Coal and Liquid Fuels - Stanford University - The Global Climate
Transcript of Coal and Liquid Fuels - Stanford University - The Global Climate
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Coal and Liquid Fuels
Richard A. BajuraNational Research Center for Coal and Energy
Edward M. EyringUniversity of Utah
GCEP Advanced Coal Workshop March 15-16Provo, Utah
File: zert/utah talk
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Outline
• Concerns over liquid fuels supply• Case for coal liquids• History and status of coal liquefaction• Potential DOD initiative• Closing comments
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1970 1980 1990 2000 2010 20200
50
100
150
200
250
Qua
drill
ion
Btu
Oil
Renewables
Nuclear
Coal
Natural Gas
World Primary Energy Consumption by Fuel Type, 1970-2025
EIA, International Energy Outlook 2004
39% of World’sEnergy Supply
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Reliable Supply of Liquid Fuel Critical
Transport
Residential & Commercial
Industrial
Electric
U.S. Petroleum Uses
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Imports Approach 70% by 2025
54%70%
1970 1980 1990 2000 2010 20250
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10
15
20
25
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Domestic Supply
Consumption
History Projections
Net Imports
Mill
ion
Bar
rels
per
Day
DOE/EIA AEO 2004U.S. Oil Supply and Consumption (MBD)
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Saudi ArabiaCanada
IranIraqUAE
KuwaitVenezuela
RussiaLibya
NigeriaUnited States
ChinaMexico
QatarAlgeriaNorway
KazakhstanBrazil
AzerbaijanOman
Rest of World0 50 100 150 200 250 300
Billion Barrels
:World Oil Reserves by Country
Total 1,266 Billion Barrels
"Worldwide Look at Reserves and Production."Oil & Gas Journal, 12/22/03
Much of World Oil Supply Located in Politically Unstable Nations
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-505
101520253035
World Oil Demand Increasing Sharply
IEA World Energy Outlook: 2003 Insights
Mill
ion
Bar
rels
per
Day Incremental Oil
Demand by Sector (2000-2030)
OECD Non-OECD
Other SectorsTransportIndustryPower
Developing counties / economic recovery driving demand growth
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More Concerns:Liquid Fuel Supply
• World oil depletion– Even conservative Deutsche Bank
recognizes oil depletion is an issue in next few decades*
• Climate change (~40% of GHG from transportation fuels)
• Local air quality– Particularly in developing countries
*Deutsche Bank Research, Energy Prospects after the Petroleum Age, December 2, 2004
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Long Term VisionFuels with
• Very low or zero GHG emissions
• Zero local pollutants • Improved energy
source diversityChallenges
• Engine/fuel interdependency• Infrastructure adaptation• Government involvement• Consumer acceptance • Economics
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DOE’s Case for HydrogenIt’s Abundant*, Clean, Efficient, And Can Be Derived From
Diverse Domestic Resources
Biomass
Hydro
Wind
SolarGeothermal
Coal
Nuclear
NaturalGas
Oil
With
Car
bon
Sequ
estr
atio
n
High Efficiency& Reliability
Zero/Near-ZeroEmissions
Distributed Generation
Transportation
* (but not as H2)
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H2 Meets Vision Criteria But . . .• Automotive fuel cells are early on cost and
experience curve• Production of H2 from renewable or low carbon
sources – limited availability and costly• H2 storage and distribution need breakthroughs to
be cost effective
Increasing recognition that H2 “solution” is well into future
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Implication For Mid Term
• Relying on H2 economy to deliver and doing nothing else is not acceptable option
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All Eggs in One Basket
[H2]
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What if We Are in the Wrong Basket?
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Many Potential Options for Mid Term
• Natural gas fuels– CNG– LNG
• Electricity / batteries • Biofuels • Oil sands • Oil shale• Coal liquids - Today’s Talk
Energy Efficiency
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Coal data: BP Statistical Review, June 2004;Oil & gas data: EIA, Advance Summary U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves, 2003 Annual Report, September 22, 2004
Why Coal For Liquid Fuels?
