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Hemmings 1

From Well Head to Wire: Electric Power from Stranded Gasusing the Starchem Methanol Process- An Update

John W. HemmingsManager Technology DevelopmentFoster Wheeler International Corporation

Douglas M. ToddProcess Power Plant ManagerGeneral Electric Power Systems

Hemmings 2

Introduction

Technologies for the monetization of remote gas are currently developing at a rapid pace. Much of theattention has been directed towards liquified natural gas, to serve large-scale power markets andFischer Tropsch liquids to serve the transportation fuel market. This paper deals with a thirdalternative, which is to produce methanol by a new, low cost, large-scale process, the Starchemprocess, which has been specifically developed for the purpose. The economics of the Starchemprocess are extremely attractive and make it possible to consider methanol as a fuel and as a way totransport the fuel value of the natural gas a long distance at low cost. In this manner, the Starchemprocess is a third way to bring stranded natural gas to market.

The Starchem process is based on a new method of producing syngas particularly applicable to remotegas sites where equipment packaging and reduction of site labor are important drivers of overallcapital cost. The Starchem Process is based on the use of enriched air, derived from air separationmembranes, closely integrated with a gas turbine, as an oxidant for a catalytic partial oxidation (auto-thermal reforming) process. This method of synthesis gas production is appropriate for FischerTropsch and methanol synthesis applications, however the production of methanol by the Starchemprocess offers unique commercial possibilities, specifically in Well Head to Wire power productionschemes.

The overall concept of a Starchem based Well Head to Wire scheme is to use the Starchem processto produce methanol from remote gas for use as fuel in Combined Cycle Power Plants located inregions where pipeline natural gas is not available and where the power demand is too small for LNGto be practical. The Starchem methanol technology has been developed specifically to address theWell Head to Wire market, and simultaneously addresses the energy industry s need for an effectivetechnology to deal with associated gas as well as the global electric power industry s need for greensolutions to expanding electric power demand.

The Starchem process is characterized by a low capital cost as well as a simple and highly operableflowsheet. These features make it possible to produce fuel grade methanol with an investment muchsmaller than for LNG and at a price low enough to consider as fuel for power generation usingcombustion turbine combined cycle units.

Methanol has the advantages of, being safe to handle, environmentally benign, and easy to transportand store, which makes it a convenient way to deal with associated gas from remote oil fields and totransport its energy content to market. Fuel grade methanol can be used as a fuel for gas turbinesimple cycle or combined cycle power stations with minimal hardware modifications and deliverssuperior performance, both in terms of power output and environmental impact. Starchem methanolbased schemes can be implemented at a smaller scale than LNG, at both ends of the production andconsumption train. The field size required to sustain a viable Starchem unit is smaller than thatrequired for a world scale LNG facility; At the consumption end, methanol is ideally suited to islandsand enclaves where less than 500 MW of power is required.

The Starchem Process: How it Works

The Starchem process is a unique integration of enriched air production, catalytic partial oxidation,methanol synthesis and purge gas hydrogen recovery. The basic block flow diagram is given below:

Hemmings 3

Figure 1: Starchem Block Flow Diagram

An overview of the process steps is as follows:

~ Air is drawn into the inlet of a gas turbine.

~A significant fraction of the air is extracted from the gas turbine compressor, through a boostercompressor and into air enrichment membranes. The balance of the air is fed to the gas turbinecombustor or is used for internal component cooling. The gas turbine itself burns methanol synthesispurge gas as a primary fuel. This means that the gas turbine operates under conditions verycomparable with those found in many IGCC cycles. A typical IGCC combustor as well as thecombustor configuration proposed for Starchem are shown in Figure 2.

~Enriched air is produced by the membranes, which work on the principle that oxygen diffuses fasteracross the membrane than does nitrogen. The major part of the nitrogen and some residual oxygenremains in the main gas stream as depleted air.

~Depleted air is heated against compressor discharge air and returns to the gas turbine as secondaryair to the combustor and forms a significant part of the mass flow through the turbine.

