Engineers India Limited

Methanol Economy Scenario in India

by Mr. R K Gupta Dr. R N Maiti

Content Import Dependency Production, Consumption & Net Import

Methanol India/Global Methanol Performance

Methanol Economy in India

Methanol Economy Aspects Sourcing of Feed

Production Technology

Utilization

1 April 2016

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Import Dependency: Net Chemical Import

* Department of Chemical and Petrochemical

 Net Import of Organic Chemicals are increasing rapidly and it was 4.2 % (35,200 crores) of India’s Net Import on 2014-15. 2014-15 Crude Import Petroleum Product Import Petroleum Product Export Net Import of Crude and Petroleum Products Net Total Import of all Products

In Crores of Rs. 6,87,416 74,644 2,88,580 4,73,481 8,40,738

* Department of Commerce 1 April 2016

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Import Dependency: Consumption, Production of Major Organic Chemicals

* Department of Chemical and Petrochemical

1 April 2016

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Import Dependency: Net Import of Major Organic Chemicals



Production of major organic chemicals has shown a significant decline due to large volume imports (Indian Chemical Industry Five years plan). * Department of Chemical and Petrochemical

 Key segment of the chemical industry is (as in Indian Chemical Industry Five years plan): 1. Methanol (Net Import) 2. Formaldehyde (Net Export) 3. Acetic Acid (Net Import) 4. Phenol (Net Import) 5. Ethyl Acetate (Net Export) 6. Acetic Anhydride (Net Export) 1 April 2016

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Methanol Performance in India Year

Installed Capacity (MMTPA)

Production (MMTPA)

2014-15

0.474

0.210

2013-14

0.474

2012-13

0.474

Capacity Utilization(%)

Net Import

Consumption (MMTPA)

MMTPA

Crore

44.24

1.6

3078

1.8

0.307

64.76

1.2

3192

1.5

0.255

53.79

1.2

2600

1.4

Last year Consumption increased by ~20%

* Department of Chemical and Petrochemical

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Methanol: Production facility in India Major Methanol Plants  Gujarat Narmada Valley Fertilizers & Chemicals Limited. (GNFC)  Deepak Fertilizers, Taloja  RCF in Mumbai  NFL in Nangal  Assam Petrochemicals Feed for Methanol Production: 

Primarily produced in India from natural gas/naphtha



Major is imported

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Methanol: Global Production

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Methanol: Utilization

Other Use: Refrigerant, Pesticides, Paints, Tanning, Moulding Material

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Govt. Policy on Methanol from Domestic Coal

* ET 1 April 2016

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Methanol Economy: What Does it mean? Consumption Sectors

Coal Power Plant

Fossil Fuels

Petroleum

Transportation

Metallurgy

Natural Gas

Chemical/Petrochemical /Fertilizer

Bio Waste

Methanol

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Methanol Economy: Product Portfolio

* Methanol production and use

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Components of Methanol Economy

Feed Stock

• Availability of feed stock • Price of feed stock • Profit Margin

Production Technologies

• Specific Energy Consumption • Suitability to feed type • Initial investment required

End Use

• As a fuel blend • As a raw material for chemical production

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Feed Stock

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Feed Stock: How much methanol we need?

Projected Methanol required by 2018-19 in MMTPA(most conservative approach) for Fuel Blend for Chemicals 5% 2

10 %

15 %

1.15 2.3 3.5

Total Methanol Required 5% 3.15

10%

15%

4.3

5.5

• Based on data from PPAC & “Chemical and Petrochemical Statistics at a glance 2015” 1 April 2016

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Feed Stock: Material Balance - 5000MTPD Methanol ASU

N2

753143 Nm3/hr

O2 =150-170 TPH CO =24% Steam CO2=27% 300-325 TPH H2=37%

Gasification Unit

Sulfur

Utility Block

CH4=11% H2O=32% H2S=0.2-0.3

786367 Nm3/hr CO =15-20% CO2=27-34% H2=38-42% CH4=10-12% Inert+H2S= 0.2-0.35

567038 Nm3/hr CO =24-28% CO2 =18-22% H2 = 55-60% CH4 =14-16% Inert =0.3-0.5

SRU CO2

SNG

474585 Nm3/hr CO =20.28% CO2 =1.02% H2 = 62% CH4 =15% Inert =0.43 H2-CO2 CO+CO2 =3

CO

CO Shift Technology Coal = 12-15 MMTPA Ash = upto 35 %

Coal Washery Feed Coal = 9-12 MMTPA Ash= 40-45 % VM=20-25% FC=20-30% Sulfur ~ 0.3 – 0.5 %

