University of Pennsylvania ScholarlyCommons Department of Chemical & Biomolecular Senior Design Reports (CBE) Engineering 4-2012 COAL AND NATURAL GAS TO LIQUID ALKANES BY HYBRID PROCESSING Pat Driscoll University of Pennsylvania Bill Matczak University of Pennsylvania Igor Gonzales University of Pennsylvania Tom Puckette University of Pennsylvania Follow this and additional works at: https://repository.upenn.edu/cbe_sdr Driscoll, Pat; Matczak, Bill; Gonzales, Igor; and Puckette, Tom, "COAL AND NATURAL GAS TO LIQUID ALKANES BY HYBRID PROCESSING" (2012). Senior Design Reports (CBE). 43. https://repository.upenn.edu/cbe_sdr/43 This paper is posted at ScholarlyCommons. https://repository.upenn.edu/cbe_sdr/43 For more information, please contact [email protected]. COAL AND NATURAL GAS TO LIQUID ALKANES BY HYBRID PROCESSING Abstract This report describes a process to convert coal and natural gas to a mixture of liquid hydrocarbons, which is intended to be sold as a feedstock for a refinery. Given that the region has a large amount of coal production and sits atop the Marcellus shale with its expanding natural gas production, as well as the proximity to refineries in Ohio, southwestern Pennsylvania is a natural location for such a venture. 2600 tons per day of coal and 66 million standard cubic feet per day of natural gas are converted to syngas in separate, parallel process trains. The hydrogen rich natural gas syngas is mixed with the hydrogen lean coal syngas to give the desired syngas composition. Fischer-Tropsch chemistry is used to convert syngas with a 2 to 1 H2:CO molar ratio to a distribution of alkanes. The alkanes are separated to give 15,500 barrels per day of liquid product. The total capital investment of the project was estimated to be $1,308 million. Using the EIA baseline projection for the price of oil and a 15% discount rate, the project is expected to have a net present value of -$258 million, with an internal rate of return of 11%. The profitability of the project is especially dependent on the price of oil and the total capital investment. This working paper is available at ScholarlyCommons: https://repository.upenn.edu/cbe_sdr/43 Department of Chemical and Biomolecular Engineering University of Pennsylvania Senior Design Report, 2012 Coal and Natural Gas to Liquid Alkanes by Hybrid Processing Authors Pat Driscoll Igor Gonzales Bill Matczak Tom Puckette Advisor Project Originator Dr. Warren Seider John A. Wismer Professor Warren Seider Professor Leonard Fabiano Mr. John Wismer Department of Chemical Engineering University of Pennsylvania Philadelphia, PA 19104 April 3, 2012 Dear Professor Seider, Professor Fabiano, and Mr. Wismer, The following is our report for our senior design project, “Coal and Natural Gas to Liquid Alkanes by Hybrid Processing,” proposed by Mr. John Wismer. The project called for the design of a process that can convert both Coal and Natural gas into a liquid hydrocarbon stream. The products can be shipped to nearby refineries in Ohio for further refining and processing into fuel. The report primarily focuses on a preliminary plant design and profitability analysis. The plant has an estimated life of 30 years and utilizes 66 million standard cubic feet per day of Marcellus shale gas and 2,600 tons per day of Pennsylvania bituminous coal. The liquid product would be 15,500 barrels per day of liquid alkanes. The plant would require a total capital investment of $1,309 million. Using the Energy Information Administration’s Annual Energy Outlook for 2012 baseline oil price projections and a discount rate of 15%, the project has a net present value of -$285 million, with an internal rate of return of 11%. While the process is not profitable under the baseline assumptions and discount rate, further analysis of the costs, price projections, and the capital position of interested companies may make it worthwhile to proceed. Sincerely, Patrick Driscoll Igor Gonzales Bill Matczak Tommy Puckette ii Table of Contents Section 1 - Abstract ......................................................................................................................... 1 Section 2 - Introduction .................................................................................................................. 3 Section 3 - Innovation Map ............................................................................................................. 6 Section 4 - Market and Competitive Analysis ................................................................................ 8 Section 5 - Process Flow Diagrams and Material Balances ......................................................... 10 Overall Process ....................................................................................................................... 11 Block G • Natural Gas Reforming .......................................................................................... 12 Block C • Coal Gasification .................................................................................................... 14 Block P • Fischer-Tropsch, Product Separation, and Power Recovery .................................. 16 Section 6 - Process Description .................................................................................................... 18 Block G • Natural Gas Reforming .......................................................................................... 19 Block C • Coal Gasification .................................................................................................... 20 Block P • Fischer-Tropsch, Product Separation, and Power Recovery .................................. 21 Product Description ................................................................................................................ 22 Section 7 - Reactor Design ........................................................................................................... 23 Steam Methane Reformer ....................................................................................................... 24 Coal Gasification Reactor ....................................................................................................... 25 Fischer-Tropsch Reactor ......................................................................................................... 26 Section 8 - Energy Balances and Utility Requirements ................................................................ 29 Cooling Water ......................................................................................................................... 31 Chilled Water .......................................................................................................................... 31 Refrigeration ........................................................................................................................... 31 Electricity ................................................................................................................................ 32 Section 9 - Equipment Descriptions ............................................................................................. 34 SMR-1 • Steam Methane Reformer ........................................................................................ 35 GAS-1 • Coal Gasifier ............................................................................................................ 36 FT-1 • Fischer-Tropsch Reactor ............................................................................................. 37 iii CP-1 • Centrifugal Compressor .............................................................................................. 38 CP-2 • Centrifugal Compressor .............................................................................................. 38 P-1 • Centrifugal Pump ........................................................................................................... 38 P-2 • Centrifugal Pump ........................................................................................................... 39 P-3 • Centrifugal Pump ........................................................................................................... 39 ST-1 • Steam Turbine ............................................................................................................. 39 ST-2 • Steam Turbine ............................................................................................................. 40 GT-1 • Gas Turbine ................................................................................................................. 40 SR-1A & SR-1B • Desulfurization Vessel ............................................................................. 41 V-1 • Flash Vessel ................................................................................................................... 42 HX-1 • Heat Exchanger .......................................................................................................... 42 HX-2 • Heat Exchanger .......................................................................................................... 43 HX-3 • Heat Exchanger .......................................................................................................... 43 HX-4 • Heat Exchanger .......................................................................................................... 44 HX-5 • Heat Exchanger .......................................................................................................... 44 HX-6 • Heat Exchanger .........................................................................................................