WVUChina Clean Coal Initiatives: CoaltoLiquids

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WVU-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
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Outline

• 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

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WVU-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

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Coal 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
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Why 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

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Shenhua 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)

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Construction of Shenhua DCL Commercial Plant
2002
2003
2004
2008
2006
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Critical Equipment Lifting Erection
Coal Liquefaction Reactor The worlds largest
single reactor (2250mt)
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Shenhua DCL Demonstration Project
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Shenhua DCL Pilot Plant in Shanghai
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Economic 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

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Learning 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

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CTL 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

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Questions?