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Ikelic - Alliance Digital Repository

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STATUS OF COAL PROJECTS (Underline denotes changes since June 1994)<br />

COMMERCIAL AND R&D PROJECTS (Continued)<br />

Scotia Synfuels Limited has been incorporated to carry on the work of the consortium. Scotia Synfuels has down-sized the project<br />

to 12300 barrels per day based on a coprocessing concept and purchased the Point Tupper site from Ultramar Canada Inc. Recent<br />

developments in coprocessing technology have reduced the capital cost estimates to US$375 million. Net operating costs are es<br />

timated at less than US$20 per barrel.<br />

In late 1988 Hydrocarbon Research Inc. (HRI) was commissioned by Scotia Synfuel Ltd. to perform microautoclave and bench<br />

scale tests to demonstrate the feasibility of their co-processing technology using Harbour seam coal and several oil feedstocks. In<br />

early 1989, Bantrel Inc. (a Canadian engineering firm affiliated with Bechtel Inc.), was commissioned to develop a preliminary<br />

process design.<br />

Scotia Synfuels and partners have concluded an agreement with the Nova Scotia government supported by the. federal government<br />

for financial assistance on a $23 million coprocessing feasibility study. The study was completed in 1990.<br />

In 1992 Scotia Synfuels Limited arranged with partners to finance the reactivation of the oil storage and ocean terminal facilities at<br />

the Point Tupper. Nova Scotia site. Total investment in this reactivation project has been about C$100 million. This project was<br />

developed with the view towards supporting the development of a commercial Synfuels Project at the site.<br />

In 1993. Scotia Synfuels Limited formed a partnership with CORPOVEN. SA. to evaluate coprocessing of Boscan residuum (with<br />

high sulfur and high metals content) and Nova Scotia coal. This program was supported by the Nova Scotia government.<br />

Hydrocarbon Research Inc. was again contracted for a bench test program. Hydrotreatment tests of the hydrocarbons from the<br />

HRI coprocessing program were contracted to the CANMET laboratories. Bantrel Inc. was engaged to modify the process design<br />

developed in the 1989 program to reflect the new feedstocks. Economic analvsis indicated that a coprocessing plant based on Bos<br />

can Crude and Nova Scotia coal would be attractive at oil prices of about $US18 per barrel-<br />

In the recent program two plant cases of 14,000 barrels/day and 19.000 barrels per day of petroleum products were developed. The<br />

products consisted of high quality naphtha (34%); #2 diesel fuel (56%) and low sulfur heavy distillate (10%). Coal conversion in<br />

the coprocessing tests was in excess of 90 percent and residuum conversion was in excess of 85 percent-<br />

Scotia Synfuels Limited is currently developing financing for the next phase of the project which is estimated to be C$133 to<br />

C$15 million.<br />

Project Cost: Approximately $23 million for the feasibility study<br />

Approximately C$500 million for the plant<br />

- SEP IGCC POWERPLANT Demkolec<br />

BV. (SEP) (C-520)<br />

In 1989, Demkolec, a wholly owned subsidiary of Samenwerkende Elektriciteits-Produktiebedrijven (SEP), the Central Dutch<br />

electricity generating board, started to build a 253 megawatt integrated coal gasification combined cycle (IGCC) powerplant, to be<br />

ready in 1993.<br />

SEP gave Comprimo Engineering Consultants in Amsterdam an order to study the gasification technologies of Shell, Texaco and<br />

British Gas/Lurgi. In April 1989 it was announced that the Shell process had been chosen. The location of the coal<br />

gasification/combined cycle demonstration station is Buggenum, in the province of Limburg, The Netherlands.<br />

The coal gasification facility will employ a single 2,000 ton per day gasifier designed on the basis of Shell technology. The clean gas<br />

will fuel a single shaft Siemens V94.2 gas turbine (156 MWe) coupled with steam turbine (128 MWe) and generator. The coal<br />

gasification plant will be fully integrated with the combined cycle plant, including the boiler feed water and steam systems; addition<br />

ally the compressed air for the air separation plant will be provided as a bleed stream from the compressor of the gas turbine. The<br />

design heat rate on internationally traded Australian coal (Drayton) is 8,240 BTU/kWh based on coal higher value heating (HHV).<br />

Environmental permits based on NO emissions of 0.17 Ib/MMBTU and SO emissions of 0.06 lb/MMBTU were obtained in April<br />

1990. Construction began in July 1990 and start of operation is scheduled for September 1993. When operation begins, the Dem<br />

kolec plant will be the largest coal gasification combined cycle powerplant in the world. Commissioning of the main plant system is<br />

scheduled to take place in January through July 1993.<br />

After three years of demonstration (1994 to 1996), the plant will be handed over to the Electricity Generating Company of South<br />

Netherlands (N.V. EPZ).<br />

Project Cost: Dfl. 880 million (1989)<br />

4-73<br />

SYNTHETIC FUELS REPORT, JANUARY 1995

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