SIP Energy Carriers Updates and Establishment of Green Ammonia Consortium

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SIP Energy Carriers Updates and Establishment of Green Ammonia Consortium 26 February, 2019 Bunro SHIOZAWA Deputy Program Director SIP Energy Carriers 1

Contents 1. Hydrogen Energy Policy of Japan and SIP Energy Carriers 2. Major achievements of SIP Energy Carriers - NH 3 direct use technologies - (1) Use technologies of NH 3 as CO 2 free fuel or hydrogen energy carrier (2) Feasibility study on CO 2 free NH 3 supply chain 3. The way forward (1) Green Ammonia Consortium (2) For the implementation of CO 2 free NH 3 value chain in Japan 2

1. Hydrogen Energy Policy of Japan and SIP Energy Carriers 3

Policies and Actions toward a Low Carbon Society Speech by Prime Minister Abe at COP21 The key to acting against climate change without sacrificing economic growth is the development of innovative technologies. To illustrate, there are technologies to produce, store and transport hydrogen towards realizing CO 2 free societies, Council for Science, Technology and Innovation(CSTI) Hydrogen is one of key areas of CSTI strategies. SIP program was launched 2014 ( 5 years program ). Hydrogen energy carrier is one of 11 themes of SIP. SIP Energy Carriers Strategic Plan for Hydrogen Utilization (December 26, 2017) (Cabinet Meeting chaired by Prime Minster) Scenario for Basic Hydrogen Strategy (Direct use of ammonia is one of the most feasible options for the low-carbon society.) 4

Scenario of Basic Hydrogen Strategy 5

Scheme of CO 2 Free Hydrogen Value Chains Hydrogen production Transport (Energy carriers) Utilization Natural gas Petroleum Coal Reforming/ gasification Liquid hydrogen LH 2 (Δ253 ) Gasification Fuel cell vehicle Renewable energy H 2 Carbon dioxide capture and storage Organic hydrides (methyl cyclohexane) (H 2 6wt%) CH 3 3 H 2 MCH CH 3 H 2 Dehydrogenation Power generation Fuel cell H 2 Production by electricity and heat toluene NH 3 Ammonia Liquid: Δ33 or 8.5Bar (H 2 18wt%) MCH Direct use NH 3 fueled gas turbine Fuel cell Major achievements in NH 3 direct use tech. Mix combustion in coal fired boiler NH 3 furnace 6

IEA DG Dr. Birol s presentation slide - at the Hydrogen Energy Ministerial Meeting in October 2018-7

2. Major achievements of SIP Energy Carriers - NH 3 direct use technologies - 8

Achievements Commercializing 300 kw NH 3 (100%) gas turbine; and 2 MW NH 3 (20%) mixed combustion gas turbine. Ammonia-fueled gas turbine power generation Tohoku University / AIST / Toyota Energy Solutions / IHI Corporation CH 4 flame NH 3 flame 41.8 kw power generation was achieved by using 100% ammonia fueled micro gas turbine with less than 10 ppm NOx emission using an ordinary SCR device. 50kW (100% NH 3 ) Micro Gas Turbine 20% NH 3 / CH 4 flame Stable flame and low NOx emission were achieved by 2MW class gas turbine under the condition of co-fired 20% ammonia with city gas (methane). 2MW (20% NH 3 / CH 4 ) Gas Turbine 9

Achievements Advanced combined cycle gas turbine Mitsubishi Heavy Industries Engineering / Mitsubishi Hitachi Power Systems NH 3 to be used as hydrogen carrier. This R&D will continue after SIP Energy Carriers. Exhaust heat H 2 combustor NH 3 Decomposition system H 2 N 2 Residual NH 3 ~hundreds of MWs Hydrogen gas turbine Direct ammonia-fueled solid oxide fuel cell (SOFC) Kyoto University / Noritake Co., Limited / IHI Corporation Continue developing 300 kw NH 3 fueled SOFC. Development of 100% ammonia-fueled SOFC stack (direct supply of ammonia) and generated 1 kw of electrical power. The performance attained is equivalent to the hydrogen fueled SOFC. Fuel cell stack (Photo:courtesy of Noritake) Insulation materials Fuel cell Heat exchanger Hot test module SOFC system 10

Achievements The single-burner combustion test furnace Central Research Institute of Electric Power Industry Coal consumption Max. feeding rate of NH 3 Coal firing test furnace IHI Corporation Coal consumption Commercializing coal and NH 3 mixed combustion boiler. 100 kg/hr [760 kw : in put] 30 kg/hr [20% : LHV base] 1.6 ton/hr [10 MW : in put] NH 3 / pulverized coal flame NOx concentration (O2 6 %) [ppm] 350 300 250 200 150 Level for coal combustion Distance of the side NH3 port from the coal burner 100 1.0 m 1.4 m 50 1.8 m 2.2 m 0 0 25 50 75 100 Distributed percentage of NH 3 into the side wall [%] Max. feeding rate of NH 3 400 kg/hr [20% : LHV base] Ammonia was safely combusted. NOx is under 200 [ppm]. There is no ammonia slip in the exhaust gas. 11

