ECO₂NOMICS™ THAT MAKE SENSE

Clean Coal Technologies Conference 2017

May 10, 2017 | 14:00 Cagliari, Italy

Simulation and Cost Analysis of Structured Adsorbent Capture Technology with Advances in Materials

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“Inventys is developing

technical advances that should dramatically reduce the cost of carbon capture

so that it can be

deployed worldwide.If successful, our technology

could revolutionize carbon capture.”

— Inventys Board Member Dr. Steven Chu, former US Energy Secretary and Nobel Laureate

ECO2nomics That Make Sense

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$60-90/tonneSolvent-Based

Liquid

<$30/tonneStructured Adsorbent

Solid

Inventys Story

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COST EFFECTIVE1/3 the capital cost

and 50% lower in total capture cost

of traditional solvent

COMPACT3-steps process

(adsorb, regenerate, & cool) in one single compact unit

HIGH PERFORMANCENanomaterials with

high surface area per unit volume and no chemical degradation (filling)

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Rapid Cycle Temperature Swing AdsorptionTHREE SIMPLE STEPS

As flue gas passes through the VeloxoTherm™ Adsorbent Structure, CO₂ clings to the adsorbent while the other gases pass through.

Step 1: Adsorption

After the structured adsorbent becomes saturated with CO₂, it is regenerated. Low pressure steam is used to release the CO₂ from the adsorbent.

Step 2: RegenerationAfter the CO₂ has been released, air is used to cool the structured adsorbent, preparing it for the adsorption step and the process is started over again.

Step 3: Cooling

60SECONDS

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Small Size & Compact Design

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~4,800 TPD CO2 CAPTURE PLANT

Solvent-based Liquid System

Structured Adsorbent Solid System

60 min 1 min

Core Technology Development

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EmbodimentArchitecture

ProcessCycle

Adsorbent Structures

• Contact Seals• Large Rotary Equipment

• Rapid Cycle Temperature Swing

• Dynamic Process Simulation• Steady State Simulation• Process Testing

• Adsorbent Development• Structures• Manufacturing

Material and Process Development

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Prototype Testing

Preliminary Modeling

Bed Design Modeling

Cycle Design Modeling

Bed Design Fabrication

Simulations and Verification Modeling Plant

Design

Machine Design Fabrication

Testing

Methodology

Proof of Concept Performance Validation

Performance Verification

Gap < 5%

Modeling Concept Design Fabrication Experimentation Verification Detailed Design

Material

Adsorbent Selection

Structured AdsorbentAdsorbent Sheets

B1

TD1

TD2

F1 VF1W1VW1

F2

P1 VP1

VF2

Cycle_Organizer

steamVsteam

Vvent vent

S1

S2

S3

S4

S5

S6

S7S8

S9 S10

S11

S12

S13

S14

Cycle Design Implementation

Bed & Cycle Performance Testing

Bed Design

Simulation

Validation

Cycle Design

Single Bed Testing

Dynamic Modeling

Cost Analysis Methodology

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Simulation and Verification Modeling

Identify Key Performance Indicators

Process Flow Diagrams and Major Equipment List

Equipment Cost calculated based on budgetary quotes where possible or APEA

Class IV TEA developed using Factored Estimate (AACE methodology)

Cost Model Definition

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CAPITAL COST ESTIMATION

Using factor methodology - based on AACE International 16R-90 with user variations based on cost factors from recently conducted FEED studies.

• Purchased Equipment Cost (PEC)

• Bare Erected Costs (BEC): PEC, supporting facilities, materials, bulks/commodities and direct and indirect labor expense

• Total Plant Cost (TPC): BEC + engineering/construction management/home office and contractor premiums, allowances and freight, process and project contingencies.

• Total Overnight Cost (TOC): TPC + pre-production costs, inventory capital, financing costs and other owner costs (where applicable).

0.5 TPD Field Demo Plant

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LOCATED AT PIKES PEAK SOUTH LLOYD THERMAL PROJECT

Block Flow Diagram

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~10,000 TPD CO2 CAPTURE AND COMPRESSION PLANT

STACK

FANHEX

TO WATER TREATMENT

FAN

CO2 PRODUCT

PC BOILERWITH SCR

STEAM TURBINES & FW HEATING

PA FAN

FD FAN

BAGHOUSE

FUEL

COOLING WATER SYSTEM

AIRHEATER

FGDID FAN

CO2 COMPRESSION,TEG DEHYDRATION

COOLING TOWER

CW SUPPLY

CW RETURN

VELOXOTHERM

DCC

FAN

2 UNITS

Simple and compact process resulting in low CAPEX

Design Basis

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PROCESS DESIGN BASIS AND PERFORMANCE TARGETS

Design Basis

Coal Flue Gas CO2 Concentration%v/v dry%v/v wet

15.012.8

CO2 Capture Capacity TPD 9,583

CO2 Capture Efficiency/Recovery % 90

CO2 Product Purity %v/v (dry) 95

CO2 Product Pressure psia 2215

Plant Capacity Factor % 85

Performance Targets

Steam Ratio kg/kg 1.5:1

Max Pressure Drop Per Adsorbent Pass kPa 10

Adsorbent Productivity TPD CO2/m³ 11

Auxiliary Flow to Fresh Feed Ratio mol/mol (dry) ~1.1:1

O2 Product Purity %v/v Less than 0.1%

Cost Model Results Summary

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RESULTS ($USD)

