EPA-AA-SDSB-82-06

                         Technical Report
                        Exxon  Donor  Solvent
                     Coal  Liquefaction Process
                                by
                           John McGuckin
                           February  1982
                              NOTICE

Technical Reports do not necessarily represent final EPA  decisions
or positions.  They are  intended to present technical analysis  of
issues using  data which are  currently  available.   The purpose  in
the release of such reports is to  facilitate the exchange of  tech-
nical information  and  to inform the public of technical  develop-
ments which may form the  basis  for a final EPA decision,  position
or regulatory action.

             Standards  Development and  Support  Branch
               Emission Control  Technology Division
           Office  of Mobile  Source  Air Pollution Control
                Office  of Air, Noise and Radiation
               U.S. Environmental Protection Agency

-------
                        Table of Contents

                                                              Page

I.   Introduction 	   1

II.  Background	1

     A.    History of Process	1
     B.    Project Status  	   2
     C.    Operation of the 250 TPD EDS Pilot Plant	2
     D.    Remaining Steps to Commercialization 	   2

III. Process Description	2

IV.  Coal Feed Flexibility	6

V.   Product Yields 	   6

VI.  Overall Energy Efficiency	9

VII. Economics	9

     1.    Illinois Coal	9
     2.    Wyoming Coal	13

VIII.  Summary	16

IX.  References	18

-------
I.   Introduction

     This  report  presents  the  technical and  economic aspects  of
the Exxon  Donor  Solvent  (EDS)  coal liquefaction process.   First,
background information  is provided by  discussing  the EDS  process
history, project  status,  and commercialization  outlook.   Next,  a
process description  is  provided along  with a  description of  the
EDS flexibility in liquefying coals of different rank.  Then,  the
product yields and overall  efficiency  are discussed.  Lastly,  the
economics of the EDS process are presented.  A discussion  of  feed-
ing different coals to the EDS plant will also be presented  in  the
section on economics.

II.  Background

     A.    History of Process

     The EDS process  was  developed by  Exxon as a private  venture
from 1966 until 1976.  During this  time Exxon  developed and  demon-
strated the process  in  laboratory  scale reactors up to 1 ton  per
day (TPD) of coal.  In July 1977, ERDA  (now  DOE) agreed to  fund 50
percent  of a  project  to  design   and  construct  a  $268  million
250-TPD pilot plant.  Construction of  this pilot plant in  Baytown,
Texas, was  completed  in March,  1980,  and  is to be  followed by  a
thirty month operational program.[1][2]

     B.    Project Status[3][3a]

     Engineering  design  and   technology   studies,   bench   scale
research and  small pilot unit  operation are  being  integrated  to
support operation  of the 250  TPD   coal liquefaction pilot  plant.
On June 2,  1981  an eleven  month first test operation on  Illinois
bituminous  coal  without  liquefaction  bottoms recycling  was com-
pleted.  During September,  1981  the pilot  plant was restarted  for
a  five month  operation  to evaluate  the  suitability  of  Wyoming
sub-bituminous coal and  to  incorporate  liquefaction bottoms  recy-
cling into  the EDS  process.  The bottoms recycling  is expected to
boost  the  output  of  higher-value  naptha  and  middle  distillates
while decreasing the amount of heavier lower-value products.

     After  this  period  of  operation,  a  decision  will  be made
whether to  run with  lignite or  to  rerun Illinois No.  6 with bot-
toms recycling, for a period  of  six months, until June,  1982.   At
this time DOE's participation in the pilot plant venture  will ter-
minate  unless  government funding  is  approved  for  ancillary pro-
grams  such as  partial  oxidation  and  a hybrid boiler  which  are
under consideration for bottoms processing.  This additional  fund-
ing is  not expected  to  be approved.   Another bottoms process,  a
planned 70 TPD FLEXICOKING prototype  program  has  been  cancelled
due to  budget  constraints.   After  June, 1982  the remaining  part-
ners of  the project will decide whether  they will  build a com-
mercial plant.

