eshuttle edc process · 14 ihs global chloralkali, vinyls and polyurethanes –october 7, 2020...

1 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

eShuttle® EDC ProcessParadigm Shifting Technology

IHS Global Chlor-alkali, Vinyls and Polyurethanes Conference

October 7, 2020

2 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20202

Agenda» Introduction to Chemetry

» Overview of eShuttle® EDC Process

» Tour of EDC Demonstration Facility

» Impact of eShuttle® EDC Technology

» Introduction to eShuttle® PO Technology

3 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Introduction to Chemetry

4 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20204

Chemetry Overview» Funded by leading energy investors and US

Department of Energy

» World class laboratories and demonstration

facilities with 100,000+ R&D hours

» Strategic partnership with engineering and

technology licensing leader - TechnipFMC

» Patents: 60+ allowed and 30+ pending

» Technology proven at pilot scale and

partnerships for commercialization for EDC

» 3 MT/day EDC Demo Plant operational 2022

» Propylene Oxide technology currently being

validated at Chemetry Pilot Plant

2017 Kirkpatrick Honor

Award Recipient

2018 American Chemical Society

Green Chemistry Award

5 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20205

The Commodity Chemical Problem» HIGH ENERGY CONSUMPTION

– Accounting for > 600,000 MWh of electricity daily

» HIGH OPERATING COSTS

– Plants uneconomic in high energy price regions

» ENVIROMENTAL IMPACT

– Worldwide CO2 impact of >160 BTA

– International markets rely on mercury and asbestos

» HEALTH & SAFETY CONCERNS

– Numerous accidents involving chlorine gas

» NOT GOING AWAY

– >>$100BB industry producing essential chemicals used

in 41% of goods

6 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20206

The Solution - Chemetry’s eShuttle® Platform

7 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20207

Overview of eShuttle® EDC Process

®

8 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20208

eShuttle® Platform - Next Generation Technology✓ Reduces power consumption by 25-50%

1 Plant = CO2 Savings of 100,000 EV’s

✓ Intrinsically safer process

✓ Same products from same feedstocks

✓ Proven at pilot scale

✓ Key strategic partnerships in place

✓ Shut-down economics

9 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 20209

eShuttle® EDC is Commercialization Ready

2012

Chemetry-TechnipFMCCommercial Agreement

2016

2018

2020

2014eShuttle® Process

Conception

Laboratory Validation

eShuttle® Pilot Plant Construction

eShuttle® EDC Demo Plant Agreement

eShuttle® Demo PlantConstruction

Cell scale-up and manufacture

10 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202010

EChlor-Alkali = 3.0V EeShuttle™ = 2.4V

eShuttle® Process Simplified2NaCl + 2H2O + C2H4 → H2 + 2NaOH + C2H4Cl2

Cl-

CATHODE

-+

ANODE: Cu+ Cu2+ + e-

E˚ = 0.159 → 0.7VCATHODE: 2H2O + 2e- H2 + 2OH-

E˚ = -0.83V

Na+

NaCl

H2

OH-

NaOH

CATION

MEMBRANE

ANION

MEMBRANE

CuCl

CuCl2ANODE

Homogenous Catalysis Reactor

Ethylene

H2O

EDC

11 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202011

eShuttle® EDC Process Proven at Pilot Scale

✓ Fully integrated and automated facility

✓ 36 months of operation achieving key performance metrics

12 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Demonstration Facility» Maceio, Alagoas State, Brazil

Map and photos courtesy of Braskem, SA

13 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Facilities Location

PONTAL DA

BARRA

TRAPICHE

MACEIÓ

MARECHAL

DEODORO

14 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Chloralkali Plant

Chlor-Alkali plant is located on the coast a few kilometers south of Maceio, 200

meters from the Mundau lagoon and 100 meters from the Atlantic Ocean.

