Alternative Energy Sources Bill Pyke Hilbre Consulting Limited October 2012 Delivered to: Alternative Transport Fuels Hydrogen, Engine Developments & Biofuels 1 HYDROGEN COMMERCIAL & ENVIRONMENTAL CONCLUSIONS 2 3 Current Situation • 95% of global hydrogen is produced from fossil fuels • 500 billion cubic metres /year of hydrogen compares with 2,865 billion cubic metres of natural gas • Hydrogen production from fossil fuels with CO2 capture and storage is likely to provide the bulk of hydrogen required in the next 30-50 years 4 Current Situation (2) • 5% of hydrogen is produced through electrolysis in localities where a overproduction of renewable electric power exists that cannot be effectively distributed through the electric grid • Liquefied hydrogen important, since pipelines limited. Only 500 miles in the United States • Hydrogen then used as balancing power or in transport 5 Hydrogen Process Pathways 6 Source: John A. Turner, Science 1999, Shell 2004 Technology Status in Hydrogen Production Mature, commercial processes • Steam Reforming • Gasification • Liquefaction • Pipelines • Electrolysis 7 Hydrogen Storage and Distribution Issues • High cost of new networks • Only 70 hydrogen filling stations globally • Storage as Compressed or Liquefied Hydrogen Compressed Hydrogen higher cost storage vessels. Safety Issues Liquefied ; Low temperature -2530C, boil-off, heat transfer, pressure and safety issues! 8 Illustration of Comparative Hydrogen Costs Process Steam Reforming Partial Oxidation Coal Gasification Biomass HydroElectric Wind Solar PV 9 Unit Cost $/Gj 5 9 11 13 12 32 42 Technology Development Mature Mature Mature Pilot Pilot Pilot Laboratory Commercial Cost Issues for a Hydrogen Economy • Competitive costs against traditional fuels • Cost of CO2 Sequestration in Steam Reforming • Electrolysis Cost (Electricity cost) to generate hydrogen at commercial rates • Distribution infrastructure in hydrogen transport fuel network • Additional safety systems, materials and processes 10 Evolution of Hydrogen Sources? 11 Source: Air Products Environmental Issues Hydrogen’s Image • Hydrogen must be dangerous • Highly Combustible Hydrogen 120 MJ/kg Gasoline 40 MJ/kg Nat Gas 55 MJ/kg • Extra safety precautions needed 12 Environmental Issues CO2 Sequestration • Carbon sequestration is the only option to make hydrogen a zerocarbon fuel • Decentralized hydrogen production implies the practical loss of the sequestration option • Hydrogen is then just an efficient way to use fuel. But the CO2 issue remains!! 13 Carbon Emission Comparisons 0.03 Carbon Content (tonnes/GJ) 0.025 0.02 0.015 0.01 0.005 0 Wood 14 Diesel Coal Natural Gas Hydrogen Hydrogen from Gas and Coal 15 Synthesis Gas – “Syngas” An Important Intermediate • Methane is the primary constituent of natural gas. In most cases it comprises >80% of the gas reserves • Utilised in the formation of syngas- a mixture of oxides of carbon (CO and CO2 ) together with elemental hydrogen • Two chemical processes are used in the formation of syngas- steam reforming and partial oxidation 16 The Steam-Methane Reformer • A steam-methane mixture is passed over a catalyst. • Catalyst—usually nickel dispersed on alumina support. • Operating conditions: 850-940°C, 3 MPa. • Heat for the chemical reaction is provided by feedstock natural gas. Not suited to the production of syngas for onwards conversion to middle distillates. The process is more used in the petrochemical industry- the onwards conversion to methanol or ammonia • Conversion of syngas generated by the steam reformer tends to have H2/CO ratio of about 2 to 3 as per the reaction below:- CH4 + H2O = CO + 3H2 • Endothermic, takes in/absorbs heat. 17 Partial Oxidation Oxygen reacts directly with gas CH4 + ½O2 = CO + 2H2 • The key process in gasification of coal, coke, methane and biomass • Operates at high temperatures (1200-1500°C) • Exothermic, the reaction generates heat • Need to eliminate tars, nitrogen, methane, sulphur 18 Water-Gas Shift Reaction Water-gas shift reaction is the conversion of carbon monoxide into CO2 and hydrogen CO + H2O =H2 + CO2 Uses catalysts at low temperatures Enhances production of Hydrogen Endothermic 19 Hydrogen From Electrolysis 2 