COAL PROCESSING TECHNOLOGIES, THEIR

CHALLENGES AND ADDED VALUES

By:
Dr. Miftahul Huda*)
Dr. Edy Sanwani**)

*)
Mineral and Coal Technology Research Center (Puslitbang tekMIRA)
Ministry of Energy and Mineral Resource – Indonesia

**)
Department of Metallurgical Engineering
Faculty of Mining and Petroleum Engineering
Institute of Technology Bandung - Indonesia

4th Added Value Mining Indonesia - Conference, Workshop & Exhibition

Jakarta, 5 – 6 October 2010
 Coal Utilization Technology

DIRECT USE

LOW
- Heat Intensive
UPGRADING
RAN Electricity industry
K
COA CONVERSION: FUEL and
L DCL, ICL and other Chemical for
synthesisExports Domestic use

Formed coke,
Beneficiations and activated
other process carbon, CWM,
coal briquettes
 LRCs UPGRADING TECHNOLOGY
Teknologi Plant Developed by Methods Capacity
Location

UBC Arutmin, Satui, Kobe Steel, Ltd Slurry drying 1000 t/d
Kalsel
BCB Tabang east White Energy Flash Dryer 3500 t/d
kalimantan
MTE Victoria , CRC Australia Low temperature Lab scale
Australia & mechanical
(planned) Pressure
dewatering
K-Fuel Wyoming (USA) KFx Inc., USA Partial oxidation 100 t/d

HWD USA, Japan University of Pressurized 7.7 t/d

North Dakota, steam drying
JGC Japan
SYNCOAL Wyoming (USA) SMC mining Mild pyrolisis 1000 t/d
SGI Int.
MOISTURE READSORPTION AFTER DRYING
100
90
80
lignite
70
subbituminous
60
bituminous
50
)
%
(
on
ti
rp
so
ad
-
re
e
ur
st
oi
M
40
30
20
10
0
0 5 10 15 20 25 30 35 40

Time (days)
 ECO-UPGRADING TECHNOLOGY

LRCs

Air Heater
Turbine
Dry Coal
Air
Cooling
Tower
Blower
Pulverizer Boiler
Pump
Condenser
 The Economics of Coal Upgrading
Capacity: 1.7 million ton/year ; Capital Cost : USD 157 million; Equity 25%;
Coal Price : USD20/ton ( 1 USD ≈ Rp 9.500,-); Asphalt Petroleum : USD540/ton
Kerosene : USD 610/ton; Interest: 4.25% per year

Variable Cost per ton product:

- Coal 1.42 ton, @ USD 20/ton USD 28.431
- Asphalt 0.001 ton @ USD 540/ton USD 0.54
- Kerosene 0.005 ton @ USD 610/ton USD 3.05
- Coal for Power Plant 0.073 ton @ USD 20/ton USD 1.46
- Air Industry 1.2 ton @ USD 0.008/ton USD 0.01
=>Total Variabel Cost USD 33.49
Fixed Cost:
- Salary USD 0.44 If price of UBC product =
- Depreciation 6.67% USD 6.34
- Direct Over Head USD 0.2
USD 80/ton
- Plant Over Head USD 3.4
- Insurance 1% USD 0.95 The payback period is 2.2
- Maintenance 4% USD 3.81
=>Total Fixed Cost USD 15.146
year and IRR = 33.2%

Operational Cost USD 48.636 per ton product

 Application of Coal Gasification

Products Application
GT,GE fuel
ＣＯ、Ｈ 2
syngas Direct reduction iron
manufacture

Shift reaction H2 Fuel cell

ＣＯ、Ｈ 2 H2 for direct CTL
Brown coal CO2 Gas Ammonia (NH3)
Liquid
GTL Motor fuel
Motor fuel
DME
Synthesis Chemical raw material
Gasifier
ＣＯ、Ｈ 2 Methanol Motor fuel
Chemical raw material
Naphta Chemical raw material
 COAL GASIFICATION
Complete
Gasification Zone combustion
Mole (%)

Oksigen/(DAF coal)
Phase Diagrams of Coal Gasification
 Coal Gasification Technologies
(Types of Coal Gasifier)

Gasification Process Lurgi Tigar Exhaust

Texaco Shell

Char and
Bed
materials
Lignite
Air

Air Steam

Gasifier type Fixed bed Fluidized bed Entrained bed Entrained

bed
Operation press.
1-3 Mpa Ambient >3MPa > 3MPa
Operation Temp.
1,200 800-900 >1,400 >1,500
Oxidizer
Oxygen Steam Oxygen Oxygen
Coal Feeding
Residue Bulk High availability Slurry Powder

Moisture &ash Dry ash Dry ash Slag Slag

< 50% < 50% very low % very low
 Fixed Bed Dry Bottom (FBDB)
Lurgi Gasifier

Drying Zone
Gas Devolatilization Zone
Coal Char + CH4 + CO2+tar
Coal Gasification Zone
C + H2O CO + H2
CO + H2O CO2 + H2
...........
........ ........
........
.. C + CO2 2CO