Atlantic Ocean

Green Belt

Maceio city

15 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Demo Plant Location

16 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202016

Overview of Demonstration Plant

17 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202017

Electrolyzer

18 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202018

Side View of Electrolyzer and Frame

19 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202019

Top of Reactor Tower

20 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202020

Project Timeline» Construction through Q4 2021

» Transport and assembly on site – Q1 2022

» Commissioning and operations – Q1 2022 through Q2 2023

» Site visits possible beginning in Q2 2022

21 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Impact of eShuttle® EDC Technology

22 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202022

Mercury Cell Chloralkali Plants» Number of plants - 22

» Capacity - 1,570 KTA

» Power consumption - 5.4 million

MWh/yr

» Power savings - 2.3 million MWh/yr

» Cost reduction - $70 million/yr

» GHG reduction - 1.5 million MT

CO2/per year

Capacity and baseline cost data courtesy of IHS Markit

23 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202023

Diaphragm Chloralkali Plants» Number of plants* - 34

» Capacity - 10,900 KTA

» Power consumption – 30.9 million

MWh/yr

» Power savings - 9.2 million MWh/yr

» Cost reduction - $267.8 million/yr

» GHG reduction - 6.1 million MT CO2/yr

* - Not including plants committed to PO production

Capacity and baseline cost data courtesy of IHS Markit

24 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202024

Older* Membrane Chloralkali Plants» Number of plants - 95

» Capacity - 13,713 KTA

» Power consumption - 36.2 million

MWh/yr

» Power savings - 8.9 million MWh/yr

» Cost reduction - $354 million/yr

» GHG reduction - 5.9 million MT CO2/yr

* - Plants built before 2000

Capacity and baseline cost data courtesy of IHS Markit

25 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202025

The Economic Value of eShuttle® EDC» Potential Savings for the average plant in each decile on the cost curve

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

1 2 3 4 5 6 7 8 9 10

Mil

lio

n U

S$

pe

r ye

ar

Decile of Cost Curve

Annual Cost Savings for an average plant in each Decile

Annual Savings (25% savings) MM$ Annual Savings (30% savings) MM$ Annual Savings (40% savings) MM$

26 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Preview of the eShuttle® PO Process

27 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202027

» Chemetry process reduces power, NaOH, and wastewater

requirements

– Chemetry process saves 45+ tonnes of water for every tonne of PO

– 60% less energy versus traditional PO process

» Ability to leverage EDC

development work and pilot facility

» Pilot facility designed, constructed,

and producing PO

» Clear economic advantage

and market demand

– $500+MM additional NPV per plant*

Second Product - eShuttle® PO Process

2016

Chemetry-TechnipFMCCommercial Agreement

20182019

2020

2017Laboratory Validation

Pilot Plant Construction

*Based on Industry Validated Assumptions

Process Optimization

28 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202028

PO Process Overview: Process Loops

Overall Reaction is: C3H6 + ½ H2O + ¼ O2 → C3H6O + ½ H2

29 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202029

PO Process Overview: Key Advantages

Conventional

eChem Cell

Chlorohydrin

Reactor

PO

Reactor

O H

Cl

2 NaCl

O

2 NaOH

Chemetry

eChem Cell

Chemetry

Bromohydrin

Reactor(s)

PO

Reactor

O

1 NaOH

H2O

1 CuBr2

1 CuBr

Conventional Chlorohydrin Process

Chemetry eShuttle® Process O2

Cl2

Power savings:

Lower voltage

from eShuttle™

Zero-Liquid Discharge

from high concentration

saponification

Power savings: with

oxybromination,

current cut in half

H2O

OH

Br

NaBr

30 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 202030

eShuttle® Platform Summary» EDC Technology on path for commercialization

– Demonstration Plant in operation in 2022

– Reduced operating expense and inherently safer process

– Partners are in place for scale up and commercialization

» PO Process being optimized in Pilot Plant

– Lower Capital Costs and Operating Expense than current processes

– Zero Wastewater generation and lower GHG Generation

– Seeking Demonstration Partner

» Chemetry and the eShuttle® Platform are focused on reducing power

consumption and environmental impact of Commodity Chemicals

31 IHS Global Chloralkali, Vinyls and Polyurethanes – October 7, 2020

Thank you!

» Robert Snyder

» Chief Strategy Officer

» Chemetry Corporation

» 11500 Dolan Rd.

» Moss Landing, CA 95039

» rsnyder@chemetrycorp.com

» M - +1 404 823-3902