bio-co2 value chains for demonstration 1 bio-co 2 value chains for demonstration neo-carbon energy 9...
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113/12/2017 1
Bio-CO2 value chains for demonstration
NEO-CARBON ENERGY 9th RESEARCHERS’ SEMINAR, 11.12.2017Janne Kärki, VTT
WP3 work during NCE Phase I
Link Link
Altogether 16 individual studies on industry-integrated P2X concepts
Altogether 10 individual studies on enabling framework
Conclusions from Phase I business case studies
• Especially attractive sites for P2X integration are CHP plants and wastewater treatment plants, where heat can be utilised.
• Additionally there are rather good integration opportunities within pulp mills, steel industry and in ammonia production.
• For the 1st applications the best paying capability is offered in transportation fuels.
• Utilisation of at least 1-2 side products (heat, oxygen, steam) for additional revenue is typically required to enable profitability.
Bio-CO2 value chains - project
• Find sustainable new business from biogenic carbon dioxide value chains in Finnish biomass driven industry sectors for:– synthetic fuel production– biogas upgrading– industrial chemicals – other valuable products utilising bio-CO2
• Project schedule: 03.10.2016 - 31.08.2018
• New CO2 capture, purification and utilisation solutions and services– demonstration activites in separate project(s)
Key tasks• WP I: CO2 utilisation
• Review study on different pathways• Case studies in different process environments• Vision on possible value chains
• WP II: CO2 capture & purification• Most potential CO2 capture locations in Central-Finland• Review on CO2 capture & purification in ”utilisation-scale” solutions• Co-operation with possible Finnish technology developers
• Dissemination• www, articles, media, some, etc.• Workshops and a company road-show• Seminar participation
Sustainable new business from biogenic carbon dioxide
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CARBON DIOXIDE, CO2
Mineralisation-Concrete curing
-Aggregates-Mineral carbonation-Precipitated calcium
carbonate (PCC)
Chemical conversion
Biological conversion-Algae cultivation
-Greenhouses-Gas fermentation (e.g. biological methanation)
Polymers-Polycarbonates
-Polyols intermediates
Fuels & chemical
intermediates
Commodity-”Renewable
urea”
Methane (CH4)Formic acid (HCOOH)3
Methanol (CH3OH) 2
Syngas (CO+H2)
Methanol, ethanol..
Gasoline,
olefins...
Gasoline, diesel,
olefins...
MTBE*, DME**
Form-aldehyde
Gasoline
Olefins
Fischer-Tropsch (FT)
+H2
Direct use-Food/beverages
-Industrial gas-Refrigerant
-Working fluid-Solvent
-pH control-Enhanced oil
recovery (EOR)-Enhanced coal
bed methane (ECBM)
*methyl-tert-butyl ether**dimethyl ether
Main CO2 utilisation routes and options
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+H2 +N2+
NOTE: The diagram presents only the most important options for the near-term . There are other routes suchelectrochemical and photochemical routes and hundreds of other possible products.
Case study examples
Purpose: study the economic feasibility of CCU processes in different biobased industry sectors
Case 1: Sawmill casea) Methaneb) Methanolc) Formic acid
Case 2: Boosting biogas productiona) Stand-alone biowaste digesterb) Waste-water treatment plant
The cases are generic in nature: they do not represent any actual siteand thus various assumptions regarding e.g. heat demand have been made.
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Why have we chosen these products?
