Technological Innovations for Ecologically Sustainable Development: The Case of Chemical and Energy Industries in the Context of Energo- chemical Systems Technologies Development

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TECHNOLOGICAL INNOVATIONS FOR

EZOLOGICALLY SUST'AlNABm DEWZIBPHENT.:

The Case of the Chemical

and

Energy Irt- dust* in the Context of Energochemical

Systems

Technologies Development

August 1987 WP-87-078

*Systems R e s e a r c h Department of t h e

Institute f o r Control and Systems Engineering Academy of Mining and Metallurgy, Krakow

**Industrial Chemistry R e s e a r c h lnstitute Department of P e t r o and Carbochemistry of t h e Industrial Chemistry R e s e a r c h Institute, W a r s a w

Working Papers are interim r e p o r t s o n work of t h e International Institute f o r Applied Systems Analysis and have received only Limited review. Views o r opinions expressed herein d o not necessarily r e p r e s e n t those of t h e lnstitute o r of i t s National Member Organizations.

INTERNATIONAL INSTITUTE FOR APPLIED SYSTEMS ANALYSIS A-2361 Laxenburg, Austria

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FOREWORD

The Integrated Energy Systems (IES) P r o j e c t at IIASA h a s a wide r a n g e of colla- borative organizations in many countries involved in developing effective energy use and emission clean e n e r g y systems f o r t h e n e x t century. This p a p e r d e s c r i b e s preliminary r e s u l t s of assessing t h e e f f e c t s of integrating t h e e n e r g y and chemical industries in Poland. This i s done on t h e basis of two coal and lignite conversion technologies (PYGAS and PYREG), taking into account specific economic and social conditions. Results obtained by t h e a u t h o r s and presented in t h e p a p e r show t h e good economic p r o s p e c t s f o r improving existing industrial systems by introducing t h e new coal technologies.

VassiLi Okorokov Leader, Integrated Energy Systems

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This p a p e r is aimed at t h e identification and evaluation of various development p a t h s f o r t h e e n e r g y and chemical industries. This i s t o be embeded in t h e b r o a d e r philosophy of t h e so-called Ecologically Sustainable Development (ESD). W e focus o u r attention on t h e Polish e n e r g y and chemical industries since t h e i r development seems to b e one of t h e key f a c t o r s within t h e context of ESD.

Assuming a s t r a t e g i c option described by Hafele (Novel Horizontally Integrat- ed Energy Systems

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NHIES) as a tartet s t r u c t u r e f o r t h e next c e n t u r y , w e p r e s e n t various development a l t e r n a t i v e s which may b e p a t h s leading to t h e t a r g e t . This view if one of t h e r e s u l t s of o u r r e s e a r c h in t h e field of development f o r t h e chem- i c a l industry in Poland.

A s t h i s r e s e a r c h i s regionally oriented, w e t a k e into consideration t h e possi- bilities of utilizing two coal and lignite conversion technologies (PYGAS and PYREG). We show t h e i r reliability within t h e ESD c o n t e x t when t h e s e technologies will be introduced in t h e chemical and e n e r g y and power industries.

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CONTENTS

1. INTRODUCTION

2. COAL AND LIGNITE IN EUROPE

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AN OVERVIEW 2.1 G e n e r a l D a t a o n D e p o s i t s a n d E x t r a c t i o n 2.2 T h e P r o b l e m of S u l f u r a n d SO,

2.3 I n t e r a c t i o n s with C r u d e Oil and G a s I n d u s t r i e s . C o n f l i c t or Complemen- t a r i t y ?

3. ENERGOCHEMICAL DEVELOPMENTS; THE CASE OF POLAND 3.1 T h e Scope

3.2 R e d e v e l o p m e n t C o n s t r a i n t s f o r t h e C h e m i c a l and E n e r g y I n d u s t r i e s i n Po- l a n d

3.3 D e v e l o p m e n t C o n s t r a i n t s of t h e E n e r g y a n d C h e m i c a l I n d u s t r i e s

4. TECHNOLOGICAL INNOVATIONS FOR ENERGOCHEMICAL COAL AND LIGNITE UTILIZATION

4.1 Assumed Scope 4.2 PYGAS T e c h n o l o g y 4.3 PYREG T e c h n o l o g y

4.4 PYREG a n d Waste U t i l i z a t i o n

5. POSSIBLE INTEGRATION OF PYGAS AND PYREG INTO THE EXISTING INDUSTRI- AL STRUCTURE

5.1 T h e S c o p e a n d t h e G o a l

5.2 E x a m p l e of I n d u s t r i a l S t r u c t u r e with PYGAS 5.3 E x a m p l e o f I n d u s t r i a l S t r u c t u r e with FYREG 6. METHODOLOGICAL I S S U E S

7. CONCLUSIONS AND FROSPECTS ACKNOWLEDGEMENTS

REFERENCES AND RELATE;D PUBLICATIONS

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v i i

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TECHNOLOGICAL INNOVATIONS FOR ECOLOGICALLY SUSTAINABLF, DEVELOPMENT The Case of the Chemical and Energy Industries in the Context of Energochemical System Technologies Development

Maciej Zebrowski and Pawel Rejewski

Throughout history man always faced t h e problem of limited r e s o u r c e s . A c a v e man had to hunt f o r animals within his walking range. Thus his potential food resources were limited. Similarly, when h e s t a r t e d to develop a g r i c u l t u r e , his ability of food production by means of a g r i c u l t u r e w a s Limited by primitive tools and his physical s t r e n g t h . Improvements in t h e efficiency of t h e means of production, however slow throughout history, evolved in response to limited r e s o u r c e s . The p r o g r e s s w a s achieved by enlarging amounts of accessible r e s o u r c e s , by discover- ing new r e s o u r c e s , by b e t t e r utilization of a l r e a d y existing and exploitation of new r e s o u r c e s [Dobrowo Lsti et aL., 2@&7].

Technological development h a s not only allowed man t o c o n q u e r t h e e a r t h but h a s led him to change i t dramatically.

The qualitative change which evolved o v e r time within t h i s g e n e r a l framework is t h e scale of o p e r a t i o n of today's "civilized world" and t h a t i s considered as enormous. But, not disregarding t h e weight of t h i s f a c t o r , it seems relatively overexposed by common wisdom due to limitations of o u r p r e s e n t knowledge and im- agination of how t h e development deadlocks could be eliminated. In f a c t t h e phenomenon of stress and f e a r resulting from t h e s e limitations i s a permanent factor of Life from t h e beginning of t h e human race. The ability to produce made us masters of t h e world. W e may s a y t h a t production and technological s t r u c t u r e form a n adaptive mechanism n e c e s s a r y f o r a man to change and follow t h e changing world. But at t h e same time t h i s makes us slaves of technological development. In f a c t , i t i s t h e permanent p r e s e n c e of stress which provides t h e p r e s s u r e n e c e s s a r y to f o r c e t h e human race through "trial and error" p a t h s to new developments which push away a f r o n t i e r of c o n s t r a i n t s to development.

What are t h e technological constraints a n d opportunities t h a t h a v e become increasingly important during t h e c o u r s e of economic development? First, t h e growing g a p between t h e r i c h and t h e poor, as w e l l as t h e g a p between well informed (armed in know-how technology) and not informed who are l e f t behind times.