.... Steam,
oxygen
Combustion Zone
C + O2 CO2
Gasifier Pressure 24 bar (2400kPa)
Coal size 1-5 cm
250 500 750 1000 1250 Oxygen 6.2Nm3, steam 28kg per 28Nm3
0
synthesis gas
Temperature (oC)
Per ton coal: 1300m3 gas;23 lt tar ;8.5 kg
Coal . Ash ammonia
Thermal eff.:75.5%
FLUIDIZED BED
Syngas Price Based on The Feedstock

Government support is in evitable

Coal price= 15 US$/ton
IRR = 6.5%
Coal
 Existing Coal Gasification Technology

• Gasifier Capacity: <2,5 ton coal/h(< 9000 Nm3/ h)

• Tecnology : Chinese gasifier
• User:
 Ceramic industry : PT Juishin (Medan, Semarang),
PT KIA (Bogor), PT Diamond (Bogor),
PT Idola (Bekasi)
 Tile industry: Jatiwangi (Jawa Barat)
 Rubber gloves industry: PT Golden Block (Medan)
 Super brick industry: PT Permata (Karawang)
 Lime burning: PT Coal Gas Indonesia (Sumbawa),
PT Krakatau Steel (Cilegon)
 PLTD-Dual Fuel : Puslitbang tekMIRA
 Scale Up SASOL-LURGI Coal Gasifier
90000
75

Crude gas production (m3/h)

Feed Coal (ton/h)

65000 54

34000
28

Name Mark III Mark IV Mark V

Numbers 13 83 1

Diameter 3.7 m 5.7 m 8m

Year of
Installation 1955 1978 1980

tekMIRA
 Coal Liquefaction Technology
Direct Coal Liquefaction (DCL)
CH4
T=450oC
CO
H2 O
PH2=150 bar
CO2

In-Direct Coal Liquefaction (ICL)

1. Coal to Gas
O2 H2O
Coal CO+H2+CO2+CH4+H2S+Tar + Phenol
P=20-30 bar
T=1000oC
2. Gas to Liquid
Product Quality of ICL and DCL Process
PRODUCTION COST OF DCL PROCESS USING SEVERAL

P R O D U C T IO N C O S T O F D C L
TECHNOLOGIES

(U S D / B B L )

70

60

50

40

30

20

10

0
H-Coal BCL ITSL CMSL (NG) SH

H-coal, ITSL (Integrated Two-Stage Liquefaction ) and CMSL (Catalytic Multi-Stage

Liquefaction) are USA technologies, BCL (Brown Coal Liquefaction) japanese technology
applied in Indonesia and SH (Shenhua Technology)
 FISHER TROPSCH PROCESS

Conventional Coal to Liquid Implementation

www.cctsa.co.za
FISHER TROPSCH PROCESS

www.cctsa.co.za
 CASH FLOW OF 80,000 barrel/day ICL PLANT

-5 -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12
Year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Assumptions ($/BBL) Cash flow in million US$
oil prices 104.0 107.6 111.4 115.3 119.3 123.5 127.8 132.3 136.9 141.7 146.7 151.8 157.2 162.7 168.3 174.2 180.3
sales 3260.9 3375.0 3493.2 3615.4 3742.0 3872.9 4008.5 4148.8 4294.0 4444.3 4599.8 4760.8
cash cost 50.0 51.8 53.6 55.4 57.4 1567.7 1622.6 1679.4 1738.2 1799.0 1862.0 1927.2 1994.6 2064.4 2136.7 2211.5 2288.9
depreciation (dep.) 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0
profit before tax 943.2 1002.4 1063.8 1127.2 1192.9 1260.9 1331.3 1404.2 1479.6 1557.6 1638.4 1722.0
corporate tax 282.9 300.7 319.1 338.2 357.9 378.3 399.4 421.3 443.9 467.3 491.5 516.6
profit after tax (PAT) 660.2 701.7 744.6 789.1 835.1 882.7 931.9 982.9 1035.7 1090.3 1146.9 1205.4
PAT plus depreciation 1410.2 1451.7 1494.6 1539.1 1585.1 1632.7 1681.9 1732.9 1785.7 1840.3 1896.9 1955.4
Loan remains 10500.0 9975.0 9450.0 8925.0 8400.0 7875.0 7350.0 6825.0 6300.0 5775.0 5250.0 4725.0
corpus 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0
Loan Interest 630.0 598.5 567.0 535.5 504.0 472.5 441.0 409.5 378.0 346.5 315.0 283.5
FCF after Repayment 255.2 328.2 402.6 478.6 556.1 635.2 715.9 798.4 882.7 968.8 1056.9 1146.9
deposit interest 10.2 13.1 16.1 19.1 22.2 25.4 28.6 31.9 35.3 38.8 42.3 45.9
interest balance 619.8 585.4 550.9 516.4 481.8 447.1 412.4 377.6 342.7 307.7 272.7 237.6
Cash Flow in Million US$
FCF for IRR -750.0 -2250.0 -6750.0 -5250.0 1420.4 1464.8 1510.7 1558.2 1607.3 1658.1 1710.6 1764.9 1821.0 1879.1 1939.1 2001.3
cumulative FCF -750.0 -3000.0 -9750.0 -15000.0 -13579.6 -12114.7 -10604.0 -9045.8 -7438.5 -5780.4 -4069.9 -2305.0 -484.0 1395.1 3334.2 5335.5
 CASH FLOW OF 80,000 barrel/day ICL PLANT (Continued)