Co-fired ammonia at the commercial coal power plant The video of the demonstration can be seen from the following URL https://www.youtube.com/watch?v=ldu-qmvwfdk 12

Industrial furnaces Osaka University / Taiyo Nippon Sanso Successfully controlled NOx generation below the environmental standard. Developed oxygen enriched combustion and staged combustion. Achievements 10kW model furnace Marine Engine JFE Engineering / National Institute of Maritime, Port and Aviation Technology Sub Engine. Maine Engine Pilot plant constructed. Developed a small scale CO 2 free NH 3 value chain from renewables. Development of ammonia synthesis process from CO 2 free hydrogen JGC Corporation / AIST / National Institute of Technology, Numazu College / JGC Catalysts and Chemicals Ltd Developed new catalysts and processes utilizing hydrogen derived from renewable energy. Constructed a demonstration plant at Fukushima Renewable Energy Institute (20kg-NH 3 /day). New catalyst for producing ammonia Ammonia Synthesis Demonstration Plant 13

Development of CO 2 free Ammonia Value Chain Technologies being developed by SIP Existing tech. CCS/EOR CO 2 Free NH 3 supply chain can be realized by existing techs. CO 2 NG Existing tech. NH 3 Gas Turbine Pulverized Coal + NH 3 Natural Gas Solar Energy Existing NH 3 Plant (HB Method) Source of H 2 will be shifted renewables in future. CO 2 Free NH 3 Existing tech. Transportation NH 3 Fuel cell (SOFC) CO 2 Free Marine Engine H 2 PV or CSP H 2 Production (CO 2 Free H 2 ) NH 3 Plant Cost Reduction Cost Reduction Under development SIP Industrial Furnaces All Rights Reserved by SIP 14

A Feasibility Study Conducted by IEEJ with having input from an engineering company, two trading companies and three power generation companies possessing coal fired power generation facilities. This study report will be completed shortly. Supply Utilization NG CO 2 Free NH 3 delivered to Japan Natural Gas HB NH 3 Plant CO 2 Pulverized Coal + NH 3 CCS/EOR Model suppliers Middle East Countries US Gulf Model Users: 3 Coal Fired Power Plants Remodeling of Coal Boiler NH 3 Unloading, Storage & Supply Facilities 15

3. The way forward 16

The Green Ammonia Consortium Dec. 2018 Objectives Development of a commercial CO2 free ammonia value chain toward low carbon society. Main activities (a) Promotion of collaborations between industry, government and academia. (b) Commercialization of NH3 utilization technologies and supply chain. (c) Studies on Feasibilities, Environmental Impact and Standard & Regulation (d) Strategy & Policy making (e) International collaborations Organization of GAC General Meeting Auditors Board of Directors Secretariat Planning & Operating Committee Committees or WGs to be established as necessary The Green Ammonia Consortium was originally established in July 2017. At that time, membership of the original consortium was only open for the entities which participated in SIP Energy Carriers. After SIP Energy Carriers ends in March 2019, a new The Green Ammonia Consortium will be established as an independent General Incorporated Association to be registered under the Japanese Law and its membership will be open for global entities which are interested in participating and are ready to contributing to the objectives of the new The Green Ammonia Consortium. 17

Membership 1 Japanese corporations are eligible as Regular Members. 2 Regular Members consist of two membership categories; i.e. (a) board members and (b) general members. (a) Board members serve as executives of GAC and members of Planning & Operating Committee, and can engage in all committees and working groups. (b) General members engage in all committees and working groups except Planning & Operating Committee. 3 Foreign corporations and individuals (academia, company alumnus etc.) are eligible as Associate Members. 4 Associate Members have access to all outputs and information developed by GAC. 5 Advisory Members are those experts or organizations which are so approved by the Board of Directors. Upon request by the Board of Directors, Advisory members participate in the work of Committees/WGs. The Board of Directors consists of the board members. Membership Fee Membership Admission Fee Annual Fee Regular Member Board 300,000 JPY (2,727 USD) 1,000,000 JPY (9,091 USD) General 300,000 JPY (2,727 USD) 500,000 JPY (4,545 USD) Associate Member Corporation 300,000 JPY (2,727 USD) 300,000 JPY (2,727 USD) Individual none 10,000 JPY (91 USD) Advisory Member none none (110 JPY/ USD) 18

Roadmap of Ammonia Supply Chain - Developed by private companies participating in SIP Energy Carriers - Existing Supply Terms & Conditions 2020 2025 2030 Natural Gas + CCS/EOR Renewables Utilization Coal power plant (~1,000MW) Industrial Furnaces SOFC Small size GTs (~0.3MW) Middle size GTs (~2MW) Large size GTs (100MW~) Engineering of Small Demonstration FS Engineering Commercialization FS, Engineering Development & Commercialization Supply of CO 2 -free Ammonia Start of Small Demonstration FS & Engineering of Large Scale Supply Development & Commercialization Implementation Development & Commercialization Implementation Implementation Implementation Supply of CO 2 -free Ammonia National goal on Import of CO 2 free NH 3 In 2030 : 3 million ton Implementation 19

Thank you for your attention. E-mail: shiozawab@sc.sumitomo-chem.co.jp 20