Second, t h e a c c e l e r a t i o n in technological development t o g e t h e r with t h e f a c t t h a t decisions concerning investment and r e s o u r c e allocation (which w e c a U r o o t decisions) have a growing impact on our world and t h e i r i r r e v e r s i b l e e f f e c t s last o v e r a growing time span. Third, t h e rising number of resources t h a t become limits t o development. Among t h e s e r e s o u r c e s environment attained t h e leading position.

This p a p e r i s aimed at identification a n d evaluation of t h e development path to t h e d e s i r a b l e e n e r g y p e r s p e c t i v e s p r o j e c t e d f o r Europe. This i s to b e embedded in t h e b r o a d e r philosophy of t h e s o called Ecologically Sustainable Development (ESD). W e focus our attention on energy and chemical industries since t h e i r development seems to b e one of t h e key-factors in t h e ESD context. This view i s one of t h e r e s u l t s of y e a r s of o u r r e s e a r q h in t h e field of t h e development of t h e chemical industry.

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W e should focus on potential "transforming technologies", i.e. those whose impact could lead towards ESD.

In this p a p e r w e take as a point of d e p a r t u r e a s t r a t e g i c option described by Hafele and his colleagues in (H~eLe et aL., 1986). This option i s based on t h e con- c e p t of Novel Integrated Energy Systems (NIES) with z e r o emission. The notion of NIES i s based on energochemical processing of fossil fuels integrated with nuclear energy production. The basic idea behind such an integrated system i s to decom- pose and purify t h e primary fossil energy inputs before combustion and to allocate t h e decomposition products stoichiometrically in line with t h e requirements for fi- nal energy. By this w e achieve a horizontal integration of different energy sources similar to t h e one in t h e electricity generating system. If Hafele's concept i s to be considered as an ideal energy system of t h e next century, then t h e question arises: what development alternatives would bring about a path to r e a c h it?

There may be many paths leading t o t h e t a r g e t . In this p a p e r w e e n t e r t h e f i r s t stage of r e s e a r c h to explore various possible t r a j e c t o r i e s , in o r d e r to examine the technological opportunities and constraints to attaining NIES.

From this stems t h e thesis of r e s e a r c h r e p o r t e d in this paper. I t c a n be formulated as follows.

Let t h e NIES concept be a t a r g e t s t r u c t u r e . By evaluation of various t r a j e c t o r i e s leading to it, i t s attainability c a n b e verified in t e r m s of concept, scale of applicability and time. This should be done in practical terms in t h e context of regional conditions and possibly through various case studies. The process of evaluation will not only concern technological development, but, as a n integral p a r t of i t , various policies and stra- tegies of development c a n b e exercised.

W e consider and o f f e r for discussion a n approach which assumes working out alternative development t r a j e c t o r i e s . This is supported by t h e analysis c a r r i e d out through t h e following close-up. W e start from t h e case of Europe and t a k e SO, emissions as a pivoting factor. Moreover, w e t a k e into consideration coal and lignite extraction and t h e i r processing a s a main s o u r c e of t h e devastating emission of SO,. A t present this damaging impact c o m e s mainly f r o m t h e contemporary methods of combustion of t h e a b w e fossils for generating secondary energy. An overview of t h e cod and lignite problems in Europe i s taken in t h e b r o a d e r context of interactions with c r u d e oil and gas industries.

W e c h a r a c t e r i z e t h e scale of t h e "coal and lignite problem" together with some f o r e c a s t s and estimates of relevant emissions. In our discussion w e focus on s o m e specific technologies. One example concerns coal treatment (PYGAS) and another lignite treatment (PYREG). The above innovations are examined in t h e context of t h e Polish economy, i t s natural resources base and i t s environment.

Our aim is t o investigate how t h e adoption of these technologies could effectively relax environmental constraints and expand economic opportunities to enable development of t h e chemical and energy s e c t o r s , and so open a path to a NIES fu- t u r e . Other relevant technologies are also expected to b e evaluated at t h e next stage [Babcock i n t e r i m Report, 1986; Nietchke, 18861.

Several examples of a potential penetration of t h e discussed technologies into both s e c t o r s , t r e a t e d integrally, a r e outlined. A t t h e s a m e time they provide a n example of an important "technological policy exercise".

In conclusion w e aim at proposing t h e continuation of r e s e a r c h which follows t h e main s t r e a m presented in t h e paper.

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2. COAL AND LIGNITE

M

EUROPE

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AN OYERYIEW 2.1. General D e p o s i t s and E x t r a c t i o n D a t a

Europe with v e r y few exceptions (Great Britain, Norway, Soviet Union) i s very poor in c r u d e oil deposits. A s a r e s u l t both E a s t a n d West European economies a r e based on imported c r u d e oil.

The r o l e of solid fuels - c o a l and Lignite

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h a s been very important to t h e evolution of energy systems in Europe. Although t h e r o l e of nuclear e n e r g y i s growing, i t c a n b e expected t h a t conventional power stations will e x i s t till t h e f i r s t half of t h e next century [Maschetti and Nakicenovic, 29791. A growing demand f o r en- e r g y may still s u p p o r t this t r e n d . Moreover, a f t e r t h e y e a r 2000 supply of n a t u r a l hydrocarbons may d e c r e a s e due t o t h e i r exhaustion. According t o IEEC [1985], coal and Lignite deposits in Europe c a n b e presented as in Table 1. Our considerations put more emphasis on lignite since, in o u r opinion, this r e s o u r c e i s much less explored and known t o t h e public than coal.

Table 1. Recoverable R e s e r v e s of Coals in Europe (end of 1985).

Hard Coal Brown Coal

Bituminous/Anthracite Subbituminous/Lignite (million t c e ) (million t c e ) Western Europe

France (incl. Monaco) 298.5 19.2

Greece

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465.0

Spain 651.0 246.9

Turkey 126 .O 518.4

United Kingdom 7500.0 225 .O

Germany, Federal Republic 22439.3 10545.0

Yugoslavia 52.5 4950.0

Others 910.5 5011.5

Total, Western Europe 31977.8 22042.5

E a s t e r n Europe

Bulgaria 22.5 1110.0

Czechoslovakia 2025.0 858 -0

German Democratic Republic

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^7500.0

Hungary 168.8 1200 .O

Poland 20250.0 3600.0

Romania 37.5 330.0

22503 .8 14598 .O

Total Europe 54481.6 36640.5

1

^USSR

I

Total Europe and t h e USSR 136231.6 76240.5

I

^World ^395940.8 ^127969.5

I

SOURCES: BPSatistical Review ~f World Energy, June 1986; Vh'Energy a a t i s t i c s Earbook, 1984;

& m e y of Energy Resources, 1980.

Converslorr factors:

Hard coal I MT

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0.75 tce, and Brown coal 1 MT

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^{0.30 tce.}

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This emphasis i s in proportion t o lignite's potential value f o r Europe. In f a c t , according t o t h e above s o u r c e , 13.8% of r e c o v e r a b l e world h a r d coal deposits a r e located in Europe, as opposed to 28.6% of lignites. With t h e Soviet Union, which possesses 30.9% of t h e world deposits of t h i s mineral (mainly located in Siberia), i t makes up a b o u t 60% of t h e world's lignite deposits. The countries t h a t a r e in pos- session of l a r g e lignite deposits, such as t h e GDR, t h e FRG, t h e Soviet Union, Czechoslovakia and Poland, a r e those mostly i n t e r e s t e d in new technologies pro- gressing e x t r a c t i o n and utilization of t h e s e r e s o u r c e s .

