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COAL to DIESEL |
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Introduction to Diesel
Synthetic products, as produced by the Fischer-Tropsch processes, whether from gas or coal feedstocks, have unique properties which will ensure a demand for them in the future. One of the key drivers for this demand is environmental pressure which ultimately relates to improved quality and premium products.
The mixture is fractionated to yield high quality diesel, naphtha and LPG, all of which are high value products. The diesel has a higher cetane value, lower CO2 content and produces less NOx and particulate emissions than conventional diesel. The same technology has also been applied by Shell, Texaco and others, using syngas derived from natural gas, and ‘off-the-peg’ synfuel package plants are available. The process plant for this development route will be large scale and relatively complex, so will take the longest to develop. As a result, it is likely that this route would be developed over a longer time scale than power generation or hydrogen.
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Superior Quality Synthetic diesel has essentially zero sulphur, a high cetane index (in excess of 70), and less than 5% PNA’s. One studyc has estimated that synthetic diesel will result in 40 to 50% reduction in hydrocarbon emissions, 9% reduction in nitrogen oxides, and a 30% reduction in particulate emissions as compared to conventional refinery low sulphur diesel. It is therefore seen as a highly desirable fuel from an environmental standpoint. The primary market is expected to be for use as a blend component, and it is anticipated that it would command a premium in price over conventional diesel. Shell’s Pura brand diesel, for example, sells at a premium relative to standard brands. |
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Market Trends The UK road transport market in 2005 was 21.1 Mt per year or 445,000 bpd. The May 2007 DTI (Wood Mackenzie) review of UK Oil Refining Capacity forecasts that this will increase to 24 Mt per year in 2010 and the UK will change from a net exporter to net importer, as diesel replaces petrol. The 97 Mt per year consumption of road diesel for North West Europe in 2005 is likely to grow similarly. The DTI report assumed that the consumption of all conventional transport fuels will start to fall after 2015 as the market develops for alternative clean energy fuels. The US market, which has traditionally provided an outlet for UK and European petrol markets, is projected to move to a balanced situation for petrol, so requiring UK refineries to target other markets or invest to produce other products such as middle distillates, i.e. diesel, naphtha, gas oil. UK refineries have not been investing, due to their non-competitiveness relative to the EU peer group, and Europe is projected to be deficient in middle distillates, so any UK deficits will require long haul imports. UK legislation will be enacted in 2009 to limit the sulphur content of all petrol and diesel fuel to 10 ppm. Syn-diesel contains less than 1 ppm sulphur and will be in demand for blending to allow refineries to maintain their existing refining processes without the need for substantial investment.
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