40
KeyState Natural Gas Synthesis & Carbon Storage Pennsylvania’s Next Energy Revolution KeyState Natural Gas Synthesis & Carbon Capture, Use & Storage Clinton County, Pennsylvania Perry Babb, Chariman & CEO PUBLIC TESTIMONY House Environmental Resources and Energy Committee 3.15.21 1

Pennsylvania’s Next Energy Revolution

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

KeyState Natural Gas Synthesis & Carbon Storage

Pennsylvania’s Next Energy Revolution

KeyState Natural Gas Synthesis & Carbon Capture, Use & Storage

Clinton County, Pennsylvania Perry Babb, Chariman & CEO

PUBLIC TESTIMONY House Environmental Resources

and Energy Committee 3.15.21

1

KeyState Pennsylvania’s Next Energy Revolution

Pennsylvania’s Energy Leadership &

Pennsylvania’s Climate Impact Leadership

KeyState Natural Gas Synthesis & Carbon Storage

Integrating Natural Gas Production and Natural Gas Use

with Carbon Capture and Geological Storage

PENNSYLVANIA’S NEXT ENERGY REVOLUTION

PENNSYLVANIA HYDROGEN SUPERPOWER

2025 to 2050

2

KeyState Pennsylvania’s Next Energy Revolution

JOBS CREATION

ECONOMIC DEVELOPMENT EMISSIONS REDUCTIONS

CLIMATE CONCERNS

FOSSIL ENERGY ECONOMY HYDROGEN ECONOMY

Integrating Natural Gas Production and Use with Carbon Capture and Geological Storage

KeyState Natural Gas Synthesis & Carbon Storage

3

KeyState Pennsylvania’s Next Energy Revolution

Displacing Higher-Carbon-Higher-Cost

Products with Lower-Carbon-Lower-Cost

Products

KeyState Natural Gas Synthesis & CCUS Clinton County, Pa.

$410,000,000 Capital Project

Low-Carbon Products: CO2 Emissions Reduced by 50 to 80% per ton - Blue Hydrogen - Blue Ammonia Emissions Reduction Products: - Diesel Exhaust Treatment (DEF) - Power Plant Exhaust Treatment (NH3) CO2 Use & Stored - Used In DEF Production = 170,000 tpy - Stored Process CO2 = 104,000 tpy - Post Combustion CO2 Capture Potential + 85,000 tpy

Integrating Natural Gas Production and Natural Gas Synthesis with Carbon Capture Use and Storage

KeyState Natural Gas Synthesis & Carbon Storage

Result = High Paying Job Creation

with Dramatic Emissions Reduction

KeyState as Illustration of Pennsylvania’s Coming Energy Revolution

4

KeyState Pennsylvania’s Next Energy Revolution

800 Construction & Permanent Jobs + Indirect + Induced Jobs

www.pamanufacturers.org/nepanatgas

…with carbon capture use and storage

JOBS CREATION CLIMATE CONCERNS

5

KeyState Pennsylvania’s Next Energy Revolution

http://www.pamanufacturers.org/NEPAnatgas

DURING CONSTRUCTION

DURING OPERATIONS

Study of Potential New Manufacturing Facilities

Major Rural Economic Impact Multi-County Impact The New Energy Jobs Industry Breakthrough Manufacturing Breakthrough Generational Workforce Development

6

KeyState Pennsylvania’s Next Energy Revolution

COLLABORATORS TO DATE: Lock Haven University Lock Haven University - Clearfield Campus Penn State University Keystone Central School District

WORKFORCE DEVELMENT

Major Rural Economic Impact Multi-County Impact The New Energy Jobs Industry Breakthrough Manufacturing Breakthrough Generational Workforce Development

UPCOMING MEETINGS to include: Penn College Centre Vo-Tech, Clearfield School District Clearfield County Career and Vo-Tech Center

ECONOMIC DEVELOPMENT EMISSIONS REDUCTIONS

7

KeyState Pennsylvania’s Next Energy Revolution

KeyState/Winner Site

Entire 7,000 Acre Winner Tract lies within a Federal Qualified Opportunity Zone

http://dced.maps.arcgis.com/home/webmap/ viewer.html?webmap=b0bd4d703ddc498fb0a993a00d77ed4c

