Power to fuel 3 rd Gen Biofuels from CO2

11 th European Technology Meeting

15. April 2015

E-Methanol as a Bio refinery Product

2

bse engineering Leipzig GmbH

Share our experience in a future market! In a joint effort with our project supervisors, planners and engineers, we were able to assume a

prominent position in the planning and realization process of Europe´s largest bio-ethanol complex.

You can become part of a growing renewable energies market by taking advantage of our service.

• Planning , authorization and execution of projects

• Administrative management

• Budgeting

• Investment planning

• Cost management

• Project management

Production start: spring 2005

Product: 800 m³ ethanol/ day

Budget: over 185 Mill. Euro

industrial and constructional planning involving bio-ethanol and sugar industry • schematic design, realization and administrative management • project and cost management

Mottelerstrasse 8 • 04155 Leipzig / Germany • phone +49 (0) 341 60912 0 • fax +49 (0) 341 60912 15 • www.bse-engineering.eu • bse-leipzig@gmx.de

• Technical Solution

• Market Condition

• Legal conditions

Content

3

Power production in Germany

• Power Export Germany in 2013 was 34 TWh

• Emission load for Germany 30 Mio to CO2/a

• Additional saving demand 22 Mio to up to 2020

• Missing Grid Infrastructure reduce the renewable Power

production capacity

• Missing the climate Targets 2020

• 656 TWh Consumption in the Transport sector

4

Energy Storage Volume of different storage systems

5

Storage of 4.800 kWh

*Berechnung ohne Umwandlungsverluste auf Basis der Heizwerte.

Solution must be the Chemical Energy storage

6

First Step of chemical Power Storage is Hydrogen

1. Electrolysis

Electrolysis O2

2H2 2H2O

Energy

density /Vol

Technical

Utilization

power

Electrolyzer

Alkaline Electrolysis

7

Type Token Level of

devel-

opment

Supplier Capacity per

module

[Nm³/h]

Pressure

[bar]

Alkaline

Electrolysis

AEL State

of the art

Etogas

Hydrogenics

Nel Hydrogen

400

60

485

0

10

0

Proton

Exchange

Membrane

Electrolysis

PEMEL Devel-

opment

CET H2

H-tec

Hydrogenics

160

3,6

1

14

30

70

High

Temperature

Electrolysis

HTEL Research Sunfire Not specified

8

Electrolyzer Technical Overview

2nd Step Chemical Power Storage increasing Energy density per Volume

Methanol Synthesis CO2 + 3H2 CH3OH + H2O 64 w-% CH3OH

36 w-% H2O

Methan Synthesis CO2 + 4H2 CH4 + 2H2O 30 w-% CH4

70 w-% H2O

4H 2H

4H 4H

The additional electric power of the electrolysis generats water in the methane reaction.

25% Capacity of electrolysis

9

Electrolysis

Electrolysis

Methanol Synthesis Catalyst MegaMax by Clariant

Reactions

MegaMax is a methanol synthesis catalysts, with improved activity and selectivity. The

catalysts are utilized for methanol synthesis from carbon monoxide, carbon dioxide and

hydrogen.

CO + 2H2 ↔ CH3OH ΔHR = - 91 kJ/mol

CO2 + 3H2 ↔ CH3OH + H2O ΔHR = - 49 kJ/mol

Both methanol forming reactions are interconnected with the water gas shift reaction:

CO + H2O ↔ CO2 + H2 ΔHR = - 42 kJ/mol

The above equilibrium reactions are exothermic, so low reaction temperatures and high

reaction pressures favor methanol yield.

10 State of the Art.

Methan Methanol plant

11

E-Methan Werlte Methanol plant SW

2nd Step Chemical Power Storage increasing Energy density per Volume

Methanol Synthesis CO2 + 3H2 CH3OH + H2O 64 w-% CH3OH

36 w-% H2O

Methan Synthesis CO2 + 4H2 CH4 + 2H2O 30 w-% CH4

70 w-% H2O

4H 2H

4H 4H

The additional electric power of the electrolysis generats water in the methane reaction.

25% Capacity of electrolysis

12

Electrolysis

Electrolysis

?

?

Sources of CO2 in Germany

• Flue gases up to 700 to/h, 10 to 15% Concentration

• Ethanol fermentation up to 50 to/h, 95% concentration

• Biogas Purification up to 0,7to/h, 90% concentration

13

CO2 as carbon source is available

Process flow diagram Ethanol

DDGS Storage & Loadout94

EQUIPMENT LIST

1 Grain Dump Pit

2 Grain Receiving Conveyors

3 Grain Receiving Elevator

4 Grain Storage

5 Grain Transfer Conveyors

6 Grain Transfer Elevator

7 Grain Receiving & Storage Bag House

8 Grain Receiving & Storage Bag House Blower

9 Grain Cleaner

10 Grain Cleanings Bin

11 Surge Bin

12 Weigh Feeder

13 Hammer Mill

14 Hammer Mill Conveyor

15 Milling Bag House

16 Milling Bag House Blower

17 Mingler

18 Mash Mix Tank

19 Mash Mix Tank Agitator

20 Cooker Feed Pump

21 Mash Mix Tank Recirculation Pump

22 Jet Cooker

23 Liquefaction Tank

24 Liquefaction Tank Recirculation Pump

25 Mash Cooler Pump

26 Process Condensate Preheaters

27 Mash Coolers

28 Final Mash Coolers

29 Fermenters

30 Fermenter Cleaners

31 Fermenter Pumps

32 Fermenter Coolers

33 Ethanol Absorber

34 Ethanol Absorber Circulation Pump

35 Ethanol Absorber Cooler

36 Ethanol Absorber Blower

37 Yeast Slurry Tank

38 Yeast Slurry Tank Cleaner

39 Yeast Slurry Pump

40 Yeast Slurry Cooler

41 CIP Caustic Tank

42 CIP Pump

43 Clean Caustic Tank

44 Beerwell

45 Beerwell Circulation Pump

46 Distillation Beer Feed Pump

47 Beer Preheater #1

48 Beer Stripper

49 Beer Stripper Reboiler

50 Beer Stripper Reboiler Pump

51 Vent Condenser

52 Beer Stripper Product Drum

53 Beer Stripper Product Pump

54 Beer Preheater #2

55 Final Condenser

56 Beer Stripper Stillage Pump

57 Stripper/Rectifier Feed Preheater

58 Stripper/Rectifier

59 Stripper/Rectifier Reflux Pump

60 Fusel Oil Cooler

61 Fusel Oil Decanter

62 Stripper/Rectifier Reboiler

63 Stripper/Rectifier Bottoms Pump

64 Mol Sieve Superheater

65 Mol Sieve Units

66 Mol Sieve Condenser

67 Ethanol Product Pump

68 Mol Sieve Regenerant Condenser

69 Mol Sieve Regenerant Pump

70 Mol Sieve Vacuum Pump

71 Mol Sieve Vacuum Pump Drum

72 Ethanol Product Cooler

73 Whole Stillage Tank

74 Whole Stillage Tank Agitator

75 Centrifuge Feed Pump

76 Stillage Centrifuge

77 Centrate Surge Tank

78 Backset Pump

79 Wet Cake Conveyor

80 Product Shift Tanks

81 Denaturant Tank

82 Denaturant Pump

83 Product Transfer Pump

84 Product Storage Tank

85 Product Loadout Pump

86 Cooling Tower

87 Cooling Tower Water Supply Pump

88 Boiler Treatment System

89 Boiler

90 Evaporation System

91 DDGS Drying System

92 Evaporator Condensate Tank

93 Evaporator Condensate Pump

Source Katzen inc

0,3 to CO2

0,3 to EtOH

0,3 to DDGS

1 to Feedstock

Combined Plant Expertise

15

Natural gas

Coal

Bio Mass…

Starch

Sugars

2 Gen feedstocks

AEL

PEMEL

HTEL

Catalyst

Thermo dynamics

Mass Balance Methanol (based of 1,0 t CO2 /h)

16

Ethanol production

Electrolysis

Steam generation

Methanol synthesis

C2H5OH 1t/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 Balance Methanol (based of 1,0 t CO2/h)

Echem

Echem

Eel

Echem

Etherm

CO2

Echem 4.3 MWh

Etherm

Ethanol production

Electrolysis

Steam generation

Methanol synthesis

O2

17

6.7 MWh

0.3 MWh

<4.0 MWh

Etherm

2.4 MWh 80 °C

Input / Output Methanol Plant

Input Output

Carbon dioxide

De-salted Water

1.0

1.16

t/h

t/h

Methanol

Oxygen

Steam

<0.69

1.03

0.39

t/h

t/h

t/h

Power

6.94

MWh Thermal Energy

Loss

Usable

Chemical Energy

0.83

2.70

<3.75

MWh

MWh

MWh

18 Energy Conversion Efficiency 54% without heat utilisation

(with maximum heat utilisation up to. 88%)

Energy density Chemical power storage vs e-mobility

1 cubicmeter of liquified power e-Methanol compares with 222 BMW i3!*

1 m³ CH3OH

=

*Speicherkapazität BMW i3 beträgt 21,6 kWh

19

Content

20

• Technical Solution

• Market Condition

• Legal conditions

Fossil Methanol Utilization

21

Fossil Methanol Demand

22

Overview Methanol Chemistry

23

Market Opportunities Description of the market opportunities of the E-Methanol

1. High energy content (15.67 MJ/l vs. 8.50 MJ/l H2)

2. M3 ‟Drop-in” transportation fuel in addition to BioEtOH

3. Higher blend with adjustments in the vehicles

4. E-MTBE in competition to Bio ETBE and MTBE

5. Auxiliary material in the Biodiesel production

6. Power generation in small scale CHP´s (BHKW´S)

7. Basic building block for chemical production

24

Market Condition MeOH fossil (EU)

0 €

50 €

100 €

150 €

200 €

250 €

300 €

350 €

400 €

450 €

500 €

Jan 0

9

Apr

09

Jul 09

Okt 0

9

Jan 1

0

Apr

10

Jul 10

Okt 1

0

Jan 1

1

Apr

11

Jul 11

Okt 1

1

Jan 1

2

Apr

12

Jul 12

Okt 1

2

Jan 1

3

Apr

13

Jul 13

Okt 1

3

Jan 1

4

Methanol Fossil

Market Price

25

Source: Methanex

Production Costs Power Price

26

3,50

465,36 0,0

1,0

2,0

3,0

4,0

5,0

6,0

0 200 400 600 800

Po

wer

Pri

ce n

et

[Ct/

kW

h]

Production Costs [€]

Ratio Power Price to Production Costs

productions costs methanol

Power Price EEX Future 03/13 – 03/14

For the calculation

35 €/MWh seams to be reasonable.

In addition to the EEX price there is normally a margin fee for the trader with 0.50 €/MWh.

27

Power Price EEX Spot 03/13 – 03/14

28

35 €/MWh

Content

29

• Package 2

Market Condition

- Market

- Leagal conditions

- Power Price

- Impacts

GHG Saving RED Methanol Stand Alone - Outlook

Definition of Methanol as BioMethanol in the RED/FQD?

30

In the ENVI Votes 24.02.2015 (AM\1050359EN.doc) amend: • Annex IX (RED) Feedstock's and fuels Article 2 “liquid renewable fuels non

biological origin” and “Carbon capture for transport purpose”

• Article 1 FQD “…methodologies for the calculating GHG emmissons from renewable liquid and gaseous fuels of non-biological origin and for carbon capture and utilization for transport purposes shall be adopted by 30. June 2016”

If this is the case than e-Methanol is produced from feedstock's listed in Part A of Annex IX and should considered two/four times their energy content.

Clarification after the decision of the amended RED / FQD.

GHG Saving RED Power input

31

Therefore the footprint has to be defined for chemical energy storage.

According Annex V Part C No 11, the GHG intensity of the production power process has to be considered in the calculation of actual value.

To reach the 60% target for Biofuel the power has to be less than 60 gCO2/kWh (standard value in Germany is 527 gCO2/kWh).

NON GO aspect for e-fuel!!!!!!

Power Price Components including fees ex tax

10,634

5,000

10,000

a

Ct/kWh Detachable load levy §18 AbLaV 0,009

Concession levy §2 (3) KAV 0,110

System Usage Charge levy §19 (2) StNEV 0,187

Offshore levy §17f EnWG 0,250

Margin Trader 0,050

EEG levy § 41 EEG 6,240

CHP levy § 9 (2) KWKG 0,178

Power Price 3,500

Power Grid Costs and reduced Concession levy

(Delivery Costs)

0,110

2014

Kosten Ct/kWh

32

Power Price Components Composition energy intensive industry

33

3.909

2.000

4.000

a

Ct/kWh Detachable load levy §18 AbLaV 0.009

Concession levy §2 (3) KAV 0.110

System Usage Charge levy §19 (2) StNEV 0.025

Offshore levy §17f EnWG 0.026

Margin Trader 0.050

EEG levy § 41 EEG 0,052

CHP levy § 9 (2) KWKG 0,025

Power Price 3,500

Power Grid Costs and reduced Concession

levy (Delivery Costs)

0,110

2014

Costs Ct/kWh

In order that power can be stored in chemicals, then the final product has to be taxed.

If this becomes the case than, there will be a sustainable business case for investments.

Power Price Components power for chemical Energy storage

Clarification of the power price components! 34

Conclusion

• Chemical Energy storage is technical possible

• CO2 as reasonable feedstock is available

• Industrial implementation is competitive

• Sustainable Framework is not in place

35

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