Business Model for Power to Gas/Liquids - Potentials, Challenges and Uncertainties

Transcription

1 Business Model for Power to Gas/Liquids - Potentials, Challenges and Uncertainties slide 1

2 Content 01. Company Facts and partners 02. Potential: Production methods for renewable CO 2 -based fuels 03. Challenge: Road-to-Market 04. Uncertainty: Politics, Markets and Willingness-to-Pay 05. Control Power: Enhanced Business Model slide 2

3 PtL Demo Plant Fuel1 Start-up in 2014 Power-to-Liquids as a new Energy Option / slide 3

4 Power-to-Liquids as a new Energy Option Who is sunfire? Company facts & partners slide 4

5 Management and company facts Senior Management Carl Berninghausen (CEO), EBS, Karibu, Thermea, e.a. Christian v. Olshausen (CTO), TU Dresden, P&G, Daimler Fuel Cells Business Administration Business Development Stacks Systems Fuel Nils Aldag EBS, Desertec Foundation Björn Erik Mai TU Berlin, Webasto, staxera Mario Heinrich HTW Dresden, Audi, staxera Dr. Oliver Posdziech TU Dresden, EBZ Dietmar Rüger TU Dresden, Choren Industries History sunfire founded in 2010 (staxera 2005), staxera merged into sunfire in 2012, Bilfinger entry in 2012 Employees Infrastructure 53 (47 engineers and technicians, 6 business graduates) Test environment for stacks, systems and PtL & PtG The sunfire team has developed one of the most robust and cost competitive SOFC-stacks. slide 5

6 Cooperation Bilfinger/sunfire a perfect fit for PtL & PtG Core engineering Core components Commissioning-support Operation- and optimizing-support Core components for maintenance and repair Sales & marketing General contractor Maintenance Technical engineering Modifications, upgrades, updates Construction Decommissioning Invest Operation Desinvest Corporate sales & marketing but individual focus on core competencies sunfire: Engineering & core components Bilfinger: General contractor & construction slide 6

7 Power-to-Liquids as a new Energy Option An enormous Potential: PtL & PtG based on High Temperature Steam Electrolysis slide 7

8 Patented efficiency advantage CO 2 Syngas Waste heat Hydrogen Hydrocarbons LT Electrolysis (PEM, Alkaline) Electr. Power (100%) Steam Steam and CO 2 Water High Temperature Steam Electrolysis increases the process efficiency significantly. PtL: 50% à 70%, PtG: 55% à 80% (approximate values, based on LHV) slide 8

9 Patented efficiency advantage CO 2 Syngas Hydrogen Hydrocarbons HT-Elektrolysis (SOEC) Steam Electr. Power (84%) Heat recovery (16%) Steam and CO 2 Water High Temperature Steam Electrolysis increases the process efficiency significantly. PtL: 50% à 70%, PtG: 55% à 80% (approximate values, based on LHV) slide 9

10 Production method Power-to-Liquids sunfire s Power-to-Liquids process consists of three components: SOEC (Solid Oxide Electrolysis Cell), RWGS-conversion and fuel synthesis SOEC RWGS- Conversion CO 2 +H 2 à CO+H 2 O H 2 O- Steam Fuel Synthesis 2H 2 + CO à -CH H 2 O H 2 O High present economical potential Hydrocarbon Fuels slide 10

11 Production method Power-to-Gas Methanation is a relatively simple process. The increased efficiency due to the SOEC is still applicable. However, the economical potential of SNG is lower than for synthetic liquid fuels due to the cheap and still long time available natural gas. SOEC Sabatier- Process H 2 O- Steam CO H 2 à CH H 2 O H 2 O Simple Nickel-catalyst SNG No complex product separation slide 11

12 Power-to-Liquids as a new Energy Option A challenging process: sunfire s Road-to-Market slide 12

13 Road-to-Market or How to overcome the Valley of Death Spec. costs of SOCs R&D (SOFC & SOEC) Small demo projects (e.g. Callux) Offgrid SOCs (e.g. telecom) PtL- & PtGdemonstration CHP & PtG CHP, PtG & PtL Production volume slide 13

14 Road-to-Market Strategy and timeline Gas-to-Power Power-to-Gas Power-to-Liquids Markets microchp Off-grid smallchp Chemicals Storage Fuels kw >2.5 kw >25 kw >2 MW >10 MW >50 MW SOFC Field test Pre-commercial & market entry Power-to- Gas and Liquids (SOEC) R&D project (Storage / Chemicals / Fuels) Demonstration & commercialization slide 14

