Methanol fuel from power and CO 2 emissions Opportuni1es and challenges

Transcription

1 Carbon Recycling Interna1onal Methanol fuel from power and CO 2 emissions Opportuni1es and challenges Benedikt Stefansson Director of Business Development 2015 European Methanol Policy Forum Brussels October

2 Our impera1ve 16/10/2015 2

3 Global GHG impact from human and natural ac1vity 25% Transport +15 Gt/yr All numbers in billions of tons CO 2 Industry, agriculture and transport Nature on land Oceans Source: UN IPCC / IEA 3 16/10/2015

4 Drivers for GHG emissions intensity GHG Emissions = Popula1on Affluence Efficiency GDP Energy CO 2 Region CO 2 Popula@on Popula@on GDP Energy World +51% +33% +57% - 27% - 1% EU % +6% +37% - 31% - 14% US +4% +26% +38% - 35% - 7% China +262% +19% +579% - 59% +9% India +237% +42% +179% - 37% +35% Source: IEA CO2 Emissions From Fuel Combus1on /10/2015 4

5 Low carbon intensity methanol: energy carrier in a circular economy Renewable power or byproduct hydrogen CO 2 Transport and industry Flue gas emissions CO 2 Methanol (or deriva1ves) CRI Power- to- Liquids technology 5

6 Cleaner future by reducing pollu1on on Well- to- Wheels basis Currently: Separate ac1vi1es to meet targets for reduced pollu1on Well- to- Tank Tank- to- Wheel Fuel industry Car industry Future: Integrated approach to reduce pollu1on on Well- to- Wheels basis Well Wheel 6 16/10/2015

7 From problem to solu1on (one bite at a 1me) 16/10/2015 7

8 Brief history of CRI Company launched in Reykjavik Technology development Pilot plant produc1on Plant engineering Plant construction Plant opening with 1,300 t/yr capacity First sales (exports and domes1c) Methanex largest methanol provider invests Plant expanded to 4,000 t/yr capacity Marke1ng of technology & partnerships Investment by Geely owner of Volvo Cars

9 CRI s Power- to- Liquids plagorm Industry partners Industry emissions CRI integrated CCU and PtL solu@on OTake CO 2 Capture Electricity Hydrogen Genera1on Clean Conversion Low carbon- intensity methanol CH 3 OH Industry H 2 byproduct

10 CRI first of its kind Power- to- Liquids facility in Iceland Plant Reykjavik George Olah CO 2 to methanol plant, Orkubraut 2, Grindavik, Iceland First commissioning: 2012 Capacity expansion: 2015 CCU throughput: 5,600 t/yr CO 2 Electrolyzer capacity: 800 t/yr H 2 (1200 Nm 3 /hr) Produc@on capacity: 4,000 t/yr methanol Carbon Recycling Interna1onal - Confiden1al

11 Customers 11 12

12 Framework to compare CO 2 life cycle emissions of fuels Gasoline & diesel CO 2 CO 2 CO 2 =84 gco 2 /MJ Biofuels CO 2 CO 2 CO 2 =33-54 gco2/mj Vulcanol CO 2 CO gco2/mj 12

13 First PtL plant with ISCC+ cer1fica1on of sustainability Actual GHG emission values using ISCC EU GHG module* kgco2e/t RM gco2e/mj RM LHV Emissions related to raw- material: 0 0 Emissions of electricity produc1on (grid) Emissions of steam produc1on Emissions of process specific inputs: Emissions of waste water treatment: Total process- specific emissions: Plant- to- port (50 km by road) Port- to- port (2000 km container ship) Total transport- specific emissions Total emissions CIF Ro`erdam Compared to reference value of 83.8 gco2e/mj fossil >90% reduc@on *Based on EU direc@ve 2009/30/EC (FQD) 16/10/

14 Towards a sustainable business 16/10/

15 Project at Steag Lünen coal-power plant, Germany Input: 1 MW electric t/yr CO 2 Output: 400 t/yr methanol Capacity: 1 t/day MethCO 2 Horizon 2020 ( 8.6/m) Collabora1on with STEAG, MHPSE, Hydrogenics and EU universi1es CO2 capture Hydrogen produc1on Clean conversion 15

16 The MHPSE CRI Partnership Duisburg Reykjavik Mitsubishi- Hitachi Power Systems Europe (MHPSE) and CRI have combined their resources to offer integrated industrial solu1ons for carbon capture and power- to- methanol produc1on. By joining forces, the two companies can offer clients a complete suite of services from: Feasibility studies; Turn- key contracts, including design, construc1on of modularized systems Pre- commissioning, erec1on, on- site commissioning, operator training; Post- purchase services and off- take contracts 16 16/10/2015

