Compact Carbon Free H2 Production from Natural Gas

Terje Gunnerød, COB

FROKOSTMØTE OM HYDROGEN, KONGSBERG 09.05.2019

Knut Kjær Jens EvensenKen Medlock

We develop technologies that help solve energy and climate challenges

Company Brief

•A Norwegian technology development company

•Specializing in development of energy generation- and conversion technologies,

•Based on patented principle of High-Gravity (High-G) Process Intensification

• We are competent and experienced.• We collaborate with leading R&D

institutions, academia and suppliers.

We challenge a 70 year old industry process.

The GHG emission challenge97% of all H2 is produced from Steam Methane Reforming of natural gas

Plant foot print 20,000 m2

Capacity H2 : 100,000 ton/yr. World H2 production is +/- 60 million tons/yr.

Current SMR process release +/- 10 ton CO2 for each ton H2 produced.

SMR process benefits:

• Low production cost. Cheap H2

SMR process disadvantage:

❖ High Emissions

❖ Require large space, scale for $

❖ High Capex & Opex

❖ High CO2 tax (where in place)

❖ Low Profit Margins

CO2 tax for 1 mill tons CO2 is (USD 50/ton) = USD 50 mill. CO2 tax for 600 million tons CO2 is (USD 50/ton) = USD 30 Billion.

The BIG picture: Environment and Cost

Rel

ativ

e H

2 p

rod

uct

ion

co

st RotoReform

SMRprocess

Electrolysisprocess

Rel

ativ

e G

HG

em

issi

on

s

•Blue vs. Grey vs. Green H2•Carbon footprint

Cost

Emissions

&

w/CCS

w/C

CS

Blu

e H

2

Green

H

2 Market drivers: • Cost, scale and

emissions are key. • Green H2 will not reach

cost parity with Blue H2 until 2030. Source: EU

Energy

✔ Clean energy

Cost

✔ Affordable ✔ Competitive with

alternative fuels

Environment

✔ Carbon free✔ Zero emissions

RotoReform ambition: • Develop technologies that will produce carbon free H2 at unmatched cost• Produce fuel grade H2 + 100% CO2 capture from LNG/NG

2019

SIZE MATTERS IN ELECTRONICS

SIZE ALSO MATTERS IN ENERGY TECHNOLOGIES

2022

Downsizing

20,000 m2

High Gravity Process Intensification

Moore’s law

200 m2

1985

Global knowledge center on High-G PI?Research Center of the Ministry of Education for High Gravity Engineering & Technology, Beijing University of Chemical Technology, Beijing, China. Prof. Jian-Feng Chenhttp://inpact.inp-toulouse.fr/GPE-EPIC2009/images/presentation_chen.pdf

What is High Gravity (High-G) Process Intensification?High-G PI will: Reduced: • Equipment size and area• Cost (CAPEX and OPEX)• Energy consumption• Chemical reaction time• Gas–liquid mass transfer time• Catalyst material

Increased: • Plant safety• Speed of chemical reactions• Process control• Product quality• Mass transfer and micro-mixing speed• Process capacity• Heat transfer capacity • Relative active heat exchanger area• Freedom of plant location

Source: Prof. Jian-Feng Chen

Process Intensification

Application areas

Processes that improve: Mass- & heat transfer, mixing, separation and

chemical reactions

Oil and GasEnergy conversion

Chemical Industries

Environment

Life ScienceMedical

Nano materials

Mass- and Heat Transfer technologies overview

Source: www.britest.co.uk

Current electrolyzer RotoLyzer design

Same efficiency, 5-fold

increase in performance. No bubble accumulation at electrodes and in the water make it possible!

High-G, rotating design means the cell stack can be reduced by a

factor of 100. This means smaller and cheaper production plants says NEL ASA, Market Dev. Mngr. Bjørn Simonsen.

RotoLyzer inventor Åge

Skomsvold

Dramatically reducing size and improving efficiency in water electrolysis H2 production

RIGHTS SOLD

Our CV: RotoLyzer®Green Hydrogen from a Ultra Compact Rotating Electrolyzer

Cold

Hot

Compression

Hot

Cold

Expansion

H2 (G)CO2 (L)

SMR

LIQ

WGS

H2O (L)CH4 (L)

Q

Turb

Heat OutQ=100 kW1

2 3

4

Compr100kW

Input

40kW60kW

From turbineTo compressor

Input work: 100 kW – 60 kW = 40 kW COP: 100 kW / 40 kW = 2. 5

Heat out: 140 kW – 28 kW = 112 kWCOP = 112kW / 12kW = 9,33

Conventional Heat Pump:

RotoHeatPump & RotoReform® principle

Coefficient Of Performance, COP = Heat out (Q) / kW input

Co

mp

ressor

Prototype under testing

H2O (L)

CH4 (L)

EL

Roto-Reformer®

CO2 (L)

H2 (Cold or Liquid)

CH4 + 2H2O CO2 + 4H2

16u + 36u 44u + 8u

4.5 kg H2O

+ 2 kg CH4

5.5 kg CO2 (Liquid)

+ 1 kg H2 (60 bar, - 160 C)

Compact Carbon Free H2 Production from Natural GasThe Solution: High Gravity Process Intensification

Space: for 6 - 40 ft containers = 200 m2

Capacity H2 : 100,000 ton/yr. CO2: 550,000 ton/yr.