-------
                               -2-

     C.    Operation of the 250 TPD EDS Pilot Plant

     Sixteen  process  goals  were established  for the  first  four
months  of  operation  of  which  eleven were  reached.   The  goals
reached included  operation on 8 mesh coal,  demonstration of  the
ability to  dry coal  to  4 percent  moisture, achievement  of  a  50
percent on-stream factor, and several  fractionation  section objec-
tives.  The  five goals  not  reached include  steady  operations  at
conditions near  the design  coal  feed rate and a  1/2:1  solvent-to-
coal ratio, operation of  the reactor solids  withdrawal  system,  and
operation of the slurry drier.

     During the  first  four  months of operation the  plant  problems
experienced  were mechanical  rather  than process  oriented.    The
mechanical problems included erosion  of  the vacuum  tower  transfer
line, breakdown of the solids—handling systems and plugging of  the
slurry  heat  exchangers.   The   key  to  successful  operation  was
avoiding solidification  of  heavy materials  and  solids  plugging.
The  service  factor  was strongly  dependent  upon  the time  required
to  unplug  the  equipment  after  a coal outage due  to  solidifica-
tion-based plugging.

     A preliminary  observation indicated  a lower  plant  efficiency
than expected.  The reason for this has not been  determined.

     D.    Remaining Steps to Commercialization

     According   to  Exxon's   commercialization   estimates,   after
operation of  the 250  TPD EDS pilot  plant in the  1980-1982  time
frame,  a  design  basis  for  an  EDS  demonstration plant  could  be
available in  1982.[4]   With a three  year design and  construction
period,  construction  of  the demonstration  plant could  begin  in
1985 and be completed  in 1988  or 1989.  The  13,000  TPD demonstra-
tion plant would  be equivalent  to one train  of  a 25,000  TPD  com-
mercial  plant.    Each  train  includes  two  identical  liquefaction
lines.  Therefore,  the  commercial plant  would have  four  liquefac-
tion lines processing  6,250  tons of coal  per line.   As a result,
the  overall  scale-up  factor from  the  250 TPD pilot plant to  the
demonstration  plant  equals  twenty-five.   Design  of a  commercial
plant  could  begin  after the   demonstration  plant  operates  one
year.  This would mean beginning the design in 1989 and  construc-
tion in 1992.   Therefore  Exxon projects start-up  of  its first com-
mercial plant  in 1997.[4]  The  commercial  plant  start-up  date  is
dependent upon successful completion of all previous  steps.

III. Process Description[5]

     Block diagrams for two different EDS coal  liquefaction  com-
mercial designs  are shown in Figures  1 and 2. [5]   These  two  pro-
cessing schemes differ in the methods  used  to produce  the hydrogen
and  fuel  gas  required  by  the  plant.   These  differences  affect
plant economics and efficiency.

-------
             Figure   3.
EDS COMMERCIAL PLANT STUDY DESIGN UPDATE

         ILLINOIS COAL BASE CASE

_ SIMPLIFIED BLOCK plACRAM __




-* 	 -i 	 ,*•
Furnace t I Furnace
n"aot \ Recycle 1 HeaCl0t
Scpjr.ilo.s C.n 1 Separator
Recyclr 1 Compressor 1 |
Solvent ; 4
T ' -1 I
• '-- • .
NiDhlru +

Solvi:i<
• 	 • 	 : 	 1 	 .- p« 	 T APS
Solvent .4 — ' - --....- 	 	
Hydroijcnalion 1 • . . — .-— —
• €«ce»i Jolvc.t V/DC
Solvent . " S
< ^^ 1
U F/[. vr.o |

' . BTMS ^
'-
FLEXICOKI

Coil Preparation
t

Slurry Driers

- 	 Sim
Relm

Sim
Retro

Furnic< 1 Furnict
RMCIM Recyel. »««l0'
— *• Separitori Gis Sepiritort
Compretsor
Ntcfcie
-« 	 Sim
Relm