17 Low Carbon Intensity Methanol produc1on processes Energy source Upstream technology LCIM feedstocks LCIM output Water electrolysis CO2 Electricity Iron and steel waste gas or byproduct gas Petrochemical waste and byproduct gas Sodium chloride electrolysis Hydrocarbon arc furnace Hydrogen separa1on process H2 Low carbon intensity methanol Waste or residues Gasifica1on Syngas MSW

18 The impact of regula1on 16/10/

19 EU fuel regulatory framework: moving from agricultural policy to sustainability focus EU 2009: 20% GHG reduc1on/20% efficiency improvement/20% renewable share) Renewable Energy Direc1ve (2009/28;RED) Fuel Quality Direc1ve (2009/30; FQD) Renewable energy in transport: 10% minimum share by % 5% 0% % - 2% - 4% 84 g CO 2 /MJ - 6% CO 2 footprint of all fuel: Minimum 6% reduc@on by Biofuel CO 2 footprint: Maximum 34 gco2/mj aier ILUC amendment (to RED and FQD) 1 Maximum 7% from crop based fuel 3 Double coun@ng energy from advanced fuels 2 Minimum 0.5% from advanced fuel 4 CO2 release because of land use change reported Transposed by EEA Member States before July 2017

20 The three pillars of EU policy for renewable transport fuels of non- biological origin Inclusive terminology Sustainability criteria Guarantees of Origin Define the term renewable gaseous or liquid fuel of non- biological origin Provide sustainability criteria and a methodology to verify the green- house gas footprint States should have the op1on to use Guarantees of Origin for energy to meet transport target We urge the Council, Parliament and Commission to implement policy which allows us to power transport with low carbon intensity fuels from renewable energy today cri.is etogas.com eu.mhps.com nel- hydrogen.com hydrogenics.com argos.nl

21 Share of renewable fuels in EU- 28 road transport un1l : 0.4% of energy 2013: 4.7% of energy 2020: 10% of energy Biofuels 7% maximum Advanced 0.5% minimum Consump1on of gasoline and diesel Consump1on of biofuels Biofuels (0.4%) 1.1 Advanced Gasoline 97.0 Diesel Total Mtoe Consump1on of biofuels Biofuels (4.7%) 13.6 Advanced (0.0%) Gasoline 69.1 Diesel Total Mtoe Consump1on of advanced & bio Biofuels (6%) 18.5 Advanced (4%) 11.0 Gasoline 64.0 Diesel Total Mtoe Source: Eurostat, EurObserver, European Commission

22 EU framework mixes two metrics: CO 2 reduc1on per unit energy and overall share of renewable energy CO2 reduc@on g/mj Vulcanol CCU with byproduct hydrogen Vulcanol with H 2 from EU grid electricity Biofuel Fossil comparator 100% Renewable energy share 22

23 CO 2 reduc1on is the relevant metric gco 2 / MJ gco 2 / MJ gco 2 / MJ gco 2 / MJ gco 2 / MJ Carbon Recycling Interna1onal Proprietary Do not quote 16/10/

24 Market value of renewable methanol in Europe Market prices ( /mt) Market premia Vulcanol Bioethanol Double coun1ng premium $16/GJ x 40 $16/GJ x MeOH from natural gas $10/GJ x 20 $10/GJ x /mt 710/mt 24

25 Methanol from CO2 and electricity: energy carrier and storage for renewable transi1on Intermisent energy sources 1 2 Load- balancing power genera1on CO2 3 Load- balancing PtL produc1on Distribu@on 4 Low CO 2 liquid fuel Consumers 6 Balanced grid supply 5 M15- M100 Fuel blend 25

26 Two birds with one stone Power to fuel Demand side management 16/10/

27 Guarantees of origin are missing instrument for transport target problem of double dipping can be addressed and eliminated CO g/mj With guarantees of origin With guarantees of origin Fossil comparator 100% Renewable energy share 27

28 Summary Current RED finally provides roadmap to non- bio renewable fuels and CCU fuels Non- bio renewable fuels will play vital role as a scalable and sustainable solu1on Level playing field a necessary condi1on for the development of advanced fuels PtL technology demonstrated at scale and addresses upstream and downstream issues Carbon Recycling Interna1onal Proprietary Do not quote 16/10/

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