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100
200
300
Coal Oil Gas
U.S. Reserves / Production RatioYears Supply at Current
Production• Abundant domestic reserves
• Relatively low, stable prices
• 800 billion barrels of oil equivalent
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Two Approaches to Converting Coal to a Liquid Fuel
IndirectGasify coal and
rebuild small molecules to
desired product
DirectBreak coal down to maximize correct size
of molecules for liquid products
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Direct Liquefaction
• Reacts coal with H2– Usually in presence of a liquid solvent
• Aggressive reaction conditions– Temperatures > 400°C– Pressures > 100 atm– Appropriate catalyst
• Produces a syncrude – Can be refined to produce gasoline or
diesel fuel– More conversion than indirect process
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Indirect Liquefaction
• Involves gasification of coal to produce a syngas– Mixture of CO and H2
• Syngas converted into a liquid fuel via processes such as– Fischer-Tropsch (FT) process– Mobil Methanol-to-Gasoline (MTG) process
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Liquids Fuels Can Be Produced from Coal
Germany• Had nine indirect and 18 direct liquefaction plants at end of WWII
• Produced 4 MMT/yr fuels• Met 90% of nation’s needs
South Africa• Developed coal liquids industry from 1950s through the mid-1980s
• Three coal-to-liquids facilities
• Produced 10 MMT/yr fuels at peak
• Met 60% of nation’s needs
China• Planning a 1 MMT/yr direct liquefaction plant for 2007
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U.S. Had Aggressive Program from Mid 1970’s to Early 1980’s
• Many pilot and process development scale coal-to-liquid facilities
• U.S. Synthetic Fuels Corporation (SFC) support• Promising technologies included:
– Solvent Refined Coal (Gulf Oil)– Exxon Donor Solvent – H-Coal (Hydrocarbons Technologies
Incorporated) [adopted by China]
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Cost: A Key Coal Liquefaction Challenge
• Mitretek study indicate coal liquefaction should become viable if world oil price remains above $25 per barrel.– Polygeneration plant (produces liquids and
electricity) • DOE studies estimate cost of producing coal liquids at
$30 per barrel. – Upgrading FT coal liquids costs less than refining – crude oil
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Status of U.S. Support forCoal Liquids Research
• DOE has had modest coal liquids program since SFC days
• DOE has not requested funding for liquid fuels research in recent years
• Congress has continued to support projects in FE and EERE– Supports its interests through earmarked
programs• Some work relevant to liquefaction continues in
other DOE programs, particularly H2
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Polygeneration
• Polygeneration– Higher efficiency and more effective use of capital– Good prospects for cost-competitive production of clean
energy carriers and chemicals
• Polygeneration could meet most requirements for centralized production of electricity and clean fuels
Gasification SeparationSynthesis
H2
coal
Gas Turbine CC
methanol
ElectricitySeparation
CO2
DMEMethanol
Water Gas ShiftClean up
ASU air
oxygen Town gas
Carbonylation Acetic acidCO
enhanced resource recoveryor aquifer sequestration CO2
enhanced resource recovery or aquifer sequestration
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DOE’s FutureGen Includes Liquid Fuel Capability
By-ProductsUtilization
Fuel Cell
Electricity
ProcessHeat/
Steam
Gasification
PowerH2/CO2 Separation
Gas Cleaning
Figure 2
EnhancedOil Recovery
CoalSeams
SalineReservoir
CO2 Sequestration
H2
CO2
Fuels and Chemicals
High EfficiencyTurbine
OxygenSeparation
Coal
Transportation(fuel cell vehicles)
O-2
e–
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Coal Liquids and Greenhouse Gas Emissions
• Polygeneration/FutureGen approach makes CO2capture possible for fuel production
• High quality of FT liquids enables use of higher efficiency engines
• Indirect liquefaction’s use of the gasification process provides bridge to coal-to-hydrogen future
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1970 1980 1990 2002 2015 20250
400
800
1,200
1,600
Eastern
Western
Total
History Projections
Coal Production by Region
Annual Energy Outlook 2004, January 2004
Mill
ion
Shor
t Ton
s
Utah and other western states could be well
position to capitalize on the
jobs that a domestic coal-to-liquids industry
would create
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DOD’s Interest in Liquid Fuels• Nation’s largest energy user
– Uses 1% of all energy in U.S.– Probably world’s largest oil buyer
• Uses five billion gallons of petroleum a year • Concern about energy security
– SPR has limited supply and lifting capacity• Concern over cost of battlefield fuels ($300 per
gallon for delivery of fuel for ground forces in a war theater) – Seek means of producing fuels closer to point of use
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Under DiscussionA DOD Clean Fuel Initiative
Vision: Catalyze 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
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Benefits of a Coal Liquefaction Initiative
• Cleaner fuels reduce NOx and particulate emissions; enable use of higher efficiency engines
• Coupling with polygeneration enables partial carbon capture and builds bridge to H2 economy
• Produce more jobs for Americans
• Improves national security by lessening reliance of foreign oil
• Improves balance of trade
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Systems Integration
MembranesLower Cost Gasification
ImprovedCatalysts
ComputationalChemistry
FuelsTesting
Technology Development Key To Economic Viability and Real Markets
AdvancedTechnologies