Workshop on Alternative Workshop on Alternative Marine Fuels - - PowerPoint PPT Presentation

• Workshop on Alternative

Marine Fuels Focus: DME, Methanol, H2 Workshop on Alternative Marine Fuels Focus: DME, Methanol, H2

Ingvar Landälv, Chief Technology Officer, Chemrec AB

Gothenburg, November 16, 2010 Gothenburg, November 16, 2010

• Fuels Covered

2

Fuel

What Volumes?

What time frame ? Price perspective ? Prod. Efficiency, LCA? Potential ? Multi- fuel scenario s Multi- fuel engines HFO Se Se Se Se Se MDO Se Se Se Se Se Se MGO Se Se Se Se Se Se ULS HFO Se Se Se Se Se Se

• Env. Diesel

Se Se Se Se Se Se NG LNG

Methanol

IL Il IL IL IL

Item 3

• n

agenda? Item 3

• n

agenda ?

DME IL Il IL IL IL

Item 3

• n

agenda? Item 3

• n

agenda ?

Hydrogen

*) (IL) (IL) (IL) (IL) (IL)

Item 3

• n

agenda? Item 3

• n

agenda ?

• Price Perspective

(fossil and renewable) Price Perspective (fossil and renewable)

• Methanol-Gasoline Price Comparison

$ / mm Btu

4

0.054 € / kWh 0.04 € / kWh

• Jan-09

$0.70 $233 € 159 $200 Feb-09 $0.70 $233 € 159 $200 Mar-09 $0.65 $216 € 159 $215 Apr-09 $0.60 $200 € 146 $230 May-09 $0.60 $200 € 146 $230 Jun-09 $0.60 $200 € 146 $230 Jul-09 $0.68 $226 € 159 $250 Aug-09 $0.72 $239 € 159 $265 Sep-09 $0.84 $279 € 159 $280 Oct-09 $0.95 $316 € 223 $300 Nov-09 $1.00 $333 € 223 $300 Dec-09 $1.10 $366 € 223 $330 Jan-10 $1.10 $366 € 235 $350 Feb-10 $1.10 $366 € 235 $350 ”Average” $275 €200 $275

Month Non-discounted ref . price Posted contract price, Eur. Posted Contract price, Asia $/gal $/mt €/mt $/mt 0.036 €/kWh 0.036 €/kWh 0.036 €/kWh Source: Methanex

• Price Levels of some Key Commodities

Commodity € / kWh (approx.) Crude at 80 USD/bbl 0.035 Gasoline at refinery gate, NW Europe (0.4€/lit) 0.045 Diesel at refinery gate, NW Europe (0.4€/lit) 0.041 Methanol, contract price (average Jan -09 to March -10) Rotterdam, (200€/t

• 250 USD/t )

0.036 DME, estimate based on methanol price 0.037-0.038

• Prices of some energy carriers (w/o taxes)

7

• Crude oil at 80 USD/barrel equals about 0.035 €/kWh
• Gasoline
• at 0.4 €/l equals 0.045 €/kWh
• at 0.5 €/l equals 0.056 €/kWh (today´s Swedish pump price)
• Diesel
• at 0.4 €/l equals 0.041 €/kWh
• at 0.5 €/l equals 0.051 €/kWh (today´s Swedish pump price)
• Methanol at 200 €/mt equals 0.036 €/kWh
• DME has approximately the same production cost as MeOH on an

energy basis.

• Transportation and storage will be more expensive for MeOH and

DME compared to gasoline and diesel due to lower energy density and smaller volumes plus that DME has to be handled as LPG!

• Lowest Product Cost

(Bioenergy to FT Diesel and DME)

Source:

10 20 30 40 50 60 1 2 3 4 5 6 7 8 9 Total biomass provision costs at BtL plant [€/GJ] BtL production costs [€/GJ] Chemrec CHOREN FZK TU Wien Abengoa CFB Abengoa EF CUTEC

EU

€14-16 / MWh ~ € 0.4 / lit. diesel ekv.

US

~ $2 / gal diesel ekv.

• Production Principles

Production Principles

• 11/19/2010

10

The Route via Gasification to Fuels Syngas Syngas (CO+H2) (CO+H2)

Natural Gas Natural Gas

Coal Coal Biomass Biomass

Syntetic Diesel (FTD)

Methanol

DME DME (DiMetylEter

DiMetylEter)

Hydrogen Black liquor Black liquor Heavy oils Heavy oils GASIFICATION CO2 Chemicals SNG

• 11/19/2010

11

In Focus in this Presentation Syngas Syngas (CO+H2) (CO+H2)

Natural Gas Natural Gas

Coal Coal Biomass Biomass

Syntetic Diesel (FTD)

Methanol

DME DME (DiMetylEter

DiMetylEter)

Hydrogen Black liquor Black liquor Heavy oils Heavy oils GASIFICATION CO2 Chemicals SNG

