Liquified Electricity an opportunbity for Energystorage

Energy Storage 2015

4. February 2015

E-Methanol as a Biorefinery Product

2

bse engineering Leipzig GmbH

Share our experience in a future market! In a joint effort with our project supervisors, planners and engineers, we were able to assume a

prominent position in the planning and realization process of Europe´s largest bio-ethanol complex.

You can become part of a growing renewable energies market by taking advantage of our service.

• Planning , authorization and execution of projects

• Administrative management

• Budgeting

• Investment planning

• Cost management

• Project management

Production start: spring 2005

Product: 800 m³ ethanol/ day

Budget: over 185 Mill. Euro

industrial and constructional planning involving bio-ethanol and sugar industry • schematic design, realization and administrative management • project and cost management

Mottelerstrasse 8 • 04155 Leipzig / Germany • phone +49 (0) 341 60912 0 • fax +49 (0) 341 60912 15 • www.bse-engineering.eu • bse-leipzig@gmx.de

• Package 1

Technical feasible

• Package 2

legal challenge

• Package 3

Commercial viability

Content

3

Power production in Germany

• Power Export Germany in 2013 was 34 TWh

• Emission load for Germany 30 Mio to CO2/a

• Additional saving demand 22 Mio to up to 2020

• Missing Grid Infrastructure reduce the renewable Power

production capacity

• Missing the climate Targets 2020

• 656 TWh Consumption in the Transport sector

4

Energy Storage Volume of different storage systems

5

Storage of 4.800 kWh

*Berechnung ohne Umwandlungsverluste auf Basis der Heizwerte.

Solution must be the Chemical Energy storage

6

First Step of chemical Power Storage H2

1. Electrolysis

Electrolysis O2

2H2 2H2O

Energy

density /Vol

Technical

Utilization

power

Type Token Level of

devel-

opment

Supplier Capacity per

module

[Nm³/h]

Pressure

[bar]

Alkaline

Electrolysis

AEL State

of the art

Etogas

Hydrogenics

Nel Hydrogen

400

60

485

0

10

0

Proton

Exchange

Membrane

Electrolysis

PEMEL Devel-

opment

CET H2

H-tec

Hydrogenics

160

3,6

1

14

30

70

High

Temperature

Electrolysis

HTEL Research Sunfire Not specified

7

Electrolyzer Technical Overview

2nd Step Chemical Power Storage increasing Energy density per Volume

Methanol Synthesis CO2 + 3H2 CH3OH + H2O 64 w-% CH3OH

36 w-% H2O

Methan Synthesis CO2 + 4H2 CH4 + 2H2O 30 w-% CH4

70 w-% H2O

4H 2H

4H 4H

The additional electric power of the electrolysis generats water in the methane reaction.

25% Capacity of electrolysis

8

Electrolysis

Electrolysis

Methanol Synthesis Catalyst MegaMax by Clariant

Reactions

MegaMax is a methanol synthesis catalysts, with improved activity and selectivity. The

catalysts are utilized for methanol synthesis from carbon monoxide, carbon dioxide and

hydrogen.

CO + 2H2 ↔ CH3OH ΔHR = - 91 kJ/mol

CO2 + 3H2 ↔ CH3OH + H2O ΔHR = - 49 kJ/mol

Both methanol forming reactions are interconnected with the water gas shift reaction:

CO + H2O ↔ CO2 + H2 ΔHR = - 42 kJ/mol

The above equilibrium reactions are exothermic, so low reaction temperatures and high

reaction pressures favor methanol yield.

9 State of the Art.

2nd Step Chemical Power Storage increasing Energy density per Volume

Methanol Synthesis CO2 + 3H2 CH3OH + H2O 64 w-% CH3OH

36 w-% H2O

Methan Synthesis CO2 + 4H2 CH4 + 2H2O 30 w-% CH4

70 w-% H2O

4H 2H

4H 4H

The additional electric power of the electrolysis generats water in the methane reaction.

25% Capacity of electrolysis

10

Electrolysis

Electrolysis

?

?

