Electrochaea: Opportunity, Technology, Execution

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1 Electrochaea: Opportunity, Technology, Execution Mich Hein, PhD CEO, Electrochaea GmbH Tokyo, November 2016

2 Electrochaea Executive Summary Electrochaea s vision is to become the world s leading technology provider in power-to-gas energy storage Opportunity Conversion of low cost energy and carbon dioxide into natural gas, leveraging existing infrastructure Decarbonization of power generation, transportation and industrial processes Technology Proprietary, simple and robust biocatalytic methanation system Dynamic and scalable process to meet a broad range of conversion and storage applications (1 to >100 MW) Execution Expert team with proven track record 1 MWe commercial scale operation commissioned in Q1 2016, 10 MW project identified First product revenues in 2016 Funding Consortium of venture and strategic investors with 1:1 non-diluting capital 2

3 Biological Methanation Charging the natural gas grid Excess renewable power Grid congestion CO 2 emissions Established gas grid Decarbonization Need for renewable gas 3

4 BioCat Process Principle & Operating Parameters Power Water Electrolyzer Heat Oxygen Other H 2 Source H 2 CO 2 /Biogas Bioreactor (proprietary) CH 4 Heat Chemical Reactions: 1) Electrolysis 4H 2 O 4H 2 + 2O 2 + Heat 2) Methanation CO 2 + 4H 2 CH 4 + 2H 2 O + Heat Net Reaction CO 2 + 2H 2 O CH 4 + 2O 2 + Heat Operating Conditions: Temperature 62 C, Pressure 1 to 10 bar(a) 4

5 Market Grid-scale storage market driven by increase of renewables Power-to gas market of 1.7 bn US$ until 2024 Key driver: Increasing number of Wind & PV installations Installed revenue, Energy Storage for Wind and Solar Integration, World Markets: Target market share target of 25%, projected volume of 425 mn $ Additional growth driver: Carbon capture looking for CO 2 sink Operation of fossil power plants requires carbon capture to meet CO 2 targets Market for CCS of 8 bn US$ in 2021 (MarketsandMarkets 2016) 5

6 Opportunities for process integration Uses Electricity Heat Transportation fuel Chemical feedstock Suitable CO₂ Source Biogas Fermentation offgas Oxy combustion flue-gas Industrial Processes Other (landfill, atmospheric) Carbon Dioxide Source: Adapted from ZSW, Erneuerbares Methan aus Ökostrom, April

7 Rapid technology de-risking and scale-up 1 MW Commercial-Scale Field Trial Preparing for market entry with a commercial-scale demonstration unit, using an optimized reactor, Avedøre (DK) 50 kw 1 kw n/a Power Input Pre-Commercial Field Trial Process demonstration in a 5m³ stirred tank bioreactor using raw biogas, Foulum (DK) Lab-Scale Field Trial Biocatalytic capability test with raw biogas Basic Research In Dr. Mets laboratory at the University of Chicago Rapid technology de-risking and scale-up 7

8 Technology and Product BioCat: Biological methanation system in Megawatt scale Conversion of excess renewable power into biomethane 200 Nm 3 /h H 2 Heat 320 kw 50 Nm 3 /h CO 2 (from Biogas) BioMethane 50 Nm 3 /h 1 MW pilot plant in Avedøre (DK) Proprietary Bio-Catalyst (4 patents), in-house system design & operation Scaling: to 10 MW and 50 MW systems and regionally Competitive Advantage: dynamic operation, high tolerance to impurities 8

9 System performance and scaling The system is envisioned to be scaled up to 50 MWe Flow rates refer to a system including electrolyzer Electrical power input 50MW, corresponding to Nm³/h of Hydrogen Electrical power input 1MW, corresponding to 200 Nm³/h of Hydrogen CH₄ 50Nm³/h 500 kw CO₂ 2500Nm³/h CH₄ 2500 Nm³/h 25 MW CO₂ 50Nm³/h Heat ~ 300 kw Heat ~15 MW 1 MWe plant 50 MWe plant A 50 Mwe biomethanation system is capable of Storing 400GWh/a of electrical energy * More than Households consumption per year Achieving a CO 2 sequestration of tons/a * Emissions of ~19930 cars per year *Assumptions: Heat and electricity for one year 3.200kWh in a household with 4 person in Germany (2013) 132,6 gr/km emission per car and km driving average km per year in Germany (2014) 8000h/a of operation, electrolysis included 9

10 Executive Team Mich Hein, PhD Managing Director Co-founder and managing partner at Nidus Partners Passionate entrepreneur Raised $50 Mio for start-ups Doris Hafenbradl, PhD CTO 20 years of experience in biotech and pharmaceutical industries Expert in hyperthermophilic archaea Markus Forstmeier, PhD VP Business Development 15 years of experience in renewable energy and water treatment space Closed major partnerships and contracts >$25 Mio Fernando Keuchen Head of Engineering 15 years of experience in project management in the energy industry Commissioned >10 GW Power Generation 10

11 Business model and growth strategy Be the key technology provider for biological methanation Focus on key markets Tap multiple revenue streams Payments for feasibility studies on special feed gases Fee for initial engineering of BioCat core and interfaces Royalties for utilization of proprietary bio-catalyst Operation & maintenance fees What are the next steps? Expand BioCat plant size to grid scale at 10 MW and 50 MW Secure contracts and financing to execute first grid scale project Expand technology and IP advantage Reduce overall system cost Engage with industrial partners to identify first of a kind 50 MW project Strictly Confidential 11

12 Current and upcoming projects STORE&GO project in Switzerland Existing demo site with electrolysis, operated by Regio Energie Solothurn Electrochaea responsible for delivery of biomethanation system System to be operational end of 2017 Demonstration BioCat reactor with SoCal Gas and NREL in Colorado (USA) JDA with Mitsubishi Hitachi Power Systems Europe Focus on Multi-MW BioCat system for industrial off gases JV with Hungarian Utility MWM s incubator Project development for a 10 MW BioCat system to be installed in Hungary 12

13 Interest in Japanese market opportunities Biological methanation What are major market drivers? CO2 capture/reuse Energy Storage End product markets, product pricing (e.g. CNG?) What is the Japanese market for biological methanation? (in t CO2 or MWe ) What are the key barriers to market entry for biological methanation? Competitors for CO2, capital, power? Minimum size to be an attractive market solution We are looking forward to discuss with you. 13

14 Partners and Investors Electrochaea GmbH Semmelweisstrasse Planegg, Germany Markus Forstmeier, PhD, VP BD markus.forstmeier@electrochaea.com Bronze medalist 2016 in early stage category 14