Utilizing Small-Scale GTL for Distributed Fuel Production

Transcription

1 Utilizing Small-Scale GTL for Distributed Fuel Production Elliot Hicks COO, DME in North America Energy Frontiers International Gas Flare Reduction & Monetization Forum Denver, June 15-17, 2015

2 Why Another Fuel?

3 Simple Fuel Simple Engine Simple Infrastructure

4 Simple Fuel

5 Simple Fuel Dimethyl ether (DME) Diesel-like Performance Efficiency and torque of diesel engine High cetane, compression-ignition fuel NO carbon-carbon = NO part. matter = NO DPF Propane-like Handling Stored in propane cylinders/tank, only change seal

6 How do you make it? Dimethyl ether (DME) Made from methane and CO 2 Multiple feedstocks, can be mixed Pipeline natural gas, stranded gas, biogas Wasted or stranded resources

7 Simple Engine

8 Simple Engine Diesel engine Desired efficiency and torque of a diesel engine DME compression ignites (cetane 55-60) Runs on 100% DME, not dual fuel system Simplified after-treatment systems NO part. matter generated when DME combusts = NO diesel particulate filter (DPF) Since no part. matter, easier to control NOx

9 Engine Development DME fuel pump at ENN service station (Shanghai) BioDME Project Partners include TOTAL, Preem, Delphi, ETC, Chemrec, & Haldor Topsoe

10 Engine Development

11 Engine Development: Achates Power Small-scale DME production from various methane sources. Cleaner burning Diesel-like performance Propane-like handling Eliminates PM & sulfur Reduces NOx Made from domestic feedstocks (biogas, natural gas) Developed the world s most efficient engine Dimethyl ether (DME) Opposed Piston Engine Cleanest, most-efficient engine Efficient improves fuel economy by: 32% vs. state-of-the-art diesel engines 86% vs. production gasoline engines Clean meets the most stringent engine emissions standards, Tier 3 / LEV III Cost effective Fits in existing vehicles NO soot 68% GHG reduction >50% NOx reduction Cleanest fuel + most efficient engine = perfect combination

12 Simple Infrastructure

13 Simple Infrastructure Storage & Dispensing Simple steel propane storage tanks Inexpensive propane dispensing Diesel-like fueling times Tanks & dispensers only require seal changes Safety Handles like propane Liquid ~ 73 psi (liquid inj. throughout engine) NO cryogenics or high compression

14 Simple Infrastructure

15 ASTM Status in North America Fuel-grade DME Produced in southern CA 1 st known commercial DME catalytic distillation column Specification Published 2014 ASTM D7901 DME-powered Trucks Demonstrations running in US RINS Eligible Renewable Fuel Standard (RFS) Pathway Approved

16 Production

17 Cost-effectively converts methane and CO 2 to DME

18 Process by the Numbers Daily Production: 10,000 DME gal. PER DAY: 5,300 diesel gallon eq. (28 tons) PER YEAR: 1.8 million diesel gallon eq., (9,700 tons) Service: regional haul trucks Natural Gas: 1.3 million standard cubic feet/day Biogas: 1.6 million standard cubic feet/day Methanol Version: 11,500 gallons per day

19 DME Production: Oberon Plant Pilot Plant Imperial Valley Brawley, CA 4,500 gallons per day 17,034 liters per day 12.5 tons per day 107 barrels per day

20 DME Production: Oberon Plant

21 Large Scale Plants 3 to 5 years to permit and build Substantial capital commitment Requires large number of trucks to be on the road 21

22 Small Scale Plants Rapid deployment 1 year Permitting Centralized, modular construction Capital expenditure in sync with market development 22

23 Small Scale Economics Capex Small variations have a large impact on IRR Minimize capex through: Centrally fabricated modules Volume production Co-location Speed and permitting

24 Small Scale Economics Opex Higher per gallon labor and utility costs Offset by lower costs for either: Feedstock Distribution Regional markets Renewable markets

25 Small Scale Limited Distribution Retail Diesel - $0.53/gallon Distribution & Marketing Large scale creates regional small scale opportunities

26 Rapid Technology Advancement Multiple new approaches with materials, modular design, and plasma Catalyst platform for a new low pressure reactor design Oberon pilot plant with Catalytic Distillation column

27 Utilizing Small-Scale GTL for Distributed Fuel Production Elliot Hicks COO, DME in North America Energy Frontiers International Gas Flare Reduction & Monetization Forum Denver, June 15-17, 2015