MW Turbine can produce 100 tonnes/year of hydrogen via electrolysis 20 Electrolysis to Produce Hydrogen Electricity + 2H2O = 2H2 + O2 2 types • Alkaline electrolysis In production since 1920s, well established Potassium Hydroxide electrolyte to decrease resistance • PEM (Proton Exchange Membrane) electrolysis Solid membrane acts as electrolyte No cleanup step necessary 21 Economics of Hydrogen Production Electrolysis • Currently only 5% of the hydrogen produced annually is derived from the electrolysis of water • Cost of the electricity used in the electrolytic process makes it uncompetitive with the steam-reforming process • The electricity can cost three to four times as much as steam-reformed natural gas feedstock 22 EXAMPLES OF LARGE PROJECTS UTILISING HYDROGEN 23 The Hydrogen power process utilises technology proven at this scale around the world 24 Source: BP Process • Uses proven reforming technology to manufacture syngas from methane (CH4) [BP Trinidad] • Uses proven shift reaction technology to generate H2 and CO2 • Uses proven amine capture technology to capture and remove CO2 [In Salah, Algeria] • Hydrogen-fired Combined Cycle Gas Turbine (CCGT) proven and warranted by vendors • Miller Field naturally contains CO2 so facilities are suitable for handling well fluids with high CO2 concentrations 25 Commercial/Technical Issues PRODUCTION • Reduce cost of production to compete with coal & gas • Research & develop CO2 sequestration • Reduce the cost of sustainable production; Wind, solar DEVELOPMENTS Prove new water splitting technologies STORAGE • Improve storage capacity - compressed, liquid, hydrides, etc. • Prove distribution & infrastructure at next level 26 Automotive Trends 27 The Future? •The Tata Nano •Relies on a 33 hp two-stroke petrol engine •Sales Price £1,300 •Per Capita income rising rapidly in developing Asia •Indian market 1 billion people 28 Improvements in Automotive Fuels 1990-2012 • Tetra-ethyl lead banned and replaced • Sulphur emissions reduced from 300ppm to <100ppm now headed to <10ppm • Aromatics reduced, nearly eliminated • Particulates nearly eliminated • Methyl Tertiary Butyl Ether (MTBE)- an additive implicated in groundwater contamination and now banned in U.S. • Volatile Oil Compounds reduced 29 Vehicle Pollutants Health Effects • NOx NO2 can be directly toxic to lung tissue by forming acids with water in the lungs. When mixed with volatile organic compounds, NO2 forms ground-level ozone, which is a major component of smog • Particulates: Can exacerbate all respiratory and cardiovascular diseases. PM10, produced diesel engines and petrol engines, is the aerodynamic diameter capable of entering the lung airways. PM10 is partially comprised of PM2.5, which is small enough to reach the alveoli • Volatile organic compounds (VOC): Emitted by vehicle engines, they combine with nitrogen oxides to form ozone. Effects are long term including adverse neurological, reproductive and developmental effects as well as having associations with cancer • Ground-level ozone: A major component of smog, formed from VOCs and nitrogen oxides. Exposure to elevated levels can lead to severe coughing, shortness of breath, pain on breathing, lung and eye irritation and greater susceptibility to respiratory diseases. High levels can also exacerbate asthma attacks 30 EU Maximum Sulphur Road Fuels: 1990-2010 3000 2500 2000 Sulphur (ppm) Gasoline Diesel 1500 1000 500 0 1990 31 Source: UKPIA 1995 2000 2005 2010 Year Global Global Carbon Vehicle Fleet Population Emission tonnes 1950 80 million 2.5 billion 70 x 106 2000 900 million 6 billion 1 x 109 2050 2,000 million 9 billion 2-3 x 109 32 26 million vehicles 5 million vehicles 8 million vehicles 224 million vehicles 96 million vehicles 33 Engine Developments COMMERCIAL & ENVIRONMENTAL CONCLUSIONS 34 Carbon Emissions EU Voluntary Agreement on Passenger Cars 180 170 160 CO2g/100km 150 140 130 120 110 100 90 80 2002 35 2005 2010 2015 2020 Transport Evolution Mass Commercialisation Fuel Cell Hybrids (FCHVs) Electric Vehicles (EVs) Plug-in Hybrids (PHVs) Hybrids Internal Combustion Engine Improvements 2010 36 2015 2020 2025 2030 2035 Projected Future Light Vehicle Sales by Category 160 140 Vehicle