1 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

"The HP POX Pilot Plant -A door opener to a new era of natural gas valorisation"

International Freiberg Conference on IGCC & XtLFreiberg, 16 - 18 June 2005

S. Walter, W. Liebner, T. Wurzel, A. BormannLurgi AG

2 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

„... though oil remains a vital fuel […],

technical advances have encouraged gas consumption,

as has the desire to move to fuels that emit less carbon“

(The Lord Browne of Madingley, CEO, BP)

The future of natural gas …The future of natural gas …

3 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

World productionof ammonia

4x World productionof methanol

But why do we see things like those below?But why do we see things like those below?

4 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

Because utilitisation of natural gas can beexpensive...

4 Gas fields with sufficient capacity unfortunately often

are in remote areas

è high transportation costs

! Need to “liquefy” natural gas !

5 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

Outlet of non-flared natural gas &importance of SynGas

4 Energy: 95 %

4LNG: booming market at current energy prices

4 Chemical outlet: 5 %

4Direct conversion to HCN, CHalxH4-x (< 1 %)

4Indirect conversion to MeOH, NH3, H2, CO etc.

via SynGas (> 99 % of chemical market)

6 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

Cold BoxPSA

CO2Removal

CO ShiftConversion

PSA

Synthesis Gas

TubularReforming

TubularReforming

Autotherm.Reforming

MPG

Pre-reforming

Secondary Reforming

Natural Gas

H2 H2 CO

Ways to produce SynGas

7 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

HP-Gasification: The SynGas route of the future

A techno-economic bench-marking of SynGas Production processes showed:

4 SynGas generation stands for 60 – 70 % of ISBL costs:Competitiveness of gas valorisation lies here!

4 Above 500 000 Nm3/h of single-train SynGas production,oxygen-based autothermal reforming (ATR) is thetechnology to use

4 POX and Steam Reforming are no alternative

4 Increase in gasification pressure is the key feature fornext-generation SynGas generation

8 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

Benefits by using High-Pressure SynGas units

Financing of large-scale projects and inherent risk assessment made pilot plant necessary for this next technology step

4 Higher throughput at given equipment size

4 Simplifies gas compression for down-stream synthesisprocesses (e.g. MeOH, NH3)

But

9 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

Demonstration plant for production of Syngas from Natural Gas, Liquid Hydrocarbons/Slurries at pressures up to 100 bar sponsored by BMWA, SMWK, mg technologies

The HP-POX Pilot Plant

10 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

WaterTreatment

Storage

Compressor

Pump andVaporizer

Steam Generator

Soot Water Cooler

Fresh water

LiquidFeeds

NitrogenSupply

Instrument AirSupply

MeasuringStation

Power Supply AnalyticalArea

DesulphurisationReactor

Fla

re S

yste

m

Natural Gas

Liquid O2

Soot Water

HP-POX Pilot Plant - Block Flow Diagram

Flue Gas

11 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

HP-POX Pilot Plant – Fact Sheet

Multi Process Test Facility:

ATR, Gas-Pox, MPG (liquid feedstock)

Feedstock:

Liquid Feedstock 500 kg/h

Natural Gas 500 m3/h

Reactor:

Design Pressure 100 bar

12 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

10/2001 Kick-off for project

6/2003 Engineering completed

12/2003 Mechanical completion and start of precom./com. Activities

03/2004 First gas intake

06/2004 Start-up

from 06/2004 ATR test series

from 05/2005 POX test series

Project implementation

13 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

4 More than 1 000 hours of smooth and stable plant operation with oxygen

4 Gasification pressure of 70 bar proven (ATR)

4 Soot formation limits detected

4 Dependence of trace compounds on reaction conditions studied

4 Ignition characteristics for different conditions studied

Recent results

14 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

4 The ATR test series proved stable plant operation (far) beyond the industrial benchmark (S/C, pressure)

4 The close cooperation between IEC and Lurgi will convert phenomenological know-ledge into applicable engineering models

4 The HP POX will be heart of Lurgi’s CO2 optimisednatural gas valorisation technologies applying ultra-large syngas generation plants

Conclusion

15 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

? Comments, questions ?

Contact :

Dr. Thomas WurzelHead of Department Ammonia & Autothermal reforming

Dept. A-TGAPhone +49 69 5808 2490Fax +49 69 5808 3032e-mail Dr_Thomas_Wurzel@lurgi.de

Lurgi AG Lurgiallee 5D-60295 Frankfurt am MainGermanyInternet: www.lurgi.de

16 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

Importance of a effective SynGas production for Lurgi

MegaSyn®

Fischer Tropsch

Synthesis

Mega-Methanol®

Upgrading

MTO

MtPower

MTH

MtSynfuels®

Acrylic AcidMTP®

Natural Gas /Associated Gas

MTC

Lurgiproprietary process

Megammonia®

Fuel Gas

LPG

Naphtha

Diesel

Waxes

Ammonia

Fuel Cells

Chemicals (MTBE, Acetic Acid, Formaldehyde, ...)

Diesel, transport. fuels

Propylene/Polypropylene

Acrylic Acid/Acrylates

Ethylene/Propylene

Power/Fuel/DME(Diesel)

Hydrogen

17 This Presentation contains proprietary and confidential information of Lurgi AG and may not be reproduced or disclosed to third parties without permission.

1. Bundesministerium für Wirtschaft und Arbeit (BMWA)

2. Sächsisches Ministerium für Wissenschaft und Kunst (SMKW)

3. Institut für Energieverfahrenstechnik und Chemieingenieurwesen(Academic partner)

Acknowledgements