Invensys Operations Management to Provide Dynamic Simulation Software for ConocoPhillips' Proprietary Gasification Technology

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Researched by Industrial Info Resources (Sugar Land, Texas)--Invensys Operations Management (IOM), a division of Invensys plc (OTC:IVNYY) (London, England), has signed a multi-year agreement to supply dynamic simulation software to ConocoPhillips (NYSE:COP) (Houston, Texas) for the development of the latter's proprietary E-Gas gasification technology.

Under the terms of the contract, Invensys will be the preferred supplier of simulation software to licensees of ConocoPhillips' E-Gas technology and will supply its own DYNSYM modeling and simulation software, which will be used to assist in the design, startup and operation of coal gasification plants.

The E-Gas technology is a method of converting coal or petroleum coke into hydrogen-rich synthetic gas (syngas) that is suitable for refining and petrochemical use, as well as providing feedstock for power plants. The technology involves a two-stage process. In the first stage, up to 99% of sulfur and 90% to 95% of mercury are removed from coal slurry. The recovered sulfur is suitable for use by the fertilizer industry. Slag resulting from the first stage can also be used for projects such as road construction.

Syngas produced in the first stage can then be subjected to a variety of cooling options, by steam, water or cooled recycled gas, to control the mix of hydrogen and carbon monoxide present in the gas. The two-stage process, which has a more compact design than similar systems, results in lower capital and operating costs. Invensys' simulation software will be used to help design efficient and environmentally responsible syngas production.

At the end of 2007, ConocoPhillips and Peabody Energy Corporation (NYSE:BTU) (St. Louis, Missouri) agreed to investigate the possibility of developing a commercial-scale coal-to-substitute-natural-gas (SNG) conversion application using E-Gas technology near Central City, Kentucky. In late 2008, the companies filed for an air permit so that development of the feasibility study could continue. If successful, the mine-mouth project, known as Kentucky NewGas, could produce as much as 1.5 trillion cubic feet of SNG over the life of the project.

The project is also designed to capture and store carbon dioxide generated in the process. A study by the University of Kentucky showed that, based on an estimated gas output of 74 million cubic feet per day, the plant could capture up to 8,200 tons per day of carbon. ConocoPhillips and Peabody are also funding research into carbon storage in Kentucky through a test-well project under the auspices of the Kentucky Geological Survey.

ConocoPhillips is involved in other alternative fuels initiatives apart from the E-Gas technology. In 2007, the company entered into a strategic alliance with Tyson Foods Incorporated (NYSE:TSN) (Springdale, Arizona) to investigate the production of renewable ultra-low-sulfur diesel (ULSD) from pork and beef byproduct fats. However, the project was suspended late last year because of adverse economic conditions, but ConocoPhillips continues to monitor the possibility of resuming the project.

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