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EROI Analysis for Direct Coal Liquefaction without and with CCS: The Case of the Shenhua DCL Project in China

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Currently, there are considerable discrepancies between China’s central government and some local governments in attitudes towards coal to liquids (CTL) technology. Energy return on investment (EROI) analysis of CTL could provide new insights that may help solve this dilemma. Unfortunately, there has been little research on this topic; this paper therefore analyses the EROI of China’s Shenhua Group Direct Coal Liquefaction (DCL) project, currently the only DCL commercial project in the world. The inclusion or omission of internal energy and by-products is controversial. The results show that the EROIstnd without by-product and with internal energy is 0.68–0.81; the EROIstnd (the standard EROI) without by-product and without internal energy is 3.70–5.53; the EROIstnd with by-product and with internal energy is 0.76–0.90; the EROIstnd with by-product and without internal energy is 4.13–6.14. Furthermore, it is necessary to consider carbon capture and storage (CCS) as a means to control the CO2 emissions. Considering the added energy inputs of CCS at the plant level, the EROIs decrease to 0.65–0.77, 2.87–3.97, 0.72–0.85, and 3.20–4.40, respectively. The extremely low, even negative, net energy, which may be due to high investments in infrastructure and low conversion efficiency, suggests CTL is not a good choice to replace conventional energy sources, and thus, Chinese government should be prudent when developing it.
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Energies 2015, 8, 786-807; doi:10.3390/en8020786
energies
ISSN 1996-1073
www.mdpi.com/journal/energies
Article
EROI Analysis for Direct Coal Liquefaction without and with
CCS: The Case of the Shenhua DCL Project in China
Zhaoyang Kong 1, Xiucheng Dong 1,*, Bo Xu 1,2, Rui Li 3, Qiang Yin 1 and Cuifang Song 1
1 School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China;
E-Mails: zhaoyangkong@126.com (Z.K.); livemylife123@sina.com (B.X.);
waynorth90@163.com (Q.Y.); scf2010@126.com (C.S.)
2 China National Oil and Gas Exploration and Development Corporation, Beijing 100034, China
3 Weichai Power Co., Ltd., Weifang 261000, China; E-Mail: liruiwinner@sina.com
* Author to whom correspondence should be addressed; E-Mail: dongxiucheng@cup.edu.cn;
Tel./Fax: +86-10-8973-3791.
Academic Editor: Jennie C. Stephens
Received: 2 December 2014 / Accepted: 14 January 2015 / Published: 23 January 2015
Abstract: Currently, there are considerable discrepancies between China’s central
government and some local governments in attitudes towards coal to liquids (CTL)
technology. Energy return on investment (EROI) analysis of CTL could provide new
insights that may help solve this dilemma. Unfortunately, there has been little research on
this topic; this paper therefore analyses the EROI of China’s Shenhua Group Direct Coal
Liquefaction (DCL) project, currently the only DCL commercial project in the world. The
inclusion or omission of internal energy and by-products is controversial. The results show
that the EROIstnd without by-product and with internal energy is 0.680.81; the EROIstnd
(the standard EROI) without by-product and without internal energy is 3.705.53;
the EROIstnd with by-product and with internal energy is 0.760.90; the EROIstnd with
by-product and without internal energy is 4.136.14. Furthermore, it is necessary to
consider carbon capture and storage (CCS) as a means to control the CO2 emissions.
Considering the added energy inputs of CCS at the plant level, the EROIs decrease to
0.650.77, 2.873.97, 0.720.85, and 3.204.40, respectively. The extremely low,
even negative, net energy, which may be due to high investments in infrastructure and
low conversion efficiency, suggests CTL is not a good choice to replace conventional
energy sources, and thus, Chinese government should be prudent when developing it.
OPEN ACCESS
Energies 2015, 8 787
Keywords: EROI; Shenhua; DCL; CTL; CCS; China
1. Introduction
Coal liquefaction, currently termed coal to liquids (CTL) [1], is a chemical process for producing
synthetic transportation fuels from coal to replace or supplement conventional supplies of diesel oil
and gasoline derived largely from petroleum [2]. Technologically, there are two primary routes for
CTL productiondirect coal liquefaction (DCL) and the FischerTropsch (FT) processes, also called
indirect coal liquefaction (ICL) [3]. It is generally believed that DCL processes are more efficient than
ICL60% (the ratio of energy produced including coal and gas to energy outputs including gasoline,
diesel, propane, butane) compared to 50%55%but also require higher quality coal and are more
complicated [3]. With its rapidly growing demand for transportation fuels, along with its scant
domestic oil and natural gas resources coupled with abundant coal, China has been actively pursuing
coal liquefaction technology since the 1950s [3]. However, CTL is controversial. Historically, the
central government’s support for coal liquefaction has been highly uneven and volatile because its
priorities have changed over time (Figure 1). Particularly, since 2006, there have been considerable
discrepancies in attitudes towards CTL between the central government and some local governments.
Whereas the central government restricts the development of the CTL industry, citing business risks,
water scarcity, CO2 emissions and other environmental concerns, local governments in coal-rich
regions cannot wait to enter the industry because doing so could create much-needed jobs and
contribute to GDP (Gross Domestic Product) growth [3]. Thus, it is evident that China is facing a
dilemmashould the government vigorously support the development of the CTL industry?
Figure 1. Key milestones in attitudes towards China’s coal liquefaction policy from 1949
through the present.
1959
Late 1970s
Mid of 1990s
2006
Present
1949
Objective
suspended its R&D on CTL
officially suspended the
Jinzhou plant in 1967
Supportive
increased efforts to establish
China’s intellectual property for
ICL.
started its DCL experiments
Strong supportive
enormous financial support from
“Coal Replacing Oil Fund,” “863
Plan,” “973 program,” etc.
identified as a prior developing
technology
Central governmentCautious
issued three more project suspension notices
banned the allocation of land and bank loans to coal
chemical projects that did not meet industrial policies and
regulations.
Some local governmentAggressive supportive
heavy support for CTL, e.g., the Ordos government
guaranteed water usage for the Shenhua DCL project; all
water was from groundwater, although the city’s
groundwater was overexploited
Energies 2015, 8 788
Currently, to answer this question, most research uses the common strategy of taking a conventional
techno-economic analysis approach, such as the input-output method, to analyse the economics of CTL [4].
EROI analysis, which reflects the amount of energy that can actually be delivered [5], is a useful
approach for assessing the desirability of an energy source [6]. Unfortunately, the peer-reviewed
literature has paid only minimal attention to the EROI of CTL production [7]. For example, Cleveland [8]
mentions the EROI for a coal liquefaction range above and below the break-even point (EROI = 1),
depending on assumptions regarding location, resource quality, and technology characterisation.
Farrell and Brandt [9] claim that the Shell CTL process yielded an EROI of 3.5 based on direct energy
inputs, whereas Alberta [10] estimates roughly that the EROI for CTL is approximately 4:1. The two
aforementioned studies suffer from two disadvantages regarding the EROI of CTL.
One disadvantage is that although these studies address ICL, none of them discusses DCL. The
main reason for this neglect is that DCL technologies are less mature than ICL technologies, and thus,
information available in the public domain is limited [1113]. The other disadvantage is that the
studies did not consider the effect of carbon mitigation technologies on EROI. Highly carbon-intensive
CTL processes are not compatible with a progressive climate policy strategy, and as such, climate
policy should receive more attention when developing CTL processes.
This paper seeks to analyse systematically the EROI of China’s Shenhua Group (Shenhua) Direct
Coal Liquefaction Project, the only commercial demonstration project in the world since World War II [14]
to operate both with and without carbon capture and storage (CCS). Shenhua is one of the largest
energy companies in China, and it is the world’s largest coal producer. The Chinese National Council
provided approximately $1.3 billion US from the Coal Replacement for Oil Fund to Shenhua to initiate
DCL development in 1998 [3,15]. In 2009, Shenhua completed the world’s first modern commercial
DCL facility in Ordos, Inner Mongolia, a facility that can produce nearly 1 million tonnes of oil
products per year, which is equivalent to approximately 25,000 barrels of oil per day [15]. In China,
the Shenhua DCL project is much more effective than others (including ICL projects), thus its EROI
has a significant reference value for policy makers.
