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HydroMax - Overcoming the Challenges of Industrial Coal Gasification--Diversified Energy Corporation, 2020 W. Guadalupe Road, Suite 5, Gilbert, AZ 85233; 480-507-0297; www.divtecs.com

Mr. Jerry Stephenson, Principal Investigator, jerry.stephenson@diversified-energy.com

Mr. Phillip Brown, Business Official, phillip.brown@diversified-energy.com

DOE Grant No. DE-FG02-07ER84665

Amount: $99,974

Natural gas price volatility is increasing the price of commercial and consumer goods and is straining the ability of U.S. industrial companies to be competitive in the global marketplace. In 2005, the industrial sector consumed 6.6 trillion cubic feet of natural gas, more than 30% of all natural gas consumption in the United States . With natural gas prices ranging from $5 to nearly $15 over the last 12 months, industrial operations have had to compensate for this extreme price volatility, which is ultimately passed on to consumers. While coal gasification offers a promising solution for this sector, practical issues such as feedstock flexibility, scale, reliability, capital costs, and efficiency remain a challenge for industrial applications. This project will design an industrial-scale gasification system based on HydroMax technology, which utilizes a unique chemical pathway to produce syngas (CO + H₂) and hydrogen (H₂) in separate reactors, resulting in process and economic benefits. HydroMax uses a simpler and smaller two-step molten-metal reactor, a unique sulfur removal approach, and low pressure operations. Phase I will perform laboratory tests using coal as a feedstock, evaluate technical and economic feasibility, and ultimately demonstrate the viability of HydroMax for industrial applications.

Commercial Applications and other Benefits as described by the awardee: The HydroMax technology should directly address practical gasification issues and provide an economical, fuel-price-stabilizing solution for the industrial sector. Target markets include paper/paperboard mills, petroleum refineries, petrochemicals, organic chemicals, plastics and resins, nitrogen fertilizer, glass products, and iron/steel mills. Preliminary analysis indicates that a fuel price range of $5.50-$7.50 per MMBtu would be achievable.