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Technology R&D and Gas Processing

A DIAMOND IN THE GLOBAL WORLD OF CARBON

JC van Dyk*, PS Baumann and V Bhimsan Chief Scientist and Technical Specialist Sasol Technology (Pty) Ltd The road ahead in the next 30 minutes…..

3. Sasol Technology C&GPT 4. C&GPT Technical 2. SASOL focus areas

5. Coal has a future....

1. South-Africa

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Population statistics

Population: 49,991,300 (July 2010 est.)[1]

Growth rate: -0.051%[2] 19.61 births/1,000 population Birth rate: (2010 est.) 16.99 deaths/1,000 population Death rate: (2010 est.) Life expectancy: 49.2 years (2010 est.) –male: 50.08 years (2010 est.) –female: 48.29 years (2010 est.) 2.33 children born/woman Fertility rate: (2010 est.) Infant mortality rate: 43.78 deaths/1,000 Age structure

28.9% (male 7,093,328/female 0-14 years: 7,061,579) http://en.wikipedia.org/wiki/Demographics_of_South_Africa

65.8% (male 15-64 years: 16,275,424/female 15,984,181)

5.4% (male 1,075,117/female 65-over: 1,562,860) (2010 est.)

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd South-Africa in size comparison

South Africa occupies 4% of the continent's total landmass, covering an area of 1 221 040 square kilometres. The country is five times larger than Great Britain and three times the size of Texas. http://www.edusouthafrica.com/south-africa.html

USA China

Middle East India Tokyo Asia Pacific Hong Kong Africa India

Singapore South America

Australia

South Africa

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Coal utilization in South Africa (2010)

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd The road ahead in the next 25 minutes…..

3. Sasol Technology C&GPT 4. C&GPT Technical 2. SASOL focus areas

5. Coal has a future....

1. South-Africa

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Sasol’s global presence (updated end 2011)

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Sasol in South-Africa? SOUTH AFRICA Zimbabwe

Botswana Namibia Pretoria

Johannesburg Secunda Sasolburg  

 Richards Bay

Durban South Africa  Refineries     Synfuels and Port Elizabeth Chemical Plants Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Birth of Sasol

South African Government investigated the production of from coal.

Decided to form a state-owned company

Sasol incorporated as a state owned company South Africa has very little crude oil and gas Republic of reservesSouth but Africa large coal reserves

1950 Sasol’s first board of directors

Government support was essential for the establishment of a Synfuels Industry

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Sasol I

Construction of the first Sasol plant in Sasolburg completed at a cost of USD 132 million of the day

First petrol delivered to the market

Sasol became cash positive

First profit

1954 1955 1958 1960

Initial Facility Profitable within 5 years of start-up

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Sasol II & III

80 1979: Sasol Three 70 announced

1979: Iranian Revolution 60 Crude oil prices peaked at about USD80/bbl in today’s money

50 1974: 40 Sasol Two announced 30 1973: October War CrudePrice Oil ($/Barrel) The location of Sasol’s huge new factory, Crude oil prices peaked at > Secunda, is announced 20 USD40/bbl in today’s money

10 High oil prices precipitated the establishment of a Large 0 Scale Synfuels Industry 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 Copyright reserved 2012, Research and Development,US$ of the Sasolday (Nominal) Technology (Pty) Ltd 2003 US$ (Real) Sasol II & III completed

80 1980: 1989: PetroSA GTL facility 70 Completed construction of Sasol II at a cost of USD (Mossgas) using Sasol 3200 million of the day technology

60

1984: 50 Completed construction of Sasol III at a cost of USD 2520 million of the day 40

30 Crude Oil Price ($/Barrel) Price Oil Crude

20

10

0 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 Copyright reserved 2012, Research and Development,US$ of the Sasolday (Nominal) Technology (Pty) Ltd 2003 US$ (Real) Company structure

Sasol group

South African Energy Cluster Chemical Cluster Sasol Group Services Sasol Sasol Mining Sasol Solvents Corporate Affairs Sasol Gas Sasol Olefins and Government Relations Sasol Synfuels Sasol Nitro Sasol Oil Sasol Wax Group Finance Sasol Infrachem Other SA Energy Human Resources Merisol Information Management Investor Relations International Energy Cluster Other businesses Legal and Assurance Safety Health and Environment Sasol Technology Sasol Synfuels International (SSI) Strategy and Planning Sasol New Energy Sasol International (SPI) Supply Chain Management Sasol Financing

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd 60 years of operating experience

Sasol’s synfuels and chemicals plant in Secunda, South Africa

Since inception, produced more than 1.6 billion barrels of high quality fuels from coal and gas. More than 20 million gasifier operating hours. More than 1 billion tons of coal processed at Sasol Synfuels Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Sasol Synfuels coal-to-liquids

