final presentation liquid wind · liquid wind –final presentation 25 €/mwh. pros and cons for...
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Welcometo:FinalPresentation
LiquidWindFebruary23,2017
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
Projektparter
BoStrandberg WallenstamABClaesFredriksson FreeThem GenerationABAnna-KarinJannasch, RISEFranzEvegren RISEKarinAndersson ChalmersHelenaWinsell GöteborgEnergiABFredrikBottenmark UddevallaEnergiABStefanKrusell,FredFarchmin SiemensABBenediktStefansson CRIStefanSvedhem InnovatumAB
TheChallenge
• Morewind andrenewableenergyongrid• Pricereduction andfluctuationincreasing• Largescalestorage needsbedeveloped
• ReduceCO2 levelsthatkeeponrising
• Cansurplus,storage&CO2reductionbelinked
LiquidWind- InitialMeeting 11
TheObjective
• Figureout:– IsitfeasibletoproduceRenewableMethanol(ReMe)onsmall/mediumscaleinwesternSweden
– Whereshouldplantbelocated,considering• RawmaterialandPowersupply• AvailableinfrastructureandTransportation• Willplantsizedeterminelocation?
– Whatisthemosteffective waytobuildtheplant• Fromcost,time,efficiencyandexpansionpointofview
– Calculatedproductioncostofmethanol• Whichfactorshavebiggestimpactonmethanolprice
LiquidWind- InitialMeeting 12
Whatareweattemptingtosolve
• Storingwind andotherrenewable energy• ReducingCO2 drastically• ProducingrenewableCO2 neutralfuel• Creatingjobsandresearchopportunities• Takingagloballead,‘Swedendiditfirst’• Buildingaplatformforexport business
Itwilltremendousefforttobuildfirst bigplant
LiquidWind– FinalPresentation 13
Thestudyindicatesgreatpotential,ifopenmindednessandlong-termvisioncanmeet
• Isitpossibleandfeasibletoproducerenewablemethanolin(western)Sweden• Yesonlargescalewithfavorableenergyprices
• Whatlocationismostsuitable,considering:– Rawmaterial(CO2)andpowersupply– Availableinfrastructure&transportation– Size/Capacityoftheplant
• 1)Selfconsumptionofpower2)AccesstohighconcentrationCO2 3)Largeplant
• Whatisthemosteffectivewaytobuildtheplant:– Fromcost,time,efficiencyandexpansionpointofview– WhatHS&Eregulationsneedtobefollowed– Howlongwillittaketobuildaplant
• Nexttoapowergrid,whereenvironmentalpermitsexist,logisticsinplace
• Estimatedmethanolcost:– Whichfactorswillhavebiggestimpactonthemethanolprice
• Initially,higherthanblackmethanol,electricitycosthavehighimpact
LiquidWind– FinalPresentation 14
Biggestcostdriverbyfar,iselectricity,closelyfollowedbycapitalcostofelectrolyser
Theitemsthathav ethe biggestimpact:
– LandedElectricitycost• Thisincludesenergycost,gridfeesandenergytaxes
– Capitalcost&efficiencyofelectrolyser & methanolsynthesis,• ThenetH2cost/kgisakeyfactor• Toreachtargetcostlevel,plantmustoperateminimum7500hrs/year
– Renewablemethanolpremiumvalue• Findingclientsthatwillpayforthevalueofrenewable/carbonneutral• Targetistoreachmarketmethanolprice+375 Euro/ton(now)
15LiquidWind- InitialMeeting
Sohowisrenewable Methanolmade…
LiquidWind– FinalPresentation 16
(Surplus) energyandrejectedCO2 in,renewablemethanolandO2 out
17LiquidWind– FinalPresentation
CO2O2 (H2)
Threewell-knownprocesssteps,maximizingyieldandreducingcostiskeytosuccess
LiquidWind– FinalPresentation 18
ElectrolyserWind El H2
CO2
Reactor CH3OH + H2O
Heat / O2
Heat
Condensation
CH3
OH
H2O
H2O
Multiplevariablesimpactthesolution,focusingonthosethatmattersimplifiestheapproach
19LiquidWind– FinalPresentation
CO2
S/M/L5/25/50MW
