fueling cars in china - carbon mitigation initiative

Fueling Cars in ChinaPart I: Rationale and Strategy for Comprehensive Use of Coal

R. Williams, E. LarsonPrinceton University

Li Zheng, Ni WeidouTsinghua University

Annual Meeting of the Carbon Mitigation Initiative

Princeton Environmental Institute

Princeton University

20 January 2004

Economic goal and general strategy for China

• In October 2002, the 16th Party Congress established the goal of building “xiao kangsociety” by expanding GDP four-fold by 2020 in a sustainable way

• To achieve this goal, energy development is critical and of great concern and priority • China’s energy-related problems:

– Energy security, mainly oil supply security. China will become heavily dependent on oil imports as a result of the rapidly growing transportation demand

– Environmental pollution, which has large economic consequences (damage cost projected to grow from over 7% of GDP to 13% of GDP in 2020 with BAU)

– CO2 emissions, which are second to U.S. at present and gaining, will be subject to ever-increasing international pressures and could cause extra cost for later control

• A comprehensive strategy is needed for energy development. The proposed strategy can be summarized as: to ensure energy supply, to prioritize energy conservation, to optimize energy mix and to protect environment.

– Major priorities for energy saving: transportation and buildings

China’s projected oil demand

0

50

100

150

200

250

300

350

400

450

2000 2010 2020

Mill

ion

Tons

Imported

Domestic

Projection from: Energy Research Institute’s “Sustainable Energy Development and Carbon Emission Scenario 3” (high efficiency but without coal gasification), 2003

• 2003: oil imports = 90 million tons crude + ?? oil products• 2020: imports could be higher than projected—up to 410 million tons• Increased oil demand mainly due to increase of automobiles

Chinese vehicle population growing explosively

0

5

10

15

20

25

1990 1993 1996 1999 20020

4

8

12

Total Vehicle Private Vehicle Annual Growth

Rate 11.6%

Annual Growth Rate 23.0%

million

Vehicle Ownership

0

1

2

3

4

1990 1993 1996 1999 20020

0.5

1

1.5

TotalCars Annual Growth

Rate 16.7%

Annual Growth Rate 31.8%

million

Domestic Production

0

20

40

60

80

100

120

2000 2005 2010 2015 2020 2025

Mill

ions

AllVehicles

Cars

GDP growth, %/year:

8

6

8

10

10

6

Source: US National Academy of Sciences and China Academy of Sciences, Personal Cars and China, National Academy Press, 2003.

Projections to 2020

Energy saving measures for transportation vehicles

• Within the next few years– Phased (2005 and 2008) minimum fuel economy

standards – Electronic fuel injection and other engine

improvements– Lighter-weight bodies

• Longer-term– Dieselization of the vehicle fleet– Hybrid vehicles– Fuel cell vehicles

Vehicle emission standards in China will progressively tighten

Standard Year adopted in Europe

Year adopted in China

Euro I 1993 2000

Euro II 1997 2004

Euro III 2001 2005(Beijing/Shanghai)

Perspective on rapid increase of vehicles • Primary driving force: people’s expectation for better life,

irreversible…but how many vehicles can China afford?• Strong government promotion:

– Car industry is expected to be a key industry supporting overalleconomic growth

– Citizens are encouraged and enticed to buy cars

• Contradiction: ever increasing demand for oil and resulting energy security and air pollution concerns

• Comment: no clear policy to limit car ownership to stable levels; oil suppliers are in the passive position that they are expected to meet whatever oil demand materializes. However, it is obvious that car ownership in China at per capita levels of the West is impossible in terms of oil demand and resource sustainability.

Oil Strategy proposed by China’s oil industry

• Limit oil demand in 2020 to ~ 420 million tons– Increase/stabilize domestic oil production → 200 mt/y – Buy rights to explore for oil in foreign countries ~ 80 mt/y– Imports ~ 100 mt/y

• Save as much oil as possible through efficiency improvement and substitution

• Develop domestic alternatives, especially via coal liquefaction, since coal is China’s only reliable resource for large scale liquid fuels production

Coal utilization strategy proposed by China’s Medium & Long-Term Science and Technology

Planning Groups• Coal should be regarded as the most reliable strategic energy resource

and be used in a comprehensive way.• Coal will continue to be used mainly for power generation, but it

should also be increasingly used for liquid fuel production to supplement oil.