GE Package

BASIC STARCHEM CONCEPT

NATURALGAS Syngas

Production

SYNTHESISGAS Methanol

Synthesis

CRUDEMETHANOL Methanol

Distillation

POWERMETHANOL

(1.5% water)

Enriched

Air

AirEnrichmentMembrane

HydrogenRecovery

Purge

L.P.Fuel

Hydrogen

Combustor

H.P

.

Fuel

Generator

Booster Turbine

Heat RecoveryStack Gases

Compressor

Air

Hemmings 4

IGCC Combustor Starchem Arrangement

85% Air Extraction

To Process

TurbineCooling

Head End Air

Vitiated Air

Figure 2. Starchem Combustor

~Enriched air is compressed, heated and fed to the catalytic partial oxidation section.

~Natural gas is heated, desulfurized, mixed with steam, heated further and fed to the synthesis gasproduction reactor, which is typically medium pressure catalytic partial oxidation (other alternativesare possible).

~Synthesis gas is cooled, recovering useful heat in various ways and is then compressed to a suitablepressure for methanol synthesis.

~Methanol is synthesized in a cascade of reactors. The crude methanol passes to a methanoldistillation section where it is stabilized and reduced to an economic water content for transport.

~Purge Gas from the methanol synthesis cascade is treated to recover hydrogen for recyclingpurposes. The tail gas is used in the gas turbine as fuel.

New Integration of Established Technologies Yields Superior Economics

The Starchem process is a new integration of known technologies and well-proven equipment. Theuse of known technologies serves to reduce the overall risk of the process, while the integration wasspecifically developed to address the needs of large scale plants located where feedstock is abundantand of low value. Many of the cost advantages come from synergies between the process steps,however some specific examples will illustrate the overall principles:

• Use of Enriched Air, catalytic partial oxidation processes for synthesis gas manufacture typicallyemploy cryogenic oxygen. The Starchem process takes a different approach and instead usesenriched air which can be produced at a significantly lower cost in the process. It is widelyrecognized that cryogenic oxygen production can account for as much as 25% of installed capitalcost. The figure can be significantly larger when the cost of power production (required for the airseparation unit) is also taken into account.

• Power production and air compression would normally be two separate units in a large methanolplant, alternatively oxygen or power could be purchased over the fence . In the Starchemprocess, by contrast, a specially adapted, high air extraction gas turbine (supplied by GeneralElectric), does double duty as a supplier of compressed air for enrichment and electric powerfor the balance of the methanol process (various compressors).

Hemmings 5

• Instead of cryogenics, the Starchem process uses membranes to produce enriched air. This is asignificantly lower cost solution and has the operability benefit that, in contrast to a cold box thatrequires many hours to cool down to working temperature during start-up, the enriched air isavailable almost immediately. Additionally, much of the added expense and complicationassociated with pure oxygen is avoided.

• Elimination of recycle compression and optimization of synthesis catalyst volume by use of aCascade of reactors. The cascade concept enables lower catalyst volumes to be used to takeadvantage of higher gas reactivity.

• Stoichiometry of the synthesis gas is adjusted by use of a hydrogen recovery membrane and acompressor. In this manner, the Starchem process efficiently recycles an optimum amount ofhydrogen, leaving sufficient residual synthesis gas to fuel the gas turbine. This is in contrast tothe conventional methanol process where a significant amount of synthesis gas typically reports tothe low-pressure fuel gas stream.

• Heat integration recognizes that the process is to be used in locations where the feedstock cost isrelatively low. Consequently heroic measures to squeeze out the last few percent of thermalefficiency are avoided. This is in sharp contrast to conventional methanol processes, whichevolved for situations where feedstock is expensive and efficiency an over-riding concern.

• The process is conceived from the outset as a large-scale methanol technology, in the range 6,000to 12,000 tpd of product. The capacity range being principally set by the gas turbine equipmentselected. This is in sharp contrast to conventional processes, which have grown in size, byincremental improvements to the current world scale range of 3,000 to 4,500 tpd.

Methanol Fired Gas Turbine Performance Issues

In an overall Well-Head to wire scheme using methanol as the energy carrier, it is clearly importantto be assured that methanol is technically acceptable, as well as economic, as a power station fuel.

