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U.S. Department of Energy
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Technical and economic assessment of the IGT peat-gasification process. Engineering support services for the DOE/GRI Coal Gasification Research Program

Technical Report ·
OSTI ID:6335222
Kellogg has completed a moderately detailed design and cost estimate of a 250 billion Btu/Day grass-roots SNG plant using the Peatgas process. Results indicate that the cost of SNG would be $4.40/MM Btu, using a cost of $1.50/MM Btu for peat feedstock at 50% moisture. The SNG cost is reasonably competitive with that currently estimated for SNG from coal, and Kellogg would anticipate that capital cost reductions, via design optimization, could reduce the NSG cost to a level which is quite competitive. The cost of peat feedstock is a critical area of concern in evaluating economics of the Peatgas process. The value chosen for the base-case economics ($1.50/MM Btu) is in the higher portion of the price range considered typical by most investigators; the price of $1.50/MM Btu was chosen arbitrarily to represent a 50% increase over the cost of coal ($1.00/MM Btu) used by Kellogg in parallel studies, to reflect higher costs for land use and reclamation and for harvesting and dewatering of peat. In a study concurrent with that reported here, Kellogg found that one method of wet harvesting and mechanical/thermal dewatering yields a peat (50% moisture) cost which is unfavorably high and was therefore rejected for use as a base-case cost since much cheaper feedstock is apparently available by other harvesting/dewatering methods. The base-case cost of SNG is moderate somewhat by the values placed on the benzene and oil coproducts (i.e., $1.10 and $0.75 per gallon, respectively). The total of such credits amounts to about 39% of the gross operating cost; a reduction in value of the coproducts would adversely affect the cost of SNG. Certain technical factors are discussed: materials handling problems, high reactivity, low sulfur content, and limited gasification data.
Research Organization:
Kellogg (M.W.) Co., Houston, TX (USA)
DOE Contract Number:
AC01-78ET10324
OSTI ID:
6335222
Report Number(s):
DOE/ET/10324-T16; FE-2778-48; ON: DE83011006
Country of Publication:
United States
Language:
English