June 2015
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1
Minimizing associated gas flaring with smaller
scale methanol production
Esben Sorensen, Haldor Topsoe Inc.
EFI Gas Flare Reduction & Monetization Forum; Denver Marriott City Center
Denver, Colorado; 15 – 17 June 2015
Haldor Topsoe Company
• Established in 1940 by Dr. Haldor Topsoe. Private 100% family owned company
• Global market leader in heterogeneous catalysis with a 75 year long track record
• 2,700 employees (2015) in 11 countries across five continents.
• HQ in Lyngby, Denmark, with regional offices in Houston TX, India, China, Russia, Bahrain, Malaysia, South Africa, Brazil and Argentina
• Three key operating business units: Chemicals, Environmental, and Refinery. A fourth unit, New Business Unit, focused on developing new technologies
• Revenue about $1 billion (2014).
• Founded on the belief that applied fundamental research is key to build and retain a leading position in catalysis
• Close to 10% of revenues annually applied to support R&D efforts
• Basic research and catalyst development done by 300+ world class scientists
Active phase Pore structure Catalyst Reactor
Services:
• Catalysts
• Technology/licensing
• Engineering
• Hardware
Catalyst manufacturing plants:
• Frederikssund, Denmark
• Houston, Texas
• Future: China, Brazil
3
Research and
development
Technology
Catalysts
Technology Licensing
Catalyst & HW sale
The Topsoe Philosophy
Client
~10% of revenue spent on R&D
NG flaring world wide and in North Dakota
ND Flaring rate in August 2014: 28% or 375 MM SCFD ( ̴ 18,000 MTPD MeOH)
World wide flaring rate 2011: 1̴4,300 MM SCFD (World Bank Estimate)
http://skytruth.org/viirs/
The Challenge
“The corporate world in itself means nothing
unless it improves the lives of people and
the conditions in poor countries.”
Haldor Topsøe
• How do we preserve the value of the NG in
a transportable form at lowest cost?
• Produce a valuable commodity product
• Match available resources
• Proven technology
• Low OPEX and CAPEX
If we can reduce gas flaring in North
Dakota, we may be able to use the
same approach world wide
Gas flaring in ND
• Time period: Jan 2012 – July 2014
• No. of registered wells: 9,395
• GPS coordinates
• Monthly flaring data: SCFM + number of days in operation
• Twenty most promising wells analyzed
• Average production: 0.9 MM SCFD
• 45 STPD MeOH per well
(conservative estimate)
Typical Methanol production cost (OPEX+CAPEX) Natural Gas as feed stock
Minimum continuous rate to ensure profitability: 40 MM SCFD NG ̴25 MM SCFD associated gas due to lower cost and higher LHV
Typical Flare Rates – large wells in N.D
0
500
1000
1500
2000
2500
14/09/2011 01/04/2012 18/10/2012 06/05/2013 22/11/2013 10/06/2014 27/12/2014
Nm
3/h
fla
red
gas
Date
Well no. 1
Well no. 2
Well no. 3
Well no. 4
Conversion of associated gas to methanol or gasoline
• Time period: Jan 2012 – July 2014
• No. of registered wells: 9,395
• GPS coordinates
• Monthly flaring data: SCFM + number of days in operation
• Twenty most promising wells analyzed
• Average production: 0.9 MM SCFD
• 45 STPD MeOH per well
(conservative estimate)
• Stable assoc. gas supply required
• Minimum 15 years
• About 25 MM SCFD (1400 STPD MeOH or 4,000 bpd gasoline)
• Combining of gas sources is required
Options available
• Pipe-line for transportation of associated gas
• Expensive, does not match NG-specifications and risk of liquid drop-out
• LNG
• Very expensive in small scale, transportation issues (cost & efficiency)
• Petrochemicals production
• NH3 (complicated)
• Methanol (possibly as intermediate product)
• Diesel (complicated)
• DME (not yet a commodity product, requires pressurized transportation)
• Gasoline (complicated but with good market fit)
• High levels of sulfur in gas may necessitate presulfurization option for WSA
production
Options available
• Pipe-line for transportation of associated gas
• Expensive, does not match NG-specifications and risk of liquid drop-out
• LNG
• Very expensive in small scale, transportation issues (cost & efficiency)
• Petrochemicals production
• NH3 (complicated)
• Methanol (possibly as intermediate product)
• Precursor for gasoline, formaldehyde, acetic acid, DME a.o.
