Transcript
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BP Confidential For Internal Use Only
Feedstocks of the Future:The Case for Syngas
Dr. Theo H Fleisch and Dr. Ron A Sills
BP America
Presented at: Innovation Day 2005Philadelphia, September 7, 2005 Theo Fleisch & Ron Sills 2005
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Outline
Context: World Supplies of Natural Gas
Gas Refinery for Fuels and Chemicals based on Syngas
Large-Scale Methanol Production Economics
Methanol-to-Olefins: an Example of a Key Emerging Technology
BPs University Programs
Key Messages
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World primary energy consumption
BP Statistical Review of World Energy 2005
Oil (37%)
Gas (24%)
Coal (27%)
NuclearHydroelectricity
205 millionBOE per dayin 2004
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Natural gas production by area
North America
Europe & Eurasia **
Rest of World *
Asia Pacific
* Primarily Middle East, Africa and S. America
** Europe and Former Soviet Union
BP Statistical Review of World Energy 2005
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World gas resources are plentiful
Gas Reserves (2004) = 6,300 TCF (180 TCM)
Equivalent to almost 70 years supply
Additional gas from Yet to Find Gas and Unconventional Gas areestimated to be many times todays gas reserves
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Remote gas: an inexpensive feedstock
Location $/million BTU $/BOE*
Remote 0.5 3
1.0 6
1.5 9
U.S.** 6.1 35
* Barrel of oil equivalent = 5.8 million BTU
** average gas price at Henry Hub in 2004;average oil price about $40/bbl.
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Todays gas to chemicals production
Natural Gas
CO and H2Syngas
HYDROGEN METHANOL
Fuel Additives
Formal-dehyde
Aceticacid
AmmoniaRefinery Products
DME
World consumption of naturalgas is 260 bcfd.
Natural Gas ConsumptionAmmonia production -12 bcfdHydrogen for Refinery Products 6 bcfd
Natural Gas ConsumptionMethanol production 3 bcfd
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Gas refinery for fuels and chemicals
Natural Gas
HYDROGENSynthetic Crude METHANOL
CleanDiesel Jet
Fuel
NaphthaLubricants
Fuel AdditivesOlefins
Formal-dehyde
Aceticacid
AmmoniaRefinery Products
DME
CO and H2Syngas
Natural Gas ConsumptionGTL-FT production 0.7 bcfd by2006, and Increasing to 4 bcfd by 2012
GTL-FT
n-paraffinsOther chemicals
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Natural Gas
HYDROGENSynthetic Crude METHANOL
CleanDiesel Jet
Fuel
NaphthaLubricants
Fuel AdditivesFuel
GasolineAromatics
Olefins
Formal-dehyde
Aceticacid
AmmoniaRefinery Products
FuelDME
n-paraffinsOther chemicals
Gas refinery for fuels and chemicals
CO and H2Syngas
Large-scaleMethanol/DMEProduction
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Natural Gas
HYDROGENSynthetic Crude METHANOL
CleanDiesel Jet
Fuel
NaphthaLubricants
Fuel AdditivesFuel
GasolineAromatics
Olefins
Formal-dehyde
Aceticacid
AmmoniaRefinery Products
FuelDME
Alternative feedstocks for syngas production
Coal Biomass
CO and H2Syngas
Feedstock diversification
Coal-based plants inChina R&D, pilots in
biomass gasification.
n-paraffinsOther chemicals
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Methanol plant costs are decreasing
Titan and Atlas Methanol Plants
Trinidad, Early 2004
BP and Methanex announced that theindustry pacesetter 5,000 TPD Atlas plantstarted-up on June 2, 2004.
Atlas
Titan
Trends in methanol capex
0
200
400
600
1 2 3 4 5 6 7 8 9 10 11 12Projects over last 15 years
M$/Mtpa
Titan: 0.9MMtpa (2500tpd)
Atlas: 1.8MMtpa (5000tpd)
The Atlas and Titan Methanol Plants in Trinidad produceabout 8% of todays methanol
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Lets go back a few years
Transition: Chemical to Fuel/Chemical Methanol
8
Methanol Cost, $/ton50 100 150
4
2
0
$/MMB
TU
Future?
Today
Conventional Fuelsat $20/bbl crude
Illustrative Economics based on $20/bbl oil
Atlas
Past
6
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Methanol to Olefins (MTO) Technology
Technology Developers MTO
UOP/Norsk Hydro ExxonMobil
MTP (methanol to propylene)
Lurgi/Statoil
UOP/Norsk Hydro Technology
Reaction
Fluidized bed reactor First plant planned for Nigeria
CH3OH
SAPO-34 Catalyst425-500 CExothermic
99,5% conversion
C2H4C3H6
75-80%carbonyield
Reaction by-products:
Butenes, C5+,C1-C4 paraffins,
Water, oxygenates, coke, H2,
COx
Eurochem/Nigeria Gas to Polymers7,500 tpd methanol, MTO
Lurgi MTP announced in Iran
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Drivers for the gas refinery
Ample Gas Resources:Technology Developments
Other
Higher Oil Prices
Low-cost
Suitable location Learning and on-goingdevelopments
Economies of scale
Reduce technology risk
Improve economics
Gas monetization
Large fuels market
Environmental benefits
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University programmes: MC2 and CEFTF
BP is working with Berkeley, Caltech and Chinese Academy of Sciences in China(Dalian and Tsinghua). Over 60 researchers and faculty focus on creatingbreakthrough technologies.
