Quantex targets coal-to-liquids conversion at less than $50 per barrel
We've made many references to WVU's "West Virginia Process" for the direct liquefaction of Coal; but, our reportage has been sadly incomplete since we've so far been unable to provide you very many of the precise, or complete, technical details of their system.
We have, though, lately been focusing more attention on that effort, and will begin in coming reports to attempt fuller explanation of what we've learned of it.
For a number of reasons, the West Virginia Process does seem to be a highly advantageous way to convert Coal into liquid hydrocarbons; and, one of the reasons for that appears to be the fact that WVU's technology doesn't convert all of the Carbon in the Coal feed into hydrocarbons.
The process can, as we understand it, be conducted under less "severe" conditions of temperature and pressure than other direct, solvent-based Coal liquefaction technologies we've reported, such as the Nobel Prize-winning Bergius Coal conversion process, as earlier reported, for just two examples, in:
Bergius 1928 Coal Liquefaction | Research & Development; concerning: "US Patent 1,669,439 - Process for Distilling and Liquefying Coal; 1928; Inventor: Friedrich Bergius, of Heidelberg, Germany; Abstract: This invention relates to improvements in a correlated process for distilling and liquefying coal. (A) Process which comprises subjecting coal to distillation treatment whereby there are produced ammonia, coke, tar, a gaseous fraction relatively poor in hydrogen but of high heating value and a gaseous fraction relatively rich in hydrogen, admixing the said tar with coal and subjecting the mixture to liquefaction and hydrogenation treatment with the gaseous fraction relatively rich in hydrogen at elevated temperature and under great pressure whereby there are produced ammonia, oil, and a gas of high heating value, combining the gas of high heating value with said gaseous fraction relatively poor in hydrogen, and separately recovering the said oil"; and, in:
CoalTL Wins Nobel Prize - in 1931 | Research & Development; "The Nobel Prize in Chemistry 1931", wherein we're told, in part, that: "According to the composition of the coal, it is possible in this way to extract 50 to 70% of the carbon contained in the raw material in the form of oils".
Similar technology was further developed later in the United States, both by independent parties and the United States Government, and they all seem to fall under the label of "Solvent Refined Coal", or, variously, "Solvent Extraction" Coal refining processes, wherein a liquid hydrocarbon, derived from either petroleum or Coal itself, is used to dissolve a major portion of the Carbon content in the Coal, and thereby provide a liquid feed for further refining to produce liquid hydrocarbon fuels.
One characteristic of those processes is that, as in the Bergius process, only a part of the Carbon content in Coal is converted into liquids. Some of the Carbon is not hydrogenated.
That is the case with technology established by the US Government-sponsored International Coal Refining operations in Allentown, PA, about which we've reported, for instance, in:
USDOE Funds Pennsylvania Coal Liquefaction | Research & Development; concerning: "United States Patent 4,510,040 - Coal Liquefaction Process; 1985; Assignee: International Coal Refining Company, Allentown (PA); Abstract: This invention relates to an improved process for the production of liquid carbonaceous fuels and solvents from carbonaceous solid fuels, especially coal. The claimed improved process includes the hydrocracking of the light SRC mixed with a suitable hydrocracker solvent. The recycle of the resulting hydrocracked product, after separation and distillation, is used to produce a solvent for the hydrocracking of the light solvent refined coal. The Government of the United States of America has rights in this invention pursuant to Contract No. DE-AC05-780R03054 (as modified), awarded by the U.S. Department of Energy. This invention relates to the process for the liquefaction of carbonaceous solid fuels, particularly coals with respect to enhanced production of liquid carbonaceous fuels and solvents.The present invention involves a solvent coal refining process in which, following liquefaction and light gas separation, the coal slurry is subjected to vacuum distillation, the bottom stream of which is solvent deashed. This solvent deashing includes a sequence of separation steps at elevated temperature and pressure. The present invention involves an improvement in the process wherein "Light SRC" is the favored product, the "Heavy SRC" being recycled almost to extinction. Such Light SRC is, in turn, hydrocracked on a fixed catalyst bed to yield commercially useful liquid fuels."
