PACE Synthetic Fuels Report V. 23 No. 3
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23o-c sy nt]hetlic fne]it OIL SHALE 0 COAL o OIL SANDS VOLUME 23 - NUMBER 3 - SEPTEMBER 1986 QUARTERLY Tcjg Ertl Repost01 cg La: s Library School of ft4;rs ®THE PACE CONSULTANTS INC. Reg. U.S. Pot, OFF. Pace Synthetic Fuels Report is published by The Pace Consultants Inc., as a multi-client service and is intended for the sole use of the clients or organizations affiliated with clients by virtue of a relationship equivalent to 51 percent or greater ownership. Pace Synthetic Fuels Report is protected by the copyright laws of the United States; reproduction of any part of the publication requires the express permission of The Pace Consultants Inc. The Pace Consultants Inc., has provided energy consulting and engineering services since 1955. The company's experience includes resource evaluation, process development and design, systems planning, marketing studies, licensor comparisons, environmental planning, and economic analysis. The Synthetic Fuels Analysis group prepares a variety of periodic and other reports analyzing developments in the energy field. THE PACE CONSULTANTS INC. SYNTHETIC FUELS ANALYSIS Project Manager Ronald L. Gist Contributing Consultants Todd M. Coady Connie M. Gianikas Linda J. Loop Jerry E. Sinor Washington Associate Rip G. Rice Production Staff Jeannette G. Stone Timothy R. Wolf Jackie A. Robinson Mary H. Stuart Post Office Box 53473 Houston, Texas 77052 713/669-8800 Telex: 77-4350 CONTENTS HIGHLIGHTS A-i I. GENERAL CORPORATIONS Decline in Synthetic Fuels Interest Apparent in Annual Reports 1- 1 GOVERNMENT DOE Selects Projects and Solicits R&D Proposals from Small Businesses 1- 9 DOE Reorganizes to Administer Clean Coal Program i_la ENERGY POLICY AND FORECASTS Pace Finds Synfuels Future Holds Promise, But Improvements Needed 1-13 Chevron Forecasts Adequate Energy Through 2000 1-21 ECONOMICS Sygmal Process is Attractive for Production of Cosolvent Alcohols from Syngas 1-26 TECHNOLOGY Co-Processing Studied for Upgrading Low Grade Feedstocks 1-30 INTERNATIONAL New Zealand Synthetic Gasoline Plant Started Up, But Economics Questionable 1-33 Australia Discounts Synfuels Until Well After 2000 1-35 Canadian Energy R&D Activities Outlined 1-39 United States and Spain Sign Energy R&D Agreement 1-41 ENVIRONMENT EPA Approves Utah's Visibility Protection Plan 1-42 RECENT GENERAL PUBLICATIONS/PATENTS 1-44 COMING EVENTS 1-45 II. OIL SHALE PROJECT ACTIVITIES Unocal Makes Progress on Start-Up--But Faces Lawsuit 2- 1 Research Continues on Julia Creek Shale Oil Project 2- 1 Rundle Project Sees 1,000 Hour Run in Exxon Pilot Plant 2- 3 n CORPORATIONS Central Pacific Minerals and Southern Pacific Petroleum Detail Oil Shale Activities 2- 5 Gary Refining Company Emerges from Chapter 11 Bankruptcy 2- 7 GOVERNMENT Workshop Held on Oil Shale Test Center—DOE Report Due 2- 8 ECONOMICS Favorable Conditions Notes for Australia Shale Oil 2- 9 TECHNOLOGY lOT Patents Free Fall Retorting Process 2-12 Solvent Dedusting of Shale Oil Developed by Amoco 2-13 Difficulties of Arsenic Management in Shale Oil Refining Revealed 2-15 Texaco Patents Borehole Reaming Method for Radio Frequency Extraction 2-17 Oil Shale Combustor Model Developed by Greek Researchers 2-18 Full Scale Blast Measurements Reveal No Dust Hazards 2-20 INTERNATIONAL Taciuk Processor Proposed for Australia Oil Shale 2-25 Energy Efficiency Analysis Carried Out for Petrosix Process 2-26 Fluidized Bed Combustion Tested for Turkish Oil Shales 2-28 Canada Oil Shale Potential Limited to New Brunswick 2-29 ENVIRONMENT EIS Issued for Unocal Phase II Expansion 2-31 Spent Shale Proves Effective Absorbent for Sulfur Emissions 2-37 Los Alamos Characterizes Oil Shale Industry Hazards 2-42 Toxicity of Shale-Derived Diesel Fuel Judged Similar to Petroleum 2-46 WATER Water Application Related to Oil Shale Listed 2-48 RESOURCE Interior Agrees to Settle Oil Shale Claims—Strong Reaction Results 2-49 Kansas Oil Shale Potential Evaluated 2-50 RECENT OIL SHALE PUBLICATIONS/PATENTS 2-52 STATUS OF OIL SHALE PROJECTS 2-58 III. OIL SANDS PROJECT ACTIVITIES ERCB Conditionally Approves Phases 7-10 of the Ease Cold Lake Project 3- 1 PanCanadian's Lindbergh Steam Project May Continue on Reduced Schedule 3_ 4 Dome Petroleum Puts Lindbergh and Primrose Projects on Hold 3- 4 Devran/Shell Project Receives Government Aid 3- 5 New Tech Oil Reports Favorable Progress with Oil Mining Project 3- 6 Phase 2 Design of Wolf Lake Set at 13,000 BPD 3- 6 Suncor Achieves New Monthly Production Records 3- 7 ERCB Publishes Statistical History of Oil Sands Production 3- 7 Diatomaceous Earth Project Put on Standby by Texaco 3 7 CORPORATIONS Universal Energy/OHS Corporation Test Electromagnetic Stimulation 3_ 9 GOVERNMENT - Bauer Likens $10 Oil to Trojan Horse for Enhanced Oil Recovery 3-10 Increased Alberta Bitumen Production Results in Prorationing of Light Oil Production 3-11 