ProcessEfficiency
PlantCapCost/Capacity
Costofinput
Valueofoutput
Availabilityofinputatrightplaceandtime
AvailabilityofmarketandvalueofCO2neutrality
O2(H2)
PlantUtilization
Multiplevariablesimpactthesolution,focusingonthosethatmatterclarifiestheapproach
20LiquidWind– FinalPresentation
CO2
S/M/L5/25/50MW
ProcessEfficiency
Costofinput
Valueofoutput
Availabilityofinputatrightplaceandtime
AvailabilityofmarketandvalueofCO2neutrality
O2(H2)
PlantCost5MW=(3.0€/W)50MW=(1.3€/W)
PlantUtilization8000hrs/y
TeamhasfocusedontwooptionsPowerinput 5MW 50MW
MethanolOutput 4,000tons/year 40,000tons/year
CO2 utilised 5,600tons/year 56,000tons/year
Plant utilisation 8000hrs 8000 hrs
Electroliser w H2storage 8,000,000 Euro 40,000,000Euro
ReactorandB.o.P 6,800,000 Euro 25,600,000Euro
Technical Lifetime 25 years 25years
Operational condition Withor withoutGridFee Withor withoutGridFee
LiquidWind– FinalPresentation 21
Businesscasewillgetbetterasprocessesbecomemoreeffective
• Improvedtech.process• MarketExpansion• Largerorders
• ResearchfromChalmersshowsthatoperatingcostreductioninmethanolgenerationcouldbe20-50%dependingontechnologyusedandtimeframe.
• Source:Electrofuels forthetransportsektor.
LiquidWind– FinalPresentation 22
Costreduction
SalespriceoftraditionalfuelcomparedtoRenewableMethanol
0
20
40
60
80
100
120
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180
CO2Premium
CO2Tax
EnergyTax
€/Mwh
LiquidWind– FinalPresentation 23
€/MWh
CalculatedprodcostforReMe
0
20
40
60
80
100
120
140
160
180
CO2Premium
CO2Tax
EnergyTax
€/Mwh
LiquidWind– FinalPresentation 24
€/MWh
LocallyproducedReMe cancompetewithsomeregularfuel
0
20
40
60
80
100
120
140
160
180
CO2Premium
CO2Tax
EnergyTax
€/MWh
LiquidWind– FinalPresentation 25
€/MWh
ProsandConsfordifferentlocationsBasedon5MW/(5600tonsCO2)plantTorp Windfarm ‘’Gasendal’’upgrading Lillesjöverken
Svensk NaturEnergi Göteborg Energi Uddevalla Energi
Windfarmwith20MWcapacity
Gasupgrading site.SeparatesCH4andCO2
Waste2Energy plant.Producespowerandheat
CO2tobetruckedin CO2available5-6000 tonsEnoughforsmallplant
CO2potentiallyavailable110000tons/costly
Nostaffonsite Staff oncall 24/7staff
Energyonsite self-production4-6MWEnoughforsmallplant
GöteborgEnergygrid Energy available?selfproduction4-6MWEnoughforsmallplant
Factoryinforest,maybe challenging
Enviropermits inplace,spacelimited
Enviropermits inplace,spaceavailable
LiquidWind– FinalPresentation 26
Twooptions…for50MWplantindustrialsiteorfloatingplantIndustrial Floating Open option
Chemical industrialpark Offshorewind Goodforproject
Produces fuels&Chemicals WindEnergyGeneration Caution forproject
CO2 available NoCO2 Concernforproject
Mayhavewaste heatWouldliketopurchaseO2
CO2arrivesby tankerMethanolshippedwithtanker
Needs furtherinvestigation
Staffonsite Technical staffavailabledaily
NoenergyproductionLargeconnection
Energyavailable,largevolumelowcostSelf-production
Environmentalpermits inplace
FewerpermitsrequiredIf building offshore
LiquidWind– FinalPresentation 27
A50Mwplantcoulddeliver…
• MethanolSales(40,000tons)– Soldatmarketprice+CO2 benefitpremium– Marketprice(Feb2017)355€/ton– CO2 benefit375€/ton– Potentialrevenue:29.200.000€/year
• GridServices/Systemtjänster – tooearlytobasebusinesscaseon– WilllikelybeamarketinSwedenin3-5years
• O2sales– MarketmayexistsforlowvaluehighvolumeO2,notstudiedindetail
• H2sales– Marketwillevolveasdemandgrows,limitedcapacity
