green capitalism: india, august 7, 2014
DESCRIPTION
Graciela Chichilnisky will deliver a presentation on "green capitalism" in India, August 7, 2014.TRANSCRIPT
globalthermostat Company Confidential
A Solution to Climate ChangeBusiness: Carbon Negative Technology
Global Policy: the Green Power Fund Graciela Chichilnisky – Columbia University NY USA
Green Economics: MEA IIM India August 7 2014
a carbon negative solution
globalthermostat Company Confidential 2
Climate & Industry Face Carbon Challenge
Supply• Natural sources limited,
depleting, and isolated– E.g.: CO2 EOR is concentrated
in Texas• Industrial extraction
processes are expensive, and provide inadequate supply
Transport• Trucking and pipelines not
viable for most applications
Industrial Markets
Food & Beverage
Refrigeration & Greenhouses
Carbonates
Concrete / Cement
Polymers
Formic Acid
Graphene
Oil & GasEnhanced Oil Recovery
Clean-up of Natural Gas Processing
Renewable Fuels
Algae Biofuels
Synthetic Gasoline
Substantial Unmet Demand
1958
1964
1970
1976
1982
1988
1994
2000
2006
300
320
340
360
380
400
CO2 PPM
≈20% increase in atmosphere
in last half-century
Readings hit 400ppm in 2013 for first time
…but huge industrial demand for CO2 remains unmet… …due to two critical issuesAtmospheric CO2
levels rising…
Critical Challenge: Profitably Harnessing Atmospheric CO2 for Productive Industrial Use – creating Abundant, Reliable, Low Cost Supply Wherever Needed
globalthermostat Company Confidential 3
Challenges Must be Overcome, and a Precedent Must be Set, for Governments to Reduce CO2 Emissions
Governments need to standup to help mitigate their countries’ CO2 emissions
Each Government is aware of CO2 emissions levels
Leadership
Cost
Upside
In addition to being able to solve the problem of atmospheric CO2 levels, a new stream of revenue is created
CO2 can be resold and used for industry
GT’s technology provides CO2 for the lowest cost in the world, and can do so practically anywhere, and in whatever amount desired
Our technology is completely modular and easily expandable
globalthermostat Company Confidential 4
Business SolutionCO2 is Both a Challenge to the Global Climate and a Valuable Industrial Gas • US Pentagon recognizes climate change as one of the US’ greatest security threats• CO2 used in a myriad of productive industry applications: beverages, refrigeration, chemical
manufacturing, oil recovery, synthetic- & bio-fuels• Huge unmet demand due to significant shortage of CO2 for use in industry*
No Prior Solution has Solved Key Challenges of Cost, Transport & Availability – offering a Carbon Negative Solution• GT technology actually decreases CO2 in the atmosphere• Current CO2 sources limited to depleting natural reservoirs & costly industrial extraction• Transportation is a key cost & logistical barrier, requiring massive pipeline infrastructure
investment
Global Thermostat Proven Solution Addresses Transportation, Availability & Costs• Breakthrough extraction technology protected by a robust IP portfolio • Demonstration Plants operating since 2010• Significant industry interest from large strategics in Oil & Gas, as well as biofuels arenas• Carbon Negative solution, adding significant social and economic upside
Tremendous Market Opportunity to Disrupt & Expand CO2 Market by Meeting Unmet Demand• Seeking growth equity investment to scale commercial efforts – adding resources to respond
to offers to build GT Plants from large corporates & strategics
* “Carbon Dioxide: A Market Flooded by Demand”, Cryogas International, May 2013.
