Development of High Efficient Coal Gasification Technology and Its ...

1. Background2. ECOPRO® Technology3. Pre-feasibility Study of ECOPRO®Demonstration Project for Victoria BrownCoal Utilisation4. Conclusion2

2. Easy to mineMine Production Depth Strip RatioLoy Yang Mine 30 Mtpa 220 m (plan 250 m) 4 coal : 1 wasteNew project inLatrobe ValleyNew Project inLatrobe Valley40 Mtpa 300 m (plan 350 m) 3 coal : 1 waste30 Mtpa 350 m + 2 coal : 1 wasteHambach(Germany)40 Mtpa 350 m (plan 500 m) 1 coal : 6 wasteAfsin (Turkey) 25 Mtpa 250 m 1 coal : 2 wasteSource: Presentation Traralgon Bypass Inquiry GHD Pty Ltd

【Expansion of brown coal utilisation】(1) Reforming Carbon Products(2) Conversion Syngas to SNG/LNG, Liquid fuel, Chemical Products(3) Integration with CCS technologiesCurrent main useReformingBrown CoalConversionCoal MiningCountryCO2SeparationCaptureStoragePowerGenerationElectricityReforming technology(UBC, Briquetting… etc.)PowerGenerationReformed CoalSteelIndustryMethanationLiquefactionLNGGasification(ECOPRO® etc.)SyngasNH3synthesisFertilizerMethanolsynthesisMethanolDirect liquefaction(NBCL (Jp.))…etc.Indirect liquefaction(FT synthesis))DMESynthesis.MTGFuelTransportation fuelSingle useMultiple uses Various business opportunities and resources value increase in coal producing countries. Alternative energy supply and supply security in energy importing countries8

2. ECOPRO® Technology2-1 Unique Features of ECOPRO® Technology2-2 Outline of Pilot Plant2-3 Phased Development2-4 Development Timeline9

◆ Pyrolysis reaction in upper chamber utilising the sensible heat fromlower chamber. High efficiency (85% at commercial plant) conversion of coal to synthetic gas. High Methane content in SyngasBrown CoalEntrained Flowgasifier【Pyrolysis】Coal + Heat CO, H 2 , CH 4Gas(H 2 , CO, CH 4 )Fuels, ChemicalsSNG, FT-oilNH3, CH 3 OH, H2Drying &Pulverising【Partial oxidation】Coal + O 2 , steam CO, H 2 + HeatPower GenerationIGCC, Gas Engine,Fuel CellO 2SlagInorganic materialsCement, etc.CharCarbon materialsFor steel makingEnergy efficiency = Calorific value of Products / Calorific value of coal10

Capacity: 20 t/day (Feed Coal)Supported by Japanese Government (METI),Project Period: 2003 ~ 2009Location: Kitakyushu, JapanAchievements:High energy efficiency,Process stability,Applicability to Victorian Brown CoalFukuoka Pref.11

Robust technology development with phased scale-up.Approx. x5~10Approx. x10Pilot Plant(20 ton/day)~ 2011Demonstration Plant(200 ton/day)2012 ~ 2017Commercial Plant(1000~3000 ton/day)2018 ~12

Design Engineering and Supporting R&D for Technology Scale-up.1) Establishment of Design Basis and Methodology for Plant Design.2) Cold-model tests and CFD simulation studies for Design Verification.Process ValidationVerification of Scale-up TechnologyBench Scale Unit(1kg/d)ProcessDevelopment Unit(1t/d)Pilot Plant(PP)(20t/d)Demonstration Plant(DP)(200t/d)CommercialPlant(1000t/d-)Pyrolysisreaction dataDataAnalysisDataAnalysisPlantdesignDesign BasisDatafeedbackAnalysisPlantDesignProcess SimulatorSimulatorProcess SimulatorCold modelTestBurner TestBurner TestCold modelTestBurner TestCold modelTestOff-line Test13

’10’11’12’13’14’15’16’17 ’18’19’20Pilot Plant20 tons/day(dry base)OperationalStudyHub for TechnologyDevelopment Engineering data Operator training Technology Showcase… etc.DemonstrationPlant200 tons/day(dry base)PreFSFEEDEPCTestOperationCommercialPlant1,000 tons/day(dry base)Preliminary StudiesFS, Planning& DesignEPC14

3. Pre-feasibility Study of ECOPRO®Demonstration Project forVictoria Brown Coal Utilisation 3-1 Concept for Pre-FS 3-2 Planned Site for Demonstration Project3-3 Contents of Pre-feasibility Study 3-4 Commercial Viability of Future ECOPRO® CTX projects 3-5 ECOPRO® Demonstration Project 3-6 Roadmap for the ECOPRO® Commercialisation3-7 Expected Benefits from Future ECOPRO® CTX projects15