AREA DESIGNATED BY LOCAL, COUNTY, STATE AND FEDERAL ACTION FOR MAJOR ECONOMIC DEVELOPMENT

An Opportunity Zone is an economically-distressed community where private investments, under certain conditions, may be eligible for capital gain tax incentives. Opportunity Zones were created under the 2017 Tax Cuts and Jobs Act, signed into law by President Donald J. Trump on December 22, 2017, to stimulate economic development and job creation, by incentivizing long- term investments in low-income neighborhoods. There are more than 8,760 designated Qualified Opportunity Zones (PDF) located in all 50 States, the District of Columbia, and five United States territories. Investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged or until December 31, 2026.

www.eda.gov/opportunity-zones/

KeyState Grant Awards: $869,450 - Economic Development Administration Engineering & Feasibility Studies , - $785,450 - US Department of Agriculture Rural Dev. Grant: - $84,000

ECONOMIC DEVELOPMENT EMISSIONS REDUCTIONS

8

https://bakertilly.com/new-markets-tax-credits-map/?gclid=Cj0KCQjw tXlBRDWARIsAGYQAmdtM0JQZxxS666PzGLD64NBxQU3xA8NQ6d0tYZkSqy7r3QjpqsUq2oaAmKeEALw_wcB

Entire 7,000 Acre Frontier/Winner Tract lies within a New Market Tax Credit ‘Severe Distressed Zone’

ECONOMIC DEVELOPMENT EMISSIONS REDUCTIONS

9

PENNSYLVANIA NATURAL GAS DILEMMA :

- CONSTRICTED GAS MARKETS - SHORT-TERM ENERGY JOBS

- NARROW ECONOMIC IMPACT - AVOIDABLE CLIMATE IMPACTS

250 bcf of Stranded Natural Gas 7,000 Acre, Winner Tract

Clinton County, Pa.

Vertically Integrated Business Case

Natural Gas Resource + Manufacturing + Carbon Storage - On-Site Natural Gas Supply - Gas Provided ‘At-Cost-of-Production’ - 20 Year Gas Supply Agreement - No Gas Pipeline Transportation Costs - Onsite Carbon Sequestration - Structural Competitive Advantages

KeyState Natural Gas Partner

On The Path to a Carbon-Neutral-Economy

ECONOMIC DEVELOPMENT EMISSIONS REDUCTIONS

10

KeyState Pennsylvania’s Next Energy Revolution

www.paforgethefuture.com

KeyState Organic Chemical

Synthesis +

Carbon Capture =

Low-Carbon FUTURE

Future Petrochem will NOT be developed without CCUS

11

KeyState Pennsylvania’s Next Energy Revolution

$135+ Billion of U.S. Petrochemical Investments*

Sources: ICIS, Company announcements, Kirby Corp. *Notes: Date reflects anticipated year in-service, red font reflects construction in progress, green online, unk=unknown

Corpus Christi/Point Comfort, TX Cost ($MM)

Exxon-SABIC JV 2020 New ethylene/derivatives 10,000 Formosa 2018 New HD polyethylene 5,000 Formosa 2018 New LD polyethylene 1,700 Formosa 2018 New ethylene Formosa 2020-21 New PDH LyondellBasell 2017 Ethylene expansion 350 M&G Group 2018+ New PET/PTA 1,000 Oxy/Mexichem 2017 New ethylene 1,500

Freeport – Old Ocean, TX Cost ($MM)

BASF-Yara 2018 New ammonia 600 CP Chemical 2017 New polyethylene 6,000 Dow 2016 New PDH 6,000 Dow 2017 New ethylene Dow 2017 Polyethylene exp. Dow/MEGlobal JV 2019 Monoethylene Glycol 1,100

Iowa Cost ($MM)

Orascom (OCI) 2017 New fertilizer 3,000 CF Industries 2016 Ammonia expansion 1,900

Pacific Northwest Cost ($MM)

NW IW - WA 2020 New methanol 3,600 NW IW - OR TBD New methanol

Tesoro 2019 New xylene 400

Houston Ship Channel and surrounding TX Cost ($MM)

