Significant increases in the price of liquid transportation fuels throughout the world and concerns about security of petroleum supply has led to a renewed interest in the use of coal as a feedstock for gasoline and diesel production. With recoverable coal reserves of nearly 300 billion tons, the United States has the domestic resources to displace major portions of its petroleum use through the application of coal to liquids (CTL) technology. Fuels derived from this process could be helpful at meeting the stated goals of producing 35 billion gallons of alternative fuels in the US by 2017.
The technologies to convert coal to transportation fuels are not new; the basis for current applications are derived from research initially performed in the 1920's that has been modified and improved to meet domestic needs. There has historically been limited interest in the technology due to low oil prices and abundant supply. Nexant has recent performed work for the US Department of Energy and private clients in determining appropriate designs, estimating the cost, and evaluating US federal and state policy impact on future projects. Project examples include:
- Gilberton Coal-To-Liquids (WMPI): In this on-going project, Nexant is the owner's engineer for WMPI, expected to be the first commercial coal to liquids plant in the United States. The plant will use Shell gasifier to produce 40-MW power and 5,000-BPD FT liquids from 4,700-tpd waste coal. As the owner's engineer, Nexant has already conducted a preliminary plant design and cost estimate as a scoping effort for the project, has assisted WMPI to obtain environmental permits for the plant, and will review and monitor the detailed engineering, construction, and plant startup efforts to be provided by Shell and its German engineering contractor, Uhde.
DOE Fact Sheet on WPMI Project
- QGX Mongolia Coal to Liquids Scoping Study: The objective of this screening study was to select the best gasifier and liquid product (methanol, DME, olefins, or Fischer-Tropsch (F-T) Liquids) from Mongolian coal resources. Nexant initially surveyed the market demand and pricing in China for the various products to be produced from QGX's coal resources. The Practice then screened and selected the most promising gasifier based on the properties of the coal resources and the commercial maturity of the gasifiers. Finally, Nexant conducted a preliminary plant design and cost estimate for the production of each candidate product for QGX to assess its economics based on their financial analysis criteria.
QGX Press Release
- Beluga Coal Gasification Feasibility Study: Nexant participated on the DOE/RDS team that performed an analysis of using coal gasification to replace natural gas in Alaska for ammonia and urea synthesis. In Phase 1, the Agrium fertilizer plant in Nikiski serves as the case study site and customer for product gases (including hydrogen, nitrogen and carbon dioxide), steam and power from the coal gasification facility. Nexant performed design assistance in each phase of the project, and performed all financial modeling using the Nexant developed Power Systems Financial Model (PSFM). This model was originally developed in May 2002 and has since been modified to incorporate additional functionality. The model has been used in numerous gasification studies, and is now the standard used by NETL for gasification project financial analysis.
Beluga Final Report
- Baseline Technical and Economic Assessment of Coal to Fischer-Tropsch Liquids Facilities: Nexant is currently a member of the RDS/NETL team that is exploring a number of design options for coal to liquid transportation fuels. This project is in four phases: small-scale (6,000 BPD) plants integrated with a utility IGCC, large-scale (50,000 BPD) stand alone plants, advanced large-scale plants with carbon capture and storage, and policy analysis of how future carbon constraints could impact coal-to-liquid plant financials and design. Nexant developed models for FT reactor and financial analysis are being used during this project.
Baseline 50,000 BPD DOE NETL Report
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Tan-Ping Chen
Senior Vice President, Energy Technology
Tel: +1 415 369 1077
Email: tpchen@nexant.com
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