salikhov ruslan atomenergoproekt jioss 2012

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Forming New Market Niches: Strategy For

Improving The Competitiveness Of Oil

Shale Products Ruslan Salikhov, Michael Petrov

Eduard Golmshtok, Alexander Morozov Vladimir Boltintsev, Vyacheslav Ilyakhin Semen Andrianov, Alexander Blokhin

TTU-Ltd

JIOSS-2012, 7-9th of May, Jordan

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Introduction:

ATOMENERGOPROEKT exists since 1929, has 1500 personnel. Activity - researches, design and development thermal power plants, nuclear power plants, oil shale processing plants. Institute is involved in oil shale industry since 1950s and has designed oil shale firing power plants: Ahtme 45 MW, Estonian 1700 MW, and Baltic 1800 MW, and has designed installations based on GALOTER method: UTT-200 in Kiviyli (1950s), UTT-500 (1963 – 1980), 2 x UTT-3000 in Narva (known as Enefit-140) UTT-3000 for VKG Oil in Kohtla Jarve commissioned in 2009 and operating as Petroter.

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Introduction:

• TTU Ltd – company possessing patents for methods

and installations for processing oil shale by solid heat carrier (UTT).

• Goal of the company – development and distribution technology for processing low-calorific solid fuels by high speed pyrolysis method GALOTER.

• Established by specialists in the field of oil shale processing in 2006, reorganized in 2009.

• Number of patents – 24. • Number of inventors involved – 37.

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Ways to improve competitiveness

Forming new market niches • Shale oil as activator of heavy residues processing • Thiophenes - product of removal sulphur from shale oil • Services for hydrocarbonaceous wastes disposal • Services as peak smoothing facility in power grid • Use of mineral part of oil shale Lowering costs • Reducing risky costs of geological prospecting &

exploration • Lowering capital costs of equipment • Lowering operational costs

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New market niches: Shale oil as activator of heavy residues processing

•Shale oil can be used as the activator for processing the heavy oil residues (tar, malta, black oils) in oil refineries.

•In thermal processing of the heavy oil residues (visbreaking and thermocracking) application of oil shale activators increases the yield of light products from 20% up to 60%, and

•in hydrogenization processes (hydrocracking) the yield of light products for one cycle increases from 50% up to 90%, thus speed of process is 2 times higher, and working pressure is 2 times lower.

•Proper test runs were made in Angarsk petrochemical plant.

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New market niches: Thiophenes - product of removal sulfur from shale oil

Thiophenes, polytiophenes and their compounds are used in different fields of front edge technologies defining wide range of customers: • for production high polymers, • lubricants including special used in supercritical low and high temperatures as well as in aeronautics and astronautics, • in synthesis of biologically active compounds, • in pharmaceutical, • in perfumery, • in nanotechnologies, in production of fullerens and nanotubes and nanofibers,

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New market niches: Thiophenes - product of removal sulfur from shale oil

• production of composite bipolar membranes used for separation H and OH ions that is very important for cheap hydrogen production, • for production polymeric semiconductors, • displays of computers, • ROM (read-only-memory) elements, • synthetic dyes, • fluorescent inks, • solar cells, • in oil refineries.

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New market niches: Thiophenes - product of removal sulfur from shale oil

•TTU-Ltd. possesses the technology of cleaning shale oil from sulfur with production of high valuable products without hydrogenation.

• Sulfur of thiophene group is to be treated by special method of extractive rectification protected by patents nos. 2072474, 2088633, 2118979, 2128680, 2157823 and others.

• Equipment cost about $ 5 mln for each UTT-3000. Output products are: thiophene, methylthiophene concentrate. The recovery of thiophene from treated shale oil 98%.

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New market niches: Thiophenes - product of removal sulphur from shale oil

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Process of separation thiophene: I – extractive rectification column, II – separation agent regeneration column

1-benzene fraction, 2-toluene fraction, 3-xylene fraction, 4-benzen technical, 5-toluene technical, 6-xylene concetrate, 7-commodity toluene, 8-separation agent and thiophene compounds mix, 9-pure thiophene, 10-methyl-thiophene concentrate, 11-dimethyl- and trimethyl-thiophene concentrate, 12-regenerated agent

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New market niches: Services for hydrocarbonaceous wastes disposal

•The opportunity of processing of hydrocarbonaceous wastes in UTT-3000 – used tires (10% of oil shale), oil soaked soils (20-25 % from volume of oil shale), tars, cakes, etc. will provide an additional output of liquid distillates and makes shale oil production more competitive. Mountains of used tires and lakes of crude oil processing wastes could be processed. •Proven Oil Yield from used tires is up to 60% wt. •Proven Oil Yield from usual hard wastes of towns and cities – up to 20%. •Residual asphalt (pressure tar), when injected to oil shale & ash mixer, brings up to 50% light products.

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New market niches: Services as peak smoothing facility in power grid.

The UTT installations can be added with oil & gas firing power plant for smoothing peaks in big electric networks. The opportunity of regulation of an output of liquid and gaseous products from UTT over a wide range allows to be switched quickly from manufacture of fuel to manufacture of the electric power. In stand-by mode of operations UTT produces shale oil. Time required to switch on gaseous mode of operation is 0.5 hour.

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New market niches: Services as peak smoothing facility in power grid.