• Polygeneration based on coal gasification is a comprehensive strategy to integrate near and long term objectives:

– Use coal efficiently, economically and cleanly by integrating fuels, power and chemicals production

– Help ease oil import dependency/security problems– Prepare platform for future provision of hydrogen at large scales and for

CO2 capture and storage

Vision of coal utilization in China

Fueling cars with coal derived fuels

• Making liquid fuels from coal is widely accepted strategy for helping ease China’s oil shortage– Polygeneration is regarded as a key technology in Long

Term S & T Planning– CCICED energy group has played a major role in

promoting this trend– Coal-derived synthetic fuel could be methanol, DME,

F-T distillate, etc.• Direct liquefaction has moved to back burner.

Evolutionary Strategy for Coal-Derived Liquid Fuels in China

• MeOH strategy– Six 600,000 t/y projects planned – Initial markets: Chemicals; regional transport markets; DME feedstock– Long-term markets: gasohol/neat fuel for national markets???

• DME strategy– Use MeOH dehydration to provide DME for cooking (LPG supplement—where

NG unavailable)– Bring to maturity one-step DME (liquid-phase reactors) and polygeneration to

reduce cost– R&D and field testing of DME for engines in transportation– Long-term markets: transportation???, stationary power, in addition to cooking

Evolutionary Strategy for Coal-Derived Liquid Fuels in China

• F-T Liquids strategy– One 2.5 million t/y project planned (imported technology)– Main market: transportation (Diesel substitute, via blends with petroleum-

derived Diesel)– F-T Diesel and DME may compete for CI engine markets in long term

• Polygeneration strategy – Phase I: to do demo as soon as possible

• Demos of integrated systems based on mature technologies (imported gasifiers + Chinese gas-phase reactors and/or imported liquid phase reactors + imported GT + Chinese ST)

• R&D on key components: gasifiers, liquid-phase reactors, GT– Phase II: Technology cost buy-down via widespread deployment,

localization of manufacture, marginal technological improvements via learning/continuing R&D

– Goal for 2020: 10-20 million t/y reduction in petroleum imports

Tsinghua-Princeton energy research activities

• ASPEN-based design/costing of polygeneration– Design/simulation of co-producing methanol/electricity and

DME/electricity; comparisons with stand-alone fuels production.– Cost estimation: (methodology + cost data base developed by CMI

Capture Group for H2/electricity systems) + (cost estimates for synthesis and product separation developed with industry consultant)

• Task Force on Energy Strategies and Technologies (TFEST), China Council for International Cooperation on Environment and Development (CCICED)– Ni Weidou, Bob Williams Li Zheng, Eric Larson– Beijing workshop (August 2003) 130 high-level participants– Final report to CCICED attracted great attention– A special journal publication reporting on TFEST work

China’s Medium And Long Term Science And Technology Planning Groups

• 20 groups in total dealing with China’s S & T planning to 2020

• Tsinghua participating in more than 10 groups including:– General S & T strategy group—led by Minister of

MOST; Prof. Ni Weidou is deputy leader– Group for energy, resources and ocean—led by Prof.

Wang Dazhong, former President of Tsinghua• Prof. Wu Zongxin: nuclear energy• Prof. Li Zheng: coal and power generation

Tsinghua energy research activities• Establishment of Tsinghua BP Clean Energy & Education Center

– Site of many important energy meetings in China– Site of major national and international research projects

UK Prime Minister Tony Blair at official opening (July 2003)

Fueling Cars in ChinaPart II: Findings from Tsinghua/Princeton Modeling

of Indirect Coal Liquefaction

Research carried out in 2003 by: Ren Tingjin (Tsinghua)

Eric Larson/Robert Williams (Princeton)

LIQUID FUELS FROM COAL

• Gasify coal in O2/H2O to produce “syngas” (mostly CO, H2)

• Increase H/C ratio via WGS to maximize conversion in synthesis reactor (CO + H2O H2 + CO2)

• Remove acid gases (H2S and CO2), other impurities from syngas

• Convert syngas to synthetic fuel in “synthesis” reactor (analysis based on use of liquid-phase reactors)

• Can strive to make fuels superior to crude oil-derived HC fuels: (i) set goals for performance, air-pollutant emissions, cost; (ii) seek chemical producible from CO, H2 that comes closest to meeting goals; (iii) develop that chemical (“designer fuel” strategy)

Challenge: increase H/C ratio (H/C ~ 2 for HC fuels; ~ 0.8 for coal)

