Biomass to Hydrogen Power Clean Energy Systems and Green Hydrogen Proton Power, Inc. 487 Sam Rayburn Parkway Lenoir City, Tennessee 37771 Tel: (865) 376-9002 Fax: (865) 376-1802 www.protonpowerinc.com Companies have touched lives • Neutron absorbers- Electrical generation – Al2O3-B4C Burnable neutron absorbers – B4C Control Rod Material • Test Reactor Fuel-Radioisotopes for 10 Million people. • Aircraft brakes for Boeing 767 and 777 plus military. • Made first 2800C production furnaces for high strength, high modulus carbon fibers. • Developed ceramic punch technology and equipment to make Coors the thinnest beer cans in world. In 2006 started into renewable energy sector. 2 Proton Power’s Technology - Cellulose To Hydrogen Power (CHyP) …And Make This… We Take This… Electricity Energy Crops Liquid Fuels Water MSW Heat Woody Waste In A Way That Is Carbon Negative Biochar 3 Overview • Biomass to Hydrogen Gasification for green hydrogen, power generation, and liquid fuel. • Highest H2 content (65%) of any syngas output • Early commercialization: First 5 customers. • Backlog of orders: $648 Million • Active outstanding bids: $4 Billion • 11 submitted patents, 1 issued. • 4 locations 90,000 sq. ft. of office and manufacturing on 125 acres. • Experienced manufacturing team of >70 employees including 20 engineers. 4 Power Plant in Progress (April 2013) Project in approx. 0.5 Acre of land: 0.5MW now, can fit up to 3.0MW 5 Power Plant in Progress (cont.) 6 Flare before genset startup 7 Wampler Startup 8 General Advantages of CHyP Engine • • • • • • • • • Lower cost of energy than fossil fuels. Eliminates the need for a hydrogen distribution system. Hydrogen storage systems are eliminated. The systems are scalable to suit the application. The cellulose fuel is renewable. The by-product of burning hydrogen is water. Much of fuel could be waste products. Process is carbon negative. CHyP system can provide energy all ways energy used: heat, electricity, and liquid fuel. 911/13/2013 Proton Power, Inc. Proton Power Advantage 230 65% BTU/scf 150 4-40% Proton Power Industry Gas Output BTU/scf Proton Power Industry Gas Power Density • Proton Power measured hydrogen content is 65% by volume compared with a 15% industry average • Energy density >50% higher than industry average 10 Operational Advantages Of The CHyP Process • No Drying of Biomass Feedstock Required • Flexible to Many Different Biomass Feedstocks • One-stage Process for Electricity Production • No Waste Streams Produced • Same First Stage for Electricity and Fuels • Works with Current Diesel Gensets for Supplementation Low Capital, Production Costs Excellent ROIs 11 Performance Independently Verified Gas Composition Testing By Shaw Environmental 12 Cellulosic Biomass to Hydrogen Power (CHyP) • Thermal gasification process for lignocellulosic feedstocks • 65% H2, 30%CO2, <5% CO, ash, tars in output stream • H2, CO2 main produced gases for H2 production, electricity generation, CHP 13 Electricity • 1200 kwh per tonne of biomass (measured bone dry) • Combustion product is mostly water • CHyP syngas output can be varied for genset operation – 40% H2 / 40% CO / 10% CH4 / 10% CO21 – Energy content up to 400 Btu/scfm – lowers genset derate • Systems scalable upward from 250 kw 14 Cellulosic Feedstocks