GASIFICATION AS AN ALTERNATE SOLUTION FOR INDIA’S GROWING ENERGY AND PETROCHEMICALS DEMAND

Sunil Singhal Kakul Singh Nandkishor V Bhongale Ravi Ravikumar

© 2016 Fluor. All Rights Reserved.Fluor is a registered service mark of Fluor Corporation.ML20160700-001.ppt

Gasification India 2018 , Nov 29-30, 2018, New Delhi, India

AGENDA

Gasification Overview

Type of Gasification Technologies

Commercial Gasification Technology Options

Gasification Feedstocks

Gasification Product Options

Relative Value Addition For Various Gasification Products

Pre-screening of various Gasification feeds, products and technology options

Gasification Drivers in India

Gasification to Chemicals/Petrochemicals- Process Configurations

Fluor Gasification Experience

Conclusions2

GASIFICATION OVERVIEW

Reaction of low value fuels such as coal, petroleum residues, biomass, industrial wastes, MSW, etc. with oxygen and steam at high temperature to produce H2 + CO synthesis gas

Primary Gasification Reactions:Partial Oxidation 2 C + O2 → 2 COSteam Gasification (Reforming) C + H2O → CO + H2

Water Gas Shift CO + H2O → CO2 + H2

Methanation 3 H2 + CO → CH4 + H2O

Operating Conditions: 900 – 2000°C / 0.3 – 85 barg

Heteroatoms: N converted primarily to N2, NH3, HCN S converted primarily to H2S, COS, CS2

Many trace components (e.g. formic acid, chlorides, sulphur & nitrogen compounds, cyanides, soot, metal carbonyls and others)

3

Contd..

GASIFICATION OVERVIEW

Water gas shift to adjust H2/CO ratio as required for end product CO + H2O H2 + CO2

Syngas clean up and acid gas removal to condition gas for downstream catalysts and to meet environmental regulations

Sulphur recovery as elemental sulphur or sulphuric acid

Potential for CO2 capture and use for Coal Bed Methane / Enhanced Oil Recovery or Sequestration

Gasification is a complex and challenging process Project execution requires integration of technologies from several parties Attention to trace components, corrosion, catalyst life and process control Special attention to CAPEX and OPEX from the early stages of project development Requires a highly qualified team with gasification experience

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TYPE OF GASIFICATION TECHNOLOGIES

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COMMERCIAL GASIFICATION TECHNOLOGY OPTIONS

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TechnologyTechnology Features

No. of Stages Oxidant Feed Reactor Wall Syngas Cooling Flow Regime

Lurgi 1 Oxygen DryDouble Walled w/

Water JacketQuench &

ConvectiveFixed or Moving Bed

(Non-slagging)Sedin 1 Oxygen Dry

Double Walled w/ Water Jacket

Quench & Convective

Zemag 1 Oxygen DryDouble Walled

Refractory LinedQuench Fixed Bed (Slagging)

Uhde HTW 1Air /

OxygenDry Refractory Convective

Fluidized Bed (Non-slagging)SES (U-Gas) 1

Air / Oxygen

Dry Refractory Convective

Air Products (Formerly GE) 1 Oxygen Slurry Refractory Quench or Radiant

Entrained Flow (Slagging)

ECUST 1 Oxygen Slurry Refractory Quench

MDR (E-Gas) 2 Oxygen Slurry Refractory Convective

NWRICI (MCSG) 1 Oxygen Slurry Refractory Quench

Tsinghua (OSEF) 2 Oxygen SlurryWater Cooling Wall

TechnologyQuench

Contd..

COMMERCIAL GASIFICATION TECHNOLOGY OPTIONS

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Technology

Technology Features

No. of Stages Oxidant Feed Reactor Wall Syngas Cooling Flow Regime

Air Products (Formerly Shell) 1 Oxygen Dry Membrane Wall Convective or Quench

Entrained Flow (Slagging)

Uhde Prenflo 1 Oxygen Dry Membrane Wall Convective or Quench

MHI 2 Air / Oxygen Dry Membrane Wall Convective

Siemens 1 Oxygen Dry Cooling Screen Quench

TPRI 2 Air / Oxygen Dry Membrane Wall Convective

GTI (R-Gas) 1 Oxygen Dry Liner wall Partial Quench

HT-L (CECO) 1 Oxygen Dry Water Wall Quench

KBR 1 Air / Oxygen Dry Refractory Convective TRIG (Non-slagging)

GASIFICATION FEEDSTOCKS

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High Ash Indian Coal High ash content, up to 60 wt% High ash fusion temperature Presence of chlorides and fluorides

