel Technology & Consulting, spun off in Jan. 2000; Bechtel has US$17 billion annual sale

§ Bechtel is the majority owner; other investors include Morgan Stanley, Mitsubishi Capital, IBM, First Technology

§ Headquarter in San Francisco with offices in London, DC, and White Plains (NY), Mesa (AZ), Denver, Houston, LA

§ Started with 150 people, grew to 250 by acquisition

§ Main business: consulting & technology development services in energy area

§ 7 business lines: Energy Technology, Energy Management, Electric Power, Oil and Gas, Chemicals, ChemSystems Online, Energy Solutions

Page 5: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Energy Technology Business Line

§ Gasification to make power, SNG, hydrogen, methanol, ethanol, DME, MTO, ammonia, and other chemicals

§ Direct and indirect coal liquefaction

§ Biomass and garbage conversion

§ Gas turbine, combined cycle, reciprocating engines

§ PC, FBC, cogeneration § Emission controls§ CO2 capture from syngas and

flue gas§ Hydrogen, fuel cells, distributed

power generation § Solar power§ Oil shale, tar sands§ Waste coal utilization

§ Project feasibility/planning studies

§ Engineering & construction of pilot units and demonstration plants

§ Owner’s engineer for commercial plants

§ Technology survey§ Technology investment

due diligence§ Market study § Lender’s engineer § Arbitration§ Technology

Development

§ UNDP, UNIDO, GEF§ ADB§ USAID§ USTDA § USDOE § NEDO§ EPRI§ Private electric/gas

utilities (Virginia Power, Baltimore G&E, Tokyo Electric, SCE, etc)

§ Private oil/gas/chemical companies (Shell, Chevron, BP, DuPont, etc)

§ Technology developers (Alstom, GE, RTI, etc)

§ Investors, IPP

Type of Work Technologies Clients

Page 6: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Gasification Experience§ Built 100 MW Cool Water IGCC demonstration plant§ Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid

anhydride) plant for Eastman§ Built 250 MW IGCC plant at Tampa Electric in Florida§ Built LuNan 500 tpd coal to ammonia plant§ Conducted Shanghai Wujing tri-generation feasibility study under

USTDA funding§ Owner’s engineer for US$650 million clean coal project for USDOE and

WMPI to co-produce FT liquid and electricity § Owner’s engineer to Reliance for a $2 billion coke gasification plant in

India § Conducting $2 million India IGCC study for NTPC under USAID funding§ Conducting $0.55 million polygeneration feasibility study for HITS in

Shenyang under USTDA funding § Conducting a coal-to-liquid study in Mongolia for QGX§ Conducted more than 130 other gasification feasibility studies

Page 7: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

IGCC IGCC Technology Technology Background Background

:

Page 8: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

:

Why IGCC?

§ High efficiency: due to CC; GT steadily increases efficiency

§ Young Technology: amply room for advancements & improvements

§ GHG reduction: – by high efficiency

– Low syngas volume (15-20% of PC flue gas) to facilitate CO2 capture

§ Low SOx and NOx : – H2S is much easier to remove than SO2

– Pollution control is easier for gas firing: lean burner, steam injection, SCR

§ Low water consumption: 2/3 power from GT

GasifierGas

CleanupCombined

CycleRawGas

CleanGas

Coal Power

Page 9: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Major Types of Coal Gasifiers

:

Dr. Tan-Ping ChenNexant, Inc.

