Fuel transformations 04 September 2012

As scientists continue to work on oils in a bid to find fuels that will make commercial vehicles cleaner and more sustainable, Keith Read travels to Holland to assess developments from Shell

Research by scientists at Shell's technology centre in Amsterdam (STCA) could soon have a major impact on diesel engine exhaust and noise emissions – not to mention the sustainability of vehicles reliant on compression-ignition engines burning hydrocarbon fuels. And the good news is that benefits will come without any investment required in new vehicles.

STCA' most promising project is based on the Fischer-Tropsch process, which essentially converts a mix of carbon monoxide and hydrogen into liquid hydrocarbons. Dubbed GTL, its process transforms methane gas – left after well-head gas is treated to remove contaminants and processed into petrochemical products – into liquids, including fuels and base oils.

Fortunately, the world has plenty of gas ready for such treatment. "Gas is much more abundant than originally thought," explains Mark Gainsborough, vice president of marketing for lubricants and commercial fuels at Shell.

Big project, big facility

Key to fulfilling the potential of GTL is the success of Pearl GTL, a huge production facility (see panel) built under a joint venture between Shell and the state of Qatar. The multi-billion-dollar facility made its first shipments a little over a year ago, supplementing output from a smaller facility, built at Bintulu in Malaysia in 1993 to prove commercial viability of GTL. Today, Pearl GTL is not only supplying cleaner diesel fuel to transport fleets in Germany and the Netherlands, but also producing base oils that, according to Dr Selda Gunsel, Shell's vice president of global commercial technology, promise improved lubricants.

"GTL products are colourless, odourless, biodegradable and virtually sulphur-free," explains Gunsel. "Used alone, or as a blend with diesel, GTL fuel produces lower emissions than those from conventional diesel." And she adds that the resulting lubricant derivatives also offer better cold-cranking, as well as higher viscosity and lower volatility than their conventional counterparts.

Colin Abraham, Shell's vice president of lubricants and commercial fuels marketing, says transport managers won't have to wait long. "By 2014, [the new lubricants] will be on the market," he promises. "Zero-sulphur means no corrosion, making them particularly beneficial as transfer oils." And commenting on GTL fuel, he says: "It works with existing fuel systems, presents no hassles for transport managers and involves no expense."

While his latter assurance is no doubt accurate, the question of pricing for what is clearly a premium product remains unanswered. Shell won't discuss the likely cost of GTL diesel ahead of its availability in the UK. That said, one transport boss, who is convinced that GTL diesel is the way forward, believes that any premium is more than covered by the benefits.

Egbert Vennick, director of European waste collection and processing firms Van Gansewinkel, explains that 60 of his refuse vehicles have been running evaluation trials. "Our [GTL-fuelled] vehicles can enter closed buildings without staff having to wear masks. Because of GTL, we don't have to make investments in filters. And the vehicles are quieter by up to five decibels," he says. "People notice these things when working with them all day."

Tellingly, Vennick also says mentioning in tenders the fact that Van Gansewinkel trucks run on GTL is helping the company to secure new contracts. "GTL won't solve all the world's problems… But it has a positive effect now," he maintains.

So when might we see GTL in the UK? Shell remains tight-lipped. It says that, following the initial launch of GTL fuel in the Netherlands and Germany, it will assess potential demand in other markets, and then make a decision.


Shell and GTL

Shell's investment in GTL started during the 1973 oil crisis, when it considered turning coal into fuel, using the Fischer-Tropsch process. However, a timely breakthrough in catalyst development opened the door to converting gas to liquids – a much easier, and far more affordable, process.

Projections showed that GTL would become viable when oil, then barely in double figures per barrel, reached $40 a barrel. Early in August, the price topped $90 and showed every indication of continuing to rise.

Coincidentally, the price hike came just as Shell and Qatar's rulers' massive joint-venture in the world's biggest facility for GTL was seeing production reaching at maximum capacity. Known as Pearl GTL, the facilty converts 1.6 billion cu ft of natural gas from off-shore fields into 140,000 barrels of petroleum liquids and 120,000 barrels of oil equivalent every day.

Author
Keith Read

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