Total Cost of Capture $/T CO2 33

Total Overnight Costs $MM 288

Steam Energy Requirement* GJ/T CO2 4.0

Auxiliary Heating* GJ/T CO2 0.5

Capture Plant BoP Energy Requirement MWe 16.3

Compression Energy Requirement MWe 47.4

Steam Ratio kg/kg CO2 1.5:1

*Based on enthalpy of steam at take-off conditions – heat integration and pinch analysis to be conducted

The scope of this analysis, and associated capital and operating cost estimation, considers all unit operations, equipment and utilities implied below:• Gross power losses due to steam extraction at LP steam turbines • Net parasitic losses due to increase in auxiliary power demand• Raw make-up water (evaporative and stack losses)

Cost Model Results

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CAPITAL COST COMPONENTS

Total Capital <$290 MM USD

44%

28%

Cost Model Results

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COST OF CO2 CAPTURE AND COMPRESSION

Total Cost of Capture and Compression <$33USD/MT CO2

Steam Ratio Sensitivity

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COST OF CO2 CAPTURE AND COMPRESSIONSTEAM RATIO 1:1 kg/kg CO2

Total Cost of Capture and Compression <$30USD/MT CO2

Product Development Roadmap

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Mark I Successfully developed and

tested

Detailed TEA completed:

3-fold reduction in capital cost

$33 USD*

Mark IISignificant

reduction in energy cost, utilizing

tailored adsorbent

New architecture and adsorbent

properties within low-cost

embodiment

$25 USD*

Mark III Adsorbent development

program

Advances in adsorbent

chemistry to utilize waste heat

$15 USD*

*Lifecycle cost per tonne of Captured and Compressed CO2

Market Entry Strategy

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Lowering carbon footprint of oilENHANCED OIL RECOVERY (EOR)

Greener concrete products

CO2 into fuels and chemicals

Conversion of CO2 to Other Products

Sequestration for Climate Mitigation

THANK YOUBecky Gardiner

Lead Engineer rebecca.gardiner@inventysinc.com

604.456.0504 @inventysinc

www.inventysinc.com facebook.com/inventysinc

Are youready to help

meet the greatest challenge

of our time?

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APPENDIX

Cost Model Assumptions

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Base Cost AssumptionsPlant Operational Life Years 30

Discount Rate % 8.13

Plant Capacity Factor % 85

Capital Charge FactorsDepreciable Life Years 5

Income Tax Rate % 35

Capital Escalation % 2

Construction Period Years 2

Class of Estimate: Class IV Cost Estimate for the purposes of project feasibility.

Methodology: Equipment factors and/or parametric model.

Range of Accuracy: L: -15% to -30%, H: +20% to +50%

Units of Cost: $USD, Q4 2016 Basis

Cost Model Assumptions

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OPERATING COSTS

Cost of Electricity $/kWh 0.06

Cost of Natural Gas (LHV) $/MMBtu 3.52

Cost of Cooling Water $/m3 0.10

Cost of Boiler Feedwater $/m3 1.00

Annual Operating Labor (3per shift x 3 shifts +1extra operator)

$MM 1.0

Operating Supplies %TPC 0.5

Maintenance Labor %TPC 0.5

Maintenance Materials %TPC 1.0

Property Taxes %TPC 1.0

AACEi 16R-90- Table B3 (Gas-Solid, <150psig <400F)

Derived from Reference Class III Estimate

Materials[a]

Direct Labor[b]

Materials[a]

Direct Labor[b]

Setting na %of PEC - 5%

Foundations 5% 133% 4.5% 90%

Structural Steel 4% 100% 3.2% 23%

Buildings 2% 100% N/A N/A

Insulation 1% 150% 2.4% 150%

Instruments 2% 40% 3.8% 18%

Electrical 6% 75% 13.2% 25%

Piping (ducting) 35% 50% 33.3% 45%

Painting 0.5% 300% 0.1% 300%

Miscellaneous 4% 80% N/A N/A

Cost Model Assumptions

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BEC Estimation – Distributive Cost Factors

Material Cost = [a] x Equipment Costs, Labor Costs = [b] x Material Costs

In order to account for indirect costs, Inventys used a factor of 180% of direct labor expense which is consistent with the AACEi 59R-10 Recommended Practice range of between 115% and 180%.

Cost Model Assumptions

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TPC Estimation – Cost Factors

Item % of BEC % of TPC

(1) EPC and Mark-up 10.0 -

(2) Allowances & Freight 10.0 -

(3) Engineering & Home Office 9.5 -

(4) Process ContingenciesCAM: 35%BoP: 5%

-

(5) Project Contingency - 30

TOC Estimation – Cost FactorsFinal Total Overnight Cost includes a factor of:• 3% of BEC for commissioning and start-up costs

• 2.7% of TPC for financing costs

• 0.5% of TPC for Inventory Capital

• 1% of TPC for nominal prepaid license fees.

Cost Model Assumptions

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PEC – Source of Estimation

EQUIPMENT REFERENCE COST/SOURCESCALE

(TPD CO2)

Heat Exchangers APEA Volumetric Model N/A

Pumps APEA Volumetric Model N/A

Fans Budgetary Quote –06/2014 7800

DCC Budgetary Quote –06/2014 7800

CAM Embodiment Budgetary Quote – Supplier and In-house Estimation 4900

Adsorbent Bed In-house cost estimation - 11/2016 based on current adsorbent manufacturing capability. N/A

CO2 Compression and Dehydration

DoE/NETL-4010911211, Eliminating the Derate of Carbon Capture Retrofits [September 12, 2011] 9582

Calculated PEC converted to a Q4 2016 basis, using the Chemical Engineering Plant Cost Index (CEPCI) to adjust process plant costs.