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The commercialisationof UCGDr Dermot RoddyChief Technology OfficerFive-Quarter Energy Holdings Ltd
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c. 10,000 billion tonnes of sub-sea coal in UK sector of the North Sea
[J L Knight et al., “Coal thickness distributions on the UK continental shelf”, Geological Society, London, Special Publications 1996, v. 109, pp 43-57.]
Scale of the UK opportunity
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ShaleTight gasCoal
Scale of the global opportunity
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Source: NREL/TP-510-34929
Gas-to-Liquid Fuel
Gas-to-Wire
Gas-to-Chemicals
Which sector to target?
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Business niche?
• Owner-operator of a few assets?
• International licensor of technology?
• Roving consultancy?
• Some combination of the above?
A diversity of business models with different implications.
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Right syngas for chosen sector?
Source: G R Couch, Underground Coal Gasification, IEA Clean Coal Centre
The right coal for the job?
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The right coal for the job?
Some coals are easier to deal with than others.
Have you got good separation from sensitive aquifers?
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Where is your competitive edge?(and is it protected?)
• Why should someone invest several £100m in yourcompany?
• More gas with less drilling?
• Better syngas quality? Lower gas-processing costs?
• A more environmentally robust proposition?
• A more reliable process?
• Confidence in commercial capability?
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Why do demonstrator projects?
• To burn a lot of money???
• To show that you have the right coal for the job.
• To demonstrate that your competitive edge is real.
• To gather data needed for designing the commercial-scale plant.
• To win the confidence of investors, customers, regulators & communities.
NB: Raising money to build a plant that is not designed to make money is hard work! 10
WATER
GAS
SHIFT
BOILER
SCRUBBERWATER
GASSHIFT
Cleansed syngasSteam
OxygenRaw Syngas
SteamAIR SEPARATION UNIT MERCURY
RIG
Gasification Raw Syngas
Hydrogen/COMethaneCO2
SELEXOL
CLAUSSULPHUR
GASSEPARATOR
CO2COMPRESSOR
Scale of investment & risk
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US competitive advantage in products manufacture
US shale gas is now six times lower cost than Asia, leading to a markeddifference in Ethylene cost ($316/ton vs. $1,717/ton)
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Teesside Chemicals Cluster
North SeaCrude
Refinery 6)
Petroplus
Feedstock, inputs
various
Naturalgas
various
Olefins(cracker)
Huntsman
AromaticsHuntsman
AmmoniaTerra
Nitric AcidTerra
AcrylicsLucite
Alkylamines
NitrobenzeneHuntsman
PTADuPontSA
PETDuPontSA
Olefin exports
EO/EGDow
By Product 3)
HCNBASF
EODDow
EthoxylatesUniqema
Abbreviations:
AN: AcrylonitrileADN: AdiponitrileHMDA: HexamethylenediaminACN: AcetonitrileACH: Acetone CyanohydrinHCN: Hydrogen CyanideEO/EG: Ethylene Oxide/ Ethylene
GlycolsEOD: Ethylene Oxide DerivativesPET: Polyethylene TerephthalatePTA: Purified Terephthalic AcidKA: Ketone AlcoholAA: Adipic Acid
Key:
ProductPTA
CompanyDuPontSA
Olefins Chain
Aromatics Chain
Ammonia Chain
ACH 2)
Lucite
Export ACN 1)
BP
ANBASF
HMDABASF
ADNBASF
AnilineHuntsman
KA 4)
DuPont AADuPont
Nylon 6,6DuPont
HMDA 5)
DuPont
Propylene
Ethylene
Ethylene
Propylene
Cyclohexane
Benzene
Paraxylene
EO
EO
EG
Cyclohexane
ADN
EthoxylatesShell
EO
NaturalGas
Olefins(cracker)Sabic
AromaticsSabic
AmmoniaTerra
Nitric AcidTerra
NitrobenzeneHuntsman
PTAArtenius
PET
EO/EG
Dow
HCNBASF
Ethylene OxideDerivatives
Dow
EthoxylatesCroda & Shell
Abbreviations:
HMDA: Hexamethylenediamine
ACH: Acetone CyanohydrinHCN: Hydrogen CyanideEO/EG: Ethylene Oxide/ Ethylene
Glycols
PET: Polyethylene TerephthalatePTA: Pure Terephthalic AcidKA: Ketone Alcohol
Polyester
Polyurethanes
ACH Lucite
AcrylonitrileBASF
HMDABASF
AdiponitrileBASF
AnilineHuntsman
KA Invista Adipic Acid
InvistaNylon 6,6
InvistaHMDA Invista
Propylene
Ethylene
Benzene
Paraxylene
North SeaCrude Oil
Cyclohexane
Adiponitrile
Nylon
MMALucite
Acrylics
Distillation Petroplus
Hydrofining
Petroplus
Dieselblending
Petroplus
Imported Naphtha
LPG &Naphtha
EthyleneOxide
EthyleneGlycol
Nitram Terra
Artenius
Imported Acetone
SurfactantsCroda
ImportedFeeds
Natural Gas
Byproduct HCN
Higher Alcohols
MMA: Methyl Methacrylate
LPG: Liquid Petroleum Gas
Fertiliser
Teesside Chemicals Cluster
Gas-to-wire
Mode of running?Power Purchase Agreement?
Clean Power Plant. Artist impression 14
Similar concept to IGCC-CCS
Syngas Feedstock
Block Flow Diagram
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Noise & Nuisance
Aquifers
Seismicity
Gas explosions
Wildfire
Metal and organic substances
Pollution migration and leaks
Getting the PR right
Expect more intense questioning at larger scale
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Greenhouse gas issues
• What % of CO2 is captured from raw syngas?• Starting when?• Where to store it? When?• Who is accountable for CO2 storage facilities?• Mandatory or voluntary?• GHG emissions arising in the gas processing plant itself?• Carbon footprint of your utility supplies eg electricity for the ASU?• GHG emissions during construction?• Fate of CO2 arising from use of the gases that you sell to others?• Some may wish to draw the boundary much wider than your facility and compare
with alternative routes to various end products from different raw materials
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Products from CO2
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SHE management topics(part of licence-to-operate)
Air separation unitAuditingBorehole designBorehole integrityBorehole integrity testingCOMAH caseCommissioningControl of plant modificationsControl of drillingDecommissioning of boreholes and cavitiesDemonstrator unitDispensationsEffluent and waste treatmentEmergency preparednessEmergency shutdown of DGW® reactionEngineering/maintenance proceduresEngineering standardsEnvironmental impact of drillingFire protectionGaseous emissionsGroundwater contaminationHazard studies and design reviewsInspection and testing of pressure vesselsInstrumented protection systemsIsolation of equipment for maintenanceJob handover processesLayers of protection analysis (LOPA)
LegislationLiabilitiesMitigating operational risks during DGW® operationsMonitoringMultilayer controlsNatural gas and methaneOccupational healthOperating proceduresOverhaulsPipelinesPressure reliefPrior to drillingRegulatory authoritiesReportingSHE cultureSite selectionStartup and shutdown proceduresStoring CO2 in DGW® cavitiesSubsidenceSyngasTar formation and recoveryTechnical safety caseTransport logisticsWell engineering
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The commercialisation of UCG
Dr Dermot RoddyChief Technology OfficerFive-Quarter Energy Holdings Ltd
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