2. EROI Methodology
EROI, a tool used in net analysis, is a simple but powerful way to examine the quality of an energy
resource. What is most relevant to our economies is the net energy flow (not the gross) provided by the
energy sector, and this flow can be estimated using the EROI approach. EROI can broadly be described
as the ratio between the energy made available to society through a certain process and the energy
inputs to implement this process [16,17]. The general equation for EROI is given in Equation (1) [6]:
 

(1)
The numerator is the summation of all energy produced for a given timeframe, and the denominator
is the sum of the energy inputs. EROI is typically calculated without discounting for time. Because the
numerator and denominator are usually assessed in the same units, the ratio derived is dimensionless
and often expressed as x: 1 in text [17], e.g., 10:1. This implies that a particular process yields
10 joules on an investment of 1 joule (or Kcal per Kcal or barrels per barrel).
Energies 2015, 8 789
Some previous EROI analyses have generated a wide variety of results, including apparently
conflicting results, when applied to the same energy resource. The reasons for these differences are not
limited to intrinsic variations in energy resource quality, extraction technology, and varying geology
but also include methodological issues including different boundaries of analysis, different methods
used to estimate indirect energy inputs (including monetary expenditure converted into energy using
different assumptions), and issues related to energy quality, e.g., whether different forms of energies
should be weighted differently because of different physical characteristics and different economic
utility (e.g., electricity versus coal) [18].
To formalise the analysis of EROI, Mulder and Hagens [19] established a consistent theoretical
framework for EROI analysis that encompasses the various methodologies presented in the extant
literature. Murphy et al. [20] proposed a more explicit two-dimensional framework for EROI analysis
that describes three boundaries for energy analysis (extraction, processing, and end use) and five levels
of energy inputs (direct energy inputs, indirect energy inputs, indirect labour consumption, auxiliary
services consumption, and environmental consumption). The result is 15 versions of EROI.
Because most EROI analyses account for both direct and indirect energy inputs, but not for labour
or environmental costs, Murphy et al. [20] deem this boundary to be the standard EROI and assign it
the name EROIstnd. Using the standard calculation, we have the following equation:


(2)
Where Eo is joules of all energy outputs expressed in the same units and Ed and Ei represent the total
input and direct input, respectively, of different types of energy. The challenge is that the indirect
energy inputs are rarely available as physical energy units. Rather, the data are available in monetary
units as, e.g., investments in industrial equipment. Thus, we employ Equation (3) to complete the
EROI analysis:

 
(3)
Where Mi represents the indirect inputs in monetary terms and Eins expresses the energy intensity of
a dollar input for indirect components.
Other approaches (e.g., including labour) can be conducted as sensitivity analyses, which will
examine how changing variables affect the outcome. If both environmental and indirect energy inputs
are considered, then EROI1,i+env and so on. The critical point is to clarify what is included in
the analysis [20].
3. The EROI of DCL
3.1. System Boundary
The decision regarding system boundaries is perhaps the most important decision made in an EROI
analysis [16]. In the past, the use of different boundaries with respect to different research objectives has
resulted in significantly different findings, even when applied to the same energy resource [5].
The equation for calculating EROI is sometimes applied to finding energy, sometimes applied for
producing energy, and most usually and appropriately applied to both [21]. However, it should not be
Energies 2015, 8 790
used to compute conversion efficiency, i.e., going from one form of energy to another, such as upgrading
petroleum in a refinery or converting diesel to electricity [17,20,22]. Accordingly, this paper discusses
the overall DCL process chain from coal extraction to coal transportation to coal liquefaction to the main
output of the process (Figure 2), which is diesel.
Self-use or internal energy is an important issue in the assessment of EROI. In the Shenhua DCL
project, middle coal, oil residue, and tail gas that are produced in coal liquefaction are burned in the
combustor of a captive power plant to create electricity that meets on-site electricity requirements, plus a
modest amount of additional electricity that is exported to the electricity grid [2,13]. From a net energy
perspective, however, the question is whether the analysts should credit internal energy as an energy
input and thus include it in the denominator of the EROI. Energy analysts debate this point [16,23].
Some argue that these internally generated fuels should not be counted as an energy input because they
do not have an opportunity costsociety did not give something up to create these fuelsunlike the
electricity that a CTL facility purchases from the grid. Conversely, the internal energy generated by the
process is literally used to perform useful work and, thus, is an essential expenditure of energy to
produce the desired liquid fuel [16,20]. Considering the controversy with respect to internal energy, this
paper calculates EROIstnd both with and without internal energy. It is also noted that EROI without
internal energy is similar to external energy return [24].
Figure 2. The system boundary of the Shenhua DCL production system.
In addition, energy systems also have external costs, most notably in the form of environmental and
human health costs, which are sometimes difficult to assess in energy terms [16]. The greenhouse
gases that are released in the DCL process have adverse effects on the environment. In this paper
(Section 4), we consider the change in EROI caused by the added energy inputs of CCS technology to
control the emissions of CO2, which is one of the main greenhouse gases.
3.2. Energy Outputs
Energy output data are obtained from The First Phase of the China Shenhua Group Direct Coal
Liquefaction Project [25]. Table 1 lists the number of all types of energy products and by-products
Energies 2015, 8 791
per ten thousand tonnes (excluding electricity) of DCL. The main energy products include diesel,
gasoline, electricity and liquefied petroleum gas (LPG), all of which are directly converted to heat
units using the values in Table 2. By-products include naphtha, benzene, xylene, and phenol. Since the
inclusion of by-product as an output is debatable, this paper would present the outcomes of the EROI
analysis both with the by-products and without [26]. The by-products are converted into heat units
through the prices (Table 3) and through industrial energy intensity, which was approximately
3.5 MJ/yuan in 2013 [27].
Table 1. Primary energy outputs per 10,000 tonnes of DCL products and our conversion to MJ [25].
Output
Quantity
Unit
Output (MJ)
Output type
Diesel
6,674
t
276,303,600288,984,200
energy
Gasoline
1,618
t
68,765,00072,486,400
energy
LPG
176
t
7,884,8009,187,200
energy
Electricity
276
kWh
9661,021
energy
Naphtha
966
t
27,098,405
by-product
Benzene
188
t
4,520,736
by-product
Xylene
344
t
8,106,839
by-product
Phenol
34
t
769,678
by-product
Total without by-product
t
352,954,366370,658,821
Total with by-product
393,450,024411,154,479
Table 2. Conversion factors from physical units to thermal units [28,29].
Fuel
Average calorific value
Raw coal
16.024.5 M joule/kg
Cleaned coal
26.029.1 M joule/kg
Gasoline
42.544.8 M joule/kg
Diesel
41.443.3 M joule/kg
LPG
44.852.2 M joule/kg
Electricity (in calorific value)
3.53.7 M joule/kWh
Oil residue
39.841.7 M joule/kg
Table 3. Prices of some products and raw materials in 2013.
By-products and raw materials
Price (yuan/t)
Benzene
6,867
Xylene
6,729
Phenol
6,500
Naphtha
8,013
Sulphur
1,254
Sulphide
7,000
Liquid ammonia
3,164
Iron sulphate
2,500
Water
4
Energies 2015, 8 792
3.3. Energy Inputs
Table 4 lists the number of inputsincluding fuel, raw materials, and other coststo produce ten
thousand tonnes of DCL products. Energy inputs in accordance with the DCL production phases are
divided into three categoriesenergy investment in coal extraction, energy investment in coal
transportation, and energy investment in coal liquefaction.
