22.10.2018 VTT – beyond the obvious 1

New business opportunities based on biogenic carbon dioxide utilizationJanne Kärki

14th International Conference on Greenhouse Gas Control Technologies, GHGT-1421st - 25th October 2018, Melbourne, Australia

From IPCC Special Report 15 (Published 8.10.2018)

“CO2 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)

Container scale, easy to transport, easy to connect to gas streams

H2 SOURCES

CHEMICALS

FUELS

SYNTHESIS REACTORS @VTT

FISCHER-TROPSCH &

CO2 METHANATION

CO2 SOURCES

Kestävää kasvua ja työtä-ohjelma

Outline1. Chemical-looping combustion for a

biomass fueled CHP plant enabling negative emissions

2. Polyols from (biogenic) CO2 and renewable power

3. Paraffinic wax production from CO2 via Fischer-Tropsch (FT) synthesis

4. Demonstration of P2X process technical feasibility

Chemical-looping combustion for a biomass fueled CHP plantenabling negative emissions

22.10.2018 VTT – beyond the obvious 5

Tomi Thomasson, VTT

Finding the business case in bio-CLC The need for negative emissions

vs. the lack of incentives

22.10.2018 VTT – beyond the obvious 6

Air Fuel

Chemical-looping combustion of biomass(bio-CLC) enables:

• Low operational capture costs(15-25 €/tonCO2)*

• Relatively low capital costs• High total efficiency

Potential for integration– would combining CLC with CCU increase the feasibility?

* Anders Lyngfelt, Bo Leckner (2015)

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CO2

CHP

Venting

Processing

Purification

Buffer storage

Oxy-polishing

Cryogenicoxygen plant

Formic acid(or methanol,

methane, otherhydrocarbons)

O2 H2

Electrolysis

FCR

Storage

1) CHP plant for base demand2) Heat-only boilers (HOB) for peak demand3) CCS added to the system4) CCU added to the system

Heat and powerfrom CHP

Oxygen fromelectrolysis

9 MW 3 MW 18 €/MW

1.4 tonO2/h 0.2 tonH2/h

100 €/tonO2

1.9 tonO2/h

0.7 €/kg0.9 ton/h

1 MW 8 MW

10 €/tonCO2

0-50 €/tonCO20 €/tonCO2

30 tonCO2/hmax. 30 tonCO2/h

max. 3 tonCO2/h

0-88 MW

0-37 MW

0-88 MW

0-50 €/tonCO2

7 €/tonCO2

HOB

CCS and CCU complement each other• CHP generates heat and power flexibly• CCU provides oxygen and load for CHP

Integration of CCU is beneficial…• Decreases fossil CO2 emissions on

system level• Notable income from frequency

containment reserve (FCR)

… but overall, still not economically sensible• Investment cost should decrease by 20%• Feasibility relies on subsidized negative

emissions

Key findings of the bio-CLC study

-4

-2

0

2

4No subsidy Subsidy

Air-fired CLC CLC + formic acid

CLC + methanol

CLC + methane

Net profit(M€/a)

Polyols from (biogenic) CO2and renewable power

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Kristian Melin, VTT

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 CO2-to-olefins technology, polycarbonates with

100 % carbon originating from CO2 can be produced and on commercial scale millions of tons of CO2 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

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Process Concept and TEA assumptions

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Hydrogen production by

electrolysis

Combined reforming and

rWGS

Olefin production

by FT

Olefin oxidation by peroxides

Polymerization of epoxides

with CO2

Electricity

Water

H2

O2

CO2 from flue gases

Recycle of methane, C5+ and CO2

Peroxide from the market or produced on-site

CO2 from flue gases

Polycarbonatepolyol

Inputs Price Outputs Price Other parameters

Power (produced at pulp mill)

34 eur/MWh Polycarbonate polyols 2500 eur/t Plant capacity 50 MW power input

Hydrogen peroxide 1000 eur/t By-product gas from FT-synthesis 45 eur/MWh Annual CO2 use 60 kt

Water for electrolysis 0.4 eur /m3 Steam 8 eur/MWh Annual polycarbonate polyol production 30 kt

CO2 50 eur/t By-product heat 0 eur/MWh Annual plant operation 8400 h

Oxygen 41 eur/t Annuity factor for 20 years investment time and 10 % rate on invested capital 0.117

TRL 9 TRL 5-6 TRL 3-4 TRL 3 TRL 3

Results

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• 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 needstill experimental verification

Paraffinic wax production from CO2 via Fischer-Tropsch synthesis

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Marjut Suomalainen, VTT

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 CO2 emitting biobased industrial source

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• By-products• Pure oxygen 11 500 t/a (50/15 €/t)• FT-liquid (light paraffinic oil) 1100 t/a (0.6 €/l)• District heat 36 700 MWh/a (70/55 €/MWh)

• Electricity consumption 11 MWe (39/45 €/MWh)• CO2 consumption 13 000 t/a

Electrolyser Syngas & FT conversion

FT- liquid(C5-C18)

CO2absorption

Water

CO2

Electricity

H2

O2

ParaffinicFT-wax(C18+)

HeatRaw material to

for examplecandles

Replacingheating gas oil

O2

CO2 containinggas

Chemical production from CO2 via Fischer-Tropsch synthesis

• Main product paraffinic wax 1500 t/a, utilissedin a local candle factory• CO2 rich gaseous emission stream derivedfrom biobased process• Electricity from the markets• Optimistic and realistic price assumptions

Production cost of paraffinic wax

0,0

0,5

1,0

1,5

2,0

2,5

3,0

15 20 25 30 35 40 45

Prod

uctio

n co

st o

f par

affin

ic w

ax, €

/kg

Electricity price (inc. taxes and other payments), €/MWh

Production cost of paraffinic wax

Realistic base caseOptimistic base caseRealistic util. 65%Optimistic util. 65%

Key findings:

• Production cost (1.4 €/kg) in optimistic scenario exceededthe market price of fossil-basedcompetitor (> 1.1 €/kg)

• Electricity and CAPEX are themost significant cost factors

• Integrating the concept with industry both producing CO2and utilising by-products oxygen and heat is crucial for the economic viability

Demonstration of P2X process technical feasibility

Power-to-X (P2X) route for liquid and solid hydro-carbons production.

Utilizing biogenic CO2 from bioethanol production which is currently vented out from the fermentation process.

Location: St1 biorefinery@ Jokioinen, Finland

Bio-CCU demonstration

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/daySolid HC: 6-9 litres/day

Opening event 9th of Oct

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Acknowledgements and further infoEuropean Regional Development Fund (ERDF) for funding Bio-CO2 and Bioeconomy+ projects

janne.karki@vtt.fiwww.vtt.fi/sites/BioCO2/enwww.vtt.fi/sites/bioeconomyplus

Negative CO2 research project