Coal-to-Liquids (CTL)

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Ignite Energy Resources and TRUenergy Plan Direct Coal-to-Liquids and Coal Drying Demo Project for Supercritical Water Technology

July 10, 2009

Ignite Energy Resources supercritical water process diagram. Source: IER. Click to enlarge.

Ignite Energy Resources (IER), developer of a supercritical water technology, and TRUenergy have entered into a Memorandum of Understanding (MoU) to develop a commercial demonstration plant that will apply IER’s direct coal-to-oil and upgraded dry coal process to the brown coal at TRUenergy’s Yallourn mine in Australia.

IER’s proprietary supercritical water technology (SCW) transforms low-ranked coals, including lignite, directly into higher-valued oils and cleaner coal products. IER’s Hydrothermal Reactor (HTR) technology depolymerizes lignite and biomass by using SCW to cut it directly into oils and upgraded cleaner coal products—i.e., not via an indirect pathway (gasification) as in Fischer-Tropsch processes. IER claims that its process generates 60% less CO₂ than the most widely available coal-to-liquids technology and can generate clean fuels from biomass that are carbon negative.

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Linc Energy Chinchilla UCG to Liquids Demo Plant Producing High-Quality Synthetic Hydrocarbons

June 29, 2009

The Chinchilla Demonstration Facility combines UCG and GTL technologies Click to enlarge.

During the first half of 2009, the Linc Energy Limited Underground Coal Gasification (UCG) to Liquids demonstration plant at Chinchilla (earlier post) ran four major production campaigns each of which has seen further improvements in plant performance, according to the company. The May campaign has been the most successful operation to date, producing high-quality synthetic hydrocarbon products over the entire operating period. The demonstration plant has now operated over extended periods with the anticipated levels of reliability.

The first liquids were produced in October 2008, with improvements in operations over the past few months. Linc Energy says it can now use this abundant and relatively cheap gas to make synthetic liquid hydrocarbons (with a focus on diesel).

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Regal Resources Secures Funding for Underground Coal-to-Liquids Pilot Test

April 12, 2009

Process flow sketch for UCTL demonstration unit. Click to enlarge.

Australia-based Regal Resources has secured commitments to raise A$5.2 million (US$3.7 million) via a placement of 148.2 million new shares at 3.5 cents to fund the pilot test of a novel Underground Coal to Liquids (UCTL) process near Melbourne. Regal will seek to acquire Magma Limited, the holder of UCTL patents via the issue of 100 million shares and 50 million unlisted 6 cent options.

UCTL is an in situ process that converts brown coal/lignite to liquid hydrocarbon and gas products within the coal seam. Each component of the process has been demonstrated in the laboratory, but there has yet to be a field test.

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Researchers Propose New F-T Process for Synfuels; Less Work Required Could Result in 15% Reduction in CO2 Emissions Compared to Conventional Route

March 28, 2009

The proposed CO2 and H2 pathway (bottom) rather than the traditional CO and H2 pathway (top) can improve efficiency and reduce CO2 emissions by 15%. Credit: Adapted by P. Huey/Science. Click to enlarge.

Researchers from the University of the Witwatersrand (Wits), South Africa and Rutgers University are proposing new Fischer-Tropsch (F-T) reaction chemistry and process designs that they say could increase F-T process efficiency and reduce CO₂ emissions by 15% compared to the conventional process.

The new process, which uses a carbon dioxide and hydrogen route rather than the traditional carbon monoxide and hydrogen route, could also open up a pathway for the direct use of CO₂ and H₂ derived from low-carbon processes (nuclear, wind, solar, bio). A brief description of the proposal, derived via thermodynamic analysis, was published in the 27 March issue of the journal Science.

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NETL Report Concludes CTL Plus Carbon Capture Results in Fuel with 5-12% Less Lifecycle GHG Than Petroleum Diesel; Modest Biomass Additions Lower GHG Further

February 07, 2009

Lifecycle GHG emissions of CTL/CBTL/BTL compared to 2005 petroleum diesel baseline. Background colors of the cells represent the crude oil price required for economic feasibility. Tarka et al. (2009) Click to enlarge.