Steam,Oxygenor Air

Recycle DriveGas

ProductGas,Ash

Coal,Sorbent or

Inert

GasifierTop

GasifierBottom

0 500 1000 1500 2000 2500

TransportGasifier

Coal, Char Recycle, Gas

Moving Bed (1st Generation)

Entrained Bed (3rd Generation)

Transport (variation of fluid bed)

Fluidized Bed (2nd Generation)

Page 10: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Entrained Bed Gasifier

GE gasifier(WHB)

E-Gas gasifier

§ Most commercial gasifiers are this type§ Very high temperature to provide good carbon conversion for any grade of coal§ Heavy metals in ash can be encapsulated in glass-like slag§ Slurry feed type (GE, E-Gas) and dry feed type (Shell, Prenflow, Noell)§ Hot syngas from GE gasifier can be cooled not only by WHB but also water

quench

GE gasifier (quench)

Shell/Prenflow/Noellgasifier

Coal SlurryOxygen

Syngas

Slag

Page 11: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

:

Other Types of Gasifiers

Steam,Oxygenor Air

ProductGas,Ash

Recycle DriveGas

Coal,Sorbent or

Inert

TransportFluidized Bed

§ U-Gas gasifier (developing)

§ HT Winkler gasifier(commercial, RWE idle)

§ No slagging§ Medium oxidant use§ Medium cold gas

efficiency§ Good for high ash, high

reactivity coals

§ KBR gasifier (developing)

§ No slagging§ Medium oxidant use§ Medium cold gas

efficiency§ High throughput§ Good for high ash,

high reactivity coal

Moving Bed

§ Lurgi gasifier (commercial)

§ No slagging§ Low oxidant use§ High cold gas

efficiency§ Require lump coal§ Require non-caking

coal, high steam use§ Liquid products Issues

Page 12: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Gasification Capacity by Applications

0

5,000

10,000

15,000

20,000

25,000

30,000

Power Chemicals F-T Liquids Gaseous

Fuels

Planned

Real

MW th syngas

Page 13: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Tampa Electric 250 MW IGCC Plant

Page 14: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Eastman Coal to Chemicals Plant

Coal Slurry Preparation

Gasifier Building

Rectisol AGR

Page 15: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Wabash 250 MW IGCC Plant

Page 16: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Puertollano 310 MW IGCC Plant

Page 17: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

:

Coal Based IGCC PlantsProject/ Location

Combustion Turbine

Gasification Technology

Net Output MW

Start-Up Date

Wabash River, IN

GE 7 FA Global Egas (formerly Destec)

262 Oct 1995

Tampa Electric, FL

GE 7 F GE (formerly Texaco)

250 Sept 1996

Demkolec (now Nuon), Buggenum Netherlands

Siemens V 94.2

Shell 253 Jan 1994

ELCOGAS Puertollano Spain

Siemens V 94.3

Krupp-Uhde Prenflo

310 Dec 1997

Page 18: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Many Gasification Projects in Planning in North America

§ American Electric Power Agrium/Blue Sky AK

§ Baard Generation OH§ BP/Edison Mission CA§ Cash Creek Generation KY§ Clean Coal Power IL§ DKRW WY§ Duke/Cinergy IN§ Energy Northwest WA§ Erora Group IL§ Excelsior Energy MN§ First Energy/Consol OH§ Leucadia National LA§ Madison Power IL

§ Madison Power IL§ Mountain Energy ID§ NRG Energy DL§ Orlando Util/Southern FL§ Otter Creek MT§ Power Holdings IL§ Rentech MS§ Royster Clark/Rentech IL§ Southeast Idaho ID§ Steelhead Energy IL§ Synfuel OK§ Tampa Electric§ WMPI PA§ Xcel Energy CO

Most projects are for power, but also SNG and liquid fuels; Many also use petcoke; Many projects also in other countries

Page 19: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Comparison of Comparison of Performance, Cost, and Emissions Performance, Cost, and Emissions

with with Other Generation TechnologiesOther Generation Technologies

:

Dr. Tan-Ping ChenNexant, Inc.