Energy investment in coal extraction: Because Shenhua does not conduct an explicit accounting of
energy consumption during the process of coal mining, we estimate the energy investment by using the
average EROI of coal mining in China as estimated by Hu et al. [18]. To produce ten thousand tonnes
of DCL products, 36,646.9 tonnes of raw coal must be consumed [25], which is equivalent to
765,920,324 MJ. The calculation of Hu et al. suggests that China’s EROI with respect to coal
production is in the range of 27:135:1 [3039]. According to Equation (1), we can determine that the
total energy inputs of coal production are approximately 16,752,86942,754,717 MJ.
Table 4. Primary energy inputs per 10,000 tonnes of DCL products and our conversion to MJ [25].
Input
Quantity
Unit
Input (MJ)
Input type
Coal production
16,752,86942,754,717
Eextern
Coal transportation
36,646.90
t
5,414,5797,723,334
Eextern
Coal liquefaction
Edirect
Fuel coal
3,789
t
98,514,000110,259,900
Eintern
Oil residue
5,684
t
226,223,200237,022,800
Eintern
Fuel gas
1,454
t
65,139,20075,898,800
Eintern
Purchased electricity
847
kWh
2,9653,134
Eextern
Ematerial
Sulphur
16
t
70,224
Eextern
Sulphide
11
t
269,500
Eextern
liquid ammonia
15
t
166,110
Eextern
Iron sulphate
896
t
7,840,000
Eextern
Water
59,408
t
831,712
Eextern
Eindirect
Equipment and instrument purchase
10,185,355
yuan
35,648,743
Eextern
Total (with internal energy)
456,873,102518,488,974
Total (without internal energy)
66,996,70295,307,474
Energy investment in coal transportation: Coal consumed by the Shenhua DCL project is obtained
from the Shenfu coalfield, currently the largest coalfield in China. The average distance that raw coal
moves from coalmine to the DCL plant is approximately 75 km [22]. As shown in Figure 3, the range
of energy consumption of truck powered by gasoline in China is 1.972.81 MJ/tonnekilometers [3039].
The amount of coal transported is 36,646.9 tonnes. Therefore, the energy inputs of coal
transportationare about 5,414,5797,723,334 MJ, which is equal to the transport distance multiplied by
the average transport costs and then multiplied by transport volume.
Energy investment in coal liquefaction: The energy input data for coal liquefaction were also
derived from The First Phase of the China Shenhua Group Direct Coal Liquefaction Project [25].
Energies 2015, 8 793
There are three types of energy inputsfuel inputs, raw material inputs, and other costs. Fuel inputs
(fuel coal, oil residue, fuel gas, and purchased electricity) are converted directly into heat units using
the conversion factor (Table 2). Raw material inputs (sulphur, sulphide, liquid ammonia, iron sulphate,
and water) are converted to joules through the amount of raw material multiplied by the price and then
multiplied by industrial energy intensity. Other costs (purchase of equipment and instrument) are
converted to physical quantities by industrial energy intensity.
Figure 3. Energy consumption of truck powered by gasoline in China [3039].
In Table 4, energy input is classified into either direct energy input (Edirect) or indirect energy input
(Eindirect) and either external energy input (Eextern) or internal energy input (Eintern). Direct inputs include
fuel coal, oil residue, fuel gas, and purchased electricity, whereas all others belong to indirect energy
inputs. Internal inputs primarily include fuel coal (middle coal), oil residue, and fuel gas (tail gas,
the main component of which is LPG), which are taken into consideration in calculating the EROI with
internal energy.
3.4. Results: EROI for DCL
Our results show the EROIstnd without by-product and with internal energy is 0.680.81;
the EROIstnd without by-product and without internal energy is 3.705.53; the EROIstnd with
by-product and with internal energy is 0.760.90; the EROIstnd with by-product and without internal
energy is 4.136.14. (Table 5). The results show that, on the one hand, the net energy of DCL is very low,
or even negative, whereas on the other hand, system boundary has a significant impact on the results of
net energy analysis.
0
0.5
1
1.5
2
2.5
3
1975 1980 1985 1990 1995 2000 2005 2010 2015
MJ/tonnekilometers
Maximum
2.81
Minimum
1.97
Energies 2015, 8 794
Table 5. EROIstnd of the Shenhua DCL project.
EROIstnd
Total energy inputs
With internal energy
Without internal energy
456,868,244518,484,116
66,991,84495,302,616
Total
Energy
Outputs
without
by-product
352,954,366370,658,821
0.680.81
3.705.53
with by-product
393,450,024411,154,479
0.760.90
4.136.14
3.5. Sensitivity Analysis
In this paper, embodied energy that each raw material or equipment includes are derived from
energy intensity of the industrial sector. However, the energy intensity shows an annual variation
(Figure 4), which would have some impact on EROI, so we do a sensitivity analysis by examining how
the varying energy intensity of the industrial sector changes the EROIstnd value of CTL production. Our
results show that the changes in the energy intensity factors do not impact the EROIstnd without
by-product and with internal energy and the EROIstnd with by-product and with internal energy greatly,
while they have a big impact on the EROIstnd without by-product and without internal energy and the
EROIstnd with by-product and without internal energy (Figure 5).
Note that the difference between them is due to the significant difference on the ratios of embodied
energy input to total energy inputs (Figure 6). When internal energy is not regarded as an energy input,
the ratios increase from 10%18% to 50%80%, which means more energy inputs will be affected by
the changes of energy intensity and the EROIstnd will be more insensitive to energy intensity.
Figure 4. Energy intensity for all industry in China [27].
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MJ/yuan
Energies 2015, 8 795
Figure 5. The change of EROIstnd value caused by the varying energy intensity.
Figure 6. The ratios of embodied energy input to total energy inputs.
4. The EROI of DCL with CCS
4.1. The Necessity of Using the CCS Technology
CTL processes generate synthetic liquid fuels such as gasoline and diesel fuel from coal. A major
concern, however, is the large emissions of CO2 from the process, which add to the burden of
atmospheric greenhouse gases [4,40]. When all CO2 generated at the conversion plant is vented into
the atmosphere, fuel-cycle-wide GHG (Greenhouse Gas) emissions from DCL-derived fuels are also
high compared to making fuels from crude oil, although there is considerable uncertainty regarding
these emissions [13]. In 2009, Farrell and Brandt [9] claimed that over its life cycle, liquid fuel from
coal emits almost double the amount of CO2 compared to conventional liquid fuels derived from crude
oil. In the same year, studies by the U.S. Environmental Protection Agency estimated that CTL without
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROIstnd
EROIstnd without by-product and with internal energy
0
1
2
3
4
5
6
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROIstnd
EROIstnd without by-product and without internal energy
0
1
2
3
4
5
6
7
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROIstnd
EROIstnd with by-product and without internal energy
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROIstnd
EROIstnd with by-product and with internal energy
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Embodied energy input/ total energy inputs
with internal energy
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Embodied energy input/ total energy inputs
without internal energy
Energies 2015, 8 796
CCS could more than double the life-cycle greenhouse gas emissions compared to those of
conventional petroleum-derived fuels [4]. In 2010, Vallentin [41] mentioned that DCL generates
approximately 90% more CO2 than conventional fuel on a well-to-wheel basis.
CTL processes are highly carbon intensive and therefore incompatible with a progressive climate
policy strategy [40]. As the leading consumer of coal-derived energy and the leading emitter of CO2,
China is facing increasing international pressure to reduce emissions and commit to long-term reductions
under the post-Kyoto framework [15]. In November 2009, the Chinese government proclaimed a
mitigation target that proposed that CO2 emission per capita GDP in 2020 would be reduced by 40% to
45% based on the 2005 level [42]. Therefore, it may be necessary for CTL enterprises to implement
some carbon mitigation technologies to reduce their greenhouse gas emissions.
