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
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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
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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
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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
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CO2
H2S
Coal
O2
ASU
SNGSyngas
Gasification MethanationCO ShiftUOP
SeparALLProcess
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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
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• 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
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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
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– H2 ~ 1
– CO ~ 2.2
– CO2 ~ 76
– COS ~ 175
– H2S ~ 680
– CH4 ~ 5
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SELEXOL MAX Solvent = Selective
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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
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• Involves more stringent product specifications
• Integrated solvent absorbers and solvent regeneration
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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
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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
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�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
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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
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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
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To summarize …
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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
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DriversTechnology
Economics
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Q u e s t i o n a n d A n s w e r
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