a) Methane (CH4)- Transport fuel sector offers good payment capability- High technology readiness level (TRL8) – demonstrated at relevant scale already
b) Methanol (CH3OH)- Large market: important bulk chemical & chemical intermediate, can also be as fuel- Methanol is used in production of resins/adhesives for wood industry- Methanol is imported to Finland- High technology readiness level (TRL8) – demonstrated at relevant scale already
c) Formic acid (HCOOH)- High-value chemical with low risk of substitution: used e.g. in animal feed,
leather tanning, textile dying and for producing de-icing agents- Theoretically attractive synthesis route from CO2 and H2
(no side-products, CO2+H2 HCOOH)- Currently limited market size &
low technology readiness level (TRL3-5)
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Integration of bio-CCU to the sawmill
• Selected scale is 9 MWe electrolyser corresponding to the Europe’s largest water electrolyser (Woikoski, Kokkola, Finland)
• CO2 is captured from the biomass boiler, which provides the needed heat for the sawmill and produces also district heat
– CO2 is purified to the required specifications– Constant costs of purified CO2 are assumed
• Heat, produced as a side-product of Power-to-X applications, is assumed to be fully utilisable – and also the possible steamdemand of Power-to-X can be covered by the biomass boiler
• There is no demand for oxygen at site:– In optimistic scenarios, it is assumed that some revenue can be
generated from O2
– In conservative scenarios oxygen is assumed to be vented
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CO2
Simplified block diagramsFormic acid synthesis
• Chemical conversion of CO2 and H2 via homogenous catalysis
• 105 bar & ~90 °C, ruthenium- and phosphino-based catalysts• Tertiary amine for adduct-formation and polar solvent (methanol-water)• Steam required for separation of solvent and amine from the product
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Electrolysis=67% LHV)
Synthesisconv.H2=63%
conv.CO2=98%
Stripping of solvent
(methanol)
Liquid-liquidseparation of
catalysts
Reactive distillation
(separation and purificationof FA from amine-adduct)
Electricity& gridservice
Steam
Heat
Water H2
CO2O2
Formic acid (85%)
Amine
Amine+catalysts
Methanol
FA-adductFree amineCatalystsMethanol
FA-adductMethanol
Amine FA-Amine adduct Formic acid
Perez-Fortes&Tzimas (2016). Technoeconomic and environmental evaluation of CO2 utilisation for fuel production – Synthesis of methanol and formic acid, Joint Research Centre, Report EUR 27629 EN, 86 p.
3.7 MW
3060 kg/h
1440 kg/h
181 kg/h
1620 kg/h
2540 kg/h
8.5 MW
~1/5 Eastman/Taminco’sOulu plant
Economic feasibility evaluationHourly plant operation model for P2X processes
• The NCE-model is based on mass and energy balances calculated from given efficiencies and chemical conversion rates, losses etc. for each process
• Main input variables: – Price/values of process inputs and outputs
• Hourly electricity prices, constant price for others– CAPEX and O&M costs– Economic parameters (e.g. WACC, lifetime)
• Results:– Cost and income structures– Profit, EBIT, EBITDA, Payback period, IRR and
levelised cost of product (taxes not considered)– Operation mode distribution (full load, FCR, stand-by)
• Sensitivity:– Optimistic and conservative scenarios for market values– Sensitivity towards main variables
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CAPEX of the main processes• Total investment costs are scaled from the reference size specific costs according to equation:
Cost = Reference cost ×Capacity
Reference capacity
• OPEX:
[1] BioCat Project Final Report[2] Same as [1] but assuming 30% cost reduction for pure CO2 feed[3] Derived from Perez-Fortes&Tzimas (2016)
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Referencespecific costs
Referencecapacity Scaling factor
Alkalineelectrolyser (eff. 67% LHV)
1000 k€/MWe 9 MWe 0.93
Chemical methanation 1000 k€/MWSNG 5 MWSNG 0.67
Biologicalmethanation (raw biogas as feed)
730 k€/MWSNG[1]
5 MWSNG[1]
0.40[1]
Biologicalmethanation(pure CO2 asfeed)
510 k€/MWSNG[2]
5 MWSNG[2]
0.40 [2]
Methanol synthesis 1000 k€/MWMeOH 5 MWMeOH 0.67
Formic acid synthesis
5400 k€/(tFA/h) [3]
1.5 tFA/h[3] 0.67
WACC 6%, 20 years
Installation/project cost of 15% is added to costs
9 MWe plants:SNG & MeOH ~18 M€Formic acid ~27 M€
2 MWe plantSNG ~5 M€ (biol.methanation)
*NOTE: in case of formic acid synthesis – which is a net consumer of heat+steam– the higher values for heat and steam (€/MWh) are actually decreasing the competitiveness
Market parametersOptimistic scenario Conservative scenario
