15 324costofbiosng

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Unformatted text preview: ........................................................................ 13
 3.2.1.
Cost
of
SNG .............................................................................................................................. 14
 3.2.2.
Effect
of
coal
type
and
coal
price ............................................................................................. 15
 3.2.3.
Effect
of
carbon
price
allowances
and
CO2
sequestration
on
SNG
cost .................................. 15
 3.2.4.
Cost
of
bio‐SNG ........................................................................................................................ 17
 3.2.5.
Effect
of
biomass
price ............................................................................................................ 18
 4.
Conclusions ............................................................................................................................................ 19
 5.
References ............................................................................................................................................. 19
 
 
 Climate
Change
Policy
Partnership
 2
 Synthetic
Natural
Gas
(SNG):
Technology,
Environmental
Implications,
and
Economics
 Abstract
 Increasing
demand
for
natural
gas
and
high
natural
gas
prices
in
the
recent
past
has
led
many
to
pursue
 unconventional
methods
of
natural
gas
production.
Natural
gas
that
can
be
produced
from
coal
or
 biomass
is
known
as
“synthetic
natural
gas”
or
“substitute
natural
gas”
(SNG).
This
paper
examines
the
 different
technologies
for
SNG
generation,
the
cost,
and
the
environmental
impacts
of
SNG.
The
paper
 identifies
the
conditions
under
which
SNG
production
could
be
economically
viable.
The
different
 pollutants
can
be
better
controlled
in
the
process.
The
sulfur
is
emitted
as
hydrogen
sulfide
(H2S)
and
 can
be
removed
in
the
acid
gas
removal
(AGR)
system.
CO2
is
a
byproduct
of
the
coal
to
SNG
process.
In
 a
low‐carbon
economy,
the
development
of
the
carbon
capture
and
storage
would
be
one
of
the
critical
 factors
in
the
future
development
of
SNG.
In
the
absence
of
carbon
capture
and
storage
and
with
carbon
 allowance
price
in
future,
the
SNG
could
be
expensive
and
may
not
be
economically
viable.
Higher
 natural
gas
price
and
selling
of
CO2
to
enhanced
oil
recovery
could
make
the
SNG
economically
viable.

 1.
Introduction
 Energy
demand
is
increasing
across
the
globe.
Fossil
fuels,
primarily
coal
and
natural
gas,
are
the
major
 sources
of
energy
worldwide.
The
United
States
has
abundant
coal
resour...
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This essay was uploaded on 03/18/2014 for the course ENG 316K taught by Professor Kruppa during the Spring '08 term at University of Texas at Austin.

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