Sales 120 100 Gas Plug-in Hybrids 80 Electric Hybrid Internal Combustion Engine 60 40 20 0 2008 37 2020 Source: IEA, WEO, November 2010 2035 38 2012 The Outlook for Energy: A View to 2040, ExxonMobil, January 2012 39 Fuel Cell: Principle of Operation Anode Cathode e - H+ H2 H2 2H+ + 2e- O2 ½ O2 + 2H+ + 2e- H2O Electrolyte Source: Caltech 40 Overall: H2 + ½ O2 H2O The Nissan Leaf Mass Market Electric Car 41 Toyota’s Demonstrator FCHV 42 BIOFUELS COMMERCIAL & ENVIRONMENTAL CONCLUSIONS 43 Biomass as Fuel • Pros and Cons • Biomass to Heat and Power • Transport Fuels o Bioethanol o Sources o Key players o Second generation development and yields • Biodiesel o Sources o New technologies BTL 44 Outline 45 • Sources • Availability • Advantages/Disadvantages • Challenges • Cost Parameters Fuels for Transport Electrical Power CHP 46 Biofuel Transportation 47 National Initiatives • EU Renewable Fuels Obligation (RTFO) from 3.5% in 2010/11 to 5% in 2013/14 further increases in the level of biofuels to 10%, subject to review in 2014, under the Renewable Energy Directive • U.S. Renewable Fuel Standard (RFS) requires 7.5 billion gallons of renewable fuel to be blended into gasoline by 2012 • Brazil Bioethanol provides 24% of fuel consumption • China 3rd largest biomass producer 48 Environmental Appeal • Utilises solar energy and converts some of it into biomass –a versatile fuel • Removes some CO2 from the atmosphere in the process • Provides habitat for native species • Multiple products when harvested 49 Disadvantages • Competing with land for food production • Ensuring Continuous supply • Carbon neutral ?? • Transport costs ?? • Drying to specification is energy-intensive Biomass moisture content often 40-60%, needs to be 10-15% • Storage Issues • Impurities and toxins 50 Properties Bio-gasoline • Higher Octane Rating than conventional refinery gasoline Bio-diesel • Higher density than conventional refinery diesel • Higher cetane rating • Better fuel consumption But, • flow properties in cold climates • engine damage in RME uses? 51 Bio-ethanol / Bio-gasoline Bioethanol/ Biogasoline favoured in U.S.A. & Brazil Ethanol added to gasoline as a blendstock Produced from:- • • • • • • Sugar cane ( Brazil) Corn (U.S.) Molasses Barley Rice Tapiou 52 Ethanol Global Market – 46.5 Billion Litres North and Central America 38% Europe 9,8% Brazil 33% South America Asia 34% 16,2% 53 Potential trading of Fuel Ethanol: 1,5 Billion Liters (2006) → 7,0 Billion Liters (2010) Source: Petrobras, 2007 Ethanol Fuel Outlet Sao Paulo , Brazil 54 Second Generation Biofuels Lignocellulosic Bioethanol 1 Ton in the Field 1,718 x 103 KCAL SUGAR 153 KG 608 x 103 KCAL BAGASSE (50% UMIDITY) 276 KG 598 x 103 KCAL LEAVES (*) (15% HUMIDY) 165 KG 512 x 103 KCAL (*) Left on the field Conclusion: Around 30% of the energetic content of the sugar cane aren’t used 55 1 T OF SUGAR CANE IN THE FIELD 1.718 x 106 KCAL 1 T of Sugar Cane Each ha. of sugar cane produces the equivalent to 79 boe per year 1 BARREL OF OIL 1.386 x 106 KCAL ~ 1,2 BARRELS = Sources: Petrobras, 2007 and DEDINI, 2004 OF OIL Comparison 1st & 2nd Generation Yields Molasses yields only 85 L of ethanol, But Sugar cane bagasse could yields up to 185L of ethanol 56 Source: Petrobras, 2007 Biodiesel Biodiesel favoured in EU Europe Produced from:• Oilseed rape • Sunflowers • Tallow • Soya Trans-Esterification of vegetable oils to produce biodiesel 57 Biodiesel Esterification Terminology • FAME Fatty Acid Methyl Ester • SME Soya Methyl Ester • POME Palm Oil Methyl Ester • CME Coconut Methyl Ester • RME Rape seed Methyl ester 58 Global Market Growth • Global 5-10 million barrels/day between 2020-2025 • Biofuels provided 1.8% of the world's transport fuel in 2008 • Global ethanol market totals 46.5 Billion Litres • Fuel Ethanol is 30.6 Billion Litres (4.8 million barrels), 67% of total ethanol production • Bioethanol consumption is 2.6% of gasoline fuel market 59 The Carbon Dioxide Emissions Well to Wheels 4.5 4 Tons CO2 / ton fuel 3.5 3 2.5 2 1.5 1 0.5 0 Crude Oil 60 Bioethanol Source: Shell FAME Enzyme Hydrolysis BTL 61 Aviation Emissions 62 Source: New Scientist, February 2007 62 Sustainable Aviation Fuel? Algal-based Jatropha Soya Palm oil 63