Demonstrated • Ag/forest residues, paper waste, wood chips, sawdust, paper • Energy crops – switchgrass • Process gasifies cellulose, hemicelluloses and lignins • Excellent fuel LCA (>85% CO2 reduction) with waste streams • Carbon-negative with switchgrass and other energy crops 15 Cellulose 38-50% Lignin 15-25% HemiCellulose 23-32% Biomass Successfully Tested By PPI - for CHyP • • • • • • • • • • • • 16 Miscanthus Switchgrass Railroad Ties - Borate, Creosote & QNAP coatings Green Urban Waste - Yard Trimmings Cotton Gin Trash Municipal Solid Waste - Compost & Autoclave Palm Fronds Palm Kernel Shells Hickory Bagasse Pine Bark Virginia Pine • • • • • • • • • • • • • Cedar Grass Hay Mesquite Red Oak White Oak Flooring Waste - Hardwood Flour & Nylon Carpet Spruce Poplar Lint Bamboo Mixed Paper Corn Stover Wood pellets Electricity Economics • Favorable Scaling - Distributed, Community, Industrial and Utility • Waste disposal and power generation for excellent customer ROI 17 EIA Cost of Electricity Study 18 CHyP Is Lowest Cost System! CHyP Hydrogen Costs • Thermal reactor developed to maximize generation of hydrogen utilizing cellulose. • 1 Kg H2 = 92% energy content of 1 gallon gasoline • CHyP costs for 1 Kg H2 : – Waste Cellulose: $.30-0.78/Kg H2 – Biofuels (switchgrass, miscanthus): $0.75/Kg H2 – Includes costs of growing, harvesting, shipping, chopping, generation. 19 11/13/2013 Proton Power, Inc. Proprietary H2 Production Economics • Plant Capital Costs (mid-scale) – $15 Million : 1 tonne/hr CHyP hydrogen plant – $25 Million : Commercial hydrogen-natural gas reform plant • H2 Feedstock Cost – CHyP: $0.40 – 0.80/kg depending on cellulose source – NG reform plant: $1-2/kg depending on gas price • H2 Merchant Market Price – Wholesale rail: $5-10/kg depending on NG price, delivery location – Wholesale truck: $5-$20/kg depending on NG price, delivery location – Retail truck: $20-$50/kg depending on quantity, delivery location • Production plant savings using CHyP generator – $24,000/day @ $1/kg H2, payback in 2 years • End-user savings using CHyP generator – $120,000/day @ $5/kg H2, payback in 5 months 20 Energy Payback Ratios Energy Payback Ratios Solar Thermal Wind Nuclear CHyP Waste Energy Source Natural Gas CHyP Biofuel Cellulosic Ethanol Photovoltaics Oil Coal Coal Gasification Fuel Cells Corn Ethanol 0 11/13/2013 21 5 10 15 Energy Out/Energy In Proton Power, Inc. Proprietary 20 25 30 CHyP Hydrogen Generation • Test results show average leverage of power out/heat in = 20.25 • Heat to produce 1 kg H2=1.65 kW-hr. • Electrolysis, by comparison =55 kWe-hr for 1 kg H2 • Natural gas consumes 13 kW-hr in form of lost heating value when used to produce 1 kg H2. 22 CO2 Emissions by Fuel Type (kg/MWh) 23 Synthetic Fuel Environmental Life cycle analysis • Impact category • • • • • • • • • • 24 Ozone depletion Global warming Smog Acidification Eutrophication Carcinogenics Non carcinogenics Respiratory effects Ecotoxicity Fossil fuel depletion -1.4E-05 -820.572 -33.3361 -3.60469 -24.8522 -6.1E-05 -0.00062 -0.22115 -10776.5 -14.28201 kg CFC-11 eq kg CO2 eq kg O3 eq kg SO2 eq kg N eq CTUh CTUh kg PM2.5 eq CTUe MJ surplus PPI History PPI Started Oct, 2005 Bought LC PLant 2nd Liquid Fuels Order Wampler’s Order Bought Rockwood Plant 2008 2009 P1 P2 2010 2011 2012 