Direct Coal Liquefaction: Lessons Learned Ripudaman Malhotra SRI International Menlo Park, CA 94025

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1 Direct Coal Liquefaction: Lessons Learned Ripudaman Malhotra SRI International Menlo Park, CA Presented at GCEP Advanced Coal Workshop, BYU, Provo, UT; Mar 16, 2005

2 Outline Why Liquefaction? Changing needs Overview of direct coal liquefaction process Types of processes Process evolution Current status Chemical Lessons Reaction pathways Coal structure: what is needed to liquefy coal Conclusions Opportunities for improvement

3 Why Coal Liquefaction? Alternate source for liquid fuels: national energy security Germany, Japan, South Africa Production of a clean and reactive solid fuel: SRC Liquids are a secondary product that may improve economics Oil embargos in the 1970 s reinforced need for an alternate source of transportation fuel Low oil prices in the next two decades: declining interest Now? Energy security, efficiency, climate

4 Liquefaction Increasing H/C ratio is a must; Two options Reject carbon Most pyrolysis processes Add hydrogen Dry pyrolysis with hydrogen not effective Coal liquefaction; use a solvent to effect hydrogenation Products often solid at room temperature Liquefaction defined by solubility

5 Coal Liquefaction Approaches Pyrolysis or mild gasification Direct coal liquefaction Indirect coal liquefaction Co-processing Bioliquefaction Substantial overlap in the chemistry of mild gasification, direct coal liquefaction, and co-processing

6 Direct Coal Liquefaction Processes: 1970 to 1995 Single-Stage Process: SRC-II, H-Coal, EDS Two-Stage Process: NTSL, ITSL, RITSL, DITSL, CTSL, CMSL Many variations depending on Use of catalyst in the two stages (therm-cat, cat-cat) Distillation between stages Separation of solids between two stages or after second stage Recycle of ashy bottom Operation in H-balance

7 Single-Stage Processes Contact coal with a solvent (2:1) with hydrogen or with hydrogenated solvent at ca. 450 C Recycle light oil fraction Yield about 3 bbl oil/ton of coal with bituminous coals Not as effective for subbituminous coals Product difficult to refine (high aromaticity, N) High yield of light hydrocarbons; efficiency of hydrogen utilization is low Demonstrated the feasibility at ca. 200 tons/day

8 Lessons Learned Dissolution itself is fast! Coal liquefaction is better in heavier, more aromatic solvents Longer residence time is detrimental Process economics require maximizing liquids Higher temperatures lead to more gas poorer hydrogen efficiency

9 Two-Stage Liquefaction at Wilsonville ITSL Initial Run Distillate Distillate Coal Slurry Thermal Liquefaction Solvent Recovery Antisolvent Deasher L-C Fining HT Solvent Recovery Ash/Coke Short contact thermal liquefaction Inter-stage separation Catalytic hydrotreating of de-ashed liquid Recycle of heavy hydrotreated solvent Hydrogen balance from coke gasification

10 Two-Stage Liquefaction at Wilsonville ITSL Final Run Distillate Distillate Coal Slurry Catalytic Liquefaction L-C Fining HT Solvent Recovery Antisolvent Deasher Ash/Coke Low severity catalytic liquefaction No Inter-stage separation Moderate severity hydrotreating and hydrocracking Match rate of solvent hydrogenation with that of coal decomposition Ashy bottoms recycle Make hydrogen from steam reforming of methane

11 Liquefaction Product Yields, Illinois #6 100 (4.8) (5.4) (5.4) (6.6) (x.x) H-consumption C--C3 Gases Liquids Soluble reject Char 20 0 EDS H-Coal ITSL-1983 ITSL-1989 Process - Schindler, 1989

12 Liquefaction Product Yields, Wyodak 100 (7.0) (x.x) H-consumption 80 (4.4) (4.3) (6.2) C--C3 Gases Liquids Soluble reject Char 20 0 EDS H-Coal ITSL-1983 ITSL-1989 Process - Schindler, 1989

