08 a08 mhi mumss indonesiafsreportingmeeting

7/28/2019 08 A08 MHI MUMSS IndonesiaFSReportingMeeting

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0Mitsubishi Heavy Industries, Ltd. owns all intellectual property rights concerning these materials.

Feb 22, 2013

Meeting on JCM FS 2012 in Indonesia


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Project Objectives

1. ESDM and MHI agreed to promote this project as theStrategic National Flagship Project . SNG(Substitute Natural Gas)is synthesized from Low

Rank Coal(LRC) Additional source for Indonesian Natural Gas network CO

2, byproduct of this project, is injected into existing

oil fields and utilized for EOR(Enhanced Oil Recovery)and CCS(Carbon Capture Storage).

2. This project is an ideal model for studying the JointCrediting Mechanism(JCM) .

1. Outline of Sumatera SNG Project


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Low RankCoal

SNG

CO

SNG Plant

EOR/CCS

To existingpipeline

4.55 Mton/yr

11.4M ton/yr

150MMSCFD

Note : Coal consumption and production rate of each product shall be confirmed inFeasibility Study

SGCSGC

Coal Gasifier(Oxygen Blown)

Gas Purification

Pre-Drying

SNGCompression

MHI provides SNG plant as an equipment manufacturer and EPC contractor.

CO2

Synthesis

Gas

CO2 Compression

Project Outline (1/2)

SNGSynthesis

Coal Supplier

SNG Offtaker



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SNG Plant

JAKARTA

CO2OilCO2

EOR Concept

SNG Plant

Low Rank Coal Mine

Oil Plant

CO2 Injection

Singapore

JAKARTA

NG

Pipeline

South Sumatera is promising plant location. SNG plant is constructed beside a Low Rank Coal mine. SNG product is transported to West Java through

existing pipeline. Byproduct CO 2 is injected into existing oil fields for EOR and CCS.

Project Outline (2/2)1. Outline of Sumatera SNG Project


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Future Project Development Time-Line

July 2011 -Feb 2012 Feasibility Study (done)July 2012 -Feb. 2013 Follow-up Feasibility Study

April 2013-Sep 2014 Feed Study April 2014-Sep 2014 Finance Arrangement, etc.Oct. 2014- Sept. 2018 EPC ImplementationSept. 2018 Commercial Operation

2010 2011 2012 2013 2014 2015 2016 2017 2018

Milestone

DevelopmentTime-Line

Start of FS

Start of Feed

CommercialOperation

Pre-Study FS

LNTP EPC Phase

Start of EPC

Follow-upFS



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Outline of Feasibility Study 2011

Design of coal gasification and SNG synthesis processwith Low Rank Coal

Estimation of Plant Capital and Operating Cost Oxygen-blown gasification test with Indonesian Low

Rank Coal at the Gasification Pilot Plant in Nagasaki

Japan Study on EOR and CCS opportunity of CO 2 , byproduct of

SNG Plant Study on application to the Joint Crediting Mechanism

(JCM)

Study of business model for the Project

2. Feasibility Study 2011


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Gasifier

Control Room

Coal Feeder

Oxygen-blown Gasification test using Indonesian Low Rank Coal wasconducted at 50ton per day class Pilot Plant in MHI s Nagasaki R&D center.

Test results, such as main syngas components and gasification efficiency, willbe reflected to the design of Commercial class gasifier.

Appearance of 50 t/d class Coal Gasification Pilot Plant

Coal Gasification Pilot Plant Test2. Feasibility Study 2011


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Slag

SlagWater Bathe

Slag holecamera

Gasifier Vessel

Combustor

Water bathe

camera

water bathe camera

slag hole camera

Slag is discharged very stably.No unburned carbon falls down from slag hole.

Discharged slag

Discharged Slag is grassy. (Good appearance)

Coal Gasification TestCoal gasification test was completed successfully.

2. Feasibility Study 2011


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Initial Screening Study of CO 2 /EOR

- Initial CO2

EOR/CCS Screening Study around potential sitewas completed. The study was screening of oil fields inSouth Sumatera Basin of 100km radius of the SNG plant.

- The study collected data for half of the oil fields in theradius. 2/3 of reservoirs show CO

2/EOR miscible flooding.

