Upgrading of Mongolian LigniteTechnologies and Proposal for Next Steps

Workshop April 10, 2008 Ulaan BaatarHelmut Vierrath, Germany

World Bank Consultanthelmut@vierrath.de

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Role of Lignite/Bituminuos Coal in Germany

• Germany has long history in the use of lignite and bituminuos coals.

• Lignite is a major source of energy (1/3) in Germany mainly for electricity generation, for briquettes, coke briquettes and coke for gas purification, waste water treatment and the metallurgical industry.

• German experience available for lignite/coal pyrolysis, briquetting of coal and coke, gasification for liquid fuels, SNG etc. production.

• Coal plays a similar role in both countries.

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Upgrading Technologies and Effects

Process Smell Dark Smoke Sulfuremissions

Otheremissions

Remarks

Lignitebriquettes

only at ignition and if not burnt properly

none less less Investment lower than otherUpgrading alternatives

Lignite cokebriquettes

none none much less

less Binder required

SNG* fromlignite* Substitute Natural Gas

none none virtuallyzero

virtuallyzero

Highest investment because a gas grid is also required

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Briquetting of Lignite• The standard technology for lignite: Coal

crushing, milling < 2mm, drying < 20% moisture, briquetting on piston press without binder. Applicable for many lignites.

• Alternative: Roller presses with binder (clay, starch, organic binders).

• Lignite briquettes can qualify as smokeless fuelunder UK Clean Air Act – depending on lignite composition.

• It is important to test the total process chain: Briquetting->transportation->storage-> combustion-> public acceptance

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Coking Processes for semi-coke 700-900°C or coke >> 900°C

• Fluidized bed• Salem hearth furnace • Rotary kiln with external firing• Special processes (e.g. LR, shaft furnace)

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Salem Hearth FurnaceCapacity: 10-15 tph

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Properties of Hearth Furnace Coke

• Particle size: Between < 0,125 – 5mm• Volatiles: 3 % wt.• Surface: 300 m2/g

Hearth furnace coke is also very well suited for water treatment, flue gas purification (mercury, dioxins etc.), metallurgical industry.

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Rotary Kiln Integrated into a Power Plant

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Coke Briquetting

• Briquetting on roller press• Binder required (clay-> increases ash

content; starch, molasses, other organic binders)

• Volatile content should be high enough (~ 10%) that briquettes can easily be ignited

• Volatile content can be controlled mainly by temperature (and residence time).

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DGC* SNG Plant USA14 Lurgi gasifiers, 16,000 tpd lignite, 170 mmscfd SNG/190,000 mn3/hr @ 975 Btu/cft=38,700kJ/mn3 Investment cost in 1984: 2.1 Billion USD; Grid required. * Dakota Gasification Company

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Proposal for Next StepsCoal Testing and Establishment of Design Basis

Technologies available for the production of clean solid fuels, SNG, CtL from lignite and bituminous coal in environemntally friendly manner.• Coal selection and testing for various products• Coal specification with ranges• Plant capacity determination• Product(s) selection• Environmental regulations• Site specifics (integration with existing plants, availability

of utilities, infrastructure)• Accessibility (requirement of road, rail, power…)

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Feasibility Study

• In a feasibility study the investment and O&M cost should be determined with an accuracy of +/- 15-20% with

• 1. Order optimization of the plant configuration, product slate, capacity, etc.

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Typical Time Schedule• Test program: 6-9 months• Determination of the Design Basis: in parallel• Feasibility Study. 12-18 months• Request for proposals: In parallel with

below/above• Decision making, financing, project pre-

paration, permitting: ~ 9 months• Plant construction, start up: 36-42 months

TOTAL: 6+ years