Braskem 2020 New polypropylene 675 Celanese-Mitsui 2015 New methanol 800 Celanese-Mitsui TBD New methanol unk Celanese 2018 Acetic /VAM expansion unk CP Chemical 2022 New ethylene unk CP Chemical 2018 New ethylene 5,000 CP Chemical 2017 PAO expansion unk Enterprise 2018 New PDH unk Enterprise 2019 New isobutylene 3,000 Exxon Mobil Exxon Mobil

2018 2017

New ethylene New polyethylene

3,000 unk

Exxon Mobil 2021 New polypropylene 400 Fund Connell 2020 Methanol expansion 4,500 Ineos/Sasol JV 2018 New polyethylene unk Ineos 2017 Ethylene debottleneck unk Ineos 2019 New Polyalphaolephin unk LyondellBasell 2016 Tri-ethylene glycol exp. unk LyondellBasell 2015 Propylene debottleneck 20 LyondellBasell 2021 Propylene oxide/TBA 2,400 LyondellBasell TBD Polypropylene/PDH 2,000 LyondellBasell 2019 New HD polyethylene 700 LyondellBasell 2017 Ethylene expansion 170 TOTAL/Nova/ Borealis JV

2020 New polyethylene unk

Oklahoma Cost ($MM)

Koch 2018 Urea expansion 1,300 LSB Ind. 2016 New ammonia 275

Beaumont/Orange, TX Cost ($MM)

Exxon Mobil 2019 Polyethylene exp. unk Flint Hills/Koch 2016 Ethylene expansion unk Huntsman 2016 Ethylene oxide exp. 125 LANXESS 2016 Butadiene rubber unk Natgasoline (OCI-G2X JV)

2018 New methanol 1,000

TOTAL/Nova/ Borealis JV

2020 Ethylene expansion 1,700

Ohio Cost ($MM)

PTT /Daelin JV 2021 New ethylene 10,000 PBF 2015 Aromatics exp unk

1

Kentucky Cost ($MM)

Westlake 2017 Ethylene exp. unk

Indiana Cost ($MM)

Midwest Fert. 2022 New ammonia 2,800

Charleston, WV Cost ($MM)

US Methanol 2018 New methanol unk US Methanol TBD New methanol unk

Mobile, AL Cost ($MM)

Huntsman Chem. 2016 Epoxy expansion 65 Baton Rouge – New Orleans Corridor, LA

Cost ($MM) BASF 2020 MDI expansion 150 BASF Castleton

2016 2019

Butanediol exp. New methanol

Unk 1,200

CF Industries 2016 Ammonia exp. 1,900 CF Industries 2016 New UAN 1,900 Dow 2017 New polyolefin (2) 2,000 Dyno Nobel 2016 New ammonia 1,000 Eurochem 2019 New ammonia 1,500 Formosa 2022 New ethylene 9,400 IGP Methanol 2021 New methanol 4,600 Methanex 2015 Methanol migration 1,400 Methanex 2023 Methanol migration unk Shell 2018 New alpha olefins 717 Shintech 2019 New EDC/ethylene 1,400 S. LA Methanol 2019+ New methanol 1,300 Syngas Energy 2020 New methanol 360 Yuhuang Chem 2019 New methanol 1,850

Lake Charles, LA Cost ($MM)

WLK/Lotte JV 2019 New ethylene/MEG 3,000 Dow 2015 Ethylene expansion 1,060 LCM 2021 New methanol 3,800 Indorama 2018 Ethylene restart 175 G2X 2018+ Methanol-to-gasoline 1,600 Sasol Sasol

2019 2019

New ethylene New polyethylene 11,000

Westlake 2016 Ethylene expansion 330

Monaca, PA Cost ($MM)

Shell 2020 New ethylene 6,000

Only $6B In Pennsylvania Investment

Future Petrochem will NOT be developed without a carbon plan and CCUS.

12

KeyState Pennsylvania’s Next Energy Revolution

PENNSYLVANIA’S NEXT ENERGY REVOLUTIONKeyStatePennsylvania’s Next Energy Revolution

PENNSYLVANIA HYDROGEN SUPERPOWER

2025 to 2050

13

KeyState Pennsylvania’s Next Energy Revolution

KeyState’s Integrated, On-Site Gas Supply Eliminates Mid-Stream Costs and Emissions

- Integrated gas production, pipeline gathering & manufacturing. - All new wells, new pipeline, no compressor stations. - No gas of unknown origin.

