[PDF] - CO 2 Value Day 16 October 2018, Port of Antwerp A look in the PDF Document

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CO2 Value Day

16 October 2018, Port of Antwerp

A look in the mirror: Achievements so far

CO2 Value Day 16 October 2018, Port of Antwerp

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Stefanie Kesting

President, CO2 Value Europe

“Competition Law prohibits concerted practices between competitors which may have as their object or their effect the prevention, restriction or distortion of competition. We are requested to strictly follow the meeting’s agenda and abstain from exchanging, discussing or disclosing competitively sensitive information. Of course, this proscription remains valid outside of the scope of this

meeting. For your information, intentional or negligent violations of

competition Law provisions can lead to substantial fines for each company or organisation that commits or is part of such a violation.”

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Initial statement

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Fragmentation of CCU stakeholders

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Achievements 30 November 2017 à 16 October 2018

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Zanna McFerson

Board Member, CO2 Value Europe

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VISIBILITY (for CCU and for the Association)

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LEGITIMACY (speaking for the CCU community)

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Supporting LCA standardization

Membership charter

” We will only promote CCU solutions that effectively contribute to a net reduction of global CO2 emissions based on accepted LCA standards "

LCA/TEA guidelines

Published 8 October 2018

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Carl Berninhausen

Board Member, CO2 Value Europe

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ADVOCACY

Europe‘s Decarbonisation Vision & Reality

Source: European Comission

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ADVOCACY

e-Fuel: A Necessity for Transport to Tackle Climate Change

Aviation

200 400 600 800 100 00 120 00 140 00 160 00 180 00 2020 2030 2040 2050

Passenger Vehicles Buses Rail (passenger) Rail (freight) Trucks Ships (freight)

200 400 600 800 100 00 120 00 140 00 160 00 180 00 2020 2030 2040 2050

Fossil Fuels Electricity H2 Methane eFuels Renewable Liquid Fuels

ca. 10,300 PJ

Calculation based on dena/LBST „E-Fuels –The potential of electricity based fuels for low emission transport in the EU”, 2017

ca. 10,300 PJ

To achieve CO2 reduction targets, fossil fuels need to be phased out Hard-to-electrify sector will make up 50 % or 5,000 PJ in 2050 >300 GW of e-Fuels needed in 2050 (>10 GW/a from now) Anticipated primary-energy consumption of the EU transport sector

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ADVOCACY

Hydrogen in European Policies: Overview by

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ADVOCACY

e-Fuels, e-Gas and green hydrogen are included in 2 (s) Refunobio Source of CO2 (ambient, industrial) is left open It is permitted to use Refunobio as intermediate product in the production of conventional fuels Electricity imported from the grid may be counted as fully renewable if it can prove the origin from renewable sources

What did we achieve in the RED2 Trialogue

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ADVOCACY

We were 53 relevant players (now 60+) acting together Our position was discussed and refined in WG2 and Board diligently Our position was supported or accepted by all CVE members Our charter and mission has given us credibility in the EU arena We are recognized as the “Good Guys” and get a lot of support We were closely aligned with partner organizations (e.g. Hydrogen EU) Work Group 2 has done a full time job with only in kind contributions

How could we achieve this?

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Next steps

Role for e-Fuels in EU transport 21

Monitor and shape delegated acts on RED II
National implementation of RED II
Trialogue on CO2 Emissions and Clean Vehicle Directive

Advocacy for chemicals and minerals

Role for e-Fuels in EU transport 22

à Priorities and specific actions to be defined in subgroups this afternoon

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Walter Eevers

Vice-President, CO2 Value Europe

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Collective knowledge of CCU technologies

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Growing membership

Nov. 2017

43 members

Oct. 2018

60+ members

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Grant applications to get funding from the EC

1 CSA application on implementation of SET Plan – CCUS part 3 RIA applications for external communication of new CCU technologies

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The way forward: strategy and perspectives

CO2 Value Day 16 October 2018, Port of Antwerp

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Stefanie Kesting

President, CO2 Value Europe

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Climate mitigation

Net reduction of global CO2 emissions from the process industry and from the transportation sectors (road, air, maritime)

Renewable feedstock

Replacing fossil carbon by utilization of CO2 as a feedstock for the chemicals, materials and fuels industries

Our vision: make CCU a key pillar of the transition to a low carbon economy

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Our mission: create a scalable carbon recycling industry

Our

fficial

mission statement Promote the development and market deployment of sustainable industrial solutions that convert CO2 into valuable products, in order to contribute to the net reduction

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global CO2 emissions and to the diversification of the feedstock base. We want to create a CCU industry sector with scalable business models for real impact of carbon recycling.