200 m2

The RotoReformer will produce fuel grade Hydrogen from natural gas with 100% CO2 capture in-process.

• Space required is a fraction compared to existing SMR plants.

• Modular and scalable

• Low Capex and Opex

• High Margins

• Minimal H2 storage

• Hydrogen on demand

Container size 10 ft 20 ft 40 ft

L/W: 2.44/H: 2.89 [m] 3.05 6.06 12.19

H2 mfg. Cap [ton/day] 12 24 48

H2 mfg. Cap [ton/yr] 4375 8750 17500

Energy capacity [MWh] 20 40 80

20,000 m2 vs. 200 m2

Dramatic downsizing. Compact and scalable H2 plant

The Energy Landscape of the FutureSector Coupling - On- and Offshore - From Production to Consumer

•Estimated values• General: Ultra compact, rotating HP/HT Steam Methane Reforming H2 reactor.

• Integrates all four stages of SMR process into one enclosed, compact unit

• Produce fuel grade H2 + 100% CO2 capture from LNG/NG. Zero GHG emissions.

• Economic: Capex cost: +/- 1/3 to 1/4 of existing SMR plant.

• Economic: Production (Opex) cost +/- 1/3 to 1/4 compared to existing SMR process.

• Carbon Capture for free. (CO2 transport and storage is additional).

• Operational: Start-up and shut down in minutes vs. hours/days.

• Energy consumption: 75% reduction compared to existing SMR process. COP = 3 from the HP

• Plant size: Space: +/- 90% reduction compared to existing SMR plant.

• Plant location: Feasible and attractive to integrate onshore and offshore.

• CO2 storage: Plant location near gas well enables carbon storage at minimum cost. Makes CO2 based Enhanced Gas Recovery possible.

• Scalability: Containerized and modular: From 100 ton H2/yr to several hundred thousand ton H2/yr.

• Safety: Fully enclosed, ultra compact unit. No open flame natural gas fired boiler/steam generator.

The RotoReform competitive advantage

Green vs. Blue vs. Gray H2 Production Cost Comparison

https://www.nature.com/articles/s41560-019-0326-1.epdf?author_access_token=lci3r0jlBBQ487a7xjm3rtRgN0jAjWel9jnR3ZoTv0OU43KAoIuibBlrlITvtH92B7jQqv7uv_sa4JAExjXqoZ_h-0YTGSOXvBaW6XsbW3W8Msr1XlelhimDdc52EzT8OeN3EutRiPADlOYWbwExjw%3D%3D

Estimated Blue H2 RotoReform

production cost(Rotating SMR

reactor w/ 100% CC)

Estimated Green H2

production cost(Electrolysis)

Estimated Gray H2 (w/o CC)

production cost(SMR)

EU H2 fuel cost at the fill station: € 8-12

CO2 tax: [USD/ton]USA 0EU 35Japan 21Norway 50

Internal CO2 tax rate for project sanction [USD/ton CO2]Exxon 60BP 40Shell 40Equinor 50

LNG cost: USD 500USD/ton H2

CO2 tax (10 ton CO2 @ USD 50/ton): USD 500

CAPEX

NG Feedstock2,5-3ton

CO2 tax

CAPEX

OPEX OPEX

Current SMR Process3500 USD/ton H2

LNG cost: USD 400

CAPEX

OPEX

EstimatedRotoReformer

(RR)800 USD/ton H2

CAPEX

OPEX

NG Feedstock2 ton

Hydrogen Production Cost Comparison

https://brage.bibsys.no/xmlui/handle/11250/2402554

USD 2500/ton USD 400/ton

RotoReform production cost advantage:

USD 2700 ton/H2

For a 100 000 ton/year H2 plant:

Current SMR process: Production cost: USD 300 mill. + CO2 tax: USD 50 millRotoReform: Production cost: USD 80 mill. + CO2 tax: 0RotoReform advantage: USD 270 mill/yr

CO2

avoidance cost: USD 50 mill/yr

Cost of Carbon Storage not included

Carbon Capture for freeCarbon Capture not included

100 1,000 10,000 100,000 1 mill

10 mill

10

1 mill

100 mill

10 Bn

100K

1 Bn

10 mill10K

Annual production, ton H2/yrA

nn

ual ro

yalty, USD

/yr

Royalty model

$100/ton$300/ton

30 mill

Business Model – Royalty Based

Two step revenue model:1) Sale or lease of complete H2 plant 2) + annual royalties

