14th European Round Table on Coal – May 31, 2011
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Serge Périneau
Coal to Liquid Fuels, Natural Gas & Chemicals: A Global Perspective
14th European Round Table on Coal
Coal to Liquid Fuels, Natural Gas & Chemicals: A Global - - PowerPoint PPT Presentation
14th European Round Table on Coal Coal to Liquid Fuels, Natural Gas & Chemicals: A Global Perspective Serge Prineau 14 th European Round Table on Coal May 31, 2011 www.world-ctl.com 1 Coal to Fluid Hydrocarbons Framework
14th European Round Table on Coal – May 31, 2011
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Serge Périneau
14th European Round Table on Coal
14th European Round Table on Coal – May 31, 2011
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Coal to Fluid Hydrocarbons
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Coal Conversion
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A Growing Demand in Oil, whatever IEA scenario
1985 2030
Source: IEA’s World Energy Outlook 2009
5,500 5,000 4,000 4,500 3,500 2,500 3,000 1985 2030 2007
Transport Power Residential Industry Heavy duty Light duty Aviation Rail Marine
Oil consumption forecast (Mt/year) R e f e r e n c e s c e n a r i
2010 2011
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Oil, Gas and Coal: Reserves
Years
BP Statistics - 2010 Annual Report
Source: BP Statistical Review 2010 Coal reserves modified for China, Indonesia, Mongolia
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Oil, Gas and Coal: Reserves + 10% of Resources
Years Reserves 10% resources
Source: BGR Annual report (2010)
10% resources Energy unit: Gt Oil equivalent Reserves
2010 Annual Report (BGR)
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A major energy security stake
proved reserves
Source: BP Statistical Review 2010 Coal reserves modified for China, Indonesia, Mongolia
Years
consumption Ratio
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Coal Conversion
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Technologies: conventional conversion routes
Gasification Surface/ Underground Fischer-Tropsch
Liquid Fuels Coal
Synthetic gas - CO+H2 Methanol Dissolution Hydrotreatment Refining Liquefaction
Indirect routes Direct route
Majiata (Inner Mongolia) Jamg (Shanxi, China) Secunda (RSA)
Methanation
Natural Gas
Great Plains, ND (USA)
Petrochemicals Liquid Fuels Liquid Fuels
Methanol To Gasoline
Lu’An (China)
Refining
Yitai (China)
Methanol To Olefins
Baotou (I. Mongolia)
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Technologies: conventional conversion routes
Gasification Surface/ Underground Fischer-Tropsch
Coal
Synthetic gas - CO+H2
Indirect routes
Secunda (RSA)
Liquid Fuels
Lu’An (China)
Refining
Yitai (China)
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Technologies: conventional conversion routes
Gasification Surface/ Underground
Liquid Fuels Coal
Synthetic gas - CO+H2 Methanol
Indirect routes
Jamg (Shanxi, China)
Methanol To Gasoline
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Technologies: conventional conversion routes
Gasification Surface/ Underground
Coal
Synthetic gas - CO+H2 Methanol
Indirect routes
Petrochemicals
Methanol To Olefins
Baotou (I. Mongolia)
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Technologies: conventional conversion routes
Gasification Surface/ Underground
Coal
Synthetic gas - CO+H2
Indirect routes
Methanation
Natural Gas
Great Plains, ND (USA)
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Technologies: conventional conversion routes
Gasification Surface/ Underground
Coal
Synthetic gas - CO+H2 Dissolution Hydrotreatment Refining Liquefaction
Indirect routes Direct route
Majiata (Inner Mongolia)
Liquid Fuels
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Technologies: conventional conversion routes
Gasification Surface/ Underground Fischer-Tropsch
Liquid Fuels Coal
Synthetic gas - CO+H2 Methanol Dissolution Hydrotreatment Refining Liquefaction
Indirect routes Direct route
Majiata (Inner Mongolia) Jamg (Shanxi, China) Secunda (RSA)
Methanation
Natural Gas
Great Plains, ND (USA)
Petrochemicals Liquid Fuels Liquid Fuels
Methanol To Gasoline
Lu’An (China)
Refining
Yitai (China)
Methanol To Olefins
Baotou (I. Mongolia)
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Coal Conversion
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Environment: Coal is most controversial
M a r c h 2 , 2 9 , W a s h i n g t
D C ( R e u t e r s ) M a r c h 2 6 , 2 9 , W
l d C T L C
f e r e n c e
« Coal is My Worst Nightmare »
Steven Chu, Nobel physicist, U.S. Energy Secretary
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Three steps:
– Need for water: 1 to 2 m3 per barrel: an issue in several regions – Ashes, gaseous and liquid noxious emissions: managed through classical chemical processes
Environment: Local Stakes
Source: Idaho National Laboratory (2007) 0% 20% 40% 60% 80% 100% Sulfur oxides
(<10 ppm) Nitrogen oxides CO Volatile org.
