Carbon Capture and Utilizationfor Transport purposes

19th World Ethanol & Biofuels 2016

10 November 2016, Brussels (Belgium)

Green CO2 Markets

Company Presentation

2

• Existing company since 1990 as consultant for client

engineering and project management

• Since 2012 continuous development in the field of

CO2 utilization

• Different speeches and expert consultations on

international conferences and EU commission

• New market development for small scale methanol

plants

• Various project developments for E-Methanol plants

up to 100,000 t

• Initiator of full service package (EPCM) of small

scale Methanol plants including engineering,

licensing and execution

Some of our ClientsOver 25 years of Success

3

• Future Challenges

• Technical Solution

• Market conditions

• Legal conditions

Content

4

Emission Savings From Carbon Capture and ReplacementFuture Challenges

• Value of Ethanol is based on GHG emission savings

• How to improve the life cycle greenhouse gas emissions

per unit in existing Ethanol plants?

5

Creating an energy carrier in the transport fuel market!

Carbon Utilisation From FeedstockMass Balance

6

Co

nve

rsio

n

100 %

Carbon

in

Feedstock

45 %

23 %

26 %

EtOH

CO2

DDGS

Wheat

The carbon utilisation of feedstock can be increased from 45 % to 68 %

by using CCR!

Power Production in GermanyFuture Challenges

• Power export balance Germany in 2015 was 47 TWh

• Emission load for Germany 30 Mio. tCO2/a

• Deactivation and payment of renewable energy plants

6 TWh

• Additional saving demand 22 Mio. t up to 2020

• Missing grid infrastructure reduce the renewable power

production capacity

• Missing the climate targets 2020

• 730 TWh consumption in the transport sector in 2014

7Solution must be the Chemical Energy storage!

Identified Chemical Energy StorageVolume of Different Energy Sources

0,6

1,0

1,9

9,1

24,0

0

1

10

100

Synthetic fuels Methanol* Methane (200bar)* Hydrogen Lithium-Ionen-Akku

Vo

lum

en

in

m³

Storage of 4,800 kWh

*Calculation without conversion losses based on the lower heat values

8

• Future Challenges

• Technical Solution

• Market conditions

• Legal conditions

Content

9

First Step is ElectrolysisProduction of Advanced Fuels

10

Water electrolysis:

Alternative chloralkali electrolysis:

Alkaline electrolyser 2 MWO2

H2

H2O

ElectricityElectrolysis

Identified Advanced FuelsTechnical Solution

Property Hydrogen Methane MethanolSynthetic

hydrocarbons

Hazard

(2)* (2) (3) (4)

Density0,0899 kg/m³

(4)

0,656 kg/m³

(3)

792 kg/m³

(1)

720…775 kg/m³

(1)

Energy density120 MJ/kg

(1)

50 MJ/kg

(2)

20 MJ/kg

(3)

40 MJ/kg

(2)

Molecular

effusion

Very high

(5)

High

(4)

Medium

(3)

Medium

(3)

Ignition

temperature

560 °C

(2)

595 °C

(2)

455 °C

(2)

200…410 °C

(3)

Degree of

performance (Ø)

Satisfying

2.8

Satisfying

2.6

Good

2.4

Good

2.6

11*Number in brackets is the position of the evaluation.

Second Step is Methanol SynthesisProduction of Advanced Fuels

Catalytic, exothermic reaction of CO2 and H2 to Methanol

and Water

12

O2

H2

H2O

Electricity

ElectrolysisMethanolSynthesis

CO2

CH3OH

Methanol plant Island

H2O

Bio-MProduction of Bio-Methanol from Biogenic CO2 Sources

Objectives:

• Development of a new flexible and sustainable process for producing methanol from biogenic carbon dioxide and „green“ hydrogen

• Demonstrate technical feasibility and industrial relevance

• Evaluation of stress resistant, stable catalyst which comply with the needs of a dynamic energy market