globalthermostat Company Confidential 5
Global Thermostat - Company Highlights
Disruptive Technology
Addressing >US$1T market opportunity
Disruptive Technology
Addressing >US$1T market opportunity
Highly RecognizedLeadership Team
Including the two co-founders
Highly RecognizedLeadership Team
Including the two co-founders
Proven Process
With 10 Patents and 2 operational Pilot Plants at SRI
Proven Process
With 10 Patents and 2 operational Pilot Plants at SRI
5
2
Well Advanced in Development Pathway
& have raised $22MM to-date
Well Advanced in Development Pathway
& have raised $22MM to-date
1
Modular Design
Allowing great flexibility & scale
Modular Design
Allowing great flexibility & scale
4
Economically Viable
Generating revenues from captured CO2, and licensing
Economically Viable
Generating revenues from captured CO2, and licensing
3
Tier-1 Technology Partners
Including SRI, Corning, BASF, Georgia Tech
Tier-1 Technology Partners
Including SRI, Corning, BASF, Georgia Tech
6
7
globalthermostat Company Confidential 6
Introduction to Global Thermostat
Graciela Chichilnisky, authored the carbon market of the Kyoto Protocol Co-founder & CEO
Peter Eisenberger, Exxon research executive leaderCo-founder & CTO
Edgar Bronfman, Jr., Global business leaderChairman
Leadership
Research partners
Industrial partners
globalthermostat Company Confidential 7
Low-Cost, Breakthrough
Process
Advanced Modular Design
Slashes CAPEX & OPEX; Eliminates Transport Costs
Absorption Regeneration
Low-energy, low-cost
Abundant Supply Location Independent Affordable w/o Subsidies or Carbon Credits
GT’s Proven, Patented Approach: A Truly Disruptive, Proven Solution
CO2 supplied on-site, wherever needed• Eliminates trucks & pipelines
Can be stand-alone, or co-located w/ large emitters• Needs only residual heat, and
electricity • Ideal for remote locations
CO2 drawn directly from air, or from industrial flues
Supplied in any quantity, via totally modular design• Modules capture 50,000
tonnes/yr. each• Can expand as needed, by
adding more modules
Easy to integrate with existing or new-built power plants• Has been done with just one
day of power plant down-time
Small footprint: can fit on land adjacent to industrial facilities
Carbon negative: can capture more CO2 than power plants emit
CO2 remains trapped
• Patented Carbon Sponge: porous “monolith” blocks coated with proprietary amine sorbents
• Ambient Air and/or Flue Gas flows through and binds to sorbent – Structure & process resembles a car’s catalytic converter
3. Monoliths return to air stream; cycle restarts …
2. Low temperature “residual”/ process heat applied, releasing 98% pure CO2 for collection
1. Monoliths lowered into sealed chamber
CO2 Available in atmosphere, unlimited supply
Air or flue gas Air exits w/o CO2
globalthermostat Company Confidential 8
Existing CO2 Capture Alternatives Fall Short
Active CO2 CaptureVia a facilitated industrial
process (multiple methods)
• Energy intensive • Insufficient production• No cost-effective transport
Legacy Flue Gas Capture
CO2 extracted from combustion exhaust gasses
• Legacy methods too costly to build & operate
• Can’t easily be retrofitted to existing facilities
Byproduct of Chemical Manufacture • Energy intensive
• No cost-effective transport• Insufficient production
Extraction from Natural Reserves
Extract CO2 trapped in subterranean caverns
• Geographically stranded – no cost-effective transport outside limited regions*
• Capital intensive (pipelines)• Doesn’t reduce CO2 levels in
atmosphere
* Extraction from natural reserves in Texas an exception. Pipeline constructed to serve EOR market in local geography.
