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Content archived on 2022-12-27

FEASIBILITY STUDY OF USE OF LIGNITE IN PRODUCTION OF AMMONIA UREA, AND TOWN GAS

Objective

To perform a Feasibility Study for examining the technical viability and economic feasibility of a lignite to Ammonia/Urea gasification complex with and without SNG production utilizing Greek lignites.L%
Technology has been evaluated and all process steps have been selected with the assistence of a consultant.
Economic evaluation for the selected project configuration based on 25% equity, 30% grant and 45% debt was performed with the following results :
On total investment On equity
Before tax IRR : 8. 8%
16. 5%
After tax IRR : 6. 7%
13. 1%
Ammonia cost production : $139/MT
Ammonia cost of production without the 30% grant : $165/MT
The total invested capital for the overall complex is $468 million ( including IDC).
The project is a feasibility study to examine the potential increase of competitiveness of the company with implications on energy conservation and hydrocarbon imports replacement.
The project was evaluated on a technical and economic basis and several alternatives were examined.
The final proposed project configuration is as follows :
1. Lignite gasification plant for the production of gas (LHV = + 3500 kcal/NOM) with a capacity of 83000 NOM/H. The gasification technology adopted is of fixed bed and is offered by TECHNOEXPORT from CZECHOSLOVAKIA.
2. Hydrogen Separation Unit (PSA) to separate hydrogen in the gas for use in ammonia production and enrich the offgas stream in methane.
3. Ammonia production plant with a capacity of 382. 000 MT/y.
The offgas stream is treated to produce ammonia synthesis gas and is combined with the separated pure hydrogen stream before feeding the ammonia synthesis section.
The ammonia product will feed the new urea plant, the existing nitric acid, ammonium nitrate and calcium ammonium nitrate plants and a small portion (about 20%) will be sold as final product.
4. Urea production plant with a capacity of 328. 500 MT/y.
CO2 produced both in the gasification and ammonia production plant is utilized with the anhydrous ammonia to produce the Urea fertilizer.
5. Steam and power plant.
Lignite feedstock is utilized to produce process steam and electric power required so that the whole complex is energy self sufficient.
The lignite feedstock is of low grade (high ash and moisture content) and it will come from three different mines. The lignites require a beneficiation step in order to produce a gasifier feed of uniform and stable quality. Such a treatment has not been applied for such a material.
With regard to financing, the Czechoslovak portion is subject to export credit. For the remaining portion of the investment, partners or joint ventures could be considered.

Call for proposal

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Coordinator

NITROGENOUS FERTILIZERS INDUSTRY SA
EU contribution
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Address
VALAORITOU STREET 15
134 Athens
Greece

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Total cost
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