Major and Future Options for Sustainable Energy Logistics 14 October, 2014 The Japan-Australia Business Co-operation Committee Shogo Shibuya President and CEO Chiyoda Corporation All Rights Reserved. CHIYODA 2014 INDEX 1. About Chiyoda 2. Energy Outlook 3. LNG – The “Major” Option for Sustainable Energy Logistics 4. Hydrogen – A “Future” Option for Sustainable Energy Logistics 5. Concluding Remarks All Rights Reserved. CHIYODA 2014 1. About Chiyoda All Rights Reserved. CHIYODA 2014 1.1 Chiyoda at a Glance Chiyoda “Energy and Environment” Founded in 1948 Integrated EPC Employees: 8,300+ All Rights Reserved. CHIYODA 2014 Energy & Environment Revenue: US$ 4.4 Bil. 40% Global LNG Capacity Offshore Upstream Backlog : US$ 10.7 Bil. Global HQ Yokohama 4 1.2 Business Fields Solar Energy - CSP / PV Power - PV Module Production Hydrogen Supply Business Integrated Offshore & Upstream Services Gas Processing LNG - Liquefaction - Regasification - Floating Synthesis gas Offshore & Upstream Industrial Water - Waste Water Treatment + Recycling - Produced Water Treatment Green Energy Gas Water Management Petroleum Refineries Environmental Protection Heavy oil upgrading Chemical Refinery Integration Petrochemicals & Chemicals Flue gas desulfurization Acid gas/CO2 capture and storage Energy conservation Metals & Mining Pharmaceuticals General Infrastructure & R&D Industry Metallurgical Refining and Smelting Methanol Fertilizer Olefins Aromatics Pharmaceuticals R&D Center All Rights Reserved. CHIYODA 2014 Electronic materials Food processing Airport Transport 5 1.3 Major On-going Projects outside Japan QATAR *Qatargas Plateau Maintenance (EPC) *Laffan Refinery Phase 2 (EPC) *Flow Assurance(Chiyoda Almana) (EPC) USA * Freeport LNG (EPC) *Cameron LNG (EPC) *Golden Pass LNG (FEED) CANADA * LNG Canada(FEED) All Rights Reserved. CHIYODA 2014 VENEZUELA *Puerto la Cruz Refinery (EPsCm) ALGERIA * Gassi Touil LNG (EPC) MOZAMBIQUE * Mozambique LNG (FEED) MONGOLIA *New Ulaanbaatar Airport (EPC) VIETNAM *Nghi Son Refinery & Petrochemical (EPC) PHILIPPINES *Taganito Nickel Refinery (EPC) AUSTRALIA *Ichthys LNG (EPC) INDONESIA * Abadi Floating LNG (FEED) *Jangkrik Floating Production Unit (EPCI) 6 1.4 Chiyoda’s LNG Projects over 40%* *:Plant capacity awarded since 2003 Ras Laffan, Qatar Qatargas LNG Project Train 1&2 Qatargas EPC 1996 Qatargas LNG Project Train 3 Qatargas EPC 1998 RasGas LNG Expansion Project Train 3/4 RasGas (II) EPC 2003, 2005 Qatargas Debottlenecking Project Train 1/2/3 Qatargas EPC 2003, 2004, 2005 RasGas LNG Expansion Project Train 5 RasGas (II) EPC 2006 Qatargas II Train 4&5 LNG Project Qatargas (II) EPC 2008, 2009 RasGas LNG Expansion Project Train 6/7 RasGas (3) EPC 2009 Qatargas 3/4 Train 6&7 LNG Project Qatargas EPC 2010 Qatargas Plateau Maintenance Project Qatargas EPC Das Island, U.A.E. Sakhalin Island, Russia Sakhalin LNG Project Train 1&2 Sakhalin Energy EPC 2008 Qalhat, Oman Oman LNG Project Train 1&2 Oman LNG EPC 2000 Qalhat LNG Project Qalhat LNG EPC 2005 ADGAS LNG Project Train 1&2 ADGAS EPC 1976 ADGAS LNG Plant Expansion Project Tr 3 ADGAS EPC 1994 Port Moresby, Papua New Guinea PNG LNG Project Train 1 & 2 Esso Highlands Limited EPC Hackberry, USA Cameron LNG Project Cameron LNG EPC Arun, Indonesia Arun LNG Project Train 4&5 PERTAMINA EPC 1983 Freeport, USA Freeport LNG Project FLNG Liquefaction, LLC FLNG Liquefaction2, LLC (through CB&I) EPC Bontang, Indonesia Arzew, Algeria Gassi Touil LNG Project Sonatrach EPC All Rights Reserved. CHIYODA 2014 Bontang LNG Train-E Project PERTAMINA EPC 1989 Bontang LNG Train-F Project PERTAMINA EPC 1993 Bontang LNG Train-G Project PERTAMINA EPC 1997 Darwin, Australia