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Wednesday, 29 February 12
PUTTING COAL GASIFICATION TO WORK


Clifford Reese of the SSOE Group looks at practical solutions for district energy leaders who wish to implement clean coal technology.

Coal fuels more than half the power plants in the United States today due to abundance and relatively low cost. Yet, public demand is increasing to convert power-generation technology to clean coal. Coal gasification may be the answer.

U.S. energy leaders see the implementation of coal gasification riddled with challenges, including developing a favourable intake agreement, a profitable off-take agreement, and obtaining financing. Yet, other countries have been building coal gasification plants for years.

One key approach is to implement smaller and simpler projects, like China does with less than $1 billion in capital per project. Another key approach is to partner with an experienced coal gasification engineering consultant who can be instrumental with helping energy leaders make confident, cost-effective decisions with project scope and implementation.

They can assist with intake and off-take agreements by applying front-end engineering methods and proven process technologies to make accurate technology assessments. They can guide feasibility analysis and outline engineering alternatives for emissions generated from the coal-gasification process.

Through accurate answers derived from key business case questions, engineering consultants can reliably determine how best to convert emissions, such as whether carbon monoxide and hydrogen should be converted to synthetic natural gas, a liquid fuel, or chemical feedstocks; and whether carbon dioxide should be converted into urea for fertilizer, liquefied and injected into a depleted oil field for enhanced oil recovery, or some other form of carbon utilisation.

Accurate project cost analysis must be performed before financing is sought and designs are drawn. By investing in an experienced engineering consultant, front-end engineering can play an essential role in assessing accurate capital estimates. When exploring financing sources, energy leaders should keep in mind that the American Recovery and Reinvestment Act of 2009 includes $3.4 billion for fossil energy research and development in support of clean coal efforts. Furthermore, the U.S. Federal Energy Bill authorised $200 million per year from 2006 to 2014 and $1.1 billion in funding for clean coal research and development.

When implementing the project, energy leaders should look to the proven approach of Engineering, Procurement, and Construction Management (EPCM). Significant time and cost savings can be achieved through EPCM delivery because the consultants are neutral advisers and operates through tight schedules and minimal design revisions.

Implementing a coal gasification project requires a methodical and analytical approach. Given the need for and interest in pursuing clean coal technology, the time is right to put coal gasification to work.
Source: World Coal

Clifford Reese is a Senior Associate of SSOE Group, an international engineering, procurement and construction management firm. All opinions are his own and do not necessarily reflect those of the WCA. Further information: contact Clifford Reese or visit the SSOE Group website



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