Gas To Liquids Technology By Valerie Sage

Gas to Liquids Technology (GTL) – Australia’s Fuel Future?

Valérie SageCSIRO Petroleum Resources – Gas Processing and ConversionSPE – Engineering Australia Seminar – 07.09.2009

CSIRO GTL - SPE - Engineering Australia Seminar - 07.09.2009

Outline

• What is GTL ?

• What is the current transport fuels situation?

• Why using GTL technology to transform natural gas?

• GTL Challenges

• CSIRO GTL Research

• Conclusion


What is GTL ?

The Chemistry Behind GTL


Background – GTL process

Natural Gas

Coal

Biomass

Oxygen

Hydrocarbon feedstock

Syngas production

30%

10%30%

Reformer /

Partial OxidationFischer Tropsch Product upgrade

Hydrocarbon production

Product targeting

CO + H2

-(CH2)-nLight HCs

WaxesWaterCO2

Oxygenates

-(CH2)-n

Hydrocarbon + steam, CO2, O2

Air Separation

30% SyngasCO + H2

Gasification


Syngas Production

• Syngas Production• Steam reforming CH4 + H2O → CO + 3H2

• Dry reforming CH4 + CO2 → 2CO + 2H2

• Partial oxidation CH4 + ½O2 → CO + 2H2

• Fischer-Tropsch synthesis• n CO + 2n H2 → -(CH2)n + H2O• Conditions

• Optimum H2:CO = 2:1

• Transition metal-based catalyst – Fe, Co, Ni, or Ru

• High temperature (> 300 °C, Fe catalysts)

• Low temperature (~ 200 °C, Co catalysts)

• Pressure > 2 MPa


GTL Products

• GTL base oil• Lubricant for vehicle engines, gearboxes and transmissions

• GTL gas oil• Use in conventional diesel engine• Cleaner burning and lower emissions

• GTL kerosene• Cooking, lighting and dry-cleaning fuel• Higher energy density and lower emissions• Tested as a jet fuel in an Airbus A380 flight

• GTL normal paraffin• Virtually identical to oil-derived paraffin

• GTL naphtha• Higher paraffin content


The Current Situation

Transport Fuels Sources


Fossil Fuels

• Oil, Gas, and Coal

• Upside• Convenient and versatile• High energy density• Well established global

infrastructure• ‘Easy’ to transport• ‘Easy’ and ‘Safe’ handling

• Downside• Finite resource • Major GHG source• Impact on ecosystems• Large capital investments, long

pay-out times • Used as a geopolitical ‘weapon’• May get too expensive (Oil)


Oil – Peak time?

• The median forecast is calculated from 14 models that are predicting a peak before 2020• 95% of the predictions sees a production peak between 2008 and 2010 at 77.5 - 85.0 mbpdSource: The Oil Drum; http://www.theoildrum.com/story/2006/11/13/225447/79


Energy from Renewable

• Hydrogen• Can be made from a range of sources (water, coal, gas,

biomass, nuclear, wind and solar)• Issues

• Production costs, especially if produced from renewable• Carbon dioxide co-production• Distribution, delivery, and storage

• Solar / Wind• Renewable, clean, safe, and ‘unlimited’• Issues

• Intermittent• ‘Low energy density’• Land required• Impact on ecosystem ?• Grid infrastructure not ready


Alternative / Renewable Feedstock

• Biomass• Renewable• Home-grown• CO2-’neutral’ ?• Issues

• Energy and GHG balance is precarious • Low energy density• Limited output because of land requirements• Fuels vs. Food ?• Harvest failure• Soil exhaustion (danger of monocultures)• Deforestation• Water requirements


The Alternative Route to Fuels

• Alternative Feedstock

• Natural Gas

• Coal

• Biomass

• Products

• Transport Fuels

• Chemicals

GTL

CTL

BTL

XTL


XTL Processes

Supply might be an issue

Large reservesAbundant reserves, especially in WA

Supply

Prototype plant planned

Large plants planned

Commercial plants under construction

Future

Pilot plant onlyLarge scale industrial units already in operation

Industrial units already in operation

Status

Further R&D required

Industrially proven but further R&D required

Industrially proven but further R&D required

Technology

Most promising technology for GHG emission reduction

Higher than oil refiningSignificant reduction through CCS

Comparable to oil refiningReduction through technology improvement

GHG Emissions

Biomass to Liquid(BTL)

