Renewable feedstocks for the oil and gas industry by advanced thermochemical conversion

Transcription

1 VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD Renewable feedstocks for the oil and gas industry by advanced thermochemical conversion Forum in cooperation with Oil & Gas Dialogue of IMEMO RAN Cleantech and Green Solutions for Oil and Gas Industry Moscow, Esa Kurkela VTT Technical Research Centre of Finland Ltd

2 VTT Technical Research Centre of Finland Ltd A leading R&D research organisation in Nordic countries We provide expert services for our domestic and international customers and partners, both in private and public sectors TOP 2 VTT is second most active patenting organisation in Finland (2014) 36% of Finnish innovations include VTT expertise We use 4 million hours of brainpower a year to develop new technological solutions Turnover 277 M (VTT Group 2014) Personnel 2,600 (VTT Group ) Unique research and testing infrastructure Wide national and international cooperation network

3 Public decision makers, financiers and R&D performers Parliament of Finland Research and Innovation Council Ministry of Education and Culture Council of state Ministry of Employment and the Economy Other ministries and research institutes Academy of Finland Universities Tekes the Finnish Funding Agency for Innovation Sitra, the Finnish Innovation Fund Finnvera Finpro Finnish Industry Investment Ltd ELY centres (Centre for Economic Development, Transport and the Environment) 01/03/2016 3

4 Characteristics of the energy sector in Finland Versatile structure of energy production with high efficiency (30 % of electricity by CHP) Indigenous energy sources cover only 1/3 of the energy demand High share of RES 25 % Energy intensive industry covers 50 % of the energy demand CO 2 tax on fuels introduced already in 1990 s EU-Targets to reduce CO 2 emissions -40% by

5 FOREST ENERGY ONE BACKBONE OF BIOECONOMY = Heat, power, fuels Use of forest residues: 8 Mm3 (2012) at > 500 sites 5

6 Energy use of wood in Finland now and vision for 2030 Energy production Additional potential 20 TWh corresponds to 0.9 million toe/year of traffic biofuels (~25 % of present consumption in Finland) By-product: 4 TWh heat (district heat/industry) Large technology export potential Sustainability of wood production and harvesting is essential 6

7 High-value products, low carbon energy and material recycling via thermochemical conversion FAST PYROLYSIS Thermal or catalytic fast Pyrolysis Fuel oil Product upgrading BIOFUELS BASIC CHEMICALS AROMATICS GASIFICATION Gasification Material & energy recovery Gas cleaning to syngas RECYCLING Synthesis NATURAL FERTILIZERS POWER HEAT & COOLING Fuel gas 7

8 Integrating Production of Fuels and Chemicals from Biomass and Residues to Existing Industries to Improve Competitiveness Several forest industry sites with local CHP integration Transport of intermediate products Large-scale refineries or chemical industries Forest residues and agricultural residues Industrial and municipal wastes Integration to food, forest, chemical or metal industries Pyrolysis oil Methanol Synthetic hydrocarbons Synthetic methane Co-refining Drop-in transportation fuels Olefins for renewable packaging materials Basic chemicals, fertilisers Aromatics 8

9 Huge world markets of biofuels for transport sector Possible products via Gasification & Synthesis technologies Source: 9

10 Energy consumption and export - Russia Source: E.Mearns, In: Energy, Environment and Policy, March

11 Combined Heat and Electricity from biomass, peat and other solid feedstocks from small to very large scale From: From: Tauno Kuitunen, Nakkila Group, From: Volter Ltd, 11

12 Can biofuels have an important role in Russia? Million tonnes oil equivalent per annum Oil export - Russia Gas export - Russia Own use of Gas - Russia Global biofuel market Global biofuel market Global biofuel market Economic biofuel potential - Russia 20 % of theoretical potential - Russia Oil and gas production statistics of Russia from several published sources Global potential of biofuels for transport sector from IEA Biofuel Roadmap of 2012 Russian Biomass potential from Raif Vasilov of National Research Centre Kurchatov Institute, presented in Bioenergy Workshop, October 22-23, 2013, Moscow Economic bioenergy potential in Russia 69 Mtoe/a - 60 % converted to biofuels Total theoretical potential of biomass for energy use in Russia is as huge as 1500 Mtoe/a 12

13 Can biofuels have an important role in Russia? Value of products in billion $ per annum Oil export - Russia Gas export - Russia Own use of Gas - Russia Global biofuel market Global biofuel market Global biofuel market Economic biofuel potential - Russia 20 % of theoretical potential - Russia Price of crude oil assumed to be 60 $/barrel (presently < 40 $/bbl, in 2013 > 100 $/bbl) Price of gas on European market assumed to be 300 $/1000 m3 (was clearly higher in 2013, probably lower now) Value of biofuel in transport sector assumed to be 1000 $/tonne (ca. two times higher than fossil transport fuels) 13

14 Most interesting alternatives to be further studied and considered as possible future options Replacement of natural gas and oil in energy production by local biomass and waste resources - this could be integrated also to production of pellets or pyrolysis oil for export (mature technology) => more petroleum products and gas to export market => local benefits in rural areas Production of synthetic natural gas (SNG) from wood and agro residues for renewable energy markets of Europe Introduction of renewable components into the oil refining industry Final refining of FT-wax integrated to refinery Methanol-to-gasoline integrated to refinery Pyrolysis oil to FCC unit of a refinery Primary biomass conversion units to be integrated to local energy consumption improving local economies More oil to be refined to high-quality final products Required hydrogen and/or electricity from refinery residues Possibility to bring renewables into product portfolio 14

