Gasification: a Key Technology Platform for Western Canada's Coal
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Gasification: A Key Technology Platform for Western Canada’s Coal and Oil Sands Industries Twenty-Fifth Annual International Pittsburgh Coal Conference Westin Conference Center September 20 – October 2, 2008 Pittsburgh, PA USA Duke du Plessis Senior Advisor and Research Manager Alberta Energy Research Institute Alberta Finance and Enterprise Calgary, Alberta Canada Alberta Energy Research Institute (AERI) (Energy Technology Arm of the Alberta Government) Mission: Enhance the development of clean energy resources through research, technology and innovation. Mandate: z Position Alberta for the future in energy z Add value to Alberta’s energy resources Strategy: z Invest in technology development projects with industry z Partnerships & International collaboration z Focus on Technology Platforms such as Gasification and CSS Presentation Outline z Drivers for gasification applications in Western Canada z IGCC with CO2 capture- Canadian Clean Power Coalition z Gasification applications in oil sands developments z Next generation gasifiers z Conclusions Fossil Reserves Concentrated in Western Canadian Sedimentary Basin Oil Gas Bitumen Coal 109 bbls 1012 cu.ft. 109 bbls 109 tonnes Remaining Reserves 1.5 39 173 34 Annual Production 0.19 4.8 0.48 0.037 Reserves/Production, years 9.4 8.1 360 919 Gasification Drivers, Opportunities & Challenges Drivers and Opportunities Challenges z Large coal resources z Capital cost z Electricity demand growth z Reliability z Aging coal plants z Oil sands developments z CO2 & water management z Natural gas replacement z Performance with low z GHG regulations quality fuels zProximity of EOR and sequestration sites z Gasification of coal & oil sands residues offers sustainable solutions, BUT face significant challenges Oil Sands Growth: Production, Upgrading & Natural Gas Requirements4000 Upgrading Capacity by 2015 3500 3000 2500 2000 Kbpd 1500 1000 500 0 Existing Expansions New Total Declining Natural Gas Reserves Source: EUB Oil Sands Technology Road Map Canadian Coal-based Electric Generating Capacity Anticipated Growth in IGCC MW Anticipated Growth in IGCC MW Other coal-based generation Other coal-based generation Coal-Fired Power Generation: A Perspective; National Energy Board, Canada, July 2008 • Decline in national coal-based generation due to phasing out of coal plants in Ontario • Anticipated growth in IGCC due to replacement of old coal plants in Alberta with IGCC including CO2 capture Alberta’s CO2 Challenge 2004 Emissions by Industry Type Fertilizer Petroleum 5% Refining (5 Mt) 5% (6 Mt) Facilities Contributing < 5% of Emissions* 6% Power Plant (6 Mt) 46% (49 Mt) Chemicals 6% (7 Mt) Heavy Oil 6% (7 Mt) Gas Plant Oil Sands 8% 18% (9 Mt) Source: Alberta Environment (19 Mt) Gasification Feedstocks Feedstock Type Sub-bituminous Coal Coals Beneficiated coals Petroleum Coke Oil Sands Residues Asphaltenes Forestry waste Biomass Agriculture waste Municipal Waste Blended Feeds Above Combinations Joint AERI-Industry Gasification Projects z Coal-Based electric power generation with CO2 capture – Canadian Clean Power Coalition(CCPC)AERI/EPRI – EPCOR/CCPC/AERI/Fed. Gov.FEED study z Gasification of coal, coke and coal-coke blends for hydrogen production. – Sherritt z Gasification of oil sands residues to replace natural gas as a source of hydrogen and fuel gas – Technology developers/licensors and oil sands companies z Gasification of municipal waste demonstration to replace landfill – City of Edmonton The Canadian Clean Power Coalition (CCPC) z An association of Canadian and U.S. coal and coal-fired electricity producers z Goal: Demonstrate that coal-based electricity generation can effectively address all environmental issues projected in the future, including CO2 z Provide flexible fuel capability– bituminous, sub- bituminous, lignite, and petroleum coke www.canadiancleanpowercoalition.com Generating Clean Power from Coal Technology Options IGCC, Amine Scrubbing, Oxy-fuel IGCC CO2 to clean-up and compression Oxygen Gasification Shift CO2 H2 Combined Electricity Coal conversion Capture Cycle Plant Post-combustion Amine Scrubbing CO to clean-up and compression Flue Gas Amine 2 Air Super- Scrubbing critical Steam Electricity Coal Boiler Turbines Oxy-fuel Combustion CO2 CO2 to clean-up and compression Oxygen Flue Gas Recycle,97% CO2 Oxygen Fired Separation Coal Boiler Steam Turbines Electricity Coal Types Evaluated Type Moisture Ash Fixed Volatiles Heating % AR % AR Carbon, % Dry, % Value, MJ/kg Bituminous 5.9 8.0 49.3 36.8 30.24 Subbituminous 20.0 13.9 38.6 27.4 18.93 Lignite 33.5 13.5 28.6 24.4 14.96 CCPC Technologies Considered & Evaluated Gasification Technologies Phase 1- High & low rank coals CO2 Capture Technologies