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Gasification – Gamechanger for Chemicals
GASIFICATION INDIA 2020
Shiba Sen & Mario Moniz
December 16, 2020
©2020 Air Products & Chemical Inc
Coal to Chemicals can save significant foreign exchange
India’s domestic coal use as a feedstock for chemicals like methanol/ammonia and fuels can reduce the country’s foreign exchange spend for oil and gas by ~10-15 billion USD in the next 5 years
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Overview of India’s Energy Mix by Fuel and Sector
TPES – Total Primary Energy Supply | TFC – Total Final Consumption | Date of Year 2017 All figures in Million Tonnes of Oil Equivalent (Mtoe)
• India is heavily dependent on crude oil and LNG imports with ~84% import
dependence for crude oil and ~46% for natural gas/LNG
• India’s net foreign exchange outgo was ~112 billion US$ on account of crude
oil imports and ~10.3 billion USD for LNG imports in the financial year 2018–19
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Coal/Petcoke preparation and supply
Utilities : Power , Water, etc.
Land, Clearances & Permits
Sulphur
Air Products Gasifiers
Slag / Black / Grey Water
Syngas Clean-Up
Gas Separation
AirSeparationUnit
Air Products – Business Model
Customer Investment
Gamechanger opportunity – Air Products Model
Ammonia
Methanol
Syngas
SyntheticFuels
Hydrogen /CO
Air Products Investment ( Build , Own and Operate)
CO₂ Capture
Air Products Build, Own & Operate for long term ( 20-25 years) End Products
supply contract (e.g. Methanol, Ammonia , Hydrogen, Carbon Monoxide, SNG,
Synthetic Fuels and Power)
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Air Products experience for this Gamechanging opportunity in India
Project capital represents 100%, not APD shareProject dates represent actual or expected onstream
Lu’AnJV$1.5B2018Large ASUs
for China coal gasification
Jiutai100% APD$0.65B2022Jazan IG/
Gasif/Power JV$11.5B 2021
DebangJV$0.25B2023
Indonesia100% APD$2B2024
Gasification plants are CO2 capture ready
Shell Gasification Technology Acquisition(May 2018)
GE Gasification Technology Announcement(November 2018)
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Saudi Aramco Jazan Economic City,Saudi Arabia
● Scope: Long-term supply of hydrogen, nitrogen, steam and electricity from gasification of vacuum residue. Air Products process includes:– ~3.8 GW IGCC– Six ASUs producing >75,000 tpd of oxygen and nitrogen– Utilities
● Customer End Products: Refined oil products
● Ownership: JV between Air Products (46%), ACWA Power (25%), Saudi Aramco (20%) and Air Products Qudra, a majority-owned JV with Qudra Energy (9%)
● Capital: ~$11.5 billion
● Contract: Customer pays fixed monthly fee and provides vacuum residue
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©2020 Air Products & Chemical Inc
Lu'An Clean Energy Company Changzhi, Shanxi Province, China
• Scope: Long-term supply of syngas from coal gasification. Air Products process includes:
• Four 3,000 ton-per-day (tpd) dry- feed gasifiers with syngas coolers, the largest single dry-feed gasifiers at the time of being put into operation
• Syngas clean-up system• Four air separation units (ASU) producing >16,000
tpd of oxygen and nitrogen• Customer End Products: 1 mmpta coal to liquid fuels - one of China's landmark clean energy demonstration projects• Ownership: Joint venture (JV) between Air Products (60%) and Lu'An (40%)• Capital: $1.3 billion• Contract: Customer pays fixed monthly fee and provides coal• Status: Onstream
Other:• The gasifiers have delivered outstanding performance in syngas output, carbon conversion
rate and operational efficiency.• Gasifiers ramped up quickly with a consecutive running record of 212 days for a single
gasifier realized within one year of start-up. Nearly 95% of plant availability rate was achieved in 2019.
• Carbon conversion rate of >99% was delivered in 2019 for high ash anthracite as feed
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PT Bakrie Capital and PT Ithaca Resources Bengalon, East Kalimantan, Indonesia
• Scope: Long-term supply of nearly 2 million
tpy of methanol.
Air Products process includes:
– Air separation
– Air Products' proprietary Syngas Solutions™
dry-feed gasifier (6 million TPY of coal)
– Syngas clean-up
– Methanol plant
– Utility island
• Capital: ~$2 billion; 100% Air Products
• Contract: Customer pays fixed monthly fee
• Status: Onstream expected 2024
Highest Moisture coalHighest Moisture coal
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Jiutai New Material Co. Ltd Hohhot, China
• Scope: Long-term supply of about 500,000
nm3/hour of syngas.
Air Products process includes:
– Two 2,000 tpd Air Products dry-feed gasifiers,
converting lignite into syngas efficiently
– Two ~100,000 nm3/hour ASUs
– Syngas purification and processing
– Associated infrastructure and utilities
• Customer End Products: 1 mmtpa MEG -
the largest single plant of its size
• Ownership: Air Products (100%)
• Capital: $650 million
• Contract: Customer pays fixed monthly fee
• Status: Onstream expected 2022
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Debang Group, Lianyungang City,Jiangsu Province, China
• Scope: Long-term supply of about 500,000
nm3/hour of syngas.