Page 20: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

:

IGCC Plant Energy Flow & Efficiency

15MW

80MW

30MWNet

Export

50MW

47MW

22MW

12MW

Net Coal to Power: 30 + 10 = 40%

18MW

100MW

10MWNet

Export

Page 21: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

COMPARISON OF EFFICIENCY

39.036.3 38.5

50.6

31.5

23.926.9

43.4

0

10

20

30

40

50

60

HH

V E

ffic

ienc

y (%

)

IGCC Avg IGCCwith CO2capture

PC Sub PC Sub with CO2capture

PC Super PC Superwith CO2capture

NGCC NGCC with CO2capture

Impacts of CO2 Capture:§ 20% hit on IGCC§ 30% hit on PC

Page 22: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

COMPARISON OF CAPITAL COST

1692

2626

1474

2245

988

568

2635

1508

0

500

1000

1500

2000

2500

3000

IGCC Avg IGCCwith CO2capture

PC Sub PC Sub with CO2capture

PC Super PC Superwith CO2capture

NGCC NGCC with CO2capture

$/kW

(200

6 do

llars

)

Impacts of CO2 Capture:§ 33% hit on IGCC§ 75% hit on PC

Page 23: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

COMPARISON OF GENERATION COST

8.99

6.75

8.35

4.97

8.63

4.99

7.13

5.48

123456789

10

cent

s/kW

h (2

006

dolla

rs)

IGCC Avg IGCCwith CO2capture

PC Sub PC Sub with CO2capture

PC Super PC Superwith CO2capture

NGCC NGCC with CO2capture

Coal cost $1.34/106Btu

Gas cost $7.46/106Btu

Impacts of CO2 Capture:§ 30% hit on IGCC§ 70% hit on PC

Page 24: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Wabash River Clean Coal ProjectA Case Study for Cleaner Air

0

1

2

33.1

Em

issi

ons,

Pou

nds

per

Mill

ion

BTU

s

0.1

0.8

BEFORECCT

BEFORECCT

AFTERCCT

SO2

NOx

AFTERCCT

0.15

The Wabash River Plant in Terre Haute, Indiana, was repowered with gasification technology

Page 25: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Tampa Electric (TECO) Clean Coal Project

A Case Study for Cleaner Air

OlderCoalPlant

SO222

NOx0.5

0

1.0Em

issi

ons

(Pou

nds

per M

illio

n B

tus)

1.5

2.0

2.5

OlderCoalPlant

FleetAvg.

FleetAvg.

TECOCCTPlant

TECOCCTPlant

2.07

0.6 to 1.21.2

0.47

0.07(15ppm)0.1

TECO’s coal-to-gas plant in Polk County, FL,

is the pioneer of a new type of clean coal plant.

Page 26: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Plant Availability

§ PC (commercial record):

– 90-95%

§ IGCC (maximum achieved):

– Tampa Electric: 81%

– Wabash: 85%

– Puertollano: 75%

– Buggenum: 86%

Page 27: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Potential Potential Technical Advancements Technical Advancements

for for IGCC PlantsIGCC Plants

:

Dr. Tan-Ping ChenNexant, Inc.

Page 28: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Dry Solids Pump for High Pressure Coal Feed to Gasifier

§ Principle:– Uses pulverized coal under

mechanical pressure to maintain high pressure seal to gasifier

§ Benefit:– Reduce heat penalties with

slurry feed and high-moisture (western) low-rank coals

– 0.2-1% plant efficiency increase

– $20-100/kW capital cost reduction

S

StametPosimetric® Feeder System

Page 29: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

RTI Warm Gas Cleanup

§ Sulfur removal @ 800-900 oF by attrition-free solid sorbent § PDU tests at Eastman confirmed sulfur removal down to 5 ppmv § Comparison with cold gas cleanup:

reference$279$114$/kWreference(72.6)(29.0)$MM

Savings

NoNoYesCOS Hydrolysis Needed

Residual Sulfur, ppmv

Total Cost ($ MM)

Balance of Plant

Sulfur Removal and Recovery

Low Temp Gas Cooling

Gasification

<5<150-100

345.2417.8374.2

234.5260.6246.1

43.177.348.2

012.312.3

67.667.667.6

WGCRectisolMDEA

Page 30: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

ITM (Ionic Transport Membrane) Air Separation

§ Oxygen ionized to transport through ceramic membrane at 1800 oF for separation from air stream

