Coal-to-Liquid via Gasel® and H-Coal®

Bharat Goenka

1

• Axens in brief

• Opportunities for Coal to Liquids

• Processes for Coal Liquefaction (Direct/Indirect)

• Guidelines for a choice & Economical data

Agenda Agenda

2

Markets Served & Ambitions

Ambitions

• Benchmark company for Clean Fuels and Aromatics production,

• Leader in purification for olefins/polyolefins, syngas, refining and petrochemical, and natural gas streams,

• Innovator in the biodiesel market and syngas to liquids technology.

Business Units

Markets Served

3

Strongly Established in the Oil Refining Industry

~ 42% of worldwide running

oil refineries operate at least

one refining unit licensed by

Axens

~ 20% of worldwide consumption

of gasoline and on-road diesel is

produced by refining units licensed

by Axens

4

• Axens in brief

• Opportunities for Coal to Liquids

• Processes for Coal Liquefaction (Direct/Indirect)

• Guidelines for a choice & Economical data

Agenda Agenda

5

-5

5

15

25

35

45

Source: Axens & other sources (2010)

Indian Fuel demand 2010 - 2030

Other* = Kerosene (≠ Jet Kerosene), Refinery Gas, Petroleum

Coke, NGL, Lubricants, Bitumen, Paraffin Wax, Refinery Losses, …

2010-2030

AAGR

Other* 2.1%

LPG 4.1%

Naphtha - 0.4%

Motor Gasoline 7.4%

Jet Kerosene 2.4%

On-road diesel 7.5%

Off-road diesel 4.7%

Fuel Oil 0.7%

MMTPA

Incremental Capacity 2010-2030

During this period, Indian middle distillate demand is expected to grow by 3.9% per year

6

Why use coal to make fuels ?

• Energy Security • Extent of proven reserves • Geographic distribution of proven reserves

• Environmental performance • Clean Coal Technology • Possibility for CO2 capture

• Economic Performance • Crude oil price volatility • Competitive with alternatives • Market is there

7

Coal-to-Fuel: Challenges

Primary requirement: Increase hydrogen-to-carbon ratio to convert coal to liquid fuels

1.9 1.8 1.8

0.8

0

0.5

1

1.5

2

Gasoline Diesel CrudePetroleum

Coal

H/C Atomic Ratio

8

Coal Liquefaction Routes

Fuels

CTL routes

DCL

H2

Coal

Syngas (CO+H2)

ICL

H2

Oil

ICL DCL Axens’ CTL Technology Gasel® H-Coal®

9

Agenda

• Axens in brief

• Opportunities for Coal to Liquids

• Processes for Coal Liquefaction (Direct/Indirect)

• Guidelines for a choice & Economical data

10

Principles of the DCL Route

Sulphur /

Ammonia

Liquefaction H-Coal®

Treatment

Refining H2

Liquid

Products

LPG

liquid

effluents

gaseous

effluents

Solid

Products

Solvent

CO2

Capture

Gasif. O2 Shift

AGR PSA

Raw

Syngas

Co

al

Typical Yield

3.5 to 4 bbl/ton maf

Preparation

11

Axens H-Coal® Process

• Based on the H-Oil® process

• Used for the Conversion of the Heaviest petroleum

fractions to Distillate Liquid products

• First commercial unit in 1968, still in operation

• 14 H-Oil units licensed with a cumulated capacity of

584,000 BPSD

• H-Coal Development History

• Pilot plant development started in 1960s

• Scale-up to demonstration scale (200 TPD) in 1980s in

Catlettsburg, USA

12

DCL Alliance

• Axens and Headwaters create a strategic alliance in January 2010

• Provides single-source solutions for ultra-clean fuels via Direct Coal Liquefaction (DCL)

• DCL applications can include coal-only or co-processing of coal with refinery residues and/or biomass

C T LO AL O IQ U ID S

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Hands-on Experience: Shenhua DCL Complex

World's Only Operating DCL Complex. Capacity: 6000t/day of coal / 22000 BPD of products. Start-up December 2008. 3 years in operation