‘CLOSED METHANE SYSTEM’ & the Elimination

of Fugitive Methane Emissions

INNOVATION BRINGS METHANE EMISSION REDUCTIONS

STRANDED GAS SOLUTION

14

KeyState Pennsylvania’s Next Energy Revolution

Hydrogen is synthesized from methane in natural gas and combined with nitrogen from the air to make ammonia. Ammonia and Carbon Dioxide are used to produce Urea. Exhaust Treatment is a mixture of Urea & ultra clean water.

#1. AMMONIA Ammonia in a gas or liquid form used in industry, medical, agriculture and combustion exhaust treatment.

‘Blue Ammonia & Blue Hydrogen & Blue Nitrogen’ Low-Carbon when process CO2 is captured & permanently sequestered. #2. Low-Carbon UREA/DEF Automotive Grade Urea is used as diesel exhaust treatment DEF - DIESEL EXHAUST FLUID

HOW PRODUCTS ARE MADE

PRODUCTS

HOW PRODUCTS ARE SHIPPED

PLANT SITE Greenfield, 220 acre site within privately managed habitat.

KEYSTATE PRODUCTS

(Preliminary Calculation = 51% reduction in CO2)

Preliminarily 51% by rail = apx. 10 cars per day and 49% by truck = apx. 22 trucks per day

(Preliminary Calculation = 23% reduction in CO2)

Low-Carbon Products: - Blue Hydrogen - Blue Ammonia for Industrial, Medical & Energy Uses - Blue Nitrogen - Fertilizer Emissions Reduction Products: - Diesel Exhaust Treatment (DEF) - Power Plant Exhaust Treatment

FOSSIL ENERGY ECONOMY HYDROGEN ECONOMY

15

150

250

350

No Ammonia/Urea/DEF Production in the Northeast, Mid-Atlantic

Market Served by Imports from

Outside a 17 State Region or Outside the USA

Major Reduction in Shipping Distances for Ammonia and DEF

Displacement of

International Imports

Blue Ammonia = 51-80% Reduction in CO2 Low-Carbon DEF = 23% Reduction in CO2

ONLY PRODUCER IN EASTERN USA

FOSSIL ENERGY ECONOMY HYDROGEN ECONOMY

16

KeyState Pennsylvania’s Next Energy Revolutionhttps://www.youtube.com/watch?time_continue=6&v=h3h_YihGKdc&feature=emb_logo

Hydrogen/Ammonia Economy Breakthrough Low-Carbon Hydrogen Produced from Natural Gas with Onsite CO2 Capture & Storage

‘Using blue hydrogen for the power sector and industry, to replace natural gas, coal, and possibly also residual gases from the petrochemical industry, can rapidly achieve megaton-scale CO2 emissions reduction.’ https://blog.sintef.com/sintefenergy/elegancy-tno-h-vision-project/

Innovation

CCUS - Application & Implications

FOSSIL ENERGY ECONOMY HYDROGEN ECONOMY

17

KeyState Pennsylvania’s Next Energy Revolution

https://www.iea.org/reports/ccus-in-clean-energy-transitions#

18

KeyState Pennsylvania’s Next Energy Revolution

NATURAL GAS WILL ALSO LEAD FUTURE REDUCTIONS VIA CCUS WITH POWER GENERATION & INDUSTRY AND WITH BLUE HYDROGEN PRODUCTION

WASHINGTON (April 13, 2020) ̶ The 2020 edition of U.S. Environmental Protection Agency’s (EPA) comprehensive annual report on nationwide greenhouse gas (GHG) emissions, released today, shows that since 2005, national greenhouse gas emissions have fallen by 10%, and power sector emissions have fallen by 27% -- even as our economy grew by 25%.

The United States is a world leader in protecting the environment and reducing greenhouse gas emissions. From 2005 to 2018, total U.S. energy-related CO2 emissions fell by 12%.

In contrast, global energy-related emissions increased nearly 24% from 2005 to 2018. https://www.epa.gov/newsreleases/latest-inventory-us-greenhouse-gas-emissions-and-sinks-shows-long-term-reductions-0

Jan. 7, 2020 at 6:00 a.m. EST U.S. greenhouse gas emissions fell 2.1 percent last year almost entirely because of a sharp drop in coal consumption, according to the Rhodium Group, a private data research firm.

