Making Renewable Fuel by Carbon Recycling

Transcription

1 Making Renewable Fuel by Carbon Recycling By: K-C Tran CEO and Co-founder, Carbon Recycling International Fulbright US Iceland Partnership Award Recipient Emission Reduction, Energy Storage and Sustainability Carbon Recycling International is headquartered in Reykjavik, Iceland. The vision of the company is to sequestrate carbon dioxide from emissions and convert it to renewable methanol. The company is building an industrial scale plant to demonstrate operationally the reduction of emission, the ability to store stranded energy, and the profitability of the technology end to end. 1

2 CO2 as Feedstock Greenhouse Gas Emissions World temperature rise ~ 0.6 o C CO 2 concentration rise ~180 ppm Source of CO 2 primarily from energy production Energy Resources Fossil Fuel Limits o Forms 86% of world s primary energy sources o R/P ratios in years: Oil (40), Natural Gas (55), Coal (137) Infrastructure and Technology Limits o Off peak and off grid energy capture o Stranded renewable energy sources: wind, geothermal, tidal, and biomass 2 The primary source of CO2 derives from the consumption of fossil fuel for energy production and transportation. The solution for carbon dioxide reduction is to increase efficiency and the increase share of renewable energy. The solution is also to innovatively utilize CO2 as feedstock. The costs of fossil energy, coal or oil, will be reevaluated upward for its finite potential, carbon intensity and security uncertainty. There is convergence in parity of cost between fossil energy and renewable energy. Today s imaginable is tomorrow s conventional wisdom. Renewable energy from wind, geothermal, and biomass must be developed with sustainable criteria which include scalability, economics, and distributed across geographic locations. The economy of energy must be reinvented to become local.

3 Sources of Energy Response Renewable Energy Directives Biofuel and green energy targets Off peak pricing strategies Implementation Renewable energy (geothermal, wind, solar etc.) Alternative fuels and flexible Fuel vehicles Off peak house hold use of energy Challenges Wind energy penetration in to grid Biomass and food production competition 3 One of the major risks of innovation are determined by local and global regulations which can be reduced by local subsidiary and support. Europe has taxation and regulation which define stable norms for the development of renewable energy and alternative fuels. A stable regulation environment is essential in financing innovation and attracting investors. In Iceland, the differentiation between renewable methanol fuel which is produced using renewable energy geothermal or hydroelectric versus fossil fuel based methanol is an immediate support in the development of domestic fuel. Carbon Recycling International does not depend on long term subsidiary to become competitive and expect to export into EU countries under international competitive rules. Iceland has abundant geothermal and hydroelectric energy. Carbon Recycling International develops technology for geothermal emissions. However, the technology also works with variable sources of power like off - peak and wind. Wind energy is limited because access to electric grid and it is intermittent. It is an opportunity for Carbon Recycling International to store stranded and intermittent wind energy in the form of Renewable Methanol. We also consider biomass a source of energy which can be innovatively explored with our technology.

4 Innovation Incentives Response Kyoto Protocol EU ETS and UN FCCC JI and CDM UK and California Regulations on Carbon Dioxide Implementation Flexible fuel, hybrid and electric cars Efficiency projects CO 2 sequestration and Reuse Challenges Policy disagreements - US, China and India Technology uncertainty 4 The global regulatory push for carbon reduction can only work if accompanied also by an economic push. We need parallel directives which encourage the development of technology. Reduction of emissions by only establishing targeted limits will not work. Technology development and environmental policies which integrate growth and carbon intensity are the correct strategy. Carbon Recycling International receives regulatory, research and agency support from the Ministry of Industry, Environment, Finance, Export Council, Iceland Invest, Innovation Center Iceland and the Municipality of Grindavik in the development of the project at Svartsengi. We believe the development of Renewable Methanol as an alternative fuel is a sensible solution to reducing import of fossil energy based fuel. It is an noninvasive approach to existing infrastructure because Renewable Methanol can be blended with gasoline without change to cars or refueling stations at low blending ratio. Renewable Methanol can become the alternative fuel to gasoline at 85% blending ratio. It can be part of the fuel supply system for Iceland in the near term or long term with or without the electric car solution. Renewable Methanol will be exported to EU countries at competitive prices as a renewable fuel. Our business model does not depend on global agreements between countries. Ultimately, each country will balance between growth and carbon intensity. No country can forgo the needs to grow and no country can ignore the threat of climate change. Our primary concern is to demonstrate scalability, adoption and return to investors.