Sim
Refra

1 1 ' ' 1UIVIH
.
—
1 • — ' ™' • -— ^ Niphllw
Ap«. Solv.nl - -
-,Z— — — — »-*"- — "" ^^^^ **" "•" 1 -- !. — «. Solvent •
TFIUX j-*-
' ... - - { ". ~* Hy
-------
                                                                      FIGURE
                                                      EDS COMMERCIAL PLANT  STUDY DESIGN  UPDATE
                                                ILLINOIS COAL  MARKET FLEXIBILITY SENSITIVITY CASE
                                                               SIMPLIFIED BLOCK  DIAGRAM
                               TRAIN NO. 1
                                                                                                                     TRAIN NO. 2
                                                                       Coal Preparation
                            Makeup II
         Liquefaction 1
        	Fiinace	
                                                                         Slurry Driers
                                                                         (5 Units)
                                                                          Makeup H2
Liquefaction 2
                                                                     (6Gasiriers 4N/2S)
                                                                °2
            Reactor
                                              Reactor
»
Separators 1



r:.

i
Separ!
1 I
Liquefaction 3
  Furnace
                                                                                                      Reactor
Liquefaction 4
]  Furnace
                                                                                            Reactor
1
[ Separators |



.1 ;
L~~
I

*
Separators |


Intermediate
 Stooge
                   Fuel Oil
                                                                                        Fuel Oil

-------
                               -5-

     In  either  scheme,  the coal  conversion plant  receives  coal
from three mines via conveyor belts.  After  cleaning  the  coal,  the
coal is crushed and fed via enclosed belt  conveyors to  the  corres-
ponding slurry drier.   Coal to  be used  in the offsite boilers  is
conveyed to the  boiler crusher/pulverizers.   In the  slurry  driers
the  crushed  coal  is  first dried  to less than  4  weight  percent
moisture  (dry  coal  basis) and  then  slurried with  the hydrogen
donor  recycle  solvent.   The  slurry  is  then pumped  to reaction
pressure,  treated  with  hydrogen and  heated in  the  liquefaction
slurry  furnace  before  entering  the liquefaction  reactors  which
operate at 840°F  and 2000  psig.   There the  coal is liquefied  in
the  presence  of molecular hydrogen  and  hydrogenated  donor  sol-
vent.

     Products from the liquefaction reactor  are  separated   into  a
gas  stream and  a liquid/solid  stream.   The  gas  is  cooled  to
separate  vaporized  naptha,  scrubbed   to   remove  NH3,  H2,   and
CO ,  treated  with  makeup  hydrogen,   and   then  compressed   for
recycle to the liquefaction reactors.

     The  liquid/solids  stream and  the  condensate  recovered  from
the  gas  stream are  sent  to atmospheric and vacuum  fractionators
where naptha,  a spent solvent stream, and  vacuum  gas  oil  (VGO)  are
separated.   The  naptha  is sent  to  light  ends  processing  for
stabilization, the  spent  solvent  stream is sent to solvent  hydro-
genation prior to  recycling, and  the vacuum gas oil  is removed  as
the  bottom sidestream  of  the  vacuum fractionator and sent  to  pro-
duct tankage.  Vacuum  bottoms are sent  to FLEXICOKING  and/or  par-
tial oxidation.

     In the light  end  recovery section,  naptha from:   1)  liquefac-
tion,  2)  solvent  hydrogenation,  and 3) FLEXICOKING  are  fed to  a
conventional   light   end   system.     C^/C2  hydrocarbons   are
stripped  out  as   high-BTU  gas   (HBG)  product,  Cg  and  C^   hydro-
carbons are separated  as LPG product,  and the remaining C5/350°F
naptha stream is sent to product tankage.

     Solvent  hydrogenation  restores  donatable  hydrogen  to  the
spent solvent stream before it  is recycled to the slurry drier  in
the  liquefaction section.

     Two different  methods  may  be used  to generate hydrogen.   One
method, designated as the  Base Case  by  Exxon, uses  steam  reforming
of  C]^-C3  hydrocarbons  from the  light  ends recovery  section  of
the  plant  and  Cn-Co  hydrocarbons  from  the  hydrogen  recovery
unit  to  produce hydrogen.   Under this  route 100  percent   of  the
vacuum bottoms would go to FLEXICOKING.  The other method,  desig-
nated  the Market  Flexibility  Sensitivity  case  by Exxon,   uses  a
partial  oxidation  (POX)  process  to generate H2 from the  vacuum
bottoms.  This eliminates the need  for  steam reforming,  which  in
turn  allows  the   sale   of  C^/C2   hydrocarbons  as   HBG  and  C3
hydrocarbons as  LPG.   About one-half of the vacuum  bottoms, would

-------
                               -6-

be fed  to  the POX process  with  the rest being  fed to the  FLEXI-
COKER.   The  POX unit  gasifies all  carbonaceous material  fed  to
it.  Oxygen is supplied  to  the POX by three oxygen plants  (33-1/3
percent capacity/train).

