Gasification WPA

8/11/2019 Gasification WPA

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Coal Gasification : A PRBOverviewMark Davies Kennecott Energy

Outline Background Our Interest

History Development of IGCC

Current status Commercial Technology

Poly generation - Synthetic Fuels

Issues for PRB

The Future

Questions ???


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Our Interest - Sustainable Development

development that meets the needs of the present

generation without undermining the capacity of futuregenerations to meet their needs.

Rio Tintos commitment to SD: Ensure our

businesses,operations and products contribute to

the global transition to sustainable development

Coals Sustainability Challenge

Economic and social criteria make a compelling case for coal the issue is environmental performance

Climate change concerns present a complex challenge for thecontinuing use of fossil fuels and coal in particular


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Integrated Gasification Combined Cycle (IGCC)

Twenty years ago oil refinery practice in North America and Europeunderwent a fundamental change as available crude became heavier

This had two implications: Asignificant increase in hydrogen demand to 'sweeten' the

heavier crude; and

Increased production of highly contaminated petcoke and heavyrefinery residues

Simultaneously, aerospace technology was being applied to the utilitysector to create natural gas fired turbines; and coal based IGCCstarted becoming a viable technology

IGCC is essentially ready for use by the coal industry, whichhas largely been spared the expense of its development

Impl icat ion Current commercial technolog ies were developed for

Petcoke


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Natural gas

Gas turbine

Heat recovery steam

generator Steam turbine

High efficiency

Low capital

Simple vs. PC plants Cookie-cutter design

Low emissions

Natural Gas Combined Cycle (NGCC)


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Integrated Gasification Combined Cycle (IGCC)

Gasification is essentially partial oxidation under pressure


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IGCC + Carbon Capture and Storage


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Current Commercial Technology

Slurry feed Refectory lined Quench available Not PRB capable

Slurry feedRefectory lined 2 Stage ???

Lock hopper feed Water cooled Syngas cooler PRB capable

at cost

Shell GE (Chevron Texaco)ConocoPhillips (E-Gas)


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Impact of Coal Type

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

1.40

5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000

Coal Heating Value, Btu/lb HHV

RelativeHeatRateorCapitalCost

IGCC Capital Cost (E-Gas)

IGCC Heat Rate (E-Gas)

PC Capital Cost

PC Heat Rate

WY PRBTX Lignite

Illinois #6

Pittsburgh #8

Source: EPRI

Any coal or biomass feedstock can be gasified

The issue is the econom ics!

Gasification is most efficient with low moisture, low ash

and high heating value feedstock's


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Issues for PRB

Indicative Cost of Electricity

0 5 10 15 20 25 30 35 40

Illinois coal

PRB Coal

Coal

Cost ($/MWhr)Capital Cost ($/MWh)

Other Fixed Costs ($/MWh)

Fuel Expense ($/MWh)

Variable O&M ($/MWh)

Capital cost disadvantage may be mitigated by fuel cost

Petcoke/PRB blends can be attractive New technology

DOE/Southern Transport Reactor Alternate slurry technology Commercial vendors have little ongoing development


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Polygeneration

Syngas is a prime petrochemical feedstockTraditionally produced byreforming natural gas

Natural gas from Syngas

Methane reformer CO + 2H2+ Catalyst

=> CH4+ clean up

Liquid chemicals from Syngas

Clean diesels

Methanol

Indicative breakevencurrenttechnology

Liquid Fuels $30 - $35 bbl

Synthetic natural gas - $5.50 - $7 /MBTU*

* Source DOE


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IGCC + CCS + Poly generation


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Barriers to IGCC Commercial Deployment

Cost 10-20% penalty for bituminous coal Traditional PC can meet current environmental standards IGCC financing costs higher than PC perceived risk

profile No reward for risk taking new plants largely being built

by regulated utilities Excess capacity in many regions - NGCC overbuild IGCC needs more project development than NGCC or PC

To date no standard IGCC design - this will change with GE

entry Lack of familiarity with IGCC in the power industry (it is a

chemical plant)


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Future Issues

Environmental regulation, community pressure, uncertaintyparticularly carbon

Sustained Federal research effort to resolve cost, reliabilityconcerns Especially on low-rank coals

Critical to establish viability and acceptability of carboncapture and storage e.g. FutureGen

Development of of integrated, optimized designs

GE/Bechtel ConocoPhillips/Fluor

Deployment incentives to overcome commercial penalty(e.g. incentives, production tax credits, etc)

Costs should come down as new plants are built and

improved designs become standard

Documents

Gasification WPA