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Innovation project name:

Non-catalytic methane conversion in the microwave plasma torch

Sk Skolkovo Name of organization:

Plazma-conversion Ltd.

Moscow, 2015

The known technologies of production of synthetic liquid hydrocarbons (SLH) from natural gas (GTL-productions) are not profitable in the small-scale sector. The main reason is: the high cost of methane conversion to synthesis gas, as a key stage of GTL-process (occupying from 50 to 70% of the cost of SLH production).

Significant volumes of associated petroleum gas (APG) and natural gas of distant, hard to reach and small deposits are not involved into the processing.

For oil&gas and gas-chemical companies interested in processing of APG and natural gas of distant deposits in the place of extraction, our solution is able to provide an additional source of profit.

At the current moment cost-effective profitable small-scale technologies for producing of syngas from natural gas are absent on the market.

Our project is able to ensure the profitability of small-scale GTL-productions and solution of a largest problems: APG processing and the problem of "northern delivery" (in the part of liquid motor fuels) (for Russia).

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1. The description of the problem on which decision the project is aimed to:

The proposed technology of methane conversion in the microwave plasma torch ensures the possibility of highly efficient and cost-effective small-scale production of synthesis gas - as a key stage of GTL production.

2. The description of proposed problem solution and its advantages:

Experimental confirmation of the effectiveness of the method:Conducted experiments have confirmed the efficiency of method: The conversion of methane to syngas (the proportion of methane flow

transformed into synthesis gas):

= 0,45 0,11 (4511)%; The energy cost of production of syngas (Referred to 1 liter of methane) :

СH4 = (3,7 0,7) 10-2 kWh / liter;

Energy cost of production, referred to 1 liter of syngas:

sg (0,92 0,2) 10-2 kWh / liter;The photography of

microwave plasma torch in the zone of which the conversion

reaction takes place

Consumer benefits as a result of application of Project solution:Profitable processing of today unused resources of APG and natural gas of small-debit and hard to reach

deposits. Source of additional profit.Reducing by 2 times the energy consumption for a process of conversion of natural gas to syngas in

comparison with the traditional method of steam conversion.Reduction by several times the capital costs at the stage of syngas production. Source of additional profit for equipment manufacturers by reducing the prime cost.

Gas is supplied through the central coaxial electrode. After the launch of magnetron the microwave radiation starts to accumulate in a system of “rectangular resonator – coaxial tract”. During the operation of the magnetron and the accumulation of microwave energy the field strength at the end of the nozzle increases, and at some point in time, reaches the breakdown magnitude. In this case at the end of the nozzle in the jet of the working gas the breakdown occurs and the field of gas discharge plasma is formed. This plasma, because of its high conductivity, actually becomes an extension of the inner electrode of the coaxial line, and the electromagnetic wave can now spread further to coaxial, to the end of the area occupied by the plasma, where the breakdown conditions for adjacent area are provided again. Thus, in a working gas jet the plasma torch is formed, the length of which can reach tens of centimeters. Because of the electric field strength at the nozzle end due to the accumulation of microwave energy in a coaxial resonator can reach a significant value even at a not very powerful magnetrons, the device can operate in a wide range of gases and their mixtures. It is revealed that the energy cost of producing synthesis gas (referred to 1 liter of methane) is (3,7 0,7) 10-2 kWh / liter.

3. The description of the basic Project technology:

Scheme of layout of plasma chemical methane conversion reactor

1 - rectangular resonator 2 - coaxial resonator 3 -

continuation of outer electrode of coaxial waveguide (grid), 4

- working chamber of 5 - viewing window 6 - microwave

discharge plasma 7 - magnetron 8 - water supply

unit.

High energy efficiency of the conversion process due to maximally complete transfer of microwave energy into the working gas

Reduction by 2 times the level of the energy consumption for the production of synthesis gas as compared to existing solutions (up to ≈2 kWh/m3)

Process is non-catalytic

Process does not require the preliminary heating and compression of the working gas

Space-saving, mobility

Periodicity of the process - instant start-up of device, the insensitivity to the number of starts / stops

Relatively low capital costs

4. Competitive advantages:

Acting model of the reactor of plasma chemical

methane conversion

Power: 1 kWProductivity: 2*103 m3/year

Target market of Project (segments):

Russian market: $2,1 - $2,7 billion. Planned market share: 25-30%.Global market: $6 – $9,4 billion. Planned market share: 5-10%.

Directions of Project commercialization:

Sale of licenses

Research contracts related with the introduction and development of technology

5. Market / Business model:

Comparison of Plazma-conversion Ltd’s solution with the most similar analogues:

6. Comparison with Competitors:

Key parameters

/ Solution

Plazma-conversio

n Ltd.