Project duration:

• 2015-10-01 – 2017-06-30

Consortium

13

Screening catalystBio-M

14

Testing commercial catalyst:

Proofing of CO2

Definition of the performing

data

Evaluation of physic and

chemical stress relevance

under fluctuated conditions

Identification „best-case“

Catalyst for fluctuated

Optimization of the rectorBio-M

15

• CFD-simulation inside the reactor

• Target:

- Optimal Heat and flow management

- Efficient maintenance

- Yield increasing

- Shortened start up shut down

Fluctuate Conditions and FeedsProcess Flow

16Source: Bio-M

Simulation of the process under fluctuating conditions

Fluctuate Conditions and FeedsCatalyst Activity

170 20 40 60

4000000

6000000

8000000

10000000

12000000

Are

a C

H3O

H

TOS in h

CO/CO2-feed

CO2-feed

0 20 40 60 80 100 120 140 160

0

5000000

10000000

15000000

20000000

CO/CO2-feed

2. N2O RFC

CO2-feed

CO/CO2-feed

Are

a C

H3O

H

TOS in h

CO/CO2-feed

1. N2O RFC

30 bar

0 20 40 60 80

5000000

5500000

6000000

6500000

7000000

Are

a C

H3O

H

TOS in h

Methanol: Referenz B

Source: Bio-M

Fluctuate Conditions and FeedsTotal Efficiency and Energy Balance

Total Energy Demand

• Power demand electrolysis 10 MW

• Electricity compressor 0.260 MW

• Steam 0.438 MW

Energy Output

• Heat to Beer Preheater (85°C) 2.988 MW

• Methanol 4.950 MW

Total Efficiency app. 74 %

18Source: Bio-M

Mass BalanceMethanol (based on 1,0 tCO2/h)

19

Ethanolproduction

Electrolysis

Steamgeneration

Methanol synthesis

C2H5OH1t/h

CH3OH

H2O

H2O Steam

CO2

O2

H2

1.23 t/h

1.09 t/h 0.14 t/h

1.00 t/h

0.7 t/h

0.41 t/h

Energy BalanceMethanol (based on 1,0 tCO2/h)

Echem

Echem

Eel

Echem

Etherm

CO2

Echem 4.3 MWh

Etherm

Ethanolproduction

Electrolysis

Steamgeneration

Methanol synthesis

O2

20

6.7 MWh

0.3 MWh

4.0 MWh

Etherm

2.4 MWh80 °C

• Future Challenges

• Technical Solution

• Market conditions

• Legal conditions

Content

21

Usage of Methanol by End-Use

22

Energy DensityChemical Power Storage vs E-Mobility

1 cubic meter of liquefied power E-Methanol compares

with 222 BMW i3 (electric fuel car)!*

1 m³ E-Methanol

=

*Storage capacity of one BMW i3 is 21,6 kWh.

23

Market Volume

Large Methanol demand in transport sector (EU 2015):

• MTBE 5.5 Mio. t/y

• Biodiesel 1.1 Mio. t/y

• Direct blending gasoline (potential) 4.2 Mio. t/y

Demand of Advanced Fuels (EU target 2020):

• 1.4 Mio. t/y Methanol in gasoline to achieve the 0.5% sub target

This requires 40 Methanol plants (~ 30,000 t/y)

Potential investment: ~ 2.0 Billion €

Demand of flexibility of the power system in Germany:

• Up to 2.0 Mio. t/y

This requires 20 Methanol plants (~ 100,000 t/y)

Potential investment: ~ 2.9 Billion €

24

Methanol and

Small-Scale Methanol

Plants are the present

solution of the energy

transition.

Methanol as Fuel Applications

Application Description

Substitute for gasoline (direct

blending) +

The direct blending to gasoline is possible up to 3 wt.% without any

technical modifications of the engines, but a solubilizing is necessary

which is to take into account in pricing.

