Benchmarking Suppliers Of Process Plants

Global Industrial Gas Consultants

Global Hydrogen

August 2014

Benchmarking Suppliers

of Process Plants

The following document is for the exclusive and confidential use of the person or organisation to whom it is addressed. It must not be copied or reproduced for any reason nor provided to any other party without the formal consent of Esprit Associates. Esprit Associates warrants that all work carried out for this document is original and professional but no warranty of any sort is given about the completeness or accuracy of this report. Esprit Associates therefore accepts no liability for any errors or omissions. The reader is wholly responsible for any resulting actions without redress to Esprit Associates for the consequences of such actions.

© Esprit Associates 2014 2

CONTENTS Page [1.0] Introduction 3 [2.0] Objectives 7 [3.0] Scope of Work 8 [4.0] Company Profiles 11 [5.0] Technology Outlines 14 [6.0] Vendor Information 17 [7.0] Comparisons and Evaluation 47


Benchmarking Suppliers of Process Plants for Hydrogen Production

[1.0] INTRODUCTION

The hydrogen business has been area of strategic focus for a number of years by both industrial gas companies and hydrogen users. Several clients have expressed the wish to understand the capabilities and competitive position of major suppliers of large-scale hydrogen production plants that are suitable for onsite hydrogen projects. Esprit therefore carried out a benchmarking study in 2009. This has been updated using more recent information. Esprit emphasises that the exercise is based on two plant sizes that are representative and carefully chosen utility costs. Other sizes or conditions may give different answers. This report provides readers with an independent assessment of key technology and equipment suppliers. All information obtained from suppliers has previously been published and is in the public domain. Suppliers were informed that the study was for major chemical process sector companies with an interest in future purchases of hydrogen plants or hydrogen and that only public domain information should be provided to Esprit. In the event, some suppliers declined to participate fully on this basis and two did not even reply. The only consequence was a lack of consistent budgetary pricing from these suppliers and a lost opportunity to influence the outcome. Esprit has been able to model most costs from historical, public information. Some smaller suppliers such as Howmar and Caloric did not have adequate references in the size range chosen and were not included. This should not be read as a criticism. The findings of the report are that all of the major suppliers can provide plants that will produce hydrogen economically and reliably. The final choice of vendor will depend on local economics and market (profit expectations) conditions at the time. All players claim proprietary technology features to enhance performance, economics or durability, but generally their competitors have similar features or their own proprietary technology that will provide the necessary performance. A typical example is in the claims for PSA’s where the outcome was essentially identical for all vendors but each claimed technology advantage, experience and optimised sizing. In this exercise we asked for plants designed without special features, such as air pre-heat, which would reduce “natural” steam make. It is possible that some vendors have included these features without identifying them. It should be noted that the most uncertain quantities in the exercise are the capital cost figures. Only four vendors provided defined budget bids and the remaining numbers were found in reference plants. The capital is obviously very dependent on the scope definition, which in many cases appeared to be shortened to give a low capital figure. Fortunately Esprit has an extensive modelling capability and we have been able to adjust for perceived major omissions. In the event uncertainty about the capital employed, at 10% IRR and 15


year depreciation life, has lesser impact on hydrogen cost, than to energy efficiency, which is generally well defined in their literature. The evaluation of the hydrogen prices is complicated by the costs or credits assigned to feed and fuel, steam, power, cooling water and demineralised water. In addition the fixed operating costs can vary from site to site. Vendors quoted various figures for, for example, manning but there were no obvious reasons why any of the plants would have required more or less than 1 man per shift plus some supervision and this was used in all cases. Likewise maintenance was fixed at 1.8% of capital, excluding catalyst replacement costs and major spares, which is in line with industry norms. In the case of the smaller plants, all vendors said that they could offer special reformer configurations for small plants, generally of a tubular heat-exchanger design, but most were limited to sizes below 10 mmscfd and only Haldor-Topsøe provided references for using two 10 mmscfd units to provide 20 mmscfd and Linde referenced smaller plants. Most vendors would provide a standard box furnace design. In the main body of the report we look at the influence of steam credits and natural gas pricing on each vendors offering, but in general this changes only the degree of difference and not the ranking. It is clear that some vendors have more efficient plants than others, as measured by specific consumption of natural gas, but this is often offset by lower steam production, which suggests that some other economiser mechanism has been built in with the consequent small increase in capital. The evaluation must be used with care, but the insensitivity to capital can be seen by the fact that putting zero capital into the Haldor-Topsøe case would yield a cost of $2.79/mscf only if we assume maintenance also reduces and overheads also reduce, otherwise the cost would be $2.99/mscf. Even changing the discount rate from 9.5% to 15.5% only just makes up for the lack of steam production, the cost gap changes but only by $0.06/mscf to a $0.02/mscf advantage over the next worse. The benchmark is still $0.57/mscf better. Essentially this offering only really makes sense when steam has little value. Haldor-Topsøe’s large plant performance is much better.


Table 1.1 Small Plant Details

In the case of the larger plants, shown in table 1.2, the evaluated costs are very close for all of the main vendors. Foster-Wheeler is again the lowest evaluated by a combination of low capital and good energy efficiency. The differences in overall cost between the remaining vendors are dealt with in the main body of the report but may be explained by scoping differences and by some uncertainty in the exact performance quoted. Many of the vendors quote natural gas consumption in volume units and/or net of steam credit without explaining the basis of the credit. The only value that seems out of line is the Technip number, which is high for the market leader. However the values are consistent with recent contract awards. In the end any of the vendors may be competitive based on local conditions and economics. They will all adjust their profit mark-up depending on the state of their order book and the importance of the project in question. They will also adjust the performance of the plant in terms of fuel and feed use versus steam make to offer the apparent optimum solution.

Consumptions per

1000 scf of

Hydrogen T echnip

Ha ldor-

T opsøe Linde

Foste r

Whee le r

Capita l millions $26 $20 $28 $17

Production mmscfd 20 20 20 22

Fue l & Feed mmbtu 0.47 0.42 0.43 0.44

Feed and Fue l

scf[1] 448 395 435 418

Make up wate r mt 0.05 0.01 0.04 0.04

Net Make -up less

Steam mt 0.02 0.01 0.01 0.01

Cooling Wate r mt 0.08 0.11 0.09 0.03

Electricity kWh 0.39 0.8 0.64 0.74

Export steam mt 0.03 0 0.03 0.03

Capita l $ $34.78 $26.8 $36.8 $23.7

Hydrogen cost

Capita l $0.56 $0.44 $0.60 $0.37

Power and energy $2.52 $2.76 $2.28 $2.26

Other $0.30 $0.23 $0.31 $0.25

T ota l $ per 1000

scf $3.39 $3.43 $3.20 $2.88


Table 1.2 Large Plant Details

Consumptions per

1000 scf of

Hydrogen T echnip Lurgi

Ha ldor-

T opsøe Linde UHDE

Foster

Whee le r

Howe-

Baker

Capita l $78 $78 $80 $78 $88 $75 $83

Millions

Production mmscfd 80 80 80 80 90 80 80

Fue l & Feed mmbtu 0.46 0.42 0.43 0.42 0.45 0.43 0.49

Feed and Fue l scf 436 400 405 431 425 407 468

Make up water mt 0.05 0.03 0.04 0.04 0.04 0.08 0.05

Net Make-up less

Steam mt 0.02 0.01 0.02 0.02 0.02 0.04 0.01

Cooling Water mt 0.08 0.08 0.1 0.08 0.09 0.03 0.01

Electricity kWh 0.38 0.45 0.72 0.57 0.5 1.2 0.52

Export steam mt 0.03 0.02 0.03 0.02 0.03 0.04 0.04

Capita l $ $25.9 $25.8 $26.8 $25.9 $26.2 $25.1 $27.6

Hydrogen cost

Capita l 0.43 0.43 0.44 0.42 0.43 0.41 0.45

Power and energy 2.44 2.44 2.32 2.32 2.37 2.15 2.42

Other 0.15 0.15 0.12 0.15 0.14 0.15 0.15

T ota l $/1000scf 3.02 3.01 2.88 2.9 2.94 2.71 3.02


[2.0] OBJECTIVES

The object of the study was to provide an independent overview of the technical and economic competencies of leading suppliers of hydrogen production plant, particularly larger steam-hydrocarbon reformers. It includes:

A description of the product range for each supplier

A techno-economic analysis of two plant sizes for each supplier with subdivision, if possible, into pre-treatment, furnace, PSA and steam capacity.