1. Objective is to examine CTX (Victorian Brown Coal thorough ECOPRO®)business possibilities and develop the pathways toward business realisation2. Scope of Demonstration Project covers gasification to product synthesis withCO2 capture.3. Pre-FS consists of1) Definition of Demonstration Project,2) Utilisation of Demonstration plant and3) Commercial Viability of CTX businesses with Full Scale ProjectsScope of DemonstrationLow rankcoalCO Shift ReactionMethanationSNGECOPRO® (200 t/day)CO2 CaptureCCS project:CarbonNet16

Latrobe Valley:Coal mine &Gasification Plant17

(a) Commercial viability of Victorian Brown Coal CTXbusinessesStudy commercial viability of future business casesthough full-scale ECOPRO® technology, expectedbenefits and establish roadmap for realisation.(b) Demonstration Project Definition and PlanningConduct various engineering studies, riskassessment and cost estimates to define ECOPRO®Demonstration Project and developed executionplan.Examine possibilities of commercial utilisation ofDemonstration Plant after TechnologyDemonstration18

Commercialisation StudyLNGWorking GrMember (Japan)City GasCompanyBrownCoalMethanationSubstituteNaturalGas(SNG)AustralianCompanyFT ReactionDieselAustralianCompanyGasificationSyngasMethanol SynthesisMethanolDMEChemicalCompanyCO2CCSFor Domestic UseAcetic Acid SynthesisIGCCAceticAcidElectricityChemicalCompanyAustralianCompanyFor ExportSeparationHydrogenIndustrialGas Company19

SNG/LNG : Viable for export to Japan/Asia Diesel Oil : Viable for domestic market (replacing importeddiesel) Methanol : Viable for export to Asia Acetic Acid : Viable for export to Asia IGCC : Not viable in current local market,subject to future electricity price. Hydrogen : Viability depends on the future hydrogenmarket for FCV application20

Engineering Design of Demonstration Plant.GasificationSectionCoal PretreatmentSection21

Planned Organisation for Project ExecutionJapanMETINSE/CYDJapanesecompaniesAustraliaSPC for ECOPRO Demonstration ProjectFundCommonwealthVictoriaAustraliancompaniesOthercontributionsExpected participation from Industries of Resourcesand Mining, Energy Supply, Product Off-Take,Trading etc.,22

Brown Coal BusinessBCBRA Research Australia23

Enhanced/alternative utilisation of browncoal resource Diversification and expansion of the regionaleconomy New export oriented industry for Victoria Attraction of substantial new investmentfrom overseas Creation of new employment opportunities24

4. Conclusion4-1 Promotion of Brown Coal CTX Projects4-2 Conclusion25

Products Energy, Fuels or Chemicals Compete or supplementexisting productsDomestic Market Characteristics1. Limited size2. Limited growth3. Competitive price (electricity, gas)4. Extended areaTarget for Opportunities for export to overseasor interstate markets?Possible structural changes ofdomestic market:- Impact of carbon Tax- Link to International LNGmarket through CSG/LNGprojects in eastern Australia.- Future hydrogen society inAustralia.A-1. Advantages of Victoria Blown Coal・ Low sulfur and ash content・ Abundant reserves・ Low mining cost・ Access to CO2 storage potentialA-2. Advantages of Victoria・ Low country risk・ High quality human resourcesB-1.Disadvantages of Victoria Blown Coal・ High moisture content・ Spontaneous combustionB-2. Disadvantages of Victoria・ Distances from majour export markets・ Insufficient infrastructure for export・ Lack of incentives for investmentClean Coal Policies to encourage lowemission coal businesses• Realisation of CarbonNet• Access to brown coal resources• Incentive for investment for lowemission coal businessesExpected Government PolicyPrograms・ Maximise A (Pros)・ Minimise or improve B (Cons)Policies for Promotion ofBrown Coal Business development• Support for technologydevelopment• Incentives for investment• Upgrading infrastructure forexport26

1) Commercial viability of CTX business (Victorian Brown Coalthrough full scale ECOPRO® technology) was examined andverified for application to the products such as SNG/LNG,Methanol, Acetic Acid, Diesel and Hydrogen.2) Expected benefits from such CTX projects were evaluated.3) Challenges for realisation of such CTX projects:1) Scale up ECOPRO® technology to full scale2) Develop CCS infrastructures3) Upgrade infrastructures supporting export oriented projects4) Incentives for new investment toward low emission coalbusiness CetweePAUScompanies⇒ ECOPRO® Demonstration project was identified as a beneficialproject that should be executed in a cooperative manner throughthe involvements of a variety of committed parties, governmentaland private, both in Australia and Japan.27

Thank You For Your AttentionAcknowledgmentThis project received funding from the Australian Government as part of the NationalLow Emissions Coal Initiative.It also received support from the Victorian State Government through the Departmentof Primary Industries as part of the Energy Technology Innovation Strategy: CarbonCapture and Storage Large Scale Demonstration Program. In particular, it receivedfinancial assistance from Regional Development Victoria towards the pre-feasibilitystudy.ECOPRO® is a registered trademark of Nippon Steel Engineering Co.,Ltd.28