Gasification: A Key Technology

Platform for Western Canada’s

Coal and Oil Sands Industries
Twenty-Fifth Annual International
Pittsburgh Coal Conference
Westin Conference Center
September 20 – October 2, 2008
Pittsburgh, PA
USA
Duke du Plessis
Senior Advisor and Research Manager
Alberta Energy Research Institute
Alberta Finance and Enterprise
Calgary, Alberta
Canada
Alberta Energy Research Institute (AERI)
(Energy Technology Arm of the Alberta Government)

Mission: Enhance the development of clean energy

resources through research, technology and
innovation.
Mandate:
z Position Alberta for the future in energy
z Add value to Alberta’s energy resources
Strategy:
z Invest in technology development projects with
industry
z Partnerships & International collaboration
z Focus on Technology Platforms such as Gasification
and CSS
 Presentation Outline

z Drivers for gasification applications in Western

Canada
z IGCC with CO2 capture- Canadian Clean Power
Coalition
z Gasification applications in oil sands developments
z Next generation gasifiers
z Conclusions
 Fossil Reserves Concentrated in
Western Canadian Sedimentary Basin

Oil Gas Bitumen Coal

109 bbls 1012 cu.ft. 109 bbls 109 tonnes
Remaining Reserves 1.5 39 173 34
Annual Production 0.19 4.8 0.48 0.037
Reserves/Production, years 9.4 8.1 360 919
 Gasification
Drivers, Opportunities & Challenges
Drivers and Opportunities Challenges
z Large coal resources z Capital cost
z Electricity demand growth
z Reliability
z Aging coal plants
z Oil sands developments z CO2 & water management
z Natural gas replacement z Performance with low
z GHG regulations quality fuels
zProximity of EOR and
sequestration sites
z Gasification of coal & oil
sands residues offers
sustainable solutions, BUT
face significant challenges
Oil Sands Growth: Production, Upgrading &
Natural Gas Requirements 4000

3500
Upgrading Capacity by 2015
3000

2500

Kbpd
2000

1500

1000

500

0
Existing Expansions New Total

Declining Natural Gas

Reserves
Source: EUB

Oil Sands Technology Road Map

Canadian Coal-based Electric
Generating Capacity
Anticipated Growth in IGCC
MW
Anticipated Growth in IGCC

MW

Other coal-based
generation

Other
Other coal-based
coal-based
generation
generation
Coal-Fired Power Generation:
A Perspective; National Energy
Board, Canada, July 2008

• Decline in national coal-based

generation due to phasing out of
coal plants in Ontario
• Anticipated growth in IGCC due to
replacement of old coal plants in
Alberta with IGCC including
CO2 capture
 Alberta’s CO2 Challenge

2004 Emissions by Industry Type

Fertilizer Petroleum
5% Refining
(5 Mt) 5%
(6 Mt) Facilities
Contributing < 5%
of Emissions*
6%
Power Plant (6 Mt)
46%
(49 Mt) Chemicals
6%
(7 Mt)

Heavy Oil
6%
(7 Mt)
Gas Plant
Oil Sands
8%
18% (9 Mt)
Source: Alberta Environment (19 Mt)
 Gasification Feedstocks

Feedstock Type
Sub-bituminous Coal
Coals
Beneficiated coals

Petroleum Coke
Oil Sands Residues
Asphaltenes

Forestry waste

Biomass Agriculture waste

Municipal Waste

Blended Feeds Above Combinations

 Joint AERI-Industry
Gasification Projects
z Coal-Based electric power generation with CO2
capture
– Canadian Clean Power Coalition(CCPC)AERI/EPRI
– EPCOR/CCPC/AERI/Fed. Gov.FEED study
z Gasification of coal, coke and coal-coke blends
for hydrogen production.
– Sherritt
z Gasification of oil sands residues to replace
natural gas as a source of hydrogen and fuel gas
– Technology developers/licensors and oil sands companies
z Gasification of municipal waste demonstration to
replace landfill
– City of Edmonton
 The Canadian Clean Power
Coalition (CCPC)
z An association of Canadian and U.S. coal and
coal-fired electricity producers
z Goal: Demonstrate that coal-based electricity
generation can effectively address all
environmental issues projected in the future,
including CO2
z Provide flexible fuel capability– bituminous, sub-
bituminous, lignite, and petroleum coke

www.canadiancleanpowercoalition.com
 Generating Clean Power from Coal
Technology Options
IGCC, Amine Scrubbing, Oxy-fuel
IGCC CO2 to clean-up and compression
Oxygen Gasification Shift CO2 H2 Combined Electricity
Coal conversion Capture Cycle Plant