§ Tested at Sparrows Point in January 2006 produced >95% purity oxygen

§ Oxygen plant cost and power consumption are reduced more than 35%

§ IGCC plant efficiency is reduced by 2% and cost reduced by 7%

Subscale engineering prototype ITM test unit at APCI’s Sparrows Point gas plant

FY06 – 5 TPD test moduleFY08 – 150 TPD test module

FY09 - Offer commercial modules

Page 31: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Efficiency Timeline

30

35

40

45

50

55

60

65

2005 2007 2009 2011 2013 2015 2017

Eff

icie

ncy

(%

) --

HH

V

Year of Pre-Commercial Demonstration

DryFeed

RefractoriesWarm Gas Cleaning 7FB with SCR

ITM

AdvancedSyngasTurbine

90% Capacity Factor

SOFC

BaselineRefractories

Warm Gas Cleaning

Advanced Syngas Turbine;90% Capacity Factor

DryFeed

ITM

Baseline

Without CO2 Capture

WithCO2 Capture

Page 32: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

:

Capital Cost Timeline

1300

1400

1500

1600

1700

1800

1900

2000

2100

2005 2007 2009 2011 2013 2015 2017

Cap

ital

Co

st (

$/kW

)

Year of Pre-Commercial Demonstration

Baseline

Refractories

ITM

Advanced Syngas Turbine;90% CF

BaselineDryFeed

Refractories

WarmGasCleaning;85% Capacity Factor

7FB with SCR

ITM Advanced Syngas Turbine

90% Capacity Factor

SOFC

DryFeed

Without CO2 Capture

With CO2 Capture

WarmGasCleaning;85% Capacity Factor

Page 33: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Cost Of Electricity (COE) Timeline

Year of Pre-Commercial Demonstration

Baseline

Dry Feed

Refractories

Warm Gas CleaningITM

Advanced Syngas Turbine; 90% CF

Baseline

DryFeed

RefractoriesWarmGasCleaning

7FB w/ SCRITM

AdvancedSyngasTurbine

90% CF

SOFC

With CO2 Capture

Without CO2 Capture

40

45

50

55

60

65

70

75

80

2005 2007 2009 2011 2013 2015 2017

CO

E ($

/MW

h)

Page 34: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Expansion of IGCCExpansion of IGCCto to

Polygeneration Polygeneration

:

Page 35: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Poly-Generation

Shift, Cleanup,

CO2 Removal

RawGas Tailored

Gas

Coal Gasifier MethanolChemicalSynthesis

DME (replace LPG)

MTO or MTPOlefins

(feeds to make petrochemicals)

Dehydration

F-T Liquids,Ethanol, H2, NH3, SNG

Combined Cycle Suppl

Fuel Gas

PurgeGas

Power, Steam,

Hot WaterCO2

Page 36: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Reasons for PolyReasons for Poly--GenerationGeneration

§ Too many ways to produce power from coal & other energy sources (PC, CFBC, nuclear, hydro, wind, etc.)

§ IGCC is too expensive now to compete for power generation; needs environmental benefits as the driver

§ Power produced as byproduct; cheaper and very clean

§ Coal is hydrocarbon sources; liquid fuels for transportation & petrochemicals are deal as replacement for the every more expensive petroleum

§ Liquid fuels & chemicals are much higher value products than coal; solve shipping cost issue of coals in remote areas

§ Has partial benefit of GHG reduction

Page 37: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Comparison of Methanol with Comparison of Methanol with Gasoline for TransportationGasoline for Transportation

79---Methanol

5.82.5Aldehydes

1.54.7Benzene

<0.50.61,3 Butadiene

0.04-0.190.2-0.43NOx

0.03-0.060.08-0.19CH

0.2-1.430.86-2.08CO

Vehicle Exhaust Emissions, g/km

450600Cruise Range, km

108.7100Octane Number (RON)

