Final Presentation Liquid Wind · Liquid Wind –Final Presentation 25 €/MWh. Pros and Cons for different locations Based on 5 MW/(5600 tons CO 2) plant ... may bechallenging Enviro

Welcometo:FinalPresentation

LiquidWindFebruary23,2017

Projektparter

BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB

Projektparter


Projektparter


Projektparter


Projektparter


Projektparter


Projektparter


Projektparter


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TheChallenge

• Morewind andrenewableenergyongrid• Pricereduction andfluctuationincreasing• Largescalestorage needsbedeveloped

• ReduceCO2 levelsthatkeeponrising

• Cansurplus,storage&CO2reductionbelinked

LiquidWind- InitialMeeting 11

TheObjective

• Figureout:– IsitfeasibletoproduceRenewableMethanol(ReMe)onsmall/mediumscaleinwesternSweden

– Whereshouldplantbelocated,considering• RawmaterialandPowersupply• AvailableinfrastructureandTransportation• Willplantsizedeterminelocation?

– Whatisthemosteffective waytobuildtheplant• Fromcost,time,efficiencyandexpansionpointofview

– Calculatedproductioncostofmethanol• Whichfactorshavebiggestimpactonmethanolprice


Whatareweattemptingtosolve

• Storingwind andotherrenewable energy• ReducingCO2 drastically• ProducingrenewableCO2 neutralfuel• Creatingjobsandresearchopportunities• Takingagloballead,‘Swedendiditfirst’• Buildingaplatformforexport business

Itwilltremendousefforttobuildfirst bigplant

LiquidWind– FinalPresentation 13

Thestudyindicatesgreatpotential,ifopenmindednessandlong-termvisioncanmeet

• Isitpossibleandfeasibletoproducerenewablemethanolin(western)Sweden• Yesonlargescalewithfavorableenergyprices

• Whatlocationismostsuitable,considering:– Rawmaterial(CO2)andpowersupply– Availableinfrastructure&transportation– Size/Capacityoftheplant

• 1)Selfconsumptionofpower2)AccesstohighconcentrationCO2 3)Largeplant

• Whatisthemosteffectivewaytobuildtheplant:– Fromcost,time,efficiencyandexpansionpointofview– WhatHS&Eregulationsneedtobefollowed– Howlongwillittaketobuildaplant

• Nexttoapowergrid,whereenvironmentalpermitsexist,logisticsinplace

• Estimatedmethanolcost:– Whichfactorswillhavebiggestimpactonthemethanolprice

• Initially,higherthanblackmethanol,electricitycosthavehighimpact


Biggestcostdriverbyfar,iselectricity,closelyfollowedbycapitalcostofelectrolyser

Theitemsthathav ethe biggestimpact:

– LandedElectricitycost• Thisincludesenergycost,gridfeesandenergytaxes

– Capitalcost&efficiencyofelectrolyser & methanolsynthesis,• ThenetH2cost/kgisakeyfactor• Toreachtargetcostlevel,plantmustoperateminimum7500hrs/year

– Renewablemethanolpremiumvalue• Findingclientsthatwillpayforthevalueofrenewable/carbonneutral• Targetistoreachmarketmethanolprice+375 Euro/ton(now)

15LiquidWind- InitialMeeting

Sohowisrenewable Methanolmade…


(Surplus) energyandrejectedCO2 in,renewablemethanolandO2 out

17LiquidWind– FinalPresentation

CO2O2 (H2)

Threewell-knownprocesssteps,maximizingyieldandreducingcostiskeytosuccess


ElectrolyserWind El H2

CO2

Reactor CH3OH + H2O

Heat / O2

Heat

Condensation

CH3

OH

H2O

H2O

Multiplevariablesimpactthesolution,focusingonthosethatmattersimplifiestheapproach


CO2

S/M/L5/25/50MW

ProcessEfficiency

PlantCapCost/Capacity

Costofinput

Valueofoutput

Availabilityofinputatrightplaceandtime

AvailabilityofmarketandvalueofCO2neutrality

O2(H2)

PlantUtilization

Multiplevariablesimpactthesolution,focusingonthosethatmatterclarifiestheapproach


CO2

S/M/L5/25/50MW

ProcessEfficiency

Costofinput

Valueofoutput

Availabilityofinputatrightplaceandtime

AvailabilityofmarketandvalueofCO2neutrality

O2(H2)

PlantCost5MW=(3.0€/W)50MW=(1.3€/W)

PlantUtilization8000hrs/y

TeamhasfocusedontwooptionsPowerinput 5MW 50MW

MethanolOutput 4,000tons/year 40,000tons/year

CO2 utilised 5,600tons/year 56,000tons/year

Plant utilisation 8000hrs 8000 hrs

Electroliser w H2storage 8,000,000 Euro 40,000,000Euro

ReactorandB.o.P 6,800,000 Euro 25,600,000Euro

Technical Lifetime 25 years 25years

Operational condition Withor withoutGridFee Withor withoutGridFee


Businesscasewillgetbetterasprocessesbecomemoreeffective

• Improvedtech.process• MarketExpansion• Largerorders

• ResearchfromChalmersshowsthatoperatingcostreductioninmethanolgenerationcouldbe20-50%dependingontechnologyusedandtimeframe.

