Petroleum Coke Gasification Synergies

For Refineries

Gulf Coast Power AssociationApril 14, 2005

Phil Amick, Technology Director - Gasification

How Refineries Work . . .

CRUDE OILNATURAL GAS

COKE

TransportationFuels

STEAM

HYDROGEN

POWER

RCRA Waste Specialties

Delayed CokingLeading Heavy Residue Upgrading Technology

“Delayed Coking continues to be the workhorse of conversion technology…”

SFA Pacific Inc.

Domestic Statistics• 56 of 141 refineries w/ cokers• 63% of US refining capacity

(18 MMbpsd)• 115,000 tpd cokeEd Swain; Oil & Gas Journal; Nov. 2, 2003

Source: “Petroleum Coke production from US Refineries will Increase”, Ed Swain, Oil & Gas Journal, Nov. 3, 2003

Energy Cost For Refineries• Energy is single largest

component of variable cost –about 60%4 x Labor5 x Maintenance

• 2004 price doubled over 2002

• 2004 price tripled over mid 90s

• 2004 purchased energy accounted for over $1/bbl of cash OPEX

38%

21%14%

10%

17%

Solomon Associates 2002 average US refinery data adjusted for 2004 costs

Internally ProducedEnergy

Other

Labor

PurchasedEnergy

Maintenance& Materials

Historical Energy Costs vs Petcoke Natural Gas and Fuel Coke

$0

$1

$2

$3

$4

$5

$6

$7

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

$/M

MBt

u HH

V

Natural Gas HS Petcoke Syngas from Petcoke

Coke Prices from Pace Quarterly (through mid 2004)Natural Gas Prices from EIA

How Refineries SHOULD Work…CRUDE OIL

Purchased Energy ReducedSignificantly

Coke & RCRA Waste

STEAM

HYDROGEN

POWER

TransportationFuels

Specialties

Petroleum Coke

Electricity For Export

Syngas for Hydrogen

Petcoke As Gasification Feed

• Excellent Gasifier FeedLow Ash – No need to melt rocksHigh Btu Content – 28 MMBtu/ton

• Low Cost vs Natural Gas and Other FuelsHistorically $12/ton USGC laid in Vessel(1)

• $6-12 ton refinery gate depending on handling cost• $0.20 - $0.45 per MMBtu – 10 year average• Very stable pricing reacting to high sulfur coal not oil

2004 Henry Hub Average NG = $6.14/MMBtuLast 5 years Henry Hub(2) Average NG = $4.63/MMBtuLast 10 years Henry Hub(2) Average NG = $3.43/MMBtu

(1)Pace Quarterly Reports (through 2Q 2004)(2) Henry Hub NG price is well head price per EIA adjusted by 1.108

Refinery Case Study 1Basis 200,000 BPD Coking Refinery4700 TPD high sulfur, fuel coke

60 MMSCFD Hydrogen Demand100 MW Refinery Electric Demand

1880 Mlb/hr steam at 600 psig

Refinery Co-Production Reference Plant Basic BFD

SlurryPreparation

GasificationIsland

Gas Cleanup

Power Island

Coke

Slag Sales

Steam

Syngas

CokeSlurry

Hydrogen Shift &

Purification

Sulfur Sales

Refinery HydrogenSystem

Refinery SteamSystem

Power SalesRefinery Power

System

Coke Stg

Clean Syngas

Clean Syngas

Steam

ASU

Oxygen Sulfur

Integrated Gasification CoProductionAvailability

5000 TPD Petcoke IGCP

2 x 50% Air Separation

3 x 50% Gasification

2 x 50% Gas Clean-Up

2 x 50% GT

1 x 100% STG

Equivalent Annual Availability

Power > 94%

Steam > 99%

Hydrogen > 98.5%

Data Source: “Gasification Plant Cost and Performance Optimization”, USDOE, Global Energy & Nexant, DOE Contract No. DE-AC26-99FT40342, Task 1 Topical Report

Indicative Capital Estimate

• Air Separation Unit [1] $111 MM• Gasification Island [1] $345 MM• Hydrogen Plant [1] $ 50 MM• Power Block [1] $265 MM• Soft Costs [2] $129 MM

• Total $900 MM

[1] Overnight, $2005, w/ P&C, Gulf Coast (no credit for refinery integration)[2] Owner’s costs; incl. land, license, FEED, permitting, IDC, offsites & project

development

Indicative Economics• Capex $900 MM• Opex, /yr $ 55 - $65 MM• Net Revenue/Savings, /yr $180- $190 MM• Project After Tax IRR

Full Equity 15 %30% Equity/70% Debt 21 %

• Cash cost of electricity and steam$/MMBtu equivalent $1.20 - $1.45$/bbl Crude OPEX Savings $0.40 - $0.45

Basis: Natural gas $4.63/MMBtu – Henry Hub Average last five years, EIA websiteAlternate cogen electricity $48/MW – estimated from natural gas price plus capital recovery

ASU(CT not shown)

GASIFICATIONPetroleum Coke(as

received)

Slag Sulfur

PETCOKE TO POWER, STEAM, H2 – Case 2REFINERY GASIFICATION

Heat Balance DiagramSteam Injection – 49F Ambient

Process Water

HP IP LP G

GH-P L-P

BFP

Oxygen (95% purity)

5,000 TPD

LP

CT

Air

Syn

gas

GTG (2)

DA

HP Steam

Hot BFW

Warm BFW

MP Steam

Cold Condensate

Demin.Makeup And Refinery

Condensate ReturnCONDENSER

Air

STG (1)

Process Waste Water

DSH

C

C

Warm Condensate

Hydrogen

Hyd

roge

n

Steam to Refinery

A

A

5000 TPD Petcoke

60 MMCFD H2

900 Mlb/hr 700# Steam

~420 MW Net

ASU(CT not shown)

GASIFICATIONPetroleum Coke(as

received)

Slag Sulfur

PETCOKE TO POWER, STEAM, H2 – Case 3REFINERY GASIFICATION

Heat Balance DiagramNitrogen Dilution– 68F Ambient

Process Water

HP IP LP G

GH-P L-P

BFP

Oxygen (95% purity)

5, 400 TPD

LP

CT

Air

Syn

gas

GTG (1)

DA

HP Steam

Hot BFW

Warm BFW

MP Steam

Cold Condensate

Demin.Makeup And Refinery

Condensate ReturnCONDENSER

Air

STG (1)

Process Waste Water

DSH

C

C

Warm Condensate

Hydrogen

Hyd

roge

n

Steam to Refinery

A

A

5400 TPD Petcoke

135 MMCFD H2

1100 Mlb/hr 700# Steam

~190 MW Net

Petroleum Coke can be a money-maker for refineries and cogeneration plants, when you choose the right technology.