- Detailed study for CO 2 /EOR for two representativereservoirs has been conducted. This study consists of coresampling, slim tube test and geological simulation, etc.

3. Follow-up Feasibility Study 2012


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Follow-up Feasibility Study in 20123. Follow-up Feasibility Study 2012

2011 Feasibility StudyFollowing items are confirmed in 2011 Feasibility Study.

SNG plant using low rank coal can be built technically in South SumatraIndonesia.SNG price is enough feasible compared to commercial LNG price in Asia.There is enough possibility of CO 2/EOR around the potential site in SouthSumatera in Indonesia.

2012 Follow up Feasibility StudyIndonesia and Japanese Governments decided to continue FS focusing on theeconomical study of CO 2/EOR in South Sumatra Indonesia. The study items aredescribed as below.

Schedule for CO 2 Injection to Oil field

CO2 EOR CAPEX / OPEXCO2 /EOR Geological Simulation StudyMRV methodology


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Organization Chart of Follow-up FS in 2012

Indonesia Gov. /Ministry of Energyand Mining Resource( Energi dan Sumber Daya Mineral )

Schedule for CO 2 Injectionto Oil Field

JCM MRV Study

Mitsubishi

Morgan Stanley

Mitsubishi Heavy Industries, LTD.

Business Model

PJ Consortium

Lemigas EOR Consultant Lemigas

CO2 EOR StudyO2 /EOR Simulation StudyReview

JCOAL



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Potential Plant Site

Schedule for CO 2 Injection to Oil Field

Initial CO2 EOR/CCS Screening Study around potential plant site was conducted. The oil f ields in South Sumatera Basin of100km radius SNG Plant have been studied.

The long term schedule of CO 2 injection to each oil field considering field capacity will be confirmed in this study.

100 km

CO2 Pipeline (to be studied)



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Study Item

Conceptual Design for CO 2 /EOR FacilityEconomical Study for CO 2 /EOR considering PSC (Product Sharing Contract)

Site Survey of potential EOR field

Facility Scope

SNG Plant

Gas/OilSeparator

CO2 recycle

facility

Oil Product

CO2

Injection Well Production Well

Plant B.LBy MHI

CO2 : 99%576 t/h(4.55 Mton/y)

Gas

Pipe Line

CO2 EOR CAPEX / OPEX



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Geological Simulations of two representative oil reservoirs have been carried out.These simulation results are reviewed by the 3 rd Party Company.

Review Items

- Laboratory Test Result

- Core and Reservoir Fluid Sampling Result- Geological Model for Simulation

- Reservoir Simulation Results

CO2 /EOR Geological Simulation Study

Geological Reservoir Model for Oil Field



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3 rd Party review for the CO 2EOR Simulation Study

CO2 EOR CAPEX / OPEX

CO2 /EOR Economical Study

CO2 Pipeline Plan

Plan of CO 2 InjectionSchedule

Study of PSCContract for EOR

Feasibility Study 2011

Conceptual flow of CO 2 /EOR

CO2 /EOR Economical Study

Feasibility Study 2012

CO2 /EOR Economical Study in South Sumatera Indonesia will be confirmed

according to the following steps.CO 2 /EOR Screening StudyCO 2 /EOR Simulation Study



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Coal Gasification and CCS-EOR: MRV Methodology

Need separate methodologies for coalgasification and CCS-EOR

No applicable approved CDMmethodologies (AM)

=> Need to develop a newmethodology (NM)

Important to refer to basic approachestaken by CDM methodologies

< Reference sources for the methodology development>

CDM methodologies (e.g. AM0037, AM0087, NM0167) Draft American Carbon Registrys methodology on CCS & CCS-EOR CDM guidelines for a new methodology for CCS Other guidelines and best practices for CCS and CCS-EOR

4. MRV methodology study

CO2Oil CO2

EOR ConceptCCS-EOR methodology

SNG Plant

Oil Plant

CO2 Injection Pipeline

SNG productionmethodology


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Emission Reduction Calculation Method

*Monitor parameters framed with bold lines in the above equations

ReferenceEmissions/

SNG

EmissionsReductions at the

SNG production site

ProjectEmissions/

SNG- * SNG

Production

EmissionReductionsby CCS-EOR

CO2injected -

Project emissions from CCS, fuel & electricityconsumption at treatment facilities