Post-combustion Amine Scrubbing

Amine CO2 to clean-up and compression
Flue Gas
Air Super- Scrubbing
critical Steam
Coal Boiler Electricity
Turbines

Oxy-fuel Combustion
CO2 CO2 to clean-up and compression
Oxygen Flue Gas Recycle,97% CO2

Oxygen Fired Separation

Coal Boiler Steam
Turbines Electricity
 Coal Types Evaluated

Type Moisture Ash Fixed Volatiles Heating

% AR % AR Carbon, % Dry, % Value,
MJ/kg
Bituminous 5.9 8.0 49.3 36.8 30.24

Subbituminous 20.0 13.9 38.6 27.4 18.93

Lignite 33.5 13.5 28.6 24.4 14.96

 CCPC Technologies Considered &
Evaluated

Gasification Technologies
Phase 1- High & low rank coals CO2 Capture Technologies
z GE Energy Performance &
Cost estimates
z Shell ¾Gasification
z ConocoPhillips
z British Gas Lurgi ¾Amine scrubbing
z EAGLE
z High Temperature Winkler ¾Oxyfuel combustion
z Sasol-Lurgi
¾ 90 % CO2 Capture
z KBR Transport Gasifier
Phase 2- Low rank coals ¾ Other emission levels equivalent
z Advanced slurry feed gasifier to NGCC plants
z Advanced dry feed gasifier
 Phase II– Subbituminous Coal
Advanced Slurry Feed Entrained Flow Gasifier
Advantages
• 2-stage entrained bed
slagging gasifier
• Slurry feed
• Suitable for low rank
coals
• High efficiency
• High pressure
operation
Disadvantages
• Early stage of
development
• High water content of
feed slurry
• Refractory lined
• Higher methane
content (could limit
CO2 recovery)
• No water quench
Phase II: Lignite
Siemens Gasifier
Advantages
• Dry feed
entrained bed
slagging gasifier
• Cooling screen
• Water quench
• Developed for
low rank coals
Disadvantages
• Drying of coal
• Lack of
operating
experience at
high pressure
 CCPC Phases I and II Results :
Cost of Electricity
250
Bituminous
Subbituminous
200 Lignite 2004-2008
Cost
150
Escalation
$/MWh

100

50

0
PC Reference Amine Oxyfuel IGCC IGCC IGCC IGCC Phase I
Plant Scrubbing Reference Capture Capture Results (2004)
Ready

• IGCC costs highly dependent on fuel quality: lignite vs subbituminous coal

• Low incremental cost of adding CO2 capture to IGCC base plant
• Capital cost escalation impacts COE
• Uncertainty in economic comparisons: different maturity levels
New Technology Deployment
Trajectory - Coal Power Plants
Research Development Demonstration Deployment Mature Technology
Anticipated Cost of Full-Scale Application

Advanced USCPC Plants

760°C 620°C+
CO2 Capture Source:
Electric Power Research Institute
APP April 2008
USCPC Plants
620°C+ 600°C

IGCC Plants

Oxyfuel <600°C 565°C

Expected availability can SCPC Plants
increase with time/learning
CO2 Storage
Time

Lower costs estimates for early stage technologies but error bands are higher

Challenge comparing technologies at different levels of maturity

 Conclusions
IGCC with CO2 Capture
z IGCC technology is commercially available for liquid
residues, bituminous coal and pet coke.
z Technology enhancements needed to make it more
competitive especially for low rank western coals.
z IGCC with CO2 capture needs to be demonstrated at
full scale to prove the designs and optimize
performance
z Site specific FEED studies are needed to improve
reliability of cost estimates. E.g. EPCOR project.
 EPCOR FEED
Existing Site at Genesee Study- IGCC with
CO2 Capture