Ichthys LNG Project Train 1&2 INPEX Operations EPC 7 2. Energy Outlook All Rights Reserved. CHIYODA 2014 2.1 Shift From Conventional Fossil to Non Fossil Energy Sources Transition of Energy Sources Fossil Energy Non Fossil Energy Environmental Issues Environmental Conservation Environmental Load Reduction Energy Transformation Carbon Neutral - Clean Coal - GTL - DME - Methane Hydrate - Hydrogen - Bio Fuel - Solar Energy - ACCS* Technology for Solutions - Conventional Fossil Energy Sulfur Recovery Flue Gas Treatment Waste Water Treatment -Liquefaction of Natural Gas - Clean Fuel Oil - Energy Saving / Coproduction *ACCS: Acid Gas & CO2 Collection / Sequestration All Rights Reserved. CHIYODA 2014 9 2.2 Power Generation Portfolio and CO2 Emission Scenario in Japan 12,000 100% 50% 10,000 Renewable Renewable Increase 100% 80% 50% Renewable Renewable Renewable CO2 Emission Power Generation 8,000 Gas 6,000 Oil 4,000 Gas Oil Coal Gas Gas Shift Gas Oil Coal Coal Nuclear 2,000 Nuclear Gas Oil Coal H2 H2 Shift Oil Coal Reduction Nuclear Nuclear Nuclear 2030 (Option 1) 2030 (Option 2) 2030 (Option 3) HC Sources Proportional LNG Shift Case 0 2009 Before TOHOKU Disaster 2030 Expected before TOHOKU Disaster Source: Basic Energy Plan 2010, METI Major Option Hydrogen Introduce Case Future Option Chiyoda’s perspectives All Rights Reserved. CHIYODA 2014 10 3. LNG - The “Major” Option for Sustainable Energy Logistics All Rights Reserved. CHIYODA 2014 3.1 Australian Natural Gas Resources 132.8 TCF (Conventional) 33 TCF (Unconventional - CSG) 437 TCF (Shale) Total 602.8 TCF All Rights Reserved. CHIYODA 2014 12 All Rights Reserved. CHIYODA 2014 3.2 Australian LNG Projects Browse FLNG Ichthys Prelude Darwin-1 (Bayu-Undan) 3.6mmtpa x 3 (15.5tcf) 4.2mmtpa×2 (12.8tcf) 3.6mmtpa (2.6-3tcf) 3.2-3.7mmtpa (2.7-3.4tcf) Updated: 5 August 2014 Darwin-2 3.5mmtpa Greater Sunrise (5.13 -7.7tcf) North West Shelf (NWS) 16.3mmtpa (17.9tcf) Existing Ongoing Planned Gladstone LNG (Fisherman’s Landing) 1.5mmtpax2 Wheatstone 4.45mmtpa×2 (7.7tcf) Australia Pacific LNG 4.5mmtpa×2 (24tcf) Pluto 1 4.3mmtpa (4.4-4.6tcf) Queensland Curtis LNG 4.25 mmtpa×2 (17.3tcf) Pluto 2 4.3mmtpa x2 GLNG 3.9 mmtpa×2 (4.7 – 9.3tcf) Gorgon 5.0mmtpa x 3 (40-42tcf) Arrow Energy LNG 4mmtpa X 2 Newcastle LNG 1.0mmtpa×2 3.3 LNG – The Major option for Sustainable Energy Logistics Australia as a leading LNG exporter Once its current LNG projects are complete, Australia is set to become one of the world’s leading LNG exporting countries. The following strategy will ensure that Australia maintains its position as a world leader in LNG production: - Continuous exploration of conventional gas fields to be planned and executed; - LNG plants to operate at full capacity; - Timely planning for expansion of existing LNG plants; - Planned maintenance and renewal of existing LNG plants; and - Exploration for unconventional gases such as shale gas and CBM to be undertaken. All Rights Reserved. CHIYODA 2014 14 3.4 Chiyoda’s Participation in Australia Ichthys Future FLNGs All Rights Reserved. CHIYODA 2014 15 4. Hydrogen - A “Future” Option for Sustainable Energy Logistics All Rights Reserved. CHIYODA 2014 4.1 Hydrogen Energy Role Energy Security Sustainable growing Economics H2 Safe energy system Fossil resource limitation Environment Carbon emission Climate change Safety H2 energy can play a significant Role for 3E+S, since H2 can be produced from all kinds of primary energy (coal, gas, renewable energy, etc.). H2 energy requires a large scale storage and transport technology with a strong emphasis on safety. Chiyoda has established a new technology that we call the “SPERA H2” system. Our