CTL FUEL Economics

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CTL FUEL Economics
December 6, 2008 Covington, Kentucky Rodney
Andrews Director University of Kentucky Center
for Applied Energy Research
Photo art A. Benlow
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AGENDA

• ! Why CTL?
• Coal Input, Products, Environ. Performance
• Investment and Jobs
• EASTERN AND WESTERN
• KENTUCKY COALS
• (With and without Carbon Capture)

Photo art A. Benlow
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WHY CTL?

• Energy independence
• National security
• Improved balance of trade
• (Oil Imports Hundreds of BIL )
• New industries/economic development
• Stabilize domestic fuel prices at pump

Photo art A. Benlow
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U.S. Supply, Consumption ImportsLiquid
Fuels/Other Petroleum (MBD)
History
Projections
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Consumption
Net Imports
60
Domestic Supply
Annual Energy Outlook 2007
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Not Our Most Favored Trading PartnersWorld
Proved Oil Reserves (bil. barrels)
World Total 1,317 billion barrels
Oil Gas Journal (Dec. 18, 2006)
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AGENDA

• Why CTL?
• ! Coal Input, Products, Environ. Performance
• Investment and Jobs
• Risk and Return
• EASTERN AND WESTERN
• KENTUCKY COALS
• (With and without Carbon Capture)

Photo art A. Benlow
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SCHEMATIC OF CTL PLANT (120,000 bpd)
Carbon Dioxide Compression
CO2 to Storage 72,500 TPD
CO2
CO2
Synthesis Gas Cleaning/ Conditioning
Coal Gasification
Product Recovery and Upgrading
Fischer Tropsch Synthesis
Coal 50,000 TPD
Coal Prep
Oxygen
Acid Gas
LPG Naphtha Diesel 120,000 BPD
CO2 7,400 TPD
Air
Sulfur Recovery
Power Generation
Air Separation
Stack
Power
Sulfur
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FT Products
Transportation Fuels Alcohols Chemicals Methane Sy
nthetic Waxes
Photo art A. Benlow
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Go to www.caer.uky.edu
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KY CTL Case Studies
Source Mitretek
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Coal Input and Products
Source Mitretek
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Coal Feed (TPD) w/ Size
Typical oil refinery 150,000 to 200,000 BPD
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Air Emissions
Photo art A. Benlow
Source Mitretek
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Fuel Quality
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CTL Carbon Footprint Fuel Production and Use
DOE-NETL Coal/Biomass-to-Liquids could beat
Ethanol on CO2 Emissions
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AGENDA

• Why CTL?
• Coal Input, Products, Environ. Performance
• Investment and Jobs
• EASTERN AND WESTERN
• KENTUCKY COALS
• (With and without Carbon Capture)

Photo art A. Benlow
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Equip Cost (MM)
Source Mitretek
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Total Capital Cost (MM)
Source Mitretek
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Capital Cost () w/ Size
Typical oil refinery 150,000 to 200,000 BPD
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Economic Summary
Source Mitretek
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Investment/Job Creation
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