A large amount of work was done on methanol as a fuel in the 1970s and 1980s, in anticipation of amove away from oil based fuels towards alternatives. This work concluded that methanol is aneminently suitable gas turbine fuel. Methanol has not been widely applied commercially due to thehigh cost of production by conventional processes.

Methanol can be burned either as a liquid or as a vapor, each approach having its own uniqueadvantages. Minor adaptations are required to a conventional gas turbine to suit the characteristics ofthis fuel, as follows:

� Methanol has approximately half the heating value of hydrocarbon fuels, consequentlycombustion require bigger fuel orifices. In addition, adequate tankage for the volume of fuel mustbe provided.

� Methanol has a low flash point compared to distillate fuels, consequently instrumentation andelectrical installations need to be explosion proof, storage tanks need to be either floating roof ornitrogen blanketed.

� A secondary fuel (typically distillate) is required for startup. (This enables the turbine to employa standard startup sequence and control strategy).

� If methanol is used as a vapor it needs to be pumped to a suitable pressure and vaporized usingsteam passed out from the steam turbine.

Hemmings 6

� If methanol is burned as a liquid, special main fuel pump and pressure compensated flow dividersare needed to accommodate the lack of lubricity of liquid methanol.

Diffusion combustors are available to burn methanol in both E class and FA class gas turbines. Postorder verification test work is required except for in the case of vapor firing in an E class machinewhere no testing is needed. Compared to hydrocarbon fuels, as a consequence of the lower calorificvalue of methanol, less steam injection is required to meet typical emissions requirements (25 ppm).

Dry low NOx combustors are feasible in principal but development work, including single cancombustor tests would be required.

There are no SOx emissions with methanol which is a sulfur free fuel.

The performance of a typical 50 Hz gas turbine based power station is compared in Table 1 for LNG,Distillate, liquid and vapor methanol. The assessment is for a typical 109FA combined cycle unit,producing a nominal 360MW. The assessment is given at ISO conditions.

Table 1: Power Plant Performance Comparison (109FA, ISO Conditions)

LNG Distillate Liq MeoH Vap MeOHWater Inj Steam Inj Steam Inj

CCU Net Output- MW 385 394 408 394CCU Net Heat Rate BTU/kWh

LHV 6083 6743 6314 6097HHV 6749 7268 7185 6938

GT Gross Output- MW 253 267 281 284NOx @ 15% O2 ppmvd 25 42 25 25Water/Steam Inj kpph 0 181 130 162CO2 Emissions Vol% 4.0 5.7 4.9 4.6

Note that methanol fuel can increase output by 6% over LNG and by up to 3.5% over distillate oil.Methanol can also improve heat rate by up to 4.5% over distillate oil.

Power Generation Economics

Despite the superior qualities of methanol as a gas turbine fuel, power generation using methanol fuelhas not yet become important commercially. This is primarily due to the high cost of methanolproduced by today s commercial technologies relative to hydrocarbon fuels. The economics of powergeneration are driven by the following:

� The delivered cost of fuel.� The power station efficiency.� The power station capital cost.

In typical situations, fuel costs account for over 60% of the total cost of electricity.

Hemmings 7

Delivered Costs Starchem Fuel Methanol

Starchem methanol is positioned primarily to be the fuel of choice for situations where economies ofscale preclude LNG from being a feasible choice. A prime example of such situations being islandsand enclaves with total power requirements below 500MW. A large amount of the world s existingpower generation capacity in such islands and enclaves is based on liquid fuel fired gas turbines aswell as on residual fuel oil fired steam cycle power plants. It is therefore interesting to consider how acombined cycle unit fired with Starchem methanol compares to combined cycle units fired with No 2Fuel Oil as well as steam turbine based units fueled with No 6 Fuel Oil. The full comparison needs tobring to account not only the fuel cost, which is the primary effect, but also the heat rate and poweroutput differences between the different fuels, which is also significant.

Typical costs for Starchem methanol are given in Table 2.