Plant sizes of 20 mmscfd and 80 mmscfd were chosen

An identification of current alliances and agreements

A brief overview SWOT analysis based on technology and markets


[3.0] SCOPE OF WORK

[3.1] GENERAL

3.1.1 Geography The report focuses on European and US suppliers

3.1.2 Units Used Volumes in normal cubic metres (Nm3) or standard cubic feet (scf) Energy in Gigajoules (GJ) or millions of British thermal units (Mbtu) Values in US Dollars ($) or Euros (€).

[3.2] COMPANIES

Esprit originally approached the following companies: CPI Howe-Baker Johnson Matthey Davy Technology Foster Wheeler Haldor-Topsøe Howmar Linde Lurgi Uhde Others Information on Technip was sought by research.

[3.3] BENCHMARK

Esprit asked for information on vendors nearest standard offerings to the following sizes: 20 mmscfd and 80 mmscfd


3.3.1 Product and Feedstock Issues Esprit standardised natural gas supply and hydrogen delivery conditions to ensure a fair comparison. Esprit also provided a consistent view of steam value and financial evaluation criteria.

3.4.1 Base Case Feedstock, Financial and Scope Natural Gas Feed: Pressure 24 bar g (approx. 350 psig) Price US$ 6.50 / mmbtu Electricity: US$ 55.0 / MWh Other utilities available at battery limits include demineralised water, cooling water, and MV and LV power, DCS data highway to owner’s control room. Steam Value: 1.1 times energy content costed as natural gas (for 40 bar superheated) 3.4.2 Hydrogen Delivery Conditions Pressure 18 bar g minimum (approx. 260 psig) Purity 99.99% CO 50 ppm max

3.4.3 Required Information

Specific consumptions per 1000 scf hydrogen: Natural Gas (Btu Higher Heating Value) Power Cooling Water Demineralised Water Optimum Steam Make Manning Requirements Availability Technical Data: Design Catalyst Life


Design Tube Life Maximum Heat Flux allowed on waste heat recovery boilers Change in performance with time due to system degradation Any special features General technical description Turnkey Budget Capital Cost


[4.0] COMPANY PROFILES & BUSINESS

[4.1] CBI Howe-Baker

Howe-Baker is a wholly owned subsidiary of CB&I a major American public company.

[4.2] Johnson Matthey Davy Technologies Ltd

In 2005 Davey re-entered the business without recent examples of hydrogen plants and formed One Synergy Alliance which claimed that: “Johnson Matthey Catalysts, Johnson Matthey Davy Technology and Aker Kvaerner have come together to form One Synergy, bringing you the simplicity of a single source for global-scale syngas and methanol plants, providing:

world-class technology,

high performance catalysts,

conceptual design and licensing,

basic and detailed engineering,

procurement and construction,

commissioning and start-up,

On-going operational support. Davy has gone through a traumatic few years having been bought and sold a number of times. The company was formerly owned by Kvaerner, and then was independent for a few years. It had a leading edge technology laboratory at the University of Stockton site and was a technology driven process contractor. In its former life as Davy McKee and Davy Powergas, the company built a number of large hydrogen plants for the petrochemical industry. Its weakness was the need to re-establish itself. In 2006 it was taken over by Johnson Matthey but allowed to function as a wholly owned subsidiary. Its markets are mainly in developing countries and hydrogen technology is generally a precursor to other downstream proprietary technology offerings.

[4.3]Foster Wheeler

Forster-Wheeler is a major international Engineering Contractor and is a US public company. Much of its international business in hydrogen plants is conducted from its European Headquarters at Reading, UK. It is unaligned, although it did have a successful relationship with BOC before BOC’s technology agreement with Linde. It even participated financially with BOC in one on-site in Venezuela through its Foster Wheeler Energy Division. Foster Wheeler’s strength is that it is a full range contractor with its own licensed processes. It has a full range offering of petrochemical and energy projects. Its weakness is the financial difficulties of the US parent corporation. Foster Wheeler offers a full range of hydrogen plants, with most process options


available, and can build them on a world-wide basis. It has subsidiary offices in all continents.

[4.4]Haldor-Topsøe1

Haldor-Topsøe is a public company based near Copenhagen in Denmark. Its principle activity is catalyst development and process licensing of their uses. It had an Alliance for hydrogen with Air Liquide. Haldor-Topsøe’s strength is in its chemical engineering development of reformer systems and appropriate catalysts. It is particularly strong in sulphur-passivated catalysts for carbon monoxide production at low steam-to-carbon ratios. Its weakness is that it does not have a full range contractor competence and thus works with others to offer turnkey plants on a world-wide basis. It is capable of delivering the full size of hydrogen plants and has the most developed convective reformer offering.

[4.5] Linde

Linde is a global public company headquartered in Munich, Germany. It has a major industrial gas business and a large engineering business which offers a full range of petrochemical plants. It had a technology supply agreement with BOC before BOC became part of Linde, but was able to offer plants to other companies. Linde’s great strength is in its integrated engineering and manufacturing business. It is capable of offering the full range of options for hydrogen production including secondary and tandem reforming on a world-wide basis. It has methodised its production and technology base to be very competitive. Its weakness is in its ability to customise. It is at its very best when offering a “standard” product.

[4.6]Lurgi2

Lurgi was a wholly owned division of Metallgesellchaft AG, or MG Technology AG as it is now known, before its acquisition by Air Liquide. Lurgi still functions as an independent company and its primary business is chemical plant contracting. Lurgi is a full range process contractor with its own licensed technologies. It has a wide range of successful petrochemical offerings and a leadership position in methanol plants. It can offer most process options for hydrogen production but its weakness is that it is most competitive only at the larger end. It has a world-wide client base.

[4.7]Technip

1 The alliance with Air Liquide dissolved with the Air Liquide acquisition of Lurgi 2 Lurgi Is now wholly owned by Air Liquide


Technip is a French public company with a broad range of international contracting activity. Its former KTI division has design and project offices in Holland, Italy and California, USA. It has an alliance with Air Products. In hydrogen Technip can offer most production technologies, but is at its best with steam reforming. It is the market leader with an approximately 40% market share. Through its relationship with Air Products it has improved the reliability of its offerings and has a wide range of bolt-on environmental equipment to meet local needs. Its strength is in its broad experience of plants and its ability to design furnaces. It also has the strength of the major project execution competence of the Technip Group. Its weakness is in continued optimisation of process efficiency. It sells to a world-wide market

[4.8]Uhde

Uhde is a wholly owned subsidiary of the ThyssenKrupp group which is a major public company based in Germany. Thyssen is one of the leading steel producers and Krupp is an internationally renowned engineering company. Uhde have a full range of process offerings for hydrogen production including a combined POX and Autothermal System CAR™ for smaller sizes. Uhde’s strength is its competitiveness at the large end of the business. It also has benefits in material procurement and engineering contracting through its parentage. Its weakness is that it has failed to penetrate the on-sites business and that it is less successful at the smaller end of the market. It now has a technology alliance with Praxair Inc. which closely mirrors the Air Products – Technip relationship.


[5.0] TECHNOLOGY OUTLINES

The basic configuration of a steam methane reformer is shown in figure 5.1 The system has four basic components:

The reactor / furnace to make Syngas

Shift reactors to increase hydrogen content

Heat recovery systems with export steam or power system

Gas separation and purification The key design targets for the supplier are to optimise both operating costs and capital and to provide a high reliability plant. All suppliers follow the basic process description below. The differences are in the physical design of the equipment used and the corresponding efficiency of the process.