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The only European association dedicated to CO2 Utilisation and bringing together partners covering the complete value chain

Our scope: stakeholders from the complete CCU value chain across industrial sectors

Multinational Companies, SMEs, Regional Clusters, Research Institutions, Universities

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CO2 conversion technologies

Our strategy: catalysing the creation of a CCU industry by focusing on CO2 conversion expertise

Upstream Conversion Downstream

Refining, distribution infrastructure & markets for CCU products Captured CO2 Renewable electricity Raw materials & waste

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Our value proposition: address key issues faced by CCU value chains, with focus on conversion

Upstream Conversion Downstream

Favourable regulatory framework for products Refining, distribution infrastructure & markets for CCU products CO2 transformation technologies Product acceptance by existing infrastructure & players Favourable regulatory access to inputs Access to low-cost captured CO2 and renewable electricity Identification & development of most promising technologies Feasibility, cost reduction & upscaling Captured CO2 Renewable electricity Raw materials & waste

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Appropriate funding Demonstration of environmental benefits (via LCA) & other benefits of CCU

1. Collective

intelligence

2. Upscaling

& demo- projects Advocacy

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We have great ambitions

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Continue to professionalize our Secretariat
Develop partnerships
Raise additional funds
Leverage our members
Recruit more members

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How will we reach them ? Next steps

CO2 conversion technologies

Recruitment: we need more members to increase our conversion expertise and leverage our market access

Upstream Conversion Downstream

Refining, distribution infrastructure & markets for CCU products Captured CO2 Renewable electricity Raw materials & waste

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37 General Assembly 19 September 2017 38

Thanks to our sponsors

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Flagship CCU demo project

Power to methanol in the Port of Antwerp

CO2 Value Day 16 October 2018

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Power-to-methanol demonstrator

Michel Leyseele, Head of Sustainable Transition Daniel Marenne, Key Account Manager Industry Europe

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Antwerp Port Authority

Largest integrated European cluster

for chemicals and petrochemicals

2nd largest European Seaport –

Gateway to Europe!

Surface: 130 km²
Dock length: 150 km
Roads: 409 km
Railtracks: 1060 km
Pipelines: 1000 km
Covered warehouses: 556 ha
900+ private companies
145000 direct & indirect jobs

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Electrolysis Methanol Synthesis H2 Feedstock for chemistry Fuel for transportation Industrial process CO2 capture CO2 MW CH3OH

CO2 Capture Power to Methanol

Power Grid

FLEX

Power-to-hydrogen

Fatal Hydrogen Hydrogen sale

Methanol production value chain

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Demonstrate business case of CCU

methanol production, based on maximum flexibility

Prepare large-scale investment

(if business case is demonstrated)

Power-to-methanol demonstrator - Objectives

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Power-to-methanol demonstrator - Concept

Uncertainty factors Flexibility levers

Market price of methanol
Price of electricity
Value of flexibility
Regulatory framework (RED II)
Price premium for green

methanol

Fatal H2 sourcing vs. electrolysis
Produce methanol vs. get flex

allowance (for not using renewable electricity)

Produce methanol vs. H2
Sell methanol for fuel or chemical

applications Produce a multi-purpose hydrogen carrier, with maximum flexibility (NOT base-load production from continuous water electrolysis)

