By: Ishan Shah & Aman Dhanani d PetrorechIntroduction Coal to liquid (CTL) or Coal Liquefaction is the process of producing alternate fuels (synthetic crude oil) from coal. Due to the expensive nature of the pracess it was not economically viable when oil price was low, but after oil-shock in 1970’s many countries have taken active interest in this particular process. CTL is best suited to the countries who have vast reserves of coal but rely heavily on other countries for oil imports (like India, China ,US). Fuels like: 1. F-T (Fischer-Tropsch) Diesel, 2. Cleaner cooking fuels such as DME (Di-methy! Ether)Why Coal To Liquid? As per the BP statistical review 2012 , coal’s market share was 30.1% in 2011 and world primary energy consumption grew by2.5%. Unfortunately it oil and gas. reserves are depleting. Moreover majority of oil reserves are in politically unstable countries. In addition growing global competition for petroleum as India and China continue their economic expansion. 40% 20% 10% 0% 1 Shares of world primary energy Oil en. ae a Gas Hydro Mucioer Flenewables 970 1990 2010 2030 Source: BP Energy Outlook 2030, January 2011.Why Coal To Liquid? Dution of p ennatural pj 11 re Distibution of proven s in 2011 bution of proven oil vers in 2011 coa Source: Individual Images from BP Statistical Review of World Energy June 2012 and Survey of Energy Resources, World Energy CouncilIncrease in Oil Import Source: http://nguoilotgach. blogspot. in/201 1/02/chinas-maritime-ambitions-implicaticns.htmlVISION Economic Fuel. Low GHG emissions. Zero local pollutants Consumer acceptanceIn a NUTSHELL: Oil Peaking Production declining in 54 of the 65 most important oil- producing countrie: Energy Security 70% of world oil & gas supplies located in politically unstable countries Oil Demand Be TT 9 Ee 33% increase in fs More stringent world demand 5 2 over next 25 ee] years emissions to near zeroIn a NUTSHELL: Oil Peaking Production declining in 54 of the 65 most important oil- producing countrie: Energy Security 70% of world oil & gas supplies located in politically unstable countries Oil Demand Be TT 9 Ee 33% increase in fs More stringent world demand 5 2 over next 25 ee] years emissions to near zeroUnder What Conditions is CTL Viable? Oil remains at above $45 to $50/barrel (2005) Coal prices at less than $20 to $25/ton Reasonable cost of capital. Viable processes and solid business case convincing to the investment community Short/streamlined permitting processCoal To Liquid CTL process takes place by these methods: Direct liquefaction Indirect liquefaction Hybrid ConceptDirect Coal Liquefaction Also called Bergius process, developed by Friedrich Bergius of Germany in 1913. In this process, dry coal is mixed with heavy oil recycled from the process. Catalyst is typically added to the mixture. The reaction occurs at between 400 °C(752 °F) to 500 °C (932 °F) and 20 to 70 MPa hydrogen pressure. The reaction can be summarized as follows: nC+(n+1)H, > CHa ny2Direct Coal Liquefaction H,S, NH, CO, Methane & Ethane LPG Makeup ¥ Recyc Heavy Vacuum Gas. oi Ash Reject Source.: Presentation by Daniel C. Cicero at Intemational Energy Agency Workshop-on Coal-to-Liquids, 2 November 2006Indirect Coal Liquefaction ‘Simplified’ CTL/FT Process for Diesel Fuel Coal Electricity Tail Gas t ST Power Process Recovery Generation Wi 1c Liquid Fuels ocoach ing Mid-Distillate Diesel Source: Adapted fram ASERTTI 2006 Winter Meeting report, February 6 2006, Washington, DCFT Diesel — an ultra clean fuel *Cetane No. >70 j *Zero Sulfur *No aromatics FT Diose! Source: Adapted from prese Theo LK. 22, Headwaters Te Innovation Group, Nov 11/04, Ws DecHybrid Coal Liquefaction Hybrid Concept Integrating the Direct and Indirect Liquefaction Processes Direct Liquefaction Recycle Solvent Catalyst = t [ 0 Slurry Produd =e Gasoline Cool Prop Mining -Ptiquetaction Separation Upgroding ee Blending he Jet Fuel & Refining =p Diese! Indirect Liquefaction a Air Gosticaton F Product *TBeporation| | Synthesis: * Recovery t ‘Oxygen. Steam Depleted Air & Source:Adapted from