Figure 5.1 Basic SMR

The natural gas feed, after compression if necessary, is fed at a pressure of around 300 psig to the process equipment. The nickel-based catalyst used in the process is sensitive to impurities such as copper, lead, phosphorus, antimony and sulphur. All impurities except sulphur are usually excluded by specification and design and if necessary pre-treatment may be installed to remove sulphur. Typically this would be

BFW

H2PRODUCT

FUELGAS

REFORMER

MIXED FEEDPREHEAT

STEAMSUPERHEAT

BOILER

DESULFURIZER

STEAM BFW

PROCESS GASBOILER

HIGHTEMP.SHIFT

CONDENSATE

LOW TEMP.SHIFT

STEAM

BFW

BFWPREHEAT

STEAM DRUM

NATURALGAS FEED

EXPORTSTEAM

I DFAN

PURGE GASTO REFORMER

FUEL

H2PRODUCT

FUELGAS

REFORMER

MIXED FEEDPREHEAT

STEAMSUPERHEAT

BOILER

DESULFURIZER

STEAM BFW

PROCESS GASBOILER

HIGHTEMP.SHIFT

CONDENSATE

LOW TEMP.SHIFT

STEAM

BFW

BFWPREHEAT

STEAM DRUM

NATURALGAS FEED

EXPORTSTEAM

I DFAN

PURGE GASTO REFORMER

FUEL

PSA


carried out over a cobalt-molybdenum catalyst to convert organic sulphur to hydrogen sulphide. The gas would then pass over a zinc oxide bed at 340 deg C to reduce sulphur to 0.1 ppm, which the catalyst can tolerate. The natural gas is then mixed with steam and fed to the reformer tubes, which operate at 800-1000 deg C and the methane is converted into a mixture of hydrogen, carbon monoxide and some carbon dioxide.

Figure 5.2 Typical box reformers

The reformer furnace or reactor is a direct fired reactor with catalyst filled tubes in a firebox. Heat transfer to the catalyst tubes is by both radiation and convection. In general, below 10 Mmscfd it is possible to design cylindrical reformers, which allow for a more compact design and claimed better heat integration. Above 10 Mmscfd reformers are usually of a box design with top or side firing.


The catalyst commonly used is 16-20% NiO on alumina (as typically 5/8” Raschig rings). This is activated by reduction with steam to nickel. It is tolerant of small amounts of sulphur and, if poisoned by sulphur, can be reactivated with steam. The reformer tubes are made from high-temperature, high-nickel alloys and are about 30% of the cost of the reformer. Creep failure of the tubes is a basic design parameter and good design includes allowances for occasional excursion of tube temperature to above normal operating temperatures. Typically tubes are 4” diameter and 10m long. Process operating considerations include maintaining an appropriate steam-to-carbon ratio in the feed to avoid carbon formation through methane cracking or the Bouduard reaction (2CO > C + CO2). Carbon formed in any process upsets can be removed with steam at the cost of some degradation of the catalyst structure and hence catalyst life. Since the reformer tubes undergo considerable expansion from cold conditions to operating temperature the design must include piping configurations that allow for low stress expansion and contraction of the tubes and do not fail through cyclic fatigue. The next challenge for the reformer designer is to cool down the reformed products and at the same time recover as much heat as possible, to optimise the thermal efficiency of the process. This can be done in a number of stages, but generally the process gases are cooled in a waste heat boiler (heat recovery steam generator) and the steam is then superheated by the effluent combustion gases. The effluent combustion gases are first used to pre-heat the reformer mixed feed and then to raise and / or superheat steam. The steam is a source of feedstock for the reaction and excess steam can be sold or converted into power. Different designs of reformer have different “natural” steam makes, depending on the effectiveness of the use of the waste energy in conditioning the process feedstock. The key design consideration is the energy use per unit of product when due account has been taken of any co-product (steam or power) credits. Key design issues for the heat recovery section include the effectiveness of internal insulation on transfer headers – to avoid the use of high cost metals in their construction – and the allowable heat flux in heat exchangers which has a major impact on the operating life of such exchangers. The stoichiometric hydrogen to carbon monoxide ratio from steam methane reforming, in the absence of side reactions, is three to one (CH4 +H2O > 3H2 + CO), but typically ratios of six to one are more common with similar amount of carbon dioxide to carbon monoxide and a few percent unreacted methane. When the desired product is syngas or carbon monoxide, carbon dioxide can be recycled or even bought in to reduce this to less than two to one. In this study we are concerned with hydrogen production and thus the next step is to “shift” the carbon monoxide to hydrogen by reaction with steam. This is done in one (or sometimes two stages) by passing the product gas over a copper based catalyst at 170 deg C – 250 deg C, (low temperature shift or an iron based catalyst at 300 deg C – 500 deg C ( High Temperature Shift), where the carbon monoxide content is reduced to less than 0.25 vol %.


The product gases are then passed to a pressure swing adsorption system, PSA, where hydrogen with purities up to 99.99% are produced and carbon monoxide levels are reduced to an acceptable level for downstream catalytic processes, generally less than 50 ppm and often less than 10 ppm. The recovery of hydrogen in the PSA is usually better than 85% and the purge gas from the system is used as fuel gas for the reaction furnace. Additional equipment usually includes buffer storage for the fuel gas, to iron out pressure fluctuations, and often an extra process vessel to allow one vessel to be dropped out for maintenance or repair (generally valves). Key issues are purity levels, recovery and availability It is possible to use heavier feedstocks in the SMR, such as LPG or Naphtha, but this usually requires a pre-reformer catalyst system to “crack” the molecules into smaller molecules. Other pre-treatment to prevent catalyst poisoning might also be necessary, particularly if the feedstock comes from several different sources.

[6.0] VENDOR INFORMATION

[6.1] CPI Howe-Baker

6.1.1 General Technology Description Little information was available from Howe-Baker except through their web-site. The details of their SMR are identical to the general claims of Lurgi and Technip. They build top-fired reformers with claims of high efficiency and reliability. They do provide a significant amount of information about performance.

6.1.2 Performance Details. Hydrogen 99.99% CO + CO2 <50 ppm PSA recovery 85%+ Delivery Pressure 20 barg Steam Export 136 tph 40 bar 370 deg C Specific Consumptions per mscf Hydrogen Cooling water 14 kg Make-up Water 54 kg Fuel & Feed 0.492 mmbtu


Power 0.52 kWh Plant Life >15 years Capital MM $83 +/- 30%

[6.2] Johnson Matthey Davy Technology

[6.2.1] General Technology Description No details were available but in 2005 they made the following claims: “Johnson Matthey Catalysts brings know-how in steam reforming, methanol technology and catalysis, having acquired the Synetix catalyst business from ICI, who introduced low pressure methanol (LPM) in the 1960s. Today over 50% of the world’s methanol is still produced using this technology. We have a similarly strong catalysis position, with the KATALCO™ brand the number one for both methanol synthesis and steam reforming catalyst across the syngas market. Our unique experience includes detailed operation of syngas plants through our ICI heritage and assistance to our catalyst customers. This makes us ideally placed to further develop technology in the syngas industry. Our gas heated reforming (GHR) technology is an integral part of both the leading concept methanol (LCM) process and the syngas generation process for Fischer Tropsch. Davy Process Technology has always derived its strength from close collaboration with chemical and catalyst companies to develop process technologies with improved performance. As the world’s leading LPM methanol technology provider its plant designs account for approximately 40% of global licensed capacity. We have also developed ILPM technology used by the world’s largest methanol plant, M5000 in Trinidad. As the major supplier of synthesis gas, hydrogen, town gas and related technologies, we have significant experience in the design of reformers. A joint development programme has resulted in the design of the compact reformer (CR), currently being demonstrated and expected to make a valuable contribution as the generator of syngas for methanol and Gas to Liquid fuels (GTL). Aker Kvaerner are a leading global provider of engineering and construction services, technology products and integrated solutions with over 22,000 employees in 30 different countries. Our extensive design and construction experience includes 18 methanol facilities around the world, ranging from a few hundred metric tons capacity per day to the largest single stream plant currently in full operation. Aker Kvaerner plants of all sizes have a reputation for starting up on time and quickly reaching desired production rates. We have also leveraged our world-renowned offshore oil and gas project expertise to develop innovative conceptual designs for floating methanol production facilities. Whether your planned methanol capacity is new or an expansion, stand-alone or integrated with other chemical production, we offer the technical


expertise, resources, and local knowledge needed to help make your project a success.” The acquisition by JM strengthened the access to new catalysts.

