Africary - SAUCGA August2015 (Brand+vanDyk)
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Transcript of Africary - SAUCGA August2015 (Brand+vanDyk)
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Dr Johan van Dyk, Technology Manager
African Carbon Energy
Mr. Johan Brand, CEO, African Carbon Energy
August 2015
Theunissen UCG Project
Update
Africary is proud to be a founding
member of the SA UCG Association!
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Thank you to all our sponsors!
We appreciate your support!
And to Raquel Richardson from Ap22ude (Pty) Ltd
Money BoxInvestment 156 ( Pty.)
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
History of the Theunissen project
3
By 2008 he has successfully developed
the first UCG proposal at Sasol; proving
the value of this exciting technology.
Mr Brand became the UCG Business
Manager for Sasol, Director of the UCG
Association in London + the Technical
Director of Wildhorse Energy
Mr Monkoe left Sasol Mining in 2006 to
become COO at Ingwe Collieries and later
non-executive Director at Optimum Coal.
He was part of the Optimum buy-out
where he retained a substantial
shareholding and became financially
independent at the listing of Optimum.
In 2001 Johan Brand (Mining Engineer) and
Eliphus Monkoe (Operations Manager) met
at Sasol Mining as part of the Brandspruit
Mining team.
Eliphus told Johan about his experience in
the Former Soviet Union where UCG has
been implemented since the 1940’s.
Together they initiated the implementation of
UCG at Sasol.
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
African Carbon Energy (“Africary”)
• African Carbon Energy was established as a South African coal mining company in 2007 as a 50:50 Partnership between Johan and Eliphus.
• The company was founded on our expertise in mining, exploration, gasification and specifically Underground Coal Gasification (UCG) and our business philosophy then is to support equity investments with operational involvement
• From 2011 to 2012 Africary finalized the deal for a massive coal resource from BHP Billiton SA that is ideally suited for UCG in the Free State.
• We also bought 2 farms ideally placed for our first project.
• Our business philosophy grew to invest and develop our own UCG to Power project on the Theunissen resource for implementation in the DoE process.
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
AFRICARY’s vision
“To build own and operate a
Modern Commercial UCG plant”and then grow to large scale Poly-generation
Low cost and abundant resource “COAL”
Growing market demand “ELECTRICITY”
rising price and 30 year off-take agreement
Clean, Green and efficient technologies “UCG”
Use learning and experience from other projects to
fast-track and focus
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Sasol above ground gasification process
Steam,
oxygen or air Ash
Syngas for
electricity
generation
Coal
Coal Mining
Coal exploration
& drilling
surface
Coal seam
Ash dump
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
With UCG, the same coal gets
mined and gasified in one step
Syngas for CTL or
electricity generation
Coal exploration
& drilling
surface
Coal seam
Oxygen
or air
Ash
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Coal gasification is an old concept
UCG has a long history… • Coal gasification was used more than 150 years ago to produce “town-gas”
for lighting streets in the UK and the US • Sasol (South Africa) has been gasifying coal for over 50 years and currently
produces about 40% of the nation's current liquid fuel requirements (160,000 bbl/day)
• Commercial UCG has been successfully operated in 15 mines for more than 50 years in Russia – supplying UCG syngas for power generation
8
First
UCG
test
1930
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More than 30 countries in the World are currently undertaking UCG activities
9
Source: UCG Association
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TUCG Setup – trident system
Injection well
Production well
10
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COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Bloodwood panel 2 Dry Gas Composition – Air Blownaverage of 12 months production
Primary Constituents – Dry Gas Basis Average – Mol %
Hydrogen (H2) 20.94
Methane (CH4) 8.60
Carbon Monoxide (CO) 2.56
Ethane (C2H6) 0.54
Carbon Dioxide (CO2) 21.63
Nitrogen (N2) 44.67
Average Calorific Value – LHV (MJ/Sm3)
(MJ/Sm3)
5.71
Average Calorific Value – HHV (MJ/Sm3)
(MJ/Sm3)
6.46
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Carbon Energy Syngas HHV for 1 year
average
+ 1 standard deviation
- 1 standard deviation
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Over a 6 month period with the injection flow rate kept constant 1500 nm3/hr, the
graphs indicate changes in volume of syngas produced and the energy content of the
syngas.
There is clear correlation between these two parameters, when there is more gas
being generated, the gas is of higher energy content.
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
15
UCG Gas Engines in commercial operation
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Project basic mass and energy balance
Coal to Gas:
Energy conversion is
75% to 85% efficient
Gas to Electricity:
Energy conversion is
38% efficient
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
17
Why UCG in SA?
