Renewable Energies and the Hydrogen Economy Claude Heller Director Group R&D Programs Hydrogen Energy, Healthcare and advanced Markets 1
Agenda 1 Air Liquide Group 2 Global warming transformation of the global energy system 3 Air Liquide drives innovation in clean mobility and ambitions to maintain leadership across the full value chain of its products 4 Hydrogen is at the heart of the Energy Transition 5 Air Liquide ambitions to lead activation of Hydrogen Energy Markets 6 Low Carbon Hydrogen pathways Blue Hydrogen, accelerator of the Hydrogen Economy 7 Sector coupling between electricity and gas 2
1 Air Liquide Group
The world leader in gases, technologies and services for INDUSTRY a wide range of industrial processes for our customers: energy, metals, food, chemicals, automotive, pharmaceuticals HEALTH hospitals patients at home hygiene and specialty ingredients 4
2017 key figures ~65,000 EMPLOYEES PRESENT IN 80 COUNTRIES MORE THAN 3.5 MILLION CUSTOMERS & PATIENTS REVENUE > 20bn NET PROFIT > 2bn CASH FLOW > 4bn 2017 Figures 5
Our scientific territory: essential small molecules Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide s scientific territory and have been at the core of the company s activities since its creation in 1902. Separating the air components to take advantage of their properties Producing molecules from natural resources of the planet O 2 N 2 Ar H 2 He SiH 4 C 2 H 2 CO 6 OXYGEN NITROGEN ARGON AND RARE GASES HYDROGEN HELIUM SILANE ACETYLENE CARBON MONOXIDE
Employee diversity ~65,000 employees Diversity of nationalities, training, expertise Geographical diversity ASIA-PACIFIC 16% MIDDLE EAST & AFRICA 5% 2017 employees BY REGION EUROPE 38% 2017 Figures 7 AMERICAS 41%
2 Global warming transformation of the global energy system 8
Toward a low carbon global economy: many visions, some must-have Paris agreement Not sufficient for the 2 trajectory Glass Key changes - Coal: has to stay underground - Efficiency: more with less - CCS: decarbonize fossil fuels - Electrification of primary sources (RES) and of usages Rockets Reductions primarily in advanced economies 9
3a Air Liquide drives innovation in clean mobility 10
Air Liquide drives innovation in clean mobility 1 Bio-GNV 2 Refrigerated transport (Blueeze, CryoCity) 3 Hydrogen Mobility 11
LNG/CNG, a solution for clean transportation Running on biomethane reduces: Noise by 50% NOx emissions by 80% Particulate matter by 90% CO 2 emissions by up to 90% Source: JEC Well to wheels analysis Version 4a - March 2014 12
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Transportation Refrigeration Unit (TRU) today Today : autonomous diesel refrigeration unit : Paradox = much higher local pollution than trucks engines High carbon footprint (diesel + HFC) Noisy especially during night deliveries or driver pause Limited cold chain performance for urban deliveries (several doors opening) & when T increases Limited performance over the years Trucks Trailers Emissions of Euro VI truck with diesel TRU = Emissions of 17 to 20 Euro VI dry van trucks (up to 40 if frozen food)!! Euro VI : comparable in stringency to the US 2010 standards 14
Straight truck equipped with blueeze TM Liquid Nitrogen Tank capacity from 430 to 930 liters Overall length from 2 210 to 2 960 mm Diameter from 650 to 762 mm (shown here fitted on a truck fuelled with Natural Gas)
Cryocity innovation at a glance: a clean & cold cooling unit for LCVs Vessel - Heat exchanger for indirect cooling Including an innovating system for regulation and defrosting 2 Web app: Quantities prediction tool 3 1 CO2 filling station LCO2 gun connector 16
Initiating innovative business models : ex Taxi Fleet in Paris Paris - Alma 2015 Hype, First Hydrogen Taxi Fleet in the world, in partnership with STEP Launched during COP 21 in 2015 3 Hydrogen refuelling stations in Ile-de-France for fleet growth Paris - Orly Airport 2017 3 new Hydrogen stations in France in Lyon, Grenoble and Saint-Lô Objectives 600 Versailles 2018 5 75 2015 2017 2020
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3b Air Liquide ambitions to maintain leadership across the full value chain 19
Technology leveraged at every step in the chain Air Liquide is mastering the whole hydrogen value chain Delivery Efficient Production 1 2 3 4 Application Sustainable Safe Reliable Storage
Presence across the whole biogas value chain 21
4 H 2 Energy At the heart of the energy transition
