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International Freiberg ConferenceCologne, 13th June 2016
A New Deal.Lignite as Resource for the Chemical Industry in the Era of Renewable Energies and as Bridging Technology to the Bio-Economy.
Guido van den Berg
Member of Parliament of the German State of North Rhine Westphalia
Securing Options for the Future.
"Today we are still talking about the use of lignite in the area of the ‘energy economy’,
so about the combustion process in a power station. But some day it may
be possible that its chemical use will become economically interesting. RWE promotes this
research. We need to keep this option in mind."
Hannelore Kraft MdL
Prime Minister of North-Rhine Westphalia in Handelsblatt, 19.01.2016
13th June 2016 2
Methodology of the Committee.
Cu
rren
tSt
ate
Ass
um
pti
on
s Option 1economical
ecological
social
Rec
om
men
dat
ion
s
MegatrendsDemography, urbanization,
learning from nature, mobilitypatterns, convergence of technologies,
globalization, etc.
Sustainability AssessmentThree equivalent criteria!
Option 2economical
ecological
social
Option 3economical
ecological
social
13th June 2016 3
Subjects & Structure of the Report.
Introduction
• Objective• Subjects• Approach
Materials Conversions
• Raw Materials• Materials
Technique
• Intensified Chemistry• Biotechnology• Biorefinery• Utilization of Coal• Biometic
Energy Conversions
• Electrochemistry• Energy Storage
Conclusion
• Summary• Recommondations
for Action
13th June 2016 4
Photosynthesis
Biomass
ExessElectricity
Hydrogen
Drying
Syngas Transformation
Gas Transformation
Synthetic Natural Gas Fuel Syngas Chemical Raw Materials
Use of RenewableRaw Materials
In Combinationwith Renewable Energies
Lignite
SyngasChemistry
Arguments for Lignite.
13th June 2016 5
Close to the Basic-Chemicals-Industry.
13th June 2016 6
German Energy Transition –an Opportunity for Products from Lignite.
c-Electricity
n-Electricity
C-Produkte
c-Products
r-Electricity
13th June 2016 7
Many Options – from Plastics up to Medication.
2 m t DME
1,43 bn L FT-Products(Diesel)
953 m L Gasoline
2,0 bn m³ SyntheticNatural Gas
2 m t Methanol
10 m t raw Lignite
5 m t Coke
4 m t Urea
Ethylen
Propylene
OlefinsFormaldehydeAcetic AcidFuels, MTBEe.g. Methylamines
Reducing AgentAbsorbentsCoke Oven GasTarsSulfur
Halogenated Hydrocarbons,Ketones, GlycolsPlastics and DetergentComponents
PolypropyleneGlycerin, PhenolIsopropylalcoholEpoxy Resin
DyesMedicationPlant Protection
Nitrogen FertiliserCosmeticsFood StabiliserMedicine
AmmoniaAmmonium Sulphate
13th June 2016 8
Competitiveness of Coal Gasification.
13th June 2016 9
Unanimous Vote of all Parliamentary Groups in the State Parliament of North-Rhine Westphalia.
“The use of lignite widens the supply base of the chemical industry and decreases the dependence on imports. Furthermore, it supports one of the important industry sectors of NRW which has a great (often just indirect) significance for the chemical industry. In particular, this applies to a safe energy supply at competitive prices.”
13th June 2016 10
Vision: Sector-Linking 2030.
Solar Roofs
EfficencyOptimization
High Amount ofRenewableEnergies
Temporary Storage and CascadeUtilisation of Energy
Synthetic Fuels
H²-Mobilitynew Traffic Concepts
Electric Mobility
Supply totheNatural Gas Grid
Commercial Consumersand Producers of Energy
Households as Producers of Energy
Lignite
Flexible Fossil Power Plants
BiogasBiomass
SyngasChemistry
Cascade Utilizationof CO2 -> Biomass
Olefins, Polymers,Fertilizer (AgriculturalChemical),Pharmaceuticaly
District Heat
Demand-side-Management
13th June 2016 11
Global Acknowledgement.