• Minimize scope at gas site
• 3 x 8 MMSCFD sites instead of 1 x 25 MM SCFD site
• Diesel (complicated)
• DME (not yet a commodity product, requires pressurized transporation)
• Gasoline (complicated but with good market fit)
Topsoe’s methanol strategy
• The attractiveness of upgrading syngas
into methanol for use as a
transportation fuel or in chemical
production is increasing around the
world.
• Our methanol solutions can be
integrated with other processes to
enable feedstock and co-production
flexibility.
• Ensure reliable operation, extremely
high energy efficiency, and superior
conversion levels.
• Help achieve the best economic
performance for customers, in both the
short and long term.
Haldor Topsoe methanol products timeline
SMK
One-step
reforming
1st
methanol
plant
1969
MK-101
1986
Two-step
reforming
1996
Standard
co-
production.
1999
3,000
MTPD
plant
2003
5000
MTPD
plant
MK-151
FENCETM
2009
Flexible
co-
production
2014
MK-121
2000 1992
Boiling
water
reactor
------- Technology -------
------- Catalyst -------
ATR
Syngas for methanol production
• Key specification of syngas
• M=(H2–CO2)/(CO+CO2)
• must be close to 2
• High CO/CO2 ratio desirable
• Low CH4 content
Selection of syngas technology for methanol
NG as feed stock S/C H2/CO CO2 CH4
SMR (one-step reforming) Conventional tubular reforming
2-3
4-5
High
Medium
Two-step reforming Combined tubular and oxygen-blown
secondary reforming
1.5-1.8
~3
Medium
Low
ATR reforming Stand-alone oxygen-blown reformer
0.6
2.3
Low
Low
Conclusion: SMR is today not attractive for methanol production from NG
Technology comparison – NG as feed stock
5,000 MTPD MeOH plant Two-step reforming ATR
Energy consumption, including
oxygen, MM BTU/MT MeOH 27.6 27.3
ISBL cost including ASU 100 91
Catalyst cost 100 95
Oxygen consumption 100 145
Reforming section duty 100 34
S/C ratio 1.8 0.6
CO/CO2 in synthesis gas 3.0 5.4
Methanol production by ATR
Oxygen/steam
Steam Steam
Natural gas
Purge
gas Hydrogen
recovery
Methanol
reactor
Autothermal
reformer
Hydro-
genator
Sulfur
removal
Pre-
reformer
Make-up
comp.
Rec.
comp.
Raw methanol
ATR vs. SMR for associated gas
• Autothermal reforming of associated gas with AGR
• Tref=1880oF, Pref=470 psi, S/C=0.6
• M=1.97; CO/CO2=9.6, CH4=1.0%
• Steam reforming of associated gas
• Tref=1560oF, Pref=350 psi, S/C=2.5
• M=2.4; CO/CO2=1.6, CH4=4.9%
• Autothermal reforming of associated gas with AGR
• Steam reforming of associated gas
Economic Analysis of a specific case
• Procedure
• Detailed PFD’s
• One-line specifications for all process equipment
• US Gulf coast ISBL cost estimate (+/- 30%)
• OSBL cost from empiric data
• CAPEX from amortization of TIC
• Benchmarking towards MeOH from NG using ATR-based methanol production
Autothermal reforming of associated gas:
Impact of feed stock and scale on production price
Typical methanol production costs
Feed stock / Process Capacity CAPEX 1)
USD/ST
OPEX
USD/ST
Sum
USD/ST
Natural Gas / ATR 5,000 MTPD 73 56 2) 129
Associated Gas / ATR 430 STPD 196 0 196
Associated Gas / ATR 1400 STPD 140 3) 0 140
1) Incl. insurance & utilities etc. and assuming OSBL-cost = ISBL-cost and
ROI=12%. Exchange rate: 1 Euro = 1.10 USD
2) Assuming 2.5$/MM BTU as NG cost
3) Assuming a cost scaling factor of 0.72
Cost estimates are from 2013; actual costs depend on S-content in gas (max
100 ppm)
• Conversion of associated gas to petrochemicals is an attractive way to
reduce gas flaring
• Combining of gas sources is required to reach an attractive production
scale – minimum 25 MMSCFD for 15 years
• A company such as Haldor Topsoe can provide all the required
technology
• Infra-structure must be built to support this initiative
Conclusions
Thank you for your attention
Our values:
Business: We go the extra mile to create lasting
value for our customers.
Science: Our passion for science and innovation
strengthens our business.
People: Topsoe is a great place to work and to
have worked.
Society: We create sustainable solutions that
make a difference to the world of today – and
tomorrow.