The Hydrogen Council A global CEO-level initiative, launched at the World Economic Forum 2017, in Davos, January 2017 With the ambition to: Accelerate their significant investment in the development and commercialization of the hydrogen and fuel cell sectors. Encourage key stakeholders increase their backing of hydrogen as part of the future energy mix with appropriate policies and supporting schemes. Composed of leading energy, transport and industry companies with a united vision and long-term ambition for hydrogen to foster the energy transition Membership increased from 13 steering members to 33 Steering members and 21 supporting members From 11 countries, covering three main regions : Europe, Asia and North America Co-chaired in 2018 by Air Liquide & Hyundai http://hydrogencouncil.com/ 23 McKinsey & Company 23
24 Collage of photos from 2017 to be added World Economic Forum Davos, January 2017
McKinsey & Company 25
There are seven roles for hydrogen in the energy transition Enable the renewable energy system Decarbonize end uses Enable large-scale renewables integration and power generation 1 Distribute energy across sectors and regions 2 4 5 Decarbonize transportation Decarbonize industry energy use 3 Act as a buffer to increase system resilience 6 7 Help decarbonize building heating and power Serve as feedstock, using captured carbon SOURCE: Hydrogen Council McKinsey & Company 26
McKinsey & Company 27
McKinsey & Company 28
Important milestones can be reached already in 2030 SOURCE: Hydrogen Council McKinsey & Company 29
5 Air Liquide ambitions to lead activation of H2 Energy Markets 30
Air Liquide ambitions to lead activation of H2 Energy Markets 1 Co-founder of the Hydrogen Council 2 Industry 3 Mobility 4 Multiple routes for low carbon H2 31
Hydrogen for industry Existing industrial usages of H 2 H 2 Refining Ammonia High grade heat Objective: Shift to low carbon H 2 New H 2 markets Steel production Chemical products Recovered Objective: CO 2 Develop new usages for H 2 to replace fossil fuels
40 years of development in Hydrogen for our customers Production & Supply chain Distribution Networks Markets Segments Key Figures Production US Gulf Coast Process industries Oil & Gas > 14 bn m 3 /yr Steel, Glass > 1,850 km H 2 pipeline Supply-chain Singapore Northern EU Electronics Transportation Space > 46 large H 2 /CO plants > 40 electrolysers in operation > 2 bn sales THIS DOCUMENT IS PUBLIC 3 33 3 June 28th 2018
Schematic carbon flow inside an integrated steel works Share of carbon (CO+CO2) in by-product gases will be provided by Voestalpine Stahl GmbH THIS DOCUMENT IS PUBLIC 34 June 28th 2018
CO 2 - Based Methanol: 1st generation plant Air Liquide Engineering & Construction is able to license this technology and design plants with COMMERCIAL GUARANTEES attached. Based on better performance of catalysts and appropriate design optimizations, the single stage synthesis loop can deliver comparable production capacity, even without the RWGS stage! Lurgi 1995 patent scheme* including RWGS stage * H. Göhna and P. König, Patent Number: EP 0682002 A1, 1995 Single stage synthesis loop for 1 st generation CO 2 to Methanol THIS DOCUMENT IS PUBLIC 35 June 28th 2018
DECARBONIZE TRANSPORT Focus on Transport - FCEVs will play an essential role Weight Tons 10,000+ Projected economic attractiveness Bubble size representing the relative annual energy consumption of this vehicle type in 2013 BEV FCEV Bio- and (H 2 -based) synthetic fuels 1,000 1 100 10 Small cars/urban mobility 2 Light commercial vehicles 1 1 Medium to large cars², fleets and taxis 0.1 10 1 Battery-hydrogen hybrid to ensure sufficient power 2 Split in A- and B-segment LDVs (small cars) and C+-segment LDVs (medium to large cars) based on a 30% market share of A/B-segment cars and a 50% less energy demand Source: Toyota, Hyundai, Daimler 100 1,000+ Average mileage per day/trip Km
Hydrogen safety stakes Accurately calculating the effects distances, the safety distances and design adapted barriers to hydrogen mobility (users, urban environment, ) Support to Design Support to Permitting Support to Regulations, Codes and Standards 37
Hydrogen mobility markets: Ready to scale TODAY Trucks 100 kg/day per truck Ferries 1 T/day Cruise ships 10 T/day Material handling vehicles 100 kg/day per site Buses 20 kg/day per bus Trains 150 kg/day per train Individual cars 100-200 kg/day per station Drones Airplanes Applications Bicycles & scooters
