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Zeus’s Global Gasification Database, which profiles more than 310 projects worldwide, provides investors, equipment manufacturers, technology providers, developers, and other industry personnel real-time information and in-depth analysis of gasification projects on a project-by-project basis. This database furnishes users with detailed information to assist in technology selection and project deployment strategies and alerts them to breaking market opportunities.

Fluctuating oil prices, natural gas supply concerns, and the global push to mitigate greenhouse gas emissions are all driving the gasification industry forward at an unprecedented pace. Currently, governments and businesses alike are investing billions in research and development for advanced gasification technologies.

Gasification technology could provide solutions to higher transportation fuel costs, both on the ground and in the air. Chemical producers predict that synthesis gas will continue to be a cheaper feedstock than natural gas, and many countries plan to utilize advanced gasification processes to solve hazardous and municipal solid waste problems, as well as landfill overflows.

In countries like China, India, and the United States, each of which holds extensive coal reserves, investment decisions are being finalized to pursue large-scale gasification projects to help satisfy expanding baseload power demand and ease inflation of transportation fuel prices.

Alternative Fuels Pave Way for Energy Security

In its International Energy Outlook for 2008, the Energy Information Administration (EIA) forecasts that global energy consumption will grow by 50% between 2005 and 2030. It predicts that coal-derived liquid products will comprise almost 30% of the 9.7 MMbbl/d of capacity provided by non-petroleum alternative energies. Total global fuel production by 2020 is expected to reach 93 MMbbl/d, with 5 MMbbl/d coming from biofuels, GTL, and CTL.

Unconventional resources like oilsands, extra-heavy oil, biofuels, coal-to-liquids (CTL), and gas-to-liquids (GTL) are becoming increasingly necessary. World production of unconventional resources totaled only 2.5 million barrels per day (MMbbl/d) in 2005, yet is expected to increase to at least 9.7 MMbbl/d in 2030, accounting for 9% of total world liquids supply on an oil-equivalent basis.

Source: Energy Information Administration.

Cutting-Edge Gasification Technologies Revitalizing Energy Industry

This database covers projects that span the horizon of competitors. Aside from the major gasification technology licensors, like GE and Shell, that dominated the market space for the past decade, smaller players, like Synthesis Energy Systems and Alter NRG, are gaining prominence. Technologies that gasify a wide range of feedstocks, or have the ability to co-feed coal and petroleum coke, or coal and biomass feedstock blends, are also heavily being sought after. This is true especially in the face of the current situation with regard to carbon dioxide (CO₂), where it has been proven that blending biomass feedstocks with coal reduces CO2 emissions.

Opportunities are opening up to companies developing cutting-edge, modularly-designed gasifiers that can be used in a number of applications, from reducing overhead costs associated with combined heating and power, to drastically reducing capital costs for fabrication and installation of industrial-scale gasifiers.

These opportunities are occurring globally, but three geographic markets deserve special attention, markets in which gasification is becoming a real focus, and no longer merely a side story: China, India, and the United States.

Gasification Gaining Steam Worldwide:

• China
  
  China could produce some 50 million metric tons per year (mty) of synthetic fuel derived from coal by 2020, and plans are underway to invest nearly $60 billion in CTL projects to achieve that goal. However, China ordered the suspension of all but two CTL projects as the country is attempting to ease tight coal supplies, the Ningxia Development and Reform Commission (NDRC) reported on August 28, 2008.
  
  The NDRC will evaluate China’s coal-reserve position before resuming its ambitious coal-gasification and CTL fuel initiative. But the initiative also includes increased coal-to-chemicals (CTC) production, as well as a major boost in the production of coal-derived dimethyl ether (DME). China plans to increase the use of DME production, not only to continue fueling cooking and heating needs, but for use as a an ultra-clean transportation fuel.
  
  The two CTL projects that will advance in the short-term, subsequent to the suspension order by the NDRC, are Sasol’s and Shenhua’s Ningxia Hui CTL project and Shenhua’s SH-1 DCL plant in Inner Mongolia. Sasol and Shenhua Energy Group said that they would be moving forward with a feasibility study for the 80,000-b/d CTL project in Ningxia Hui Autonomous Region.
  
  Partly because the Asian markets are paying, on average, 50% higher prices for LNG imports than the rest of the world, China is also planning several coal-based, substitute natural gas (SNG) projects. SNG production would increase the country’s domestic gas supply, which is greatly needed to generate power as well as chemical feedstock. In fact, China Datang Corp. subsidiaries are planning two commercial-scale SNG projects that would require an investment of some $5 billion.
  

• India
  
  India is encouraging the deployment of coal gasification technologies to increase domestic fuel supplies and reduce rising transportation fuel prices as well as dependence on oil imports. The Indian government also plans to utilize its coal reserves for power generation as well as chemical production. The government is expected to continue allocating coal blocks that would provide feedstock supplies to multiple planned, commercial-scale gasification projects.
  