Based on IIASA d a t a [ R o g n e r , 29871, w e show a n estimated f o r e c a s t of coals energy consumption in Europe until t h e y e a r 2030. The f o r e c a s t i s presented in Table 2.

Table 2. Primary Energy Consumption Forecast, Europe, 1980-2030 (Technical Evolution Scenario).

I

Year

Region 1980 1985 1990 2000 2010 2020 2030

li3rown CoaL and L i g n i t e

I

Western Europe (eJ) 2.51 3.03 3.59 4.18 4.79 4.92 5.10

5.47 5.83 6.18 5.34 4.54 4.10 3.71

Total Europe (eJ) 7.98 8.86 9.77 9.52 9.33 9.02 8.81

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Total Europe

(million M T P Y ) ~ 886.70 984 .OO 1085.60 1057.80 1036.70 1002.20 978.90 B i t u r n i n n u s CoaL and

A n t h r a c i t e

Western Europe (eJ) 9.79 9.64 8.94 7.21 6.23

E a s t e r n Europe (eJ) 4.47 4.76 4.75 5.67 6.79 6.59 5.93

Total Europe (eJ) 14.26 14.40 13.69

Total Europe

(million M T P Y ) ~ 648.20 654.50 622.30 585.50 592.80 605.90 563.60

a ~ o n v e r s i o n f a c t o r

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^9.0^{C J R .}

b ~ o n v e r s l o n f a c t o r = 22 CJ/T.

SOURCE: Rogner (1987).

I t c a n be s e e n t h a t i n c r e a s e s in yearly lignite consumption in Europe in t h e y e a r 2000 will be a b o u t 1.54 eJ* (171.1 million MT**), and in 2030 about 0.83 eJ (92.2 million MT) from t h e 1980 level. In 1980 t h e consumption level w a s 7.98 e J (886.7 million MTPY***).

This f o r e c a s t is of illustrative c h a r a c t e r t o envision t h e problem scale. A t t h e next r e s e a r c h s t a g e revisions are f o r e s e e n based also on technological analysis. The analysis should s p r e a d more light on t h e potential processing of lignite (demand side) helping to formulate and examine t h e f o r e c a s t on extraction. Of c o u r s e t h e f o r e c a s t s on o t h e r e n e r g y c a r r i e r s should be taken i n t o account ac- cordingly as i t is explained in Section 2.3.

*1 e J

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^10"^{J .}

**I million

-

^lo6u n I t g

***million m Y

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¹⁰Metric Tons Per Year.

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2.2. The Problem of Sulfur and SO,

Assuming p e r h a p s a n overoptimistic level of burning s u l f u r c o n t e n t in r a w lignite of 0.5% and burning p r o c e s s e s without pollution c o n t r o l facilities, t h e above f o r e c a s t would mean t h a t with t h e p r e s e n t technology a n i n c r e a s e of SO2 emission by t h e y e a r 2000 as compared t o 1980 would b e in t h e r a n g e of 1.7-1.8 million MTPY. This i s absolutely not acceptable!

Unfortunately, t h e suLfur content of both coal and lignite deposits remains in- sufficiently known. Moreover, i t i s likely t h a t t h e sulfur content in newly exploited deposits i s g r e a t e r as deposits with l o w s u l f u r content have become exhausted.

If t h e burning s u l f u r content in lignites e x t r a c t e d in E u r o p e i n c r e a s e s (to about 1 wtX) [ C e w a L Report of UNC, 29791 in Line with t h e consumption r a t e s (in- crease by 111 milLion MTPY), then SO2 emissions will rise by 3.42 million MTPY.

Given t h e 1980 e x t r a c t i o n of some 900 million M T P Y and a n optimistic sulfur con- t e n t of 0.5X, t h e SO2 emissions f r o m t h e combustion of lignite will r e a c h a level of some 12.3 million M T P Y f o r Europe in t h e y e a r 2000 (without a i r pollution c o n t r o l facilities).

Technological innovations ("transforming technologies'' as we call them) c a n a l l o w reductions in t h e emissions through increased efficiency of pollution c o n t r o l devices. Moreover, s u l f u r e x t r a c t e d f r o m coal and lignite could b e used as r a w material f o r production instead of being a pollutant. Emergence of economically feasible technologies, which would enable t h e above, may p r o v e to become a remedy for lack of complete d a t a o n t h e sulfur content of various fossil deposits.

The new technologies may c o n v e r t t h e problem of sulfur content from a r a t h e r touchy environmental i n t o a p r o f i t based industrial processing issue.

N e w technologies of energochemical processing of lignite (such as t h e PYREG technology) could in a n e x t r e m e case allow f o r a reduction in SO2 emissions to 2.27 million MTPY at 1980 consumption levels. The i n c r e a s e of SO2 f o r e c a s t e d f o r t h e y e a r 2000 could b e r e d u c e d to t h e level of 0.81 million M T P Y if new technologies w e r e totally adapted. T h e r e f o r e , t o t a l SO2 emissions could b e d e c r e a s e d by 9.15 million Mt/y.

The above estimates a r e , of c o u r s e , t h e o r e t i c a l s i n c e t h e a c t u a l market pene- t r a t i o n of new technologies will not r e a c h 100% in such a s h o r t period of time. But i t i l l u s t r a t e s t h e theoretically attainable potential f o r reducing SO, emissions.

This i s summarized in Table 3.

Table 3. Sulfur Dioxide Emissions in E u r o p e With and Without PYREG (in million MTPY).

What i s even m o r e interesting, t h e p r o c e s s would, at t h e s a m e time, yield p u r e s u l f u r at t h e level of 3.94 million M T P Y which could have a tremendous impact o n t h e market.

A similar evaluation should b e done f o r h a r d coal. For t h e s a k e of illustration let us consider t h e following c a s e .

Consumption of lignite Emission without PYREG Emission with PYREG

1980 866.70

8.87 2.21

2000 1051.60

12.29 3.14

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In t h e c a s e of coal sulfurization t h e numbers a r e even more difficult t o obtain.

A t this s t a g e of consideration i t seems t o be sufficient t o give only estimates t h a t can b e used f o r scaling t h e problem.

In t h e case of coal (high sulfur content, about 32 in r a w coal) from combustion of 120 million MTPY of such coal, t h e emission of S O 2 would b e in t h e r a n g e of 6.24 million MTF'Y. Highly sulfurized coals a r e often m o s t easily accessible and t h e r e - f o r e t h e c h e a p e s t in terms of production c o s t , whereas low s u l f u r coal deposits are mostly exhausted.

Applying t h e PYGAS technology, which will b e discussed later, t h e SOz emissions could b e reduced by a f a c t o r of 5.76. This would r e d u c e S O 2 emissions from 6.24 t o 1.08 million MTFY, yielding a l s o 3.06 million MTF'Y of s u l f u r . If assuming p e r h a p s a more realistic a v e r a g e sulfur content such as 1.52, t h e above numbers would have t o be divided by a f a c t o r of two. The above numbers a r e a l s o of illus- t r a t i v e c h a r a c t e r as in t h e case of lignite discussed above.

The amount of 1 2 0 million MTPY of coal w a s t a k e n f o r t h e illustration since i t i s roughly a level of coal combustion in Poland at p r e s e n t . That i s not to conclude t h a t t h e emission level f o r Poland is s o extremely high, because no desulfurization plants are installed yet.

