Carbon-to-Liquids will create Jobs, increase Security, and make the U.S. Competitive – Hot Topic Yesterday

 

The Hot Topic Hour on November 4 covered the latest developments on conversion of coal and biomass to liquid fuels and chemicals. Both the indirect and direct liquefaction processes were discussed. The importance of this subject was covered in the “Overview” at the beginning of this Alert.

 

Dr. Theo Lee, Ph.D., Vice President and Chief Technology Officer of Headwaters CTL, LLC, described an advanced 20,000 BPD coal-to-ultraclean liquid fuels plant that has recently been commissioned in Inner Mongolia, China. Operating since early 2009, the plant is based on Headwaters' direct coal liquefaction and Axens' synthetic fuel hydrocracker. All the process parameters have been achieved. There are some equipment issues such as the coal feed through lock hoppers instead of let down valves. Although direct coal liquefaction posts a high stringent coal requirement (prefers to use a lower coal), it is more thermally energy efficient (low carbon footprint) and requires less investment than indirect coal liquefaction. Direct liquefaction is most suitable for gasoline but can be economically tailored for production of other fuels. Indirect liquefaction allows economic production of chemicals.

 

Dr. Santosh K. Gangwal, Manager of Business Development Energy Technology at Southern Research Institute, observed that the conversion of biomass and coal-to-liquid transportation fuels (carbon-to-liquids) can significantly improve the nation’s energy security. Biomass is a renewable resource and the United States has the world’s largest known coal reserves. Southern Research Institute’s ongoing advanced carbon-to-liquid projects were described. One display that drew the attention of everyone was the comparison of gasoline costs with various biomass and coal-to-liquids options vs. crude at two different prices.

 

Comparison of $/bbl Gasoline Equivalent Cost

 

 

Without CO2 Price

With $50/tonne CO2

CTL (coal-to-liquid)

65

120

CTL-CCS

70

90

Crude

-          $60/bbl

-          $100/bbl

 

75

115

 

95

135

BTL (biomass-to-liquid)

140

130

BTL-CCS

150

115

CBTL

95

120

CBTL-CCS

110

100

Cell. EtOH

115

110

 

 

With carbon sequestration the costs increase only slightly, but this is highly site specific. Dr. Lee had actually displayed analyses for the ALE North Dakota DCL project, when using lignite the breakeven cost was only $47/bbl of crude. This is because there would be a sales value for the CO2, due to the proximity to depleted oil fields and the use in enhanced oil recovery.

 

Charles (Chuck) Gounaris of CoalStar Industries, Inc., discussed their process for the direct conversion of coal-to-liquid fuels. This process is more economical and environmentally-friendly than other processes currently used. A unique approach allows a minor capital investment and the production of coal crude oil. Revenues generated by the initial investment then can be used to fund the further refining.

 

There were developments this week for several major projects. Dow and Shenhua submitted plans yesterday to the Chinese government for a coal-to-chemicals plant in Yulin, Shaanxi province. Production will be 3.3 mty of methanol, ethylene and propylene.

 

The Baard Energy plant in Wellsville, Ohio has $2.5 billion in funding from outside investors. One crane is in place and land clearance is expected in the spring. Environmental permits have been issued after three years of litigation. Products will be diesel fuel and chemicals. The plant will employ 400 people with 4,000 used during construction.

 

The BIOS, PHOTOS, and ABSTRACTS can be viewed as follows:
BIOS, PHOTOS, ABSTRACTS - November 4, 2010.htm

 

The individual presentations are shown below.

 

 

            Theo Lee - Headwaters

    Title:  Status of Coal-to-Liquids Project Technology
   Application Sequencing
211111 - Crude Petroleum and Natural Gas Extraction Coal Liquefaction
 煤的液化		 Direct Liquefaction *
直接液化
Company Person Product Subject Text Descriptor

  • Headwaters

  • Lee, Theo

  • Liquefaction System

  • China

  • Presentation

       
Dr. Theo Lee, Ph.D., Vice President and Chief Technology Officer of Headwaters CTL, LLC, described an advanced 20,000 BPD coal-to-ultraclean liquid fuels plant that has recently been commissioned in Inner Mongolia, China. Operating since early 2009, the plant is based on Headwaters' direct coal liquefaction and Axens' synthetic fuel hydrocracker. All the process parameters have been achieved. There are some equipment issues such as the coal feed through lock hoppers instead of let down valves. Although direct coal liquefaction posts a high stringent coal requirement (prefers to use a lower coal), it is more thermally energy efficient (low carbon footprint) and requires less investment than indirect coal liquefaction. Direct liquefaction is most suitable for gasoline but can be economically tailored for production of other fuels. Indirect liquefaction allows economic production of chemicals.

Additional Presentation Information
 

 

            Santosh Gangwal - Southern Research Institute

Title:  Conversion of Biomass and Coal-to-Liquid Transportation Fuels
   Application Sequencing
211111 - Crude Petroleum and Natural Gas Extraction
原油和天然气开采		 Coal Liquefaction
 煤的液化
Company Person Product Subject Text Descriptor

  • Southern Research Institute

  • Gangwal, Santosh

  • Liquefaction System

  • Cost

  • Presentation

       
Dr. Santosh K. Gangwal, Manager of Business Development Energy Technology at Southern Research Institute, observed that the conversion of biomass and coal-to-liquid transportation fuels (carbon-to-liquids) can significantly improve the nation’s energy security. Biomass is a renewable resource and the United States has the world’s largest known coal reserves. Southern Research Institute’s ongoing advanced carbon-to-liquid projects were described. One display that drew the attention of everyone was the comparison of gasoline costs with various biomass and coal-to-liquids options vs. crude at two different prices. Comparison of $/bbl Gasoline Equivalent Cost (See link above to slides.) With carbon sequestration the costs increase only slightly, but this is highly site specific. Dr. Lee had actually displayed analyses for the ALE North Dakota DCL project, when using lignite the breakeven cost was only $47/bbl of crude. This is because there would be a sales value for the CO2, due to the proximity to depleted oil fields and the use in enhanced oil recovery.

Additional Presentation Information
 

 

 

            Charles (Chuck) Gounaris - CoalStar

    Title:  Status of Carbon to Liquid Product Technology
   Application Sequencing
211111 - Crude Petroleum and Natural Gas Extraction 原油和天然气开采 Coal Liquefaction 煤的液化 Direct Liquefaction * 直接液化            
Company Person Product Subject Text Descriptor

  • CoalStar

  • Gounaris, Charles

  • Liquefaction System

 

  • Presentation

       
Charles (Chuck) Gounaris of CoalStar Industries, Inc., discussed their process for the direct conversion of coal-to-liquid fuels. This process is more economical and environmentally-friendly than other processes currently used. A unique approach allows a minor capital investment and the production of coal crude oil. Revenues generated by the initial investment then can be used to fund the further refining. There were developments this week for several major projects. Dow and Shenhua submitted plans yesterday to the Chinese government for a coal-to-chemicals plant in Yulin, Shaanxi province. Production will be 3.3 mty of methanol, ethylene and propylene. The Baard Energy plant in Wellsville, Ohio has $2.5 billion in funding from outside investors. One crane is in place and land clearance is expected in the spring. Environmental permits have been issued after three years of litigation. Products will be diesel fuel and chemicals. The plant will employ 400 people with 4,000 used during construction.

Additional Presentation Information