Existing Power Plants & Large Emitters: • No current economically viable solution
– “Business as usual” emissions, with mounting regulatory/financial cost, is a vanishing option
For New-Built Power Plants: • Can try other experimental solutions, but they
impose a large parasitic load– Ex: Texas Clean Energy Project’s coal gasification
plant using Linde’s cryogenic Rectisol™ process
Enhanced Oil Recovery Operators: • Pipelined if available (else $1.5MM/mile to build)• Trucked-in CO2 (at up to $200/tonne)
• Natural CO2 domes (very limited geographically)– Lack of CO2 supply is what has restrained the growth
and spread of EOR
By Customer Segment
Algae Biofuels/Synthetic Fuels Makers: • Pipelined or trucked. Land near emission
sources often too limited and expensive
By Method
Critical Gaps
Co-produced with ammonia & hydrogen manufacture
globalthermostat Company Confidential 9
GT’ Solution is Affordable, Proven, and Commercially Ready to Scale & Penetrate Global Markets
Technology Development, IP
Prototype Demonstration
Next Step: Commercialize & Scale
Technology Fully Baked• Created by Peter Eisenberger
and Graciela Chichilnisky• Tech developed at SRI &
Georgia Tech; Verified by Corning, Linde, Det Norske Veritas
• Operational since 2010
IP Rights Secured• Strong IP portfolio
– 10 patents so far– Worldwide rights
• Freedom To Operate opinion
Prototypes Operational• Two prototypes in Silicon
Valley validate technology & economics
• Performing as modeled; results consistent from bench- to pilot-scale
Design for Manufacturability• Developing engineering plans
for full-scale production units• Already realized large CAPEX
& OPEX reductions vs. pilots• All components fit in standard
shipping containers
Sales • Advanced negotiations with
large industrial partners (underway)
• Contract & Execute projects
IP Commercialization• Advanced IP licensing
negotiations with large strategics (underway)
Seeking growth equity investment for team build-out, tech development, and commercialization activities (investment supplemented by project financing)
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Breakthrough Development, Robust IP Portfolio
Strong Technology
Story
Robust IP Portfolio
• IP created by Peter Eisenberger & Graciela Chichilnisky
• Technology was developed & prototyped at SRI & Georgia Tech – Fine-tuning in progress; No new science required
• GT selected as finalist in $25MM Virgin Earth Challenge Prize – 11 finalists selected from more than 2,600 proposals
• Improvements in process & materials represent recent cost breakthrough– 3rd Party reports validate GT technology & costs
• GT has been awarded 9 US patents + 1 in Japan; additional patents and worldwide protection are pending
• Freedom-to-Operate opinion assures no conflict with any others’ existing IP
• GT offers preferential IP treatment to low income nations in somc cases charges no license fees
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1st Technical Demonstration
2nd Commercial Demonstration
Two Prototypes Built To-Date…Two Prototypes Built To-Date… … with Strong Results… with Strong Results
Successful Prototype & Plant Development
Application in Industrial setting
Stand-Alone Demonstration
Validated technology’s potential in large-scale
applications
* At 2x 50m2 commercial scale. Costs will fall with scale and experience. **Production based on current design changes. † Fully-loaded cost including consumables/maintenance and CAPEX amortization. Ranges based on embodiment, location, boundary conditions, and cost of funds.
Cost reduction potential verified by Det Norske Veritas – independent 3rd party technology evaluation firm
Validated Economics Est. cost/unit: $0.7-1.2MM*
Est. production: 50k TPY**
Cost/tonne: $10-35/tonne†
These demonstration units already capture the CO2 emissions from SRI’s on-site power plant a well as from air, so could make it Carbon Negative
globalthermostat Company Confidential 12
Graciela ChichilniskyCEO & Founder
• World leading economist, entrepreneur, executive, and inventor in IT, financial instruments, and CO2 capture
• Founder CEO of FITEL and Cross Border Exchange, successful financial services technology companies
• Authored of the Kyoto Protocol’s carbon market legislation (EU ETS)• PhD in Math from MIT and in Economics from UC Berkeley• Tenured Professor Columbia University, previously Harvard and Stanford
Peter EisenbergerCTO & Founder
• Leader and technology innovator in the global energy industry, and CO2 capture
