Presented at the Iowa Energy Center Meeting Ammonia-The ... · PDF file1 Coal to Ammonia Presented at the Iowa Energy Center Meeting Ammonia-The Key to a Hydrogen Economy By Mark Ibsen

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Coal to Ammonia

Presented at theIowa Energy Center Meeting

Ammonia-The Key to a Hydrogen Economy

By Mark Ibsen

Rentech Development Corporation

October 13, 2005

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Presentation• Rentech Introduction• Producing Ammonia from Coal/Petroleum Coke

Gasification• What is Fischer-Tropsch?• East Dubuque, Illinois • Environmental Benefits• Food Security and Energy Security-Fuel for First

Responders, and the US Military

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Rentech – A Brief History

• A 23 year old Denver, Colorado Energy Technology Company– Traded as “RTK” on the American Stock Exchange

• Engaged in the Fischer-Tropsch Development– Coal-to-Liquids (FT/CTL) business – NG-to Liquidss (FT/GTL) business

• Licenses its patented and proprietary technology– 20 U.S. and 1 foreign process and materials patents

• Rentech Development Corporation – Subsidiary of Rentech Inc. – Responsible for ownership and development – Gas-to-Liquid and Coal-to-Liquid Projects

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Coal to Ammonia a New Concept?

• Not really but for the United States, yes• Today, in the US there are two projects operating

– North Dakota Gasification – Coffeyville Resources

• World Wide a number of facilities – China (2500 small local facilitates)– Portugal (uses refinery bottoms) – Germany, Czech, India, Brazil all have ammonia plants from coal

• Key driver, high NG costs

5Color Legends:

Coal Gasification & Ammonia

SlurryGasifier

Coal Handling

ProcessBoiler

Steam

Parasitic Power Power - 10-20 MW

Hot BFW

SynGas Cooling/Cleaning

Steam Turbine

~

SyngasH2/CO

N2

O2

ASU

Air

HP

Acid Gas Removal

BFW

Gasification Misc

CO2

Indicates units that may or may not be needed.

Process CondensateWater Recycle

ClausUnit

SulphurLoading

H2S

Coal to Ammonia

NH3 - 1500 stpd

ExistingCO2

RemovalPSA

LTSRctrs

NH3Loop

H2

MPLP

Purge to Vent

PSA Offgas

ExportSlag

Ammonia

Water

Coal - 2500 stpd

O2

GuardBeds

Sour Shift

HTSRctrs

HRSG

Hot BFW

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North Dakota Coal Gasification

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SyngasSyngas Derived ProductsDerived Products

Syngas Electricity (IGCC)

Methanol/DME/Propylene

Synthetic Natural Gas

Hydrogen

Carbon Dioxide

Ultra-Clean Fischer Tropsch Transportation Fuels

AmmoniaUANUreaHydrogen + Carbon

Monoxide (H2+CO)

Synhytech – Pueblo, Colorado, 1992

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Gasification Ideal for Gasification Ideal for SyngasSyngas Derived Derived ProductsProducts

Coal Syngas Electricity (IGCC)

Methanol/DME/Propylene

Synthetic Natural Gas

Hydrogen

Carbon Dioxide

Ultra-Clean Fischer Tropsch Transportation Fuels

CoalGasification

CoalGasification

AmmoniaUANUreaHydrogen + Carbon

Monoxide (H2+CO)

Synhytech – Pueblo, Colorado, 1992

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11

Illinois

Project

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First Mover Opportunity: First Mover Opportunity: Producing Fertilizer, UltraProducing Fertilizer, Ultra--Clean Clean

Fuels & Electricity From CoalFuels & Electricity From Coal

Deploy gasification to save and create jobs while Deploy gasification to save and create jobs while increasing energy and food security through the increasing energy and food security through the

production of ammonia and FT liquids using Illinois coal production of ammonia and FT liquids using Illinois coal as the plant feedstock.as the plant feedstock.

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Fischer-Tropsch (FT) Synthesis

• Invented by German chemists Franz Fischer and Hans Tropsch in 1923. Used by Germany during WWII to produce 600,000 bbl/year of fuels from coal and coke

• Commercially proven worldwide197,000 BPD Current Production

• Since 1950s ~ currently 160,000 bbl/day from coal by Sasol

• Since 1993 ~ 23,000/bbl/day from natural gas by Petro SA using Sasol technology

• Since 1995 ~ 15,000/bbl/day from natural gas by Shell in Malaysia

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FT is Commercially Proven Worldwide

SASOL SASOL (S. Africa)45 years commercial– 160,000 b/d+– Feedstock Coal

SASOL’S SOUTH AFRICAN FACILITYSASOL’S SOUTH AFRICAN FACILITY

MossGas MossGas (S. Africa)11 years commercial– 22,500 b/d+– Feedstock Natural

Gas

Shell Shell (Malaysia)9 years commercial– 15,000 b/d+– Feedstock Natural

Gas

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Why Rentech?