13 14 15 16 17 18 19 20 21 22 23 24 25
Year
2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
Cash flow in million US$
oil prices 186.6 193.2 199.9 206.9 214.2 221.7 229.4 237.5 245.8 254.4 263.3 272.5 282.0
sales 4927.5 5099.9 5278.4 5463.2 5654.4 5852.3 6057.1 6269.1 6488.5 6715.6 6950.7 7193.9 7445.7
cash cost 2369.0 2451.9 2537.7 2626.5 2718.4 2813.6 2912.1 3014.0 3119.5 3228.7 3341.7 3458.6 3579.7
depreciation (dep.) 750.0 750.0 750.0 750.0 750.0 750.0 750.0 750.0 0.0 0.0 0.0 0.0 0.0
profit before tax 1808.5 1898.0 1990.7 2086.6 2185.9 2288.7 2395.0 2505.1 3369.0 3487.0 3609.0 3735.3 3866.1
corporate tax 542.5 569.4 597.2 626.0 655.8 686.6 718.5 751.5 1010.7 1046.1 1082.7 1120.6 1159.8
profit after tax (PAT) 1265.9 1328.6 1393.5 1460.7 1530.1 1602.1 1676.5 1753.6 2358.3 2440.9 2526.3 2614.7 2706.2
PAT plus depreciation 2015.9 2078.6 2143.5 2210.7 2280.1 2352.1 2426.5 2503.6 2358.3 2440.9 2526.3 2614.7 2706.2
Loan remains 4200.0 3675.0 3150.0 2625.0 2100.0 1575.0 1050.0 525.0 0.0 0.0 0.0 0.0 0.0
corpus 525.0 525.0 525.0 525.0 525.0 525.0 525.0 525.0 0.0 0.0 0.0 0.0 0.0
Loan Interest 252.0 220.5 189.0 157.5 126.0 94.5 63.0 31.5 0.0 0.0 0.0 0.0 0.0
FCF after Repayment 1238.9 1333.1 1429.5 1528.2 1629.1 1732.6 1838.5 1947.1 2358.3 2440.9 2526.3 2614.7 2706.2
deposit interest 49.6 53.3 57.2 61.1 65.2 69.3 73.5 77.9 94.3 97.6 101.1 104.6 108.2
interest balance 202.4 167.2 131.8 96.4 60.8 25.2 -10.5 -46.4 -94.3 -97.6 -101.1 -104.6 -108.2

FCF for IRR 2065.5 2132.0 2200.7 2271.8 2345.3 2421.4 2500.1 2581.5 2452.7 2538.5 2627.4 2719.3 2814.5
cumulative FCF 7401.0 9532.9 11733.6 14005.4 16350.7 18772.1 21272.2 23853.6 26306.3 28844.8 31472.2 34191.5 37005.9
IRR of ICL PLANT
IMPACT OF ICL PLANT TO NATIONAL ECONOMY
(CASE STUDY: CHINA)
PRODUCTION OF ARTIFICIAL CAKING COAL
 Thermal-decomposition Artificial Caking Coal
Non-coking Coal and Hydrogenation (ACC)
C100H92O16 (380℃ 　 1 ～ 8MPa ） C100H77O5
-OH
-COOH CO2
Thermal-decomposition -CH3
H2O de-oxidation
Stabilization,
Hydrogenation,
Hydrogen Condensation
Hydrogen-donor Solvent transfer Polymerization, ACC;
H + and Polyaromatization
of Radicals of Polymer Polyaromatics
H2 H- -H
H+ Hydrogen-donor

Mechanism
of ACC
production High-strength Coke

Scheme
Schemeof
ofartificial
artificialcaking
cakingcoal
coalProduction
Production
Block
BlockFlow
Flowof
ofartificial
artificialcaking
cakingcoal
coalProcess
ProcessLinked
Linkedwith
withCoke
CokeOvens
Ovens
Fuel
Gas

Coa Coal
Distillation Heavy
Conversion
l Unit
Unit Distillate

Coking
ASC Coal

CO
Solvent Non-coking G
Hydrogenation Coal Chemical
Unit s
Coke Separation
Blender
Hydrogen Ovens Unit Pitc
Separation and h
Hydrogen Refining Unit

Cok
e
ACC is blended with non-coking coal and fed to coke ovens. Hydrogen to produce ACC is
supplied from COG in steel industries.
 OTHER COAL PROCESSING TECHNOLOGY
Formed Coke Coal Briquettes

Activated Carbon from Coal Coal gas for diesel/gas engine

 CONCLUDING REMARKS

Coal processing industries will increase the

added value of coal and will give a significant
impact on the national economy and energy
security.

The government should give support to these

industries by creating regulation to promote
investment on the industries.
Thank You!
http://www.courierpress.com/news/2010/mar
/28/fueling-a-small-town/