Norway as incubator for large-scale Power-to-Liquids - Dena

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Norway as incubator for large-scale Power-to-Liquids - Dena
Norway as incubator for
            large-scale Power-to-Liquids

            30.01.2019   Karl Hauptmeier

Investors
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

Sunfire – a leading provider of Solid Oxide Electrolysis

Sunfire Headquarter in Dresden    e-Fuels plant

Stack production                  Test facilities
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

Paris Climate Agreement: The Future has to be Renewable
    85 - 100 % renewables needed to reach Paris Climate Target which still leads to
    significant negative impacts for human civilization

                                                                                           + 5 ºC: End of human civilization

                                                                                           + 4 ºC: Drought in Europe; China,
                                                                                           India and Bangladesh mainly desert;
                                                                                           Polynesia vanished; American
                                                                                           Southwest largly uninhabitable

                                                                                           + 3 ºC: Forests in the Arctic and the
                                                                                           loss of most coastal cities

                                                                                           + 2 ºC: Extinction of the world’s
                                                                                           tropical reefs, sea-level rise of
                                                                                           several meters; abandonment of the
                                                                                           Persian Gulf

Sources: https://www.pik-potsdam.de/paris-reality-check/
https://www.nytimes.com/interactive/2018/08/01/magazine/climate-change-losing-earth.html
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

Aviation & Shipping – Prime Example of e-Fuel Necessity
Anticipated primary-energy consumption of the EU transport sector
18000                                                                             18000
16000                                                                             16000
14000                                                   ca. 10,300 PJ             14000                                                 ca. 10,300 PJ

12000                                                                             12000
10000                                                                             10000
 8000                                                                               8000
 6000                                                                               6000
 4000                                                                               4000
 2000                                                                               2000
     0                                                                                  0
      2020                    2030                    2040                   2050        2020                    2030                 2040                 2050
         Passenger Vehicles                         Buses
         Rail (passenger)                           Rail (freight)                          Fossil Fuels       Electricity       H2     Methane       eFuels
                                                                                                                                                       Renewable
         Trucks                                     Ships (freight)                                                                                    Liquid Fuels
                                                    Aviation

      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)

 Calculation based on dena/LBST „E-Fuels –The potential of electricity based fuels for low emission transport in the EU”, 2017
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

      Bringing the Energy Transition to the Next Level

      Energy Consumption by Carrier

                            Renewable Solutions available        Renewable Solutions needed for
22%
                                                                               e-Fuels

                                                            37                 e-Gases
                                                             %
                                                                               e-Chemicals

                                                                        63%
                                    88%

        Source: IEA, June 2017
        World Energy 2014-2050, Political economist, 2014
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

e-Fuel, a Necessity to Meet the Climate Objectives

Achieving the climate protection goals is only
possible with the use of synthetic fuels and gases.

                         Demand for synthetic liquid energy carriers 2050 in the EU:
                              up to 2.000 PJ = up to 230 GW installed PtL capacity
                                       (up to 8 GW/a installed capacity from 2020)

“Power-to-fuel applications offer the lowest marginal abatement
costs [for volatile renewable energy integration] in the long term.”

                           “Even in a battery electric drive dominated scenario, the
                           final energy demand of all transport modes in the EU will
                                    be met with more than 70 % of e-Fuels in 2050.”
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation              30-Jan-19

e-Fuel - Highest Potential and Lowest Ecological Footprint

     8x more efficient use of land area                   Achievable air mileage for an A320neo per ha of land
     compared to biological alternatives                                                                                      (km/(ha · yr))

                                                                     PtL wind power
     95 % lower water consumption                                  PtL photovoltaics
     compared to biological alternatives                  BtL short rotation forestry
                                                                      HEFA oil crops
     85 % reduction in CO2 emissions
                                                           Alcohol-to-Jet sugar crops
     compared to fossil fuel
                                                                                        0   2000        4000        6000        8000     10000

