CORESYM CO Hergebruik van Staal naar Chemie

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1 1. CORESYM CO Hergebruik van Staal naar Chemie FME Industrie en Energie Zoetermeer 12 December 2017 Andreas ten Cate Director International Business Development - ISPT

2 2. CORESYM CarbOn-monoxide RE-use through industrial SYMbiosis between steel and chemical industries 2

3 3. 3

4 H-H O 2 CH 4 4

5 5

6 CO CO 2 Fe + C 6

7 4. 7

8 Some more numbers on waste gas.. Reference scale Tata steel IJmuiden and Arcelor Mittal Gent each around 7 million tonnes of steel per year (mta) Around 2 ton waste gas per ton steel total around 14 mta per site - around 10 mta CO 2 (all C to CO 2 ) Current use of CO is for power energetic value of CO is low 8

9 And on the CO2 budget of NL Industry 43.6 MT CO₂ Total: MT CO₂ Excluding part to energy generation 9

10 5. How do we make use of this gas? 10

11 Considerations product-market sizes, technology readiness Market size large enough to absorb (very) large amount of product from one or more steel mills without significant market disruption Technology status sufficient to have an outlook to reach full-scale practice with manageable scale-up route CO to Specialty Products limited market size or immature technology Syngas to Methanol market size ok, technology scale-up feasible Syngas to FT Fuels market size good, technology feasible Syngas Fermentation market ok, technology scale-up ongoing Hydrogen through WG shift market expected, technology scale-up ongoing 11

12 Hydrogen through Watergas shift (SEWGS) CO + H 2 O CO 2 + H 2 SEWGS (ECN technology) promotes selective shift to CO 2 + H 2 0,32 mta H 2 ; 3,2 mta CO 2 avoided; total CO 2 capture ready 9,4 mta 0,65 billion investment Capex, positive revenues Key technical challenge bring SEWGS technology to scale of steelworks Alternatives for H 2 production Electrolysis PEM, Alkaline or Solid Oxide price range 3 4 /ton Capex/Opex for electrolysis high and not (yet) at needed GW scale Conventional Steam Methand Reforming 2 /ton Stranded hydrogen unused industrial sources 12

13 Methanol from Syngas classic route EU Market for Methanol 7,5 mta of which EU production 2,5 mta CO + 2 H 2 H 3 COH Classic route H 2 from external source 2,36 mta MeOH; 4,9 mta CO 2 avoided; total CO 2 capture ready 4,7 mta 1,5 billion investment Capex, negative revenues CO 2 avoidance cost 136 (H 3400 /ton) to 46 /ton (H 1700 /ton) Key technical challenge to separate CO N2 13

14 Methanol from Syngas SEWGS route EU Market for Methanol 7,5 mta of which EU production 2,5 mta CO + 2 H 2 H 3 COH H 2 from SEWGS no external H 2 source 1,5 mta MeOH; 2,1 mta CO 2 avoided; total CO 2 capture ready 7,3 mta 1,4 billion investment Capex, positive revenues Key technical challenge bring SEWGS technology to scale of steelworks 14

15 Fischer-Tropsch Naphtha from Syngas EU Market for Naphtha 450 mta of mixed products CO + 2H 2 -CH H 2 O 0,95 mta FT product; 3,5 mta CO 2 avoided; total CO 2 capture ready 4,7 mta 1,4 billion investment Capex, negative revenues CO 2 avoidance cost 280 (H 3400 /ton) to 160 /ton (H 1700 /ton) Key technical challenge to separate CO N2 15

16 Ethanol from Fermentation of CO EU Market for EtOH 5,4 mta 2CO + 4H 2 C 2 H 5 OH + H 2 O Additional H 2 not required 0,8 mta EtOH; 5,6 mta CO 2 avoided; total CO 2 capture ready 4,7 mta 1,2 billion investment Capex, expected negative revenues CO 2 avoidance cost 175 (H 3400 /ton) to 96 /ton (H 1700 /ton) Key technical challenge scale up to full scale 16

17 6. Conclusions on single site analysis Business case depends highly on: H 2 cost price CO 2 avoidance costs (future CO pricing - not included) 2 Investment conditions (not included) Each route has technical scale-up challenges can be overcome but require focused effort to realize in

18 7. 8. Conclusions on single site analysis Large Capex needed 0,6 1,5 B per site CO 2 avoidance 2,1 to 5, /ton Additional clean CO 2 produced 4,7 9,4 mta ready for CCU/S Premium on CO 2 costs for an average car 840 kg steel in car 2400 kg CO 2 (50% scrap in manufacturing) Worst case 670 premium per car of ,= Compare to CO 2 avoidance offshore wind 220 /ton in 2013, 130 /ton in 2016 (factsheet Wind op Zee) 18

19 Scaling up to European level impact assessment 19

20 Environmental impact Example Ethanol optimistic scenario 20

21 Scaling up to European level CO2 emission reduction 21

22 Scaling up to European level water consumption 22

23 Scaling up to European level waste water production 23

24 Scaling up to European level Clean energy need 24

25 Scaling up to European level resource consumption 25

26 Timing of it all 26

27 Final remarks First steps towards circular carbon: Large capex-intensive operations Technically feasible at large scale Economically not straightforward societal support is essential What do you think? 27

28 See the full report on THANK YOU 28