One partial solution is carbon capture and storage (CCS) because it could place some of the
additional upstream CO2 emissions from CTL production in deep underground locations that receive
long-term monitoring [9] and could significantly lower total emissions (reductions of up to 50% for
CTL) [9]. CCS is expected to be the second-most-important emission reduction technology by 2050,
surpassed only by energy efficiency improvements [15]. It is also considered the only option that can
provide long-term GHG mitigation while allowing for continued large-scale use of the existing fossil
infrastructure and abundant fossil energy resources [15]. Because climate change considerations are
motivating factors for China’s development of CCS mitigation options, it is likely that in China, any
future application to establish a CTL plant will require the inclusion of CCS mitigation technology [12]
in response to both improving scientific understanding of damage caused by air pollution and growing
public concerns about environmental quality as incomes rise [13].
4.2. Results: EROI for DCL with CCS
CCS is one efficient method of reducing CO2 emissions. However, introducing CO2 capture
techniques to a coal-based chemical process requires greater investment and energy consumption.
For example, a power plant equipped with a CCS system (with access to geological or ocean storage)
would require approximately 10% to 40% more energy than a plant of equivalent output without CCS,
of which most is for capture and compression [43]. Because the added energy inputs would have a
negative impact on EROI, it will be necessary to expand the energy input level and consider the
environmental cost.
Full life-cycle accounting of carbon dioxide emissions associated with DCL plants should tabulate
emissions associated with mining, transportation, plant operations, and final consumption [10]. Due to
data limits, this paper only considers the energy inputs of reducing plant-level emissions by using the
CCS technology. The major components of the CCS system include capture (separation plus
compression), transport, and storage (including measurement, monitoring, and verification) [43].
Accordingly, CCS energy inputs include capture transportation and storage energy inputs (Table 6).
Energies 2015, 8 797
Table 6. Costs of CCS per t CO2 and our conversion to MJ.
Input
Quantity
Unit
Input (MJ)
Input type
CO2 capture
Electricity
53.5
kWh
187.25197.95
Edirect
Recycled water
24
yuan
84
Eindirect
Instrument air
2.5
yuan
8.75
Eindirect
Labor costs
12
yuan
42
Eindirect
Depreciation costs
23.1
yuan
80.85
Eindirect
Maintenance costs
10
yuan
35
Eindirect
Other costs
47
yuan
164.5
Eindirect
CO2 transport
13.323.7
yuan
46.683
CO2 storage
Electricity
21.35
kWh
74.7379
Edirect
CO2 monitoring cost
5.5
yuan
19.25
Eindirect
Labor cost
12
yuan
42
Eindirect
Depreciation costs
80.96
yuan
283.36
Eindirect
Total
1068.291119.66
In Table 2, CCS refers to post-combustion capture technology, pipeline transport, and deep saline
aquifer storage. Capture and storage energy inputs are derived from The Project Feasibility Study
Report of Coal-to-Chemicals in China [44]. To reflect the scale of CO2 pipeline transportation, this
article assumes that the amount of CO2 transport is 500 million tonnes (Mt) annually, and the transport
distance is approximately 250 kilometres (km). According to IPCC, transporting 5 Mt CO2 per year a
distance of 250 km by pipeline would cost approximately $2.23.8 dollar/tCO2 [43]. In 2013,
the exchange rate is in the range of 6.056.24 RMB/US (Figure 7) [45].
Figure 7. Chinese exchange rate [45].
Energies 2015, 8 798
In this paper, we derive the energy inputs for CCS according to Equation (4):
    󰇛 󰇜
(4)
Where ECCS refers to total energy input of CCS; PDCL is the production of DCL products;
FDCL is the amount of CO2 emissions per tonne of DCL products, and its unit is tCO2/t DCL products;
CCCS is the capture efficiency of a current commercial CO2 capture system; and EC, ET, and ES,
respectively, represent energy inputs of capture, transport and storage per tCO2 (Table 6).
In this paper, the production of DCL products was 10,000 tonnes. According to the data of the
Shenhua CCS demonstration project, the emission factor is equal to 2.75 tCO2/t DCL products [45]
and according to the IPCC report, CCS technology captures approximately 85% to 95% of the CO2
processed in a capture plant, where the middle value is 90% [46]. Thus, according to Equation (4),
we can easily calculate the value of ECCS to be equal to 26,440,17827,711,585 MJ. Under these
circumstances, we can also determine the EROI with CCS, as shown in Table 7.
When we consider energy inputs of the CCS technology at the plant level of emissions, the EROI
with internal energy decreases by 4%6% and the EROI without internal energy decreases by
22%28%.The inclusion or omission of by-product has also some impact on the EROI of DCL. When
by-products are regarded as an energy output, both the EROIstnd and the EROI with CCS increased by
10%12%, respectively. Since by-product is controversial, more attention should be paid to it in
the future.
Table 7. EROI of the Shenhua DCL project with CCS.
EROI
Total energy inputs with CCS
With internal energy
Without internal energy
483,308,421546,195,701
93,432,021123,014,201
Total
Energy
Outputs
without
by-product
352,954,366370,658,821
0.650.77
2.873.97
with by-product
393,450,024411,154,479
0.720.85
3.204.40
4.3. Sensitivity Analysis
Our results show that when we consider energy inputs of the CCS technology at the plant level of
emissions, the changes in the energy intensity factors do not impact the EROI with internal energy
greatly, while it has a big impact on the EROI without internal energy (Figure 8). The results are
similar to the results of sensitivity analysis for EROIstnd. The main reason is that when considering the
energy inputs of CCS, the different ratios of embodied energy input to total energy inputs have not
changed essentially.
Energies 2015, 8 799
Figure 8. The change of EROI with CCS caused by the varying energy intensity.
5. Discussion
5.1. Comparison to Other Energy Resources
During what researchers have characterised as the post-peak oil production era [47,48], it has been
necessary for societies to find some sound alternative energy resources. EROI analysis is useful for
determining whether developing a new source of energy is viable from an energy balance perspective
and for assessing how it compares to other investments [10]. Of course, it is useful to compare the
EROI for CTL with alternative fuels. Figure 9 compares the EROI for CTL with coal, oil and gas,
tar sands, oil shale, ethanol from biomass, diesel from biomass, nuclear, hydroelectric, geothermal,
wind, and solar [8]. As a fuel, coal is characterised by a more favourable energy return on energy
investment with a mean of approximately 46:1, whereas the mean EROI of CTL is only 2.6:1.
An average EROI for crude oil stands at approximately 17:1. Thus, using CTL liquids rather than
crude is far more inefficient, implying a faster drawdown of scarce energy supplies relative to what we
can achieve by greatly improving the energy efficiency of transport and power production [10].
Hydroelectric energy has a much higher EROI than CTL, 84:1and has virtually no CO2
emissions [10]. Dam power could replace power now generated by diesel, likely at a significantly
lower cost, while obviating the need for new diesel sources. If a dam could be constructed in a way
that preserved fish passage and minimised ecological impacts to aquatic ecosystems, it may be a far
better investment than CTL for the future of energy. Replacing diesel-based electricity generation with
wind, nuclear, and solar energy should receive similar scrutiny. These renewable resources also have
relatively higher EROIs18 for wind, 14 for nuclear, and 10 for solar photovoltaicand they are
truly sustainable in the long term [10]. The return to CTL is as great as that of ethanol from biomass
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROI
EROI without by-product, with internal energy, and with CCS
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROI
EROI without by-product, without internal energy, and with CCS
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROI
EROI with by-product, without internal energy, and with CCS
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EROI
EROI with by-product, with internal energy, and with CCS
Energies 2015, 8 800
and diesel from biomass, oil shale, and tar sands. Ethanol from grain and diesel from biomass are at or
near the break-even point, even in light of substantial technical improvements during the last two
decades. The EROI for tar sands and oil shale range above and below the break-even point, depending
on assumptions regarding location, resource quality, and technology characterisation [8].
Figure 9. The mean EROI values for various fuel sources from published values. CTL has a
mean EROI of approximately 2.6:1 (n of 19 from 4 publications, including this paper) [79].
The mean EROI values for other fuel sources are from [4951].
