Dilute Source CO 2 Capture: Management of Atmospheric Coal-Produced - PowerPoint PPT Presentation

Dilute Source CO 2 Capture: Management of Atmospheric Coal-Produced Legacy Emissions FE0026861

Carbon Engineering Management Team Investors / Partners • Bill Gates • Murray Edwards David Keith Adrian Corless Exec Chair / Founder CEO Team • 26 employees Susan Koch Jean-François Béland David St. Angelo • Target ~30 by end-2017 CFO CTO VP Corporate Strategy Intellectual Property Recognition Headquarters 8 patent families: $25 M • P-Ca process Virgin Earth • Air Contactor Challenge • Low-CI fuel manufacture Finalist

Project Overview Funding, Participants, and Performance Dates Total Project Budget: $1.875 M USD Federal Cost Share: 80% ($1.5 M USD) Non-Federal Cost Share: 20% ($375 k USD) Project Participants: Carbon Engineering Project Performance Periods: BP1: 2016-09-19 – 2017-09-18 BP2: 2017-09-19 – 2018-09-18 3

Project Overview Overall Project Objectives Cultivate a dilute source CO 2 DAC technology that can be applied to re-capture legacy coal-based emissions directly from the atmosphere Develop a better understanding of DAC performance through lab and pilot study, and codify the results in TEA format 4

DAC: Direct Air Capture of CO 2 Inputs: Air, water, energy. Strategic and Transformative Technology: • Negative Emission Technology • Can locate anywhere • Manages emissions from any source • Highly scale-able DAC Compared to CCS : • Higher thermodynamic barrier Output: CO 2 • Larger air volume to be processed storage, industrial use, or fuel production

CE’s DAC Technology 6

Project Structure Project Management Task 1 Materially advance state of the Move technology towards art of dilute source CO 2 capture: commercialization: Tasks 2 and 3 Tasks 4 and 5 Pilot Operation, Sensitivity Analysis, Engineering Input for Scale-up and and Component Optimization Technology Cost Projections Baseline Techno-Economic Testing, Performance Analysis, and Assessment and Applicability to Coal Technology Optimization Stream 7

Budget Period 1 Project Objectives – Tasks 2 & 4 Overall Operation and Engineering Objectives Pilot testing and lab study of the DAC unit operations. Investigations into optimization, sensitivity and enhancement Develop key engineering inputs to scale technology for commercial readiness 8

Budget Period 1 Technical Activities: Task 2 2: DAC Applied Research and Development Pilot Operations: 2.1: Sensitivity Analysis and Testing 2.3: System and Component Stress Testing DAC Development and Enhancement: 2.2: Technology Research and Development 2.4: Sub-system Optimization What programs leveraging CE’s DAC Pilot Research Platform are available to deliver the above learnings? 9

Task 2.0 Success Criteria Utilized benchtop air contactor to validate research pilot wetted surface area within an uncertainty 1 range of +/-0.2 (unitless)- Completed 2 Utilized benchtop pellet reactor to validate that filtration improves retention - Completed 3 Achieved mass transfer coefficient in Air Contactor (K L ) of 1.0 or higher- Completed Reduced solvent losses in air contactor below NIOSH REL Limits (2 mg/m 3 )- In progress 4 5 Increased retention in pilot pellet reactor system of at least 20% above baseline- Completed 6 Achieved 98% conversion of CaO produced by the calciner to Ca(OH) 2 .- Completed 7 Achieve Calciner feed rate target- Completed 8 Achieve Calciner fluidizing gas velocity target- Completed 10

Technical Activities: Budget Period 1 (Task 4) 4: Engineering Input for Scale-up and Technology Cost Projections Developing Key Engineering Inputs to Scale Technology 4.1: Data Synthesis, Process Development and Modelling 4.2: Preliminary TAP Commercial Readiness of DAC 4.3: Major equipment specification and vendor engagement 11

Task 4.0 Success Criteria Engage vendors for key unit processes- In Progress Preliminary TAP complete- Completed 12

Project Schedule: BP1 (2016 Sep 19 – 2017 Sep 18) Budget Period 1 2016/09/19 - 2017/09/30 Project Schedule Q1 Q2 Q3 Q4 Task 1.0 - Project Management 1.1 - Management 1.2 - Reports ◊ 1a - DMP Completed ◊ 1b - Annual Report Task 2.0 - DAC R&D, Ops, Testing, Optimization 2.1 - Sensitivity Analysis & Testing 2.2 - DAC Technology R&D 2.3 - Stress Testing 2.4 - Sub-System Optimization ◊ 2a - Synthesis Data Log Complete ◊ 2b - R&D Results ready for Pilot Plant Input Task 4.0 - Engineering for Scale-Up 4.1 - Key Engineering Inputs 4.2 - Preliminary TAP 4.3 - Vendor Engagement ◊ 4a - Updated PFDs and Vendor RFQs 13

