Nitrogen & Syngas 2012 Conference

Coal Gasification Technology for Ammonia Plants

Syngas produced from coal presents a feasible alternate feedstock for ammonia production. In this paper, we explain the coal to ammonia process, in which the KBR Transport Reactor Integrated Gasifier (TRIG TM) is integrated into an ammonia plant, supplying hydrogen for a typical 2000 MTPD ammonia synthesis loop. The paper focuses on the process economics and options for ammonia products and derivatives. Coal to ammonia and derived products is an attractive option in places where abundant low cost coal is available and where natural gas and oil based feedstock are scarce and/or priced at a premium.

Bharthwaj Anantharaman, Saumar Hazarika, Tufail Ahmad, Manoj Nagvekar, Siva Ariyapadi and Ron Gualy KBR, Houston, TX, USA 1. Introduction
The recent high prices of oil and natural gas (outside the US) are leading to an increased interest in technologies such as coal gasification, which convert lower value hydrocarbon feed stocks into higher value end products [1]. Figure 1 below compares the projected prices of crude oil, natural gas and low rank coals [1].
20 Price Forecast ($ / MMBTU) 15 10 5 0 2005 2010 2015 2020 2025 2030 Year Crude Oil Natural Gas Low Rank Coal

Figure 1: Projected Price Comparisons for Crude Oil, Natural Gas and Low Rank Coal NH3, the most widely used intermediate for making fertilizers, is usually manufactured by the catalytic steam reforming of natural gas. Since natural gas has one of the highest proportions of hydrogen among all fossil fuel feedstocks, it is one of the most suited raw materials for ammonia production. However, with increasing natural gas prices, coal gasification can be an economically viable alternative route. In China, much of the NH3 production is based on synthesis gas obtained via coal gasification [2]. Figure 2 below compares the proven reserves of crude oil, coal and gas world-wide [3].

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Coal Gasification Technology for Ammonia Plants

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Figure 2: World Proven Reserves of Oil, Coal and Gas It has been estimated that there are over 847 billion MT of proven coal reserves worldwide. This means that there is enough coal to last us around 118 years at current rates of production. In contrast, proven oil and gas reserves are equivalent to around 46 and 59 years at current production levels. Coal reserves are available in almost every country worldwide, with recoverable reserves in around 70 countries. The biggest reserves are in the USA, Russia, China and India. With faster depleting reserves of oil and gas, coal presents an attractive alternative option for making ammonia. KBR has a proprietary coal gasification technology using the Transport Reactor Integrated Gasifier, also known as TRIGTM. This paper integrates the proprietary TRIGTM technology for coal gasification with a conventional 2000 MTPD ammonia plant. This paper presents the block flow diagram and briefly describes the Coal to Ammonia process. This paper presents the performance data and economic feasibility analysis to conclude that the process is economically feasible.

2. Global Ammonia Production

Overall, global ammonia capacity is now forecast to rise from 205 million MT in 2010 to nearly 239 million MT by 2020, an increase of just over 33 million MT, equivalent to a 16% increase over the decade [2 & 4]. This compares with a 43.8 million MT, or 27%, increase in ammonia capacity in the preceding 10 years. Table 1 below shows the Global ammonia capacity for all parts of the world.

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Coal Gasification Technology for Ammonia Plants

Nitrogen & Syngas 2012 Conference Table 1: Global Ammonia Capacity Projection

The biggest actual capacity growth will occur in Asia, where capacity is set to increase from 107 million MT in 2010 to over 124 million MT by 2020, an increase of 17 million MT or 16%. In terms of % growth, however, both Africa and the Middle East will see a sizeable expansion in their ammonia industries. African ammonia capacity will expand by 82% over the same period, with 6 million MT of new capacity added between 2010 and 2020. In the Middle East capacity is set to grow from 13.6 million MT in 2010 to nearly 18 million MT by 2020, an increase of 4.3 million MT or 32%. For ammonia production, natural gas is the dominant feedstock globally although a significant portion (27%) is coal-based. Natural gas has the highest hydrogen content of any existing energy source, which makes its highly desirable as a source of hydrogen for ammonia synthesis. However, increasing natural gas prices make coal an attractive route for making ammonia. Figure 3 shows global ammonia capacity by feedstock [5].

