Rick Birnbaum Cansolv Technologies Inc. ABSTRACT

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SO 2 and CO 2 Emission Control from Refinery COGEN Units with Cansolv s Capture & Recycling Systems By Rick Birnbaum Cansolv Technologies Inc. ABSTRACT As profitable outlets for high sulfur resids decline, additional options will need to be explored to maximize the value of smaller volumes of resid. Co-generation projects that generate power and steam for the refinery may be economically interesting. Resid contains elevated amounts of sulfur as compared to sweet liquid fuels and its carbon impact is higher than for equivalent natural gas combustion systems. High sulfur resid fuels generate large quantities of SO 2 when combusted, that require removal by flue gas SO 2 scrubbing systems. Certain jurisdictions may require that carbon capture systems be applied to ensure that the carbon impact of the co-generation scheme is no worse than an equivalent project that uses natural gas as a fuel. A CANSOLV SO 2 Scrubbing System is uniquely configured to control SO 2 emissions in the refinery, because it generates a pure stream of SO 2 that can be fed to the Sulfur Recovery Unit (SRU), to make elemental sulfur. The CANSOLV CO 2 Capture System can be effectively used in conjunction with the CANSOLV SO 2 Scrubbing System, because much of the energy consumed in the SO 2 Scrubbing System can be captured and cycled to the CO 2 Capture System, to reduce overall energy costs associated with the two capture systems. CANSOLV Technologies Inc. 400 Boul de Maisonneuve, Suite 200, Montréal Québec H3A 1L4 Tél. (514) 382-4411 Fax : (514) 382-5363 E-mail : www.cansolv.com e-mail: richard.birnbaum@shell.com

Introduction The refining industry faces greater supply side pressures to process more difficult crudes. Environmental initiatives are concurrently imposing additional limitations on the sulfur content of refinery product streams. Investment in bottom of the barrel hydrocracking or coking schemes can economically upgrade the value of large volumes of resid, but options are limited when smaller volumes of high sulfur materials must be accommodated. Co-generation projects may be economically justified, to consume modest quantities of high sulfur refinery product streams. These projects will require SO 2 scrubbing systems to prevent the sulfur in the fuel mix from escaping to atmosphere as SO 2. Additional regulations requiring the limitation of carbon emissions from these new co-gen projects, may also mandate that CO 2 capture systems be added. A co-generation project may be of interest to the refinery for three reasons. First, co-generation projects can be designed to accommodate a wide range of fuels, from cycle oils to asphalt and coke. Secondly, on-site generation of power and steam reduces the refiner s reliance on external, purchased balancing fuels. Finally, the versatile nature of the co-gen system to accept variable fuel qualities increases the refinery planner s ability to fill the refinery crude slate with a wider range of crudes and hence maximize his margins. CANSOLV SO 2 Scrubbing Regenerable vs Non Regenerable Systems SO 2 Scrubbing can be accomplished with regenerable technologies that use an alkaline agent that reversibly absorbs and releases SO 2, or by non regenerable technologies that simply absorb the SO 2 until reagent is spent. Regenerable technologies have a higher capital cost and impose greater demands on plant utilities than non-regenerable systems. Non regenerable technologies have reduced capital costs as compared to regenerable systems, but become more expensive to operate as the quantity of SO 2 to be captured increases. When fuels are highly contaminated with sulfur, regenerable systems are often justified economically over their non regenerable counterparts. Lime and limestone scrubbers are commonly used, non-regenerable systems. They require significant investment to prepare reagent and to dewater and dispose of gypsum byproduct. SO 2 Scrubbers that use NaOH (caustic soda) are also commonly used. A caustic scrubber requires little reagent preparation or byproduct management investment, since NaOH is sourced as a bulk liquid or easily dissolved solid. Its waste product, dilute aqueous sodium sulfate, is discharged to plant waste water treating systems. Caustic systems have lower capital costs than other non-regenerable systems, because the reagent is purchased as a dry solid or concentrated liquid and wastes are easily absorbed in existing wastewater management systems. NaOH pricing can be volatile, however, because it is produced as a co-product in the manufacture of chlorine. Its price inversely tracks demand patterns for chlorine based chemical products such as vinyl chloride monomer, which is used to manufacture polyvinyl chloride plastics. Page 2

