TechnoTechno--economic analysis of economic analysis of acid gas removal solutions for acid gas removal solutions for SNG applicationsSNG applications

Ganesh NayakGanesh Nayak

© 2014 UOP LLC. All rights reserved.

Ganesh NayakGanesh Nayak

2014 Gasification Technologies ConferenceWashington, DCOct 26-29

Criteria for successful SNG plant in China

22UOP 6196-2

Drivers

Technology

Economics

UOP Company ProfileServing the Gas Processing, Refining & Petrochemical Industries

Profile — Significant Technology Position

Business Units:• Gas Processing and Hydrogen (GP&H)• Process Technology & Equipment (PT&E) • Catalysts, Adsorbents & Specialties (CA&S)• Renewable Energy and Chemicals (RE&C)

Offering: • Technology, catalyst & services to the refining,

petrochemical and gas processing industries

• Supplier of molecular sieve adsorbents to process and manufacturing industries

Sales: Breakdown

Equipment

45%

Licensing

7%

Services

13%

Products

35%Equipment

Products

Services

Licensing

3

and manufacturing industries

UOP Facilities — Global Footprint Sales: Geographic

North

America

32%

Asia Pacific

19%

China

12%

Middle East

9%

South

America

9%

E&A 9%

CIS 5%India

5%

UOP Offices

UOP Manufacturing Sites

• 20 Offices• 17 Countries• 12 Manufacturing Facilities• 5 Engineering Centers

Worldwide HeadquartersDes Plaines, Illinois (suburban Chicago)3,500+ Employees

Global

Customers

UOP 6196-3

Natural Gas Dynamics in China

2. Substitute Natural Gas – potential to reduce supply-demand gap

1. Supply - Demand gap

• NDRC State Mandate – increase NG supply to reach 400bcm by 2020

• Promote SNG projects in coal rich regions and supply SNG to Beijing-Tianjin-Hebei to reduce

• Growth rate expected to be over 15% over next 5 years

• Limited domestic production, unable to meet rising demand

– Increasing reliance on imported gas through WE pipelines and LNG imports

• NDRC implementation of NG utilization policy

– Usage and production of natural gas

4SNG growth to come from robust techno-economic solution and State Mandates

3. Techno-economic solution key to successful investment in project

• Promote SNG projects in coal rich regions and supply SNG to Beijing-Tianjin-Hebei to reduce particulate emissions

• SNG capacity to reach 9bcm by 2015 and 32bcm by 2017

• Translates to over 20 large scale projects over next 5 years

• Major promoters include SOEs and NOCs

• NDRC State Mandate – SNG plants to be built under strict environmental regulation compliances

• Address water supply security to SNG projects

• Monetize low rank coal � maximize NG – coal price spread

4UOP 6196-4

Source: Notification on Several Issues for Establishment of Long Term Mechanism for Stable Natural Gas Supply Security – 2014 NDRCNotification on Issuance of Energy Industry Enhancement of Airborne Pollution Prevention & Treatment Program – 2014 NDRCAsiachem

Gasification Economics & Efficiencies

Gasification/ ASU Shift/Cooling AGRU Methanation

SNG case

Coal SNG

Gasification + ASU

WGS AGRU Methanation

EfficiencyLosses -25% -3% -11% 61%

CAPEX Breakdown 62% 22% 16%

Source: University of Kentucky Study on SNG and CTL, 2007China SNG demo project information

Lower CAPEX critical factor in technology selection 5UOP 6196-5

Case Study for Economic Analysis of SNG plant

1. Basis

• Coal Price: $2.00/mmbtu (HHV = 10,000 Btu/lb � $45/ton)

• SNG Plant size: 2billion Nm3/yr � 214,000mmbtu/day

• SNG Plant CAPEX: $2.1billion � $9,800/mmbtu

• SNG Plant OPEX: $113million/y � $1.60/mmbtu

2. Configurations

6

CO2

H2S

Coal

O2

ASU

SNGSyngas

Gasification MethanationCO ShiftUOP

SeparALLProcess

UOP 6196-6

Clean

Syngas

Source: China demo SNG project information … Asiachem

University of Kentucky Study on SNG and CTL, 2007

Natural Gas Economics in China

12.0 10.4

8.5

LNG imports SNG Domestic NG

NG cost in China, $/Nm3

1.82

9,494

1.51

55.90

2.95

11,190

1.85

59.69

4% 6% 8% 10% 12%

Feedstock Price, $/mmbtu

Capex, $/mmbtu (per day basis)

Opex, $/mmbtu

SNG Plant Efficiency (%)

IRR (Weighted Average Cost of Capital)

7Impact of OPEX on SNG economics is not as significant as CAPEX 7UOP 6196-7

Interpretation

• SNG could have potential to displace expensive LNG imports

• IRR is highly sensitive to feedstock price followed by CAPEX of SNG plant

• SNG project becomes feasible when:

– project is at coal mine mouth

– variability around CAPEX is lower

What is the UOP SeparALL Process? Next generation solution of UOP SelexolTM processSelective removal of H2S, COS, & CO2 via absorption/ regeneration processOffered as licensed technology

• Uses a “next generation” physical solvent (SELEXOL™ MAX Solvent) from DOW Chemicals