Air Liquide H 2 Energy Investments to date - Examples Americas Europe ME - Asia Key Elements Mobility for Professionals US+EU 2013-2017 9 sites Mobility for Consumers California 2014-2017 5 HRS THIS DOCUMENT IS PUBLIC Mobility for Consumers US North-East 2015 12 HRS + Supply chain Power to Gas Denmark 2014-2015 5 HRS + 1 Electrolyzer Mobility for Consumers Paris 2015-2017 3 HRS Mobility for Consumers Germany 2014 27% of 100 HRS Mobility for Consumers Dubai HRS 2016 Mobility for Consumers Japan 2014-2017 6 HRS 25% of 80 HRS by 2021 > 32 HRS for FCEV (controlled by AL) > Member of 2 consortia developing HRS networks, each time with 25% of 80-100 HRS > 9 HRS for Forklifts > H2 Supply chain in the US and Denmark 5 Startups 39 June 28th 2018
Mobility for Consumers Japan Kawasaki Air Liquide and 10 large Japanese companies have agreed an action plan for the construction of a Hydrogen station network in Japan > Stated ambition of the Japanese government > Air Liquide will install and operate around 20 stations by 2021. 6 HRS installed by Air Liquide in cities of Nagoya, Toyota, Kawasaki, Kobe, Fukuoka and Saga. Nagoya Atsuta Overall deployment figures FCEV s: 1 500 200 2 300 40 000 H 2 stations: 100 40 H 2 900 320 H 2 H 2 H 2 THIS DOCUMENT IS PUBLIC June 28th 2018 2015 2016 2017 2021 2015 Q1 2018 2025 2030
6 Low Carbon Hydrogen pathways 41
Low carbon hydrogen pathways Biomethane Electrolysis low carbon electricity Natural Gas + Carbon Capture and Storage (CCUS)
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Power to Gas Denmark 40% renewable energy from wind Air Liquide masters the whole value chain from production, to storage and distribution through its network of 5 HRS. Largest European industrial power-to-h 2 demonstrator, project lead by Air Liquide 44 Renewable Energies and the Hydrogen Economy, Air Liquide ambition > Started in January 2018 > 1.25 MW PEM Electrolyser > Demonstrate the complete value chain from hydrogen renewable energy production to end users. > Hydrogen delivered to local industrial customer > Decarbonated hydrogen used for clean mobility through the network of 5 H 2 stations operated by Air Liquide
Clean Hydrogen CCS Low Hanging Fruit Accelerator of the Hydrogen Economy ZEP EC Clean Hydrogen Workshop, Brussels, 8 November 2017 Claude Heller (Chair of the ZEP Clean Hydrogen Working Group) European Zero Emission Technology and Innovation Platform
Clean Hydrogen Accelerator of the Hydrogen Economy 0,06 5 Clean Hydrogen Cost with Natural Gas price update Air Liquide internal update (Nov. 2017) Low High Gas Price /MWh 20 40 9 th Trondheim Conference on CO2 Capture, Transport and Storage TCCS-9 (June 14, 2017) Claude Heller (Air Liquide), Guido Magneschi (GCCSI), Kristin Jordal (SINTEF) Europe Conditions Based on 100,000 m3/h SMR ZEP-EC Clean Hydrogen Workshop 8th Nov. 2017, Brussels
How Clean H2 would benefit Green H2 Use of the extended hydrogen infrastructure (e.g. pipes or storage caverns) thanks to synergies with Clean Hydrogen Power projects (e.g. Magnum) Participation to a large size Hydrogen Energy market activated by the Clean Hydrogen route, thus going across the death valley, allowing to benefit from volume effect on costs ZEP-EC Clean Hydrogen Workshop 8th Nov. 2017, Brussels
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Cryocap H2 on Steam Methane Reformer PSA Tail gas PSA Natural Gas Steam Methane Reformer Shift H2 CO 2 capture rate: up to 98% from syngas Combination of Membrane and Cryogenics technologies Fuel Gas System H2 Recycling Extra H2 production by 10 to 20% CO2 99+% Cost reduction: up to 30% compared to MDEA MEDAL Membranes Cryogenics Low cost production of HP or Liquid CO2 49 CRYOCAP H2
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7 Sector coupling between Electricity and Gas 52
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Multi-generation Fuel Cell Air Liquide Paris R&D Center 54
Looking beyond Early movers prove that it is sustainable Need to further increase the momentum: > Implement incentive policies > Secure deployments > Coordinate the players > Set up the first large-scale projects 55 Renewable Energies and the Hydrogen Economy, Air Liquide ambition
"Hydrogen is really at the heart of the energy transition. As we can produce heat and power directly from hydrogen in a clean way, we easily understand why it is important for this transition. It's the beginning of a journey, we've created a momentum and now it's all about scaling up!" Benoît Potier, CEO, Air Liquide 56 Renewable Energies and the Hydrogen Economy, Air Liquide ambition