An Alternative Route for Coal To Liquids (CTL)...COAL TO LIQUID Date Sources: FT Date Sasol 2004 publication. H-Coal data from HRI1982 publication Gasoline MTG is Relatively Un-coupled

Oil and Coal Reserves (Worldwide)Oil and Coal Reserves (Worldwide)

• Proven oil reserves ~ 1,332 trillion barrels• Todays oil consumption ~ 85 million barrels / day⇒ proven oil reserves horizon at ~ 40 years

• Proven coal reserves ~ 905 gigatons• Todays coal consumption ~ 5 gigatons / year⇒ proven coal reserves horizon at ~ 180 years

⇒ Coal will by far outlast crude oil

⇒ Difference increases under consideration of estimated resources

Crude Oil Price DevelopmentCrude Oil Price Development

⇒

Crude Oil Prices recover from near-term decline in course of the world-wide financial and economic crises

⇒

Crude Oil Price in Reference Case is projected to reach 130 USD/bbl (in 2007 dollars), respectively 189 USD/bbl (nominal dollars) in 2030

Price Developments Crude Oil vs. Natural Gas vs. CoalPrice Developments Crude Oil vs. Natural Gas vs. Coal

⇒ On the contrary: Coal prices remain stable below 3 USD / MMBTU⇒ Feasibility of Coal to Liquids will continuously increase

Source: EIA Annual Energy Outlook, 2009, Early Release

Energy Prices, 2007 dollars per MMBTU

Coal to Liquids is moving forwardCoal to Liquids is moving forward

• Shenhua Coal to liquids (DL); started-up end 2008

JAM Coal to liquids (MTG); start-up 1st half 2009

Baard Energy ORCF Project; Wellsville, Ohio

DKRW Energy CTL (MTG); Medicine Bow, Wy

TGDS CTL (PDQ + MTG), Mingo County, WV

• Further projects e.g. in India, Australia, South Africa etc.

• Focus in Europe on BTL

http://upload.wikimedia.org/wikipedia/commons/a/a4/Flag_of_the_United_States.svg

Liquid Fuels

Options for Coal To LiquidsOptions for Coal To Liquids

Gasification MeOH MTG

Gasification F-T Refining

Coal

Gasification

DirectLiquefaction Refining

• All three routes: three step processes• Thermal efficiencies: essentially governed by the carbon hydrogen ratio of the feed

and the fuel products.

Unique Shape Selective ChemistryUnique Shape Selective Chemistry

Methanol

Water

Gasoline

• Unique “Shape Selective” chemistry discovered in the early 1970’s

• Development done through the 70’s/80’s on a variety of process options

• Plant started up 1985 and operated successfully for ~10 years until conversion to chemical grade Methanol production

• Second generation Coal based plant scheduled for mid 2009 start-up in China

• Additional plant in Engineering for Medicine Bow, Wyoming

MTG Was Commercially OperatedMTG Was Commercially Operated

Commercial 14500 BPD plant in New Plymouth New Zealand. Plant ownership 75% NZ Government and 25% ExxonMobil.

MTG SynGas and MeOH Generation

2nd Generation MTG Technology2nd Generation MTG Technology

ExxonMobil is the world leader In catalyst development and we manufacture our own catalysts.

• Second Generation Design based on learning's from 10 years of NZ operation

• Improved heat integration• Improved process efficiency• Process re-optimized for coal-based

methanol

Reduced capital costReduced operating cost

JAM MTG Plant, Jincheng, ShanxiJAM MTG Plant, Jincheng, Shanxi

2500 bbl/d plant as part of CTL demo plant; Start-up in 1st half 2009

Picture courtesy of Shanxi Jincheng Anthracite Coal Mining Group

MTG Process Flow DiagramMTG Process Flow Diagram

LPG

Light Gasoline

FinishedGasoline

Treated GasolineHeavy

Gasoline

DME Reactor MTG Reactor(Multiple)

BlendingBlending

Compressor

C2-

Stabilized Gasoline

LPG

DeEthanizer Stabilizer StabilizerSplitter HGT Reactor

Product and Process Simplicity for MTGProduct and Process Simplicity for MTG

DEWAX

NaphthaReforming

HDT/HDC

Fischer Tropsch Fischer TropschCo Catalyst @220C Fe Catalyst@340C

Fuel Gas 6 15 1.1LPG 6 23 10.0Naphtha 19 36 88.8 36.7Distillate 22 16 43.3Fuel Oil/Wax 46 5 20Oxygenates 1 5 0.1 0.34

MTG H-Coal™ Direct Liquefaction

HDT

NaphthaReforming

HDT/HDC

NaphthaReforming

HDT/HDC

PolygasProcess

Recovery

REF

INER

YC

OA

L TO

LIQ

UID

Date Sources: FT Date Sasol 2004 publication. H-Coal data from HRI1982 publication

Gasoline

MTG is Relatively Un-coupled TechnologyMTG is Relatively Un-coupled Technology

Products HC Yields

Gasoline ~89%

Fuel Gas ~1%

LPG ~10%

PRENFLOGasification

Hvy. Gasoline Treating

GasolineGasolineBlending

Heavy Gasoline

O2

LPGMethanol Synthesis

MTG Unit

CO-ShiftGas Treatment Fractionation

Feed Preparation

MTG Reactors

Coal / Biomass

Hydrogen

Main Advantage vs. Fischer-Tropsch: MTG is uncoupled from gas generation

(methanol storage tank)

MTG has signifcantly less tailgas than FTMTG has signifcantly less tailgas than FT

Tail Gas is approx. 15 times less than in FTPRENFLO

Gasification



Heavy Gasoline

O2


CO-ShiftGas Treatment FractionationMTG Reactors

Coal / Biomass

Hydrogen

Feed Preparation

Not self-sufficient plant setupNot self-sufficient plant setup

• Maximisation of Liquid Yield (>20% higher than in FT)• Maximum carbon mitigation efficiency possible• Minimisation of other emissions

PRENFLOGasification



Heavy Gasoline

O2



Coal / Biomass

Hydrogen

Feed Preparation

Self-sufficient plant setupSelf-sufficient plant setup

• Maximum flexibility to adjust to project specific requirements (power, carbon mitigation requirements etc.)