+The distribution channel is existent and corresponds to that of

Bioethanol.

+ The exemption from the energy tax is not final clarified.

Substitute for gasoline by further

processing into MTBE (Methyl-tert-

butyether)

+The blending of MTBE is possible without technical modification and is

State-of-the-Art.

+The distribution channel is existent and corresponds to that of

Bioethanol.

+The further processing of methanol to MTBE is an additional value of

the refineries.

- An additional processing step is necessary.

Catalyst for the production of Biodiesel+

The usage of renewable methanol as catalyst for Biodiesel can be

support the reduction of GHG-emissions.

+High added value, pricing is based on the effect of GHG-emission

saving and not by energy content.

25

Example CAPEX / OPEXSmall-Scale Methanol Plant

26

Name Value (approx)

Plant capacity 10 MW

Investment cost ~ 20 Mio €

Running cost (ex

power)~ 2.4 Mio €

Potential Revenues* ~ 4.7 Mio €

ROI 12 %

Amortisation 5,85 a

Efficiency > 74 %

energy

fuel

Market flexibility

stable growth market

• Future Challenges

• Technical Solution

• Market conditions

• Legal conditions

Content

27

Definition of new Advanced Fuels in the Amended RED/FQD Since 09/2015

28

Article 2 Number 10 FQD (NEW)

ANNEX IX Part A. RED (NEW)

Article 7a 6 b) FQD (NEW)

ANNEX IX Part A. RED (NEW)

renewable liquid and gaseous transport

fuels of non-biological origin” means liquid

or gaseous fuels other than biofuels whose

energy content comes from renewable

energy sources other than biomass, and

which are used in transport

Carbon capture and utilization for

transport purposes, if the energy

source is renewable

Suited for Methanol from CO2 in Bioethanol

production if renewable power stems from

wind or solar

Suited for Methanol from CO2 and

renewable energy of biomass

Default Values exist!

Hence suited for GHG quota

Default Values have to be established by

2017!

Hence risk for use on GHG obligation

This improve the emission savings up to

74 %

79 %

GHG Saving RED EthanolStand Alone Plant – Usage of CCR

29

Default Value Wheat Ethanol 44 gCO2eq/MJ

Default Value sugar beet Ethanol 40 gCO2eq/MJ

Minus emission savings from CCR 22,2 gCO2eq/MJ

Actual Emissions Future Emissions

GHG SavingPower Input as Feedstock

Therefore the CO2 footprint has to be defined for chemical energy storage and power system service.

Power is feedstock and national GHG emission footprint of power has to be used. Carbon capture and utilization for transport purposes has no Default Value. According to FQD the GHG intensity of the eec (Power or hydrogen as feedstock) has to be considered in the calculation of actual value.

30

References of bse

31

• 2014 Feasibility study MeOH from

Bioethanol CO2 50 MW

• 2015 Start Bio-M: Intermitting MeOH

production from green CO2, Germany

• 2015/16 Business case study chemical energy

storages via MeOH

• 2016 Pre-Engineering MeOH from flue gas

CO2 WtE 5 MW

• 2016 Pre-Engineering MeOH from flue gas

CO2 WtE 10 MW

• 2016 Pre-Engineering MeOH from flue gas

CO2 WtE 1 MW

• 2016 Strategy development of 2 biomass

power plant for integrated chemical

CO2 utilization 100 MW

How we will ExecuteMain Units and our Consortium

32

Methanol

Offtake

CO2-Separation

Licencing

Methanol Synthesis

Electrolysis

Methanol Distillation

Power Supply

Mode

Reference LettersSupport from Key Players

33

Thank you for your attention!

Christian Schweitzer

Mottelerstrasse 8

04155 Leipzig, Germany

phone +49 341 609 12 0

fax +49 341 609 12 15

email office@bse-engineering.eu

web www.bse-engineering.de

bse Engineering Leipzig GmbH