Five modes of operation were tested in industrial scale: • 1 mode: gasification of fine grained oil shale 0-12 mm in

UTT-3000 (one-step process 720-750 C); • 1’ mode: process of mode 1 with temperature 600-650 C

with steam; • 2 mode: semi-coking of fine grained oil shale in UTT in low-

temperature (oil) mode (one-step process 480 C); • 3 mode: processing oil shale in UTT in oil mode with

additional thermocontact pyrolysis of medium and heavy oil (two-step process);

• 4 mode: processing oil shale in UTT in oil mode with oxidation pyrolysis of light and medium oils (two-step process);

• 5 mode: processing oil shale in UTT in oil mode with oxidation pyrolysis of light and medium oils and thermocontact pyrolysis of heavy oil (three step process).

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New market niches: Services as peak smoothing facility in power grid.

Items by modes 1 1` 2 3 4 5

Shale Oil, t, including: 175 52,5 475 150 295 -

Light (b.p. up to 200 С) 55 52,5 92,5 92,5 - -

Medium (b.p. 200-300 С) 52,5 - 171,25 57,5 38,75 -

Heavy (b.p. more 300 С) 67,5 - 211,25 - 256,3 -

Gas Petrol, t 26,25 37,5 25,0 25,0 37,5 53

Gas, ths cu.m 300 375 100 280 230 387,5

Yield of oil shale heat to products, %,

71,8 65,5 83,1 71,0 76,6 67,2

Oil 23,6 7,1 63,5 21,2 38,1 -

Gas Petrol 4,2 5,8 4,1 4,1 6,1 8,7

Gas 44,0 52,6 15,5 45,7 32,4 58,5

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New market niches: Use of mineral part of oil shale

•The UTT-3000 complex can be added with cement works - for manufacture of cement it is possible to use shale ashes.

•UTT-3000 can be added with melting oven to melt ash – it will allow to produce clinker and extract metals from ash.

•UTT-3000 can be used together with the bioleaching facilities for extraction of the metals from raw oil shale and ash.

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New market niches: Use of mineral part of oil shale

Borehole 3-7 2-8 2-7 3-5 3-3 Sample 1 2 3 4 5 Interval 20,60-20,85 34,50-34,80 66,40-66,70 71,50-71,80 104,8-105,0 Moisture 9,77 9,47 23,21 20,39 15,55 Volatile matter 15,63 19,43 16,33 20,78 21,42 CO2 5,56 6,05 7,44 10,66 8,04 Ash 78,81 74,52 76,22 68,56 70,54 Semi-coke 87,5 82,53 85,92 81,41 80,44 Mo, % shale 0,048 0,055 0,045 0,11 0,1 Mo, % coke 0,06 0,069 0,049 0,12 0,12 Mo, % ash 0,065 0,07 0,06 0,16 0,16 Re, ppm shale 0,22 0,4 0,44 0,4 0,4 Re, ppm coke 0,23 0,56 0,56 0,52 0,64 Re, ppm ash 0,22 0,44 0,56 0,64 0,8 V, % shale 0,11 0,13 0,15 0,18 0,14 V, % coke 0,13 0,15 0,17 0,19 0,17 V, % ash 0,12 0,16 0,18 0,24 0,21

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New market niches: Use of mineral part of oil shale

Phenolates: Quantity reaches 30% of semi-coke Formation can be controlled in UTT-3000

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Lowering costs: Reducing risky costs of geology prospecting & exploration

Elaborated method of impulse Ultra Wide Band Electro Magnetic Sounding (UWB) allows to find the oil shale layers and distinguish them by rich and poor grades. Risky costs of prospecting works are tens times lower comparing with drilling.

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Lowering costs: Reducing risky costs of geology prospecting & exploration

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Lowering costs: Reducing risky costs of geology prospecting & exploration

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Lowering costs: Reducing risky costs of geology prospecting & exploration

Surface topography at the site AUG22

Top of oil shale layer

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Lowering costs: Reducing risky costs of geology prospecting & exploration

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Lowering costs: Reducing risky costs of geology prospecting & exploration

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Lowering costs: Reducing risky costs of geology prospecting & exploration

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Lowering costs: Lowering capital costs of equipment

Condensation unit: the new one (on the right) is 3 times smaller and 10 times cheaper.

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Lowering costs: Lowering capital costs of equipment

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Lowering costs: Lowering capital costs of equipment

Ash-to-air heat exchanger: the new one (on the right) is 2 times smaller and ## times more efficient.

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Lowering costs: Lowering capital costs of equipment

Removal of drying system: the installation (on the right) is 24 meters shorter.

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Lowering costs: Lowering capital costs of equipment

Period of manufacture and supply main equipment of UTT-3000 – 10 month

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Lowering costs: Lowering operational costs

Versus designed capacity factor 7000 hours a year for Narva plant (1980) UTT-3000 operational time in Kohtla Jarve (2012) has reached 8045 hours a year.

Versus designed capacity factor 7000 hours a year for Narva plant (1980) UTT-3000 operational time in Kohtla Jarve (2012) has reached 8045 hours a year.

Evaluation of reserves

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All improving factors are related with oil shale reserves through Cut Off Grade

Indicated

Measured

Probable

Proved

Increasinglevel ofgeologicalknowledgeandconfidence

Exploration Results

Inferred

Consideration of mining, metallurgical, economic, marketing,legal, environmental, social and governmental factors

(the “Modifying Factors”)

Mineral Resources Ore Reserves

Evaluation of reserves

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All improving factors are related with oil shale reserves through Cut Off Grade

Evaluation of reserves

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All improving factors are related with oil shale reserves through Cut Off Grade

Evaluation of reserves

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All improving factors are related with oil shale reserves through Cut Off Grade

Special thanks to organisers, sponsors and partners of the Symposium

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Thank you