  The country’s coal ministry recently issued a solicitation for developers interested in developing coal blocks in the Talcher coal fields of the Orissa Province, located in eastern India, to develop an 80,000-b/d CTL project, which could necessitate an investment of nearly $8 billion. Currently, an estimated 22 companies are still in the running for the block allocation, with hopes of passing the government’s criteria, which entail securing a proven CTL technology provider and having a minimum net financial worth of $1 billion.
  
  Indian companies are teaming up with gasification and coal liquefaction technology licensors in hopes of capitalizing on the coal block offering. Consortiums shortlisted for the Talcher CTL project include: (1) a joint venture between Sasol and Tata Group; (2) a joint venture between Jindal Steel and Power, GMR Infrastructure, and potentially, Lurgi AG, and PetroSA; and (3) Reliance Industries Ltd. (RIL) and Reliance Infrastructure Ltd., who are tied-in with KBR and Headwaters, and who are seeking to employ the services of FT fuel specialists Rentech and Syntroleum.
  
  Tata Group is planning to develop an $8 billion CTL project with technology partner Sasol. The integrated CTL facility would produce 3 MMbbl/d of synthetic fuels and 1,500 MW of power. The Indian government approved plans for the project, and the companies now await a decision by the Ministry of Coal on Tata’s application requesting 30 million mty in coal reserves to feed the project. RIL is also interested in developing an 80,000-b/d CTL project, and is currently evaluating KBR’s Transport Gasifier, or TRIG technology, as well as Headwaters’ DCL technology. RIL and Coal India Ltd. are close to finalizing a deal to launch a joint venture to develop the project.
  
  Indian companies are also eyeing gasification opportunities to increase the country’s chemical production. GAIL’s board of directors approved a capital expenditure of $700 million to develop a CTC plant with a production capacity of 7.76 MMcm/d of synthesis gas through a joint venture with Rashtriya Chemicals and Fertilizers.
  
  
• United States
  
  The United States holds the world’s largest coal reserves, with an estimated total exceeding 493 billion short tons, according to the U.S. Department of Energy. These reserves are vital to increasing domestic production of transportation fuels as well as meeting national baseload power demand.
  
  Presently, the U.S. military is pushing increased synthetic fuel production to mitigate transportation fuel cost overruns and dependence on crude imports. The U.S. Air Force (USAF) established a goal to ultimately supplement 50% of its fuel needs with synthetic diesel and jet fuels. The USAF plans to develop multiple CTL projects adjacent to operational military bases and has positioned itself as the consumer of first resort for the offtake of FT fuels produced by independent developers.
  
  A recent U.S. Senate subcommittee bill appropriated $10 million toward a CTL feasibility study for a 40,000-b/d project that would be built at Eielson Air Force Base (AFB) near Fairbanks, Alaska. The fuel produced would supply the aviation fleet at Eielson AFB and the Stryker Brigade at nearby Fort Wainwright with surplus fuel sold into the local aviation and transportation markets. The estimated cost of constructing the CTL facility at Eielson AFB is between $3.5 billion and $6 billion, and it is the first of multiple CTL projects planned by the U.S. Department of Defense.
  
  CTL project developers continue their attempts to capitalize on the gasoline-based fuel economy in the U.S., with plans of first producing coal-derived methanol from the FT process, and then converting the methanol into gasoline. Notable U.S. CTL projects such as DKRW’s Medicine Bow CTL and Synthesis Energy Systems’ (SES) Marshall County CTL projects have both opted to license ExxonMobil’s methanol-to-gasoline (MTG) technology, which will aid in increased domestic production.
  
  Other U.S. developers are reducing their CO2 footprint by co-feeding biomass and coal feedstocks, as well as implementing carbon-capture and sequestration (CCS) technologies. Baard Energy’s Ohio River Clean Fuels coal/biomass-to-liquids (CBTL) project plans to gasify a 70% to 30% ratio of coal and biomass to produce 53,000 b/d of FT diesel and jet fuels. The $5 billion CBTL project, which is in FEED, is expected to be operational by 2012.
  
  Integrated-gasification, combined-cycle (IGCC) technology has seen increased interest in the U.S. since the U.S. Department of Energy proposed a joint government and industry initiative to develop the FutureGen IGCC project. Plans for FutureGen have changed however and now entail aiding developers in costs associated with implementing CCS technology to mitigate GHGs.
  
  Even though the original FutureGen plans fell through, IGCC continues to thrive. Utilities like Duke Energy and Southern are advancing IGCC projects, with some utilities looking to advanced gasification technology licensors, such as Alter NRG, to retrofit existing pulverized coal stations. Alter plans to retrofit five conventional pulverized coal plants with their proprietary plasma gasifiers.
  
