Coal-to-Liquid: a possible solution for the post-oil era?
energy.sia-conseil.com
Today, liquefied coal or CTL (Coal-to-Liquid) causes a new wave of interest.
Its liquefaction (gasoline, gas oil, domestic fuel) becomes interesting again, since it allows the production of a ton of oil equivalent around $45.
The economical and social development of actual countries, while involving a rise in the standards of living, implies an increase in energy consumption in particular of fossil origin.
In order to meet such an increasing need of energy, CTL could become the most economic solution.
The liquefaction of coal: principles and technologies
The liquefaction of oil, process transforming coal from a solid state into a liquid fuel, goes back to the beginning of the 20th century. However, low prices and abundance of crude oil and natural gas reserves marginalized its application. Only some countries, among which Germany during the Second World War and South Africa since the Sixties, have massively liquefied coal.
Theoretically, hydrogenating coal is the only requirement to get oil products. Two processes coming from Germany exist: addition of hydrogen can either be made directly on coal (direct liquefaction) or on the gases issued from gasification (indirect liquefaction). The products obtained thanks to the first method are of very great quality - in particular the diesel from which sulfur and aromatic compounds are eliminated - and energy efficiency is nearly equal to 50%, against more than 60% for the indirect but with a much lower quality.
An alternative to petrol? At which cost?
Today, 96% of the energy consumed in transport comes from oil products. Its substitution by different alternative energies is justified by the reduction of the dependency with respect to oil.
Until 2003, with a price of the barrel of crude oil around $25, the CTL at $45 did not present any economical advantage. Today, coal is becoming the best option in order to guarantee the energy security of a country and to get away from high oil prices.
Being the two biggest oil consumers in the word, the United States and China are particularly vulnerable to the big rises of the crude and invest thus massively in this technology.
Various liquefaction projects are ongoing
* With oil prices at historic highs, Pike County, where coal trucks rumble at all hours and miners blast away at black seams, is moving ahead with a controversial project to turn its vast coal reserves into barrels of liquid fuel. Indeed, the county plans to develop a $4 billion coal-to-liquid plant that would produce 50,000 barrels of liquid coal a day. Pike County joins a growing number of communities across the United States considering such facilities (Alaska, Montana, Indiana, Pennsylvania, Ohio, West Virginia, Louisiana, Kentucky, Whitley, McCracken). Such efforts could help wean the nation from its reliance on foreign oil for transportation. The technology would strengthen national security and be cheaper than petroleum.
* Oil imports have been increased in recent years to fuel China’s booming economy, spurring the nation to look for technologies that can turn some of its coal reserves, one of the world’s largest, into fuel and other chemicals. In 2008, China’s largest coal company Shenhua Group produces China’s first barrel of liquid fuel from coal, using direct coal liquefaction technology. With a budget of 12.3 billion Yuan and an annual production capacity of 5 million tons of oil, the project will be completed in two stages.
* The sustained high oil prices and increasing oil imports, coupled with the country’s rising demand for transportation fuels, has led to a perception that India’s oil security is being threatened. India is thus actively pushing its companies to convert coal to liquid fuels (CTL). Initially, Oil India Limited (OIL) did some basic research on direct coal liquefaction, and they have now planned for a $2.5 billion project based on direct liquefaction to produce about 2 million barrels of liquid fuel.
* Australia will promote development of an industry for the conversion of coal into cleaner transport fuels to improve security of supply. Australia’s trade deficit in oil and refined fuels is set to expand within the next decade. Monash Energy, a venture between Anglo American Plc and Royal Dutch Shell Plc, is considering building a plant in Victoria State to turn coal into motor fuel, while Linc Energy Ltd. is set to open a plant in Queensland that will produce 5 barrels a day of ultra-clean diesel from coal.
Over the last 20 years, the price of coal remained stable ($35 to $50 / ton) contrary to the price of oil which passed from $10 to more than $120 by barrel. In a world where everything depends on economy and where energy is essential for it, this aspect is far to be negligible and still promises great days for coal. Worldwide liquid coal production should rise from less than 200.000 barrels a day today to reach 1.800.000 Barrels daily in 2030.
Sources:
kentucky.com
news.xinhuanet.com
indiatogether.org
bloomberg.com
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SRI Consulting Publishes New Energy Report: Fuels of the Future: Technology Intelligence for Coal to Liquids Strategies
Escalating Petroleum-Based Fuel Prices Rekindle Need for Liquid Alternatives
Last update: 1:12 p.m. EDT July 29, 2008
marketwatch.com
MENLO PARK, Calif., Jul 29, 2008 (BUSINESS WIRE) -- Coal has been used for energy for centuries and today fuels about forty percent of electrical production worldwide. Global demand for energy continues to increase with oil demand alone expected to increase forty to fifty percent by 2030. At the same time oil prices continue to rise and supplies are diminishing. Energy strategies are particularly critical for countries like the US, China and India with limited oil reserves and daunting demand.