vision is that this new system will be the first step on the path to a sustainable energy society. All Rights Reserved. CHIYODA 2014 17 4.2 Hydrogen Energy Position in Japan The Japanese government issued - a new “Strategic Energy Plan” in April 2014, in which Hydrogen was identified as an important energy source. - a “H2 and Fuel Cells Road Map” in June 2014. Target 1. Stationary Household Fuel Cells (“Ene-Farm” etc.) By 2020 :1.4 million units, By 2030 : 5.3 million units 2. Fuel Cell Vehicle (FCV) By 2015 : FCV release, 100 H2 stations in operation By 2025 : 2 million FCV’s, 1,000 ~ H2 stations in operation 3. Thermal power generation By 2030 : 3,500MW thermal power generation All Rights Reserved. CHIYODA 2014 18 4.3 “SPERA HydrogenTM” system All Rights Reserved. CHIYODA 2014 19 4.4 Hydrogen Supply Chain Concept by “SPERA H2” System First step : fossil resource CO2 Energy Gas Hydrocarbon Power Gen. Mobility EOR CCS Coal Gasification Oil MCH (Methylcyclohexane) Dehydrogenation plant Hydrogenation plant H2 H2 Supply CH3 Electrolysis Storage tanks +3H2 TOL Final goal CH3 CH3 Storage tanks Renewable Energy +3H2 MCH MCH Demand CH3 TO L Toluene Feedstock Petro Refining Chemicals All Rights Reserved. CHIYODA 2014 20 4.5 Development of “SPERA H2” System Technology New dehydrogenation catalyst and process development established “SPERA H2“ system technology. H2 ≒1nm SS原子 = Pt O O = Hydrogenation Section O = Dehydrogenation Section O S = 50Nm3/h S o o o o Pt Al2O3 Carrier アルミナ担体 Feed TOL Product TOL Feed MCH Estimated catalyst surface model Product MCH MCH Tank TOL Tank MCH Tank TOL Tank Process Plants (50Nm3-H2/h) Tank Area (1 week capacity) Demonstration plant at Chiyoda R&D Center, Yokohama, Japan (Note) MCH: Methylcyclohexane TOL: Toluene All Rights Reserved. CHIYODA 2014 21 4.6 First Commercial Hydrogen Supply Chain Project Hydrogen source •by-product of chemical plant •natural gas reforming South East Asia Middle East source:google map Kawasaki City (Tokyo Bay Area) Feed stock for petroleum, petrochemical Power Generation Fuel supply for FCV(fuel cell vehicle) All Rights Reserved. CHIYODA 2014 22 4.7 “SPERA H2” System Technology H2 energy can play a significant role for 3E+S. SPERA Hydrogen technology has the potential to realize massive H2 energy utilization. We must take the first step on the journey from fossil resource Hydrogen to renewable resource Hydrogen. The SPERA Hydrogen supply chain from Australia to Japan has the potential to be as successful as the LNG supply chain. Such a supply chain will promote Australia's and Japan's contribution to sustainability, energy security and climate change issues. All Rights Reserved. CHIYODA 2014 23 5. Concluding Remarks All Rights Reserved. CHIYODA 2014 Conclusion 1. Energy Resources Outlook Fossil fuels such as coal and oil are the traditional energy source for large scale industry. There is a shift towards low carbon, sustainable energy sources such as LNG - the low carbon fossil resource - and Hydrogen - a renewable energy resource. 2. The Major Option – LNG LNG is the major option for energy logistics. Chiyoda's aim is to contribute its knowledge and experience to assist in the development of LNG plants in Australia. 3. A Future Option – Hydrogen Chemical hydride technology or SPERA Hydrogen is an option for future energy logistics. The SPERA demonstration plant has been operating successfully for over 1 year and the technology has matured and become practical. Our vision is that SPERA will help achieve a sustainable society in the near future. All Rights Reserved. CHIYODA 2014 25 Thank you for your attention. All Rights Reserved. CHIYODA 2014 26