New business opportunities based on biogenic carbon dioxide - PowerPoint PPT Presentation

New business opportunities based on biogenic carbon dioxide utilization Janne Kärki 14 th International Conference on Greenhouse Gas Control Technologies, GHGT-14 21 st - 25 th October 2018, Melbourne, Australia 1 22.10.2018 VTT – beyond the obvious

From IPCC Special Report 15 (Published 8.10.2018) “CO 2 emissions from industry in pathways limiting global warming to 1.5°C are projected to be about 75–90% lower in 2050 relative to 2010.“ “Such reductions can be achieved through combinations of new and existing technologies and practices, including electrification, hydrogen , sustainable bio-based feedstocks , product substitution, and carbon capture, utilization and storage. ” http://www.ipcc.ch/pdf/special-reports/sr15/sr15_spm_final.pdf (page 21)

H 2 SOURCES FUELS  Container scale, easy to transport, easy to CO 2 SOURCES CHEMICALS connect to gas streams FISCHER-TROPSCH & CO 2 METHANATION SYNTHESIS REACTORS @VTT

Outline 1. Chemical-looping combustion for a biomass fueled CHP plant enabling negative emissions 2. Polyols from (biogenic) CO 2 and renewable power 3. Paraffinic wax production from CO 2 via Fischer-Tropsch (FT) synthesis 4. Demonstration of P2X process technical feasibility Kestäv ävää ää kasvua a ja työtä-oh ohjel elma

Chemical-looping combustion for a biomass fueled CHP plant enabling negative emissions Tomi Thomasson, VTT 5 22.10.2018 VTT – beyond the obvious

Finding the business case in bio-CLC  Chemical-looping combustion of biomass  The need for negative emissions (bio-CLC) enables: vs. the lack of incentives • Low operational capture costs (15-25 €/ton CO2 )* • Relatively low capital costs • High total efficiency  Potential for integration – would combining CLC with CCU increase the feasibility? Air Fuel * Anders Lyngfelt, Bo Leckner (2015) 6 22.10.2018 VTT – beyond the obvious

1) CHP plant for base demand 0-50 €/ton CO2 0 €/ton CO2 2) Heat-only boilers (HOB) for peak demand Storage 3) CCS added to the system Venting 4) CCU added to the system 7 €/ton CO2 max. 30 ton CO2 /h 30 ton CO2 /h Processing CO 2 max. 3 ton CO2 /h 9 MW 3 MW 18 €/MW Purification 0-37 MW FCR Heat and power 10 €/ton CO2 from CHP CHP Electrolysis 1 MW 8 MW 0-88 MW Oxygen from 1.9 ton O2 /h electrolysis 0-50 €/ton CO2 Formic acid Oxy- Buffer (or methanol, O 2 H 2 polishing storage methane, other HOB hydrocarbons) 1.4 ton O2 /h 0.2 ton H2 /h Cryogenic 0.9 ton/h 0-88 MW oxygen plant 100 €/ton O2 0.7 €/kg 7 22.10.2018 VTT – beyond the obvious

Key findings of the bio-CLC study CCS and CCU complement each other Net profit • CHP generates heat and power flexibly (M€/a) • CCU provides oxygen and load for CHP No subsidy Subsidy 4 Integration of CCU is beneficial… 2 • Decreases fossil CO 2 emissions on system level 0 • Notable income from frequency -2 containment reserve (FCR) -4 … but overall, still not economically sensible CLC + CLC + Air-fired CLC CLC + • Investment cost should decrease by 20% formic acid methane methanol • Feasibility relies on subsidized negative emissions

Polyols from (biogenic) CO 2 and renewable power Kristian Melin, VTT 9 22.10.2018 VTT – beyond the obvious

Background and motivation  Polycarbonates and polycarbonate polyols have growing markets with total demand of tens of millions tons annually.  In technologies based on fossil epoxides the carbon dioxide content is typically 20 - 40 %.  With the studied CO 2 -to-olefins technology, polycarbonates with 100 % carbon originating from CO 2 can be produced and on commercial scale millions of tons of CO 2 could be used annually !  Techno-economic (TEA) performance of a suitable process concept was evaluated for a 30 kt/a polycarbonate polyol plant integrated to a pulp mill environment 10 22.10.2018 VTT – beyond the obvious

