Reducing Energy Requirements for the Production of Caustic and EDC 0 - - PowerPoint PPT Presentation

0 21st World Chlor-Alkali Conference – June 16th, 2017

Reducing Energy Requirements for the Production of Caustic and EDC

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Overview of Presentation

» Introduce Chemetry and TechnipFMC » Introduce breakthrough technology for EDC/NaOH production » Summarize technology readiness and path for commercialization » Highlight eShuttle™ process technology benefits » Commercialization timeline and 10-cell demonstration plant » Strategic partner opportunities

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Chemetry at a Glance

» Founded in 2008 in California » Mission: develop safer, greener & lower cost chemical technologies » Experienced team of engineers & scientists » Funded by leading energy investors and US Department of Energy » World class laboratories and piloting facilities » Patents: 40+ allowed and 40+ pending » Strategic partnership established with TechnipFMC in 2016 for commercialization of eShuttle™ technology

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TechnipFMC at a Glance

» World leader in project management, engineering and construction for the energy industry » 49,000+ employees, 45 countries, $20BB+ Revenue » Technip Stone & Webster Process Technology responsible for licensing/engineering – Over 1,000 employees, 7 operating centers » Technology portfolio includes: – Ethylene, Hydrogen Reforming, Phenolics, Styrenics, ABS, Polyesters, Polyamides, etc… – eShuttleTM Process for EDC

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Chlor-Alkali and Direct Chlorination Processes

Overall Reaction 2NaCl + 2H2O + C2H4 à H2 + 2NaOH + C2H4Cl2 ü Supply shortage projected over next decade = need for new capacity ü Market need for lower energy and lower CO2 technologies

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Chemetry eShuttle™ Process

ü Reduces power consumption by 25-50% ü Intrinsically safer process without the production of chlorine ü Same products from same feedstocks

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EChlor-Alkali = 3.0V EeShuttle™ = 2.4V

eShuttle™ Process Simplified

2NaCl + 2H2O + C2H4 à H2 + 2NaOH + C2H4Cl2

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eShuttle™ Thermodynamics

Comparing Chemetry eShuttle™ and Traditional Technologies

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eShuttle™ Synergistic with ODC Technology

Oxygen Reduction versus Hydrogen Evolution

• 0.83

Current Density Potential +0.74 +0.39 +1.36

Chlor-Alkali Etheoretical ~ 2.19V 2Cl- → Cl2 + 2e- CuCl + Cl- → CuCl2 + e- O2 + 2H2O + 4e- → 4OH- H2O + 2e- → H2 + 2OH- eShuttle™ Etheoretical ~ 1.5V Chlor-Alkali ODC Etheoretical ~ 0.97V eShuttle™ ODC Etheoretical ~ 0.35V

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How does eShuttle™ Technology Compare?

Membrane/ DC Technology ShuttleTM Technology

Feedstocks / Products NaCl, H20, C2H4 / EDC, NaOH, H2 Same Intermediate Cl2 Gas Yes No Cell Compartments/Membranes 2/1 3/2 Cathode / Anode Standard / Standard Same / Novel Anode & AEM Cell Thickness 75 mm (typical) 29 mm (grassroots) Cell Voltages Between 3 and 4 V 2.4 V @ 3 kA/m2 Compatible with ODC Yes (makes 32% caustic) Yes (makes 38% caustic) EDC Reaction Temperature Low Slightly Higher EDC Reaction Selectivity Very High Slightly Lower but Improving EDC Product Quality 99.9 Same

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Technology is Commercialization Ready

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Experienced with Electrolyzers & Commercial Height Cells Experienced with Single Element & Filter Press Cells

History of Collaboration with Leading Companies

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eShuttle™ Process Proven at Pilot Scale

ü Fully integrated and automated facility ü 36 months of operation achieving key performance metrics

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Economic Advantages of Process

» CASE SCENARIO – Retrofit Existing Diaphragm Plant » Projected cost savings for plant retrofit: Operating Cost Savings based on ICIS Energy, Steam and Ethylene Pricing by Region

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Ø Front End Engineering Design completed Ø Estimated 12 month timeline from detailed engineering kickoff to initial plant

• peration

Ø $7.5MM ±30% projected total installed cost excluding site work

eShuttle™ Demonstration Plant Design Complete

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Opportunities for eShuttle™ Technology

» Conversion of outdated mercury and diaphragm based plants » EDC capacity expansions where electrical power or direct chlorination reactor capacity is limited » Conversion of membrane based plants where electrical power costs are high » EDC/NaOH expansions where increased chlorine production cannot be justified » Greenfield plants for NaOH and EDC production

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Commercialization Timelines

Commercial Roll Out 01/2017 01/2018 TechnipFMC Agreement Secure Demo Partner Demo Plant Operational

ü Demonstration plant necessary next step in commercialization ü Vetting potential operating partners for demonstration plant ü Strategic partner will receive a significant commercial benefit ü Realize first-mover advantage over competition ü Receive negotiated strategic incentives

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eShuttle™ Addresses >$100B Chemical Markets

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eShuttle™ Process for Propylene Oxide

ü Chemetry process reduces both power and NaOH requirements

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Competitive Advantages of eShuttle™ Process

» Allows for economically attractive retrofits » Ability to expand plant capacity with same electrical infrastructure » Large turn-up/down for energy costs and market demands » Eliminates cost and handling issues associated with Cl2 » Simplifies start-up and shut-down operations » Enables production with a reduced CO2 footprint » Platform technology applicable to multiple halogenated products

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Next Steps

» Demonstration plant with Strategic Partner » Developing the platform through scaling additional chemicals » Scaling cell fabrication » Licensing commercial facility

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Chemetry Contact Information Ryan J. Gilliam, PhD Chief Executive Officer 7697 Highway One Moss Landing, CA 95039 USA tel 1-408-340-4660 emailrgilliam@chemetrycorp.com URL www.chemetrycorp.com

Thank you