[6.3] Foster Wheeler

6.3.1 General Technology Description 6.3.1.1Process Reliability “Foster Wheeler Hydrogen plants are proven to be highly reliable right from start-up. The Huntsman Teesside hydrogen plant commissioned in January 2002 achieved an impressive 98.2% availability in its first three months of operation. Our expectation of the hydrogen plant availability can be further illustrated by the performance of the Foster Wheeler/BOC Steam Methane Reformer at Lagoven in Venezuela. This hydrogen plant is the largest in South America with a capacity of 120 tpd. Over a 16-month period the plant was shut down for 76 hours. This is equivalent to an availability of 99.3% and is further evidence of the excellent performance of Foster Wheeler hydrogen plants. The availability and reliability attained is a combination of plant design capability coupled with operations performance and maintenance performance. During the design phase of a Foster Wheeler Hydrogen plant, high availability and reliability is predicted primarily through the selection of proven technology and equipment and provision of appropriate back-up and equipment redundancy in critical areas. The following features are incorporated in the design to maximize plant availability and reliability:

Addition of redundancy in the design through provision of 2 x 100% duty installed boiler feed water pumps and boiler water circulation pumps both with automatic switchover on pump stoppage.

Shortening of restart times e.g. through the identification of trips that can safely result in the Reformer entering minimum firing mode instead of complete unit shutdown hence shortening the time required to bring the plant back to full capacity after the trip being activated.

Complexity is designed out by incorporating lessons learnt from many operating FW hydrogen plants into the design.

Application of two out of three voting logic to trip sensors.

Adequate warning will be built into the safety circuit to allow trained operating staff to respond and avert an impending shutdown.


The use of well-established and proven Foster Wheeler reformer configurations is judged to support stable and reliable operation. Several notable contributory features of the design are listed below:

The use of modern high-strength micro-alloy for the reformer to reduce failure rates and extend component life.

Tube life is extended by ensuring uniformity of heat distribution along the length of the furnace. This is assured by the special burner design, which provides for a continuous arrangement with no marked discontinuity.

The design provides for ample spacing between tubes so as to utilise the tube surface to the highest degree of effectiveness without excessive metal temperature. This reduces tube failure rates and extends component life.

Reformer tubes will be supported by top counterweight and bottom guides with Teflon sliding plates provided to minimise sliding friction. This reduces tube failure rates and extends the component life.

The use of pusher bars, short pigtails and an insulating box that contains the tube outlets, pusher bars, pigtails and outlet manifold ensure the critical high temperature outlet pigtail/ outlet manifold system is essentially stress free. This reduces failure rates and extends the component life.

Shutdown frequency is reduced because the removal of one burner gun for maintenance has minimal effect on furnace operation due to the wall radiation effect in a FW TERRACE WALL™ design.

Shutdown frequency is reduced because in the instance of a failure the individual reformer tubes are each capable of being isolated through pigtail nipping while the plant is on-line, pending a period for safe shutdown and repair.

The hydrogen plant is designed with a continuous run time of 2 years between major maintenance turnarounds. Other than normal inspections and maintenance performed during the major turnarounds, minimal downtime will be required for routine maintenance to the plant.

6.3.1.2 Operating Labour Minimum manning is required for the Foster Wheeler Hydrogen Plant. Maximum use will be made of the DCS for the management of information to the process operator. It is anticipated that a part-time DCS operator and a part-time field operator will be required to operate the unit.


6.3.2 Equipment Details Foster Wheeler proposes to utilise its proprietary TERRACE WALL™ reformer, combined with commercially available technologies for sulphur removal, shift conversion and purification by PSA. Foster Wheeler designed hydrogen plants are highly reliable and provide long on-stream capabilities.

TERRACE WALL™ Reforming Furnace Introduction The Hydrogen Plant offered is based on Foster Wheeler’s standard Hydrogen Plant design. The centre-piece of this design is the Foster Wheeler proprietary TERRACE WALL™ Reformer. The Reformer features a radiant section consisting of a fire-box, containing a single row of catalyst tubes with burners either side of the catalyst tubes arranged in two terrace levels. Hot flue gases are discharged into the convection section. The convection section has several coils, which recover heat from the flue gas leaving the radiant section for various process and utility duties. The reformer is designed to recover as much heat from the flue gas as is economic, whilst avoiding dew point problems. Reformers of this type have been in operation for many years under conditions similar to those used for this Hydrogen Plant design. This technology offers several advantages over competing technologies, namely:

Uniform heat flux distribution giving long reformer tube life

High reliability

Low steam-to-carbon ratio

Positive reformer furnace firing control

Low maintenance requirement


High product gas purity and low product cost Foster Wheeler’s Fired Heater Division engineers and fabricates all kinds of process furnaces including reformers for hydrogen, ammonia and methanol plants. There are three types of furnace in common use today for large-scale hydrogen production, namely downfired, sidefired, and Foster Wheeler’s proprietary TERRACE WALL™ arrangement.

Terrace Wall TM Radiant Section


Foster Wheeler has built a number of downfired and sidefired furnaces, including the largest downfired furnace in the world. 6.3.2.1 Special Features of the TERRACE WALL ™ Reformer The Foster Wheeler designed furnace incorporates unique design features to provide efficient, reliable and controlled heat transfer to the reformer catalyst tubes. The inclined TERRACE WALLS™ are uniformly heated vertically by the rising flow of hot gases, with each terrace capable of being independently heated to provide the particular heat flux desired in its zone. This allows the operator to match the vertical heat flux to the process heat demand within the catalyst tube, thereby avoiding tube hot spots and prolonging tube life. This principal is illustrated in Figures A & B below. The controlled delivery of heat to the reformer catalyst tubes is essential because the process heat demand within the catalyst tubes varies significantly from inlet to outlet, shifts progressively along the tube during the life of the catalyst and also changes with different feedstocks. A hotspot 20°C above design temperature can halve the design life of the tube. The incline of the wall also localizes the effectiveness of the terrace to that portion of the heat-absorbing surface directly opposed to it. Actual experience has shown that the TERRACE WALL™ design accomplishes this to a far greater degree than is possible with any flat wall construction, and is distinctly better than in downfired designs. Uniform heat distribution is also required along the length of the furnace and circumferentially around each tube.

Figure A:Downfired Heater Catalyst Tubes

Distance Down Tube

Heat Flux Max Tubeskin Temperature

Process Gas Temperature


Uniformity of heat distribution along the length of the furnace is assured by the special burner design, which provides for a continuous arrangement with no marked discontinuity. Flame impingement on catalyst tubes is practically impossible in the TERRACE WALL™ design. Uniform heat flux distribution around the circumference of each tube is ensured in the TERRACE WALL™ design by provision of ample spacing between the tubes so as to utilize the tube surface to the highest degree of effectiveness without excessive metal temperature. Even with the most conservative furnace design it should be accepted that a tube failure may occasionally occur. The normal tube failure mode is small cracks or pinholes, which over a number of hours coalesce into a large hole. The resultant flame must be isolated before flame impingement damages adjacent tubes or walls of the furnace causing an emergency shutdown. Unlike downfired furnaces, the Foster Wheeler design incorporates a system where the inlet and outlet of individual pigtails can be nipped on-line. (Nipping is basically squeezing flat a short section of piping to stop flow through the damaged tube) 6.3.2.2 Additional Design Features Additional significant design features are listed below:

Catalyst tubes are supported by top counterweights. Virtually all of the loaded catalyst tube weight is supported.

The inlet manifold/inlet pigtail system is designed to minimize applied stresses to all components in this area.

