Alternative Energy Sources

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Alternative Energy SourcesAlternative Energy Sources

Delivered to:

Bill PykeHilbre Consulting Limited

October 2012

Alternative Transport FuelsHydrogen, Engine Developments & Biofuels

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HYDROGEN

COMMERCIAL & ENVIRONMENTAL CONCLUSIONS

HYDROGEN

COMMERCIAL & ENVIRONMENTAL CONCLUSIONS

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Current SituationCurrent 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

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Current Situation (2)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

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Hydrogen Process PathwaysHydrogen Process Pathways

Source: John A. Turner, Science 1999, Shell 2004

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Technology Status in Hydrogen ProductionTechnology Status in Hydrogen Production

Mature, commercial processes

• Steam Reforming

• Gasification

• Liquefaction

• Pipelines

• Electrolysis

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Hydrogen Storage and Distribution IssuesHydrogen 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!

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Illustration of Comparative Hydrogen CostsIllustration of Comparative Hydrogen Costs

Process Unit Cost $/Gj Technology Development

Steam Reforming 5 Mature

Partial Oxidation 9 Mature

Coal Gasification 11 Mature

Biomass 13 Pilot

HydroElectric 12 Pilot

Wind 32 Pilot

Solar PV 42 Laboratory

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Commercial Cost Issues for a Hydrogen EconomyCommercial 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

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Evolution of Hydrogen Sources?Evolution of Hydrogen Sources?

Source: Air Products

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Environmental Issues Hydrogen’s ImageEnvironmental Issues Hydrogen’s Image

• Hydrogen must be dangerous

• Highly CombustibleHydrogen 120 MJ/kg

Gasoline 40 MJ/kg

Nat Gas 55 MJ/kg

• Extra safety precautions needed

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Environmental IssuesCO2 SequestrationEnvironmental IssuesCO2 Sequestration

• Carbon sequestration is the only option to make hydrogen a zero-carbon 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!!

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Carbon Emission ComparisonsCarbon Emission Comparisons

0

0.005

0.01

0.015

0.02

0.025

0.03

Wood Diesel Coal Natural Gas Hydrogen

Ca

rbo

n C

on

ten

t (t

on

ne

s/G

J)

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Hydrogen from Gas and CoalHydrogen from Gas and Coal

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Synthesis Gas – “Syngas”An Important IntermediateSynthesis 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

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The Steam-Methane ReformerThe 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.

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Partial OxidationPartial 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

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Water-Gas Shift ReactionWater-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

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Hydrogen From ElectrolysisHydrogen From Electrolysis

2 MW Turbine

can produce 100 tonnes/year

of hydrogen via electrolysis

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Electrolysis to Produce HydrogenElectrolysis 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) electrolysisSolid membrane acts as electrolyte

No cleanup step necessary

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Economics of Hydrogen ProductionElectrolysis

Economics of Hydrogen ProductionElectrolysis

• 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

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EXAMPLES OF LARGE PROJECTS UTILISING HYDROGEN

EXAMPLES OF LARGE PROJECTS UTILISING HYDROGEN

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The Hydrogen power process utilises technology proven at this

scale around the world

The Hydrogen power process utilises technology proven at this

scale around the world

Source: BP

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Process 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

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Commercial/Technical IssuesCommercial/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

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Automotive Trends

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The Future?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

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Improvements in Automotive Fuels 1990-2012Improvements 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

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Vehicle Pollutants

Health Effects

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

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EU Maximum Sulphur

Road Fuels: 1990-2010

EU Maximum Sulphur

Road Fuels: 1990-2010

0

500

1000

1500

2000

2500

3000

Sulphur (ppm)

1990 1995 2000 2005 2010

Gasoline

Diesel

Source: UKPIA

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Year Global

Vehicle Fleet

Global

Population

Carbon

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

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224 million vehicles

26 million vehicles

96 million vehicles

5 million vehicles

8 million vehicles

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Engine Developments

COMMERCIAL & ENVIRONMENTAL CONCLUSIONS

Engine Developments

COMMERCIAL & ENVIRONMENTAL CONCLUSIONS

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Carbon Emissions

EU Voluntary Agreement on Passenger Cars

Carbon Emissions

EU Voluntary Agreement on Passenger Cars

80

90

100

110

120

130

140

150

160

170

180

2002 2005 2010 2015 2020

CO

2g/1

00km

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Transport Evolution Mass Commercialisation

