commercialization of ecopro® for utilization of low … production syngas city gas production...

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Commercialization of ECOPRO® for Utilization of Low Rank Coal

September 10th , 2014

Nippon Steel & Sumikin Engineering Co.,ltd.


2

High efficiency coal gasification is the key technology for the energy shift from petroleum or natural gas to coal.

Gasoline, kerosene,

Heavy oil, etc,.

Cracking Ethylene/Propylene

Synthesis reaction

Power generation

GTL Diesel

Naphtha For chemical industry

Cokes For steel making

Tar, BTX COG

C2H4、C3H6

Shift

Chain of Oil & Gas

Chain of Coal

Naphtha

Naphtha

Diesel CTL

IGCC

Methanation

Syngas（H2/CO）

Coke production

Syngas

Production

Refining

Chemical products

Plastic

Fertilizer, Rubber,

Chemicals etc,.

Transportation

fuel

City gas

(for industrial use）

Electricity

Natural gas

Crude

Oil

Coal

Power generation

For chemical

industry

Gasification


ECOPRO

85％～

Dry Feed + Pyrolysis

75～80％ 70～75% 50～60％ Cold Gas

Efficiency

Shell GE Lurgi Process

Outline

Dry Feed Slurry Feed

Fixed Bed,

Fluidized Bed

Slug

Coal(CWM)

Oxygen

Gas

Oxygen Coal

Slug

Gas

Heat Recovery Car

RG Char

Gas

Slug Oxygen

Coal

Coal

Pyrolysis Gas

Coal

Oxygen

Ash

1st～2nd Generation 3rd Generation ５th Generation 4th Generation

（SHELL）

Entrained Flow Bed

Trend of Technology

Batch Treatment , Low Efficiency

Continuous Treatment、Large Scale、 Higher Efficiency、Applicability to Low Rank Coal


＜Target ＞

・ Applicability to Low Rank Coal

・ Large Scale

・ High Efficiency

＜ Facility ＞

・ Entrained Flow Gasifier

・ Dry Feed ＆ Oxygen Blown

・ 2 Chambers（Pyrolysis Process）

＜Operation＞

・ Operational Knowhow

（Coal Handling、

Control of Ash Content）

O2

Coal Fuel ・Chemical

SNG, FT-oil、

Hydogen、Ammonium ,Methanole

Syngas (H2 , CO, CH4)

Slag Inorganic materials

Cement, etc

Char

【Partial Oxdation】

Coal + O2, Steam

CO,H2 + Heat + α

【Pyrolysis】

Coal + Heat

CO,H2, CH4+ α

Synthesis Process

Producing Valuable Fuel or Chemical Materials from Abundant Low Rank Coal in Coal Mining Site.

Experience in Steel Making

Characteristics

of ECOPRO

Drying Pulverizing

１． Applicability to Low Rank Coal

２． Stability of Operation

３． World Highest Energy Efficiency （８５％～）

４． “Pyrolysis” in Upper Chamber

・ Methane Content in Syngas ⇒ High Efficiency in Production of SNG

・ No Oxygen needed in Pyrolysis⇒ Reduction of cost of ASU and electricity by

saving Oxygen Consumption

High

Efficiency of

Producing

SNG


ECOPRO 20t/d Pilot Plant at Nippon Steel & Sumikin Yahata Works

1995～ Basic Research and Development

2003～2008

Basic Process Design Development with Pilot Plant , as subsidized by METI Coal Div. of Japanese Government

2009 ～ Development of Scale-up Demonstration Schemes under the Project “Utilization of Brown Coal (Lignite) in Victoria, Australia.”

2012～ Development of Demonstration in China Schemes


1. Where has Coal Gasification Market been Realized? (1) The coal gasification market is being linked with

the natural gas market． (2) The stable supply of natural gas is becoming increasingly difficult． (3) Ｔhe coal gasification is attracting growing interest and attention world-wide.

It is only in China that the coal gasification market has been realized．


2. Why has Coal Gasification Market been Realized in China?

(1) Shortage of supply of oils and natural gas and serious increase of the domestic energy demand ⇒ Government Policy of Coal Gasification Promotion. (2) Widely available domestic coal resources as combined with neighboring industrial centers (3) Lower capital cost of coal gasification plants


3. Why do Coal Gasification Projects Remain Unrealized in Countries other than China?

(1) Prices of natural gas have come to stay at low levels (at natural gas producing countries, except Indonesia where such prices have rapidly become high) or remain uncertain (at LNG/ natural gas importing countries). (2) Insufficient investment environment ・ Incomplete infrastructure ・ Absence of related industries ・ Insufficient industry promotion policies (3) Higher capital cost of coal gasification plants


For speedy commercialization of ECOPRO, essential is ① to complete its demonstration in China where the ② coal gasification market has been realized, cooperating with ③ partners who are planning coal gasification projects.


Category Project Programming

StageⅠ

1. Period: 2014 and on 2. Goal : Undertake Demonstration and Projects on commercial scale, jointly with Chinese Partner “Shandong Energy Zaozhuang Mining Gr” Step1 Middle Size (200t/d) ＝ Model Plant for Demonstration of ECOPRO® Performance Characteristics Step2 Large Scale (more than 1000t/d) ＝Commercial Project ⇒ Establish Low-cost Procurement and Fabrication System in China through Step1 and 2

StageⅡ

1.Period: 2018 and on 2.Goal : Undertake commercial scale projects in coal mining countries other than China: ・ Australia ・ Indonesia ・ Others （ India, Mozambique, and Mongolia. ）

SNG⇒LNG to Japan


☆ Shandong Energy Zaozhuang Mining Gr, prospective Chinese Partner for ECOPRO Demonstration, possesses interests for the lignite mines in the eastern region of Inner Mongolia and is planning to launch a lignite-based SNG production project in the site adjacent to the group chemical factory located in Hulunbeier City ☆ The ECOPRO® Demonstration is being planned to be executed in this site.


Scheme for Commercial SNG project NSENGI ： Nippon Steel & Sumikin Engineering CO.,LTD.

Value Chain

Ex. PetroChina

Own Funds＋Loan byShandong Energy Zaozhuang Mining Gr

Shandong Energy Zaozhuang Mining Gr

NSENGI or Group Company

Value Chain

Own Funds (NSENGI、Shandong Energy Zaozhuang Mining Gr)＋Subsidies

Scheme for Demonstration of ECOPRO®

山東棗荘

Off-taker of Products O&M EPC Finance Upstream Interest

Off-taker of Products O&M EPC Finance Upstream Interest




Shandong Energy Zaozhuang Mining Gr or others

NSENGI or Group Company


Aug. Sep. Oct. Nov. Dec.

China

Other

than

China

2015 2016 2017

Ⅰ

Preparatory Work

Execution ofDemonstration

Item 2018 2019 2020 2021 2022

ⅡCommercial

Projects

▽Signing Contract on Demonstration

PlanningEPC

of Deonstration PlantDemonstration

Operation Shifted Commercial Operation

Feasibility Study Commercial Unit#1

Feasibility Study

Additional PP Testby Demonstration Coal


Thank you

commercialization of ecopro® for utilization of low … production syngas city gas production...

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