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Global Issue: GreenHouse Gas Emissions
Case 1: Diesel produces from coal without CCS (Carbon Capture & Storage) Well to Wheels emissions (grams of CO2 equivalent per mile):
100 200 300 400 500 600 700 800 900
Diesel from crude oil CTL diesel w/o CCS
Sources: Idaho National Laboratory (2007) and U.S. DOE (2009) (marked *)
+63-100%
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Global Issue: CCS & Biomass are CTL’s best allies
Case 2: Diesel produced from coal with CCS:
Well to Wheels emissions (grams of CO2 equivalent per mile):
100 200 300 400 500 600 700 800 900
Diesel from crude oil CTL diesel w/o CCS CTL diesel with CCS * CTL diesel with 30% biomass CTL diesel, CCS & 30% biomass CTL diesel, CCS & 15% biomass *
Sources: Idaho National Laboratory (2007) and U.S. DOE (2009) (marked *)
+63-100%
Reference: conventional diesel
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CCS: Cost Breakdown
Capture
$25-75 per tonne CO2
Transport I njection
$1-5 per tonne CO2/ 100 km $1-2 Per tonne CO2
Source: IPCC - Intergovernmental Panel on Climate Change - 2005
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Coal Conversion
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At Present Barrel Price, a Profitable Activity
2006
$/bbl - Crude Oil Equivalent
2007 2008 Rand
Shenhua
JP Morgan U.S. DOE U.S. DOE U.S. National Research Council U.S. National Coal Council 2009 JGC JGC PEI PEI Technology providers NRC Nal
2010 2011 IFP: Europe IFP: USA IFP: China
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Sensitivity Analysis
Source: U.S. DOE 2007
Variation of the Return on Investment in % for +/-25% variation of… Other parameters: CO2 impact, subsidies, discount rate,…
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A Capital Intensive Industry (40-50,000 bpd unit)
2006
x000$ / daily bbl
2007 2008
Shenhua JP Morgan
DOE DOE NCC 2009 PEI Technology providers
Scully Capital
SSEB NRC Nal Acad. 2010 2011
bpd25k
Reported Capital Expenditure - 40-50,000 bpd unit
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Coal Conversion
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Many Projects, Several Demonstration Plants
Philippines Mongolia Arckaringa Mmamabula Waterberg Tata Sasol Assam Irkutsk Secunda Sasolburg Operations Projects Geleximco Clinton Ordos Posco Fox Creek
SNG CTL
4.3 Mm3/d 20,000 bpd 160,000 bpd
Great Plans, ND Bumi & Sasol Spitfire Oil L&M Lignite Monash Latrobe
4,000 bpd
Lu’An
4,000 bpd
Yitai Serafimovskiy Jindal
3,000 bpd
JAMG Baotou
600,000 tpa
Leuna
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CTL projections
Source: U.S. Energy Intelligence Agency (2009)
50 100 150 200 250 300 350
2011 2020 2030 2025 2015 2009
CTL
Oil shale
BTL
2011 2020 2030 2025 2015 2009
750 900
250 200 150 100 50
2,750
Sources: China Coal Information Institute (2009) and Shenhua (2010)
x000 barrels/day
2,700 700
Forecasts published in
Shenhua 110 kbpd Shenhua 442 kbpd
x000 barrels/day
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World CTL, a European Initiative to Boost Co-operations
Presentations, networking, appraisal
14th European Round Table on Coal – May 31, 2011
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best allies of CTL.
intensive.
Conclusion
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Beijing, June 8-9, 2011
Delhi, January 18-20, 2012
management2011@world-ctl.com