5 Making Fuel by Recycling Carbon Stranded Energy CO2 Patented Liquid Fuels Renewable Methanol Water Reuse of Carbon Dioxide from Industrial Emissions as Feedstock for Renewable Fuels 5 Recycling carbon is a a viable concept for reuse of carbon dioxide from emissions to make liquid fuels, renewable methanol. We are first mover in capturing the potential of carbon dioxide as feedstock and in creating the current global trend of transformating carbon dioxide into useful commodities. It is an innovative process proven by Carbon Recycling International since Conceptually, water is split into hydrogen and oxygen by electricity and carbon dioxide is extracted from geothermal steam. The combination of hydrogen and carbon dioxide in a ration of 1:3 results in renewable methanol. If it is engineered under a low energy process combined with an optimized proprietary catalyst, the process is economical and competitive. Catalyst is a metal based matrix which faciliates the chemical reactio between carbon dioxide and hydrogen. It makes the process more efficient. Our preliminary tests of the Renewable Methanol for gasoline blending - at nominal 10% and for reformed fuel cell fueling verify the applicability of our Renewable Methanol.

6 Energy in Iceland Energy Consumption in Iceland by source in GWe (2006) Source: statice.is, Ministry of energy 4/25/2010 CarbonRecyclingInternational 6 There is a combined potential of 8 GWe of untapped power from geothermal and hydroelectric sources. Energy price because demand of green power in a more diverse industrial base will rise in Iceland. We will see diversification of power applications in Iceland to include server farming, chemicals, ferro silica and aluminum. In an increasingly more competitive power market, it is first financed, first served. We hope to advance with speed our technology trajectory and to capture our share in the untapped power. We are collaborating with HS Orka and the municipality of Grindavik to secure 50 Mwe for our commercial scale plant to put into operation in 2013.

7 CO2 in Iceland Industrial Processes consists of: Aluminum (3) Ferrosilicon (1) Cement (1) Iceland CO 2 emissions by sector, 2007 Carbon Recycling International 7 Iceland produces power from geothermal and hydroelectric. The contribution of carbon dioxide derives primarily from industrial and transport emissions. Carbon Recycling International s strategy for CO2 as feedstock begins at the capture of carbon dioxide from geothermal emission. CO2 from geothermal power generation is at high concentration, near 90%, which is more readily harvested. The engineering and efficiency challenge is in the design of the clean up system. The preparation of carbon dioxide as feedstock requires the removal of impurities to yield Renewable Methanol as clean fuel. The additional environmental benefits are in the cleaning of the acidic hydrogen sulfide gas emitted as a waste gas by geothermal power plants.

8 CO 2 to Fuel Process Five building blocks : 1. H 2 production 2. CO 2 capture and purification 3. Syngas compression 4. Methanol synthesis 5. Methanol distillation 8 There are 5 technological building blocks in the patented process by Carbon Recycling International. 1.The CO2 in the waste gases is piped from the points of emission at the stack to the purification system. The removal of impurities is completed in steps. 2.The hydrogen generation system is engineered with the state of the art electrolyzers technology by modules allowing expansion of the plant 3.The conversion of syngas a mixture of hydrogen and carbon dioxide is pressurized to the targeted pressure and mixed to the ratio of 3 to 1. 4.The system of methanol synthesis is engineered to have flexible capacity to adapt to the possible addition of modules of electrolyzers at a later phase. 5.The distillation column is designed to purify the renewable crude to a proprietary fuel grade renewable methanol for blending with gasoline.

9 A Clean Fuel Less Fossil Energy In, Less CO 2 Out, Same Distance Out 95 octane gasoline 164 g CO MJ 1 km 95 octane RM10 Vehicles 148 g CO MJ 1 km Vehicles Sources: Well to Wheel Analysis of future automotive fuels and power trains in the European Context, EC JRC, EUCAR, CONCAWE (2007) CRI Well to Wheels report (2009) Carbon Recycling International and Oil of Iceland are testing a blend of gasoline with up to 10 percent of Renewable Methanol in gasoline. Our assessment is: 1. Less fossil energy in, 1.9 MJ versus the industry 2.14 MJ, per km output 2. Less CO2 out, 148 g versus the industry 164 g, per km output The assessment is based on the sources listed. It will be certified independently by a third party. The Well to Wheels approach is the basis of our assessment. 9