Coal to Liquid(CTL)

Gas to Liquid(GTL)

Process


Well to Wheel GHG Emissions (syn-diesel)

From “ASFE Position Paper: Emissions from Synthetic Fuels”, Alliance for Synthetic Fuels in Europe (ASFE), January 2007 (http://www.synthetic-fuels.org/documents/20070221124435_ASFE%20Position%20Paper%20on%20Emissions.pdf)


Is GTL the Answer?


Gas Reserves in Australia


Australia’s Future Alternative resources

• Australia’s unique situation and individual problems need Australian individual solution

• Australia specific problems• Liquid poor but gas rich• Reliance on other countries for oil import • Distances

• Abundant coal and gas reserves• Potential of large scale synfuel production

• Natural gas represents one of the best feedstock for synthetic fuels production

• Large natural gas reserves in Australia, especially in WA• Reduced GHG emissions


Australian Situation

• Government's Energy White Paper• GTL• CTL• Other alternative fuels

• CTL• Linc Energy project

• Underground coal gasification (UCG)• In-situ conversion of coal to a Syngas (heat, pressure steam)• Syngas converted into Synfuel in FT reactor

• Prospects for carbon capture and sequestration

• GTL• No facility as yet• Focus on production of GTL middle distillate (diesel and jet

fuel)


Benefits of GLT

• Security of supply• Available in increasing volumes

• Fuel source self sufficiency

• Environmental performance – local emissions• Cleaner products (middle distillates)• GTL Fuels

• Lower emissions• Virtually sulphur and aromatic free diesel• Reduction in particulate (PM-10) and hydrocarbons emissions when

used in diesel engines• Higher cetane number (75-80)


Benefits of GLT (cont’)

• Compatibility• Can be used in existing engines and refuelling infrastructure• No need for complete replacement of vehicles, refineries and

distribution systems

• Cost effectiveness• Existing infrastructure• Local production

• Reduction in crude oil import

• Diversification• Stranded and associated gas reserves use• BTL and CTL applications


Economics

• Economic viability• Required selling price of the fuel produced through GTL have to

be above the break even mark by a significant amount

• Large scale GTL plant in the middle east• Without CCS• Expected to be competitive with oil down to approximately $20

per barrel

• Recent advances by the oil company Shell have seen synthetic fuels start to become profitable.

• GTL plant in Qatar• Claims that process will remain competitive with traditional

diesel unless the price of crude falls below $20 per barrel


Other Alternatives to GTL for Gas Transformation

• Liquefied Natural Gas (LNG) • Deep refrigeration required (-162 °C)• Energy density: 60% of that of diesel fuel• Special ships for transport• Large investments for liquefaction and re-gasification terminals• Long term contracts required

• Compressed Natural Gas (CNG)• Pressurisation (200-220 bar)• Special ships for transport• Less expensive than LNG• Lower energy density than LNG (42%) or conventional diesel (25%)• Competitive only for small distance and volume

• In both cases, the receiving end product is still gas


The GTL Answer

• GTL represents one of the best alternative to produce synthetic / transport fuels

• Use of remote, stranded and off-shore Australian gas reserves

• Security of supply

• Cost effective synfuel production


GTL Around the World

• Existing large scale commercial GTL - FT process plants

• Shell (Malaysia) - Bintulu• Natural gas as feedstock• low-sulphur diesel fuels products• Multitubular fixed-bed reactor• Co based catalysts• 15,000 bbl/day

• Sasol (South Africa) - Mossgas• Coal and natural gas as feedstock• Variety of synthetic petroleum products• Synthol reactors (fluidized bed): 45,000

bbl/day for GTL• Slurry bubble reactor: 2,500 bbl/day

• Sasol/Chevron (Qatar) - Oryx• Natural gas feedstock• Variety of synthetic petroleum products• Slurry bubble reactor• 34,000 bbl/day