Catalyst Flexibility

World’s Largest FT SlurryReactor – Synhytech, 1992

GTLGTLCONOCOEXXONSHELL

CHEVRON/SASOL

CTLCTLRENTECH

SASOL

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Rentech CTL with Fertilizer

CoalPrep.

BFWSteam

Parasitic Power

Power Sales

ProductUpgrade

Syngas

N2

O2

NAPHTHA

FTDIESEL

H2 for FT Product Upgrade

BFW

FTSynthesis

Off-gas to Fuel

Crudes

ProcessCondensate

Recycle

Tail-Gas to Fuel

Exp. Sulphur

AirPower

HRSG

Water for Slurryor Heat for Drying

Gas Turbine

Pet-cokeor Coal

CO2

to Vent or Sequestration

~

~

Steam Turbine

BFW

AmmoniaPlant

Exp. Slag

Steam

Off-gas to Fuel

H2

Rem.

Gasifiers SyngasConditioning & Purification

Steam

Fertilizer Sales

ASU Vent

Waste Heat

Boileror Quench

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East Dubuque Plant

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U.S. Ammonia Production vs. Natural Gas & Coal Price

-500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,000

1996

-01

1996

-02

1996

-03

1996

-04

1997

-01

1997

-02

1997

-03

1997

-04

1998

-01

1998

-02

1998

-03

1998

-04

1999

-01

1999

-02

1999

-03

1999

-04

2000

-01

2000

-02

2000

-03

2000

-04

2001

-01

2001

-02

2001

-03

2001

-04

2002

-01

2002

-02

2002

-03

2002

-04

2003

-01

2003

-02

2003

-03

2003

-04

2004

-01

2004

-02

2004

-03

2004

-04

mat

eria

l ton

s

0.001.002.003.004.005.006.007.008.009.0010.00

$/MM

Btu

ammonia production

natural gas price

Source: Ammonia production, U.S. Department of Commerce; natural gas price - average spot-deliverd-to-pipeline price, Natural Gas Week.

IL #6 Coal Price

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The RC Plant Post Conversion to Coal Feedstock Integrated Manufacturing Process

Ammonia Synthesis

Carbon Dioxide Plant

Urea Plant

Nitric Acid Plant

Ammonium Nitrate/ Blending

Plant

Coal Gasification

- Syngas Production

FTSynthesis

FT Product Upgrade

Air Separation

Plant

Air

Water

Coal

5200 tpd

CO2 Sales

Power Plant

Urea Solutions Sales

Granular Urea Sales

UAN Sales

Nitric Acid Sales

ULS FT Diesel

Naphtha

Export Power

PRODUCTS

Air

CO2

NH3

Urea

Nitric Acid

H2N2

NH3 Sales

Internal PowerSteam

Tail Gas

Sulfur

NH3

Production

EXISTING PLANT

CONVERSION

20Color Legends:

Coal Gasification Yielding Rentech FT Fuels & Power & Ammonia(Simple Recycle FT Process, 1 Gasifier)

SlurryGasifier

Coal Handling

ProcessBoiler

Naphtha Turbine

BFW Steam

Steam

Parasitic Power Power - 40 MW

Hot BFW

Air

SynGas Cooling/Cleaning

Steam Turbine

~

ProductUpgrade

SyngasH2/CO - 0.68

N2

O2

ASU

Air

HP

Gasification/FTSteam

FT Water & Ox

NAPHTHAStorage/Loading

DIESELStorage/Loading

AGR (Rectisol)

BFW

FT UnitGasification Coal

CO2

FTSynthesis

Indicates units that may or may not be needed.

GuardBeds

Crudes

Process CondensateWater Recycle

ClausUnit

SulphurLoading

Air

H2S

E. DubuqueAgriEnergy

NH3 - 920 stpd

NewHTS

Rctrs

ExistingCO2

RemovalPSA

NewLTS

Rctrs

NH3Loop

H2

MPLP

Purge to Vent

H2

Purge to Fuel 450 MMbtu/h

H2 to Prod Upgrade

H2

ExportSlag

NH3

Water

Misc

~Diesel - 4700 bpd

Naphtha- 900 bpd

Coal - 5200 stpd

1.1 MMscfd H2

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East Dubuque Plant Polygeneration ModelEast Dubuque Plant Polygeneration ModelEstimated Inputs and ProductionEstimated Inputs and Production

• Coal feedstock 5,200 TPD

Products (45% Increase in Tons Shipped)

• Ammonia production 920 TPD • FT Fuels (80% diesel) 5,600 BPD

• 248,000 gallons per day

• Electricity production 160 MW(e) • Electricity export 40+ MW(e)

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Benefits of Benefits of PolygenerationPolygeneration from Coalfrom Coal

• Standard pulverized coal power plant: 35%

• Combined cycle natural gas power plant: 45%

• Coal gasification to produce fertilizer, ultra-clean fuels, & electricity: 50+%