5.2. Outlook for the EROI of CTL
It is important to stress that the EROI results for CTL presented herein cannot be simply
extrapolated to the future [52]. On the one hand, technological advances are expected to continue to
improve the energy return on energy investment with respect to the CTL process [52]. Moreover,
in the technical field, there are two factors that influence EROI value. One is how much energy must be
embodied within the equipment used to extract energy [53], because a degree of energy must be
exerted to function as an energy extraction device. For instance, the foundation of a coal liquefaction
reactor must successfully endure a large moment load. The other factor is how well that equipment
performs the function of extracting energy from the environment. Under normal circumstances, as a
technology matures, i.e., as experience is gained, the processes involved become better equipped to use
fewer resources [54]. For example, reactors become more efficient and less energy intensive to
produce, the catalyst preparation technique becomes more efficient, and increasing size allows for the
liquefaction of economies of scale. These factors serve to increase energy returns. As presented in
Figure 10, over the past 100 years, DCL technology has been in a state of constant progress, and
conversion efficiency has been increasing [1]. In the future, as technologies become more efficient and
their use is systematically improved through research and development [53], EROI ratios will improve
for a given level of resource quality [7].
Energies 2015, 8 801
Figure 10. Developments of DCL technology [1].
On the other hand, coal is a non-renewable resource whose reserves are limited. As reserves are
gradually reduced, the difficulty of extraction will increase accordingly, which means that more energy
will be used for coal production. According to the study of Hu et al., the EROI for China’s coal
production sector has declined from 35:1 in 19951997 to approximately 27:1 in 2010 (Figure 11).
They further predict that the average EROIstnd for the coal production sector will be approximately
24:1 in 2020 [18]. The increasing energy requirements of coal production processes will result in
decreased EROI. Furthermore, for most fuels, especially alternative fuels, energy gains are reasonably
well understood but the boundaries of the denominator, especially with respect to environmental issues,
are poorly understood and even more poorly quantified [22]. For example, it is incontrovertible that the
negative effects of the greenhouse gas emissions caused by CTL cannot remain unaddressed much
longer without an increasingly heavy toll on human societies in terms of external monetary and
energy costs [52].
Figure 11. History and forecast of EROIstnd for China’s coal production sector [18].
In this paper, we only consider the costs of reducing CO2 emissions in coal liquefaction and do not
include emissions from coal production and transportation. If the overall costs of a full life cycle are
0
5
10
15
20
25
30
35
40
1995 2000 2005 2010 2015 2020
EROIstnd
actual values estimated results (average)
estimated results (high scenario) estimated results (low scenario)
Energies 2015, 8 802
considered, the EROI will decline. In addition, except for environmental issues, indirect labour
consumption and auxiliary services consumption are poorly understood because it is difficult to
quantify them precisely. Therefore, we think that most EROIs, including those considered herein,
would decline if we had complete information [22]. The interplay of all of the issues hinted at herein
makes the long-term prospective analysis of the EROI of CTL an extremely complex and inherently
uncertain endeavour [52]. Of course, because that issue is beyond the scope of this paper, we only
propose this arbitrary conjecture to provoke thought.
5.3. Policy Implications
In Section 3, we determined the EROI value of coal liquefaction to be less than 1, which is
considered low, especially given its internal energy. This low, or even negative net energy means that
any increases in production will not meaningfully affect the net energy available to society and
accordingly, CTL should not currently be developed on a large scale in China. In other words, the
Chinese central government’s cautious attitude towards CTL production is more reasonable than that of
those local governments, which support the rapid development of CTL. In Section 5.1, the comparison
of EROI between CTL and other energy sources suggests that at least at the moment, when compared
to CTL, nuclear power, wind power, solar, or geothermal energy may be a better choice. Even so,
the government could continue to support research into coal liquefaction technology and regard it as a
strategic technology reserve. This conclusion is primarily based on two considerations. First, China is
the world’s second largest oil importer, second only to the US [3]. Over the last 20 years, China’s oil
import dependency has increased by 21.5% annually and in 2013, it reached 59% (Figure 12). Thus,
oil security has become an issue that cannot be ignored. If a crude oil import interruption occurs or the
importation price increases, the economy will be seriously affected. For example, as a result of the
1973 oil shock, the world economy passed through the hitherto worst recession in post-war
history [55]. With respect to the short-term difficulties of crude oil imports, CTL is at least an
emergency tactic for meeting the energy needs of economic development. Second, there is a possibility
to improve the EROI of CTL production in the future. As mentioned in Section 5.2, as energy
efficiency and energy conversion efficiency improve, along with possible results of the technological
advances in the production of CTL, applied electrical energy will decrease while energy gain will
increase, thereby possibly increasing the overall value of EROI [56].
Environmental concerns, especially greenhouse gas emissions, could hinder the development of the
CTL industry in oil-scarce countries [4]. Compared to traditional energy, CTL emits more greenhouse
gases and does not comply with environmental requirements. Although CCS technology can be used to
control carbon emissions, it will also increase energy investment, which could have a considerably
negative impact on EROI. Our calculation (Section 4) indicates that when we consider the additional
energy inputs of the CCS technology on plant-level emissions, the EROI both with and without
internal energy decreases. In addition, the added energy inputs of CCS will make it more difficult for
CTL to compete with petroleum-derived fuels than such competition is for CTL without CCS [4].
Although some aspects of CCS technology, on a global scale, currently appear mature, the technology
is still in the research and demonstration phase in China [57,58]. Improving CCS technology will
improve the efficiency of all aspects of the CTL process and thus lower the overall energy inputs
Energies 2015, 8 803
associated with its deployment and improve its EROI [43,59]. To promote the development of CCS on
a large scale, the government should gradually establish applicable national laws and regulations along
with a standard infrastructure system to implement CCS projects commercially and consistent with the
legislation in advanced countries. Furthermore, the government should provide more subsidies and
support for the research and development of CCS-related equipment and technology [58].
Figure 12. China’s dependence on foreign oil [60].
6. Conclusions
In this paper, we calculated the EROI of the Shenhua DCL project in China. The inclusion or
omission of internal energy and by-product is a controversial issue. The results show that the EROIstnd
without by-product and with internal energy is 0.680.81; the EROIstnd without by-product and without
internal energy is 3.705.53; the EROIstnd with by-product and with internal energy is 0.760.90;
the EROIstnd with by-product and without internal energy is 4.136.14. It is also important to consider
that the production of CTL liquids suffers from much higher life-cycle CO2 emissions than does
conventional fuel. Furthermore, it is necessary to consider CCS as a means to control the
emissions [52]. When we consider energy inputs of the CCS technology at the plant level of emissions,
the EROIs decrease to 0.650.77, 2.873.97, 0.720.85, and 3.204.40, respectively. Currently, a CTL
project may generate a financial profit, but from the EROI analysis, the quantity of net energy
delivered to society by CTL production is extremely low, perhaps even negative, which may be due to
high investments in infrastructure and low conversion efficiency. Compared to other sources, the EROI
of the CTL process is much less than that of coal, oil, gas, hydroelectric, and nuclear energy. Therefore,
the Chinese government and investors should be prudent when developing it. In the future, whether the
EROI of CTL production will improve is highly uncertain because it depends on a variety of factors
such as technological progress, environmental protection, and defined system boundaries [61].
Accordingly, this is an area that requires further research. At last, what we must emphasize is that
though the EROI analysis is a useful method in energy analysis, it also has some own shortcomings
that would affect the decision on a new project. For example, the EROI method is restricted by the data
Energies 2015, 8 804
available and energy intensity. Therefore, it is more advisable to use not only the EROI method but
also other possible methods such as net present value (NPV) to analysis the new project. Of course,
this is beyond the scope of this paper, and we only propose this in order to provoke thought.
Acknowledgments
We gratefully acknowledge that this work is supported by the National Natural Science Foundation
of China (No. 71273277/71373285/71303258) and the Philosophy and Social Sciences Major
Research Project of the Ministry of Education (No. 11JZD048). Helpful comments by anonymous
reviewers would be most appreciated.
