Demand for technologies – Implementation of a Carbon Chemical Complex in Rio Grande do Sul

By:Chief Representative
Business Opportunities

22

Dec 2017

The State of Rio Grande do Sul is rich in coals, it contains 90% of the Brazilian reserves. With the objective of making use of its natural resources, the State Government of Rio Grande do Sul is preparing the implementation of a Carbon Chemical complex based on the gasification of coal. The focus is on an environmental friendly use of the mineral with zero CO2 emissions.

Processing coals in a carbon chemistry chain has a lower environmental impact than the traditional use of the mineral in the generation of electric energy. In the projected complex coals are gasified to produce syngas. The proposal is to use syngas for the production of synthetic natural gas (SNG) and naphtha. Besides that, the objective is to benefit of syngas in a carbon chemical production chain. Through a chemical process, substances such as urea and ammonia can be extracted to produce fertilizers for agriculture, and methanol can be extracted for the biodiesel industry or to serve as a chemical additive in the furniture industry. In the proposed plan the coal ashes will also be benefited.

The total investment for the implementation of the project, with an expected generation of 2 million cubic meters of syngas per day, is estimated at US $ 1.7 billion. The mineral that will be used in the gasification will be obtained from the surroundings of the municipalities of Eldorado do Sul and Charqueadas. The complex will have a demand of about 3.5 million tons of coal per year. The start of the operation is expected to be in 2021. The private coal mining company Copelmi is leading the project.

The Petrochemical Complex of Triunfo, located about 52 kilometers from Porto Alegre, produces Ethylene, Propane, Butadiene, MTBE and solvents, also polyethylene, polypropylene, synthetic rubber, methyl ethyl ketone, ethylbenzene, styrene and polystyrene. On 15 kilometres distance the Petrochemical Complex will be able to reduce the import of derivatives such as naphtha, gas and ethanol for their processing chain.

The responsible State Secretariat of Mining & Energy has already identified some foreign investors. In 2014 for example the State Government, Copelmi and the South-Korean Posco signed a protocol of intentions that defines fiscal incentives (including exemptions from taxes on the acquisition of equipment) for the development of the project with a 30% stake.

The demand for technologies is currently being defined and the Secretariat is open for the presentations of interested parties (besides that of potential investors).

The specific opportunities for the Dutch sector are expectedly to be found in technologies for the production of synthetic natural gas and the processing of methanol, ammonia and urea. Furthermore, there will be a demand for clean(ing) technologies and scrubbers.

In March 2018 the State Government of Rio Grande do Sul, together with the Federation of Industries of Rio Grande do Sul (FIERGS), will visit the Netherlands in a programme organised by NBSO Brazil. NBSO Brazil is looking for Dutch companies with technologies or products to be applied in the carbon chemical complex and that wish to present themselves in March.

Interested Dutch companies may contact NBSO Brazil / Deputy Representative Porto Alegre, Luiz Bueno de Freitas, at info@nbso-brazil.com.br or by tel. on +55 51 3387 114, for direct contact and more details on the subject and the visit.

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