     The Market  Flexibility  Sensitivity  case  has  been  shown  to
have both  an economic and  thermal efficiency  advantage  over  the
Base Case.   These  advantages will be  discussed  in the efficiency
and economic section of this report.

IV.  Coal Feed Flexibility[6][6a]

     Lab-scale work  by  Exxon  has shown  that  the  EDS process  is
suitable for  coals  of different  rank.  Figure  3 shows that  bitu-
minous,  sub-bituminous,  and lignite rank coals  can all be  lique-
fied  using  the  EDS  process.   This  figure also  shows  that  the
C3-1000°F  yields  for   the  various   coals  correlate  with  coal
rank.

     One way to increase  C3-1000°F liquid  yields is  to  recycle
the  1000°F+  vacuum  bottoms stream  to the  liquefaction  reactor.
Using  once-through  liquefaction,   bituminous coals  yielded  39-46
percent  liquids,  sub-bituminous  coals yielded  38  percent  liquids
and lignite yielded about 36 percent liquids (see Figure  3).   With
vacuum bottoms recycle,  liquefaction of  various coals resulted  in
liquid yields of 55-60 percent for bituminous coals,  44-50  percent
for sub-bituminous coals, and  47  percent  for lignite.  The  effect
of FLEXICOKING  the vacuum  bottoms is not  included  in the  above
liquid yields.

     The economics of  feeding sub-bituminous Wyodak  Coal as  well
as Illinois No.  6 coal to the EDS process will be discussed  in the
economics  section.    No  economics  are  available  for  a  lignite
feed.   In  this  report all  costs  are  based  on once-through  lique-
faction  as these were  the  only detailed costs that were  available
at this time.

V.   Product Yields

     For the  average  annual operation  of  the plant,  the  feedstock
(bituminous coal), product,  and byproduct rates for both the  Base
Case and the MFS case are  summarized  in Table  l.[5]   The  C3  LPG
and  C^  LPG  are  produced  as  finished   products.   In   addition
Ci/C2  high  Btu  gas  (HBG)   is  a  finished   product  from  the  MFS
case.   To  produce  transportation fuels  and distillate  as  major
products, the naptha and fuel  oil would require  further downstream
processing in an upgrading facility (refinery).

     The greatest difference between  the product  yields from the
Base  Case  and  MFS Case is  the  higher  yield  of  C^/C^  LPG  and
HBG in the MFS case.  This  higher yield is  the  result of  replacing
the  steam  reforming   of C^-C^   light  hydrocarbons  for   hydrogen

-------
CD
O
O
a
U.
o
O
O
O
o
     INCREASED LIQUID YIELDS OBTAINED WITH
      BOTTOMS RECYCLE COMPARED TO ONCE
                     THRU OPERATION
     60
    50
    40
    30
    20
    10
    0
                                             Liquefaction Only Yields
         [71 Coal Only

            Bottoms Recycle
"HI
1
f.
l|
>
»
/
;
f
A
J!







            Texas   Wyoming  Australian Pittsburgh  Illinois
          Big Brown  Wyodak  Wandoan  Ireland   Monterey
         ---Lignite
                      Subbituminous	Bituminous—
                              Figiirn 3

-------
                                -8-




                               Table 1




                    Feedstocks and Product Yields
HHV Base Case
Btu/lb ST/CD FOEB/CD*
Feedstock
Process Coal (Dry) 12,562 19,577 83,364
Offsite Coal (Dry) 12,562 684 2,915
Total Coal (Dry) 12,562 20,261 86,279
Purchased Power - - 6,937
(Energy Equiv. )
Total 93,215
HHV
MBtu/B B/CD FOEB/CD*
Product
High Btu Gas -
C3 LPG 3.85 81 53
C4 LPG 4.34 1,948 1,433
Naptha 5.41 18,418 16,889
Fuel Oil (350-650°F) 6.36 14,611 15,750
Residual Oil (650°F+) 6.41 14,611 15,874
Total 49,669 50,000
By-products
Sulfur (ST/CD) 890
Ammonia (ST/CD) 179
Phenol (B/CD) 294
MFS Case
ST/CD
16,256
1,204
17,460
_