Author Contributions
All the authors have co-operated for the preparation of this work. Rui Li, Zhaoyang Kong, and
Xiucheng Dong designed research; Zhaoyang Kong, Rui Li, and Bo Xu drafted the main part of the paper.
A final review, including final manuscript revisions, was performed by Qiang Yin and Cuifang Song.
Conflicts of Interest
The authors declare no conflict of interest.
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... In terms of selecting the conversion factors, while EROI can consider environmental impacts [19], most studies still calculate a standard EROI by considering only direct and indirect energy inputs [13,17,20,21]. These inputs are typically converted to thermal equivalent [22,23] or solar emergy [16], or exergy equivalent [24,25,26]. However, the latter two are not widely used due to data source limitations. ...
... The majority of these studies are multi-input, single-output production projects. When studying a multi-input, multi-output production project, such as a coal-to-oil project or the COGRCU project, for example, Kong et al. [23] used EROI to measure the various values of the standard EROI of China's Shenhua coal-to-oil project. The EROI stnd values were significantly lower when CCS technology inputs were considered. ...
... Meanwhile, several studies have extended the input hierarchy of energy production activities to the environmental governance hierarchy proposed by Murphy et al. [19]. However, only a few studies on the EmEROI of the COGRCU project focus on direct energy, indirect energy, labor, environmental governance [23,36]. In addition, in terms of measuring or predicting the EROI of fossil energy production, most studies have converted input and output energy into thermal equivalent. ...
Article
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China's energy and chemical enterprises in the resource-based urban cities face challenges of climate change targets. Coal, Oil and Gas Resources Comprehensive Utilization (COGRCU) project can address the carbon and hydrogen imbalance between conventional methanol from coal and natural gas. Moreover, it can improve energy conversion rates and carbon resource recovery. Therefore, it is a better way for energy and chemical enterprises to transition to sustainable development and advocated by enterprises in resource-based cities. In practice, the actual benefits of the COGRCU project are often different from those expected from prior assessments, and the main factors contributing to the differences need to be identified. Therefore, it is necessary to propose a post-evaluation methodology for the COGRCU project to assist energy and chemical enterprises in identifying these constraints and optimize project management. This study considers energy and monetary flows, combines emergy-based energy return on investment (EmEROI) and cost-benefit analysis (CBA), and proposes a post-evaluation methodology of the COGRCU project based on the case study of YC Group's Fuxian COGRCU project in Fuxian County. In addition, the emergy per unit money, emergy per unit labor, and bio-resources emergy per unit area of Yan'an City are measured. Results showed that indirect energy and labor input emergy are the primary contributors to improving the projects' energy efficiency. Operating costs reduction are the key factors for improving economic benefits. The indirect energy has the highest impact on the project's EmEROI, followed by labor, direct energy, and environmental governance. Several policy recommendations are raised, including strengthening policy support, such as advancing the formulation and revision of fiscal and tax policies, improving project assets and human resource management, and increasing environmental governance efforts.
... In this regard, the research and development of the applicability of fuel compositions based on industrial wastes [7][8][9][10] and the technologies of direct coal liquefaction [11,12] have become very active in recent decades. Still, aside from the positive effect, limitations and disadvantages of composite liquid fuels (CLFs) should be borne in mind. ...
... Composite liquid fuels generically include several components to form a homogeneous mixture of combustible and non-combustible components, solid and liquid. The most popular solid combustible components are coals [11][12][13]39,40] and their derivatives (sludge, filter cake, middlings, semi-coke) [6,9,41]. Peats, solid carbon-containing industrial waste (for example, tire pyrolysis residues) [7], and organic components (sawdust, nutshells and husks, dried algae) [16,17,[42][43][44] can also be successfully utilized in the energy sector as part of CLFs. ...
... Water is a non-combustible binder in fuel suspensions, where the mass fraction of water can be up to 50% [11][12][13]39,40]. However, suspensions of the listed components are characterized by composition instability due to certain stratification. ...
Article
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This article discusses the atomization of composite liquid fuels. A large group of injectors is considered. A comparative analysis of the atomization characteristics (droplet sizes and velocities, jet opening angles) and the influence of the fuel characteristics (density, viscosity, component composition) and the process parameters (the ratio of the fuel–air mass flow rates, the features of the jet formation) has been carried out. Finally, the most effective types of injectors, which provide for the necessary characteristics of fuel atomization for its combustion, have been determined. The most favorable conditions for the applicability of each type of atomization have been formulated. Possible mechanisms of secondary fragmentation of droplets of composite fuels have been analyzed: those resulting from mutual collisions of droplets in the flux and from the interaction with a solid surface as well as those resulting from thermal overheating in the presence of a phase boundary or a large gradient of component volatility. A conclusion is made about the need of using a synergistic effect of primary and secondary atomization of fuel suspension droplets.
...  зростанням достатності запасів для видобутку та споживання із 16 років та 6 років у 2000 р. до 24 років та 16 років у 2020 р. відповідно. Проте відбувалося це не завдяки збільшенню доведених покладів рідких вуглеводнів, а за рахунок скорочення обсягів видобутку екстенсивно виснажених запасів та обсягів нафтопереробки; Безпекова компонента за нафтою та газоконденсатом 45 33 29 27 28 33 38 39 46 43 40 Достатність запасів для видобутку, років 16 16 15 15 14 13 13 13 13 15 16 17 17 19 21 23 25 27 25 24 24 Достатність запасів для споживання, років 6 40 39 34 33 34 30 29 26 29 Внутрішнє забезпечення виробництвом споживання, % 58 107 120 125 117 108 81 74 65 77 68 46 23 19 16 15 Закінчення табл. 1.1  зміною рівня внутрішнього забезпечення виробництва моторного палива власною сировиною: із 16% у 2003 р. до 31% у 2007 р., що було спричинене зростанням обсягів видобутку вуглеводнів на 22%; із 31% у 2010 р. до 92% у 2014 р., що було спричинене падінням обсягів нафтопереробки; із 91% у 2015 р. до 67% у 2020 р. -через падіння нафтовидобутку;  скороченням імпортної залежності із 90% у 2003 р. до 6% у 2014 р. і її подальшим зростанням до 34% у 2020 р.;  експортною залежністю у 2000-2005 рр. ...
... за зрідженим газом100 100 100 99 99 99 100 100 100 100 100 96 90 79 69 54 4545 41 40 35 ...
Book
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The monograph is devoted to the development of technical and economic foundations for the creation of a synthetic liquid fuel sub-sector in Ukraine. The state of Ukraine's energy security in the field of production and consumption of motor fuel and the impact of the war with the russian federation on it are studied; the consumer market of motor fuel in Ukraine, reserves of raw materials for the production of motor fuel and its production in the country and regions, production of motor fuel in the country are analysed; the world market of synthetic liquid fuel is studied; a feasibility study for the creation of a sub-sector for the production of synthetic liquid fuel in Ukraine is proposed / Монографію присвячено розробці техніко-економічних засад створення підгалузі з виробництва синтетичного рідкого палива в Україні. Досліджено стан енергетичної безпеки України у сфері виробництва та споживання моторного палива та вплив на неї війни з російською федерацією; проаналізовано споживчий ринок моторного палива в Україні, запаси сировини для виробництва моторного палива та її видобуток в країні та регіонах, виробництво моторного палива в країні; досліджено світовий ринок синтетичного рідкого палива; запропоновано техніко-економічне обґрунтування створення підгалузі з виробництва синтетичного рідкого палива в Україні.
... Additionally, due to its high H/C ratio, lignite is particularly suitable for liquefaction to obtain fuel. In the industrial application of coal liquefaction technology, the coal hydrogenation reactor is a significant unit, which can be optimized by studying the kinetics of coal liquefaction [3][4][5]. ...
