Lignite Technology Development LEC Annual Meeting · (EOR and deep saline) •>250 MMbbI oil from...
Transcript of Lignite Technology Development LEC Annual Meeting · (EOR and deep saline) •>250 MMbbI oil from...
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Lignite Technology Development
LEC Annual Meeting
Bismarck Event Center
Mike Holmes
April 4, 2018
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Research & Development
Priorities for the LEC
• Support continued options to enhance performance of the existing fleet
• Invest in transformational research (Next generation of Lignite conversion systems that integrate CO2capture)
• Focus on Carbon Capture Utilization & Storage (CCUS)• Leverage international R&D breakthroughs• Renewed Focus
– Additional value propositions for lignite– Polygeneration opportunities
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Historical Successes
• Thriving with high-sodium coal
Optimized operations and cleanability
Meeting regulations for primary pollutants
Addressing potential future NOx challenges
Addressing Hg and trace elements
Costs reduced by more than 20X
Support of only US coal-to-synfuels plant
DGC adding urea to product suite
Spiritwood – industrial
complex
Dryfining – coal upgrading
Lignite mining, use, and
reclamation advances
through data,
instrumentation & controls
To highlight a few
Basin Electric Antelope Valley Station and DGC Synfuels Plant www.dakotagas.com
North Dakota Carbon Solutions Needs
EOR
Partners
Existing Plant Solutions New/Replacement Solutions
Project Tundra Allam Cycle
CO2 Utilization
and Storage
Solutions
PCOR and
CarbonSAFE
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• North Dakota has an ideal situation for CO₂ management
– CO₂ emission sources are in close proximity to CO₂ storage targets
– Between 23 and 78 Gt of storage available within the state between saline formations and oil reservoirs
Much of the Recent Focus Has Been on Carbon
Management - North Dakota is Ideally Suited
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• Based on the following:
– Traditional evaluation techniques
– North Dakota Industrial Commission OOIP (original oil in place) estimates
– 4% incremental recovery
– Net utilization of 5000 and 8000 ft3/bbl
• 2 to 3.2 billion tons of CO2 needed
• Could represent 50 to 100 years of North Dakota’s current CO2 emissions from coal-fired power!
Bakken CO2 Demand in North Dakota
– A 30,000-ft View (EERC)
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AN INTEGRATED SOLUTION: HOW IT WORKS
• 25 billion tons of recoverable lignite coal
• 7 lignite-fired power plants
• Numerous potential locations for CO2 storage (EOR and deep saline)
• >250 MMbbI oil from conventional fields
• ~4000 MMbbI potential from the Bakken Petroleum System
North Dakota is rich in the key components to
build this integrated platform, and we are
developing this integrated energy and carbon
solution right now!
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Outreach
• Outreach events held at both sites (includes school tours & classroom presentations)
Test Wells
• Drilling Completed at Mercer County (analysis of cores and well logs underway)
• Drilling Completed at Oliver County (analysis of cores and well logs underway)
Modeling Underway for both sites
Economic Evaluation Based on Results Continues
Management and Reporting
• Conference calls with project team continue with a primary focus on outreach.
• Reporting underway to complete various milestones
North Dakota Integrated Carbon Storage Complex Feasibility Study
Led by EERC - Wes Peck with industry partners: ALLETE Clean Energy, BNI Energy, Basin Electric, and Minnkota Power.
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PROJECT TUNDRA – INTEGRATED SOLUTION FOR EXISTING PLANTS
• Demonstrates truly “all of the above”
energy strategy.
• Allows utilization of the most abundant fuel
in the United States – coal.
• Allows a continued platform for U.S.
Energy Security & Dominance – utilization
of coal resources and access to
unavailable oil reserves with captured
CO2.
• Maintains viability of existing fleet without
stranded investment.
• Provides a solution for carbon globally.
