Cost efficient

Methanol Production
by Autothermal
Reforming
Esben Sorensen, Haldor Topsoe Inc.
IHS 32nd Annual World Petrochemical Conference
Presentation Outline

• A few words about Haldor Topsoe

• Methanol Process Optimization
• Methanol Technology Timeline
• Syngas from steam reforming (SMR)
• Syngas from 2-step reforming
• Syngas from autothermal reforming (ATR)
• Technology Development
• Economic optimization
• Risk abatement
• Economic Opportunities arising from State-
of-the-Art methanol production Fairway Methanol plant – North America´s largest
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Haldor Topsoe Company

• Established in 1940 by Dr. Haldor Topsoe. Private 100% family owned company Services:
• Global market leader in heterogeneous catalysis with a 75 year long track record • Catalysts
• ~2,700 employees in 11 countries across five continents. • Technology/licensing
• HQ in Lyngby, Denmark, HT Inc. located in Houston ~ 250 employees • Engineering
• Revenue about $1 billion. • Hardware
• Operation assistance

• Products for the Petrochemical, Refinery and Sustainables

business segments
• Founded on the belief that applied fundamental research
is key to build and retain a leading position in catalysis
Active phase Pore structure Catalyst Reactor • Up to 10% of revenue spent on R&D

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Fueling Technology and Catalyst sale through R&D and Service

Catalysts

Research Technology
and Licensing
development Catalyst & HW
sale

Technology
Client
̴ 90% catalyst resale

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Topsoe as Methanol Technology Licensor

• Leading process developer

• In the MeOH business since 1969
• Technologies for Efficient Syngas Generation
• Low S/C (down to 0.6)
• Low CAPEX
• Low Energy consumpt: <24 MMBTU/ST MeOH
• Low CO2 emission
• Compact synthesis
• Robust and cost effective methanol reactor and catalyst
• Tailor-made designs as well as standard designs available
• Integrated optimization of catalyst/reactor/process

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Methanol Process Optimization

Reforming accounts for about 40% of plant CAPEX

• Minimization of S/C-ratio
• Compact design
• Favourable CO/CO2
Key specifications for
syngas:
High quality syngas gives • (H2–CO2)/(CO+CO2)
ratio close to 2
• Compact methanol synthesis
• High CO/CO2 ratio
• Low compression costs
• Low CH4 content
• Low catalyst costs

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Selection of Syngas Technology for Methanol

Module S/C CO2 CH4

Steam Reforming (SMR)
Conventional tubular reforming ~3 2-3 High Medium

Two-step reforming
Combined tubular and oxygen-blown secondary ~2 1.5-1.8 Medium Low
reforming
Autothermal reforming (ATR)
Stand-alone oxygen-blown reformer 1.85 0.6 Low Low

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Methanol Production from Natural gas – Timeline

2,500 MTPD
1st methanol plant ATR
plant

Boiling water Two-step Standard co 3,000 MTPD 5000 MTPD Flexible co

SMR
reactor reforming prod. plant plant prod.

1969 1986 1992 1996 1999 2000 2003 2009 2014

SMK MK-101 MK-121 FENCE tech.

MK-151
FENCE

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Methanol Production by Steam Reforming
Steam
Sulfur removal
Steam

Methanol
Pre-reformer
reactor

Hydrogenator

Steam

Makeup
comp.

Steam reformer
Natural gas
Condensate
Light ends to fuel
Product Raw methanol
methanol

Water
Raw methanol storage
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Methanol Production by Steam Reforming

• Process as we know it today introduced in the sixties

• Produces syngas with
• Excess H2 leading to high energy consumption
• Low CO/CO2 ratio leading to low syngas reactivity
• High methane slip leading to low reactivity and high energy
consumption.
• Requires
• High S/C-ratio leading to high mass flux and high heat consumption
• Heat transfer at elevated process temperature leading to expensive
reformer tubes and high heat transfer area
• Suffers from scalability issues due to sheer size considerations.

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Methanol production by Two-step Reforming
Steam Oxygen
Sulfur removal
Steam

Methanol
Pre-reformer
reactor

Secondary reformer
Hydrogenator

Steam

Makeup
comp.