ENERGY POLICY & FORECASTS Canadian Oil Market Review Shows Growing Influence of Heavy Oil and Bitumen 3-13 ECONOMICS Economics of Beaver-Herter Extraction Process Revealed 3-16 RTR DAP Process Exhibits Low Operating Costs 3-18 TECHNOLOGY Air Force Program Tests Production of Aviation Turbine Fuels from Utah and Kentucky Bitumens 3-21 Hydrogen from UCG Proposed for Heavy Oil and Tar Sands Extraction 3-24 Alabama Tar Sands Upgraded by Physical Beneficiation 3-26 Synthetic Crude Oil Processing Residues Used in Asphalt Blends 3-30 INTERNATIONAL Startup Due for Multi-National Gulf DRB Demonstration 3_34 ENVIRONMENT Fish and Wildlife to Determine Endangered Status of San Rafael Cactus 3-36 WATER Water Quality in Alberta Oil Sands Area Noted 3_37 Industry Use of Saline Water Not Expected in Tar Sand Triangle 3_39 RESOURCE Complexity of Sunnyside Tar Sands May Inhibit Recovery 3-40 ERCB Updates Estimated Reserves of Crude Bitumen and Synthetic Crude Oil 3-42 RECENT OIL SANDS PUBLICATIONS/PATENTS 3-45 STATUS OF OIL SANDS PROJECTS 349 IV. COAL PROJECT ACTIVITIES DOE Receives Title to Great Plains Plant 4- 1 Rocky Mountain I Test to Evaluate CRIP Technology 4- 3 Pyrolysis Demonstration Unit Started Up by United Coal 4- 4 II' CORPORATIONS GRI Describes 1987-1991 R&D Plan and 1987 Program 4- 7 GOVERNMENT Nine Clean Coal Projects Chosen by DOE 4-10 Ohio Makes Awards to 24 Clean Coal Projects 4-15 DOE Submits Clean Coal Report to Congress 4-17 ENERGY POLICY & FORECASTS Utilities Enthusiastic About Coal Gasification Technology 4-19 ECONOMICS UCG Economics Affected by Gas Quality 4-21 Steam-injected Gas Turbines Uneconomical with Coal Gasification Equipment 4-22 TECHNOLOGY KEW Pilot Plant Successfully Demonstrates In-Bed Desulfurization 4-24 High Quality Liquids Produced by Mild Pyrolysis of Coal-Lime Mixtures 4-27 New UCG Method for Large Blocks at Great Depths Proposed 4-30 TIGAS Process Converts Coal to Gasoline In One Synthesis Loop 4-35 INTERNATIONAL PYROSOL Process Offers Attractive Two-Stage Liquefaction Options 4-40 KOHLEOL Process May Favor High Operating Pressure 4-42 DOE and Japan Sign Coal Research Agreement 443 Joint Research Agreement Signed by British Gas and Osaka Gas Company 4-44 Erection of Gasifier in Poland to Begin in 1987 444 ENVIRONMENT Experimental Studies on Toxicity of Coal Liquids and Petroleum Products Completed 4-45 RESOURCE Charter Proposed for Fort Union Regional Coal Team 4-46 Alabama Sub-Region May be Decertified as Federal Coal Leasing Area 4-46 DOE Assists in Meeting Social Impacts of Great Plains Plant 4-48 RECENT COAL PUBLICATIONS/PATENTS 4-49 STATUS OF COAL PROJECTS 455 V. APPENDIX Description of Clean Coal Projects Proposed to DOE s- 1 IV HIGHLIGHTS Capsule Summaries of the More Significant Articles in this Issue Six Synfuels-Related Projects Selected for SBIR Awards The United States Department of Energy (DOE) has selected six synfuels- related projects described on page 1-9 for funding in the Small Business Innovation Research (SBIR) program. DOE has also solicited proposals for new projects in its FY1987 program. Pace Finds that Synfuels Have a Future in the United States Due to the recent dramatic decline in the interest in synthetic fuels, Pace has analyzed the events of the past 15 years to assess the future of the industry in the United States. Commercial projects that were assisted by the United States Synthetic Fuels Corporation received price supports of $40 to $60 per barrel. Pace forecasts that the price of crude oil is not expected to again reach these levels until 2000. However, potential improvements listed on page 1-13 could reduce synthetic fuels production costs to $25 to $35 per barrel. Experience with large scale plants, possibly located in other countries, is needed to achieve these cost savings. Chevron Forecasts Adequate Energy Supplies Through 2000 The article on page 1-21 summarizes Chevron's forecast of worldwide energy supply/demand to 2000. Chevron estimates that there will be sufficient supplies of conventional crude oil and natural gas liquids to meet world demand through 2000. Sygmal Process may be Attractive for Mixed Alcohols Production The Sygmal (Syngas to Mixed Alcohols) Process has been developed by the Dow Chemical Company and Union Carbide. A recent study by Fluor indicates that the process may be economically attractive for retrofitting an existing methanol plant to produce mixed alcohols for use as an automotive fuel. See page 1-26. LCI Co-Processing Tested for Coal, Shale, and Biomass Lummus Crest Inc. (LCI) has tested its two-stage co-processing technology on several types of low-grade feedstocks. Results of tests using bituminous coal, Kentucky oil shale, wood chips, and municipal solid wastes are sumarized on page 1-30. New Zealand Synthetic Gasoline Plant Started Up The natural gas-to-gasoline plant located at Motunui, New Zealand was completed in June 1985, ahead of schedule and 17 percent under budget.