Coal to Ammonia Presented at the
Iowa Energy Center Meeting Ammonia-The Key to a Hydrogen Economy
By
Mark Ibsen Rentech Development Corporation October 13, 2005
1
Presentation • Rentech Introduction • Producing Ammonia from Coal/Petroleum Coke Gasification • What is Fischer-Tropsch? • East Dubuque, Illinois • Environmental Benefits • Food Security and Energy Security-Fuel for First Responders, and the US Military
2
Rentech – A Brief History • A 23 year old Denver, Colorado Energy Technology Company – Traded as “RTK” on the American Stock Exchange
• Engaged in the Fischer-Tropsch Development – Coal-to-Liquids (FT/CTL) business – NG-to Liquidss (FT/GTL) business
• Licenses its patented and proprietary technology – 20 U.S. and 1 foreign process and materials patents
• Rentech Development Corporation – Subsidiary of Rentech Inc. – Responsible for ownership and development – Gas-to-Liquid and Coal-to-Liquid Projects
3
Coal to Ammonia a New Concept? • Not really but for the United States, yes • Today, in the US there are two projects operating – North Dakota Gasification – Coffeyville Resources
• World Wide a number of facilities – China (2500 small local facilitates) – Portugal (uses refinery bottoms) – Germany, Czech, India, Brazil all have ammonia plants from coal
• Key driver, high NG costs
4
Coal Gasification & Ammonia
Coal - 2500 stpd Coal Handling
Coal to Ammonia
Syngas
Water
H2/CO
CO2
BFW
Slurry Gasifier
SynGas Cooling/ Cleaning
Process Boiler
O2 Export Slag
ASU
Acid Gas Removal
Sour Shift
Steam
Guard Beds
H2S Hot BFW
Claus Unit
O2
Process Condensate Water Recycle
Air
Sulphur Loading
N2
PSA Offgas
PSA HRSG
Existing CO2 Removal
HTS Rctrs
LTS Rctrs
H2 Purge to Vent Hot BFW
NH3 Loop
~
LP
MP
HP
Steam Turbine
NH3 - 1500 stpd Power - 10-20 MW Parasitic Power
5 Color Legends:
Gasification
Misc
Ammonia
Indicates units that may or may not be needed.
North Dakota Coal Gasification
6
7
Syngas Derived Products Ammonia UAN Urea
Hydrogen + Carbon Monoxide (H2+CO)
Ultra-Clean Fischer Tropsch Transportation Fuels Synhytech – Pueblo, Colorado, 1992
Syngas
Electricity (IGCC) Methanol/DME/Propylene Synthetic Natural Gas Hydrogen Carbon Dioxide 8
Gasification Ideal for Syngas Derived Products Ammonia UAN Urea
Hydrogen + Carbon Monoxide (H2+CO)
Ultra-Clean Fischer Tropsch Transportation Fuels Synhytech – Pueblo, Colorado, 1992
Coal
Coal Coal Gasification Gasification
Syngas
Electricity (IGCC) Methanol/DME/Propylene Synthetic Natural Gas Hydrogen Carbon Dioxide 9
10
Illinois Project 11
First Mover Opportunity: Producing Fertilizer, Ultra-Clean Fuels & Electricity From Coal Deploy gasification to save and create jobs while increasing energy and food security through the production of ammonia and FT liquids using Illinois coal as the plant feedstock.
12
Fischer-Tropsch (FT) Synthesis • Invented by German chemists Franz Fischer and Hans Tropsch in 1923. Used by Germany during WWII to produce 600,000 bbl/year of fuels from coal and coke
• Commercially proven worldwide 197,000 BPD Current Production • Since 1950s ~ currently 160,000 bbl/day from coal by Sasol • Since 1993 ~ 23,000/bbl/day from natural gas by Petro SA using Sasol technology • Since 1995 ~ 15,000/bbl/day from natural gas by Shell in Malaysia
13 4
FT is Commercially Proven Worldwide SASOL (S. Africa)
45 years commercial – 160,000 b/d+ – Feedstock Coal
SASOL’S SOUTH AFRICAN FACILITY
MossGas (S. Africa)
11 years commercial – 22,500 b/d+ – Feedstock Natural Gas
Shell (Malaysia)
9 years commercial – 15,000 b/d+ – Feedstock Natural Gas
14 6
Why Rentech?
Catalyst Flexibility
CTL RENTECH SASOL
GTL CONOCO EXXON SHELL CHEVRON/SASOL World’s Largest FT Slurry Reactor – Synhytech, 1992 15 7
Rentech CTL with Fertilizer Air Power
ASU
Vent
to Vent or Sequestration
N2
O2
CO2
BFW
Gasifiers
Waste Heat Boiler or Quench
Ammonia Plant
Syngas Conditioning & Purification
Fertilizer Sales
Syngas Exp. Slag
Coal Prep. Pet-coke or Coal
Process Condensate Recycle
Exp. Sulphur
Water for Slurry or Heat for Drying Steam H2 Rem.
