Dr. YongDr. Yong--Wang LiWang Li

General Manager, Chief ScientistGeneral Manager, Chief Scientist

SynfuelsSynfuels ChinaChina

Professor, Professor, State Key Laboratory of Coal ConversionInstitute of Coal Chemistry

Chinese Academy of SciencesP.O.Box 165, Taiyuan, Shanxi, 030001 P.R. China

Indirect Coal LiquefactionIndirect Coal LiquefactionBetter Solution to Clean Energy SystemBetter Solution to Clean Energy System

Main pointsEnergy status in China

CTL development in China

Introduction of Synfuels China

Future development

Summary

Main pointsEnergy status in China

CTL development in China

Introduction of Synfuels China

Future development

Summary

ReservesReservesCoalCoal

OilOil

GasGas 0

100

200

300

400

500

600

700

2000 2005 2010 2020

A

B

C

Year

Million tons

Oil supply & demand 2020:Oil supply & demand 2020:A: Regular as 2000A: Regular as 2000B: Some policy measure B: Some policy measure C: Strong policy measureC: Strong policy measure

Production in China 2020:Production in China 2020:200 million tons/a200 million tons/a

Demands:Demands:A: 610 million tons/aA: 610 million tons/aB: 560 million tons/aB: 560 million tons/aC: 450 million tons/aC: 450 million tons/a

Energy status in ChinaEnergy status in China

Source: Strategy & policy study on ChinaSource: Strategy & policy study on China’’s comprehensive s comprehensive energy developmentenergy developmentProgram leader: Program leader: QingtaiQingtai ChenChenAuthor of the report: Author of the report: FeiFei FengFeng, , FengqiFengqi Zhou, and Zhou, and QinqyiQinqyi WangWanghttp://www.people.com.cn/GB/jingji/1045/2191153.htmlhttp://www.people.com.cn/GB/jingji/1045/2191153.html

Gap:Gap: 250250--410 million tons/a!!410 million tons/a!!

Coal oil

Dried coal Low T Pyrolysis

Dried coal Coke/GAS Tar

GasficationSyngas preparation

F-T synthesis Up-grading

DieselJet fuel

LPGNaphtha

Deep hydrogenation

For brown coal

GasificationGasificationCoal syngas

PurificationPurification FischerFischer--TropschTropschsynthesissynthesis

LPG

Clean Diesel

NaphthaChemicals

Air separationAir separation UntilitiesUntilities SyncrudeSyncrudeupgradingupgrading

syngasFuel gas

Oxygen

Water

What to do with CTL via gasification What to do with CTL via gasification

4-5 ton coal(5500-6000 kcal/kg)1600-2500Nm3 O2(coal for power generation included)

5500-5800Nm3 (CO+H2)

1000kg fuels＋by products

43%<η< 50%

CTL process technology produces products conventionally CTL process technology produces products conventionally obtained from obtained from petropetro--refineries with an efficiency refineries with an efficiency well above 43% and below 50%.well above 43% and below 50%.

First BASF FTS technologyFirst BASF FTS technology

Cobalt catalyst at normal pressureCobalt catalyst at normal pressure

74(X13ton) fixed bed reactors74(X13ton) fixed bed reactors30000ton Hydrocarbons/ a30000ton Hydrocarbons/ a

The plant was removed due to oil The plant was removed due to oil field discovery in 1960s in Chinafield discovery in 1960s in China

Brief history: 1950Brief history: 1950--19621962

CTL development in ChinaCTL development in China

Brief historyBrief history

--19791979--1993: Development of fused iron 1993: Development of fused iron catalyst+fixedcatalyst+fixed bed bed reactor reactor

-- 2 b/d test of multi2 b/d test of multi--tubular reactor (failed)tubular reactor (failed)

-- Single tube testing of improved fused iron Single tube testing of improved fused iron

catalyst, development of precipitated iron catalyst, development of precipitated iron catalystcatalyst

-- Single tube testing of precipitated iron catalysts Single tube testing of precipitated iron catalysts

laboratory test in slurry phase (STSR) (bubble laboratory test in slurry phase (STSR) (bubble column with the I.D. 5 cm) column with the I.D. 5 cm)

--19951995--19971997

**** Again single tube test for two catalysts (FeAgain single tube test for two catalysts (Fe--CuCu--K, and FeK, and Fe--MnMn).).

** Laboratory test and software development ** Laboratory test and software development new generation new generation grasped the opportunity.grasped the opportunity.

--1999: oil price coming up1999: oil price coming up

Basic understanding of FTS processes Basic understanding of FTS processes definition of FTS plantsdefinition of FTS plants

comprehensive analyses of economics and demandscomprehensive analyses of economics and demands slurry slurry phase FTS was stressed.phase FTS was stressed.

