Ucalgary 2020 Shi Chenxu
Ucalgary 2020 Shi Chenxu
2020-05
Shi, Chenxu
Shi, C. (2020). Process simulation of methanol production from water electrolysis and
tri-reforming (Unpublished master's thesis). University of Calgary, Calgary, AB.
http://hdl.handle.net/1880/112061
master thesis
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UNIVERSITY OF CALGARY
by
Chenxu Shi
A THESIS
SUBMITTED TO THE FACULTY OF GRADUATE STUDIES
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE
DEGREE OF MASTER OF SCIENCE
CALGARY, ALBERTA
MAY, 2020
The alarmingly increase in anthropogenic CO2 emissions is widely considered as the root
cause of global warming. To mitigate this issue, CO2 utilization via methanol production
The proposed process utilizes carbon-free electricity to split water into O2 and H2; O2 is
collected for partial oxidation reaction in the TRM and H2 is collected for stoichiometric
number (SN) optimization. This process configuration eliminates the typical problem of
H2 deficiencies associated with methanol synthesis and allows for additional CO2 to be
converted. The main process flowsheet is developed with the well-known Aspen HYSYS
process simulator. Then the feasibility of this project is evaluated based on its techno-
capital expenditure (CAPEX), operating expenditure (OPEX) and GHG emissions of the
baseline plant are $774 million, $263 million/year and -0.14 kgCO2eq/kgMeOH,
respectively. In particular, water electrolysis process accounts for 34% of CAPEX and
54% of OPEX. A discounted cash flow (DCF) model combined with sensitivity analyses
show that a breakeven point can be reached with a methanol price of $491/ton. The
results from this study demonstrate that combining water electrolysis with TRM can
improve the sustainability and economic viability for methanol production. However, in
order for the process to become more financially attractive, further research and
development are necessary to drive down the costs of the current water electrolysis
technology.
i
Acknowledgements
I would like to express my most sincere gratitude to my supervisor Dr. Nader Mahinpey
student. It has truly been a great learning experience to work under his supervision.
I would like to thank my supervisory committee members and examiners, Dr. Roman
Shor and Dr. Hua Song, for taking their valuable time to review my thesis and offering
I would like to acknowledge Babak Labbaf for his continuous support on my research
I would like to thank the past and present members of the Energy and Environment
supportive, engaging and knowledgeable peers. This journey certainly would not have
I would also like to express my sincere appreciation to all the sponsors of our EERG
(NSERC), Canadian Natural Resources Limited (CNRL) and Devon Energy Corporation,
In addition, I would like to extend my gratitude to all the rest of the staff members in the
ii
day-to-day work behind the scenes created an efficient and welcoming environment for
all students.
Last, but most importantly, I would like to thank my parents, Wenqi Shi and Lihua Chen.
Without their constant love and support, I would not have been able to come this far.
iii
Dedication
iv
Table of Contents
Abstract ................................................................................................................................ i
Acknowledgements ............................................................................................................. ii
Dedication .......................................................................................................................... iv
List of Tables .................................................................................................................... vii
List of Figures .................................................................................................................. viii
Nomenclature ..................................................................................................................... ix
Chapter One: Introduction .................................................................................................. 1
1.1 Background ............................................................................................................... 1
1.2 Objective ................................................................................................................... 4
1.3 Thesis Structure ......................................................................................................... 5
Chapter Two: Literature Review ........................................................................................ 6
2.1 Chapter Overview ..................................................................................................... 6
2.1 Syngas Generation..................................................................................................... 6
2.2.1 Steam Reforming of Methane............................................................................. 7
2.2.2 Dry Reforming of Methane ................................................................................ 8
2.2.3 Partial Oxidation of Methane ............................................................................. 8
2.2.4 Auto Thermal Reforming ................................................................................... 9
2.2.5 Tri-reforming of Methane ................................................................................. 11
2.3 Methanol Synthesis ................................................................................................. 11
2.3.1 Kinetics and Modeling...................................................................................... 11
Chapter Three: Process Modeling ..................................................................................... 14
3.1 Chapter Overview ................................................................................................... 14
3.2 Tri-reforming System .............................................................................................. 16
3.3 Water Electrolysis System ...................................................................................... 18
3.4 Compression System ............................................................................................... 18
3.5 Methanol Synthesis System .................................................................................... 19
3.6 Purification System ................................................................................................. 21
3.7 Boiler Feed Water System....................................................................................... 22
Chapter Four: Methanol Production from Water Electrolysis and Tri- Reforming: Process
Design and Technical-Economic Analysis ....................................................................... 23
v
4.1 Chapter Overview ................................................................................................... 23
4.2 Abstract ................................................................................................................... 23
4.3 Introduction ............................................................................................................. 24
4.4 Technology Overview ............................................................................................. 27
4.4.1 Water electrolysis system ................................................................................. 29
4.4.2 Tri-reforming system ........................................................................................ 30
4.4.3 Compression system ......................................................................................... 31
4.4.4 Methanol synthesis system ............................................................................... 32
4.4.5 Purification system ........................................................................................... 34
4.5 Process Simulation and Results .............................................................................. 34
4.5.1 Process Description .......................................................................................... 34
4.5.2 Net energy efficiency........................................................................................ 42
4.6 Environmental Impact Evaluation ........................................................................... 44
4.7 Economic Evaluation .............................................................................................. 47
4.7.1 Economic Assumptions .................................................................................... 48
4.7.2 Capital Expenditure (CAPEX) ......................................................................... 49
4.7.3 Operating Expenditure (OPEX)........................................................................ 51
4.7.4 Revenue ............................................................................................................ 53
4.7.5 Economics Summary ........................................................................................ 54
4.7.6 Sensitivity Analysis .......................................................................................... 56
4.8 Conclusions and Recommendations........................................................................ 57
Acknowledgement ......................................................................................................... 58
Chapter Five: Conclusion and Recommendations ............................................................ 59
5.1 Conclusions ............................................................................................................. 59
5.2 Recommendations ................................................................................................... 60
5.2.1 Experimental evaluation ................................................................................... 60
5.2.2 Further cost reduction measures ....................................................................... 60
References ......................................................................................................................... 61
Appendix A: Re-arrangement of Kinetics Expression for Aspen HYSYS....................... 66
Appendix B: Discounted Cash Flow Analysis.................................................................. 82
vi
List of Tables
Table 3. 1 Process information for the feed streams ......................................................... 14
Table 4. 1 Kinetic expressions for Cu/ZnO/Al2O3 catalyst .............................................. 32
Table 4. 2 Electricity, heat consumptions of each subsystem in the plant........................ 43
Table 4. 3 List of baseline economic assumptions for this project investment ................ 49
Table 4. 4 Raw materials and utilities prices considered in this project ........................... 52
Table 4. 5 Economic Results Summary ............................................................................ 54
vii
List of Figures
Figure 1. 1 Basic block flow diagram of the conventional methanol synthesis process .... 3
Figure 2. 2 ATR reactor configuration ............................................................................. 10
Figure 3. 1 Main simulation flowsheet ............................................................................. 15
Figure 3. 2 Simulation sub-flowsheet: Tri-Reforming System ......................................... 17
Figure 3. 3 Simulation sub-flowsheet: Water Electrolysis System................................... 18
Figure 3. 4 Simulation sub-flowsheet: Compression System ........................................... 19
Figure 3. 5 Simulation sub-flowsheet: Methanol Synthesis ............................................. 20
Figure 3. 6 Simulation sub-flowsheet: Purification System ............................................. 21
Figure 3. 7 Simulation sub-flowsheet: Boiler Feed Water System ................................... 22
Figure 4. 1 Block flow diagram of the methanol synthesis process ................................. 29
Figure 4. 2 Process flow diagram of the methanol plant .................................................. 35
Figure 4. 3 BWR molar concentration profile (top) and temperature profile (btm.) ........ 39
Figure 4. 4 Column molar concentration profile (top) and temperature profile (btm.) .... 41
Figure 4. 5 Net energy efficiency comparison. ................................................................. 44
Figure 4. 6 Defined system boundary for direct and indirect GHG emissions ................. 46
Figure 4. 7 GHG emissions of the three different cases considered in this study ............ 47
Figure 4. 8 Distribution of CAPEX for the methanol plant .............................................. 51
Figure 4. 9 Distribution of OPEX for the methanol plant................................................. 53
Figure 4. 10 Cumulative discounted cash flow of this project ......................................... 55
Figure 4. 11 Sensitivity analysis using the tornado diagram ............................................ 57
viii
Nomenclature
AC alternating current
AR5 Fifth Assessment Report
ASU air separation unit
ATR auto-thermal reforming
AWE alkaline water electrolysis
BWR boiling water reactor
C&SU commissioning and start-up
CAPEX capital expenditure
CEPCI Chemical Engineering Plant Cost Index
CLC chemical looping combustion
DC direct current
DCF discounted cash flow
GHG greenhouse gas
GHSV Gas hourly space velocity
GHV gross heating value
GWP100 100-year global warming potential
HHV higher heating value
HPS high pressure steam
IGCC integrated gasification combined cycle
IPCC Intergovernmental Panel on Climate Change
IRR internal rate of return
LHHW Langmuir-Hinshelwood-Hougen-Watson
NPT net payout time
NPV net present value
NRTL non-random two-liquid
OPEX operating expenditure
ix
PEM proton exchange membrane
PFR plug flow reactor
POX partial oxidation
SN stoichiometric number
SRM steam reforming of methane
tkUCE ThyssenKrupp Uhde Chlorine Engineers
TRM tri-reforming of methane
WGS water gas shift
WHB waste heat boiler
x
Chapter One: Introduction
1.1 Background
Methanol is one of the most useful chemical compounds in modern society. By
developing relevant chemistry, methanol can be used for a great variety of purposes from
synthetic materials and chemicals. Some common products derived from methanol
include adhesives, foams, solvents and windshield washer fluids [1]. More recently, there
has also been a growing demand for methanol in the energy sector. In comparison to most
energy carriers, methanol is a relatively cleaner fuel. The molecular structure of methanol
Therefore, this allows methanol to generate much less air pollutants during combustion
[2]. Today, approximately 45% of the produced methanol worldwide is used for energy
related applications and this number is projected to grow in the upcoming years [1].
