Title: WVUChina Clean Coal Initiatives: CoaltoLiquids
1WVU-China Clean Coal Initiatives Coal-to-Liquids
Public Energy Authority Board Meeting, May 22,
2008
Qingyun Sun US-China Energy Center National
Research Center for Coal Energy West Virginia
University
2Outline
- WVU-China Clean Coal Initiative Coal-to-Liquids
(CTL) Program - CTL Development in China
- Shenhua Direct Coal Liquefaction (DCL) Plant
- Importance of CTL Projects in West Virginia
3WVU-China Clean Coal Initiative Shenhua
Coal-to-Liquids Project
- WVU is the only university working on commercial
Coal-to-Liquids project in the US - Sponsors the US DOE and Shenhua Group (the
worlds largest coal company) - WVU-Shenhua joint research program
- Economic analysis of Shenhua DCL plant
- Environmental impact assessment of the plant
- CO2 sequestration related to Shenhua DCL plant
- Technology research
- FT synthesis and catalyst study
- Integrated DCL and ICL processes
- Technology investigation and process modeling
- Liquefaction fuel testing
- Solid waste recycling
4Coal To Liquids Development in China
- 7 CTL plants in western China with the total
budget of 12 billion USD - Shenhua leads to develop 1 DCL, 3 ICL, and 2 CTC
plants with the total investment of 10 billion
USD - Shenhua DCL plant is ready to start up
Sichuan Earthquake
5Why CTL in China? Why Is Shenhua Doing It?
- Why does China develop CTL projects?
- National strategy for energy security
- Environmental pressure for clean coal use
- Feasible technologies and abundant resources
- CTL is Shenhuas business strategy
- Abundant coal with bottlenecks in shipping
- Highly profitable
- Economic development in mining area
- Governmental support
- Capabilities coal, capital, manpower
6Shenhua Commercial Direct Coal Liquefaction Plant
In Inner Mongolia
- Worlds 1st DCL commercial plant
- Production Capacity of the 1st Train 24,000 BPD
(mainly diesel) - Plant Cost 1.5 billion USD
- 4 years of construction (2004-2008)
7Construction of Shenhua DCL Commercial Plant
2002
2003
2004
2008
2006
8Critical Equipment Lifting Erection
Coal Liquefaction Reactor The worlds largest
single reactor (2250mt)
9Shenhua DCL Demonstration Project
10Shenhua DCL Pilot Plant in Shanghai
11Economic and Environmental Perspectives of
Shenhua DCL Plant
- Economics
- Capital intensive 1.5 billion USD
- High profitable 45/bbl of fuel product cost
- Reducing environmental impacts
- Zero water discharge
- CO2 sequestration
- Ash recycling
- Mine land reclamation
12Learning from Shenhua DCL Project Development
- CTL is technically feasible and economically
viable for alternative fuels - Effective way for economic development in coal
area - Public and governmental support are critical
- Existing barriers
- Water shortage and CO2 management
- Difficulties in commercial technology and
manufactures - Lack of skilled labor
- Public resistance to coal use and coal derived
fuels
13CTL Is Important to WV
- CTL is practically feasible and economically
viable way of clean coal use - WV has strengths coal, water, market, CO2
sequestration potential, and the state support - Huge benefits to the state of West Virginia
- Increase revenue (5 times of coal value, 70/b
oil profit) - Clean use of high S coal for environment
protection - Promote local industrial and economic development
- Increase of employment (the 20,000 BPD plant will
generate 1,000 employees directly and 10,000
indirectly) - Support education and technology research
- Support national energy security
14Questions?