DavyProcess Technology,

Mahler

Steam methane reforming

LLC Gazohim-Techno

Partial oxidation of

methane

Haldor Topsoё, Lurgi,

TEC, JFE

Partial oxidation of

methane

ARCO, Kerr-McGee,

Marathon, Repsol

Autothermal methane reforming

Energy consumption

≈2kW*h/m3 ≈4kW*h/m3 Exothermal

processExothermal

process ≈4kW*h/m3

Necessity of using catalysts

NORequires

cobalt / nickel catalyst

Requires nickel

catalystRequires cobalt

catalystRequires a highly

active nickel catalyst

Capital intensity Low High High High HighSpecial conditions of the conversion process

Pressure 0,2-0,3

MPaPressure

2 MPaPressure 0.8 MPa

Pressure 3-4 MPa

Pressure 2-3 MPa

Price ≈$3 mln. No data ≈$8 mln. No data No data

In 2014, the project received Skolkovo participant status, which provided tax incentives in the form of exemption from the duties of the taxpayer's income tax and VAT for a period of ten years.

On fundamental research conducted in the GPI RAS, a working model of reactor power of 1 kW has been created.

Installation experiments of plasma chemical methane conversion have been conducted, positive results have been obtained.

Russian patents for invention and utility model have been obtained; PCT application for the invention has been filed.

In 2015 - 2016 it is planned to create a working prototype of plasma chemical methane conversion reactor and adjustment of optimal parameters of stability and controllability of the process of plasma chemical conversion of methane depending on the types of conversion.

7. Project current status:

The project team has been succeeded to conduct an experiment on microwave conversion of methane using principally different source - GYROTRON. According to the first results obtained in a single experiment, the energy cost of carbon dioxide conversion can be as small as:

≈ 2,5 10-3 kWh / liter

Modular configuration, placement in a standard container (14 m2)

8. Parameters of planned prototype:

Current funding sources:• The project is supported by the venture partner - Management Company "Navigator" (Saratov).

Need for investment: $0,9 mln. Expect to attract funding under the scheme:

50% of the required amount - Skolkovo Foundation grant. 50% of the required amount - co-investor funds.

• Purpose of investment: Creation and testing of a prototype of reactor of plasma chemical methane conversion:Adjustment and clarification in the laboratory parameters of the conversion process.Adjustment of optimal operating modes of reactor depending on the composition of the feedstock.Marketing measures on promotion of the technology to the market.

• Offer to investor:We offer the Investor the share in the project: 10 – 25+%.Return on investment:On the time horizon of 3-5 years from the beginning of the commercialization the investment of the investor is fully returned due to the share in the profit.

Exit Strategy:Investor’s sale of its share to the company-developer;Investor’s sale of its share to a third party;Joint sale of Project to a profiled strategic investor.

9. The need for capital investments / Offer to investor:

Patenting geography:

Russia, Britain, France, Germany, Italy, China, Canada, USA, Brazil, Malaysia, South Africa, South Korea, Japan.

10. Patenting:

Intellectual property: Номер Название

Russian patent for utility model №124105 dated 10.01.2013, application №2012135708 dated 21.08.2012.

Microwave plasmatron.

Russian patent for invention №2486719 dated 27.06.2013, application № 2012117620.

The method of treatment, destruction and conversion of gas.

Russian patent for invention №2513622, application № 2012135387, priority 17.08.2012.

The method of microwave conversion of methane-water mixture into the synthesis gas.

Application PCT/RU 2012/056848. priority 17.08.2012

The method of microwave conversion of methane-water mixture into the synthesis gas.

11. Information about the project team:

Igor Cossyi – d. p/m. sciences (GPI RAS), MoscowScientific adviser of the project 30+ years in applied research in the field of plasma physics. Participation in projects jointly with the Eindhoven Technical University, University of Knepper, NWO, ISTC

Alexei Davydov – c. p/m. sciences (GPI RAS), MoscowLeading researcher of the project 10+ years of experimental work in the field of low temperature plasma physics. Participation in projects jointly with the IAP RAS, CNES, Chalmers University of Technology

Renat Khabeev – General Director of the MC «Navigator» Ltd., SaratovVenture Partner, Business Mentor of Project15+ years of management of industrial enterprises (Plant Neftegazmash), the establishment of partnerships with specialized companies. Creation and management holding company LLC MC Navigator

Plazma-conversion Ltd. - was created for Project realization in 2013.

12. Contact Information:

Plazma-conversion Ltd.

410005, Russia, Saratov, Bolshaya Sadovaya, 239, office 616.

phone: (8452) 459523, 459524, 459510.

e-mail: avdvoenko@gmail.com

Alexander Dvoenko

Director