Petcoke Low volatile matter High sulphur content Low ash content Presence of metals such as vanadium, nickel and iron Requires gasification at high temperatures with entrained flow (slagging)

gasifiers

Others - Various processed and straight vacuum bottoms, Asphaltenes, Acid soluble oils Wood / plant waste, Municipal solid waste, Agriculture wastes (such as rice

hulls, nut shells, mushroom compost and others) Coal washery reject

COAL SCENARIO IN INDIA

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0100200300400500600700800

2013-14 2014-15 2015-16 2016-17

Coal Production in India, MMTPA

Estimated coal reserves in India are 315 billion tonnes (as on 01.04.2017) - majority of this coal contain high ash

Coal production in India

Price of domestic coal is determined by the level of supply and demand and does not show direct relation with crude oil price trend/outlook

Source: Ministry of Coal Annual Report 2016-17

More heavy crudes more residues more petroleum coke

Current Indian petcoke production capacity is ~ 16 MMTPA

PETCOKE SCENARIO IN INDIA

10

02468

10121416

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Petcoke Production in India, MMTPA

Source: Indian Petroleum and Natural Gas Statistics 2016-17

GASIFICATION PRODUCT OPTIONS

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Low Value Fuels

MeOH & Derivatives

Fertilizers Clean Syngas Hydrogen & Energy

FT Products SNG

Olefins (C2=, C3=)Acetic AcidAldehydesAnhydridesDMEMEGMTBEEthanol GasolineMMADMTMethylaminesMethyl Halides

AmmoniaUreaAmmonium NitrateAmmonium SulphateAmmonium PhosphateUrea Ammonium Nitrate

Power & SteamDRIOxo GasGasoline

RefineryOil SandsFuel Cell Vehicles

Fuel GasC2-C3LPGNaphthaJet FuelDieselLubes, Waxes

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RELATIVE VALUE ADDITION FOR VARIOUS GASIFICATION PRODUCTS

1. Indicative market prices in India in 2018.

2. Manufacturer gate price

3. Refinery gate price

4. If hydrogen is used in fuel cell vehicles, $/MMBtu price is 120 - 150 based on current price of 12 - 15 $/kg in USA

Product / Commodity Price, $/MMBtu Market Price(1)

Petcoke 2.7 - 3.0 $ 80 - 90 / MTHigh Ash Indian Coal 1.3 – 1.7 $ 18 - 25 / MTMethanol 21 - 22 $ 400 - 420 / MTEthanol 31.3 $ 797 / MT(2)

Ethylene 29 $ 1320 / MTPropylene 26 $ 1125 / MTAcetic Acid 42 $ 515 / MTMTBE 25 $ 825 / MT Ammonia 23 - 25 $ 400 - 440 / MTUrea 35 - 38 $ 300 - 330 / MTNaphtha 12 $ 530 / MTPetrol (Gasoline) 13.8 INR 31.8 / Ltr(3)

Diesel 14.3 INR 31.9 / Ltr(3)

SNG 8 / 12 LNG Landed / Gate PriceHydrogen(4) 16 Based on $8 natural gas price

PRE-SCREENING OF VARIOUS GASIFICATION FEEDS, PRODUCTS AND TECHNOLOGY OPTIONS

$/ MMBtu is an innovative approach for pre-screening of various gasification product value chains

Fluor has developed a proprietary process called IP-SET for assisting clients develop project concepts based on the most cost effective feed/process/ products taking into account all the pluses and minuses

This technique has proven to be a very effective approach to screening a large number of feed/ process/ products options in a relatively short duration.

IP-SET has been applied on many projects – many now operating and other’s in the design phase

This method accounts for all major items that impact the selection of a feed or a process or desired feed by assigning weightings to them and scores for various systems under consideration and totaling the composite score to establish relative ranking

IP-SET allows clients to vary the weightings and individual scores to perform a sensitivity analysis to assess if the relative ranking of the systems under consideration remain the same

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GASIFICATION DRIVERS IN INDIA

Growing national and global energy demands

Heavy rely upon petroleum and natural gas import

Use of domestic resources will provide immunity to price fluctuations due to volatile prices and geopolitical instability in global energy market

Abundant coal reserves in India

Less costly vs Petroleum and NG derived feedstocks

Low feedstock cost high value added products mitigates higher CAPEX

Higher value added improved margin certainty

Tightening marine fuel sulphur specifications will result in more cokers increased global and Indian supply of petcoke

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Contd..

