China's IGCC Turbine Runs at Chemical Firms         

IGCC - integrated gasification combined circulation, is now a popular word frequently concerned by power generating firms, coal companies, chemical makers, environmental protection organizations, and carbon capture & storage (CCS) leaders. Around 200 of attendees were convened by the IGCC Polygeneration in China 2009 conference held by Asiachem Consulting in Shanghai, March 26th-27th.
    "IGCC can improve significantly the energy effectiveness of traditional coal chemical industry," commented Xiao Yunhan, officer of Chinese Academy of Science in his presentation at the conference. "China plans to develop six sets of IGCC unit by Chinese own technology. It is expected to complete three IGCC demonstration units through 2010. There may be too many uncertainties in the aspect of governmental attitudes, the plan is not sure."
   Given the current technological level, the power cost from IGCC unit is high, it is difficult to construct successfully an IGCC demonstration unit, according to Ni Weidou, academician of Chinese Academy of Engineering. The direct combustion of coal is difficult to solve the greenhouse gases emission problem. IGCC is the necessary routine and will play an important role in China's energy distribution in the coming ten years, Ni said.  
   According to Asiachem Consulting, totally 17 IGCC power generating stations operate now worldwide. Other 55 IGCC polygeneration projects are planned or under construction, 16 in China. Yankuang Group now operates world's first coal based IGCC polygeneration system. China's second IGCC project will soon come on stream in Fujian Refinery & Petrochemical Co., Ltd. (page 9). Coal gasification is opening the door for clean use of coal.   
   Yankuang Group's IGCC system, commenced production in 2005, performed well in 2006 and 2007 with an annual net profit of around RMB300 million, disclosed Zhang Minglin, Deputy General Manager of Yankuang Group. This system is designed to produce 300 000 t/a of methanol and 220 000 t/a of acetic acid, supply 80 million watt of power and also help to reduce carbon dioxide emission by 117 000 tons per year. However, the system has been offline for two and a half months in the fourth quarter of 2008, which nearly offset the profit earned in the first nine months, reported Zhang at the conference.
   In the coming ten years, plenty of funds will be put into the electricity industry, commented in the presentation of Ni Weidou, the technological routines used through these funds will decide the coal use mode to meet demand for electricity in China through 2020.
   Almost all attendees from the electricity supplying company claimed for the governmental support in constructing IGCC. But both the first operated IGCC and the second one to start up are constructed by chemical makers. This emerging industry will be the competing focus between electricity companies and chemical makers in the near future. The electricity companies often controls coal resource and power consumption market and the chemical makers know how to construct an IGCC unit and earn money from it because IGCC is a chemical integrated unit rather than others. The chemical makers hope to beat out the monopoly on power supply.
  

Zhong Weike
April 2nd, 2008