One of the participants in the International Coal Refining project was the Air Products & Chemicals Company, also in Allentown, who developed their own "take" on such technology, as seen, for one example, in:
Pennsylvania Converts Even More Coal to Liquid Fuels | Research & Development; concerning: "United States Patent 4,411,766 - Iron Catalyzed Coal Liquefaction Process; 1983; Assignee: Air Products & Chemicals, Incorporated, Allentown; Abstract: A process is described for the solvent refining of coal into a gas product, a liquid product and a normally solid dissolved product".
In any case, the West Virginia Process for direct Coal liquefaction seems to have evolved from such, or similar, technologies, which evolution we will attempt to document in future reports; and, it appears to share some salient features with them, one of which could be the fact that, initially, not all of the Coal is converted into liquid hydrocarbons, though a large percentage of it is; and, a "Heavy SRC", or "a normally solid dissolved product", that is, a semi-solid Coal conversion residue, is co-produced.
As noted above, the "Heavy SRC", which we take to be a carbonaceous Coal liquefaction residue, can be "recycled" through the process, "to extinction", albeit at some likely considerable additional expense.
However, our take now is that it has become clear to WVU, and others, that the profitability of Coal liquefaction processes can be maximized if, instead, the Carbonaceous residue were to be treated and dealt with for what it actually is: a source of partially refined, ash-free solid, or semi-solid, Carbon.
That seems clear in the information that is the focus of this dispatch, which relates how WVU has licensed their West Virginia Process for the direct liquefaction of Coal to what, at first, seems like a small start-up company staffed by a small group of independent entrepreneurs.
There is more to the story, as we indicate and emphasize, in comments following and inserted within excerpts from the initial line above to:
"Quantex targets coal-to-liquids conversion at less than $50 per barrel; June 22, 2011.
Gordon Eberth, COO of Quantex Energy Inc., admits that his company’s coal-to-liquids (CTL) process seems too good to be true. Could there really be a CTL technology that converts low-grade raw coal to synthetic crude and high-value green coke at a break-even operating cost under US$50 per barrel? A conversion process that generates less CO2 per barrel than Arab light crude?
(Please note the statement immediately above. Coal is dissolved in this liquefaction process by a solvent, without first being, as in indirect Coal conversion processes, gasified; and, there is little or no opportunity for Carbon Dioxide to be generated. And, as indicated above and as we once previously documented, though haven't dwelt on, Oil refineries and their associated petrochemical plants are themselves major emitters of Carbon Dioxide, but haven't yet been regulated. More can be learned via:
Oil Refineries Targeted For Global Warming Emissions Cuts | Earthjustice; wherein we're told: "Left unregulated, carbon dioxide emissions from oil refineries are projected to increase rapidly in coming years, at nearly double the predicted rate of emissions growth from other sources. According to estimates from the Department of Energy, annual carbon emissions from petroleum refineries will increase to more than 415 million tons by 2030."
The above increase in CO2 emissions by Oil refineries, by the way, as other of our research tells us, will be do to the fact that they'll be processing more and more "heavy" crude, such as bitumen from the Canadian tar sands. All while we have in hand a lower-Carbon way, WVU's "West Virginia Process", to convert Coal into liquid hydrocarbon fuels.
Concerning the Quantex claims concerning their own CO2 emissions, see:
Quantex Energy; wherein we're told: "Quantex Energy Inc is developing a process which seeks to refine coal as easily and inexpensively as crude oil processing. Taking advantage of the fact that the hydrocarbon refining industry has already developed the technology for "upgrading" heavy hydrocarbons such as Venezuelan Orinoco crude, or Alberta Oil Sands crude, Quantex Energy Inc seeks to produce liquids that meet the same specifications as heavy crude. The Quantex technology involves making a partially refined synthetic crude oil from coal, which is then further refined into synthetic gasoline and diesel as well as liquid propane gas and other hydrocarbon fuel products similar to hydrocarbon fuels derived from petroleum crude oil. The Quantex process itself does not produce CO2!")