Carbon Solutions Are Strategic to North Dakota and Industry
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Project CarbonLed by EERC - Jason Laumb with industry partners: ALLETE Clean Energy., BNI Energy, and
Minnkota Power Cooperative.
Pilot-scale Amine Testing
Planning for amine tests with KS-1 solvent in April.
Testing at MRY scheduled for Summer 2018.
Economics of Carbon Capture
Tasks will be in full swing following amine testing.
Aerosol Management
Procured equipment to support sampling activities.
Completed Construction of amine emission reduction unit in support of
pilot-scale tests. System shakedown in progress.
Management and Reporting
Weekly conference calls with MHIA and MHI Japan.
Meeting held in Tokyo with MHI and key stakeholders to discuss Project
Carbon.
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Pathway to Low-Carbon Lignite Utilization
- Allam Cycle
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Allam Cycle Preserves the
“Coal Option”
The Allam Cycle is next generation technology.
• The turbine is driven by supercritical CO2
• Near-zero emissions - 100% of the CO2 available for utilization.
• Efficiency estimates nearing 50% - 1.4x higher than the U.S. coal fleet
average.
• Economic Power Generation
• $0.04-$0.05 /kWh with sale of CO2
• $0.06-$0.07 /kWh without the sale of CO2
• A 25 MWe natural gas-fired demonstration plant is currently being
constructed in Texas.
• Further development creates a path forward for continued utilization of
coal.
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Allam Cycle / Pathway to Low-Carbon Lignite UtilizationLed by EERC – Jason Laumb with industry partners: Minnesota Power / ALLETE Clean Energy, BNI Energy, Basin Electric Power Cooperative, and Dakota Gasification Company
Corrosion Management
Dynamic tests completed, final analysis underway. Several materials performed favorably.
Gasifier Selection
Three gasifier platforms identified for use with lignite coal. SE (ECUST), BGL, SES (U-
Gas)
Impurity Management
Impurity management tests completed. Final data analysis and reporting to be completed
in coming months.
Syngas Combustion
La Porte facility has received combustor test rig. First natural gas fire expected in April.
Pilot-scale Planning
Identified two locations of hosting coal Allam Cycle Demonstration. La Porte and DGC.
Management & Reporting
Draft final report submitted on 12/29/2017.
Weekly conference calls with technical team.Additional DOE award ($700K) to expand engineering for demonstration plant; Phase 1 of 3 possible.
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Leveraging International R&D
• Carbon Management - Incorporating learnings from commercial systems and technology development• Boundary Dam CCUS in Saskatchewan
• Memorandum of Understanding for collaboration on CCUS signed by Governors of North Dakota, Montana, and Wyoming, and the Premier of Saskatchewan
• Initial meeting held in March to review opportunities to grow collaboration
• Parish 8 CCUS system in Texas (Petra Nova)• Project Tundra and Project Carbon Activities include close collaboration with
Mitsubishi (MHI Americas and MHI Japan)
• Additional Value Opportunities for Lignite – Collaboration with Brown Coal Innovation Australia (BCIA)
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Additional Value Opportunities for Lignite
• Current Commercial Uses
• Technology Developments
Brown Coal Innovation Australia (BCIA) joined LEC in 2018• BCIA current focus enhanced uses for brown coal• LEC presentation at BCIA meeting in February, 2018 • Discussing potential joint study where we each fund our
counterparts and foster collaboration
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Coal Gasification for Fuels, Chemicals and
Hydrogen
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Liquid Fuels and AdditivesGasoline Jet FuelDiesel
Syngas
CO2
Heat
Nitrogen Fertilizers
Chemicals
Electricity
EOR
Lignite
Direct or Indirect
Liquefaction
Fertilizer
• Approximately 1 ton of ammonia (NH3) can be produced from 1.5 tons of coal
• Hydrogen from coal gasification, combined with nitrogen produces ammonia
• Further processing of ammonia with coal derived CO2 produces urea fertilizer for easier handling and storage
• Developmental electrochemical processes may provide low-pressure, smaller scale alternative to traditional thermo-catalytic approaches
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Carbon Based Products
• Activated Carbon• Facility in final design stages in
