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Western conversion tech to boost Chinese oil sector

03rd August 2012

Wasabi Energy Ltd to provide Sinopec with power plant which will convert waste heat into free-emission electricity

Western conversion tech to boost Chinese oil sector
Described as the first commercial application of Kalina Cycle technology in China, the move is in line with Beijing’s plans to further energy efficiency policies as it seeks to cut back on greenhouse gas emissions

An Australian oil and gas firm will provide an energy conversion power plant to Chinese energy giant Sinopec it emerged on Thursday. The infrastructure will convert waste heat into electricity and may help China boost its energy efficiency and clean energy production goals.

The Chinese arm of Australian Wasabi Energy, Shanghai Shenge New Energy Resource Science & Technology Company (SSNE) has hashed a deal with Sinopec for the design and installation of a 4.0 MWe Kelina Cycle power plant at the Chinese firm’s Hainan petrochemical plant.

The plant will turn waste heat from the paraxylene (PX) process stream into zero-emission electricity and reduce its overall greenhouse gas emissions, Wasabi Energy said in a statement.

“SSNE’s recent contract with Sinopec marks the beginning of many commercial opportunities within China where there is accelerated development of energy efficiency and clean industrial development,” Wasabi Energy executive chairman John Byrne said.”[We] expect rapid growth in the installation of Kaline Cycle power plants in China.”

Sinopec operates 45 petrochemical facilities in China that could potentially incorporate Kaline Cycle power plants, Wasabi Energy said.

Described as the first commercial application of Kalina Cycle technology in China, the move is in line with Beijing’s plans to further energy efficiency policies as it seeks to cut back on greenhouse gas emissions.

The Chinese government last month identified a list of ten top climate change technologies, as part of its commitment to cut carbon intensity, Glada Lahn, Research Fellow in energy and development at Chatham House told OGT. “The government aims to reduce its carbon intensity by 40-45 per cent by 2020,” Lahn added.

The firm is also researching the technology’s potential upstream application, specifically in the conversion of hot fluids in oil and gas wells into electricity.

“We [at Wasabi] are actively working on a number of opportunities in both upstream and downsteam petrochemical applications,” COO of Wasabi Energy Diane Bettess told OGT. “

The US Department of Energy reported in July 2010 37,000 possible sties in Texas and the Gulf Coast of the US with the potential for over 7,800 MWe of power production.

“As indicated by the US Department of Energy there is enormous potential in the US for power generation and this can be replicated in a number of regions where there are existing or abandoned fields,” Bettess added.

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