Norbert Ringer, Stephan Eckle

Clariant BU Catalysts

03.12.2014

Synergies between Catalysis & energy storage

Clariant at a Glance

A globally leading company in specialty chemicals

Employees 2014Employees 2014

Business AreasBusiness AreasNet result 2014 (CHF m)from continuing operationsNet result 2014 (CHF m)from continuing operations

Sales 2014 (CHF m)from continuing operationsSales 2014 (CHF m)from continuing operations

6116 235 4

17 003EBITDA 2014 (CHF m) before exceptionalsEBITDA 2014 (CHF m) before exceptionals

867 110 in 60companies countriescompanies countries

A globally leading company in specialty chemicals

Confidential2

Confidential3

Business Unit Catalysts - former Süd-Chemiebecomes one of the leading global catalyst suppliers

One of the leading global catalyst suppliers with a broad portfolio of products for many chemicals and fuels processes, including those that enable the use of alternative raw materials, such as natural gas, coal and biomass.

SPECIALTY CATALYSTS PRODUCTION, SALES & R&D

SYNGAS PETROCHEMICALS

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2050: 80% electricity from PV + Wind fluctuating charactere

mismatch between supply and demand

Contribution of Renewable Energies to power consumptionSource: German ministry of environment

Power Sector Germany - Goals

2030 with ~ 50% power from renewables: the demand for energy storage is expected to rise

CO2 reuse in chemical industry < 1 % of CO2 emissions

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Utilization of CO2 in Industrial Applications

Biggest applications:• CO2 in Chemical products (Urea, MeOH, ….)• CO2 for Enhanced Oil Recovery (mainly USA) • CO2 in beverages, as extraction medium…..

110 Miot60 Mio t

< 20 Mio t∑ 190 Mio t

CO2 reuse relative to emissions < 1 %

CO2 emissions 2014

CO2 emissions (source: IEA)CO2 concentration in the atmosphere

~34 Gt / year400 ppm

→ potential to reuse CO2 in fuels significantly higher → Power to Gas / Liquids

Options for Energy Storage

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Power to Liquids:CH3OH, DME….LOHC: liquid hydrocarbons

Energy storage 100GWh – 100 TWh > 1 month:

Power to Gas H2 / CH4 or Power to Liquids CH3OH

-0,2 EU-0,2 EU

What is Power to Gas / Liquids about?

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Energy Content

1 EU(EU = EnergyUnit) 0,8 EU

H2~ 0,60 EU(for MeOH, fossil CO2

separation included)

CH4

CH3OH

ElectrolysisH2 + CO2Catalysis

RepoweringCH4

Mobility

Potential of Methanol� Renewable Base-Chemicals

� Renewable Fuels:

Methanol in Gasoline

Methanol to Gasoline

Methanol to DME

Methanol for Biodiesel / Fuel Additives

CH3OH

CO2

Separation / Purification

Separation of greenCO2 less energyand cost intensive

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Power generationFuel for mobilityHeating

CO / H2

CH4

CH3OH

-(CH2)-

Util

izat

ion

Diesel like fuels

Base-ChemicalsMTP,….Fuels DMEMeOH to GasolineMTBE

Established technologies

for SynGas Conversion

based on CLARIANT catalysts

Fossile Resources

Clariant / AL / Lurgi

MegaMethanol

Clariant / AMEC Foster Wheeler

Vesta Process

Catalysis based on SynGas

SynGas

Fischer Tropsch

Steam Reforming

Coal Gasi-fication

Heavy Residue

Gsification

Off Gases

Fossil Resources

Natural Gas

Coal

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CO CO2 / H2

CH4

CH3OH

-(CH2)-

Synthetic Natural Gas

Contribution of CLARIANT BU Catalysts

SynthesisGas

Fischer Tropsch

Established technologies for the conversion of Synthesis Gas based on CLARIANT catalysts

Nickel basedCatalysts

Methanol

Cobalt based Catalysts

Copper/Zincbased

Catalysts

Steam Reforming

Coal Gasi-fication

Heavy Residue

Gsification

Off Gases

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Catalysis for Chemical Energy storage

H2

CH4

CH3OH

Ele

ctro

lysi

s

Flu

ctua

ting

rege

nera

tive

ener

gies

Wind

Sun

Water

CO2

Fossile Resources Current activities to adapt to CO2

as abundant raw material

Util

izat

ion

BiogasFlue gasesetc

CO2

-(CH2)-

Distribution via gas grid

Power generationFuel for mobilityHeating

Base-ChemicalsMTP,….FuelsDMEMeOH to GasolineMTBE

Power Transition: Methane vs. Methanol

• Suitability of a CO2 based Methanol technology under intermittent availability of Hydrogen not demonstrated yet.

• Little experience available yet for start / stop behaviour etc

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?Renewable CH4

> 90% Conversion

Per pass

CO2 conversion per pass ~ 40%

CO2 + 3H2 ⥨ CH3OH + H2O

∆HR = - 49.3 kJ/mol

CO2 + 4H2 ⥨ CH4 + 2 H2O

∆HR = - 164.9 kJ/mol

CO2 based MeOH technology better suited for continuos state of operation?

Source: Lurgi

Demonstration task for renewable Methanol: Suitability for intermittent operation

CO2 based Methanol technology needs recycle of non reacted feedgas because ofreduced thermodynamic driving force → more complex process technology

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Renewable CH4 > 90% Conversion per pass

CO2 conversion per pass ~ 40%

CO2 + 3H2 ⥨ CH3OH + H2O

∆HR = - 49.3 kJ/mol

CO2 + 4H2 ⥨ CH4 + 2 H2O

∆HR = - 164.9 kJ/mol

The dynamic range of a renewable MeOH plant will strongly influence the economics for storage of excess energy

Source: LurgiGöhna, König

Cu

ZnO

MeOH from CO2 - MegaMax® Cu/ZnO/AlOx

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� Overall reaction less exothermic� High catalyst activity also in CO2 mode� High H2O content ⇒ Adaption of Processtechnology� Higher selectivity, less byproducts� Deactivation similar to high CO conditions� Lower productivity compared to CO conditions

Norbert Ringer, Stephan Eckle

Clariant BU Catalysts

03.12.2014

Economic Analysis ofPower to Gas CH4

Power to Liquid CH3OH

Indicative scenario of specific methane production costs

Scenario parameters: 2,2GW Electrolysis / 1.150€/kW / 2,64 Mio.m3/day Methane capacity

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High CAPEX:Electrolysis ~ 70 - 80%

Power to Gas needs appropriate incentives

Indicative scenario of specific methanol production costs

Scenario parameters: 2,2GW Electrolysis / 1.150€/kW / 5.000 mt/day Methanol

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High CAPEX:Electrolysis ~ 70-80%

Similar situation as Power to Gas

Specific methanol/methane production costs

Normalization on energy content €/GJ

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5 ct/kWh

3 ct/kWh

1 ct/kWh

: methanol: methane

Basic Cost Scenario for methane / methanol very similar

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o Catalyst technology

� Catalysts commercially available for both Power to gas and Power to Liquid

(Methanol) applications

� Results show very stable performance

o Demonstration plant Power to Gas / Power to Liquids (Methanol)

� Power to Gas: achieved

� Power to Liquid: still ongoing

o Techno economic comparison

� Major cost driver: H2 – costs, plant utilization, energy price

� Regulatory environment

Summary

Thank you for your attention!

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