“Last year was definitely a good news, bad news story,” said Trevor Houser, a partner with the Rhodium Group and head of its energy and climate team. “There was the biggest drop ever in electric power emissions but little progress in other sectors of the economy.” https://www.washingtonpost.com/climate-environment/us-greenhouse-gas-emissions-fell-slightly-in-2019/2020/01/06/568f0a82-309e-11ea-a053-dc6d944ba776_story.html

Natural Gas Production & Usage is Leading the Way in US GHG Reduction

19

KeyState Pennsylvania’s Next Energy Revolution

Even as Pa. natural gas production increased,

CO2 emissions fell.

http://www.ifo.state.pa.us/download.cfm?file=Resources/Documents/NGPR-2019Q3.pdf

SUPPORTING INFO

20

KeyState Pennsylvania’s Next Energy Revolution

https://www.eia.gov/state/print.php?sid=PA

SUPPORTING INFO

21

KeyState Pennsylvania’s Next Energy Revolution

https://www.eia.gov/dnav/ng/hist/n9050us2a.htm

1990 18,593,792

2019 36,515,188

US Natural Gas Production Doubled 1990 to 2019

SUPPORTING INFO

22

KeyState Pennsylvania’s Next Energy Revolution

https://www.epa.gov/sites/production/files/2021-02/documents/us-ghg-inventory-2021-main-text.pdf

US Natural Gas Production Doubled - Methane Emissions Held Constant - CO2 Emissions Dropped

SUPPORTING INFO

23

KeyState Pennsylvania’s Next Energy Revolution

https://www.epa.gov/sites/production/files/2021-02/documents/us-ghg-inventory-2021-main-text.pdf

30% Reduction in CO2

In Electricity Generation

15% Reduction in CO2 Overall

SUPPORTING INFO

24

KeyState Pennsylvania’s Next Energy Revolution

SUPPORTING INFO

25

KeyState Pennsylvania’s Next Energy Revolution

https://www.epa.gov/sites/production/files/2021-02/documents/us-ghg-inventory-2021-main-text.pdf

SUPPORTING INFO

26

KeyState Pennsylvania’s Next Energy Revolution

KeyState Carbon Capture & Storage

BLUE HYDROGEN & AMMONIA

Pennsylvania’s Hydrogen Economy Breakthrough Ammonia Made from Natural Gas = Effective Hydrogen Carrier = Low-Carbon Ammonia called, ‘Blue Ammonia’ when CO2 is Captured & Stored = Low-Carbon Nitrogen Carrier for Fertilizer

Blue Hydrogen & Blue Ammonia Made From Pennsylvania Natural Gas

Innovation

FOR BACKGROUND INFORMATION ON CCUS: Pennsylvania’s Carbon Capture Utilization and Storage ResearchKristin Carter, Assistant State Geologist PA DCNR, Bureau of Topographic & Geologic Survey

-Onsite Geological Carbon Sequestration - Integration of Capital & Operational Costs

of Gas Production and Carbon Storage

CCUS - Application & Implications

27

KeyState Pennsylvania’s Next Energy Revolution

GEOLOGIC CARBON SEQUESTRATION OPPORTUNITIES IN PENNSYLVANIA

Innovation

Validating Pennsylvania’s Geological Carbon Storage Potential

CCUS - Application & Implications

28

KeyState Pennsylvania’s Next Energy Revolution

EPA Greenhouse Gas

Equivalencies Calculator

What is the impact of storing 100,000 tons of CO2 per year?

https://www.epa.gov/energy/greenhouse- gas-equivalencies-calculator

29

KeyState Pennsylvania’s Next Energy Revolution

FOSSIL ENERGY ECONOMY HYDROGEN ECONOMY

30

KeyState Pennsylvania’s Next Energy Revolution

Global Average Cost of Production Blue H2 = $1.50 to $2.90kg Green H2 = $3 to $7.50kg

Pennsylvania Cost of Blue H2 is under $1.50kg

X

Green H2

31

KeyState Pennsylvania’s Next Energy Revolution

https://www.iea.org/reports/the-future-of-hydrogen

Grey & Blue Hydrogen Production Costs by Region

32

KeyState Pennsylvania’s Next Energy Revolution

Cost & logistics offer ‘blue hydrogen' market advantages over 'green' alternative

"Blue versus green is and will continue to be a regional question" said Zane McDonald, lead hydrogen and alternative transport analyst with Platts Analytics.

