Modular Systems for Fossil FuelsDarren Mollot1, Regis Conrad1, Bhima Sastri1

1 United States Department of Energy, Germantown, USA

FE Program at US DOE

June 13, 2016

Program Manager, Advanced Energy Systems

Dr. Bhima Sastri

2

Outline

• The Opportunity

• White Space

• Path Forward

I wish to thank Dr Dane Boysen, former ARPA-e Program Director, with whom I worked on this idea of Process Intensification/Modular Concepts and who provided me real world insights reflected in the slides that he shared with me that I present here.

3

Syngas Routes to fuels and chemicals

Source: http://www.netl.doe.gov/

4

F-T Process

Syngas

generation

Gas

cleaning

Synthesis gas

production

Coal/Bio/

Gas

Feed

Product

recovery

Syngas-

to-syncrude

Fuels

and

Chemicals

Synthesis

(gas loop)

Oil

refining

Synthetic product

refining

Water

refining

[2] Aron de Klerk, U of Albany, 2011

Example: Fischer Tropsch gas-to-liquids

5

Gas-To-Liquid Economics

[3] A. de Klerk. Gas-to-liquid conversion. ARPA-E natural gas conversion technologies workshop. Houston TX, January 13, 2012.

[4] Pearl GTL - an overview. Shell, 2012. http://www.shell.com/home/content/aboutshell/our_strategy/major_projects_2/pearl/overview/

[5] B. Reddall. Cost of delayed Chevron Nigeria plant now $8.4 bln. Thomson Reuters. 24 Feb 2011.

• Payback = $150,000/bpd $80/boe = 5 years

GTL Facility Company Capacity Capital Cost[5]

Pearl Shell 140,000 bpd[3] ~ $110,000/bpd

Escravos Sasol-Chevron 33,000 bpd[4] ~ $180,000/bpd

Sasol I expansion Sasol --- ~ $200,000/bpd

bpd = barrels per day

boe = barrels of oil equivalent

6

Mega-project economics

The RAND Corporation Study– 52 mega-projects

– $0.5B and $10B (1984 dollars)

– Over budget average 90%

Shell Pearl GTL Facility, Qatar

[6] E.W. Merrow. Understanding the outcomes of megaprojects: a quantitative analysis of very large

civilian projects, The RAND Corporation, Santa Monica, CA, 1988.

7

Market timing RiskMetal Commodities Price Index (percent vs. year)

100%

2011

Oil Price ($/bbl vs. year)

1850

20111970

140

0

project

construction

Source: The Economist, Thomson Reuters, 2012

8

Economic sensitivity

Economics of GTL are most sensitive to the product price

Net Present Value

GTL Product Price, $/bbl

Feed Gas Price, $/MSCF

Capital Cost, k$/bpd

Design Capacity, kbpd

Catalyst Cost, $/bbl 10

90 80

7 3

14070

3

28658

0 Base

[7] R. Motal. Commercialization Considerations for Gas Conversion Technology Development. ARPA-E

natural gas conversion technologies workshop. Houston TX, January 13, 2012.

9

We Need Different Thinking!Why do reactors have to be made up of cylinders and spheres?

Why do we react coal as if it’s a homogenous fuel, when it’s not?

Why must we remove excess carbon from coal when it’s mixed up with other gases, and then pump it underground?

What if multiphase models could become powerful enough to help us manipulate coal to unprecedented levels?

Is bigger always better?

Engineered Modular Systems can convert coal in

new ways with Advanced Manufacturing,

sophisticated modeling and simulation, and

reaction and process intensification

10

Economies of scale

[9] PJA Tijm. Gas to liquids, Fischer-Tropsch, advanced energy technology, future's pathway. Feb 2010.

Pearl

Escravos

GTL Cost vs. Capacity[9]

m =-0.50

11

Experience Learning curves

-30%

[12] A Kelkar, R Roth, J Clark. Automobile Bodies: Can Aluminum Be an Economical Alternative to Steel? JOM 53(8):28-32.2001

-50%

Total Production Costs of Midsize Cars[12]

12

The Opportunity

Small-scale, modular syngas-to-liquid reactors

– Less upfront capital

– Quicker response to market changes

– Faster innovation through more players

– Lower complexity, better integration

– Beach head markets

– New learning curves

Minimizes

Financial

Risk

Not “bigger is better”, but “more is better”

13

outline

• The Opportunity

• White Space

• Path Forward

14

NeedsNeed clear definition of modular

Need to identify metrics for evaluating modular systems (e.g. $/kW, $/tpd, $/kg, GHSV)

Modular practices in industry already there. How do we harness them?

