Coal Gasification –Today's Technology of Choice and Tomorrow's
Bright Promise
AIChE – East TN SectionOctober 29, 2003
David L. DentonBusiness Development Manager
Eastman Gasification Services Company
Why Coal?• The U.S. has lots of it …
– U.S. recoverable reserves of 297 Billion tons = 250+ years of supply
• We can distribute it …– Existing infrastructure in rail, barge, mine mouth
• It costs less and is less volatile in price …– $1.25/MMBtu vs. > $3.50-5.00/MMBtu for Natural Gas
• We’re familiar with it …– 50% of current U.S. power is from coal
• It broadens our national fuel portfolio …– Insulates against price and availability shock of oil and
natural gas
Coal Gasification Delivers Fuel Diversity and Energy SecurityCoal Gasification Delivers Fuel Diversity and Energy Security
Slide provided by ChevronTexaco
U.S. Natural Gas SupplyHow Much is Left ?
U.S. Nat gas reserves:Proven: 183.5 trillion cubic feetUnproven: 1105.4 trillion cubic feet
Nat gas consumption: 22.6 trillion cubic feet/year and growing significantly
Years remaining at current usage:Proven reserves: 8.1 yearsUnproven reserves: 48.9 years
Source: DOE – Energy Information Administration 2003 Annual Energy Outlookhttp://www.eia.doe.gov/oiaf/aeo/pdf/trend_4.pdf
NG Prices for the Past Year
Coal Breakeven
LNG maycap average NG price at $4-5/MM Btu
long-term
Many analysts are now predicting a severe NG crisis this winter and several predict prices > $4-5/MM Btu for remainder of the decade !!!
$1.50/MM BtuHigher ThanLast Sept.!
How Much Coal is Left ?
Coal Reserves:Demonstrated Reserve Base: 508 billion tonsEstimated % Recoverable: 54%Estimated recoverable: 274 billion tons
2002 Production: 1.093 billion tonsSource: DOE – Energy Information Administration
“US Coal Reserves 1997 update”http://www.eia.doe.gov/cneaf/coal/reserves/chapter3p1.html
Years remaining at current levels: 251 yearsOther source: National Mining Association
http://www.nma.org/pdf/c_most_requested.pdf
Coal Supply
Coal needs to return as a key feedstock and energy
source in the U.S. !!!Gasification is the technology of choice for
converting coal to clean and efficient power, chemicals, fertilizers, and fuels.
Why Gasification?• It is the cleanest coal technology …
– Inherently lower SOX , NOX , and PM– Lowest collateral solid wastes and wastewater– Potential for lowest cost removal of mercury and CO2
• It is proven technology …– 20 years of successful commercial operation at Eastman– Multiple commercial IGCC’s (e.g., TECO Polk, Wabash)
• It is becoming increasingly competitive … – Capital cost at parity with other clean coal and dropping– Lowest variable cost of all fossil fuel technologies
• It is gaining acceptance …– Gaining support of environmental groups (e.g., NRDC, CATF)– Numerous state and federal initiatives and incentives
• It provides great promise for the future …– Flexible feedstocks, process options, and products– Opens new markets for coal (synfuels, chemicals, fertilizers)– It provides the only feasible bridge from coal to hydrogen
(directly converts coal to hydrogen)
Oxygen
Coal
Water
What is Gasification?
Products (syngas):
CO (Carbon Monoxide)
H2 (Hydrogen)
[CO/H2 ratio can be adjusted]
By-products:
H2S (Hydrogen Sulfide)
CO2 (Carbon Dioxide)
Slag (Minerals from coal)
Extreme Conditions: • Up to 1,000 psig or more• Nominal 2,600 Deg F• Corrosive slag and H2S gas
GasClean-Up
BeforeProduct
Use!
Acid Gas (Sulfur) Removal Technology
Choices• MDEA (methyldiethanolamine) – chemical
absorbent, 98+% removal, large CO2 slip, moderate temperature, lowest capital cost
• Selexol tm (primarily dimethyl ethers of polyethylene glycol –DEPE) – 99+% removal, moderate CO2 slip, moderate cost (+$20 M)
• Rectisol tm (methanol) - 99.9+% removal, complete CO2 removal, cold temperatures, highest cost (+$40 M), needed for most chemicals, H2, and fuels applications
So what can you do with CO and H2 ?