Brief historyBrief history

Pilot Plant ActionPilot Plant Action SlurrySlurry--bed FTS bed FTS

20012001--2002/09 : facility setting up slurry phase reactor 2002/09 : facility setting up slurry phase reactor

0.35X31 m capacity: 15 b/d0.35X31 m capacity: 15 b/d

2002/092002/09-- : first run test 22 days run: first run test 22 days run

2003/082003/08--2003/11 : three runs for core technology tests2003/11 : three runs for core technology tests

2004/062004/06--2004/07 :two month stable run2004/07 :two month stable run

2004/092004/09-- : last run for ICC: last run for ICC--IA catalyst IA catalyst

2004/082004/08-- : basic design of 3000b/d plant : basic design of 3000b/d plant

Super clean diesel production from coalSuper clean diesel production from coal

SulfurSulfur--freefreeCetaneCetane no. 70no. 70--7878WaterWater--like & weak smelllike & weak smell

Registration Capital: RMB 500 millionRegistration Capital: RMB 500 millionRegistration Time: April 2006Registration Time: April 2006

Inner Mongolia Inner Mongolia YitaiYitai Group Co. LtdGroup Co. LtdChinese Academy of SciencesChinese Academy of Sciences

Luan Group Luan Group XuzhouXuzhou Mining Business Group Co. LtdMining Business Group Co. Ltd

R&D TeamR&D TeamShenShen HuaHua Group Corporation LtdGroup Corporation Ltd

LianshunLianshun Energy Co. ltdEnergy Co. ltd

Introduction of Introduction of SynfuelsSynfuels ChinaChina

Main Task and FunctionMain Task and Function

11））Strengthening Strengthening CTLCTL’’ss technology research and technology research and

development;development;

22））Bringing into effect the industrialized technology;Bringing into effect the industrialized technology;

3) Building 1500t/a catalyst factory; 3) Building 1500t/a catalyst factory;

44））Providing CTL technical support and the related Providing CTL technical support and the related

service;service;

55））Training and forming R&D team for CTL project.Training and forming R&D team for CTL project.

Independent CTL Independent CTL techonlogiestechonlogiesbased on iron catalystsbased on iron catalysts––slurry reactorslurry reactor

FTS catalyst FTS catalyst groupgroup

Engineering Engineering groupgroup

SyncrudeSyncrudeupup--gradinggradingGroupGroup

FundamentalFundamentalgroupgroup

We have owned these We have owned these Key TechnologiesKey Technologies::

FTS catalystFTS catalyst

Iron based ICCIron based ICC--I (heavy fractions) 230I (heavy fractions) 230--

250250ooC, slurry phaseC, slurry phase , proven by pilot , proven by pilot plantplant

parellelparellel to to SASOLSASOL’’ss catalystscatalysts

CHCH4 4 content (wt%) < 4%content (wt%) < 4%

400 tons oil/ton 400 tons oil/ton catalyst(democatalyst(demo plant)plant)

Iron based ICCIron based ICC--II (lighter fractions) 260II (lighter fractions) 260--280280ooC, slurry phaseC, slurry phase

production improved by 50% production improved by 50%

CHCH44 content (wt%) content (wt%) << 5%5%

800 800 tons oil/ton catalyst, original tons oil/ton catalyst, original methodmethod

The integrated slurry phase reactor technologyThe integrated slurry phase reactor technology

The whole separation technologyThe whole separation technology

Reactor design for demo plantReactor design for demo plant

uptoupto 5.8 m reactors, detailed process scheme5.8 m reactors, detailed process scheme

Complete startComplete start--up and shutup and shut--down operation schemedown operation scheme

EngineeringEngineering

Integrated databases including thermodynamicsIntegrated databases including thermodynamics、、coal gasificationcoal gasification、、kinetics etckinetics etc

Slurry phase models, key cell modelsSlurry phase models, key cell models

Materials and energy equilibrium and optimization Materials and energy equilibrium and optimization

of flow configurationof flow configuration

Pilot plant design and operation scheme analysisPilot plant design and operation scheme analysis

160,000 tons/a demo plant process package and 160,000 tons/a demo plant process package and

basic designbasic design

FundamentalFundamental

New hydrogenation catalysts for New hydrogenation catalysts for

hydrogenating FTS hydrogenating FTS crudescrudes

OligmerizationOligmerization of light olefinsof light olefins

Cracking of FTS heavy fractionsCracking of FTS heavy fractions

Constructing analysis and product Constructing analysis and product standard for FTSstandard for FTS

SyncrudeSyncrude upup--gradinggrading DieselDiesel

WaxWax

EU III / 2.0L diesel engine Volks Wagen CADDY SDI 2.0 Economic fuel consumption ~4.5 L /100 kmCetane No. > 70Clean fuels from COAL, extremely low S and N EU IV emission limit

First Car Fueled by 100% F-T Super Clean Diesel

Attracting direction meeting China’s demands for fuel alternativesF-T is one of the most fundamental coal conversion projects beinginitialized.

