Fourth International Conference on Clean Coal Technologies CCT2009

3rd International Freiberg Conference on IGCC and XtL Technologies

Dresden Germany 18-21 May 2009

Ltd

Dr David CrazeLatrobe Fertilisers Limited6-8 Powlett Street, East Melbourne VIC 3002Tel: 613 9415 7844 Fax: 613 8415 0351

LATROBE UREA PROJECT

Challenges posed from using Lignite Feedstock

Regional Urea Market ~ 0.5 Mtpa

Latrobe Valley 53 Bt of “Economic Coal”

Current Electricity Cost A$35-45/MWh

Depletion of Esso/BHP Gas & Oil Fields offers Potential for Future CO2 Geo-sequestration

Victoria’s Electricity Demand to Increase by 50% in 15 years

Project Locale

Urea Provides Highest Gross Revenue Per Tonne of Coal

Latrobe Urea Project

MAIN OUTSET OBJECTIVES:

Economic Plant Size for Local Market plus Potential Export Product

Use of Proven Technologies

Enabled for CO2 Geosequestration (“CCS Ready”)

POTENTIAL ADJUNCTS:

Low Emissions Power Generation via Leveraging

Load-Following / Peak-Shaving Ability via Storage of Intermediate Liquid Products

Key Technology Partners Identified

Latrobe Urea Project Site

Site Location

Urea Plant Design DriversLatrobe Valley Coal is very low cost < A$1/GJ (Equates to <US$0.7/GJ vs $8-12/GJ Henry Hub gas in 2007/8)

Coal is very high moisture and potentially high sodium(Steam fluid bed drying and water quench gasification mandated)

Proximate power supply is very low cost: A$35-45 /MWh (Incentive for electric in lieu of steam compressor drives)

Fresh water supply is potentially constrained(Favours electric drives plus water conservation measures)

Milling & Drying

(RWE X3)

RAW LIGNITE

(~8000 TPD)

SIEMENS

GASIFIER

(x 2)

Air Separation

AIR

Oxygen (2200 TPD)

Slag (~100 TPD) Nitrogen

Raw Quenched Syngas CO:H2O Shift

Gas Treatment

Sulphur Recovery

H2S

Hydrogen

Ammonia Synthesis

Carbon Dioxide

Urea Production

UREA 3800 TPD

Sulphur (~20 TPD)

NH3

Carbon Dioxide(~4000 TPD to disposal)

Dried Coal

QUENCH WATER

~160 MWe EXTERNAL POWER SUPPLY

~4 MWe

15 MWe

23 MWe74 MWe

Recovered Water

13 MWe

3800 TPD UREA PLANT WITH IMPORTED POWER

~3.8 Gl/a Cooling Water

FEEDSTOCK CHARACTERIZATION

Impact on:a) Drying

b) Gasification

c) Process Integration

Sodium Distribution

Potential Feedstocks

NWSE GDSE Moisture Ash (db) Na (db)COAL REFERENCE (MJ/kg) (MJ/kg) wt% wt% wt%

Loy Yang ROM* 8.6 26.3 60.6 2.3 0.12

Yallourn Seam (1) 6.9 25.6 65.7 3.0 0.67

Yallourn Seam (2) ** 7.0 25.4 65.3 2.3 0.53

Morwell 1A Seam (3) 6.9 26.2 66.8 1.2 0.28

* Drying & Gasification tests performed in 2005 for Monash Energy** Drying & Gasification tests performed in 2008 for Latrobe Fertilisers Ltd

MHC @ 52%RH (wb) 16days vs Na

12.0

12.5

13.0

13.5

14.0

14.5

15.0

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80

Na % db in Coal

Moi

stur

e C

onte

nt %

LY ROM

Site 3 Site 2

Site 1

Effect of Sodium Content on Equilibrium Moisture Level

WTA Pilot Drying TestYallourn Seam Coal – August 2008

MAIN CONCLUSION FROM DRYING TEST:For same scale as RWE Niederaussem Demonstration Drier, LUP drier capacity will only be ~ 80% under similar operating conditions due to lower heat/mass transfer coefficient. This applies for all Latrobe coals. (Nominal water removal rate is only 80 TPH instead of 100 TPH expected from Niederaussem)

