Coal Gasification Related Industries

and
Economic & Environmental
Sustainability Analysis

Vice CTO: Mr. Pi Jinlin

Wuhuan Engineering Co., Ltd.
30th Nov, 2018
 1 Background of MCGI

2 Application of MCG Technologies

3 3E Analysis of MCGI

4 Tips & Suggestions

Notes: MCGI means Modern Coal Gasification related Industries

3E means Environment, Economy & Energy Efficiency
 1. Background of MCGI

1.1 Main Commercialized Production Chains of MCGI

Ammonia Urea/Melamine/AN/
Route Other fertilizers
• Olefin/DME
Methanol • Formaldehyde/Acetic Acid
Route • MTBE/ DMMn
• Medicine/Solvents
Coal Gasification Purification EG Polyesters/Surfactants
Route /Solvents

Liquif.
Gasoline/Diesel/LPG
Route
Fuel Gas
Route Town gas/SNG/IGCC
1. Background of MCGI

1.2 MCGI plays an important role in China

(1) Ammonia/Urea
 China NH3 capacity is ~70 MTPA, ~30% of the world
 China Urea capacity is ~82 MTPA, ~40% of the world
 ~76% of China NH3/Urea is produced from coal

(2) Methanol
 China capacity is ~80 MTPA, ~60% of the world
 ~70% of China methanol is produced from coal
1. Background of MCGI

(3) EG
 China capacity is ~8.1mt/a, ~25% of the world
 Capacity of coal-based EG is ~2.45 mt/a, ~30% of China total
 3.15 MTPA Coal-based EG projects are under construction

(4) Direct Coal Liquefaction

 China’s capacity is ~1 mt/a; it has largest and the only one commercial
plant in the world in operation
 Direct Coal Liquefaction projects with a total capacity of 2 mt/a are under
construction
1. Background of MCGI

(5) Indirect Coal Liquefaction

 China’s capacity is ~6 mt/a
 Projects with a total capacity of 20mt/a are planned to be constructed

(6) MTO/MTP
 China’s capacity of olefin is ~50mt/a
 Capacity of coal-based olefin is ~13mt/a, ~25% of China’s total
 Coal-based olefin projects with a total capacity of ~20mt/a are under
construction

(7) SNG
 China’s capacity is ~5 billion Nm3/a.
 SNG projects with a total capacity of 70 billion Nm3/a are under
construction
1. Background of MCGI

1.3 MCGI is a valuable sector in China

 Drivers of coal gasification related industries
(1) Higher Self-Reliance in Energy Supply
(2) Lower Risk of Oil and NG Supply from Abroad
(3) Less Pressure of CO2 Emission
 China is the only country in the world, where large-scale coal-
gasification-related industries play a significant role in economy
development.
 China’s coal-gasification-related plants have the world’s largest single-
train capacity, and advanced and reliable performance.
1. Background of MCGI

(1) Capacity of Ammonia/Urea

 The largest single-train ammonia capacity: ~700 kt/a
Urea: ~1.2mt/a.
(2) Capacity of Methanol
 The largest single-train methanol capacity: ~2mt/a
(3) Capacity of EG
 The largest single-train EG capacity: ~100 kt/a
(4) Direct Coal Liquefaction : ~1 mt/a
(5) Indirect Coal Liquefaction: ~ 1 mt/a
(6) MTO: ~833 kt/a
(7) SNG: ~2 billion Nm3/a
1. Background of MCGI

 We are very glad to share with you our

experience on how to develop Coal Chemical
projects that suit local conditions and apply
local feeds.
2. Application of MCG Technologies

2.1 Modern Coal Gasification Technologies

Lurgi
Fixed Bed Gasf. BGL
U.G.I. GE-Texaco
E-Gas
Coal Slurry
Multi-Nozzle
Gasifi
Entr. Flow Gasf.
-cation
Shell
Dry Pulverised Coal
Prenflo
HTW GSP
KRW HT-L
Fluid Gasf.
U-gas
TRIG
SCCR
2. Application of MCG Technologies

2.2 Features of Advanced MCG

 Inherent safety
 Environment-friendly
 High energy efficiency
 High feed flexibility
 High single-train capacity
 High reliability and easy maintenance
2. Application of MCG Technologies

2.3 Principles in Coal Gasification Technology Selection

 Matching coal properties
 Matching final products
 Advanced technology
• Inherent safety
• Environment-friendly
• High energy efficiency
 Reliable and profitable
• High reliability and commercial proven
• High single-train capacity
• Cost effective
2. Application of MCG Technologies

