Complex for the production of synthetic fuels and electricity based on deep processing of brown coals

1. Ukrainian commercialization & technology transfer center
Complex for the production of synthetic fuels and
electricity based on deep processing of brown coals
49000, Ukraine, Dnepropetrovsk, Karl Marks av., 81 • www.cctt.com.ua • e-mail: cctt@cctt.com.ua • tel. +38(056)376-10-70

2. Problems - fuel
Oil price forecast to 2015
actual data
forecast to 2015
(01.01.2006)
forecast to 2015
(01.01.2010)
The structure of consumption in Ukraine, per year
Domestic
Imports, TOTAL,
Wholesale prices, $/t production,
kt kt
kt
Light petroleum: 2244 5232 7476
including petrol 11300(UA)/11000(FOR) 1200 2664 3864
including diesel fuel 9600 1056 2712 3768

3. Problems - electricity and natural gas
Dynamics of the purchase price for Russian gas 2006-2011, $/thousand m3
Electricity, UAH/kWh Natural gas, UAH/m3
Cost of production (TPP) 0,10 Cost of purchases in Russia (TPP) 2,08
Purchase price of the energy market 0,40 - 0,50 Public price 0,75 - 1,20
Retail price for legal entities 1,20 - 1,75 Price for legal entities 2,50 - 2,95

4. Proposed solution

5. Proposed solution

6. Worldwide Gasification Capacity (cumulative by year)

7. Worldwide Gasification Capacity (cumulative by feedstock)

8. Worldwide Gasification Capacity (cumulative by product)

9. Structure of production of gasoline and diesel fuel in Ukraine (2010)
Shebelinka
Ukrainian refineries Kremenchug Lisichansk Drogobych Nadvornaya Odessa GPP
TOTAL
Designed capacity of processing, kt 18600 16000 3300 2600 2800 1000 44300
The volume of raw materials, kt 3400 4813 372,9 189,9 1448 660,2 10884
Using the design capacity, % 18 30 11 7 52 66 20
Gasoline, kt 1056 1322 94,5 37,5 204,9 368,9 3083,8
Change in comparison with 2009, % 2,70% -13% -5,40% 10% -24,20% -13% -8,70%
Diesel fuel, kt 1227 1299 128,4 66,8 459,5 172,5 3353,2
Change in comparison with 2009, % 21% -6,30% -12,20% 20% -30,30% -9,20% -3%
Counterfeit, kt 1287,4
Ukrainian refineries produce petroleum in the amount of 20% of installed capacity.
Refineries suffer multimillion damages in connection with:
- obsolete industrial base and high energy production,
- the ever-increasing prices for raw materials,
- rigid regulatory policy of the state in establishing retail prices for petroleum products.

10. Appearance of the gasification plant

11. Existing projects
Great Plains Synfuels Plant Alaska Coal Gasification API Energia
(USA) Plant (Italy)
(USA)
Daily productivity of IGCC process, 2 productions:
approximately 160 million m3 Recycles 11,700 tons of lignite production of synthesis gas
of synthesis gas. Recycles 18,000 per day. (SMPP), a plant with combined
tons of lignite per day. cycle electricity generation.
Technology. Upperground coal
Technology. Upperground coal gasification (CTL). Technology. Upperground coal
gasification (CTL). gasification (IGCC).
Products. 14,600 bbl/day of
Products. Fuel oil, phenol, liquid fuels (5.3 million bbl/year). Products. Electricity production.
fertilizers, cresylic acid, liquid By-product - electricity - 45,5 Capacity of 280 MW.
nitrogen, methanol, kerosene, MW, sulfur -18 tons/day.
krypton, xenon.

12. Existing projects
ENEL Viesgo Puertollano Sasol’s Secunda Plant Vresova IGCC Power Plant
(Spain) (South Africa) (Czech Republic)
The plant was built by Siemens. Burns 30 million tons of coal per The plant was built by «Sokolov
The plant burns 2,600 tons per day year. Coal Corporation». Consumption
of mixed fuel (coal + petroleum 2000 tons of lignite per day.
coke). Technology. Upperground
coal gasification in syngas Technology. Upperground coal
Technology. Upperground coal and electricity by CTL&GTL gasification (IGCC).
gasification (IGCC). technology.
Products. Electricity production.
Products. Electricity production. Products. Production of Capacity of 400 MW.
Capacity of 330 MW. electricity - 900 MW. GTL-fuels
production - 160,000 barrels per
day.