Table 2: Estimated Costs for Starchem Methanol

$/MMBTU$/mt HHV

Feedstock natural gas @ $0.50/MMBtu 15.50 0.72Other variable/catalyst/chemicals 2.50 0.12Fixed O&M 5.75 0.27Cost of Capital, Depreciation, Tax 32.75 1.52Transportation 15.00 0.70

Total Delivered, Excluding Marketing Costs 71.50 3.33

The above tabulation assumes a 10,000 tpd methanol plant, located nominally 4000 miles from thefuel methanol users and includes return on investment for the Starchem plant and tankers. Marketingcosts are not included.

The transportation cost assumes that 100,000 DWT tankers are used to drop off parcels of 25,000 tonsof methanol per consumer.

Using US Department of Energy, Energy Information Administration data for the last twenty years, areasonable fuel price projection for No 2Fuel Oil in island and enclave locations is $4.25/MMBTUand for No 6 Fuel Oil $3.20/MMBTU. Both of these prices are of course subject to large swingscaused by the cyclic nature of the crude oil price.

Cost of Electricity Comparisons

Starchem methanol has performance advantages compared to the alternative fuels, which results inadditional contribution to lower cost of electricity. Realistic scenarios for the use of methanol as fuelare: instead of No2 Distillate in new combined cycle units, and the repowering of existing capacitybased on No 6 fuel oil fired steam cycle units. The comparison to LNG fuel, assumed to be priced at$4.00/MMBtu at burner tip is included for completeness. The costs of electricity generated by thesesystems are given in Table 3.

Hemmings 8

Table 3: Cost of Power Production with Methanol and Other Fuels

No. 2 No. 6LNG Methanol Fuel Oil Fuel Oil

Power Plant GE 109FA GE 109FA GE 109FA Oil firedCCU CCU CCU BoilerNew New New Existing

Output MWe 385 394 394 100Fuel Price $/MMBtu 4.00 3.33 4.25 3.20Heat Rate (HHV)MMBtu/kWh 6749 6938 7265 10500

Fuel cost $/kWh 0.02702 0.0231 0.0309 0.0336Other Variable $/kWh 0.0014 0.0012 0.0016 0.0022Fixed O&M $/kWh 0.0029 0.0029 0.0029 0.0050Financial $/kWh 0.0094 0.0094 0.0094 0.0000

Total $/kWh 0.0407 0.0366 0.0448 0.0408

It is clear that electricity can be produced at a competitive cost using Starchem methanol as fuel forcombined cycle units. The specific niche opportunities are refuelling of existing distillate firedcombined cycle units, new combined cycle units below 500MW and re-powering of power stationsbased on oil fired Rankine cycles. In the latter case, Starchem methanol fired combined cycle unitsare not only very cost effective but also have reduced environmental impact.

Economics of Vapor Methanol vs Liquid and Reformed Methanol

Methanol can be burned in three different ways: as a vapor, as a liquid or reformed into synthesis gas.Comparing the three options:

• The cost of electricity is marginally lower with vaporized methanol combustion than with liquid,because the heat rate with vapor is lower than with liquid methanol fuel.

• Liquid methanol fuel does produce a little more output power from the same equipment, however,the heat rate is the dominant effect.Reforming the methanol leads to reduced output without acompensating improvement in heat rate and is therefore not typically advantageous.

The three approaches are summarized below for methanol delivered at $3.33/MMBtu:

Liquid Vapor Reformed

Output MWe 408 394 373HHV Heat Rate Btu/kWh 7185 6938 7122Cost of Electricity $/kWh 0.0371 0.0366 0.0376

Hemmings 9

Product Line Approach

Foster Wheeler is using a product approach to delivering the Starchem technology with both onshoreand offshore versions in the product line-up. Foster Wheeler plans to offer the Starchem technology asa range of standard plants to meet defined needs, based on specific gas turbines. The base caseonshore product will incorporate a pair of General Electric 7EA gas turbines and will be applicable toproduce between 6,000 and 10,000 tpd of methanol (depending on how much co-produced power isrequired). These large scale plants will be capable of consuming 300 MMSCFD of feed gas.