• Source:Electrofuels forthetransportsektor.


Costreduction

SalespriceoftraditionalfuelcomparedtoRenewableMethanol

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140

160

180

CO2Premium

CO2Tax

EnergyTax

€/Mwh


€/MWh

CalculatedprodcostforReMe

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40

60

80

100

120

140

160

180

CO2Premium

CO2Tax

EnergyTax

€/Mwh


€/MWh

LocallyproducedReMe cancompetewithsomeregularfuel

0

20

40

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140

160

180

CO2Premium

CO2Tax

EnergyTax

€/MWh


€/MWh

ProsandConsfordifferentlocationsBasedon5MW/(5600tonsCO2)plantTorp Windfarm ‘’Gasendal’’upgrading Lillesjöverken

Svensk NaturEnergi Göteborg Energi Uddevalla Energi

Windfarmwith20MWcapacity

Gasupgrading site.SeparatesCH4andCO2

Waste2Energy plant.Producespowerandheat

CO2tobetruckedin CO2available5-6000 tonsEnoughforsmallplant

CO2potentiallyavailable110000tons/costly

Nostaffonsite Staff oncall 24/7staff

Energyonsite self-production4-6MWEnoughforsmallplant

GöteborgEnergygrid Energy available?selfproduction4-6MWEnoughforsmallplant

Factoryinforest,maybe challenging

Enviropermits inplace,spacelimited

Enviropermits inplace,spaceavailable


Twooptions…for50MWplantindustrialsiteorfloatingplantIndustrial Floating Open option

Chemical industrialpark Offshorewind Goodforproject

Produces fuels&Chemicals WindEnergyGeneration Caution forproject

CO2 available NoCO2 Concernforproject

Mayhavewaste heatWouldliketopurchaseO2

CO2arrivesby tankerMethanolshippedwithtanker

Needs furtherinvestigation

Staffonsite Technical staffavailabledaily

NoenergyproductionLargeconnection

Energyavailable,largevolumelowcostSelf-production

Environmentalpermits inplace

FewerpermitsrequiredIf building offshore


A50Mwplantcoulddeliver…

• MethanolSales(40,000tons)– Soldatmarketprice+CO2 benefitpremium– Marketprice(Feb2017)355€/ton– CO2 benefit375€/ton– Potentialrevenue:29.200.000€/year

• GridServices/Systemtjänster – tooearlytobasebusinesscaseon– WilllikelybeamarketinSwedenin3-5years

• O2sales– MarketmayexistsforlowvaluehighvolumeO2,notstudiedindetail

• H2sales– Marketwillevolveasdemandgrows,limitedcapacity

• Heatsales– initiallyminimisedbyre-usinginternally


Howfarcanyougowith40,000tReMe,withanenergycontentof220GWh

• Afewcomparisons– StenaGermanica toKieluses100tperreturntrip• Soatotalof400trips

– OneGeely methanolcarwouldgo420,000,000km• Atotalof21,000carswouldgo2,000Swe Mil/year

– BoilerfuelforDistrictenergy• X%ofGbg energypeakloadannually


Noroadblockshavebeenfound,roadbumps willbenavigatedcarefully• Health&Safety- OK• Firesecuritycanbemanagedtospecification• Environmentalpermitsrequired– largeplants• Gridservicesmarket– notdeveloped/ready• Methanolfuelusersfewbutgrowing• CO2extractionfromWaste2energy– stillcostly• CO2premiumvaluestillevolving


Conclusionandnextstep

• Theprojectteamhasyettoselectthe‘’right’’sizeandlocation.Suggestedapproach,evaluatefurtherbypriority:

1. 50MWcapacitynoGridFeelocation2. 50MWcapacitywGridFee(northernSwe)3. 50MWcapacitywGridFee(southernSwe)4. 5MWcapacitynoGridFee


TheLiquidWindProjectTeamsuggest:

• Furtherstudyforsuitable50MWlocation– Keepa5MWoptioninmindaswell

• Identifyandagreewith3-5clients(LOI)• Bringtogetheraconsortiumof3-5partners• Finalizebusinesscaseandgeneratefinancing• Prepareengineeringdesign• Startconstruction2018/2019• Firstrenewablemethanolinmarket2020


LiquidWindislookingforPartners

• Tojointhedialogueandaddknow-how• Whowanttouserenewablemethanol• Whocouldconsiderjoiningaconsortium

• Anyoneinterestedpleasecontact:– ClaesFredriksson,LiquidWindcoordinator



SupportingMembers


Frågor?


WhatdoesCO2 looklike


Back-Up

Wallenstam’s needtostorewind,leadtotheLiquidWindproject

• Wallenstam,theownerofSvensk NaturEnergi,theowner/operatorof150MWofwindenergyproductioncapacity,isseekingawaytostorelowvaluewindenergy.