(incl. a recycling plant) and seepage

SNG

Coal

CO2EmissionReductions

Reference Project

Scenario Scenario

CO2Emission

Coal

Reduction incoalconsumption

CCS-EOR

CO2

CO2EmissionReductions

CO2Emission

Energyconsumption

Reduction in CO2venting to theatmosphere

Reference Project

Scenario Scenario



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Overall Block Flow Diagram for the SNG Production Siteand Monitoring Points

Dryer Gasifier

ASU

Gas Quenchand

CooledSour Shift

Acid GasCleaning(Rectisol)

Methanation

Steam

Air

O 2

Syngas

BE Boiler,y PE Boiler,y

Compression

Particulate,Tar removal

EOR(CO2 : 575.8 t/h)

H2S/COS

Steam

H2, CO,CO 2

H2, CO

LowRankCoal

Wet gasSulphuric

Acid

AuxiliaryBoiler

H2SO 4

2

5

6

Flue gas(CO2 : 214.0 t/h)

1

1279 t/h(H2O:58.5wt%) 1038 t/h

(H2O:23.5wt%)

241 t/h(H2O:23.5wt%)

3.2 t/h(H2SO 4:97wt%)

147.3 MMSCFD

7

3

4

Off Gas(CO2 : 15.9 t/h)

SNG

BE WSA,y PE WSA,y

BE Gasification,y PE Gasification,y

CO 2



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CCS-EOR Project Diagram and Monitoring Points

< Monitoring >

Aboveground:Measuring points are clear

Belowground:Monitoring points and methods:

i)Fulfill the national regulations

and guidelinesii)Fulfill any guidelines to beestablished under the JCM

iii)Flexible and tailored-madebased on the site characteristics

Measuring points from the draft MRVmethodology developed in 2011 (based on

NM0167 of CDM methodology)

PE seepage,y

20-30%recycled

CO2

CO2

These treatments will beconducted by the gasificationplant in the proposed project.

Therefore, no need to take intoaccount monitoring point A and

B.

PE flare,y

PE leakage,y

PE leakage,y

PE flare,y

PE EC,y

PE FC,y



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Emission Reduction Calculation Results: SummaryCoal Gasification

CCS-EOR

ER y: 3,316,404 tCO2/yr GHG emission reductions in year y by CCS-EOR

RE y : 4,560,270 tCO2/yr Reference emission reductions in year y

PE y : 1,243,866 tCO2/yr Project emission reductions in year y

LE y : 0 tCO2/yr Leakage in year y

ER y: 2,975,874 tCO 2 /yr GHG emission reductions at the Coal Gasification Plant in year yRE y : 10,582,242 tCO 2 /yr Reference emission reductions in year y

PE y : 7,606,368 tCO 2 /yr Project emission r eductions in year y

LE y : 0 tCO 2 /yr Leakage in year y

Combined Result

ER y: 6,292,278 tCO2 /yr GHG emission reductions by Coal Gasification and CCS-EOR in year y

RE y : 10,582,242 tCO2 /yr Reference emission reductions in year y

PE y : 4,289,964 tCO2 /yr Project emission reductions in year y

LE y : 0 tCO2 /yr Leakage in year y



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Methodology and Project Summary Evaluation

Conducted by a DOE of CDM (ISO certified, J-VER validator/verifier)

Evaluation only on the methodology and PS of the SNG production plant project Three different levels of evaluation along with the guidance given by NEDO Results:

Evaluation levels# of

evaluationcriteria *

Evaluation results

# of criteria

satisfied

# ofcriteria

unsatisfied

for not being able to meet the

requirements

Step 1 evaluation:Completeness checkon methodology

15 15 0 --

Step 2 evaluation:PS validation 15 12 3

- Checking criteria on EIA could not be fulfilled- Detailed monitoring plan not ready yet; can bechecked during the verification

Step 3 evaluation:Detailed check onMethodology

19 18 1 - Lacking detailed information to suggest QA/QCmeasures

*Excluding the items that were not applicable



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08 a08 mhi mumss indonesiafsreportingmeeting

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