Figure 3: Global Ammonia Capacity by Feedstock

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Coal Gasification Technology for Ammonia Plants

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3. Global Ammonia Demand for Products and Derivatives

Figure 4 below shows the 2010 global demand for ammonia by end-use [2].

Figure 4: Global Demand for Ammonia by End-Use in 2010 In Figure 4, the abbreviation AN refers to Ammonium Nitrate and the abbreviation CAN refers to Calcium Ammonium Nitrate. Figure 5 shows the global ammonia demand projection from 2005-2020 by end-use [2].

Figure 5: Global Ammonia Demand Projection by End-Use In Figure 5, D.a.NH3 refers to direct application of ammonia. Figures 6 & 7 show the global ammonia demand for fertilizer and non-fertilizer production [2].

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Coal Gasification Technology for Ammonia Plants

Nitrogen & Syngas 2012 Conference

Figure 6: Global Ammonia Demand Projection for Fertilizer Production In Figure 6, the abbreviation AS refers to Ammonium Sulfate, ASN refers to Ammonium Sulfate Nitrate, MAP refers to Mono Ammonium Phosphate and DAP refers to Di Ammonium Phosphate.

Figure 7: Global Ammonia Demand Projection for Non-Fertilizer Production In Figure 7, the abbreviation EGAN refers to Explosive-grade Ammonium Nitrate.

4. KBR Coal to Ammonia Process

In the KBR coal to ammonia process, the proprietary TRIGTM technology is integrated with a typical ammonia synthesis loop. Figure 8 shows a block flow diagram of the KBR Coal to Ammonia process.

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Coal Gasification Technology for Ammonia Plants

Nitrogen & Syngas 2012 Conference

Air

ASU O2

N2 to Ammonia Synloop

SRU Acid Gas CO2

Sulfur Product

Coal

Coal Preparation

TRIG Gasification

Syngas Saturation & Sour Shift

Heat Recovery & Hg Removal

AGRU

Ash HP Steam BFW MP Steam to OSBL from OSBL Offsite & Utilities (OSBL)
Gas Processing

Waste Gas

(KRES)

N2 Wash / PSA

HP N2 from ASU

Ammonia Synloop

Ammonia Product Purge Gas to OSBL

Figure 8: Block Flow Diagram of the KBR Coal to Ammonia Process For this paper, the capacity of the ammonia plant is assumed to be 2000 MTPD. The TRIGTM unit is compatible with a wide range of feedstocks, particularly low rank coals.

5. Process Description
Process description in the KBR coal to ammonia process is briefly summarized below. Coal Preparation Dried, pulverized coal is fed to the pressurized gasifier unit through a system of lock hoppers. The coal feed fluidizes as it enters the gasifier. Air Separation Unit Air Separation Unit (ASU) supplies pure O2 to the gasifier and pure gaseous N2 to the ammonia synthesis loop. Coal Gasification in TRIGTM Partially dried, pulverized coal, oxygen and steam are fed to the TRIGTM gasifier, coal gasification reactions take place in the resulting fluidized bed operating in the high velocity, transport regime. Steam is added to the gasifier, both as a reactant and as a
0

moderator to control the reaction temperature at about 980 C (1800 F). Syngas Saturation and Sour Shift To maximize the production of H2 for making ammonia, carbon monoxide is reacted with steam catalytically in a water gas shift reactor to form CO2 and H2. Heat Recovery and Mercury Removal Shift effluent is cooled and syngas free of condensate is passed through a mercury removal guard bed of activated carbon.

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Coal Gasification Technology for Ammonia Plants

