The Catalytic Hydrothermal Reactor (Cat-HTR) breakthrough technology will be introduced and discussed in terms of some the underlying science and technology as well as the commercial and strategic implications for lignite upgrading and “drop-in” biofuels developments. Low rank coals (e.g. brown coal/lignite) as well as biomass can be converted into high quality syncrude oils which are suitable for refining in conventional or dedicated oil upgrading facilities.
In the case of lignite, high quality coals (32 MJ/kg, 30330 Btu/kg, 13800 Btu/lb) are produced, starting from an as-mined feedstock with a very low energy density of around (9 MJ/kg, 8530 Btu/kg, 3900 Btu/lb). The syncrudes that are produced have energy contents of from around 36 MJ/kg (biomass-derived) up to 39 MJ/kg (lignite-derived). Laboratory scale testing, using commercially available catalysts und standard industrial petrochemical testing equipment, has shown that they can be co-processed with conventional fossil oil feedstocks to “drop-in” diesel sulfur, gasoline as well as aviation fuel. It is noteworthy that heteroatoms such as sulfur, organic nitrogen and oxygen are readily removed from these syncrudes under conventional hydrotreating process conditions enabling, for example, the production of diesel that meets ultra-low-sulfur specifications.
The novel Cat-HTR technology is based on processing under near supercritical water conditions in the presence of proprietary catalysts. The technology has been demonstrated in a continuous flow pilot plant for some 36 months and has proven to be robust, versatile and scalable and the first commercial demonstration plant is expected to be commissioned by the end of 2011.