energy challenge, clean coal utilization the ucg progress ...china has 9 out of the 10 top most...

Energy Challenge, Energy Challenge, Clean Coal UtilizationClean Coal Utilization，，The UCG Progress in The UCG Progress in ChinaChina

Indo-US Energy Dialogue Working Group on Coal & Asian Pacific Partnership Coal Mining Task Force Workshop on

UCG

14 Nov. 2006, Hotel Taj Bengal, Kolkata, India

Rick Wan, Ph.DRick Wan, Ph.DXinAo Group (www.xinaogroup.com)XinAo Group (www.xinaogroup.com)P. R. ChinaP. R. China

Contents:Contents:

2. UCG Status in China

1. Energy Challenge in China, the Role Coal Plays

3. XinAo’s Perspective on UCG

(Total installed capacity : 385 GW)

74.0%

24.0%0.2%0.2%

1.6%

煤炭核能水电

天然气

可再生能源

74%

1.6%

24%

0.2%

0.2%0.2%

74.0%

24.0%0.2%0.2%

1.6%

煤炭核能水电

天然气

可再生能源

74%

1.6%

24%

0.2%

0.2%0.2%

74.0%

24.0%0.2%0.2%

1.6%

煤炭核能水电

天然气

可再生能源

74%

1.6%

24%

0.2%

0.2%0.2%

Coal

Nuclear 1.6%

Hydro 24%

Gas 0.2%

RE 0.2%

Oil and gas resources are limited; Oil and gas resources are limited;

China Energy consumption China Energy consumption highly depends on coal >70%,highly depends on coal >70%,

Mining costs increasing due to Mining costs increasing due to the higher safety requirement the higher safety requirement and new government regulations;and new government regulations;

Government is looking to Government is looking to diversify energy supply for diversify energy supply for economic, environmental and economic, environmental and security reasons;security reasons;

Energy Challenge in China, the Role Coal Plays

High lines:

Environmental degradation is Environmental degradation is becoming a national prioritybecoming a national priority

China has 9 out of the 10 top most polluted cities in the worldInternational commitments –China 2nd largest GHG emitter.UNEP Director: “China’s economic goals ‘environmentally unachievable’” due to resource constraints;

Big Problem!

Energy Challenge in China, the Role Coal Plays

High lines:

Configuration of Electrical source in China

Energy Challenge in China, the Role Coal Plays

The CoalThe Coal--Dependence status will continue for a long time;Dependence status will continue for a long time;We have to find a clean way to utilize coal, no other choiceWe have to find a clean way to utilize coal, no other choice

High lines:

Total Primary Energy Supply

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1995

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BASE CASE Updated model Updated AdvTech with All Caps and Low Nuclear

Exaj

oule

s

EFFICIENCY

RENEWABLES

NUCLEAR

CBM

NGAS

OIL

COALGasification

COALCombustion

B ase Techno log ies A dvanced Techno log iesSO 2, 30% O il& G as, 66 G t C C aps

Can UCG Do it?

Higher Efficiency , Lower emissions?

1958---1965 (SkochinskyInstitute of Mining)XinWen, ZhiaoZhuang, HeGang, Tatong, WanNan Total of 16Mines experienced the Underground Coal Nature Burning Experiment. made substantial achievement.1985---PresentXu Zhou, TangShan, XinWen, Feicheng, XieYang, FuXin, Yilang, Yima, HeBi, XinMin, total of 17 abundant mines, new mines performed UCG. XieYang

UCG Status in China

SyngasSyngas (59days) analysis(59days) analysis

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时间/天

煤气

热值

/(MJ.m-3)

Production (59days) Sustainable analysisProduction (59days) Sustainable analysis

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煤气

产量

(万

m3.h-1)

H2+CO Sustainable H2+CO Sustainable (59days)Analysis (59days)Analysis

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组分

(H2+CO)/%

Steam，Cooking Gas20032Gas Fat Coal1XinWen

Steam，Cooking Gas, power station.

200210Gas Coal4XinWen

O2, Stopped2000Long Flame Coal

1Xin Mi

Air/O2，Stopped2001Gas Coal1Fuxin

Air，Stopped200115Meager Lean Coal

1He Bi #3

20018Meager Lean Coal

1Panzhihua

Steam，Cooking gas20013.5Fat Gas Coal2Feicheng ChaoZhuang

Steam，Cooking gas20012Gas Coal2Xinwen XieZhong

Steam，Cooking gas, 20006Gas Coal3Xinwen

Pilot, stopped1998Long Flame Coal

1Yima

StatusYear Started

X10k M3/DCoal TypeNumber of Burner

Place

Some of the UCG SitesReason

？

UCG Status in China

UCG Status in China

“Long Tunnel、Large section、two Stages”

UCG Status in China

Recover the abandoned resources in Recover the abandoned resources in previous mining process,previous mining process,Extract as much as possibleExtract as much as possibleEnvironmental Safety !Environmental Safety !Government Code For Clean Coal Government Code For Clean Coal Technology?Technology?