• Wallenstam tooktheinitiativetotheLiquidWindprojectinspring2016,requestinganinitialreviewoftheopportunity,fromFreeThem Generation.

• Wallenstam wantstofindawayofcollaboratingwithgridownersinawaythatwillstrengthenthegridandoptimise thegridfees.


Largecapacityandhighutilization,reducedgridfee,isarequirement


Energy/El

MethanolProd.Capacity5MW=2-4,000tonnes/y

50MW=20-40,000tonnes/y

PlantUtilization4000or8000hrs/y

PlantCost5MW=15M€(3€/W)

50MW=66M€(1.3€/W)

Costofinput

Valueofoutput

EnergyPriceinSweden:- Energy 1/3- Gridfee 1/3- Energytax 1/3

Selfconsumptionreducescost

ValueofMethanoldependsonmarketandneedforCO2

neutrality

Methanol

renewable

Workpackage1- 101)MethanolSales/Distribution2)O2/H2&HeatSales3)GridServices/PowerSupply4)CO2&WaterSupply5)Regulations&Tax6)HealthSafety&Environment7)ProductionProcess89)ConstructionandCalculationProcess10)Projectmanagement


TrendssupportingRenewableMethanol

• Renewableenergyprice,graduallygettinglower• Hydrogenproductioncostdecreasing– activeresearcheffortsintoelectrolysers

• EfficiencyinH2 productionimproving• Methanolsynthesiscostwilldropwithvolume• ReME willbeappreciatedinchemicalsectortoo• CO2 penaltycostwilllikelyincrease– alsomarine• Morevehicleswillusemethanolasfuel• MethanolwillbeusedmoreinFuelCells– yield!


Howmuchis40,000tmethanol,withanenergycontentof220GWh

• Afewcomparisons– StenaGermanica toKielconsumes100tpertrip• Soatotalof400trips

– OneGeely methanolcarwouldgo420,000,000km• Atotalof21,000methanolcarsgo2,000Swe Mil/year

– BoilerfuelforDistrictenergy• X%ofGbg energypeakloadannually


PossibleinvestorsinLiquidWindplant

• Klimat Klivet– SupportforCO2reduction

• Gröna Fonden– Almi Invest/Tillväxtverket managednewfundför CO2reduktion

• DemoFonden– Fondfrån Saminvest (Fouriertransform/Inlandsinnovation)

• Energimyndigheten– Jaför en Pilotanläggning - focuspå innovation

• Bränsle användare – medviljan att använda något miljövänligare• Gäller att enas omaffärsmodellen

– Lagra vind,Återanvända CO2,Producera Bränsle,Erbjuda systemlösning förklimat nytta som möjliggör fossilfri (tyngre)transport


Theseissueswillbetakencareofnext• Whattypeoforganizationswouldinvestinarenewablemethanolplant

– Whatmessagewillbeattractivetopossibleinvestors– Whatownershipstructurewouldbesuitable

• Stilltobedetermined– likelylargerplayers

• Willtherebecustomerswhentheplantisready– Whatpricelevelwillmakemethanolattractive– Whatregulationswillguidethecreationofarenewablemethanolmarket

• Yesmarketexiststoday

• Whatadditionalrevenuestreamscanbedeveloped– Net/Gridservices– O2andpossiblyH2sales– CO2reductionservices

• Tobedeterminedinnextphase


WhataboutElectricorFuelCellcars


WhataboutElectricorFuelCellCars?

• Electriccarsaregreatandworksuperforlimitedloadanddistance

• ElectriccarsrunonHydrogenconvertedbyFuelCellstoelectricityhavehighconversionfactor

• MethanolasfuelforFuelCellwillsimplifyfuelmanagement.MethanolcontainsmoreH2thanLH2

• Moreelectriccarsrequiremoregridbalancing.MoreH2carsmeansmoreelectrolizer development.Itallworkinginthesamedirectiont.


TheResults– othercostsMaincomponentsrequiredinprocess,cont.

– Condensation - removewaterfrommethanol• Dependsonendcustomersrequirement• Someclientswouldlikewaterblendedmethanol• Costofreductionprocess

– Detailedcostsdependonplantdesignandhetusage

– Methanol/CO2storage• Providecapacityfor2typesoffuelandliquidCO2• Storagesizedependsofpick-upfrequency• Infuturemaybepipeline,dependingonlocation

– Probablyuseonetankstoragedependsonlocation(iffloatingmaybebunkershipdirect)

– LoadingandunloadingofMethanol&CO2• Costofequipment

– Specifictolocationanddesign

– Operations• Dependsonplantssizeandautomationlevelandlocation• Manning/costswillbereducedwithmoreautomation–

– Forlargeplantonsiteoperators,forpilotplantcanlikelyoperateremotelyduringnighttime


Documents

Final Presentation Liquid Wind · Liquid Wind –Final Presentation 25 €/MWh. Pros and Cons for different locations Based on 5 MW/(5600 tons CO 2) plant ... may bechallenging Enviro