If t h e necessity t o r e d u c e SOz emissions would f o r c e purification of fossil fuels (coal and lignite), then important s t r u c t u r a l changes in e n e r g y systems might take place. One example of such a n impact will b e v a s t amounts of r e c o v e r e d sul- f u r . Before discussing t h e PYGAS and PYREG technologies, some of t h e s e impacts will b e examined f i r s t . One of t h e methods of identification of those impacts on a r a t h e r g e n e r a l level will be t h e examination of c r u d e oil and LPG processing industry and possible existing or potential interactions.

2-3. Interactions with C r u d e Oil and G a s Industries

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Conflict ar Complementarity?

A lot of studies and e f f o r t have been invested to understand t h e f a c t o r s governing t h e market f o r c r u d e oil and LPG, as w e l l as r e l a t e d technological s t r u c - tures. I t i s almost t r i t e to s a y t h a t t h e modern world economy h a s come to b e s o decisively dependent on t h e s e r e s o u r c e s . From t h i s complexity we decided to tack- l e h e r e only specific a s p e c t s r e l a t e d to t h e problem posed in t h e t i t l e of this section. A s h o r t b i t of history is necessary f o r a start. The 1950s were on an unprecedented s c a l e . A period of innovative development of t h e c r u d e oil refining and petrochemical processing industries. The 1960s brought a n o t h e r acceleration, which i s mainly e x p r e s s e d in t h e i n c r e a s e of scale of production and processing units. F o r example, typical installations f o r gasoline pyrolysis with a capacity of 60,000 MTF'Y went up to 500,000 MTF'Y. The 1970s brought t h e oil s h o c k s t o g e t h e r with technological maturity of t h e industry. The 1980s brought, as a r e s u l t of t h e previous history, quick changes in t h e world situation of t h i s industry. These changes c a n b e c h a r a c t e r i z e d as follows:

Geographical reallocaWon of t h e production capacity of basic chemical feedstocks s u c h as ethylene (olefins) and its derivatives;

S t r u c t u r a l changes in feedstocks used f o r olefins productJon, and N e w developments in thermoplastics.

The f i r s t half of t h e 1980s can b e summarized as a period of expensive r a w materials (especially c r u d e oil), expensive energy and expensive investments.

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The growing capacities of olefins production (specifically ethylene) are mov- ing t o t h e c o u n t r i e s producing c r u d e oil. This w a s accompanied by a growing in- t e r e s t in t h e utilization of LPG which f o r y e a r s w a s wastefully b u r n t . According to UNIDO, even c u r r e n t l y in 18 countries producing c r u d e oil, a n energy equivalent of 2.6 million b a r r e l s of c r u d e oil p e r day is burnt. For example, Saudi Arabia in- c r e a s e d i t s production and e x p o r t of LPG f r o m 5.39 million MTPY in 1979 to 10.92 million MTPY in 1982 and aims at 12.5 million MTPY in 1990. Algeria will become t h e second biggest e x p o r t e r of LPG with e x p o r t s of 1.6 million MTF'Y LPG (in 1984).

The total world LPG production in 1981 w a s a b o u t 120.5 million MTPY and i t i s expected t o r i s e up t o 150 million MTF'Y in 1990.

These numbers i l l u s t r a t e t h e dynamics of t h e above phenomenon. To summar- ize t h e s t r u c t u r a l changes in t h e chemical feedstock industry, i t c a n be estimated t h a t in 1990 about 40% of t h e world olefin products will come from t h e g a s pyrolysis technology which i s relatively fast substituting a gasoline pyrolysis technology.

For comparison, t h e s t r u c t u r e of feedstock f o r ethylene production in 1981 is shown in Table 4 . These s t r u c t u r a l changes must have important consequences. I t c a n be estimated t h a t t h e growing s h a r e of LPG (in global supply of chemical feedstock) due t o i t s chemical n a t u r e could cause a decline in supplies of t h e im- p o r t a n t chemical feedstocks:

Propylene 2.8 million MTPY;

Butadiene 1.0 million MTPY; and

BTX (benzene, toluene, xylene) 3.1 million MTPY.

Table 4. S t r u c t u r e of Feedstocks f o r Ethylene (Olefin) Production, Worldwide, 1981.

SOURCE: Frenlk, 1984.

S o u r c e

Natural g a s a n d LPG Gasoline

Fuel oils

The above numbers a r e t a k e n from unpublished f o r e c a s t s by H. Franik [1984]

and i l l u s t r a t e an absolute necessity of studying more deeply technological and s t r u c t u r a l changes of t h e above type. This i s indispensable when trying to solve t h e problem of ESD f o r Europe with r e s p e c t to coal and lignite.

The immediate proof of t h e above statement c o m e s from t h e f a c t t h a t coal and even more so the lignite processing yields a n aromatic feedstock, which i s t h e key feedstock f o r t h e organic chemistry. This shows t h a t t h e energochemical processing of coal and lignite not only would lead to a decisive reduction of SO,, but could match independently developing structural changes, which t a k e place in supplies and processing of t h e petrochemical feedstocks.

P e r c e n t a g e 3 1 58 11

Similarly, one should study t h e impacts of s t e e l production d e c r e a s e s in Eu- r o p e causing in t u r n reductions in t h e demand f o r c o k e , which may lead to a d r o p in t h e supply of important intermediates such as naphthalene and a n t h r a c e n e . Again, new developments in coal and lignite processing could compensate this loss.

The overview given above aims at formulating a thesis on how t h e problem of finding t r a j e c t o r i e s from t h e existing t o t h e t a r g e t ( o r

NIES)

s t r u c t u r e should b e a t t a c k e d .

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3. ENEBGOC~MICAL DKVELOPfi6ENTS: THE CASE OF POLAND 3.1. The Scope

The close-up a p p r o a c h assumed in t h i s study and outlined in t h e Introduction i s taking us to "the case of Poland". This case i s to b e worked o u t along t h e lines following t h e assumed goal. The proposal of M. Zebrowski [1985]. which w a s one of t h e origins of t h i s study, w a s explicitly designed to investigate specific technologies which might b e undertaken o v e r t h e n e x t d e c a d e in Poland (but definitely not exclusively). The a i m i s to investigate how adoption of t h e new technologies could effectively r e l a x environmental c o n s t r a i n t s and expand economic opportunities f o r t h e sustainable development of t h e chemical and e n e r g y s e c t o r s , a n d s o c o n t r i b u t e t o t h e national economic r e c o v e r y .

The case of Poland could not b e examined independently from continental t r e n d s i n environmental change, a b o u t 30% of a i r pollution comes from a b r o a d . At t h e s a m e time, Poland r e p r e s e n t s a level at which s t r a t e g i c interventions c a n b e made.

In t h i s s e c t i o n w e examine how Poland could t r y to r e a c h Hafele's so-called Novel I n t e g r a t e d Energy Systems. W e c o n s i d e r t h e feasibility of achieving s u c h a n e n e r g y system, how to sustain t h i s system and will e x p l o r e t h e implications of such a system f o r e n e r g y f u t u r e s following exhaustion of conventional p r i m a r y e n e r g y c a r r i e r s .

However, t h i s c o v e r s a n extensive and wide field of r e s e a r c h and c a n b e done step by s t e p only. In t h i s p a p e r only t h e f i r s t stage aimed mainly at identification issues and problem formulation i s c o v e r e d . I t also h a s to b e s t a t e d c l e a r l y t h a t a lot m o r e o n t h e NIES c o n c e p t i s to b e investigated. S o m e of t h e s e questions are posed i n conclusions. A kind of feedback in t e r m s of questions t o NIES a n d t h e al- t e r n a t i v e t r a j e c t o r i e s worked o u t f o r Poland will be provided by t h e study discussed h e r e .