15 VTT s project types COMMERCIAL ACTIVITIES Impact: Building competitiveness for VTT s customers through world-class research and innovation services JOINT PROJECTS Impact: More efficient technology transfer Foundation for new innovations and political decision-making SELF-FINANCED RESEARCH Impact: Developing VTT s own competitiveness and acquiring knowledge and expertise to meet future customer needs

16 TECHNOLOGY FOR BUSINESS

17 Additional slides 01/03/

18 VTT s focus areas by business areas Industrial Internet Bioeconomy Digital health KNOWLEDGE INTENSIVE PRODUCTS AND SERVICES SOLUTIONS FOR NATURAL RESOURCES AND ENVIRONMENT Cleantech Hyperconnected society Circular economy SMART INDUSTRY AND ENERGY SYSTEMS Smart cities Efficient energy Machinery and automation 01/03/

19 Biomass and waste gasification for boilers and kilns WASTE-TO-ENERGY PLANTS WITH MATERIAL RECOVERY o HIGH ELECTRIC EFFICIENCY o RECOVERY OF VALUABLE METALS JOUTSENO LIME KILN 2012 LIME-KILN GASIFIERS LAHTI 60 MW REPLACEMENT OF FOSSIL FUELS IN BOILERS AND KILNS o WOOD, AGROBIOMASS o MW FUEL BIOMASS/WASTE GASIFIERS FOR POWER LAHTI II, 160 MW WASTE-TO-ENERGY CBF/BFB GASIFICATION R&D AND PILOTING R&D on o HOT GAS FILTRATION o WASTE AND STRAW GASIFICATION o o o R&D NEEDS FILTER ASH UTILISATION RECOVERY OF METALS IMPROVED GAS CLEANING 19

20 01/03/2016 Biomass gasification for fuels and chemicals 20 DFB, GUSSING, AUSTRIA GTI PILOT, USA BIO-FUELS AND CHEMICALS o o o o o DIESEL, MeOH, DME, SNG, H 2, GASOLINE OLEFINS, OTHER CHEMICALS FOREST & AGRO-INDUSTRY INTEGRATION INTEGRATION TO HEAT AND POWER BIO-CCS EASY TO ADD, IF NEEDED PEAT AMMONIA PLANT OULU, FINLAND 1985 NSE BIOFUELS DEMO - VARKAUS, FINLAND GASIFICATION R&D AND PILOTING USA, GERMANY, SWEDEN SYNGAS R&D FOR BIOFUELS o GASIFICATION PROCESS DEVELOPMENT o CATALYTIC REFROMING o FINAL GAS CLEANING o TESTING OF SYNTHESIS CATALYSTS R&D NEEDS o IMPROVED LARGE-SCALE GASIFICATION PROCESS o NEW PROCESSES FOR SMALLER SCALE o SIMPLER, CHEAPER GAS CLEANING o NEW CONCEPTS FOR INTEGRATED PRODUCTION OF FUELS, POWER AND HEAT

21 Syngas: From multiple Feeds to wide variety of products GAS FISCHER- TROPSCH AROMATICS GASOLINE DIESEL JET FUEL WAXES LUBRICANTS OIL COAL REFORMING SYNTHESIS GAS CO + H 2 METHANOL AMMONIA MTO MTG OLEFINS PLASTICS GASOLINE LPG GASIFICATION UREA FERTILIZERS BIOMASS H 2 & SNG POWER & HEAT WASTE FUEL GAS TO KILNS 21

22 Updated Techno- Economic Assessment Detailed evaluation of 20 individual plant configurations MeOH, DME, FTL & MTG Plant configurations technically proven at pre-commercial scale Impact of further R&D to the overall economics estimated Large scale: 300 MWth of biomass (~1500 mtpd, dry) Nth plant economics Available for download: 22

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24 Levelised production cost estimates* 300 MW 17 /MWh, 0.12 ann. factor Electricity 50 /MWh, DH 30 /MWh@5500 h/a Mature technology No investment support No CO 2 credits No tax assumptions Before tax Ref.margin: 13.4$/bbl 1 = 1.33$ (2010) 24 *Liquid transportation fuels via large-scale fluidised-bed gasification of lignocellulosic biomass, Hannula, Ilkka; & Kurkela, Esa VTT, Espoo. 114 p. + app. 3 p. VTT Technology: 91

25 Power-to-Fuels Integration to transportation in GER2013 Electricity Electrolyser η = 54 % (LHV) H2 CO2 Synthesis η = 83 % (LHV) Fuel for transp. 110 /MWh Based on following assumptions: German electricity 2013 pricing Alkaline electrolysers having 54 % net efficiency (LHV) and 750 /kw specific investment. Fuel synthesis having 83 % cold gas efficiency and 420 /kw specific investment. Revenue from byproduct oxygen used to cover CO2 feedstock cost. Ilkka Hannula, Co-production of synthetic fuels and district heat from biomass residues, carbon dioxide and electricity: Performance and cost analysis, Biomass and Bioenergy, Volume 74, March 2015, Pages 26-46, ISSN , 25

26 Methane, Diesel Gasoline Estimated production costs of transport fuels produced from forest wood residues /MWh /GJ /toe /t b-ekv /L b-ekv Biomethane by gasification Biomethanol Bio-diesel/gasoline (FT/MTG) Biohydrogen Power-to-gas methane Power-to-methanol Power to FT-diesel Electrolysis hydrogen Hybridimethane Hybridmethanol Hybrid-FT-diesel Assumptions: plant capacity 200 MW (~ toe/a), biomass cost 18 /MWh, cost of electricity 50 /MWh, CO 2 price 40 /t. b-ekv = gasoline-ekvivalent Ilkka Hannula, Co-production of synthetic fuels and district heat from biomass residues, carbon dioxide and electricity: Performance and cost analysis, Biomass and Bioenergy, Volume 74, March 2015, Pages 26-46, ISSN , 26