The Business Case for CCUS (especially utilization) AND ... · The Business Case for CCUS...
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CARBONTECH AND THE NEW CARBON ECONOMY The Business Case for CCUS (especially utilization) MATT LUCAS, PhD [email protected] Carbon180 @Carbon_180
Transcript of The Business Case for CCUS (especially utilization) AND ... · The Business Case for CCUS...
CARBONTECH AND THE NEW CARBON ECONOMY
The Business Case for CCUS (especially utilization)
MATT LUCAS, [email protected]
Carbon180@Carbon_180
CHANGEPOLICY
SUPPORTCOMMERCIALIZATION
CATALYZER&D
MissionCatalyze development of carbon removal solutions
Introducing the New Carbon Economy
GDP per capita
CO2 EMISSIONS GtCo2
Net Emissions and Per Capita GDP for a 2 Degree (C) Target
Carbon NeutralCarbon Negative
A DOUBLE-BOTTOM-LINE INVESTMENT
HISTORICAL EMISSIONS
REALIZED NEGATIVE EMISSIONS
EMISSIONS
NET NEGATIVE EMISSIONS
NET EMISSIONS
2015
1980 2100
50
-20
GLOB
AL CO
2 EMISS
IONS (
GT CO
2/YEA
R)4
[Carbontech] can remove over 10% of
the emitted CO2 [and can] keep temperature
increases well below a 2°C
increase.
Excerpt from McKinsey study commissioned by
Global CO2 Initiative
“0
BUSINESS AS USUAL
CHANGING LANDSCAPE FOR CARBON CAPTUREFrom “Is carbon capture possible?” to “How big will it be, and when?”
Petra Nova [TX]Post-combustion coal power plant + EOR
ADM Decatur [IL]Ethanol + geologic sequestration
Air Products [TX]Hydrogen generator + EOR
Carbontech opens a new path to the
New Carbon EconomyThe New Carbon
Economy
The Current Path
The New Carbon Economy
The Current Path
Needs more policy support
Association with fossil fuels
Technology path & scale dependency
The New Carbon Economy
The Current Path
Needs more policy support
Association with fossil fuels
Technology path & scale dependency
The Carbontech Path
WHAT IS CARBONTECH?carbontechan emerging industrial sector that captures, transports, and converts different forms of ‘waste carbon’ into a diverse array of valued products and services in a climate-beneficial way.
CARBONTECH PRODUCT EXAMPLES
CONCRETE FUELS VODKA DIAMONDS AGGREGATEPLASTICS
CARBONTECH PRIMER: ECONOMIC + CLIMATE OPPORTUNITY
$1.1T Annual market opportunity
Carbontech offers the only path to:
● Profitably convert carbon waste to value
● First step in developing technology, markets, and policy to reverse climate change
~McKinsey & Co.
CARBONTECH’S FLEXIBILITY IS A STRENGTH
Feedstocks
CO2
Biomass residues
Manure
Garbage
CARBONTECH’S FLEXIBILITY IS A STRENGTH
Feedstocks Process
Thermochemical
CO2
Biomass residues
Manure
Garbage Photosynthetic
Bio-catalyzed
Electrochemical
Photochemical
Building Materials
CARBONTECH’S FLEXIBILITY IS A STRENGTH
Feedstocks Process Products
Thermochemical
CO2
Biomass residues
Manure
Garbage
Plastics
Fuels
Textiles
AgriculturePhotosynthetic
Bio-catalyzed
Electrochemical
Photochemical
CARBONTECH IS A $1T+ US MARKET OPPORTUNITY
Engineered Wood Products$7B
The $1T Market
Opportunity
Built Environment (Non-Wood)Cement, Concrete, Asphalt, Aggregate
$99B
Transportation FuelsGasoline, Diesel, Jet
$480B
AgricultureFertilizer, Feed
$313B
PlasticsPolyethylene, Polypropylene
$37B
Consumer productsDiamonds, Spirits, Guitars, Furniture
$27B
$1B Industrial Gas
CARBONTECH IS A GEOGRAPHICALLY DISTRIBUTED OPPORTUNITY
ELECTRICITY