19.742.5Lower Heating Value, MJ/kg

0.7950.74Density

3299Molecular Weight

CH3OHC7H15Molecular Formula

MethanolGasoline

Page 38: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Methanol for Transportation MarketMethanol for Transportation Market§ Can replace both gasoline and diesel

§ Vehicle engines prefer oxygenated fuels

– Engines are more efficient due to less air intake - methanol has half gasoline HHV but engines require only 30% more

– Build-in oxygen reduces emissions over entire driving cycle

§ Technical issues– Toxicity, Poor miscibility with gasoline, Hard to startup during

cool weather, Too high a vapor pressure during the hot weather, Engine gasket corrosion

§ Using additives can solve the technical issues above

§ Need 1,200 million tonnes/year even at 15% blending with gasoline/diesel

Page 39: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Other Market Potential for MethanolOther Market Potential for Methanol§ Can cheaply dehydrate to DME for

replacing LPG

§ Methanol provides missing link to production of coal-based petrochemicals

– Olefins are the basic feedstocks to produce polymers and many other petrochemicals

– Old way is to convert coal into carbide, which then reacts with water to produce olefins (acetylene) – polluting & expensive process

– New & economic way is to convert coal-based methanol into olefins (UOP’s MTO process or Lurgi’s MTP process)

Page 40: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Methanol Market Size and PriceMethanol Market Size and Price§ Consumption: 32 million tonnes in

2005

§ Methanol produced in NG rich regions @ $60/tonne

§ Very volatile market price; causes:

– Overbuild in NG rich regions

– Limited market for making chemicals

0

100

200

300

400

500

1994 1996 1998 2000 2002 2004 2006

Year

Met

han

ol P

rice

, US

$/to

nn

e

§ Much larger market for transportation fuel, household fuel, and petrochemicals; price should stabilize & key to gasoline/diesel price

§ Price expected to stabilize @ $340/tonne, corresponding to $85/bbl gasoline/diesel (or $60/barrel crude) adjusted by HHV difference

§ China consumes 7 million tonnes methanol in 2005; new productionplants being built (2/3 from coal) have capacity of 10 million tonnes

Page 41: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

DME & Olefin Market Sizes and PricesDME & Olefin Market Sizes and Prices

§ DME

– LPG sale in 2005: 205 million tonnes; $580/tonne ; $ 120 billion

– DME HHV: 68% of LPG

– No need to change burner to switch from LPG to DME

– DME price: $400/tonne after adjusting for HHV difference from LPG

§ Olefins

– Ethylene sale in 2005: 133 million tonnes; $750/tonne; 100 billion

– Propylene sale in 2005: 80 million tonnes; $800/tonne; 65 billion

§ Large market for methanol to grab

Page 42: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Barriers of Using IGCC Barriers of Using IGCC In In

India and China India and China

:

Page 43: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Characteristics of India Coals

§ High ash content (35-45%)– Detrimental to entrained bed gasifier– Penalize IGCC more than PC

§ High ash fusion temperature– Detrimental to entrained bed gasifier– Fluid bed gasifier is ideal, but no vendor

support§ High reactivity

– Entrained bed gasifier is overkill– Fluid bed gasifier is ideal, but no vendor

support§ Low sulfur content (<0.5%)

– Less environmental driving force to use IGCC

Page 44: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

:

Applications of IGCC in India§ Operated several coal gasification plants in the

past§ Coal is not very ideal for IGCC§ Suited fluid bed gasifier needs development

– Tests in US/India showed Indian coal converted well in this type of gasifier despite the high ash content

§ Emission standards are not stringent in India– FGD is still not required for PC

§ Large cost differential over PC– PC costs only $700/kW

§ India still plans to support a 100 MW IGCC demo– Potential to be competitive with technical

advancements– Environmental & GHG reduction pressures

Page 45: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

:

Applications of IGCC in China

§ China is leading in using coal gasification; but all for chemical production; no IGCC yet§ Emission standards are not very stringent in

China– FGD is required for PC but not well enforced– Emission limits of sulfur and NOx are still higher

than those in developed countries– Emission control on mercury, arsenic, and trace

pollutants are not considered at all § Large cost differential over PC ($700/kW)§ Power generation over built; detrimental to

build IGCC§ Going the direction of polygeneration

Page 46: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Summary Summary

:

Page 47: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Conclusions§ IGCC currently cannot compete with PC

– Cost of generation is 10-15% more– Availability is lower (75-85% vs. 90-95%)– PC using super-critical steam cycle catches up in

efficiency§ IGCC, however, has great commercial potential

– Ample rooms for technical advancements, performance enhancements, and cost reduction

– More cost effective to comply with stringent emission control

– More cost effective for carbon capture– Fuel flexible - can use low cost petroleum coke– Can co-produce transportation fuels/chemicals by

polygeneration§ WB financing for IGCC projects can promote clean

and carbon-free use of coal and petcoke

Page 48: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

GE Gasifier Projects in China? ? ? ? ? ? ? ? ? ? ? ? ? MPa ? ? ? ? /? ? ? ? ? ? ? ? ?

? ? ? ? ? ? ? F 2.8m 1? 1? 2.7 360 ? ? ? 1993?

? ? ? ? ? F 2.8m 3? 1? 4.0 3×500 ? ? 1995?

? ? ? ? ? F 2.8m 2? 1? 6.5 2×750 ? ? ? 1996?

? ? ? ? ? ? ? F 2.8m 1? 2.9 ? ? 2000?

? ? ? ? ? F 2.8m 2? 1? 4.0 2×500 ? ? ? 2000?

? ? ? ? ? ? F 2.8m 2? 1? 4.0 2×1000 ? ? ? 2005?

? ? ? ? ? ? F 2.8m 2? 1? 4.0 2×480 ? ? ? 2005?

? ? ? ? F 2.8m 1? 8.4 ? ? ? ? ? ? 2006?

? ? ? ? ? F 2.8m 1? 6.5 800 ? ? 2006?

? ? ? ? 1? ? ? ? ?

? ? 20? ? ? ? ? F 2.8m 2? 1? 4.0 2×450 ? ? ? ? ? ?

? ? ? F 2.8m 3? 1? 6.5 3×750 ? ? ? ? ? ?

Page 49: (Integrated Gasification Combined Cycle) … Experience § Built 100 MW Cool Water IGCC demonstration plant § Built 1300 tpd coal to chemicals (methanol, acetic acid, and acid anhydride)

Other Coal/Coke Based Gasification Plants

Gasifier Feedstock Project Texaco Coal 1,300 tpd Tennessee Eastman coal to chemicals

1,000 tpd Lunan coal to ammonia in China1,000 tpd Ube coal to ammonia in Japan 900 tpd Hefi City coal to ammonia/urea in China

Coke 120 MW Motiva Refinery IGCC in Delaware600 MW Citgo Refinery IGCC in Louisiana (in engineering)

Shell Coal 900 tpd coal to chemicals at Yingcheng, China (2004 startup) 2,000 tpd coal for ammonia/urea at Donting, China (2004 startup) 1,200 tpd coal for chemical at Liuzhou, China (2005 startup)2,000 tpd coal for chemical at Heibei, China (2005 startup)

Coke 2,300 tpd IGCC with H2 coproduction at Paradip, India (2005 startup)5,000 tpd IGCC at Sardinia, Italy (2006 startup)

Lurgi Coal 16,800 tpd lignite to SNG in North Dakota100,000 tpd coal to liquid fuels and chemicals in South Africa

U-Gas Coal 800 tpd Wujing trigeneration plant in ShanghaiBGL Coal 540 MW IGCC in Kentucky (2007 startup)

541 MW IGCC in Ohio (2007 startup)