Offshore versions, with the plant built on a floating production storage and offloading (FPSO) vesselare also contemplated. These plants will of course export no power, and by offering a smaller turbineas an alternative will be applicable across a range of sizes to suit the requirements for elimination offlaring of associated gas. It is anticipated that such plant ships could comfortably cover the range of100 to 350 MMSCFD of gas.

Smaller plants, using smaller industrial or aeroderivative gas turbines, are not expected to be attractivefor onshore applications, but could well be attractive for offshore associated gas. Such units would beincorporated into the production platform and could deal with associated gas in the range from 10 to100 MMSCFD.

Opportunities for Further Development

While the Starchem process is ready for commercial application today, in contrast to other methanolproduction technologies, it is at the beginning rather than the end of the product experience curve.Consequently there are a number of possible ways in which the process can be improved in the future,among which:

• The use of greater gas-turbine air extraction, to enable more enriched air (and hence moremethanol) to be produced from the same major equipment.

• The development of air enrichment membranes specifically for the Starchem process thatwill enable higher recovery at the same oxygen concentration.

• The commercialization of a high-pressure catalytic partial oxidation process, enabling thesynthesis gas compressors to be eliminated.

Offshore Considerations

The problem of flaring of associated gas is particularly pressing in the case of remote, offshore oilproduction, as flaring of associated gas becomes unacceptable. Foster Wheeler anticipates a distinctmarket niche for plant ships as well as for modules within production platforms.

Hemmings 10

There is adequate precedent for the concept of a methanol plant ship: Significant study work was donein the mid 1980 s to develop a design for a methanol production barge, which was technically feasiblebut for economic reasons, not built. The economics are vastly improved with the Starchem process.

The Starchem process has several significant advantages in an offshore application:

• Unlike traditional methanol processes, no furnaces are involved, therefore any potential explosionhazards related to furnace startup and operation are eliminated, In contrast to traditional partialoxidation processes, there is no air separation unit.

• Air separation is a difficult unit operation for offshore applications, in part because the cryogenicseparation of oxygen and nitrogen requires many theoretical stages (hence a tall column), which isdifficult both from height and sway considerations. In addition safety issues relating to oxygenhandling are avoided.

• The overall plant is inherently compact, due to the type of rotating equipment used, the extensiveuse of membranes and the simplified heat recovery proposed for offshore applications.

• There are no difficult distillations required and therefore no problems with column height orsway. Methanol is stabilized with light contaminants taken to the gas turbine fuel system and isoptionally distilled to reduce water content for economic transportation.

Starchem Process is Ready for Commercial Application

In its current state of development the Starchem process is ready for commercial application:

• No new process steps or catalysts are envisioned.

• General Electric will supply the gas turbines, which are the heart of the process, with standardcommercial terms.

• There are several suppliers who are able to provide the membranes, synthesis gas generationreactors, methanol reactors and catalysts again with normal commercial terms and conditions.

• Foster Wheeler as the engineering company will handle overall integration issues to ensure thatthe plant is fully operable.

Summary

The opportunities presented by the introduction of the Starchem process are significant.

For oil producers, it provides an attractive alternative way to manage stranded and associated gas. It isanticipated that Starchem methanol will find a niche alongside the conventional LNG solution and theemerging GTL solution. There is no question LNG will continue to be the associated gas disposal ofchoice in certain situations and it is very probable that GTL via Fischer Tropsch will ultimately bewidely used. However, the Starchem process provides an attractive means to solve the problems ofassociated gas, and could be the method of choice in certain cases.

For the power industry, fuel grade methanol is an interesting alternative fuel that is clean and efficientand is applicable for new combined cycle power stations. Methanol can also be used in existing

Hemmings 11

combined cycle or simple cycle power stations, which currently burn high cost naphtha or distillate,requiring only minor adaptations to gas turbine combustors and fuel delivery systems. Fuel methanolis particularly convenient for locations that are too small for LNG to be practical.

The Starchem process is ready for commercial application, using well-proven process steps andequipment, combined with the significant process integration experience of Foster Wheeler and GE tocreate the synergies that make the process work well in the real world.