2013 2014 2015 P3 P5 Wampler’s Startup Prototypes 1st Liquid Fuels Order 25 Sale of UT Unit PPI Facilities - 3 Sites Lenoir City, TN The “Farm”” Lenoir City, TN • • • • • • • • Rockwood, TN • • • • 26 Work began in 2008 Original site of engineering, design and laboratory 4800 ft2 office, 3000 ft2 lab 40 acres available for expansion Purchased in February 2012 HQ, engineering, design and CHyP production 20,000 ft2 manufacturing, 3,000 ft2 office 3 acres available for expansion Purchased in February, 2013 Liquid fuels engineering, design, fabrication, assembly and testing Pilot liquid fuels system: 1M gal/yr 48,000 ft2 manufacturing, 7000 ft2 office on 83 acre site 112 Acres with 85,800 ft2 Combined 20,000 sq. ft. Proton Power Fabrication Facility 27 February 2013 Proton Power Expansion Plans 28 Team • • • • Dr. Sam C. Weaver Ph.D. Metallurgical Engineering, UT –Chairman, CEO and Co-founder, Dan Hensley–COO-Business partner with Dr. Weaver for 40 years Samuel P. Weaver–VP, Co-founder-CEO, Cool Energy, B.S. Engineering Applied Science, Caltech Jim Bierkamp- Manager, Business Development, MS, Mechanical Engineering • • • • • • • • • • • • • Greg Shillings–B.S., Electrical Engineering, Tennessee Tech Terrence Johnson–B.S. Mechanical Engineering, UT Nick Shaffer-B.S. Mechanical Engineering, UT Bryan Biss-B.S. Bioengineering, UT Sally Almond- B.S. Chemical Engineering, FSU, M.S. Environmental Science, PE Henry Webber-B.S. Electrical Engineering Stephen Davis- B.S. Mechanical Engineering, UT David Borden-B.S. Mechanical Engineering, Tennessee Tech Dr. Jeff Hodgson–Ph. D. Mechanical Engineering, UT Dr. Mike Maskarinec- B.S. Chemistry-Notre Dame, Ph.D, Indiana University Frank Medio-B.S. Electrical Engineering Mark Lester-Welding Engineer Dillion Alley-Bioengineering, UT • • • David Georgis– Director of Operations. BSEE, CU Lee Smith, BS, Mechanical Engineering, RPI Brian Nuel, MS, Mechanical Engineering, U. Ill. • Ryan Paquette, BS, Mechanical Engineering, CU • Dan Harrison, BS, Eng. and Applied Science, Caltech 29 Scaleable (0.25 MW – 500 MW) 30 5 MW 0.5 MW 500 MW 3 MW CHyP Platform Applications • Supplement diesel fuel generators- up to 80% hydrogenEquipment payback < 1 yr • Supplement or run natural gas generators- up to 100% hydrogenEquipment payback 2-4 years • Demolition wood waste-Power generation: – Binds toxic materials into non-leachable form – Reduces volume going into land fills by 96% – Equipment payback: 2-3 years • Fuel Cell/CHyP system: – Totally quiet – Low maintenance – Efficiency 60% higher than ICE • Cheap hydrogen for biomass to liquid fuel. • Automotive fuel-supplement for diesel. 31 Competitive Landscape Company Proton Power Tennessee Energy Products Community Power Nexterra Energy Fuel Type Hydrogen Output Gas Ene BTU / scf Scale Application cellulose 65% 230 500kW – 5MW DG, CHP, IPP & H2 mill residues, ag. crops & wastes animal wastes municipal wastes 0% 180-200 CHP 16MW DG. Mostly EPC and fluidized bed energy systems Wood chips Sawdust 20% 120-165 5-75kW DG wood residue ~4-40% 117 1.38 MWe CHP ~4-40% 112 wood chips, saw dust, grain hulls, corn stalks, switchgrass, straw 4-40% 150-300 sawdust, ag waste, paper pellets, rail road ties ~4-40% 130 – 150 2 – 20 MW CHP 15% 130 - 150 100 – 500 KW DG ~4-40% 150 - 300 1 – 10MW CHP Kopf