According to McDonald, regions with ample low-cost natural gas and the potential for CO2 storage capacity in retired oil and gas wells and/or salt caverns – more readily available in both North America and Europe – could make both locations viable markets for launching a blue hydrogen market.

‘BLUE’ MARKET ANALYSIS

33

KeyState Pennsylvania’s Next Energy Revolution

Why is the 45Q tax credit important?The revamped federal 45Q tax credit provides a foundational policy for incentivizing carbon capture deployment in multiple industries, much like the role the federal production tax credit and investment tax credit has played in wind and solar development, respectively. To fulfill carbon capture’s full potential for reducing emissions, enhancing domestic energy and industrial production, and protecting and creating high-wage jobs, a suite of federal and state policies is ultimately required to complement 45Q and drive investment, innovation, and cost reductions sufficient to achieve economy wide deployment (just as a full portfolio of federal and state policies has accomplished for wind and solar).How does 45Q support carbon capture projects?The expansion and reform of 45Q reduces the cost and risk to private capital of investing in the deployment of carbon capture technology across a range of industries, including electric power generation, ethanol and fertilizer production, natural gas processing, refining, chemicals production, and the manufacture of steel and cement.

CCUS Economics 45Q - CARBON USE & STORAGE TAX CREDIT

Green Ammonia Cost

34

What is Selective Catalytic Reduction?Selective Catalytic Reduction (SCR) is an advanced active emissions control technology system that injects a liquid-reductant agent through a special catalyst into the exhaust stream of a diesel engine. The reductant source is usually automotive-grade urea, otherwise known as Diesel Exhaust Fluid (DEF). The DEF sets off a chemical reaction that converts nitrogen oxides into nitrogen, water and tiny amounts of carbon dioxide (CO2), natural components of the air we breathe, which is then expelled through the vehicle tailpipe.SCR technology is designed to permit nitrogen oxide (NOx) reduction reactions to take place in an oxidizing atmosphere. It is called "selective" because it reduces levels of NOx using ammonia as a reductant within a catalyst system. The chemical reaction is known as "reduction" where the DEF is the reducing agent that reacts with NOx to convert the pollutants into nitrogen, water and tiny amounts of CO2. The DEF can be rapidly broken down to produce the oxidizing ammonia in the exhaust stream. SCR technology alone can achieve NOx reductions up to 90 percent.

General Rule: 1 Gallon of DEF Used for Every 50 Gallons of Diesel

Emissions Reduction Products

KeyState DEF Production = Elimination of 90% of

NOx/Smog Emissions for 8,000,000,000 Gallons of Diesel

CCUS - Application & Implications

Enough for every diesel bus, truck, train, boat, generator

& heavy equipment in Pa/NY/NJ +

35

KeyState Pennsylvania’s Next Energy Revolution

Green House Gas Impact

+ Preliminary Calculation = 23% reduction in CO2)

36

ENVIRONMENT

Former coal surface mining area.220 acre plant site within KeyState managed private wildlife habitat.Major new Elk Habitat in collaboration with local and State experts.Overall, more than 1,000 acres of habitat enhancement through KeyState support.Onsite water treatment plant

AIR QUALITY IMPACT

KeyState will produce enough diesel exhaust treatment for 57% of the diesel used in the Northeast and Central Atlantic and 100% of all used in Pennsylvania. Diesel Exhaust Fluid eliminates 90% of smog forming NOx and particulate matter emissions from diesel trucks, busses, ships, commonly called, ‘Short-Life’ Green House Gases.KeyState will eliminate 90% of the NOx for up to 8,000,000,000 Gallons of Diesel Fuel per year!!

CO2 EMISSIONS

A Gas Synthesis plant is not a ‘cracker plant’ - different process, different science, different emissions profileIntegral CO2 Capture Process

- 174,000 tons of CO2 generated in the manufacturing process is captured and used in the production of Urea for diesel emissions treatment - 104,000 tons of CO2 is captured and permanently sequestered in onsite geological storage.