• 11/19/2010

12

Pressurized, O2-blown Gasification – General Scheme

Air separation

Power Oxygen

Rawgas

Synthesis gas

Gas cooling

Gasi- fication Steam Feedstock Slag product

Gas Purification

Sulphur Management

Synthesis and Distillation

Fuels/Chem. Power CO2 Sulphur

• Production Efficiency

“Well to Wheel” Production Efficiency “Well to Wheel”

• Well to Wheel CO2 emissions and total energy

consumption for some different path ways

100 200 300 400 100 200 300 400 500 600

Total energy consumption (MJ / 100 km) Total emission of greenhouse gases (g CO2 eqv / km)

14

Source: EUCAR/CONCAWE/JRC Gasoline & diesel Fuels fron coal, CtL DME from Black liquor US corn-based ethanol

Conventional gasoline Conventional diesel Biodiesel: Glycerin as chemical Biodiesel: Glycerin as animal feed Syndiesel: Coal Syndiesel: Natural gas Syndiesel: Biomass Syndiesel: Black liquor DME: Coal DME: Natural gas DME: Biomass DME: Black liquor EtOH: Wheat, straw CHP, DDGS as AF EtOH: Sugar cane (Brazil) EtOH: Wheat, straw CHP, DDGS fuel EtOH: Cellulose EtOH: Wheat straw EtOH: Wheat, coal CHP, DDGS as AF EtOH: Wheat, coal CHP, DDGS fuel EtOH: Wheat, NG GT+CHP, DDGS AF EtOH: Wheat NG GT+CHP, DDGS fuel Biogas: Municipal waste Biogas: Manure

Cellulosic Ethanol

• Best-in-class Well-to-Wheel GHG and

energy efficiency

Fuels 2010

• 200
• 100

100 200 300 400 100 200 300 400 500 600 Total WTW energy (MJ / 100 km) W T W G H G e m iss io n s (g C O 2 e q v / k m )

Conventional gasoline Conventional diesel RME: Gly as chemical RME: Gly as animal feed Syn-diesel: CTL Syn-diesel: GTL Syn-diesel: Farmed wood Syn -diesel: Waste wood, Black liqour DME: CTL DME: GTL DME: Farmed wood DME: Waste wood, Black liqour EtOH: Wheat, Straw CHP, DDGS as AF EtOH: Sugar cane (Brazil) EtOH: Wheat, Straw CHP, DDGS as fuel EtOH: Farmed wood EtOH: Wheat straw EtOH, Wheat, Lignite CHP, DDGS as AF EtOH, Wheat, Lignite CHP, DDGS as fuel EtOH, Wheat, NG GT+CHP, DDGS as AF EtOH, Wheat, NG GT+CHP, DDGS as fuel Biogas, municipal waste Biogas, liquid manure Biogas, dry manure

CTL GTL- DME GTL- Syndiesel

• Biogas, liquid

manure

• Gasoline

and diesel

Source: WtW study Eucar/Concawe/JRC 2005, 2010 Vehicles (basis for EU RED/FQD default values)

• What Volumes and

timeframes? (fossil) What Volumes and timeframes? (fossil)

• 11/19/2010

17

The Route via Gasification and Syngas to Automotive Fuels Syngas Syngas (CO+H2) (CO+H2)

Natural Gas Natural Gas

Coal Coal Biomass Biomass

Syntetic Diesel (FTD)

Methanol

DME DME (DiMetylEter

DiMetylEter)

Hydrogen Black liquor Black liquor Heavy oils Heavy oils GASIFICATION CO2 Chemicals SNG

• From: Syngas Refiner Report, 19 October

2009

Officials Believe Chinese Methanol Blending Standards Could be Promulgated Next Year …………….The methanol blending regulations were issued in April and the M85 standard - 85% methanol, 15% gasoline - came out this summer and goes into effect before the end of the year. The next big step will be M15 - 15% methanol, 85% gasoline. Existing engines do not have to be modified, and methanol can be used in vehicles today. “The best information that we have, and it’s not official, is that the standard will be promulgated next year,” he claimed. “China consumes over 60 million tons of gasoline per year, so if they go ahead and put the M15 and M85 into effect, I think that’ll have a significant impact on the methanol marketing going forward. Obviously as the economy picks up, there will be other downstream demands for methanol in China.”

……………..

China Leading Global Methanol Industry

(Source: Methaol Institute)

• World production 2010 about

45 million tons

• China world’s largest

methanol producer and consumer.

• China over 120 methanol

plants, many small and inefficient.

• Curtailing natural gas-based

production.

• Coal-based production

accounts for 85% of growth.