Chinese UCG Community Chinese UCG Community ““goalgoal””Full Usage of Coal (80%);Full Usage of Coal (80%);No Explosion (O2+ CH4);No Explosion (O2+ CH4);No Leakage;No Leakage;No Ground Deformation;No Ground Deformation;No Water contamination;No Water contamination;

Chinese Characteristics:

“Long Tunnel、Large Cross-section、two Stages”

新工艺地下气化炉

LLT Underground Gasifier at Liuzhuang mine

Tunneling for the Vertical boreholes★ Hydraulic Tracking★ Explosion★ Directional drilling

UCG Status in China

Ma Ma ZhuangZhuang Pilot Site: Pilot Site: The Only bore hole drillingThe Only bore hole drilling

In Chinese 27 Year of the UCG History, they deserve the recogniIn Chinese 27 Year of the UCG History, they deserve the recognition.tion.

What we have learned:What we have learned:1.1. China is the only Country pursued UCG work continuouslyChina is the only Country pursued UCG work continuously2.2. Bad Results:Bad Results:

Still no commercialized yet. Still no commercialized yet. Making the same mistake again and again. (lack of site characterMaking the same mistake again and again. (lack of site characteristic istic study)study)

3.3. Good impact:Good impact:HandHand--on experience; (One example: Chinese CRIP)on experience; (One example: Chinese CRIP)106 page of the Text book;106 page of the Text book;6 Ph.Ds; over 100 Graduate Student on UCG6 Ph.Ds; over 100 Graduate Student on UCG

UCG Status in China

Chinese Way:

O2

Oxygen injection Pipe:

Know-How and Know-Why

UCG Lab. In CMU

GUI of Controlling SoftwareGUI of Controlling Software

Xinao’s Perspective on UCG

Found: 1989Found: 1989Employee: over 20,000 Employee: over 20,000 Over 100 SubsidiariesOver 100 SubsidiariesOver 63 CitiesOver 63 Cities3 IPO companies3 IPO companies

•• Energy DistributionEnergy Distribution•• Energy Equipment (LNG..)Energy Equipment (LNG..)•• Energy Related Chemicals (SCG)Energy Related Chemicals (SCG)•• Energy Production (UCG)Energy Production (UCG)

Facts:

19 years Growing Rate: 42%Largest Private Energy Distribution Company

Coal producing area & transportation trend in ChinaCoal producing area & transportation trend in China

Xinao’s Perspective on UCG

XinAoXinAo’’s UCG Strategy is driven by the market.s UCG Strategy is driven by the market.

DistributionDistribution33

ChemicalChemical22

UCGUCG11

Downstream: NG Supply, DME, Methano

XinAo UCG

XinAo R@D

International Cooperation

Domestic Resources

Global CooperationEnergy Chain

Integration Coal Resource

Xinao’s Advantage

Capital

Xinao’s Perspective on UCG

=

MarketMarket

ResourceResource

Tech.Tech.

Resource Technology Market

UCG Commerciali

zation

XinAo’s innovationXinao’s

responsibilities

Integration

International Cooperation

needed?

Ergo, LLNL, Carbon energy,

Uzebikstan, Europe, India…

Key componentsKey components

Xinao’s Perspective on UCG

UCG Coal：36.10 million TonsAnnual Revenue：19.98 Billion RMBUCG Investment：34.351 Billion RMB

Coal Chemical Revenue：32.68 Billion RMBCoal Chemical Investment：24.33 Billion RMB

Long-Term Goal (2020)

Total Investment：58.68 Billion RMB

Total Sales：52.66 Billion RMB，$6.6 Billion

Xinao’s Perspective on UCG

LuoYang

WuLanCaBu

HuaiBei, WanBei

XuZhou, ZaoChuang

TongJianChuan

ZhangJiaKou

LaiYuan

HuLenBeiEr

Hunan

Xinao’s Perspective on UCG

Market DrivingTarget Site

Market DrivingUCG Technology?

Thanks ！

“Available Technologies to be adapted need for chosen deposition”“…for market-Chosen Sites”

Mr. Prem SawhneyXinAo’s view

Summary