Olah with his original concept, the ―Methanol Economy‖ [3]. This concept is aimed to
gradually phase out fossil fuel consumption by switching to methanol as the default
[4]. The massive consumption of fossil fuel also generates a significant amount of air
pollutions including greenhouse gas (GHG) emissions. Therefore, for the long term
sustainability of global energy supply and prevention of climate change, it was identified
that methanol can be considered a suitable alternative. The volumetric energy density of
1
methanol is higher in comparison to hydrogen [5]. Methanol also has a relatively high
boiling point (64.7°C) and low freezing point (-97.6°C), which makes it relatively safe
for pipeline transportation and storage [6]. In the event of an accidental spill, methanol
would have less environmental impact compared to crude oil or gasoline since it can be
Finally, the process of methanol production often involves CO2 as a precursor, which is a
methanol is produced. The history of methanol production started with Robert Boyle
when he first isolated pure methanol using the process of wood distillation [8]. This
process was capable of producing relatively small volumes and is initially used for
lighting, cooking and heating purposes. However, as the demand for methanol grows for
industrial applications, a more economical approach was desired. In 1905, Paul Sabatier
and Jean-Baptiste Senderens discovered that copper can effectively catalyze the
decomposition of methanol. It was hypothesized that the same material under alternative
conditions can be equally effective for the production of methanol [9]. This work was
later expanded through patents to become the first synthetic pathway for large-scale
methanol production.
Since then, the methanol industry has evolved to become more diverse and efficient. A
variety of raw materials and pathways for methanol production are employed and many
more are under development for future applications [7], [8]. Figure 1.1 shows a generic
block flow diagram of the current process for methanol production. This process involves
2
the three basic steps of syngas generation, methanol synthesis and product purification.
The available feedstock used for the syngas generation process can include anything from
fossil fuels such as natural gas, crude oil and coal to renewable fuels such as biomass,
landfill and plant emissions [10]. The decision for choosing the appropriate feedstock
was vastly based on economic considerations. Since the early days, natural gas has been
the predominant feedstock for methanol production as they are relatively abundant and
natural gas was further reduced [11]. As a result, currently about 90% of the world’s
methanol are derived from natural gas [12]. The cost advantage of natural gas does not
necessarily apply to all geographical locations. In areas where natural gas is scarce or
unavailable, the cost of shipping and transportation may render the process too expensive
for implementation. Under such scenarios, other types of feedstock may become the
preferred choice for methanol production. An example of this is in China where coal
Unreacted Gas
Figure 1. 1 Basic block flow diagram of the conventional methanol synthesis process
As discussed, fossil fuels are considered non-renewable resources. Yet, it is still heavily
relied upon by the current methanol industry. In addition, the processes of converting
fossil fuels into methanol also typically generate a considerable amount of CO2
Iceland, where Carbon Recycling International (CRI) has constructed the world’s first
commercial methanol plant using only CO2 and hydrogen. The process implemented by
CRI is commonly referred to as the direct CO2 hydrogenation. The CO2 comes from an
adjacent geothermal power station where it is also supplying energy to make hydrogen.
This plant began operations early in 2012 and is currently able to produce 4000 tons of
methanol and recycle 5500 tons of CO2 annually [14]. One of the drawbacks of this
justified in Iceland due to its readily available geothermal energy, but for most other
places in the world, the process of making hydrogen through water electrolysis can be
highly expensive. Furthermore, many literature studies have suggested that direct CO2
process. The reason may be due to additional water formation on the commercial Cu/ZnO
catalyst which leads to inactivity and ultimately reduces the methanol yield [15], [16].
1.2 Objective
The main objective of this thesis is to develop a novel process for methanol production
tri-reforming of methane and water electrolysis, high quality syngas can be generated
while utilizing CO2 as a feedstock. This proposed design is set to achieve net negative
carbon emissions and reach far superior economic performance than direct CO2
hydrogenation.
4
1.3 Thesis Structure
This thesis contains elements of both manuscript-based and traditional thesis, all in
accordance with the University of Calgary FGS guidelines. The main body of this thesis
consists of three chapters (Chapters 2, 3 and 4). Chapter 2 is a literature review on the
current research progress and technologies available for syngas generation and methanol
plant through process modeling. This chapter contains all the key elements on simulation
setup, flow sheet developments as well as results and outcomes. Based on the process
simulation, Chapter 4 is a recently published technical and economic analysis paper that
focuses on CO2 utilization and methanol production. This work was primarily carried out
by Chenxu Shi under the supervision of Dr. Nader Mahinpey and with the help and
5
Chapter Two: Literature Review
objective. Since methanol production is a highly integrated process with multiple unit
operations, this literature review is only focused on the most relevant topics which are
syngas generation and methanol synthesis. The first section of this chapter looks at a
variety of syngas generation processes including steam reforming, dry reforming, partial
based on their principal operations as well as advantages and disadvantages. The second
section is focused on methanol synthesis, which can be further divided into topics
focused on reaction mechanisms and kinetics as well as reactor design configurations. All
of the information obtained from this chapter is used to guide decisions in choosing the
significantly based on the feedstock and manufacturing process. The method of syngas
ratio between the difference of H2 and CO2 and the summation of CO and CO2 [8]:
(2.1)
6
Ideally for methanol synthesis, SN should be equal to 2 or slightly higher [8], [17]. This
is due to the reaction stoichiometry of methanol synthesis. If the SN value is greater than
On the other hand, if the SN value is less than 2, this would result in hydrogen deficit.
Both cases are less than optimal for the overall productivity of methanol. In practice, it is
generation. In this process, steam is co-fed together with natural gas to a reformer furnace
typically operated in the range of 800 – 1000°C and 20 – 30 atm. [18]. The main
Since the overall reaction is highly endothermic, an external heat supply must be
available in order to drive the reaction forward. This is often achieved by burning a
portion of the natural gas feed, but this leads to substantial production and emission of
CO2 in the flue gas stream. Furthermore, the typical SRM process produces syngas at a
methanol synthesis loop and would have to be either purged or used as a plant fuel gas.
Nevertheless, SRM currently remains as the preferred choice for methanol production
7
2.2.2 Dry Reforming of Methane
Dry reforming of methane (DRM) or also known as CO2 reforming of methane is a
syngas generation process that has received much attention in literatures. The main
benefit of this process is that CO2 can be utilized as a feedstock, which has the potential
to reduce the impact of GHG emissions. The main reactions for DRM are [21]:
In many design aspects, DRM is similar to SRM. The overall reaction is also highly
endothermic which necessitates an external heat supply. Water gas shift is also present in
this process as a common side reaction. However, contrary to SRM, this process is more
introduced as a feed, the reduction of CO2 can result in additional coke formation [22].
Another drawback of this process is that the produced syngas has a low SN of 1. For
methanol synthesis, this would lead to H2 deficiency during operations and would
productivity.
generation. POX is a combustion process with limited amount of oxygen. As a result, this
creates incomplete combustion and produces carbon monoxide and hydrogen [23]. The
8
CO + ½ O2 ↔ CO2, ΔH⁰ = -283 kJ mol-1 (2.7)
The overall reaction is exothermic and the process can be either thermal (TPOX) or
catalytic (CPOX) [24]. No indirect heat supply is required. POX can be an attractive
option because it requires less energy and capital investment in comparison to SRM [25].