3.2. R e d e v e l o p m e n t C o n s t r a i n t s of the Chemical a n d E n e r g y I n d u s t r i e s in P o l a n d

While t h e scale of Polish economic difficulties i s well known, i t i s worth outlin- ing s o m e of t h e c r i t i c a l contributing f a c t o r s from t h e point of view of t h e chemical and e n e r g y i n d u s t r i e s t h a t are t h e backbone of t h e economy.

The Polish economy is v e r y e n e r g y consuming (see Table S), which is to a l a r g e e x t e n t t h e r e s u l t of conscious post-war economic policy. From t h e v e r y beginning, p o s t w a r Polish industrialization w a s c h a r a c t e r i z e d by a high e n e r g y consumption resulting from t h e emphasis on t h e development of heavy industries, s u c h as i r o n and s t e e l . This emphasis on heavy industries stems from t h e combination of a need t o rebuild t h e economy completely devastated by t h e war a n d from t h e post w a r geopolitical history of Europe.

In s t r i k i n g c o n t r a s t to o t h e r c o u n t r i e s , even t h o s e with l a r g e coal deposits, Poland i s c h a r a c t e r i z e d by a high dependence o n coal and t h e underdevelopment of oil based chemical and e n e r g y s e c t o r s . Nearly 80% of t h e f u e l and e n e r g y demand i s satisfied by coal, a n d as much as 96% of e l e c t r i c i t y i s g e n e r a t e d from coal.

Poland n e v e r took advantage of t h e c h e a p c r u d e oil of t h e 1950's and 1960's and, as a r e s u l t , t h e r e w a s l i t t l e development of a c r u d e oil processing industry f o r e n e r g y a n d chemicals. Oil processing i n f r a s t r u c t u r e remains Limited, and pros- p e c t s f o r a n oil based r e c o v e r y of t h e e n e r g y industry i s minimal, even if c h e a p oil w e r e t o become available. The same appLies to n a t u r a l g a s technologies.

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Table 5. Energy Consumption p e r 1000 USD of G N P in 1980 (in tons of coal equivalent).

SOURCE: DLE AionthLy Review, May 1983.

Region Poland Austria

West Germany F r a n c e

Today, t h e long tradition of coal mining in Poland is s t r o n g e r t h a n e v e r . The coal industry provides o n e of t h e m o s t important s o u r c e s of e x p o r t revenues, and sees itself as pivotal to a n y economic r e c o v e r y in Poland. This attitude, p r e v a l e n t both among economic p l a n n e r s and t h e public at Large, h a s f u r t h e r p r e v e n t e d t h e development of a n oil based e n e r g y and chemical sector. The continued economic r e l i a n c e o n coal e x p o r t s h a s also limited domestic opportunities f o r a decreasing r e l i a n c e o n coal.

Since t h e end of World W a r I1 Poland h a s e x p o r t e d o v e r one billion tons of coal and h a s e v e r y intention of continuing e x p o r t s in t h e f u t u r e . However, t h e mining industry h a s r e a c h e d a situation in which t h e accessible high quality coal i s exhausted. Geological conditions are such t h a t t h e e x t r a c t i o n of high quality coal i s becoming increasingly difficult and costly. The remaining shallow coal deposits are c h a r a c t e r i z e d by a high s u l f u r content and so have largely remained unex- ploited.

Coal production h a s r e a c h e d 200 million

MTPY,

and i t i s unlikely t h a t i t will r i s e much i n t h e f u t u r e . Over t h e y e a r s mining p r o c e s s e s have also led to substan- t i a l ecological damage at a n unprecedented scale. Salinization of t h e Odra and Vis- tula R i v e r s i s a p a r t i c u l a r problem, e.8.. t h e salt c o n t e n t of t h e Vistula River e x c e e d s at s o m e p a r t s t h a t of t h e Baltic S e a and almost n e v e r f r e e z e s in winter. In addition, t h e heavy dependence of energy production on coal h a s directly led to s u l f u r dioxide emissions exceeding 2.5 million MTPY and substantial NO, emissions.

Consump tion 1.290 0.634 0.616 0.573

Newly built chemical plants are c h a r a c t e r i z e d by l a r g e production units. A relatively l a r g e heavy chemicals s e c t o r , highly dependent on e n e r g y from coal.

h a s been developed. In o t h e r countries, t h e p r e s s u r e s of heating and motor fuel demand led d i r e c t l y to t h e growth and development of crude oil based e n e r g y and r e l a t e d chemical production. This dual p r e s s u r e h a s been largely a b s e n t i n Poland.

Consequently, c r u d e o i l processing capacity remains underdeveloped relatively to t h e size of t h e national economy. A t t h e same time, fortunately both among politi- cians and t h e public t h e consciousness of t h e environmental t h r e a t i s taking high p r i o r i t y .

A s a r e s u l t , r e s t r u c t u r i n g t h e e n e r g y and chemical sectors through imports of c r u d e o i l or g a s is unlikely to succeed. Opportunities f o r importing new e n e r g y and chemical technology are likely t o remain extremely r e s t r i c t e d o n account of t h e l a c k of funds. L a r g e investment c a p i t a l f o r r e s t r u c t u r i n g t h e e n e r g y and chemical industry will also remain unavailable.

This situation works towards reconsideration of t h e traditional a p p r o a c h t o coal and specifically i t s e x p o r t . Should t h e coal production b e m o r e domestically oriented with decreasing emphasis on e x p o r t , t h e n a p p a r e n t l y something h a s to b e done with coal processing technologies

-

both e n e r g y and chemical.

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3.3. Development C o n s t r a i n t s of the E n e r g y and Chemical Industries

Given t h e many c o n s t r a i n t s in r e s t r u c t u r i n g t h e e n e r g y and chemical indus- t r i e s , i t i s worthwhile to consider a path to economic r e c o v e r y t h a t ensures a n ecologically sustainable development. Such a path would:

b e based on coal, lignite and hydrocarbons, to b e used in both t h e e n e r g y and chemical s e c t o r s . These would need to become one i n t e g r a t e d sector since they utilize common n a t u r a l r e s o u r c e s . Conflicts between t h e s e sectors must b e avoided;

sustain innovation in e n e r g y technology dependent on t h e processing of primary e n e r g y materials ( c r u d e oil, g a s , coal, Lignite ...);

in t h e long term t h e development of n u c l e a r e n e r g y (e.g. b r e e d e r r e a c t o r s ) will foster innovations in t h e e n e r g y and chemical s e c t o r s , as n u c l e a r power generation will r e l e a s e r e s o u r c e s f o r development of e n e r g y a n d chemical p r o c e s s e s

-

should not t h e r e c e n t e v e n t s in t h e n u c l e a r e n e r g y industry delay t h i s option;

avoid technological c h a n g e s in coal based e n e r g y production, due to t h e existing scale of utilization of high c a p i t a l intensive technology (conventional power stations);

encourage innovations based on t h e existing domestic i n f r a s t r u c t u r e of energy production;

c o n c e n t r a t e on t h e e n e r g y and chemical processing of lignite and coal; a n d minimize environmental damage a n d w a s t e in n a t u r a l r e s o u r c e exploitation.