GASIFICATION DRIVERS IN INDIA

Byproduct ‘S’ or H2SO4, CO2, Slag, N2,Ar can fetch additional revenue

Recovery of metals such as vanadium and nickel from petcokegasification derived slag

Ammonia recovery from sour/acid gases as ammonium phosphate , anhydrous ammonia or ammonium sulphate

Syngas cost of production more economical than imported LNG

Clean fuels/products from gasification offer reduced air emissions

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INTEGRATION WITH REFINERY TO PRODUCE H2 ,STEAM/POWER & PETROCHEMICALS

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LP O

2TO

S

RU

HP

O2

LP N

2FO

R

INE

RTI

NG

HP

N2

TO

PO

WE

R

PLA

NT

CO

2

CO

2

STANDALONE GASIFICATION PLANT TO PRODUCE METHANOL AND DERIVATIVES

17

GASIFICATION TO PRODUCE UREA

18

FLUOR GASIFICATION EXPERIENCE

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Client Location Scope Feed Products Technology Completed

Confidential Indonesia Pre-FEED Coal Polypropylene, DME and Urea Confidential Ongoing

Lake Charles Methanol Louisiana FEED Petcoke Methanol GE Ongoing

Celanese / IOCL India Pre-FEED Petcoke, Coal Ethanol, Power Confidential 2015

Reliance Industries India E, P and PM

Support Petcoke, Coal Hydrogen, SNG, Power MDR E-Gas Ongoing

Pertamina Indonesia Pre-FEED MSW Power Solena 2014

Confidential Indonesia Pre-FEED High Moisture Indonesian Coal SNG, Urea, CO2 Confidential 2012

Jindal SynFuels India Pre-FEED High Ash Indian Coal FT Liquids, Ammonia Confidential 2012

Reliance ADAG India Pre-FEED High Moisture Indonesian Coal SNG, Power Confidential 2012

MAK Mongolia Pre-FEED High Moisture Brown Coal MTG, Power Confidential 2012

Fulcrum Sierra BioFuels Nevada FEED Refresh,

EPC MSW Ethanol, Power InEnTech (IET) 2012

OPTI Canada Phase II Alberta FEED Residue Hydrogen, Power, CO2 Shell 2012

Rentech California FEED Woody Waste FT Liquids, Power RentechSilvaGas 2011

Contd..

FLUOR GASIFICATION EXPERIENCE

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Client Location Scope Feed Products Technology CompletedSummit Texas FEED Coal Urea, Power, CO2 Siemens 2011

Swan Hills Alberta Pre-FEED, FEED Deep

Unmineable Coal

Power, CO2

Swan HillsIn-situ Coal Gasification

2011

MSEZL India Pre-FEED Petcoke Acetic Acid, Hydrogen, Power Confidential 2010

Eastman Texas FEED Petcoke Hydrogen, Methanol, Ammonia, CO2 GE 2009

Confidential Montana Pre-FEED Coal Urea, Power, CO2 Siemens 2009

Valero Texas Pre-FEED Petcoke Hydrogen, Power, CO2 ECUST 2009

OPTI Canada Alberta FEED, EP Residue Hydrogen, Power Shell 2008

Steelhead Illinois FEED Coal SNG CoP E-Gas 2006

Total France FEED Residue Hydrogen, Power GE 2004

ISAB Italy Owner’s Eng. Residue Hydrogen, Power GE 1999

Great Plains North Dakota Owner’s Eng. Coal SNG Lurgi 1988

Shell Netherlands FEED, EPCM Residue Hydrogen, Power Shell 1997

Motiva Louisiana EP Residue Hydrogen GE 1985

Eastman Tennessee C Coal Chemicals GE 1986

Sasol South Africa EPCM Coal FT Liquids, Chemicals Lurgi 1980

CONCLUSIONS

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Gasification is a complex and challenging process but – Offers a cost effective option to convert low value fuels such as coal and

petcoke into high value added products Petcoke/coal availability in India places gasification in a strategically important

position with anticipated positive downstream product slate demand Petrochemicals industry in India is based on naphtha / natural gas feedstocks.

Syngas from petcoke/coal gasification offers excellent domestically available feedstock option compared to the imports

Syngas cost of production is more economical than imported LNG in India. Byproducts ‘S’ or H2SO4, CO2, Slag, N2, Ar, V & Ni from slag can fetch

additional revenue Clean fuels/ products from gasification offer reduced air emissions, a key

concern in the wake of new stricter emissions norms worldwide Gasification can play a vital role in India’s long term petrochemical sector plans

eyeing self-reliance and maximum utilization of available resources in the country

While challenging, several gasification projects have been successful. Must employ best technologies and employ gasification experienced design engineers

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Nandkishor V Bhongale

Nandkishor.V.Bhongale@fluor.com

+91.124.457.0700 Extn. 3295

Sunil Singhal

sunil.singhal@fluor.com

+91.124.457.0700 Extn. 1649

Ravi Ravikumar

Ravi.Ravikumar@fluor.com

+1.949.349.7481

Kakul Singh

Kakul.singh@fluor.com

+91.124.457.0700 Extn. 2294