1

2

LUT

Our strengths:

− Focused strategy

− Deep co-operation with firms

in Finland and abroad

− Internal integration between

schools at LUT → holistic

view in research

• Strategy

• Business and profitability

• Technology

Transport

15,9%

E-mobility Existing infra

Synthetic e-fuelsSynthesis/

Bioprocess

Electrolysis

CO2

capture

Paper & pulp

Industry 6,5%

Cement

industry 3%

Oil

refinery

H2

Ammonia, other

chemical products

Chemical

industry

Feed/food

protein

Agriculture

11,8%

CO2

Air

Water

N2

Power and heat

industry 30,4% + 3,2%

Electricity

production

Grid &

operation

E2

E2

Manufacturing

industry

Finance Government

Storage

H2 infra Iron &Steel

Industry

(7,2%)N2

capture

Buildings5,5% (17,5%)

2,6%

Energy Transition

Electrification and Hydrogen Economy

Transport

15,9%

E-mobility Existing infra

Synthetic e-fuelsSynthesis/

Bioprocess

Electrolysis

CO2

capture

Paper & pulp

Industry 6,5%

Cement

industry 3%

Oil

refinery

H2

Ammonia, other

chemical products

Chemical

industry

Feed/food

protein

Agriculture

11,8%

CO2

Air

Water

N2

Power and heat

industry 30,4% + 3,2%

Electricity

production

Grid &

operation

E2

E2

Manufacturing

industry

Finance Government

Storage

H2 infra Iron &Steel

Industry

(7,2%)N2

capture

Buildings5,5% (17,5%)

2,6%

Examples of PX2 research at LUT

• Neo Carbon Energy

• Spinoffs: Solar Food, Soletair Power

• Global LUT energy transition model

• P2X Nebraska (NPPD, Wärtsilä, LUT)

• P2X Göteborg (St1)

• P2XEnable & X-Ahead

• Path to 100% Renewable seminars (Wärtsilä)

• P2X to institutional investors (SEB, Danske Bank, OP, Carnagie)

• P2X Joutseno – Industrial pilot (St1, Kemira, Wärtsilä, Finnsementti, Finnair, Shell Global Solutions International, Neste, Jotex Engineering, Terästorni, Refinec, Premekon)

• ADCD Vaasa (Under work)

• Hiilineutraali Suomi –report (Carbon Neutral Finland, Wärtsilä, St1)

• Sector Coupling Finland (Wärtsilä)

• Arctic Energy Forerunners Coalition (St1, Wärtsilä, SSAB, etc)

5

Fuels from industrial

emissionsProject P2X Joutseno –

Feasibility study and development of e-fuels pilot plant in

industrial scale

6Petteri Laaksonen,

Feasibility study

Project P2X Joutseno• Industrial scale pilot plant in Joutseno,

Lappeenranta• Investment size

• 50-80 MEUR (Methanol – Gasoline (MTG))

• 180 MEUR (MTG, double capacity, electrolyser)

• Raw materials• Hydrogen (H2) 5 000 tn from Kemira Chemicals

• Carbon dioxide (CO2) 36 667 tn from Finnsementti

• End products• Methanol 26 000 tn (appr. 1 000 lorry loads)

• Can be further processed to

• Gasoline (12 000 tn)

• Kerosene (aviation)

• Diesel (to be studied)

• Partners• St1, Kemira, Wärtsilä, Finnsementti, Finnair, Shell Global Solutions

International, Neste, Jotex Engineering, Terästorni, Refinec, Premekon

• City of Lappeenranta

• IPR’s• Owned by LUT (ERDF funded project)

7Petteri Laaksonen

CO2

H2

Methanol

Gasoline

Kerosene

Diesel

StorageSynthesis

Transport

(airplanes, ships,

cars, lorries)Excess

Process H2

CO2

capture

Finnsementti

Project P2X Joutseno

Electricity from Grid

CO2

Neutral

Fuels

Kemira

St1, Wärtsilä,

Shell, Neste

H2O

Additional

water

electrolysis

O2

3.

© LUT University

2.

1.

4.

1. Water electrolysis

2. Purification of the process hydrogen from Kemira

3. CO2 capture and purification at Finnsementti

4. Methanol synthesis to end products

Petteri Laaksonen,

Finnair

Equipment

manufacturing

Alternatives investments and costs

9

Budgetary offers

LUT analysis using

literature and models,

• Investment costs

• Electricity, steam and heat use

• Auxiliary inputs (catalysts, chemicals)

• Operational expenses

• Construction

• Electrical

• Civil

Diagram: Veikko Kortela’s model, Wärtsilä

adapted by Hannu Karjunen, LUT

Profitability modelling

10

Cost calculation

Budgetary offers

(Wärtsilä, LUT, St1)

Cost calculation –

Aspen+ modelling

(LUT, St1)

Integration and

verification of cost

calculations

Profitability –

Discounted cashflow

(LUT, Wärtsilä, St1)

Market survey

(LUT)

CAPEX

OPEX

Market demand

development

Technology study

Profitability − Total investment ~80 M€ (MtG) or ~180 M€ (MtG with electrolysis)

− Discounted Cash Flow (20 years, budgetary offers and Aspen modelling)

− Alternatives

• Methanol to Gasoline (Technology available from many suppliers)

• Methanol to Gasoline, Kerosene, Diesel (Technology TRL8 requires commercialization)

− Sensitivity analysis under work

Market study

Regulation

Life cycle assessment on methanol, continued to Gasoline

Status

11

Technology & modelling

12

Commercially

available?

Commercial offer

analyzed?

Modelled in

ASPEN

Modelled using

other toolsIncompleted tasks

CO2 Capture x x x Heat integration

CO2 Compression x x xDetailled design

Heat integration

CO2 Transport x x x Outsourcing?

H2 & CO2

Purificationx

Selection of source

and technology

H2 & CO2 Storages x xDynamic study with

updated cost values

MeOH Synthesis x x x Heat integration

MTG Synthesis x x x Heat integration

MTO-MOGD x

Petteri Laaksonen, Research Director

LUT School of Energy Systems

petteri.Laaksonen@lut.fi

+358 40 508 8498