Hydrogen/Ammonia production with CO2 capture and sequestration = ‘Blue Hydrogen/Blue Ammonia’ are low carbon replacements for conventional ‘Grey Hydrogen/Grey Ammonia’ - 51% reduction in CO2 per ton of ammonia.Blue Hydrogen/Blue Ammonia for transportation fuel, fuel cells and industryBlue Ammonia allows heavy manufacturing to dramatically reduce carbon profileBlue Ammonia as low-carbon NOx reduction of flue gas in Coal, Gas fired power plantsAs cost effective technology advances,100K additional tpy of CO2 can potentially be captured from exhaust gases23% reduction in CO2 per ton of DEF/Diesel Exhaust TreatmentBalance of electrical power provided by adjacent renewable energy project

METHANE EMISSIONS REMEDIATION

INNOVATIVE ‘CLOSED SYSTEM’ - Onsite Methane Production + Onsite Methane Transport + Onsite Methane UseNatural gas is supplied to the KeyState plant from its own new wells and gathering system, and not from the pipeline gas grid with gas from unknown origins and unknown adherence to protective regulations.5 new wells are drilled in year one and approximately one new gas well per year for 20 yearsBest practices elevated by ideal system to monitor, and remediate fugitive methane emissions

RESEARCH to INNOVATION to COMMERCIALIZATION

Major research partnership with academia, government and industry currently being negotiated. - Onsite CO2 capture, onsite usage and onsite sequestration. - Production, uses and impact of Blue Ammonia for industry, medical and agriculture - Enhance Gas Recovery - onsite CO2 - onsite gas wells - gas feedstock for onsite manufacturing - CO2 Cluster or Regional CO2 Storage Hub opportunity with nearby power and industry emitters. - Hydrogen storage in underground salt caverns

PRELIMINARY DESIGN

CAPACITIES

ENVIRONMENTAL SUMMARY CCUS - Application & Implications

37

KeyState Pennsylvania’s Next Energy Revolution

KEYSTATE ‘FIRSTS’

FIRST to Demonstrate a Low-Carbon Future for Pennsylvania’s Natural Gas

• FIRST commercial CCUS Project in Pennsylvania and the East.

• FIRST to integrate carbon storage and shale gas production. • FIRST to demonstrate the carbon storage potential of Pennsylvania’s Marcellus Region

• FIRST Blue Hydrogen/Blue Ammonia/Blue Nitrogen production in the Eastern USA.

• FIRST in the East to demonstrate the link between CCUS and the new Hydrogen economy

• FIRST to demonstrate a low-carbon-low-price product directly DISPLACING a higher-carbon-higher-priced product.

• FIRST to demonstrate onsite gas production, onsite manufacturing, and onsite carbon storage

• FIRST validation of ‘several hundred years’ of carbon storage’ geology in Pennsylvania.

• FIRST to show Pennsylvania’s potential as Hydrogen SuperPower for the next 30 years.

• FIRST to demonstrate that both major GHG emissions reduction objectives and natural gas production with CCS can work together resulting in massive longterm job creation and economic development for chronically poor, former coal mining and rust-belt areas.

• First to demonstrate ‘clean’ natural gas production via a ‘Closed Methane System’ of gas production, transport & manufacturing to monitor and eliminate methane emissions.

FOSSIL ENERGY ECONOMY HYDROGEN ECONOMY

38

KeyState Pennsylvania’s Next Energy Revolution

2020 2021 2021 2021 2022 2022/2024

4th qt 1st qt 2rd qt 4th qt 4th qt to 4th qt 2024DEVELOPMENT

PHASE I COMPLETE

DEVELOPMENT PHASE II

Pre-FEED PhaseCOMMENCE COMPLETE

DEVELOPMENT PHASE III

FEED PhaseCOMMENCE COMPLETE

CONSTRUCTION PHASE COMMENCE COMPLETE

COMMERCIAL OPERATIONS COMMENCE

KEYSTATE DEVELOPMENT

TIMELINE

39

KeyState Pennsylvania’s Next Energy Revolution

Pennsylvania’s Energy Leadership &

Pennsylvania’s Climate Impact Leadership

KeyState Natural Gas Synthesis & Carbon Storage

Integrating Natural Gas Production and Natural Gas Use

with Carbon Capture and Geological Storage

PENNSYLVANIA’S NEXT ENERGY REVOLUTION

PENNSYLVANIA HYDROGEN SUPERPOWER

2025 to 2050

40