Methanol for

Gasoline Blending
from
Petroleum Coke
David Netzer
&
Chris Wallsgrove
(Speaker)

MeOH
 The Premise
• Upgrading Heavy Oil Normally Produces
Petroleum Coke (Petcoke)
• Petcoke is Often Sold as Low-Cost Fuel
• Petcoke Can be Gasified to Syngas (Proven
Technology)
• Methanol (MeOH) is Produced from Syngas
• MeOH Can be Blended with Gasoline
• 7% to 10% Blend of MeOH in Gasoline Can
Fuel Existing Cars (Proven Technology)
 Other Methanol Uses
• Methanol to Gasoline (MTG) – but WHY? If
We Can Use Methanol AS Gasoline
• Methanol to DME – Diesel and/or LPG
Subtitute
• Methanol to Propylene (MTP) or Ethylene
(MTO) – Compete with Steam Crackers?
• Methanol to Acetic Acid & Derivatives –
Limited Market
• Methanol to Formaldehyde & Derivatives –
Same
 Process Units
• Gasification – To Produce Raw Syngas
• Air Separation (ASU) – To Produce Oxygen
for the Gasification
• Shift – With Control of CO/H2 Ratio
• Rectisol – Remove H2S/COS and Recover CO2
• Methanol Synthesis – Makes 50,000 BPSD
• Methanol Purification (Distillation)
• Units to Recover H2 and Sulfur
 Process Units Selection
• Quench Gasifiers – Operate at High Pressure
to Avoid Syngas Compression
• Unconverted Carbon to Boilers
• Gas Cooling Produces Steam
• Rectisol (Two Trains) Uses Methanol Solvent
• Two Methanol Synthesis Reactors (Large,
Heavy Vessels) in Parallel
• Conventional PSA for H2 Recovery, and Claus-
Type Sulfur Units
Petcoke
7,400 tpd
Air
CO2
Air CO2
130 bar
Separation Compression
11,700 tpd
Nitrogen

Oxygen 6,600 tpd CO2

Coke Preparation Gasification Shift & Gas Rectisol

And Slurrying 87 bar Cooling Units

Water, Unconverted
Fluxing Agent Syn-
Carbon
Steam EHP, HP, Acid Gases Gas
MP, LP

Steam & Sulfur Methanol

Steam HP, LP Synthsis
Power Plants
Systems Tail Gas 78 bar

Purge Gas

Sulfur Methanol
Product 6,400 tpd
Hydrogen
PSA Hydrogen Methanol
Product
Recovery Reactor Purge Gas Purification
16 MMscfd
50,000
bpsd

Block Flow Diagram – Petcoke to Methanol

 Energy Systems
• Totally Self-Sufficient in Steam and Power
• Fluidized Bed Boilers, for Petcoke and Coal
• Plus Unconverted Carbon from Gasification
• MP Steam Superheating in a Fired Heater,
Using PSA Purge Gas as Fuel
• Steam Driven ASU Compressors – 63 MW
• Balance of Steam to a Generator – Excess
Power Exported (About 80 MW Export)
• All Other Drivers Electric
 130 Bar Steam
From Shift

Econo DeNOx Air Pre- Lime

Heat Scrub

SRU Tail Gas

PSA Purge Gas 125 bar Steam 125 bar Steam
MeOH Bottoms To ASU Drivers
Unconverted
Carbon
Petcoke

Limestone 3 x 55% Turbine Generator ~

Fluidized
Coal
Bed
(& Biomass)
Boilers 25 bar
Spent Gypsum 3.5 bar Steam
From Process

D/A
PSA Purge Gas
~80%

27 bar Steam
From Process

Steam & Energy Block Diagram – Petcoke to Methanol

 Capital Cost Savings
• Quench Gasification vrs High Efficiency with
130 Bar Steam – Saves ~$200 Million
• 320 MW Fluidized Bed Boilers vrs IGCC –
Saves ~$450 Million
• 67% CO2 Capture vrs 95% (Shift + H2 Power
Cycle + Parasitic Mw) - Saves ~$250 Million
• Avoid 25 MW Methanol Synthesis
Compressor – Saves ~$50 Million
• Other Miscellaneous Rational Savings ~$135
Million
 Carbon Dioxide Disposal

• If Underground Sequestration, Costs $$$

• If Sold for Enhanced Oil Recovery (EOR), is
Revenue $
• In Either Case, CO2 Must Be Compressed
to At Least ~125 Bar
• Modest (67%) CO2 Recovery
• Mine-To-Wheel CO2 Release is ~Equal to
Ethanol Blend
 Methanol in Gasoline
• 7% to 10% Blends – Equivalent to Current
Ethanol Blends – RVP Increase Manageable
• Methanol is Biodegradable - Half-Life in the
Environment is ~24 Hours
• M-10 (10% Methanol) and Higher in Current
Use in China
• Toxicity – Gasoline is Toxic. Adding 10%
Methanol Does Not Change That!
• Current E-10 Blend Infrastructure is Already
In-Place
 Methanol in Spark-Ignition Engines
• Modern Engines Designed for E-10 Fuel
• ECU/Fuel Injection Makes CLEAN Engines
• Higher Octane but Lower Energy Content

Now Then

• NO CHANGES REQUIRED
 Costs?
• Estimated Total Capital Cost US $2.8 Billion
• Makes 50,000 BPSD (Replacing Imported Oil)
From Carbon Resource ALREADY Existing
• Methanol Production Cost is ~$0.50 per US Gal
IF CO2 is Sold for EOR
• Methanol Production Cost is ~$0.88 per US Gal
if CO2 is NOT Sold for EOR
• Lower Cost Than Ethanol OR Gasoline
• No Additional Vehicle OR Infrastructure Costs
 Conclusions
• No Obvious Renewability or “Greenhouse”
Advantage of EtOH over MeOH
• No Obvious Safety or Toxicity or Hazard
Advantage of EtOH over MeOH
• Obvious Economic Advantage of Methanol Over
Ethanol
• No Additional Vehicle OR Infrastructure Costs
• No Vehicle Performance Issues
 We Had Valuable Help From:
• Air Liquide/Lurgi – Frankfurt, Germany
• Linde – Munich, Germany
• Haldor Topsoe – Houston, TX
• HDR Inc., Ann Arbor, MI
• Methanol Institute – Washington DC and
Singapore
• Don Koza, Marshal (Bud) Bell, John Lehman,
Dennis Dembicki, Michael Murphy & Others
Who Wish to Remain Anonymous…
 Contact Information

Chris Wallsgrove David Netzer

Brinderson Engineers & Constructors Consultant
Costa Mesa, CA Houston, TX

chris@wallsgrove.com netzerd@sbcglobal.net
(713) 240 8633 (832) 251 1271
Thanks to Pennwell Publishing, for publishing
a synopsis of this paper in two parts,
June and July 2011 Oil & Gas Journal

THE END

Mercifully…