The produced syngas has a theoretical SN of 2, but the actual achievable SN is less than 2
because of unwanted oxidation reactions (2.7 and 2.8) that forms additional CO2 and H2O
[8], [26]. Nevertheless, the SN from POX is comparatively more suitable for methanol
production than either SRM or DRM. Despite the advantages, POX is not commonly
used by the methanol industry due to several drawbacks. First, POX generally requires
pure oxygen and the need for an air separation plant may offset the potential economic
advantage it brings. If air is used instead of oxygen, then nitrogen would have to be
separated downstream which can end up being more costly. Second, due to POX’s
exothermic nature, a lot of excess heat is produced and wasted which would result in
lower energy efficiency. Lastly, due to the typical high operating temperatures of POX,
This process has gained much popularity in the current methanol industry because it
eliminates the need of external heat supply. The reaction stoichiometry of this process is
the combination between SRM and POX reactions. The ATR reactor is generally divided
1. Burner – where the inlet gases are mixed together in a turbulent flame
9
2. Combustion zone – where the exothermic POX reaction takes place
The heat generated from the exothermic POX reactions are direct consumed in the
catalytic SRM reactions. The overall reaction can be expressed in the following manner
[28]:
CH4 +(2 – 2x) H2O + x (O2) ↔ CO2 + (4 – 2x) H2, ΔH⁰ = -35.6 kJ mol-1 (2.9)
generates significantly less GHG emissions than the traditional SRM. Furthermore,
because the heat produced from the POX reaction in the combustion chamber is
immediately consumed for the steam reforming reactions, this allows the process to be
more energy efficient than standalone POX. Another major advantage of the ATR
10
process is that the SN can be adjusted by changing the oxygen-to-carbon (O/C) and
steam-to-carbon (S/C) ratios [29]. This allows the ATR to be flexible at producing syngas
ATR is similar to POX in that it requires an air separation unit (ASU) and this will
is that CO2 is also introduced to the feed together with steam, oxygen and natural gas.
DRM and POX put together. The SN can be adjusted by altering the feed ratios between
oxygen, steam, CO2 and natural gas. Since CO2 is also being introduced in the feed, the
resulting SN would be generally less than 2 [30]. Therefore, unless there is an additional
source of hydrogen, using this process for methanol synthesis would be less suitable than
copper based catalyst. The reaction conditions are generally between 200 – 300°C and 50
– 100 bar. In the whole methanol industry, about 60% uses the Johnson Matthey process
and another 27% uses the Lurgi process [8]. Process design variations are mostly
the reaction kinetic mechanisms can help determine the optimal operating conditions and
11
catalyst arrangements. This study focuses on the commercial Cu/ZnO catalyst, which is
most widely used in the methanol industry. Currently in literatures, the reaction
mechanism involved in methanol synthesis is still an open issue for debate. It is generally
the macro kinetics for methanol synthesis can be described by three overall reactions
[32]:
A large number of kinetic equations have been proposed in literature. Different studies
have looked at various feed gas compositions and operating conditions. Amongst the
literature sources, Vanden Bussche and Froment’s rate equation is one of the most widely
used models for methanol simulation studies. Based on this reaction scheme, H2 and CO2
are adsorbed onto the copper active sites forming carbonate structures [32].
reactions before forming methanol. Between 15 to 51 bar and 180 to 280°C, this model is
able to adequately describe the effect of pressure, temperature and feed composition on
product composition.
2.3.1 Reactors
Since methanol synthesis via CO and CO2 hydrogenation is a highly exothermic process,
Currently, the methanol industry has adopted two common types of reactors, adiabatic
and isothermal [8]. The most common type of adiabatic reactor used in industry is the
12
low pressure quench converter developed by Johnson Matthey. This type of reactor
consists of multiple adiabatic beds installed in series. The beds are loaded with catalyst,
generally consisting of Cu/ZnO/Al2O3. In between each bed, either water or gas can be
injected to cool the reactants. This reactor configuration can handle a maximum capacity
The Lurgi converter or commonly referred to as the boiling water reactor (BWR) is the
most widely adopted reactor in the entire methanol industry. The design is a fixed bed
reactor similar to that of a shell-and-tube heat exchanger. The catalyst is loaded inside the
reactor tubes and cooling water is injected on the shell side. This type of configuration
allows for tight control on the reactor temperature profile and is able to generate high
13
Chapter Three: Process Modeling
carried out using Aspen HYSYS v10 simulator with 15 components and 3 different fluid
packages. Process information on the feed streams is shown in Table 3.1. Majority of the
process is modelled using the Peng-Robinson fluid package. For the purification system
in particular, the liquid phase separation between methanol and water is modelled using
the Non-random two-liquid (NRTL) fluid package. Lastly, the steam generation and
cooling water systems is modelled using the ASME steam fluid package. The simulation
converged with a mass balance error of 0.00% and an energy balance error of 0.04%. The
main simulation flowsheet is shown in Figure 3.1. Note that Figure 3.1 also contains 6
14
Figure 3. 1 Main simulation flowsheet
15
3.2 Tri-reforming System
Figure 3.2 shows the tri-reforming system modeled in Aspen HYSYS. Pipeline natural
gas, steam, post combustion captured CO2 and oxygen are fed together to the process to
produce syngas. The major unit operations are fired heater, pre-reformer, tri-reformer and
waste heat boiler. Since pipeline natural gas has already been pre-treated with sulfur
removal, it is not necessary to be considered again in this simulation. The fired heater is
modeled using a Gibbs reactor. It is supplied with purged gas from the methanol
synthesis loop and combustion air. There is no required make-up fuel gas in this process.
The fired heater acts as a multi-pass preheater for the reactants that provides a total heat
duty of 42 MW. Due to the absence of reliable kinetic data for reforming reactions in
literature, both the pre-reformer and the ATR are also modeled using the Gibbs reactor.
of 550°C. This process eliminates the C2+ hydrocarbons in the feed before it is sent to
the ATR. The ATR is an energy neutral process. The partial oxidation reaction provides
the heat required for SRM and DRM. The effluent from the ATR consists of mostly
syngas and is at a high temperature of 1046°C. A waste heat boiler is used to cool the
16
Figure 3. 2 Simulation sub-flowsheet: Tri-Reforming System
17
3.3 Water Electrolysis System
Figure 3.3 shows the water electrolysis system modeled in Aspen HYSYS. Since HYSYS
has limited capabilities with modeling electrolytes, only a simplified model was built to
represent the actual process. The major unit operations are a conversion reactor followed
specified 100% conversion to form H2 and O2. Since the reaction is highly endothermic,
energy is supplied in the form of electricity to the reactor. It is worth mentioning that the
efficiency cannot be explicitly specified in this reactor, which means that in order to
account for the total energy consumption of this process, it is necessary to carry out
manual energy calculations. Using the efficiency factor provided in literature [35], it was
determined that the total energy consumption for this process is 300 MW. The component
splitter separates the produced gases into separate streams of H2 and O2 at 99.95% purity.
dehydrated before it is mixed with hydrogen from water electrolysis. After the mix, the
syngas feed has a SN of 2.0 and is ready to be send for compression. The main unit
operations of the compression system are the two-staged centrifugal compressor for the
18
syngas feed and a single-staged centrifugal compressor for the recycled gas. The syngas
compressor is set to a pressure ratio of 2.2 per stage and a polytrophic efficiency of 80%.
The recycled gas compressor is set to match the outlet pressure from the syngas
compressor. Based on this configuration, the final outlet pressure is at 10670 kPa and the
main unit operations are the feed/effluent exchanger (E-400) and the boiling water reactor
(BWR). E-400 is a standard shell and tube heat exchanger that heats up the syngas to
250°C while cooling down the BWR effluent. The BWR is modeled using a plug flow
reactor with a heterogeneous catalyst reaction set. The selected catalyst for this model is
19
Cu/ZnO/Al2O3 with the well-known kinetics expression developed by Bussche and
Froment [32]. However, due to the specific input template on HYSYS, the kinetic
A for more details on the kinetics expression re-arrangement steps. The overall reactor
reaction occurs on the tube side and saturated water passes on the shell side to keep the
temperature profile under control. There are a total of 2700 tubes, each with a length of
7.0 m and a diameter of 0.035 m. This makes up the total volume of the reactor to be 18.2
m3 with a void fraction of 0.4. The single pass conversion for H2, CO, and CO2 are
15.7%, 27.3%, and 9.0%, respectively. The BWR effluent exits at a temperature of
275°C.
20
3.6 Purification System
Figure 3.6 shows the purification system modeled in Aspen HYSYS. The main unit
operations are the two separators (V-501 and V-502) and the distillation column (T-100).
V-501 is the main separator of the unreacted gases from the BWR effluent. It is operated
at 40°C and 10200 kPa. 96% of methanol and 98% of water is condensed and separated
from the unreacted gases. V-502 is a secondary separator operated at 40°C and at a
reduced pressure of 250 kPa. With this condition, most of the unreacted gases are
vaporized and separated from the methanol/water mixture. The last step of purification is
at T-100 where the methanol is separated from water. T-100 is contains 22 equilibrium
stages, a partial condenser and a partial reboiler. The feed is introduced at stage 12,
methanol is collected at the top and water is collected at the bottom. The final recovery
21
3.7 Boiler Feed Water System
Figure 3.7 shows the boiler feed water return system. Boiler feed water in this process is
sent to the WHB in the tri-reforming system and the BWR in the methanol synthesis
system. The water gets converted to steam and is mostly used for the distillation column
reboiler. Another small portion of the steam is used for syngas generation. There is an
excess amount of steam which can be used for auxiliary heating purposes. Once the
steam is used for heating, the returned condensate is pumped back to the BFW surge
drum and ready to be re-used. A make-up water stream is necessary since the BFW
system is not entirely kept in a closed loop, part of the steam is consumed for syngas
generation.