In addition, any successful p a t h to economic r e c o v e r y must recognize t h a t existing technologies of t h e e n e r g y production are perceived among both planners and t h e public as being well understood, s t a b l e a n d "publicly acceptable", despite a high consciousness of i t s ecological destructiveness. The s t r a t e g i c national im- p o r t a n c e of t h e e n e r g y and industrial sectors i s deeply embedded in Polish c u l t u r e and psyche. T h e r e i s a p r e v a l e n t and seemingly c o n t r a d i c t o r y recognition t h a t en- e r g y a n d chemical technology i s vital to economic r e c o v e r y . Such a situation may provide a climate which calls f o r a technological innovation c a p a b l e of transforming t h e existing environmentally d e s t r u c t i v e and economically d e p r e s s e d industrial sector i n t o one which i s n o t only economically productive b u t ecologically sustain- a b l e .

Any f u r t h e r considerations are bound to b e based on t h e investigation of r e l e v a n t technologies. This should a l s o include a n evaluation of t h e potential s t r u c t u r a l p e n e t r a t i o n of new technologies into t h e chemical and e n e r g y s e c t o r s .

4. TECHNOLOGICAL INNOVATIONS FOB ENERCOCHEhIICAL LJGNITE AND COAL UTILIZATION

4.1. Assumed Scope.

There is a substantial number of innovative technologies which w e r e developed f o r coal a n d Lignite processing. The so-called f i r s t a n d second e n e r g y c r i s e s have evidently a c c e l e r a t e d t h e i r development.

However, due to t h e n a t u r e of technologies developed, t h e period, which w e may c a l l h e r e a technology- development cycle, i s long, since i t c o v e r s r e s e a r c h and development, design, investment and m a r k e t p e n e t r a t i o n of a given technology.

An important development, s u c h as t h e TEXACO coal gasification technology, s t a r t - e d in t h e beginning of t h e 1940's [Nzetschke, 19861 and took more t h a n 40 y e a r s to achieve maturity.

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W e have decided to c o n c e n t r a t e o u r i n t e r e s t on t w o technological innovations f o r energochemical Lignite and coal processing namely PYREG and PYGAS respec- tively.

These t w o innovations are domestic, i.e. Polish, and t h e y f i t well t h e case under consideration. I t does not mean a t all t h a t w e d r o p t h e possibility of taking into account o t h e r technologies, such as t h e above mentioned TEXACO or e.g. those developed by Babcock [ Babcock I n t e r i m Report, 19863. Another interesting con- c e p t f o r t h e energochemical processing of coal and lignite i s based on coupling t h e steam power g e n e r a t i o n (gas-steam t u r b i n e ) with coal and lignite gasification p r o c e s s e s [Nietschke, 19861. This technology is in f a c t f o r e s e e n as a n integral p a r t of t h e NIES concept. I t seems, however, t h a t t h e o t h e r technologies should b e taken into account at t h e n e x t s t a g e when t h e r e s u l t s of the p r e s e n t analysis could b e used.

1-2. PYGAS Technology

Coal Pyrolysis in t h e Gas S t r e a m (PYGAS)* i s a technology which c a n potentially provide means for t r a c i n g a path to ecologically sustainable redevelopment through energo-chemical processing of coal and Lignite.

The FYGAS p r o c e s s t a k e s place in a hot g a s s t r e a m which forms a heating medium, a polydispersive dust solvent and a t r a n s p o r t medium. Coal of a g r a i n size 0-200 pan** i s f e d i n t o t h i s g a s s t r e a m . All g r a d e s of h a r d coal and lignite including caking coal and coal with v e r y high s u l f u r content c a n b e used in t h e p r o c e s s . The optimum t e m p e r a t u r e of pyrolysis (and p y r i t i c coal de-sulfurization) i s a b o u t 800 C, t h e time of pyrolysis i s in t h e r a n g e of f r a c t i o n s of one second, t h e t e m p e r a t u r e of gaseous heating medium a t t h e inlet to t h e mixing unit i s 1500

-

1800 C.

Coal d u s t i s f e d into a cyclone combustion chamber with or without additional oxygen. P y r i t i c coal d u s t i s added at a t e m p e r a t u r e of 350 C to t h e s t r e a m of hot g a s e s from t h e combustion chamber (1500

-

1800 C). The p r o c e s s of pyrolysis and coal de-sulfurization t a k e s place in a pipeline, resulting practically in t h e t o t a l removal of p y r i t i c s u l f u r . After pyrolysis, t h e de-sulfurized c h a r i s s e p a r a t e d from t h e pyrolysis p r o d u c t s in a cyclone and is s t o r e d in a tank from where i t i s d i r e c t l y f e d to conventional dust b u r n e r s of a boiler. The pyrolysis g a s c a n b e used for e n e r g y g e n e r a t i o n or as a r a w material f o r t h e chemical industry, a f t e r de-dusting and purification from H 2 S and w a t e r . Full _tarcracking e n l a r g e s t h e yield of t h e resulting pyrolysis g a s .

Various versions of PYGAS a r e in existence. The t w o m o s t prominent ones d i f f e r from e a c h o t h e r by a n oxygen g a s s t r e a m in o n e and a n a i r g a s s t r e a m in t h e o t h e r .

PYGAS units are r e l a t i v e l y simple and c h e a p to install in existing power plants, and are cost effective in t h e i r operation. I t has been estimated t h a t t h e cost of installing PYGAS will amount to no more t h a n a n additional 10% of investment costs of a conventional power station. The PYGAS p r o c e s s i s c h a r a c t e r i z e d by a v e r y high r e a c t i v i t y of c h a r , allowing i t to b e burned in a conventional dust b u r n e r which i s endemic to t h e Polish industry. Thus, t h e r e i s a n opportunity for adopting t h e PYGAS technology throughout t h e existing industry.

PYG AS may provide a n opportunity f o r tracing a n ecologically sustainable development p a t h in situations where t h e r e i s a high dependence on coal based e n e r g y production and Limitations to l a r g e new investments. The technology c a n

*

^Licensor:PROSXWCHEM Design OfPlce, CUwice, Poland. Patent No 87904.

*=pm =

lo6

^[m].

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potentially lead to a n increasingly efficient use of coal, while decreasing environmental impacts within c o n s t r a i n t s of t h e existing i n f r a s t r u c t u r e of t h e e n e r g y and chemical s e c t o r s .

The idea behind the s t r a t e g y of introducing PYGAS technology into t h e e n e r g y and chemical industries is backed by t h e f a c t t h a t i t meets a l l t h e c o n s t r a i n t s and t h e criteria t h a t w e r e formulated in Section 3. Specifically, t h e PYGAS technology c a n b e introduced into a power s t a t i o n without significant a l t e r a t i o n of t h e power plant. Since power plants are v e r y c a p i t a l intensive, i t means t h a t t h e PYGAS technology c a n be introduced as a means f o r modernization of existing power plants and t h u s help to avoid heavy investment. This will b e seen even b e t t e r in t h e case of lignite a n d t h e PYREG technology, which will be discussed later o n in more details.

1.3. PYREG Technology

PYREG i s a technology developed f o r Lignite processing. Essentially i t is d e r i v e d f r o m t h e PYGAS concept and i s based on f a s t pyrolysis in a s t r e a m of r e c y - cled gases.

R e s e a r c h of PYREG i s c a r r i e d o u t by ICRI

-

t h e INDUSTRIAL CHEMISTRY RESEARCH INSTITUTE

-

in Warsaw, [Rejewski et aL., lB85].