Identification from international enterpriseIdentification from international enterprise☼☼ Volkswagen AG Volkswagen AG ☼☼ DaimlerChryslerDaimlerChrysler☼☼ ShellShell☼☼ SASOLSASOL☼☼ Anglo CoalAnglo Coal☼☼ ChorenChoren☼☼ Future EnergyFuture Energy☼☼ Pall Pall ☼☼ BanpuBanpu

SasolSasolVolkswagen and Volkswagen and DaimlerChryslerDaimlerChrysler Anglo CoalAnglo Coal Visit Visit SasolSasol

Possessing the independent property Possessing the independent property right of the comprehensive process right of the comprehensive process technology for CTL in Chinatechnology for CTL in China

High selective catalysts development High selective catalysts development --Narrowing to middle distillatesNarrowing to middle distillates--Working at high temperature (270Working at high temperature (270ooC) but in slurry phaseC) but in slurry phase--Optimizing factors affecting efficiencyOptimizing factors affecting efficiency

Reactor & processesReactor & processes-- Enhancing reaction heat recovery ( 15% energy of Enhancing reaction heat recovery ( 15% energy of syngassyngas ))-- Pressure up to 45 bars to increase single train productivityPressure up to 45 bars to increase single train productivity-- Process integration optimization (coProcess integration optimization (co--production evaluation) production evaluation) -- Water saving and treatment technologiesWater saving and treatment technologies

New technology for New technology for syncrudesyncrude upup--gradinggrading-- S free catalyst for hydrogenation & crackingS free catalyst for hydrogenation & cracking-- Light fractions utilizationLight fractions utilization-- New route for fuel productionNew route for fuel production-- Chemicals from Chemicals from syncrudessyncrudes

Future developmentFuture development

Complete plant Complete plant YitaiYitai 3500b/d Entrained flow gasification3500b/d Entrained flow gasification

FischerFischer--TrsopschTrsopsch plus IGCC Luan : Fixed bed gasificationplus IGCC Luan : Fixed bed gasification

Combined with direct coal liquefaction Combined with direct coal liquefaction process(secretprocess(secret))

All to be put into operation in 2008All to be put into operation in 2008

Commercial processes in evaluationCommercial processes in evaluation

Single train: 8000 b/day at least two trains in one complexSingle train: 8000 b/day at least two trains in one complex

Engineering action (expected) 2009 Engineering action (expected) 2009

Possible IGCC scheme is considered (If governmental support got)Possible IGCC scheme is considered (If governmental support got)

Three DemoThree Demo--Plants inPlants in DesignDesign(Synfuels(Synfuels China+industriesChina+industries))

The assignment of the industrialization of Synfuels CHINA

20082008，，the 160,000 tons/a demo plant put into operation;the 160,000 tons/a demo plant put into operation;

（（ReactorReactorφφ 88--10 m10 m））

20082008--20122012，，22--3 2 million3 2 million--3 million tons/a plants planned;3 million tons/a plants planned;

ShanxiShanxi, Inner Mongolia, , Inner Mongolia, ShaanxiShaanxi, , GuizhouGuizhou…………

20132013--20162016，，the total output reach 15 million tons/a;the total output reach 15 million tons/a;

11--2 5 million tons/a scale2 5 million tons/a scale

2020, the total output reach 20 million2020, the total output reach 20 million--25 million tons/a;25 million tons/a;

In the following 15 years, the scale will arrive In the following 15 years, the scale will arrive

at 40 millionat 40 million--60million tons/a60million tons/a

involving 200 billioninvolving 200 billion--300 billion RMB capital investment300 billion RMB capital investment

SummarySummaryCTL in whole has been well proved by large scale production CTL in whole has been well proved by large scale production

and is an important and practical option for Chinaand is an important and practical option for China’’s future s future

liquid fuel supply.liquid fuel supply.

CTL route will bring us to a sustainable way in using our CTL route will bring us to a sustainable way in using our

available sources via available sources via syngassyngas..

CTL technology in China is approaching matured and will play CTL technology in China is approaching matured and will play

important roles in the growing market.important roles in the growing market.

The superThe super--clean diesel produced via CTL route will largely clean diesel produced via CTL route will largely

impose great benefits from environment improvement.impose great benefits from environment improvement.

Thanks for your attentionThanks for your attention