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From Well Head to Wire: Electric PowerFrom Well Head to Wire: Electric Powerfrom Stranded Gas using the from Stranded Gas using the StarchemStarchem

Methanol Process - An UpdateMethanol Process - An Update

_____________________________________________________________________

Presented at

GASTECH 2000

Houston, November 2000

John W John W HemmingsHemmings

Foster Wheeler CorporationFoster Wheeler CorporationDoug ToddDoug Todd

General ElectricGeneral Electric

FOSTER WHEELER

p:\42267-03\starpowr.ppt

Subjects to Be CoveredSubjects to Be CoveredSubjects to Be Covered

� Bringing gas to market via large scale methanol plants

– Starchem - a low cost methanol technology

– Possible niches for methanol

– Well Head to Wire concept

� The Starchem Process

– what it is/how it works

– gas turbine - central to process

– reasons for low capital cost

� Methanol fired gas turbine performance and economics

� Summary

FOSTER WHEELER


Advantages of MethanolAdvantages of MethanolAdvantages of Methanol

� Methanol process is simple

� Methanol production relatively efficient

� Methanol easy to transport

� Methanol can be delivered economically in smallparcels

� Methanol inexpensive to transport

FOSTER WHEELER


Capital Cost: Starchem vs Other MethanolCapital Cost: Capital Cost: Starchem vs Starchem vs Other MethanolOther Methanol

0

200

400

600

800

1000

1200

1400

0 5000 10000 15000

Capacity (TE/DAY)

CA

PEX

($M

M)

SMR

COMBISTARCHEM

(Includes ISBL plus 35% for OSBL & Location)

FOSTER WHEELER


Delivered Cost of MethanolDelivered Cost of MethanolDelivered Cost of Methanol$/mt $/MMBtu (HHV)

Feedstock @ $0.50/MMBTU 15.50 0.72

Other Variable/catalyst/chems 2.50 0.12

Fixed O&M 5.75 0.27

Capital Related 32.75 1.52

Transportation 15.00 0.70

Total Delivered 71.50 3.33

Assumptions:

- 10,000 tpd plant

- 4000 miles from markets

- 100,000 DWT tankers, 25,000 ton parcels

Many possibilities open for <$80/Many possibilities open for <$80/tete methanol methanol

FOSTER WHEELER


StrandedStrandedNaturalNatural

GasGas

OlefinsOlefinsPolyolefinsPolyolefinsDerivativesDerivatives

MethanolMethanol

MTOMTO

Islands andIslands andEnclavesEnclaves

<1000 <1000 MWeMWe

>1000 >1000 MWeMWe

Fuel CellFuel Cell(future)(future)

GasolineGasoline

DieselDiesel

MTGMTG

STARCHEMSTARCHEM

STARCHEM

PETROCHEMICALS

LNG

FT

POWER GENERATIONAND ENERGY

TRANSPORTATIONFUELS

Niches for StarchemNiches for Niches for StarchemStarchem

FOSTER WHEELER


GT 1

GT 2

GT n

Subsea P/L98,000 tonsto big users35,000 tonsto small users

POWER PRODUCER CLIENTSNEW & CONVERTED GT s

P/L CONSORTIUMNATIONAL OIL CO.

AND OTHERS

IPP 1

PROJECT COMPANY

WEST AFRICA ATLANTIC BASIN

IPP 2

IPP n

Oil Production

E&P CONSORTIUM

Assoc. Gas

“Well Head to Wire” Concept“Well Head to Wire” Concept“Well Head to Wire” Concept

To energy companies / methanol producers

Large scale outlet for stranded gas

Opens a vast new market

Fuel supply agreements can provide revenue stability

To Utility/IPP

Clean, low cost fuel

Convenient for small as well as large power stations

Logistics easier than LNG

Fuel supply agreement can provide a hedge

Benefits of Starchem Methanol Well head to w ire

FOSTER WHEELER




– The niche for methanol








� Summary

FOSTER WHEELER


Starchem Methanol ProcessStarchem Starchem Methanol ProcessMethanol Process

� Very large scale methanol process designed to suit10,000 tpd plants

� Based on integrated flowsheet featuring:

– Gas turbines/membranes supplying enriched air forsynthesis gas production by CPO

– Synthesis reactor cascade

– Purge gas as turbine fuel after hydrogen recovery

� Low capital cost (<$120/tpa, ISBL)

� Also possible for methanol and power schemes

FOSTER WHEELER


GE Package


NATURALGAS Syngas

Production


Synthesis


Distillation

POWERMETHANOL

(1.5% water)

Enriched

Air


HydrogenRecovery

Purge

L.P.Fuel

Hydrogen

Combustor

H.P

.

