Engineers India Limited

Methanol Economy Scenario in India

by Mr. R K Gupta

Dr. R N Maiti

1 April 2016 2

Content

Methanol Economy Aspects

Sourcing of Feed Production Technology Utilization

Methanol

India/Global Methanol PerformanceMethanol Economy in

India

Import Dependency

Production, Consumption & Net Import

1 April 2016 3

Import Dependency: Net Chemical Import

Net Import of Organic Chemicals are increasing rapidly and it was 4.2 % (35,200 crores)

of India’s Net Import on 2014-15.

2014-15 In Crores of Rs.

Crude Import 6,87,416

Petroleum Product Import 74,644

Petroleum Product Export 2,88,580

Net Import of Crude and Petroleum Products 4,73,481

Net Total Import of all Products 8,40,738

* Department of Chemical and Petrochemical

* Department of Commerce

1 April 2016 4

Import Dependency: Consumption, Production of Major

Organic Chemicals

* Department of Chemical and Petrochemical

1 April 2016 5

Import Dependency: Net Import of Major Organic Chemicals

Production of major organic chemicals has shown a significant decline

due to large volume imports (Indian Chemical Industry Five years

plan).

Key segment of the chemical industry is (as in Indian Chemical Industry

Five years plan):

1. Methanol (Net Import)

2. Formaldehyde (Net Export)

3. Acetic Acid (Net Import)

4. Phenol (Net Import)

5. Ethyl Acetate (Net Export)

6. Acetic Anhydride (Net Export)

* Department of Chemical and Petrochemical

1 April 2016 6

Methanol Performance in India

Year Installed

Capacity

(MMTPA)

Production

(MMTPA)

Capacity

Utilization(%)

Net Import Consumption

(MMTPA)

MMTPA Crore

2014-15 0.474 0.210 44.24 1.6 3078 1.8

2013-14 0.474 0.307 64.76 1.2 3192 1.5

2012-13 0.474 0.255 53.79 1.2 2600 1.4

Last year Consumption increased by ~20%

* Department of Chemical and Petrochemical

1 April 2016 7

Methanol: Production facility in India

Major Methanol Plants

Gujarat Narmada Valley Fertilizers & Chemicals Limited. (GNFC)

Deepak Fertilizers, Taloja

RCF in Mumbai

NFL in Nangal

Assam Petrochemicals

Feed for Methanol Production:

Primarily produced in India from natural gas/naphtha

Major is imported

1 April 2016 8

Methanol: Global Production

1 April 2016 9

Methanol: Utilization

Other Use: Refrigerant, Pesticides, Paints, Tanning, Moulding Material

1 April 2016 10

Govt. Policy on Methanol from Domestic Coal

* ET

1 April 2016 11

Methanol Economy: What Does it mean?

Coal

Petroleum

Natural Gas

Fossil

Fuels

Power Plant

Transportation

Metallurgy

Chemical/Petrochemical

/Fertilizer

Consumption Sectors

MethanolBio Waste

1 April 2016 12

Methanol Economy: Product Portfolio

* Methanol production and use

1 April 2016 13

Components of Methanol Economy

Feed Stock• Availability of feed stock

• Price of feed stock

• Profit Margin

Production Technologies

• Specific Energy Consumption

• Suitability to feed type

• Initial investment required

End Use• As a fuel blend

• As a raw material for chemical production

1 April 2016 14

Feed Stock

1 April 2016 15

Feed Stock: How much methanol we need?

• Based on data from PPAC & “Chemical and Petrochemical Statistics

at a glance 2015”

Projected Methanol required by 2018-19 in

MMTPA(most conservative approach)

for Chemicals

for Fuel BlendTotal Methanol

Required

5%10

%

15

%5% 10% 15%

2 1.15 2.3 3.5 3.15 4.3 5.5

1 April 2016 16

Feed Stock: Material Balance - 5000MTPD Methanol

16

Coal

Washery

Gasification

Unit

H2S

Removal

CO2

Removal

Feed Coal = 9-12 MMTPA

Ash= 40-45 %

VM=20-25%

FC=20-30%

Sulfur ~ 0.3 – 0.5 %

SHIFTED AGRCoal = 12-15 MMTPA

Ash = upto 35 %

CO Shift

Technology

ASU Utility Block

H2S

Removal

CO2

Removal

UN-SHIFTED AGR

SRU

CO2

Sulfur

O2 =150-170 TPHSteam

N2

Power Block

753143 Nm3/hr

CO =24%

CO2=27%

H2=37%

CH4=11%

H2O=32%

H2S=0.2-0.3

CO2 rich

stream

300-325 TPH

567038 Nm3/hr

CO =24-28%

CO2 =18-22%

H2 = 55-60%

CH4 =14-16%

Inert =0.3-0.5

786367 Nm3/hr

CO =15-20%

CO2=27-34%

H2=38-42%

CH4=10-12%

Inert+H2S= 0.2-0.35

Methanol

Unit

5000 TPD

SNG

CO

Cold

Box

474585 Nm3/hr

CO =20.28%

CO2 =1.02%

H2 = 62%

CH4 =15%

Inert =0.43

H2-CO2

CO+CO2

CO2

CO

H2

=3

Purge

gas

1 April 2016 17

Feed Stock: How Much Coal We Need?