H2S Removal

CO2 Removal

SHIFTED AGR UN-SHIFTED AGR

H2S Removal

Power Block

CO Cold H2 Box CO2

CO2 rich stream

CO2 Removal

Purge gas

Methanol Unit 5000 TPD 16

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Feed Stock: How Much Coal We Need? Yield of Methanol from Coal Gasification: Basis : 5000TPD (1.8 MMTPA) of Methanol Production

Coal Required: Total 9-12 MMTPA

Projected Methanol required by 2018-19 in MMTPA(most conservative approach) for Fuel Blend

Total Methanol Required

5%

5% 10%

for Chemicals

2

1.15

10% 15% 2.3

3.5 3.15

4.3

15% 5.5

Coal Required to meet the entire Methanol demand by only Coal Gasification, in MMTPA 5%

10%

15%

16-21

22-29

28-37

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Feed Stock: How Much Coal we Have? Coal resources & Coal reserves in India Inferred: Proven: Indicated:



34 BT 113 BT 137 BT

Estimated resources down to 1200 meter: 310 BT  up to 600 m 90% are of commercial interest  62 % of reserve inferior quality (CV 4000 kcal/kg)  85% non-coking

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Production Technologies

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Production Technology: Production Routes Coal Gasification

LSHS Syngas

NG/Naphtha

Methanol Production

Reforming

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Syngas Production: NG Reforming

Reforming

Feed

Temp. oC

Press. bar

Cat.

Note

NG/Naphtha

900

30

Ni based

Requires HT/Lt Shift

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Syngas Production : ATR Feed

ATR

NG/Naphtha/ Heavy Oil

Temp. oC

Press. bar

1000

100

Cat.

Pt/Rh

Note

H2:CO can be varied

Linde (Tandem Reforming) 1 April 2016

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Syngas Production : Coal Gasification Exothermic: • Partial Combustion of Carbon C + 0.5O2 ↔ CO; ΔH0 298 = -110.5 kJ/mol

• Complete Combustion of Carbon C + O2 ↔ CO2, ΔH0 298 = -393.5 kJ/mol

• Water Gas Shift Reaction CO + H2O ↔ CO2 + H2, ΔH0 298 = -283.0 kJ/mol

Coal O2/Air Steam

• Methanation C + 2H2 ↔ CH4 ΔH0 298 = -74.5 kJ/mol CO + 3H2 ↔ CH4 + H2O, ΔH0 298 = -205.8 kJ/mol

Endothermic: • Boudard Reaction C + CO2 ↔ 2CO, ΔH0 298 = +172.5 kJ/mol

• Steam Reforming Reaction

Gasifier Gas Composition (Vol %)

 Key Issues with Gasifiers

H2 25 - 30 CO 30 - 60 CO2 5 - 15 H2O 2 - 30 CH4 0–5 H2S 0.2 - 1 COS 0 - 0.1 N2 0.5 - 4 Ar 0.2 - 1 NH3 + HCN 0 -0.3

        

Kinetics Operating P, Temp Coal/gas contact Syn gas compositions Sizing of the gasifier Effects of feed variations Material of construction Engineering Aspects Scale-up

C + H2O ↔ CO + H2, ΔH0 298 = +131.3 kJ/mol

• Liberation of Bound Hydrogen

Ash/Slag/PM

2H ↔ H2 , ΔH0 298 = +431.0 kJ/mol

Kinetics: Kinetic/equilibrium controlled, Exothermic/Endothermic reactions 1 April 2016

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Syngas Production : Coal Gasification Moving Bed Gasifier: Fluidized Bed Gasifier:

Entrained Flow Bed:

 Indian coals are characterized by  High ash content (~ 40%),  Low calorific value,  Low sulfur,  High reactivity and  High ash fusion temperature.

 Fluidized bed gasifiers are more suitable to Indian coals.  Entrained bed gasification results in loss in efficiency due to inherent high ash content of coal.

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Coal Gasification: Available Technology

Entrained Bed

Fluidized Bed

Moving/Fixed Bed

GE

SASOL / Lurgi

UDHE

UDHE (erstwhile HTW)

Shell

U-gas (SES)

MHI

(Transport) KBR,

BGL,SEDIN

CB&I (erstwhile Philips 66)

Siemens OMB MCSG TPRI HTL

Tsinghua EAGLE etc

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Coal Gasification: Pilot Plant in EIL R&D

CTL Technology Development Efforts

by EIL

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CTL– Technology Development in EIL R&D Objective:  Development of gasifier technology  HPTGA for coal kinetics  Fluidized bed gasifier (150 kg/h)  Mathematical model of gasifier/design data generation  Syngas clean-up pilot plant  FT technology  Micro/bench scale reactors (Catalyst/kinetics)  Slurry bubble column pilot plant(reactor hydrodynamics)  Reactor model for FT reactor reactor design  Preparation of process design package and costing for demo plant

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CTL– Technology Development in EIL R&D Capacity: 150 kg/h Operating pressure: 30 bar