The Most Advanced DCL Technology Available

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Raw

Syngas

Principles of ICL Route

Preparation

Gasif. Product

upgrading

H2

Liquid

Products: Naphtha

Jet

Diesel

CO2Capture

O2

Fischer-Tropsch Synthesis

H2 + CO

Purification

Axens Scope = Gasel® process

Raw Liquid

Effluents (FT waxes)

Typical Yield

2.5 to 3 bbl/ton maf

Co

al

Shift AGR PSA

Co-developers :

15

Gasel® FT Synthesis

• Development and scale-up by Eni & IFP EN since 1996

• Low Temperature FT in a Slurry Bubble Column (SBC)

• 20 to 30 barg / 210-230°C

• Stable, robust, high throughputs

• FT Catalyst: Cobalt on Alumina powder

• Formulated and approved by Eni & IFP EN

• Developed and manufactured by Axens

• High activity and resistant to attrition

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Main items tested and proven on the 20 bpd unit:

• FT Catalyst Performance (activity, selectivity) in a real Slurry Bubble Column Reactor

• Pilot Process Scheme = Industrial Process Scheme

• External Liquid waxes/Solid catalyst separation

• Slurry handling

• Operational experience: 20,000 hours-on-stream since 2001

Fischer-Tropsch Pilot Plant

eni’s Sannazzaro Refinery Start-up in 2001

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FT Slurry Bubble Column Reactor

1. Gas flows upwards (~ plug flow)

2. inducing slurry recirculation

SBC system allows • Nearly isothermal conditions • High catalyst efficiency • High capacities per Reactor up to 15-20,000 bpd per Rx • On-line catalyst make-up

Gas bubbles

Slurry

Outlet

Offgas

Wax

Slurry

Return

Liquid

recirculation

Gas flow

Profile

Dense phase or slurry = Liquid + Catalyst

High Catalyst concentration

Syngas inlet

Catalyst concentration in the slurry and Operating Temperature are constant in the reactor

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ICL: Axens’ Integrated Offer

• Axens is the only technology licensor

• To offer a complete FT + Upgrading technology chain for the conversion of Syngas to Jet and Diesel

• To manufacture associated FT and Upgrading catalysts

• Gasel® selected for several XTL projects ranging from 2,000 to > 50,000 bpd, based upon its reliability, and strong R&D support

• Gasel® License awarded by ForestBtL for the

3,700 bpd Ajos BtL project in Finland (start-up in 2016)

19

Agenda

• Axens in brief

• Opportunities for Coal to Liquids

• Processes for Coal Liquefaction (Direct/Indirect)

• Guidelines for a choice & Economical data

20

ICL / DCL: Choice of Technology Guidelines

Capex / Opex

Pro

du

ct y

ield

/ t

co

al

Ava

ilab

le C

oal

Qu

alit

y

DCL

ICL

10-20 %

1 b

arr

el/

ton

ma

f

Ash < 15%

H/C [0,7 – 0,8]

Desired Product Quality

21

ICL / DCL: Product Split & Properties

• DCL distillates are naphthenic (good cold flow properties, average cetane, high density)

• ICL distillates are (iso-)paraffinic (very high cetane, good cold flow properties, low density)

Properties Ex-DCL Typical spec Ex-ICL/GTL

Density @ 15

C (kg/m3) 880 820 – 845 780

Cetane number (CN) 45-51 > 51 > 80

DCL ICL

Chemical

Nature

Aromatic Paraffinic

Density High Low

Cetane Average very High

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ICL and/or DCL ?

• Blending often required to fully tap product potential; Intelligence of target market required

• ICL + DCL can make on-spec products in a HCL hybrid scheme

• IRR improvement with HCL vs. ICL or DCL

Coal Preparation Coal

Coal Liquefaction

Gasification

Upgrading Section

F-T

H2

WGS

H2 Products

Axens expertise can help Project Decision 23

Conclusion

• Coal liquefaction is a strategic and economic alternative to importing oil for countries with significant coal reserves

• Choice between ICL and DCL routes is a case-by-case decision:

• Feedstock characteristics (Coal/Petcoke) – Ash, H/C, volatiles … and availability (capacity)

• Comparison of yields and economics for both routes

• Desired final product quality

• Axens is equipped with both ICL (Gasel®) and DCL (H-Coal®) technologies to help its Customers make the right choice

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