• 20+ year career including heading global R&D at Exxon, and lead scientist at Bell Labs
• Tenured professor and former Vice Provost at Columbia University• Former Director of Columbia University’s Lamont-Doherty Earth
Observatory• Founding Director Princeton University Materials Institute• Founding Director Columbia University Earth Institute
Edgar Bronfman, Jr.Investor & Chairman
• Chairman, Endeavor Global• General Partner at Accretive LLC• Former President and CEO of the Seagram Company• Former Chairman and CEO of the Warner Music Group• Recently successfully sold Warner for US$3.3 billion
Key Advisors
Ed HotardFormer COO, Praxair
Eric (Ric) RedmanPresident, Summit Power
Ron ChanceEmeritus Science Advisor, Exxon
Rocco FiatoAccelergy, Exxon
Michael FleisherBain, Gartner
Sasha MacklerSummit Power
Leadership Team
globalthermostat Company Confidential 13
GT TeamManagement & Technology Team:• Graciela Chichilnisky, Co-founder & CEO• Peter Eisenberger, Co-founder & CEO• Edgar Bronfman, Jr., Chairman• Kenneth Michie, SVP of EOR Operations• Keith Meyer, SVP of Energy & Oil Operations• Jason Offenhartz, Finance & Business Associate
Advisory Board:• Ed Hotard, Former COO Air Products• Eric (Ric) Redman, President, Summit Power • Ron Chance, Science Advisor, Exxon• Rocco Fiato, Accelergy, Exxon• Roger Cohen, Ex-Exxon• Shane Smith, CEO of Vice
Financial & Legal Team:• Corporate Counsel: Mitchell Zucklie, Esq., Chairman of Orrick, Herrington & Sutcliffe• IP Counsel: Paul Sutton, Esq., of Sutton Magidoff (formerly Sr. Partner at Greenberg Traurig)• Investment Bankers: Christopher Carter & Christopher Reynolds, Morgan Stanley UK• Auditors: Citrin Cooperman• Controller: Robert Bernstein, CPA, Esq., of Bernstein & Seidman
• Dr. Eric Ping, Ph.D., Dir. of Technology Development • Tom Miller, Engineer & Project Development• Sharon McIlnay, Contract Attorney• Prof. Chris Jones, Ph.D., Georgia Tech• Dr. Gopala Krishnan, Ph.D., SRI International• Anoop Nagar, SRI International
globalthermostat Company Confidential
GT Technology DescriptionStep 1: Air Input & Carbon Capture
• GT uses stacks of ceramic “monolith” contactors (similar to those in a car’s tailpipe catalytic converter), coated with an amine-based “sorbent,” that together act like carbon sponges – trapping, but not transforming, CO2 it encounters in an oncoming air/gas stream
• Monoliths provide high surface contact areas at low pressure drop (air resistance)– Enables movement of large air volumes with effective contact of CO2 at low cost
• GT’s advanced sorbents were proven highly effective by Georgia Tech, and further confirmed by SRI, and DN Veritas
– Proprietary process bonds sorbent to monoliths’ porous walls, at high loading – This dramatically reduces heat required compared to liquid-based Carbon Capture
• ~1.5-30 minute cycle (depending on embodiment and implementation)Step 2: Regeneration
• CO2-rich monoliths are moved into air-tight, evacuated Regeneration Chamber• Low-temperature residual heat (90°-105°C steam) is applied, stripping CO2 from monoliths• Liberated CO2 is collected and piped away, at atmospheric pressure
– Output is 95-98% pure CO2
– No other inputs are consumed; no other byproducts are released• Now-empty monoliths are raised from the Regeneration Chamber, back into the oncoming
air stream, to repeat the cycle• ~1.5-3 minute cycle
Step 3: Heat Transfer
• Neighboring Regeneration Chambers are kept out of phase with each other, yet are interlinked, allowing steam to pass between them
• As one Regeneration Chamber completes is cycle, the other is just beginning• In the just-completed Chamber, water evaporates from hot monoliths (cooling them to
below the oxygen degradation temperature). That water & steam is piped to the just-beginning Chamber, where water condenses on the cool monoliths, pre-warming them
• Cool monoliths receive 50% of their heat this way, substantially reducing operating costs
GT Module Absorption Phase
Regeneration Phase
Monolith Contactors + Sorbent “Cartridge”
105° SteamCO2 Collection
GT Module Absorption Phase
Regeneration Phase
Ambient AirOR
20:1 Air-Flue Gas Blend
Monolith Contactors + Sorbent “Cartridge”
`
GT Module Absorption Phase
Regeneration Phase
Monolith Contactors + Sorbent “Cartridge”
Evacuated steam from hot box to
neighboring box/module
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globalthermostat Company Confidential 15
2010: GT’s 1st Pilot at SRI (Stanford Research Institute)
SRI International333 Ravenswood Avenue
Menlo Park, CA 94025