B/CD
8,177**
2,731
1,649
14,995
12,052
11,125
50,729

934
110
298
FOEB/CD*
69,224
5,129
74,352
6,732

81,082
FOEB/CD*
8,177
1,782
1,213
13,750
12,992
12,086
50,000




     One FOEB =5.9 mBtu




**   FOEB.

-------
                               -9-

production, with  the partial oxidation  of about  one-half  of  the
liquefaction bottoms to produce  hydrogen.

     Much of  the  650-1000°F residual product yield  can be  elimi-
nated by  utilizing  bottoms recycle  liquefaction.   This serves  to
lighten the product slate.  Table 2  shows the yield  distribution
improvements which can be  obtained by using bottoms  recycle  lique-
faction along with  FLEXICOKING  and  coal partial oxidation instead
of  just  once-through  liquefaction  and   bottoms FLEXICOKING  as  in
the Base  Case. [7]   This  table shows that  the  residual oil can  be
eliminated and  the  naptha yield increased  to  45  percent  of  the
total product.  It has been roughly estimated that about a 20  per-
cent reduction in product  cost (with respect to the  Base Case)  may
be obtained by utilizing bottoms recycle liquefaction.[7]

VI.  Overall Energy Efficiency

     An analysis  of the  EDS process  indicated that  the thermal
efficiency is  53.64 percent  for  the Base Case  and 61.66 percent
for  the  MFS  case;  these  efficiencies  do not  include by-product
heating values.[5]   The  efficiencies are  listed  in  Table  1.   In
the Base Case 100 percent  of  the vacuum  bottoms are  sent to  FLEXI-
COKING, and hydrogen is  generated  by steam reforming of the  light
hydrocarbon gases  (C2~ and  LPG) produced  in the  plant.   In  the
MFS case, about one half  of the vacuum  bottoms  stream is sent  to
FLEXICOKING with  the remainder  sent  to a  partial oxidation  unit
for  hydrogen  generation.    In the Base  Case the  steam reforming
furnaces  were the  largest onsite consumer  of  fuel  gas  (low  Btu
gas), whereas  no  fuel gas is required  for  the partial oxidation
unit of the MFS case.  The differences  between these  hydrogen  pro-
duction processes  allows  for the recovery of  product GŁ- gas  and
LPG in the MFS  case.  However,  the MFS  case requires more offsite
coal than the Base Case since more steam must be generated to  off-
set the steam generated  by the  steam reforming  units of the  Base
Case.[5]

     Overall  the  increase in product heat due  to recovery of  the
GŁ-  gas  in the  MFS case more   than  offsets the  increased  input
heat due  to its  higher  electric power  and  offsite coal  require-
ments. [5]   The result is  a higher efficiency in the  MFS case  rela-
tive to the Base Case.

VII. Economics

     A.    Illinois Coal

     There have been a number of  reports  and papers  presented  in
the  literature  which  discuss  the  economics  of  the  EDS  direct
liquefaction  process or   simply  present  the cost  of  the EDS  pro-
ducts. [8]  [9] [10] [11]  These reports include the  ICF and ESCOE
studies.  All of these reports were based on the  1975/1976  study
design prepared by  Exxon  Research and Engineering  (ER&E).[12]   All

-------
               -10-
              Table  2

EDS Liquefaction Product Yields[7]
       (% of Total Yield)
Liquid
Ci-C2
C3-C4
Naptha
Distillate
Re sid
Once Through
Liquefaction/
Flexicoking
-
5.3
35.1
35.0
24.6
Bottom Recycle
Liquefaction/
Flexicoking/
Partial Oxidation
20.8
9.0
45.6
24.3
_

-------
                               -11-

of  the economic  figures  presented here  are  based  on  the most
recent  study  design  published  by  ER&E  in  March,  1981.[5]  This
recent  study  design covered the  conceptual  design  of an EDS coal
liquefaction commercial  plant  receiving  Illinois No. 6  bituminous
coal.  This design  depicts  the  state of  EDS technology in  1978  as
this  technology  might  be applied  in a  commercial  facility.[5]
About 20 man-years of effort were required for this  work.[5]