z GE Energy Performance & z Shell Cost estimates ¾Gasification z ConocoPhillips z British Gas Lurgi ¾Amine scrubbing z EAGLE z High Temperature Winkler ¾Oxyfuel combustion z Sasol-Lurgi ¾ 90 % CO Capture z KBR Transport Gasifier 2 Phase 2- Low rank coals ¾ Other emission levels equivalent z Advanced slurry feed gasifier to NGCC plants z Advanced dry feed gasifier Phase II– Subbituminous Coal Advanced Slurry Feed Entrained Flow Gasifier Advantages • 2-stage entrained bed slagging gasifier • Slurry feed • Suitable for low rank coals • High efficiency • High pressure operation Disadvantages • Early stage of development • High water content of feed slurry • Refractory lined • Higher methane content (could limit CO2 recovery) • No water quench Phase II: Lignite Siemens Gasifier Advantages • Dry feed entrained bed slagging gasifier • Cooling screen • Water quench • Developed for low rank coals Disadvantages • Drying of coal • Lack of operating experience at high pressure CCPC Phases I and II Results : Cost of Electricity 250 Bituminous Subbituminous 200 Lignite 2004-2008 Cost 150 Escalation $/MWh 100 50 0 PC Reference Amine Oxyfuel IGCC IGCC IGCC IGCC Phase I Plant Scrubbing Reference Capture Capture Results (2004) Ready • IGCC costs highly dependent on fuel quality: lignite vs subbituminous coal • Low incremental cost of adding CO2 capture to IGCC base plant • Capital cost escalation impacts COE • Uncertainty in economic comparisons: different maturity levels New Technology Deployment Trajectory - Coal Power Plants Research Development Demonstration Deployment Mature Technology Advanced USCPC Plants 760°C 620°C+ Source: CO2 Capture Electric Power Research Institute APP April 2008 USCPC Plants 620°C+ 600°C IGCC Plants Oxyfuel <600°C 565°C Expected availability can SCPC Plants increase with time/learning CO2 Storage Time Anticipated Cost of Full-Scale Application Lower costs estimates for early stage technologies but error bands are higher Challenge comparing technologies at different levels of maturity Conclusions IGCC with CO2 Capture z IGCC technology is commercially available for liquid residues, bituminous coal and pet coke. z Technology enhancements needed to make it more competitive especially for low rank western coals. z IGCC with CO2 capture needs to be demonstrated at full scale to prove the designs and optimize performance z Site specific FEED studies are needed to improve reliability of cost estimates. E.g. EPCOR project. EPCOR FEED Existing Site at Genesee Study- IGCC with CO2 Capture Siemens Gasifier Conceptual Siting of 275 MW Plant Courtesy ECOR Gasification Applications in Oil Sands Bitumen Uprading & Refining SCO Refined Products Imported NaturalX Gas Coke Pitch SAGD Facility EAST SAGD Hydrogen Fuel Gas Oil Producer Steam Injector Fuel Gas Steam Chamber Slots Steam Oil Sand Formation Steam Flow 60 Coke production ~ 20,000 TPD; Oil Flow Future (2015): ~ 40,000 TPD 50 40 Gasifier to n n es 30 20 Imported m illion CO2 10 Natural Gas 0 X 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Canada’s First Commercial Gasification Plant - Integrated with SAGD Opti – Nexen Long Lake Project Joint Opti-AERI Project Optimum CO2 capture schemes for existing and future phases Shell Gasification CO2 Process Capture SAGD Facility EAST SAGD Oil Producer Steam Injector Steam Chamber Slots Oil Sand Formation Steam Flow Oil Flow Opti Long Lake Plant Long Lake Upgrader Facility (April 2007 • One of four gasifier trains • Largest Shell liquid fed gasifier trains in the world (when designed) Next Generation ‘Clean’ Bitumen Upgrading Technologies z AERI-Industry program screened some 100 concepts for ‘breakthrough’ potential z Selected 8 technologies for stage-gated development in partnership with process developers and first commercial adopters z Includes 3 gasification technologies Pratt and Whitney-Rocketdyne (PWR) Gasifier • Based on rocket engine design • High mass flux • Advanced materials • Size and cost reduction Development path • Stage-gated piloting, scale-up and demonstration Courtesy PWR PWR Enabling Technologies Status of Pilot Facility ● Rapid Mix Burner ● Cooled Liner ● Spray Quench High Pressure Pilot Facility at GTI PWR Enabling Technology Solids Feed Pump 8/15/08 (Conceptual) Great Point Energy (GPE) Catalytic Gasification Features z Converts petcoke/coal to Coal/Coke + Catalyst methane (SNG) in single stage reactor z Steam instead of oxygen saves cost z Captures CO2 Courtesy Great Point Energy Development path • Stage-gated piloting • Scale-up and commercial demonstration GPE Pilot Gasifier Courtesy: Great Point Energy Des Plaines, IL • Leased facility from Gas Technologies Institute • Operated successfully with PRB coal and pet coke • Catalyst added, removed and recovered successfully AlterNRG Plasma Gasification Features z Based on Westinghouse