CCC Overview Non-confidential

8/3/2019 CCC Overview Non-confidential

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Overview of CCC process, economics &

market opportunity

Michael Priestnall2011(non-confidential)

Profitable CCS via electrochemical mineral carbonation


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Cambridge Carbon CapturePresentation overview

Mineral carbonation overview

Cambridge Carbon Captures unique technology

Economics & applications

Commercialisation & carbon impact


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Cambridge Carbon CaptureMineral carbonation overview

Primary process by which carbon dioxide is removed from the atmosphere

>99% worlds carbon reservoir is locked in limestone & dolomite

Thermodynamically favourable, but kinetically slow

CCC has electrochemical & aqueous-phase process chemistry to do this process quickly & cheaply

Mineral carbonation refers to the conversion of silicates to solid carbonates,

mimicking the natural process by which CO2 is removed from the atmosphere

~1012 tonnes CO2 inatmosphere

~109 t/yr

CO2cycle

CO2(g) + CaSiO3weathering CO32-(aq) + Ca2+(aq) + SiO2mineralisation CaCO3(s)

~1018 tonnes CO2 incarbonate rocks


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Cambridge Carbon CaptureGeological CCS vs Mineral Carbonation

Mineral carbonation avoids the compression, transport and long term

storage of gaseous/liquefied CO2

30% cost and energy penalty

More expensive than nuclear or on-shorewind

Estimated40-90/tonne* CO2 versusrecent ETS price of ~15/tonne

Public acceptance issues

Relatively well developed technology

Geological CCS Mineral carbonation

Stable, safe solid products

Output materials are usable in a variety ofapplications

Wastes can be used as inputs

Primary challenges are the energy intensivecarbon capture & mineral processing steps(CCCs chemistry addresses this)

* Source: McKinsey


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Mg, Ca, Fesilicates oroxides

MINERAL MINE

INDUSTRIAL WASTE

FOSSIL FUEL

Carbon-containing fuel(or flue gas CO2)

CARBON-FREEELECTRICITY

METALS & SILICA

Carbonatedcapture fluid

(K2CO3)

CARBONATES

DIGESTION

& CARBONATION

POWER GENERATION& CARBON CAPTURE

Power generation & capture steps integrated; carbon free power generation

is combined with the conversion of low value inputs to useful materials

e.g. serpentines,olivines

e.g. steel slags,mining waste,

red mud

Regeneratedcapture fluid (alkalimetal hydroxide)

Cambridge Carbon CaptureProcess overview

(+ water + CO2 free air)

5


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Illustrative process for a 500MW plant, coal and olivine

Cambridge Carbon CaptureProcess overview

MINERAL MINE

FOSSIL FUEL

Coal*

CARBON-FREEELECTRICITY

METALS & SILICA

K2CO3CARBONATES

DIGESTION& CARBONATION

POWER GENERATION& CARBON CAPTURE

SerpentineMg3Si2O5(OH)4

KOH

C + O2 + 2KOH K2CO3 + H2O

* Coal is variable in composition and is not pure carbon.However, for the sake of illustration the equations arewritten in terms of pure carbon.

Mg(OH)2 + K2CO3

MgCO3 + 2KOH

0.5Mg2SiO4 + H2OMg(OH)2 + 0.5SiO2

Overall: C(s) + O2(g) + 0.5Mg2SiO4(s) = MgCO3(s) + 0.5SiO2(s)

[+energy]0.9 milliontonnes/yr

~ 4 milliontonnes/yr

500 MWe power plant

>6.3 million tonnes/yrcarbonates

~500MW electricity

~12,000 tonnes/yr Ni

~4.5 million tonnes/yr SiO2

5-20% of energy output

(+ water + CO2 free air)


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Illustrative process for a flue gas CO2 and olivine

Cambridge Carbon CaptureProcess overview (flue gas CO2)

MINERAL INPUT

POWER PLANT

Flue gasCO2

PURIFIED FLUE GAS

SILICA

K2CO3CARBONATES

DIGESTION& CARBONATION(4)

CARBONCAPTURE

OlivineMg2SiO4

(1)

KOH

CO2 + 2KOH K2CO3 + H2O[and/or: CO2 + KOH KHCO3

(2)]

(1) Olivine is a common mineral and is used toillustrate the process. A large variety of Mg,Ca, & Fe oxides, hydroxides and silicatescould be used also. These could be minedminerals or wastes such as fly ashes or slagsfrom metal production.

