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Benedikt Stefansson, Director of Business Development
Low carbon intensity and green methanol: Iceland and beyond
10/17/2019 2
Ample supply of renewable energy but location and availability doesn’t match demand
Problem #1
10/17/2019 3
Growing use of fossil fuels causing climate change, ocean acidification and urban pollution
Problem #2
10/17/2019 4
Transform electricity and CO2 into clean-burning liquid fuel – methanol - which is carbon neutral
Solution (since 2012)
CO2-to-methanol: A liquid energy carrier which scales sustainably
CRI Emissions-to-Liquids (ETL) platform
5
H2
CRI’s Emissions-to-Liquids technology platform
10/17/2019 6
Clean conversion
CO2 purification
Electrolysis
One step hydrogenation of CO2Flue gas emissions
Renewable energy
Transport
Chemicals
Methanol
H2 rich emissions
Modular Offtake
1.4 t
0.2 t
1 t
11.5 MWh*
*Total load based on alkaline water electrolysis
H2
Building on more than 12 years of full value-chain experience
10/17/2019 7
Pilot plant Plant commissioned Foreign projects Commercial scale0.001 t/d 4 t/d 150-300 t/d
2006 2007 2012 2014 2015 2016 2018 2019 2021
Capacity added12 t/d 2 t/d
Methanol FC cars M100 fleet test UK Gasoline blendingCompany launched NL gasoline blending
637016 727504
10/17/2019 8
Energy source: Icelandic gridCO2 source: Geothermal gasCO2 conversion: 5,600 t/yrCapacity: 4,000 t/yr methanolElectrolyzers: 6 MW (alkaline)
First CCU-to-fuel plantSvartsengi, Iceland 2012 –
10/17/2019 9
Site of second CCU-to-fuel plantRWE power-plant Bergheim-Niederaussem, Germany
Energy source: Wind powerCO2 source: Coal combustionCO2 conversion: 500 t/yrCapacity: 350 t/yr methanolElectrolyzers: 0.6 MW (PEM)
10/17/2019 10
Plant adapts dynamically providing flexible load and energy storage
Site of second CCU-to-fuel plantRWE power-plant Bergheim-Niederaussem, Germany
Energy source: Wind powerCO2 source: Coal combustionCO2 conversion: 500 t/yrCapacity: 350 t/yr methanolElectrolyzers: 0.6 MW (PEM)
10/17/2019 11
Site of third CCU-to-fuel plantSSAB steel-works Lulea, Sweden
Energy source: Blast furnace gasCO2 source: Blast furnace gasCO2 conversion: 500 t/yrCapacity: 350 t/yr methanol
10/17/201912
Site of third CCU-to-fuel plantSSAB steel-works Lulea, Sweden
Energy source: Blast furnace gasCO2 source: Blast furnace gasCO2 conversion: 500 t/yrCapacity: 350 t/yr methanol
Plant uses waste gas streams from steel-making process
10/17/2019 13
Surplus or stranded energy Industrial waste gas
= Transport fuels= Zero fossil chemicals
+
CRI developing pipeline of Carbon Capture and Utilization (CCU) projectsEurope – defossilizing mobility China: low carbon clean urban air
10/17/2019 14
First projects: 50,000 – 100,000 t/yr First projects: 100,000 – 250,000 t/yr
CRI ETL platform with electrolysis CRI ETL platform with coke-oven gas
10/17/201915
Initial objectives of fleet trial 2016-2017
Demonstrate performance of M100 cars
Implement a green methanol value chain
Document CO2 savings and sustainability
Develop and test best practices
Results 2016-2019
> 400,000 km accumulated
Over 73% reduction of WTW CO2 emissions
Ownership costs < than BEV
Positive driver experience
Geely Emgrand 7 M100 in Iceland
2022 2024 2026 2028 20300%
2%
4%
6%
8%
10%
12%
14%
2004 2006 2008 2010 2012 2014 2016 2018 2020
EU 2009- : Increasing obligation for renewable energy in road transport
10/17/2019 16