13. Vresova IGCC Power Plant (Czech Republic)
• 26 LurgiGasifiers
- dry coal feed - lignite
- consumption - 2000 tons per day
• 1 Siemens SFG-200 gasifier
- feedstock: phenols, tars, petrol, etc.
created during gasification
- oxygen blown
• 2 combustion turbines
• 1 steam turbine
• Plant startup • Power generation
- 1970 towngas - Combustion turbine 309 MWe
- 1996 converted to IGCC
- Steam turbine 114 MWe
- 2007 added Siemens gasifier
- Internal load -25 MWe
- Net output 398 MWe

14. Technology and equipment providers
Name Country Services, equipment
Engineering and supply of equipment: gas turbines, steam turbines, generators,
Germany gasifiers, the system delay of CO2, combined-cycle energy companies,
management system.
Consulting, engineering, construction services, management of energy
Germany companies, specialty - gas processing into petroleum products, polymers,
biofuels, etc. It has its own patented technologies.
Engineering and supply of equipment: gas turbines, steam turbines, generators,
USA gasifiers, the system delay of CO2, combined-cycle energy companies,
management system.
The Corporation is engaged in engineering, plant construction, the complex
South Africa delivery of equipment, also it is using CTL and GTL technology in the Middle
East (Qatar), Iran, Nigeria, Germany, Slovakia, USA, China, Uzbekistan.
The company is engaged in engineering, plant construction, the complex
Australia delivery of equipment for the underground coal gasification (UCG) worldwide,
including Uzbekistan.

15. Potential partners
Name Country Description
One of the largest global engineering companies. It has
offices in 25 countries. It has vast experience of technological
Great Britain
expertise (about 140 enterprises) in the energy sector. 18
projects in CTL - GTL segment.
Group of design engineering and manufacturing companies
in the U.S.. One of the main activities is the development and
USA
introduction of advanced technological systems in oil and
gas industry. About 80 projects in the energy sector.
One of the largest engineering companies in Australia. It’s a
Australia leading provider of consulting services in energy and mining
and mineral processing.
Engineering company with a worldwide reputation. 129
Germany gasifiers worldwide (South Africa, USA, Germany, China).
14 patented technologies in the field of coal gasification.

16. Productivity of planned enterprise
Name Amount
Coal consumption 2 419 355 t per year
The main product - a synthetic fuel (petrol) 375 000 t per year
By-product - sulfur 2 992 t per year
By-product - liquefied petrogas 42 614 t per year
By-product - Argon 32 912 t per year
Electricity production 20 MW

17. Requirements for deposit
Reserves of brown coal in Ukraine
Region Deposit name Reserves, million tons
Dnepropetrovsk Verhnedniprovske 146
Dnepropetrovsk Karnauhovskoe 203
Dnepropetrovsk Novo-Aleksandrovskoe 82
Kharkiv Novodmitrievskoe 390
Specifications for the brown coal deposits
Name of indicator Required value
Reserves, million tons, at least 60
Ash, %, max 12-28
Mass fraction of sulfur, %, max 4,5
Mass fraction of chlorine,%, max 0,6
Mass fraction of arsenic, %, max 0,02

18. Key economic parameters
Annual financial results of the project
Product Volume Incomes, $ mln Expenses, $ mln Profit, $ mln
Synthetic fuel 375 000 t 539,06 111,98 427,09
Electricity (20 MW) 131 400 MWh 7,39 3,00 4,39
Sulfur 2 990 t 0,66 - 0,66
Liquefied petrogas 42 615 t 34,62 - 34,62
Argon 32 920 t 8,23 - 8,23
TOTAL 589,96 114,98 474,99
Integral indicators of the project
Name Amount
Capital investments, $ mln 1 232,00
Annual income, $ mln 474,99
Borrowed capital return, years 5,00
ROI, % 39%

19. The main stages of the project
Financial Amount,
Stage Works Investor
tool $ mln
Terms
Preliminary assessment of the project
Obtaining a license and mining lease
Ukrainian Shareholder
I Land issues
Permit the design and construction company equity
2 2011-2012
Feasibility study
Development of the plant construction project
Career development project Shareholder
Banks,
II Career construction
Supply of mining equipment funds
equity 30 2012-2013
or credit
Building works at the plant site
Equipment delivery
Banks,
III Commissioning
Start of production funds
Credit 1 200 2014-2015
TOTAL 1 232 5 years

20. Special tax treatment
Electricity production Liquid fuels production
• Enterprise profit is exempted from taxes • The goods importing transactions of raw
in the capital costs for construction and materials, equipment and components
upgrading of power grids. for the production of alternative energy
• Enterprise profit is exempted from sources (including from brown coal)
business income taxes, resulting in the into the customs territory of Ukraine are
simultaneous production of electricity exempted from taxes.
and heat until January 2020.
• The importing transactions of materials, equipment, components used to produce
energy-efficient equipment and materials, products, operation of which provides savings
and rational use of energy resources into the customs territory of Ukraine are exempted
from VAT.

21. Ukrainian commercialization & technology transfer center
Thank you for your attention!
49000, Ukraine Contact person
Dnepropetrovsk Oksana Dukhonchenko
Karl Marx ave., 81 Chief of Marketing&Sales Department
www.cctt.com.ua e-mail: doa@cctt.com.ua
e-mail: cctt@cctt.com.ua ph.: +38(056)3761079
ph.: +38(056)376-10-70 mob.: +38(050)4214302