Syngas
Transportation Fuels
Building Blocks for Chemical
Industry
Clean Electricity
CO2
Electricity
Steam
Combustion Turbine
SteamTurbine
Natural Gas
NGCC: Natural Gas Combined-Cycle Plant
Air
Most new power plants in the United States in the last 10 to 15 years have been natural gas
based
Electricity
Steam
Combustion Turbine
SteamTurbine
Natural Gas
Air
Syngas from Coal Gasification(adjacent or via pipeline)
X
Integrated Gasification Combined-Cycle (IGCC): Replace NG Feed With Syngas
CO2
Integrated Gasification Combined-Cycle (IGCC)
Contaminants Removed
Pre-Combustion !!!
Air SeparationUnit (ASU)
GasificationBlock
Gas Clean-UpBlock
Combined-Cycle
Power Block
Coal(or otherCarbonSource)
Water
Air
Oxygen
VolatileMercury
PureSulfur
CO2 Capture (ready for sequestration) Electricity
CrudeSyngas
CleanSyngas
Nitrogen
90+%Removal
98+%Removal
Slag
Electricity
Steam
Syngas
Particulate Removal
Gasifier
Slag/Soot
Steam
Combustion Turbine
SteamTurbine
Solids Co-products
Sulfur
Integrated Gasification Combined Cycle
(IGCC) ConfigurationOxygen
Hg Removal
Coal
Petroleum Coke
Refinery Co-products
Biomass
Wastes
CO2 & Sulfur
Removal
CO2
Air
Contaminants Removed
Pre-Combustion !!!Water
CO2
Electricity
Natural Gas
and/or Oil
Gasification-Based Polygeneration:Replace NG and/or Oil With Coal
Syngas from Coal Gasification(adjacent or via pipeline)
Combined-CyclePower Plant
X
ChemicalFacilities
Chemicals,Synfuels,
Fertilizers,and/or Hydrogen
+
Bac
k-up
/ Pe
a kin
g F u
el
Electricity
Steam
Syngas
Particulate Removal
Syngas Conversion
Gasification-Based Polygeneration
(Ultimate Flexibility)
Gasifier
Slag/Soot
Steam
Combustion Turbine
SteamTurbine
Solids Co-products
Sulfur
CO2 & Sulfur
Removal
CO2
ChemicalsOr Fuels or H2
Oxygen
IGCC: Integrated
GasificationCombined
Cycle
Coal
Petroleum Coke
Refinery Co-products
Biomass
Wastes
Water
Air
OptionalShift
Reactors
Hg Removal
CO2
Coal
Dimethyl EtherMethanol
Fischer-Tropsch Liquids
Town gasPower & Steam
Acetic AcidEthylene
&Propylene
Methyl acetate
VAM
Acetic Anhydride
Ketene
Diketene & Derivatives
PVAPolyolefins
FT Diesel
Polygeneration Potential of Gasification
Ammonia& UreaH2
Oxo Chemicals
Synthesis Gas
Car Fuel
Waxes
GasificationNaphtha
Acetate Esters
Why Gasification?Environmental Factors
Basis: ChevronTexaco White Paper (3/03)
And DOE Report (5/99)
Power Plant Typical Emissions by Technology Type
0 0.015 0.06 0.16 0.270 0.025
0.47
1.19
3.1
0.2 0.20.5
0.72
4.1
0.796
1.506 1.5061.679
1.846
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
NGCC IGCCw/Rectisol
IGCCw/Scrubber
AdvancedSCPC
Traditional Pulv. Coal (PC)
Type of Power Plant
lb/M
W-h
r
ParticulatesSO2NOxCO2/1,000
• Mercury Removal• CO2 Sequestration(at fraction of cost for PC)
IGCC Upside Potential:
~ ~
0
100
200
300
400
500
600
700
Lb/M
W-h
r (D
ry B
asis
)
Pulverized Coal Circulating Fluid Bed IGCC
Slag/ Ash Sludge Sulfur CO2
Collateral WastesCaCO3 + SO2 + ½O2 => CaSO4+CO2
No Add’l CO2 Associated with Sulfur Removal for IGCCNo Add’l CO2 Associated with Sulfur Removal for IGCC
Leachable Leachable Vitrified
Useful Sulfur
SludgeSludge
Slide provided by G.E. Power Systems
Pulverized Coal Circulating Fluid Bed IGCC
DOE Report "Major Environmental Aspects of Gasification-Based Power Generation Technologies", December 2002
Vapor-PhaseMercury Removal
Demonstrated for 20 years at Eastman !