Estimate for a 100 000 ton/yr plant*:*Represent 0.16 % of global annual H2 production. (60 mill ton)

1) CAPEX: USD: 150 mill (1/3 of SMR)2) Annual royalty: USD 10-30/yr

Life cycle revenue potential; $ 750 mill.(1 + 2 over 20 years)

'Energy-as-a-service’ life cycle concept; Design, Build, Finance and Operate H2 plant

RotoReform mfg. cost advantage over SMR: USD 2700 ton/H2.

We take USD 100 to USD 300 /ton in royalty

Unparallelled margins. Recurring and predictable revenue generation

Benefits: The RotoReform High-G Process Intensification design can: • Create a new Norwegian export industry• Supply clean H2 in industrial volumes to global customers• Protect the value of NCS gas reserves for decades to come• Enable a modular large-scale H2 mfg. strategy.• Increase recoverable gas reserves and prolong production• Help solve global climate- and GHG challenges.• Solve CO2 capture and storage (CCS) of at the source. • Will avoid the CO2 tax• Utilize knowledge and processes well known to O&G

companies, and is used in their everyday operations.

Offshore Blue H2 Production∙ Barriers against offshore H2 production: Safety, equipment size/space and process technical reasons.

∙ These two demands makes it impossible to design and place a H2 factory offshore, near the gas source – until now.

Thousands of years of CO2 storage available

https://www.globalccsinstitute.com/

RetoReformer - Development Plan

BasicTechnology

Research

Research To Prove

Feasibility

TechnologyDevelopment

TechnologyCommisioning System/

SubsystemDevelopment

System/Subsystem

Development

Concept engineeringUnderstand fundamentals

+/- 12 months

Proof of Concept

Prototype design, build & test

+/- 12 months

Proof of Design

Build full scale12-24 months

Pilot test

Pilot evaluationCommercial productReady for Operation

Current status

RotoReformer Technology Development time 3 – 4 years

RotoReformer is currently at TRL level 3; Consept

stage – patented.

• The RotoReform AS team: Competent and experienced.• We collaborate with leading R&D institutions, academia and suppliers.• We possess our own workshop and test facilities/lab.

USD: 1 mill USD: +/- 5-6 mill USD +/- 8-10 mill

Oslofjordfondet: 2MNOKUniveritetet i SørØst NorgeSINTEF

2019

Professor Lars Erik Øi, Dept. of Process, Energy & Environmental Technologies. www.usn.no. lars.oi@usn.no. +47-48071481, USN/Prof. Øi has over several years assisted with modelling (Hysis), calculations and analysis of thermo dynamic proceses exposed to high G-forces, high and low pressure and temperature.

Åge Skomsvold, CEO, Inventor & Founder

Morten Torsås, Mathematician,Project Manager

Yahya Dizaei. R&D Engineer

Terje Gunnerod, Chairman of the Board

Terje Ottar, Board member

Carsten Hagane, Project Manager, Torgy LNG AS, www.torgy.no. carsten.hagane@torgy.no +47 971 89 862Torgy provid a portfolio of products and services including design, manufacture and supply of LNG fuel systems, pressure vessels and thermal insulated cryogenic supports to the worlds LNG and Oil & Gas Industry.

A Strong and Competent Team

Partners:

Thijs Peters, Senior Research Scientist at the Department of Energy Conversion and Materials. www.sintef.no. +47-98243941, thijs.peters@sintef.no. Sintef will engage in problems tied to thermo dynamic process modelling, material selection for the reactor body and catalyst material selection at high G-forces, high and low pressures and temperatures. Additional team members: Richard Blom, Senior Research Scientist, Process Technology, Yngve Larring, Senior Scientist, Sustainable Energy Technology, Silje Fosse Håkonsen, Scientist, Process Technology

Project Team

Acad

emia &

R&

DIn

du

stry

AdministrationBoard

4. Storage• H2 gas and liq. tank storage• Underground H2 storage• CO2 injection/storage modelling

5. Safety Codes and Standards• Decentralized, containerized H2 mfg,

land• Offshore containerized H2 mfg

6. Distribution and Transport• Piped, H2 and CO2• Tank, pressurized and liquid• LNG carrier transport (look to Shell)• Specialized LHG carrier transport

7. Applications• El. power generation

• Fuel cell, turbine (direct or steam)