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Value chain setup

Type Name Invest- ment Know-how Take away

1. Energy utility

(+ project leader) Engie Yes

Leadership of complex

projects

Energy & H2 markets
Grid balancing
Innovative energy

services

2. Hosting

Antwerp Port Authority Yes

Cluster management
Landlord
Visibility as CCU

platform

3. Provider of CO2

To be confirmed No

CO2 specs
CO2 market

Development

4. Provider of

fatal H2 To be confirmed tbd

H2 specs
Value chain H2
5. Methanol logistics

Oiltanking tbd

Methanol handling
Green/grey logistics

synergies

6. Methanol off-taker To be

confirmed tbd

Methanol markets
Green sourcing

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Value chain setup

Type Name Invest- ment Know-how Take away

7. Technology

provider – CO2 capture/treatment Not yet identified No

Technology design

and operation

Demonstration of tech

performance

8. Technology

provider - electrolysis Not yet identified No

Technology design

and operation

Demonstration of tech

performance

9. Technology

provider – methanol synthesis Not yet identified No

Technology design

and operation

Demonstration of tech

performance

10. Public investor

PMV-VMH Yes

Finance
Preparation for large

scale investment

11. RTO

VITO No

Energy markets
Subsidy schemes
Advancement of

knowledge

12. RTO
Univ. Antwerp

No

Reactor monitoring
Advancement of

knowledge

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Power-to-methanol demonstrator - Partnership

Energy utility CO2 provider H2 provider Methanol logistics Methanol

fftaker

Technology electrolysis Technology synthesis Public investor RTO energy RTO reactor Technology CO2 capture Hosting

CAPEX: 10 – 14 M€

Big enough to be relevant, small enough to be feasible in terms of

CAPEX at risk: 4-10k tons/year

Main investment: synthesis

Main operational result drivers

OPEX: power - flexibility
Revenues: “green” premium ca. 200€/ton methanol

Timing

Partnership agreement: Q4 2018
Subsidies and FID: S1 2019
Engineering and permitting: S2 2019
Start of production: 2021

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Key Figures and Timing

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How can CVE support pilot and demonstration projects ?

Damien Dallemagne Secretary General, CO2 Value Europe

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Power-to-methanol demonstrator - Partnership

Energy utility CO2 provider H2 provider Methanol logistics Methanol

fftaker

Technology electrolysis Technology synthesis Public investor RTO energy RTO reactor Technology CO2 capture Hosting

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For your pilot/demo project, CVE could help…

Stimulate emergence of project idea
Increase visibility
Find missing partners
Find complementary sources of

funding (private, public)

Bring credibility/legitimacy towards

policy makers

Advocate for regulatory framework

and market incentives

Demonstrate environmental benefits
Act as neutral party

Concrete actions for 2019

Interactive session with all members

CO2 Value Day 16 October 2018, Port of Antwerp

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Jean-Yves Tilquin

Vice-President, CO2 Value Europe

1. Validate & fine-tune the 3 proposed strategic topics
2. Define priority actions (for each of the 3 topics)
3. Identify key resources to implement priority actions

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Objectives of the interactive session

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Our value proposition: address key issues faced by CCU value chains, with focus on conversion

Upstream Conversion Downstream

Favourable regulatory framework for products Refining, distribution infrastructure & markets for CCU products CO2 transformation technologies Product acceptance by existing infrastructure & players Favourable regulatory access to inputs Access to low-cost captured CO2 and renewable electricity Identification & development of most promising technologies Feasibility, cost reduction & upscaling Captured CO2 Renewable electricity Raw materials & waste

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Appropriate funding Demonstration of environmental benefits (via LCA) & other benefits of CCU

1. Collective

intelligence

2. Upscaling

& demo- projects Advocacy

1. Collective intelligence of CO2 conversion technologies
Mutualize info on technologies (WHAT) and on stakeholders (WHO)
Make this information available to our members
2. Scale-up and demo projects
Help technology developers in scaling-up
Connect partners to build flagship pilot/demo projects
3. Advocacy
Collective actions to get favourable regulatory framework and market

incentives

Development of industry standards and rules across the CCU value chain

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3 strategic topics

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Tables organised by conversion routes (chemicals, fuels, materials)
For each table, 2 key roles have been assigned:
1 facilitator (also writes on poster)
1 secretary (taking notes in laptop)
3 sessions of 25 minutes (for 3 strategic topics)
Strict time-keeping by Damien:
Read carefully the description of the topic and “proposed roles for CO2 value

Europe” (= scope for the exercise)

Personal response to questions (5 minutes, in silence)
Gathering collective responses, for each question
List names of interested participants/leaders (for each proposed action)
Topics requiring further discussion are registered but not debated

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