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CTL– Technology Development in EIL R&D Capacity: 300 Nm3/h Operating pressure: 30 bar

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Methanol Production: Processes

Two Stage Methanol Production

Production Processes

Single Stage (oxidative conversion) Methanol Production

Catalytic hydrogenation of CO2

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Syngas Production: Process Economics  For NG based methanol plants Syngas generation unit (ATR based) cost is ~50% of overall plant cost  For coal based plants, gasification plant is 70-80% of overall plant cost

 Price of methanol from coal is dependent on Technology for Coal Gasification along with coal cost  Import Price as on 2015-16 (Dec.) Rs.18,000-19000/Tonne

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Methanol Production: Economics Why production cost High in India?  Imported NG (even NG transportation cost may be higher than Methanol)  Design of plants with capacities upto 3.5 MMTPA is offered by Methanol Tech Licensors(our consumption is 1.5 MMTPA)  Our plants are integrated with Fertilizer plants so capacity is limited  High energy cost/consumption  China has developed domestic coal based methanol plant

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End Use

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End Use of Methanol

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End Use: Methanol as MS blend in India  Methanol can be produced from Varity of feed stocks like NG, Coal, Biomass  Will reduce dependency on crude  Indigenous technology for Coal need to be developed

Advantages as gasoline blend:  Octane No 100 (high compression ratio( 9 to 11) possible-> high efficiency)  Latent heat is 3.7 times of Petrol. Can be used in engine cooling  Boiling point 64.7oC  Can be used in IC engine after slight modification  Reduced Nox emission

 No C – C bond. No soot/particulate matter  Can be blended with gasoline as an oxygenated additive  Methanol as fuel for DMFC, which is most potential to replace conventional batteries (Methanol has higher no. of H atom than same vol. liq. Hydrogen)

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End Use: Methanol as MS blend in India  Requires policy / specification, Norms for India  Requirement of indigenous technology for Methanol synthesis

Disadvantages:  Reacts with few plastic/polymers (corrosion inhibitors are added)  Corrode some metals, including aluminium, zinc and magnesium  Toxic (Who drinks gasoline? MTBE is carcinogenic)  Energy density ½ of gasoline

 Lacks light component. Cold start problem(add 15 % gasoline)

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End Use: Methanol as MS blend-World wide

Global Methanol Production (2009) 1 April 2016

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End Use: Methanol as MS blend- China

 China’s monthly methanol output increasing year on year  8% Gasoline was displaced by Methanol (as per news in 2009)

 Natural gas methanol is shrinking but coal-to-methanol is strong  Firmer coal-to-methanol margins and emerging demand from olefins drive up domestic production

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End Use: Methanol to DME-DME as Alternative Fuel

DME as LPG Substitute

Outstanding Diesel Alternative

–Burns like Natural Gas

– Clean-burning alternative to diesel Cetane number 55-60 (Gas

Wobbe Index 52 (Natural gas 54) Boiling point -25°C (Propane -42) Vapour pressure 0.53 MPa (Propane 0.91)

–Handles like LPG Completely miscible in LPG Existing LPG infrastructure - Below 20 % DME. For neat DME, minor changes in sealing materials and burner tip. Same efficiency and emission as LPG from cooking stove to industrial boiler.

Methane Propane

DME

oil 40-55) No smoke, no sulphur NOx : ~ 90% reduction CO2 : ~ 95% reduction

– Cost – Relatively moderate (with very high conversion efficiency)

– Energy density Lower than diesel (must be pressurized to be used in modified diesel engines) Significant interest in this diesel substitute in Japan and other parts of Asia.

Today,150,000 t/y as aerosol propellant, plus 300,000 t/y for emerging fuel market 1 April 2016

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Why Methanol Economy?  Easily transportable Liquid hydrocarbon that is feed for many other Chemical Production  Potential fuel blend (MeOH & DME) that will reduce India’s import dependency  Possible to produced directly from Indian Coal  Technologies are mature/under development  China is already in this route Compare with Hydrogen Economy:  Methanol as fuel for DMFC, which is most potential to replace conventional batteries and hydrogen fuel cell(Methanol has higher no. of H atom than same vol. liq. Hydrogen)  Easy to store and transport compared to liquid hydrogen Compare with Ethanol Economy:  Production of Ethanol based on agricultural (corn, wheat etc.) may impact food security  Land availability is an issue for agriculture based ethanol production

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Conclusion Methanol Economy in India  Feed stock availability / allocation of coal for methanol production  Related technologies (indigenous ) will be move forward for Methanol economy in india e.g  Coal/Biomass Gasification Technology  Syngas Cleaning Technology  Low Pressure Methanol Synthesis Technology  Requires Dedicated Norms for Methanol Blending  Need to take care of Environmental aspect  Need to chose between Methanol and Ethanol

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THANK YOU