22
Chapter Four: Methanol Production from Water Electrolysis and Tri-
Reforming: Process Design and Technical-Economic Analysis
Accepted on Dec. 27, 2019 in the Journal of CO2 Utilization
Process Design and Technical-Economic Analysis‖, which was recently published in the
Journal of CO2 Utilization. No changes were made on the original contents aside from
page formatting and word editing. For more information on the estimation of CAPEX and
OPEX from this study, please refer to Appendix B and Appendix C. This study was
carried out at the EERG group supervised by Dr. Nader Mahinpey. He also provided
support on methodology development and technical reviews. Babak labbaf and Ehsan
Mostafavi provided useful feedbacks and suggestions on the process simulation. Chenxu
Shi was responsible for overall project conceptualization and implementation. This
manuscript proposed a novel concept for methanol production and completed with
4.2 Abstract
CO2 utilization via methanol synthesis can be an effective approach to mitigate the issue
combining water electrolysis with tri-reforming of methane (TRM). The proposed design
utilized carbon-free electricity to split water into O2 and H2; O2 is collected for partial
oxidation reaction in the TRM and H2 is collected for stoichiometric number (SN)
deficit associated with methanol synthesis and allows a substantial amount of CO2 to be
converted. The main process flowsheet was developed with Aspen HYSYS process
23
simulator and then the feasibility of this project was evaluated based on its technical,
(CAPEX), operating expenditure (OPEX) and GHG emissions of the baseline plant are
particular, water electrolysis process accounted for 34% of CAPEX and 51% of OPEX. A
discounted cash flow (DCF) model combined with sensitivity analyses showed that a
breakeven point could be reached with a methanol price of US$491/ton. The results
demonstrated that combining water electrolysis with TRM could achieve a sustainable
4.3 Introduction
The methanol economy proposed by Nobel Prize winner, Professor George A. Olah is a
concept that aims to ensure the long-term stability of global energy supply and the
adapted as a transportation fuel, an energy storage medium, and as a raw material for
most other energy carriers. The molecular structure of methanol consists of mostly
hydrogen atoms and no carbon-carbon bonds [36]. This allows methanol to generate
significantly less air pollutants such as NOx, SO2 and particulate matters during
combustion. In the case of an accidental spill into the environment, methanol would have
lower impact compared to the counterpart of crude oil or gasoline. This is because
methanol can degrade more rapidly through the processes of photo-oxidation and
biodegradation [8]. Owing to its wide range of industrial applications and environmental
benefits, it is of great interest for society to adopt methanol as the main energy carrier.
24
Today, about 90% of the world’s methanol comes from natural gas [12], a non-renewable
energy resource. For the long-term sustainability of the methanol industry and the world
at large, it is imperative to come up with feasible process designs that utilize renewable
literatures. One of the commonly suggested pathways is the direct hydrogenation of CO2
to methanol, where the CO2 comes from a carbon capture process and the H2 comes from
water electrolysis using renewable electricity (wind, solar, geothermal, biomass, etc.).
Van-Dal and Bouallou studied such a process configuration through the development of
an Aspen Plus simulation model [37]. Their work concluded that as long as the H2
produced is carbon-free, the methanol plant itself is able to mitigate large amounts of
CO2 emissions. In support of this finding, other feasibility studies have also led to similar
emissions [38], [39]. In fact, the concept of direct CO2 hydrogenation is not new to
industry as well. Some of the earliest methanol plants in the US used byproducts of
fermentation, which consisted of CO2 and H2, for methanol production [40]. In 2011,
Carbon Recycling International (CRI) of Iceland commercialized the world’s first CO2-
to-methanol plant using its readily available geothermal energy [41]. The same company
has already announced plans to construct additional pilot plants throughout Europe [42],
Despite having all the environmental benefits, direct CO2 hydrogenation to methanol has
its own challenges to overcome. Through a comprehensive review study by Bozzano and
Manenti, it was suggested that methanol synthesis based on water electrolysis is not an
25
attractive option due to its high energy consumptions associated with H2 manufacturing
[8]. Likewise, Perez-Fortes et al. have also identified that the current H2 production costs
would be too high for this process to be financially attractive [39]. The economic
viability of this process is based on the premises that electricity is available at extremely
low cost, which, for the short to medium term, is an unrealistic condition to achieve in
most geographic locations. In addition to the high costs associated with H2 production,
several studies have also pointed out other technical challenges associated with direct
CO2 hydrogenation. Pontzen et al. performed a study on the commercial Cu/ZnO catalyst
(Süd-Chemie) and reported that CO2 hydrogenation is slower and less competitive
compare to CO hydrogenation under typical process conditions [15]. Tijm et al. also
identified that higher CO2 concentration creates irreversible damages to the commercial
Cu/ZnO catalyst and the root cause of the problem is may be due to water formation
during the synthesis reaction [16]. Therefore, in order to prolong the lifespan of the
catalysts, the presence of CO plays an important role by actively consuming water via
water gas shift (WGS) to form additional CO2 and H2. This is also reflected during
industrial operations when Haldor Topsoe reported that a higher ratio of CO to CO2 can
increase reaction rate and conversion per pass and decrease catalyst deactivation rate
[17].
In order to overcome the challenges of direct CO2 hydrogenation, one of the new areas
being studied is oxidative methane reforming process coupled with water electrolysis.
Combining these two processes enables the generation of high quality syngas that is
optimal for methanol synthesis. Since water electrolysis generates oxygen as a byproduct,
it can be directly used in the natural gas reforming process through partial oxidation.
26
With this configuration, the costly air separation unit (ASU) can be eliminated.
Furthermore, since there is additional H2 available from water electrolysis, this allows
more CO2 to be utilized in the reforming process in order to balance the syngas
composition. Li et al. proposed this configuration through their study of plasma catalytic
reforming coupled with water electrolysis [45]. Despite being mostly focused on the lab-
scale performance of the plasma catalytic reformer (PCR), their work demonstrated that
high energy efficiencies can be achieved with this configuration. In this current project,
methane and alkaline water electrolysis for methanol synthesis. The combined
economic performance than direct CO2 hydrogenation. The main portion of this work is
performed utilizing Aspen HYSYS process simulator and the results from the simulation
are used to conduct further assessments on the technical, economic and environmental
performance. Specifically, the technical metrics are focused on overall CO2 conversion
and net energy efficiency, the economical metrics are focused on the capital expenditure
(CAPEX), operating expenditure (OPEX) and net present value (NPV), and the
environmental metrics are geared towards greenhouse gas (GHG) emissions. The results
obtained are placed in parallel comparison with published data of direct CO2
27
number (SN), which is a molar ratio of the difference between H2 and CO2 to the
(4.2)
slightly higher [8], [17]. Any significant deviation from a SN of 2 would lead to cases of
hydrogen surplus (SN >2) or hydrogen deficiency (SN<2). In the traditional steam
reforming of methane (SMR) process, the generated syngas typically has a SN of 2.8 to 3
[8]. As a result, this creates excess H2, which is then usually recycled to the reformer as
fuel gas. Another emerging trend in the methanol industry is to consider the possibility of
a stand-alone auto-thermal reforming (ATR) for syngas generation. However, since this
source of H2 to balance the stoichiometry would make the process more effective [9].