Year Tons Gallons

2004 6,000,000 2 Billion 2007 15,000,000 5 Billion 2009 25,000,000 8.3 Billion 2012 37,000,000 12.3 Billion

Source: MMSA

• PRINCIPLE: Net CO2 emission from GTL and BTL if

CCS is applied. Case DME

100 200 300 400 100 200 300 400 500 600

Total energy consumption (MJ / 100 km) Total emission of greenhouse gases (g CO2 eqv / km)

20

Source: EUCAR/CONCAWE/JRC NG to DME DME from Black liquor

Conventional gasoline Conventional diesel Biodiesel: Glycerin as chemical Biodiesel: Glycerin as animal feed Syndiesel: Coal Syndiesel: Natural gas Syndiesel: Biomass Syndiesel: Black liquor DME: Coal DME: Natural gas DME: Biomass DME: Black liquor EtOH: Wheat, straw CHP, DDGS as AF EtOH: Sugar cane (Brazil) EtOH: Wheat, straw CHP, DDGS fuel EtOH: Cellulose EtOH: Wheat straw EtOH: Wheat, coal CHP, DDGS as AF EtOH: Wheat, coal CHP, DDGS fuel EtOH: Wheat, NG GT+CHP, DDGS AF EtOH: Wheat NG GT+CHP, DDGS fuel Biogas: Municipal waste Biogas: Manure

Gasoline & diesel

• Current trend of NYMAX NG Price

21

4 USD / MMBtu = 13.6 USD/MWh ~0.011 € / kWh

• Some comments to MeOH and DME

production costs

• - With energy conversion efficiency NG to MeOH of >

70%, NG cost in methanol is less than 0.016 € / kWh when NG costs 4 USD/ MMBtu.

• ”Stranded gas” as well as gas from many large gas

fields in the world can be contracted at prices around 2 USD / MMBtu or lower, lowering the MeOH production cost even further.

• Therefore, the following can be concluded regarding

production costs:

• DME and MeOH can be produced for about 0.02-

0.03 € / kWh. Today’s price as chemical commodity is 0.035 – 0.04 € / kWh.

22

• What Volumes and

timeframes? (renewable) What Volumes and timeframes? (renewable)

• Concept for development of the BioDME

market for heavy duty vehicles (short / medium term)

24

1000 2000 3000 The BioDME Project The Domsjö Project 2014 3Q 2010 Methanol

• for low blend in gasoline
• for RME/MTBE
• for chemical use

DME

Number of heavy duty vehicles running

• n DME

Time 10

Comment: The Domsjö plant is planned to produce both products to enable DME production to follow DME market build up.

• Concept for development of the BioDME

market for heavy duty vehicles (medium / long term)

25

4000 8000 12000 DME

Number of heavy duty vehicles running

• n DME

Time 10 2014 2010 16000

The Domsjö Project

2018 2022

? ?

BioDME Project

MeOH

• Concept for development of the BioDME

market for heavy duty vehicles (medium / long term)

26

4000 8000 12000 DME

Number of heavy duty vehicles running

• n DME

Time 10 2014 2010 16000 2018 2022

? ?

MeOH

Production: 680 000 t DME/y 30 ton dieseleqv / truck, year Corresponds to apr. 15 000 HD trucks Corresponds to that all ongoing green syngas based projects in EU would generate DME

Calculation exemple

• 11/19/2010

Biomass Potential Sweden, TWh/år

(Presented at “Kommissionen mot oljeberoende” Jan 2006 )

10 20 30 40 50 60 70 80 2004 2014 2024 2034 2044

TWh

2050 73 TWh

This information generated

• ut of some 8 different sources

such as SLU, Skogsindustrierna, Skogstaxeringen etc.

• 11/19/2010

28

Production Potential for DME/methanol

• Gasification route

10 20 30 40 50 60 70 80 2004 2014 2024 2034 2044

TWh DME/Metanol, BLGMF DME/Metanol, Fristående fabriker DME/Metanol, total produktion

2050: 48 TWh 2020: 10 TWh

• Market Build-Up

Market Build-Up

• A way to meet the demand from a growing BioDME

Fuel Market (see illustration on next figure)

1.

The producer of BioDME need a second outlet for his plant to secure cash flow from the new plant while the BioDME market is under development. A marginal extra investment can be added to enable combined production of both BioDME and BioMethanol.

2.

To always meet demand from the market there must be a second source of DME, generated from fossil methanol.

3.

Methanol can be shipped from ports like Rotterdam to a suitable location(s) e.g. along the Swedish west/east coast(s) and there be dehydrated to DME after which it is shipped to smaller terminals.

4.

DME has a second usages namely as substitute for LPG up to a level of 20%.

5.

Methanex (the world largest producer of methanol) is planning a large DME production in Egypt adjacent to a new natural gas based methanol plant. They have also positively responded to a concept as described in item 3 above.

30

• A way to meet the demand from a growing BioDME

Fuel Market (see also previous figure)

BioDME

BioMeOH

Fossil DME Fossil MeOH

Alternate usage

• f renewable

MeOH Alternate usage in the world MeOH market Blend into LPG Dual Fuel Plants Renewable Feedstock Fossil Feedstock

DME Fuel

1 1 2 3 3 4