globalthermostat Company Confidential 16
2013: GT’s 2nd Commercial Demo Plant at SRI
SRI International333 Ravenswood Avenue
Menlo Park, CA 94025
GT Achieved US DOE/DOD Technology Readiness Level 7 - TR7
globalthermostat Company Confidential 17
GT: Carbon Negative Solution, Long-Term Upside
High potential for incremental profit from tax on carbon emissions under current & emerging regulations• Beginning to be applied in some developed countries and likely to spread to others given nature
of climate change debate• Recent EPA legislation demonstrates benefits and upside for Carbon Capture technology
While not considered in any GT business projections, carbon credits & other incentives create significant upside to current opportunity• 26 US Code §45Q provides a CO2 EOR tax credit of ≈$10.75/tonne• Carbon credits in California & EU-ETS trading above $12/tonne today
Independent of a tax on CO2, Governments likely to make grant dollars available to support the development of CO2 capture*
Atmospheric CO2
Captured by GT’s process
Permanently removed or re-used in:
Entire GT Process Carbon
Negative EORIndustry BioFuels
* Draft UN report (1/15/2014) notes global goals to limit CO2 are unlikely to be met without actively removing CO2 from the atmosphere, recommends direct CO2 capture
GT’s Technology Represents an Enormous Opportunity, Irrespective of Regulation
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Summary of Global Thermostat
True, proven technical breakthrough
GT proven technology solves critical barriers to productive CO2 application in industry
Enormous market business potential
Large, diverse and unmet market opportunity today
Significant opportunity to expand market, enables new applications – $ Trillions per year opportunity
Commercial readinessand exit paths
Major technical proof-points established and protected with robust IP worldwide
Global Solution to Climate Change
Several paths to both create a big business and reach a liquidity event in 3-5 years
$200 Bn/year Green Power Fund to accelerate deployment of GT plants and other carbon negative technologies
Contact: Graciela Chichilnisky, CEO Global Thermostat O: 1-212-678-1148 C: 1-646-623-3333www. Chichilnisky.com [email protected]
globalthermostat Company Confidential 19
To accelerate carbon negative technologies:
The Green Power Fund• $200 Bn/year Private Public Fund • Financial & Technological solution for Global Climate Change• Quick global deployment of Carbon Negative Power Plants in Developing
Nations• Using funding available from the UNFCCC CDM of the EU ETS• Providing clean power for rapid growth in least developed nations: SIDS,
Africa and LA• Liberating women and children used today as beasts of burden
G20 goals: Solving Global Poverty Achieving Sustainable Development
globalthermostat Company Confidential 20
The Green Power FundGreen Capitalism
Economic Growth and Sustainable Development
Focus on Least Developed Nations• Introduced by the author in Copenhagen COP 15 2009• Supported by H. Clinton US Department of State • Voted partially by UNFCCC in Durban South Africa COP 17 as Green
Climate Fund• Requires only Diplomatic Completion in Lima Peru COP 20 December
2014 • Needs legislative support at global negotiations COP 21 Paris 2015• Led by Monaco with the moral support & votes of 30 SIDS
globalthermostat Company Confidential 21
The Green Power FundHow does it work?
• GPF offers profitable off-takes or PPA – attracting private funding
• High IRR for building Carbon Negative power plants in Africa LA and SIDS
• Adding to CDM funding and funding from sovereign funds
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Why a Carbon Negative Technology?
Because it is needed
No solution otherwise (IPCC 2014)
globalthermostat Company Confidential 23
Why LA, Africa & SIDS?
Because they are needed
No solution otherwise (IPCC 2014)
globalthermostat Company Confidential 24
Why The Green Power Fund?
Because it is needed
No solution otherwise (IPCC 2014)
globalthermostat Company Confidential 25
A Green Monaco • Could set a global precedent by implementing GT
• becomes the catalyst with UN mandate
for addressing climate change
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Next steps1. Leading Global Thermostat to a profitable
deployment of GT plants all over the world
2. UN Legislation for Green Power Fund• Participation of Monaco and AOSIS in UNFCCC COP negotiation
committees• COP 20 Peru December 2014• COP 21 Paris December 2015• The Green Power Fund