• Heatsales– initiallyminimisedbyre-usinginternally
28LiquidWind- InitialMeeting
Howfarcanyougowith40,000tReMe,withanenergycontentof220GWh
• Afewcomparisons– StenaGermanica toKieluses100tperreturntrip• Soatotalof400trips
– OneGeely methanolcarwouldgo420,000,000km• Atotalof21,000carswouldgo2,000Swe Mil/year
– BoilerfuelforDistrictenergy• X%ofGbg energypeakloadannually
LiquidWind– FinalPresentation 29
Noroadblockshavebeenfound,roadbumps willbenavigatedcarefully• Health&Safety- OK• Firesecuritycanbemanagedtospecification• Environmentalpermitsrequired– largeplants• Gridservicesmarket– notdeveloped/ready• Methanolfuelusersfewbutgrowing• CO2extractionfromWaste2energy– stillcostly• CO2premiumvaluestillevolving
LiquidWind– FinalPresentation 30
Conclusionandnextstep
• Theprojectteamhasyettoselectthe‘’right’’sizeandlocation.Suggestedapproach,evaluatefurtherbypriority:
1. 50MWcapacitynoGridFeelocation2. 50MWcapacitywGridFee(northernSwe)3. 50MWcapacitywGridFee(southernSwe)4. 5MWcapacitynoGridFee
31LiquidWind– FinalPresentation
TheLiquidWindProjectTeamsuggest:
• Furtherstudyforsuitable50MWlocation– Keepa5MWoptioninmindaswell
• Identifyandagreewith3-5clients(LOI)• Bringtogetheraconsortiumof3-5partners• Finalizebusinesscaseandgeneratefinancing• Prepareengineeringdesign• Startconstruction2018/2019• Firstrenewablemethanolinmarket2020
LiquidWind– FinalPresentation 32
LiquidWindislookingforPartners
• Tojointhedialogueandaddknow-how• Whowanttouserenewablemethanol• Whocouldconsiderjoiningaconsortium
• Anyoneinterestedpleasecontact:– ClaesFredriksson,LiquidWindcoordinator
33LiquidWind– FinalPresentation
34LiquidWind- InitialMeeting
SupportingMembers
LiquidWind- InitialMeeting 35
Frågor?
LiquidWind- InitialMeeting 36
WhatdoesCO2 looklike
LiquidWind– FinalPresentation 37
Back-Up
Wallenstam’s needtostorewind,leadtotheLiquidWindproject
• Wallenstam,theownerofSvensk NaturEnergi,theowner/operatorof150MWofwindenergyproductioncapacity,isseekingawaytostorelowvaluewindenergy.
• Wallenstam tooktheinitiativetotheLiquidWindprojectinspring2016,requestinganinitialreviewoftheopportunity,fromFreeThem Generation.
• Wallenstam wantstofindawayofcollaboratingwithgridownersinawaythatwillstrengthenthegridandoptimise thegridfees.
LiquidWind– FinalPresentation 38
Largecapacityandhighutilization,reducedgridfee,isarequirement
39LiquidWind– FinalPresentation
Energy/El
MethanolProd.Capacity5MW=2-4,000tonnes/y
50MW=20-40,000tonnes/y
PlantUtilization4000or8000hrs/y
PlantCost5MW=15M€(3€/W)
50MW=66M€(1.3€/W)
Costofinput
Valueofoutput
EnergyPriceinSweden:- Energy 1/3- Gridfee 1/3- Energytax 1/3
Selfconsumptionreducescost
ValueofMethanoldependsonmarketandneedforCO2
neutrality
Methanol
renewable
Workpackage1- 101)MethanolSales/Distribution2)O2/H2&HeatSales3)GridServices/PowerSupply4)CO2&WaterSupply5)Regulations&Tax6)HealthSafety&Environment7)ProductionProcess89)ConstructionandCalculationProcess10)Projectmanagement
40LiquidWind- InitialMeeting
TrendssupportingRenewableMethanol
• Renewableenergyprice,graduallygettinglower• Hydrogenproductioncostdecreasing– activeresearcheffortsintoelectrolysers
• EfficiencyinH2 productionimproving• Methanolsynthesiscostwilldropwithvolume• ReME willbeappreciatedinchemicalsectortoo• CO2 penaltycostwilllikelyincrease– alsomarine• Morevehicleswillusemethanolasfuel• MethanolwillbeusedmoreinFuelCells– yield!