Figure B: Foster Wheeler TERRACE WALLTM Catalyst Tubes

Distance Down Tube

Heat Flux Max Tubeskin Temperature

Process Gas Temperature


The single row tube arrangement with heating from both sides at two levels eliminates any tendency for tube bowing, thus further minimizing applied stresses to the outlet pigtail/manifold system.

Use of ceramic fibber insulation to the greatest practical extent (rather than firebrick) maximizes reliability and minimizes field erection costs and maintenance.

The plot area is minimized for a given size as a result of mounting the convection section and stack above the radiant section.

During routine maintenance, the removal of one burner gun has minimal effect on furnace operation owing to the wall radiation effect in the TERRACE WALL™ design.

The integrated steam system utilizes a proprietary process gas boiler, which is “close-coupled” to the reformer gas outlet headers. This proven innovative arrangement saves plot space and eliminates high temperature transfer lines.

A natural draft design is possible, eliminating the requirement for fans and improving availability (option 2 only)

6.3.2.3 Recent Developments in Reformer Design Recent developments to improve the design of the TERRACE WALL ™ Reformer include:

Modified geometry of the radiant section to tailor flux profile and improve thermal efficiency without increasing catalyst tube temperature.

Outlet pigtails arranged vertically providing better access for ease of welding and nipping, which dispenses with the need for a cold bottom flange for catalyst removal. Vacuum type catalyst removal systems allow removal of catalyst via the tube inlet flange.

Reduced number of burners by about 30% due to increased capacity with the new burners using staged fuel and staged air combustion techniques for lower NOx emissions.

Modular construction is an available option to reduce site construction time. This is specifically attractive where site construction costs are high.

6.3.2.4 Reforming Catalyst


The reforming catalyst is a high geometric surface area impregnated nickel catalyst. Its shape gives increased packed bed voidage and allows reduced pellet size whilst retaining a low pressure drop. The small pellets enhance heat transfer by increased tube wall contact to give efficient conversion and prolonged reformer tube life. The catalyst change-out is planned into scheduled plant turnarounds. The pellets can be supplied with a single fee “cradle to grave” approach to loading and disposal. The pellets are robust and can withstand thermal cycling such as tube contraction on shutdown with minimal breakage and associated pressure drop increase. They can also tolerate operational upsets such as condensed steam wetting and thermal shocking.”

6.3.3 The 20 mmscfd Plant The scope for the 20 Mmscfd plant varies from the general description above. The basic configuration of the Foster Wheeler is a very simple design:

Hydrodesulphuristion Unit

Zinc oxide reactors

Terrace Wall™ Reformer

Waste heat boiler

High Temperature Shift Reactor

Shift waste heat exchanger

Boiler feedwater preheater

Air Cooling

Water Cooling

Cold condensate drum

PSA

Steam Drum

BW circulation and feed pumps

Deaerator

Natural Draft design without air preheat

Actual Size 25000 Nm3/h (22.4 Mmscfd) Delivery Parameters Hydrogen 99.9% CO + CO2 <10 ppm PSA recovery 89% Delivery Pressure 21 barg Steam Export 29.5 tph at 440 deg C and 39 barg Specific Consumptions per mscf Hydrogen Cooling water 68 lb


Demin Water 97 lb Fuel 329000 Feed 159000 Power 1 hp Catalyst Life >4 years Capital $15 million +/- 30% Plot Size 60m x 50m

6.3.4 The 80 Mmscfd Plant The scope for the larger plant conforms more with the general plant description provided. All of the equipment listed for the larger plant is included and the following additions:

Induced draft fans – but capable of natural draft at 50% capacity on loss of fans. Delivery Parameters Hydrogen 99.5% CO + CO2 <10 ppm PSA recovery 87% Delivery Pressure 23 barg Steam Export 120 tph at 370 deg C and 46 barg Specific Consumptions per mscf Hydrogen Cooling water 467 lb Make-up Water 166 lb Fuel 329000 Feed 159000 Power 15 hp Plant Life >20 years Capital $70 million - $80 million

[6.4] Haldor-Topsøe

[6.4.1] General Technology Description


Haldor -Topsøe offer similar process scope to other vendors for the larger plants, except that they prefer side-fired furnaces which they claim gives better heat transfer and efficiency. Their real difference with other vendors comes in their ability to offer a convection reformer as a standard offering. On the basis of several decades of experience with the design of steam reformers, Topsøe has developed a Convection Reformer. The convection principle allows for the design of very compact reformers and it is therefore well suited for pre-assembled and skid-mounted hydrogen plants. The convection reformer is marketed as the Haldor Topsøe Convection Reformer, The HTCR concept is operating successfully in several hydrogen plants.

[6.4.2] Equipment Details

Figure 6.4.1 Flowscheme

The HTCR process comprises a desulphurization step where traces of sulphur are removed from the hydrocarbon feedstock. Demineralised water is mixed with the desulphurised hydrocarbon feedstock and is evaporated in a saturator before being fed to the HTCR. Here the hydrocarbons react with the steam to form H2, CO and CO2. The reformed gas leaving the HTCR reformer is cooled in a feed/effluent heat exchanger. Then it enters a high temperature shift reactor, where CO and steam react to form H and CO.


Figure 6.4.2 the HTCR

The hydrogen plant is designed for automatic operation between 30 and 100% of rated capacity. The start-up, normal operation and shut-down are carried out by a PLC. A separate PLC is designated for the safety shutdown control system. The requirements for supervision and maintenance of the hydrogen plant are very limited. The condensate is separated before the final purification in a pressure swing adsorption (PSA) unit.


The number of heat exchangers, valves and instrumentation in this type of plant has been reduced compared to a conventional layout incorporating a separate steam system.

[6.4.3] the 20 Mmscfd Plant Delivery Parameters Hydrogen 99.99% CO + CO2 <10 ppm PSA recovery 85% Delivery Pressure 19 barg Steam Export Nil Specific Consumptions per mscf Hydrogen Cooling water 107 kg Make-up Water 14 kg Fuel & Feed 0.416 mmbtu Power 0.8 kWh Plant Life >15 years Capital $20 +/- 30%

[6.4.4] The 80 Mmscfd Plant Little information has been provided about the larger plant except performance numbers which were given at a public lecture and various press announcements on specific project successes. The capital has been adjusted for scope Hydrogen 99.99% CO + CO2 <10 ppm PSA recovery 88% Delivery Pressure 20 barg Steam Export 85 tph 40 bar 370 deg C Specific Consumptions per mscf Hydrogen Cooling water 102 kg Make-up Water 41 kg Fuel & Feed 0.426 mmbtu


Power 0.72 kWh Plant Life >15 years Capital $80 +/- 30%

[6.5] Linde

[6.5.1] General Technology Description Linde have a broad range of technology capability covering all types of syngas generation plant from feedstocks as varied as natural gas and heavy resid. Their chosen design for the plants specified is a top-fired box-type reformer. They provide few details of mechanical design issues but claim a broad and successful implementation of this type of reformer. They claim that top firing has a number of advantages:

Less Maintenance

Easy to operate

Less Burners

Less Piping

Lower Surface Area – Lower Heat Losses

Lower Cost

Ceramic Fibre Lined Fire Box Linde show typical layouts which show well-spaced tubes, but give little detail of tube support systems or transfer headers. Linde give pictorial details of a proprietary isothermal shift reactor and their PSA system, but few operating details.


6.5.1.1 Process Description Brief Process Description of the Unit Natural Gas is taken from battery limit and compressed to the required operation pressure. It is mixed with a small amount of recycled hydrogen followed by heating against converted process gas. He following sequence then occurs:

Hydrogenation of organic sulphur components occurs followed by subsequent H2S-adsorption on zinc oxide in one mutual reactor vessel.

The feed gas is mixed with process steam and is superheated against hot flue gas.

Natural Gas reforming occurs on nickel-based catalyst contained in the heated high-alloy reformer tubes.

Combustion heat supply for reforming reaction at high operating temperature is via top firing induced draft burners.

1-stage air preheating is up to approx. 250 °C.

Quenching of hot reformed gas in the reformed gas steam boiler.


High temperature CO-shift conversion of reformed gas, reacting CO with H2O, producing additional H2.