In f a c t , PYREG i s a key element of t h e so-called energochemical complex. The case of lignite will b e d e s c r i b e d in more detail because of i t s importance f o r t h e principal idea of t h i s p a p e r . Last but not l e a s t , t h e chemical a n d physical n a t u r e of lignite distinguishes positively this r e s o u r c e from coal.

The following guidelines w e r e assumed f o r technological and economic p r o p e r - t i e s of t h e lignite processing technology which r e s u l t e d in PYREG:

The p r o c e s s i s to b e as c h e a p as possible in t e r m s of FCI (Fixed Capital Invest- ment);

Liquid a n d g a s f e e d s b c k s f o r f u r t h e r processing are to b e obtainable, t h e p r o c e s s must yield t h o s e feedstock t o g e t h e r with solid fuel for conventional power units; and

The technology must not b e v e r y sophisticated (in t e r m s of h a r d w a r e and operation).

The PYREG technology i s c u r r e n t l y at a l a r g e scale l a b o r a b r y testing s t a g e [Rejewski et aL., 19851.

PYREG advantages in comparison to o t h e r methods of lignite pyrolysis c a n b e summarized as follows:

1 . Raw material for t h e p r o c e s s i s a typical boiler fuel (powdered lignite) used in existing power stations. This e n a b l e s simple and easy coupling of pyrolysis plant with power boiler facilities;

2 . Semicoke obtained from pyrolysis c a n b e fed d i r e c t l y to d u s t b u r n e r s of a b o i l e r (see PYGAS technology);

3. The de-sulfurization level i s in t h e r a n g e of 40-60% (it i s l e s s t h a n in t h e case of PYGAS f o r coal, b u t t h e burning s u l f u r c o n t e n t in Lignite usually d o e s not e x c e e d 0.5%; at least in Poland),

4 . Pyrolysis g a s obtained from t h e p r o c e s s does n o t contain s u c h impurities as N2) t h a t are difficult f o r s e p a r a t i o n ; and

5 . A high yield of c r u d e tar i s obtained (15-25 wt%, based on d r y lignite feed) as compared to t h e traditional low t e m p e r a t u r e lignite pyrolysis

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t h e Lurgi Spulgas p r o c e s s (10-12 wt%).

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Due t o t h e above p r o p e r t i e s , PYREG is a n ideal p r o c e s s for implementing t h e concept of a n energy-chemical s i t e . The idea i s p r e s e n t e d in Figure 1 .

Figure 1 . Basic Idea.

To i l l u s t r a t e t h e p r o p e r t i e s of t h e ENECHEM PYREG s i t e ( o r s h o r t ENECHEM s i t e ) , which in f a c t i n t e g r a t e s chemical and e n e r g y industries, a n example will b e used.

Let us consider a s u r f a c e lignite mine yielding about 18 million MTPY (burning s u l f u r c o n t e n t i s a b o u t 0.5X in raw lignite). Such a n output provides fuel sufficient for a power station of medium size (2160 MW

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6 blocks of 360 MW). The following were compared:

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E n e r g y Conversion Efficiency EC% b a s e d on n e t LHE'Lower Heating Value Lm:

Fixed Capital Investment FCI c a l c u l a t e d f o r t h e beginning of t h e 1980's;

Chemical production;

SO2 emissions (assuming t h a t S c o n t e n t in lignite i s 1%).

To o b t a i n a n equivalent amount of f u e l s p r o d u c e d by t h e ENECHEM s i t e , a modern t y p e of c r u d e oil r e f i n e r y h a s to p r o c e s s 1.5

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2.0 million MTPY of c r u d e oil ( t h e r e f i n e r y must h a v e a c a t a l y t i c c r a c k i n g plant). The yield of chemical i n t e r m e d i a t e s f r o m t h e ENECHEM s i t e i s a n additional asset. Table 6 c o m p a r e s t h e ENECHEM s i t e a n d a conventional power s t a t i o n

.

A s c a n b e s e e n from t h e t a b l e , t h e energochemical p r o c e s s i n g of Lignite in t h e energochemical s i t e at t h e cost of a b o u t 33% of t h e s i t e , yields o v e r 1 . 2 million MTPY of liquid f u e l s a n d a b o u t 130.000 MTPY of valuable chemicals. Moreover, a b o u t 400

- lo6

scm/yr* of s y n t h e t i c n a t u r a l g a s (SNG) i s o b t a i n e d , while r e d u c t i o n in SO, emission yielding almost 67,000 MTFY of s u l f u r .

Table 6. Comparison of Conventional Power S t a t i o n s a n d Energochemical S i t e s .

.scm/yr

-

standard cublc meter per year.

--

Coal consumption Power

.-

---

^ECE

FCI (1985 rnln USD)

Power s t a t i o n (860 USD/kW) Chemical p l a n t

Total

Chemical p r o d u c t s SNG (C1

-

C2) LPG (C3

-

C4) Gasoline Motor oil

Heating o i l ( l e s s t h a n 1% S ) Phenol

Crezols X y lenole

S u l p h u r 99.5% ( r e c o v e r e d ) S u l p h u r dioxide emission

Conventional P o w e r S t a t i o n

18 mln MTPY 6 X 360 = 2160 M W

35 % 1 858 mln USD

-

1 858 mln USD

- - - - - - - - -

180 000 MTPY

ENECHEM (energochemical s i t e

-

PYREG)

-

18 mln MTPY 4 X 360

=

1 4 4 0 M W

5 7 X 1 238 mln USD

600 mln USD 1 838 mln USD

400 mln s c m / y r 150 000 MTPY 430 000 MTPY 580 000 MTPY 75 000 MTPY 13 000 MTPY 27 000 MTPY 2 6 000 MTFY 6 7 000 MTPY 46 000 MTPY

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1 . 4 . PYREG and Waste U t i l i z a t i o n

European lignite, especially in c e n t r a l E u r o p e ( t h e GDR, t h e FRG, Poland, and Hungary) i s of earth-xylite type. The xylite content i s 2-10% o r a n a v e r a g e 5%. In t h e case of conventional power stations t h e y are wasted and cannot b e utilized. In t h e case of t h e example discussed above, i t means t h a t 900,000 MTPY of t h i s t y p e of wastes have t o b e dumped.

The PYREG technology enables utilization of xylites in a s e p a r a t e block of PYREG for xylites. Such a unit c a n produce:

260 000 MTPY of h i g h e r g r a d e fuels with L M V 28-30 GJPT;

65 000 MTPY of hydrocarbons, f a t t y acids, ketones; and 6 0 million scm/yr of chemical g a s feedstock.

2. POSSlBIS INTEGRATION

OF

FYGAS AND PY6UeG INTO THE EXrSTING INDUSTRIAL STRUCTURE

2.1. T h e Scope and the Goal

The t e r m "possible integration into t h e existing industrial s t r u c t u r e " must b e somewhat explained. By giving t w o examples of possible industrial s t r u c t u r e , which may emerge by implementing t h e innovative technologies, w e would Like to show wider technological impacts of t h e concept. This i s a kind of analysis which i s com- plementary to a macro analysis and fills t h e g a p between t h i s level and t h e e n t e r - p r i s e level. Moreover, i t cannot b e left to t h e industry alone [Dobrowolski et aL., 29851. The material p r e s e n t e d below gives r e s u l t s of a preliminary analysis based on real life cases modified only for obvious r e a s o n s

-

t h e p r o p o r t i o n s and relations remain p r a c t i c a l a n d are not only a n academic e x e r c i s e . I t i s e x p e c t e d t h a t this kind of analysis s u p p o r t e d by various computer p r o c e d u r e s being developed by JSRD c a n b e assembled into a comprehensive and disciplined methodology [DobrozuoLski at d. -851. This methodology could b e used as one of t h e tools in devising policies with incentives for t h e industry. Incentives which would motivate industry towards a development c o h e r e n t with t h e idea of ESD (see also Section 6).