41LiquidWind- InitialMeeting
Howmuchis40,000tmethanol,withanenergycontentof220GWh
• Afewcomparisons– StenaGermanica toKielconsumes100tpertrip• Soatotalof400trips
– OneGeely methanolcarwouldgo420,000,000km• Atotalof21,000methanolcarsgo2,000Swe Mil/year
– BoilerfuelforDistrictenergy• X%ofGbg energypeakloadannually
LiquidWind– FinalPresentation 42
PossibleinvestorsinLiquidWindplant
• Klimat Klivet– SupportforCO2reduction
• Gröna Fonden– Almi Invest/Tillväxtverket managednewfundför CO2reduktion
• DemoFonden– Fondfrån Saminvest (Fouriertransform/Inlandsinnovation)
• Energimyndigheten– Jaför en Pilotanläggning - focuspå innovation
• Bränsle användare – medviljan att använda något miljövänligare• Gäller att enas omaffärsmodellen
– Lagra vind,Återanvända CO2,Producera Bränsle,Erbjuda systemlösning förklimat nytta som möjliggör fossilfri (tyngre)transport
LiquidWind– FinalPresentation 43
Theseissueswillbetakencareofnext• Whattypeoforganizationswouldinvestinarenewablemethanolplant
– Whatmessagewillbeattractivetopossibleinvestors– Whatownershipstructurewouldbesuitable
• Stilltobedetermined– likelylargerplayers
• Willtherebecustomerswhentheplantisready– Whatpricelevelwillmakemethanolattractive– Whatregulationswillguidethecreationofarenewablemethanolmarket
• Yesmarketexiststoday
• Whatadditionalrevenuestreamscanbedeveloped– Net/Gridservices– O2andpossiblyH2sales– CO2reductionservices
• Tobedeterminedinnextphase
LiquidWind– FinalPresentation 44
WhataboutElectricorFuelCellcars
LiquidWind– FinalPresentation 45
WhataboutElectricorFuelCellCars?
• Electriccarsaregreatandworksuperforlimitedloadanddistance
• ElectriccarsrunonHydrogenconvertedbyFuelCellstoelectricityhavehighconversionfactor
• MethanolasfuelforFuelCellwillsimplifyfuelmanagement.MethanolcontainsmoreH2thanLH2
• Moreelectriccarsrequiremoregridbalancing.MoreH2carsmeansmoreelectrolizer development.Itallworkinginthesamedirectiont.
LiquidWind– FinalPresentation 46
TheResults– othercostsMaincomponentsrequiredinprocess,cont.
– Condensation - removewaterfrommethanol• Dependsonendcustomersrequirement• Someclientswouldlikewaterblendedmethanol• Costofreductionprocess
– Detailedcostsdependonplantdesignandhetusage
– Methanol/CO2storage• Providecapacityfor2typesoffuelandliquidCO2• Storagesizedependsofpick-upfrequency• Infuturemaybepipeline,dependingonlocation
– Probablyuseonetankstoragedependsonlocation(iffloatingmaybebunkershipdirect)
– LoadingandunloadingofMethanol&CO2• Costofequipment
– Specifictolocationanddesign
– Operations• Dependsonplantssizeandautomationlevelandlocation• Manning/costswillbereducedwithmoreautomation–
– Forlargeplantonsiteoperators,forpilotplantcanlikelyoperateremotelyduringnighttime
47LiquidWind- InitialMeeting