A new report from the US Department of Energy (DOE) National Energy Technology Laboratory (NETL) concludes that coupling a Coal to Liquids (CTL) process with carbon capture and sequestration (CCS) yields a fuel with 5-12% less lifecycle greenhouse gas (GHG) emissions compared to the average emissions profile of petroleum-derived diesel, based on the US national average in 2005. These synthetic fuels are economically competitive with petro-diesel when the crude oil price (COP) is at or above $86 per barrel (based on a 20% rate of return, in January 2008 dollars, with a carbon price of zero).

Adding biomass to the coal in the CTL process (Coal and Biomass to Liquids, CBTL) can reduce the GHG emissions further, according to the study. A mixture of 8% (by weight) biomass and 92% coal can produce fuels which have 20% lower life cycle GHG emissions than petroleum-derived diesel and which are economically competitive when crude prices are equal to or above $93/bbl.

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NASA and Partners Testing Coal and Gas F-T Synthetic Jet Fuels at 100% and 50% Blend

February 02, 2009

Sampling tubing and instrumentation control cables laid out on the pavement beside NASA’s DC-8 flying laboratory in between synthetic fuels emission and engine performance tests at the Dryden Aircraft Operations Facility in Palmdale, Calif. Credit: Tom Tschida, NASA. Click to enlarge.

The National Aeronautic and Space Administration (NASA) and 11 other research groups, including researchers from the US Department of Defense (DoD), Federal Aviation Administration (FAA), and the Environmental Protection Agency (EPA), are testing two synthetic jet fuels derived from gasified coal and natural gas using the Fischer-Tropsch process (Jet CTL and GTL).

The tests for the Alternative Aviation Fuel Experiment (AAFEX) are being run through 3 Feb at NASA’s Dryden Flight Research Center in California, and are measuring the performance and emissions of the two fuels.

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Sasol to Build Coal-to-Liquids Facilities in Indonesia with 1.1M Barrels per Day Capacity

December 26, 2008

Sasol will build coal-to-liquids plants in Indonesia with a targeted combined capacity of 1.1 million barrels per day. Production is expected to begin in 2015, according to Indonesia’s Department of Energy and Mineral Resources. Feasibility studies are currently underway.

Although a member of OPEC since 1962, Indonesia became a net importer of oil in 2004 as a result of rising domestic consumption and declining production due to disappointing exploration efforts and the decline of Indonesia’s large, mature oil fields. Indonesian oil production peaked in 1991 at 1.669 million barrels per day, according to the BP Statistical Review of World Energy 2008; production in 2007 was 969,000 barrels per day. The Indonesian government earlier this year agreed on a production target for 2009 of 960,000 barrels per day.

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TransGas Development Systems to Build $3B CTL Plant in West Virginia; 6.5M Barrels of Gasoline Per Year

December 10, 2008

Flow diagram of the PRENFLO gasification process with direct quench (PDQ) to be used in the TransGas plant. Click to enlarge.

TransGas Development Systems LLC (TGDS) plans to build a $3B coal-to-liquids (CTL) plant in Mingo County, West Virginia, according to company announcement made during the West Virginia Energy Summit. Projected to be operational by 2013, the plant will be built in Mingo County’s new energy park near Gilbert. TGDS estimates the facility will use up to 3 million tons of locally mined coal a year to produce more than 6.5 million barrels of gasoline.

TGDS has signed a licensing agreement with Uhde Corporation of America for two 1,000 MW_th PRENFLO (PRessurized ENtrained FLOw) gasifiers in the Direct Quench version (PDQ). The PRENFLO process, which operates at pressures of 40 bar and higher, is a further development of the Koppers-Totzek process developed in the 1940s, which operates at atmospheric pressure.

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Synthesis Energy Systems Enters JV with YIMA for Coal Gasification in China; Financing Key, as SES Halts Synthetic Gasoline Project in US

October 26, 2008

Synthesis Energy Systems, Inc. (SES), a gasification company, entered into a primary joint venture agreement with YIMA Coal Croup, a China integrated coal company, for the development of a coal gasification plant which will provide syngas feedstock for the downstream production of transportation fuels and chemicals intermediates in Henan Province, China. The joint venture agreement includes a provision whereby YIMA will guarantee the debt financing for the Plant. SES expects this guarantee will allow debt financing to be obtained from domestic Chinese banking sources.