With Eskom’s 7 years production experience at Majuba – UCG is a proven SA
technology
With increase in tariffs electricity generation by gas engines is cost competitive!
The graph below shows the increase in the average annual selling price of Eskom
electricity from 17.91c/kWh in 2006 to 79,73c/kWh in 2015 and is set to continue this
upwards trend (www.NERSA.co.za, 2015)
17
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Where is Theunissen?
The Africary Rights include all coal exploration licences previously
owned by BHP Billiton. The Rights comprise an area of 322km2 and
consist of:
A northern (34km2) coal resource area
A southern (173 km2) coal resource area
A western (122 km2) coal resource area 18
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Coal Target Blocks
The coal tonnage (gross-in-situ)
in the target farms are:
• Inferred as 20.5 million tons
• Measured as 3.7 million tons
The coal tonnage in the
rest of the resource is
Inferred at 976 million
tons
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Coal Geology: Proven coal supply!
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Exploration &Electro-seismic grid
Exploration Drillingo ±4Mt of measured resource from the #3 seam
o Proximate Analysis
o Ultimate Analysis
o Fischer Analysis
o Hydrogeology – porosity and conductivity
o Rock strength
3D Electro-Seismico Confirm Aquifers
o Confirm coal seam continuity
o Identify dykes, sills and displacements
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
ANALYSES PURPOSEProximate analysis: Moisture, Volatile matter, Ash, Fixed Carbon* Mass balance, ash content, waterTotal Sulphur* Environmental, gas cleaning designGross Calorific Value* Efficiency of processTrue relative density Mass balance on coal, measured resource classification
Ultimate: C, H, N & O (by difference) Mass balance, oxygen consumption, gas quality
Forms of sulphur: Pyritic, Sulphate & Organic Speciation, environmental, gas cleaning
AFT (oxidizing conditions) Gasifier operating window
Ash composition: SiO2, Al2O3, Fe2O3, TiO2, MgO, CaO, Na2O,
K2O, P2O5, SO3 Influence acid/base ratio of ash, slagging, trace element capturing
Fischer Assay: Char, Liquid hydrocarbons, Water, Gas (by
difference) Liquid hydro carbon yields, tar and oil
Petrographics: Maserals and rank (COAL DEFINITION) Reactivity, coal classification, tar yields, and much more
Mineral composition
Type of minerals and not composition, i.e. clay, sulfates,
carbonates
Trace elements analyses Environmental, gas cleaning design
Chlorine, Cl Environmental, gas cleaning design, corrosion
Fluorine, F Environmental, gas cleaning design, corrosion
Crucible swelling number If coal is caking coal / plasticity
Gieseler fluidity If coal is caking coal / plasticity
Self-heating and Spontaneous Combustion Rate of combustion, start-up
Pore size and surface area Reactivity, cavity formation, gas velocity expected
MEASURED RESOURCE
ENVIRONMENTAL + *
MASS AND ENERGY BALANCES + *
GASIFIABILITY AND RATE OF GASIFICATION
Coal Geology: Properties of the coal
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“Coalology” Geophysical study
ADVANCE
100m 100-300m >300m
Cavity Width
0-100mOnly local collapse
Only local collapse
Only local collapse
100-300mOnly local collapse
30-100m collapse
30-100m collapse
>300mOnly local collapse
30-100m collapse
Full collapse
3m 3
0m
300m
Surface
Coal seam
Water table 50m
Not to Scale!
(Otherwise you will not be able to see what is
happening…)
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Supporting & Access Infrastructure
Aqua Alpha – Directional Drilling• Specialists in cavity design
• Specialist drilling management
• International and local track record• Sasol
• Anglo American
• China
• Hungary
SASOL ALPHA DRILLING RIG
Ssr/coreldraw/kaths01.cdr
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Underground technology and getting
into the coal seam
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
26
Power Generation Gas Engines can operate on Syngas
produced directly from UCG
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
27
Power GenerationGas Engines can operate on Syngas
produced directly from UCG
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Possible 132kV Power Line Route
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Project Lifecycle Roadmap and Timeline
Plan
Init
iate
Tim
e Li
ne
Exec
ute
Clo
se
Implementation PhasePhase Concept Phase (FEL1) Pre-Feasibility Phase (FEL2) Feasibility Phase (FEL 3)
Mobilize Team
Kick-Off Charter Devel.
07 Jan. 2013
Nov. 2013 Jan. 201415 Feb.