13th June 2016 12
Guido van den BergMember of Parliamentof the German State of North Rhine Westphalia
Platz des Landtags 1 | D-40221 Düsseldorf Fon: +49 (211) 884-2884 | Fax: [email protected]
14
A New Deal
Lignite as Resource for the Chemical Industry in the Era of Renewable Energies and
as Bridging Technology to the Bio-Economy
Contribution at the ‘8th International Freiberg Conference’, Cologne, 13th June 2016
Guido van den Berg*, Roland Schmidt†
Abstract
This article summarizes the presentation given at the ‘Freiberg-Conference 2016’ at
Cologne, Germany and highlights the views and ideas how to reconcile ‘Technology and
Politics’ and a future for ‘Carbon’ in the 21st century as envisioned by the Parliament and
State-Government of the State of North Rhine-Westphalia – the most populous and
industrialized state within the Federal Republic of Germany.
Introduction
The State of North Rhine Westphalia sits on the largest lignite resources in Germany. In light
of the discussion about phasing-out carbon-based energy generation in addition to shutting
down nuclear power plants in Germany, alternative ideas and uses for this vast resource are
considered; not just for Germany and Europe but globally. Building on the ideas of Franz
Fischer and Hans Tropsch [Fischer, F., "Liquid Fuels from Water Gas", Ind. Eng. Chem.,
17(6), 1925, pp. 574-576., R.B. Anderson, ‘The Fischer-Tropsch Synthesis’, Academic
Press, Inc., 1984.] who developed their ideas for upgrading carbonaceous materials to
desired fuels and chemicals via indirect coal liquefaction (in contrast to Bergius’ direct coal
liquefaction [1]) here into a process in 1925, the ground must be broken for new, innovative
ways and uses for industry and the population at large relying on sustainable and affordable
energy supply as well as new products. Moving from sole ‘energy’ generation to a more
value-added approach and regard these resources as a ‘source of carbon’ supplying
especially the chemical industry. Germany as a whole has a long tradition in this research
but it should be kept in mind that after World War II, the carbon supply for the chemical
industry in Western Germany [2] was mainly based on petroleum. In contrast, in Eastern
* Corresponding Author: Member of Parliament of the German State of North Rhine Westphalia; Platz
des Landtags 1, D-40221 Düsseldorf; [email protected], www.guido-vandenberg.de
† Technical Consultant to Mr. Van den Berg.
15
Germany, the use of coal has played an important ever increasing role. The shift to coal
(anthracite) and/or lignite may be one way to reconcile politics, economics – and do this
ecologically.
Securing Options for the Future
Despite historically low prizes for oil on world markets in 2015/16 and for the foreseeable
future, the question for a more intelligent use of lignite – other than heating water or running
a turbine – has become a significant current subject in Germany. Its renaissance has been
caused by the Federal Government’s ‘Energy Transition’ initiative from traditional energy
generation to a more sustainable, ‘green’ one in the aftermath of ‘Fukushima’ and the ‘Global
Warming’ discussion.
In light of this development, the prime minister of North-Rhine Westphalia, Hannelore Kraft,
called for a focus on the chemical utilization of lignite:
"Today we are still talking about the use of lignite in the area of the ‘energy economy’, so
about the combustion process in a power station. But some day it may be possible that its
chemical use will become economically interesting. RWE promotes this research. We need
to keep this option in mind." [3]
The state-parliament of North-Rhine Westphalia had already addressed this in 2013 with the
set-up of a committee to study the question how the immensely important chemical industry
in this state – and in general - must develop. All conceivable options were highlighted and
the report received unanimous support by all political parties [4] which means a strong
political backing and a point of origin for future developments for the chemical industry.
Methodology of the Committee
Initially, the committee focused on identifying a portfolio of technologies, the conversion of
raw materials and energy use of the chemical industry in North-Rhine Westphalia (Fig. 1).