BP2 Project Objectives – Tasks 3 & 5 Overall Pilot Testing and Scale-up Engineering Objectives Develop a better understanding of DAC Performance Perform a technoeconomic analysis for commercial DAC plant 14

Technical Activities: Budget Period 2 (Task 3) 3: DAC Applied Research and Development Pilot Operations and Testing: 3.2: Long term effects DAC Development and Enhancement: 3.1: Application and Implications 3.3: Alternative Technologies Investigation Technology Optimization: 3.4: Data Analysis and Ongoing Development 3.5: Synthesis of Results and Recommendations 15

Technical Activities: Budget Period 2 (Task 5) 5: Engineering Input for Scale-up and Cost Projections Engineering Inputs to Scale: 5.2: Design Basis for Commercial Scale-up Techno-Economic Assessment: 5.3: DAC Applicability to Coal – Technology Assessment Commercial Readiness of DAC: 5.1: Core engineering: 1 st order commercial plant design 5.4: Gap and Deficiency Identification, Path Forward 16

Project Schedule: BP2 (2017 Sep 19 – 2018 Sep 18) Budget Period 2 2017/10/07 - 2018/09/18 Project Schedule Q1 Q2 Q3 Q4 Task 1.0 - Project Management 1.1 - Management 1.2 - Reports ◊ 1c - Final Report Task 3.0 - Applied R&D, Testing, Analysis, Optimization 3.1 - Enhancement Applications and Implications 3.2 - Long Term Effects 3.3 - Solids Research 3.4 - Data Analysis and Ongoing Development 3.5 - Data Preparation for Final Report ◊ 3a - Identify Feasible Alternatives Path Forward ◊ 3b - Complete Long Term Effects Research Task 5.0 - Cost Projections and Applicability to Coal Stream 5.1 - Technology Cost Projections 5.2 - Commercial Scale-Up Design Basis 5.3 - DAC Applicability to Coal - Technology Assessment 5.4 - Gap and Deficiency Identification ◊ 5a - Major Equipment Specs and Cost Model ◊ 5b - Engineering Assessment, Full Plant Cost Model 17

BP1 Budget Budget Period 1 Baseline Reporting Quarter Q1 Q2 Q3 Q4 Note: All values in US$ Cumulative Cumulative Cumulative Cumulative Q1 Q2 Q3 Q4 Total Total Total Total Baseline Cost Plan Federal Share $ 344,528 $ 344,528 $ 174,256 $ 518,783 $ 162,235 $ 681,018 $ 143,956 $ 824,974 Non-Federal Share $ 86,132 $ 86,132 $ 43,564 $ 129,696 $ 40,559 $ 170,255 $ 35,989 $ 206,243 Total Planned $ 430,660 $ 430,660 $ 217,820 $ 648,479 $ 202,793 $ 851,273 $ 179,945 $ 1,031,217 Actual/Projected Costs Federal Share $ 338,725 $ 338,725 $ 234,609 $ 573,334 $ 179,974 $ 753,308 $ 71,666 $ 824,974 Non-Federal Share $ 84,681 $ 84,681 $ 58,652 $ 143,333 $ 44,993 $ 188,326 $ 99,385 $ 287,711 Total Incurred Costs $ 423,407 $ 423,407 $ 293,261 $ 716,668 $ 224,967 $ 941,635 $ 171,051 $ 1,112,686 Variance Federal Share -$ 5,803 -$ 5,803 $ 60,353 $ 54,551 $ 17,739 $ 72,290 -$ 72,290 $ 0 Non-Federal Share -$ 1,451 -$ 1,451 $ 15,088 $ 13,637 $ 4,434 $ 18,072 $ 63,396 $ 81,468 Total Variance -$ 7,254 -$ 7,254 $ 75,442 $ 68,188 $ 22,174 $ 90,362 -$ 8,894 $ 81,468 % of BP Budget -1% -1% 7.3% 6.6% 2.2% 8.8% -0.9% 7.9% Actuals to end of Q3 Projected to end of BP1 18

BP2 Budget Baseline Reporting Budget Period 2 Quarter Q1 Q2 Q3 Q4 Note: All Values in US$ Cumulative Cumulative Cumulative Cumulative Q5 Q6 Q7 Q8 Total Total Total Total Baseline Cost Plan Federal Share $226,098 $1,051,072 $224,240 $1,275,312 $128,961 $1,404,273 $95,727 $1,500,000 Non-Federal Share $56,524 $262,768 $56,060 $318,828 $32,240 $351,068 $23,932 $375,000 Total Planned $282,622 $1,313,840 $280,300 $1,594,140 $161,201 $1,755,341 $119,659 $1,875,000 19

CE Commercialization Update Air to Fuels Air + H 2 O + Renewables DAC CO 2 Gasoline Globally scalable Jet A supply of liquid fuels Diesel Cars Fuel Synthesis Aircraft Heavy Freight e - Solar, Wind, Hydro, Drop-in compatible Enables progressive de-carbonization of transport by gradual fuel switching.

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