15 PtL Demo Plant Fuel1 Storage / Chemicals / Fuels R&D project Construction of a Power-to-Liquids pilot plant targeting the verification of the chemical process & the development of a SOEC prototype Government-funded by Federal Ministry of Education and Research Project costs: 12m (sf: 8m) Project duration: May June 2015 (start of operation in 2014) Project consortium Power-to-Liquids demo plant Fuel1 in Dresden slide 15

16 PtL Demo Plant Fuel1 Storage / Chemicals / Fuels Groundbreaking for demo plant at 22 nd of July 2013 & construction progress after three months. slide 16

17 Power-to-Liquids as a new Energy Option Still uncertain: Markets & Willingness-to-Pay slide 17

18 Markets for PtG and PtL Production method PtG PtL Products SNG Methanol Waxes Gasoline/ Diesel Kerosene Markets Energy storage Traffic Chemical industry Premium fuels Quota fuels Aviation slide 18

19 Power-to-Liquids Willingness-to-Pay vs. cost The willingness to pay for sunfire-fuels is clearly higher than 0.10 /kwh(lhv). The reason is the obligatory addition of renewable fuels to fossil ones with respect to 2009/28/EG as well as the intended fourfold crediting of PtX-fuels to this quota (see source at the bottom). Kerosine - AviaGon Willingness-to-Pay currently uncertain Wax - Chemical Industry Gasoline/ Diesel - Quota Fuels Fossil Portion Mandatory renewable fuel addition Fourfold Quota Willingness- to- Pay ProducGon Cost SNG - Quota Fuel F. P. Mandatory renewable fuel addition Fourfold Quota / kwh Source of proposed amending: slide 19

20 Power-to-Liquids as a new Energy Option Control Energy Market: Enhanced Business Model for PtL and PtG slide 20

21 Control Energy Control Energy is used to compensate temporary differences between consumption and generation of electricity. GW 80 Consumption Generation Positive Control Energy Negative Control Energy slide 21

22 Control Energy Types of control Energy Call for Bids Minimum Offer Activation Time Primary Control Energy weekly 1 MW < 30 seconds automated Secondary Control Energy weekly 5 MW < 5 minutes automated Minute Reserve daily 5 MW < 15 minutes partly automated Order of Activation Minute Reserve Secondary Control Energy Primary Control Energy 30 s 5 min 15 min Source of information slide 22

23 Control Energy Demand-Rate Auction for Secondary Control Energy / MWh_el Highest Called Price MW for 130 /MWh Needed Pool of available minute reserve Offert Minute Reserve Summation (Summation) of offered Secondary in MW Control Energy MWh_el Source of Data: slide 23

24 An enhanced Business Model for the Energiewende : PtL and PtG as economical Control Reserve Production Costs Earnings 100% % Synthetic Natural Gas Electricity Stock Market Plant Capacity PtL, PtG Plant Capacity Synthetic Liquid Fuels Up to 30% Plant Capacity Negative Control Energy Seite 24

25 An enhanced Business Model for the Energiewende : PtL and PtG as economical Control Reserve 100 U(liza(on of PtL plant in posi(ve control mode [%] Annual Profit [ /MW_el] CH2 - Profit Gewinn Regel. Control - Gewinn Profit U(liza(on of PtL plant in CH2 produc(on mode [%] slide 25

26 An enhanced Business Model for the Energiewende : PtL and PtG as economical Control Reserve 100 U(liza(on of PtL plant in posi(ve control mode [%] Optimum at approx. 70 % CH2 - Profit Gewinn Annual Profit [ /MW_el] Regel. Control - Gewinn Profit Annual Profit [ /MW_el] Total Gesamt Profit - Gewinn U(liza(on of PtL plant in CH2 produc(on mode [%] U(liza(on of PtL plant in CH2 produc(on mode [%] The generally positive effect of PtL and PtG for 1. A robust electricity grid and hence supply % renewable primary energy supply in all other CH-based energy sectors also enables the plant to increase its total economical profit. slide 26

27 Thank you for your attention sunfire GmbH Gasanstaltstraße Dresden Germany T +49 (0) F +49 (0) [email protected] slide 27