                                                                                    Minimum         Bandwidth

 PtL water consumption by volume                                                Life cycle green house gas emissions
 (with 1.4 lH2O/ ljetfuel)                                                                                                      (gCO2eq/MJ)
                                                                    Power-to-Liquids

                                                                            Gasoline

                                                                               Diesel

                                                                            Biodiesel                     w/methane capture   palm oil

                                                            Ethanol (1st generation)                sugarcane                   wheat

                                                            Ethanol (2nd generation)        straw

     PtL          Algae oil   Alcohol-to-Jet     HEFA
  Wind, Solar    Open pond      Sugar beet     jatropha                                 0     20          40          60           80     100
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

Renewable Fuels of Non Biological Origin - Processes
Partner       Sunfire                   Partner

           Conversion       Synthesis     Refinement

                                                                        e-Fuels

Carbon Capturing        Renewable            Renewable Liquids: Ready-to-Use
CO2 from air or         Electricity          • Direct effect on existing fleet
unavoidable sources                          • Infrastructure compatible
                                             • No-regret measure
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

Europe - Global leader in e-Fuels development

Global Leader in CO2 capture from air (TRL 5-6)        Global Leader in e-Methanol (TRL 8-9)
Climeworks, Switzerland / Germany                      Carbon Recycling International, Iceland

Global Leader in green hydrogen generation (TRL 7-8)   Global Leader in e-Crude (TRL 8-9)
Hydrogenics, Belgium / McPhy, France / ITM, UK         Sunfire, Germany
Norway as incubator for large-scale Power-to-Liquids - Dena
Sunfire Company Presentation   30-Jan-19

Snapshot of the world´s strongest RE potential

Frontier Economics (2018): The Future Cost of Electricity-Based Synthetic Fuels.
Sunfire Company Presentation   30-Jan-19

Cost Projections in Recent Studies

Agora Energiewende / Agora Verkehrswende, The Future Cost of Electricity-Based Synthetic Fuels, 2018
Sunfire Company Presentation    30-Jan-19

e-Fuel as Enabler for Renewable Energy Build Up

      North-East Norway could cover
      >20% of EU transport sector
      power demand
                                                                                1.028 TWh
      On-site transformation to e-Fuel
      allow for transport and storage
      Increases potential

*Values refer to On-Shore Wind Power Potential
Source: NVE
Sunfire Company Presentation   30-Jan-19

                           20 MW el Capacity
                           8000 t/a e-Crude production
Commercial Phase: Norway   28,000 t/a CO2 consumption
(expected after 2021)      30 EUR/MWh Electricity Price
                           2 EUR/Liter targeted Selling Price
Sunfire Company Presentation   30-Jan-19

Key Positions from Sunfire
           Electricity must be renewable. Key criteria to impose: Full cost
           coverage, guarantee of origin, time- and space-related reference
           Power-Purchase-Agreement enable all four criteria
           Not useful: “Additionality” or “direct connection”

           Be technology neutral - the plate is full enough for all of us
           Prevent past mistakes: 2007 (1G biofuel-only) and 2017 (battery
           electric-only)
           Equal footing for batteries, hydrogen, e-Fuels and advanced biofuels

           Start with passenger transport, as regulatory framework exists
           Switch to aviation, shipping, chemicals, steel, etc. (hard-to-
           electrify) once legislation is in place
           If necessary, impose a maximum quantity for passenger transport
Sunfire Company Presentation   30-Jan-19

e-Fuels put wind and solar power in the tank…

                                  …Done the right way,
                                  it’s a huge opportunity
                                  for Europe!
Artist: Jean-Yves Hamel
THANK YOU!

Karl Hauptmeier                 sunfire GmbH
Senior Product Manager          Gasanstaltstraße 2
Electrolysis                    01237 Dresden
                                Germany

E: karl.hauptmeier@sunfire.de   W: www.sunfire.de
Sunfire Company Presentation   30-Jan-19

Company Facts
Knowhow
            ~ 130 Employees in Dresden and Neubrandenburg
            Full value chain from Ceramics, Engineering, Stack + System Production, up to Synthesis Processes,
            Service etc.