Article
Full-text available
Studying the hydro-liquefaction kinetics of lignite contributes to optimizing the mild liquefaction process for lignite. In this paper, the direct liquefaction performance of Shengli lignite (SL) was investigated using a H2/THN system with 4 MPa of initial pressure, and reaction kinetic models were established for the heating-up stage and the isothermal stage. The result showed that the liquefaction performance of the SL was excellent, with a conversion of 62.18% and an oil and gas (O + G) yield of 29.88% at 698.15 K. After one hour of reaction, the conversion and O + G yield were 94.61% and 76.78%, respectively. During the heating-up stage, the easily reactive part of the SL was 50.07%, and it was converted directly into oil, gas, asphaltene (AS), and preasphaltene (PA) simultaneously. There was no significant secondary hydrogenation conversion of the AS and PA products. During the isothermal stage, the hard-to-react part was predominantly converted into AS and PA, while the remaining easily reactive part continue to react completely. The conversion of AS and PA into oil and gas was a rate-controlling step during this stage. The amount of unreacted coal estimated using the model calculated in the isothermal stage was 2.98%, which was significantly consistent with the experimental value of 2.81%.
... Regarding carbon capture and storage (CCS) technologies, interest in them has grown sharply over the last few years, highlighting the relevance of CCS in fully decarbonized societies [17] and the lack of this option in the methods in the literature [18]. However, we have omitted them because CCS is far more expensive than renewables, has a poor economics, is not a mature technology, manages only one element (CO2) of the pollutants in power plants [19] [20], and it has an extremely low or even negative net energy (EROI less than 1) ( [21], and section 2.8.1. in [22]). ...
... As with higherdevelopment producers, there was more attention to coal power. For example, Pakistan's updated NDC referenced its moratorium announced in 2020 on new coal plants and potentially buying out relatively new coal power projects; yet they also intend to focus on coal gasification and liquefication, the former of which is significantly more carbon-intensive than conventional processes [52]. Myanmar's updated NDC notes that "coal [power] will not increase beyond 2030 and completely phase out in 2050" [53]. ...
Thesis
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There is broad scientific consensus that to avoid catastrophic climate change, global warming should be stabilised well below 2 °C compared to the pre-industrial period. Alarmingly, the window of opportunity to bring down greenhouse gas emissions in line with this objective is rapidly closing. Existing climate mitigation literature agrees that the time when gradual emission reductions could address the issue of climate change is over, and that nothing short of a profound transformation of the energy system, economy, and lifestyles is required to accomplish the necessary emission reductions. Multiple scenarios have been produced by integrated assessment models (IAMs) that explore different mitigation avenues to accomplish a low-carbon energy transition. In this thesis, I analyse whether existing scenarios adequately represent biophysical constraints to the transition. Moreover, I explore if existing scenarios consider the full range of mitigation options to reduce emissions, and whether the scenarios assume adequate energy to enable a flourishing life for all. Finally, I discuss potential implications that a transition to a low-carbon energy system may have for the economy. Existing mitigation scenarios estimate emissions and energy pathways that would be compatible with limiting global warming to 1.5‒2 °C. However, at present, these scenarios do not estimate the amount of energy needed to build and maintain a low-carbon energy system, nor the amount of greenhouse gas emissions that would be associated with such a transition. This is a major gap in the literature, as it remains unclear how much of the remaining carbon budget would be tied to the transition, and how much of it would effectively remain for society to produce goods and provide services using fossil fuels. I calculate that the emissions associated with the transition could range from 70 GtCO2 to 395 GtCO2, with a cross-scenario average of 195 GtCO2. This corresponds to approximately 0.1 °C of additional global warming. I show that the transition could drive up the energy requirements of the energy system and may require a decrease in per capita net energy use of 10%‒34% during the initial push for the transition. Nonetheless, in contrast to what has been argued in previous studies, a low-carbon energy transition would not necessarily lead to a decline in the Energy-Return-on-Energy-Invested (EROI) of the overall energy system in the long-term. I conclude that a continued growth in energy use may be incompatible with the goal of avoiding dangerous climate change. Although use of negative emissions technologies may unlock additional energy from fossil fuels, the overall increase in available energy may be exaggerated in existing scenarios, due to overestimation of realistic mitigation potential and disregard of the high energy requirements of these technologies. Furthermore, use of negative emissions technologies may decrease the efficiency of energy provisioning to society, leading to increased economic expenditure for energy. The conclusion that a low-carbon energy transition may limit the prospects of growth in energy use raises concern, as energy is a key requirement to produce goods and services. How do existing mitigation scenarios address the socioeconomic implications of this energy constraint? I find that existing mitigation scenarios perpetuate the striking inequalities of energy use between the Global North and Global South. Lack of equitable convergence is further underlined by the scenarios that assume negative emissions. Although these scenarios allow for higher global energy use, the additional energy is overwhelmingly allocated to the countries in the Global North, which have the highest per-capita energy consumption. Moreover, existing mitigation scenarios do not consider that limits to energy growth may have a negative effect on the economy. On the contrary, mitigation scenarios typically assume economic growth is to increase in the future, despite lower energy use. To square economic growth with decreasing energy use, mitigation scenarios assume rapid and unprecedented improvements in the efficiency of energy use in the global economy. However, feasibility of accomplishing such improvements has been fiercely contested. To explore if there are alternative pathways to accomplishing a low-carbon energy transition, I outline a series of scenarios that assume lower rates of global economic growth. I demonstrate that lower economic growth makes it possible to accomplish sufficient emission reductions with more moderate energy efficiency improvements and a slower build-up of a low-carbon energy system. I discuss the concerns regarding negative implications that lower growth may have on social wellbeing and the ability to pay for the transition. I argue that post-growth policies focused on wealth redistribution may lead to desirable social outcomes without compromising the aim of avoiding dangerous climate change.
Article
Herein, β-FeOOH nanoparticles supported on coal (β[email protected]) were prepared by a solid-state in-situ impregnation and tested for the direct coal liquefaction (DCL) process. The β-FeOOH nanoparticles with ~10–50 nm were uniformly loaded over coal through a solid-state reaction among ferrous chloride, sodium hydroxide and coal. The obtained β[email protected] solid showed enhanced catalytic performance for DCL compared with unsupported β-FeOOH nanoparticles. The conversion and oil yield achieved by β[email protected] were 92.88 and 48.78% in the catalytic liquefaction of Dahuangshan lignite. The solid-state in-situ impregnation with coal as support shows great potential to prepare effective iron-based catalysts toward practical DCL.
Article
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There is a strong correlation between net energy yield (NEY) and energy return on investment (EROI). Although a few studies have researched the EROI at the extraction level in China, none have calculated the EROI at the point of use (EROIPOU). EROIPOU includes the entire energy conversion chain from extraction to point of use. To more comprehensively measure changes in the EROIPOU for China’s conventional fossil fuels, a “bottom-up” model to calculate EROIPOU was improved by extending the conventional calculation boundary from the wellhead to the point of use. To predict trends in the EROIPOU of fossil fuels in China, a dynamic function of the EROI was then used to projections future EROIPOU in this study. Results of this paper show that the EROIPOU of both coal (range of value: 14:1–9.2:1), oil (range of value: 8:1–3.5:1) and natural gas (range of value: 6.5:1–3.5:1) display downward trends during the next 15 years. Based on the results, the trends in the EROIPOU of China’s conventional fossil fuels will rapidly decrease in the future indicating that it is more difficult to obtain NEY from China’s conventional fossil fuels.
Article
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Modern food production depends on limited natural resources for providing energy and fertilisers. We assess the fossil fuel dependency for the Danish food production system by means of Food Energy Returned on fossil Energy Invested (Food-EROI) and by the use of energy intensive nutrients from imported livestock feed and commercial fertilisers. The analysis shows that the system requires 221 PJ of fossil energy per year and that for each joule of fossil energy invested in farming, processing and transportation, 0.25 J of food energy is produced; 0.28 when crediting for produced bioenergy. Furthermore, nutrients in commercial fertiliser and imported feed account for 84%, 90% and 90% of total supply of N, P and K, respectively. We conclude that the system is unsustainable because it is embedded in a highly fossil fuel dependent system based on a non-circular flow of nutrients. As energy and thus nutrient constraints may develop in the coming decades, the current system may need to adapt by reducing use of fossil energy at the farm and for transportation of food and feed. An operational strategy may be to relocalise the supply of energy, nutrients, feed and food.
