MAN ES PtX

MAN ES PtXPower-to-X

June, 2020

Public

MAN Energy Solutions Business areas

2020/06/25Jacques Perret – Power-to-X Applications 2

Overview

Engines & Marine Systems Power PlantsTurbomachinery

Aftersales MAN PrimeServNew business area: New Solutions

Power-to-X, Hydrogen/Electrolysers, Hybrid

solutions, LNG-to-Power, Turnkey solutions,

MOSAS, ETES, CSP

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MAN Energy Solutions and Hydrogen

3

Growing range of solutions - Own portfolio, strategic investments & partnerships

Jacques Perret – Power-to-X Applications 2020/06/25

Examples:

Source: H-TEC Systems

Production… …Storage

Source: Hydrogenious Technologies

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Drivers of our company strategy


Decarbonizationcalls for new technologies

Limit global warming to below 2° Celsius

Greenhouse gas emissions -50% by 2030 (EU)

Carbon neutrality until 2050

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Decarbonization, new hurdles ahead


Current and coming changes raise new challenges

Electrical grid Industrial feedstock and heating

Long range and heavy duty transportation Building heating

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Power-to-X


A key to decarbonization

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High potential for Green H2 / Power fuels in Morocco


A new natural ressource for domestic market and export

* LSNG = Liquefied Synthetic Natural Gas

Massive PV / Wind potential

in Morocco for Renewable

Electricity supply at

extremelly low cost

MAN Energy Solutions

CO2

H2 CH4

H2

LSNG*Bild: Hydrogenious

Long distance Transport

today as LSNG*

Outlook: Hydrogen logistic

with LOHC Technology

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Decarbonization thanks to Power-to-X

8

Bildquelle: DENA – Deutsche Energie-Agentur


Current

MAN ES

Focus

How it works

Current

MAN ES

Focus

Public 2020/06/25

There are use cases for both energy vectors

SNG

Existing fossil fuel consumers are ready for SNG (i.e. direct

reduction of CO2, as SNG is CO2 neutral)

Existing gas grid can be used without limitations

Solution for marine and aviation (Emission reduction)

Lower cost for transport and storage

Usage of SNG emits CO2

CO2 required; Higher production cost

No CO2 emissions from H2 usage

Lower production cost

Development in new technology (engines, turbines etc.)

necessary: only fuel cell available

Limited infrastructure existing, e.g. H2 grids, fuel stations

Limitations in existing natural gas grid

9

Evaluation of hydrogen and SNG

Hydrogen

Markets for both H2 and SNG will develop in parallel

SNG: Synthetic Natural Gas

O2

H2

CO2

H2 SNG

Jacques Perret – Power-to-X Applications

Public 2020/06/25

Key facts:

6 MW power input for alkaline Electrolysis

SNG used as e-fuel for Audi customers

Methanation reactor by MAN ES Deggendorf

Plant In commercial operation since 2013

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MAN ES power-to-SNG reference in WerlteA demonstrator in operation since 2013


ElectrolyzerMethanation

System

Biogas plant

Picture source: Audi

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DWE®Reactors Methanation Technology


1st vs. 2nd Generation

DWE®Reactors Methanation 2nd-Generation

50MW – reference plant

DWE®Reactors Methanation 1st-Generation

6,3 MW – in operation since 2013

Achievement

Methane Content: 92-95%

Dynamic Operation: 70-100%

Footprint (lxbxh): 8 x 4 x 15,5 m³

Unit size ratio 78m³/MWel

Specific Capex Costs: 100%

Achievement

Methane Content: 95-97%

Dynamic Operation: 50-100%

Footprint (lxbxh): 14,5 x 6 x 10 m³

Unit size ratio: 17,4 m³/MWel

Specfic Capex Costs: 60%

Public 2020/06/25Jacques Perret – Power-to-X Applications

MAN ES 50 MW PtG plant layout - preliminary

12

MAN ES Power-to-Gas reference plant

Electrolysis

building (AEL or

PEM)

Step down

transformer (opt.)

Water treatment

& storage tanks

Amine gas

treating / CO2

separation

Methanation unit

incl. SNG treatment

Control air unit

Main plant media

interface (gas grid,

water, O2, etc.)

Cooling system

MAN ES provides full EPC

incl. operations & maintenance AEL: Alkaline Elektrolysis, PEM: Polymer Electrolyte Membrane Electrolysis

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MAN ES / H-TEC SYSTEMS Electrolysers solutions


H-TEC-SYSTEMS, privileged MAN Energy Solutions partner (40% shareholder)

ME 100/350 (225kW, 100kg H2/day) ME450/1400 (1MW, 450kg H2/day)

H-TEC SYSTEMS Series-ME electrolysers

Compact design in an ISO container

Capable of dynamic part load operation to enable grid balancing services

High conversion efficiency (74%), additional heat integration

5.0 hydrogen quality suitable for refuelling applications

Readily available product for effective sector integration solutions

ELECTROLYSERS - READY. SET. SUPPLY.

Under development: 10MW, 4,5tons H2/day

H-TEC SYSTEMS next generation

Compact design in three ISO containers

Perfectly suited for industrial P2X plants

Available for commissioning in 2023

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Green marine fuel


CO2 neutral shipping with MAN PtX

Teu: Twenty-foot equivalent unit

Source: MAN Study „11,000 teu container vessel – An ME-GI powered vessel fitted with

fuel gas supply system and boil-off gas handling“, 2018

11,000 TEUTypical container vessel

MAN ME-GI gas engine

18,000 ton/yr LNGMain fuel consumption per year,

7.5 roundtrips Dubai – Genua - Dubai

61MWPtG plant operating 8000 hrs./year

100% CO2 neutrality

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Sector coupling with Power-to-Gas

Carbon neutral shipping with MAN ES Technology

SNG = Synthetic Natural Gas (CH4) – LMG = Liquefied Methane Gas

CO2

CO2 - /

LNG - TanksEngines

CO2 Capture

and Storage

(on board)

Exhaust

system

CO2 free

exhaust gases

SNG

LMG

CO2

CO2

LMG

LMG

CO2

Green LSNG

Renewable

energy

MAN ES 50MW Power-to-Gas

(SNG) Plant


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MAN Energy Solutions developing EPC P2X plants

Own proprietary technology for Electrolysers and

Methanation reactors

Long experience in methanation, proposing already

2nd generation reactors

MAN ES currently developing several major P2X

projects

MAN ES seeking to develop further P2X projects in

Maghreb, and especially in Morocco : looking for

potential local partnership, industrial consumers, etc.

Take Aways


Jacques Perret

[email protected]

MAN Energy Solutions France

June 2020

Thank youvery much!

Public

All data provided in this document is non-binding.

This data serves informational purposes only and is especially not guaranteed in any way.

Depending on the subsequent specific individual projects, the relevant data may be subject to changes and

will be assessed and determined individually for each project. This will depend on the particular characteristics

of each individual project, especially specific site and operational conditions.

Disclaimer


Public

Backup

Jacques Perret – Power-to-X Applications 2020/06/25 19

Public

The game changers


Political measures :

► Paris Agreement to

limit temperature

increase to 1,5°C

► Carbon price

mechanisms

(EU, China)

► Renewable

energy targets

(67+ countries)

Global warming

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The game changers


Political measures :

► 100+ car « Green

Zones » in Europe

► ECA zones

multiplication

► Low emission

vehicle credits

mechanisms in

China, Europe,

or US

Local pollution

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Significant changes in energy system


Renewable Energy Sources:

► 240 GW/yr add. capacity planned until 2024

► Today world mix 26%, expected 30% in 2024

► High ambitions, up to 100% in some areas

Strong increase in Renewable Electricity share

Source: IEA Renewables 2019 report

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Significant changes in energy system


► 2 Million electric cars today in operation

► First H2 trains in operation

► 163 LNG fuelled ships in operation, > 80 ordered

Beginning of transition in transports

Public 2020/06/25Jacques Perret – Power-to-X Applications 24

PtX – use cases

Source: E2Fuels project; LNG: Liquified Natural Gas; OME: Polyoxymethylene Dimethyl Ether, synthetic fuel similar to Diesel

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Marine transport requires green LNG to fulfill IMO emission reduction targets


* Currently proposed target

50% reductionof greenhouse gases

from 2008 to 20501

Battery

Hydrogen

Methanol

Option

s

Green LNG

Green LNG is CO2 neutral

Uses existing infrastructure

Allows gradual transition from

fossil to renewable LNG

Reduce carbon footprint today

Public 2020/06/25Jacques Perret – Power-to-X Applications 26

CO2 free mobility applications with MAN ES / H-TEC SYSTEMS Solutions

For 8000h/a PtG, 1: picture © AUDI, 15000 km/yr 1 kg/100km; trains 600km/day; busses 60000km/yr

1 MWRenewable Power

Quelle: Alstom Quelle: Van Hool

1 MWH-TEC ME450/1400 Electrolyser

1000AUDI h-tron quattro1

Other usages: 2

H2 Trains

20+

H2 Busses

Green Hydrogen mobility

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Hydrogen will be increasingly blended to NG gas grids


Overview from 02/171

1 Source: Roland Berger, FCH2 JU, 2017, based on local regulations

2 sources: DVGW, ITM Power, NREL

Recent development (examples)2

Germany: 20% projected for 2030

UK: local pilot projects for up to 20%

USA: 5 – 15% regarded possible

Heterogenous development

Many countries without regulation so far

Existing consumers impose challenges

Limits however in pure hydrogen injection

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Exemplary feasibility for SNG plant


SNG: Synthetic Natural Gas; CNG: Compressed Natural Gas

Assumptions:

Plant size: 50MW electrical input to electrolysis

Operation: 8000 h/a

Electricity costs: 35 €/MWhel

Amortisation time: 10 years

CO2 by amine treatment plant

no income from CO2 avoidance

Renumeration of O2: 0.1 €/Nm³

Gas price examples in Europe:

Natural gas for industrial consumers: 20 - 65 €/MWh

Biogas: 50 - 80 €/MWh

CNG Petrol Station: 1.1 €/kg 80 €/MWh

0

200

400

600

800

1000

0 2000 4000 6000 8000

SN

G p

rice

[€

/MW

hgas_th

]

plant operating hours

Resulting SNG price

125 €/MWh

35 €/MWh

Biogas range

P2G shows difficult economics without CO2 tax

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There is a need for synthetic fuels policy action

Feasible production of synthetic fuels

requires:

No tax loads, incentive frame

Low cost RES for electricity supply over

> 4000 hours pear year

Financial support to enable market

development und subsequently cost

reduction

Incentives for users of carbon neutral fuels

PtX: Power to X; EEG: renewable energy law in Germany; RES: renewable energy sources


200MW/aNew PtX plants in EU

from 2020 onwards

250 bln. €Savings until 2050 with eFuels

compared to pure electrification

3000 – 6000 GWElectrolysis capacity in second

half of 21st century

“P2X is a necessary element of the global energy transition”

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Coming improvements of P2X economics


Massive renewable H2 production achievable in the long run

► Nascent market in small size

decentralized industrial H2

production ?

► Nascent hydrogen mobility

most dynamic market today ?

► Cost reduction by scaling up

needed for positive business

cases in other applications

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MAN ES Power-to-X (PtX)


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Energy transformation technology that converts

electricity into carbon-neutral synthetic fuels

which can be stored and later used by the mobility,

heat and electricity sectors

MAN PtG (power-to-gas): Renewable energy is

used to produce hydrogen via water electrolysis.

Together with CO2, the hydrogen forms synthetic

natural gas (SNG) in a methanation reactor

MAN PtL (power-to-liquid): Hydrogen is converted

into methanol, which plays a key role in synthetic

fuel production for transportation or aviation

MAN PtC (power-to-chemicals): Together with

nitrogen or other compounds, hydrogen forms

chemicals such as ammonia, ethylene or propylene

MAN ES PtX for carbon-neutral synthetic fuel production and long term energy storage


Public 2020/06/25

Picture Source PtG Plant: Audi

Input

el. Power @ electrolysis: 50 MW

Carbon Dioxide (CO2) @ CO2 >95%, H2O <5%, SO2 ≤0,01 ppm 5.1 t/h

Output

Methane (CH4) @ CH4 >95%, H2 + CO2 <5% 1.8 t/h

Oxygen (O2) @ 99.95% purity 7.3 t/h

Saturated Steam @ 270°C, 55barg 5 t/h

Footprint

Plant space requirements 85 x 100 m

Technology

Electrolysis type Alkaline or PEM

Methanation type Catalytic

CO2 separation Amine gas treating

Electrolysis Methanation

O2

Usage

Gas grid

connection

El. grid

connection

CO2

Supply

EPC plant supply

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MAN ES Scope of Supply and technical data


Public

HySynGas Project


Cornerstone for the North German Power-to-Gas-Hub

► Industrial scale gas plant in Brunsbüttel industrial park (State of Schleswig-Holstein in the North of Germany)

► Regional purchase of CO2 from combustion processes of local industry.

► Production of green hydrogen and SNG.

► Feed-in of SNG into the gas grid enables usage all over Germany. Additional off-take by local industry.

► Potential LNG terminal opens perspective for additional applications in maritime sector.

HySynGas in short :

► 50MW Electrolysis, >20 t H2/day

► Production of > 40 t SNG/day

► CO2-saving > 110 t CO2/day

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H-TEC SYSTEMS references


Hydrogen mobility : eFarm concept in Schleswig-Holstein

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Key elements of the eFarm concept

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Further projects

140 kW Testing Facility in Buttenwiesen (Bayern) in Operation

• Prototype & Test Bed at GP JOULE Site in Buttenwiesen

• Electric Load 140 kW

• Operational since February 2017

Prototype in Reußenköge (Schleswig-Holstein) in Operation

Customer Project in Westre (Schleswig-Holstein) in Production

• Prototype ME 100/350 at GP JOULE Site in Reußenköge

• Electric Load: nominal 225 kW, max. 350 kW

• Production Rate: 47 Nm³/h

• Operational since July 2017

• ME 100/350 for supply of H2 refuelling station

• Electric Load: nominal 225 kW, max. 350 kW

• Customer: Energie des Nordens

• Production rate: 47 Nm³/h

• Starting date: Q4 2019

1 MW Customer Project in Haurup (Schleswig-Holstein)

• ME450/1400 for injection into the gas pipeline in Haurup

• Project within NEW 4.0 regional network scope in Northern Germany

• Electric load 1 MW

• Customer: Energie des Nordens, Greenpeace Energy

• Production rate: 210 Nm³/h

• Starting date: 2020

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MAN ES offers proven PtG technology


MAN ES USPs

Proven MAN technology: Audi eGas plant operational since 2013

Comprehensive process know-how

Superior SNG quality

Single-source solution: Complete PtX solutions from one supplier

Cost-optimized and integrated MAN ES PtX plant solution

H-TEC USPs

Over 20 years experience in H2 business

Comprehensive technology & process know-how

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What we need to provide you with a PtX solution


First questionnaire

Availability & price of renewable energy?

Availability of high quality CO2 or suitable source, e.g. flue gas?

Availability of H2 (if applicable)?

Offtaker & price for SNG?

Type of SNG usage: feed to gas grid (pressure level?), storage, direct usage, liquefication?

Offtaker for steam & heat from the process?

Desired load curve of the plant?

Site location: distance to CO2 source? Distance to SNG offtaker (e.g. gas grid)? Distance to power grid?

Available space?

Climatic conditions (Design of cooling system)?

Public 2020/06/25

Renewable

EnergyElectrolysis Methanation Gas grid Energy

production

O2 CO2

H2 SNG

40

Energy flows for power-to-SNG-to-Power

ƞ 95% 65% 90% 97% 51% / 90%


50MW

24,5MW

(Combined cycle)

13,5MW

(electricity only)

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Simple Process Flow Diagram


RES: Renewable Energy Source

E

Fresh

water

Treated

water

Water

treatment

O2

CO2

Feed gas

mixer

Feed

gas

Product

gas

Gas drying &

conditioningElectrolysis Methanation

reactor

SNG

H2

H2O H2O

Natural

Gas Grid

RES

Input

Output

Public 2020/06/25

Energy transport

via el. grid

SNG: Synthetic natural gas

Renewable Energy

Electricity GridH2 feed in

Methanation

Consumers

Capacity

bottleneck

Energy transport

via gas grid

Electrolysis

SNG feed in

Gas Grid

42

Gas grid supports electricity grid for energy transport


Public 2020/06/25Jacques Perret – Power-to-X Applications

Projects: World & Europe

43

Market overview

52%

10%

7%

7%

3%

3%

3%

3%

3%3%

3% 3%

Germany United Kingdom Scotland

Canada Italy Netherlands

Norway Thailand United States

Australia Belgium China

Global projects (P2H2 & P2CH4)1:

33 projects operating in total, status of 2017

Installed P2H2 & P2CH4 plants in Europe2:

Status of 2016

1Source:Navigant Energy Storage Tracker 3Q2017; 2Source: ENEA, The Potential of Power to Gas, 10/16

Documents

MAN ES PtX