US. Department of EnergyOf fice of Fossil Energy Report 2008Coal To Liquid : Environmental Concerns A major environmental concern Carbon footprint of CTL plant The plant-level CO, in a CTL process can be offset using carbon capture and storage(CCS) technology, in which the captured CO, is compressed and transported toa deep geological formation, where it is sequestered.a with and without CCS (all casts in com uation a! te techne-ecoaomic liquids o-production Parameter Liuis-only Co-production NoCts With CCS. No (CS With CCS cosa) 290 MW, Source: Mantripregada & Rubin_EvalofCTL_Energy Policy 2011SHENHUA Project Shenhua Group took the lead in the process in August 2004. The project is designed to have an annual capacity of 5 million tons. The first phase, designed to produce 3.2 million tons of oil products, is scheduled for production by 2007. The second phase is scheduled for production by 2010, witha designed annual production capacity of 2.8 million tons.Indian Scenario Oil India Limited (OIL) carried out in-depth studies regarding conversion of various shales and coals from North-East India into liquid fuel and found that the high sulfur, low ash bituminous coal of India is quite amenable for liquefaction. Oil India Limited (OIL) had embarked on coal liquefaction project based on HRI’s Coal oil co processing technology and setup a 25Kg/day pilot-plant in Duliajan, Assam.Coal Liquefaction Pilot Plant Adah COAL LIQUEFACTION PILOT PLANT ‘Sunde Adapted front aichiamnened Sebi tud din’s Chal BouetacdorBarriers to Coal-To-Liquids Technical Integrated operations of advanced CTL technologies have never been demonstrated Lack of robust coal transportation infrastructure. Economic “Uncertainties about future world oil production High capital and operations costs Energy price volatility “Factors such as labor, equipment, product transportation, environmental risk, feedstock issues and others. Various assumptions such as oil price assumptions, capital cost assumptions, labor assumptions, equipment assumptions, siting and permitting assumptions, transportation assumptions and others Environmental *CO2 and other pollutant emissions “Expansion of coal production and requisite infrastructure (railroads, railcars, etc.) will lead to more pollution.Coal To Liquid Proposed or Announced Projects Rentech partnerships: 57,000 bpd plant in Kentucky, 12,000 bpd in Medicine Bow WY (Minemouth), 10,000 bpd plant in Mississippi, and a project in Colorado to convert former coal- to methanol plant into Coal To Liquid plant. Pennsylvania: Consortium formed to purchase fuel and construct 10,000 bpd Coal To Liquid plant in partnership with Sasol. West Virginia: State announcement in 2005 to build Coal To Liquid plant.Coal To Liquid Proposed or Announced Projects Montana: State announcement in 2005 to build CTL plant near PRB coal fields. Kentucky: Office of Energy Policy/Division of Energy announcement in 2006 to build CTL plant. China: Multiple plants in partnership with Sasol and Headwaters. Approximate capacity of17 million bpd by 2020. Indonesia: 80,000 bpd CTL plant by 2008. India/Pakistan/Africa: Multiple plants in partnership with Sasol(elare ecole) Global Energy security is threatened due to amalgamation of different factors such as geopolitical tension, depleting reserves of crude oil (Peaking of Oil) and other factors. Coal can play a key role in this situation and has potential to resuscitate the energy reserves. Although technologies of converting coal to oil do exist innovative breakthroughs on both technological as well as environmental front is imperative.teiicla=a ao} Mantripragada & Rubin Eval of CTL Energy Policy 2011 BP Energy Outlook 2030, January 2011 BP Statistical Review of World Energy June 2012 www.e-metaventure.com www.asertti.org/ gcep.stanford.edu/ www.wyopipeline.comReferences http://www.mpowerfuels.com/projects. html! http://www.wisegeek.com/what-is-coal-liquefaction.htm http://www.covol.com/data/upFiles/moreinfo/DCL%20T echnology%20Presentation%203.31.09.pdf www.worldeoal.org/ www.nanoscienceexchange.org www.elsevier.com