“'Yes, it’s true - almost for sure,” says Eberth with a grin. “We’ve proven the technology in the lab, producing about one barrel per day. That’s a larger bench test than usual. We’re about to do the detailed engineering for a pilot plant producing up to 150 barrels per day [b/d] at Beaumont, Texas. The next move will be a series of reactors, each 1,000 b/d, which can be scaled up progressively to form a commercial plant with a capacity of 20,000 b/d or more. The commercial operation could launch as early as 2013.'”
(Ironic, ain't it? The West Virginia Process for converting Coal into liquid fuels will be first reduced to practice in the state of Texas.)
Quantex ranks as a micro-firm at this stage but it has at least one powerful ally. New Hope Corporation Limited is an Australian coal mining firm with a market capitalization of US$4.4 billion. A partner in Quantex, New Hope reported in 2010 that it had invested $4 million in the direct CTL process, and will inject another $35 million this year and next.
(The same information concerning New Hope's investment in Quantex can be seen in:
And, Quantex might, in fact, also have other backers. Further, note that they are actually headquartered in the Alberta, Canada. Although they talk about Coal, and commercializing the process, in Texas, it could work on Canadian Tar Sand bitumen, as well.
In any case, make special note of the following statement.)
This CTL process was discovered at West Virginia University, funded by the U.S. Department of Energy.
The DOE was actually looking to manufacture coke and got crude as an unexpected byproduct. Further research indicated that a higher volume of oil was produced from lower grades of coal, another welcome surprise.
(The above is rather important. As seen in one aspect, the West Virginia Process is actually more of a technology like that practiced, at the International Coal Refining Company, in Allentown, as per our introductory citations. As we understand it, from other resources we've been studying, the primary intent of the "solvent refining" of Coal is not necessarily the synthesis of liquid hydrocarbons, but, the production of an ash-free, high-carbon "Coke", which has a number of high-value uses. That, as we now perceive it, figures heavily into the fact that the liquid hydrocarbons can be produced at a cost of $50 per barrel. The Coal liquids are actually the byproduct of a profitable Coke making, Coal refining technology. - JtM)
Chalifoux acquired the rights and launched Quantex in 2007.
The Quantex technology involves crushing the coal and mixing it with a cheap diluent like coal tar distillate or decant oil, plus several additives. “The additives are safe, you could spray them on your mother,” Eberth says. The mix is then put through a centrifuge to remove ash and distilled to remove the diluent.
The coal, now in a form called pitch, goes through a form of delayed coking that transforms it into intermediate-grade crude oil and green coke. Process pressures are low, temperatures a modest 400–500 degrees Centigrade. Ash would normally be disposed of at the mine site.
(The Coal conversion ash could, we submit, instead be directed into another process, such as that seen in:
Exxon Converts Coal Conversion Residues to Cement | Research & Development; concerning: "United States Patent 4,260,421 - Cement Production from Coal Conversion Residues; 1981; Assignee: Exxon Research and Engineering Company; Abstract: Cement is produced by feeding residue solids containing carbonaceous material and ash constituents obtained from converting a carbonaceous feed material into liquids and/or gases into a cement-making zone and burning the carbon in the residue solids to supply at least a portion of the energy required to convert the solids into cement";
and be thereby profitably employed.
We won't detail or document it here, but, "delayed coking" is, we assure you, a standard petroleum refinery processing technology. They won't have to do anything they are not, in many cases, already doing.)