Yield of Methanol from Coal Gasification:

Basis : 5000TPD (1.8 MMTPA) of Methanol Production

Coal Required: Total 9-12 MMTPA

Projected Methanol required by 2018-19 in

MMTPA(most conservative approach)Coal Required to meet the entire

Methanol demand by only Coal

Gasification, in MMTPA

for Chemicals

for Fuel BlendTotal Methanol

Required

5% 10% 15% 5% 10% 15% 5% 10% 15%

2 1.15 2.3 3.5 3.15 4.3 5.5 16-21 22-29 28-37

1 April 2016 18

Feed Stock: How Much Coal we Have?

Coal resources & Coal reserves in India

Inferred: 34 BT

Proven: 113 BT

Indicated: 137 BT

Estimated resources down to 1200 meter: 310 BT

up to 600 m 90% are of commercial interest

62 % of reserve inferior quality (CV 4000 kcal/kg)

85% non-coking

1 April 2016 19

Production Technologies

1 April 2016 20

Production Technology: Production Routes

Methanol ProductionSyngas

NG/Naphtha Reforming

LSHS

Gasification

Coal

1 April 2016 21

Syngas Production: NG Reforming

Feed Temp. oC

Press.

bar

Cat. Note

Reforming NG/Naphtha 900 30 Ni basedRequires

HT/Lt Shift

1 April 2016 22

Syngas Production : ATR

Feed Temp. oC

Press.

bar

Cat. Note

ATRNG/Naphtha/

Heavy Oil1000 100 Pt/Rh

H2:CO can be varied

Linde (Tandem Reforming)

1 April 2016 23

Key Issues with Gasifiers

Kinetics

Operating P, Temp

Coal/gas contact

Syn gas compositions

Sizing of the gasifier

Effects of feed variations

Material of construction

Engineering Aspects

Scale-up

Syngas Production : Coal Gasification

Exothermic:

• Partial Combustion of CarbonC + 0.5O2 ↔ CO; ΔH0

298 = -110.5 kJ/mol

• Complete Combustion of CarbonC + O2 ↔ CO2, ΔH0 298 = -393.5 kJ/mol

• Water Gas Shift ReactionCO + H2O ↔ CO2 + H2, ΔH0 298 = -283.0 kJ/mol

• MethanationC + 2H2 ↔ CH4

ΔH0 298 = -74.5 kJ/mol

CO + 3H2 ↔ CH4 + H2O, ΔH0 298 = -205.8 kJ/mol

Endothermic:

• Boudard ReactionC + CO2 ↔ 2CO, ΔH0 298 = +172.5 kJ/mol

• Steam Reforming ReactionC + H2O ↔ CO + H2, ΔH0 298 = +131.3 kJ/mol

• Liberation of Bound Hydrogen2H ↔ H2 , ΔH0 298 = +431.0 kJ/mol

Gasifier Gas

Composition

(Vol %)

H2 25 - 30

CO 30 - 60

CO2 5 - 15

H2O 2 - 30

CH4 0 – 5

H2S 0.2 - 1

COS 0 - 0.1

N2 0.5 - 4

Ar 0.2 - 1

NH3 + HCN 0 -0.3

Ash/Slag/PM

Coal

O2/Air

Steam

Kinetics: Kinetic/equilibrium controlled,

Exothermic/Endothermic reactions

1 April 2016 24

Moving Bed Gasifier:

Entrained Flow Bed:

Fluidized Bed Gasifier:

Syngas Production : Coal Gasification

Indian coals are characterized by

High ash content (~ 40%),

Low calorific value,

Low sulfur,

High reactivity and

High ash fusion temperature.

Fluidized bed gasifiers are more

suitable to Indian coals.

Entrained bed gasification results

in loss in efficiency due to

inherent high ash content of coal.

1 April 2016 25

Coal Gasification: Available Technology

Entrained BedGE

UDHE

Shell

MHI

CB&I (erstwhile Philips 66)

Siemens

OMB

MCSG

TPRI

HTL

Tsinghua

EAGLE etc

Fluidized BedUDHE (erstwhile

HTW)

U-gas (SES)

(Transport) KBR,

Moving/Fixed BedSASOL / Lurgi

BGL,SEDIN

1 April 2016 26

Coal Gasification: Pilot Plant in EIL R&D

CTL Technology Development Efforts

by EIL

1 April 2016 27

CTL– Technology Development in EIL R&D

Objective:

Development of gasifier technology

HPTGA for coal kinetics

Fluidized bed gasifier (150 kg/h)

Mathematical model of gasifier/design data generation

Syngas clean-up pilot plant

FT technology

Micro/bench scale reactors (Catalyst/kinetics)

Slurry bubble column pilot plant(reactor hydrodynamics)