• High overall CTL efficiency

PRENFLOGasification



Heavy Gasoline

O2



Coal / Biomass

Hydrogen

Power / Steam Production

Feed Preparation

Case Study: CTL based on MTGCase Study: CTL based on MTG

GasificationPRENFLO** CO-Shift

S Recovery

Sour Gas

MTG *Unit

AGRRectisol

Tail Gas

Raw Methanol

(max. 4% H2 O)

MethanolUnit

CO2

Sulfur

ASU N2 & CO2 Compression

Oxygen

Air

N2 & CO2 to consumers Gasoline

LPG

CO2 to Compression

CO2 from AGR

Coal

* MTG: ExxonMobil

** PRENFLO with Direct Quench (PDQ): Uhde

Appr. 2% CO2

• Lignite with high water and medium high ash content• Hard coal with a low water content and a medium high ash content

Case Study: PRENFLO PDQ, Gasifier and Key FeaturesCase Study: PRENFLO PDQ, Gasifier and Key Features

pressurized entrained-flow gasification: 25-42 bar

dry coal dust feeding: with N2 or CO2 as transport gas

oxygen as gasification agent

temperature in gasifier: 1,350-1,600 °C (slaggingconditions)

4-6 side burners, tangential flow

Gasifier protected by membrane wall (steam) and slaglayer

Full water quench for syngas saturation

Simple and robust process concept

Case Study: CTL based on MTG - ResultsCase Study: CTL based on MTG - ResultsItem Unit Lignite Hard Coal

Not self-suff. Self Suff. Self. Suff.

Coal Feed ar t/h 674 913 378

Coal Feed t. Gasif. t/h 425 570 353

Gasoline @92 R+0 bbl/d 18,000 18,000 18,000

LPG bbl/d 3,300 3,300 3,300

Thermal Efficiency

Overall CTL* % on HHV n.a. Base +5.4%

Specific CAPEX ** USD/bbl Base + 32.8% +26.6%

* Reported CTL efficiencies very strongly dependent on utility and upgrading assumptions, CO2 disposition assumptions, coal quality etc.

** Reported CAPEX figures vary strongly; comparability only given, if basis for CAPEX is transparant and comparable

Summary and Key Project ConsiderationsSummary and Key Project Considerations

Market– Market forecast (e.g. EIA, IEA) demonstrate viability and necessity of CTL (and

BTL) for securing future liquids demand

Minimum Technical Risk– Methanol to Gasoline (MTG), PRENFLO Gasification and Methanol Synthesis are

commercially proven technologies

Simplicity– MTG does not require a “refinery” to make a marketable fuel product.

Operability and Availability– Methanol is storable which enhances operability between stages as well as plant

availability

Flexibility– MTG can be used for methanol from other sources.– CTL/MTG allows maximisation of liquids yield and CTL efficiency– MTG allows maximum flexibility in CTL plant set-up, taking into account project

specific considerations (such as power availaibility, carbon mitigation requirements etc.)

• EMRE provides licenses for Methanol to Gasoline Technology

• EMRE provides basic engineering design package for licensees to perform detailed engineering design and construction.

• EMRE provides catalysts for the MTG process.

• EMRE provides assistance for start-up and troubleshooting.

• Uhde provides feasibility studies for the entire process of clean gasoline production from coal. The study includes gasification, gas treatment, methanol synthesis and MTG.

• Uhde provides licenses of different gasification technologies to meet customer’s specific need.

• Uhde also provides methanol synthesis technology.

• Uhde is a full range EPC contractor.

EMRE/Uhde Partnership Provides Full Range of CTL Services EMRE/Uhde Partnership Provides Full Range of CTL Services

Gasification Methanol

MTG

Coal

Gasoline

Thanks!Thanks!

TransGas CTL (MTG) plant, Mingo County, WV, USA; employing 2 PRENFLO PDQ gasifiers and MTG for 18,000 bbl/d gasoline

TheThe imagesimages containedcontained herein herein areare thethe propertyproperty of "of "TransGasTransGas DevelopmentDevelopment Systems, LLC" and Systems, LLC" and areare protectedprotected byby intellectualintellectual propertyproperty lawslaws of of thethe United United StatesStates and and otherother countriescountries

Slide Number 1Oil and Coal Reserves (Worldwide)Crude Oil Price DevelopmentPrice Developments Crude Oil vs. Natural Gas vs. CoalCoal to Liquids is moving forwardOptions for Coal To LiquidsUnique Shape Selective ChemistryMTG Was Commercially Operated2nd Generation MTG TechnologyJAM MTG Plant, Jincheng, ShanxiMTG Process Flow DiagramProduct and Process Simplicity for MTGMTG is Relatively Un-coupled TechnologyMTG has signifcantly less tailgas than FTNot self-sufficient plant setupSelf-sufficient plant setupCase Study: CTL based on MTGCase Study: PRENFLO PDQ, Gasifier and Key FeaturesCase Study: CTL based on MTG - ResultsSummary and Key Project ConsiderationsEMRE/Uhde Partnership Provides Full Range of CTL Services Slide Number 22

Documents

An Alternative Route for Coal To Liquids (CTL)...COAL TO LIQUID Date Sources: FT Date Sasol 2004 publication. H-Coal data from HRI1982 publication Gasoline MTG is Relatively Un-coupled