Frontline BioEnergy Chiptec Ankur Scientific Flex Energy 32 Carbona low BTU waste gases ~4-40% CHP 100 kWe-PPI vs. CPI PPI 100 kWe 33 CPI 100 kWe Average shale gas production profiles 34 How cheap is natural gas? • Consumer Price Index: June 1989-June 2013: Up 88% • • • • 35 Natural gas wellhead price: Up 103% Natural gas citygate price: Up 93% Natural gas commercial price: Up 99% Natural gas residential price: Up 128% 36 Proton Power Bio-Oil System at UT 37 38 39 Hydrotreated Bio-oil 40 Distilled Product: Diesel, Jet Fuel, Gasoline 41 Lower Heating Value in PPI Green Diesel Process • • • • Starting biomass: 6000-9000 BTU/lb Bio-oil as produced: 9966 BTU/lb As-Hydrotreated: 16304 BTU/lb As-Hydrocracked: 18,433 BTU/lb • Low sulfur diesel: 18,320 BTU/lb • Crude oil: 18,352 42 Example 4.8M Gal/Yr Green Diesel Facility Biomass Storage Biomass Transfer CHyP Syngas Production Green Diesel Storage & Loading Biochar Storage & Loading Green Diesel Refining 43 Biomass to Liquid Fuel Economics • Plant size: 50,000 liters/day – – – – – – 44 Assumed selling price: $0.83/liter Yield: 400 liters/tonne biomass (bone dry) O & M cost: $0.137/liter Biomass: $60/tonne 2.5 year payback Liquid fuel production cost: $0.45/liter ($1.70/gal) Proton Power Summary • High hydrogen output and syngas energy density • Team with prior product development, mfg history • Demonstrated technology, customers 45 Large Vacuum Furnace 46 11/13/2013 Proton Power, Inc. Proprietary CVD Furnace 47 11/13/2013 Chemical Vapor Deposition 48 11/13/2013 Proton Power, Inc. Proprietary High temperature, controlled atmosphere 49 11/13/2013 Proton Power, Inc. Proprietary Large Ceramic Furnace 50 11/13/2013 2800C Fuel Cell Carbon-Carbon 51 11/13/2013 High Pressure, High Temperature 52 11/13/2013 CVD High Temperature 53 11/13/2013 Relationship of Energy to Wealth Mean World Median 54 Source: IEA 2006 TOTAL MARKET • Current Continuous World energy use: 15 TW • World energy demand: 84 TW • Need to add 2 TW/yr of new energy supply forever • Annual World Biomass availability: – Currently sustainable: 7.53 TW – Theoretically harvestable: 81 TW – Total annual production: 125 TW • Engines required: 20 Million (Current automotive: 78 M) • Automotive increased by this amount: 2001-2010 55 Economic Benefit • • • • New energy installs annual: $5000 Billion. Manufacturing jobs: 50 Million. 10 Million new support jobs each year. 600 Million jobs after 60 years. • Biggest business opportunity in history. 56 Future of Energy • Current: Fossil Fuels: Limited to about 100 years – Increasing costs as fossil fuels consumed • Current: Nuclear: Limited because – No recycle – No burial – No liquid fuels • Future: Sustainable, renewable: Unlimited – Wind: Discontinuous – Solar: Discontinuous – Biomass: Continuous 57 58 Effect of Rotting Waste Biomass 1MWe CHyP avoids: 82,811 tonnes CO2e over 10 yr 59 A carbon negative future • Fossil fuels currently produce 88% of world energy. • Replacing fossil fuels with CHyP: – Reduces CO2 by 3 Gt/y from natural events – Reduces CO2 by 6.5 Gt/y from CHyP – Reduces CO2 in air by 10 ppm/y • Increasing world energy production with CHyP by 44% – Neutralizes carbon emissions from fossils • When fossil fuels fall below 61% the CO2 content begins to decrease (if the increase is by CHyP) 60