investment project syngas by gasification … · investment project syngas by gasification of coal...

INVESTMENT PROJECT SYNGAS BY GASIFICATION OF COAL UNECE Investment Conference “Attracting investment in advanced fossil fuel technologies” Almaty, Kazakhstan 14-15 November 2012

Syngas and its use •  Synthesis gas or syngas is a

gas mixture that is comprised of carbon monoxide and hydrogen

•  The energy density of syngas is approximately 50% less than that of natural gas

•  The use of syngas as a fuel is accomplished by the gasification of coal – Synthetic natural gas (SNG)

•  Syngas is used as an intermediate in the industrial synthesis of hydrogen and ammonia – (SG)

ICC Ukraine GREENERGY Initiative

Technology and its global coverage

Worldwide Gasification Capacity and Planned Growth – Cumulative by Year Source: Worldwide Gasification database


Project potential in Ukraine

53,5 61,8 64,2

0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0

2010 2011 2012 Prod

utio

n, m

illio

n to

ns

Period

Coal production, million tons

Coal production


Source: Ministry of energy and coal of Ukraine

Ukraine: Project current status •  July 2012 – Ministry of

energy and coal of Ukraine signed MOU with State Chinese Bank for providing with credit for the amount 3,5 billion USD

•  Reorganization of “Gas Ukraine” into “Syngas Ukraine”


Ukraine: Legal and policy framework • Updated Energy Strategy of Ukraine until 2030 •  State program on energy efficiency 2010-2015 •  Law of Ukraine on reformation of oil and gas industry • Reorganization of SE “Gas Ukraine” into PJSC “Syngas-

Ukraine” • Changes to the Law of Ukraine on ‘State budget 2012” as to

state guarantees for projects of replacement of natural gas as fuel with coal of local production


SG Technological scheme Coal, C ( 𝐻↓2 𝑆+𝐶𝑂↓2 ) Sulfur, S 𝑂↓2 𝐶𝑟𝑢𝑑𝑒 𝑔𝑎𝑠 𝑆𝐺  ( 𝐻↓2 + 𝑁↓2 +𝐶𝑂+𝐶𝑂↓2 + 𝐻↓2 𝑆) ( 𝐻↓2 + 𝑁↓2 ) Steam Ash Ammonia production Source: Ministry of energy and coal of Ukraine


Gasification

Refinement

Savings from replacement


Coal 1,5 t

SG from coal 2300 𝒎↑𝟑 

SG from nature

gas 2300 𝒎↑𝟑 

Gas 1100 𝒎↑𝟑 

Savings from replacement of natural gas SG from coal on the example of “Severodonetskiy “AZOT” - $ 350 Annual gas saving - 521,8 million USD with production 1,64 billion 𝑚↑3  per year

$ 220 $ 570

Project economics and savings

Severodonetskiy AZOT CAPEX - 1,2 billion USD



Potential projects in Ukraine •  Pilot project PJS

“Severodonetskoe ob’edinenie “AZOT” – 1,6 billion 𝑚↑3 

•  Pilot project PJS “Koncern STIROL” – 1,8 billion 𝑚↑3 

•  PJS “Odessa Port Plant” – 2,2 billion 𝑚↑3 

•  Cherkasskiy PJS “AZOT” – 0,6 billion 𝑚↑3 

•  PJS “Dniproazot” – 0,7 billion 𝑚↑3 

•  PJS “Rovnoazot” – 0,5 billion 𝑚↑3 


SNG Technological scheme Coal, C ( Sulfur, S (C Steam Ash CHP Population Manufacturing capacity: 650 000 thousand Source: Ministry of energy and coal of Ukraine


Gasification

Crude gas ( 𝐻↓2  +CO+ 𝐶𝑂↓2 + 𝐻↓2 𝑆

+𝑖𝑚𝑝𝑢𝑟𝑖𝑡𝑦)

Methanation

Synthetic gas (CO+𝐻↓2 )

SNG costs


Coal 2 – 2,5 t

Processing SNG 1000 𝒎↑𝟑 

Gas 1000 𝒎↑𝟑 

$ 177 $ 75 $ 252 $ 492 Replacing 1000 𝑚↑3  of natural gas: $ 240 savings Production capacity: 650 m 𝑚↑3 per year Replacing natural gas annual savings: $ 156 m Source: Ministry of energy and coal of Ukraine

SNG plant economics CAPEX 792 million USD



-‐700 -‐600 -‐500 -‐400 -‐300 -‐200 -‐100

0 100 200 156 156 156 156 156 156

-‐636 -‐480

-‐324

-‐168

-‐12

144

$ million

1 2 3 4 5 6 Years

SNG produc4on Economic efficiency

Energy consumption


Consumption January-September 2011

January-September 2012

Growth rate, %

Natural gas (million m3) 40 776,2 37 396,2 -8,3

Coal (thousand tons) 42 576,4 45 482,6 6,8

- incl CHP 23 427,4 24 270,4 3,6

Next steps

•  First pilot projects to be launched in 2013 •  Large amount of implementation opportunities as fuel in

chemical industry and alternative to natural gas •  Opportunities for CHPs privatization


Contacts Darya Revina •  ICC Ukraine Vice-chairman on green economy • Head of Commission on green economy and ecological

investments • Head of GREENERGY Initiative program Email: [email protected]


investment project syngas by gasification … · investment project syngas by gasification of coal...

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