This was followed by the assessing how the chemical industry could contribute best to the
‘big development trends’ of our time such as demographic change, urbanization, climate
change, new mobility patterns and many others [5,6]. These megatrends can also be found
in OECD, European Union and United Nations reports [7,8]. Several options emerged how
the chemical industry could contribute with these megatrends in mind. These options then
were assessed for their sustainability meaning that a more balanced way encompassing also
economical, ecological and social criteria. Finally, the actionable recommendations were
16
developed showing how the chemical industry could be part of the solution and not a part of
the problem.
Fig. 1: Assessment Methodology Scheme.
The result was a coherent portfolio of technologies [Fig. 2] including lignite utilization as a
raw material for the chemical industry.
Fig. 2: Report structure with identified options.
Arguments for Lignite
Initially, the committee of experts had to come to an agreement which products/processes
should and could alternatively be generated/focused on especially in light of the CO2
balance:
• Is the process to be applied to substitute energy for heating or to produce fuels?
• Or is the carbon really stored in products?
17
Another important point was that carbon conversion technologies should not only operate
with lignite but also with other bio-based materials. This opens up new perspectives for
renewable resources with a future bio-based economy in mind. Politically, this means that we
must focus on technologies versatile enough to be suited for other raw materials as well.
Germany is expected to expand significantly renewable energy sources within the scope of
the German energy transition. As a result, excess electricity is going to generated NOT
needed for domestic power supply. If hydrogen should turn out to be a suitable option for
chemical “energy storage”. The challenge for the gas processing step is to achieve a suitable
carbon to hydrogen ratio required to generate the target products.
Hydrogen generation would be ideal to supplement the ‘shift-reaction’ to achieve the required
‘carbon to hydrogen ratio’ in the gas processing step. This would further enhance the
energetic and economic balances [Fig. 3].
Fig. 3: Lignite-to-Syngas Chemistry envisioned scheme.
The Technical University Bergakademie Freiberg [9] supported and investigated how such
an amalgamation of mining and chemistry may look like in practice keeping in mind the
distinct advantage that the vast lignite deposits in the Rhineland are close to the main
players of the basic chemicals industry.
18
German Energy Transition – an Opportunity for Products from Lignite
The crucial question is if lignite can be a suitable raw material for the chemical industry with
the overarching objectives of the energy transition (German Federal Parliament decided for
the energy transition on 30. June 2011 [10,11,12]).
The objectives are:
Shutdown of the last German nuclear power plant by 2022
Generating about 80% to 90% of power with renewable energies by 2050
Simultaneously reducing the dependence on carbon based energy sources
The pursuant issues the Federal Government has realized are:
the expansion of storage capabilities
accelerating the extension of the power grid extension which lag behind the rate of
expansion for renewable energies.
Controlling the price of electricity which must not increase unduly.
Taking these decisions into consideration, the trends indicate a decrease in the amount of
electricity from carbon sources in the next decade(s). In North-Rhine Westphalia, it is
expected that by 2030, the combustion of lignite to decrease by 40% - 50%. This opens up
new possible uses as raw material for the chemical utilization of lignite. This in turn could
lead to a reduction of carbon dioxide. But it could also enable a systematical termination of
surface mining is in-line with economic requirements and thus avoid socially unacceptable
structural interruptions.
Hence, lignite utilization as a raw material for the chemical industry has the potential as a
sustainable strategy [Fig. 4].
19
Fig.4: Lignite strategic Options away from combustion towards chemical utilization.
Many Options – from Plastics up to Medication.
Today in North-Rhine Westphalia, 100 million tons of lignite are mined annually from the
deposits [13]. Just one-tenth of this production is needed as a significant alternative to
generate chemical products [Fig. 5] and in addition open up new, not yet considered
advantages to be used in an entrepreneurial way.
Fig. 5: Current and envisioned products with lignite as raw material.
20
Competitiveness of Coal Gasification.