Sasol’s largest commercial facilities is the Sasol Synfuels operations in Secunda in South Africa Sasol’s synfuels and chemicals plant in The Secunda plant is Secunda,an equivalent Southof 160,000 Africa bbd refinery

Coal is first gasified in the Sasol® FBDB™ Gasification Process to produce synthesis gas

The synthesis gas is then converted into and other chemicals utilizing Sasol’s proprietary Synthesis technologies

Some Synfuels Facts from a Gasification Perspective In excess of 1 billion tons of coal has been gasified Total coal mined per year >41 million tons; 26 million tons to gasification 6 Coal Sources: 5 Sasol Mines + 1 mine as contracted coal supplier (High ash yield 25-35+ % AD) 3 84 Mk IV™ Sasol® Fixed Bed Dry Bottom™ Gasifiers producing > 3 million mn /h

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Sasol 2011/2012 Financial Results

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd The road ahead in the next 20 minutes…..

3. Sasol Technology C&GPT 4. C&GPT Technical 2. SASOL focus areas

5. Coal has a future....

1. South-Africa

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Sasol Technology R&D

•Corporate R&D located mostly in Sasolburg (590) •Also centers in Secunda (30); Netherlands (9); Scotland (22) •Extensive R&D Infrastructure •Laboratories & Pilot Plants •Design; Construction; Commissioning & Operation •Main R&D Focus Areas Coal & Gas Processing Technologies Fischer Tropsch Chemicals Environment Refinery Technologies New Energy

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd 18 Sasol Technology R&D

2011 / 2012 Budget •Operating budget R 785 million (US$112M) Facilities in Sasolburg •Laboratories •Analytical equipment •Pilot Plants •Library •Maintenance workshops External Liaison •Local Universities •Foreign Universities •Various Research Institutes

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd The road ahead in the next 15 minutes…..

3. Sasol Technology C&GPT 4. C&GPT Technical 2. SASOL focus areas

5. Coal has a future....

1. South-Africa

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Coal & Gas Processing Technologies - Value Chains

Solids Conversion Hydrocarbon Coal Mining Synthesis

High Temperature Gasification Coal Preparation / Beneficiation Sasol® FBDB™ Gasification Acid Gas Coal Coal Removal Sulphur Conveyance & Gasification Underground Coal Recovery Distribution Gasification Crude Gas Cooling Ash Disposal Ash Processing Benfield Shift

Condensate Processing Reforming Co-Product Recovery TM Sasol® Phenosolvan Condensate Treatment Processing Sasol® CLLTM Sasol® Gas Liquor Separation™ Coal Tar Filtration

Nitrogen Based Coal Tar Refining Cryselic Acids Effluent Treatment Business

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd coal & gas processing technologies R&D

Coal Characterisation & Processing

• Physical and chemical properties

• Coal processing and beneficiation

• Coal agglomeration

Gasification Technologies

• Sasol ® Fixed Bed Dry Bottom™ Technology

• Underground

• High Temperature Gasification

• Fluidized Bed Gasification

Synthesis Gas Treatment

• Gas Cooling, Cleaning & Conditioning

22 Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd coal & gas processing technologies R&D

Co-product Processing

• Sasol® Gas Liquor Separation™

• Sasol® Phenosolvan™

• Sasol® CLL™ Recovery

• Coal Tar Filtration

Supporting

• Direct • Pyrolysis • Coal Combustion • Process Modeling

23 Copyright reserved 2012, Research and Development,copyright Sasolreserved Technology 2011, Technology (Pty) Ltd Management, Sasol Technology Some Facts about C&GPT Team

Years with Sasol Qualifications PhD = 16 4 9 MSc=9 BSc (4yrs)= 2 11 3 BSc (3yrs) = 1 8 Diploma = 2 Matric and below = 5

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Specialized skills tools to assist R&D programs

Discreet element modelling (DEM)

Lab scale atmospheric reactor s(i.e. pipe reactor)

2-Dimensional GCMS (GCxGCxMS)

Sasol Proprietary Pyrolyzer (KoekebakkerTM)

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Specialized skills tools to assist R&D programs

Inorganic simulation of mineral matter

6 Predictions of slag composition 5.5 Average 5 Weak deposits 4.5 4 3.5 3 Strong deposits 2.5

poise) 10 (log Viscosity 2 Molten liquid 1.5 1 1000 1050 1100 1150 1200 1250 Temperature (oC)