     This recent design  is  a complete update of the  earlier, less
extensive 1975/1976 design.[5]   It  represents  a  "detailed  study
design" for  the onsite  facilities, and  a  high-quality  screening
type  of study design for the  offsites.   The current capital cost
as reported by ER&E was  estimated to be  about twice  that of  their
1975/76  estimate.[5]   Reasons  for  this  increased  capital cost
include:

     1.    An  11  percent increase  due to  new  estimating  methods
for large-job field-labor overheads.

     2.    A 51 percent  increase  due to scope  changes in  the  study
design.   The   most   significant   scope  change  was  a  25  percent
increase in coal  feedrate to  liquefaction,  which required  larger
process units and added 19 percent to the  plant cost.

     3.    A  43  percent increase  due to   design  and  estimating
developments.

     For the purposes of  this report the  total  instantaneous  plant
investment as  estimated  by  Exxon was used  and then placed  on a
consistent  economic  basis  with  other  liquefaction  technologies
that have been analyzed  in  other reports.   This included resizing
the  plant  to  produce 50,000  FOEB/CD* of  liquid  products.   The
economic  assumptions,  including  the  plant  size  scaling  factor,
construction  schedule,  and  coal  cost, have been presented  in a
previous report.[13]   The costs  presented  for  the  Base  Case and
MFS Case are  based  on once-through liquefaction since no detailed
costs were available for bottoms recycling.

     Table 3 presents  an economic summary of the capital and pro-
duct  costs for  the  EDS  direct  liquefaction  process.   Costs  based
on two  different capital charge rates (CCR) (11.5 and 30 percent)
are shown for both the Base Case  and the MFS Case.  With  a  capital
charge  rate  of  11.5 percent,   the  Base   Case  product cost   is
$50.09/FOEB and the MFS  Case cost is  $42.16/FOEB.  With a  30 per-
cent capital charge rate  the Base Case product  cost is  $87.22/FOEB
and  the MFS  cost is  $71.83/FOEB.  As can be seen,  the  MFS Case
also has a lower capital  investment  than the Base Case.   Since the
MFS Case is both more efficient (61.8 percent vs. 53.6 percent)
*   One FOEB = one fuel oil equivalent barrel =5.9  MBtu

-------
                                  -12-
                                Table  3

                     Economic  Summary  of EDS  Costs
(Million of Dollars)

Total Instantaneous
Investment

Total Adjusted
Capital Investment

Annual Capital
Charge

Annual Operating
Cost

Total Annual Charge

Product Cost
$/FOEB of Product*

$/Million Btu of
Product
CCR =
Base Case
3315
3759
432
482
914
11.5%
MFS Case
2649
3004
345
424
769
CCR =
Base Case
3315
3700
1110
482
1592
30%
MFS Case
2649
2956
887
424
1311
50.09

 8.49
42.16

 7.15
87.22

14.78
71.83

12.18
     One FOEB = 5.9 million Btu.

-------
                               -13-

and more  economical than  the  Base Case,  it follows  that  the MFS
Case  has  been  selected  in this  report for  comparison  with other
liquefaction technology costs.

     Table 4  presents  a breakdown of  the  investment and operating
costs  for the  MFS Case.   The  total  instantaneous  investment  in
first  quarter  (1Q) 1981 dollars  is  $2.65 billion.   The real 1990
total  erected  cost has been estimated at  $3.0  billion  in  1Q 1981
dollars.  The  total annual operating  cost  per year is $452 million
before taking  a  by-product credit of  $28 million.  Coal represents
about  50  percent  of  the   operating   cost  while  repair materials
account for 21 percent and utilities 14 percent.

     Table 5  presents the  annual capital  charge and  the  various
operating costs  as a  percentage  of  product  cost.   With a  CCR of
11.5 percent  the annual  capital charge accounts for 42  percent of
the product cost while coal accounts  for  29 percent.   With  a CCR
of 30  percent  the  annual capital  charge accounts for 65 percent of
the product cost with coal accounting  for 17 percent.