Hence, the general approach considered in this study is the combination of water
methanol. The process utilizes carbon-free electricity to split water into O2 and H2; O2 is
collected for the partial oxidation reaction in tri-reforming and H2 is collected for the
optimization of SN for methanol production. Figure 4.1 shows the block flow diagram of
the conceptual design. Within the battery limit of the central processing facility contains
28
Figure 4. 1 Block flow diagram of the methanol synthesis process
O2. The two most common types of commercially available technologies are alkaline
water electrolysis (AWE) and proton exchange membrane (PEM). AWE is a more
density than PEM, AWE offers longer stability, lower cost and higher power capacity
[46]. From a technical and economic standpoint, this study selected AWE to be the more
A typical AWE system consists of anode and cathode, electrolyte, diaphragm and power
supply. In general, caustic electrolytes such as potassium hydroxide solution are used to
avoid corrosion problems. The electrodes are typically made of nickel due to its
operational reliability and low cost [47]–[49]. The purpose of the diaphragm is to
separate the produced H2 and O2; this prevents the formation of an explosive gas mixture
29
and maintain high product purities. When a sufficient direct current (DC) is applied, the
This study considers the nominal 20-MW AWE module developed by ThyssenKrupp
Uhde Chlorine Engineers (tkUCE). Each module produces 4000 Nm3/h of H2. The
tkUCE AWE cells also have a wide operating range of 10% to 100%, which makes it
suitable for the intermittent nature of wind and solar electricity. The designed operating
pressure is slightly above atmospheric pressure and the cells are able to generate products
at >99.95% purity [35]. The complete installation package also includes an AC/DC
converter, gas compressors and temporary storage vessels for H2 and O2.
objectives of this study, tri-reforming of methane (TRM) was selected as the suitable
technology. The TRM process is designed to convert natural gas together with steam,
CO2 and O2. Instead of using an air separation unit (ASU), this process can take full
produced syngas ratio can be adjusted by altering the amount of steam and CO2 fed to the
system [50], [51]. In comparison to dry reforming which also converts CO2, coke
30
The main reactor of TRM takes the identical form of an auto-thermal reformer (ATR)
with three reaction zones [27]: the burner where the inlet feed mixes in a turbulent
diffusion flame, the combustion zone where partial oxidation reaction (POX) occurs and
the catalytic zone where steam and dry reforming reactions (SRM and DRM) occur. For
the purpose of this study, a commercial Ni/Al2O3 catalyst is used in the main reactor and
To maximize the operating life expectancy of such a reactor, inlet natural gas must go
through feed pre-treatment. This process typically consists of desulfurization and pre-
contained in the feed to form H2S and is separated it from the main process. This prevents
catalyst poisoning in the main reactor and allows for longer operations without catalyst
reactions with steam thereby preventing soot formation and deposition in the main
reactor. Like the main TRM reactor, the same Ni/Al2O3 catalyst is also used in the pre-
reformer.
large quantity of syngas, the most common design is to use multi-staged centrifugal
compressor with inter-stage cooling. To prevent liquid entrainment and damage to the
31
4.4.4 Methanol synthesis system
The methanol synthesis process converts syngas into methanol. The reaction kinetics
considered in this study is based on the commercial Cu/ZnO catalyst commonly used in
the hydrogenation of CO2 [8]. Any presence of CO must first undergoes water gas shift
(WGS) to form CO2 and H2 before it can be converted to methanol [26]. For this reason,
Bussche and Froment [32] is adopted for reactor modeling. These kinetic expressions are
shown in Table 4.1. The overall kinetic reactions considered in this study are,
CO2 hydrogenation: CO2 + 3H2 → CH3OH + H2O, ΔH⁰ = -49 kJ mol-1 (4.8)
The study selected the widely used boiling water reactor (BWR) for methanol synthesis.
Since the overall reaction is highly exothermic, heat energy must be removed to
maximize product yield. The BWR is similar in design to that of a shell-and-tube heat
exchanger by which methanol synthesis reaction occurs on the tube side and water
vaporizes on the shell side. The tubes are filled with Cu/ZnO/Al2O3 commercial catalyst
pellets to speed up the reaction and the water from the shell side absorbs the heat
released. Such a reactor design keeps the temperature under control and generates high-
32
WGS:
Methanol Synthesis:
( ) [ ]
( )
( )
( )
T [K]
( ) ( )
P[bar]
( ) ( )
33
4.4.5 Purification system
The purification system separates the light end components and water from the methanol
product. In general, the system consists of a series of separator, flash drum and a
was followed to design the purification system. By altering the process conditions
developed with Aspen HYSYS v10 [53] using a combination of 3 different fluid
packages. Majority of the process is modeled using Peng-Robinson. NRTL is selected for
modeling the methanol-water liquid phase interactions in the purification system and
ASME steam is used for modeling the steam generation and cooling water systems. The
baseline production rate is 2095 ton/day, which is equivalent to the size of a commercial
scale plant. The final product stream contains grade A methanol (99.9wt%), which can be
used for various industrial purposes. The designed overall conversion of C1 and CO2 are
97% and 87%, respectively. In order to meet the designed specifications, the tri-
reforming system must work synergistically with the water electrolysis system and
34
Figure 4. 2 Process flow diagram of the methanol plant
35
At the tri-reforming system, pipeline spec. natural gas [33] (1) is fed together with
superheated steam (2), post-combustion captured CO2 (5) and oxygen (11) from water
electrolysis. In this process, it is assumed that sulfur contents are negligible since the
natural gas feed composition follows pipeline specifications. The multi-pass fired-heater
initially heats the combined stream of natural gas and steam to 550⁰C in order for the pre-
reformer reactions to take place. The pre-reformed gas then gets combined with CO2 and
goes for a 2nd pass in the fired-heater to reach 650⁰C before it is sent to the TRM reactor.
Oxygen from water electrolysis is also pre-heated to 650⁰C and sent to the TRM reactor.
The total required duty of the fired heater is 42 MW which is met by burning the purged
gas from the methanol synthesis loop. Both the pre-reformer and the TRM reactor are
operated adiabatically and assumed to reach thermodynamic equilibrium over the catalyst
Ni/Al2O3 [27]. In order to determine the required catalyst volume for the reactors, a
conservative assumption of 3000h-1 gas hourly space velocity (GHSV) is applied [54].
The main difference is that for pre-reformer, the reaction is driven by the enthalpy of the
inlet feed whereas for TRM reactor, the reactions are driven by the heat released from
partial oxidation. In HYSYS, both of these reactors are modeled using the Gibbs reactor
composition shows that all of the C2+ hydrocarbons are consumed at the specified inlet
temperature. As for the TRM reactor, the equilibrium composition shows that 97% of the
C1 and 39% of the CO2 are converted. Reactor effluent (8) consists of mostly syngas in
number (SN) of 1.2, which indicates that additional H2 is needed for methanol synthesis.
Temperature of the reactor effluent is 1046⁰C. Heat energy is recovered by cooling the
36
reactor effluent down to 265⁰C through a waste heat boiler (WHB) to generate high-
The water electrolysis system is designed to supply O2 and H2 for the main process. The
main component of this system is a set of 15 modules of tkUCE 20 MW AWE. The entire
system has a total power consumption of 300 MW. Each AWE module is operated at
66.6% efficiency. Demineralized water (10) is initially fed to the 15 modules. With
carbon-free electricity, the water is split into O2 (11) and H2 (12) and the gases are
electricity is often derived from renewable energy source such as wind and solar,
temporary storage vessels are necessary to ensure that the plant can be operated at steady
state. Compressors will be included in the system to deliver the produced gas at 2500
H2 from water electrolysis is added to the TRM reactor effluent to create the optimal SN
of 2.0. The syngas (15) is fed through a two-staged centrifugal compressor with a
compression ratio of 2.2 per stage. An inter-stage cooler is used to prevent temperature
from going above 200 ⁰C during the second stage compression. In addition to syngas
compression, recycled gas (19) from the purification system is also sent here for re-
compression. The recycling ratio (stream 19/stream 15) is 4.67. The recycled gas
compressor has a compression ratio of 1.05. All compressors designed in the simulation
are centrifugal type and has a polytropic efficiency of 80%. The total power consumption
of the compression system is 19.3 MW. Together, the syngas and recycled gas are
37
combined (21) and delivered to the methanol synthesis system at a pressure of 10,670
kPa.
The combined feed gas (22) is preheated to 250 ⁰C through a feed gas/effluent heat
exchanger before introduced to the BWR. The BWR is modelled using a plug flow
reactor (PFR) with a heterogeneous reaction set (LHHW). The reactor contains 2700
tubes with uniform diameters and lengths of 0.035 m and 7.0 m, respectively. The total
volume of the reactor tube side is 18 m3. Inside each tube contains the commercial
pellets have a bulk density of 1140 kg/m3 and make up 60% of the total reactor volume.
During operations, the BWR is oriented vertically with the feed gas introduced at the
on the shell side of the BWR. 61MW of heat energy is absorbed from the reactions to
temperature profiles are shown in Figure 4.3. In a single pass, 15.7% of H2, 27.3% of CO
and 9.0% of CO2 are converted. The BWR effluent (23) at 275 ⁰C is cooled against the
reactor feed gas stream down to 113 ⁰C (24) before it is sent to the purification system.
38
0.20 0.70
0.15 CO
0.68
Molar Concentration
H2
0.10
CO2
0.66
0.05 CH3OH
H2O
0.00 0.64
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00
Reactor Axial Distance (m)
280
275
270
Temperature (°C)
265
260
255
250
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00
Reactor Axial Distance (m)
Figure 4. 3 BWR molar concentration profile (top) and temperature profile (btm.)
