Chinese Gasification Expertise on Its Way to the Ukraine

by | Aug 10, 2012 | Industrial Energy & Onsite Utilities, Industry | 0 comments

Emerson’s Douglas Morris, a member of the alternative energy industry team, highlights the planned use of coal gasification technology in power generation in the Ukraine.

Emerson's Douglas MorrisA few months back I wrote about Asian innovation in energy, specifically about the expertise being developed by China in coal gasification. This past week, the first case of exporting this knowledge occurred when the government of the Ukraine announced that it is looking to China to help it begin the conversion of its power plants from natural gas to coal gasification.

The Ukraine is looking to this conversion because of the high price it is paying for natural gas being supplied by Russia. Recently, it paid $425 for 1000 cubic meters of gas, which equates to about $12 per MMBTU. For reference, this is less expensive than prices found in Asia, but more expensive than Western Europe.

Source: Wikipedia- Russia–Ukraine gas disputes

It’s not just about the price, though, it also revolves around security of energy supply. Because the major artery for gas from Russia to Europe runs through the Ukraine, the country is both a user of gas and the primary conduit for supply to Europe. This unique arrangement has resulted in a number of disagreements over the years, between Naftogaz Ukraine, Gazprom, and their respective governments. At one point, it was heated enough that Russia threatened to turn off the supply line. Things are much more stable now with mutual agreements in place.

Source: Petroleum Economist- Coal gasification: unlocking the potential of low-quality coal reserves

Because of this reliance on gas from others, though, the Ukraine desires better diversity of its energy supply and coal gasification is looked at as a viable option. By the way, it doesn’t hurt either that its coal supply is one of the largest in the world.

Although the potential supply is abundant, the quality is not as Ukrainian coal is low quality, with both high sulfur and ash content. This lignite is not a great fuel for conventional coal-fired boilers, but is a very good candidate for gasification, particularly when used in fluidized bed reactors.

China is stepping up its capital investment profile and is making available $3.56B in a credit line to the Ukraine to support this development effort. The timing for these projects is yet to be determined, but expect a lengthy discussion around this opportunity when the Ukrainian Prime Minister meets with Chinese government officials this November.

Popular Posts



Related Posts

Follow Us

We invite you to follow us on Facebook, LinkedIn, Twitter and YouTube to stay up to date on the latest news, events and innovations that will help you face and solve your toughest challenges.

Do you want to reuse or translate content?

Just post a link to the entry and send us a quick note so we can share your work. Thank you very much.

Our Global Community

Emerson Exchange 365

The opinions expressed here are the personal opinions of the authors. Content published here is not read or approved by Emerson before it is posted and does not necessarily represent the views and opinions of Emerson.

PHP Code Snippets Powered By :