 The selection of coal gasification process is

crucial to the success of a project.
2. Application of MCG Technologies

2.4 Introduction of Main Coal Gasification Technologies

 Entrained flow gasification technology (the dominating
technology in the market)
2. Application of MCG Technologies

 Reference List
Feedstock scale
Number of Syngas
Items for Single Remarks
Gasifiers x106 Nm3/d
Gasifier
<1,000 t/d 5
Multi-Nozzle Gasification Total feedstock amount is
1,000~2,000 t/d 76 -
(Coal Slurry Entr. Flow Gasification) 110,000 t/d
~3,000 t/d 12
<1,000 t/d 8
SHELL Gasification
Including 2 trains of SHELL
(Dry Pulverised Coal side fired Entr. 1,000~3,000 t/d 19 113.5
bottom quench gasifiers
Flow Gasfication) >3,000 t/d 6
GSP Gasification 200 MW (1,000 t/d) 2
(Dry Pulverised Coal top fired Entr. 98 -
Flow Gasfication) 500 MW(2,000 t/d) 31
1,000 t/d 27
HT-L Gasification
(Dry Pulverised Coal top fired Entr. 2,000 t/d 61 - -
Flow Gasification)
3,000 t/d 1
2. Application of MCG Technologies

 Schematic flow diagram of Multi-Nozzle gasification

2. Application of MCG Technologies

 Schematic flow diagram of shell gasification with syngas cooler

2. Application of MCG Technologies

 Schematic flow diagram of Siemens GSP gasification

3. Analysis of 3E on MCGI

3.1 Mandatory Pollutant Limits in China

 Gaseous Emission, the highest emission standards in the world

max. allowed vent max. allowed vent concentration,

NO. Pollutant Stack, m
rate, kg/h mg/Nm3
1 Particles - - 10

2 SO2 - - 50

3 NOx - - 100

4 H2S 80 9.3 -
3. Analysis of 3E on MCGI

 Effluents: The highest discharge standards in the world, and

practiced “Zero discharge” principle in NW China.
No. Pollutant Limitation, mg/L
1 PH 6.0-9.0
2 TSS 50
3 CODCr 50
4 BOD5 10
5 NH3-N 5.0
6 total N 30
7 total P 0.5
8 total organic carbon 15
9 oil 3.0
10 total cyanide 0.3
 Waste Solids: slag, flyash and filter cake are recycled as
construction materials and catalysts are recycled by vendors.
 3. Analysis of 3E on MCGI

3.2 Mandatory Energy Efficiency Requirements in China

Coal Direct Coal Indirect
MTO SNG
Liquefaction Liquefaction
Items
Advanced Advanced Advanced Advanced
Baseline Baseline Baseline Baseline
Value Value Value Value

Energy consumption
≤1.9 ≤1.6 ≤2.2 ≤1.8 ≤4.0 ≤3.0 ≤1.4 ≤1.3
(t coal eq/t or /kNm3)

Coal consumption
≤3.5 ≤3.0 ≤3.3 ≤2.8 ≤5.1 ≤4.6 ≤2.0 ≤1.6
(t coal eq/t or /kNm3)
Water Consumption
≤7.5 ≤6.0 ≤7.5 ≤6.0 ≤16.0 ≤12.0 ≤6.0 ≤5.5
(t /t or /kNm3)
Energy Efficiency
≥55.0 ≥57.0 ≥42.0 ≥44.0 - - ≥51.0 ≥57.0
(%)
 3. Analysis of 3E on MCGI

3.3 Typical Economic Indexes of lignite-

lignite-based NH3/Ur. Project

O2/Steam CO2

Lignite
Pre Gasifi Purifi NH3 Urea Urea
-drying -cation -cation Synth. Synth.

Gasification and purification NH3 Synth. and Urea Synth.

Typical Simplified Process Scheme

3. Analysis of 3E on MCGI

No. Items Unit Data Price

1 Main Product
1.1 Urea Kt/a 1,047 241USD/t
Immediate
1.2 Ammonia Kt/a 600
product
2 Main feedstock
Feedstock coal (lignite, LHV ~ 3,000
2.1 Kt/a 1,202 15 USD/t
kcal /kg, as received)
Fuel coal (lignite, LHV ~ 3,000
2.2 Kt/a 1,297 15 USD/t
kcal/kg, as received)
2.3 Fresh water Kt/a 12,200 1.5 USD/t
2.4 Electricity kwh/a Balance
3. Analysis of 3E on MCGI

No. Items Unit Data

3 Main financial evaluation indicators
3.1 Construction investment MM USD 847
3.2 Annual average sales income MM USD 249
3.3 FIRR before income tax ％ 13.88
3.4 FIRR after income tax ％ 11.89

Investment recovery period before income tax

3.5 years 8.72
(including construction period)

3.6 The cost of urea USD/t 147

Note:
1. Annual operating time 8,000 hrs.
2. Construction time: 3 years, Running time: 17 years
 3. Analysis of 3E on MCGI

3.4 Typical Economic Indexes of Lignite-

Lignite-based Methanol Project

O2/Steam

Lignite
Pre Gasifi Purifi Methanol Methanol MOH
-drying -cation -cation Synth. Distill.