IDT=1300oC IDT=1311oC IDT=1321oC FT=1346oC

100 Cooled slag or glas

0 Crystalline material

HT-XRD – mineral characterization

platinum

C] C] ⁰ ⁰ [ [

? ? temperature temperature temperature

200 300 400 kaolinite kaolinite quartz quartz mullite mullite anorthite anorthite gehlenite gehlenite calcite calcite dolomite dolomite 500 600 700 800 900 1000 1100 1200 1300 1400 1500 14 20 30 40 50 60 2-Theta - Scale Spectroscopy lab

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Typical C&GPT programsTeam

Coal Supply Value Chain • On-line Coal Quality Measurements & Gasifier Performance Monitoring • Particle Size Distribution Optimization • Coal Characterization • Mineral Transformation • Coal Agglomeration

Sasol Coal Stirrer-Distributor™ for Caking Coal Coal Conversion • Intensification of Sasol® FBDB™ Process • Optimization of mass flow behaviour • Reactor Development • Alternative Gasification Technologies • Underground Coal Gasification

Enhanced Mk V™ Gasifier Internals

Coal Derived Condensate & Gas Treatment Coal Derived Condensate Characterization & Prediction Alternative recovery Sulphur Recovery Optimization Reduction of Environmental Footprint

Advanced Ash Lock & Coal Lock Valve Designs

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Effect of mineral matter on slag formation

6 Predictions of slag composition 5.5 Average 5 Weak deposits 4.5 4 3.5 3 Strong deposits 2.5

Viscosity (log 10 poise) 10 (log Viscosity 2 Molten liquid 1.5 1 1000 1050 1100 1150 1200 1250 Temperature (oC)

IDT=1300oC IDT=1311oC IDT=1321oC FT=1346oC

100 Cooled slag or glas

0 Crystalline material

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd HT-XRD

platinum

C] C] ⁰ ⁰ [ [

? ? temperature temperature temperature

200 300 400 kaolinite kaolinite quartz quartz mullite mullite anorthite anorthite gehlenite gehlenite calcite calcite dolomite dolomite 500 600 700 800 900 1000 1100 1200 1300 1400 1500

14 20 30 40 50 60 2-Theta - Scale

160 kaolinite Kaolinite decomposion Patterns recorded using a Philips X’pert 140 calcite Carbonates starting to dolomite 120 decompose MPD diffractometer equipped with mullite Raytech 12o position sensitive detector 100 Mullite starting to form anorthite and an Anton Paar HTK2000 heating 80 Anorthite starting to form stage 60 40

Radiation used was Co-K2 (HT-XRD counts) Intensity 20 Sample placed on Pt-strip 0 Recorded X-ray spectra with crystalline 500 600 700 800 900 1000 1100 1200 1300 1400 o o phase…50 C and 100 C intervals. Temperature (oC)

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd What is AFT telling us (OR NOT)?

Measured flow temperature = 1420

Hemisperical temperature

Softening temperature

Initial deformation temperature

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Equilibrium simulation and FactsageTM

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Importance of tar

Tar production during low pressure gasification: Liquids evolved from the gasifier downstream are tar, oil, gas liquor and naphtha Tars and are distilled in the tar refinery into various boiling point cuts (light and heavy) Heavy cut (pitch) is used as a feed for coal-tar coke productiom Light cuts are hydrogenated for the fuel pool

Importance of tar:

Light cuts are hydrogenated for the fuel pool 600 Gasification tar PTS Oil unit 02 Oil unit 07 Rectisol Direct conversion of coal to liquids 550 Downstream products 500 Distillation for fuel 450 Pitch to coke 400 Crude tar acids 350 300

250

Current questions: 200

Problematic heteroatoms and phenolics BoilingPoint(Degrees C) 150 Can tar quality and quantity be influenced? 100 Can Quantity and Quality be predicted for 50 0 different coal types? 0 10 20 30 40 50 60 70 80 90 100 Recovered mass %

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Web application: Multivariate Statistical Process Evaluation and Monitoring (MSPEM) – Online measurements

Coal online Coal monitoring and Coal online XRF analyzer info are coming PSD analyzer

CVC CQI Health table check

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd The road ahead in the next 5 minutes…..

3. Sasol Technology C&GPT 4. C&GPT Technical 2. SASOL focus areas

5. Coal has a future....

1. South-Africa

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Coal has a future....!

Sasol R&D has the expertise and capability to support Sasol’s excisting and new business ventures

Cheap source of energy

Widely distributed

Coal also provides a stable source of energy and there is an abundance of supply both in South- Africa and around the world.

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Coal has a future....!

Coal is nothing more than ancient wood which has been under pressure for millions of years. It is not sinister as you may have been led to believe.

Accelarting technology advancements through focussed R&D ensures continued relevance

Coal is South-African made. We do not have to import this product into this country.

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd Coal is (still) the solution....

Copyright reserved 2012, Research and Development, Sasol Technology (Pty) Ltd