Process Concept and TEA assumptions Recycle of methane, C5+ and CO 2 Electricity Hydrogen H 2 Combined Olefin Polymerization Olefin oxidation production by reforming and production of epoxides by peroxides Polycarbonate electrolysis rWGS by FT with CO2 O 2 Water polyol TRL 3 TRL 3 TRL 9 TRL 5-6 TRL 3-4 CO 2 from flue gases Peroxide from the market CO 2 from flue gases or produced on-site Inputs Price Outputs Price Other parameters Power (produced at 34 eur/MWh 50 MW power Polycarbonate polyols 2500 eur/t Plant capacity pulp mill) input By-product gas from FT- Hydrogen peroxide 1000 eur/t 45 eur/MWh Annual CO2 use 60 kt synthesis Water for 0.4 eur /m3 Steam 8 eur/MWh Annual polycarbonate polyol production 30 kt electrolysis CO 2 50 eur/t By-product heat 0 eur/MWh Annual plant operation 8400 h Annuity factor for 20 years investment time 11 22.10.2018 VTT – beyond the obvious Oxygen 41 eur/t 0.117 and 10 % rate on invested capital

Results • Estimated investment cost 100 Meur ± 30 Meur • Payback time approximately 2 years depending on the polycarbonate polyol price • Note! The estimates are based on assumptions of several low-TRL technologies that need still experimental verification 12 22.10.2018 VTT – beyond the obvious

Paraffinic wax production from CO 2 via Fischer-Tropsch synthesis Marjut Suomalainen, VTT 13 22.10.2018 VTT – beyond the obvious

Drivers and background  Paraffinic wax is used as raw material in thousands applications • Global market demand ~3 Million t/a • Both demand and price increasing since 2015  Presently the main raw material is fossil crude oil • Via FT-synthesis non-fossil originated raw material can be used  Study focus: Feasibility estimation of a small-scale FT system producing paraffinic wax as main product • Located in Finland • Integrated to a CO 2 emitting biobased industrial source 14 22.10.2018 VTT – beyond the obvious

Chemical production from CO 2 via Fischer-Tropsch synthesis CO 2 containing gas CO 2 CO 2 absorption Replacing FT- liquid Electricity (C 5 -C 18 ) heating gas oil H 2 Water Syngas & FT Electrolyser conversion O 2 Raw material to Paraffinic Heat O 2 FT-wax for example (C 18 +) candles • By-products • Main product paraffinic wax 1500 t/a , utilissed in a local candle factory • Pure oxygen 11 500 t/a (50/15 €/t) • CO 2 rich gaseous emission stream derived • FT-liquid (light paraffinic oil) 1100 t/a (0.6 €/l) from biobased process • District heat 36 700 MWh/a (70/55 €/MWh) • Electricity from the markets • Electricity consumption 11 MW e (39/45 €/MWh) • Optimistic and realistic price assumptions • CO 2 consumption 13 000 t/a

Production cost of paraffinic wax Key findings: Production cost of paraffinic wax • Production cost (1.4 €/kg) in 3,0 Realistic base case optimistic scenario exceeded Optimistic base case Production cost of paraffinic wax, €/kg 2,5 Realistic util. 65% the market price of fossil-based Optimistic util. 65% competitor (> 1.1 €/kg) 2,0 • Electricity and CAPEX are the 1,5 most significant cost factors 1,0 • Integrating the concept with industry both producing CO 2 0,5 and utilising by-products 0,0 oxygen and heat is crucial for 15 20 25 30 35 40 45 the economic viability Electricity price (inc. taxes and other payments), €/MWh

Demonstration of P2X process technical feasibility

Bio-CCU demonstration Power-to-X (P2X) route for liquid and solid hydro-carbons production. Utilizing biogenic CO 2 from bioethanol production which is currently vented out from the fermentation process. Location: St1 biorefinery @ Jokioinen, Finland See VTT's press release for further info

The demostrated P2X scheme • Gaseous fraction (C1-C4) ~20% • Gasoline fraction (C5-C12) ~25%. • Diesel fraction (C13-C18) ~15%. • Heavier fraction mainly waxes (C18+) ~40%. • Small amount of n-alcohols and olefins. Liquid HC: 3-5 litres/day Solid HC: 6-9 litres/day

Opening event 9 th of Oct 20 22.10.2018 VTT – beyond the obvious

Acknowledgements and further info European Regional Development Fund (ERDF) for funding Bio-CO 2 and Bioeconomy+ projects janne.karki@vtt.fi www.vtt.fi/sites/BioCO2/en www.vtt.fi/sites/bioeconomyplus Negative CO 2 research project