The crucial question remains if lignite will also be a profitable resource for the chemical
industry. The parliament’s expert committee determined that lignite can be mined here at a
variable cost of 10 to 20 Euros per ton [4]. Large parts of the conversion technologies are
available on the global market. Specific adaptations to lignite and the resulting final products
might be necessary. It is clear that the economic efficiency is dependent on the special
features lignite exhibits and of the development of raw material prices. The current low prices
of crude oil and natural gas present a big economical obstacle to the use of lignite for
“chemistry”. It is not realistic to expect the current price levels will remain as they are and it is
safe to assume that markets may change quickly.
Unanimous Vote of all Parliamentary Groups in the State Parliament of North-Rhine
Westphalia.
The parliament’s unanimous vote for the future conversion of lignite into syngas is a strong
political signal for the industry. In 2011, the government of North Rhine Westphalia started
the initiative “Innovationsregion Rheinisches Revier” (Innovative region Rhineland), which
selected the best ideas for supporting the structural change in the lignite mining region during
a project competition in 2015 [14]. The use of lignite as a chemical resource has been
unanimously supported politically as a starter project for 2016:
“The use of lignite widens the supply base of the chemical industry and decreases the
dependence on imports. Furthermore, it supports one of the important industry sectors of
NRW which has a great (often just indirect) significance for the chemical industry. In
particular, this applies to a safe energy supply at competitive prices.”
Furthermore, the use of lignite as a raw material was added to the list of the latest key
decisions for future lignite use in the Rhine region by the state-government.
Vision: Sector-Linking 2030
The German energy transition is an opportunity which can lift lignite to a higher value-added
level and save CO2 at the same time. How? Because 100% of carbon is turned into CO2
during the combustion process to obtain electricity. If we produce chemicals from coal
roughly half of the carbon is fixed. Hence, the CO2 emissions will decrease by 50% in
comparison to coal-fired power. If renewable energies are going to provide 80% of electricity
21
– as it is politically desired – they have to become more reliable especially at demand peaks.
The storage options are also still an open issue and require further development. If
electrolysis and hydrogen should play a major role, it would be ideal for the refinement of
lignite. Through the integration of CO2-emission free produced hydrogen, almost 100% of the
coal’s carbon can be bound in chemical products. It is therefore possible to reach “0”-CO2
emission when using lignite as a chemical raw material. It is important to note that syngas
conversion not only works with lignite but also for other bio-based input materials. This
technology offers the access to a bio-based economy by using renewable resources of the
second and third generation. The CO2-descreasing effect of biomass is twice as high
compared to simple combustion. The integration of hydrogen has the potential to even turn
the use of biomass into a CO2-low with these technologies [Fig. 6].
Fig. 6: Sector-linking vision and strategy for future us of lignite and other carbon-based
resources.
Global Acknowledgement
An exciting question in Germany is going to be how these opportunities of using lignite could
be integrated into the wider social discussion. As outlined earlier, this technology and its
impact will fit very well with the German energy transition. However, the European emissions
trading only knows lignite as an energy source. If the carbon is not turned into CO2, it would
be logical to NOT tax lignite for this use. This will be a political decision. To achieve social
acceptance, it seems crucial to rediscover the intrinsic value of carbon for people and
22
society. The term de-carbonizing makes many people believe that carbon – or CO2 – is a
poison that should be banned entirely. The corresponding memoranda for the year 2100 in
Elmau at the G7 summit [15,16] are as undifferentiated as the Pope’s encyclical Laudato Si
(Fig. 7) [17] or the UN Climate Change Conference COP 21 in Paris [18,19].
Fig. 7: Recent global political support and trends.
Conclusion
It must be recognized and accepted that carbon is the substance of life. Designing a
functioning carbon cycle scheme would open up opportunities for a more intelligent use of
and for carbon. Consequently, the decision of the climate summit in Paris [Ref.], which does
NOT pursue the term de-carbonization but supports CO2 neutrality, seems to be a far more
intelligent and informed way to a widely accepted and profitable future.
23
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