Nitrogen & Syngas 2012 Conference Acid Gas Removal Unit (AGRU) The bulk of the acid gases in syngas are removed in the Acid Gas Removal Unit (AGRU). After sulfur polishing, the recovered CO2 can be sent to a urea plant. Refrigeration load for the AGRU is provided by the ammonia refrigeration compressor. Sulfur Removal Unit (SRU) Elemental sulfur can be recovered from the H2S stream from the overhead of solvent stripper in a Sulfur Recovery Unit (SRU) by a suitable catalytic sulfur removal process. Nitrogen Wash / PSA Syngas leaving the AGRU is sent to Nitrogen Wash or Pressure Swing Adsorption (PSA) unit to recover hydrogen at more than 99.5% mol purity. Gas Processing (KRESTM) The remaining components in the syngas, along with the unrecovered hydrogen, concentrate in the tail gas leaving the PSA unit and then sent to KRES / ATR for reforming. The hydrogen from the PSA unit is mixed with high purity nitrogen from the ASU in a 3:1 molar ratio. Ammonia Synloop The mixed synthesis gas is compressed in a syngas compressor, and recycle gas from synthesis loop primary separator mixes with the make-up syngas. Ammonia is produced from the mixed gas in a fixed bed converter filled with iron promoted catalyst. Ammonia is condensed from the converter effluent stream by chilling with ammonia refrigerant at two levels and the ammonia vapors from refrigeration levels are compressed further. The compressed ammonia is condensed and goes through warm section of the refrigerant receiver. Under normal conditions, the plant produces all warm ammonia product.

6. Advantages of KBR Coal to Ammonia Process

The KBR coal to ammonia process offers several advantages: TRIGTM is compatible and flexible with a wide range of coals, and especially suited for abundantly available and cheap low rank coals. TRIGTM handles coal of wide particle distribution, and excessive fines in the feed. TRIGTM operates at moderate temperatures with no internal or moving parts. Highly compact design saves plot space and lowers capital cost. Low O2 consumption reduces size, energy consumption and cost of the ASU. Low water consumption by TRIGTM reduces the water demand in the process. Non-slagging gasifier eliminates equipment for slag handling and removal.

7. Performance Data of KBR Coal to Ammonia Process

Typical coal composition and high heating value for high moisture, low rank coal is listed in Table 2.

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Coal Gasification Technology for Ammonia Plants

Nitrogen & Syngas 2012 Conference Table 2: Coal Composition and Heating Value for a Typical Low Rank Coal Moisture Ash C H N S O Cl F HHV % % % % % % % % % MJ/kg 45.0 4.0 36.2 2.5 0.5 0.2 11.6 0.0 0.0 14.2 The performance data for the KBR coal to ammonia process is listed in Tables 3 & 4. The electrical voltages in Tables 3 and 4 are not critical process variables, and they do not impact the performance of the TRIG unit or the ammonia plant. Voltage levels tend to be site specific and will vary by country and job site location. Table 3: Coal Gasification Plant Specifications 158,700 Nm3/h Syngas on Saturator Overhead Pressure Temperature Quantity Remarks Ambient Ambient 201,400 kg/h To Gasifiers 45 bar 38 C 48,540 Nm3/h 42 bar 350 C 40,000 kg/h 51 bar Ambient 33,000 Nm3/h 99.5% (v) 5 bar Ambient 1,300 Nm3/h 99.5% (v) N/A N/A 1,700 kW Used within Battery Limit Table 4: Coal to Ammonia Plant Specifications 2000 MTPD of Ammonia Production Pressure Temperature Quantity Ambient Ambient 201,400 kg/h Ambient Ambient 650 GJ/h 45 bar 51 bar 5 bar N/A 38 C Ambient Ambient N/A 59,400 Nm3/h 33,000 Nm3/h 59,000 Nm3/h 82,000 kW

Designation Raw Coal O2 MP Steam HP N2 LP N2 Electricity

Designation Raw Coal Fuel Gas O2 HP N2 LP N2 Electricity

Remarks To Gasifiers Process Heater & Package Boiler

Generated Internally from Steam

8. Financial Data of KBR Coal to Ammonia Process

Following assumptions are made in the economic analysis of the KBR coal to ammonia plant: Ammonia production capacity = 2000 MTPD Sulfur product rate = 7.8 MTPD Coal cost = $ 20/MT = $ 1/MMBTU Electricity cost = $ 100/MWh Oxygen cost is included in the CAPEX of Air Separation Unit (ASU)

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Coal Gasification Technology for Ammonia Plants

Nitrogen & Syngas 2012 Conference Operations & Maintenance = 3.5% of CAPEX Administration = 0.5% of CAPEX Feedstock / Product escalation = 5% per annum Capital Structure: Debt-to-Equity Ratio = 60%:40% Cost of financing = 8% Corporate tax rate = 25% Plant availability = 330 days per year, 90%

The cost of production of ammonia that corresponds to an internal rate of return of 15% is estimated as $ 215/MT. The current selling price of ammonia is $ 500/MT in India and China and $ 565/MT in USA [2]. The significant difference between the selling price and cost of production of ammonia indicates an annual profit of $ 188 MM in Asian markets, demonstrating that the coal to ammonia plant is economically viable and profitable. Since the estimated cost of production of ammonia depends on the assumptions made on the underlying factors, it is important to identify the sensitivities of these factors on the ammonia production cost. Figure 9 shows such sensitivity analysis. Blue color in Figure 9 indicates the effect of increase in each factor on ammonia production cost, while yellow color indicates the effect of decrease in the factor.