Cooling of converted process gas by heating of the feed stock, the pressurized boiler feed water and the process condensate.

Final cool down by air and cooling water.

Separation of process condensate from the raw hydrogen to be recycled to the deaerator for degassing.

Purification of raw hydrogen via the pressure swing adsorption process (PSA):

o Achievement of the required hydrogen purity of 99,99 % by one-way run-through of the raw hydrogen

o Adsorption of the impurities CO2, CH4, CO, H2O on adsorbents o Desorption of these impurities by depressurization and purging

Waste heat recovery from the fluegas: o The available waste heat is used for feedstock/steam superheating,

steam superheating as well as steam production and combustion air preheating.

Reformer furnace fuel: o The low pressure PSA purge gas supplies the major part of the required

furnace heat duty. In addition NG is used for balancing the overall heat requirements.

6.5.2 Equipment Details General Process Arrangement Production of 20 MMSCFD (Case 1) and 80 MMSCFD (Case 2) on a 100% hydrogen basis and an on-stream time of 8600 h/year, by the following main process steps:

Steam Reforming of Natural Gas

CO Shift Conversion

Pressure Swing Adsorption (PSA). Process Concept: The steam reforming of Natural Gas combined with HT-CO shift conversion and followed by a pressure swing adsorption (PSA) unit has turned out as the low-cost process for generation of pure hydrogen.


No pre-reforming reactor system is considered. Furthermore Natural Gas is the only feedstock and the steam reforming catalyst is specifically designed for Natural Gas. Plant load: The plant can be continuously operated between 100% and approx. 40% of design capacity. Lower load can be achieved by taking measures (Investment costs) in the mechanical design and the control of the plant. On stream factor: The proven service factor of Linde's steam reforming plants is, for the majority of operating years, more than 99%. Run length between shut-downs: The run length is primarily limited by the run length of the downstream units. Provided careful maintenance, Linde reforming plants have been continuously operating for several years, normally four years. Time for start-up: The time for start-up of the plant from ambient temperature up to full capacity is within 24 hours.

6.5.3 The 20 Mmscfd Plant Scope of Supply Engineering and procurement, supply of process equipment, pumps, blowers, compressors, catalysts, adsorbents, piping, structural steel, cabling for electrical and instrumentation, electrical motors, MCC, electrical substation, switchgear, transformers, field instrumentation, PLC for reforming and PSA systems, ESD, analysers, control room equipment, foundations, construction, pre-commissioning, start-up, assistance services, spare parts for start-up. Exclusions Utility supply systems (e.g. for demin water, electric power, cooling water, instrument air), buildings for control room and electrical substation, etc., financing cost, customs, duties. Delivery Parameters Hydrogen 99.99% CO + CO2 <10 ppm PSA recovery 87%


Delivery Pressure 19 barg Steam Export 20 tph at 370 deg C and 40 barg Specific Consumptions per mscf Hydrogen Cooling water 88 kg Make-up Water 37 kg Fuel & Feed 0.426 mmbtu Power 0.64 kWh Plant Life >15 years Capital $27.5 +/- 25%

6.5.4 The 80 Mmscfd Plant Scope of Supply As 20 Mmscfd plant Delivery Parameters Hydrogen 99.99% CO + CO2 <10 ppm PSA recovery 87% Delivery Pressure 19 barg Steam Export 120 tph at 370 deg C and 46 barg Specific Consumptions per mscf Hydrogen Cooling water 78 kg Make-up Water 41 kg Fuel & Feed 0.423 mmbtu Power 0.57 kWh Plant Life >15years Capital $78 million +/- 25%

[6.6] Lurgi


6.6.1 General Technology Description of Steam Reforming by Lurgi

proven technology

easy and smooth operation

fully automatic load change

low emission, typically below 50 mg NOx/ Nm3 flue gas The client's plant concept will be optimized to meet any requirements for efficient and reliable hydrogen production at the specified purity. Lurgi commands the full range of experience in engineering hydrogen plants and steam reforming plants based on various feedstocks. Natural gas, refinery gases, associated gases, naphtha, LPG or any mixture are used as process feedstock. Export steam flow is adapted to the individual optimum for low cost on the one hand and high overall plant efficiency on the other hand. Special care is taken to identify the optimum solution for integrating a new plant into existing plant site concepts in close interaction with the client's personnel. Co-generation of reformed gas for other products besides hydrogen (carbon monoxide, methanol...) may be a worth-while consideration during project evaluation:

multiple feedstock range

optimized integration in overall plant concepts

plant optimization for specific application Lurgi hydrogen plants especially excel due to their:

high plant efficiency

availability higher than 99% (outside planned shut downs)

high plant reliability ensured through 2 out of 3 voting system and special design features

time between two turn around particularly optimized for refinery turn around cycles (3 to 5 years)

low utility consumption

low maintenance cost 6.6.1.1 Process Description The standard process route comprises feed desulphurisation, steam reforming, shift conversion and hydrogen purification by means of pressure swing adsorption (PSA). The hydrocarbon feedstock is mixed with recycled hydrogen. The desulphurisation may comprise two process steps. In the first step, organic sulphur compounds are converted to H2S at about 360°C on a cobalt-molybdenum or nickel-molybdenum hydrogenation catalyst. In the second step, H2S is adsorbed on zinc oxide. The desulphurised feed is mixed with process steam at the optimized steam/carbon ratio and superheated to 500-650 °C upstream of the primary reformer.


On a nickel catalyst the feed is converted at 800-900 °C to a reformed gas containing H2, CO2, CO, CH4, N2 and undecomposed steam. As a process option, a prereformer for conversion of all higher hydrocarbons may be inserted upstream of the feed superheater. The CO in the reformed gas is shift-converted to in-crease the hydrogen yield. During this exothermic reaction, the gas temperature rises. The CO content is typically reduced to below 3 vol%. In the PSA unit, pure hydrogen is separated from the shift gas stream. The process uses multiple adsorbent beds to provide continuous and constant product flow. The adsorbers operate on an alternating cycle of adsorption and regeneration. The off-gas is used as a fuel covering the main fuel demand of the steam reformer. Steam generated by using the waste heat of reformed gas and flue gas is utilised as process steam while the excess is routed to the battery limits as export steam. 6.6.1.2 Equipment Details Steam Reformer The heart of the hydrogen plant is the steam reformer. Lurgi offers an advanced design: The Lurgi-Reformer® combines all advantages of outstanding operation characteristics and excellent maintenance features. This finally leads to easy and stable operation at low investment and operating cost. Reduced investment cost due to:

top fired design

multiple tube rows allowing for a reduced number of burners

large single train capacities with up to 1000 catalyst tubes Reduced operating cost due to:

up to 40 bar reformed gas pressure at Reformer outlet

feed preheating temperature up to 650 °C Reduced maintenance cost due to:

completely maintenance free

catalyst tube suspension system Pre-Reformer


The installation of an adiabatic prereformer (BASF-Lurgi RECATRO-process) provides flexibility in feedstock ranging from natural gas to naphtha and may improve plant performance and plant economics. Advanced hydrogen management systems are the key to high plant efficiency and availability. Lurgi steam reforming plants feature the most sophisticated control systems that can be found in this sector. They therefore reach exceptionally high on-stream factors. Load Control Features:

fully automatic adjustment within 30-100 % capacity

load change at 3 % of nominal capacity per minute

minimum steam / carbon ratio ensured Firing Control Features:

peaks in PSA tail gas flow and composition compensated by fuel gas

stable reformed gas temperature ensured

minimum oxygen content in flue gas ensured

6.6.2 Performance Details The consumption figures vary with the feedstock. The figures below are based on light natural gas (LHV 37.7 MJ/ m3n) and plant capacities above 5000 m3n/hr hydrogen production. Typical consumption and production figures per 1,000 Nm3/hr bar) are: Feed + Fuel: 400 Nm3/h Make-up BFW 1.15 m3/hr Cooling Water 3.0 m3 /h Electricity 17 kW Export Steam 0.63 t/hr Product Quality: H2 purity up to 99.9999 % CO content below 1 ppm volume H2 pressure 22 barg


Export steam flow and steam conditions can be further optimised if required

[6.7] Technip

6.7.1 General Technology Description Technip follows the same general technology description as all other vendors. They have a number of process options depending on integration requirements and favour top-firing of the SMR furnace.