Steam reformer
Natural gas
Condensate
Light ends to fuel
Product Raw methanol
methanol

Water
Raw methanol storage
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Methanol Production by Two-step Reforming

• Process as we know it today introduced in the nineties

• Produces syngas with
• Stoichiometric composition leading to low energy consumption
• High CO/CO2 ratio leading to high syngas reactivity
• Low methane slip leading to higher reactivity and lower energy
cons.
• Enables
• Lower S/C-ratio leading to lower mass flux and heat consumption
• Heat transfer at lower process temperature leading to less
expensive reformer tubes and lower heat transfer area
• > 5000 MTPD MeOH in single line

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Methanol Production by Autothermal Reforming
Steam
Oxygen

Steam

Methanol
synthesis
Natural gas
Hydrogenation

Sulfur removal

Prereforming
Steam

reforming
thermal
Auto
Makeup Recycle
compressor compressor

Hydrogen
recovery

Purge gas

Raw methanol

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Methanol Production by Autothermal Reforming
• Advantages
• CAPEX and OPEX reductions due to elimination of steam
reformer and lower throughput for same production
• More reactive syngas leading to lower cost of methanol
synthesis

• The ATR enables

• Operation at S/C-ratio = 0.6 leading to smaller sizes and higher
CO/CO2 ratio
• Increased reforming temperature leading to lower methane slip
• Much simpler lay-out - Replacing steam reformer with fired
heater

• Stoichiometric syngas
• Obtained by means of HRU
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Technology Comparison – Typical USGC Natural gas

5,000 MTPD MeOH plant Two-step reforming ATR

Energy consumption, including
100 99
oxygen
ISBL cost including ASU 100 91

Catalyst cost 100 95

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Economy of scale

• Two-step reforming
Tubular reformer
• S/C ratio 1.5 - 1.8
• O2-demand: 0.48 MT/MT MeOH
• Steam Reformer

Cost
• ATR Oxygen plant
• S/C ratio 0.6
• O2-demand: 0.62 MT/MT MeOH
• Fired Heater and Hydrogen Recovery Unit Capacity
• Economy of scale
• Favors ATR
• Break-even depends on feed gas composition

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ATR – Industrial experience

• Oryx GTL, Qatar

• The largest ATRs in the world
• 2 x 180,000 Nm3/hr natural gas feed
• S/C ratio of 0.6
• 34,000 BPD diesel and naphtha
• Equivalent to 2 x 5,900 MTPD MeOH
• Start-up in 2006
• Topsoe supplied syngas section
• License
• Proprietary hardware
• Catalyst
• Engineering services

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Topsoe ATR Oxygen

Safe and innovative solutions Natural gas and

steam

CTS burner

• Innovative solutions improve reliability

• Burner technology
• Refractory linings
• Catalyst bed solution Pressure shell

Refractory
Combustion chamber
• Safe operation
• More than 70 years at low S/C ratio Target tiles

Catalyst

• > 99% operation availability for ATR unit Catalyst bed support

• Between major turnaround periods

• Excluding trips caused by events outside the
syngas unit
Syngas

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Hydrogen Recovery Units – Industrial experience

• Two Options for HRU:

• PSA units
• Membrane Separation processes
• PSA units:
• Vast experience base from hydrogen
plants at lower pressure
• Available at relevant pressure last
10+ years
• Membrane units:
• Industrial commodity since 2000
• Application to methanol synthesis:
• Haldor Topsoe has running references
with both types of HRUs

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ATR based MeOH plant – State of the Art Consumption figures

5,400 MTPD MeOH plant MM BTU/MT MeOH (LHV)

Energy consumption, NG feed & fuel 27.3

Electric power 0.2

Steam export (1.3)

Net consumption 26.3

O2 consumption 0.62 MT/MT MeOH

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Economic Opportunities – ATR based MeOH plant

Cost USD MM
5,000 MTPD MeOH plant
(incl. ASU)

Methanol Plant (incl. owners cost) 536

OSBL costs 327

Total project cost incl. financial exp. 1,079

Annual CAPEX 91
(70/30 Debt/Equity)

Annual OPEX 265

(3.5 $/MMBTU)

Return on investment – 1st year 42%

(280 $/ton MeOH)

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ATR based MeOH plant – Advantage of Oxygen supply Opportunities

Cost USD MM Cost USD MM

5,000 MTPD MeOH plant
Oxygen import Incl. ASU

Methanol Plant (incl. owners cost) 416 536

OSBL costs 254 327

Total project cost incl. financial

837 1,079
exp.
Annual CAPEX 70 91
(70/30 Debt/Equity)

Annual OPEX 280 265

(3.5 $/MMBTU)

Return on investment – 1st year 56% 42%

(280 $/ton MeOH)
Details can be obtained by
mailing to els@topsoe.com

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Summary

• Haldor Topsoe is a leading methanol

technology licensor and catalyst supplier
• Methanol production by ATR is State-of-
the-Art
• ATR operating at S/C ratio 0.6 is an industrial
reality

=
• Savings both on CAPEX and OPEX compared
to previous generations of methanol
processes
+
• Methanol production by ATR gives very
attractive return on investment
• US Golf Coast brings special
opportunities due to availability of OTF
oxygen supply

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Our Values

Business:
We go the extra mile to create lasting value
for our customers.
Science:
Our passion for science and innovation
strengthens our business.
People:
Topsoe is a great place to work and to have
worked.
Society:
We create sustainable solutions that make a
difference to the world of today – and
tomorrow.
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