1 / 18

Recent Energy Developments and the Magnesia Industry

Recent Energy Developments and the Magnesia Industry. Vasili Nicoletopoulos Premier Magnesia LLC Athens, Greece, 18 - 20 May 2015. Contents. Introduction Energy in MgO production Energy-related uses of MgO How are energy prices impacting the MgO markets? Energy policies

wwilhelm
Download Presentation

Recent Energy Developments and the Magnesia Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Recent Energy Developments and the Magnesia Industry Vasili NicoletopoulosPremier Magnesia LLC Athens, Greece, 18 - 20 May 2015

  2. Contents • Introduction • Energy in MgO production • Energy-related uses of MgO • How are energy prices impacting the MgO markets? • Energy policies • A ‘new norm’ in energy prices? How will the industry adapt? Magmin 2015, Athens, Greece, 18-20 May '15

  3. 1. Introduction The mining industry cares about energy because: • Mining, mineral processing & metallurgy all energy intensive… • …thus heavily affected by devts in energy markets & policies • Conversely, mining & metallurgy products have energy-related uses: refractories, fracking proppants, rare earths for renewables, MgO insulation etc Magmin 2015, Athens, Greece, 18-20 May '15

  4. 2. Energy in MgO production… Energy in the production of ccm/dbm/efm -- Main source: BREF* • magnesite (magnesium carbonate) = MgCO3 (dry process) • brucite (magnesium hydroxide) = Mg(OH)2 (dry process) • bischofite (magnesium chloride) = MgCl2 • 6 H2O (wet process) • seawater and dolomite (wet process) * Dry process: CLM BREF. Wet process: Large Volume Inorganic Chemicals - Solids & Others BREF Magmin 2015, Athens, Greece, 18-20 May '15

  5. … 2. Energy in MgO production… • Synthetic: 2 calcinations to ccm, 3 to dbm • Natural • Various flowsheets, 1 calcination to ccm, 1-2 for dbm; 1-3 steps for efm • At what points along the supply chain are energy prices affecting the MgO industry? NR study for natural --carbonate production --transporting carbonate --burning to CCM/DBM/EFM --shipping MgO --production of refractories & other uses Magmin 2015, Athens, Greece, 18-20 May '15

  6. … 2. Energy in MgO production, other than in kilns • Transport etc: diesel • Fusion: electricity, raw material ccm or dbm -- except in China [MgCO3 fuseddirectly]. • Funny case: Turkey in ’80s MgCO3 decomposed using electricity – to produce CO2 for the adjacent bottling company, with MgO a mere byproduct! • Electricity: conveying, screening, crushing, separation, grinding, mixing, water pumping, lighting etc. • Renewables used in MgO production only indirectly, as one of the sources of the grids that serve MgO producers. New concept: contract with a renewables plant to be built next to the mine/smelter Magmin 2015, Athens, Greece, 18-20 May '15

  7. 3. Energy-related uses of MgO… • MgO used as raw material or, more generally, in the process • MgO used for environmental or, more generally, EHS reasons • refractories – dbm/efm, including to the petrochemical industry • older use: night-storage heater bricks due to dbm’s high thermal accumulation • other insulation: ccm for boards etc • ccm in steel: covering the bath • On the contrary: efm in electrical heaters has high thermal conductivity Magmin 2015, Athens, Greece, 18-20 May '15

  8. … 3. Energy-related uses of MgO… • Coal/oil power plants: [a] ccm as fuel additive eg for heavy metal capturing [b] scrubbing to sequester/remove SOx gas from wet electrostatic precipitators and SO2 from flue gas desulfurization scrubbers [c] in Selective Catalytic Reduction systems to reduce sulfur SO3 generated by the boiler and SCR unit as well as to lessen opacity emissions and acid plumes related to SO3. [d] for corrosion control and opacity treatment • Nuclear waste treatment – ccm in the disposal of low-radiation waste • Drilling locations /fracking: ccm for borehole stability, H2S absorption, for drilling cements; • Oil Sands production: ccm for SiO2 removal to allow reuse of water • Petroleum cracking: MgO-based catalysts • Indirectly-related to energy: eg ccm for higher recovery of Co/Ni/Cu fm ore extraction Magmin 2015, Athens, Greece, 18-20 May '15

  9. … 3. Energy-related uses of MgO Future [or futuristic?] examples: • Carbon-negative and environmentally friendly cements eg Calera, Novacem • ‘Eco-concrete' floor panels • Mg-ion batteries, instead of Li • hydraulic fracturing: dbm as a proppant? • heating up [w/ PV] the briny discharge fm desalination to convert MgCl2MgO ‘a good agent to absorb CO2, ie a dual environmental benefit’; • Photovoltaic/Thermal Systems with MgO-water nanofluids flowing over silicon solar cells; • Recent fluid advances for the completion phase of deepwater projects Magmin 2015, Athens, Greece, 18-20 May '15