     In addition to the Base  Case and MFS  Case there  are  three
additional  cases   being   investigated   by  Exxon   Research  and
Engineering,   for convenience  called   Cases  1,   2,  and  3. [7]   The
differences amongst  these  cases  involve the method  used for bot-
toms processing.   The  main  feature common  to these three cases and
different from the Base and MFS Cases  is  the recycling of the bot-
toms  stream   to  the  liquefaction  reactor.   In  addition  to  the
recycle stream,  Case 1 includes  coal  partial oxidiation to  produce
hydrogen and  bottoms  FLEXICOKING for   plant  fuel.  Case  2 is iden-
tical  to  Case  1 except bottoms  partial oxidation is  used  to pro-
duce the  plant fuel instead of  FLEXICOKING.  Case  3 employs coal
partial oxidation  for hydrogen  production  and  utilizes a  hybrid
boiler which  burns liquefaction bottoms to provide process heat.

     These alternate  bottoms  processing  routes  can significantly
affect  product  cost.   Relative  to  the  Base  Case,  product  cost
reductions for Cases 1-3 were roughly  estimated  as follows:

                   Case          % Cost Reduction[7]

                    1                   20
                    2                   22
                    3                   28

     B.    Wyoming Coal Case

     To determine  the  effect  of coal  type on  the EDS liquefaction
process, ER&E  performed  a  study  design for  sub-bituminous  Wyodak
coal.[12][14][15]   This  design  was  patterned  after the  1975/76
Illinois design,  but  done  in  less detail.[12]   Although  both  of
these  designs  are now outdated,  their comparison  should  give  a
rough  indication of  the  relative yields,  investments,  and  product

-------
                                  -14-
                                Table  4

               MFS Case, Investment and Operating Cost,
              	(1st Q 1981 Dollars)	
MFS Case
Investment Cost
(Millions of Dollars)

   Onplot Investment
   Offplot Investment
   ER&E Charges
Subtotal

   Contingency

Total Instantaneous
Investment

   Working Capital and Startup Costs

Total Instantaneous
Capital Investment

Operating Cost
(Millions of Dollars Per Year)

Capital Related

   Interest on Working Capital
   Repair Materials

Raw Materials

   Coal
   Catalyst & Chemicals

Salaried and Related Costs
   Wage Earners
   Salaried
   Overhead, Supplies, etc.
Utilities, Power

Gross Annual Operating Cost

By-product Credits

   Sulfur
   Ammonia
   Phenol
50,000 FOEB/CD
    1 Q 1981 $
      1281
       780
        60

      2121

       309


      2430

       219


      2649
       7.1
      114
       210
       8.6
      34.7
       9.1
       8.8
      59.7

       452
      12.8
       5.4
      10.0
Net Annual Operating Cost
       424

-------
                                -15-








                              Table 5




                 Product Cost  Breakdown,  %  of  Cost
Annual Capital Charge




Coal




Repair Materials




Utilities




Labor




Catalyst & Chemicals




Overhead




Other




Byproduct Credit
MFS
CCR=11.5%
large 42
28.9
12.4
8.2
5.3
:als 1.2
1.1
4.8
(3.9)
Case
CCR=30%
65
17.4
7.5
4.9
3.2
0.7
0.6
2.9
(2.3)

-------
                               -16-

costs.  The design  includes  a  FLEXICOKER to handle vacuum  bottoms
and a steam reformer  to produce hydrogen.  Both designs are  based
on feeding the  same quantity of dry  coal.   Yields for both  cases
are shown  in  Table 6.   The Wyoming  coal case has an overall  13
percent lower product yield  with the greatest difference lying  in
the 400°F+  fuel oil yield.   The lower  product  yield is expected
since Wyoming coal  has  a lower  feed carbon content  than Illinois
coal.

