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

Author

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  • Zhaoyang Kong

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Xiucheng Dong

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Bo Xu

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China
    China National Oil and Gas Exploration and Development Corporation, Beijing 100034, China)

  • Rui Li

    (Weichai Power Co., Ltd., Weifang 261000, China)

  • Qiang Yin

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Cuifang Song

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

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 EROI stnd without by-product and with internal energy is 0.68–0.81; the EROI stnd (the standard EROI) without by-product and without internal energy is 3.70–5.53; the EROI stnd with by-product and with internal energy is 0.76–0.90; the EROI stnd 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 CO 2 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.

Suggested Citation

  • Zhaoyang Kong & Xiucheng Dong & Bo Xu & Rui Li & Qiang Yin & Cuifang Song, 2015. "EROI Analysis for Direct Coal Liquefaction without and with CCS: The Case of the Shenhua DCL Project in China," Energies, MDPI, vol. 8(2), pages 1-22, January.
    • Handle: RePEc:gam:jeners:v:8:y:2015:i:2:p:786-807:d:45071
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    Cited by:

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    3. Tatiana Mitrova & Vyacheslav Kulagin & Dmitry Grushevenko & Ekaterina Grushevenko, 2015. "Technological Innovation as a Factor of Demand for Energy Sources in Automotive Industry," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 9(4), pages 18-31.
    4. Galina Nyashina & Jean Claude Legros & Pavel Strizhak, 2017. "Environmental Potential of Using Coal-Processing Waste as the Primary and Secondary Fuel for Energy Providers," Energies, MDPI, vol. 10(3), pages 1-11, March.
    5. Kong, Hui & Kong, Xianghui & Wang, Jian & Zhang, Jun, 2019. "Thermodynamic analysis of a solar thermochemical cycle-based direct coal liquefaction system for oil production," Energy, Elsevier, vol. 179(C), pages 1279-1287.
    6. Peter Viebahn & Daniel Vallentin & Samuel Höller, 2015. "Integrated Assessment of Carbon Capture and Storage (CCS) in South Africa’s Power Sector," Energies, MDPI, vol. 8(12), pages 1-27, December.
    7. Roman Volkov & Timur Valiullin & Olga Vysokomornaya, 2021. "Spraying of Composite Liquid Fuels Based on Types of Coal Preparation Waste: Current Problems and Achievements: Review," Energies, MDPI, vol. 14(21), pages 1-17, November.
    8. Chul-Seung Hong & Eul-Bum Lee, 2018. "Power Plant Economic Analysis: Maximizing Lifecycle Profitability by Simulating Preliminary Design Solutions of Steam-Cycle Conditions," Energies, MDPI, vol. 11(9), pages 1-21, August.
    9. Ke Wang & Harrie Vredenburg & Jianliang Wang & Yi Xiong & Lianyong Feng, 2017. "Energy Return on Investment of Canadian Oil Sands Extraction from 2009 to 2015," Energies, MDPI, vol. 10(5), pages 1-13, May.
    10. Kong, Zhaoyang & Dong, Xiucheng & Jiang, Qingzhe, 2019. "Forecasting the development of China's coal-to-liquid industry under security, economic and environmental constraints," Energy Economics, Elsevier, vol. 80(C), pages 253-266.
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    Keywords

    EROI; Shenhua; DCL; CTL; CCS; China;
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