• Road transport, light, heavy• Marine vessels• Refineries, chemical plants• Heavy industries; steel mills, cement

plant

1. Technology development• Mathematical modeling and

calculations• Mass- &, heat transfer

• Computer modeling (Hysys)• 3D reactor design • New design tools for High-G PI• HT/HP reactor materials; • Instrumentation and process

control, SCADA• Catalyst material selection• Reactor manufacturing, • 3-D printing• CO2 injection/storage modelling• Prototype testing. Pilot testing• Full scale testing

2. Market• Global market access and

understanding• Commercial understanding• Capacity and ability to respond

3. H2 Production• NG & LNG processing• H2 SMR mfg• Safety codes and standards

Concept stage

partners:

Academia & R&D Industry

Future work: In talks with:

1 2 3 4 5 6 7

H2 Value Chain Challenges to solve - Partner Invitation

Funding: Oslofjordfondet

Thin

k

: Big: Global: Industrial scale

RotoReform contribution:• Access to new clean energy technologies with a

global need• Job creation. A new export industry• Supply clean H2 in industrial volumes to global

customers• Protect the value of global gas reserves for

decades to come• Solve CCS challenges at the source• Lower H2 production cost• Strengthen competitive position to technology

adopters• Open up new revenue streams

Goal: Decarbonize the planet: Provide affordable low carbon energy

Summed up:

Åge Skomsvold, CEO, Phone: +47 970 69 370 E-Mail: age@hyperenergy.no

Contact information:

Terje Gunnerød, COB, Phone: +47 478 44 218E-Mail: Terje@ictu.no

RotoReform ASNarverødveien 40NO-3113, TønsbergNorway

Org. no.: 921 676 735

Inventor |Founder | CEO | Åge Skomsvold• Former Commander on Norwegian Warship. • Expert member in NATO for developing regulations and policies for safe sailing in crises areas

(NCAGS).• Expert member in IEA for on-site hydrogen refuelling station for FCEV.• Worked on problems and technologies involving high gravity process intensification• In-depth involved in studies on physics, chemical processes, mechanical development,

patenting, entrepreneurship and management of technology development projects, together with employees, PhDs, academia, R&D institutions and experts.

• RotoReform technologies are covered by global patents

Some of the patents granted to Åge Skomsvold

http://www.journal.buct.edu.cn/EN/Y2018/V45/I5/33https://efce.info/efce_media/-p-531.pdfhttps://europic-centre.eu/wp-content/uploads/2013/04/NEW-TECHNOLOGY-SCOUTING-REPORT-2-2012.pdfhttps://europic-centre.eu/wp-content/uploads/2013/04/1.2.5.-Micromixers-TR-Update-2011.pdfhttps://www.rug.nl/research/portal/files/2603010/2010ChemEngProcHarmsen.pdfhttps://www.rvo.nl/sites/default/files/bijlagen/Action_Plan_Process_Intensification.pdfhttps://www.osti.gov/pages/servlets/purl/1361351https://www.researchgate.net/publication/223235724_Process_Intensification_Using_Multifunctional_Reactorshttp://www.fvt.bci.tu-dortmund.de/cms/Medienpool/Downloads/Research_Agenda_for_Process_Intensification_Towards_a_Sustainable_World_of_2050.pdhttps://s0.2mdn.net/ads/richmedia/studio/pv2/60740202/20180627042204535/index-bank.html?e=69&renderingType=2&leftOffset=0&topOffset=0&c=YwNEJvLsAg&t=1https://docs.google.com/document/d/148Lym3a487S8lha50QXGJfjQ1HmlNyj3QfLqAt0k0ng/mobilebasicwww.enova.no/pilot-e/https://www.hydrogen.no/hva-skjer/aktuelt/kraftig-hydrogensatsing-i-pilot-ehttps://434113txicu25pflj3lqxy8nen-wpengine.netdna-ssl.com/wp-content/uploads/2017/12/bigccs-final-report_16_11_hr.pdfhttp://www.ispt.eu/clusters/process-intensification-process-system-engineering-and-advanced-process-control/https://www.iea.org/newsroom/news/2019/february/iea-holds-high-level-workshop-on-hydrogen.htmlhttps://www.iea.org/workshops/hydrogen-workshop.htmlhttps://www.nature.com/articles/s41560-019-0326-1.epdf?author_access_token=lci3r0jlBBQ487a7xjm3rtRgN0jAjWel9jnR3ZoTv0OU43KAoIuibBlrlITvtH92B7jQqv7uv_sa4JAExjXqoZ_h-0YTGSOXvBaW6XsbW3W8Msr1XlelhimDdc52EzT8OeN3EutRiPADlOYWbwExjw%3D%3Dhttps://www.hydrogen.no/hva-skjer/aktuelt/kraftig-hydrogensatsing-i-pilot-ehttps://www.researchgate.net/publication/278716037_Rotating_reactors_-_A_reviewhttp://inpact.inp-toulouse.fr/GPE-EPIC2009/images/presentation_chen.pdf

Reference links