SES also announced that it and its partner CONSOL Energy stopped funding the front-end engineering design package for the Benwood, West Virginia synthetic gasoline project announced earlier this year (earlier post) “due to the difficult financial environment.” With the lack of advancement of the project, the joint development agreement between SES and CONSOL expired according to its terms.

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Researchers Propose Dual-Bed Configuration to Increase Efficiency and Reduce Emissions from Coal Gasification

October 16, 2008

Scheme of the gasification process with air using two reactors. Click to enlarge. Credit: ACS

Researchers in Italy are proposing a new dual-bed configuration for coal gasification that, in laboratory simulations of Coal-to-Liquids production, is 71.1% more energy efficient; increases the mass yield of synthetic fuel by 39.4%; and releases 31.9% less CO₂ than conventional gasification.

Applied for power generation, the dual bed configuration increases plant efficiency by 27.9% and decreases CO₂ emissions decrease by 21.8%, compared to a conventional IGCC process. A paper on their work is scheduled for the 19 November issue of the ACS journal Energy & Fuels.

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RAND Study Concludes Oil Sands Synthetic Crude Can Be Cost-Competitive with Conventional Petroleum Even Over a Wide Range of CO₂ Prices

October 12, 2008

Estimated unit costs of SCO from steam-assisted gravity drainage (SAGD) with upgrading, with and without CCS, and of conventional crude oil in 2025, versus different costs of CO2 emissions. Click to enlarge. Source: RAND

A new report from RAND concludes that in 2025, synthetic crude oil (SCO) produced from oil sands can have a cost advantage over conventional petroleum at a wide range of CO₂ prices, even though it is more CO₂-intensive (15-20% on a life-cycle basis). Coal-to-Liquids (CTL) transportation fuels can also be cost-competitive with conventional petroleum, although the degree of cost-competitiveness is more sensitive to the price of oil and the CO₂ emission cost, the report says. CTL fuels can be approximately twice as CO₂-intensive on a full life-cycle basis as conventional petroleum fuels.

Current methods for oil sands production require large quantities of water and can harm local water quality, the report notes. Development of oil sands can also cause large-scale disturbances of land and habitat. Both resources also represent potentially significant sources of carbon dioxide emissions. The study was funded by the National Commission on Energy Policy.

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Synthesis Energy Systems Options Up to 15 Methanol-to-Gasoline Technology Licenses for Coal-to-Gasoline Projects

September 29, 2008

Synthesis Energy Systems, Inc. (SES), a gasification company, has entered into an agreement with ExxonMobil Research and Engineering Company that provides SES the option to execute up to 15 Methanol-to-Gasoline (MTG) technology (earlier post) licenses at its U-GAS coal gasification plants globally.

MTG is one of several pathways for converting syngas to transportation fuels, the Fischer-Tropsch process being another. The MTG technology converts crude methanol directly to low-sulfur, low-benzene 87 octane gasoline that can be sold directly or blended with conventional refinery gasoline. The gasoline yield from the process is about 89%; LPG yield is about 10%, and fuel gas, about 1%.

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New Life-Cycle Analysis Concludes Neither GTL or CTL a “Reasonable Path” for Energy Security With Reduced GHG Emissions

September 20, 2008

High- and low-GHG emissions scenario for FT fuels. Click to enlarge.

A new life-cycle study by researchers at Carnegie Mellon University (CMU) concludes that the use of either coal- (CTL) or natural gas-based (GTL) Fischer-Tropsch (FT) liquids will likely lead to significant increases in greenhouse gas (GHG) emissions compared to petroleum-based fuels. In a best-case scenario, coal- or natural gas-based FT liquids have emissions only comparable to petroleum-based fuels.

In addition, the economic picture for either FT fuel is uncertain. There is a narrow range of petroleum and natural gas prices at which GTL fuels would be competitive with petroleum-based fuels, according to the study. Although CTL fuels are generally cheaper than petroleum-based fuels, recent reports cited by the study suggest there is uncertainty about the availability of economically viable coal resources in the United States. The CMU study was published 19 September in the online edition of the journal Environmental Science & Technology.

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DARPA Soliciting Research Proposals for Zero CO2, Lower-Water CTL Technologies

September 13, 2008

The US Defense Advanced Research Projects Agency (DARPA) has issued a Broad Agency Announcement (BAA) soliciting research proposals for new technologies for the conversion of coal to liquid (CTL) hydrocarbon fuels that are more environmentally friendly and cost-competitive with petroleum-based fuels. Specifically, DARPA is looking for processes that generate no CO₂ and that consume about half the water of current technology.