Fuel

Generator

Booster


Compressor

Air

Turbine

TheThe Starchem Starchem Methanol Process Methanol Process

FOSTER WHEELER


Starchem Key Process FeaturesStarchemStarchem Key Process Features Key Process Features

� gas turbine (GE 7EA) - central to process

� Novel integration of well known process steps:ready for application now

� Flexibility to use various syngas productiontechnologies

� Methanol synthesis reactor cascade

� Hydrogen recovery

� Power co-production is possible but notrequired

FOSTER WHEELER


GAS TURBINEGAS TURBINE

GE Package


NATURALGAS Syngas

Production


Synthesis


Distillation

POWERMETHANOL

(1.5% water)

Enriched

Air


HydrogenRecovery

Purge

L.P.Fuel

Hydrogen

Combustor

H.P

.

Fuel

Generator

Turbine


Compressor

Air

Booster

FOSTER WHEELER


Technology Available for Commercial OfferingsTechnology Available for Commercial Offerings

� Use Extensive GE IGCC Experience—15 Plants

� >200,000 Unit Hours Operation

� Dual Gas/Co-firing

Syngas CombustionSyngas Combustion

� Proven Wrapper or Header Design

� Union Carbide & Dow Experience — 7 Units

� Regenerative GT Experience — 230 Units

High Air ExtractionHigh Air Extraction

� IGCC Integration

� GE s Mark VI GT Controls — Process Integration

� Dynamic Simulation

Integration/ControlsIntegration/Controls

Gas Turbine Modifications for StarchemGas Turbine Modifications forGas Turbine Modifications for Starchem Starchem

FOSTER WHEELER


Starchem CombustorStarchem CombustorStarchem Combustor

Combustion Testing Program PlannedCombustion Testing Program Planned

IGCC CombustorIGCC Combustor Starchem ArrangementStarchem ArrangementTo Process

Head End Air

Vitiated Air

FOSTER WHEELER


Capital Cost Starchem vs SMRCapital Cost Capital Cost StarchemStarchem vsvs SMR SMR

0

200

400

600

800

1000

1200

1400

0 5000 10000 15000

Capacity (TE/DAY)

CA

PE

X($

MM

)

SMR

STARCHEM

Assumptions:

Location factor 1.1

OSBL 1.2

Reasons:

Large scale

Cost effective rotating equipment

Integration

Prepackaged assemblies

Avoids oxygen and furnaces

FOSTER WHEELER


Conceptual Capital CostsConceptual Capital CostsConceptual Capital Costs

0

200

400

600

800

1000

1200

1400

0 5000 10000 15000

Capacity (TE/DAY)

CA

PEX

($M

M)

SMR

COMBISTARCHEM

(Includes ISBL plus 35% for OSBL & Location)

Reasons:

Large scale

Cost effective rotating equipment

Integration

Prepackaged assemblies

Avoids oxygen and furnaces

FOSTER WHEELER


Starchem vs. Conventional Methanol - OnshoreStarchem vsStarchem vs. Conventional Methanol - Onshore. Conventional Methanol - Onshore

020406080

100120

2500

TPD

SM

R

4500

TPD

CO

MB

I

1000

0TP

DS

TAR

CH

EM

Del

iver

ed C

ost

, $/

te

CAPITAL RELATED

TRANSPORTFIXED

VARIABLE COST

Only Only StarchemStarchem can deliver <$80/ can deliver <$80/tete methanol to user methanol to user(fully absorbed cost basis)(fully absorbed cost basis)

FOSTER WHEELER


Possible Niches for Starchem OffshorePossible Niches for Possible Niches for Starchem Starchem OffshoreOffshore