13 Liquids Yield Illinois #6 Wyodak EDS H-Coal ITSL-1983 ITSL-1989 Process - Schindler, 1989

14 Process Economics Required Selling Price 1999 $/Barrel Equiv. Crude O&M Coal Capital Related H-Coal ITSL CMSL Major Lesson: Liquefaction is extremely capital intensive - Burke, Winschel, Gray, 2001

15 Summary Coal liquefaction is technically feasible Process demonstrated at large scale (~200 tpd) for a variety of coals US: H-Coal, EDS Canada: Canmet Co-processing Japan: Victoria Brown Coal Liquefaction, NEDOL UK, Germany China: Shenhua project (2007) Economics not competitive, but not prohibitive either (~$20B for 50,000 bpd)

16 Traditional View of Bond Cleavage During Liquefaction WEAK BOND HOMOLYSIS CH CH 2 + CH CH Solvent + CH 3 CH 3 Solvent merely stabilizes thermally generated radicals; not involved in inducing bond cleavage.

17 Inadequacy of Donor Solvent Liquefaction yields do not correlate with weakness of C-H bond in the donor solvent Dihydroanthracene with a much weaker C-H bond than dihydropyrene or dihydrophenanthrene consistently yields lower conversion to THF-solubles Discrepancy even more glaring under H-shuttling conditions Bonds too strong to cleave by simple homolysis are nonetheless broken under liquefaction conditions

18 Liquefaction of a Bibenzyl Polymer FI-Mass Spectrum Hydrogenolysis of strong C aryl -C alkyl bond comparable to thermolysis of weak C alkyl -C alkyl bond 97 kcal/mol 54 kcal/mol

19 Solvent engenders bond scission Emerging View of Bond Cleavage SOLVENT MEDIATED HYDROGENOLYSIS OF STRONG BONDS Solvent CH CH 2 2 H + H CH 2 Solvent engenders bond scission

20 Implications of Solvent-Mediated Hydrogenolysis Draw attention to H-accepting and H-transfer properties of solvent components Rationalize otherwise inexplicable behavior Increased liquids yields from partial replacement of donor hydroaromatic with nondonor aromatic Efficacy of pyrene and related PAH Role of C-supported catalysts Design processes that maximize H-utilization efficiency

21 Increased Coal Content Aids Conversion of Coal and of Non-Distillables HRI STIRRED-REACTOR COPROCESSING CONVERSION (%) % Coal in Feed Coal 975 F + Aromatics in coal mobilize the H in the resid for conversion -Duddy, Panvelker, 1991

22 Coal Conversion with Dispersed Catalysts Recycled IOM is more effective than freshly activated catalyst Yield (%maf coal) Fresh Catalyst Recycled IOMs THF-Solubles Cyclohexane-Solubles Conversion of Illinois No. 6, Burning Star coal in hydrotreated V-178 distillate Programmed heating at 8 C/min to 425 C under H 2 pressure - Bockrath, 1992

23 Potential Role of H-Transfer in Catalytic Systems COAL H H H CATALYST H COAL

24 Coal Structure Application of polymer theory Characterization of cluster size and mean molecular weight between clusters Rank dependent trends 13 C-NMR: Relatively small clusters of 8 to 18 carbons only Distribution of oxygen, sulfur, and nitrogen functionalities Role of non-covalent linkages

25 Emerging Opportunities Thermal efficiency of coal to oil by DCL: ~65% About 7 times worse than crude oil refining (95%) Facile dissolution of bituminous coals in certain solvents (Iino) Possible application for hyper clean coal Augmented Pyrolysis (Miura) Mild gasification of methanol soaked coals to co-produce liquids and high reactivity chars Direct carbon fuel cell: coal, biomass, petcoke

26 Conclusions Coal liquefaction: technically feasible, but the process to synthetic crude is not economic Converting coal to transportation fuel for IC engines does not reduce CO 2 emissions If needed for energy security, milder processes with high coal to oil yields must be demonstrated at commercially relevant scales

27 Acknowledgments M. Gorbaty, ExxonMobil F. Burke, D. Winschel, Consol D. Gray, Mitretek D. F. McMillen

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