Carbonation:

Mg(OH)2 + K2CO3MgCO3 + 2KOH

Digestion:

0.5Mg2SiO4 + H2OMg(OH)2 + 0.5SiO2

(3)

Overall: CO2(g) + 0.5Mg2SiO4(s) = MgCO3(s) + 0.5SiO2(s)

(2) Carbonate (CO32-)and bicarbonate (HCO3

-) arein equilibrium in solution depending on pH. Theequations can be written in terms of either.

(3) Somewhat simplified for clarity. Actuallyproceeds via a two steps.

(4) Shown as a single vessel for simplicity. May infact be performed in two separate vessels.

Poweroverhead


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Energy and capital requirements for mineralisation are reduced; carbon

free power generation is combined with the production of useful materials

CCC Process

Combines a number of features whichreduce energy & capital requirements andimprove process economics:

Advanced digestion routes are usedto convert silicates to reactiveoxides/salts in a low energy process

Carbon-containing fuels areefficiently, cleanly & cheaplyconverted to electricity via directelectro-chemical oxidation

Power generation and capture steps

are integrated more efficient, fewerlosses

Options to use CCC chemistry fordirect flue-gas CO2 sequestration

Process (by-)products are high-puritychemicals, metals and/or aggregates

Features

100% carbon capture feasible

Allows additional 15% power capture (CO2 to carbonate reaction) offsets energy required to digest/activate mineral feedstock

Economic CCS option higher process efficiency and revenuesfrom mineral products cover costs of CCS

Scalable from high value niches to large scale CCS

Feedstock flexibility - in principle, any calcium or magnesiumcontaining feedstock can be used

Wastes appropriate for use in smaller scale applications

Available volumes of relevant minerals (ultramafics andserpentines) match those needed for CCS

Volumes of carbonate produced match aggregates market

No requirement for pipeline, storage infrastructure, & sites

No safety concerns

Challenges:

Transport logistics & supply chain development

Optimising digestion & precipitation chemistry and process

Cambridge Carbon CaptureFeatures & benefits


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Cambridge Carbon CaptureInput and output materials

Alkaline waste products such as ashes, bauxite red muds, and steelmaking slags can be used as inputs to the CCC process

Remediation mechanism for hazardous wastes

Landfilling of air pollution collection dusts and slags can cost >100/tonne

Carbonate outputs can be consolidated to building materials &aggregates

Route to turning CO2 into high-value solid building materials at a global scale

Average price of carbonate powders is ~10/tonne, and is a >300 billionmarket

Other high value phases can be extracted providing additional valuedrivers

High value metals can be extracted, e.g. serpentine is typically 0.3% Ni

Cementations phases can be isolated and replace high value cements

Amorphous silica is extracted as a by-product, used as a rubber filler

Conversion of low value minerals or negative value wastes to valuable

materials outputs provides a significant & immediate commercial driver

Provides direct economic incentive to apply CCS today


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Cambridge Carbon CaptureApplications

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The CCC process is scalable and is applicable to a diverse range of markets

from waste treatment to utility scale CCS

Iron, steel and aluminiumindustry

Remediation of hazardouswastes; on-site cleanelectricity; CO2 permits

Minerals & mining industry

Remediation of mining wastes;on-site clean electricity

Industrial waste processingindustry

Profitable stabilisationprocess, avoidance of landfilltaxes

The aluminium industry produces ~100MT of red mud each year and the steelindustry about ~150MT of alkaline slag

Waste remediation andtreatment

Utilities and major powergenerators

Lower cost CCS option,technology differentiator,green energy that meets localrenewable obligations

Oil, gas & coal companies

Environmental & politicalcredit, CCS solution forcustomers, differentiation &value-add