Sodium carbonate and sodium bicarbonate are less expensive alternatives to caustic and can often be substituted for caustic, but their cost is higher than for limestone or lime and they require greater investment in reagent preparation and management systems than for caustic scrubbing systems. The regenerable CANSOLV SO 2 Scrubbing system, uses an alkaline agent, CANSOLV DS, to capture SO 2 and release it in pure form from a regenerator that removes the SO 2 from the solvent. In the refinery, a pure stream of SO 2 from a regenerable system can often help de-bottleneck existing refinery Sulfur Recovery Units (SRU), that are often under pressure to convert greater quantities of H 2 S to sulfur. Regenerable systems have a higher capital cost than the non-regenerable systems since investment is required to regenerate the solvent and convert SO 2 to a marketable byproduct. Capital costs are offset by reduced operating costs, however in comparison to the non regenerable systems. Case Study A high level comparison was made between the CANSOLV and non regenerable system costs for a boiler being fired 35 t/hr (5,300 BPD) of vacuum resid, containing 4.6 wt% sulfur and 2.6 wt% sulfur. Capital Cost Op Cost 4.6% S Op Cost 2.6% S Cansolv Caustic Limestone Lime Spray Dry Figure 1 Comparative Capital and Operating Costs Cansolv vs Non Renerable Scrubbing Systems Page 3

Figure 1 shows high level capital and operating cost comparisons for four SO 2 FGD technologies. The chart illustrates that the capital cost for the CANSOLV system is higher than for the non regenerable systems, but that its operating cost is lower. A second case comparing the costs of scrubbing 2.6% sulfur fuel are shown alongside the base case. The regenerable cost remains relatively unchanged, but the operating costs of the non-regenerable systems, dominated by reagent cost, drops proportionally to the amount of SO 2 in the flue gas. Figure 2 shows the key elements of the CANSOLV SO 2 Scrubbing System. - Flue gas is conditioned in an open spray Prescrubber. An optional flue gas cooler adjusts the flue gas temperature to appropriate conditions for the CANSOLV SO 2 Absorber. - The SO 2 Absorber may be integral or separate from the Prescrubber. Gas is treated to remove SO 2 to the required threshold for environmental compliance. - Flue gas leaving the SO 2 Scrubber may be post treated in a caustic scrubber to comply with very low SO 2 emission requirements or to precondition the gas for a future downstream CO 2 Capture system. - Lean solvent is supplied from the SO 2 Regenerator - Rich solvent flows to the SO 2 Regenerator - Pure, water wet SO 2 flows to battery limits and on to byproduct processing systems. - An Amine Purification Unit removes sulfate absorbed from the flue gas as SO 3 or generated via disproportionation in the CANSOLV System. - TIC costs can range from $450/kW to $700/kW depending on industry and location - Operating costs can range from $300/t SO 2 removed to $500/t depending on utility and capital cost charge assumptions. Page 4

Figure 2 CANSOLV SO 2 Scrubbing System CANSOLV CO 2 Capture System The decision to burn liquid fuels requires an evaluation of the cost impact of increased CO 2 emissions on the facility. Carbon taxes are now in place in many jurisdictions that charge a penalty for each ton of carbon emitted daily. Until government levies increase, CO 2 capture projects will be deferred in favor of payment of the relevant carbon tax, since CO 2 Carbon Capture and Sequestration (CCS) projects are currently estimated to cost considerably more than the penalties assessed for emission of CO 2. CO 2 Capture technologies are being developed and implemented in a handful of demonstration projects around the world and these projects will demonstrate the feasibility and cost of capturing CO 2 on a more accurate basis as they come on stream. Over the long run, capture technology costs are expected to drop as technology is demonstrated and improved. CANSOLV Technologies has commercialized a CO 2 capture process that is currently in construction at two demonstration sites. Figure 3 shows the process flow diagram for these projects. The first demonstration project is planned for startup in 2011, while the second is planned for completion in 2015. The CANSOLV CO 2 Capture System is considered to be an add on technology to the CANSOLV SO 2 Scrubbing System technology described earlier. Page 5