GASIFICATION IS BOOMING GLOBAL ACTIVITY

• In 2004• By activity: • 24 GWth chemicals • 23 GWth power • 14 GWth synfuels• By region: • 9 GWth China• 10 GWth N America• 19 GWth W Europe• 23 GWth Rest of worldBy feedstock:• 27 GWth petroleum

residuals• 27 GWth coal• 6 GWth natural gas

• 1 GWth biomassWorldwide gasification capacity is increasing by3 GWth per year and will reach 61 GWth in 2004

Liquid-Phase (LP) Synthesis Technology

Synthesis gas(CO + H2)

Cooling water

SteamCatalystpowderslurriedin oil

Disengagementzone

TYPICAL REACTION CONDITIONS:P = 50-100 atmospheresT = 200-300oC

Fuel product (vapor)+ unreacted syngas

catalystCO

H2

CH3OCH3CH3OHCnH2n+2(depending on catalyst)

Liquid-phase reactors have much higher one-pass conversion of CO+H2 to liquids than traditional gas-phase reactors, e.g., liquid-phase Fischer-Tropsch synthesis has ~80% one-pass conversion, compared to <40% for traditional technology.

Well-suited for use with CO-rich (coal-derived) syngas

ONCE-THROUGH (OT) vs RECYLE (RC ) OPTIONS

• OT option (top): syngas passes once through synthesis reactor; unconverted syngasburned electricity coproduct in combined cycle

• RC option (bottom): unconverted syngas recycled to maximize synfuel production; purge gases burned electricity for process; no electricity export

• Acid gas (H2S + CO2) removal: – H2S level in syngas must be reduced to ppbv levels to protect synthesis catalysts – ~ 95% of CO2 should be removed to maximize syngas conversion to synfuel

Gasification Synthesis

coal

Power IslandExportElectricity

LiquidFuel

Water Gas Shift

ASU airoxygen

SeparationCoalPreparation

Gas Cooling& Cleanup

unconvertedsynthesis gas

water processelectricity

H2S, CO2Removal


coal

Power Island

LiquidFuel

Water Gas Shift

ASU airoxygen





purgegas

H2S, CO2Removal


coal


LiquidFuel

Water Gas Shift

ASU airoxygen





H2S, CO2RemovalGasification Synthesis

coal


LiquidFuel

Water Gas Shift

ASU airoxygen





H2S, CO2Removal


coal

Power Island

LiquidFuel

Water Gas Shift

ASU airoxygen





purgegas

H2S, CO2RemovalGasification Synthesis

coal

Power Island

LiquidFuel

Water Gas Shift

ASU airoxygen





purgegas

H2S, CO2Removal

DME (CH3OCH3)—candidate designer fuel for long-term• Current markets (1.5 x 105 t/y): chemical feedstock; aerosol propellant • Potential energy applications:

– Cooking [where natural gas not available (properties like propane, LPG)]– CI engine vehicles (high cetane # no cold start problem, no S, no C-C bonds

negligible soot, low NOx emissions)– Stationary power generation [gas turbines, CI engine/generator sets, low

temperature fuel cells (easier to reform than MeOH) in long term]• Disadvantages: mild pressurization needed for storage; more engine

development/new infrastructure needed for transportation PROPERTIES DME Propane Diesel Fuel

Boiling point, oC -24.9 -42.1 180 – 370

<< 1

~ 840

Liquid lower heat value, MJ/kg 28.4 46.0 42.5Flammability limits in air, vol% 3.4 – 17 2.1 – 9.4 0.6 – 6.5 Auto-ignition temperature (oC) 235 470 250

Cetane number ~ 60 5 40 – 55

Vapor pressure, atm. 5.1 8.4

Liquid density, kg/m3 668 501

Single-Step DME synthesis

shift)gas(water

on)(dehydrati

(MeOH synthesis)

222 COHCOOH +⇔+23332 OHOCHCHOHCH +⇔

32 OHCH2HCO ⇔+ - 91 kJ/mol

- 24 kJ/mol

- 41 kJ/mol

• One original motivation for DME: higher conversion feasible than with MeOH (MeOH formation is equilibrium limited but dehydration removes MeOH as it forms, enabling equilibrium limit to be surpassed).