Extraction andproduction of materials

Mining companies

Utilisation of marginalfeedstocks/wastes; on-site

clean electricity

Cement and buildingmaterials companies -

Lower cost, lower CO2manufacturing process,revenues from by-productclean-electricity generation

Large scale CCS

Global carbonate materials marketworth >300 billion/year & volumes

match CCS, of which high valuecements are ~3bn tonnes

IEA estimates CCS market ~$5 trillion2010-2050


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Cambridge Carbon CaptureFinancial modelling

The CCC process combines the following potential revenuestreams:

1) Clean, low cost electrical power2) Production of bulk materials (e.g. aggregates, cements,

concretes)3) Extraction of high value materials (e.g. metals)

4) Remediation of input wastes5) Carbon credits (where available)

Multiple revenues streams off-set the energy penalty fordigestion and carbonation and additional capital cost

Financial modelling* has shown that the CCC process can beprofitable at a range of scales for carbon prices ~20/tonne

In the most promising scenarios the process is profitablewithout subsidy even at zero carbon price

Key factors affecting the profitability include the efficiency ofthe power plant, the capex and opex for the digestion process,and the delta between input & output material value

Financial modelling has shown that the CCC process can be profitable

without subsidy under a range of scenarios

HydrocarbonsSilicate minerals

POWERGENERATION &

CAPTURE

DIGESTION &CARBONATION

CO2free electricity Silica and metal

by-products

Alkalinewastes

Remediationcredit

Carbon credits

Carbonate constructionmaterials

* Modelling performed by CCC in collaboration with the Judge Business School


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Cambridge Carbon CaptureApplication scenario

Example: Small power plant

100 MW scale plant, operating at 80%capacity

Produces 700,000 MWh/year of carbon freepower

~1m tonnes/year of mineral input required atcost of ~5/tonne

Produces ~800,000 tonnes of carbonatedaggregate material with a value of ~7/tonne

Annual profit of ~20m

The CCC process can be profitable without subsidy today


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Example: How CCCs process can be profitable at 7bn tonne/yr CO2 global-scale

REVENUES (lowest): COSTS (highest):

330 billion/yr (global market for aggregate materials) 350 billion/yr (7bn t/a @ 50/tonne CO2)90 billion/yr (abatement value at ~13/tonne CO2)420bn revenues(materials products + CO2 abatement) > 350bn costs(for CO2 mineralisation)

MARKET:

~8,000TWh/yr coal-fired electricity emits ~7bn t/yr CO2 3300 bn (period 2010-2050) global spend on CCS technology (IEA estimate)

global annual power growth ~2.5% + ~2% replacement

Cambridge Carbon CaptureApplication scenario


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*very approximate data (source: Calera) Million tonnes/yr(USA)

$/tonne

(USA)

US annual Market

$billion

Global estimate

$billion

Mineral fillers 100 100 10 100

Soil stabilisation 100 30 3 30

Light wt aggregate 200 40 8 80

Sand & aggregate

3000 7 21 210cementitious materials 24 60 1.4 14

bricks 20 20 0.4 4

drywall 20 25 0.5 5

Concrete blocks

50 30 1.5 15cement 120 80 10 100

Masonry cement 4 1000 4 40

Cambridge Carbon CaptureCarbonate materials markets*


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Cambridge Carbon CaptureDevelopment status

All steps of the process have been demonstrated, core IP secured:

Operation of a direct oxidation alkaline fuel cell to generate electrical power withsimultaneous, integral capture of product CO2

Regeneration of electrolyte & operation using regenerated electrolyte

Identification of practicable low-energy, low-cost digestion and mineralcarbonation processes

CCCs team consists ofincludes experienced technology developmentprofessionals and eminent academics

Development partners include Universities of Cambridge, Nottingham andSheffield and other expert research & technology organisations

Near term focus:

Engaging with industrial partners in initial target markets JDAs to develop pilot

scale processes and initial field trials Developing relations with key supply chain partners such as resource

companies & process engineering companies

Deepening relationships with expert RTOs to further develop digestion &

carbonation technology

Demonstration of the complete process at pilot-scale (10 tonnes/yr) in 2011/12followed by a small-scale (100-1000 tonne/yr) field trial in 2012/13

The CCC process has been proven at laboratory scale and development

partners are being engaged for scale up and commercialisation

Position[2Theta](Copper (Cu))

10 20 30 40 50 60

Counts

0

5000

10000

15000

NottA3 mix12-10-10


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Cambridge Carbon CaptureCarbon reduction potential

100% carbon capture has been demonstrated; massive potential for carbon

emission reductions CCC has demonstrated compete carbon capture using a methanol

DOAFC and hydroxide electrolyte (output CO2 level lower than air!)

The favourable economics of the CCC process potentially enablesCCS to be applied to the entire global fossil power generationindustry

Carbon saving potential is clearly vast potentially could address entire ~7billion tonne CO2/year industrial power sector

For illustration, applied to UK power generation sector:

Installation in 20% of UK power generation capacity and assuming a 20%penalty (much larger than anticipated) carbon savings of 48Mt/year1

Even small scale early stage industrial applications have huge

potential carbon impact:

Processing of 20% of bauxite red mud produced each year would save~20Mt CO2/year

2

Processing of 20% of steel making slags produced per year would save~10 MT CO2/year

3

Displacement of 1% of carbonate production would result in savings of150MT/year4

K2CO

3+ CaO @

100mACO

2level [relative units]

atmosphere 6.1 (~390ppm CO2)

fuel cell air outlet 4.1 (~260ppm CO2)

1 UK installed capacity of coal and gas fired generation is~28 GW and ~32 GW, emitting ~300 MT of CO2 per year.Assuming a 20% penalty for transport and losses in thesystem then the annual saving for a 20% uptake wouldbe: 300 * (1-0.2) * 0.2 = 48 MT CO2/year in the UK.

2 ~100 MT of alkaline oxide "Red Mud" is produced eachyear which can absorb about 1 tonne of CO2/tonne.Therefore if 20% of this Red Mud were processed eachyear the saving would be 100x1x0.2 = 20Mt

3 About 150 MT/year of steel slags are produced per year.These slags contain 30-50 wt% CaO/MgO and can absorb~0.33 tonne of CO2/tonne. If 20% were processed, thesaving would therefore 150*1/3*0.2 = 10MT

4 ~0.5tonnes of CO2 are absorbed per tonne of outputcarbonate product. Global aggregate & cement market is~30bn tonnes/yr. Assuming displacement of 1% ofproduction would result in savings of 150MT/year


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Cambridge Carbon CaptureSummary

A profitable approach to carbon capture to service the $1trindustrial & $5tr power generation CCS market, now to 2050

Uses CO2 to convert problem wastes or low-value silicateminerals to valuable solid carbonates while efficientlygenerating low cost zero-carbon electricity

Unique IP, proven & demonstrated at laboratory scale

Avoids cost, infrastructure & acceptability issues ofcompression, transport and storage of gaseous/liquefied CO2

Scalable and applicable to a diverse range of markets fromwaste treatment to high-value metals & minerals productionto industrial & utility scale CCS

A real-world solution that CCCs customers are funding nowfor their immediate strategic business applications

Breakthrough enabling technology to address the currentimpasse in commercial CCS deployment

Cambridge Carbon Capture is developing unique chemical processes that

safely, profitably and permanently store CO2 in useful solid materials


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Funding partners:Technology Strategy Board

East of England Development Agency

Renewables East

Cambridge Enterprise

Commercial customers

Technology development collaborators:

University of Cambridge Dept. Materials Science

Centre of Innovation in CCS (U. Nottingham)

University of Sheffield Dept. Materials Science

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Cambridge Carbon CapturePartners & Customers

[email protected]

www.cacaca.co.uk

Cambridge Carbon Capture, Hauser Forum, Charles Babbage Road,Cambridge, CB3 0GT, UK
mailto:[email protected]:[email protected]

Documents

CCC Overview Non-confidential