6.7.2 Equipment Details Similar to Lurgi

6.7.3 The 20 Mmscfd Plant Delivery Parameters Hydrogen 99.99% CO + CO2 <10 ppm PSA recovery 87% Delivery Pressure 19 barg Steam Export 120 tph at 370 deg C and 46 barg Specific Consumptions per mscf Hydrogen Cooling water 78 kg Make-up Water 41 kg Fuel & Feed 0.423 mmbtu Power 0.57 kWh Plant Life >15years Capital $78 million +/- 25% 6.7.4 The 80 Mmscfd Plant Delivery Parameters Hydrogen 99.99% CO + CO2 <10 ppm


PSA recovery 87% Delivery Pressure 19 barg Steam Export 120 tph at 370 deg C and 46 barg Specific Consumptions per mscf Hydrogen Cooling water 78 kg Make-up Water 41 kg Fuel & Feed 0.423 mmbtu Power 0.57 kWh Plant Life >15years Capital $78 million +/- 25%

[6.8] Uhde

6.8.1General Technology Description Uhde’s technology description is limited to information form their website. Uhde were originally keen to take part but had problems with their communication. More details were added later. Uhde have a different support system to other vendors for the hot catalyst tubes which avoids pigtails. They offer a proprietary close coupled waste heat steam generator which they claim offers high reliability through reduced corrosion, better safety and reduced plot area. They offer a full range of secondary reforming technologies and some smaller convective reformers.

6.8.2 Equipment Details Similar to Lurgi

6.8.3 90 Mmscfd Delivery Parameters Hydrogen 99.99% CO + CO2 <10 ppm PSA recovery 85%


Delivery Pressure 20 barg Steam Export 96 tph at 370 deg C and 46 barg Specific Consumptions per mscf Hydrogen Cooling water 86 kg Make-up Water 44 kg Fuel & Feed 0.446 mmbtu Power 0.50 kWh Plant Life >15years Capital $88 million +/- 25%

[6.9] Others

There are a number of smaller vendors who manufacture plants smaller than those included in this study. Some of these vendors have formal or informal relationships with industrial gas companies and others with larger suppliers. These have not been included because they cannot provide a full range of world-scale steam reformers.


[7.0] COMPARISONS AND EVALUATION

[7.1] General Comparison

The tables below show the economic comparison of the various vendors and how this varies with natural gas price, steam credit level and internal rate of return.

7.1.1 Small Reformer On the small reformer the Foster-Wheeler offering appears to be significantly better than the others under all circumstances. This is due to a good process efficiency combined with low capital. It is possible that other vendors have not optimised their offerings to the same extent as Foster-Wheeler or that the values given, from a real project, were particularly favourable. It is interesting to note that Linde is a good second, and also gave more time to their information preparation. The Haldor-Topsøe offering would really come into its own only in the case of low value or no value for steam. Since they declined to provide information the published information may understate the energy efficiency of this unit. Even with lower capital it would need a better performance to overcome the lack of steam make in cases where steam had a reasonable value. It is also possible that the actual performance for others could be better than that quoted.

Table 7.1.1 Variable Steam Credit – Small Reformer

7.1.2 Large Reformer

Technip

Haldor-

Topsøe Linde

Foster

Wheeler

H2 Make

Mmscfd

> 20 20 20 22

Natural

gas

$6.5/Mm

btu

Steam

Credit

per 1000

lbs

$8.4 $3.44 $3.43 $3.25 $2.94

H2

$/mscf

$9.2 $3.39 $3.43 $3.20 $2.88

H2

$/mscf

$10.0 $3.34 $3.43 $3.15 $2.82

H2

$/mscf


In the case of the large reformers, the outcomes are much closer. In part, this is because the efficiencies in many cases are tending towards the theoretical maximum with little further room for improvement. On reformers of this size more heat integration and process optimisation is economically possible. All vendors will have made a judgement about the best positioning of their offerings with respect to optimum steam make versus heat integration into the process. The surprising outcome is that Foster-Wheeler’s offering is clearly ahead of the others and Technip’s, the market leader, is bringing up the rear. However the difference between, Technip, Lurgi, and Howe-Baker and to some extent Uhde is within the accuracy of the evaluation. It is interesting that Haldor, who are the only other side-fired reformer vendor has the next best performance and Linde, though using a top-fired furnace are close behind. Most changes examined have little effect on this order, although reduction in natural gas price does tend to narrow the differences.

Table 7.1.2 Variable Steam Credit – Large Reformer

Technip Lurgi

Haldor-

Topsøe Linde UHDE

Foster

Wheeler

Howe-

Baker

H2 Make

Mmscfd

> 80 80 80 80 90 80 80

NG $6.5/

Steam

Credit

per 1000

lbs

MMbtu

$8.4 $3.09 $3.04 $2.92 $2.94 $2.99 $2.77 $3.10

H2

$/mscf

$9.2 $3.03 $3.01 $2.88 $2.90 $2.94 $2.71 $3.02

H2

$/mscf

$10.0 $2.98 $2.98 $2.83 $2.85 $2.88 $2.64 $2.95

H2

$/mscf


Table 7.1.3 Variable NG Price – Small Reformer

Table 7.1.4 Variable NG Price – Large Reformer

Technip

Haldor-

Topsøe Linde

Foster

Wheeler

H2 Make

Mmscfd

> 20 20 20 22

Natural

Gas

$/MMbtu

Steam

Credit

per 1000

lbs

4.5 $6.4 $2.62 $2.60 $2.51 $2.20

H2

$/mscf

5.5 $7.8 $3.01 $3.01 $2.85 $2.54

H2

$/mscf

6.5 $9.2 $3.39 $3.43 $3.20 $2.88

H2

$/mscf

Technip Lurgi

Haldor-

Topsoe Linde UHDE

Foster

Wheeler

Howe-

Baker

H2 Make

Mmscfd

> 80 80 80 80 90 80 80

Natural

Gas

$/MMbtu

Steam

Credit

per 1000

lbs

4.5 $6.4 $2.29 $2.27 $2.18 $2.19 $2.22 $2.07 $2.29

H2

$/mscf

5.5 $7.8 $2.66 $2.64 $2.53 $2.54 $2.58 $2.39 $2.66

H2

$/mscf

6.5 $9.2 $3.03 $3.01 $2.88 $2.90 $2.94 $2.71 $3.02

H2

$/mscf


Table 7.1.5 Variable Return – Small Reformer

Table 7.1.6 Variable Return – Large Reformer

7.1.3 Technology Differences The key question outstanding is do any of the proprietary features claimed have a significant effect on outcome. Table 7.1.7 summarises the key elements of steam reforming technology.

Technip

Haldor-

Topsøe Linde

Foster

Wheeler

H2 Make

Mmscfd

> 20 20 20 22

Natural

Gas $6.5

/ MMbtu IRR

Steam

$9.2

/1000 lbs 15.50% $3.63 $3.61 $3.45 $3.04

H2

$/mscf

12.50% $3.51 $3.52 $3.32 $2.96

H2

$/mscf

9.50% $3.41 $3.44 $3.21 $2.89

H2

$/mscf

Technip Lurgi

Haldor-

Topsoe Linde UHDE

Foster

Wheeler

Howe-

Baker

H2 Make

Mmscfd

> 80 80 80 80 90 80 80

Natural

Gas $6.5

/ MMbtu IRR

Steam

$9.2

/1000 lbs 15.50% $3.22 $3.19 $3.06 $3.08 $3.12 $2.88 $3.22

H2

$/mscf

12.50% $3.13 $3.10 $2.97 $2.98 $3.02 $2.79 $3.12

H2

$/mscf

9.50% $3.03 $3.01 $2.88 $2.90 $2.94 $2.71 $3.02

H2

$/mscf


It can be seen that in three areas, there is no difference in technology, except in project execution efficiency. Those are front-end pre-treatment, Shift system specification and PSA design. There are some differences in physical form but the process equipment is so similar as to be interchangeable and will differ more for differing feedstocks than vendor technologies. 7.1.3.1 Furnace Firing Direction The main area of contention is furnace firing direction. Most vendors claim to have experience of firing in various directions, but only Foster-Wheeler makes a strong case for Terrace Wall firing. Nobody appears to use bottom firing. The arguments are clearly about the ability of the burner control system to generate both an appropriate consistency of heat flux to each tube and to generate the appropriate heat flux along the length of the tube. There is no clear right answer, but the efficiency shown by Foster Wheeler and Haldor Topsøe suggests that some form of side firing gives good efficiency. However the efficiency of Linde’s top-fired furnace appears to be similar. So, in many ways the best firing system may be the one that the vendor has most experience of and which they can then design most appropriately and offer with most confidence.