39
At the purification system, the BWR effluent is initially cooled down to 40⁰C (25) and
sent to the separator. 96% of methanol and 98% of water is condensed and separated (28)
from the unreacted gas. To prevent inert concentration build-up in the recycle loop, 98%
of the unreacted gas (26) is sent back for re-compression while the remainder 2% (27) is
purged and sent to the pre-heater as fuel gas (36). Downstream of the two-phase
separator, a throttling valve is used to reduce the pressure down to 250 kPa (29). Then a
flash drum is used to separate most of the remaining dissolved gas in the stream (31). The
remaining methanol and water mixture (30) is then preheated to 78⁰C (32) and sent to the
distillation column for final separations. The distillation column has 22 stages, a partial
reboiler and a partial condenser. The required heating duty of the reboiler is 65.0 MW,
which is supplied by the high-pressure steam generated in the earlier processes. The
required cooling duty of the condenser is 64.1 MW, which is supplied by 3,688 t/h of
cooling water. The feed is introduced at stage 12, water (34) is separated to the bottom
and methanol (33) is collected at the top. A vent gas stream (35) is also introduced at the
top of the partial condenser to separate trace amounts of impurities from the methanol
product. The molar concentration and temperature profile of the distillation column is
shown in Figure 4.4. Overall, the distillation column delivers methanol at 99.5% recovery
40
1.00
CH3OH
0.80
Molar Concentration
0.60
0.40
0.20
H2O
0.00
0 2 4 6 8 10 12 14 16 18 20 22
Distillation Column Stages
120
110
100
Temperature (C)
90
80
70
60
50
0 2 4 6 8 10 12 14 16 18 20 22
Distillation Column Stages
Figure 4. 4 Column molar concentration profile (top) and temperature profile (btm.)
41
4.5.2 Net energy efficiency
The net energy efficiency of this process is defined as the ratio between total energy
(30)
In this study, the total energy output is the gross heating value of methanol (GHV MeOH)
calculated using the higher heating value (HHV) property. At full plant capacity,
GHVMeOH is 546 MW. On the other hand, the total energy input includes a combination
of electricity, heat and natural gas consumptions. The gross heating value of consumed
natural gas (GHVNG) is 566 MW. The rest of the energy input coming from electricity
and heat consumptions in the plant are summarized in Table 4.2. As previously discussed,
heat energy is recovered from the waste heat boiler (WHB) and boiling water reactor
(BWR) by generating high pressure steam. Majority of this steam is used to provide
heating duty for the distillation column reboiler. Another portion is consumed as
reactants in the TRM reactor. The rest of the excess steam is not considered in the energy
efficiency calculations, but can be used for various on-site heating purposes.
The net energy efficiency of the baseline process was determined to be 62%. Figure 4.5
shows a comparative study with other processes reported in literatures. While the
baseline process implemented in this study is more energy efficient compared to direct
CO2 hydrogenation, there is still a considerable gap from the commercial natural gas
process. One of the key bottlenecks of the current design is the efficiency of water
42
developments can still be made on the process design by carrying out energy
Tri-Reforming System:
TRM Pre-heater Air Blower 967 -
Waste Heat Boiler - -63360
Steam Consumption (Gen. Energy) - 13650
Compression System:
Syngas Feed 1st Stage Compressor 7936 -
Syngas Feed 2nd Stage Compressor 8971 -
Recycle Gas Compressor 2363 -
Purification System:
Distillation Column Reboiler - 64760
Cooling Water Circulation Pump 295 -
43
100%
62% 63%
60%
52%
40%
20%
0%
Baseline process Coal to MeOH* NG to MeOH** CO₂/H₂ to
MeOH***
metrics used for determination of 100-year global warming potential (GWP100) are in
accordance with IPCC 2014 AR5 [56]. Figure 4.6 shows the defined system boundary of
this study, which include direct emissions from the methanol plant and indirect emissions
from natural gas extraction and processing, electricity generation and heat generation. In
order to estimate the indirect emissions, the following data were retrieved from an LCA
44
1. Conventional electricity generation is 0.407 kg CO2 eq./kWh
The total emitted CO2 is then calculated based on the following equation:
(41)
A comparative case study was conducted to evaluate the GWP100 differences between the
baseline process configuration and the conventional methanol production process. Three
• Case 1: Conventional methanol production using natural gas and steam. This
synthesis and product purification. The emission data for this process were
• Case 2: Baseline process configuration using electricity from the power grid. It is
assumed that energy source for electricity generation is based on the US fuel mix
generation processes only (i.e. wind, solar and nuclear) where zero emissions can
be assumed.
The results from the case study are shown in Figure 4.7. In this study, it is assumed that
CO2 fed to the process as raw material is counted as negative emissions. The
45
conventional process (case 1) emits GHG from all sources defined in the system
boundary and the total GWP100 is 0.67 tCO2eq./tMeOH. On the other hand, the baseline
process configuration (case 2 and case 3) use CO2 as raw material, require less natural
gas and does not require external heat supply. Nevertheless, despite having these
advantages, the overall GWP100 for the baseline process configuration would still be
higher than the conventional process if the electricity consumption is drawn directly from
the power grid. In order to realize the target of net negative carbon emissions, electricity
that a GWP100 of -0.14 tCO2eq./tMeOH can be achieved if the baseline process uses
570,000 ton of CO2 mitigated annually when the plant is operating at full capacity.
Indirect
emissions
electricity generation
Direct
emissions
Indirect
emissions
Natural Gas
Extraction/Processing Methanol Plant
Indirect
emissions
Heat generation
Figure 4. 6 Defined system boundary for direct and indirect GHG emissions
46
1.60 1.49
1.40
1.20
1.00
GHG Emissions (kg CO2 eq./kg MeOH)
0.80
0.60
0.40
0.40
Figure 4. 7 GHG emissions of the three different cases considered in this study
market conditions. Results from the process simulation flowsheet were used to estimate
the capital expenditure (CAPEX), operating expenditure (OPEX) and revenue. Based on
these estimations, a discounted cash flow (DCF) model was developed to determine the
net present value (NPV) of this process. A sensitivity analysis was performed on the DCF
47
4.7.1 Economic Assumptions
The main economic assumptions used for this study are shown in Table 4.3. This is a
grass roots plant based in North America. The specific location is set in the Gulf Coast,
Texas, United States for favorable economic conditions such as market access, utilities
prices and corporate income tax. This project is set to initiate in 2018 with 3 years for
construction and 1 year for commissioning and start-up (C&SU). During the
construction phase, it is assumed that 1st and 2nd year will use 50% of the CAPEX and
the 3rd year will use the remainder CAPEX. Once construction reaches 100%
completion, operations can be initiated. The start-up year is assumed to reach 50% of the
plant capacity and the following years are assumed to reach full plant capacity. The life
processes and technologies. In order to account for the time value of money, an annual
discount rate of 8.0% was applied. On top of that, an inflation rate of 1.9% retrieved from
the US Bureau of labor statistics in 2018 was assumed over the project lifespan [59]. In
terms of asset depreciation, a straight line method was adopted with 20% salvage value.
The plant asset is assumed to be liquidated after 20 years of operation. For pre-design
estimates, the working capital of this project was assumed to be 15.0% of fixed capital
expense, which is a typical value for traditional chemical plant operation [60], [61]. In
order to account for plant turnarounds and unplanned outages, an on-stream factor of
91% is assumed (The equivalence of 7,992 operating hours per year). The revenue
generated from the production and sales of methanol is subject to a 21.0% corporate
48
Table 4. 3 List of baseline economic assumptions for this project investment
Referenced Year of Project Initiation 2018
Project Life 20 years
Project Location Texas, US
Inflation rate 1.9%
Depreciation type Straight line with 20% salvage value
Income tax 21.0%
Annual discount rate, i 8.0%
Working capital (WC) 15.0% of fixed capital
Construction period 3 years
Start-up (C&SU) period 1 Year
Operating hours per year 7992 hours (91% on-stream factor)
[61]. The main project expenses are associated with the plant bare module cost, which
includes the purchase and installation of all process equipment within the battery limit.
Cost data were retrieved for standardized process equipment and adjusted based on size,
material of construction, pressure rating and the Chemical Engineering Plant Cost Index
(CEPCI) of 2018 [63]. For water electrolysis system and tri-reforming system, price
estimations had to be obtained from specific vendors [35], [64], because specialized
process equipment were used. The offsite facilities, project contingency and working
49
• Offsite facilities: 30% of plant bare module. This includes any auxiliary buildings,
• Project contingency: 30% of plant bare module. This accounts for unforeseen
• Working capital: 15% of fixed capital (See section 4.6.1). The fixed capital cost is
the summation of plant bare module, offsite facilities and project contingency.
The total CAPEX of this project is calculated to be US$774 million. Figure 4.8 shows the
break-down of CAPEX associated with each major portion of project investment. While
offsite facilities, project contingency and working capital are fixed percentages based on
the main project expenses, CAPEX reduction measures can be considered for each of the
plant subsystems. Among the subsystems, water electrolysis accounts for the most
significant portion of capital investment (about 62% of the plant bare module
investment).