CARBONTECH IS A GEOGRAPHICALLY DISTRIBUTED OPPORTUNITY
ELECTRICITY
INDUSTRY
CARBONTECH IS A GEOGRAPHICALLY DISTRIBUTED OPPORTUNITY
ELECTRICITY
INDUSTRY
FOSSIL FUEL PRODUCTION & USE
CARBONTECH IS A GEOGRAPHICALLY DISTRIBUTED OPPORTUNITY
ELECTRICITY
INDUSTRY
FOSSIL FUEL PRODUCTION & USE
MINERALS
CARBONTECH IS A GEOGRAPHICALLY DISTRIBUTED OPPORTUNITY
ELECTRICITY
INDUSTRY
FOSSIL FUEL PRODUCTION & USE
MINERALS
BIOGENIC
CARBONTECH OPERATIONS ARE WIDELY DISTRIBUTED
PROJECTS
COMPANIES
STARTUPS
NAS Study
Federal: 45Q,
USE IT Act
California: Low-Carbon Fuel Standard,
Buy CleanEU:
UK Innovation Funding (R&D funding)
Research leadership and policy support are growing
45Q KEY FACTS● Federal tax credit● $35/ton for CO2 captured and used in EOR or Carbontech● $50/ton for CO2 captured and sequestered● Credit can be claimed for 12 years from when operations begin● Construction must begin by Jan 1, 2024
45Q WHY IT MATTERS● First incentive for carbon capture● Bipartisan support● Promotes double bottom line: economy and climate
45Q TAX CREDIT: QUICK FACTS
COUPLING THE LOW CARBON FUEL STANDARD WITH CARBONTECH
ETHANOL PRODUCTION
SUGAR (CORN)
ETHANOL
CO2
C C C CC
COUPLING THE LOW CARBON FUEL STANDARD WITH CARBONTECH
ETHANOL PRODUCTION
SUGAR (CORN)
ETHANOL
DISTILLER’S GRAINS
CO2
C C C CC
COUPLING THE LOW CARBON FUEL STANDARD WITH CARBONTECH
ETHANOL PRODUCTION
SUGAR (CORN)
ETHANOL
SILLAGE
DISTILLER’S GRAINS
CO2
C
C C CC
COUPLING THE LOW CARBON FUEL STANDARD WITH CARBONTECH
ETHANOL PRODUCTION
SUGAR (CORN)
ETHANOL
SILLAGE
DISTILLER’S GRAINS
CO2CARBONTECH PRODUCTS
CC
C CC
CHANGEPOLICY
SUPPORTCOMMERCIALIZATION
CATALYZER&D
MissionCatalyze development of carbon removal solutions
NEW CARBON ECONOMY CONSORTIUM
Read the Innovation Plan for a New Carbon Economy:www.carbon180.org/newcarboneconomy
ENTREPRENEURSRequire a comprehensive suite of support
to bring their innovations to market, specifically connections to
customers + investors
CORPORATESNeed to externalize high-risk research and gather perspectives on innovation to inform strategy and partnership decisions
INVESTORSSeek quality deal flow with compelling
value propositions, validated technology + trustworthy teams
Accelerators are the most efficient way to nucleate business ecosystems for emerging industries, solving multiple stakeholder challenges
CARBONTECH LABS - WHY AN ACCELERATOR?
RECRUIT:Cohort SelectionSeeking the most diverse portfolio of carbontech innovators with a broad, comprehensive identification strategy
TRAIN: Customer DiscoveryProviding education, mentoring, networking + convenings while developing compelling value propositions + business models
DE-RISK: Tech ValidationQuantifying key techno-economic metrics + removing ‘science risk’ from ventures
DEPLOY: Field TestDemonstrating technology in partnership with potential corporate customers/partners
Recruited CohortA diverse cohort of the most promising carbontech innovators
Investor Collateral DevelopedComplete written collateral for investor conversations + independent technology assessment from Labs technical staff
Validated Lab PrototypePrototype reliably performing in lab + ready for deployment
PHASES
CHECKPOINTS
CAPITAL INJECTION CAPITAL INJECTION CAPITAL INJECTION
CARBONTECH LABS - PROGRAM STRUCTURE
@Carbon_180
www.Carbon180.org
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