Air Products process includes:
– Two 750 tpd slurry gasifiers
– Purification units
– ASUs
• Customer End Products: 350,000 tons
per year (tpy) of chemicals
• Ownership: JV between Air Products
(80%) and Debang Group (20%)
• Capital: ~$250 million
• Contract: Customer pays fixed monthly
fee
• Status: Onstream expected 2023
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Air Products’ technology presence in IndiaUtilizing domestic coals for a range of products
Approx shipping distance of 500 KM
◼ Client: Coal India Limited
◼ Location: Dankuni coal complex
◼ 25 Kms from city of Kolkata (Calcutta)
◼ 2050 t/d Methanol
◼ Coal from Raniganj Coalfields
◼ Ash content less than 24%
◼ 25 years BOO contract
◼ Currently project is in Bidding phase
◼ AP to offer dry-feed technology
◼ Located at Orissa, India
◼ EPC contract awarded in September 2019
◼ Final products are 2200 tpd ammonia, and 3850 tpd urea
◼ Air Products dry-feed coal gasification selected, for gasifying a blend of high-ash coal (ranging from 40% to 47% ash) and petcoke (25% maximum in the blend)
New project: Talcher fertilizers limited high-ash coal gasification
New project: Dankuni Coal to Methanol Project
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What is Build-Own-Operate /Sale of Gas/ Outsourcing
• Under the Sale of Equipment (SOE) model, the customer produces its own industrial
gases. They buy a design license, pay other parties to build the plant & then operate
and maintain the plant themselves
• In SOE, customer invests in the capex and takes all risks related to construction and
operations/maintenance
• Under the Build-Own-Operate (BOO)/ Sale of Gas (SOG) case, the customer buys
industrial gas or the product (chemicals) from the BOO supplier, the BOO supplier;
- Provides capital to design & build the plant and then owns and operates the facility
and supplies the product to the customer over a long term contract
- Takes full responsibility for all operating and maintenance activities and risks
- Provides guaranteed on-stream (reliability & availability) and process/energy
efficiency levels
- May supply multiple customers from a single plant
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©2020 Air Products & Chemical Inc13
Coal/Petcoke preparation and supply
Utilities : Power , Water, etc.
Land, Clearances & Permits
Sulphur
Air Products Gasifiers
Slag / Black / Grey Water
Syngas Clean-Up
Gas Separation
AirSeparationUnit
Air Products – Business Model
Customer Investment
Gamechanger opportunity – Air Products Model
Ammonia
Methanol
Syngas
SyntheticFuels
Hydrogen /CO
Air Products Investment ( Build , Own and Operate)
CO₂ Capture
Air Products Build, Own & Operate for long term ( 20-25 years) End Products
supply contract (e.g. Methanol, Ammonia , Hydrogen, Carbon Monoxide, SNG,
Synthetic Fuels and Power)
©2020 Air Products & Chemical Inc
Risk Matrix Comparison
Customer Make Case Air Products Supply
Risk Category Customer Customer Air Products
Construction - Cost X X
Construction -Schedule
X X
Commissioning X X
Feedstock X X
Operating - Availability X X
Operating – Efficiency X X
Operating – Costs X X
Funding X X
Sale of Gas / BOO model transfers most risks from Customer to Air Products
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Supply Structure: Coal to Methanol
Any Govt. Entity or PSU
Gasification Units
End Markets
Prepared Coal
Methanol
ASU Units
Syngas Purification
O2
Crude Syngas
NH3/MeOH Production
Guaranteed off-take of Methanol or Ammonia
Ammonia
Any Govt. Entity or PSU
Guaranteed off-take of Methanol or Ammonia
End Markets
Any Govt. Entity or PSU
Guaranteed off-take of Methanol or Ammonia
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©2020 Air Products & Chemical Inc
©2020 Air Products & Chemical Inc
Air Products will invest, own and operate the coal to chemicals facility and guarantee plant
performance backed by significant financial incentives and penalties if targets are not achieved
• Complete capital avoidance – Air Products to invest the capital
• Guaranteed by Air Products
- Availability - % on-stream
- Reliability - trips / year
- Plant efficiency
- Product specification
- Operational cost
- Build schedule & cost
Benefits of BOO Model
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• 100% owned facility in Kochi
• BPCL Kochi awarded this
BOO contract in year 2013
based on competitive
bidding
• Build, Own and Operate
(BOO) Model implemented
to supply Hydrogen,
Syngas and Nitrogen to
BPCL Kochi
• 18 MW captive gas turbine
is part of BOO scope
• Investment of ~$500
Million
• In operation for more than
3 years
BOO Facility at BPCL Kochi, Kerala, India
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Thank you tell me more
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Air Products India
Industrial gas facility in Kochi supplying BPCL
EPC Center in Pune
EPC Center in Vadodara
INOX Air Products JV-
largest IG company in India
Global, multibillion-dollar industrial gases company with extensive operations in India
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