INVESTMENT PROJECT

SYNGAS BY
GASIFICATION OF COAL
UNECE Investment Conference
“Attracting investment in advanced fossil fuel
technologies”
Almaty, Kazakhstan
14-15 November 2012
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Syngas and its use

•  Synthesis gas or syngas is a
gas mixture that is comprised
of carbon monoxide and
hydrogen
•  The energy density of syngas
is approximately 50% less
than that of natural gas
•  The use of syngas as a fuel is
accomplished by the
gasification of coal –
Synthetic natural gas (SNG)
•  Syngas is used as an
intermediate in the industrial
synthesis of hydrogen and
ammonia – (SG)
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Technology and its global coverage

Worldwide Gasification Capacity and Planned Growth – Cumulative by Year

Source: Worldwide Gasification database
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Project potential in Ukraine

Coal production, million tons
70,0
Prodution, million tons

61,8 64,2
60,0
50,0 53,5
40,0
30,0
20,0
10,0
0,0
2010 2011 2012
Period

Coal production

Source: Ministry of energy and coal of Ukraine

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Ukraine:
Project current status

•  July 2012 – Ministry of

energy and coal of Ukraine
signed MOU with State
Chinese Bank for providing
with credit for the amount
3,5 billion USD
•  Reorganization of “Gas
Ukraine” into “Syngas
Ukraine”
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Ukraine:
Legal and policy framework
•  Updated Energy Strategy of Ukraine until 2030
•  State program on energy efficiency 2010-2015
•  Law of Ukraine on reformation of oil and gas industry
•  Reorganization of SE “Gas Ukraine” into PJSC “Syngas-
Ukraine”
•  Changes to the Law of Ukraine on ‘State budget 2012” as to
state guarantees for projects of replacement of natural gas as
fuel with coal of local production
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SG Technological scheme

Coal, C (​𝐻↓2 𝑆+𝐶​𝑂↓2 )   Sulfur, S

​𝑂↓2                                                                                          𝐶𝑟𝑢𝑑𝑒  𝑔𝑎𝑠                                                                                                        𝑆𝐺   

Gasifi (​𝐻↓2 +​𝑁↓2 +𝐶𝑂+𝐶​𝑂↓2 +​𝐻↓2 𝑆) Refine
(​𝐻↓2 +​𝑁↓2cation
 ) ment

Steam Ash Ammonia production

Source: Ministry of energy and coal of Ukraine

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Savings from replacement

SG from SG from
Coal coal nature Gas 1100 ​
1,5 t 2300 ​ gas 2300 ​ 𝒎↑𝟑 
𝒎↑𝟑  𝒎↑𝟑 
$ 220 $ 570
Savings from replacement of natural gas SG from coal on the
example of “Severodonetskiy “AZOT” - $ 350

Annual gas saving - 521,8 million USD with production 1,64

billion ​𝑚↑3   per year
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Project economics and savings

Severodonetskiy AZOT
CAPEX - 1,2 billion USD

Source: Ministry of energy and coal of Ukraine

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Potential projects in Ukraine

•  Pilot project PJS
“Severodonetskoe
ob’edinenie “AZOT” – 1,6
billion ​𝑚↑3 
•  Pilot project PJS “Koncern
STIROL” – 1,8 billion ​𝑚↑3 
•  PJS “Odessa Port Plant” –
2,2 billion ​𝑚↑3 
•  Cherkasskiy PJS “AZOT” –
0,6 billion ​𝑚↑3 
•  PJS “Dniproazot” – 0,7
billion ​𝑚↑3 
•  PJS “Rovnoazot” – 0,5
billion ​𝑚↑3 
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SNG Technological scheme

Coal, C ( Sulfur, S
Crude gas
(​𝐻↓2   +CO
+​𝐶𝑂↓2 +​
𝐻↓2 𝑆
Gasifi Synthetic Methan (C
+𝑖𝑚𝑝𝑢𝑟𝑖𝑡
cation gas (CO+​ ation
𝑦)
𝐻↓2 )

Steam Ash CHP Population

Manufacturing capacity: 650 000 thousand

Source: Ministry of energy and coal of Ukraine

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SNG costs

Coal SNG Gas

Processing
2 – 2,5 t 1000 ​𝒎↑𝟑  1000 ​𝒎↑𝟑 

$ 177 $ 75 $ 252 $ 492

Replacing 1000 ​𝑚↑3  of natural gas: $ 240 savings
Production capacity: 650 m ​𝑚↑3 per year
Replacing natural gas annual savings: $ 156 m

Source: Ministry of energy and coal of Ukraine

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SNG plant economics

CAPEX 792 million USD

200   156   156   156   156   156   156  

100   144  
0  
-­‐100  
-­‐12  
$  million     -­‐200  
-­‐300   -­‐168  
-­‐400  
-­‐500  
-­‐324  
-­‐600   -­‐480  
-­‐700   -­‐636  

1                                  2                                      3                                4                              5                                  6  
Years  

SNG  produc4on   Economic  efficiency  

Source: Ministry of energy and coal of Ukraine

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Energy consumption

January-September January-September Growth rate,

Consumption
2011 2012 %

Natural gas (million m3) 40 776,2 37 396,2 -8,3

Coal (thousand tons) 42 576,4 45 482,6 6,8

- incl CHP 23 427,4 24 270,4 3,6

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Next steps

•  First pilot projects to be launched in 2013

•  Large amount of implementation opportunities as fuel in
chemical industry and alternative to natural gas
•  Opportunities for CHPs privatization
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Contacts
Darya Revina
•  ICC Ukraine Vice-chairman on green economy
•  Head of Commission on green economy and ecological
investments
•  Head of GREENERGY Initiative program
Email: drevina@iccua.org