IMPLICATIONS for 3800 TPD Urea Plant, including extra coal for dry lignite fired boiler:

Coal Type LY ROM Y-Seam 50:50 MixMoisture 60.5% 66.5% 63.5%Raw Coal (TPD)Urea Only 7410 9650 8440Urea+Fuel 7900 11500 9400

3 Drier Utilization 75% 123% 95%

SECONDARY OBSERVATIONS:Ability to increase operating capacity through increasing

steam supply pressure is limited by fine particle carryover

Raw milling power very low cf. Rhenish lignite

Final dryness (14% 12%) governed by ambient air conditions (flow, temperature, humidity)

Recovered condensate very acceptable for water quench in gasification process

Final particle size exceeds SFGT specification limits thus requiring supplemental screening/milling upstream of gasification

PROPERTY UNIT VALUEpH ~4.0Conductivity μS/cm ~42Sodium mg/l <0.5Potassium mg/l <0.5Ammonia mg/l <0.2Chloride mg/l <1Sulphate mg/l <2Phosphorus mg/l <0.1TOC mg/l ~17Solids mg/l ~1COD Filtrated mg/l <40

Average test values for vapour condensate from Yallourn seam coal

Dried Lignite Particle Size Distribution

500μ

(% dry basis)Sample

Description Ash Yield SiO2 Al2O3 Fe2O3 TiO2 K2O MgO Na2O CaO SO3 AFT (degC)

Loy Yang ROM 2.3 45.4 15.4 5.4 0.95 0.54 5.9 6.9 2.1 9.0 ~1250Site 1, Yallourn 3.2 1.1 0.9 4.5 0.03 0.4 25.5 31.5 3.1 19.1 1550+Site 2, Yallourn 2.3 2.1 4.8 2.9 0.09 0.18 20.8 32.3 4.3 18.7 1550+

Site 3, Morwell 1A 1.3 2.3 11.5 3.8 0.01 0.46 13.8 28.5 4.1 27.0 1550+

Fluxant (LYPS ash) Add 2-3% 50.0 23.3 7.2 2.3 0.8 7.5 2.9 2.0 0.6 1300-1350

Feedstock Ash Characteristics

Milling & Blending for SFGT Gasification Trials

Post Drying Test Particle Size Distribution

0.1

1

10

100

10 100 1000 10000

Screen Size (microns)

Wt%

Ret

aine

d on

Scr

een

Loesche

IBC Top

IBC Bottom

UVR-FIE AsReceivedUVR-FIE AsMilledSFGT

2008 SFGT Gasification Trials with Yallourn seam coal:7 October: Pre-Test @ 3% db flux addition

10 October Witness Test @ 3% db flux addition

15 October Witness Test @ 1.8% db flux addition

PRINCIPAL CONCLUSIONS:Taking into account the successful Monash Energy

trial in 2005 plus the most recent trials with Y-seam coal, two SFGT gasifiers will be able to supply a 3800 TPD urea plant using essentially any low-ash feedstock sourced from Loy Yang mine

Due to the need for slightly higher gasification temperatures, coupled with its somewhat lower density when dried plus lower calorific value, Y-seam coal has less operating capacity margin than LY ROM coal.

SECONDARY OBSERVATIONS:SFGT performance guarantee is contingent on meeting

moisture content less than 12% and particle size less than 500 micron

Fluidization and particle transport tests by SFGT may mitigate the need for extensive post-drying milling however some form of particle classification will still be required

Additional particle drying may be advantageous and could possibly be realized using the nitrogen transfer system from drier to gasifier

A 50:50 blend of LY-ROM and Yallourn-Seam or similar high AFT coal may overcome the need for flux addition, and consequent increase in oxygen demand

Milling & Drying

(RWE X3)

RAW LIGNITE

(~8000 TPD)

