Coal Mining

1
Coal Mining
Open Pit Mine
Underground Mine
2
(No Transcript)
3
Coal Conversion Processes

• Carbonization and Pyrolysis
• Low severity (mild gasification)
• High temperature
• Direct Liquefaction
• One-stage reactor technology
• Two-stage reactor technology
• Co-processing
• Hybrid
• Indirect Liquefaction
• Gas reactors
• Slurry reactors

4
Why Coal-To-Liquids (CTL)?

• Energy Security
• Size of coal resources
• Distribution of resources
• Environment
• Utilization of clean coal technology
• Sequestration technology expected
• Flexibility
• Advanced technology
• Co-production capability
• Economics
• Competitive with alternatives
• World oil price volatility

5
Coal-to-Liquids Part of an Unconventional Fuels
Portfolio

• Growing consensus on need to diversify
  transportation fuel sector
• Long term hydrogen
• Intermediate term liquids from coal, oil shale,
  liquids from biomass, increased domestic
  petroleum production, efficiency
• Advantages of Coal and CTL Technology
• U.S. coal reserves amount to 250-year supply at
  current rates of consumption
• Coal resources are dispersed (proven reserves in
  26 states)
• 1 ton of coal can be processed into 2 barrels of
  high-quality liquid fuels
• Offers opportunity to pre-invest in eventual
  hydrogen-from-coal production facility

6
Direct Coal Liquefaction Process
7
Hybrid DCL/ICL Plant Concept
8
Shenhua DCL Process
Light Gases
Recycle Solvent
Catalyst
Gasoline
Coal Prep
Slurry Mixing
Coal
Jet Fuel
Liquefaction
Separation
Fractionation
Upgrading
Diesel
Residue
N2
H2
Purification
Gasification
Air
Air Separation
O2
First Train 1 MT/a Liquefaction Oil
9
Indirect Coal Liquefaction Overview

• Synthesis Gas
• Production
• Gasification
• Reforming
• Steam
• POX
• ATR

Natural Gas Coal Pet Coke Biomass Wastes
F-T Liquid Synthesis Slurry/Fixed/ Fluid-Bed
Tail Gas
Power Generation
Product Recovery
Hydrogen Recovery
H2
Liquid Fuels
Wax
O2
Oxygen Plant
Air
Wax Hydrocracking
Product Storage Naphtha/ Diesel
Liquids
10
CTL Projects Worldwide
11
International CTL Plants and Projects
Country Owner/Developer Capacity (bpd) Status
South Africa Sasol 150,000 Operational
China Shenhua 20,000 (initially) Construction Operational in 20072008
China Luan Group 3,0004,000 Construction
China Yankuang 40,000 (initially) 180,000 planned Construction
China Sasol JV (2 studies) 80,000 (each plant) Planning
China Shell/Shenhua 70,00080,000 Planning
China Headwaters/UK Race Investment Two 700-bpd demo plants Planning
Indonesia Pertamina/Accelon 76,000 Construction
Australia Anglo American/Shell 60,000 Planning
Australia Altona Resources plc, Jacobs Consultancy, MineConsult 45,000 Planning
Philippines Headwaters 50,000 Planning
New Zealand LM Group 50,000 Planning
12
Barriers to Coal-To-Liquids

• Technical
• Integrated operations of advanced CTL
  technologies have never been demonstrated
• Economic
• Uncertainties about future world oil production
• High capital and operations costs
• Investment risks
• Energy price volatility

13
Barriers to Coal-To-Liquids

• Environmental
• CO2 and criteria pollutant emissions
• Expansion of coal production and requisite
  infrastructure (railroads, railcars, etc.)
• Water use
• Commercial Deployment
• Competition for critical process equipment,
  engineering, and skilled labor
• Who would take the lead in commercial deployment?
  Part power part liquid fuels
• Social
• NIMBY and public resistance to coal use

14
Gasification Technology OverviewThe Basic
Chemistry
Process Conditions 1,800 2,800 Deg F, 400
1,000 psig
15
(No Transcript)
16
Clean Coal Generation Technologies

• Pulverized Coal
• Fluid Bed Combustion
• Integrated Coal Gasification Combined Cycle

17
IGCC Overview
18
Integrated Gasification Combined Cycle

• Air vs. oxygen blown gasifiers potential to save
  Air separation unit costs, reduce onsite power
  consumption
• Dry vs. slurry fuel feed Improve energy
  efficiency by 2.6
• Hot syngas clean-up Improve energy efficiency
  1.0-1.5
• Improve gasifier reliability to save redundancy
• Gas turbine advancements new turbine classes
  (FB-gtH 2.2 improvement), hydrogen rich fuel
  combustion for carbon regulation world
• Shift reactor technology to maximize syngas CO2
  capture and hydrogen production for carbon
  regulation
• Syngas mercury capture

19
Activated Carbon Injection with COHPAC to Reduce
Mercury
Selective Catalytic Reduction To Reduce NOx
Emissions
Flue-Gas Desulfurization to Reduce Sulfur Dioxide
Emissions
MEA Scrubber to capture Carbon Dioxide Emissions
20
Basic Idea of a Power Plant
Steam
Spinning turbine blades and generator
Boiling water
21
Four Stages of Coal Combustion

• Primary Devolatilization
• Coal ??Tar Light HC H2O
• Secondary Pyrolysis
• Tar ??Light HC soot
• Homogeneous Oxidation
• Light HC O2 ??CO2 H2O
• Char Burnout
• C O2 ??CO2

22
Schemes for Methane Conversion
23
Potentiality of coal gasification technology

• CO2 issue is increasingly getting hot topics,
  requirement of High Efficiency Technology such as
  IGCC or IGFC, will be increased in future.
• It is necessary to proceed CCT program included
  outlook of CO2 recovery and sequestration as a
  final target.
• In this case, Coal Gasification will be Key
  Technology considering of coal utilization
  potentiality in future.
• Coal Gasification is also possible to apply for
  NH3, GTL, and H2 production, it can be said that
  the technology expandability is so wide range.

24
Potentiality of coal gasification technology
Gas Clean Up
Electricity IGCC, IGFC
Coal
Gasifier
Synthetic Fuel GTL, DME
Synthetic Chemical Fuel Reactor
Oxygen
Synthetic Chemical Fertilizer Reactor
Air Separation Unit
Fertilizer
Hydrogen
Sift Reactor
CO2
CO2 Disposal
CO2 Separator
Under the Sea Underground Coal Mine
25
(No Transcript)