2013
Group/Individual Plan & Align
Develop Business Case &
Investment Plan
Decision Gate 1
Mobilize Team
Kick-Off Charter Update
Group/Individual Plan & Align
Develop Eng. & Bus. Options
Mobilize Team
Kick-Off
Group/Individual Plan & Align
Develop Basic Design
Mobilize Team
Kick-Off
Group/Individual Plan & Align
Final DesignFabricate/Procure
ConstructCommission
Decision Gate 2
Decision Gate 3
HandOver
Jun. 2015Apr. 2014
IPP AwardJul. 2014
Jan 2012
Coal from BHP
2 Farms
Aug 2013
June 2014
EIA appr
IPP FCQ2/ 16
Exploration Drilling
BANKABLE
BOQ3/ 18
Project Roadmap - 45,000 hrs
- R250m
Grid conn
EIA start
WUL
ChoseTechnology
CDE appoint
Jan 2015
DoE BidSep 15
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
The UCG Commercialization flow for
South Africa…
Step 1: Find a suitable energy Market and do competitor analysis
Step 2: Obtain a suitable UCG coal Resource
Step 3: Explore the resource and find and obtain rights to a suitable site - AA
Step 4: Concept Design finalize Technology choices of the planned facility - CDE
Step 5: Risk Assessment and financial suitability assessment – CDE + McRoberts
Step 6: Environmental Applications and permit approvals – Golder Associates
Step 7: Bankable Feasibility Study with Engineering Designs and Cost Estimate
Step 8: Bank approval – Signed Nedbank as MLA!
Step 9: EPC Negotiations and O&M service level agreements
Step 10: Offtake Agreement and financial close
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Key Milestones
Gas RFP
Bid Opening;
Sept 2015
to Dec 2015
PPA Finalisation
Project
Financial Close
Q2 2016
Project
syndication and
BEE Partners
H1 2015
DoE Gas RFI
Registration
May 2015
Completion of
Bankable Feasibility
Study in Q4 2014
PROJECT READY
for
IMPLEMENTATION
Africary value
proposition for
International
Investor
17 Dec 2014
Construction and
Commissioning
and first
electricity
production by
H2/2018
24 moths
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
>40 years coal conversion experience within Africary Dr JC van Dyk
Mr JF Brand
Mr D du Preez and team (decades of engineering and gas processing
experience)
Mr Conrad Katz, Aqua Alpha (decades of engineering and directional drilling
experience)
NWU – Proff Waanders, Proff Neomagus, Proff Strydom and Proff Dennis
Gasification science - Experience
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Africary’s international involvement and local support towards UCG implementation
33
Standardization of UCG measurements, control and operation through
South-African Bureau of Standard (SABS) and ISO Technical Committee
Members
Groundwater Monitoring During Mining of Coal In-situ by Means of an
Underground Coal Gasification Process - PWI23691 (1 Oct 2014)
ISO/TC 263, Standard for integrated pillar less co- extraction of coal and gas
(amendment of standard)(2 Feb 2015)
ISO/TC 263, Coalbed methane exploration and development (19 Apr 2015)
Collaboration with NWU, WITS, UFS
Advisory Member to the Minister of Energy in South-Africa
Collaboration with Freiberg University and Virthucon - Germany and
Advisory Board Member
Pittsburgh Coal Conference to be hosted by Africary and NWU in Cape
town South Africa in 2016!
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Advantages of Africary's commercial UCG
technology – positive environmental impact
UCG power generation produces 25% less CO2 per MWe and in large scale
Combined Cycle mode can reach energy efficiencies of up to 58%
compared to current 35%.
UCG has no dust particulate emissions or ash handling AND little or no
leaching of trace elements from ash when operated correctly / optimally
UCG mining and power generation uses 90% less water
Less sulphur and heavy metals are released or emitted by the UCG
process
Gas Engines offer higher fuel efficiency (up to 40%), than any boiler
operated in SA today (±35%)
COPYRIGHT RESERVED – PROPERTY OF AFRICAN CARBON ENERGY
Advantages of Africary's commercial UCG
technology – positive social impact
UCG can monetize economically unmineable coal that would be otherwise lostto the economy (<26% of coal reserves recoverable with conventionalmining…Source: U.S. Energy Information Administration, “International EnergyStatistics: Coal,” 2011)
New high value jobs created in the drilling, gas processing and gas engine /CCGT maintenance industries
UCG projects can be located in economically depressed areas away fromcurrent mined areas
There are no chemicals used in the UCG process as only air and water are usedfor gasification
No fracking required and there are no drilling chemicals injected when drillingthe boreholes
Clean Coal Technologies provide a much needed injection of R&D capital with anew industry being developed and creating high value jobs