Low-Cost Volatile Mercury Removal for IGCCAn order of magnitude less expensive for IGCC
(COE = Cost of Electricity)
PCIGCCTechnology
$37,800/pound$3,412/poundCost of removal, $/pound Hg
~ 9%< 1%Fraction of COE
$3.10/MWh$0.254/MWhCost of Hg removal, $/MWh
1601.0Relative volumetric gas flow
Stack gasSyngas (ahead of AGR)Mercury (Hg) removal location
PCIGCCTechnology
$37,800/pound$3,412/poundCost of removal, $/pound Hg
~ 9%< 1%Fraction of COE
$3.10/MWh$0.254/MWhCost of Hg removal, $/MWh
1601.0Relative volumetric gas flow
Stack gasSyngas (ahead of AGR)Mercury (Hg) removal location
DOE Report, "The Cost of Mercury Removal in an IGCC Plant", September, 2002
DOE Report "Major Environmental Aspects of Gasification-Based Power Generation Technologies", December 2002
IGCC Economics are Increasingly Competitive
• Lowest Total Variable Costs:– IGCC Variable Costs (O&M + Fuel +
Materials & By-products) are the lowest of all fossil fuel technologies.
• Capital Costs Near Parity with PC Plants:– Capital costs of pulverized coal plants have
been increasing to ~ $1200-1400/KW as emissions requirements have tightened.
– Capital costs of IGCC have been falling (currently projected as ~ $1200-1400/KW) as multiple plants are built and improved.
Cost of Electricity Comparison
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Natural Gas Coal Combustion Coal Gasification
Relative Busbar Cost of Energy in Cents/Kwh
Capital Expenses Fuel Costs Materials/Byproducts O&M Costs
Assumptions: Nat. Gas - 65% capacity factor w/ fuel costs of $4/MM Btu and capital costs of $500/kW;Coal Combustion - SCPC plant at 85% capacity factor w/ fuel costs of $1.25/MM Btu and capital costs of $1,200/kW;
Coal Gas - IGCC plant at 85% capacity factor w/fuel costs of $1.25/MM Btu and capital costs of $1,250/KW.Data extrapolated from DOE Report "Market-Based Advanced Coal Power Systems", May 1999.
LowestTotal
Variable Costs
IGCC Capital Cost Improvement
Source: GE Power Systems, Power-Gen 2002 Presentation
TargetRange
For IGCC
x
Recent Clean Coal PCPlants
x
IGCC Capital Cost Breakdown
Overall cost (EPC) = $1200 - $1400 per KW[Can be significantly less if purchase and retrofit an existing NGCC plant at a discounted price!]
Combined Cycle Plant
CT/HRSG/ST43%
Gasifier Block25%
ASU15%
Coal Prep10%
AGR/SRU7%
Proven Technology
• First U.S. commercial coal gasification facility in 1983 at Eastman Chemical Company –ACS National Historic Chemical Landmark.
• First IGCC plant demonstrated in 1984 at Cool Water site in California.
• 14 current IGCC plants globally, including TECO’s Polk Plant and Global Energy’s Wabash Plant. (~ 130 total global gasifiers)
• Eastman has achieved world-class success in coal gasification for almost 20 years.