Steam BFW Steam
BFW
Off-gas to Fuel
Gas Turbine
Tail-Gas to Fuel
HRSG
FT Synthesis
~
H2 for FT Product Upgrade Crudes
Off-gas to Fuel
~ Steam Turbine
Parasitic Power
Product Upgrade
FT DIESEL
NAPHTHA
Power Sales
16
East Dubuque Plant
17
4,000,000
2,000,000
5,000,000 10.00
4,500,000 9.00
ammonia production
3,500,000 7.00
3,000,000 6.00
2,500,000 5.00
natural gas price
4.00
1,500,000
IL #6 Coal Price
500,000 1.00
0.00
18
$ /M M B tu
1,000,000
1 9 9 6 -0 1 1 9 9 6 -0 2 1 9 9 6 -0 3 1 9 9 6 -0 4 1 9 9 7 -0 1 1 9 9 7 -0 2 1 9 9 7 -0 3 1 9 9 7 -0 4 1 9 9 8 -0 1 1 9 9 8 -0 2 1 9 9 8 -0 3 1 9 9 8 -0 4 1 9 9 9 -0 1 1 9 9 9 -0 2 1 9 9 9 -0 3 1 9 9 9 -0 4 2 0 0 0 -0 1 2 0 0 0 -0 2 2 0 0 0 -0 3 2 0 0 0 -0 4 2 0 0 1 -0 1 2 0 0 1 -0 2 2 0 0 1 -0 3 2 0 0 1 -0 4 2 0 0 2 -0 1 2 0 0 2 -0 2 2 0 0 2 -0 3 2 0 0 2 -0 4 2 0 0 3 -0 1 2 0 0 3 -0 2 2 0 0 3 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 1 2 0 0 4 -0 2 2 0 0 4 -0 3 2 0 0 4 -0 4
m a te ria l to n s
U.S. Ammonia Production vs. Natural Gas & Coal Price 8.00
3.00
2.00
Source: Ammonia production, U.S. Department of Commerce; natural gas price - average spot-deliverd-to-pipeline price, Natural Gas Week.
The RC Plant Post Conversion to Coal Feedstock Integrated Manufacturing Process CONVERSION Coal
Internal Power Steam
5200 tpd Water
Air
Air Separation Plant
Coal Gasification - Syngas Production
Power Plant
PRODUCTS Export Power
Tail Gas
FT Product Upgrade
FT Synthesis
ULS FT Diesel
Naphtha
Sulfur N2
EXISTING PLANT
NH3 Production
H2
Ammonia Synthesis
Carbon Dioxide Plant
CO2 NH3
NH3 Sales
Urea
Air
Nitric Acid Plant
CO2 Sales
Nitric Acid
Urea Plant
Granular Urea Sales
Urea Solutions Sales Nitric Acid Sales
Ammonium Nitrate/ Blending Plant
UAN Sales
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Coal Gasification Yielding Rentech FT Fuels & Power & Ammonia
Coal - 5200 stpd
E. Dubuque AgriEnergy
(Simple Recycle FT Process, 1 Gasifier)
Coal Handling
Water
CO2 BFW
Slurry Gasifier
Syngas
SynGas Cooling/ Cleaning
Process Boiler
O2
AGR
Steam
H2 S
Claus Unit
Hot BFW
Export Slag
Guard Beds
(Rectisol)
ASU
Air
H2/CO - 0.68
Air
Process Condensate Water Recycle
Sulphur Loading
N2
H2 to Prod Upgrade
Steam
BFW
H2 Purge to Fuel 450 MMbtu/h
PSA
Existing CO2 Removal
New LTS Rctrs
New HTS Rctrs
FT Synthesis
Purge to Vent
FT Water & Ox
H2 Crudes
NH3 Loop
H2
Gasification/FT Steam
Product Upgrade
Naphtha Turbine
~
LP
MP
HP
1.1 MMscfd H2
DIESEL Storage/Loading
~
NAPHTHA Storage/Loading
Diesel - 4700 bpd Steam Turbine
Naphtha- 900 bpd
NH3 - 920 stpd
Air
Parasitic Power
Power - 40 MW Color Legends:
20 Gasification
FT Unit
Coal
NH3
Misc
Indicates units that may or may not be needed.
