Methanol for Gasoline Blending from Petroleum Coke David Netzer & Chris Wallsgrove (Speaker) MeOH The Premise • • • • • • Upgrading Heavy Oil Normally Produces Petroleum Coke (Petcoke) Petcoke is Often Sold as Low-Cost Fuel Petcoke Can be Gasified to Syngas (Proven Technology) Methanol (MeOH) is Produced from Syngas MeOH Can be Blended with Gasoline 7% to 10% Blend of MeOH in Gasoline Can Fuel Existing Cars (Proven Technology) • • • • • Other Methanol Uses Methanol to Gasoline (MTG) – but WHY? If We Can Use Methanol AS Gasoline Methanol to DME – Diesel and/or LPG Subtitute Methanol to Propylene (MTP) or Ethylene (MTO) – Compete with Steam Crackers? Methanol to Acetic Acid & Derivatives – Limited Market Methanol to Formaldehyde & Derivatives – Same Process Units • • Gasification – To Produce Raw Syngas • • • • • Shift – With Control of CO/H2 Ratio Air Separation (ASU) – To Produce Oxygen for the Gasification Rectisol – Remove H2S/COS and Recover CO2 Methanol Synthesis – Makes 50,000 BPSD Methanol Purification (Distillation) Units to Recover H2 and Sulfur Process Units Selection • • • • • • Quench Gasifiers – Operate at High Pressure to Avoid Syngas Compression Unconverted Carbon to Boilers Gas Cooling Produces Steam Rectisol (Two Trains) Uses Methanol Solvent Two Methanol Synthesis Reactors (Large, Heavy Vessels) in Parallel Conventional PSA for H2 Recovery, and ClausType Sulfur Units Petcoke 7,400 tpd Air Air Separation Nitrogen CO2 130 bar 11,700 tpd CO2 Compression Oxygen 6,600 tpd Coke Preparation And Slurrying Water, Fluxing Agent Steam & Power Systems CO2 Gasification 87 bar Unconverted Carbon Shift & Gas Cooling Tail Gas SynGas Acid Gases Steam EHP, HP, MP, LP Steam HP, LP Rectisol Units Sulfur Plants Methanol Synthsis 78 bar Purge Gas Hydrogen Product 16 MMscfd Methanol 6,400 tpd Sulfur Product PSA Hydrogen Recovery Reactor Purge Gas Methanol Purification 50,000 bpsd Block Flow Diagram – Petcoke to Methanol Energy Systems • • • • • • • Totally Self-Sufficient in Steam and Power Fluidized Bed Boilers, for Petcoke and Coal Plus Unconverted Carbon from Gasification MP Steam Superheating in a Fired Heater, Using PSA Purge Gas as Fuel Steam Driven ASU Compressors – 63 MW Balance of Steam to a Generator – Excess Power Exported (About 80 MW Export) All Other Drivers Electric 130 Bar Steam From Shift DeNOx Econo Air PreHeat Lime Scrub SRU Tail Gas PSA Purge Gas 125 bar Steam 125 bar Steam To ASU Drivers MeOH Bottoms Unconverted Carbon Petcoke Limestone Coal (& Biomass) Spent Gypsum 3 x 55% Fluidized Bed Boilers Turbine 25 bar Generator 3.5 bar Steam From Process D/A PSA Purge Gas ~80% 27 bar Steam From Process Steam & Energy Block Diagram – Petcoke to Methanol ~ Capital Cost Savings • • • • • Quench Gasification vrs High Efficiency with 130 Bar Steam – Saves ~$200 Million 320 MW Fluidized Bed Boilers vrs IGCC – Saves ~$450 Million 67% CO2 Capture vrs 95% (Shift + H2 Power Cycle + Parasitic Mw) - Saves ~$250 Million Avoid 25 MW Methanol Synthesis Compressor – Saves ~$50 Million Other Miscellaneous Rational Savings ~$135 Million Carbon Dioxide Disposal • • • • • If Underground Sequestration, Costs $$$ If Sold for Enhanced Oil Recovery (EOR), is Revenue $ In Either Case, CO2 Must Be Compressed to At Least ~125 Bar Modest (67%) CO2 Recovery Mine-To-Wheel CO2 Release is ~Equal to Ethanol Blend Methanol in Gasoline • • • • • 7% to 10% Blends – Equivalent to Current Ethanol Blends – RVP Increase Manageable Methanol is Biodegradable - Half-Life in the Environment is ~24 Hours M-10 (10% Methanol) and Higher in Current Use in China Toxicity – Gasoline is Toxic. Adding 10% Methanol Does Not Change That! Current E-10 Blend Infrastructure is Already In-Place Methanol in Spark-Ignition Engines • • • Modern Engines Designed for E-10 Fuel ECU/Fuel Injection Makes CLEAN Engines Higher Octane but Lower Energy Content Then Now • NO CHANGES REQUIRED Costs? • • • Estimated Total Capital Cost US $2.8 Billion Makes 50,000 BPSD (Replacing Imported Oil) From Carbon Resource ALREADY Existing Methanol Production Cost is ~$0.50 per US Gal IF CO2 is Sold for EOR • Methanol Production Cost is ~$0.88 per US Gal • • if CO2 is NOT Sold for EOR Lower Cost Than Ethanol OR Gasoline No Additional Vehicle OR Infrastructure Costs Conclusions • • • • • No Obvious Renewability or “Greenhouse” Advantage of EtOH over MeOH No Obvious Safety or Toxicity or Hazard Advantage of EtOH over MeOH Obvious Economic Advantage of Methanol Over Ethanol No Additional Vehicle OR Infrastructure Costs No Vehicle Performance Issues We Had Valuable Help From: • • • • • • Air Liquide/Lurgi – Frankfurt, Germany Linde – Munich, Germany Haldor Topsoe – Houston, TX HDR Inc., Ann Arbor, MI Methanol Institute – Washington DC and Singapore Don Koza, Marshal (Bud) Bell, John Lehman, Dennis Dembicki, Michael Murphy & Others Who Wish to Remain Anonymous… Contact Information Chris Wallsgrove David Netzer Brinderson Engineers & Constructors Consultant Costa Mesa, CA Houston, TX chris@wallsgrove.com netzerd@sbcglobal.net (713) 240 8633 (832) 251 1271 Thanks to Pennwell Publishing, for publishing a synopsis of this paper in two parts, June and July 2011 Oil & Gas Journal THE END Mercifully…