Gasification and purification Methanol Processing

Typical Simplified Process Scheme

3. Analysis of 3E on MCGI

No. Items Unit Data Price

1 Main Product
1.1 Methanol Kt/a 600 346USD/t

2 Main feedstock
Feedstock coal (lignite, LHV ~ 3,000
2.1 Kt/a 1,271.7 15USD/t
kcal/kg, as received)
Fuel coal (lignite, LHV ~ 3,000
2.2 Kt/a 792 15USD/t
kcal/kg, as received)
2.3 Fresh water Kt/a 9,100 1.5USD/t
2.4 Electricity kwh/a Balance
3. Analysis of 3E on MCGI

No. Items Unit Data

3 Main financial evaluation indicators
3.1 Construction investment MM USD 712
3.2 Annual average sales income MM USD 205
3.3 FIRR before income tax ％ 13.67
3.4 FIRR after income tax ％ 11.70

Investment recovery period before income tax

3.5 years 8.8
(including construction period)

3.6 The cost of liquid methanol USD/t 212

Note:
1. Annual operating time 8,000 hrs.
2. Construction time: 3 years, Running time: 17 years
 3. Analysis of 3E on MCGI

3.5 Typical Economic Indexes of Lignite-

Lignite-based EG Project

O2/Steam

Lignite
Pre Gasifi Purifi PSA EG EG
-drying -cation -cation CO Synthesis
Cryogen.
Sep.
Gasification and Purification Gas Sep. and EG Synth.

Typical Simplified Process Scheme

3. Analysis of 3E on MCGI

No. Items Unit Data Price

1 Product
1.1 EG Kt/a 400 902 USD/t

2 Main feedstock
Feedstock coal (lignite, LHV ~
2.1 Kt/a 1,128 15 USD/t
3,000 kcal/kg, as received)
Fuel coal (lignite, LHV ~ 3,000
2.2 Kt/a 1,344 15 USD/t
kcal/kg, as received)
2.3 Fresh water Kt/a 12,848 1.5 USD/t
2.4 Electricity kwh/a Balance
3. Analysis of 3E on MCGI

No. Items Unit Data

3 Main financial evaluation indicators
3.1 Construction investment MM USD 1,011
3.2 Annual average sales income MM USD 357
3.3 FIRR before income tax ％ 19.32
3.4 FIRR after income tax ％ 16.61
Investment recovery period before income tax
3.5 years 7.2
(including construction period)
3.6 The cost of liquid EG USD/t 426

Note:
1. Annual operating time 8,000 hrs.
2. Construction time: 3 years, Running time: 17 years
3. Analysis of 3E on MCGI

3.6 Economic competitiveness against NG

Typical Economic Data of Urea Project in Indonesia
Feed and Fuel Coal Price FIRR before Income tax Eq. Price of NG Based
No.
USD/t % Chemicals USD/MM Btu
1 15 13.88 3.5
2 20 12.63 4.5
3 30 9.95 5.4
Note:
1. Annual operating time 8,000 hrs, Annual urea capacity 1,047 Kt /a, annual
ammonia (immediate product) capacity 600 Kt/a.
2. Construction time: 3 years, Running time: 17 years.
3. Assumed feed and fuel Coal are lignite coal, LHV ~ 3,000 kcal/kg as received.
4. Assumed urea price is 241 USD/t.
5. The data are preliminary at feasibility stage and estimated based on engineering
experience in China and Indonesia.
4. Tips & Suggestions

-- A good report of coal properties and coal reserve

-- A good report of final product scheme
-- A good FSR covering
-- Construction conditions and site information (site location,
material supply, utility and infrastructures, transportation, climate)
-- Market survey and study
-- Technical sketch and utility/off-site requirements
-- High level construction schedule
-- Estimate
-- Financial analysis
-- Conclusion
4. Tips & Suggestions

-- A good FEED with perfect project definition:

-- Basic engineering design
-- Project management strategy
-- Precise investment estimate
-- Award EPC contract to a professional and experienced EPC
contractor