50
0.12% 2.21%
0.08%
supplies, laboratory charges, patents and royalties. The indirect expenses include
overhead, local taxes and insurance. The prices of raw materials and utilities used in this
study are listed in Table 4.4. The catalysts used during plant operation include Ni/Al2O3
and Cu/ZnO and their price information were retrieved from NREL [65]. Since catalysts
degrade over time, they are assumed to be replaced every 5 years. Based on the size and
scale of this methanol plant, it was estimated that a total of 30 plant operators are
required for daily operations and the annual salary for each operator is US$62,380
51
according to the US Bureau of Labor Statistics [66]. The rest of the operating expenses
operating labor, patents and royalties is 2% of direct expense, plant overhead is 50% of
operating labor, supervision and maintenance, local taxes is 2% of fixed capital and
US$263 million/yr. Figure 4.9 shows that OPEX distribution for this project is dominated
by the cost of electricity consumption at 54.2%. This is an expected outcome since the
Raw Materials
Utilities
52
Electricity
2.95% 5.12% 2.56%
Cooling water
1.75%
0.78% Natural Gas
0.20% Demineralized Water
5.71%
CO2
7.77% Catalysts
Maintenance, supplies
0.81% 16.85% and lab
Patents&Royalties
Overhead
Local Taxes
1.30%
4.7.4 Revenue
Based on the current design considerations, methanol is the only source of revenue for
this project. From the historical data, it can be observed that the price of methanol is
highly volatile. For the purpose of this study, US$493.25/t was assumed based on the
average methanol price of 2018 according to Methanex [69]. When the plant is operating
at full capacity, the annual product sales revenue generated is US$343 million.
53
4.7.5 Economics Summary
A DCF model is developed incorporating all results and assumptions. The steps followed
in the DCF analysis are presented in Appendix D. Figure 4.10 illustrates the net cash flow
of this project over the entire lifespan from construction to full-scale operation. It is
determined from DCF that this project will have a net payout time (NPT) of 19.8 years
and a positive net present value (NPV) of US$11.4 million after 20 years of operation.
The internal rate of return (IRR) for this project is at 8.17%. Table 5.3 provides a
54
Figure 4. 10 Cumulative discounted cash flow of this project over 20 years of operation
55
4.7.6 Sensitivity Analysis
A sensitivity analysis is performed to determine the relative impacts of raw materials,
utilities and product prices on the NPV. The prices of each variable are deviated by +/-
20% from their baseline values and the respective impacts are reflected in the tornado
diagram in Figure 4.11. The order of significance is shown from the top (selling price of
methanol) to bottom (purchase cost of demineralized water). Based on the current model,
the breakeven selling price of methanol is US$491/t which is lower than the average price
of 2018. However, a drop of only US$2/t would take this project to an unprofitable
condition.
Several areas can be considered to improve the economic feasibility of this project. One
of the key driving factors is process improvements related to water electrolysis. Further
R&D efforts focused on improving the energy efficiency can lead to reductions in both
electricity consumption and equipment purchase cost. Another consideration for cost
solar and nuclear energy sectors can reduce the cost of carbon free electricity generation
down to a more affordable level. Lastly, improvements in carbon capture processes can
also provide additional savings. The current price of CO2 capture is US$86.40/t using the
amine absorption technology from a post combustion capture plant. However, with the
new integrated gasification combined cycle (IGCC) plants, the cost of CO2 capture can be
56
MeOH Price
Electricity Price
+20%
CO2 Price -20%
global energy demands. In order to overcome the technical and economic challenges of
primary objective was reached by the conceptual design of a commercial scale methanol
plant with net negative carbon emissions. Project feasibility was then evaluated based on
The major steps took in process design consisted of technology selections and flowsheet
developments using Aspen HYSYS v10. The heat and material balance data obtained
from simulation results were used to perform equipment sizing, reactor conversions, and
57
water electrolysis and methanol synthesis, the overall conversions of CH4 and CO2 are
97% and 87%, respectively. The net energy efficiency of this process was determined to
The environmental impact of this project was evaluated by considering the GHG
emissions of CO2 and CH4. The method of calculation included both direct emissions
from the methanol plant and indirect emissions from the consumption of raw materials
and utilities. Results have shown that if carbon-free electricity is used, this process is
The economic feasibility of this project was evaluated with DCF analysis using standard
project assumptions. The estimated CAPEX and OPEX of this project are US$774
million and US$263 million/yr., respectively. From the DCF model, it was determined
that a positive NPV of US$11.4 million can be achieved after 20 years of operation. From
the sensitivity analysis, it was shown that the selling price of methanol has the highest
impact on NPV and the breakeven point is at US$491/ton. With better technologies
available for water electrolysis, electricity generation, and CO2 capture, the economics of
Acknowledgement
The authors would like to extend their gratitude to the Natural Sciences and Engineering
Research Council (NSERC) of Canada for funding this research, through its Industrial
58
Chapter Five: Conclusion and Recommendations
5.1 Conclusions
The ―Methanol Economy‖ is a promising concept that ensures the long term stability of
global energy supply. The main challenge is to figure out a cost-effective solution in
in terms of sustainability and environmental benefits. However, the high costs of this
process may prevent it from further large scale implementations by the industry. To
overcome the challenges of direct CO2 hydrogenation, this study investigated the
synthesis.
Through process simulation and economic analysis, this study was able to demonstrate
several advantages of combining TRM with water electrolysis. One of the main
concerns on the stoichiometric number (SN). Since syngas produced by TRM on its own
would typically be deficient in H2 for methanol synthesis, but with the addition of H2
from water electrolysis, this problem can be effectively alleviated. The other main
advantage is that O2 from water electrolysis can be fully utilized in TRM. In direct CO2
vented to the atmosphere. By using the O2 for partial oxidation reactions in TRM, this
eliminates the need for an air separation unit (ASU), thereby effectively reducing the
capital and operating expenses. With these advantageous, the economic feasibility of this
59
economic parameters from 2018, this design is capable to achieve a positive NPV of
5.2 Recommendations
For the continuation and further expansion of this conceptual design, the author would
through laboratories and pilot plants. The idea of performing tests is to identify any
potential operating concerns. For instance, if the water electrolysis process is operated
based on solar or wind energy, then the whole process would be subject to a high degree
highly recommended to look for additional steps to reduce costs. In the process, the main
costs are associated with the water electrolysis process, which accounted for roughly 34%
of CAPEX and 54% of OPEX. With further improvements on water electrolysis energy
60
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65
Appendix A: Re-arrangement of Kinetics Expression for Aspen HYSYS
Original Kinetics:
The governing equations and kinetic rate expressions for methanol synthesis are retrieved
from Vanden Bussche and G.F. Froment:
WGS:
Methanol Synthesis:
[ ]
( )
( )
( )
( )
T [K]
( ) ( )
P[bar]
( ) ( )
66
In order to model this LHHW expression in Aspen HYSYS, the kinetic data must be re-
arranged in the following manner:
Re-arrangements:
Equilibrium Constants (
( ) ( (
67
CO2 hydrogenation:
( )
( )
( )
( )
( )
( ( ) ( ) )
( ) ( )
( ( ) ( ) )
The reaction rate by default from literature is expressed in . In HYSYS, the reaction
( ) ( )
( ( ) ( ) )
( ) ( )
( ( ) ( ) )
68
Water Gas Shift (WGS):
( )
( )
( )
( ) ( )
( )
( ) ( )
( )
( ) ( )
( )
( ) ( )
( )
Lastly, the kinetic parameters in the highlighted equations are used for HYSYS reactor
modeling.
69
Appendix B: Capital Cost Estimation
Calculation steps:
70
Equipment Sizing and Cost Estimation:
Water Electrolysis Cost for the water electrolysis system is taken directly from
System: tKUCE:
$375 million ±35%
Alkaline Water Off-site facilities such as water treatment, utilities and gas
Electrolyser compression are assumed to be 30% of the total cost. They are
subtracted from the total cost in order to get an estimate on the
bare module cost.