Transport Evolution Mass Commercialisation

Internal Combustion Engine Improvements

2010 20252020 2030 20352015

Hybrids

Plug-in Hybrids (PHVs)

Electric Vehicles (EVs)

Fuel Cell Hybrids (FCHVs)

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Projected Future Light Vehicle Sales by CategoryProjected Future Light Vehicle Sales by Category

0

20

40

60

80

100

120

140

160

2008 2020 2035

Veh

icle

Sal

es

Gas

Plug-in Hybrids

Electric

Hybrid

Internal Combustion Engine

Source: IEA, WEO, November 2010

38 2012 The Outlook for Energy: A View to 2040, ExxonMobil, January 2012

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Anode Cathode

Fuel Cell: Principle of OperationFuel Cell: Principle of Operation

H2 O2

H+

Overall: H2 + ½ O2 H2O

½ O2 + 2H+ + 2e- H2OH2 2H+ + 2e-

Electrolyte

e-

Source: Caltech

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The Nissan LeafMass Market Electric Car

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Toyota’s Demonstrator FCHVToyota’s Demonstrator FCHV

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BIOFUELS

COMMERCIAL & ENVIRONMENTAL CONCLUSIONS

BIOFUELS

COMMERCIAL & ENVIRONMENTAL CONCLUSIONS

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Biomass as FuelBiomass as Fuel

• Pros and Cons

• Biomass to Heat and Power

• Transport Fuelso Bioethanol

o Sources

o Key players

o Second generation development and yields

• Biodieselo Sources

o New technologies BTL

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OutlineOutline

• Sources

• Availability

• Advantages/Disadvantages

• Challenges

• Cost Parameters

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Fuels for

Transport

Electrical Power

CHP

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Biofuel TransportationBiofuel Transportation

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National InitiativesNational 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

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Environmental AppealEnvironmental 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

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DisadvantagesDisadvantages

• 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

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PropertiesProperties

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?

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Bio-ethanol / Bio-gasolineBio-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

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North and Central America

38%

Europe

9,8%

South America

34%

Asia

16,2%

Ethanol Global Market – 46.5 Billion LitresEthanol Global Market – 46.5 Billion Litres

Brazil33%

Brazil33%

Potential trading of Fuel Ethanol:

1,5 Billion Liters (2006) → 7,0 Billion Liters (2010)

Source: Petrobras, 2007

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Ethanol Fuel Outlet Sao Paulo , BrazilEthanol Fuel Outlet Sao Paulo , Brazil

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1 T OF SUGAR CANE IN THE

FIELD1.718 x 106 KCAL

1 BARREL OF OIL1.386 x 106 KCAL

SUGAR 153 KG

BAGASSE(50% UMIDITY)

276 KG

LEAVES (*)(15% HUMIDY)

165 KG

608 x 103 KCAL

598 x 103 KCAL

512 x 103 KCAL

1 T of Sugar Cane

1,2 BARRELS

OF OIL~=

(*) Left on the field

Conclusion: Around 30% of the energetic content of the sugar cane aren’t used

1 Ton in the Field1,718 x 103 KCAL

Second Generation BiofuelsLignocellulosic Bioethanol

Each ha. of sugar cane produces the equivalent to 79 boe per year

Sources: Petrobras, 2007 and DEDINI, 2004

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Comparison 1st & 2nd Generation YieldsComparison 1st & 2nd Generation Yields

Molasses yields

only 85 L of

ethanol,

But

Sugar cane

bagasse could

yields up to 185L

of ethanolSource: Petrobras, 2007

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BiodieselBiodiesel Biodiesel favoured in EU Europe

Produced from:-

• Oilseed rape

• Sunflowers

• Tallow

• Soya

Trans-Esterification of vegetable oils to produce biodiesel

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Biodiesel Esterification TerminologyBiodiesel 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

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Global Market GrowthGlobal 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

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The Carbon Dioxide Emissions Well to Wheels

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Crude Oil Bioethanol FAME EnzymeHydrolysis

BTL

To

ns C

O2

/ to

n f

uel

Source: Shell

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Aviation EmissionsAviation Emissions

Source: New Scientist, February 2007

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Sustainable Aviation Fuel?Sustainable Aviation Fuel?

Algal-based

Jatropha

Soya

Palm oil