Source: Eurostat, directive 2009/28, 2018/2001 (RED II)
New mandate: focus on sustainability
Share of energy in road transport
Gap10%
14%
Sodium chloride electrolysis
Water electrolysis
Separation of H2Recycled carbon fuel
Low carbon intensity methanol processes and EU framework
Energy source Upstream CRI Output (EU directives)
Renewable transport fuel from
non-biological sources*
+
+
Carbon Recycling International
* Also known as e-fuel
H2
H2
CCU fuel
Automaker obligation disconnected from renewable energy mandate
10/17/2019 18
Not battery electric = penalty Alternative: WTW perspectiveTargets for tailpipe emissions
‚
2
4
6
8
2010 2020 2030 2040
EU China US
10 L/100 km
4.1 tCO2EV – Chinese grid
2.1 tCO2
2.3 tCO2
0.4 tCO2
CO2 footprint for light vehicle
10/17/2019 19
Gasoline
CRI methanol – byproduct H2
CRI methanol – 100% wind*
Annual net emissionsFuel 0 1 2 3 4 5
Sources: COREPER, OECD, Covenant of Mayors for Climate and Energy, CRI
Implied value of CO2 abatement derived from EU bioethanol market price
10/17/2019 20
EuroBOB market price methanol equivalent
“Green premium” based on bioethanol market price
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
800
Realized market prices 2018-2019*
800 €/t 140 €/MWh
Energy eq. price
€38
*Source: Energy Census; Ethanol = T2 Ethanol CIF Rotterdam; EuroBOB = European gasoline blendstock CIF Rotterdam
0
20
40
60
80
100
120
0
100
200
300
400
500
600
700
800
900
Feb-18 May-18 Aug-18 Nov-18 Feb-19
€900/t ethanol Per MWh LHV: €120
Realized priceAverage 2018-2019
€85
Price of energy eq. in gasoline (EuroBOB)
Premium for ethanol on energy eq. basis
Observable ethanol market price
€47
-170 kgCO2/MWh
= €38
-1 t CO2
= €223
Value of CO2 abatementImputed from premium for ethanol
Solar energy striking earth in one hour = global energy consumption per year
10/17/2019 21
122,100 TWh
Global primary energy consumption per year
Oil 6.02 TWh
Coal 4.91
Gas 4.15
Hydro 0.42
Nuclear 0.27
Non-hydro renewable 0.12
Total 15.9 TWh
Solar energy striking earth per year
52,900 TWh
Source : EIA
Does Europe have sufficient energy to switch to e-fuels?
Europe: Road transport energy demand
10/17/2019 22
Europe: Renewable energy potential
RooftopOnshore Offshore Thermal Utility
6000 TWh/yr
5000
4000
3000
2000
1000
0 0
1000
2000
3000
4000
5000
6000
2020 2030 2040 2050
Fossil fuels Electricity H2 Methane PtL
Source: LBST/German Energy Agency 2017 “E-fuels: The potential of electricity-based fuels for low-emission transport in the EU”
6000 TWh/yr
Cost of electricity generation falling sharply
US on-shore wind LCOE - unsubsidized US utility PV solar LCOE - unsubsidized
10/17/2019 23
135124
71 72 7059 55
47 45 42 38 34 31 28 25 23 21
0
50
100
150
2009 2011 2013 2015 2017 2019 2021 2023 2025
125
98
79
6455
5043
3631
26 22 19 16 14
0
50
100
150
2009 2011 2013 2015 2017 2019 2021 2023 2025
$150/MWh $150/MWh
Source: Data 2009 – 2018 from Lazard; Forecast 2019 - 2025: CRI
10% CAGR 2013-2018 16% CAGR 2013-2018
? ?
A new ecosystem of circular economy and energy
10/17/2019 24
Process industry
Power sector Mobility and freight
Government
Public & NGOs
Fossil fuels
Auto industry
Ag industry
Stakeholders
Direct ecosystem Indirect ecosystem
Take away points
10/17/2019 25
We have a problem Technology is ready New markets are openingCost falling and supply rising
10/17/2019 26
Benedikt StefanssonDirector of Business Development
E-mail: benedikts [at] cri.is