SIEMENS

GASIFIER

(x 2)

Air Separation

AIR

Oxygen

Slag Nitrogen

Raw Quenched Syngas CO:H2O Shift

Gas Treatment

Hydrogen

Ammonia Synthesis

Carbon Dioxide

Urea Production

UREA 3800 TPD

NH3

Carbon Dioxide

Dried Coal

QUENCH WATER

Recovered Water

3800 TPD UREA PLANT FRONT END TECHNOLOGIES

SFGT 500 MWth Gasifier (per Ningxia)

RWE Drier Niederaussem(100TPH water removal rate)

Implications for Process/Utility Integration:All process water demands should be met with water recovered from

coal drying unit, therefore the only water requirement is for cooling needs that cannot be economically realized by air cooling

Steam system configuration is biased towards maximizing LP steam generation to facilitate coal drying with minimal extra coal demand (< 12%) leading to advantageous application of (ejector) thermo-compressors

A considerable quantity of low grade heat is rejected from the drying unit, therefore could be utilized for BFW pre-heating, AAR (ammonia absorption refrigeration) and miscellaneous heating needs

If CPRS is legislated mechanical vapour recompression can be readily incorporated to reduce CO2 emissions

The use of excess LP nitrogen from the ASU should be considered to reduce residual moisture in the dried coal ahead of gasification

Raw Lignite Mills

Raw coal (0 - 80 mm)

Drier

Circulation Cyclone

Vapour Electrostatic Precipitator

CirculationBlower

Dry Lignite to Milling & Gasification

Condensate return

to BFW System

External steam ~4 bara (sat)

0 - 2 mm Air Cooled Condenser

Bleed to atm.

Condensate to Quench

RWE Steam Fluidized Bed Drier Without Heat Recovery

Coal Steam ~1.2 bara

~130 C

Drier

Gasifier Shift Rectisol & LIN Wash

Ammonia Synthesis

Urea Syn & Granulation

Superheater /Auxiliary

BoilerASU

MP Steam ~ 50 barg

LP Steam @ 4-5 barg

Preliminary System Lineup with Thermo-compressors (Indicative TPH Steam Flows for LY ROM coal)

~250 TPH

Water Treatment

SulphurRecovery

36 100 126#

10

801

40

130 *

*Start Up Only

** LLP Steam

# 30 barg only

(60)**85

2 10

(31)**35

3

6061

120

~185 TPH Atm Steam

Cooling Tower M/U

3.57

Steam/Condensate Return3.43

Wet Syngas to Shift Reaction

1.70

Shift Water Return to Quench1.38

Quench Water M/U

1.35

Quench Wastewater

1.20Coal Water M/U to Cooling Tower

0.27

Cooling Tower Blowdown0.13

Boiler Blowdown0.04

Boiler Chemicals

0.00

Demin Water from Loy Yang A

0.60

HQ Water

3.57

Coal Drying Unit Water

1.62

Dried Coal - Water and Salt

0.16

Cooling Towers

3.84

Quench

2.90

Evaporation3.46

Windage0.25

Boilers

4.02

Steam Losses0.55

Final Effluent

1.37

Shift Reaction

1.70

Shift Water Losses

0.32

Water Uses/Processes

Demin Water

Low TDS Water

High TDS Water

Shift Water

Steam/Condensate

WastewaterBoiler Chemicals

CONVENTIONS

Units: GL/yr Parsons Brinckerho

Indicative SANKEY Diagram for LY ROM Coal

ACKNOWLEDGEMENTSLatrobe Fertilisers Limited acknowledges the contribution of the following organizations, whose highly capable personnel have supported its efforts towards realizing the Latrobe Urea Project:RWE Power International, RE GmbH

Siemens Fuel Gasification Technology GmbH & Co. KG

GHD Pty Ltd

HRL Technology Pty Ltd

Loy Yang Power

Parsons Brinckerhoff Australia Pty Ltd

United Group Resources Limited

WorleyParsons Services Pty Ltd

Wuhuan Engineering Corporation Ltd