Need better process engineering solutionso - incremental so far

Innovations!!oNo major innovations in last 20 years

15

Engineering Across Length Scales

nm μm mm cm m

16

Engineering Across Capacity Scales

m cm

1500 MW 10MW

- https://upload.wikimedia.org/wikipedia/commons/d/da/Big_Bend_Power_Station.jpg

- http://www.mwm.net/mwm-chp-gas-engines-gensets-cogeneration/distributed-power-plants/modular-power-plant/

17

Modeling and Research

• Multi-phase simulation and advanced computing on NETL Joule supercomputer.

• Packaged, real-time fiber optic gas analysis for control and feedstock flexibility.

• Specialty alloy and refractory development.Joule comprises 24,192 cores with a peak

performance of 503 TFLOPS. Right:

Bubbling pattern in a fluid bed reactor –

used to optimize the reactor operation.

NETL gasifier refractory blocks ,

specialty alloy development, and

application to cardiac stent, DOD armor

Fiber-optic gas analyzer provides

multi-component, real-time

analysis

• Process design & optimization

of integrated systems

18

Integrated Systems Engineering

• Several individual systems have already been demonstrated at small scale (1MW).

• Integrated processes– Decrease complexity = efficiency, cost

– Reduce changes in T, P, {Ni}

– Integrate thermal/mass transport operations

– Engineer across length-time scales

19

White Space

• Accelerate new developments to reduce size and costs using such capabilities– Minimise changes in T, P, {Ni}

– Maximise production per E, V, m

Example: How do you significantly enhance transport

rates to give every molecule exactly the same processing

experience

20

outline

• The Opportunity

• White Space

• Path Forward

21

Define Modular..

• What should be the Metrics/ Standards for plug and play systems

• Flex Fuel Feedstocks (Coal/biomass/NG)

• Complete system (includes Balance of Plant) to convert feedstocks to value added products including power

SOFC’s are a great example of what works at a modular scale. Just need to bring down the costs!

Metric Target Units

Prototype capacity 1 L/day

Process intensity > 0.1 bpd/ft3

Cost of materials per capacity

< 100,000 $/bpd

Carbon efficiency > 50 %

Reliability > 1000 h

22

Areas of InterestApproach that enables the development of small-scale, modular systems for poly-generation (CHP and chemicals)

• Technology areas

– Multi-functional catalytic approaches

– Catalytic plate heat exchangers

– Rotating disk reactors

• Technology enablers

– Advanced manufacturing of micro-featured reactors

– Computational reactor modeling across length scales

► Catalytic membrane reactors

► Microfluidic reactors

► High-T heat exchangers

23

Ideas worth pursuing for coal..• Reduce coal particle sizes – < 10 micron coal to increase

reactivity of bituminous coal at lower temperatures• Use larger molecules available from coal rather than

turning it only into heat + CO + H2. This allows coal to do things that natural gas cannot.

• Alternative energy sources: micro-waves or solar• Greenhouses – can be watered using plant emissions, and

plant growth encouraged with CO2.• To make many chemicals, power and liquid fuels, either

carbon must be removed or hydrogen must be added to obtain the needed ratio– Traditionally, each H2 made results in one CO2 being made– Why not remove excess carbon before it becomes CO2 and turn

it into valuable products like carbon fiber or foam?

24

Build prototype systems now with

known technologies – Expensive but

becomes economically viable at the

nth of a kind stage

Use available low cost feedstocks

Go after highest value products

Achieve a revolution by manipulating

feedstocks at the particulate level.

Expand reach to bigger markets.

Supercomputersand expertise on coal

kinetics and reactor

behavior

Modeling gas-particulate

reactions is becoming

increasingly powerful

Existing R&D• Engage companies with Labs in active

R&D

• Find larger-scale targeted technologies

that fit this concept of modularity

• New NETL initiative: Radically

Engineered Modular Systems (REMS)

Ongoing Efforts:Survey of U.S. feedstock conversion needs

Survey of U.S. feedstocks and high value products from

past R&D

Systems Analysis geared up to focus on optimizing

systems that will focus on most compelling needs

Advanced Manufacturing• Reduced reactor and plant capital costs

• Decreased plant down time

• Increased product value

Modular Systems

How DOE plans to Achieve this Goal

25

Questions and Discussion