East Dubuque Plant Polygeneration Model Estimated Inputs and Production • Coal feedstock
5,200 TPD
Products (45% Increase in Tons Shipped) • Ammonia production 920 TPD • FT Fuels (80% diesel) 5,600 BPD • 248,000 gallons per day
• Electricity production • Electricity export
160 MW(e) 40+ MW(e)
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Benefits of Polygeneration from Coal • Standard pulverized coal power plant: 35% • Combined cycle natural gas power plant: 45% • Coal gasification to produce fertilizer, ultraclean fuels, & electricity: 50+%
22
Coal Cleaner? Plant Regulated Emissions With a Production increase of 45% in Tons Shipped
3500 3000
>30% Decrease In Criteria Pollutant Emissions
Tons/Yr
2500 2000
Existing Tons/yr Converted Ton/yr
1500 1000 500 0 Existing Tons/yr
Converted Ton/yr
Total Emissions of: PM10 VO CO NOx SO2 23
Ultra-Clean FT Diesel Fuel from Coal • Biodegradable • < 1ppm Sulfur • High Cetane •Stable long storage life Emissions Relative to a Typical Diesel Fuel (Percentage)
0
FT Diesel
-5
-9
-10 -15 -20 -25
-28
-30
-33
-35 -40 -45
Conventional Diesel
-42 Hydrocarbon
Carbon Monoxide
N0x
Particulates
Source: An average of several government funded studies by NREL & SwRI
FTD from coal is an “alternative fuel” under 1992 Energy Policy Act (EPACT) 24
OSD Clean Fuel Initiative Vision: DoD catalyze the commercial industry to produce clean fuels for the military from secure domestic resources using environmentally sensitive processes that create jobs and wealth in the United States
Dr. Theodore K. Barna Assistant Deputy Under Secretary of Defense Advanced Systems and Concepts Pentagon 3D833 703-695-9873 Ted.Barna@OSD.mil
25
DoD Impact Secure and reliable sources of energy Currently dependent on foreign oil
jet fuels, 73.5%
Becoming dependent on foreign refined fuels
ground fuels, 15.1%
marine fuels, 7.9%
Supply chain vulnerability Dependent on mega refineries- Gulf Coast
Military Demand Approx 4% of US Consumption
Natural disasters or Terrorist threats
Ref: DESC Help Book
Need for cleaner fuels
Fuel Costs
Potential limits on deployments
Possible conflict with EU rules
M illio n s o f D o lla rs
DoD exempt from some EPA regulations
6000 5000 4000 3000 2000 1000 0
Army Navy Air Force Marines 97
98
99
0
1
2
3
4
5
Fiscal Year
26
Total Energy Development (TED)
Use all secure indigenous sources of energy Coal, shale oil, petroleum coke, renewables Dispersed production facilities
Minimize government funding—focus on qualification and certification
Make a better fuel from coal and petroleum coke (Fischer Tropsch fuels) and oil shale Low (or no) sulfur, cleaner burning, bio-degradable, low (or no) aromatics, reduced particulate emissions Blends near term, neat fuel future goal Stable fuel for long term secure storage of refined fuel for emergency use
Use Environmentally sensitive processes to produce fuel - Clean Coal Technologies such as the Fischer-Tropsch process, Mahogany Shale Research Project - CO2 sequestration for enhanced oil recovery (EOR) 27
Reduced Exhaust Emissions with FT Fuel Relative to Low-Sulfur Diesel Fuel 0% HC
CO
-10%
% Reductions
-20%
CO2
-4%
-17%
NOx
PM
-13% -15%
-30% -40% -45%
-50% -60% -62%
-70% -72%
-60%
Transient Hot Start testNRTC cycles Hot Start NRTC*
-52% -55%
-80% *Non-Road Transient Composite
FT fuel burns more completely and emissions are significantly cleaner than EPA certified low-sulfur diesel fuel tested in 6.5L diesel engine.
Over 50% reduction in particulate emissions in transient mode.
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Reduced Particulate Emissions with FT Fuel Relative to JP-8 % Change in Particle Number Density y
0% 12.5
25
-12%
-13%
37.5
50
62.5
75
87.5
100
-25% -25% -30%
-33% -41%
-50% -50%
-51% -57% -61%
-75%
-68%
Cruise
-75%
-78%
Idle -86% -92%
-100%
12.5
25
37.5
50
62.5
75
87.5
-96% 100
% Volume of FT Fuel in JP-8
Even moderate fractions of FT fuel blended in JP-8 significantly reduce exhaust emission particulates in T63 turbine engine testing.
96% reduction* in particulate emissions at idle conditions.
29 * Note: Results are highly dependent on engine model/year and composition of baseline fuel.
Summary • Coal to Ammonia is not a new concept • The Poly-generation concept improves plant efficiency and diversifies product mix • Conversion of exiting facilities improves project schedule, reduces cost and utilizes existing plants • The Ammonia and Fuels provide for Food and Fuels security for the United States • Both Ammonia and FT liquids are a steps toward the Hydrogen Economy • Polygeneration provides diversity and stability to ammonia plants during market swings.
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Questions
31