     From a material balance Exxon performed  on the Wyoming  coal
case,  it was expected that the major  process blocks for both  cases
would be approximately  the  same size and hence, the  total  invest-
ment for either an  Illinois or a Wyoming  EDS plant should be  about
the same.[15]    The  total  expected  cost for the Wyoming coal  plant
was calculated  to be about  96  percent  of that  for  the Illinois
coal plant with respect to the  1975/76  study design.[14]  The pro-
duct costs for both cases were estimated to be  about the same.[14]

VIII.   Summary

     The EDS product costs based on  the MFS case will be used  for
comparison with costs  from  other  liquefaction technologies.    The
real 1990 total erected cost for  this  case has been estimated  at
about  $3.0  billion  (1Q  1981  dollars).  The  total  instantaneous
capital cost has been estimated  to be $2.65 billion.   Total annual
operating cost before taking by-product credits is $452 million  in
real  1990  dollars.   Based on  a CCR  of  11.5  percent the  product
cost is $42.16/FOEB ($7.15/MBtu); based on  a CCR of 30 percent  the
product cost is $71.83/FOEB ($12.18/MBtu).

-------
                                -17-
                             Table 6

                Product Yields  for the Wyoming and
                   Illinois Coal EDS  Plants[14]
                   (lb/100 Ib.  Process Coal Feed)

                                Wyoming Case          Illinois Case

Products

   C3 LPG                            1.8                   1.8
   C4 LPG                            1.8                   2.0
   C5/400°F Naptha                  14.5                  15.6
   400°F+ Fuel Oil                   2.6                  27.3
Total                               40.7                  46.7

Byproducts

   Sulfur                            0.7                   3.9
   Ammonia                           0.4                   0.4

-------
                               -18-

                            References

     1.    Report to  Congress,  "Liquefying Coal for  Future  Energy
Needs, General Accounting Office," August 12, 1980.

     2.    "Controlling  Federal  Costs for  Coal Liquefaction  Pro-
gram Hinges on Management and Contracting  Improvements," Report  to
Congress, General Accounting Office, February 4, 1981.

     3.    Synfuels, September 4, 1981.

     3a.   Personal  Communication with  Paul  Musser,  DOE,  German-
town, Maryland, October 1981.

     4.    Green, R.C.,  "Environmental Controls for  the EDS  Coal
Liquefaction Process,"  Presented at  the Second DOE  Environmental
Control Symposium, Reston, Virginia, March 19, 1980.

     5.    "EDS  Coal Liquefaction  Process  Development," Phase  V,
EDS   Commercial   Plant   Study   Design   Update/Illinois    Coal,
FE-2893-61, March, 1981.

     6.    Epperly,  Wade,  Plumlee,   "EDS  Coal  Liquefaction  Pro-
cess,"  ER&E,   1980  NPRA  Meeting,  New  Orleans,  Louisiana,  March
23-25, 1980.

     6a.   Epperly,  Wade,  Plumlee,   "EDS  Coal  Liquefaction  Pro-
cess:  Development  Program  Status III,"  ER&E,  EPRI  Conference  on
Synthetic Fuels, San Francisco,  CA, October 13-16,  1980.

     7.    Epperly,  Wade,  Plumlee,  Donor  Solvent  Coal Liquefac-
tion, CEP, 77,  5, 73.

     8.    "Methanol  From  Coal:   Prospects and Performance  as  a
Fuel and as a  Feedstock," Prepared for the National Alcohols Fuels
Commission by ICF Inc., December, 1980.

     9.    Rogers,  et al,  "Coal  Conversion Comparisons,"  ESCOE,
July 1979, FE-2468-51

     10.   Eccles, DeVaux,  "Current  Status of  H-Coal Commerciali-
zation," Hydrocarbon Research, Inc., CEP  77, 5,  80.

     11.   "Comparison  of  Coal  Liquefaction  Processes,"   ESCOE,
April, 1978.

     12.   "Exxon  Donor  Solvent  Coal  Liquefaction   Plant  Study
Design," FE-2353-13

     13.   Heiser,   D.,   "The   H-Coal   and   SRC-II   Processes,"
February, 1982, EPA-AA-SDSB-81-14.

-------
                               -19-

                       References  (cont'd)

     14.   Fant, "EDS Coal Liquefaction Process  Development,  Phase
IIIA," Final Technical  Progress Report for  the  Period January  1,
1976 to June 30, 1977, ER&E,  Febuary,  1978,  FE-2353-20.

     15.   "EDS  Coal  Liquefaction  Process  Development,   Phase
IIIA," ER&E, October 1977, FE-2353-2.

-------