Coal Gasification News » Projects

Eastman Cancels The Beaumont TXE Project

admin — Thu, 30 Jul 2009 19:45:35 +0000

Eastman Chemical Company announced that it has decided to discontinue its Beaumont, Texas, industrial gasification project.

According to the Eastman press release this decision was made due to a number of factors, including high capital costs, the current and foreseen reduced spread between natural gas and oil and petroleum coke prices, and continued uncertainty regarding U.S. energy and environmental public policy. As a result of this decision, the company will recognize a pre-tax non-cash asset impairment charge estimated to be between $150 million-$180 million in the fourth quarter 2009.

The DOE had announced it would begin an Environmental Impact Study (EIS). This was widely considered to be an indication that the DOE had selected Eastman’s TXE gasification project for an offer for a loan guarantee.

FUTUREGEN Gets NEPA Nod and Funding From DOE

admin — Fri, 24 Jul 2009 02:11:43 +0000

The DOE issued a statement that it will support the FutureGen project with funding. The FutureGen site is in Mattoon, IL. The DOE issued a Record of Decision that clears the way for the FutureGen project to continue with site specific work to further the project development.

A National Environmental Policy Act (NEPA) study of the environmental impact of the project had to be conducted. The DOE has issued the NEPA for the FutureGen project and the project is approved to proceed with construction. The project is estimated to have a total cost of $2.4 billion. The DOE has committed $1 billion in Recovery Act funds for the FutureGen project and the FutureGen Alliance has generated $400 to $600 million. The FutureGen Alliance must seek additional funding to fill the gap between the estimated cost of completion and the funds currently committed.

During the next ten months, the project will conduct further planning and engineering, update its cost estimate and prepare to begin the detailed engineering and construction phase. At the end of this ten month period, a decision will be made to either abandon the project or continue the project. The project will be funded in phases.

DOE Selects Hydrogen Power Energy For Funding

admin — Fri, 17 Jul 2009 02:46:30 +0000

U.S. Department of Energy selected Hydrogen Energy International LLC for $308 million in funding from the American Recovery and Reinvestment Act. The project is a joint venture between BP and Rio Tinto.

This is part of the third round of the Clean Coal Power Initiative (CCPI). The initiative was made possible by President Bush when he signed the 2005 Energy Act and is designed to increase investment in low-emission coal technology by demonstrating advanced coal-based, power generation technologies. The goal of CCPI is to accelerate the readiness of advanced coal technologies for commercial deployment, ensuring that the United States has clean, reliable, and affordable electricity and power.

Hydrogen Energy International is a BP Alternative Energy and Rio Tinto joint venture. The companies will design, construct, and operate an integrated gasification combined cycle power plant that will take blends of coal and petroleum coke, combined with non-potable water, and convert them into hydrogen and CO2. The CO2 will be separated from the hydrogen using the methanol-based Rectisol process. The hydrogen gas will be used to fuel a power station, and the CO2 will be transported by pipeline to nearby oil reservoirs where it will be injected for storage and used for enhanced oil recovery. The project will be located in Kern County, California and will capture more than 2,000,000 tons per year of CO2.

Related article:

Rio Tinto Sets Sights on Monetizing Coal With Gasification

Sherritt Slows Dodds-Roundhill Gasification Project

admin — Tue, 07 Jul 2009 01:53:46 +0000

Sherritt International has been planning a coal gasification plant in Alberta. The proposed Project, the Dodds-Roundhill Coal Gasification Project, will include a surface coal mine and a coal gasification facility located approximately 80 km southeast of Edmonton, Alberta.

The project will gasify coal and produce syngas. The original plant configuration was based on producing hydrogen from the syngas. However, Sherritt has completed additional studies in 2009 that demonstrate that other end products can be produced economically. The recently issued April 2009 Newsletter for the Dodds-Roundhill Coal Gasification Project states that the project may be configured to produce higher value added products such as ultra-clean diesel, methanol, gasoline or substitute natural gas (SNG).

The studies indicate that the products may be produced economically; however, the project will be delayed due to the economic recession and retracted condition of the current financial markets.

Cash Creek Project Receives Final Air Permit

admin — Wed, 24 Jun 2009 22:36:57 +0000

The Kentucky Division of Air Quality issued the Final Air Permit for the Cash Creek project. This is an important permitting step that is necessary for the project to continue to the construction phase.

The Cash Creek project will convert Kentucky coal to substitute natural gas (SNG). SNG has the same chemical and physical characteristics as natural gas and can be transported in natural gas pipelines.

This Cash Creek project will strengthen the local economy while protecting the natural resources. The plant will provide skilled, high paying jobs.

BP To Purchase SNG From Secure Energy’s Gasification Plant

admin — Thu, 11 Jun 2009 02:50:14 +0000

BP Canada Energy Marketing Company (BP) and Secure Energy, Incorporated announced that they have entered into a long term natural gas sales agreement whereby BP will purchase up to 67 million cubic feet of natural gas per day from the Secure Energy Decatur Plant once it has been constructed and becomes operational. Secure Energy will have the option to separately sell natural gas to industrial customers in the Decatur, Illinois area for a portion of its production and BP has agreed to purchase any natural gas not sold locally.

Secure Energy also has announced that the State of Illinois has issued the air permit for the construction of the Secure Energy Decatur Gasification Plant. The Secure Energy Decatur Gasification plant will utilize gasification to create a substitute natural gas (SNG), a pipeline quality natural gas.