2.2. Example of I n d u s t r i a l S t r o c t u r e with FYGAS

Figure 2 shows a schematic diagram of t h e existing industrial. s t r u c t u r e in a given region.

T h e r e are t h r e e s e p a r a t e e n t e r p r i s e s : Carbon disulfide (CSZ ) plants;

Sulphurmines;

Coal burning power stations; and

Coal mines (with high sulfurized coal, a b o u t 3 wtX).

The only existing link i s supply of s u l f u r f o r production of CS2

-

a n important intermediate for a r t i f i c i a l f i b e r s and various synthesis. In o r d e r to avoid total d i s a s t e r in a g r i c u l t u r e , a power station cannot use highly sulfurized coal, which are located i n t h i s region. But supply of b e t t e r coal i s not always possible because i t c a u s e s o t h e r problems and i n c r e a s e s costs substantially.

Figure 3 shows t h e above system integrating t h e PYGAS technology.

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Figure 2. Existing Structure.

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!3hd p u ~ s r e z q ! p e j Xlu!mu S u t o n p o ~ d syJom pojruaq3 : s a s ! ~ h s ) u a al-das aaJqq ~ J R u l e a ~ a J a u .UO!B~J JaqlouP u! eJn-+otu?s pp-+snpu! 8u!ls!xa a q l jo uro~8e!p o!qwuraqos R smoqs ) e ~ n 8 ! j

3- 9 l I Y ~ l ~IQ?JWPnl ~ l ^JOSaldmx3 '6'Z

!(lenj R sn qou PUP sesocLznd 1~o@qouqoal ~ o j Xtuo pesn -8 18-m-pu -8.a) s a o m o s a J p uo!pzq!ln -la?-+ag

: ~ ~ a 1 o X l a ~ e,ra q o e j j a e q ~ . s a ~ n l o n ~ l s 1 ~ i l u q o d PUR Suj-+slxa ueamlaq saouaJajjlp aqq saz!nzwwns a 1 q q

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Table 7. Comparison of Systems With and Without PYGAS.

Sulphur mine Power s t a t i o n System 1 :

Carbon disulfide plant

Input p e r Year

---- Output p e r Year

---

Natural g a s

Bituminous coal (3% S ) Sulphur

Carbon disulfide E l e c t r i c power

Sulphur dioxide emission System 2:

Carbon disulfide plant Sulphur mine

I n t e g r a t e d power s t a t i o n with PYGAS

1 888 200 MT 130 000 MT 15 600 000 MWh 1 1 5 1 5 3 000 s c m

7 389 000 MT

The only existing link i s supply of ethylene as a feedstock for PVC production.

Figure 5 shows e f f e c t s of possible integration of t h e above industry of t h e PYREG technology. Table 8 summarizes differences between existing and potential s t r u c - t u r e s . H e r e e f f e c t s a l s o c l e a r l y differ:

Possible saving of 1.5 million MTPY of imported c r u d e oil;

Natural g a s

Bituminous coal (3X S )

Sulphur ( r e c o v e r e d and minded) Carbon disulfide

E l e c t r i c power

Sulphur dioxide emission

Saving of n a t u r a l g a s , used in high d e g r e e as a fuel f o r o t h e r purposes;

and

Additional supply of important chemical intermediates.

29 233 000 s c m 9 469 200 MT

3.

METHODOJBGICAL ISSUES

Devising a methodology f o r dealing with a problem area of such a complexity i s a v e r y difficult t a s k in itself.

1 888 200 MT 1 3 0 000 MT 15 540 000 MWh

66 660 MT --

From t h e methodological point of view t h e r e are t w o l a y e r s which should b e r e g a r d e d :

-

Identification of s c e n a r i o a l t e r n a t i v e s ; and

-

Identification of technological a l t e r n a t i v e s .

When dealing with t h e above l a y e r s , t h e r e s e a r c h e r should position himself as e x p l o r e r and e x p e r t supporting a decision/policy maker who i s to evaluate options and a l t e r n a t i v e s as they r e s u l t f r o m t h e identification p r o c e s s . The above assumptions are i n f a c t basic for devising a methodology.

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Figure 4 . Existing structure.

i I

I 1

I I ⁱ¹ ^I

1 !

I i

i i

!

I N I T ~ ~ F E ! . I

' I

i i

! - ^. i ₁

U;'.,UU- I

'G! 1°F 3 f L ( j t L K i i L i i L K . 3 I

FEFINEFII'

i

I

!

I I ^I

j j I

i i

i

I P 'v

Fer:ii;zers 1 " g go,- t

L 1-1 '! t r Et hy innn 2 725 90-3 MTFT (fiolyath;;iane)

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Figure 5. Systems integration with

ENECHEM

and additional plant f o r xylite pro- cessing.

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Table 8. Comparison of Systems With and Without EFJECHEM

1: M2 f e r t i l i z e r s

+

FVC plants r e f i n e r y

power station Natural g a s Crude oil Lignite

N2 f e r t i l i z e r s FVC

Motor fuels*

Ethylene E l e c t r i c power

Sulphur dioxide emission Dumped xylite

--

2: N 2 f e r t i l i z e r s

+

PVC plants r e f i n e r y

ENECHEM s i t e (with xylite processing) Crude oil

Lignite SNG***

NPK f e r t i l i z e r s PVC

Motor fuels

*

Ethylene E l e c t r i c power Sulphur

Phenol Crezols Xylenoles

High g r a d e solid fuel (28-30 MJ/MT)

Fatty acids, ketones, hydrocarbons Medium BTU g a s

Sulphur dioxide emission

Dumped xylite

-

300 000 MT

**

14 040 600 MWh 180 000 MT 900 000 MT

300 000 MT

**

9 360 000 MWh 67 000 MT 13 000 MT 27 000 MT 26 000 MT 260 000 MT 65 000 MT 20 mln N m 3

46 000 MT

*Net m o t o r f u e l s output is t h e s e m e i n both systems end v e r i e s w l t h s p e c i f i c production progrem o f r e f i n e r y .

**52 000 MT used es input f o r PVC plant y l e l d i n g e n e t output o f 2 4 8 000 MTPY.

eeeSNC produced f r o m ENECHEM s u b s t i t u t e s n e t u r e l g e s .

A s i t c a n b e concluded from t h e above, w e are aiming towards a methodology based on t h e DSS (Decision S u p p o r t System) philosophy. From o u r e x p e r i e n c e in t h e design of industrial development s t r u c t u r e s w e have developed a n a p p r o p r i a t e methodology, it seems t h a t t h i s could provide a good point of d e p a r t u r e for developing a methodology for t h e case in question. MIDA stands for Multiobjective Interactive Decision Aid. Despite t h e fact t h a t this sounds like a strongly computer oriented tool, i t s philosophy i s much b r o a d e r . MIDA i s a system based on simulation models and a l l a d j a c e n t software [ DobrowoLski et aL., U85]. The e x t r e m e case i t could b e applied without a computer model at all, if such a situation would a r i s e .