Clean Energy: Facing the FutureMethane Conversion Cooperative
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Key Messages
Gas will remain the dominant feedstock for syngas generation due to amplesupply, low price, moderate capital cost for steam reforming and other
syngas generation technologies. The Gas Refinery for Fuels and Chemicals of the future will be based on
syngas conversion via GTL-FT and large-scale methanol/DME production.
Methanol-to-Olefins (MTO) is a key emerging technology.
Key university programs are important sources, for BP, of innovativetechnologies for the Gas Refinery.
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Back-up
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Topic Questions
What is the optimum common process steps to commercialize innovativetechnology, particularly to reduce the risks associated with new technology.
Generally syngas-derived fuels/chemicals have a lower carbon efficiencythan oil-derived chemicals. How can this adverse affect on global warmingbe mitigated.
As more and more scientists and engineers are educated in China and India,
how can companies and universities in developed countries best collaborateto expedite the development of new technologies.
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Conclusion
Syngas becomes an increasingly important feedstock
Portfolio of technologies
Continuous improvements in efficiency and cost
Many efforts in gasification and syngas clean-up
Methanol/DME become low cost, versatile fuels and feedstocks
Large fuel markets lower cost
Olefins, aromatics, paraffins
GTL-FT products
Co based: diesel, naphtha, linear alkylbenzene, waxes, base oils
Fe based: diesel, ethylene/propylene, alpha-olefins, alcohols, acetone
Integration into Gas refinery
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The Gas Economy
Natural Gas:
Step-child in 20th century
Dominant fuel of the 21
st
century Abundant supplies but ~40% stranded
Resource Push
Need novel gas transportation options (beyond pipelines/LNG)
Need new markets for gas
Market Pull
Need for clean, improved liquid fuels
Need for low cost chemical feedstocks and improved processes
Need for Gas To Products, GTP
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Crude oil prices since 1861
BP Statistical Review of World Ener 2005
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Large Methanol/MTO/DME plants (built, proposed)
Iran Methanol 1- 55,000 TPD
Trinidad (2) 5,000 TPDAtlas
Methanol Holdings
Oman Methanol - 5,000 TPDQatar Methanol - 6,750 TPD
Nigeria/Eurochem MTO7,500 TPD
PetroWorld/Starchem>12,000 TPD
Qatar/PetroWorld>12,000 TPD
Iran/Lurgi MTP2500TPD
Proposed Supply for New Methanol/DME Markets:
23 MMTPA methanol (70% of current capacity)
(Equivalent to 200,000 bpd GTL-FT)
Methanol
Methanol for Power/Olefins
Memo: Not including
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Qatar: The birth of the GTL business
SasolOryx
35kb/d; 2006 start-up
NigeriaSasolChevron
35kb/d
ShellPearl
140kb/d (Nov. 2003)
SasolChevron
100kb/d (March, 2004)
ExxonMobilAGC 21
160kb/d (July, 2004)
Colombia Condor
BP
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T d th i f d t k f li ht l fi i
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Today, the primary feedstock for light olefins isnaphtha
Source: Hydro Presentation by Henning Reier Nilsen at EFI Conference in Norway, May 2005
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BP Annual
Report 2004
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Synthesis gas is the fuel of the future
Synthesis gas is a mixture of carbon monoxide (CO) and hydrogen (H2).
Synthesis gas can be manufactured from natural gas and coal using
conventional technology, and from biomass using emerging technologies.
World supplies of natural gas and coal can support increased future demand.World supplies of oil are mature and not as ample.
The location of world supplies of natural gas is remote from markets.
Future synthesis gas refineries that convert remote natural gas and coal tolarge-volume conventional fuels will provide an economical supply of synthesisgas as a petrochemical feedstock.
Conventional and emerging technologies can convert synthesis gas to broad
range of petrochemical feedstocks.
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Good stuff
World consumption of natural gas is 260 bcfd (2004). LNG trade is 17 bcfd (2004). 49bcfd traded across country borders by pipeline.
Ammonia is largest user of hydrogen.
Hydrogen demand (2004) from natural gas for chemicals manufacture (mostly
ammonia) is about 32 billion scfd for ammonia (12 bcfd natural gas) and 5 bcfd formethanol (2.7 bcfd natural gas)
Current worldwide on-purpose hydrogen production for refineries is about 15 billion scfd(5.5 bcfd natural gas), growing at 5% per year. 79% from steam methane reforming,17% from steam naphtha reforming. 4% from gasification.
Natural gas will remain the dominant feedstock for syngas generation due to amplesupply, low price, moderate capital cost for steam reforming and other syngasgeneration technologies.
Todays chemical uses of syngas include ammonia, methanol and oxo chemicals(addition of syngas to olefins to form ketones and aldehydes.
Gas reserves are equivalent to oil reserves. (1.11 vs 1.15 trillion boe)
Gas production rose in every region except North America, where US output continuedto decline. In Europe, growth in the Netherlands, Russia and Norway more than offsetthe ongoing decline of UK output.
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Key Message
TheThe feedstock of the future is syngas (carbonmonoxide and hydrogen) derived fromgeographically-remote natural gas resources.
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