[Gasification] What happened at Choren

linvent at aol.com linvent at aol.com
Sat Jul 9 15:02:27 CDT 2011


Dear Mark and Tom,
      When one begins evaluating the process of developing these large 
projects, the book of failures as appropriately called for, should be 
mandatory tested reading for everyone involved in the project.  It is 
still being written. One of the problems with writing it is that no one 
wants to be part of a failure, being unfathered. Trying to find out 
what actually happened to these projects is really difficult. I have 
gotten so many different stories about some of them, it is like trying 
to reconstruct an elephant with a couple of toenails and a tail.
      It is very difficult to foresee bad decisions when one is giddy 
with optimism of the future and the prospects which gasification 
offers. This is the drug which I believe causes most of the problems. I 
have taken the very low key, almost depressing attitude that failure is 
inevitable unless there is a monumental effort to overcome it. The rest 
of the industry should adopt the same sobering attitude and a lot more 
success would be out there.
      HIstory is a great teacher. It is however, always incomplete. As 
an example, the DOE is spending $1bn+ to compile a complete record of 
all of the nuclear development efforts so that they can remember how to 
build nuclear bombs. In my conversations with experienced folks, one 
was a chemical engineer who worked on ROVER or NERVA which was a 
nuclear rocket engine successfully tested in Nevada. It was a 
spectacular success. I talked to him after he retired from Los Alamos 
after 35 years, and was still vigorously researching on his own. His 
comment was "It is doubtful if we could duplicate NERVA again, the 
skills have been lost". This is a critical statement as "skills" are 
also an art which is not fully documentable. If you remember the movie 
2001, A Space Oddessy, the rocket ship which went to Jupiter was based 
on the nuclear engine similar to NERVA.
      I think that there are some basic formulas which can be used to 
make projects more successful. Ignore the financial world's demands for 
fast response and high rate of return. This probably leads to more 
disasters and the industry would be better off without any more.
       By the way, the gasification biz is not the only industry which 
has had heavy duty failures. SASOL built a GTL plant in Qatar for $12bn 
or so, and the catalyst failed. Now after decades with liquifaction 
experience, probably the best in the business how does one anticipate 
that? Sounds like a shortcut or two were made.
Sincerely,
Leland T. "Tom" Taylor
President
Thermogenics Inc.
-----Original Message-----
From: Mark E. Ludlow <mark at ludlow.com>
To: 'Discussion of biomass pyrolysis and gasification' 
<gasification at lists.bioenergylists.org>
Sent: Sat, Jul 9, 2011 12:38 pm
Subject: Re: [Gasification] What happened at Choren

Hi Tom Taylor,

Yes, Range and Choren failed, quite spectacularly. Were those hundreds 
of millions of investment dollars simply 'gasified' and made to 
disappear? Perhaps.
When such failures happen and particularly when they involve public 
financing, there should be a requirement that the last few bucks in the 
bank be devoted to writing a thorough and, hopefully, self-critical 
post-mortem of what went wrong. Was it technology? Execution? Project 
management? Likely, a combination of these factors coupled with an 
excess of hubris brought on by the giddiness of swimming in OPM (other 
peoples' money).
Would analysis of failed projects (most projects fail) expose some 
common reasons for failure that future enterprises may avoid? I suspect 
so. Would this affect the financing of future projects? Maybe not. But 
it should.
As you suggest, the failure of major gasification initiatives make the 
road rockier for future attempts. But technology is just the tip of the 
iceberg; technology management can make the difference between the 
success or failure of technologically-sound projects, but, 
unfortunately, it can't change the laws of nature to allow wrong-headed 
technology to succeed.
If a project such as Choren failed because, as was suggested recently 
on this list,  it ran out of steam in the commissioning process, then 
this is a management issue. There's lots of issues associated with 
scale-up, and leadership is more important in this phase of project 
development than it is during the design phase. You rightly suggest 
that project designers and constructors (by the hundreds) may not be 
the optimal team for dealing with start-up and operational issues.
Someone (maybe someone working for an advanced degree) will someday do 
an in-depth analysis of biomass gasification project failures. This 
could serve as an investor guidebook for future projects. I suspect 
that investment capital disconnected from due diligence puts wheels 
under lots of shaky technology and incompetent management.
Will we know the Real Thing when it comes along?

Best,
Mark Ludlow

-----Original Message-----
 From: gasification-bounces at lists.bioenergylists.org 
[mailto:gasification-bounces at lists.bioenergylists.org] On Behalf Of 
linvent at aol.com
Sent: Saturday, July 09, 2011 8:32 AM
To: gasification at lists.bioenergylists.org
Subject: Re: [Gasification] What happened at Choren

Dear Tom Miles and the list:
       One thing that should be learned is that when there is a lot of 
money around, the tendency is to hire a lot of folks and then the 
pressure is on to burn money fast. I also see "financing issues with 
start up of commercial plant" to read, too expensive, has technical 
issues, vis a vis Range Fuels and others. This is a repeat of even the 
Downdraft system from Grabowski under Syngas co. This was even 
partially funded in the 80's by a group which had provided funding to 
Thermogenics and the lead financier called me several years after 
funding Syngas to say that i was right, it would fail. They decided to 
not fund Thermogenics because of the lack of PhD's who could argue that 
their process was better. Not having a degree made my arguments not 
listened to.
       The question arises as to what to do with a large staff which 
initially does engineering work, and then when the design is completed, 
what are they doing next until the design is completed and operational?
This is why to some extent, this work being done by consultants may be 
better of a business structure.
       Unfortunately, the financial world relies on degrees for results 
which paves the way downhill. A multiple PhD in mathematics who was 
Sandia National Laboratories' lead mathematician, with Stanford and 
Caltech on his CV, had a saying on his door "A thermometer is not the 
only thing with degrees and no brains".
       The more of these large operations to hit the walls, the more 
difficult the field will be to get serious project financing and move 
forward. There are others slated to fail in near term from what I have 
been hearing, high profile supposedly "successful commercial 
operations".
Sincerely,
Leland T. "Tom" Taylor
President
Thermogenics Inc.
-----Original Message-----
From: Dl <d0xunt at gmail.com>
To: Discussion of biomass pyrolysis and gasification 
<gasification at lists.bioenergylists.org>
Sent: Fri, Jul 8, 2011 4:43 pm
Subject: Re: [Gasification] What happened at Choren

http://www.choren.com/en/information-and-press/press-releases/


Going into bankruptcy in Germany.


Dan Lacy

The best way to compile inaccurate information that no one wants is to 
make it up.
Scott Adams




On Jul 8, 2011, at 3:25 PM, "Tom Miles" <tmiles at trmiles.com>
wrote:



This Google alert abut Choren should be on interest to anyone who has
follwoed biomass pyrolysis an dgiasification to syngas. See the Google
Alert link below.  Tom     News1 new result for gasifier What Happened
at Choren?
Consumer Energy Report
The gasifier would be scaled up from the pilot plant scale of 1 MW th
to 45 MW th . Shell's Fischer-Tropsch technology was being used in the
plant, ...





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