“The issuance of the air permit is a major milestone in the development of the Decatur project. The Decatur plant will serve as Secure Energy’s reference plant that we intend to replicate in similar sites throughout the nation,” said Lars Scott, President and Co-Founder of Secure Energy. “Secure Energy’s facility in Decatur will demonstrate how Illinois’ abundant coal reserves can be utilized in an environmentally friendly manner to reduce our demand for foreign sources of energy.”

The Secure Energy Decatur Gasification Plant is a coal to pipeline quality synthetic natural gas (SNG) conversion facility planned for an existing industrial site in Decatur, Illinois. The plant will convert up to 1.4 million tons per year of high-sulfur Illinois coal into pipeline quality natural gas. It is projected that the plant will have an average initial gas production of 45,000 mmBtu/day of natural gas with the capability of producing up to 67,000 mmBtu/day. The plant is projected to require an investment of over $250 million and will require 40 full time employees to operate the plant. In addition to jobs created at the plant, the project will create a number of construction, mining and trucking jobs in the Decatur area.

White Energy and Peabody To Build Coal Upgrading Plant

admin — Wed, 20 May 2009 02:38:39 +0000

White Energy Company Ltd. and Peabody Energy announced a joint venture to build a coal upgrading plant in Montana. The Peabody and White Energy coal upgrading facility will be built at an unnamed Peabody site in Montana.

Under the terms of the agreement, Peabody will have the right to purchase 15% of White Energy and has the first right to participate in future White Energy coal upgrading projects.

White Energy has a proprietary process for creating coal briquettes from high moisture lignite coal. The process increases the Btu value by 35%. The press release doesn’t describe the upgrading process, but it’s likely that the moisture content is reduced through a heating process and the lignite is formed into briquettes. An increased Btu value increases the value of the coal. The resulting coal briquettes are higher quality, more efficient and cleaner and can be interchanged with higher rank thermal coal in many applications.

Peabody and White Energy have begun engineering design and permitting activities for the first plant. The first plant is expected to take 24 months to construct. The plant is expected to produce more than 1 million tons of upgraded coal per year initially and the plant capacity will eventually be added to more than 20 million tons annually.

Rentech Announces Rialto, CA Biomass Liquid Fuels Plant

admin — Sun, 17 May 2009 04:55:13 +0000

Rentech, Inc. announced that it will construct a liquid fuels project in Rialto, California. The Rentech Rialto Project is planned to produce 600 bpd of RenDiesel, a ultra-pure synthetic diesel fuel and 35 Mw of electricity for export. This is enough electricity for approximately 10,000 homes.

The feedstock for the project is green, woody biomass. Green, woody biomass consists of grass clippings and trimmings that are currently dumped in landfills. Rentech is negotiating agreements with trash haulers to receive the waste biomass material. The biomass material is a renewable resource and is not a food source.

This is a biomass to liquids project. Rentech will gasify green, woody biomass at the Rialto Renewable Energy Center and has selected Silvagas technology for the gasification process. The syngas will be converted using the Rentech Process to clean, ultra-pure diesel and naptha liquid products. Since the feedstock is biomass, the project will be a near zero carbon producer project.

The Rialto project will assist with meeting the requirements of the State of California Low Carbon Fuel Standard Executive Order 1-S-07. This order signed by Governor Swarzenegger is designed to reduce the reliance on carbon intensive fuel.

Shaw Group Selected By Sasol For Basic Engineering

admin — Sat, 09 May 2009 02:07:59 +0000

According to a news release by Shaw Group, Sasol selected Shaw Group to provide basic engineering services for two Fischer-Tropsch projects. Shaw Group will provide basic engineering for Sasol’s Wax Expansion Project in Sasolburg, South Africa. Shaw Group will also provide basic engineering for Sasol Technologies Fischer-Tropsch licensing group.

Shaw Group is providing basic engineering services for the Fischer-Tropsch unit of the Wax Expansion Project for the Sasolburg Plant. The Fischer-Tropsch Licensing unit is performing a feasibility study for the Sasol and Shenhua-Ningxia Coal Company partnership. The feasibility study examines the potential for an 80,000 barrels-per-day coal-to-liquids plant in the Ningxia Hui Autonomous Region of China.

Shaw Group has designed more than 90% of all Fischer-Tropsch plants in the world.

DOE Announces Environmental Study For Texas Gasification Project

admin — Tue, 28 Apr 2009 03:34:48 +0000

The Department of Energy (DOE) announced that it will prepare an environmental impact statement (EIS) to assess the environmental impact of the TXE Industrial Gasification Facility that will be constructed in Beaumont, Texas. The facility is owned by TX Energy LLC, a subsidiary of Eastman Chemical Company.

The DOE is preparing the EIS for the TXE Industrial Gasification Facility in accordance with the National Environmental Policy Act (NEPA). The EIS will follow the requirements of the NEPA and also include a flood plain analysis and wetland involvement analysis. This is being completed as part of the process of evaluating TX Energy’s application to the DOE for a loan guarantee through the Loan Guarantee Program for coal and petcoke gasification facilities.

The TXE Industrial Gasification Facility is proposed to be constructed on 417 acres of land in Beaumont, Texas. The facility will use gasification technology to convert petcoke feedstock to syngas. The sulfur will be removed from the syngas as molten sulfur. The CO2 will be removed and transported by pipeline for use in enhanced oil recovery which qualifies as sequestration. Some of the syngas will be converted to pure hydrogen and sold and distributed by pipeline. The balance of the syngas and hydrogen will delivered by pipeline for further processing as methanol and ammonia. Eastman will sell the methanol and ammonia.