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Coal Cleaner?Plant Regulated Emissions

0

500

1000

1500

2000

2500

3000

3500

Existing Tons/yr Converted Ton/yr

Existing Tons/yr Converted Ton/yr

Total Emissions of: PM10VOCONOxSO2

Tons

/Yr

>30% DecreaseIn Criteria Pollutant

Emissions

With a Production increase of 45% in Tons Shipped

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UltraUltra--Clean FT Diesel Fuel from CoalClean FT Diesel Fuel from Coal

-42

-33

-9

-28

-45

-40

-35

-30

-25

-20

-15

-10

-5

0

Hydrocarbon Carbon Monoxide N0x Particulates

Emis

sion

s R

elat

ive

to a

Typi

cal D

iese

l Fu

el (

Per

cen

tage

)

Source: An average of several government funded studies by NREL & SwRI

FT Diesel

ConventionalDiesel

FTD from FTD from coal is an coal is an

“alternative “alternative fuel” under fuel” under

1992 Energy 1992 Energy Policy Act Policy Act (EPACT)(EPACT)

•• BiodegradableBiodegradable•• < 1ppm Sulfur< 1ppm Sulfur•• High CetaneHigh Cetane••Stable long storage lifeStable long storage life

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OSD Clean Fuel Initiative

Dr. Theodore K. BarnaAssistant Deputy Under Secretary of DefenseAdvanced Systems and ConceptsPentagon [email protected]

Vision: DoD catalyze the commercial industry to produce clean fuels for the military from secure domestic resources using environmentally

sensitive processes that create jobs and wealth in the United States

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Secure and reliable sources of energy Currently dependent on foreign oil

Becoming dependent on foreign refined

fuels

Supply chain vulnerability

Dependent on mega refineries- Gulf Coast

Natural disasters or Terrorist threats

Need for cleaner fuels

DoD exempt from some EPA regulations

Potential limits on deployments

Possible conflict with EU rules

DoD Impact

ground fuels, 15.1%

marine fuels, 7.9%

jet fuels, 73.5%

Military DemandApprox 4% of US Consumption

Fuel Costs

0100020003000400050006000

97 98 99 0 1 2 3 4 5

Fiscal Year

Mill

ions

of D

olla

rs

Army

Navy

Air Force

Marines

Ref: DESC Help Book

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Total Energy Development (TED)Use all secure indigenous sources of energy

Coal, shale oil, petroleum coke, renewablesDispersed production facilities

Minimize government funding—focus on qualification and certification

Make a better fuel from coal and petroleum coke (Fischer Tropsch fuels) and oil shale

Low (or no) sulfur, cleaner burning, bio-degradable, low (or no) aromatics, reduced particulate emissionsBlends near term, neat fuel future goal Stable fuel for long term secure storage of refined fuel for emergency use

Use Environmentally sensitive processes to produce fuel- Clean Coal Technologies such as the Fischer-Tropsch process,

Mahogany Shale Research Project- CO2 sequestration for enhanced oil recovery (EOR)

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-62%

-45%

-4%

-13%

-55%

-72%

-60%

-17% -15%

-52%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%HC CO CO2 NOx PM

% R

educ

tions

Hot StartNRTC

FT fuel burns more completely and emissions are significantly cleaner than

EPA certified low-sulfur diesel fuel tested in 6.5L diesel engine.

Transienttest cycles

Hot StartNRTC*

Reduced Exhaust Emissions with FT Fuel Relative to Low-Sulfur Diesel Fuel

*Non-Road Transient CompositeOver 50% reduction in particulate emissions

in transient mode.

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Even moderate fractions of FT fuel blended in JP-8 significantly reduce exhaust emission particulates

in T63 turbine engine testing.

Reduced Particulate Emissions with FT Fuel Relative to JP-8

96% reduction* in particulate emissions

at idle conditions.

-12% -13%

-33%

-41%

-57%

-68%

-78%

-25%-30%

-50%

-61%

-75%

-86%-92%

-51%

-96%-100%

-75%

-50%

-25%

0%12.5 25 37.5 50 62.5 75 87.5 100

% Volume of FT Fuel in JP-8

% C

hang

e in

Par

ticle

Num

ber D

ensi

ty

CruiseIdle

12.5 25 37.5 50 62.5 75 87.5 100

y

* Note: Results are highly dependent on engine model/year and composition of baseline fuel.

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Summary• Coal to Ammonia is not a new concept• The Poly-generation concept improves plant efficiency

and diversifies product mix• Conversion of exiting facilities improves project

schedule, reduces cost and utilizes existing plants • The Ammonia and Fuels provide for Food and Fuels

security for the United States • Both Ammonia and FT liquids are a steps toward the

Hydrogen Economy• Polygeneration provides diversity and stability to

ammonia plants during market swings.

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Questions