Furthermore, the flow sheet of the SO 2 system can be adjusted to integrate with the CO 2 system and reduce energy consumption of the CO 2 system significantly. Comparing this figure to Figure 2 CANSOLV SO 2 Scrubbing System, it is seen that: - Overhead heat from the SO 2 Scrubbing System SO 2 Regenerator is directed to the CO 2 regenerator through an SO 2 regenerator overhead mechanical vapor recompression (MVR) compressor. - The CANSOLV CO 2 Scrubbing System is added - The CO 2 Scrubbing System incorporates a lean solvent flash steam recycle MVR compressor to recover additional heat from lean CANSOLV CO 2 Absorbent The integration scheme between the SO 2 Regenerator and the CO 2 Regenerator allow for the reduction of steam consumption by the CO 2 capture system. In effect, some of the steam fed to the CANSOLV SO 2 Scrubber can be used twice, while extra energy conservation measures are taken to ensure a net reduction in steam consumption by the CO 2 Capture system. Figure 3 Process Flow Diagram of the CANSOLV SO 2 and CO 2 Capture System For the hypothetical case discussed above, the Prescrubber and SO 2 Scrubbing systems represent approximately 30% of the total cost of the SO 2 and CO 2 system. Approximately 900,000 t/year of CO 2 are captured as compared to 28,000 t/year of SO 2 in the 4.6% Sulfur in fuel case. The capital and operating costs for the CO 2 system once again are driven by site specific considerations and must be evaluated on their own merit. Page 6

Approach to a CO 2 Capture Project Fewer than 10 projects worldwide are currently in design and construction for CO 2 Carbon Capture and Sequestration (CCS) projects capturing CO 2 from boilers exceeding 150 MWe capacity. Because few full scale CCS projects have been delivered to the power or refining industry to date, there is no firm data base in existence to support the capital cost projections of specific CO 2 capture projects. CCS technology vendors must therefore apply large contingency allocations to their budget estimates, to offset technological uncertainties. This can lead to excessive capital cost expectations and increase the risk of premature cancellation. Until more projects are implemented and operated at large scale, detailed initial studies are required that are designed to improve project definition, reduce uncertainty and improve the quality of capital cost estimates. At the current stage of CCS technology development, a four stage approach should be considered for a given project. 1) Perform high level CCS technology studies to develop a short list of technology vendors. 2) Select and purchase detailed Front End Engineering and Design (FEED) packages from multiple bidders. Demand firm turnkey prices for each capture system. 3) Select a single vendor from this group. 4) Proceed immediately to the EPC stage with the successful bidder and use his FEED package to form the basis for detailed design and final appropriation of funds. Although the cost of acquiring multiple FEED packages early in the project increases costs during the development phase of the project, it delivered a number of tangible benefits: - Optimization studies for each technology vendor can be performed prior to execution. - A fixed price is obtained for the CCS systems that is based on a thoroughly developed design. - Lower contingency allocations result from the fixed price basis and reduced capital risk results. - The FEED stage of the project flows directly to the EPC stages of the project, reducing the overall project schedule. Page 7

Conclusions CANSOLV SO 2 and CO 2 Scrubbing Systems can be used to allow a refiner to manage his bottom of the barrel stream more effectively. The CANSOLV SO 2 Scrubbing System is most effective at high concentrations of sulfur in fuel and it can be effectively applied to treat flue gas to necessary specifications required for both atmospheric requirements and for a future, downstream CO 2 Capture system. Energy consumed by the SO 2 scrubbing System can be directed to the CO 2 System, using a Mechanical Vapor Recompression system, cutting the operating cost of the CO 2 system significantly. R.W. Birnbaum February 4, 2011 Page 8