The Coal to Liquids (CTL) program is designed to explore aggressive, short-term, feasibility demonstrations of innovative concepts that would enable the DoD to effectively and economically exploit US coal reserves as part of an overall strategy to ensure a secure future energy supply for the military without the environmental or economic downsides of current direct or indirect coal liquefaction technologies.

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Altona Resources Signs MOU with CNOOC on Arckaringa CTL Project in South Australia

August 19, 2008

The Arckaringa CTL and cogen project is situated close to a major rail line and highway, and is targeting exports to Asia as well as domestic use. Click to enlarge.

Altona Resources Plc, an Australia-based energy company, has signed a Memorandum of Understanding (MOU) with CNOOC (Beijing) Energy Investment Co., Ltd, a subsidiary of China National Offshore Oil Corporation, towards the development of the 10 million barrel per year (30,000 barrels per day) coal-to-liquids (CTL) and 560 MW co-generation Arckaringa Project in South Australia. CNOOC is one of the three largest State-owned oil companies in China.

Altona envisions a future expansion of the more than A$3 billion (US$2.6 billion) Arckaringa project to increase production to 45,000 barrels per day and 840 MW of export power as markets develop.

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Crow Nation Signs Agreement for CTL Project in Montana

August 09, 2008

Montana Governor Brian Schweitzer, a proponent of coal-to-liquids projects, joined tribal leaders of the Crow Nation as well as executives from Australian-American Energy Company (AAEC) in announcing that the tribe and company have formed a partnership to move forward on a coal-to-liquid facility and a new mine to be located on the Crow Reservation in Montana. The project mine will be the first new coal mine in Montana in three decades.

The project, called Many Stars, is initially targeted to convert 38,000 tons of coal per day into 50,000 barrels per day of synthetic diesel, jet fuel and naphtha. Startup is expected in 2016. Crow Chairman Carl Venne noted that future plans with AAEC include expanding the CTL plant production capacity to 125,000 barrels per day.

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CONSOL Energy and Synthesis Energy Systems Form JV for Coal-to-Liquids Plant to Produce Methanol and Gasoline

July 28, 2008

Conceptual rendering of the Benwood CTL plant. Click to enlarge.

CONSOL Energy Inc., the US’ largest producer of bituminous coal, and Synthesis Energy Systems Inc. (SES) have formed a joint venture—Northern Appalachia Fuel LLC (NAF)—to develop their first US coal gasification and liquefaction plant to be located near Benwood, West Virginia. The two companies announced last year that they were jointly exploring coal gasification opportunities. (Earlier post.)

The plant is expected to be a “mine mouth” facility with feedstock supplied directly from CONSOL’s nearby Shoemaker complex. The feedstock will be a blend of run of mine coal and coal otherwise not recovered in the normal preparation process. Coal will be gasified to syngas utilizing SES’ U-GAS technology, licensed from the Gas Technology Institute (GTI); the syngas will be used to produce approximately 720,000 metric tons per year of methanol that can be used as a feedstock for the chemical industry. The partners also expect that the project will be capable of converting methanol production to approximately 100 million gallons/year of 87 octane gasoline.

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Alter NRG Proposing Canada’s First Coal-to-Liquids Project

July 23, 2008

Cross-section of the WPC Plasma Gasification Reactor. Click to enlarge.

Alter NRG Corp. is proposing a Coal-to-Liquids (CTL) project that will use the company’s coal reserves in the Fox Creek Area of Alberta, Canada as a feedstock to produce synthetic diesel fuel and naphtha. The project, with a targeted production capacity of 40,000 barrels per day (bbls/d), will require an investment of approximately C$4.5 billion.

Alter NRG will gasify the solid coal feedstock (Westinghouse Plasma Corporation is a subsidiary of Alter NRG) to produce a syngas that will be processed by a Fischer-Tropsch reactor into liquids with a primary emphasis on low sulfur, high-cetane diesel (33,000 bbls/d), but also naphtha (7,000 bbls/d), which is used as a bitumen diluent by the nearby oil sands industry.

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