CO2 Sequestration Options for the Shenhua DCL Plant: by 8pem45v


									         CO2 Sequestration Options for the Shenhua DCL Plant:
                        A Pre-Feasibility Study

                                           April 1, 2007

                        Jerald J. Fletcher and Qingyun Sun
                             West Virginia University
        The China Shenhua Coal Liquefaction Co. (CSCLC) is working with West Virginia
University to analyze the economic and environmental impacts of the Shenhua direct coal-to-
liquids (CTL) plant in Inner Mongolia. This research is one activity under Annex II of the US-
China Clean Energy Protocol between the National Development and Reform Commission
(NDRC) of China and the U.S. Department of Energy (USDOE). A second Annex II activity
culminated in the China-US Coal Gasification and Liquefaction Technology Workshop hosted
by the CSCLC in Beijing in June, 2006. This study represents the third supported task - a study
of sequestration alternatives for the Shenhua Direct Coal Liquefaction (DCL) plant in the
Shendong coal mining area of Inner Mongolia.
        The DCL plant is expected to reach commercial production levels during 2008.
Operations will result in highly concentrated CO2 production that is ideally suited for
sequestration. Carbon management options are becoming increasingly important as the level of
atmospheric CO2 increases and CO2 production continues to increase. The development of a
carbon sequestration project related to the Shenhua plant will contribute to China’s CO2 emission
control program as well as to the feasibility of continued growth of the coal gasification and
liquefaction industry.
        The primary objective of this pre-feasibility study is to investigate and evaluate the
technical and economic feasibility of carbon sequestration alternatives for the Shenhua Direct
Coal Liquefaction (DCL) Plant in the Shendong coal mining area of Inner Mongolia. The larger
objective is to identify and develop feasible, practical carbon management alternatives that can
be implemented. Specific objects of this initial effort are to:
   1) Develop a dialog between Chinese and American experts on carbon management,
   2) Analyze the CO2 sequestration alternatives and related environmental problems for the
      DCL plant, and
   3) Develop a plan for implementing a carbon sequestration option for the DCL plant.
       Initial project activities will focus on developing a full understanding of the Shenhua
carbon management objectives, fostering dialog between appropriate Chinese and American
experts, and developing the background data necessary to understand the CO2sequestration

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options available in the Shendong mining area. A preliminary meeting between the current US
team augmented with appropriate experts in carbon capture, CO2 handling and transport, and
carbon sequestration/storage will guide data development and the selection of a broader array of
experts for an in-depth workshop to develop feasible carbon management alternatives for the
DCL plant. This workshop will draw on US experience and research in carbon sequestration to
help focus efforts in China. The output of the workshop is expected to be a plan to develop and
implement such a carbon management project.
       Specific activities include:
   1) Organize a US team to meet with appropriate Chinese partners to identify expert
      assistance the US can provide that is applicable to a carbon sequestration plan for the
      direct coal liquefaction plant. This team will consist of L. Miller (USDOE/HQ), Q. Sun
      and J. Fletcher (WVU), and individuals with specific expertise in carbon capture, CO2
      handling and transport, and carbon sequestration/storage. The primary objectives of the
      initial meeting will be to initiate dialog between appropriate American and Chinese
      experts, identify data needs, and plan for an in-depth workshop to support the
      development of a carbon sequestration project in the Shendong mining area of Inner
      Mongolia. This meeting will take place as the earliest possible mutually agreeable date.
   2) Use the results of the initial meeting to outline the carbon sequestration alternatives
      relevant to the Shendong area based on Chinese expertise and knowledge supplemented
      with the findings and implications of current carbon sequestration demonstration projects
      in the US.
   3) Bring a team of American experts to China to meet with Chinese experts as part of a
      workshop to develop a better understanding of alternative technologies and data
      requirements and to develop an implementation plan to take the carbon sequestration
      project related to the DCL plant to the next phase of analysis and planning. This
      workshop will be scheduled at the earliest feasible date following the initial planning
   4) Analyze the potential economic and environmental impacts of a carbon sequestration
      addition to the Shenhua DCL project.
       The CSCLC research team will most likely be expected to:
   1) Develop qualitative and quantitative assessment of the expected CO2 from the Shenhua
      DCL plant.
   2) Summarize current relevant knowledge of the geology of the Shendong area and
      prioritize alternatives for further investigation to identify potential underground CO2
      storage locations.
       The deliverable for the first year will include:
   1) An initial planning meeting between the Shenhau and WVU research teams augmented
      by additional expertise in carbon management to be held as soon as possible in an
      appropriate location in China.
   2) A report that summarizes the findings of the initial planning meeting.

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   3) Coordination of a joint workshop of Chinese and American experts to study carbon
      sequestration alternatives for the Shendong mining area (expected meeting summer/fall
      2007 to be held in an appropriate location in China.)
   4) A report that summarizes the findings of the joint workshop including an initial
      assessment of the technical and geologic alternatives and economic consequences of
      alternative approaches to carbon management based on available data and the outcome of
      the workshop.
   5) A proposal that outlines the next practical step towards management and implementation
      of CO2 sequestration alternatives to be conducted as part of future Annex II activities.
Expected Outcomes
        It is anticipated that this project will provide a viable initial assessment of the potential
for successful implementation of a carbon sequestration alternative for the CO2 produced during
production of liquid fuels from the Shenhua DCL plant. It is also expected that this initial effort
will result in plans for further analysis, assessment, and development of carbon management
projects in China.
       Successfully meeting the objectives outlined will help to demonstrate the potential for
successful CO2sequestration related to coal liquefaction and gasification production. This will
enhance the economic and environmental feasibility of coal as a source of liquid fuels in a
carbon constrained environment for all countries with significant coal resources.

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