Carbon Recycling International - Europa by Kees HETTIN… · 2006 Carbon Recycling International...

Carbon Recycling International

Liquid Transport Fuel production fromRenewable Energy, CO2 and water

Kees Hettinga, EU Business DevelopmentCO2 Reuse Workshop, Brussels, June 7 2013

Carbon Recycling International – Do not quote without permission

Agenda What is Carbon Recycling International (CRI)? What is CRI’s Emission-to-liquids technology (ETL)? Is ETL ready to be deployed at scale? What will be the impact of ETL on in the market? Does CO2 re-use make a business case? What are the needs of this sector? What are the bottlenecks?


What is Carbon Recycling International?2006 Carbon Recycling International founded in Reykjavík

2007-2010 Development of emission-to-liquids technology

2011 Construction of plant beginsGrant to develop waste to fuel technologyFleet trials with oil companies

2012 Plant inauguratedETL patent issued in USFFV fleet trials with MethanexSales of Vulcanol to biodiesel and chemical productionDutch regulations amended to include VulcanolCommercial contract with ArgosEU grant to develop cyclic carbonates from CO2 technology

2013 Continuous operation of industrial plantSales to Holland


What is the Emissions-to-Liquids process?

Reaction

Hydrogen (H2)

Renewable power

Gasification

VulcanolCH3OH

Power plant emissions

Electrolysisof H2O

Conditioningof flue gas

CO2

Oxygen (O2)

4


Opportunities for electrofuels

Stranded renewable energy Convert to green MJ Lower CO2 footprint

Location

+MJTime

–CO2

We don’t face energy shortage: we face an energy location and distribution problem

Renewable energy sourcesare usually either stranded“in time” – intermittent – orby location - access todistribution and market

Overcome location anddistribution issue whilereducing carbon footprint oftransportation and increasingrenewable energy

Conversion provides greenenergy in liquid form whichis easily stored andtransported and meetstargets for sustainability

Industrial scale plant in operation from 2012

Now (Phase I)1,800 t/yr CO22 MWe1,300 t/yr methanol

Full capacity (Phase II)5,400 t/yr CO25 MWe4,000 t/yr methanol

Carbon Recycling International – Do not quote without permission 7

Blue Lagoon and Svartsengi power plant, Reykjanes

CRI Plant


Svartsengi Geothermal Resource Park

WaterDisrict HeatingPower Production

Geothermal SpaSkin Care ClinicCosmetics

CO2 recyclingFuel production

HS Orka The Blue Lagoon Carbon Recycling International


How can CRI scale to 100 t/day?70 m

50 m

Commercial scale45,000 t/yr CO235,000 t/yr methanol~ 100 t/day

Current scale5,400 t/yr CO24,000 t/yr methanol`~12 t/day

170 m

130 m

3500 m2

22000 m2

Proven processSkid based modular designLow scale up risk


Pipeline of 100 t/day projects in Iceland

CSP1

CSPII

CSPIII

Svartsengi

Reykjavik

Krafla


Technology is deployed at industrial scalewhich limits risks of going to larger scale Scale-up and sustained operation of production plant has

been demonstrated under industrial conditions Plant is based on modular design and construction which

allows scale up risk to be contained and predictable Energy and feedstocks available and can be locked in with

long-term contracts for power and other utilities CRI R&D working with vendors on reducing CAPEX in

larger scale plant beyond economies of scale


What is the addressable market in EU?

12

Direct gasoline blending

Fuels and blending agentsNow:MTBE: methanol 6 %v/vFAME/RME: methanol 15 %v/vFuture:DME: methanol 100 %v/v

Polymers

Chemical feedstock

Now:EN228: methanol 3 %v/v

?

2 Gt/yr

10 Gt/yr

12 Gt/yr

Complex value chainLow premia for lower CO2


CRI has tested high Vulcanol blend in Flex FuelVehicles (E85) which require no modification

FFV/E85 vehicle incremental production cost ~€100/car

Engine control system already reprogrammed for higher oxygen

Active oxygen sensor connected to engine control

Fuel tank and fuel linefrom material alreadycompatible withalcohol

Fuel pump andinjectors alreadydesigned for morefuel throughput


Member States must ensure 10% offinal consumption of energy intransport is from renewablesources

Renewable energy sources are non-fossil sources, both non-biologicaland from biomass and biogas

Biofuels must meet specificsustainability criteria; contributionof energy of biofuels from wastesand cellulose shall be counted twice

Does the current policy framework promoteproduction from non-biological sources?


Member States must ensure 10% offinal consumption of energy intransport is from renewablesources

Renewable energy sources are non-fossil sources, both non-biologicaland from biomass and biogas

Biofuels must meet specificsustainability criteria; contributionof energy of biofuels from wastesand cellulose shall be counted twice

ILUC amendment limits crop based biofuelsand promotes more advanced renewables

Only 5% of energy should come from firstgeneration biofuels

Only 5% of energy should come from firstgeneration biofuels

Non-bio and waste energy should be givenspecial incentives (multiple counting)

Non-bio and waste energy should be givenspecial incentives (multiple counting)

Sustainability criteria for new biofuels plantsare increased (to 60% offset from 35%)

Sustainability criteria for new biofuels plantsare increased (to 60% offset from 35%)


How will ETL impact supply and pricing In medium term producers are price takers based on

current economics of 1st generation biofuels and €/MJ Technology is cost competitive and has scaling potential

which will impact market over longer term horizon Next steps is to scale the technology at ~100 t/d in

Iceland with available green energy and CO2

Main challenge for deployment of technology in mainlandEU is to compete with feed in tariffs and RED frameworkon LCA for electro-fuels


Does CO2-to-fuel reuse technology makeeconomic sense?

Value of energy ($/MWh) based on price of ethanolValue of energy ($/MWh) based on price of ethanol


Needs and Bottlenecks Small player in a very big market Barriers to entry in fuel market Excise duty per liter Text and regulations written for bio, e.g. Double counting

currently only for biomass, RVP waiver for ethanol only

Use of renewable electricity by means of certificates oforigin

Value in CO2 reduction not valued by market andregulations


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Carbon Recycling International - Europa by Kees HETTIN… · 2006 Carbon Recycling International...

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