zilkha black pellets · 2014. 12. 9. · zilkha black® pellets vs. white pellets and ~80% vs....
TRANSCRIPT
Zilkha Black® PelletsThe Clean, Renewable Alternative to Coal
Renewable Power from Coal PlantsBiomass Pellets Trade Asia
Seoul, Korea
September 23-24
2
Zilkha Black® Pellets Fuel Renewable Baseload Power
An advanced wood pellet is:
• Grindable
• Low-dust
• Water-resistant
• Can be burned in existing
steam turbine power plants
• Co-fired up to 100%
• Minimal capital expenditure
Certified sustainably harvested
Carbon neutral compared to
traditional fossil fuels
Thermally treated pellet
NOT a torrefied pellet
3
Zilkha Accomplishments
Construction nearly complete on 275,000 metric
tonne/yr Black pellet plant in Selma, Alabama (U.S.)
Selma plant output sold under long term contract to
European utility
First license agreement executed with third party
covering multiple sites in Northeast U.S.
Zilkha announced a second, larger plant located in
Monticello, Arkansas (U.S.)
Additional offtake being negotiated to be supplied by
Zilkha and additional licensee plants
4
Zilkha Black® Pellet Advantages for Korea and SE Asia
Reduced shipping cost means delivered energy cost in line with
white pellets, but with better performance than white pellets
Greatly improved safety and reduced storage costs compared to
white pellets or chips
Korean companies can benefit from Black pellets:
o Genco’s who begin with co-firing can move up to a 100% conversion in
the REC market
o Trading houses who source fuel for those Genco’s can also supply fuel
to commercial and industrial customers
o Engineering companies and boiler/burner manufacturers can provided
guidance and services to Genco’s and commercial/industrial market
5
Zilkha Business Model: Emission Driven Market
Europe and Asia are focused on SOx, NOx, and CO2 reduction
and have mandates and incentives in place today
North America is focused on SOx, NOx, and Hg with tighter
emissions standards that require significant capital investment
Our current customers are European utilities who have experience
burning biomass in pulverized coal-fired units
We serve this market with a better product—Zilkha Black® pellets
o Patented Zilkha technology
o NOT torrefaction
o Durable, water resistant pellet with reduced dust and better safety
o Drop-in replacement for coal with minimal capital investment
6
Zilkha Black® Pellet Advantages
1) COST: Zilkha Black® pellets contain
and retain more energy than white
2) SAFETY: Zilkha Black® pellets are
safer than white
3) DROP-IN: Zilkha Black® pellets grind
and burn more like coal than white
Significant capex
and opex avoided
by customer
Key Criteria Zilkha Black® Pellets Conventional White Pellets
HANDLING Water-resistant Disintegrate upon water contact
LOGISTICS 19.5 GJ per bdmt
750 kg/m3
17.0 GJ per bdmt
640 kg/m3
DUST 98% durability index
99% is >74 microns (low-risk)
96.5% durability index
Dust particles prone to explosion
SAFETY No self-heating
Minimal off-gassing
Self-heating common
Off-gassing significant
GRINDING 25-35 grindability index
15 hp-hr/mt mill energy demand
15-20 grindability index
26 hp-hr/mt mill energy demand
COMBUSTION Higher ignition potential at
16.28 [kJ/kg fuel/°C]
Lower ignition potential at
12-14 [kJ/kg fuel/°C]
7
Parameter Zilkha Black®
Pellets(1)
Russian Coal #1,
G Grade(2)
Central Appalachian
(Long Fork)(3)
Powder River Basin
Coal-Eagle Butte(4)
Moisture % 1.44 7.37 7.16 23.92
Ash, Dry % 0.72 14.1 11.52 4.65
Volatile, Dry % 78.53 35.92 31.23 33.95
Sulfur, S, Dry % 0.03 0.229 1.07 0.29
Calorific Value, BTU/lb 8,447 11,218 12,114 8,966
Calorific Value, kJ/kg 19,647 26,093 28,117 20,854
Carbon, C, Dry % 54.42 69.38 66.93 53.46
Hydrogen, H, Dry % 6.03 4.69 4.43 2.71
Nitrogen, N, Dry % 0.15 2.25 1.34 0.58
Mercury, ug/g 0.01 0.52(5) 0.15(7) 0.08(7)
Source:
1) Analysis Report 0089_C1_SWPELLET_10-3-11. SGS North America Minerals Services Division. South Holland, IL. October 18, 2011.
2) LQSi Data Statistical Results By Program. SGS Minerals Services Division. 2010.
3) Tillman, David A., Duong, Dao N. B. Fuel Selection for Cofiring Biomass in Pulverized Coal and Cyclone Fired Boilers. Foster Wheeler North American Corp. Clinton, NJ. 2009.