• Uses a typical solvent-extraction flow-scheme

• Loading directly proportional to partial pressure

Product Quality

• Can be essentially sulfur free

• Project specific CO2 capture and quality

• Project specific acid gas H S concentration

8

• Project specific acid gas H2S concentration

Physical vs ChemicalTypical Gasification Application

High Pressure is advantageous

Acid Gas

FeedGas

Treated Gas

Solv

ent Loadin

g

Physical Solvent

Chemical Solvent

Partial Pressure

UOP 6196-8

SELEXOL MAX Solvent Characteristics

• SELEXOL MAX Solvent: A physical solvent

– Chemically similar and completely compatible with SELEXOL Solvent

– Clear fluid that looks like tinted water

• Regenerated by changing pressure, temperature or applying a stripping gas

• Unique selectivity characteristics desirable for gasification syngas treating

Relative Solubility Data

9

– H2 ~ 1

– CO ~ 2.2

– CO2 ~ 76

– COS ~ 175

– H2S ~ 680

– CH4 ~ 5

9

SELEXOL MAX Solvent = Selective

UOP 6196-9

Two Basic Flow-schemes

Sulfur removal only

• Typically for power applications

• Can reduce treated gas to any desired sulfur level

• One solvent absorber with solvent regeneration

Sulfur removal with separate CO2 removal (CCS or chemicals production)

• Typically for chemicals, SNG or coal to liquids applications

10

• Involves more stringent product specifications

• Integrated solvent absorbers and solvent regeneration

10UOP 6196-10

Lean Solution

Stripper

Reflux

AcidGas

CO2Absorber

CO2

TreatedGas

� CO in the CO2 stream is ~500 ppmv

� CO2 purity as high as 99.7 mol%

� Sulfur in treated gas to less than 0.1 ppmv

� CO2 in treated gas below 1% is achievable

� Sulfur in CO2 as low as 2 ppmv

� Adjustable acid gas composition

Process Flow SchemesSulfur Removal & CO2 Capture—Conventional

SulfurAbsorber

RefluxPump

StripperReboiler

H2SConcentrator

PackinoxExchanger

Lean SolutionFilter

RefluxAccumulator

ExportWater

MakeupWater

FeedGas

UOP 5491-1011

UOP SeparALL Process Advantages

• Mild chilling

• Simple flow schemes with few pieces of equipment

• Reduced solvent losses

• Absorbs NH3, HCN and other trace contaminants,without the need for additional equipment

• Removes metal carbonyls• Removes metal carbonyls

– Metal carbonyls in treated syngas decompose at gas turbine burners and potentially plate-out on the gas turbine blades

– Metal carbonyl can also act as catalyst poisons for chemical applications

12UOP 6196-12

Through its improved efficiency and next generation

technology, the SeparALL process can reduce capital

expenditures by up to 10 percent and operating

expenditures by more than 20 percent.

• Enhancements include:

- New SELEXOL MAX solvent

- Use of static mixers

- Nitrogen stripping (when appropriate)

- Low pressure reabsorber column

- High efficiency equipment

�Packinox heat exchangers

�Raschig column internals/packing

Improvements in Next Gen SeparALL Process

13

�Raschig column internals/packing

• Integrated optimization includes:

- Detailed study on the impact of acid gas H2S% on the SeparALL unit and SRU unit

- CO shift location

- Use of hot syngas as heating media for SeparALL Process reboiler

- SRU/ PSA tail gas recycle streams

UOP 5254-15Next Gen SeparALL process substantially improves Economic Lifecycle CostsUOP 5254-15

13

SeparALL Competitiveness Case Study - SNG

Feed Properties

Flow Rate, Nm3/h 3,300,000

H2, mol% 47.0

CO, mol% 14.0

CO2, mol% 38.0

H2S, mol% 0.5

Product Requirements

H2 74.0

H2/CO molar ratio 3

CO2, mol% 3

H2S to SRU, mol% >30

Total sulfur, ppmv <0.1

CAPEX OPEXMillion RMB/y

Million $

14

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

$450.0

SeparALL Others

Initial Solvent Fill

Equipment

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

SeparALL

Solvent reload

Nitrogen

CW

MP Steam

LP Steam

Power

Million RMB/yMillion $

SeparALL’s CAPEX advantage contributes to improving SNG plant economics14UOP 6196-14

SeparALL Competitiveness – Perceptions/ Reality

135

14

26

159

16

30

220 230 240 250 260 270

Capex

Opex

Initial Solvent

Sensitivity of SeparALL ELC, $M

Downside

Upside

OPEX

• Solvent has high CO2 absorption capacity resulting in increased gas processing capacity

• Substantial process optimization to reduce both CAPEX and OPEX

– Utilization of hot syngas in regenerator reboiler

– Colder lean solvent temperature to maximize solvent acid gas capacity

15

26 30Initial Solvent

Solvents

• SeparALL CAPEX (including initial solvent cost)

• Solvent payback period

• Solvent losses & inventory costs

• Solvent supply guarantee

solvent acid gas capacity

– Colder semi-lean solvent temperature to enhance solvent acid gas capacity

– Non-thermal solvent regeneration at higher pressure reduces recycle compression power

– Internal heat integration reduces refrigeration demand

AGR more sensitive to CAPEX than OPEX

UOP 6196-15

Plant Start-up Application Production Feedstock

Sarlux IGCCItaly

2000Power

H2 Production550 MW net40000 Nm³/h

VisbreakerResidue

API IGCCItaly

1999 Power 250 MW netVisbreakerResidue

Commercial Experience in Gasification

16

CoffeyvilleResources

USA2000

Ammonia Urea

21 T/h62 T/h

Petcoke

OPTI CanadaCanada

2008H2 Production

& Fuel Gas337,000 Nm³/h

syngasAsphaltene

Residue

Duke Energy IGCC 2012 Power ~600MW net Coal

UOP 6196-16

To summarize …

17

Our technologies and products are designed to deliver superior performance, safety and value when considered for a gasification project:

• Enhanced availability and reliability of processes and products

• Lower capital expenditure and operating costs resulting inlower cost of production

Acid Gas Removal PSA Sulfur Recovery

17UOP 6196-17

DriversTechnology

Economics

18

Q u e s t i o n a n d A n s w e r

18UOP 6196-18