Sources of CO2 in Germany

• Flue gases up to 700 to/h, 10 to 15% Concentration

• Ethanol fermentation up to 50 to/h, 95% concentration

• Biogas Purification up to 0,7to/h, 90% concentration

11

CO2 as carbon source is available

Steam Generation Oxy-fuel Overview

• Boiler, Oxyfuel, …

12

Mass Balance Methanol – Fossil Production

13

Power generation

Electrolysis

Steam generation

Methanol synthesis

CH3OH

H2O

H2O Steam

CO2

O2

H2

1.2 t/h

1.1 t/h

0.1 t/h

1.0 t/h

< 0.7 t/h

0.4 t/h

H2O

Energy Balance Methanol – Fossil Production

Echem

Eel

Echem Etherm

Echem 4.3 MWh

Power generation

Electrolysis

Steam generation

Methanol synthesis

14

6,8 MWh

0.3 MWh

<4.0 MWh

Etherm

3.5 MWh 80 °C

O2

Eel

CO2 Flue Gas

Prozessfließbild

PROBENAHME

ANNAHME- Rohstoff

REINIGUNG

SILO VERMAHLUNG VERZUCKERUNG/ VERFLÜSSIGUNG,

HILFSSTOFFE

FERMENTATION DESTILLATION

TANKLAGER

0,3 to

CO2

0,3 to

EtOH

TROCKNUNG

0,3 to

DDGS

1 To Feedstock

Mass Balance Methanol (based of 1,0 t CO2/h)

16

Ethanol production

Electrolysis

Steam generation

Methanol synthesis

C2H5OH 1t/h

CH3OH

H2O

H2O Steam

CO2

O2 H2

1.23 t/h

1.09 t/h 0.14 t/h

1.00 t/h

<0.7 t/h

0.41 t/h

Energy Balance Methanol (based of 1,0 t CO2/h)

Echem

Echem

Eel

Echem

Etherm

CO2

Echem 4.3 MWh

Etherm

Ethanol production

Electrolysis

Steam generation

Methanol synthesis

O2

17

6.7 MWh

0.3 MWh

<4.0 MWh

Etherm

2.4 MWh 80 °C

Input / Output Methanol Plant

Input Output

Carbon dioxide

De-salted Water

1.0

1.16

t/h

t/h

Methanol

Oxygen

Steam

<0.69

1.03

0.39

t/h

t/h

t/h

Power

6.94

MWh Thermal Energy

Loss

Usable

Chemical Energy

0.83

2.70

<3.75

MWh

MWh

MWh

18 Energy Conversion Efficiency 54% without heat utilisation

(with maximum heat utilisation up to. 88%)

Combined Plant Expertise

19

Natural gas CHP

Fluidised bed boiler

and others …

Content

20

• Package 1

Technical Solution

• Package 2

Market Condition

• Package 3

Commercial Conclusion

Overview Methanol Chemistry

21

Fossil Methanol Utilization

22

Fossil Methanol Demand

23

Market Condition MeOH fossil (EU)

0 €

50 €

100 €

150 €

200 €

250 €

300 €

350 €

400 €

450 €

500 €

Jan 0

9

Apr

09

Jul 09

Okt 0

9

Jan 1

0

Apr

10

Jul 10

Okt 1

0

Jan 1

1

Apr

11

Jul 11

Okt 1

1

Jan 1

2

Apr

12

Jul 12

Okt 1

2

Jan 1

3

Apr

13

Jul 13

Okt 1

3

Jan 1

4

Methanol Fossil

Market Price

24

Source: Methanex

Market Opportunities Description of the market opportunities of the E-Methanol

1. High energy content (15.67 MJ/l vs. 8.50 MJ/l H2)

2. M3 ‟Drop-in” transportation fuel in addition to BioEtOH

3. Higher blend with adjustments in the vehicles

4. E-MTBE in competition to Bio ETBE and MTBE

5. Auxiliary material in the Biodiesel production

6. Power generation in small scale CHP´s (BHKW´S)

7. Basic building block for chemical production

25

Energy density Chemical power storage vs e-mobility

1 cubicmeter of liquified power e-Methanol compares with 222 BMW i3!*

1 m³ CH3OH

=

*Speicherkapazität BMW i3 beträgt 21,6 kWh

26

Content

27

• Package 2

Market Condition

- Market

- GHG

- Power Price

- Impacts

GHG Saving RED Methanol Stand Alone - Outlook

Definition of Methanol as BioMethanol in the FQD?

28

In the resolution of the EC parliament (P7_TA-PROV(2013)0357) amend: • Article 2 “liquid renewable fuels non biological origin”

If this is the case than Methanol is produced from feedstock's listed in Part A of Annex IX and should considered two times their energy content.