Capex +/- 25% Coal Price +/- 50% Availability +/- 5% Corporate Tax Rate +/-10%
-15% -10% -5% 0% 5% 10% 15%

Change in Ammonia Production Cost ($/MT)

Figure 9: Sensitivity Analysis of Change in Ammonia Cost of Production As seen in Figure 9, the ammonia production cost is most sensitive to capital cost (CAPEX). Increasing the CAPEX by 25% increases the ammonia production cost by 14%, while decreasing the CAPEX by 25% decreases the ammonia cost by 14%. Typically, the CAPEX in India and China are 70% of the CAPEX in US Gulf Coast. The cost of coal has the second highest impact on the ammonia production cost. Increasing the coal cost to $ 30/MT ($ 1.5/MMBTU) increases the production cost by 10%, while decreasing the coal cost to $ 10/MT ($ 0.5/MMBTU) decreases the production cost by 10%. Although oxygen is also a raw material in addition to coal, the oxygen cost is

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Coal Gasification Technology for Ammonia Plants

Nitrogen & Syngas 2012 Conference already included in the CAPEX of the Air Separation Unit (ASU). Hence, it is not explicitly used as a variable for sensitivity analysis. Plant availability and corporate tax rate have the least impact on the production cost. The current inflation rates in US, China and India are 3.6%, 5% and 9%, respectively [6, 7 & 8]. The inflation rates are varied in the economic analysis to cover various geographical regions. The CAPEX of a conventional coal to ammonia plant is about double that of a natural gas to ammonia plant [9]. However, a TRIGTM based coal to ammonia plant will cost less than a conventional coal based ammonia plant because of a simpler design, fewer pieces of equipment, and less severe operating conditions. Given the suitability of TRIGTM to process cheaper, low rank coals, the KBR coal to ammonia process appears to have bridged the gaps of higher capital cost and higher specific energy consumptions associated with coal based ammonia plants. The process is an economically viable route for the manufacture of ammonia in places that do not have a source of low cost natural gas but have abundant low rank coals.

9. Conclusions
Coal gasification technology for ammonia plants offers an economically attractive option for manufacturing ammonia, especially in countries with large coal reserves and limited or high cost natural gas deposits, such as USA, China and India. The proprietary KBR Transport Reactor Integrated Gasifier, TRIGTM, is well suited to a wide range of coal feedstocks, particularly the low rank coals, which are cheap and abundant. The process offers robust and energy efficient design with several advantages compared to traditional coal to ammonia processes. Coal gasification technology for ammonia plants will ease the pressures due to increasing global demand of ammonia and various derivatives.

10. References
1. Annual Energy Outlook 2011, With Projections to 2035, US Energy Information and Administration, April 2011. 2. FERTECON, Ammonia Outlook, Issue 2011-1. 3. http://www.worldcoal.org/coal/where-is-coal-found/, World Coal Association 4. IFA Annual Conference, Paris, May-June 2010; International Grains Council, Grain Market Report, 25 November 2010; and plants and projects. http://www.icis.com/v2/chemicals/9075154/ammonia/uses.html 5. IFA 2008a, 2007 Annual Production and International Trade Statistics. (Series of statistical reports on the 2007 production capacity, production and international trade of key fertilizers, raw materials and intermediates). http://www.fertilizer.org/ifa/HomePage/STATISTICS/Production-and-trade 6. US Bureau of Labor Statistics, July 15, 2011. 7. The World Fact Book, CIA, August 2011. 8. Monthly Review of Indian Economy, Economic Affairs and Research Division, FICCI, April 2011. 9. Appl M.: Ammonia Principles and Industrial Practice: Wiley; Chapter 13.2, pg 238.

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Coal Gasification Technology for Ammonia Plants

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