  Of course, coal is not the only plentiful feedstock in the U.S. Eastman Chemical is planning to develop multiple petcoke-based chemical projects in the Gulf Coast region. Eastman’s petcoke-to-chemicals project in Beaumont, Texas, is in FEED and expects to kick-off construction by early 2009. The $1.6 billion project will produce hydrogen, methanol, and ammonia utilizing GE’s gasification technology. The construction phase is expected to create 1,500 jobs, with 250 jobs being created when the plant comes online in 2011.
  
  A petcoke-based IGCC project is moving forward through the California Energy Commission’s regulatory process. BP’s and Rio Tinto’s joint venture company, Hydrogen Energy International (HEI), is planning to develop the 400-MW IGCC project near the unincorporated community of Tupman, California.
  
  The project is moving forward because of its impressive GHG emissions reduction plan, which will capture more than 2 million tpy of CO2 that would be eventually sequestered in deep underground geological formations. Occidental Petroleum hopes to be the offtaker of the CO2 for EOR purposes in the Elk Hills oil field. HEI also signed a definitive agreement to license Eastman Chemical’s proprietary Reduced Sulfur Start-Up Technology, which HEI will implement at the Hydrogen Energy California IGCC project.
  
  U.S. emissions-reduction mandates imposed on the coal industry guarantee that conventional coal-fired power plants that don’t implement CCS, and other GHG-limiting technologies, will no longer receive regulatory approval, which is forcing the sector to opt for IGGC.
  
  Like most countries, public and political opinions vary between states and regions in the U.S., and where the developer plans to develop a project will play a huge factor. Coal states are encouraging development in a lagging economy. Coal lobbies and local politicians are informing the public about the great potential for coal gasification technology, coupled with CCS, to dramatically reduce GHG emission levels.
  
  Thus, in the United States, and particularly in the coal-producing states, the future looks bright for the industry.
  

Key Findings of Zeus Gasification Research

From the two-year long effort to develop the Zeus Global Gasification database, the most important conclusion reached is that the various road blocks that have hindered gasification technology from realizing its potential are diminishing. More than ever, the industry is sustaining growth on the back of positive economics. Advanced gasification technology has demonstrated its benefits of lowering operating costs and reducing GHG emissions while utilizing a range of feedstocks.

Advanced technologies are on track to transform the energy industry by offering a clean use of the world’s plentiful coal reserves. CO2 capture and carbon credits are being used more effectively to reduce GHG emissions.

Substantial amounts of capital are being invested by governments, international banks, and developers to tip the scale on gasification technologies. The governments of the United States, China, and India are motivated to make billion-dollar investments to wean their economies from foreign oil. Governments are working together with industry to develop demonstration projects to improve gasification reliability.

This Global Gasification Database is an effective tool to keep users up to speed and on top of the rapidly developing industry.

Deliverables

1. The Zeus Global Gasification Database, which currently profiles 310 gasification projects worldwide.
   
   
2. Real-time, breaking news alerts and project profile updates.

Sample Profiles from the Gasification Database ^BETA

SH-1 Project Profile

Shenhua completed construction of the first 24,000-b/d direct coal liquefaction (DCL) train at the SH-1 plant, which will use 7,000 tpd of sub-bituminous coal. SH-1 is currently in the final commissioning and optimization phase and is expected to be in full operation by the end of 2008. The $1.5 billion DCL train will primarily produce 1.08 million tpy of diesel, as well as other FT products, from 3.45 million tpy of coal.

Shenhua will invest $34.8 billion to increase liquefaction capacity to 5 million tpy before 2009 and 30 million tpy before 2020. China’s first CTL plant is 80 miles south of Baotou, Inner Mongolia province. Shenhua is planning three more DCL plants in the Baotou area and is awaiting NDRC permission to move forward with those projects.

China’s first concern about liquefaction involved the economic feasibility of producing coal-derived fuel from coal, but that notion was dispelled by high oil prices. DCL is not only cheaper at $62,500 b/d of capacity but produces less CO2. “That is what it would cost to build it in China,” said Qingyun Sun, Ph.D., associate director, US-China Energy Center, West Virginia University, and former engineer for Shenhua during the construction phase of the SH-1 plant. “A comparable CTL plant in the US would cost in the range of $110,000 to $120,000 b/d of capacity.”

SES and Consol Energy are developing a CTL project near Benwood, Marshall County, West Virginia, which will use ExxonMobil’s MTG technology to convert 720,000 tpy of coal-derived methanol into 100 million gallons per year of 87-octane gasoline. Aker Solutions is conducting the FEED package on the $800 million project that is expected to see commercial operations as early as 2011. Consol and SES formed Northern Appalachia Fuel LLC to manage the development and operation of the CTL project.

SES will employ its U-Gas technology, which is a single-stage, fluidized-bed gasifier, at the mine-mouth facility to gasify coal from Consol’s nearby Shoemaker mine. The plant will include an Ohio River terminal facility where products will be stored in tanks for off-loading to barges for ultimate delivery. Pending permitting, plant construction could start as early as 2009, and would take about two years to complete.