  10. 4. How are energy prices impacting the magnesia markets? CLM BREF: Energy costs can constitute 35–40% of total production costs So when oil drops fm 110 to 50, energy costs [say they are 100euros/mt MgO] should theoretically and eventually fall by 45%. Ceteris paribus, total costs should then drop to 82-84 euros/mt MgO Magmin 2015, Athens, Greece, 18-20 May '15 11

  11. 5. Energy policies… • How does/will energy policy affect the production of MgO? • How does energy policy affect the use of MgO? Policy measures • **Climate change, ETS, Carbon Leakage: ETS structural reform discussed: European Council conclusions Oct ’14:Free allocation will not expire, Market Stability Reserve (MSR) –effective when?, ‘direct & indirect carbon costs to be taken into account, in line w/ EU state aid rules’, The most efficient installations in CL sectors should not face undue carbon costs leading to CL.’ • Study grouping several producers to assess new criteria that Euromines would propose for CL, for allocation and eventually for inclusion of the sector in Annex III of the Subsidy Regulation to receive compensation for increased electricity prices. Magmin 2015, Athens, Greece, 18-20 May '15

  12. … 5. Energy policies… • [Electricity] subsidy regulations: Study Nov ‘14, 1st to provide consistent data on energy costs and subsidies for all EU Member States and all technologies. • Total value of public interventions in energy (excluding transport) in the EU-28 was €122 billion [2012] • Energy Efficiency Directive • Strategic Energy Technologies (SETs) • …‘Furnaces’ • Renewables subsidies being phased out More general policies • EC antitrust charges against Gazprom • Energy Union • Juncker Plan Magmin 2015, Athens, Greece, 18-20 May '15

  13. … 5. Energy policies • EU: recognition of a ‘lost decade’ for low-C investment…MSR in 2021 to tackle permit oversupply, that depressed C price...EC & EIB launching new financial instruments, towards investment in energy efficiency, efforts to preserve natural capital, adaptation to climate change • US: Obama seeks $2bn in climate change inv, Feb 10 '15...More global funding needed for CCS technology, Obama ‟16 budget urges US states to cut emissions faster, Feb 2 '15…Upcoming free-trade agreements easier for US companies to export gas & invest in shale gas & tight oil overseas Magmin 2015, Athens, Greece, 18-20 May '15

  14. 6. A ‘new norm’ in energy prices? How will industry adapt?... Energy prices [and Carbon prices] are relatively low now -- not clear whether this will be the new norm. So the industry needs energy-saving efforts: Energy Efficiency Techniques reference document (ENE) • optimisation of the entire process, eg by minimizing losses • conveyor belts replacing trucks • using fuels with high calorific value and low moisture content • smooth/stable kiln operation conditions • CLM BREF: oxygen enriched combustion air for the firing process can increase the efficiency of the firing process • use of waste heat to preheat the feed to rotary kilns or the water in the flotation circuit, or the fuel oil Magmin 2015, Athens, Greece, 18-20 May '15

  15. … 6. A ‘new norm’ in energy prices? How will industry adapt?... • producing steam for heating buildings [GR] or for co-generation [Spain] • new techniques for co-incinerating waste materials [BREF, Coplet?] http://www.wtert.eu/default.asp?Menue=12&ShowDok=16 • to reduce electricity: CLM BREF: Using power management systems, Using grinding equipment and other electricity based equipment with high energy efficiency. Also: use renewables on-site, eg PV/wind. Longer-term: Improved design of kilns • CLM BREF: ‘No emerging techniques for the MgO industry using the dry process route have been provided yet’. • Moving away from coal [and, later on, petcoke?] To lower energy cost: develop shale oil/gas in magnesite areas eg Europe, Russia, Australia Magmin 2015, Athens, Greece, 18-20 May '15

  16. … 6. A ‘new norm’ in energy prices? How will industry adapt? • But all this depends on what happens to the world economy… • …starting with China • Could India take over the role of China as the world's growth engine? • There in an ‘asynchronism’: USA, Eurozone and China are in very different phases of the economic cycle  policies are different. Same problem inside the Eurozone…. • …but according to others [Krugman] it is the other way round: ΔpoliciesΔeconomic outcomes • If the world economy slows down [despite QEs], energy demand will continue falling. ‘When the going gets tough, only the tough get going’... • ..In energy production these will be Saudi & Gulf allies, China [with coal]; also some US shale producers esp. if large-scale exports are allowed. Magmin 2015, Athens, Greece, 18-20 May '15

  17. Thank you very muchVasili NicoletopoulosPremier Magnesia LLC Magmin 2015, Athens, Greece, 18-20 May '15

More Related