Ikelic - Alliance Digital Repository

STATUS OF COAL PROJECTS (Underline denotes changes since June 1994)
COMMERCIAL AND R&D PROJECTS (Continued)
In late 1990, DGC and DOE initiated a lawsuit against the four pipeline company purchasers contracted to buy SNG. The issues in
these proceedings involve: the extent of the pipeline firms'
obligations to take or pay for SNG; whether the sales price of SNG has
been understated; and whether the adjustment made by DGC to the rate the plant charges the pipeline companies to transport
their SNG to a point of interconnection on the Northern Border Pipeline system is in accordance with contract terms. An October
1994 trial date had been set. In April 1994, DGC, DOE and the pipelines announced out-of-court settlements of the litigation.
Pursuant to the settlements, which are subject to a final, non-appealable FERC approval, the pipelines paid DGC $37 million in
past due amounts, upon final FERC approval will pay DGC the market price for its synthetic gas and will make monthly demand
payments over a seven-year period, with a present value (discounted at 10 percent) of approximately $360 million as of August
1994. After these monthly payments have been made, DGC will only be paid the market price through the remaining term of the
gas purchase agreements which expire on July 31, 2009. Pending FERC approval DGC is being paid $3.70 per MMBTU. Until
receipt of a final, nonappealable FERC approval, the difference between $3.70 and the market price is being credited, on a formula
basis, against the $360 million demand payment obligation. As part of the settlement arrangements, DGC will pay DOE
$25 million over this seven-year period and has agreed to enhanced revenue sharing with DOE. As a result of these settlement
agreements, the lawsuit has been stayed pending final FERC approval and the payment of the 84-monthly demand payments.
Project Cost: $2.1 billion overall
HOT GAS - DESULFURIZATION IN A TRANSPORT REACTOR The
MW. Kellogg Company (MWK) and U.S. Department of
Energy. Morgantown Energy Technology Center (DOE/METC) (C-260)
Successful proof-of-concept tests of the MWK Transport Reactor Test Unit in HDG have been completed at the Kellogg Technol
ogy Development Center. HDG is a key process step in IGCC which avoids costs of gas cooling and production of difficult-to-treat
liquid waste streams. The use of a transport reactor results in lower capital and operating costs that the fixed and fluid bed reac
tors generally employed in HGD.
DOE/METC plans to incorporate the MWK Transport Reactor in their state-of-the-art Hot Gas Desulfurization Unit.
Demonstration tests are scheduled to begin in late 1996.
- HUMBOLT ENERGY CENTER PROJECT Continental
Energy Associates and Pennsylvania Energy Development Authority (C-265)
Greater Hazleton Community Area New Development Organization, Inc. (CAN DO, Incorporated) built a facility in Hazle
Township, Pennsylvania to produce low BTU gas from anthracite. Under the third general solicitation, CAN DO requested price
and loan guarantees from the United States Synthetic Fuels Corporation (SFC) to enhance the facility. However, the SFC turned
down the request, and the Department of Energy stopped support on April 30, 1983. The plant was shut down and CAN DO
solicited for private investors to take over the facility.
The facility has been converted into a 135 megawatt anthracite refuse-fueled integrated gasification combined cycle cogeneration
plant. Gas produced from anthracite coal in both the original facility and in new gasifiers is being used to fuel the cogeneration
facility in conjunction with turbines to produce electricity. One hundred megawatts of power per hour will be purchased by the
Pennsylvania Power & Light Company over a 20-year period and the remainder of the power purhcased by Con-Edison. Steam is
also produced which is available to industries within Humboldt Industrial Park at a cost well below the cost of in-house steam
production. The combined cycle cogeneration plant has been in operation since 1990.
Project Cost: over $100 million
- HYCOL HYDROGEN FROM COAL PILOT PLANT Research
(C-270)
Association for Hydrogen from Coal Process Development (Japan)
In Japan, the New Energy and Industrial Technology Development Organization (NEDO)
has promoted coal gasification tech
nologies based on the entrained bed. These include the HYCOL process for hydrogen making and the IGC process for integrated
combined cycle power generation.
The HYCOL gasifier was evaluated as a key technology for hydrogen production, since hydrogen is the most valuable among coal
gasification products. NEDO decided to start the coal-based hydrogen production program at a pilot plant beginning in fiscal year
1986. Construction of the pilot plant in Sodegaura, Chiba was completed in August, 1990. Operational research was to begin in
1991 after a trial run.
The key technology of this gasification process is a two-stage spiral flow system. In this system, coal travels along with the spiral
flow from the upper part towards the bottom because the four burner nozzles of each stage are equipped in a tangential direction
to each other and generate a downward spiral flow. As a result of this spiral flow, coal can stay for a longer period of time in the
chamber and be more completely gasified.
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SYNTHETIC FUELS REPORT JANUARY 1995