4) Testing of Biomass/Coal Blends in WRI’s Combustion Test Facility. Western Research Institute. May 9, 2011.
5) Yudovich, Ya E., and M. P. Ketris. "Mercury in Coal: a Review." International Journal of Coal Geology 107-134 62 (2005): 117.
6) Leaner, J., James Dabrowski, R. Mason, P. Ashton, K. Murray, T. Resane, M. Richardson, M. Ginster, R. Euripides, E. Masekoameng, and G. Gericke. Mercury Emissions from
Point Sources in South Africa. Council for Scientific and Industrial Research, 2008. PPT.
7) United States. Department of the Interior. U.S. Geological Survey. Mercury in Coal--Abundance, Distribution, and Modes of Occurance. By Susan J. Tewalt, Linda J. Bragg, and
Robert B. Finkelman. 2001. USGS Fact Sheet FS-095-01.
Zilkha Black® Pellets Perform Like Common Coals
8
HANDLING: Black pellets are water-resistant
Zilkha Black®
Pellets compared
to conventional
white pellets after
soaking in water
9
LOGISTICS: Black pellets will always be cheaper to ship
~30% savings with
Zilkha Black® pellets
vs. white pellets and
~80% vs. chips
1) Each tonne of Black
pellets holds 15% more
energy than white, 140%
more than chips
2) Each ship will hold 15%
more tonnes of Black
pellets than white, and
115% more than chips
TWO DISTINCT ADVANTAGES: ZILKHA BLACK® STD WHITE CHIPS
Net Calorific Value (CV) 19.5 GJ/mt 17.0 GJ/mt 8.0 GJ/mt
Pellet Bulk Density 750 kg/m3 640 kg/m3 350 kg/m3
Cubic space onboard 58,500 m3 58,500 m3 58,500 m3
Tonnes onboard 43,875 mt 37,440 mt 20,475 mt
CV onboard 851,175 GJ 636,480 GJ 163,800 GJ
Relative freight 1.00 1.34 5.20
10
LOGISTICS: Loads Like Coal and No Problem with Rain
11
Fines = dust = very real explosion risk
Explosion mitigation takes capital beyond that required to handle coal
Venting during transportation
Off-gassing of CO, CO2, and CH4
Pellet pile self-heating
SAFETY: White pellets require extra safety measures
Source: Staffan Melin.
Safety in Handling Wood
Pellets. 2008.
12
SAFETY: Black pellets limit dangerous gas emissions
Less methane:
WHITE
BLACK
Less carbon monoxide:
WHITE
BLACK
More oxygen:
BLACK
WHITE
Zilkha Black® pellets tested as far
less reactive than white
Zilkha Black® pellets showed
reduced oxygen depletion
Oxygen depletion is a significant
operational issue. Extra workers
and other special safety restrictions
are required for workers entering
white pellet storage areas
These results @ 25 C. but
similar results @ 45 C.
13
Zilkha Technology at a Glance
Manufacturing of Zilkha Black® Pellets is
similar to the production of standard
white pellets, with the addition of our
patented thermal treatment step.
IntakeSawdust, wood chips,
pulpwood, and other
fibrous waste
DryingReduce moisture content
from ambient (~50%)
to 10-12%
Proprietary
Patented Zilkha
Thermal Treatment
Milling & PelletizingFeedstock is resized then
passed through dies to
create Zilkha Black® pellets
* - Source: Poyry Wood Pellet Multiclient, 2012
14
First Commercial Zilkha Plant: Selma, AL (275,000 mtpy)
Zilkha Black
Pellet
Technology
Wood Yard
Pelleting
First full-scale Black pellet plant
275,000 metric tpy
Construction complete October
2014
Commissioning 4Q 2014
First Black pellets ship Q2 2015
to Europe, long term contract
Export from Port of Mobile
Plant staffing: 55 jobs
Project financing
Dryers
15
Successful Full-Scale Testing by Utility Customers
Over ten (10) full-scale tests completed in European coal units and
additional tests planned
Black pellets recently delivered for a power boiler test in Oct-Nov 2014
in Japan
Unit co-firing levels from 20-70% in large units to 100% in smaller units
Units ranged in size from 80-500 MW
Black pellets stored outdoors in Sweden since Mar-2012
2,700 tonne test burn in the Netherlands, Mar-2012
Success grinding in existing coal
pulverizers (ball and roller) as well as
hammer mills
Coal mills have successfully run on
100% Black pellets
16
Many Paths for Korean Companies to Supply Market
North &
South
America
Southeast
Asia
Korean
Trading
Houses
CustomerCustomer
CustomerGenco
and IPP
Customers
Korean
Engineering
and Boiler
Companies
Black Pellet Plants