About two-thirds of the treated coal becomes crude, the rest green coke. The latter can be used as synthetic metallurgical coke or Pulverised Coal Injection (PCI) coal as well as anode and needle coke. These fuels are used in steel blast and electric furnaces, and aluminum smelters. “Initially I was concerned that we might flood the coke market but that’s not the case. The Chinese will need a lot of it as their economy continues to grow. Their first-generation steel products haven’t worn out yet but in future they will need to be recycled as scrap steel in electric furnaces,” Eberth says."
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Well, when it comes to the Coke, we're not that certain the "Chinese will need a lot of it" since, as seen in:
China Awarded 2010 US Liquefaction Patent | Research & Development; concerning the recent: "United States Patent 7,763,167 - Process for Direct Coal Liquefaction; 2010; Assignee: Shenua Coal Liquefaction Corporation, Beijing (China); Abstract: Process for direct coal liquefaction of coal, including: ... fractionating hydrogenation products into oil products and a hydrogen donor recycling solvent. Claims: A direct coal liquefaction process ... which can be operated under mild reaction conditions with maximum yield of liquid products which are of high qualities for further processing. (The) conversion rate and oil yield of the invention is higher than that of the prior art. A lower organic residue yield and a better liquefaction effect can also be achieved";
they already have a direct Coal liquefaction technology in hand, which does produce some "organic residue", which, despite the polite label, would likely be the "green coke" identified by Eberth at Quantex.
Further, Quantex and WVU have been associated for a number of years, as can be learned via:
WVUBI Resident Tenant - Quantex Energy, Inc. | West Virginia University Business Incubator - Nurturing Technology Based Busine; wherein we're told, that: "Quantex is a private Canadian company established in 2007 to engage in the business of converting coal to oil and high value carbon products such as binder pitch and coke. This Coal to Liquid (CTL) conversion process is facilitated by applying a proprietary technology developed by University research laboratories";
the "WVUBI" in the link being the "WVU Business Incubator", more about which can be learned via:
About Us | West Virginia University Business Incubator - Nurturing Technology Based Business; wherein we're told that they're "goal is to promote economic development by supporting entrepreneurs, advancing entrepreneurial activities and nurturing early-stage businesses with space, facilities and support services.The WVU Business Incubator was established to provide the environment, resources, and entrepreneurial spirit necessary to maximize the growth potential for small start-up businesses. Access to a staff of professionals, trained interns, and WVU resources ensure that Incubator businesses have guidance in the key areas of accounting, advertising, graphic design, information technology, finance, corporate services, marketing, web design, and web development. Located in Morgantown, WV, the WVU Business Incubator is comprised of over 5,000 square feet of newly renovated space in the Chestnut Ridge Research Building on the Evansdale Campus of West Virginia University."
We don't want to clutter up our discussion herein more than we already have. We will, in some reports to follow, further document the "West Virginia Process" for converting Coal into liquid hydrocarbons. It has been publicly recorded and presented in some non-obvious ways that actually center on the "binder pitch and coke" generated from Coal, as co-products with the "intermediate-grade crude oil".
And, those co-products, a little counter-intuitively, might be what helps to enable the conversion of Coal into "synthetic crude ... at a break-even operating cost under US$50 per barrel", via a "conversion process that generates less CO2 per barrel than Arab light crude".
Somewhat sadly, though, if you read all the above excerpts closely, WVU's "West Virginia Process" will be employed to make that "synthetic crude" by "a private Canadian company" financed by "an Australian coal mining firm" in a plant situated in, and presumably using Coal mined somewhere near, "Beaumont, Texas".
Which means, of course, that they know all about West Virginia University's economical "West Virginia Process" for converting Coal into "$50 per barrel" "synthetic crude" oil, with less coincident Carbon Dioxide emissions than at least some conventional petroleum refineries, "as well as liquid propane gas and other hydrocarbon fuel products", in Canada, Australia and Texas.
Why, we are compelled to wonder, haven't the public citizens of West Virginia yet been privileged to be even just openly told about WVU's "West Virginia Process", much less been afforded the opportunity to put it to work for the citizens of West Virginia, using West Virginia Coal, in West Virginia?
Really: Why?