• Two catalysts suspended in oil of synthesis reactor• CuO/ZnO/Al2O3 for MeOH synthesis, WG• γ-alumina for MeOH dehydration

ENERGY/CARBON BALANCES FOR DME/ELECTRICITY CO-PRODUCTION SYSTEMS

Energy

losses52% DME out

25%

Electricityout

23%

ENERGY

DME out18%

Electricity out

82%

CARBONOT-V, DME

OT-CC/CS, DME

DME out25%

Energy losses53%

Electricityout

22%

ENERGY

Electricity out

53%

DME out18%

Captured/stored30%

CARBON

•H2S/CO2 co-capture/co-storage (CC/CS) often less costly than separate CO2 and H2S removal + conversion, H2S S.•Fuel cycle GHG emission rate for OT-CC/CS case:Electricity: same as for 40%-efficient coal power plant venting CO2DME: 0.79 X rate for Diesel from crude oil (if no efficiency gain)

0.67 X rate for gasoline from crude (if SI CI engine in car)

PROSPECTIVE COSTS FOR DME (OT-CC/CS CONFIGURATION)

DME output 600 MWElectricity output 526 MWe

CO2 storage rate 1.8 million t/yCountry United States ChinaCoal price ($/GJ) 1.0 0.5 1.0 0.5

Electricity price = IGCC cost (¢/kWh) 4.3 3.9 3.1 2.7

BCOP w/o efficiency benefit ($/barrel)[if DME substitutes for Diesel]

37 32 31 25

BCOP w/efficiency benefit ($/barrel)[if DME CI engine car substitutes for gasoline SI engine car]

24 19 20 15

BCOP ≡ breakeven crude oil price

Fuel/Electricity Co-Production with Decarbonization of Syngas Exiting Synthesis Reactor (OT-Full CO2 C/S)


Coal

ExportElectricity

Liquid Fuel

WaterGas Shift

ASU air

oxygen




water

H2S, CO2Removal

CO2Removal

WaterGas Shift

Power Island

Underground Storage


Coal

ExportElectricity

Liquid Fuel

WaterGas Shift

ASU air

oxygen




water

H2S, CO2Removal

CO2Removal

WaterGas Shift

Power Island

Underground Storage

Energy losses57%

Electricityout

18%

DME out25%

ENERGY

DME out18%

Electric ity out7%

Captured/stored75%

CARBON

Energy losses57%

Electricityout

18%

DME out25%

ENERGY

Energy losses57%

Electricityout

18%

DME out25%

ENERGY

DME out18%

Electric ity out7%

Captured/stored75%

CARBON

DME out18%

Electric ity out7%

Captured/stored75%

CARBON

Fuel cycle GHG emission rate:Electricity: 0.19 X rate for 40%-efficient coal plant venting CO2DME: 0.79 X rate for Diesel from crude oil (if no efficiency gain)

0.67 X rate for gasoline from crude (if SI CI engine in car)

Decarbonized Coal Energy Coproduction in Long Term


Coal

Power Island

ExportElectricity

Liquid Fuel

WaterGas Shift

ASU air

oxygen




water

Export minorelectricityco-product

H2S, CO2Removal

CO2Removal

WaterGas Shift

Power Island

Separation Hydrogen

Underground Storage

purgegas


Coal

Power Island

ExportElectricity

Liquid Fuel

WaterGas Shift

ASU air

oxygen




water

Export minorelectricityco-product

H2S, CO2Removal

CO2Removal

WaterGas Shift

Power Island

Separation Hydrogen

Underground Storage

purgegas

By the time H2 is launched in market as energy carrier:• Decarbonized syngas downstream of liquid fuel synthesis reactor

can be used to produce mix of electricity + H2• H2/electricity output ratio determined mainly by relative

H2/electricity market demands because system efficiencies/costsinvariant over wide range of H2/electricity output ratios

MULTIPLE BENEFITS OF POLYGENERATION

• Economic benefits– Economies of scale– Capital cost savings by avoiding investments in recycle equipment– Operational flexibility

• Oil supply insecurity mitigation role for coal

• Ultra-low air pollutant emissions– Emissions for electricity < for IGCC– “Designer” fuels (e.g., DME) producible via gasification can be cleaner

than petroleum-derived fuels

• Early (pre-climate-mitigation policy) experience with CO2 storage pursuing CC/CS as acid gas management strategy…but this finding contingent on viability of H2S/CO2 co-storage

• Evolutionary coal processing framework for transition to coal-derived H2

fueling cars in china - carbon mitigation initiative

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