Clarification after the decision of the amended RED / FQD.

GHG Saving RED Power input

29

Therefore the footprint has to be defined with the certification body, power supplier and legal body.

According Annex V Part C No 11, the GHG intensity of the production power process has to be considered in the calculation of actual value.

To reach the 60% target for Biofuel the power has to be less than 60 gCO2/kWh (standard value in Germany is 527 gCO2/kWh).

NON GO aspect for biofuel!!!!!!

Content

30

• Package 2

Market Condition

- Market

- GHG

- Power Price

- Impacts

Power Price EEX Future 03/13 – 03/14

For the calculation

35 €/MWh seams to be reasonable.

In addition to the EEX price there is normally a margin fee for the trader with 0.50 €/MWh.

31

Power Price EEX Spot 03/13 – 03/14

32

35 €/MWh

Power Price Components including fees ex tax

10,634

5,000

10,000

a

Ct/kWh Detachable load levy §18 AbLaV 0,009

Concession levy §2 (3) KAV 0,110

System Usage Charge levy §19 (2) StNEV 0,187

Offshore levy §17f EnWG 0,250

Margin Trader 0,050

EEG levy § 41 EEG 6,240

CHP levy § 9 (2) KWKG 0,178

Power Price 3,500

Power Grid Costs and reduced Concession levy

(Delivery Costs)

0,110

2014

Kosten Ct/kWh

33

Power Price Components Composition energy intensive industry

34

3.909

2.000

4.000

a

Ct/kWh Detachable load levy §18 AbLaV 0.009

Concession levy §2 (3) KAV 0.110

System Usage Charge levy §19 (2) StNEV 0.025

Offshore levy §17f EnWG 0.026

Margin Trader 0.050

EEG levy § 41 EEG 0,052

CHP levy § 9 (2) KWKG 0,025

Power Price 3,500

Power Grid Costs and reduced Concession

levy (Delivery Costs)

0,110

2014

Costs Ct/kWh

Power Price Components Stand Alone 1/2

In order to keep price, following requirements must be respected:

• 1 point of acceptance (Abnahmestelle) (§ 19 StromNEV, EEG).

• Power from the public grid (§ 19 StromNEV, EEG).

• Full Utilization of 8,000 hours (§ 19 StromNEV) to receive the maximum reduction. Minimum of 7000 hours to keep the minimum reduction.

• Volume of power purchase higher than 10 GWh p.a. (§ 19 StromNEV).

• Individual demand set (§ 2 (3) KAV).

• Industry production under Annex 4 (§ 61, designated EEG 2014)

35

In order to keep price, following requirements must be respected:

• Energy intensity of > 20 % from gross value added (§ 61 designated EEG 2014).

• > 4 % energy costs / turnover and > 100 MWh p.a. (KWK)

• > 4 % energy costs / turnover and > 1 GWh p.a. (StromNEV)

• > 4 % energy costs / turnover and > 1 GWh p.a. (EnWG)

• Power consumption in electrolysis or chemical process (§ 9a StromStG)

• The exemptions of the different price impact have to be agreed with the Grid Operator and Power supplier.

Power Price Components Stand Alone 2/2

Definition of the Plant borderlines. 36

In order that power can be stored in chemicals, then the final product has to be taxed.

If this becomes the case than, there will be a sustainable business case for investments.

Power Price Components power for chemical Energy storage

Clarification of the power price components! 37

Content

38

• Package 1

Technical Solution

• Package 2

Market Condition

• Package 3

Commercial Conclusion

Production Costs Power Price

39

3,50

465,36 0,0

1,0

2,0

3,0

4,0

5,0

6,0

0 200 400 600 800

Po

wer

Pri

ce n

et

[Ct/

kW

h]

Production Costs [€]

Ratio Power Price to Production Costs

productions costs methanol

Conclusion

• Chemical Energy storage is technical possible

• CO2 as reasonable feedstock is available

• Industrial implementation is competitive

• Sustainable Framework is not in place

40

Thank you for your attention!

Christian Schweitzer

Mottelerstrasse 8

04155 Leipzig, Germany

phone +49 341 609 12 0

fax +49 341 609 12 15

email office@bse-engineering.eu

web www.bse-engineering.de

bse Engineering Leipzig GmbH