10 Corporate History Incorporation Proof of Process Pilot Scale Plant Emissions To Liquids 1 st Generation Patent Pre-Feasibility studies for large scale plants Seed financing Environmental permits Power Purchase Contract Enginering Company Partnership Basic Design Business model validation Construction of Industrial Scale Plant Site permits Oil of Iceland Fuel Off-take Contract Grant - Iceland Research Council Emissions to Liquids 2 nd Generation Patent Private Placement for Industrial Scale Plant Ground Break for Industrial Scale Plant 10 The key milestones of the company are: 1. Incorporation in Patent and Proof Process of CO2 to Liquids in Feasibility Study for Scalability and Feedstock Contracts in Permitting and Financing of the Industrial Scale Plant in Construction and Project Development in 2010 and beyond 10

11 Scaling Up Milestones 50 M liters 5 M liters.05 M liters 2007 PSP ISP CSP 1-3 PSP: Pilot Scale Plant ISP: Industrial Scale Plant CSP: Commercial Scale Plant 11 We are on tract with the following corporate development plan: 1. The pilot scale plant at.05 million liters of Renewable Methanol in 2007, currently under expansion for both production capacity, fuel testing and process development 2. The Industrial Scale Plant, named The George Olah Renewable Methanol Plant, in honor of Professor George Olah, Nobel Prize Laureate in Chemistry and author of the Methanol Economy beyond oil and gas, at 5 million liters of Renewable Methanol to be operational in January The Commercial Scale Plant in Iceland at 100 million liters, planned for end of 2013, under cooperation with the Municipality of Grindavik and HS Orka. 4. Other Commercial Scale Plants in locations with stranded energy, favorable fuel off take and permitting environment.

12 Construction Readiness of ISP Plant Technical and Economic Feasibility studies Patents and Applications Construction Agreement Feedstock Agreements Fuel Off Take Agreement Basic Design Permits and Licenses 12 Carbon Recycling International met the economic and technical prerequisites to finance the George Olah Plant under extremely difficult financial conditions: 1. Technology Validation by Third Party 2. Engineering Contracts with Credible Partners 3. Fuel Offtake Agreement 4. Feedstock Agreement for Land, Power, Carbon Dioxide, Water and Steam 5. Environmental and Construction Permitting 6. Technical, Finance, and Project Team 7. First in Class Board of Directors and Advisors 12

13 Plant On Line 01/01/2011 CSP-1 ISP 13 The George Olah Plant is co-located with the geothermal power generation at Svartsengi. The Plant has a nominal capacity of 5 million liters per annum of Renewable Methanol. It will remove near 10% of CO2 emitted of the emission ( 50,000 tonnes per annum) from the geothermal power plant at Svartsengi. It has a plot size of 1000 m2. The Plant is scheduled for operation in the beginning of 2011.

14 Fuel for Iceland Ex-Works CRI TD 14 Point of Sale for Carbon Recycling International is at the gate of the Plant. The distribution of Renewable Methanol consists of three companies: 1. Carbon Recycling International Renewable Methanol Production 2. Oliudreifing (ODR) Fuel Transport, Storage and Blending 3. Oil of Iceland (OLIS) Fuel Retailing There are 10 steps in the logistics of the Renewable Methanol Value Chain (Green): Production of Renewable Methanol by Carbon Recycling International (Orange): Transport, Storage, Blending, and Distribution by ODR (Yellow): Retailing by OLIS

15 Next Steps 1. Sales Operation of Industrial Plant 1/ 2011 Export to UK and US 2. Opportunities Wind energy: US and Canada Geothermal: Hawaii, New Zealand, and the Philippines 2. Growth Strategy Feedstock and Fuel Off-take Site Permits and Finance 15 Our focus is to complete the George Olah Plant within schedule and budget. The growth strategy depends on: 1. Construction costs 2. Power cost 3. Fuel off-take price 4. Financing costs 5. Permitting schedule 15

16 At Carbon Recycling International Be a Leader in Making Profitable Renewable Methanol by Recycling Carbon from Industrial Emissions Advance Technology for Cleaning Carbon Dioxide and Storing Intermittent Energy Employ Highly Skilled Green Work Force Work with Long Term Partners for Technology, Sales and Distribution Be a Leader in Making Profitable Renewable Methanol by Recycling Carbon from Industrial Emissions 2. Advance Technology for Cleaning Carbon Dioxide and Storing Intermittent Energy 3. Employ Highly Skilled Green Work Force 4. Work with Long Term Partners for Finance, Feedstock, Technology, Sales and Distribution 16

17 takk fyrir 17 We welcome you for a visit with us and Iceland. My contact information is: KC Tran CEO and Co-Founder Carbon Recycling International kc.tran@carbonrecycling.is Phone: