CCU TECHNOLOGIES IN ENERGY INTENSIVE INDUSTRIES

A F Re S M e wo r ks h o p

Dec 3, 2019

CCU TECHNOLOGIES IN ENERGY INTENSIVE INDUSTRIES

A w o r k s h o p

CO2 Emissions-to-LiquidsÓmar Sigurbjörnsson – Carbon Recycling International

Index

1. Introduction of CRI

2. Overview of Emissions-to-Liquids and its implementation in industry

3. Pathways from CO2 to products

4. EU regulations: drivers and definitions

5. Understanding LCA for CCU

6. Emerging applications of methanol as fuel

11/29/20194

CRI in a nutshell

Launched in 2006 in Iceland

Private equity financed by investors from Iceland, US, Canada and China

Develops CO2-to-Methanol process technology

Built, owns & operates first industrial scale CO2-to-Methanol plant

Experienced team covering full value chain from R&D, to engineering and marketing

• Core idea: Liquid carrier for renewable energy using recycled CO₂

• Process: One-step catalytic reaction of CO₂and Hydrogen to produce Methanol

• Scalable solution - applicable to diverse industries and locations

• No fossil fuel inputs, no arable land needed, no harm to the environment

• Net reduction of GHG’s by 90+% compared to fossil fuels

Enabling a circular economy

ETL Technology

Reference - CRI’s GO plantTechnology and business model innovation

• First commissioning: 2012 Capacity expansion: 2015

• Commercial demonstration plant to prove technical and commercial viability

• First to recycle kilotons of CO2 from flue gas to produce liquid transport fuel

• All feedstock and utilities locally sourced (geothermal)• No fossil fuel used

• ISCC+ certification of GHG emission savings • 90-100% reduction compared to fossil fuels

• Platform for technology development, new technology demonstrations and operator training

5600 t/yr CO2

800 t/yr H2

Methanol loop

4,000 t/yr methanol

Implementing CO2-to-Methanol in industryEU Horizon 2020 projects

7

Project: MefCO2Site: Niederaußem, NRW, Germany

Hydrogen source: PEM electrolysis (variable load)

CO2 source: Post combustion capture

Capacity: 1 t/d methanol

Current status: Completed

Project: FReSMe

Site: Luleå, Lapland, Sweden

Hydrogen source: Blast furnace gas / PEM electrolysis

CO2 source: Blast furnace gas - SEWGS separation

Capacity: 1 t/d methanol

Current status: Commissioning

Next step: Operation (spring 2020)

CO2-to-Methanol in the CCU / Power-to-X ecosystem

8

Thermal Power Plant

Industrial Process

Gas Reforming

Fermentation / Digester

Fertilizer Plant

Petrochemical Plant

CO2 PCC capture & conditioning

CO2 cleaning

Steel and coke residual gas

Chemical plant purge gas

Dehydrogenation Plant

Chlor-Alkali byproduct

Renewable Power

Water

H2 capture and conditioning

Water electrolyzer

React w. isobutylene

MtG process

Esterification

Dehydration

Oligomerization

M100 (cars/ships)

MTBE

Synthetic gasoline

FAME biodiesel

Dimethylether(DME)

Oxymethylether(OME)

MtO process Ethyl- or Propylene

Formaldehyde Resins

Acetic acid Solvents, paint, PET

Chloromethane Silicone

Methylamines Dietary supplements

MMA Acrylic sheets

Gasoline blending

CRI ETL platform

Methanol

CCU: at the intersection of different industries and interests

9

Process industry

Power sector Mobility and freight

Government

Public & NGOs

Fossil fuels

Auto industry

Ag industryStakeholders

Direct ecosystem Indirect ecosystem

ETS: Emissions Trading System; RED: Renewable Energy Directive; ED: Emissions Directive; IMO: International Maritime Organization

Cap on crop-based fuels

2022 2024 2026 2028 2030

0%

2%

4%

6%

8%

10%

12%

14%

2004 2006 2008 2010 2012 2014 2016 2018 2020

In cars and trucks: EU mandates use of renewable fuel or electricity

10

Source: Eurostat, directive 2009/28, RED II directive * Million tons of methanol equivalent

RED 1 implemented RED 2: focus on sustainability

2020 Mandate

2030 MandateShare of energy

Current technology but use of crop-based and waste lipids biofuels capped

24 million tons* growth in demand

Focus on more sustainable fuels – driver for CCU

Water electrolysis

Separation of CO and H2

H2

Syngas

Recycled carbon fuel

Energy sources Output (EU directives)

Renewable transport fuel from

non-biological sources*

Advanced biofuel

H2

+

CO/CO2

+

Gasification of biowaste

CO2

O2

* Better known as electro- or e-fuel

New categories of fuels supported by the EU directives

11

Example

Product value is based on achieved life-cycle CO2 abatement

Gasoline

tCO2/toe

ETL methanol from renewable electricity

-3 -2 -1 0 +1 +2 +3 +4

ETL methanol from renewable electricity

*RED II directive 94 gCO2e/MJ gasoline or diesel; **State-of-the art SME methanol Johnson Matthey Technol. Rev., 2017, 61, (4), 297–307

Grey methanol**

CO2 reduction: offset WTT + TTW emissions minus footprint of energy (H2)

CO2 reduction is embedded carbon plus offset from alternative grey source minus footprint of energy (H2)

WTT TTW

Energy source

12

Recent examples of methanol in automotive fuels

13

Chinese government incentivizes methanol vehicles CRI extensive fleet-test with Geely M100 FFV cars

Fiat-Chrysler – ENI fleet test of M15 (A20) Gumbert Nathalie M100 fuel cell car

Recent examples of methanol as marine fuel

14

4 stroke Wärtsilä engines

2 stroke MAN engines (11 ships)

4 stroke Weichai / Scania

Serenergy fuel cells with electric power train

This project has received funding from the European Union´s Horizon 2020 research and innovation programme under grant

agreement No 727504.

Thank you