7.1.7 Design Features Large Reformer

Company

Pre-

Treatment

Furnace

Firing Catalyst

Tube

Supports

Transfer

Header Shift

Condensate

Use PSA Other

Technip Cat+ZnO Top Any

Pigtail &

Slider Int. Ins. HTS

Feed or

Steam Any RS

Lurgi Cat+ZnO Top Any

Pigtail &

Slider Int. Ins. HTS Steam Any RS

H-T Cat+ZnO Side Haldor NA NA HTS NA Any HTCR

Linde Cat+ZnO Top Any Pipeloop Int. Ins. Iso. HTS Steam Own RS

Uhde Cat+ZnO Top Any Bellows Int. Ins. HTS Steam UOP RS

F-W Cat+ZnO Terrace Any

Double

Pigtail

Close

Coupled HTS Steam Any RS

H-B Cat+ZnO Top Any NA NA HTS Steam Any RS

Same Conflict Price Conflict Similar Same Minor Same Similar


Figure 7.1.8 Furnace firing types.

7.1.3.2 Tube Supports The second area where there are differences in approach is in the support of the catalyst tubes. Most vendors have some form a flexible piping arrangement to allow the tubes to move when heated or cooled. When such piping is in the hot part of the furnace it is usually made of exotic materials and called a pigtail. Uhde have a different system which uses a heat break and a bellows at the outlet end to allow for differential movement. Foster-Wheeler use a double pigtail design which allows on-line “nipping” in the event of a tube failure. All of the systems shown have good demonstrated stress relieving ability. This is an essential feature to ensure good tube life and any novel systems should be subject to full evaluation. 7.1.3.3 Steam Make There are some minor differences in “natural” steam make. These have to be considered with the efficiency of fuel and feed use. In general, when steam has a reasonable value, vendors will offer the configuration that suits there technology. In some cases vendors use some air per-heat as a standard whilst others only pre-heat feed. All vendors can affect any degree of integration and allowing them to nominate their own “natural” steam make was an attempt to get optimum performance from them. We have to assume that that is what we have.


APPENDICES

1.0 TYPICAL FLOWSHEET

2.0 Vendor Brochures can be obtained from the following websites:

www.haldor.com www.linde.com www.lurgi.com www.uhde.de www.fwc.com www.cpilink.com www.howmar.co.uk www.technip.com www.caloric.com www.jmprotech.com

http://www.haldor.com/

http://www.linde.com/

http://www.lurgi.com/

http://www.uhde.de/

http://www.howmar.co.uk/

http://www.technip.com/

http://www.caloric.com/


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Resources

Database Esprit Associates maintains a database of more than 10000 industrial gas facilities. This is continually updated by reference to gas providers’ and their customers’ press releases, reference lists from the principal equipment providers and feedback from regional and other sources. The database affords the opportunity to establish the supply chain for industrial gas services and through this to provide benchmarking and other market data to both users and providers of industrial gases. The database records the type of facility, contracts, location – city, country region and postcode – production capacities, build year and status. It also records the source of data, comments and production technology details when appropriate. All entries are identified by a unique reference number and a facility classification. The 2000 largest facilities have been plotted on Google Earth™ which enables delivery logistics and plant conditions to be established. This is an ongoing activity.


Techno-economic models Esprit has a number of techno-economic models for industrial gas production and distribution based on data gathered over many years. We have used the deep experience of our consultants to perform parametric analysis of the data and this enables us to produce detailed cost and pricing information for past, present and future investments in industrial gas facilities. These models take into account location, date, and owner, technology and product delivery requirements. They also allow issues such as cross-subsidies to be evaluated and to define accurate escalation equations to benchmark existing contracts and current bids. The models include:

ASU and Liquefier with choice of add-ons such as back-up storage, argon, multiple train and steam turbine drives

Steam Methane Reformer (SMR) with options for Hydrogen, Syngas or CO production and the use of RFG or other alternative feedstocks. The model also deals with steam credits and CO2 capture or taxation.

Partial Oxidation facilities (Gasifiers) which deals with the same options as the SMR Model but allows for various technologies and a choice of feedstocks. It can also incorporate ASU CAPEX and OPEX for the oxygen requirements.

Non-Cryogenic models for Nitrogen or Oxygen production and Hydrogen purification. These cover both adsorption and membranes.

Liquid Hydrogen

Liquid CO2

Bulk Liquid and Bulk Gas distribution and Packaged gas production and distribution models. These reflect changes in the cost of both production and transport and the various contracts for different customer sizes.

CAPEX models which identify the level of capital spending required for an industrial gas company to maintain market share for various growth scenarios

Valuation models that identify the potential value of a business from the known production and distribution facilities by applying the techno-economic models to each.

Forecasting Models Esprit Associates has developed a forecasting model which predicts the growth in the industrial gas business and captive industrial gas production for more than 80 countries. It also consolidates the information by region and globally. The model is based on the analysis of industrial gas use by 14 industry sector groupings, such as pulp & paper, against Industrial Production over the past ten years. The model then predicts forward for up to ten years against forecast changes in IP indices from a macroeconomic specialist company. The model breaks historical and forecast revenues into the basic delivery mechanisms - onsite & pipeline, bulk and packaged gases - for the major (Tier 1) suppliers. It also


takes into account captive capacity when looking at both historical sector intensity and growth. The model uses historical and forecast changes in currency rates to deliver headline growth and changes in power and natural gas prices to deliver underlying growth. Generally the model has underestimated growth on a global basis by about ½ % to 1% because of expansion of offerings and captive-to-onsite conversion. There are a number of correction factors that can be applied to offset this. Specific forecasting models also exist for industrial gases such as Hydrogen. These look at the growth in the gas volumes by industry, delivery mechanism and region. They provide a more focused view of potential for the gas. We also have a number of standard templates which enable a breakdown of the sectors into delivery mode and gases used. They are often used to define the expected growth in particular gases or gas mixtures in a particular territory and by delivery mechanism.

Other Models We have many models that have been developed for specific projects that can be generally applied to new challenges. These include Monte Carlo analyses for reliability of supply on pipeline systems, price trends in bulk deliveries and net present value for termination of contracts.

Other Data We have a significant archive of press releases, earnings presentations and other public documents for the industrial gas industry which enable us to cross-check and update our various models. We also publish a quick quarterly analysis of the largest companies and an annual report in more detail for subscribers. We regularly use this archive to identify changes of strategy and product lines for the companies


Esprit Associates Global reach but local service – our consultants are world-wide. Head Office Clevedon, Windsor Road, Medstead, Alton Hants GU34 5EF UK Tel +44 1420 562802 Fax +44 1420 561634 Mobile +44 7802 223000 Email: [email protected] Josef David Tel: + 43 1 729 17 05 Fax: + 43 1 729 17 05 / 55 Mobile: + 43 (0) 699 11 54 54 58 Email:[email protected] Esprit Associates Inc. 2150 Ardis Drive San Jose CA 95125 UNITED STATES Tel: +1 208 292 1304 Fax: +1 208 273 6406 Email:[email protected] We also have relationships with other consultancies in Asia and North America

More details of the company can be found on our website www.espritassociates.com

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Documents

Benchmarking Suppliers Of Process Plants