Valley City, North Dakota
• Carbon Black• Semi-continuous pilot unit at the
EERC, proof-of-concept complete
• Carbon Fiber• Coal-derived pitch has unique
properties• High value product with growing
market
• Carbon Nanotubes and graphite• High value product with growing
markets
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Hydrocarbon Production from Direct Coal Liquefaction• Produces aromatic and cyclic
hydrocarbons• complimentary paraffin hydrocarbons
produced through gasification and gas-to-liquid processes
• One ton coal can produce 100-120 gallons of hydrocarbon liquid
• High carbon conversion efficiency to fuel
• Technology development needed to optimize continuous operation and reduce capital expense
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High Value Material Extraction
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• Pioneering work by the North Dakota Geologic Survey has led to a number of funded projects investigating recovery of high value materials from coal and byproducts:– Characterization study of coal and byproducts across
North America
– Rare earth element extraction from ND lignite
– Rare earth element extraction from coal combustion byproducts
• Technology development is needed to optimize and improve economics of processes that extract and concentrate rare earth elements and other high value minerals.
Why are REEs Important?
• Unique properties makes them very useful in numerous applications
• Often termed “Chemical Vitamins” → low usage, high impact
• Essential materials for many high-value and critical applications
Magnets, batteries, electronics, computers, auto vehicles, renewable energy, military defense…and many many others
REEs make possible $7 Trillion in value-added products globally
Unique properties prevent replacement by other materials
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Why Research REEs from Coal?• Several REEs identified as ‘critical’ – mostly the less
common HREE
• China dominates global market - 83% of production in 2016
• U.S. 100% import reliant
• Chinese production rich in the HREE; U.S. deposits deficient
• Chinese reserves dwindling (HREE-rich ion adsorbed clays)
– Current deposit for ~100% supply of HREE gone by 2025
– Growth market sectors are dependent on HREEs – wind turbines, HEVs and many others
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Leonardite
Leonardite is an oxidized form of lignite, rich in humic acid.• Existing agricultural uses
• soil conditioner to improve moisture retention and reduce toxins
• Animal feed additive, source of trace minerals
• Growing market in oil field fluids• Leonardite, used as an additive in
water based drilling fluids
• Global humic acid market was $325.6MM in 2014 (LeonarditeProduction, LLC)
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Waste Heat and Combined Heat and Power• Enormous potential for waste heat use
• Eight ND power plants = 7500 MWth
• Space heating for 3.2-million homes
• Low cost natural gas challenges economics of low-grade waste heat utilization
• The US Department of Energy is working on new technology and approaches to improve efficiency of waste heat use
• Combination of CO2 and waste heat could enhance greenhouse agriculture
• Combined heat and power (CHP) achieves higher energy efficiency than electricity production alone.
• Spiritwood and Coal Creek Stations in ND provide electricity to the electrical grid and steam to co-located agricultural industries
• Some commercial plants use steam for oil refining, natural gas processing, water desalination, or pharmaceutical production.
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Resource Recovery from a Coal Fired Power Plant to Enhance
Agricultural Production in Open Field and Greenhouse Facilities
Plant Integration: Waste heat used for greenhouse heating demands CO2 & Flue gas used to enhance plant growth Plant water / condensate can supplement irrigation
Updates: First planting cycle complete (data analysis ongoing) Low and intermediate concentrations of CO2
improved plant growth and highest level was antagonistic
Second planting cycle to include varied levels of CO2
Coal Beneficiation with Waste Heat
• Benefits:• Reduced coal consumption
• System efficiency improvement
• Reduced emissions• SO2
• NOx
• Hg
• CO2
• Opportunity to utilize plant waste heat
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Advanced Reclamation Strategiesfor North Dakota coal mine lands
Questions??