Future Large GTL Projects

• Pearl GTL project - Qatar• Shell and Qatar petroleum joint venture• Expected production of 140,000 barrels per day of Fischer

Tropsch petroleum liquids starting in 2010 (first train) and 2011 (second train)

• Escravos GTL Project – Nigeria• Sasol Chevron• Expected to production of 34,000 barrels per day of Fischer

Tropsch synthetic fuel in 2011


GTL Challenges


GTL Challenges

• GTL Plant• Large plants

• Oxygen generation unit• Reformer• Fischer-Tropsch reactor• Post-treatment unit

• High capital investment and operating cost

• GTL Process• Exothermic and endothermic reaction• Side reactions• Large range of product

• Poor selectivity


Relationship to external environment

• FT process still not very selective to desired products

Oxygen

Steam

Carbon dioxide

30%10%30%

Syngas production Synfuel production Product upgrade

30%

Natural Gas

Coal

Biomass

Solar


Relationship to external environment

Courtesy JOGMEC / Nippon GTL

Remove the need for product upgrading step:


GTL Opportunities

• Reduce costs (capital and operational)

• Reduce plant footprint• Plant usable for small operations

• Associated gas (on or off-shore)• Stranded gas reserves (on or off-shore)

• Novel GTL processes• Enhanced Fischer Tropsch processes• Direct liquid production• High-value targets• Minimise emissions• CO2 Sequestration


GTL Strategy @ CSIRO


Description and Objectives

• Project Objectives• Synthetic liquid fuel

production from natural gas / syngas

• Modification/improvement of the Fischer-Tropsch (FT) process

• Capability building

Stream ObjectiveProvide technologies that enable coal and gas derived low emissions transport fuels to reduce significantly Australia’s reliance on imported oil for transportation

• Project Outcomes• Security of supply of

Synfuels • Cost effective production of

Synfuels• Valorisation of Australia’s

stranded natural gas reserves

• Diversification to other feedstock (biomass, coal)


Gas Processing & Conversion Group

Natural gas

CoalBiomass

Synthesis gas production

H2 productionSynthetic fuel production

LNG pre-liquefactiongas separations

Methanol synthesis Product upgrade

Non-conventional GTL

Fischer-Tropschsynthesis

Pre-sequestrationgas separations


GTL Research Strategy

• Catalysis design• Co based catalysts more resistant than Fe based catalyst• Ru based supported slurry catalysts

• Reactor design• Shift from fixed-bed reactor to slurry phase process

• Improved heat removal – efficient mixing• Gas recycling• Reduced plant footprint and capital cost

• Process optimisation• Reaction conditions• Use of additives

• Production of industrially significant data• Long runs without interruption (several months)


Purpose of GTL Research

• No such facility in Australia

• Capability building

• Improvement of the GTL process• Selectivity

• Mechanism

• Plant footprint


Conclusion


Overall

• Objectives of 20% energy production from renewable resources by 2020

• Fossil and Synthetic Transport Fuels are going to be with us for a long time

• Need other sources of energy – diversification

• Australia has real individual issues that chemists and chemical engineers have to meet

• Security of Supply

• There is a real need to focus on these to ensure a fuel supply for the future


GTL benefits

• Security of supply

• Valorisation of stranded and off-shore gas reserves

• Use of existing infrastructure

• Develop a cost effective production of synthetic fuels

• High performance fuels • Decrease of pollutant emissions

• Build capability

• Diversification• Platform for Biomass to Liquids (BTL) and Coal to Liquids

(CTL) products development• Production of other products such as oxygenates

Thank you

Contact UsPhone: 1300 363 400 or +61 3 9545 2176

Email: [email protected] Web: www.csiro.au

CSIRO Petroleum ResourcesDr Valérie SageResearch ScientistGas Processing and Conversion Group

Phone: 08 6436 8836Email: [email protected]: www.csiro.au/science/Fischer-Tropsch-Process.htmlwww.csiro.au/science/Gas-Conversion-Processing-Fuel-Future.html