375 – 0.30*375 = 262
Bare module cost = $262,500,000
Tri-Reforming System: To account for economy of scale, the following formula is used
in the cost estimation of the tri-reforming system:
Tri-reformer New cost = Base cost * (New capacity/Base capacity)^n
Feed Gas Pre-Heater Cost data from Air Liquide are used:
Pre-Reformer 500,000 Nm3/h of syngas (160 mil)
Waste Heat Boiler 1,000,000 Nm3/h of syngas (280 mil)
ATR Effluent Cooler n = 0.637
Pre-heater Air Blower The tri-reforming system in the process has a net syngas
production of 207,000 Nm3/h
Bare module cost = $92,000,000
Syngas Compressor - Purchase price at $5.0 mil for 7936 kW (U&V Figure 5.30)
Stage 1 - cost index for 2018 is 603.1, U&V reference is 400
- Bare module factor for centrifugal carbon steel compressor is
2.5
Bare module cost = $18,843,750
Syngas Compressor - Purchase price at $5.5 mil for 8971kW (extrapolated from
Stage 2 U&V Fig 5.30)
- cost index for 2018 is 603.1, U&V reference is 400
- Bare module factor for centrifugal carbon steel compressor is
2.5
Bare module cost = $20,728,125
Recycled Gas - Purchase price at $1.75 mil for 2363 kW (extrapolated from
Compressor U&V Fig 5.30)
- cost index for 2018 is 603.1, U&V reference is 400
- Bare module factor for centrifugal carbon steel compressor is
2.5
Bare module cost = $6,595,313
Syngas Compressor - Purchase price at $450,000 for 7936 kW (extrapolated from
Stage 1 Turbine U&V Fig 5.20)
- cost index for 2018 is 603.1, U&V reference is 400
- Bare module factor for centrifugal carbon steel compressor
turbine is 1.5
Bare module cost = $1,017,563
Syngas Compressor - Purchase price at $500,000 for 8971 kW (extrapolated from
71
Stage 2 Turbine U&V Fig 5.20)
- cost index for 2018 is 603.1, U&V reference is 400
- Bare module factor for centrifugal carbon steel compressor
turbine is 1.5
Bare module cost = $1,130,625
Recycled Gas - Purchase price at $500,000 for 2363 kW (extrapolated from
Compressor Turbine U&V Fig 5.20)
- cost index for 2018 is 603.1, U&V reference is 400
- Bare module factor for centrifugal carbon steel compressor
turbine is 1.5
Bare module cost = $339,188
Syngas Compressor U = 1206W/m2K (from U&V Table 4-15a)
Inter-stage Cooler Overall UA [kJ/C-h] = 4.811E5 (from HYSYS)
Total heat transfer area = 111 m2
From U&V Figure 5.44:
Take fixed tube sheet HEX at 111 m2 with purchase cost at
$13,000
This process requires 1 HEX
Total purchase cost is $13,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 1.25
Bare Module factor = 3
Bare module cost = $58,793
Syngas Compressor Vessel Size (From HYSYS sizing calc.):
Suction Scrubber L: 8.0m x D: 2.3m V: 33m^3
From U&V Figure 5.44:
Equipment purchase cost = $13,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 2.5
Material factor (Stainless Steel) = 4.0
FBM = 20
Bare module cost = $1,206,000
Methanol Reactor Assume the reactor internal design is similar to a shell and tube
heat exchanger
# of tubes = 2700
Tube length = 7 m
Tube diameter = 0.035 m
Total estimated area is 2078 m2
extrapolate graph on U&V Fig 5.36
Purchase cost of equipment is $100,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 1.2
FBM = 3.5
Bare module cost = $527,625
Methanol Reactor U = 1859 W/m2K (from U&V Table 4-15a)
Feed/Effluent Overall UA [kJ/C-h] = 1.03E7 (From HYSYS)
72
Exchanger The total heat transfer area is estimated to be 1541 m2
Referenced from U&V 5.36:
2 fixed tube sheet HEX at 800 m2.
purchase cost at $40000 per HEX
Total purchase cost is $80000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 1.15
Bare Module factor = 3.5
Bare module cost = $422,100
Methanol/Water Tower cost = Vessel + trays
Distillation Tower Estimated Height and Diameter (from HYSYS Sizing calc.):
29 m x 5.3 m
From U&V Figure 5.44
Vessel Purchase cost: $250,000
Tray purchase cost: 35 * $1,200
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 1.2
Material factor (Stainless Steel) = 4.0
Bare module factor = 11
Bare module cost = $4,842,090
Recycle Gas Flash Vessel Size (From HYSYS sizing calc.):
Drum L: 13.3 m x D: 3.8 m V: 152 m^3
From U&V Figure 5.44:
Equipment purchase cost = $90,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (1.02E4 kPa) = 5.5
Material Factor (Stainless Steel) = 4.0
Bare Module factor = 40
Bare module cost = $5,427,000
Purge Gas Flash Drum Vessel Size (From HYSYS sizing calc.):
L: 8.4 m x D: 1.5 m V: 15.3 m^3
From U&V Figure 5.44:
Equipment purchase cost = $25,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (250 kPa) = 1.2
Material Factor (Stainless Steel) = 4.0
Bare Module factor = 11
Bare module cost = $414,563
Reactor U = 200 W/m2K (from U&V Table 4-15a)
Effluent/Column feed Overall UA [kJ/C-h] = 3.06E6 (From HYSYS)
exchanger The total heat transfer area is estimated to be 4260 m2
Referenced from U&V Figure 5.36:
Total purchase cost is $250,000 (5 HEX)
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (1.04E4 kPa) = 1.15
Material factor (Stainless Steel) = 3.00
73
Bare Module factor = 6.5
Bare module cost = $2,449,688
Reactor Effluent U = 200 W/m2K (from U&V Table 4-15a)
Cooler Overall UA [kJ/C-h] = 6.95E6 (From HYSYS)
Estimated heat transfer area = 8241m2
Referenced from U&V Figure 5.36:
Max area for fixed tube sheet HEX is 900 m2 with purchase
cost at $55000
Total purchase cost is $440,000 (8 HEX)
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (1.04E4 kPa) = 1.15
Material factor (Stainless Steel) = 3
Bare Module factor = 6
Bare module cost = $3,979,800
Distillation Tower U = 950 W/m2K (from U&V Table 4-15a)
Condenser Assume LMTD = 20
Overall duty [kJ/C-h] = 2.42E8 (From HYSYS)
Estimated heat transfer area is 3538 m2
Referenced from U&V 5.36:
Using graph extrapolation:
purchase cost is at ~$180,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 1.15
Material factor (CS/SS) = 1.7
Bare Module factor = 4.5
Bare module cost = $1,221,075
Distillation Tower U = 1400 W/m2K (from U&V Table 4-15a)
Reboiler Assume LMTD = 110
Overall duty [kJ/C-h] = 2.43E8 (From HYSYS)
Estimated heat transfer area is 438 m2
Referenced from U&V 5.36:
Extrapolate graph with purchase cost at $25,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 1.15
Material factor (SS) = 3
Bare Module factor = 6
Bare module cost = $316,575
Boiler Feed Water Vessel Size (From HYSYS sizing calc.):
Surge Vessel L: 6.5 m x D: 2.5 m V: 32 m^3
From U&V Figure 5.44:
Equipment purchase cost = $33,000
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (4250 kPa) = 3.5
Material Factor (Stainless Steel) = 4.0
Bare Module factor = 8.5
Bare module cost = $422,854
74
BFW Pump - Purchase price at $12000 for 22 kW (U&V Figure 5.49)
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (2300 kPa) = 2.5
Material factor (SS) = 1.9
Bare module factor = 9
Bare module cost = $162,810
Make-up Water Pump - Purchase price at $15000 for 28 kW (U&V Figure 5.49)
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (2300 kPa) = 2.5
Material factor (SS) = 1.9
Bare module factor = 9
Bare module cost = $162,810
Cooling Water - Purchase price at $40000 for 295 kW (U&V Figure 5.49)
Circulation Pump - cost index for 2018 is 603.1, U&V reference is 400
Pressure factor (400 kPa) = 1
Material factor (SS) = 1.9
Bare module factor = 5
Bare module cost = $301,500
Make-up Water U = 1300 W/m2K (from U&V Table 4-15a)
Preheater Assume LMTD = 112C
Overall duty [kJ/C-h] = 1.78E7 (From HYSYS)
Estimated heat transfer area is 34 m2
Referenced from U&V 5.36:
purchase cost is at ~$600
- cost index for 2018 is 603.1, U&V reference is 400
Pressure factor = 1.15
Material factor (SS) = 3.0
Bare Module factor = 6
Bare module cost = $54,270
75
Cost Summary:
76
Other Cost Factors:
Offsite facilities: 30% of plant bare module. This includes any auxiliary buildings,
product storage tanks, chemical supplies and miscellaneous utilities.
Offsite cost = 0.30 * $420,535,406 = $126,160,622
Project contingency: 30% of plant bare module. This accounts for unforeseen
expenses, unexpected delays, disruptive weather etc.
Fixed capital is the summation of plant bare module, offsite and contingency costs
Working capital: 15% of fixed capital. The fixed capital cost is the summation of
plant bare module, offsite facilities and project contingency.
Total capital cost is the summation of fixed capital and working capital.
77
Appendix C: Operating Cost Estimation
Calculation steps:
Direct expenses include: Raw materials (natural gas, demineralized water, carbon
dioxide), catalysts (Ni/Al2O3, Cu/ZnO), operating labor, supervision, utilities (Electricity,
steam, cooling water), maintenance and repairs, operating supplies, laboratory charges,
patents and royalties.
Location US Texas
Time 2018
Currency US Dollar
On Stream Factor 0.91
Direct expenses:
Natural gas Annual Consumption (from HYSYS):
3.05E8 kg/year
Pre-reformer Reactor
Assume GHSV = 3000 h-1
std volumetric flow = 77140 m3/h
Catalyst volume = 26m3
TRM reactor
Assume GHSV = 3000 h-1
Std volumetric flow = 200700 m3/h
Catalyst volume = 67m3
79
Total = 10
80
Operating cost summary:
Date 2019-11-28
Job Title Electrolysis + ATR Methanol Facility
Location US/CAN
Currency USD
On Stream Factor 0.91 333 days
81
Appendix D: Discounted Cash Flow Analysis
Inflation 1.9%
82
DCF formulas:
83
Table B2. Discounted Cash Flow Table
84