Eastman’s Experience with Gasification• We were a pioneer in coal gasification …
– First commercial U.S. coal gasification facility in 1983– Designated as ACS National Historic Chemical Landmark
• Industry leading operating performance …– > 98% on-stream time since 1984– < 1% forced outage rate– Highest production rate per unit of capacity– Single-train reliability of ~90%
• Excellent safety record …– OSHA recordable rate of 1.0; no lost time in over 11 yrs
• Exceptional environmental performance …– Remove >99.9% of sulfur– Patented sulfur-free start-up process– Volatile mercury removal for almost 20 years
• Continual process improvement …– Reduced maintenance costs > 40% in past 6 years– Patented feed injector designs for longer run life
Coal
CleanSyngas
Particulate Removal
Syngas Conversion
Texaco Gasifier
(1 + spare)
Slag/Soot
Steam
SolidsCo-products
Sulfur
CO2
Eastman’s Gasification Configuration
Chemicals (Ac20, HOAc, MeOH,
MeOAc)Oxygen
REC
TISO
L
Sulfur Recovery
SCOT/Claus
Air
Prod
ucts
CO
CO/H2Separation
(Linde)
CO2/H2S Removal
Hg Removal
H2
Water
Shift Reactors
RawSyngas
Syn Gas (CO + H2)
Carbon Monoxide (CO)
Chemicals from Coal – The Chemistry
Methyl Acetate Plant
Methyl Acetate
CH3OH+ CH3COOH CH3CO2CH3 (methyl acetate)Acetic
Anhydride
CO + CH3CO2CH3 (CH3CO)2O (acetic anhydride)Acetic Acid
Carbonylation Plant
CH3OH + CO CH3COOH (acetic acid)
MethanolPlant
Methanol
CO + H2 CH3OH (methanol)
Primary Reactions:
Tennessee Eastman Coal Gas Product Flow
Gasification Area
SalesSales
Sales
Sales
Sales
Acetic AnhydrideAcetic AcidCoal
Eastman Chemicals from Coal – The Big Picture
It’s likely you have a product in your home based on coal gasification from Eastman’s facility!
Several major products are single-sourced from Eastman's coal gasification process!!!
Operating StatisticsThree-Year Cycle (Sept 2000 - Sept 2003)
including planned shutdown
On-Stream98.12 %
Unplanned1.10%
Planned0.78%
Not Needed0.0%
Industry-Leading Performance !!!
Operating StatisticsOne-Year Cycle (Sept 2002 - Sept 2003)
On-Stream98.91 %
Unplanned1.09%
Planned0.0%
Not Needed0.0%
Eastman Operating StatisticsEastman Gasification Plant
Historical Forced Outage Rate
0
1
2
3
4
5
6
7
8
9
10
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
% F
orce
d O
utag
e R
ate
Forced Outage Rate has Averaged < 2% since 1984 !!!
Gasifier Run Data1983-2002
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
No
of D
ays
Time Between ShutdownsTime Between Switches
Eastman Operating Statistics
Feed InjectorImprovements
Recently Set 122-Day Run Record (4 x baseline)!
2x
Eastman Operating Statistics
Continual Process ImprovementGasifier Average Production Rate
80
90
100
110
120
130
140
150
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Nor
mal
ized
Pro
duct
ion
Rat
e
Eastman Operating Statistics% On-stream Time and Maintenance costs
40%
50%
60%
70%
80%
90%
100%
110%
1996 1997 1998 1999 2000 2001 2002
On-stream
Normalized to 1996
Eastman’s Value Proposition
Eastman's 20-yrs experience can enable faster start-ups
Time to Capacity
Eastman works with industry and government to understand & plan for uncertainties
Economic & Environmental Uncertainties
Eastman can help offer adequate warranties
Financing of Projects
Eastman has the best operating performance in the industry; offering O&M services
Reliability Concerns
Eastman knows gasification (20 yrs experience); O&M services
Unfamiliarity to Utilities
Eastman helps owners make intelligent design choices
High Capital Costs
Eastman Value CreationMarket Need
Eastman will help gasifier owners get more out of their plants, including faster
start-ups and improved long-term availability and reliability
• World-class operational performance
• Intelligent design choices to limit capital costs
• Patented technology improvements
• Exceptional safety and environmental records
Service Offerings:h Operations & maintenance contractsh Technical servicesh Critical spare parts fabricationh Specific technology licensingh Cooperative services agreement with
ChevronTexaco
The Promise of the Present and of the Future for Gasification:
• Competitive cost of electricity (superior variable cost -lowest for all fossil fuels)
• Exceptional environmental performance, including cost effective volatile mercury removal and potential for lowest-cost CO2 capture and sequestration
• Retrofit of NGCC plants (replacing NG with coal)• Production of hydrogen to fuel the coming economy
(FutureGen Initiative)• Promise of new markets for coal - potential for
transformation of the chemical, fuels, and fertilizer industries
•• Gasification is Gasification is thethe future for coal !!!future for coal !!!
The Future Looks Bright for Coal Gasification!!!