China

Gasification is a flexible clean energy technology that can turn low-value coal feedstocks into high-value products, while in China’s case help reduce the dependence on foreign oil and natural gas. This polygeneration process converts carbon materials, such as coal, into a syngas for a clean alternative source of electricity or can be further processed to create fertilizers, fuels, and chemicals. Along with the applied products and applications, distinct economic and environmental benefits exist.

Worldwide gasification capacity is projected to grow 70 percent by 2015, with 80 percent of this growth occurring in Asia. The key areas of this expected growth in China includes the chemical, fertilizer, and coal-to-liquids industries.

China is forecast to achieve the most rapid growth in gasification activities worldwide. Since 2004, 29 new gasification plants have been licensed and/or built in China. The rapid growth of the Chinese coal chemical industries over the last 10-15 years has consumed a substantial amount of high quality bituminous and anthracite coals. This has causeda shortage of coal supplies to the Chinese power industry, which has struggled with the rapid increase in energy demand.

The Chinese government is publishing new policies to encourage the utilization of low quality coal, such as lignite coals, in the coal chemical industry through coal gasification.

Suitable gasification technologies for lignite coals include:
1. BGL fixed bed slagging gasification technology;
2. Conventional Lurgi fixed bed gasification technology;
3. Shell entrained flow gasification technology;
4. Siemens/GSP entrained flow gasification technology;

The entrained flow gasification technologies use dry powder coal (2-3% moisture, very fine particle sized), mixed with oxygen as feedstock to gasifiers. These technologies generally require high capital costs;

Coal preparation for the entrained flow gasification plant predominately involves coal drying;

The fixed bed gasification technologies use lump coals as feedstock to gasifiers. These technologies generally require lower capital costs;

The conventional Lurgi gasification technology results in lower utilization and production efficiencies and requires substantial capital costs in waste water treatment to meet tight pollution control measures. Lurgi gasifiers could use as received lump coals;

BGL gasification technology requires briquetted or lump lignite coals and the BCB technology is the preferred process for coal preparation;

The BGL gasification technology requires, on average, relatively lower capital and operational costs (approx 1/3 below Shell gasification technology and 10-15% below GSP gasification technology), thus is a highly competitive player in the China market.

Business Development

White Energy is in discussions with several potential strategic partners to commercialise the BCB technology in China, in particular focusing on the benefits of the use of the BCB technology and its application for the coal gasification process.