Article
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Energy return on investment (EROI) and net energy are useful metrics for analyzing energy production physically rather than monetarily. However, these metrics are not widely applied in China. In this study, we forecast the Daqing oilfield’s EROI from 2013 to 2025 using existing data for crude oil and natural gas production and the basic rules of EROI. Unfortunately, our calculations indicate that the oilfield’s EROI will continuously decline from 7.3 to 4.7, and the associated net energy will continuously decline from 1.53 × 10¹² MJ to 1.25 × 10¹² MJ. If China’s energy intensity does not decline as planned in the next ten years, then the EROI of Daqing will be even lower than our estimates. Additionally, relating the EROI to the monetary return on investment (MROI) in a low production and high intensity scenario, Daqing’s EROI will decline to 2.9 and its MROI will decline to 1.8 by 2025. If the “law of minimum EROI” and the assumed “minimum MROI” are taken into account, then we estimate that both energy pressure and economic pressure will restrict Daqing’s production by 2025.
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The transportation industry is an essential sector for carbon emissions mitigation. This paper firstly used the LMDI (Logarithmic Mean Divisia Index) decomposition method to establish factors decomposition model on China's transportation carbon emission. Then, a quantitative analysis was performed to study the factors influencing China's transportation carbon emissions from 1991 to 2008, which are identified as transportation energy efficiency, transportation structure and transportation development. The results showed that: (1) The impact of transportation development on transportation carbon emissions showed pulling function. Its contribution value to carbon emissions remained at high growth since 1991 and showed an exponential growth trend. (2) The impact of transportation structure on transportation carbon emissions showed promoting function in general, but its role in promoting carbon emissions decreased year by year. And with the continuous optimization of transportation structure, the promoting effect decreased gradually and showed the inversed “U” trend. (3) The impact of transportation energy efficiency on transportation carbon emissions showed a function of inhibition before pulling. In order to predict the potential of carbon emission reduction, three scenarios were set. Analysis of the scenarios showed that if greater intensity emission reduction measures are taken, the carbon emissions will reduce by 31.01 million tons by 2015 and by 48.81 million tons by 2020.
Book
With shortages of fossil energy, especially oil and natural gas, and heavy biomass energy use occurring in both developed and developing countries, a major focus has developed worldwide on renewable energy systems. Renewable energy systems include wind power, biomass, photovoltaics, hydropower, solar thermal, thermal ponds, and biogas. Currently, a heavy focus is on biofuels made from crops, such as corn, sugarcane, and soybeans, for use as renewable energy sources. Wood and crop residues also are being used as fuel. Though it may seem beneficial to use renewable plant materials for biofuel, the use of crop residues and other biomass for biofuels raises many concerns about major environmental problems, including food shortages and serious destruction of vital soil resources. All renewable energy systems need to be investigated because humankind has only about 40 years of oil and gas reserves remaining. There is a 50 to 100 year supply of coal resources in the ground, but coal will become increasingly difficult to extract and will greatly increase the global warming threat. Serious energy conservation and research on viable renewable energy technologies are needed. This book considers the effectiveness and economics of several renewable energy technologies of current interest, including biofuels, solar and wind.
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In order to reduce cargo transportation energy consumption, our country's current cargo transportation structure and energy consumption by statistical data were analyzed. By using the SPSS software to make regression prediction on the basis of freight turnover, the total energy consumption constraint inlet, the linear optimization model were built based on cargo transport-ation energy consumption structure, and the sharing ratio of the various modes of transport was optimized. In the case of meeting the same amount of freight demand, an empirical analysis was made in 2020 for China, using the Lingo software to obtain the optimal solutions. The research result show that 2.7% energy consumption is reduced and the structure adjustment cost is much less than environmental benefit, which proves the feasibility and rationality of the model.
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Currently, the energy structure with coal is given priority to in China. This situation would not change in a short time which results in massive CO2 emissions and increased pressure to natural environment. Carbon capture and storage technology (known as CCS) is a carbon abatement technology that separates CO2 from industrial production or energy conversion, transports to the storage site after compression, and injects to the deep underground to make long-term isolation from the atmosphere. This technology achieves zero emission during fossil energy extraction and conversion, so the Intergovernmental Panel on Climate Change (IPCC) regarded it as one of the effective methods reducing greenhouse gas emissions in 2005. First, based on the development status of CCS in China, in terms of policies, technology research and CCS projects are described. SWOT is an analysis method that analyses objects all-around from four main aspects of strength, weakness, opportunity and threat. By SWOT, this paper focuses on analyzing the development environment currently in order to find the main stimulatives and obstacles and confirm the feasibility of CCS development in China. Finally, recommendations are proposed addressing the problems and obstacles. The results show that CCS is an effective way to reduce future emissions in China, as with the huge market, and the general support by Chinese government and green groups. However, relevant departments should strengthen economic and policy support at the same time.
Article
Prior studies of coal-to-liquids (CTLs) processes that produce synthetic transportation fuels from coal have focused mainly on designs using bituminous coal with no or limited constraints on carbon emissions. In this study, plant-level techno-economic models are applied to evaluate the performance, emissions and costs of CTL plants using low quality sub-bituminous coal and lignite as feedstock for both a slurry-feed and dry-feed gasification system. The additional cost of carbon dioxide capture and storage (CCS) is also studied for two plant configurations-a liquids-only plant and a co-production plant that produces both liquids and electricity. The effect of uncertainty and variability of key parameters on the cost of liquids products is also quantified, as well as the effects of a carbon constraint in the form of a price or tax on plant-level CO2 emissions. For liquids-only plants, net plant efficiency is higher and CO2 emissions and costs are lower when sub-bituminous coal is used. For both coals, performance of plants with a dry-feed gasifier is better compared to plants with slurry-feed gasifiers, but the costs are comparable to each other, with slurry-feed plants having a minor advantage. A major concern for CTL plants is the high level of CO2 emissions, the major greenhouse gas linked to global climate change. However, this study shows that for the liquids-only plant most of the CO2 emissions can be avoided using CCS, with only a small (<1%) increase in capital cost. Depending on the coal type, gasifier type and CO2 constraint (up to 25/tonneCO2),thenominalcostofliquidproductrangesfrom25/tonne CO2), the nominal cost of liquid product ranges from 75 to 110/barrel.Parameteruncertaintiesincreasethisrangeto110/barrel. Parameter uncertainties increase this range to 50-140/barrel (90% confidence interval). With or without CCS, co-production plants are found to have higher capital costs than liquids-only plants, but produce cheaper liquid products when the electricity is sold at a sufficiently high price (50120/MWh,dependingonplantdesignandcarbonconstraint).Forcoproductionplants,netplantefficiency,whichdependsbothoncoalconsumptionaswellaselectricitygeneration,ishigherforplantswithadryfeedgasifierwhileCO2emissionsarelowerfromplantswithaslurryfeedgasifier.Forbothcoals,capitalcostislowerforplantswithdryfeedgasifier,withplantsusingsubbituminouscoalbeingcheaperthantheonesusinglignite.ACO2taxof50-120/MWh, depending on plant design and carbon constraint). For co-production plants, net plant efficiency, which depends both on coal consumption as well as electricity generation, is higher for plants with a dry-feed gasifier while CO2 emissions are lower from plants with a slurry-feed gasifier. For both coals, capital cost is lower for plants with dry-feed gasifier, with plants using sub-bituminous coal being cheaper than the ones using lignite. A CO2 tax of 25/tonne is not enough to make CCS more economical when the electricity price exceeds about $80/MWh.