� Plantships for 100 - 300 MMSCFD Associated Gas

� GBS for up to 450 MMSCFD– Fuel Methanol is an Attractive Product

– Fuel Methanol Can Be Shipped Directly

– Starchem Methanol Technology Applicable

� Flarebusters for 10 - 100 MMSCFD, Located on aPlatform

– Product Must Ship with Oil Produced

• FT Liquids More Attractive than Methanol

• Starchem Syngas Technology Applicable

FOSTER WHEELER


Advantages of Starchem Technology for OffshoreAdvantages of Advantages of Starchem Starchem Technology for OffshoreTechnology for Offshore

� No Oxygen Plant

� No Open Flames/Furnaces

� Compact Process Unit

� Uses compact/modular rotating equipment

– VK compressors

� No Difficult Distillations

FOSTER WHEELER












� Summary

FOSTER WHEELER


Methanol As CT FuelMethanol As CT FuelMethanol As CT Fuel

Feasible for New Units or ConversionFeasible for New Units or Conversion

� Low heating value — MeOH combustors

� Low lubricity — main fuel pump and flow divider

� Low flash point — explosion proofing like IGCC— start Up on NG Or distillate

Fuel CharacteristicsFuel Characteristics

Methanol is an attractive fuel for stationary gas turbine engines.Tests have shown that, with minor system modifications, methanol is readilyfired and is fully feasible as a gas turbine fuel in either a liquid or vaporous state.

� GT Experience — Limited by High Chem MeOH Price— Aircraft Derivatives

— Small Heavy Duty Units

ExperienceExperience

FOSTER WHEELER


Methanol GT Performance Gains in Power and/or EfficiencyMethanol GT Performance Gains in Power and/or EfficiencyVapor Methanol Best General Purpose SolutionVapor Methanol Best General Purpose Solution

Methanol GT/CC PerformanceMethanol GT/CC PerformanceMethanol GT/CC Performance

109FA 109FA —— 15 15¡C/59¡F¡C/59¡F

CC Net Output — MW

CC Net H.Rate — BTU/kWHr LHV

HHV

GT Gross Output — MW

NOx Emissions @ 15% O2 ppmvd

Exhaust CO2, lb/Kwh

Estimated Cost, $/kW

Estimated COE, ¢/kWh

385

6083

6749

253

25

0.78

504

4.07

408

6314

7185

281

25

0.97

477

3.71

394

6097

6938

284

25

0.94

494

3.66

373

6264

7122

251

25

0.95

515

3.76

LNG CCLNG CC Liq. MeOH CCLiq. MeOH CC Vap. MeOH CCVap. MeOH CC Ref. MeOH CCRef. MeOH CC

394

6743

7268

267

42

1.14

499

4.48

DistillateDistillate

FOSTER WHEELER


Cost of Electricity, ComparisonsCost of Electricity, ComparisonsCost of Electricity, Comparisons

LNG MeOH No 2 FO

CCU CCU CCU

Output MWe 385 394 394

Fuel Price $/MMBTU 4.00 3.33 4.25

Heat Rate MMBTU/kWh 6749 6938 7265

Fuel cost $/kWh 0.0284 0.0231 0.0309Other Variable $/kWh 0.0014 0.0012 0.0016Fixed O&M $/kWh 0.0029 0.0029 0.0029DEP+ROI+TAX $/kWh 0.0094 0.0094 0.0094

Total $/kWh 0.0407 0.0366 0.0448

StarchemStarchem Methanol a credible option Methanol a credible option

FOSTER WHEELER











� Methanol fired gas turbine performance

� Power generation economics

� Summary

FOSTER WHEELER


SummarySummarySummary

� Power methanol is a credible outlet for stranded gas

– There is a large, untapped potential market for low costmethanol as gas turbine fuel

– Secondary markets enhance attractiveness

� Starchem methanol technology has potential todeliver methanol at the right price and there are noserious technical obstacles to commercialization

– gas turbine adaptations build on GE s IGCC experience

� Well Head to Wire schemes could make sense forgas owners, methanol plant investors and powergenerators

From Well Head to Wire: Electric Power from Stranded Gas ... Conferences...producing a nominal...

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