Products • SNG 80 €/MWh• MeOH 100 €/MWh• Formic acid 700 €/t
• SNG 60 €/MWh• MeOH 70 €/MWh• Formic acid 600 €/t
Electricity spot pricescenario
• Finland 2016 80% (avg. price 25.6 €/MWh)
• Extra price variation±30%
• Finland 2016 (avg. price 32.0 €/MWh)
Electricity transmission + net taxes 11 €/MWh 11 €/MWh
FCR scenario Finland 2016 fixed(17.4 €/MW, h)
Finland 2016 fixed(17.4 €/MW, h)
CO2 capture+purification 30 €/tCO2 50 €/tCO2
O2 utilisation 50 €/tO2 0 €/tO2
Heat utilisation* 30 €/MWh 20 €/MWh
Steam utilisation* 30 €/MWh 20 €/MWh
Investment subsidy 30% 0%
Biogas pumpprice today~80 €/MWh(VAT0%)
Results - Sawmill case
LCOP = Levelised cost of product, €/MWh for SNG and MeOH, €/kg for formic acid
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• Formic acid case is highly profitable even with conservative market parameterswhile SNG & MeOH are clearly unfeasible
– SNG and MeOH would require the product to have roughly a double value to break-even
• With optimistic assumptions SNG is just about profitable, while MeOH cangenerate somewhat more profit
k€/ak€/ak€/ayears
€/MWh or €/kg
80 €/MWh 100 €/MWh 0.70 €/kg 60 €/MWh 70 €/MWh 0.60 €/kgAssumed valueof product:
Optimistic scenario Conservative scenario
ResultsSawmill case – Formic acid sensitivity study
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• There is a lot of uncertainty with formic acid case due to low TRL– Highest uncertainly for catalyst costs especially for the catalyst consumption
as the process has not been piloted yet
8-fold increase in catalyst costs or the decrease of product value from 600 ~400 €/t, would makeformic acid case unfeasible
k€/ak€/ak€/ayears
€/kg
Referencevalue was0.6 €/kg
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Results are described in more detail in:
Sampo Mäkikouri, Markus Hurskainen, Janne Kärki, Eemeli Tsupari, Eija Alakangas, Cyril Bajamundi (2017). INTEGRATED UTILISATION PATHWAYS FOR BIOGENIC CARBON DIOXIDE IN BIOMASS DRIVEN INDUSTRY SECTORS
http://www.vtt.fi/sites/BioCO2/PublishingImages/tiedotteet/5BO.4.4_paper.pdf
See also:www.vtt.fi/sites/BioCO2/
Kestävää kasvua ja työtä-ohjelma
Project: Demonstration of bio-CO2products with novel research platform
Kestävää kasvua ja työtä-ohjelma
Key objective
Demonstrate utilization of biobased CO2 as a raw material for • synthetic transportation fuels• boosting bio-SNG production• or industrial
chemicals/products
Schedule 01.09.2017 - 31.7.2019
Kestävää kasvua ja työtä-ohjelma
Targeted research platform
Investment on mobile hydrogen production unit will be made and it will be integrated with existing VTT’s synthesis unit and industrial CO2 streams
Kestävää kasvua ja työtä-ohjelma
Demos
Demonstrations with the developed platform will be conducted within e.g. bio-product mill or in bioethanol or biogas production
Kestävää kasvua ja työtä-ohjelma
Mobile synthesis until (MOBSU)
CO2
H2
MOBSU is a multipurpose synthesis unit for CO2 upgrading to energy carriers and chemicals which can be transported on-site where CO2 emissions and energy are available.
- Control room- Process area- Gas alarms and safety system- Gas analysis
PRODUCTS:- WAXES AND LIQUID HYDROCARBONS- SYNTHETIC NATURAL GAS- METHANOL
Kestävää kasvua ja työtä-ohjelma
Electrolyser investmentCompetitive bidding process:
(31/08/2017) 23 Target Companies(26/10/2017) 16 Contacted Companies(01/11/2017) 9 Companies Logged-in to Claudia System(13/11/2017) 2 Companies submitted tenders(30/11/2017) Decision was approved, published in Claudia
End of May Expected Delivery
Kestävää kasvua ja työtä-ohjelma
Electrolyser - Main Features
Giner ELX Electrolyser:• Proton Exchange Membrane (PEM)
electrolyser• Production of 4 Nm3/h with 55 bar
output and 50 bar storage pressure• Nominal power ~20 kW• Hydrogen purity is 99.999 % • Housed in standard 10ft shipping
container Giner ELX PEM electrolyser in an IP55 container
Kestävää kasvua ja työtä-ohjelma
CO2 capture options
Ville Laitinen
CarbonReUse Finland Oy- Possible co-operation between projects
Biogas or other biogenic processes- Utilisation of existing CO2
Kestävää kasvua ja työtä-ohjelma
Stages of the project1. Investment for H2 production (PEM, 4 m3/h, turn-key)
2. Integration analysis of H2 production with different CO2 sourcesand synthesis unit
3. Demonstration activities:
a. SNG production in biogas processes
b. Liquid and solid hydrocarbons within biogenic CO2 sources, e.g bio-CHP or bioethanol production
4. Feasibility studies of different products and markets
5. Business opportunity analyses
6. Dissemination and company activation
Kestävää kasvua ja työtä-ohjelma
Thank you for your attention!
www.vtt.fi/sites/bioeconomyplus