Reactor model for FT reactor reactor design

Preparation of process design package and costing for demo plant

1 April 2016 28

CTL– Technology Development in EIL R&D

Capacity: 150 kg/h

Operating pressure: 30 bar

1 April 2016 29

CTL– Technology Development in EIL R&D

Capacity: 300 Nm3/h

Operating pressure: 30 bar

1 April 2016 30

Methanol Production: Processes

Production Processes

Two Stage Methanol Production

Single Stage (oxidative conversion) Methanol Production

Catalytic hydrogenation of CO2

1 April 2016 31

Syngas Production: Process Economics

For NG based methanol plants Syngas generation unit (ATR based) cost is

~50% of overall plant cost

For coal based plants, gasification plant is 70-80% of overall plant cost

Price of methanol from coal is dependent on Technology for Coal

Gasification along with coal cost

Import Price as on 2015-16 (Dec.) Rs.18,000-19000/Tonne

1 April 2016 32

Methanol Production: Economics

Imported NG (even NG transportation cost may be higher than Methanol)

Design of plants with capacities upto 3.5 MMTPA is offered by Methanol Tech

Licensors(our consumption is 1.5 MMTPA)

Our plants are integrated with Fertilizer plants so capacity is limited

High energy cost/consumption

China has developed domestic coal based methanol plant

Why production cost High in India?

1 April 2016 33

End Use

1 April 2016 34

End Use of Methanol

1 April 2016 35

End Use: Methanol as MS blend in India

Methanol can be produced from Varity of feed stocks like NG, Coal, Biomass

Will reduce dependency on crude

Indigenous technology for Coal need to be developed

Advantages as gasoline blend:

Octane No 100 (high compression ratio( 9 to 11) possible-> high efficiency)

Latent heat is 3.7 times of Petrol. Can be used in engine cooling

Boiling point 64.7oC

Can be used in IC engine after slight modification

Reduced Nox emission

No C – C bond. No soot/particulate matter

Can be blended with gasoline as an oxygenated additive

Methanol as fuel for DMFC, which is most potential to replace conventional batteries

(Methanol has higher no. of H atom than same vol. liq. Hydrogen)

1 April 2016 36

End Use: Methanol as MS blend in India

Requires policy / specification, Norms for India

Requirement of indigenous technology for Methanol synthesis

Disadvantages:

Reacts with few plastic/polymers (corrosion inhibitors are added)

Corrode some metals, including aluminium, zinc and magnesium

Toxic (Who drinks gasoline? MTBE is carcinogenic)

Energy density ½ of gasoline

Lacks light component. Cold start problem(add 15 % gasoline)

1 April 2016 37

End Use: Methanol as MS blend-World wide

Global Methanol Production (2009)

1 April 2016 38

End Use: Methanol as MS blend- China

China’s monthly methanol output increasing year on year

8% Gasoline was displaced by Methanol (as per news in 2009)

Natural gas methanol is shrinking but coal-to-methanol is strong

Firmer coal-to-methanol margins and emerging demand from

olefins drive up domestic production

1 April 2016 39

DME as LPG Substitute

–Burns like Natural GasWobbe Index 52 (Natural gas 54)

Boiling point -25°C (Propane -42)

Vapour pressure 0.53 MPa (Propane 0.91)

–Handles like LPGCompletely miscible in LPG

Existing LPG infrastructure - Below 20 %

DME.

For neat DME, minor changes in sealing

materials and burner tip.

Same efficiency and emission as LPG from

cooking stove to industrial boiler.

End Use: Methanol to DME-DME as Alternative Fuel

Outstanding Diesel Alternative

– Clean-burning alternative to

diesel Cetane number 55-60 (Gas

oil 40-55)

No smoke, no sulphur

NOx : ~ 90% reduction

CO2 : ~ 95% reduction

– Cost – Relatively moderate

(with very high conversion

efficiency)

– Energy density

Lower than diesel (must be

pressurized to be used in modified

diesel engines)

Significant interest in this diesel

substitute in Japan and other parts of

Asia.

Methane DME

Propane

Today,150,000 t/y as aerosol propellant, plus 300,000 t/y for emerging fuel market

1 April 2016 40

Why Methanol Economy?

Easily transportable Liquid hydrocarbon that is feed for many other Chemical

Production

Potential fuel blend (MeOH & DME) that will reduce India’s import dependency

Possible to produced directly from Indian Coal

Technologies are mature/under development

China is already in this route

Compare with Hydrogen Economy:

Methanol as fuel for DMFC, which is most potential to replace conventional

batteries and hydrogen fuel cell(Methanol has higher no. of H atom than same

vol. liq. Hydrogen)

Easy to store and transport compared to liquid hydrogen

Compare with Ethanol Economy:

Production of Ethanol based on agricultural (corn, wheat etc.) may impact food

security

Land availability is an issue for agriculture based ethanol production

1 April 2016 41

Conclusion

Methanol Economy in India

Feed stock availability / allocation of coal for methanol production

Related technologies (indigenous ) will be move forward for Methanol economy in india e.g

Coal/Biomass Gasification Technology

Syngas Cleaning Technology

Low Pressure Methanol Synthesis Technology

Requires Dedicated Norms for Methanol Blending

Need to take care of Environmental aspect

Need to chose between Methanol and Ethanol

THANK YOU