Patents
            More than 60 patent families (e.g. »process patent sunfire« WO/2008/014854)

Recognition
            Cleantech 100 Company 2014 - 2018 (only fuel cell + electrolysis company)
            Fast Company Most Innovative Company of 2016 (with Tesla and Toyota)
            German Gas Industry’s 2016 Innovation & Climate Protection Award
            Kanthal Award 2017 for solutions in Sustainability, Quality of Life and Energy Efficiency

Revenues
            Multi-million Euro Revenues in Global Markets since 2011

Investors
Sunfire Company Presentation   30-Jan-19

Sunfire Products in Action Worldwide since 2011

Global industry leader in solid oxide technology
     •   Hundreds of systems installed
     •   Longest operation in customer applications
     •   Largest SOC electrolysis installer of the world

                                                                               …and many more.
Sunfire Company Presentation   30-Jan-19

Three Core USPs
   Highest efficiencies leading to lowest
   total cost of ownership (TCO)

   Direct conversion of carbon molecules
   to provide clean solutions for the energy
   transition in all sectors

   Non-toxic, no critical and no expensive
   materials for easy manufacturing

   “When steam can be preferably generated from waste heat sources, such as in
    steelmaking, high temperature electrolysis is the most efficient technology.”
Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Chief Executive Officer and Chairman of the Executive Board of Salzgitter AG
Sunfire Company Presentation   30-Jan-19

Conventional Water-Electrolysis + RWGS + Synthesis

               RWGS
               + 41 kJ                                                           - 147 kJ

                                                                                        LHV of fuel
                                                                                        +620 kJ/kmol

                                                                          CxHy
                                    Water-Electrolysis
                                    + 867 kJ
                                                                          ηmax, theor = 68 %
                                                                          lower heating value of the fuel (620 kJ/kmol) compared
                                                                          to the electrical energy without any parasitic losses

                                                                          ηmax, real = 43 - 49 %           BENCHMARK

All values refer to energy conversion necessary for the production of 1 kmol of –CxHy- hydrocarbons
Sunfire Company Presentation   30-Jan-19

Step 1 Improvement: Seam-Electrolysis + RWGS + Synthesis

               RWGS
               + 41 kJ                                                           - 147 kJ

                                                      Heat
                                                    Recovery                                     Sunfire’s steam-
                                                                                                 electrolysis achieves
                                                                                                 higher efficiency as
                                      Steam-Electrolysis                  CxHy
                                                                                                 waste heat can be used
                                      + 726 kJ

                                                                          ηmax, theor = 81 %
                                           Evaporation                    calculated as before
                                           + 141 kJ
                                                                          ηmax,real = benchmark + 10 % points
                                                                          parasitic loss for pressurization of H2 is included

All values refer to energy conversion necessary for the production of 1 kmol of –CxHy- hydrocarbons
RWGS: Reverse-Water-Gas-Shift-Reaction
Sunfire Company Presentation   30-Jan-19

Step 2 Improvement: Co-Electrolysis + Synthesis

                                                                                 - 147 kJ

                                                         Heat
                                                       Recovery                                  Higher efficiency due to
                                     Co-Electrolysis                                             process integration and
                                     + 767 kJ
                                                                                                 shift from catalytic to
                                                                          CxHy
                                                                                                 electro-chemical
                                                                                                 conversion

                                                                          ηmax, theor = 81 %
                                           Evaporation                    calculated as before
                                           + 94 kJ
                                                                          ηmax,real = benchmark + 15 % points
                                                                          parasitic loss for pressurization of H2 is included

All values refer to energy conversion necessary for the production of 1 kmol of –CxHy- hydrocarbons
RWGS: Reverse-Water-Gas-Shift-Reaction
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