Siemens
Gasifier

Conceptual Siting of 275 MW Plant

Courtesy ECOR
 Gasification Applications
in Oil Sands
Bitumen Uprading & Refining
SCO
Refined Products

SAGD
Coke Pitch
Imported
X
Natural Gas

Hydrogen
SAGD Facility

EAST

Fuel Gas
Oil Producer Steam Injector
Fuel Gas
Steam
Steam Chamber

Slots

Oil Sand Formation

Steam Flow 60 Coke production ~ 20,000 TPD;
Oil Flow
50
Future (2015): ~ 40,000 TPD

Gasifier
m il lio n   to n n e s
40

X
30

Imported 20

CO2
Natural Gas
10

0
1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Canada’s First Commercial Gasification
Plant - Integrated with SAGD
Opti – Nexen Long Lake Project Joint Opti-AERI
Project
Optimum CO2
capture schemes
for existing and
future phases

Shell
Gasification CO2
Process Capture

SAGD Facility

EAST

SAGD
Oil Producer Steam Injector

Steam Chamber

Slots

Oil Sand Formation

Steam Flow

Oil Flow
 Opti Long Lake Plant

Long Lake Upgrader Facility (April 2007

• One of four gasifier trains
• Largest Shell liquid fed
gasifier trains in the
world (when designed)
 Next Generation ‘Clean’ Bitumen
Upgrading Technologies

z AERI-Industry program screened some 100

concepts for ‘breakthrough’ potential
z Selected 8 technologies for stage-gated
development in partnership with process
developers and first commercial adopters
z Includes 3 gasification technologies
 Pratt and Whitney-Rocketdyne (PWR)
Gasifier
• Based on rocket engine
design
• High mass flux
• Advanced materials
• Size and cost reduction
Development path
• Stage-gated piloting,
scale-up and demonstration

Courtesy PWR
 PWR Enabling Technologies
Status of Pilot Facility

● Rapid Mix Burner

● Cooled Liner
● Spray Quench

High Pressure Pilot Facility at GTI

PWR Enabling Technology 8/15/08
Solids Feed Pump
(Conceptual)
 Great Point Energy (GPE)
Catalytic Gasification
Features
z Converts petcoke/coal to Coal/Coke
+ Catalyst
methane (SNG) in single
stage reactor
z Steam instead of oxygen
saves cost
z Captures CO2

Courtesy Great Point Energy

Development path
• Stage-gated piloting
• Scale-up and commercial demonstration
GPE Pilot Gasifier

Courtesy: Great Point Energy

Des Plaines, IL

• Leased facility from Gas Technologies Institute

• Operated successfully with PRB coal and pet coke
• Catalyst added, removed and recovered successfully
 AlterNRG Plasma Gasification

Features
z Based on Westinghouse plasma
technology
z Feedstock flexibility including high
solids
z Controlled slagging
z Intermediate size modular design
Development Path
z Develop pressurized oxygen blown
design
z Build and operate pilot unit
 Other potential game
changing advances

z Ion Transport Membrane for oxygen

generation: Air Products and Chemical Inc.
z High pressure dry solids feed pumps: GE
and PWR
z Enhanced CO2 capture technologies
 Conclusions

z Gasification for hydrogen and power generation with

CO2 capture offers potentially attractive solutions to
sustainable development of Alberta’s coal and oil
sands resources.
z Need for on-going innovation to reduce costs and
improve reliability and environmental impacts.
z Demonstration plants are needed to embark on the
learning process- “Learning by doing”
z A number of pace-setting industry and government
initiatives have been launched
The Oil Sands Model
“Learning by Doing”

Technology advances over 25+ years have

reduced mined oil sands production costs
from > US$30 to < $10/barrel

Source: Syncrude Ltd.

 AERI-City of Edmonton Municipal
Waste Gasification Plant
FEED ISLAND PRE-TREATMENT GASIFICATION AND PRODUCT OPTIONS

ISLAND

Waste
Methanol
Receiving
Synthesis Ethanol
Area 1
Biofuels

Gasifier 1

Shredder
Gas Clean Power
/screens
275 Clean- Synthetic
Generation
tonnes/day Up Gas
Shredder
/screens

Gasifier 2