Coal is a non-renewable fossil fuel that is relatively abundant with reserves estimated at about nine hundred and ninety billion metric tons. Also, coal is widely distributed and the infrastructure surrounding its use is well known. In this report, SRI Consulting (SRIC) examines the technology and economics of using coal to extend liquid fuel reserves. For coal to be a valuable part of an energy strategy, processes that now produce about sixty-five percent waste need to be more efficient, cost-effective, and cleaner. Coal processes are the largest source of CO2 emissions, which limits adoption in times of increasing global regulation of greenhouse gases including CO2.
The new Technology Intelligence for Coal to Liquids (CTL) Strategies is the second Fuels of the Future report following Gas to Liquid Strategies published by SRIC in 2005. These special reports provide economic and technical information on oil alternatives, which is especially useful for energy program managers, scientists and policymakers involved in energy R&D.
The CTL report covers multiple process technologies to convert solid coal to liquid fuel that are in development and use around the world. Coal gasification, which is the initial and common step among CTL technologies, is covered in detail. Both direct and indirect methods for liquefaction are described with focus on indirect methods that use catalysts that are capable of producing higher quality products. The utility of new or co-production methods for other coal derived products, such as methanol for gas spark engines and dimethyl ether for diesel engines, is also covered. A full chapter is devoted to a robust economic analysis of a plant for naphtha and diesel production using a generic integrated coal gasification and indirect liquefaction through the Fischer-Tropsch (F-T) synthesis reaction. The analysis contrasts the use of the two top catalysts, iron and cobalt. The report includes population based integrated and combination processes that combine CTL with other energy sources such as biomass.
Author Ron Smith, Senior Consultant at SRIC, commented, "The Fischer-Tropsch reaction is a critical component of improving both GTL and CTL process efficiency. Catalysts are the principal reactant elements that can improve the process. Here we analyzed different reaction conditions, kinetics, and feed stocks involved in CTL conversion. We also included process descriptions of industry leaders such as Sasol, Rentech, ConocoPhillips, and ExxonMobil." Mr. Smith noted, "Today, coal investments carry a high risk premium due to the uncertainty of how governments will handle CO2 emissions going forward. Including significant CO2 capture and sequestration requirements needed by the CTL process, will be expensive. Investors need to see that coal utilization is still cost effective in processes that comply with increasing emission regulations."
Russell Heinen, Vice President at SRIC, commented, "Energy strategies that can bolster liquid fuels are particularly critical for countries with limited oil reserves. The US alone depends on foreign sources for sixty percent of its energy needs." This new report contains the latest information on CTL technologies, capital and production costs and regional environmental considerations. Mr. Heinen added, "In order to increase the adoption of CTL technologies, there must be a serious investment in pilot plants to demonstrate feasibility and good economic returns."
The Fuels of the Future: Technology Intelligence for Coal to Liquids Strategies report is a unique resource due to its comprehensive and balanced coverage of the technical, political and environmental issues surrounding the use of CTL-based processes. The over four hundred page report is divided into eight sections and has four informational appendices:
-- Introduction and Background of Coal
-- Report Summary
-- Coal to Liquid Strategies
-- Industry Status
-- Technology Review
-- Integrated Gasification and Fischer-Tropsch Economics
-- Parameters and Features of CTL Catalysts
-- Overviews of Recent Work on Catalysts for CTL
-- Appendices
-- Catalyst Patent Summaries
-- Design and Cost Basis
-- Cited References
-- Patent References by Company
For additional information about Fuels of the Future: Technology Intelligence for Coal to Liquids Strategies, please contact Russell Heinen at rheinen@sriconsulting.com or +1-281-203-6285, or visit the website at www.sriconsulting.com/SR.
About SRI Consulting (SRIC)
SRI Consulting is the world's leading business research service for the global chemical industry. Publishing for almost 60 years, SRI Consulting is the preeminent source for in-depth business and process analysis. This report was developed by SRI Consulting's Fuels of the Future Special Reports group, which is committed to providing valuable information about long-term energy strategies. SRI Consulting's headquarters are located in Menlo Park, California with offices in The Woodlands, Texas; Zurich, Switzerland; Tokyo, Japan; and Beijing, China. SRI Consulting is a division of Access Intelligence, LLC. Additional information is available at www.sriconsulting.com.
SRI Consulting (SRIC) is a trade name and a registered trademark of SRI International, used under license.
SOURCE: SRI Consulting
SRI Consulting
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