SOURCE: Zeus Development Corp.

December 07, 2006 18:48 ET

Zeus Workshop Highlights Tremendous Gasification Opportunities

HOUSTON, TX -- (MARKET WIRE) -- December 7, 2006 -- Shell Global Solutions (US) will take an equity ownership role in its proposed 70,000-b/d North American coal-to-liquids (CTL) project. "We will take a 30% to 50% ownership position or greater in the project," Jack Jones, market development, Shell, told the Gasification Technologies Outlook 2006 workshop sponsored by SYNGAS Refiner newsletter.

The company will use its Shell Coal Gasification Process and Fischer-Tropsch technologies and is in discussions with potential coal suppliers. This venture will be similar to Shell's partnership with Shenhua Ningxia Coal Industry Co. to study the technical and commercial feasibility of a same-size CTL plant using Shell technology in the Nindong coal center in the western part of Northern China's Ningxia Autonomous Region.

David Eichinger, chief financial officer & senior VP, Synthesis Energy Systems (SES), told the audience about the official groundbreaking ceremony in Shandong, China for SES's new coal gasification facility that will use U-GAS® licensed technology to cleanly convert waste coal to syngas.

The plant will be SES' first designed and built U-GAS® coal gasification facility and signifies a key milestone in the global development and commercialization of the company's gasification technology.

The 28,000-cu-meter-per-hour plant is adjacent to the Hai Hua Chemical Co. coke and methanol facility and will use 200,000 tpy of waste coal. Syngas will feed Hai Hua's new methanol plant and fuel its coke ovens and power facility. The plant will begin commercial operation in the third quarter of 2007.

Cliff Keeler, senior project director, gasification, ConocoPhillips, gave a presentation on substitute natural gas (SNG) and the Cardinal Gasification Center in Illinois that will produce 35 billion cubic feet per year of SNG as well as carbon dioxide, sulfuric acid and power. The air separation units will also co-produce oxygen, nitrogen, argon, xenon and krypton.

John Sams, president/COO, LPP Combustion, explained his firm's technology that will address the need in the power generation market to be able to burn liquid fuels at similar emission levels as natural gas. Coal-derived liquids offer a tremendous opportunity in this area because of its transportation benefits, while naphtha could be used on site in a combustion turbine.

Bill Douglas, senior VP development, Econo-Power International Inc. (EPIC), reviewed how a $50 million EPIC standard plant with four gasifiers can provide boiler fuel for natural gas boilers and as coal replacement and for ethanol plants, cement kilns, process furnaces and integrated-gasification combined-cycle power plants.

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